i

Marketing
Communications
ii

THIS PAGE IS INTENTIONALLY LEFT BLANK

 iii

SEVENTH EDITION

Marketing
Communications
Integrating online and offline,
customer engagement and
digital technologies
PR Smith and Ze Zook
iv

Publisher’s note
Every possible effort has been made to ensure that the information contained in this book is
accurate at the time of going to press, and the publishers and authors cannot accept
responsibility for any errors or omissions, however caused. No responsibility for loss or damage
occasioned to any person acting, or refraining from action, as a result of the material in this
publication can be accepted by the editor, the publisher or the authors.

First published by Kogan Page Limited in 1993

Second edition published in 1998
Third edition published in 2002
Fourth edition published in 2004
Fifth edition published in 2011
Sixth edition published in 2016
Seventh edition published in Great Britain and the United States in 2020 by Kogan Page Limited

Apart from any fair dealing for the purposes of research or private study, or criticism or review, as per-
mitted under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced,
stored or transmitted, in any form or by any means, with the prior permission in writing of the publish-
ers, or in the case of reprographic reproduction in accordance with the terms and licences issued by
the CLA. Enquiries concerning reproduction outside these terms should be sent to the publishers at
the undermentioned addresses:

2nd Floor, 45 Gee Street 122 W 27th St, 10th Floor 4737/23 Ansari Road
London New York, NY 10001 Daryaganj
EC1V 3RS USA New Delhi 110002
United Kingdom India
www.koganpage.com

© PR Smith, 1993, 1998, 2002, 2004, 2011, 2016, 2020

The right of PR Smith and Ze Zook to be identified as the authors of this work has been asserted by
them in accordance with the Copyright, Designs and Patents Act 1988.

ISBNs

Paperback 978 0 7494 9864 1

eBook 978 0 7494 9865 8

British Library Cataloguing-in-Publication Data

A CIP record for this book is available from the British Library.

Library of Congress Cataloging-in-Publication Data

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 v

CO N T E N T S

About the authors xii

Preface xiv
About this book xv
Key features of this book xix
Acknowledgements xx

PA R T O N E Communications background and theories 1

01 New integrated marketing communications 3

Introduction to integrated marketing communications 4

Integrating left-brain and right-brain thinking 7
The 4th Industrial Revolution 14
10 hot marketing topics 19
The perfect plan: SOSTAC ® planning framework 25
Top 10 tips for world-class marketing communications 26
Key points from Chapter 1 26
Endnotes 26
References and further reading 27
Further information 29

02 Branding 31

Introduction to branding 32
Brand components 41
Branding is simple but not easy 47
The branding process 47
Brand summary and the challenges ahead 61
Conclusion 64
Case study: UEFA brand identity refresh 65
Key points from Chapter 2 72
References and further reading 72

03 Customer relationship management 75

Introduction to CRM 76
The power of CRM 79
What causes CRM failure? 81
vi Contents

What drives CRM success? 83

Databases 93
CRM implementation and agile planning 101
Key points from Chapter 3 107
References and further reading 107
Further information 109

04 Buyer behaviour 110

Introduction to understanding customer buying behaviour 111

Models of buyer behaviour 126
Psychological variables 134
Summary and conclusion 148
Key points from Chapter 4 149
Appendix 4.1: Hofacker’s online information processing 150
Appendix 4.2: The post-PC and, soon, post-mobile customer 151
Appendix 4.3: Unilever’s five steps to change behaviour 152
Appendix 4.4: Use and convenience replace trust and security 152
References and further reading 153
Further information 155

05 Communications theory 156

Introduction to communications theory 157

Communications models 163
Key points from Chapter 5 178
References and further reading 178
Further information 180

06 Marketing communications research 181

Introduction to market research and decision-making 182

The market research process 188
Types and costs of research 191
In conclusion 204
Key points from Chapter 6 205
References and further reading 205
Further information 206

07 Marketing communications agencies 208

Agency types 209

Agency structure 213
 Contents vii

Agency remuneration 217

Agency selection 220
Ongoing agency–client relationships 229
Agency issues 233
Summary and conclusion 234
Key points from Chapter 7 235
References 235
Further information 236

08 International marketing communications 238

The globalization of markets 239

International difficulties 244
International mistakes 251
Strategic global options 252
Agencies in the international arena 258
In conclusion 260
Key points from Chapter 8 261
References and further reading 261

09 The marketing communications plan 263

Introduction to the SOSTAC® marketing communications plan 264

Situation analysis 265
Objectives 268
Strategy 272
Tactics 280
Actions 280
Control 283
Key points from Chapter 9 292
References and further reading 292
Further information 294

10 The changing communications environment 295

Introduction 296
Political change 297
Economic change 303
Social change 307
Technology 311
Summary 314
Key points from Chapter 10 316
viii Contents

References and further reading 316

Further information 318

PA R T T WO Communications tools 321

11 Selling, social selling, marketing automation and martech 323

Introduction 324
Managing the sales force 334
Extending the sales force 341
Advantages and disadvantages of a sales team 346
Summary 346
Key points from Chapter 11 346
References and further reading 347

12 Advertising 348

Introduction to the changing nature of advertising 349

Data-driven ad campaigns 353
Creativity in ads 358
Case study: Rotating videos PPC sales funnel boosts ROAS: Ashley
HomeStore Facebook ad campaign 362
Case study: PPC ads boost ROI: Cover My Cab 375
Case study: Location-based ads: Managing a campaign 377
Unique device identifier 380
Visitor tracking 380
Case study: Behavioural mapping: Mini Countryman car (micro-case) 381
Case study: LBA rich media ads using weather data: Gillette
(micro-case) 382
Case study: LBA remarketing ads and OOH billboards: Thomson Holidays
(micro-case) 382
Case study: Viral TV ad reduces road deaths: DOE 383
Advantages and disadvantages of advertising 386
Key points from Chapter 12 387
References and further reading 388
Further information 390

13 Publicity and public relations 391

Introduction 392
New and old PR tools 396
Advantages and disadvantages of PR 412
 Contents ix

Case study: The gnome story that went viral 418

Case study: The Snack Dash viral game 422
Case study: Virgin Mobile’s new tariff 423
Key points from Chapter 13 425
References and further reading 425
Further information 426

14 Sponsorship 427

Introduction 428
Managing a sponsorship programme 432
Advantages and disadvantages of sponsorship 438
Case study: Sponsoring the national tour of Tim Peake’s spacecraft 440
Case study: Liberty Insurance and GAA 444
Key points from Chapter 14 447
References and further reading 447
Further information 448

15 Content marketing and other sales promotion 449

Content marketing 450

Managing content marketing 450
Sales promotions 462
Managing sales promotions 470
Sales promotion, ads, AR, engagement and gamification 474
Case study: Burger King’s ‘Burn that ad’ 474
Case study: Content marketing delivers competitive advantage:
Kelly HR 475
Case study: Topline’s advertising boosts Christmas promotion 479
Advantages and disadvantages 483
Key points from Chapter 15 484
References and further reading 484
Further information 485

16 Direct mail, email, messaging and chatbots 486

Introduction 487
Objectives 488
10 success factors 491
Issues and challenges 498
Managing a direct mail campaign 501
Action 502
Case study: Personalized videos for British Heart Foundation bike ride 505
x Contents

Case study: PayPal: Helping Britain’s online retailers to go mobile 512

Case study: Acronis automated marketing campaign 513
Advantages and disadvantages 517
Key points from Chapter 16 518
References and further reading 518
Further information 519

17 Exhibitions, events and experiential marketing 520

Introduction 521
Managing exhibitions 522
Case study: The RSA’s shockingly immersive VR experience (that saves
lives) 531
Case study: Google’s Curiosity Rooms: Experiential branding 538
Advantages and disadvantages 544
Key points from Chapter 17 545
References and further reading 545
Further information 545

18 Merchandising and point of sale 546

Introduction 547
Augmented reality in store and at home 549
Merchandising challenges 551
Retailer empathy required from brands 555
Retail strategy 556
Measuring merchandising effectiveness 561
Case study: Campbell’s soup: Where packaging and point-of-sale form a
foundation for an integrated campaign 562
Case study: Thomson Tours 564
Case study: Useful shopping apps can help 565
Advantages and disadvantages 566
Key points from Chapter 18 566
References and further reading 566
Further information 567

19 Packaging 568

Introduction 569
The designer’s tools 573
The packaging design process 580
Case study: Packaging with added value on-pack promotions 583
Case study: Brand range development in India 587
 Contents xi

Advantages and disadvantages 590

Key points from Chapter 19 590
References and further reading 591
Further information 591

20 Owned media – websites and social media 592

Introduction 593
Owned media 593
Website purpose 593
Successful websites 595
Successful social media 606
SEO 609
Case study: Social media content seeded cross industry influencers:
Zip World 611
Case study: Social media launches luxury fashion brand LOVI Ceylon 616
Case study: Integrated social media: New York Giants 625
Case study: Brazilian football club creates immortal fans via social
media 626
Case study: The Damned United, Brian Clough microsite 628
Case study: American Greetings e-cards optimized landing pages 630
Case study: Social media helps stop smoking: Using social media (and UGC
movies) to help 11- to 15-year-olds to stop smoking 632
Advantages and disadvantages 635
Key points from Chapter 20 635
References and further reading 636
Further information 637

Index 638

Additional resources for lecturers and students are

available at:
www.koganpage.com/marketingcommunications7
 xii

ABOUT THE AUTHORS

PR Smith innovative start-ups. From launching Christmas

Crackers in America to Short Game Golf in China,
Paul enjoys a challenge. He is currently advising the
SuperNode™, which is connecting all Northern
Europe’s windfarms with Southern Europe’s Solar
Parks to fulfil and deliver 100 per cent of all of
Europe’s future energy needs (https://supernode.
energy/). He is also Sri Lanka Golf Tours’ Managing
Partner, dedicated to creating inbound golf holidays
on Paradise Island, the ‘Pearl in the Indian Ocean’.
Finally, Paul is also founder and chief author of
the Great Sportsmanship Programme (https://
greatmomentsofsportsmanship.com/) an inspira-
tional NFP edutainment programme which, through
short stories about sportsmanship, encourages
youths to create a new generation of global citizens
with sportsmanship values while also boosting
interest in reading and sport. In short, it is designed
to change the world (one small step at a time).

Instagram: @prpsmith Twitter: @PR_Smith

Website: PRSmith.org
PR Smith is an international speaker, marketing
­consultant and author of six books (translated into
eight languages) renowned for their ‘edutainment’ Ze Zook
style. These include Digital Marketing Excellence (co-­
authored with Dave Chaffey) and the SOSTAC® Guide
to Writing Your Perfect Digital Marketing Plan. Paul
created the SOSTAC® planning framework, voted in
the top 3 business models worldwide by the Chartered
Institute of Marketing’s Centenary Poll and now
adopted by LinkedIn, KPMG and Greenpeace, as well
as hundreds of innovative start-ups. His SOSTAC®
­online portal at www.sostac.org helps professionals
learn how to write the perfect plan (in four minutes)
and perfect it thereafter. Professionals become
SOSTAC® Certified Planners, while consultancies and
agencies become SOSTAC® Certified Companies
and trainers/training companies become SOSTAC®
Certified Training Companies.
Paul delivers inspiring talks and workshops
around the world to professional associations and
private organizations (https://prsmith.org/home-
page/speaking/). Paul’s consulting and mentoring
covers government departments, blue-chips and
 About the Authors xiii

Ze is an integrated marketing author, lecturer and through his agency, KD7, both strategically and tac-
consultant with a background in the creative indus- tically, helping them grow primarily through inte-
tries, particularly those organizations embracing grating their digital channels.
digital transformation. Ze is also a visiting academic at the Grenoble
Ze has also helped many innovative start-ups in School of Management, guiding students on an
the UK, and in particular through partnerships with innovative and multichannel approach to business
brands such as Microsoft, Sainsbury’s and The and marketing. His written insights on the nature of
Prince’s Trust. More recently Ze has worked with digital, branding and web entrepreneurship have
ZenithOptimedia. appeared in publications including IGI Global and
Ze has worked with Paul over the past 25 years, UK Public Health, where he was recently commis-
firstly launching the award-winning, first three- sioned to explore the structure of their social media
Screen TV video explaining how public relations strategy. He is also a writer contributor to the
works. Since then, Ze and Paul worked together Native Advertising Institute on some of the latest
developing the world’s first digital marketing course topics on digital marketing.
delivered electronically (originally CDs, then Ze also has a passion for photography and lives
online). These original multimedia courses sold into in London and the South Coast of England with his
66 countries around the world and were adopted by wife and daughter. The family also spend a lot of
the Chartered Institute of Marketing, blue-chip time in France.
organizations like IBM and third level educational
institutions around the UK.
More recently, Ze’s consultancy has focused on Twitter: @MrZZ8Q Website: kd7.org.uk
the health and well-being sector, assisting clients
 xiv

P R E FAC E

I was playing golf with a friend, who asked me

what was the latest book I was working on (ex-
cuse his terrible grammar). When I told him it was
What’s new in the
7th edition?
the seventh edition, no less, of our best-selling mar-
keting communications book, he replied, “Well I In addition to demonstrating the maturing of mar-
hope you get it right this time!” I think we have. Ze keting automation, content marketing, single user
and I are delighted to have gathered an array of in- experience and the lifetime journey, we are delighted
triguing, cutting edge examples of marketing com- to tell you that we have included materials from the
munications in action, underpinned by academic best in the world including America’s Larry Kim
theory, all written in a very practical way. In fact, we (Facebook bots and unicorns) and Mark Schaefer
hope you enjoy it as we really want to ‘edutain’ you (content shock and the human-centred approach to
and perhaps even ‘wow’ you occasionally. As we marketing), Banksy (the street artist and his world’s
know, having to read through volumes of books can greatest PR stunt), Greenpeace, AI companies and
be fatiguing, so we try to lighten your load with the generally organizations that use both the left brain
occasional intriguing, controversial or even mildly (analytics and data) and the right brain (creative
humorous examples. thinking) approach to marketing.
Something that has become screamingly obvious We have a broader international range of exam-
is that tactical communications tools never work in ples, with world-class campaigns from the UK,
isolation. For many years now, we have been push- Europe, the USA, Ireland, India, Sri Lanka and Brazil.
ing marcomms integration, ie integrate everything We have put a lot more emphasis on data and AI
in order to leverage and maximize the impact of in particular. In fact, references to AI and data appear
each tactical marketing communications tool. In throughout the book. AI is here to stay. As is the
fact, we’ve been saying this for a quarter of a cen- clever use of data. We also explore the misuse of data.
tury (the first edition in 1993 was Marketing We also include the hidden Web and how it was
Communications: An integrated approach). Today, used by the Leave campaign, which was subse-
it is impossible to isolate any tactic, as marketers quently found to have broken the electoral laws and
today think in an integrated way – whether it is a advertising principles: ‘legal, decent, honest and
microsite built for an ad campaign with a contact truthful’. We include links to the hidden Web ads
strategy of an email followed by a tailored landing that Facebook initially refused to release. You can
page/microsite followed by some remarketing, mar- see the need for data protection, and hence the
keters today think integrated, which is great. You’ll importance of GDPR is emphasized.
see this in all the mini cases at the end of each chap- Hence there is a need for, and we encourage, a
ter in Part Two. more responsible approach to marketing, as dem-
Even this is changing, as AI-driven chatbots can onstrated by Mark Schaefer’s human-centred mar-
shorten this sequence and deliver far better leads, as keting. His infographic on p 315 should generate a
we show in Chapter 11. From time to time, you will heated discussion or two.
think, ‘Hang on, shouldn’t this case study actually Finally, the last photo in the book (p 636)
be in another chapter?’, because it will feature other includes ethics, which, ironically, might be objec-
tactical tools almost as much as it does the tool tionable to some, but to us it is a brilliant example
being discussed in that chapter. Personalized videos of using ‘owned media’ by a small semi-pro football
at scale appear in several places. Pedigree’s AI-driven club in the south of England.
app is in the packaging chapter (Chapter 19), but it The application of the SOSTAC® planning frame-
could have featured in content marketing and sales work has been updated in Part One and applied
promotion. You will see a lot of this. throughout the second half of the book. Overall, we
hope you find this edition more challenging and
enlightening than ever before. Read on.
 xv

ABOUT THIS BOOK

T his book should not be read from cover to cover

but rather it should be used as a reference when
addressing a particular aspect of marketing com-
from both small organizations with small budgets
and larger businesses with multi-billion-dollar
budgets.
munications. The integrated nature of the subject This book should prove useful to anyone inter-
does, however, refer the reader to other chapters ested, or working, in marketing. The reader will dis-
and sections that are relevant to the particular area cover that all of the communication tools can and
of interest. The anecdotal style, examples, case stud- should integrate with each other, as shown in Figure
ies, questions, key points and sections have been 0.2 and explained at the end of Chapter 1. Equally
carefully structured so that the reader can dip into we need to be able to think creatively (right brain)
an area of interest, absorb the information and and analytically (left brain) to make better-quality
cross-refer if required. This allows the reader to ex- marketing decisions to ensure we satisfy exactly
tract specific answers quickly and easily. This book what our stakeholders need, at the right time in the
is designed to entertain as well as inform and so it is right place amidst the white heat of competition.
hoped that when dipping into a particular area, the It is sometimes difficult to separate and catego-
reader will be lured into reading more. rize an activity as being one type of tool or another.
Part 1 (see Figure 0.1), Chapter 1 introduces the For example, direct marketing and sales promo-
new thinking and new tools (largely driven by mar- tions should probably be called ‘direct promotions’
keting automation, social media, virtual worlds and since they both more than likely involve each other.
new analytics tools) alongside 100-year-old busi- The chapters are not listed in order of importance.
ness principles that are, surprisingly, much required Selling and sales management is not always included
today. Part 1 continues to build a background to in a marketing communications budget but the
marketing communications by exploring branding, sales force is a potent form of communication and
customer relationship management, buyer behav- generally they (or the sales manager) report to the
iour and communications theory and how informa- marketing manager. In fact it has been put to the
tion reduces risk (what information market research top of the list because all the other chapters thereaf-
can and cannot provide), how to work with agen- ter tend to lead into each other.
cies and consultancies of all types, moving with the The successful application of the marketing com-
changing business environment, international munications mix is helped by an understanding of
marketing and ultimately shows how to write a
­ communication theory and buyer behaviour theory.
marketing communications plan using the simple Marketing research can provide some practical and
SOSTAC® planning framework. specific answers to the questions that the theories
Part 2 covers specific marketing communication generate. This provides the building blocks for the
tools that marketing professionals have to manage marketing communications plan, which draws
at some time or other. These include selling and upon an understanding of how agencies operate
sales management (and Key Account Management), and how different media work. The details of the
advertising, PR, sponsorship, sales promotion (par- plan are worked out within the sometimes complex,
ticularly free ‘content marketing’), direct mail, exhi- but always integrated, web of the marketing com-
bitions (all online and offline), packaging, and munications mix (see Figure 0.2). The changing
finally, websites that work and social media that marketing communications environment and inter-
wins. The case studies at the end of each chapter in national opportunities/threats constantly affect the
Part 2 have been carefully selected to show a range whole marketing communications mix. The world
of different types and sizes of organizations using has moved on since the sixth edition.
various communications tools across a range of dif- Different organizations allocate the same com-
ferent industries and markets. Materials are drawn munication tools to different departments/budgets,
 xvi About this Book

F I G U R E 0.1 Part One: Background to the communications process

g communications env
ngin iron
e cha me
Th nt

New marketing
communications
mix
nt
me

Branding CRM
iron

Marketing

The c
communications
munications env

plan Buyer

hanging communicat
Communications behaviour
theory theory
Market
research
ging com

Agencies
han

ions
c

env
he
T

iro
International nm
en

markets
t

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ec
han nt
ging
comm ronme
unications envi
 About this Book xvii

F I G U R E 0.2  All tactical communications tools integrate with almost all other communications
tools

g,
and m tomation
marke social sellin

artech
ting au
Ow eb al m

,
Selling
w ci
ne site ed
so

d s a ia

ing
m n

s
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e
dv
ia

A
–

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r Sp
Me oint o on
p
and so
rs
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othe
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i
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o
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 xviii About this Book

eg exhibitions may be seen to be part of public rela- We are always looking to update the material
tions, although the sales team will man the stand within the book and our readers are invited to con-
and benefit from extra sales. Sponsorship is consid- tact us with any ideas, suggestions and contribu-
ered by some to be an extension of advertising, tions to the next edition. As our subject of marketing
while others consider it to be part of PR. And no communications is ever changing, we are keen to
one is too sure about whose budget covers the web- keep the content fresh and lively. Please post your
site. Regardless of classifications, ownership and examples of excellent marketing communications
responsibilities, each tool must integrate with many to PR Smith Marketing on LinkedIn or Facebook or
others. any of these:

PRSmith.org PRSmithMarketing PRSmithMarketing PR_Smith PRSmith1000 PRPSmith SOSTAC.org

 xix

K E Y F E AT U R E S O F T H I S B O O K

Learning objectives – these will provide you with Feature boxes – quotes and pertinent points of
an outline of what we will be covering in each ­interest to punctuate the discussion.
chapter.

LEARNING OBJECTIVES No brand, no cattle

By the end of this chapter you will be able to: The term ‘brand’ comes from the old Norse verb
● appreciate the importance of branding; brandr, which meant to burn, and which eventually
became a noun and adjective in medieval English.
● list the stages in building a brand process; The noun ‘brand’ meant flame, fire or torch, and
● avoid the classical branding mistakes; the adjective meant burning, hence ‘brand hot’.
Animals were marked with red-hot branding irons
● understand why brands need to be maintained.

Case studies – selected to show a variety of differ-

ent types and sizes of organizations using various
communications tools across a range of different Further information – contact information for
industries and markets. ­organizations relevant to the topics discussed.

C A S E S T U DY PPC ads boost ROI: Cover My Cab Further information

The situation The challenge
Cover My Cab has more than 30 years’ experience After four months working on Cover My Cab’s paid search Market Research Society (MRS) Ofcom
providing specialist insurance products to taxi drivers, campaigns, results were good. However, ClickThrough 15 Northburgh Street Riverside House
fleet owners and taxi operators. The brand is part of J&M suspected more gains could be made by opening the
Insurance, a ‘business-to-business’ insurance firm that monthly budget caps (ie removing the daily cap or monthly London EC1V 0JR 2a Southwark Bridge Road
has served the taxi industry for longer than any other budget) and opting, instead, for an ‘always on’ PPC
specialist broker. strategy, to get 24/7 visibility (since users search 24/7).
Tel: +44 (0)20 7490 4911 London SE1 9HA
ClickThrough Marketing began working with Cover My www.mrs.org.uk Tel: +44 (0)300 123 3000
Cab in April helping to manage and optimize its PPC
campaigns. www.ofcom.org.uk

Key points – a checklist of all the issues covered Online resources for lecturers – contain PowerPoint
within the chapter. slide decks for each chapter, links to videos mentioned
in the book plus others, links to PR Smith blog posts
relevant to each chapter and questions for each
Key points from Chapter 2 ­chapter. Go to:
www.koganpage.com/marketingcommunications7
● Brands help customers and the organizations ● There
behind them. brand-
● Branding is a strategic issue. ● Brand
● Branding can create competitive advantage. mainta
 xx

A C K N OW L E D G E M E N T S

Danni Adams, Greenpeace Chloe Haynes, Cadbury

Nico Ainsworth, Colenso BBDO Christine Hegarty, Road Safety Authority
Kristina Allen, ion interactive Neil Hegarty, BMP Optimum
Warren Allot, Photographer Colette Hiller, Sing London
Zaid Al-Zaidy, McCann, London Kenny Hoang, BlitzMetrics
Mike Backs, Digital Doughnut Teresa Horscroft, Eureka PR
Jeremy Baker John Horsley, Digital Doughnut
Banksy, Courtesy of Pest Control Office Martin Hutchins, Cambridge Professional
Riccardo Benzo, Managing Expectations Academy
Lacey Berrien, Drift Peter ‘Magic’ Johnston, MediaZoo Studios
Tanya Binks, Wild Card Justin Jones, Digital Marketing Consultant (AI job
Michael Bland, Author reduction)
Sarah Botterill, European Interactive Advertising Nigel Jones, Herdman Jones Associates Ltd
Association Paul Kemp-Robertson, Contagious
Adrian Brady, Eulogy Larry Kim, MobileMonkey.com
Michelle Brammer, GaggleAMP Jeff Kirk, Corporate Magic
JoAnna Brandi, The Customer Care Coach® Isobel Kerr-Newell, Saatchi & Saatchi
Alan Briefel, StratCom Helen Lamb European Sponsorship Association
Scott Brinker, ion international Mike Langford, BT
Ged Carroll, Racepoint Global Basil Long, Kroner Consultants
Joe Carter, Colenso BBDO Jez Lysaght, Green Tomato Cars
Juan Pablo Castro, LanderApp.com Toby Marsden, Survival International
Dr Dave Chaffey, Smart Insights Ian Maynard, Murphy Cobb Associates
Mary Pat Clark, Pew Research Center Davy McDonald, davymac.com
Alistair Clay, Plan UK Paul McFarland, Goldhawk
John Coffey, Liberty Insurance Gerry McGovern
Amelia Collins, Photographer Sharon McLaughlin, McLaughlin Gibson
Keith Curley, Muzu.TV Communications
Emmanuel de Hemptinne, NEO DARWIN Blair Metcalfe, Ogilvy PR
Lucy Edgar, Kantar Millward Brown Kevin Miller, Whitehawk FC
Allan Edwards, Ogilvy PR Walter Miltenberger, Crystal
Jenny Ellery, Saatchi & Saatchi Claire Mitchell, Natural History Museum
Jennifer Faughnan, Zip Adventure Holidays Matt Monfredi, Photographer
Patrick Foley, Samsung Ian Morton, Happy Tuesdays
Annie Fong, Mischief PR Jorian Murray, DDB London
Stuart Fowkes, Oxfam Jasmin Naim, Kogan Page
Luke Frake, Space Between Orson Nava, Director/Content Producer
Alice Franklin, Contagious Kasia Nieduzak, Greenpeace Comms
Alex Gibson, The Persuaders, Dublin Radio FM Julia O’Brien, Moonshine Media
Rob Gotlieb, Muzu.TV Deborah O’Dowd, Greenpeace
Jonathan Grant, Grenadier Advertising Brian O’Neill, Freshideas.ie Ltd
Mark Grey, Grey Corporate Barry O’Sullivan, BBDO Dublin
Gavin Grimes, McBoom Paul O’Sullivan, Dublin Institute of Technology
Paul Hague, B2B International Marie Page, Musicademy.com
Dr Hansen, Hansen Hina Patel, Creating Results From Vision Ltd
 Acknowledgements xxi

Alexandra Phelan, Paddy Power Dr Meixian Song, University of Exeter, School of

Jennifer Powell, Jennifer Powell, inc. Law
Ben Queenborough, Photographer Jessie Soohyun Park, Samsung
Suresh Raj, Borkowski Tery Spataro, CCG Catalyst Consulting Group
Charles Randall, SAS Solutions Saffron Steele, Halpern PR
Mark Read, Photographer Frances Still, Science Museum Group
Tim Redgate, Tim Redgate Consultancy Merlin Stone, The Customer Framework
Josh Rex, This Is Open Dr Peter Tan, World Financial Group
Kevin Roberts, Saatchi & Saatchi Jonathan Taylor, former co-author
Phil Robinson, ClickThrough Jamie Tosh, Kick4change
Danielle Sammeroff, Fuse Jon Twomey, Student Support Group
Dennis Sandler, PACE University Neil Verlander, Friends of the Earth
Mark Schaefer, BusinessesGrow.com Salvador Nissi Vilcovsky, Memomi
Richard Sedley, Seren Gian Walker, Network Co-op Ltd
Heather Sewell, ICE Steve Wellington, Havavision Records
Adam Sharp, CleverTouch Todd Wheatland, King Content
Joel Simon, Flickerpix Animations Ltd James Whelan, James Whelan Butchers
Greg Skloot, Crystal Cameron James Wilson and @TheDiigitals
Graeme Slattery, PSG Communications Jamie Yarborough, BlitzMetrics

Ze’s particular thanks: I dedicate this work to my Paul’s particular thanks to Aran, Cian and Lily and
wife, Revital and daughter, Nessa, for their patience the ever-patient, lovely, Beverley. And lastly, a very
and understanding and to my mother and father for special thanks to Owen Palmer (RIP) who gave me
their acceptance and nourishment of my being. my first break in UK Academia and never ceased to
inspire and encourage me even long after he had
retired.
xxii

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 1

PART ONE
Communications
background and
theories
2

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 3

01
New integrated
marketing
communications
LEARNING OBJECTIVES
By the end of this chapter you will be able to:
●● understand the importance of customer-orientated thinking;
●● understand the need for both left-brain analytics and right-brain creativity;
●● embrace the 4th Industrial Revolution, led by data, AI and digital developments;
●● consider 10 hot marketing topics;
●● see how everything can fit into a carefully structured marketing plan.

Introduction to integrated marketing Martech stack 17

communications 4 Here come the bots 17
Marketing orientation 4 AI and data analytics 18
Customer-centric mission 4 10 hot marketing topics 19
Customer empathy 4 1 The customer lifetime journey 19
Customer experience 5 2 Customer experience and company mission 19
Customer service time bomb 5 3 Content marketing 19
A sense of purpose 6 4 Personalization 20
100-year-old principles still win today 6 5 Omnichannel marketing 20
Happiness is a business model 7 6 Influencer marketing 20
Integrating left-brain and right-brain thinking 7 7 Agile marketing (agile and optimized) 21
Analysis builds a foundation for success 7 8 Marketing automation 21
Nurture creativity 10 9 The human touch 21
Nurture the inquisitive mind 11 10 Accelerated change 21
Marketing communications is part of customer The perfect plan: SOSTAC® planning
experience 12 framework 25
Integrate data, staff and communications 12
Enter the boardroom opportunity 13 Top 10 tips for world-class marketing
communications 26
The 4th Industrial Revolution 14
Positive or negative revolution 14 Key points from Chapter 1 26
Companies must invest in data tech and data skills to Endnotes 26
survive 15
Data-driven businesses 15 References and further reading 27
Digital transformation 15 Further information 29
 4 Part One | Communications Background and Theories

third.’ Their founder Jack Ma says, ‘We know well

Introduction to integrated we haven’t survived because our strategies are far-
marketing communications sighted and brilliant, or because our execution is
perfect, but because for 15 years we have persevered
in our mission.’ Meanwhile, top American digital
Marketing orientation marketing blogger, Brian Solis (2015) insists that
‘What is the single most important reason why you businesses must empathize with customers and de-
have a website?’ is a great question which we ask velop strong missions.
when we run workshops. Surprisingly, it generates a
lot of wrong answers, even from experienced mar-
keters. Answers like: ‘to sell more’ or ‘to give infor- Temper profit with customer empathy
mation’ or ‘to collect email addresses’ or ‘to show
off our new services’ or ‘to compete with our com- ‘Learn to temper (balance) their profit goals with
petitors’ and so on. These are wrong answers. They empathy and look at the bottom line as part of a
are not the primary reason. There is only one pri- larger mission, doctrine or ethos.’
mary reason: ‘to help customers’. If you can help Solis (2015)
your customers better than your competitors you
will convert more visitors into sales, and eventually
convert more customers into lifetime customers. All
the initial answers were product-orientated – about Customer empathy
business benefits rather than customer benefits. So Success ‘requires true empathy for what your custom-
keep asking, ‘How does this help my customers?’ ers are thinking and an ability to identify what they
In fact, Peter Drucker, known as ‘the father of want or need even before they do’ (Solis, 2015). Apple
business’ and arguably America’s greatest business consistently did it with the Mac, iPhone and iPad.
author, once said ‘The purpose of business is to cre- You ‘have to see your customers for who they are be-
ate and keep a customer’. We go further and say, coming, not just who they are today’, Solis continues.
‘There is only one reason that you are in business: to ‘This all starts by defining the experience you want
help customers.’ The moment you stop helping cus- your customers to have. How do you want them to
tomers better than your competitors is the moment feel? What should they share? Define it. Build it.’
you start sliding down the subtle, slippery slope to Building it includes integrating marketing systems, lo-
lost sales and spiralling down towards extinction. gistics systems, customer relationship management
(CRM) systems. Being customer-centric goes beyond
the marketing team, it has to be in customer-centric
‘There is only one reason why you are in operations also. It also requires a different perspec-
business. It is, simply, to help customers. The tive. Campaigns cannot reach buyers if, say, an adver-
moment you stop helping customers (better than tising campaign is shorter than a buyer’s journey.
your competitors do) is the moment your
business starts to die.’
PR Smith
Long-term success – think about
customers differently

‘To succeed means thinking about customers

Customer-centric mission differently as groups of connected people and
not simply demographics. It requires a level of
Now consider one of the world’s largest ecommerce
leadership that can see something others don’t
companies, yet relatively unknown (to some west-
erners), they’re called Alibaba.Their c­ ustomer-centric or find inspiration in what others feel or hope to
mission reads: ‘making it easier to do business feel. These traits – not the technology itself –
across the world’, and is followed by their motto: are what will define the most resilient
‘Customer first, employee second, shareholder companies in the years to come.’
Solis (2015)
 1 | New Integrated Marketing Communications 5

Customer experience came to IT. He wanted to wash his hands of

responsibility. It was not his domain. IT, it seems,
Although customers are on a multichannel journey
(from websites to offline stores and back to social is not the responsibility of senior managers or
media, etc), they want a single, well-defined, cus- CEOs. They have much more important things to
tomer experience across channels. Whether they do, obviously.’
touch (have contact with) your brand via your mo- McGovern (2010)
bile site, your website, your app, your in-store dis- Has this changed since 2010?
play, your staff, your social media, your customer
care, telesales, direct mail – it is all one journey for
the customer. They want a nice consistent experi- Combine the sloppy service with customers’ lower
ence, regardless of channel. tolerance levels: less time, less attention and less pa-
tience with inefficient service. Don’t customers like
endless automated telephone queuing systems, ro-
Customer service time bomb botic rerouting or, if they are lucky, after queuing
Although some companies have managed to im- and rerouting, getting to speak to someone whom
prove their customer services, the continual culling they cannot understand, or to someone who cannot
of employees and general cost cutting combined solve the problem, who then puts them back into a
with sloppy marketing execution has put marketers queuing system? It seems that many brands have
on the cusp of a customer revolution. It may well be gone backwards in marketing.
that the really clever chatbots that learn to become How many people have had bad experiences
experts and really help customers to find solutions online with websites that are confusing, have dead
quickly and in a 24/7/365 always-friendly manner ends or just don’t work, sites that waste precious time
will be the winners. and cause irritation? And all the time advertising
Many customers are angry, irritated, impatient budgets are wasted driving customers to these sites.
and ready to switch to another brand as soon as Harvard’s Ram Charan and business CEO Larry
something better becomes available. In a word, they Bossidy many years ago wrote a book claiming that
are dissatisfied. We have gone backwards in market- the last source of real sustainable competitive
ing. Look around. Many brands have falling satis- advantage was the ability to execute plans better
faction scores, sloppy websites, automated telephone than the competitors. Called Execution: The disci-
queuing, customer service people who can’t answer pline of getting things done (2002), it highlighted
questions and others who simply don’t really care. the importance of executing with excellence and
How many bad experiences do customers suffer passion the small things, the basic things including
while seeking service from a utility, a phone com- customer service.
pany or a bank either on the phone or on a website? So if companies get worse at marketing then this
creates a huge opportunity for those organizations
that have a process for listening to their customers,
The manager’s online banking system: A and continually improving and staying relevant.
foreign country he rarely visited
Nightmare on Banking Street
‘Recently, I had problems with online banking.
After lots of frustration with technical support, I ‘I hadn’t physically visited a bank in years.
rang my bank manager. In the past, whenever I However, when I was doing a favour for a friend,
had a problem he had been extremely helpful I walked into a well-known high street branch in
and made sure it was resolved immediately. This London on a Saturday afternoon to be greeted
time around, things were different. “I’m not almost immediately by a friendly-faced customer
technical”, he told me. He began to talk about service clerk, in a nicely branded blazer, who
his bank’s online banking service as if it were a pleasantly informed me that the queue in front of
foreign country he had rarely visited. He was me would take 40 minutes. I thought I had
behaving like a typical senior manager when it
 6 Part One | Communications Background and Theories

stepped into a time warp. What amazed me was ‘Companies who put purpose and passion at the
that other customers seemed prepared to queue. heart of what they do are blowing away the S&P
Was it always like this? Then it occurred to me 500 averages when it comes to their
that instant automated ATMs, although quick, do performance.’
effectively ask customers to sometimes stand in Sisodia et al (2014)
the rain, block prying eyes and hidden cameras
‘Strive not to be a success, but rather to be of
from stealing your PIN and hope that the
value.’
muggers around the corner have not seen you
Albert Einstein
yet. Fear has increased in many people’s lives.’
PR Smith

100-year-old principles still win

A sense of purpose today
Ask: ‘Why does your brand matter?’ If you don’t Despite the emergence of digital body language,
know, and no other colleagues know, then nobody marketing automation, programmatic advertising,
else will care. A sense of purpose at work is impor- retargeting, content marketing, multichannel fun-
tant – partly because customers like to buy brands nels, hyper competition (we’ll explore these later),
that stand for something and partly because the same old marketing principle remains intact: be
­employees like to work for an organization that customer-centric. It’s interesting to see that al-
stands for something more than just making money. though customers are changing, technology leaps
Something deeper. are rampaging through markets and wonderful
new tools are becoming available to marketers, the
●● Johnson & Johnson support nurses;
same basic business principles survive from over
Procter & Gamble support mums.
100 years ago. Interpreted by Mark Zwilling
●● In 10 years, ‘firms of endearment’ grew (2014), here are the highly successful industrialist
collectively at a rate of 1,000 per cent + (and subsequent philanthropist) Scottish American
●● In 10 years, Standard & Poor’s 500 companies Andrew Carnegie’s top tips (from 1889), which still
grew collectively at a rate of 122 per cent work today.
Andrew Carnegie’s top 10 tips for success:
1 Definiteness of purpose (a real and
‘Find your sense of purpose – your mission – passionate mission).
your passion. You simply cannot drive sustained 2 Master-mind alliance (marketing marriages
performance and high levels of achievement in and strategic alliances).
one’s job and career without being fully engaged 3 Going the extra mile (help customers).
and feeling a strong sense of purpose… The
4 Applied faith (believe in the opportunity you
common element that often is the spark plug for
see).
change and progress is a sense of purpose. We
have found this applies to people in the 5 Personal initiative (be proactive).
beginning of their careers as much as it does to 6 Imagination (ability to see opportunities/
middle managers and senior leaders.’ vision).
Moore (2017) 7 Enthusiasm (a contagious quality).
‘It’s not about merit, professionalism, or quality. It 8 Accurate thinking (analyse carefully before
is about faith, belief, conviction, courage, and deciding).
meaning. Because the brutal reality of today’s 9 Concentration of effort (on key success
new world is this: If you don’t stand for something factors).
you’re dead; it’s just a question of when.’ 10 Profiting by adversity (learn and improve
Sisodia et al (2014) from failure).
 1 | New Integrated Marketing Communications 7

Zwilling’s (2014) interpretation of Carnegie’s tips is happiness and are committed to creating an environ-
worth a read. There are valuable lessons for today’s ment and opportunities that ‘nurture your passions’
marketers stored in ancient wisdom. For example, and ‘to love what you do. And if you demonstrate a
arguably the best marketing book ever written is a love or passion for what you do, we’ll help you to
2,000-year-old book, The Art of War, by the Chinese build the skills and obtain the experience that will
military strategist, Sun Tzu, who always believed that empower you to ace your career’ (Capgemini, 2018).
battles could be won without confrontation. Proper
application of intelligence wins wars, often peace-
fully. A few thousand years later, we (in the West) are
getting excited about the power of analytics. Integrating left-brain and
right-brain thinking
Stop, look at who you are and what your Analytics (left-brain thinking) and creativity (right-
business is for brain thinking) are both necessary in marketing
communications to break through the clutter of
‘If you believe your business is a machine for noise and hyper-competition. ‘Relevant creativity’
making you rich, you are going down the wrong means creating products and services and commu-
road. If you believe your purpose is to make the nications that are always deemed to be relevant
world a better place, then do so, and wealth will (and useful) by your target markets. Although ana-
come to you.’ lytics often refers to Google Analytics or similar
Witzel (2015) analytical software, we are broadening the term
analytics to include analysing customer and com-
petitor behaviour via all forms of market research.

Happiness is a business model

Analysis builds a foundation
Happy employees want to create happy customers,
which helps to generate sales, repeat sales, better mar- for success
gins, bigger profits and ultimately happy s­ hareholders. As previously mentioned, arguably the greatest
marketing book ever is The Art of War, written over
2,000 years ago by the Chinese military strategist
Sun Tzu (translated by Wing, 1989). Most senior
Happy employees = happy customers = happy marketers have a copy of it on their shelves. It has
shareholders become a classic read, particularly for some enlight-
ened marketing managers. Interestingly, confronta-
tion, or war, is seen as a last resort and the best
military strategies win the war without any blood-
‘It’s possible to “suck the fluffiness out of happi- shed. They win wars through intelligence.
ness” and make it real, measurable, and tangible’ ‘Much computation’ or much analysis is required.
(Kuppler, 2014). This means clearly defining values The better the analysis, the easier the decisions will be
that actually create a culture such as integrity and later. Decisions about strategy and tactics become a
being innovative. Leaders then must ensure every- lot easier when you know your customers, your com-
one is committed to running a values-driven organ- petitors, your competencies and resources as well as
ization in both good times and bad times. market trends. In fact, you need to know your cus-
There are different approaches to maintaining tomers and prospects better than they know them-
those happy values throughout the organization. For selves. Old tools (in-depth discussions) and more
example, Zappos ask their employees to summarize contemporary tools like digital body language (ana-
what the Zappos culture means to them. These lysing click behaviour on your website) both give
answers are then published unedited (other than marketers vital information that helps deliver better
typos corrected) in a Zappos Culture Book for every- messages (more relevant messages), better websites,
one to see. Capgemini take a different approach to apps, ads, presentations, sales pitches – you name it.
 8 Part One | Communications Background and Theories

That’s why half of your marketing communica- Customers do not always

tions plan should be devoted to the situation analysis.
It doesn’t have to be at the front of the plan (you can understand their own needs
dump a lot of it in the appendices) but the detailed However valuable market research is, significant
analysis must be carried out if you are to succeed. creative leaps can sometimes be too difficult for cus-
The first year you do this analysis it will be particu- tomers to grasp. Therefore, negative customer feed-
larly challenging, but as you find better (and often back for innovations (particularly discontinuous
free) sources for highly relevant information, the innovations/significant innovations) can sometimes
analysis gets easier, the intelligent information gets be misleading. In some cases, ‘Listening too much to
stronger and consequently, you make more informed customer input is a recipe for a disaster’ (Christensen,
decisions. This ultimately boosts your results. 2003). ‘If I’d listened to my customers, I would have
More good news – there is a plethora of new lis- invented a faster horse,’ said Henry Ford.
tening tools and analytic tools available to market- Whoever could have imagined that a device cre-
ers. Although traditional market research is still ated for engineers to communicate with each other
useful, there are faster ways of monitoring online would one day become a global necessity for all
discussions and analysing customers, competitors young people (text messaging)? Whoever could
and spotting trends. have imagined that people would walk around with
invisible vinyl record players on their heads (stream-
ing music with headphones)? Whoever could have
imagined a nation seemingly talking loudly to them-
‘All markets are conversations’ declared the selves (hands-free mobile phones)?
influential Cluetrain Manifesto (Levine et al, 2000). Here are some classic quotations that demon-
The subsequent rampant growth of social media strate how, not just customers, but even experts in
since that time confirms the classic Cluetrain their field, could not see the benefit of a significant
vision. innovation that subsequently went on to become a
massive global success:
Telephone: ‘This “telephone” has too many
‘The old marketing ship is sinking.’ All marketers shortcomings to be seriously considered as a
need to monitor, analyse and engage in these con- means of communication. The device is
versations because the old ‘shouting’ model, consist- inherently of no value to us’ (Western Union,
ing of pumping out advertising, PR and marketing internal memo, 1876).
content through social media channels (‘shouting’) Radio: ‘The wireless music box has no
no longer works as well as it used to. imaginable commercial value. Who would
pay for a message sent to nobody in
particular?’ (David Sarnoff’s associates in
F I G U R E 1. 1  The old marketing ship is
response to his urgings for investment in the
sinking radio in the 1920s).
Movies (with sound): ‘Who the hell wants to
hear actors talk?’ (Harry M Warner, Warner
Bros, 1927).
TV: ‘TV will never be a serious competitor to
radio because people must sit and keep their
eyes glued on a screen. The average American
family doesn’t have time for it’ (New York
Times, 1939).
PCs: ‘I think there is a world market for maybe
five computers’ (Thomas Watson, Chairman
of IBM, 1943).
SOURCE: Photo courtesy of DavyMac.com
 1 | New Integrated Marketing Communications 9

Home PCs: ‘There is no reason for any unmet needs and then applied s­ cience and creativ-
individuals to have a computer in their ity to fill them. The first example of Edison’s suc-
home’ (Ken Olsen, President, Chairman and cess using a ‘needs-first’ a­ pproach to i­nvention is
Founder of Digital Equipment Corp, 1977). one we seldom associate with him: document du-
The Beatles: ‘There is no demand for guitar plication. Post-Civil War newspaper accounts of
bands’ (Decca Records turning down The the rebuilding of the South and the tremendous
Beatles, 1962). demand it created for insurance policies led him to
think that the insurance business could use some
Looking back on it, there are many innovations in efficiencies. Edison got permission from insurance
common use now, the need for which simply did not agents to watch their clerks at work. He saw that
exist five or ten years ago. This applies to both most of their day was spent hand-copying docu-
­business-to-customer (B2C) and ­business-to-business ments for each party to the insurance sale instead
(B2B) markets. As organizations, and marketers in of selling insurance. Edison realized that if he
particular, embrace creative thinking, new solutions could invent something that would save both the
will emerge and contribute to continued success insurance clerks’ and agents’ time writing, they
once we learn to think ‘outside the box’. could all make more money (Caldicott, 2010).
Interestingly, today’s top CEOs spend time with
customers. In fact Martin Sorrell, CEO of the
world’s largest communications services group
‘Seeing what everyone else can see but
($66 billion turnover), spends ­one-third of his time
thinking what no one else has thought’ with clients (Rogers, 2014).

‘It’s seeing one thing in terms of something else.

That eureka moment. You don’t have to be a
Edison combined creativity
brilliant novelist or painter or musician… it can with customer needs
be about some private matter. It can be about Thomas Edison was indeed a creative genius, but
economics. It can be while you are reading a it was not until he discovered some of the princi-
novel, you suddenly make a connection that ples of marketing that he found increased success.
suddenly gives you an insight that no one else One of his first inventions was, although much
has had. Someone defined science as “seeing needed, a flop. In 1869 he created and patented an
what everyone else can see but thinking what electronic vote recorder, which tallied the votes in
no one else has thought”.’ the Massachusetts state legislature faster than the
Greenfield (2007) chamber’s old hand-tab system. ‘To Edison’s as-
tonishment, it flopped. Edison had not taken into
account legislators’ habits. They don’t like to vote
quickly and efficiently. They do like to lobby their
Market research: A fundamental fellow legislators as voting takes place. Edison had
a great idea, but he completely misunderstood the
part of Edison’s creative process needs of his customers’ (Caldicott, 2010). He
Despite the lack of vision by many chief executive learned from his failure the relationship between
officers (CEOs) and the challenge of researching invention and marketing. Edison learned that mar-
innovations (since customers often don’t know keting and invention must be integrated. ‘Anything
what they want, particularly with innovations), that won’t sell, I don’t want to invent’, he said. ‘Its
the United States’ greatest inventor, Thomas sale is proof of utility, and utility is success.’ He
Edison, used market research creatively in the 19th realized he needed to put the customers’ needs first
century. He literally went to homes and places of and tailor his thinking accordingly, despite any
work and analysed what people did in order to temptation to invent for invention’s sake. His
gain insight to invent products that could help change of mindset led to tremendous success
them do it better and faster. He looked first for (Caldicott, 2010).
 10 Part One | Communications Background and Theories

Anything that won’t sell, I don’t want to Creativity is a blood sport

invent The reality is that creativity is hard work. And
managing creativity is, as Harvard’s Professor
John Kao says,
‘This was said by Thomas Edison, best known
for the light bulb. He was a prolific inventor, if anything, even harder work. It has nothing to do
registering an extraordinary 1,093 US patents with finding a nice safe place for people to goof
and 1,293 international patents. The six off. Managing creativity is much more difficult.
industries he pioneered between 1873 and It means finding an appropriate place for people
1905 – and their offshoots – are estimated to be to contend and collaborate – even if they don’t
particularly want to. It means scrounging from
worth more than $1 trillion today. He was one of
always-limited resources. It means controlling the
the world’s first market researchers.’
uncontrollable, or at least unpredictable, process.
Caldicott (2010) Creativity, for many, is a blood sport.
Kao (1997)
Nurturing creativity and channelling it in the right
Nurture creativity way is hard work. As Ed Catmull said in the HBR,
Look at the more successful companies out there; ‘If you want to be original, you have to accept the
they nurture creativity. It is not accidental. The im- uncertainty, even when it’s uncomfortable, and have
portance of creativity is recognized, encouraged and the capability to recover when your organization
nurtured. Listen to what some of these organiza- takes a big risk and fails. What’s the key to being
tions say: able to recover? Talented people!’ Such people are
not so easy to find (Catmull, 2008).
●● ‘Either you’ll learn to acquire and cultivate The Forbes columnist, Greg Satell (2013), agrees
[creative people] or you’ll be eaten alive’ and emphasizes that creative collaboration is
(Leon Royer, Executive Director, 3M). ­absolutely essential: ‘Creativity is no longer a “solo
●● ‘My job is to listen to, search for, think of, act.” Today, collaboration is not just important, it’s
and spread ideas, to expose people to good absolutely essential and that’s why digital market-
ideas and role models’ (Jack Welch, former ing is so hard.’
CEO, GE).
●● ‘The first step in the creative process is hiring Create added value and relevant
the best of the best. This is how HP content
maintains an environment that crackles with
Digital can create so much added value for the cus-
creativity and intellectual spirit’ (Mary
tomer. Take a look at the website of the Sistine Chapel:
Patterson, former Director of Corporate
http://www.vatican.va/various/cappelle/sistina_
Engineering, Hewlett-Packard).
vr/index.html. This is the best website in the world
●● ‘To make money in a disinflationary period (well it’s my favourite and it’s only got two buttons).
takes real innovation and creativity at all Arguably, this digital experience is better than the
levels of the corporation’ (Michael Fradette, real-world ‘product experience’. The Sistine Chapel
Manufacturing Consultant, Deloitte & website allows visitors to look at Michelangelo’s
Touche). paintings for as long as they want, climb up the walls
and examine the stunning art. They can go right up to
the ceiling and even see where Michelangelo painted
Creativity – in the mushy word category? donkey ears on some of the bishops that he didn’t
like. All of these things you cannot do if you visit the
‘For many, the word “creativity” is as soft as chapel. Many people tell me that the digital experi-
“nice”. Such people had better revise their ence is better than the real-world visit (in which you
lexicons.’ have to keep moving, cannot take photos and it’s busy
John Kao, Harvard Business School with the hum of other tourists). The digital experience
Professor (1997)
 1 | New Integrated Marketing Communications 11

F I G U R E 1.2 Some would say the Sistine Be relevant to customer needs – if a brand gives
c­ustomers useful, relevant information at just the
Chapel digital experience beats the real thing right time, it strengthens the brand relationship.
Convenience is in demand. Being creative always
helps. But being convenient and relevant is even
more important, as customers only want and listen
to whatever is relevant (or interesting). Constant
monitoring of their changing needs is critical.
Whether it is at the lowest levels of interaction, ie
product ratings, reviewing products or creating
user-generated content, engagement helps to keep
customer attention and to nurture stronger
­relationships.

SOURCE: Photo courtesy of The Sistine Chapel Digital Experience,

www.vatican.va/various/cappelle/sistina_vr/index.
html
‘Anyone who has never made a mistake has
never tried anything new.’
has beautiful choral music playing, you can do a Albert Einstein
360-degree pivot, climb the walls, explore the ­ceiling –
it is ­simply amazing.
A brand needs to be wherever its customers are
and when they have a need. Find out what they
really want and then help them. People searching
Nurture the inquisitive mind
for information about the Vatican or Rome might We asked the former President of McKinsey’s
welcome a virtual tour of where customers go Japan and highly respected author Kenichi Ohmae
(offline and online). Be creative with messages and if he could sense whether a company was going
media/channels. to be successful. Was there something he could
Find creative partnerships that take the brand’s smell or sense when he was in an organization that
message and products to its target audience in a suggested this company was going to be a winner?
completely different environment (wherever the tar- He said ‘yes’ and went on to explain that ‘if a
get market is) and just when they need help. The company is not afraid to ask questions, if everyone
Internet of Things (IoT) can bring your experience asks questions from the CEO down to the office
boy, if they ask questions like ‘Why do we do it
to far wider audiences via the appropriate IoT part-
this way?’ then this company will succeed.
ners. Be where customers go, online and offline.
Ohmae (1996)
There may be ways of reaching them through col-
laborative partnerships both offline and online. So the inquisitive mind is an essential ingredient for
future success.
This was echoed by Susan Greenfield of the
University of Oxford when speaking at the Third
Creativity will fuel growth in the future European Futurists Convention in Lucerne in 2007.
She confirmed the need for creativity and the need
‘The search for value has led companies to seek to challenge old dogma:
efficiency through: downsizing; rationalizing;
right-sizing approaches that eventually result in So creativity, this eureka connection (neuronal
a diminishing level of return. But what will fuel connection) that triggers a new insight in yourself
and others, is all about forging connections and
growth in the future? Growth will come through
so providing environments that will foster a
mastering the skills of creativity and making
challenging of dogma, of old stale connections,
creativity actionable.’ a forging of new ones that trigger even more
Professor John Kao, Harvard Business School connections that give a meaning and an insight to
both yourself and others.
Greenfield (2007)
 12 Part One | Communications Background and Theories

Love them or hate them, shopping malls Product, place and promotion
are also observatories are morphing
Location marketing identifies customers with mo-
Kenichi Ohmae spends hours visiting shopping bile phones in specific places and then offers highly
malls to observe human behaviour. People are relevant promotions. You can see how digital can
fascinating; the way they behave, move, talk, walk, morph all of the elements of the old marketing mix
shop, browse. Shopping malls can provide with a single digital offer containing, say, a price
360-degree wide screen interactive entertainment reduction (price), and/or add some additional useful
(observing customers), or to many real marketers, information about using the product (product),
malls provide real consumer behaviour insights. which makes it so easy and convenient to buy
(place) – all by sending a timely message (­promotion).

Marketing communications is part Integrate data, staff and

of customer experience communications
Inbound and outbound with online and offline
Marketing communications (marcomms) is more
communications delivers higher impact and more
than just communicating and promoting. Mar­
cost-effective ‘joined-up marketing’. Customer
comms is now impacting the customer experience
data needs to be integrated since customers are
as it adds value to the overall customer experience
touched by many contact points or ‘touchpoints’
(CX). This has not gone unnoticed by the world’s
such as social media, point of sale, ads, email, etc.
best marketers. In 2007 Unilever moved its digital
Customers need a consistent (integrated) message.
marketing out of the media mix and into the mar-
Equally, companies are collecting information
keting mix (WARC, 2007). It realized that its digital
from many different customer touchpoints (web-
budget was part of the overall marketing mix,
site registration, website body language, customer
rather than just part of its media spend (marketing
service, social media and much more). It’s a gold
communications mix).
mine if they collect and store it safely in a data
The search for added value is now relentless,
warehouse and then use it all to build better pro-
whether through new features or more likely
files of customers. Customer data needs to be inte-
through enhanced online experiences, social media
grated (this a major challenge for any organizations
sharing or simply the addition of features to a
with older legacy databases). Data usage (collec-
­product or service never dreamt possible before the
tion, storage, retrieval) and privacy statements
arrival of smart phones, apps and increasingly vir-
must adhere to the General Data Protection
tual and augmented reality experiences. For exam-
Regulation (GDPR).
ple, Gibson Guitar’s app includes a guitar tuner, a
Staff need to be integrated. As we said earlier,
metronome and a chord chart, all of which are
‘happy employees = happy customers = happy
extremely useful for any guitarist. Kraft’s iFood
shareholders’, which means that every customer-
Assistant delivers recipes and a feature that creates
facing member of staff is a brand ambassador. They
a shopping list that automatically includes the
have to feel part of it. They have to integrate with
ingredients for the chosen recipes. It even identifies
the brand values (sometimes their recruitment poli-
the locations of nearby grocery stores and which
cies use the brand values to select people with those
aisles stock the items.
values). This requires internal marketing (investing
Think of ‘4Es instead of 4Ps’ (Rothery, 2008)
in internal communications, motivation and train-
from the old marketing mix. A product is an experi-
ing). If you get this right, staff can become your
ence (including online), place becomes ‘everyplace’,
most potent communications tool. One salesperson
price becomes ‘exchange’ and promotion becomes
made his own product demonstration video show-
‘evangelism’ or advocates. Alternatively, promotion
ing him eating his dinner off the subway floor after
is just morphing with product as communications
he had cleaned it with his floor-cleaning equipment
seek to engage customers with relevant added-value
(Figure 1.3).
experiences.
 1 | New Integrated Marketing Communications 13

F I G U R E 1.3 This employee was marketers back into the boardroom, hopefully speak-
ing the language of the board. Analytics can tell us
­sufficiently motivated that he made his own sales plus cost per visitor, cost per enquiry, cost per
‘shockvertising’ video for his company order, return on investment (ROI) and a lot more.
Sentiment scores aggregate what the market is saying
about your brand and net promoter score (NPS) tells
you how likely customers are to recommend your
product/service. Boards like numbers and hence ana-
lytics have opened the door to the boardroom for
marketers.

Stop calling marketers ‘the Colouring

Department’

‘Not so long ago I was invited into a major

global bank and given the brief: “To stop the
Marketing communications have to be integrated board from referring to the marketing
for two reasons. First, unintegrated databases cause department as the colouring department.”’
many problems and complications, as there is no PR Smith
single picture of the customer and therefore cus-
tomers receive many different types of experiences
and messages from the brand. This confuses cus-
tomers and dilutes the brand’s presence in the mar-
ketplace. Second, as communications morph into
Enter the boardroom opportunity
customer experiences, all communications need to Marketers can and should demonstrate to any
be integrated to deliver a consistent experience. board of directors how marketing can create two
sources of sustainable competitive advantage by
creating two assets: brands and data. Brand appears
Death of the colouring department on the balance sheet, yet data does not. This is de-
Marketers have got to get used to analytics and be spite what The Economist proclaimed on its front
creative in new ways. A lot of ‘old’ marketing has page on 6 May 2017:
had too much emphasis on just marketing commu-
nications. This is a weakness. ‘The world’s most valuable resource is no longer
This may have led to communications strategies oil, but data.’
that shouted about product benefits. Today, market- Hence data will soon be a company’s most valuable
ing strategies ask ‘How will customers engage with resource/asset. Facebook, Amazon and the BAT
us and each other?’ This leads to the bigger ­question: Boys (Baidu, Alibaba and Tencent) would perhaps
‘What kind of customer experience are marketers agree. Yet it doesn’t appear on a balance sheet. Does
creating?’ This in turn brings marketers back to the this suggest that financial directors are not report-
quintessential marketing question: ‘How do we ing on reality (if they omit data from appearing as
help customers?’ This is, for example, the ultimate an asset on the balance sheet)?
reason why any company has a website and/or an A well-integrated website helps to grow a data-
app. In fact, this is often forgotten, but helping cus- base of customers and prospects, as well as boosting
tomers is the only reason a company exists in the a brand’s value as more and more relevant ‘services’
first place. and ‘sizzle’ are added to the customer experience.
These kinds of questions move marketers beyond Well-managed databases create a mini-monopoly of
communications, into customer experiences, c­ ustomer customers and prospects, and can be used with a
relations, new product development p ­ rocesses, ser- variety of channels to communicate intimately with
vice processes and, of course, brand evaluation, which customers (email, snail mail, messaging, telephone
affects market capitalization. This, ultimately, invites calls and personal visits).
 14 Part One | Communications Background and Theories

Although the value of a database can be quanti- ­ igger changes coming via AI, machine learning,
b
fied by estimating customer lifetime values, the auto­mation and a proliferation of technology devel-
development of clever algorithms (and other assets opments, economic (power) shifts, new social
derived from data science) and the customer data- structures. Effectively, we are seeing the start of the
base itself do not appear to be represented on too 4th Industrial Revolution. With it come some won-
many balance sheets (if any at all). derful opportunities and some dangerous risks.
Marketers missed their chance to enter the
boardroom when the internet first emerged in the
early 1990s. They also missed the social media There has never been a time of greater
opportunity. Perhaps now with the emergence of
the 4th Industrial Revolution (read on), marketers
promise or potential peril
will strike and seize the opportunity to participate
in boardroom discussions involving the future of ‘The changes are so profound that, from the
the business. perspective of human history, there has never
The opportunities presented by artificial intelli- been a time of greater promise or potential peril.
gence (AI), IoT, marketing automation, Big Data, My concern, however, is that decision-makers
virtual reality (VR) and augmented reality (AR) and are too often caught in traditional, linear (and
the threats from hyper-competition will force many non-disruptive) thinking or too absorbed by
businesses to ask how they can harness these devel- immediate concerns to think strategically about
opments to create competitive advantage. This will the forces of disruption and innovation shaping
trigger another question: ‘What business are we in?’ our future.’
Or, better still, ‘What business should we be in?’ Professor Klaus Schwab, founder and
Marketers must be comfortable with everything we Executive Chairman of the World Economic
have discussed here and finally take their place in all Forum (2017)
boardrooms.

Why marketing was kept out of the Positive or negative revolution

boardroom This revolution has the potential to be good or bad
for both economies and societies. It could improve
‘Seeing marketing as a series of distinct the quality of life across the world, raise income lev-
activities has been the reason that marketing els, and reduce illness and starvation. In fact, it
has become more marginalized over the last 15 might even help us to prepare better for natural dis-
years, because it has been positioned as asters and ‘potentially also undo some of the dam-
managing communications rather than age wrought by previous industrial revolutions’
managing the whole business orientation.’ (Marr, 2018).
On the other hand, it could create more polariza-
Jenkinson (2004)
tion between rich and poor with increased social
tensions resulting from the socio-economic changes
with polarized segments of: ‘low-skill/low-pay’ and
high-skill/high-pay’.
The 4th Industrial Marr continues:

Revolution first-adopters of technology are the ones with the

financial means to secure it, and that technology
can catapult their continued success, increasing the
This is a new beginning. I know we have said this economic gaps. Some jobs will become obsolete.
before. The internet came along in the 1990s, and Additionally, the changes might develop so swiftly,
we said this would change everything. It did. Then that even those who are ahead of the curve in
social media came along it was suggested in 2005 terms of their knowledge and preparation, might
that social media was the biggest change since the not be able to keep up with the ripple effects
Industrial Revolution. And now we have even of the changes… world governments need to
 1 | New Integrated Marketing Communications 15

plan carefully and regulate the emerging new AI extra value from data and ultimately enhance cus-
capabilities to ensure our security. tomer experiences and improve marketing efficiency
Marr (2018) (more later). Some business giants (eg GE and
Siemens) now promote themselves as ‘data firms’.
Data is the lifeblood of any business. Data can
Companies must invest in data determine the success or failure of a business. A
tech and data skills to survive lack of data can destroy a business. How long
could your business continue if all your customer
Regardless of positive or negative 4th Industrial data was hacked, infected, destroyed, stolen or
Revolution scenarios, to survive, organizations must sold? Having taken years to build a good, clean
invest in: database, it could be destroyed in seconds. It is a
●● technical infrastructure and data analysing fragile asset.
capabilities; Organizations today must start becoming data-
driven businesses. Data can inform our decisions, ie
●● staff with new data skills who embrace new
make better decisions. For example, we could split
tech and are marketing orientated;
test an email campaign version A against version B
●● leaders capable of harnessing these dramatic or use AI to sift through large amounts of data to
business trends. give us customer insights to identify hidden cus-
Organizations that are not smart and connected tomer needs so we can deliver more relevant offers
will soon fall behind a new wave of competition, that simply can’t be ignored.
known as hyper-competition, which is one of the Although databases are assets, accountants do
three unstoppable business trends. Read on. not include ‘data’ as an asset on balance sheets.
Other forms of data (eg data used to create profiles
or data that triggers an automated event) can have
even more value to a business.
Our jobs today might be dramatically
Data is now a multi billion dollar market. US
different in the not too distant future companies will spend almost $20 billion by 2018 to
acquire and process consumer data (Dance et al,
‘As professionals, we need to embrace change 2018). Data can also be used to win elections (see
and realize that what our jobs are today might ‘How Trump won’, Smith, 2017b) and even control
be dramatically different in the not too distant society (see ‘Your social credit score might change
future. Our education and training systems need your life’, Smith, 2019a).
to adapt to better prepare people for the
flexibility and critical thinking skills they will
need in the future workplace.’ Digital transformation
Marr (2018) A detailed digital transformation plan warrants its
own separate detailed plan outlining what digital
developments are emerging, who’s using them to
gain competitive advantage, setting transformation
Data-driven businesses objectives, and developing a strategy or phases to
roll out these digital changes, right down to who
will do what.
‘The world’s most valuable resource is no longer Equally, a standard annual digital marketing
oil, but data.’ plan should refer to new digital tools and tech-
The Economist (2017) niques being introduced, leveraged and integrated.
Digital transformation requires many skills (as
well as the technology). Table 1.1 shows the five
stages to becoming fully digitally transformed. The
Data is, without doubt, a source of distinctive com-
strategic choice that then emerges is whether to
petitive advantage. The better your database (if it is
build a newly structured marketing department or
clean and relevant, and adheres to the GDPR), the
employ external agencies.
bigger your advantage. Data scientists can extract
 16 Part One | Communications Background and Theories

TA B L E 1. 1 The capability maturity model helps to plan your digital transformation

3. Defined 4. Quantified
Stage → 1. Initial (Structured (Customer-
Criteria ↓ (Directionless) 2. Managed Testing) centric) 5. Optimized

A. Strategic No Strategy Prioritized Defined Whole Agile Strategic

Approach Marketing Vision & Business- Approach
Activities Strategy aligned

B. Performance No KPIs Volume- Quality-based Value-based Lifetime Value KPIs

Improvement based KPIs KPIs + Last KPIs +
Process click Weighted
Attribution AB Attribution
tests + CTAs Multivariate
Testing

C. Management Limited Verbal Sponsorship Active Integral Part of

By-In Support but & Increased Championing Strategy
Inadequate Investment & Full Development
Resourcing Investment

D. Resourcing & No specific skills Core Skills Centralized Decentralizing Balanced Blend of
Structure Centralized or Hub & & Reskilling Marketing Skills
agencies Dedicated
Resources

E. Data & Limited/No Separate Partially Integrated Flexible Approach

Infrastructure Customer Data, Tools Integrated Systems & 360 To Optimize
Database & IT Services Systems & Data Sources Resources
Data Mktg Social CRM 360 customer view
Automation
Remarketing

F. Integrated Not Integrated Core Push Integrated Integrated, Constant

Customer Activities Inbound Personalized, Optimization to
Comms Synchronized Approach Paid Owned Help Customers &
Earned Max CLV & ROI

G. Integrated Website Not Desktop & Partially Integrated Full Contextual

Customer Integrated Mobile Personalized Personalized, Personalized
Experience Support Not Experience web, email Experiences &
Personalized 90 day Social, Ads + Recommendations
planning Realtime social
programme media &
of testing Shared CX

SOURCE: Carnegie Mellon University, adapted by Dave Chaffey

NOTES: This matrix was adopted from the original Carnegie Mellon Capability Maturity model for systems (CMMI) to become the
Capability Maturity Model Integration (since adapted by Dave Chaffey of Smart Insights). This is the same Andrew Carnegie whose
business principles we mentioned at the beginning of this chapter.
 1 | New Integrated Marketing Communications 17

Martech stack 3 Real-time information: One of the benefits of

a martech stack is the ability to get real-time
XYZ + IoT, VR, AR, MA customer information and act on it. This
kind of data-driven marketing gives brands a
Marketers stack various technologies together into
competitive edge as they work to meet the
what we call a martech stack. This integrates vari-
needs of customers faster and more
ous tools to give a single 360-degree view of pros-
efficiently than others. Make sure your stack
pects and customers and in turn allows marketers
has fast processing and real-time computing
to use the tools to build customer relationships
available.
across multiple channels.
Martech stacks, once integrated can automati- 4 Data that provides attribution: To make sure
cally: you’re getting the best ROI, you need access
to data that tells you where your money is
●● collect customer data, build profiles and best spent. In other words, you need data
customer personas while integrating with that attributes your success to a specific
any existing CRM systems; marketing initiative. Make sure your stack
●● identify and nurture leads with tailored provides this kind of insight so you can
personalized communications (in real time); spend your budget wisely.
●● predict which segments to prioritize and 5 Ability to reach customers anytime,
target; anywhere: Your martech stack should
●● distribute and schedule content across include tools to help you engage customers
multiple platforms to existing customers at across multiple channels. You want to create
different stages in the buyer lifecycle; a holistic, omnichannel experience for
customers that provides the right
●● measure and report on customer feedback
information at the right time on the right
and track campaigns.
platform.

Five things every martech stack

should have Here come the bots
Martech stacks have to be tailored so that the stack Chatbots may be bodiless helpers answering ques-
is integrated. Here are Almitra Karnik’s five features tions on customer service platforms or they can be
that every stack should have (Karnik, 2018): built into human-looking robots. Do remember
that not all chatbots are equal – some hinder and
1 Integration: An efficient martech stack isn’t some help. Some chatbots will damage your busi-
a list of tools you use; it’s a series of ness, with 70 per cent of customer questions not
integrated tools that work well together. being answered (Orlowski, 2017). However, ‘good
There’s a big difference. Look for solutions chatbots’ are painstakingly built using decision
that have application programming trees to cover all options and natural language pro-
interfaces (APIs) that integrate with your cessing (NLP) to identify the customer’s real intent
core technology like your CRM, marketing behind their questions, followed by rigorous testing
automation, website optimization and and modifications. AI and bots, in particular, takes
analytics platform. patience and expertise (and lots of people, if you are
2 Single source of truth for data: Every tool developing your own AI).
comes with its own analytics, which can be a Better bots simply help customers, in a conversa-
challenge when stacking tools together. To tional way, to find answers more quickly and there-
maintain data integrity and limit confusion, fore boost conversions. If a bot makes life more
look for a single source of truth, or a convenient for a customer, then they are doing their
centralized data collection stream that offers job. Bots help customers to ‘get the job done’.
a complete customer view. Having the ability Moving from chatbots to robots, we now see Pizza
to connect multiple systems though Hut Japan with robot waiters serving happy cus-
webhooks and APIs is gold. tomers and Hilton McLean in Canada having a
 18 Part One | Communications Background and Theories

concierge bot helping guests to find local entertain- ●● Processing orders and customer service
ment, dinner and transport. issues, eg insurance companies using AI to
There are many types of bots. You can see a help process customer claims. Customers are
selection of bots including shopping bots, slack now recorded on their own smart phone,
bots, marriage bots, research bots, cooking bots, uploaded to the company and analysed by AI
Boris bots, election bots, research bots, lead genera- facial recognition to determine whether they
tion bots and sales bots in ‘Here come the clever are telling the truth.
bots – bursting with artificial intelligence?’ (Smith, ●● Identifying needs: AI can help marketers
2016), or you can see a video of Sophia, the world’s learn things even the most creative humans
first bot that became a citizen delivering her chilling can’t. By using NLP, for instance, companies
reply to a serious ethical question in ‘Here come the can determine whether a consumer is
really clever bots – where AI meets customer needs’ interested in sports cars without the person
(Smith, 2017a). Bots are developing quickly and it ever having said so (Gregg et al, 2018).
is hard to tell the difference between China’s first
●● Forecasting/predicting which segments will
fully fledged TV news presenter bot and a human
give the best results from various campaigns.
presenter (Smith, 2018).
Using AI, marketers can track and understand a
customer’s behaviour and, consequently, a cus-
AI and data analytics tomer’s needs (sometimes even before the cus-
As AI spreads into every aspect of business, it is also tomer is aware of his/her own needs). AI can then
spreading into every aspect of marketing. This in- make smart suggestions about which particular
cludes using AI to improve the CX at every stage of content, service support or type of product an in-
the customer journey: dividual actually needs during each stage of the
customer ­journey.
●● Product/service: Layers of data-driven
added-value services – eg recipes streamed on
a fridge or the Chinese robot news presenter
A word of caution regarding
who works 24/7/365 without sleep, holidays Super AI
or sick pay. We need to be cautious about Super AI and building
●● Customer service chatbots on a screen or in a Super AI that is far more intelligent than any hu-
personal assistant (like Alexa) or a beautiful, mans. It can have some great benefits, and some dire
friendly and extremely helpful ‘real’ plastic consequences. Scientists and researchers can be-
robot who answers all your questions, come so engrossed in their work that they could
remembers your name (and needs), makes unleash an uncontrollable Super AI bot that could
helpful suggestions and more – 24/7/365. But, endanger the human species. Governments, regula-
remember, ‘not all chatbots are equal’ – some tors, professional bodies and marketers need to be
help and others hinder the brand. aware of this as we delve into AI and Super AI.
●● Promotions/comms: AI helps create headlines
for ads, emails and can even create total AI + UC
pieces of content delivered via rule-based Not only must we be aware of AI issues like bias
marketing automation to help, say, lead being excluded and ethics being included in the
generation, as well as personalization of, say, ­development of any AI, we must also be aware of
hundreds of thousands of tailored videos with consequences or, more specifically, of unintended
individualized and personalized messages. consequences (UC). For example, if a CEO of a
●● Place/distribution: Companies like Amazon major corporation asks its Super AI board bot to
use AI in their world-class warehousing, ‘eradicate world hunger’ this would be highly irre-
logistics and distribution, from robots to sponsible, as perhaps the most cost effective option
drones to self-driving vans. Alibaba now that the bot generates is to eradicate the human spe-
have a fresh food chain that delivers fresh cies (and thus eradicates world hunger) and decides
food orders not just the same day, but the to do so as quickly as possible in order to be as
same hour (ie within 30 minutes)! cost-effective as possible.
 1 | New Integrated Marketing Communications 19

‘Your animal life is over. Machine life has 2. Customer experience and
begun.’ company mission
The CX is the result of the customer journey and is
This shocking article by Mark O’Connell in the
inextricably linked to the company mission. The
Guardian in 2017 was shared over 32,000 times. He
mission is your organization’s raison d’être. The
believes that we are close to inventing a machine
reason it exists is to help customers in a particular
that replicates the human brain and keeps a way. To improve the CX, start with your mission
version of us alive forever. Transhumanists aim to statement. Soccer.com’s mission statement is to ‘in-
improve our bodies and minds to the point where form, inspire and innovate’. Their ecommerce direc-
we become something other and better than the tor says ‘It’s not enough for us to sell products.
animals we are. Ray Kurzweil, for one, is a Selling products is the basics of what we do. But it’s
prominent advocate of ‘mind uploading’. not the core of what we do. We want to be there for
Meanwhile, O’Connell highlights a joint venture our customers. We want to be there with a full ex-
company called OS that is investing in perience for our customers and establish an author-
‘entrepreneurs working towards quantum leap ity in the space of soccer’ (Nicastro, 2018). So all
discoveries that promise to rewrite the operating CX (both online and offline) should support the
systems of life’ (O’Connell, 2017).1 organization’s mission.

‘To improve customer experience, start with

We have to pay attention, develop an interest, and
morale, not technology.’
influence the development of AI and, in particular,
Shoop (2018)
Super AI.

3. Content marketing
10 hot marketing topics
Most organizations already have a lot of marketing
content (market research, white papers, presenta-
1. The customer lifetime journey tions, speeches, articles, videos, photos, graphics, as
Repeat business is where the real money is. well as social media content). Some potential con-
Estimates suggest that selling to an existing cus- tent is less obvious but nevertheless easy, such as
tomer is at least six times more profitable than sell- book reviews (if written by the CEO). Frequently
ing to a new customer. Hence, we are interested in asked questions (FAQs) collected by customer ser-
the customer’s lifetime journey. Some marketers vice teams can be a rich source of content recreated
refer to the ‘customer journey’. We believe this jour- into ‘10 most popular questions’, ‘10 questions
ney is more than a one-off journey where a cus- you’ve got to answer’, ‘10 reasons why’ or ‘10
tomer sees some social media or an ad, becomes things you’ve got to know’. These can be converted
aware of a brand, learns more about it via search- into quizzes with multiple answers, or ­self-assessment
ing online, visits a website, downloads an app or widgets. Speeches – record them and then edit them
perhaps visits a location; the marketer’s job is to into shorter clips. Slide shows – share them on
ensure the right communications are offered at the SlideShare. Re-use the graphics. The key is to work
right touchpoints. This work continues after the out what customers need first (avoid content shock;
initial sale – in fact a welcome strategy thanks the see p 453), then create a content plan and calendar
customer for their initial purchase, helps the cus- and deliver it. Being creative is great but it has to be
tomer with tips and ideas to ensure maximum sat- relevant/interesting to the customer. One problem
isfaction, and keeps in touch with relevant remains. Most customers do not fully know what
communications (and offers) throughout the life of they want or what they might like in the future (as
the customer. they cannot imagine it).
 20 Part One | Communications Background and Theories

4. Personalization Customers fear that the data they give to compa-

nies will be misused by someone. But if benefits
Different clusters of customers (segments) have look favourable (purchase confirmation, new spe-
slightly different needs. Even the same customer has cial offers, discounts, countdown offers, nudges,
different requirements as he/she moves through the more convenient airport check-in, loyalty points,
customer lifetime journey. Basic personalization en- live chats, etc) and a level of trust is established,
sures all comms are personalized and more ad- then many are happy to share their data.
vanced personalization ensures exactly the right
tailored message is delivered to the right customer
and the right time via the right channel. Even videos 5. Omnichannel marketing
can, today, be personalized on a large scale (more of
‘All-in-one technology’ solutions essentially manage
this later). Tools like Adobe Target and Optimizely
marketing communications across multiple chan-
collect and analyze data from social media listen-
nels throughout the entire lifetime customer jour-
ing, consumer behaviour and previous purchases to
ney, eg by integrating and automating email, social
generate profiles and eventually personalized
media, content marketing and mobile marketing
­content.
solutions. So omnichannel marketing ensures cus-
tomers get content they actually want exactly when
You’re in the market for a new car they need it via their preferred channel. The mar-
comms becomes a seamless, consistent helpful con-
tact. Note that this is all about helping customers
You visit a manufacturer’s website. You can’t
throughout the customer lifetime journey, which is
complete your research just then because you have
another underlying theme in this book.
to attend a meeting, so you leave your email
address requesting more info. When you get home
and are browsing on your tablet, you receive an 6. Influencer marketing
email about the vehicle you’re interested in. You like
what you see and make an in-person appointment Influencers continually influence your market. A
to test drive the vehicle. You then get a text comment, like or share can win attention, enquiries
message confirming your appointment (Hall, 2019).
and even sales. Influencers can have a much bigger
impact than any of your other marketing efforts.
Identify and connect with influencers in your indus-
try. You may not be able to afford to pay (money,
Remember not to be too greedy (asking for too free products, place ads on influencers blog) or even
much information). Sign-ups increase if you only collaborate with all the influencers. Sometimes you
ask for an email address. After that, you can take can just focus on a small number of ‘nano influenc-
customers on a data collection journey: offering ers’ (with, say, 5,000 followers). A hundred nano
tips, advice, coupons, points or experiences in ex- influencers with a combined audience of over 1 mil-
change for personal data each time you give the lion could be very effective and cheaper than work-
prospect something in return. ing with one influencer with 1 million followers.

TA B L E 1.2 Personalization
You get (ie you ask for) You give (a personalized response)
DOB Offer a birthday treat
Gender Customized homepage with relevant offers
Waist size Aaargh, too creepy! Forget it
 1 | New Integrated Marketing Communications 21

Either way, you have to ensure the influencers un- give some advice, the chef meets customers, the
derstand your brand, your values and your messag- salesperson gives the customer a personal call – the
ing and then continually monitor their performance. human touch is still very much appreciated.

7. Agile marketing (agile and 10. Accelerated change

optimized) Consider accelerated brand creation. Once upon a
time it took two generations to build a major brand;
After the marcomms omnichannel contact (message
now it takes just a year or two if you get it right.
or content) has been delivered, hopefully, customers
Look at Amazon, Uber and Twitter. Once upon a
and prospect customers engage with the messages,
time it took several generations to acquire 50 mil-
which then triggers the analytics to automatically
lion users. Facebook did it in less than one (in fact
tell the marketers what’s working and what’s not so
Facebook acquired 100 million in one year). This
they can do more of what works and do less of
simply could never have happened 10 years ago.
what doesn’t work so well. Marketers today oper-
Radio took almost 40 years to reach 50 million
ate as agile marketers, constantly testing and there-
users, while TV took 13 years, the internet four
fore optimizing. One note of caution: analytics
years, the iPod three years, Facebook one year and
reveal reach and engagement levels but do not re-
the iPhone less than a year to get 100 million users.
veal other criteria such as brand building or, say,
awareness building. Proper market surveys (online
or offline) are required to do this. Shorter brand lives
Meanwhile, the average lifespan of companies and
their brands is also shrinking from 67 years in the
8. Marketing automation 1920s to just 15 years (by 2012) as per the S&P
Marketing automation uses click behaviour (or digi- 500 index of leading US companies and according
tal body language) to trigger an automatic email, or to Professor Richard Foster from Yale University.
an automatic dynamic page swap (varying the con- Back in 2012, Professor Foster estimated that, by
tent that is served on the next page), or an automatic 2020, more than three-quarters of the S&P 500
alert sent to a salesperson if the clicks suggest a hot would be companies that we had not yet heard of
prospect. Click behaviour includes monitoring (Gittleson, 2012).
whether an email is opened or a video is fully watched
and determining what the next contact will be. It is all Accelerated returns (AI & Super AI)
rule-based (if they click this they then see that). Even
The 21st century will achieve 20,000 times the pro-
writing a comment on a social media platform can
gress of the 20th century according to the American
trigger a personalized video (containing the words
Futurist Ray Kurzweil, who suggests that the pro-
they wrote). See personalized videos (p 167). We also
gress of the entire 20th century would have been
explore the martech stack to identify different types
achieved in only 20 years at the rate of advance-
of technology can help boost marketing performance.
ment in the year 2000. In other words, by 2000, the
rate of progress was five times faster than the aver-
age rate of progress during the 20th century.
9. The human touch Kurzweil believes that another 20th century’s
The human touch, now more than ever before, worth of progress happened between 2000 and
works some marketing magic. Despite tightly tar- 2014 and that another 20th century’s worth of pro-
geted relevant and personalized automated content gress will happen by 2021, in only seven years. A
and extremely clever bots doing great jobs, the couple of decades later, he believes a 20th century’s
human touch delivers something extra special. Some worth of progress will happen multiple times in the
kind of quaint emotional connection. So, whenever same year, and even later, in less than one month.
possible, get out there and meet customers, ask them This is the Law of Accelerating Returns. Kurzweil
questions, listen to them, converse with them, re- believes that the 21st century will achieve 20,000
ward them, thank them. The owner of the business times the progress of the 20th century! So embrace
says hello to customers, the mechanic takes time to technology developments (Smith, 2019b).
 22 Part One | Communications Background and Theories

Hyper competition whenever they want. And, all the time, category-less
competitors quietly step across old borders.
Competition can come from your own country or
Once upon a time, supermarkets sold groceries
overseas, as all markets are global markets today.
and petrol stations sold petrol. Now petrol stations
Competition can also come from outside your cat­
sell DVDs, fresh coffee, groceries, gambling and a
egory of business (eg Google Wallet and Apple Pay
lot more, while grocery stores sell petrol, garden
compete with bank services). Disruptive start-ups
furniture, car insurance and soon legal advice
(like Uber and Airbnb) can come out of anywhere at
(including DIY divorce kits), as well as groceries.
any time once they see an opportunity to use data
Clear-cut business categories are evaporating.
more cleverly (this will perhaps occur increasingly fre-
Powerful category-less brands take more ‘share of
quently with AI). You must improve or get left behind.
wallet’. Customers trust some brands sufficiently to try
Platform companies are investing in Big Data,
other products from the same brand name. This is
AI, IoT and other tools to improve operations,
‘share of wallet’. Growth for most US companies was
assets, customer experiences and competitive posi-
forecast to come from share of wallet rather than
tions. It’s happening. Look around you. Amazon is
growth from finding new customers. Enlightened
now (January 2019) the largest private company
boardrooms understand the power of the brand, its
in the world and is busily wiping out the tradi-
access to share of wallet and its impact on the balance
tional high street. Then we have the BAT platform
sheet. Combine category-less, fast-moving competitors
companies: Baidu, Alibaba (who own AliPay with
with borderless markets and you get h
­ yper-competition.
its 500 million customers) and Tencent (who own
No market or business can ignore it.
WeChat with its 1 billion customers). These
SuperApps help you to buy, pay, use, consume just
about everything in China. Is there a sector that Competitors can target your
Amazon, Apple, Google or BAT could not enter? visitors, your fans, your employees
You have simply got to keep improving as existing
Both Facebook and LinkedIn enable competitors to
and new competitors will be continually ­improving.
target their ads by age, interests, location or com-
pany. They can target their ads at your employees
(LinkedIn), your fans (Facebook) and even your
30 minute delivery for online shoppers website visitors may soon become accessible.
The need to wholeheartedly adapt to and
‘Alibaba’s Hema is a supermarket chain that embrace change is akin to the need for frogs to stay
promises fresh produce delivered to online out of the kitchen. If you take a frog and put it into
shoppers within 30 minutes. Tencent is trying to a boiling pot of water, it will jump out somewhat
empower companies that compete with Alibaba blistered, but it will survive. If, on the other hand,
including Carrefour, the French retailer, but it you put a frog in a cold pan of water and slowly
cannot supply the level of Big Data support that raise the temperature it will boil to death. Business
its competitors can.’ is similar. No one will change your environment so
rapidly that you have to change your behaviour
Li Guoferi, Chinese tech commentator with a wide
immediately. It just changes continually.
following on WeChat, referred to by Kynge (2018)

Competition in your pocket

Hyper-competition is borderless
‘Amazon and eBay mobile apps invite
and category-less customers, while in another store, to scan in a
Global boundaries are falling; the Iron Curtain has product to see how much cheaper they can get
been swept aside, the Berlin Wall torn down and the it via the app (plus they deliver it to your door).
Chinese gates flung open partly by political m
­ ovement, So retailers have to have even better apps to
partly by aggressive businesses seeking growth compete inside your hypercompetitive pocket.
overseas and partly by the internet giving instant
­ Meanwhile Amazon can target ads at customers
global access driven by customers who want to buy within a radius of one mile of a competing store.’
products and services from anywhere in the world Smith (2014a)
 1 | New Integrated Marketing Communications 23

Amidst this hyper-competition some CEOs wake up However, many companies damage these two
in the middle of the night in a cold sweat worried critical assets. Sloppy customer service and negative
about their value chain and wondering who is unpick- CRM destroy brands (see Chapters 2, 3 and 20 for
ing the lock on it. Teams of analysts and MBAs from more on this.) Despite the importance of CRM, many
Boston to Beijing analyse industry after industry, sec- companies are still sitting on a customer service time
tor by sector, to find businesses with a weak link in bomb. And it’s ticking. Those who ignore it will be
their value chain that would benefit from a third- left behind, in the same way that those who ignore
party supplier fulfilling a piece of the chain. Most the golden opportunity presented by social media
CEOs know some parts of their value chain, whether will also be left behind. Those who embrace it, seize
production, logistics or after-sales, are more profitable the opportunity, develop rigorous processes around
than other parts. When they get an offer to replace the the new technologies and continually strive to find
weakest link with a higher-quality link (or service) at and satisfy customer needs will survive and thrive.
lower cost and seamlessly linked by web technology,
many CEOs find this a very attractive proposition.
Who are the survivors?
‘It is not the strongest of the species that
‘We have only two sources of competitive survives, nor the most intelligent that survives. It
advantage: the ability to learn more about our is the one that is the most adaptable to change.’
customers faster than the competition, and the Charles Darwin
ability to turn that learning into action faster
than the competition.’
Jack Welch, former CEO, GE
Creative destruction
Sony’s famous president and co-founder, the late
Akio Morito, once said: ‘My job is to make our
As the company moves from a value chain to a
products obsolete before competition does.’ These
seamlessly connected value network, CEOs are
sentiments were recently echoed by an interesting
forced to consider the most basic of questions:
American author, Brian Solis, who said that ‘resilient
‘What business are we in?’ This can only be an-
companies intentionally break their business models
swered by asking another very basic question: ‘What
in anticipation of what customers want and need.
do customers want now and in the future and what
For example, the “sharing economy” – companies
is our sustainable competitive advantage (SCA)?’
like Uber, Airbnb, TaskRabbit and other services
that allow people to rent or share their cars, homes
or skills’ (Solis, 2015). These resilient companies
30,000 illegal competitors recognize evolving consumer values and aspirations.
‘Some competition is legal and some not so
legal and vast! The Premier League is targeting Anyone with vision and empathy can
30,000 illegal, competing, streaming sites. This
upend entire industries
can require a lot of resources.’
iSport Connect (2012)
‘Anyone today has the power to disrupt entire
industries with a single, smart idea. Most
companies are built to keep things from going
When we ask CEOs what is their SCA, we usually get wrong, not to try to break things apart. Creative
answers that include patents, product differentiation, disruption becomes a business strategy to
cost efficiencies, superior service, stronger brand and either invest in or acquire the very things you
sometimes distribution channels. Most of these can feared, rather than simply protecting what it is
be, and are being, attacked. Two major sources of you have. Companies identify and develop
SCA, if managed carefully, are the brand and cus-
products, processes and philosophies that allow
tomer relationships – inseparable, you may say.
 24 Part One | Communications Background and Theories

There is no doubt that the world of marketing is in

them to flourish at first but later cause
its most interesting and exciting period – if you
stagnation… paralyzed by their success.’ have an open mind. Change must not be feared, but
Solis (2015) rather embraced, while remembering basic princi-
‘What brought us success in the past will ples like customer orientation, lifetime journeys,
unlikely be enough to bring us success in the etc. Figure 1.4 is an interesting vision by American
future.’ digital columnist and CEO of Wordstream and
HBR (2017) Mobile Monkey, Larry Kim, of what marketing
skills will be required from m­ arketers.

F I G U R E 1. 4 The many faces of a unicorn marketer

SOURCE: Illustrated by Larry Kim, https://mobilemonkey.com

 1 | New Integrated Marketing Communications 25

One thing that will remain constant is the structure ●● Strategy (how do we get there?).
of the perfect plan, whether it is a business plan, a ●● Tactics (the details of strategy, eg the
marketing plan, a digital marketing plan, a project marketing mix and communications mix).
plan, a campaign plan or even your own personal
●● Action (execution – checklists, guidelines,
plan. SOSTAC® planning framework works every
processes including internal marketing).
time, all the time, both now and in the future. So let
us explore SOSTAC®. ●● Control (are we getting there? – metrics and
measurement – daily, monthly).
●● + 3Ms – the key resources: men and women
® (human resources), money (budgets) and
The perfect plan: SOSTAC minutes (timescales).
planning framework The old marketing mix (McCarthy, 1960) com-
prises product, price, place, promotion (4Ps) and
There are many approaches to writing marketing the ‘service mix’ comprises people, processes and
plans, some far more complicated than others. physical evidence (bringing it up to 7Ps). However,
The SOSTAC® approach (see http://prsmith.org/ digital blurs the lines and morphs the mix (eg so-
SOSTAC/) simplifies marketing plans and was cial media is part of the product experience, pro-
voted in the top three marketing models in the motional reach, physical evidence and place/
Chartered Institute of Marketing’s centenary poll. distribution) – see the next section. Meanwhile
We will explore it in detail elsewhere. Table 1.3 shows the communications mix – the 10
tactical communications tools, both offline and the
●● Situation analysis (where are we now?).
online equivalent.
●● Objectives (where do we want to be?).

TA B L E 1.3 The communications mix: 10 tactical tools, offline and online

Advertising Interactive ads, pay per click keyword, display ads, remarketing/
retargeting

Public relations Online editorial, newsletters, ezines, discussion groups, viral

marketing

Sponsorship Sponsoring online events/sites service

Sales force/agents/telemarketing Virtual sales staff, affiliate marketing, web rings, links/chat

Exhibitions, events and conferences Virtual exhibitions, virtual events, webinars

Direct mail Opt-in email and eNewsletter

Retail store or office HQ Website (SEO and markeing automation opportunity)

Word of mouth Social media platforms, review platform (eg reevoo.com), forums

Sales promotion Content marketing, incentives, rewards, online loyalty schemes,

competitions

Merchandising and packaging e-tailing, QR codes, augmented reality, virtual reality (real
packaging can be displayed online)
 26 Part One | Communications Background and Theories

Top 10 tips for world-class marketing communications

1 Develop credibility before raising visibility. 6 Reward customers who are socially positive
2 Continually ask ‘Does my website/platform help with your brand.
visitors (better than the competition)?’ 7 Build a culture that worships customer
3 Continually ask ‘What am I doing to bring knowledge.
visitors back?’ 8 Build a constant beta culture (constant
4 Stop thinking about campaigns and think about optimization, analysis and ROI analysis where
customer lifecycle and continued engagement. possible).
5 Develop a process of listening and responding to 9 Ask great questions.
customers. 10 Embrace change and be creative – plus invest
in internal marketing.

Key points from Chapter 1

●● Is this business going places? ●● This is the beginning of a new era in marketing
●● What’s your process of listening and responding amidst hyper-competition.
to your customers? ●● There is an opportunity for marketers to take a
●● Why do you have a website? seat on the board and drive a marketing culture.
●● Do people ask good questions?
●● Do they embrace change?

Endnotes
1 Extracts from ‘Your animal life is over. Machine prominent advocate of the idea of mind-uploading.
life has begun. The road to immortality’ (Mark […] Bryan Johnson, who had sold his automated
O’Connell, Guardian, 25 March 2017): ‘At some payment company to PayPal a couple of years
point, you become aware that you are no longer back for $800m and who now controlled a
present in your body. You observe – with sadness, venture capital concern called the OS Fund, which,
or horror, or detached curiosity – the diminishing I learned from its website, “invests in
spasms of that body on the operating table, the entrepreneurs working towards quantum leap
last useless convulsions of a discontinued meat. discoveries that promise to rewrite the operating
The animal life is over now. The machine life has systems of life”. […]That scan then becomes a
begun. This, more or less, is the scenario outlined blueprint for the reconstruction of the subject
by Hans Moravec, a professor of cognitive brain’s neural networks, which is then converted
robotics at Carnegie Mellon, in his 1988 book into a computational model. […] “You can be
Mind Children: The future of robot and human anything you like,” as an article about uploading
intelligence. […] It’s a belief shared by many in Extropymagazine put it in the mid-90s. “You
transhumanists, a movement whose aim is to can be big or small; you can be lighter than air
improve our bodies and minds to the point where and fly; you can teleport and walk through walls.
we become something other and better than the You can be a lion or an antelope, a frog or a fly, a
animals we are. Ray Kurzweil, for one, is a tree, a pool, the coat of paint on a ceiling”.’
 1 | New Integrated Marketing Communications 27

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CIPR 70 Margaret Street
4th Floor London W1W 8SS
85 Tottenham Court Road Tel: +44 (0)20 7291 7730
London W1T 4TQ www.ipm.org.uk
Tel: +44 (0)20 7631 6900
www.cipr.co.uk
 30 Part One | Communications Background and Theories

International Organization for Standardization Public Relations Consultants Association

(ISO) 82 Great Suffolk Street
Chemin de Blandonnet 8 London SE1 0BE
CP 401 Tel: +44 (0)20 7233 6026
1214 Vernier, Geneva www.prca.org.uk
Switzerland
Tel: +41 22 749 01 11
www.iso.org

Marketing Society
8 Waldegrave Road
Teddington
Middlesex TW11 8GT
Tel: +44 (0)20 8973 1350
www.marketingsociety.com
 31

02
Branding
LEARNING OBJECTIVES
By the end of this chapter you will be able to:
●● appreciate the importance of branding and why it is a strategic issue;
●● list the stages in building a brand process;

●● avoid the classical branding mistakes;

●● understand why brands need to be maintained.

Introduction to branding 32 Brand maintenance 55

What is a brand? 32 Brand expansion/strategy 59
The power of branding 32
Customers benefit from brands 32
Brand summary and the challenges
Business advantages from branding 33 ahead 61
Business disadvantages of weak brands 40 The rise of the anti-brand 61
Brand self-destruction 40 Own brands 62
Social media 62
Brand components 41 The experience divide and leveraging
What exactly is a brand? 41 advocacy 62
A brand’s rational and emotional appeals 44 Short-term sales vs long-term brand
The emotional connection 44 building 62
Branding and a sense of purpose 44 Brands – the bridge between marketing, finance
The brand components 45 and the boardroom 63
Marketers and the language of finance 63
Branding is simple but not easy 47
Conclusion 64
The branding process 47
Research 48 Key points from Chapter 2 72
The brief 51
Concept generation and development 52 References and further reading 72
Roll-out/delivery 54
 32 Part One | Communications Background and Theories

Introduction to branding The power of branding

How do brands become so powerful that they con-
What is a brand? trol economies, determine corporate takeovers, or
make customers pay almost 1,000 per cent price
A brand is an intangible, legally protectable, valu- premiums (Coca-Cola vs Asda cola)? How do
able asset. It is how a company or product is per- brands become the most valuable asset in a com-
ceived by customers (or the target audience). It is pany, determining the whole financial value of a
the image, associations and inherent value cus- company and driving corporate takeovers? How do
tomers put on your product and services. Brands brands create sustainable competitive advantage?
include intangible attributes and values. For a What makes people all around the world hand over
brand to be successful, its components have to be their hard-earned cash for the same brand whether
coherent, appropriate and appealing to consum- in Taiwan or Tokyo, Kashmir or Carlisle? Today,
ers. A brand is a promise to the customer. A brand the power of branding is such that brands defend
also embraces vision, values and personality (see organizations from competitors, nurture customer
‘Brand components’ later in this chapter). A brand relationships, and boost sales, profits and balance
is far more than just a logo or a name (this is just sheet assets.
brand identity). It is the complete customer ex­
perience; the integrated sum of all the marketing
mix and the communications mix from products Customers benefit from brands
to customer service, from packaging to advertis-
ing, from rumour to discussion. The last two com- So we know how brands help businesses, but how
ponents are less controllable, from a brand do they help customers? What do they do for cus-
management perspective, but they can neverthe- tomers? Brands save customers time, reduce their
less be influenced, as good brand management perceived risk and fulfil their aspirations. Now con-
participates wholeheartedly in social media too. sider each benefit.
So a brand is everything a customer (or stake-
holder) sees, feels and experiences about a prod- Brands save customers time
uct or service (or organization). A brand is the Brands help customers’ busy lives by saving them
‘magical’ difference between many competing time, helping them to find goods and services more
products and services. quickly. Imagine trying to buy books or DVDs on
the internet if you couldn’t remember the name of
Amazon or CD WOW. Or it could be beans in the
supermarket or mortgages on the high street.
Unilever’s chairman, Niall FitzGerald, calls a brand
A (favourable) consensus of subjectivity ‘a storehouse of trust which matters more and
more as choices multiply’ and we face what David
Ogilvy once called ‘the misery of choice’. People
‘Because brand reputations exist only in the
want to simplify their lives and simplify their
minds of their observers – and all observers are
decision-­making.
different… the strongest brands are those that
enjoy what’s been called “a (favourable)
consensus of subjectivity”. And that’s when Brands reduce perceived risk
their brand managers, in the widest sense of A strong brand is an implicit guarantee or promise
that phrase, should be most warmly of consistent quality, image and style. A brand is
congratulated. They didn’t build those brands built on trust. Customers trust the promise made in
themselves; but they fed such enticing titbits to the advertisement and on the pack. Customers form
their audience that their audience gratefully did relationships with brands. Brands, in turn, provide a
the rest.’ reassuring sense of order. Brands provide a safe and
Millward Brown Optimor (2010) trusted option. Would you buy from someone you
didn’t know? Customers would prefer to reduce the
 2 | Branding 33

amount of time and energy involved in decision- carefully? The truth is that many do not (see ‘Customer
making. That’s one of the reasons why brand exten- service time bomb’ in Chapter 1). However, consider
sions are valuable. The brand is an implicit guarantee these individual benefits of nurturing strong brands.
or promise. Customers trust the promise made in the
advertisement and on the pack. Brands create sustainable
competitive advantage
Brands satisfy aspirations
Brands will be, for many organizations, the critical
Brands give status and recognition. Brands reflect success factor in the hyper-competitive 21st-century
aspirations, images and associations that are care- marketplace. Strong brands create sustainable com-
fully gleaned from in-depth customer motivation petitive advantage. For the first time in the history of
research. This is compounded by our search for business, the most powerful barriers to competition
identity and beliefs. ‘In an irreligious world, brands are no longer controlled by companies but by cus-
provide us with beliefs’, says Wally Olins of Wolff tomers. The old barriers are falling. Factories and
Olins. Some brands unconsciously create a sense of even access to finance are not as powerful barriers as
belonging from their cultish quality. In a way, buy- those erected inside customers’ minds. Only a few
ing and consuming brands actually defines who we chosen winners are allowed inside. These are the
are. Brands signal our affiliations. ‘You are what successful brands with which customers have rela-
you shop.’ Brands reflect aspirations and act as a tionships. Successful brands build differentiators.
badge of self-image or desired self-image. The CEO of one of the world’s greatest brands,
Coca-Cola, reputedly once said: ‘They can take every-
thing we have, our machinery, our plants, our distribu-
Do brands fill the vacuum left by the tion – as long as they don’t take our brand – and we
decline of organized religion? will be able to rebuild our organization in six months.’
For many years now more people in Britain have
trusted top brands than trust the church. In fact
‘In the developed world, they [brands] are seen
Heinz and Nescafé were trusted more than the
by some to have expanded into the vacuum left
church, the police and Members of Parliament
by the decline of organized religion.’
(Croft, 1998, in Reynolds et al, 2004). How come
Economist (2001)
British people give their credit card details over the
internet to an unknown, invisible American on the
other side of the Atlantic? How come Americans
pour down their throats water from an unknown
Consider the magic marketing formula: identify source in France? Brand trust in Amazon and Evian
needs; reflect them; deliver/satisfy them. Remember, is strong. However, more recently, brands have been
brands need to continually do this. Think about losing some of their trust ratings. The Reputation
what needs Coca-Cola advertising reflects. It re- Institute’s RepTrak report suggests that brands are
flects people’s own aspirations, so that when they facing their biggest trust crisis since the global reces-
buy a can or a case of Coca-Cola they actually buy sion hit in 2008 (Stewart, 2018).
a slice of their own aspirations (plus a product
whose promise of refreshing cola is consistently de-
livered anywhere in the world). Brands control people and brands
control economies
Business advantages
‘What gives brands their power to influence – if
from branding not quite control – people’s purchasing
Brands create sustainable competitive advantage decisions and thus their power to influence – if
from hyper-competition, boost relationships, boost not quite control – modern economies?’
sales, boost profits and boost balance sheets. Why Fletcher (2010)
would any managers not nurture their brand very
 34 Part One | Communications Background and Theories

Brands differentiate a company’s products or ser- and providing a reassuring sense of order in an in-
vices and help them to stand out from a crowd. creasingly destabilized and chaotic world. Brands
Brands are often the primary source of competitive inspire loyalty, trust and continuity. Brands are built
advantage and a company’s most valuable strategic upon a platform of reliable quality. As in any rela-
asset. All markets tend towards commodities (as tionship, a brand’s promise must never be broken.
patents run out and the competition catch up and Brands are even used to pigeonhole people: ‘He
copy others). Brands protect and defend a business drives a Porsche and drinks Pimm’s.’ A person’s
from competition, as they differentiate the product entire life can be effectively categorized by his or
by adding perceived value. This creates barriers to her use of brands. Some brands are even definitive,
entry for potential new competitors that are con- eg ‘He is the Rolls-Royce of hosts.’
stantly tempted to enter the new borderless and
category-less market space.
‘Coca-Cola sells more because our love of a
Chinese president visits a brand before particular brand is as important as our love of a
flavour.’
visiting the president
Ronay (2004)

‘When visiting the United States, President Hu

Jintao of China chose Microsoft’s Bill Gates as
his first visit, followed the next day by a visit to
President Bush. The International Herald
Brands boost sales
Tribune headline read “Chinese president’s Brands help customers by making their purchasing
itinerary for US visit: Gates first, Bush later”.’ process easier. Brands are easier to recognize and to
Yeong and Yu (2006) associate with quality; it is easier to understand their
benefits, and they are less risky than unknown com-
This was a seminal moment in the history of brands. modities. Brands encourage repeat purchases and
brand relationships, which in turn boost sales. Strong
brands are easily recognizable and build single-minded
awareness, ensuring they have a greater chance of
Some years ago it was suggested that two-thirds of being included in the customer’s ‘considered set’ of
the stock market capitalization of US companies was possible purchases or, better still, ‘preferred purchases’.
attributable to intellectual assets (brands, patents Brands inspire loyalty, trust and most importantly
and know-how). That’s a massive $4.5 trillion. One- continuity, providing a reassuring sense of order in an
third of global wealth is accounted for by brands increasingly chaotic, insecure and fast-changing world.
(Clifton, 2004). It is probably a lot more today. Established brands also provide a platform from
which to launch other products under the same brand
Brands boost relationships names, thereby increasing share of wallet.

Brands create (mostly unconscious) relationships

between the user and the brand. Brands add a subtle Brands boost profits
meaning to the act of consumption. We allow these Brands, rightly or wrongly, can command premium
brands into our homes and offices and into our lives prices, which results in increased profits, which con-
because they generally mean something to us all. sequently allows more money to be spent on better
They represent something. At the heart of any suc- (relevant and tested) communications with clearer
cessful brand proposition there is a human dimen- messages – which continually strengthens the brand.
sion. That’s why brands have personality, values and For example, in the same store, Coca-Cola charges
associations. Brands used to be just a seal of quality. a price premium of almost 1,000 per cent for its
Today brands have emotional connections that dif- 1.75 litre bottle priced at £1.85 (compared to Asda’s
ferentiate them. Brands provide reassurance to cus- 2 litre bottle at £0.15). Incidentally, Coca-Cola
tomers and differentiation from competitors. Brands knows the long-term power of its brand and invests
save customers time by being easily recognizable in it accordingly (eg it invested $65 million in 12
 2 | Branding 35

years’ Olympic sponsorship until 2012). Profits are There is no doubt that brands can add value to the
also boosted by repeat purchase customers, who balance sheet, grow the value of the business (mar-
generate on average five times more profits than ket capitalization) and therefore boost the sale price
sales to new customers. In online sales, this figure of a business. They also, as mentioned, save custom-
rises to 10 times more profitability (Eltvedt and ers time, satisfy their aspirations and reduce per-
Flores, 2005). Strong brands also boost margins, as ceived risk.
they increase bargaining power within the trade.

Brands boost balance sheets You have the factory and staff;
As well as affecting politics and economics, brands I’ll have the brand
affect company valuations. Brands can indicate fu-
ture profit trends and assist decisions and investor ‘If we split the business tomorrow, you kept all
relations. Today, brands are recognized as assets, the factories and staff and I kept the brand
and more companies are putting brand values on to name, within two years I would be a
their balance sheets. Figure 2.1 shows a list of brand multimillionaire and you would be bankrupt.’
values taken from the Millward Brown BrandZ sur- CEO, Quaker Foods
vey (2018). The 2010 survey revealed the world’s
first $100 billion brand – Google. Now there are
four brands worth over $200 billion: Google, Apple,
Amazon and Microsoft.
At the time of writing, there were 14 Chinese
So brands are assets that need to appear on the bal-
brands in the world’s top 100 list. The best known in
ance sheet. But like any other asset, brands can de-
the West is probably Baidu, the Chinese search engine
preciate if they are not managed (or maintained)
(at number 41). But don’t forget about Alibaba,
carefully, keeping them fresh and aligned to market
whom we mentioned in Chapter 1. Although most
changes, patterns and trends.
westerners haven’t heard of them, they had, at the
UEFA is an example of a very high-profile brand
time, the biggest IPO (initial public offering to sell
that refreshes itself every three years. Some of the
their shares) at a value of $160 billion.
updating is so subtle that the average customer
New accounting rules worldwide require compa-
would not notice it. The detailed case study on
nies to value their intangible assets – such as brands –
pp 65–72 includes ‘before and after’ visuals, follow-
on their balance sheets when they are acquired (IAS
ing a redesign in 2018 (Figure 2.13).
38). When these assets are judged to have an indefinite
life, which is often the case with a brand, they will be
subject to annual review for impairment. This means Branding is not just for the big boys
that the difference between the price paid and the cur- Even small businesses must be clear about their pas-
rent value will be calculated. Any resulting write- sion for their business. Why they enjoy their work.
downs can often have major implications, as seen in Why they are stimulated and invigorated by the
2002 when AOL Time Warner (as it was then known) challenges it presents. This passion and excitement
had to write off $54 billion for the value lost when must be captured and clarified and articulated so
AOL acquired Time Warner at the end of the dotcom that the brand reflects this passion.
boom way back in 2000. As the Huffington Post’s David Brown says:
Purpose will guide your small business, but it’s
passion that propels you forward. What excites
‘Financial analysts are already using next-gen you about your purpose? What do you love about
social analytics to predict future brand it? I believe you have to know the answer to have
performance. Credit Suisse have partnered with success. And I’m not defining success as financial
NetBase to compile sentiment data on handbag success: I’m defining it as being excited to wake up
designers.’ every day, knowing you enjoy your work and are
invigorated by the challenges it presents.
Brun-Jensen (2014)
Brown (2016)
 36 Part One | Communications Background and Theories

F I G U R E 2.1 BrandZTM top 100 most valuable global brands 2018

BrandZTM Top 100 Most Valuable Global Brands 2018

Brand value
Brand value Brand % change Rank Country
Brand Category 2018 $M contribution 2018 vs 2017 change of origin

1 Technology 302,063 4 +23% 0

2 Technology 300,595 4 +28% 0

3 Retail 207,594 4 +49% 1

4 Technology 200,987 4 +40% –1

5 Technology 178,990 5 +65% 3

6 Technology 162,106 4 +25% –1

7 Payments 145,611 5 +31% 0

8 Fast Food 126,044 4 +29% 2

9 Retail 113,401 3 +92% 5

10 Telecom Providers 106,698 3 –7% –4

11 Technology 96,269 4 –6% –2

12 Telecom Providers 84,897 3 –5% –1

13 Tobacco 81,914 3 –6% –1

14 Soft Drinks 79,964 5 +2% –1

15 Payments 70,872 4 +42% 5

16 Logistics 60,412 5 +4% 0

17 Technology 55,366 3 +23% 4

18 Regional Banks 54,952 3 –6% –3

19 Entertainment 53,833 5 +3% –1

20 Retail 47,229 3 +17% 4

21 Telecom Providers 46,349 4 –18% –4

22 Regional Banks 45,853 2 +45% 6

23 Fast Food 44,503 4 +1% –1

24 Telecom Providers 43,056 3 +3% –1

25 Telecom Providers 41,499 3 +8% 0

Source: BrandZTM / Kantar Millward Brown (including data from Bloomberg)

Brand contribution measures the influence of brand alone on financial value, on a scale of 1 to 5, 5 highest
SOURCE: Reproduced with the kind permission of BrandZ™/Kantar (including data from Bloomberg)
 2 | Branding 37

F I G U R E 2.1 (Continued)

BrandZTM Top 100 Most Valuable Global Brands 2018

Brand value
Brand value Brand % change Rank Country
Brand Category 2018 $M contribution 2018 vs 2017 change of origin

26 Luxury 41,138 5 +41% 3

27 Telecom Providers 39,372 2 NEW

28 Conglomerate 39,041 2 –22% –9

29 Apparel 38,479 4 +13% –3

30 Payments 35,440 5 +85% 22

31 Retail 34,002 2 +22% 0

32 Technology 33,723 3 +24% 0

33 Technology 32,191 4 +34% 4

34 Alcohol 32,113 4 +89% 30

35 Payments 30,046 4 +24% 1

36 Cars 29,987 4 +5% –6

37 Telecom Providers 28,860 3 –9% –10

38 Technology 28,316 2 +29% 6

39 Luxury 28,063 5 +20% 2

40 Beer 27,031 4 0% –7

41 Technology 26,861 5 +14% –2

42 Apparel 26,860 3 +7% –8

43 Insurance 26,141 3 +51% 18

44 Personal Care 26,107 4 +9% –6

45 Technology 25,802 2 –21% 1

46 Cars 25,684 5 +9% –6

47 Cars 25,624 4 +4% –12

48 Technology 24,922 3 +22% 1

49 Regional Banks 23,747 2 +27% 5

50 Global Banks 23,633 3 +15% –2

The Brand value of Coca-Cola includes Lights, Diets and Zero

The Brand value of Budweiser includes Bud Light
 38 Part One | Communications Background and Theories

F I G U R E 2.1 (Continued)

BrandZTM Top 100 Most Valuable Global Brands 2018

Brand value
Brand value Brand % change Rank Country
Brand Category 2018 $M contribution 2018 vs 2017 change of origin

51 Technology 22,958 4 +37% 14

52 Regional Banks 22,924 4 +8% –5

53 Telecom Providers 22,824 3 +4% –10

54 Luxury 22,442 5 +66% 26

55 Telecom Providers 22,377 3 +11% –5

56 Logistics 22,218 5 +14% –5

57 Technology 21,331 2 +28% 9

58 Global Banks 21,258 2 +21% 1

59 Retail 20,933 3 +94% NEW

60 Regional Banks 20,874 4 +22% 3

61 Entertainment 20,819 3 +73% 31

62 Logistics 20,568 4 +30% 8

63 Oil & Gas 20,264 1 +10% –6

64 Baby Care 20,183 5 –10% –22

65 Telecom Providers 19,647 3 +14% –3

66 Regional Banks 19,628 3 +6% –10

67 Regional Banks 19,324 3 –35% 6

68 Regional Banks 19,286 3 +11% –8

69 Regional Banks 19,141 2 +28% 3

70 Fast Food 18,766 4 –14% –25

71 Personal Care 18,516 5 +4% –13

72 Retail 18,265 3 +12% –4

73 Global Banks 18,251 3 –29% 1

74 Oil & Gas 18,222 1 –3% –19

75 Technology 17,831 3 +53% 23

Source: BrandZTM /Kantar Millward Brown (including data from Bloomberg)

Brand contribution measures the influence of brand alone on financial value, on a scale of 1 to 5, 5 highest
 2 | Branding 39

F I G U R E 2.1 (Continued)

BrandZTM Top 100 Most Valuable Global Brands 2018

Brand value
Brand value Brand % change Rank Country
Brand Category 2018 $M contribution 2018 vs 2017 change of origin

76 Retail 17,481 3 –8% –23

77 Regional Banks 17,439 2 +42% 10

78 Technology 17,026 3 +39% 12

79 Insurance 16,429 3 +18% –1

80 Regional Banks 16,278 3 +7% –9

81 Transport 16,045 3 NEW

82 Conglomerate 15,965 2 +14% –5

83 Technology 15,657 5 +15% –4

84 Regional Banks 15,607 2 +30% 10

85 Personal Care 15,358 5 –6% –18

86 Insurance 15,131 3 +29% 11

87 Fast Food 15,131 4 +12% –6

88 Retail 14,829 3 +20% –2

89 Technology 14,797 3 NEW

90 Logistics 14,537 4 NEW

91 Technology 14,496 5 NEW

92 Regional Banks 14,465 3 +3% –17

93 Retail 13,785 3 +12% –4

94 Telecom Providers 13,604 3 –15% –25

95 Retail 13,111 3 –2% –13

96 Cars 12,742 3 –2% –13

97 Cars 12,695 4 +4% –6

98 Soft Drinks 12,685 4 0% –14

99 Regional Banks 12,674 4 NEW

100 Apparel 12,456 4 +50% NEW

The Brand value of Pepsi includes Diets

 40 Part One | Communications Background and Theories

Business disadvantages of weak Not only do they talk back, but they now shout
back and even bite back if brands break their prom-
brands ise. Today’s customers have unlocked ‘brand con-
If a product or service does not have a single strong, trol’ from marketers and set up their own brand
unifying brand, its presence becomes diluted, seen discussions. Although they are still time pressed and
differently by different people. A diluted brand is information fatigued, they have found a new energy,
less recognizable, therefore less known, therefore fuelled by social media, which allows them to fulfil
less trusted and ultimately a more risky purchase. their age-old desire to communicate about what
Without a strong unified brand, products and ser- interests or concerns them. Customers have a plat-
vices become buried in a busy world of other, form to raise their voices, and some of them can’t
stronger brands. If a product or service has no real stop shouting!
strong brand, it may be symptomatic that the man- Customers are angry. They are also impatient.
agement team are themselves not sure of what the We are sitting on a customer service time bomb.
brand really is, what it is really good at, what distin- Sloppy marketing and self-destructing brands go
guishes it, what needs it meets and what emotions it hand-in-hand.
connects with. Without a strong brand most of the
marketing efforts fragment, splinter and disappear. Lousy marketing
We are in an era of declining marketing skills, meas-
ured by falling customer satisfaction scores in many
markets. The customer service time bomb is ticking
No brand, no cattle
(see Chapter 1 for more). Some angry customers
publicize their feelings on the many blogs and hate
The term ‘brand’ comes from the old Norse verb sites attacking brands. These can fuel an exponen-
brandr, which meant to burn, and which eventually tial spreading of negative word of mouth.
became a noun and adjective in medieval English.
The noun ‘brand’ meant flame, fire or torch, and the
Unlocking control
adjective meant burning, hence ‘brand hot’.
Animals were marked with red-hot branding irons
Customers have unlocked some ‘control’ from com-
panies, via social media conversations and public
as a sign of ownership and an easy way to identify
reviews. Online social networks are here to stay.
particular cattle.
They will continue to grow in line with the very
So strong brands beat weak brands. But,
human need for social contact. Customers have
despite creating protection against competition and
been mobilized by blogs, Twitter, Facebook,
boosting relationships, sales, profits and balance Instagram, WeChat and other social network sites.
sheets, brands are continually damaged and
weakened. Why do so many marketers allow so
many brands to press their own self-destruct The long tail
button? Read on. In the online world, the ‘long tail’ (Anderson, 2006)
suggests it can be as profitable to serve 100 custom-
ers spread across the world with 100 different
­digital products as it is to serve 100 local customers
with one standardized product. This opens a gate to
Brand self-destruction discrete consumer taste, which effectively moves
The brand relationship is always fragile. Constant markets away from the mass market and its tyr-
sloppy service or a single moment of disaster, such anny of the lowest common denominator. Instead
as contamination or a misplaced word (eg Ratners; of a handful of powerful marketers recommending,
see ‘Uncontrollable publicity – any publicity is good and often determining, what is in and what is out,
publicity?’ on p 414), can destroy the customer’s there are now mobilized niche customers alerting
trust. And customers are changing. They’re becom- their own networks about their own particular
ing more demanding. preferences.
 2 | Branding 41

that this is the last can and therefore scans the bar-
Death of the dumbed-down customer? code and commences searching for best beer deals.
The key to accessing the customers’ databases em-
bedded in fridges, microwaves, cars, phones and
‘For too long we’ve been suffering the tyranny of
personal digital assistants (PDAs) is not the hard-
lowest-common-denominator fare, subjected to
ware but the intelligence (and the database) to know
brain-dead summer blockbusters and
exactly when customers might like to replace some-
manufactured pop. Many of our assumptions thing. The IoT will connect customer databases with
about popular taste are actually artefacts of all sorts of devices, offering competitors’ special
poor supply-and-demand matching – a market deals. Data owners could steal control from brands.
response to inefficient distribution.’ So marketers who ignore new trends and real cus-
Anderson (2006) tomer needs and, worse still, deliver sloppy service
are simply pressing a self-destruct button that dam-
ages and ultimately destroys a very valuable brand.
Before exploring the right way to nurture a
Careful brand management brand (ie the branding process), consider exactly
as global niches emerge what a brand is and what its component parts are.
Although spread across the world, customers with
similar interests can communicate and share
thoughts through images, audio, video and text Brand components
any­where they want. Global segments are here. For
example, Manchester United Football Club has an
estimated 659 million fans and Al Jazeera’s English What exactly is a brand?
language TV news service reaches 300 million peo- A brand is far more than just a name, term, design
ple across 100 countries. As media follow markets, or symbol that identifies and distinguishes a prod-
media consumption may go global; therefore mar- uct or service from that of other competitors. A
keters must remember that brands with interna- brand is still a badge of origin, a promise of perfor-
tional ambitions must have a consistent global mance and a point of differentiation. Today, a brand
image – production should be international in mind, is a holistic experience that stretches beyond the
and content rights should be global. True brand physical and into the psychological. It is the sum of
masters also ‘think global and act local’ by paying the real product or service experience and the per-
attention to local market needs and having the nous ceived values, images, associations and promises
to express this in local terms. made through marketing communications.
Some brand names restrict international sales or ‘Brand’ is both a verb and a noun. It is a verb, as
global brand ambitions because they have brand it is a continual process, and a set of skills is required
names that do not translate very well (or that can- to create and nurture brands. Branding is a core
not be pronounced). See p 251 for a list of names competency for serious marketers. ‘Brand’ is also a
that damage the brand when used in some interna- noun, as it is an asset on the balance sheet and some-
tional markets. thing people buy. Some commentators define brands
as simply the difference between a bottle of sugared,
Data owner vs brand owner flavoured, fizzy water and a bottle of Coca-Cola.
Power will be prised away from those major brands
that cannot adapt to market trends. Maybe it will be
the customer database holders that take control? ‘Harley-Davidson does not sell motorcycles.
Imagine a consumer opening a fridge and as they Starbucks do not sell coffee. Club Med does not
take the last can of Guinness the fridge asks, ‘Would
sell vacations. And Guinness does not sell beer.
you like a new delivery of beer, but this time at a
Think about it.’
special price from a different brand?’ Here, it is the
Peters (2003)
database holder that knows who drinks what beer,
when and where, as the IoT fridge sensors can see
 42 Part One | Communications Background and Theories

F I G U R E 2.2 The most valuable global brands, 2018

 2 | Branding 43

F I G U R E 2.2 (Continued)
 44 Part One | Communications Background and Theories

A brand’s rational and emotional lives, ranging from building spacious towns, to bet-
ter schools, hospitals, libraries and parks. Today’s
appeals brands also need a platform of social responsibility.
A brand is a cluster of rational or functional and
emotional aspects that match customers’ rational
and emotional needs. Strong brands are designed to There’s never been so much
trigger specific emotional responses in the minds of
customers. Nike promises ‘personal achievement’,
emotion in business
while Coca-Cola promises ‘carefree fun’. What we
‘What will happen is based on emotional drives.
buy says more about us than we might want to
admit. It reveals our inner, often unconscious de- That’s why you can’t predict the future. If people
sires and aspirations. If the brand gets it right (un- worked on pure economic logic, I could predict
derstands a customer’s deep needs and reflects these the future, but I can’t.’
through a range of communications) then custom- Sir John Browne, BP in Jones (2001)
ers are simply buying some of their own aspirations.
They are, in fact, buying a slice of their ideal self.
Brands, therefore, have both rational and emo-
tional benefits. For example, Red Bull’s physical
(rational) benefit is that it keeps you awake (physi- Branding and a sense of purpose
cal stimulation), and its emotional benefit is that Your brand is everything you do. Your brand is not
you feel you can do more (feel stimulated). Natural your advertising nor your packaging nor your logo.
food drinks’ functional benefit is ‘pure fruit juice’, Your brand is the purpose and passion that drives
and their emotional benefit is ‘feel healthy/feel everything your organization does.
good’. Kellogg’s Corn Flakes’ physical benefit is As Ras Sisodia said, ask, ‘So why is your brand
‘breakfast nutrition’, and the emotional benefit is ‘a great? Why does your brand matter?’ ‘If you don’t
great start to the day’. As a brand develops, it should stand for something you’re dead; it’s just a question
elicit an emotional connection from customers. of when’ (Sisodia et al, 2014). See how ‘firms of
Some authors, like Kapferer (2008), see strong endearment’ outperform ‘other’ firms by over eight
brands as a deeply held belief or ‘an attitude knitted times (1,000 per cent+) over a 10-year period in
into consumers’ hearts. This attitude goes from Chapter 1.
emotional resonance to liking, to belonging to the
evoked set (or consideration set), to preference,
attachment, advocacy, to fanaticism.’ Some custom-
ers are really attached to their brands and simply
‘Brands are, after all, the sum of what people
will not buy anything else.
think about them.’
David Sable, Global CEO at Y&R
The emotional connection
Once upon a time brands used to be all about trust
and a seal of quality. Today quality is taken for
granted. Now brands fight for an emotional con- Brands are now a leadership issue
nection as a way of differentiation. Another plat-
form for brands to slug it out on is corporate values. and therefore brand strategy
Who is the brand, or the corporation behind the belongs in the boardroom
brand? Is it socially responsible, environmentally Your brand is a lot more than a nice colourful logo
friendly, an animal tester, politically neutral, chari- or an advertising strapline. Your brand is everything
table, or good for its community? Historically, the you do. Your brand culminates in the CX, which is
founders of some of the world’s strongest brands, everything your customers experience before, dur-
like Guinness, Cadbury and Boots, had huge com- ing and after consuming your brand. Your brands
mitments to their employees’ and communities’ are the reason your business exists.
 2 | Branding 45

Whatever you sell, sooner or later, somebody trend, eg Apple: the world would be a better place
else will do it better, faster, or cheaper than you. if people had the technology to unleash their po-
Your brand, and its purpose and passion that it tential.
embodies, is what customers will continue to buy
(assuming you are not way behind on the other Brand experience
variables).
Your brand is your ‘reason why’. Why I should Brand experience is what the customers feel or ex-
believe you, why I should work for you, why I perience when actually consuming a product or ser-
should choose you, why I should endorse you. vice. This includes all touchpoints of the brand (see
So in addition to a sense of purpose what are the below). Somehow this seems to be forgotten by
other brand components? many companies. The actual experience customers
enjoy, or suffer, directly affects the brand image.
Brand moments are all those moments of contact
The brand components between the brand and the customer. This includes
the website, email responses, telephone responses,
The brand components include brand equity, brand handling enquiries, the actual consumption of the
essence, brand experience, brand identity, brand product or service, and handling complaints and
personality, brand positioning, brand promise, after-sales, as well as all the marketing communica-
brand role, brand values and brand vision. They tions contacts with the customer. These are critical
must all integrate with each other. Here is an expla- brand moments.
nation of each component.
Brand identity
Brand equity Brand identity is part of brand equity. Identity is
Brand equity is the total awareness and perceived how the brand looks and is sometimes called the
value of the brand in the minds of customers. Badly ‘visual narrative’, ie logo, colours and graphics.
managed brands can result in negative brand equity. Brand image, on the other hand, is perception, ie
Brand equity components include the brand iden- how consumers see the brand based on identity plus
tity (brand name, symbols, jingles, colours, associa- all other communications, discussions and experi-
tions and any sensory features such as unique smells ences. Identity is reality. Image is perception.
or tactile experiences), awareness, customer loyalty, Identity precedes image. Identity helps customers to
perceived qualities and reputation. Brand aware- remember a brand, recognize it and eventually build
ness, brand preferences and brand loyalty are also associations with the brand values, personality and
part of the brand equity. Above all, actual brand promise promoted through all communications
experiences contribute to brand equity. tools.

Brand essence Brand personality

Brand essence is the brand’s soul and spiritual cen- People have relationships with brands just as they
tre, which draws on its core value(s). It is the do with people. That’s why marketers define the
brand’s mission statement (how it will help the brand personality carefully. Some brands have sub-
world) that motivates customers (and employees). tle, and often unconscious, relationships with cus-
The brand essence is the primary functional and tomers. A brand’s personality has those human
emotional benefits. For example, Apple Computers’ personality traits. What kind of person would the
essence might be ‘artful technology’, while brand be if it were human? Think of brands as ac-
Amazon’s might be ‘unparalleled breadth of selec- tual people. How would the brand talk and walk?
tion’ and Hallmark’s might be ‘helping people de- What kind of clothes would it wear? What kind of
fine and express themselves’. The brand essence car would it drive? What kinds of parties would it
must have 100 per cent recall among the whole go to? For example, the Marlboro Cowboy and the
business team and influence every decision they Singapore Airlines Girl have very different but well-
make. It starts with what the brand excels at and defined personalities.
then connects to an important cultural truth or
 46 Part One | Communications Background and Theories

personality or lifestyle, or as a social facilitator.

‘Hello gorgeous’ Where does it fit in the life of the customer? Is the
brand a champion, a chum, a comforter, a confes-
Virgin’s website greets you with ‘Hello gorgeous’. sor, a conscience, an enabler, an expert, an enter-
This is part of the whole brand experience and is tainer, a friend, a servant, a patron, a ringleader, a
consistent with the brand values and slightly guide, a guru, etc? For example, Red Bull might be
naughty brand personality. a ‘portable comforter for tired people’ or Ryanair
possibly enables people to access Europe.

Brand values
Brand positioning Brand values are not necessarily seen, as they are
Brand positioning is all about perception – how the declared internally. Imagine again the brand as a
brand is to be seen, or perceived, by customers using person. What does your brand believe in? What
just one or two (or sometimes a maximum of three) does it stand for? What standards does it attain?
key variables. For example, a certain drink could be How should it behave? Brand values are a belief
positioned as a young sick person’s drink or a system or a way of working and communicating.
healthy adult’s drink. A positioning statement iden- Mose (2003) asks:
tifies the best space for a brand to be positioned in Which values are so inherent in your company
the minds of customers. As markets change (cus- that, if they disappeared, your company would
tomers’ attitudes and needs change) so too brands cease to exist as it is? Thousands of companies
change to meet customer needs. Positioning studies disappear every year. So why has your company
identify what is important to customers, where survived? Why are investors still investing in
competitors are positioned (or what they are seen as your company? Why do your customers still buy
by customers) and if there are any gaps for a brand your product? Why do people come to work for
to fill or take over. This is brand strategy and is ab- your company? Why do you still work for your
solutely critical to success. company? These questions can help determine
Ask these questions when choosing a positioning: your company’s true core values.

●● Is it important to our target customers (will

it drive their buying behaviour)? Brand vision
●● Is it distinctive and specific? Brand vision is what the brand should be. In Virgin’s
●● Is it sustainable or can the competition copy case it might be to provide a service that is ‘the peo-
it? ple’s champion and which shakes up the status quo’.
●● Can the brand deliver it? In Nike’s case the vision is one of achievement, of
personal best, of being part of a community of ath-
letes. The brand allows people to reconnect with an
Brand promise Olympic ethos that sits somewhere deep inside the
psyche.
Brand promise or proposition is what the brand of-
fers the customer. For example, Perrier is a premium-­
priced carbonated mineral water with unique
packaging, etc. It is quite product related as op-
‘Do not relax until you have identified the
posed to consumer benefit related. Another brand
of water might be the healthiest water for your irreducible core of a brand – what drives its
body. The actual proposition flows from the posi- connection with consumers. This will mean
tioning. getting inside consumers’ heads, and
understanding deep-seated motivations and
thought processes.’
Brand role Braun (2004)
What role does this brand play in target custom-
ers’ lives? The brand role is an extension of brand
 2 | Branding 47

Sensory branding may become more of the brand outside of your company. Because at the end of the
experience, as trademark regulations in almost all day your brand is what you DO, not just what you
countries are accepting applications for registering say… A clearly articulated and authentic brand is
components of the brand that incorporate all five the most powerful way to shift the attitudes and
senses. Lindstrom (2005) reported that: behaviour of your people and customers, shift
your performance, and shift your world.
Decades ago, Texas developed the Texas touch, Sauerman (2018)
albeit on their calculators. Texas was one of the
first companies to actually trademark the specific
‘clicks’ – the feel of the number pad on their
calculators. The interesting fact is that users of
the product may not recognize Texas’s logo, but Branding involves love and joy
they still recognize the ‘touch’. Singapore Airlines
currently has nine patents including a patent on
the Stephan Florida Smell – the characteristic ‘Bringing love, joy, authenticity, empathy, and
‘Singapore Airline smell’ of the hot towels served soulfulness into their businesses, and not just
onboard. Kellogg’s invested in the power of focusing on making a profit.’
auditory stimulus, testing the crunching of cereals Sauerman (2018)
in a Danish sound lab to upgrade their product’s
‘sound quality.’
Brand touchpoints are sometimes called ‘brand mo-
ments’ or ‘customer touchpoints’. Touchpoints are
anywhere the brand touches the customer, eg pack-
aging, advertisements, websites, telephonists, spon-
The branding process
sorship, events, etc. While customers are waiting on
A big prize awaits brands that can develop deeper
the phone, what brand experience do they have?
and longer-lasting connections with their custom-
While they are receiving a bill, letter, fax or email,
ers. Marketers should treat the word ‘brand’ as a
what experience do they have? These are part of the
verb and not a noun, as branding is a continual pro-
brand experience. Marketers need to pinpoint the
cess. Brand building and brand maintenance are, in
relevant attributes that distinguish the brand and
fact, a core competency. Outstanding marketers use
the touchpoints that can deliver these (in order of
a development process when creating an advertis-
importance). This requires input from everyone –
ing campaign, an exhibition, a website or an actual
from CEO, MD, marketing, operations and sales
brand. They also use it when reviewing and updat-
teams to advertising people and webmasters.
ing a brand, since brands have to be redefined for a
One of the ultimate touchpoints for a brand is
new era (otherwise markets can move away from
experiential marketing – traditionally live events
old, outdated brands). The best brand stewards or
offline where customers get to interact with the
guardians have an inbuilt review process to ensure
brand in a new and immersive environment.
the brand is kept fresh. They ensure it does not
allow obsolescence to creep in, and tweak it if nec-
essary. So, whether you are creating a new brand or
Branding is simple but not maintaining an existing one, here are the four main
steps in the process: brief, concept generation, con-
easy cept development and roll-out/delivery. Figure 2.3
shows the process required to create and maintain
So branding is simple, but, that doesn’t mean brand- strong brands.
ing is easy! As Richard Sauerman says, A clear brief covers details of the target market,
required brand role, personality, values, positioning,
There is an art to discovering the authentic
etc. Concepts or ideas are generated. One or two are
purpose and passion that is at the heart of your
selected and developed, and finally one is rolled out
company. There’s also an art to bringing your
brand to life, both on the inside as well as the as the new brand. What’s missing in this process?
Research. Research is required before and after
 48 Part One | Communications Background and Theories

F I G U R E 2.3 The brand development F I G U R E 2 . 4 The brand development

process process including research

BRIEF Research

CONCEPT
GENERATION BRIEF

CONCEPT
DEVELOPMENT Research

ROLL OUT/ CONCEPT

DELIVERY GENERATION

each stage. The revised and complete brand devel- Research

opment process is shown in Figures 2.4 and 2.5.

CONCEPT
Research DEVELOPMENT

In order to explore the brand opportunity, research

is used at the early stage of a brand’s development
(way before any brand names, logos and colours). Research
Target markets are analysed, buyer behaviour driv-
ers explored, brand personalities defined and the
most cost-effective brand moments identified.
Successful brands use a platform of information ROLL OUT/DELIVERY
to help to nurture the brand. Initial exploratory
research is used to:
●● identify long-term profitable customers; Research
●● develop a deep understanding of the
customer;
●● identify aspects of the brand that drive
behaviour; Identify long-term profitable
●● identify the emotions that drive brand customers
behaviour;
Do not invest branding efforts in unprofitable seg-
●● identify personality, values, associations and ments (particularly those with weak long-term po-
the promise; tential). The profit potential of each segment needs
●● identify critical brand moments – or critical to be measured. Also watch out for trends that may
touchpoints; affect the relevance of the traditional segmentation
●● identify the most cost-effective, high-impact approach (eg size, income, age, ethnicity, consump-
brand moments. tion patterns, loyalty, locations, lifestyles, needs
and attitudes). For example, the business traveller
Let’s consider each of these in more detail.
 2 | Branding 49

F I G U R E 2.5 The complete brand development process

Identify long-term customers, their needs (including aspects of a brand that

Research drive behaviour) and key brand moments or touchpoints. Identify brand
personality, values, associations and promise. Identify competitors and trends.

Take all the preceding research and summarize it into a one-page brief
BRIEF
highlighting target markets, brand personality, positioning, values, etc.

More market research to identify ideal brand personality, values and promise
Research
– sometimes carried out by the agency or design team.

CONCEPT
Generate several creative ideas or concepts.
GENERATION

Concept research, eg focus groups to discuss initial concepts, identify

Research
the best concepts and identify other questions or issues for further research.

CONCEPT
Take the chosen concept and develop it into finished artwork.
DEVELOPMENT

Final concept testing, eg hall tests and test market – often easier to do
Research
with advertising concepts than brand concepts.

ROLL OUT/ The biggest cost of any brand development is its establishment on all
DELIVERY stationery, buildings, cars, etc. Staff buy-in, training and motivation.

Measure and improve: tracking studies (eg independent brand popularity

Research
rankings or studies). Measure staff performance and customer satisfaction.

hotel segments may be changing from service-­ Develop a deep understanding

orientated business travelling to value-driven busi-
ness travelling and luxury-driven business of the customer
travelling. The latter may split into ‘fashion seeker’ Rudyard Kipling’s six honest serving men were the
segments (who see their hotels as a way of express- questions who, what, why, where, when and how.
ing who they are) and ‘escape seeker’ segments Outstanding marketers can answer all of these ques-
(who want to feel pampered and far from the pres- tions about their customer segments. The most dif-
sures of business). ficult is ‘why’ – why do customers buy? (We’ll look
Identified trends are a marketer’s friend. at this further in Chapter 4.) Excellent marketers
 50 Part One | Communications Background and Theories

know their customers better than they know them- Identify the emotions that drive
selves. A deep understanding of the customers is re-
quired; for example a hotel might uncover that the brand behaviour
core need underlying the desire for comfort is to A brand is much more than a product. It is a life-
‘feel as though I’m at home while I’m away’. As de- style or a personality that appeals to the emotions
sires change, trends must be watched continuously as well as the rational, thinking side of the brain.
to ensure the right offers are made; some retail sec- Emotions are very important. Branding is about
tors have discovered that speed is now far more im- creating and maintaining emotional ties. Marketers
portant to customers than credit card facilities and must probe and discover their customers’ emotions,
accordingly offer cash-only transactions. An airline since they often drive behaviour.
may have to prioritize between easier upgrades, Le Pla et al (2003) identified three triggers to cre-
more onboard services, faster check-in, a bigger ate an emotional tie that ultimately strengthens
baggage allowance and more frequent-flyer miles. brand loyalty: 1) congruence with deeply rooted life
Getting the proposition right is critical when build- themes (values); 2) helping the accomplishment of
ing brands. life projects; 3) resolution of current concerns. ‘If all
three triggers can occur through the customer’s per-
sonal relationship with the brand then it is likely
that the customer will see the brand as a friend or
partner, or as the heart of a community of users –
Invite a brand into your life where the community becomes a significant part of
the customer’s life.’
‘Marketers need a deeper understanding of In the US car market, Mini created huge sales
what makes people invite certain brands and and high brand loyalty when it appealed to the
propositions into their lives and what makes emotions of drivers. The advertisements declared
‘opposition to bigness’ and promised to ‘wage war
them reject others.’
on SUVs’. The Mini ‘celebrated the joy of motor-
Fauconnier (2006)
ing’ as opposed to ‘the lobotomized, cruise control
movement of most car transport on America’s
highways and streets’. GM’s Saturn also used emo-
tion in car advertisements that said very little about
the car but lots about the company’s ideology. The
Identify aspects of the brand that car wasn’t even shown in the advertisements, but
drive behaviour the ordinary people who made it were. The ad
A brand’s specific features may clearly distinguish explained GM’s beliefs and values. The car became
it from its competitors but not be important to the top-selling small car two years after launch,
customers. This is what Aufreiter et al (2003) refer with a community built around the brand (some
to as the ‘fool’s gold of branding’. Different but 45,000 customers and families turned up at a fac-
non-important features are irrelevant if they do tory to meet each other and the company at its
not drive customer behaviour. Without knowing open day, which had barbecues, bands and a fac-
which features really do affect customer behav- tory tour).
iour, an organization can squander limited re-
sources promoting unwanted aspects of the brand.
It’s a little bit like getting high satisfaction scores
but wondering why customers are leaving in
‘We don’t know how to sell on performance.
droves. You’re probably measuring features that
were important in previous years but are no longer Everything we sell, we sell on image.’
so. Customer desires change, and so trend spot- Robert Gouezeta, former CEO, Coca-Cola
ting and brand adjusting are required to keep
brands up to date and out of the great brand
graveyard in the sky.
 2 | Branding 51

Identify personality, values,

associations and the promise Secure the .com version of your new brand name’s
url. Secure the Twitter handle you want for the
Identify the kind of brand personality that reflects
the ideal personality that the target market aspires new brand.
to or admires. Build in the values and associations
that matter to the target market. Make a very clear
simple promise and stick to it – never break it. Run focus groups with customers in your target
markets to uncover any hidden issues with your
Identify critical brand moments – proposed rebranding.
or critical touchpoints
These are the places, often beyond the consumption
of the actual product or service, where a large part ‘When Netflix first announced its ill-fated
of the total brand experience is really delivered. rebranding to split the Netflix and Qwikster
This is where the customer has a large emotional services, it quickly became apparent that one
investment, for example a phone call to the cus- vital element of the due-diligence process had
tomer service line to make a complaint. It includes been glossed over. Because the company had
anywhere that customers interact with the brand failed to secure the “@Qwikster” username on
(phone, store and web, as well as ads and events,
Twitter, the handle was snatched up by a user
etc).
who flooded his feed with images of a beloved
children’s character making use of illicit
Identify the most cost-effective, substances. Netflix quickly scrapped the launch
high-impact brand moments of the DVD-only service Qwikster in the face of
Channel creativity and resources into these high- negative publicity.’
impact areas. This is where the brand will be en- Kumar (2012)
hanced or destroyed. Remember, a beautifully
designed logo and clever brand name mean nothing
if the website doesn’t work or the customer service
person cannot solve the problem. Equally, a won- The brief
derful product can be destroyed if it is delivered
­uncaringly. The starting point for any branding initiative is to
ask what its objectives are: what is it trying to
achieve in the customers’ minds? The brief should
include the brand promise, personality, values, as-
Service training or website redesign? sociations and positioning (as well as the 3Ms: men/
women, money and minutes – who is responsible
Which is the priority? Creating a new customer for what, how much budget is allocated to creating
service training programme or redesigning a this brand, and how much time there is before the
website? Answer: find the high-impact touchpoints launch, testing and concept development stages).
and allocate resources that have the biggest effect Brand logos and clever names come later. A good
on them brief should be written and agreed or signed off by
all the key decision-makers.
As well as defining the target market, the brief
Equipped with answers to all of the research ques- includes the brand’s promise to customers. What
tions, we now know what we want and what is the makes it different? What needs is it fulfilling? In
priority. Having completed the research, we can addition to target markets, distribution channels
now write the brief. and regulatory guidelines, the brief should include
brand vision, role and essence.
 52 Part One | Communications Background and Theories

An example of promise is Volkswagen promising However, once the brief has been signed off,
the most reliable car. Volvo promise the safest. The some additional research may be carried out into
brand’s personality (the tone, manner and style of customers, distributors and even competitors. On
how you speak to customers, what you look like the basis of a clear brief and any additional research
and how your staff behave) gives guidelines both required, brand names and brand logos can be gen-
for marketing communications and for staff behav- erated and then researched, with the best one(s)
iour. Virgin’s personality is consistently irreverent; being selected for refinement or development. The
their airport luggage-size signs state ‘The size of finished brand name and logo are then tested once
your bag has a limit – but the size of your ego can’t more. Early-stage research should include global
be too large!’ Brand values are included, as they use, ie whether the name or the logo has any strange
influence how you work, your beliefs and your meaning in other key languages, and whether it is
standards of behaviour. The brand’s positioning protectable. Let us look at brand name develop-
must be crystal clear. This summarizes all the other ment and brand logo development.
questions and is key to marketing strategy.
Positioning defines how your brand’s distinctive Brand name development
benefits should be perceived by customers alongside
competitive offers. Developing brand names is a specialized business in
Two important aspects for any brand brief are itself. A brand name should be distinctive and easy
relevance and differentiation. The proposition must to say, spell and remember. It should also be rele-
make customers an offer, firstly, that fits their needs vant, brief (maximum four syllables) and legally
and, secondly, that the competition cannot (easily) protectable (ie not generic) and lend itself to adver-
offer. Relevance and difference increase the likeli- tising and promotion. Lastly, a really good name
hood of success. But remember, relevant product can be used almost globally.
differentiators may change over time. Three different approaches to brand name devel-
A useful aide-mémoire for any brief is SOS + opment are: product function; classic names (Latin
3Ms, which is taken from the marketing planning or Greek); and benefit based. Product function, eg
system called SOSTAC®. The SOS brief provides a International Business Machines (now IBM), is dif-
useful framework, as it includes situation analysis ficult to protect. The classic approach is more pro-
(where are we now?), objectives (where are we tectable; Nike is a Greek name, which relates to the
going?) and strategy (how do we get there?); the specific cultural values of the Olympic Games and
3Ms are men/women (the brand manager and team the glorification of the human body. Thirdly, benefit-­
who decide), money (budget) and minutes (time- based names are less directly associated with a
scale). For more on SOSTAC®, see Chapter 9. product or service’s functions and closer to a name
that evokes product benefit or even a certain state
of mind, eg Nectar for a ‘reward points’ programme.
And there are always exceptions to the rule.
Richard Branson claims to have named his brand
A brand that does not stand for something stands
Virgin because he was a virgin when it came to busi-
for nothing.
ness. Tech giant Cisco’s name comes from the last
five letters of San Francisco, reportedly chosen
when the founders were inspired by a drive past the
Concept generation and Golden Gate Bridge en route to register the com-
pany. Aldi supermarket’s founder, Theo Albrecht,
development supposedly combined his name with ‘discount’.
The answers to questions about the brand’s prom- Names need to be distinctive and protectable (to
ise, personality, values, associations and positioning register them as trademarks). Functional or descrip-
give clear guidance to any creative ideas. A good tive names are difficult to register, as they may be
brief saves a lot of time, as it steers creative think- deemed to be generic words commonly used by oth-
ing in the right direction and avoids generating ers (and therefore owned by everyone).
time-consuming concepts that do not fulfil the Once a short list of names has been generated, a
brand ­prerequisites. name search is carried out in the target market (and
 2 | Branding 53

potential target markets) to check to see if anyone Logo development

has registered these names already in the same busi-
The process of developing a logo is similar to the
ness sector. After that, some simple concept testing
process of developing any aspect of marketing com-
in each target market reveals whether the brand
munications: brief, concept generation (and selec-
name has any negative meanings in different lan-
tion), concept development and finally launch or
guages, as Coca-Cola discovered in China (see
roll-out. In between each stage, research gives cru-
Chapter 8). Without these checks, subsequent
cial feedback. This helps to select the best concept,
opportunities for global expansion are curtailed
which when guided by feedback (research) is devel-
without an expensive and time-consuming rebrand-
oped into the final logo design. It does get one last
ing exercise.
check with more research before roll-out.
One UK design consultancy developed a new
Brand logos logo for Saudi Arabian Airlines that looked, to the
The crucifix, the hammer and sickle, the swastika, uninitiated, distinctive, unique and easily recogniz-
the red cross or a national flag immediately arouse able. The logo contained golden palm trees, crossed
emotions, feelings, images or interpretations of Arabian swords and a crescent moon and appeared
some kind. Logos are a language (sometimes inter- to be suitably upmarket and regal. In fact, it con-
national) of emotional response. Symbols, shapes tained four major errors:
and colour all have conscious and unconscious ●● the wrong type of palm tree – Saudi Arabia is
meanings. Visual symbols or devices can also be the number two producer of dates, but the
powerful as a means of increasing awareness by fa- palm tree shown was not a date palm tree;
cilitating easy recognition. A logo can act as a focal
point to summarize or encapsulate an organiza- ●● the wrong type of sword – the traditional
tion, although it should not be too complex. If an Saudi sword is a fighting sword, but the
identity needs too much explaining, then it isn’t sword shown in the logo looked weak, old
working. The acid test for a logo is: distinctive, and ceremonial;
easi­ly recognizable, memorable and reducible (can ●● the wrong moon – the crescent of the new
work when reduced on to a business card or post- moon used by Saudi Arabia represents a new
age stamp). It should work in black and white as beginning, but the proposed crescent was
well as colour, since many corporate images appear that of an old moon, suggesting ‘the end’;
in black and white in the press. Ideally, the logo ●● the wrong colour – the old green colour was
should also be symbolic, or relevant to the busi- replaced by cream, which represents hot,
ness, but this is rarely the case. It must work well barren sand in the desert when Saudi Arabia
online, as well as in its more traditional applica- was trying to irrigate the kingdom and make
tions. it green.
Logos are an important part of the brand iden-
tity and often are described as a key component of This confirms the need for designers to invest in de-
brand equity; Nike’s swoosh and McDonald’s tailed research before attempting to develop any
golden arches help audiences and customers to rec- design concepts. Designers who neither budget nor
ognize the brand instantly and also help to differen- plan for research (or several stages of research)
tiate the brand. A logo also acts as a stamp or vastly increase the likelihood of problems. Worse
guarantee. It should, ideally, reflect the values of the still, if problems occur after implementation of a
brand. Logos can protect a trademark when com- new design, the costs immediately spin out of con-
bined with generic words (as generic words them- trol, and there is a highly embarrassed management
selves are usually not protectable on their own, but team.
the combination of the words with the logo may The logo can be literal (eg Shell), a logotype (a
be). Good logos (unique, easily recognizable, rele- stylized treatment of the company name with no
vant and well maintained) become icons, and not additional symbol, eg Kellogg’s), wordmarks that
only are they recognizable but even parts of them integrate a graphic element into the name, company
are recognizable, such as the Heinz chevron or the initials (eg IBM) or purely abstract. Whichever type
‘M’ in Marlboro. of logo is chosen, it is essential to research the
 54 Part One | Communications Background and Theories

choice carefully, particularly in global markets HR work closely together. The brand effectively
where symbols, colours and words can have very becomes everybody’s business.
different meanings. Do all employees know (and memorize) what the
brand promise and brand values are? Do they know
what the business stands for? Are they able to tell
the brand story in a compelling way to different
End of logos? stakeholder audiences including shareholders,
employees, customers and vendors? To ensure that
‘A logo today has turned out to be a warning a brand comes to life throughout the organization,
sign of a commercial message. The trend is that ask whether you need structural or departmental
it will disappear and be replaced by other changes. It is that important. Consider every aspect
non-conscious signals – everything from iPod’s of the organization from employee behaviour to
white ear plugs, to Tiffany’s blue packaging, to premises. Inject the brand DNA into your organiza-
the United Colors of Benetton photos or tion structure.
whatever you are imaging. If you look at
Formula 1 today, you’ll see that most of the Motivate and train staff
Ferrari cars have these funny red-coloured bar Develop operational targets to build the brand. Try
codes. That is the secret logo from Marlboro. linking customer satisfaction scores and brand rat-
There’s no logo, there’s no name on it.’ ings to operational targets. (You should measure
Martin Lindstrom, in Rothery (2009) criteria that are important to customers, not those
you think are important.) All staff are brand ambas-
sadors.
Brand consistency stops a brand from splinter-
ing, diluting and ebbing away. Crystal-clear brand
Roll-out/delivery guidelines can include templates for all marketing
collateral so that brochures, websites and signage
The roll-out of a brand requires far more than just
are all consistently produced anywhere in the world.
press launches and lavish branding events. It starts
The brand guidelines also include the Pantone col-
internally; the whole organization needs to be mo-
ours, size and layout of logos and straplines for a
bilized. They must live and breathe the brand, start-
range of different uses, online and offline, as well as
ing with the CEO acting as brand champion and
above and below the line.
cascading down through the organization by:
●● living the brand;
●● linking operational targets to brand ratings;
‘Nike bought its iconic “swoosh” logo for a
●● linking rewards to customer satisfaction and mere $35 while Twitter paid iStockphoto less
brands ratings; than $15 for its now famous bird logo.’
●● putting brand values in job specifications. Stampler (2013)
Living the brand means internalizing it and living
its values. What a business does reveals its personal-
ity and values far more than any amount of adver-
tising. Any significant disconnection between what At first a new logo has little or no value because it has
an organization says about itself and what it actu- no franchise. First it must be associated with the right
ally does will seriously undermine people’s relation- kinds of images, and then its recognition levels can be
ship with the brand. developed (eg Lloyds Bank’s black horse). This takes
Living the brand occurs when employees actively time, since initial reaction to change or anything new
and enthusiastically deliver the brand promise day is often quite negative. Sometimes the initial reaction
in, day out. It helps if the brand and brand respon- is one of upset, dislike or disgust, as the new logo does
sibilities are written into the job description of every not fit in with the previous set of cognitions (and
member of the team. This is where marketing and thereby creates ‘cognitive dissonance’ and possibly
 2 | Branding 55

tension). The value of the logo eventually starts to in- be mobilized to support it; then come the channel
crease as the years roll by and it becomes better under- partners (distributors). Brand managers need to
stood. However, it helps enormously if internal ensure that the brand is never compromised or tar-
marketing carefully brings staff on board throughout nished on its journey to the end customer.
the development and ultimately before the launch. A fatal mistake some marketers make is to focus
Whether the logo trend is towards simplicity, too heavily on external marketing communications
swooshes or sharp-edged internationally under- (developing advertising campaigns, direct mail cam-
stood symbols, the corporate identity demands paigns, websites and opt-in SMS campaigns to boost
careful management across all the points of public cross-selling and up-selling), rather than ensuring all
contact. customer touchpoints are consistently executed.

Brand maintenance
Creating a brand is relatively simple, but not easy.
Subconscious air travel worries?
Maintaining it can also be a challenge (as you will
see with the UEFA corporate identity case study).
Great brand managers constantly develop or rein- Attention to detailed design management can
vigorate the brand so that it is seen as relevant (not subconsciously influence air travellers. The same
‘hip’ or necessarily modern, but definitely always logo, typeface, primary and secondary colours and
relevant to the target market). Remember, target trim on all visual points of contact help to reassure
markets move and change. The classic Lucozade the traveller, while reinforcing the airline’s identity.
drink was once upon a time positioned as a drink The check-in desk logo, signs, colours and trims
for sick children. As the market demographics should be coordinated with the uniform (and
moved from a disproportionately large number of badge), ticket holder, baggage tag and departure
children in the 1960s to a disproportionately large lounge carpets, right through to the plane’s exterior
number of young adults in the 1980s, Lucozade re- graphics, interior carpet and even the trim on the
positioned itself as a healthy adult’s drink. Today it china and linen. Without this coordinated corporate
has moved on again, twisting and tweaking itself to identity, cognitive dissonance can set in. There is a
stay relevant to its key target market. Maintaining a subconscious unease or discomfort created by the
brand requires vision, system, determination and inconsistent messages. A coordinated identity
people. reduces this often-unconscious tension, which in
turn creates a more satisfied passenger. The
Mobilize staff and channel partners cohesive identity does not make the traveller leap
The brand requires a system that mobilizes the en- off the plane and scream for joy on arrival, but it
tire organization. Bringing a brand to life requires a might make the subconscious difference next time
completely integrated approach beyond marketing. around when choosing between two airlines if one
Operations and HR must develop a system that in- offers a reassuring sense of order.
spires and motivates all staff to support the brand.
Ideally, job descriptions should explain the respon-
sibilities that staff have to ‘live the brand’.
Operational targets can be linked to building and Brand policing
maintaining the brand (such as measuring relevant
customer satisfaction). The brand needs to be em- Brand managers are guardians who need to ensure
bedded into the DNA of the business. the brand is consistently used in all touchpoints.
This, in turn, helps the company to live the Brand policing is important. If an organization’s
brand, ensuring that all those crucial ‘brand identity is not coordinated or managed precisely,
moments’ (when the business interacts with the cus- confusing signals go out to different audiences
tomer) actually reflect the brand. The primary audi- around the world. A splintered identity fragments
ence for a brand is the employees – as they need to the corporate image, which in turn dilutes the cor-
porate presence among key audiences. The potential
 56 Part One | Communications Background and Theories

asset (corporate brand) depreciates to the point and to reinforce identity through all the appropri-
where it becomes a liability. The organization di- ate points of public contact. This should include
lutes its presence and has an uncoordinated image. advertising and all elements of the communications
This sends out disorganized messages that weaken mix, which includes permanent media like corpo-
the initial or final impression left by the organiza- rate headquarters.
tion. The logo is just the tip of the iceberg. It is often
A logo displayed prominently in an office or on a the most visible part of an organization. A corpo-
letterhead makes a good strong statement, but it is rate identity scheme may have a logo at its heart,
the consistent ‘echoing’ of the logo, its exact pri- but it will generally include a whole array of other
mary and secondary colours, the specific typeface elements, often referred to as ‘visual language’. This
and the overall design style on the ‘secondary for- may include typefaces, a colour palette, the use of
mat’ of products, packages, business forms and photography and illustrations, a layout style for
employee uniforms, that provides the all-important, using these items and even a particular style of writ-
if subtle, consistent reinforcement. ten language, as well as briefs for interior design
There is a need to think it through in detail and and exteriors of buildings (plus, today, eco-friendly
then to police the usage of all visual points of con- building requirements).
tact. This is where a design manual guides managers A good corporate brand can help sales and boost
in different buildings and in different countries to employee relationships, financial relationships and
specify, in a consistent manner, the exact graphic media relationships during a crisis. Corporate
requirement for every point of visual contact. branding, however, requires a lot more than just a
corporate identity. The impact of a corporate iden-
tity programme goes far beyond a logo or a lick of
paint. It influences almost every manifestation of an
Sweaty identity
organization, its corporate headquarters, its staff
and even the way they work. All of the components
In corporate identity terms, attention to detail need to be in place. A new logo raises stakeholder
needs to spread beyond just graphics. The classic expectations.
1990 US Hall of Shame reported the following:

‘To upgrade its image in 1982 AT&T told its

repair people to wear dress shirts and ties, gave
them attaché cases for their tools, and renamed Boards, doors, logos and skunks
them “system technicians”. But Ma Bell didn’t
install air conditioning in its cars. So during the
‘A new letterhead and a new logo is no
summer the technicians arrived on the job
substitute for a new board of directors.’
looking like they had just stepped out of a
Fitch (2003)
sauna. Said a union official, “It’s hard to have
corporate appeal if your shirt is wringing wet.”’
‘Painting the lavatory door won’t cure the
Nash and Zull Products (1989)
plumbing.’
Bernstein (1984)

‘If you take a lousy low-profile company and

The importance of consistency applies right across
give it a major corporate revamp, you end up
the communications spectrum. In John Murphy’s
classic book Branding (1991), Klaus Morwind with a lousy high-profile company.’
Henkel points to consumer research that ‘has indi- Olins (1989)
cated that a lack of consistency between the brand
name, the packaging and the advertising is subcon- ‘Even if you paint out a skunk’s stripes it will still
sciously recognized by the consumer and leads to a smell extremely nasty.’
feeling of detachment, ultimately resulting in Source unknown
brandswitching’. So it is important to be consistent
 2 | Branding 57

Corporate brands and sub-brands guidelines is required here to ensure that exactly
the same features appear correctly anytime and
An umbrella brand, such as the Virgin brand, can
anywhere.
have various sub-brands, such as Virgin Atlantic
and Virgin Trains. A corporate brand, such as
GlaxoSmithKline (GSK), Unilever or Procter & Review the brand
Gamble (P&G), on the other hand, remains in the Brands require constant reviews and investment of
background and offers an endorsement, while a energies and money. They often need to be rein-
mainstream brand like Persil can have sub-brands vented or reinvigorated to avoid being left behind
such as Persil washing-up liquid and Persil powder. by a fast-changing marketplace. A constant flow of
market research should ensure the brand really ad-
Invest in the brand asset dresses customers’ deep needs, which change over
time. Otherwise brands fade as tastes change.
Constant investment is also required to maintain a
Constant market research also reveals how the
brand’s profile and avoid it getting buried in the
brand is positioned against existing competition and
communications clutter. Some companies take the
new competitors. As British design guru Wally Olins
long-term, brand investment view; Coke invested
(1989) said, ‘In a complex and changing company
$65 million in sponsoring the Olympics from 2009
the corporate identity [for an overall company]
to 2020.
bears a great strain, twisting and turning to fit every
Constant reviews of brands, and in particular
new requirement. But a good corporate identity
large portfolios of brands, can result in a major
should last a generation.’ Well some brand manag-
strategic consolidation of the brand portfolio, as in
ers like to review and tweak every ten years, or every
the case of Unilever when it cut its portfolio of
five years or in the case of UEFA, every three years.
1,600 brands down to 400.
When does a brand identity become out of date?
Brands are under increased challenges today.
Can the business environment change and move
Brands fade as tastes change, unless of course they
away from the organization and its values, leaving
are maintained and nurtured carefully to meet the
behind the obsolete, irrelevant and even damaging
new market conditions. Even in steady-state mar-
corporate identity? When do the staff and other
kets where there are no great trends pulling the
audiences get tired of it? Mergers and acquisitions
market away from the brand, marketers still need
sometimes necessitate a new corporate identity.
to ensure that it is policed carefully, particularly as
Occasionally, legal reasons force a change. Sometimes
a brand grows globally. Rigorous use of brand
overseas ambitions are restricted by the use of a

F I G U R E 2.6 The Shell logo and its redesign

 58 Part One | Communications Background and Theories

home-grown logo (eg BT’s old logo clashed with that Constant watch: The customer
of overseas companies).
Shell reviews and updates its corporate identity experience
(Figure 2.6). The shell device has served it well, Brand maintenance also requires careful attention
despite its being a petrol company with a ‘high to the customer experience (which as we’ve seen is
explosive’ name. Global markets are constantly often very poor). Poor product quality and sloppy
moving and changing, so much so that some organ- service destroy brands more quickly than any large
izations fear they are being left behind. A review advertising budget can build them. Unacceptable
and redesign can help an organization to keep product or service quality, complicated order forms,
abreast of trends and avoid being left isolated by a late delivery, incomprehensible customer service
redundant identity. See the full UEFA corporate agents and error-laden websites all destroy a brand.
identity case study at the end of this chapter. Slow email responses damage the brand. Non-
Sometimes new brand identities are developed responses can kill it.
simply because old management wants to say some- Attention to the customer experience both offline
thing new or a new CEO wants to announce he or and online is important. Online brands still deliver
she has arrived. This is a dangerous game, as a new offline (eg Amazon books), hence marketers moni-
brand identity or a new corporate identity raises tor the offline aspects carefully also. And all brands
expectations that the organization has new ways of (online and offline) have opportunities to extend
working, new customer benefits or new customer the brand experience online by layering in new and
experiences. exciting value-adding benefits. They add some ‘siz-
zle’. Embellishing and extending the brand experi-
ence online can be achieved with ‘sizzle’, which
Aggressive hand-held torch of learning cannot be found offline.
Nurturing brands can include lavishing wonder-
gets the chop ful brand experiences on customers, otherwise
known as experiential marketing. It also includes
The National Union of Teachers’ 25-year-old engaging customers and moving them up into
‘hand-held torch of learning’ was considered to higher levels of brand engagement.
have become too strident, aggressive and Finally there is the experience – the quality of the
uncaring, with none-too-desirable connotations of experience, both online and offline, directly affects
the Conservative party and the Greek fascist party. the brand and its image. Remember, sloppy web-
Although it was designed in the 1960s, it had a sites, unanswered emails and comments, unpleasant
1930s look. It appeared that the time was right to receptionists and any other touchpoints can dam-
move the logo on but keep it relevant and maintain age the brand. Many marketers now see the online
the link with the union’s heritage. The updated opportunity to build both the brand image and the
design shows an outstretched hand embraced by overall company value.
the spelt-out words of the NUT, tying the symbol
together as one cohesive form, either male or
female, adult or child, to avoid alienation. In just a few seconds sloppy websites destroy
brands that took years to build.
F I G U R E 2.7 Hand-held torch of learning
Social media now engages the customer in new
ways (as discussed in Chapter 1). A brand’s own
website can add deeper, richer brand experiences by
adding some ‘sizzle’ (Chaffey and Smith, 2013).

Ask ‘What experience could a website deliver that

would really wow customers?’
 2 | Branding 59

What experience could a website deliver that would A customer who doesn’t care about the product
really add value for customers, be truly unique and or service is likely to be less committed or less emo-
be representative of the brand? Ultimately ask ‘How tionally attached to the firm supplying the product
can my website help my customers (or other stake- or service. On the other hand, a customer who is
holders)?’ Here are a few examples: engaging is likely to be more emotionally connected
to the brand. Marketers need to know about the
●● A camera company can help customers to
sentiment, opinion and affinity a person has towards
take better photographs by simulating taking
a brand. This is often expressed through repeat vis-
photographs with different settings and
its, purchases, product ratings, reviews, blogs and
allowing customers to compare and contrast
discussion forums and, ultimately, the person’s like-
the results (and can also give tips on how to
lihood to recommend a friend.
maintain cameras and protect films and
Ask ‘How well are we measuring engagement
photos, and invite customers to send their
amongst different online audiences?’ and then close
best photos in for a competition).
the loop by using the data to identify the advocates
●● A travel company can give you a ‘virtual and deliver more relevant communications.
friend’ who can advise you and tailor your
holiday experience, or show 360-degree
photographs that allow you to ‘walk
Engaged customers = customer engagement =
through’ your holiday location.
stronger brands.
●● Cosmetic companies offer online games,
screensavers, viral emails, video clips and
soundtracks with tips to help customers get
the most out of their products.
Brand expansion/strategy
●● Food companies offer printable recipes,
video demonstrations and discussion forums, Brand extensions and the brand
as well as ‘ask the expert’ sessions.
portfolio
●● Chocolate companies generate ideas for
There are few single-product companies. Many
desserts (using the chocolates), dinner party
companies start up that way, but they soon de-
games and designs for table layouts.
velop other products as they grow and markets
fragment. A product line is a string of products
Create customer engagement grouped together for marketing or technical rea-
sons. Guinness started as a single-product com-
If marketers understand customer engagement bet- pany. Since then it has extended the product line to
ter than their competitors, then this helps them de- fill market needs as they emerged. It has also ex-
velop brand loyalty. How else can the ideal panded beyond the basic product line of beers to
customer engage with the brand? The ideal cus- offer whiskeys, soft drinks and more: different
tomer, or most valuable customer, does not have to lines of product.
be someone who buys a lot. They could be an influ- Add all the product lines together and you get
encer who may be a small irregular buyer who the product mix. Finding the right product mix is a
posts ratings and reviews. The reviews can influ- subtle balancing act. How far should a product line
ence another 100 people. ‘Engaged customers’ are be extended? How many different lines should be in
probably going to become brand zealots if they are the product group?
kept engaged.
Marketers can easily monitor the type, quantity
and frequency of blog posts, forum discussions, Advantages of brand expansion
reviews, profile updates, etc. This identifies oppor- ‘Brand (or line) extension is attractive but danger-
tunities and also acts as an early warning system to ous’ (Smith, 2003). There are advantages and disad-
any possible future problems. Consider targeting vantages lurking behind this apparently easy
brand evangelists rather than just purchasers. option. Extending an existing brand name on to a
 60 Part One | Communications Background and Theories

new product is one of many different ways of in-

creasing sales. Some feel that it reduces the risk of Failed extensions
launching an unknown brand. Using a recognized
brand name on a new product can give the new ‘Unfortunately, the hard truth is that many brand
product immediate presence in the marketplace –
extensions don’t work. Each brand has its own
customers will recognize, trust and try the new
special positioning. The extension won’t succeed
product more easily. This also creates savings in ad-
if it works against that. Any time a brand is
vertising and other promotions, so as the original
extended, its focus gets blurred in the minds of
product matures the extended brand ensures some
consumers. When the image is unclear, the
continuity and survival of the brand in the longer
run. Generally, brand extensions work if the new original promise is broken. When the promise is
product actually satisfies a real relevant need broken, the brand loses value and me.’
amongst customers and they like the idea. Ultimately Jacobson and Knapp (2008)
the new product should enhance the promise of the
original brand as opposed to cannibalizing it.
Careful consideration must be given to what hap-
pens if the extension fails. In a sense, product deletion should be a standard
Brand extension is a tempting option, as it uses activity, as companies constantly replace old prod-
the same sales team with the same distribution chan- ucts with improved ones. Some corporations like to
nels and often the same customers. It can also fill balance the product portfolio by ensuring they have
any unoccupied positions in the market, which a minimum of 30 per cent of ‘new products’ (prod-
might otherwise invite unwanted competitors. ucts developed in the last five years). Phasing out
Finally, a full product line builds the image of the and deleting products that have had their day is a
complete player, a big player, which in turn suggests delicate task. They have to be withdrawn carefully
reliability. and gracefully without damaging employee morale
or upsetting small groups of customers who may
still want spare parts or simply to continue consum-
Disadvantages of brand extension ing the product. As has been mentioned, one of the
But there are disadvantages lurking behind brand world’s best-marketed companies, Unilever, chopped
and line extensions. A low-quality product will its product portfolio from 1,600 to 400 in 2004.
damage the original brand’s reputation. A really Although criticized by some, the Boston Matrix
good new product can also cannibalize the original can help to balance the product portfolio, as it helps
product if the new product merely takes sales away managers identify which products generate surplus
from the old one. When contemplating brand exten- cash, which need extra marketing resources to sup-
sion, ask how much of the ‘extra sales’ actually re- port them and which need a lot of resources. ‘Cash
place existing sales of the original product. Constant cows’ (high market share in a low-growth market)
brand extensions may dilute the brand’s strength generate the surplus cash that in turn funds other
and its unique positioning, particularly if the exten- products, such as the high-growth ‘star’ products.
sions are not appropriate to the central brand. Low-growth (and low-market-share) ‘dogs’ often
When easyJet extended into easyInternetcafes it absorb a disproportionate amount of management
was reported to have lost £75 million (Taylor, resources. This analysis is from a cash-flow perspec-
2004), whereas easyJet Holidays appears to be a tive as opposed to that of the customers.
better fit. Although Virgin is another successful Riezebos (2003), on the other hand, analysed a
company and has enjoyed a variety of brand exten- brand portfolio from a competitor perspective.
sions, some of them have failed, including Virgin Different types of brands have different roles to
Vodka, Virgin Jeans, Virgin Brides, Virgin Balloons play within the brand portfolio. Bastion brands are
and Virgin Cosmetics. the key brands, usually the most profitable, with a
large market share. Their success attracts competi-
tors. Some companies expand their portfolios to
protect their brands by introducing ‘flanker brands’
and ‘fighter brands’. The flanker brand may be
 2 | Branding 61

priced differently or have a different set of attrib- the brand bullies (2000) articulated a certain kind
utes and tends to fend off any new competitors that of brand frustration where global brands represent,
are considering occupying that space. Fighter brands in her words, ‘a fascist state where we all salute the
are lower priced and compete with existing or logo and have little opportunity for criticism
potential competitors trying to occupy lower price because our newspapers, TV stations, internet serv-
points (the quality perceptions need to be shifted ers, street and retail spaces are all controlled by
downwards so as not to dilute the bastion brand). multinational corporate interests’. The ubiquitous
Many organizations prefer to lose some premium- global brand bullies effectively reduce the colourful
priced brand sales to an internal less profitable variety of choice and force a grey cultural homoge-
brand than to lose the sales to competitors. However, neity on customers instead of an array of interesting
today many companies of a certain size reject local alternatives. Even the Economist magazine
brands that will not become star performers, as they back in 2001 pointed the finger at today’s global
prefer to direct their limited resources to major win- businesses: ‘So companies are switching from pro-
ners. The tasks of product extinction and extension ducing products to marketing aspirations, images
require rigorous analysis of customers, competitors and lifestyles. They are trying to become weightless,
and overall trends. The marketer’s task of being the shedding physical assets by shifting production
guardian of the brand is a challenging one. from their own factories in the first world to other
people’s in the third.’
This provides all the more reason for brands and
the businesses behind them to behave ethically and
Brand summary and the to demonstrate publicly their social responsibility.
This includes environmental policies (and actions),
challenges ahead supporting charitable endeavours and local com-
munities, racial integration, not supplying or con-
Twenty-first century brands face new challenges, in- tributing to military regimes and political donations.
cluding hyper-competitive markets, unknown com- And, of course, there are the brand haters who
petitors (category-less and borderless), shortened create anti-brand websites dedicated to venting their
product lifecycles, more demanding, time-pressed frustrations and anger about certain brands, usually
and information-fatigued customers, media frag- resulting from alleged poor customer service, some-
mentation and message clutter, anti-brand pressure times even without consuming the brand but simply
groups, own brands and two other internal chal- because they don’t like it. As Dell has demonstrated
lenges – short-termism and fear of the boardroom. by listening to these criticisms, addressing the rea-
sonable issues and fixing them can strengthen a
brand and grow its relations and sales.
The rise of the anti-brand
A direct challenge to brands is the ‘ethical anti-
branders’, who attack premium-priced branded
training shoes (allegedly made in sweatshops in the
Do brands reflect our own instability?
Far East).
Various anti-brand feelings have been aroused by ‘Everyone needs a sense of purpose. To have a
many publications, ranging from Vance Packard’s cause, to feel that we belong and are admired.
1957 classic The Hidden Persuaders to Eric Brands promise to fill the voids between who we
Schlosser’s Fast Food Nation (2002) to Robert are and what we could become. But by putting
Frank’s Luxury Fever (2000) to The World Is Not so much belief on which brand is in today but
For Sale (2001) by José Bové (a French farmer who out tomorrow, we reflect our own instability.
is best known for vandalizing a McDonald’s restau- People increasingly judge others by what they
rant) and François Dufour. Brands are vulnerable to have, rather than who they are. How much a
a rising tide of antipathy to branding and marketing. person is esteemed is measured by the boots
The demise of major corporations like Enron has they wear, rather than the individual they are.’
further fuelled a cynicism towards big business. Gabay (2012)
However, Naomi Klein’s No Logo: Taking aim at
 62 Part One | Communications Background and Theories

Own brands Brands that do not have crystal clear social media
guidelines will find that social media can destroy
As major retailers flex their muscles and demand the very essence of their own business – the brand
that suppliers also create and deliver the retailers’ and how it helps its customers.
own brand in almost every category, it is easy to
understand why brand owners are concerned, par-
ticularly when they have to deliver a constantly The experience divide and
high-quality own brand also. Many retailers’ brands
are so strong that customers are happy to give them
leveraging advocacy
more and more share of their wallets. Look at What you say your brand is and what others may
Tesco: what can’t they sell to customers now those share are different. This, if ignored, can destroy a
customers trust the brand to deliver a consistent brand. We need to create customer experiences that
quality at reasonable prices? firstly they want and secondly they want to share.
The brands do, however, have a source of con- As Solis (2015) says, ‘If we’re not creating the types
tinual competitive advantage, and that is continu- of experiences we want people to have and share,
ous innovation. Although own brands are getting we’re simply reacting to them.’ And this is missing
smarter and smarter, Saatchi & Saatchi CEO Kevin the social media opportunity.
Roberts (2009) says:
Positive experiences feel good to express
The game has changed. Own labels deliver outwardly, too, though we’re not innately inclined
quality. They are as strong in many categories as to share them. NB It’s in the business’s best
traditional consumer brands. But will they deliver interest for consumers to share these positive
innovation? No. This is where real marketing experiences, because we know that they define the
comes into play. A big retailer cannot possibly ultimate moment of truth – the moment when the
develop the innovation in a category that a P&G, consumer enters into a partnership with the brand.
Unilever or a Nestlé can. So as long as those
Solis suggests that your strategy for loyalty and ad-
companies continue to keep their core, their focus
vocacy determines the future of the brand. So do
on innovation, they will continue to develop new
value in this reclaimed world. you have a system to reward advocates?

The rise of people brands, humanity and

‘Do you have a system to reward advocates?…
product switching
particularly when they define the “ultimate
moment of truth” – the moment when the
‘This evolution has been guiding our society back
consumer enters into a partnership with the
into one that requires a more personal approach. It
brand.’
is time for a reminder about our humanity.
Solis (2015)
Comparisons are easier to make and product
switching happens faster than ever. Customers are
ready to move on unless they have one thing – an
undying relationship with a person or people at
your brand who made them feel uniquely special.’ Short-term sales vs long-term
Kramer (2014)
brand building
Brands are not for the short term. Think of them
like people. They are strategic assets that need to be
Social media nurtured and grown over the long term. After that,
Each tweet you send is either building or destroying relationships can last a lifetime and beyond, as some
your brand. The tone, content and timing of a tweet brands are handed down from generation to gener-
impacts how an audience perceives you. The same ation (if the brands manage to stay relevant to the
applies to Facebook, Instagram, Pinterest and so on. needs of the next generation). There is a constant
 2 | Branding 63

tension between sales and marketing and, for that value of brands but do not understand how they are
matter, finance and marketing. Quarterly results- built and sustained or, in particular, how marketing
driven businesses require quarterly results, which makes this happen.
usually means seeing quarterly growth in sales and The irony of it all is that, now that brands appear
profits. Brands do not deliver quick returns, particu- on the balance sheet, they are recognized as a finan-
larly new and repositioned brands. They take time cial asset of the business, yet budgets required to
to research and develop. They take time to build grow them are considered to be ‘expenses rather
relationships. Although some brands have devel- than investments’ (Ohnemus, 2009).
oped in one or two years, these are exceptional. When Harvard’s Madden et al (2002) suggested
Certainly brands emerging within a quarter is, even that ‘the demonstration of brand value to stock-
today, highly unlikely. holders would prove most useful in reconceptualiz-
The impatience of the chief financial officer ing marketing from expense to investment’, an
(CFO) or the board or the shareholders may jeop- opportunity knocked for marketers. But the linger-
ardize the long-term work of the brand builder. This ing, unanswered question remains to this day: ‘Do
also manifests itself in the advertising debate: brand-building investments really pay off? Lacking
whether a campaign is sales or brand building. Ad conclusive evidence concerning branding and the
campaigns can of course do either, but rarely can do bottom line, brand “investments” remain “expenses”
both really well. One usually takes priority. Yes, and the promise of the brand remains unfulfilled.’
campaigns can deliver sales and grow a brand, but Marketers must learn the language of finance
each objective has different priorities. Brands are and apply it to marketing. Marketing language and
for the long term and can secure higher sales, higher jargon have been charged as ‘inaccessible and dis-
prices and higher profits. These are some of the fac- connected from the financial metrics by which firms
tors that can bring the marketer back into the are ultimately steered’ (Davis, 2001). If there is no
boardroom. common language, there is no communication and
with that comes no understanding of marketing’s
crucial role in brand building.
Brands – the bridge between
marketing, finance and the Marketers and the language
boardroom of finance
Marketers may have slipped from being the poten-
So here it is. International Organization for Standard­
tial heroes of the boardroom back in the 1980s
ization (ISO) standard ISO 10668 on monetary
when brands were suddenly touted as a ‘surefire
brand valuation requires legal, market research and
means of differentiation in the face of increased
financial analysis must be completed in determining
competitive pressures and rampant product prolif-
a brand’s value. Since 2004, International Financial
eration activities. They were secret weapons of
Reporting Standard (IFRS) 3 has required that, on
sorts: legally-protectable assets that brought unri-
acquisition of a brand, the purchase price paid must
valled powers to the firms that developed them’
be allocated to the individual assets acquired for in-
(Madden et al, 2002).
clusion in the balance sheet of the acquirer at their
A study revealed that shareholders should insist
fair values. ‘The requirement to conduct brand
on systematic performance feedback on branding. It
valua­tions for financial compliance purposes has
actually suggested systematic performance feedback
forced CFOs and financial regulators to take brand
on all key items in the balance sheet including
valuation seriously’ (Haigh, 2011).
branding. However, it suggested that very few com-
Prior to 1988, brand values were never shown in
panies had this optimal balance between financial
balance sheets. In fact in 1988 Hovis chose to put a
performance and branding (Ohnemus, 2009). The
financial value on its brand and then add it in the
report went on to say that ‘the board of directors
balance sheet as part of a takeover defence. This
should systematically assess and monitor the stra­
triggered a major debate that has been running ever
tegic branding position of their company and how
since. Today, there are several approaches to valuing
their branding investments are performing against
a brand, including the market approach, the cost
key competitors’. Board directors acknowledge the
approach and the income approach (Roberts, 2011).
 64 Part One | Communications Background and Theories

Brands have become big business and managing As brands are assets that reflect passion and people’s
them has become a branch of high finance (Haigh, needs, it is almost inevitable that brands, like
2011). If managers can show that marketing will Coca-Cola and Starbucks, become ‘politically
­
increase returns to shareholders, marketing will ­sensitive’. A brand’s values (and today its political
obtain a much more pre-eminent role in the board- and ethical statements) are an intrinsic part of what,
rooms of industry. The discipline itself will also why and how an organization does its business. So
obtain more respect for its rigour and direction. transparency, and having a crystal clear point of
Marketers have much to do. But, with some work, view about values is sometimes inseparable from
the doors of the boardroom will be flung wide open political ­statements.
so they can secure funds to develop great brands and, As politics polarize around the world, will we see
in return, deliver dividends back to shareholders. more brands declaring their point of view? Are we
witnessing the rise of the political brand?
Politics and brands: Are brands
becoming political?
Starbucks, Coca-Cola and other major brands repudi- Conclusion
ated President Trump’s executive order banning
­immigration from seven predominantly Muslim coun- Brands are being challenged. However, they are
tries. Uber’s Chief Executive stepped down from Mr powerful assets that generate many benefits to
Trump’s business advisory group following o ­ bjections both an organization and its customers.
from Uber staff. 200,000 Uber customers deleted their Surprisingly, many brands allow themselves to self-
accounts while Uber’s competitors seized the opportu- destruct with sloppy service and inconsistent brand
nity to attack. The New York Taxi Workers Alliance applications.
alerted the news media to Uber’s CEO, Travis Brand components include name, logo, colours,
Kalanick’s, links with President Trump and organized positioning, promise, personality, values, associa-
a protest at Uber’s New York office while Lyft, an- tion and experience. Brand creation is a process
other taxi service, promised a $1 million donation to that starts with a brief and goes through concept
the American Civil Liberties Union. Its app simultane- generation, concept development and roll-out.
ously shot towards the top of the download charts Copious research is carried out before and after
(Isaac, 2017). Meanwhile, the retailer Nordstrom each step.
dropped President Trump’s daughter’s fashion line Brand maintenance focuses on the customer
after public boycotts (BBC Newsbeat, 2017). experience, extending it online and considering cus-
Even America’s own global giant brand, Coca- tomer engagement as a way to move customers up
Cola, became political when its CEO, Muhtar Kent, a ladder of engagement towards becoming brand
criticized President Trump’s immigration ban, which zealots. Experiential marketing is also considered.
was contrary to the values of global beverage maker, Finally, brand expansion/strategy has both advan-
The Coca-Cola Co. Kent said, ‘Coca-Cola is resolute tages and disadvantages. The strategic corporate
in its commitment to diversity, fairness and inclu- brand is also explored.
sion, and we do not support this travel ban or any
policy that is contrary to our core values and beliefs’
(Saunders, 2017). Coca-Cola employs 700,000 peo- Strong brands survive through careful
ple in 200 countries. management

It is no accident that these brands have been

‘“Americans now are using brands as a around for over 100 years: Bass, Coke, Kellogg’s
mechanism to fight with each other. They’re Corn Flakes, Guinness, Pears Soap.
becoming the weapons in the social war” says
Thomas Ordahl, chief strategy officer at Landor
branding consultancy.’ You can see how UEFA go about managing and up-
grading the corporate identity (corporate brand) in
Whipp and Bond (2017)
the following case study.
 2 | Branding 65

C A S E S T U DY UEFA brand identity refresh

F I G U R E 2.8 The UEFA logo and trophy

Situation analysis developments include virtual reality (eg the BBC

offering its free VR app for World Cup 2018), perhaps
UEFA’s European Champions League is one of the world’s
AR and any other developments that can enhance the
most prestigious sporting events as the top football teams
CX both inside and outside the stadium, and, around
from across Europe compete with each other to win this
the rest of the world.
coveted prize.
●● Stakeholders: The European Champions League has
●● Hyper-competition: Today, football competes with
many stakeholders (UEFA internal teams, sponsors,
other sports and other forms of entertainment. In
broadcasters, licensees, fans, clubs and industry
addition to hyper-competition in an already cluttered
experts).
global marketplace, there are other trends that have a
significant impact on the marketplace. ●● Three-year review cycle: All markets continually move
away from their suppliers. To stay close to this
●● Digital developments: Include a growing variety of
continually changing marketplace, UEFA reviews its
digital devices including mobile, tablets, TVs, cinema
brand identity every three years in sync with the
screens and whatever IoT will bring. Other digital
commercial cycle of broadcast and sponsorship rights.
 66 Part One | Communications Background and Theories

F I G U R E 2.9 Teams entering the stadium

Objectives ●● Brand values: Excitement – exhilarating events that

inspire and engage, leadership being the benchmark in
Create a new brand identity that:
sport, leading by examples of excellence, striving for
●● supports the repositioning of the European Champions the highest standards in everything we do.
League from ‘European sports’ to ‘global
●● Brand personality: Prestigious, premium,
entertainment’;
sophisticated, inspiring, emotive and captivating.
●● enhances the prestige of one of the world’s biggest
●● Brand vision: To be the benchmark global sport
sporting competitions;
competition.
●● helps to keep fans (and viewers) engaged in a
●● Brand mission: To give clubs and their fans the best
distracting and cluttered world;
competition experience.
●● adapts to the fast-changing digital tech world.
●● Brand essence: The best of the best on the ultimate
stage.
Strategy ●● Creative concept: Highlighting the moments that make
the ultimate stage.
Create a flexible brand identity that can be used by different
stakeholders on different platforms while helping to engage
customers/audiences as well as strengthening and embed- Tactics
ding the European Champions League’s repositioning in a
global entertainment marketplace. The actual process or steps to create or update a brand
Here are the brand values, brand personality, brand vi- identity are described in the ‘Actions’ section, which is
sion, brand mission and brand essence that are strategi- about getting things done and the steps that need to be
cally part of the whole brand experience. taken to make this happen. Essentially, after issuing a brief
 2 | Branding 67

F I G U R E 2.10 The stadium and logo

to four pre-scanned agencies, the best concept is chosen plays in football. The UEFA Champions League has expand-
and then ‘tweaked’ to improve it even further. Here is the ed to become part of the global entertainment environment,
winning concept. rather than just solely being a sports event.

The winning concept Remain relevant and engaging for fans

The UEFA Champions League brand for the 2018/19 season The refined brand identity has been created to support digital,
delivers a vibrant new look, based on a concept called mobile and social media platforms (Figure 2.12). The new as-
‘Highlighting moments that make the ultimate stage’ sets allow for an easier, scalable brand integration (from soft
(Figure 2.10). to full branding) on smaller surfaces and mobile devices.
The connected stars from the ‘starball’ in the UEFA
Champions League logo are the centrepiece of this new Cater for digital requirements
brand identity (Figure 2.11). The concept captures the iconic
The level of detail on the ‘ultimate stage’ stadium and
moments of extraordinary feats of skill and ability that make
‘starball’ visuals has been enhanced to cater for a richer
UEFA Champions League match nights so special.
ultra-high-definition television experience. This will
The new identity visually articulates the brand and ex-
ensure that the brand remains relevant and engaging for
presses the refined UEFA Champions League brand posi-
fans and will enable them to interact with it, as technology
tioning. It consolidates the core brand values that the com-
and content platforms develop.
petition is known for, while highlighting the leading role it
 68 Part One | Communications Background and Theories

F I G U R E 2.11 Starball and logo

The starball icon (is part of the logo) system has been introduced to give commercial partners
the opportunity to tailor the brand identity to their own
The starball icon, together with the logotype, is the UEFA
needs, while ensuring consistency of the look and feel
Champions League logo (Figure 2.11). The starball icon forms
across multiple touchpoints.
part of the logo. The basic shape of the starball featured in
The key visuals in Figure 2.13 demonstrate the subtle dif-
the logo and used as an individual icon has remained the
ferences between before and after the brand identity re-
same. However, the new identity uses a 3D version of the
fresh.
starball icon in its key visuals (both stills and motion).
More flexible branding
Boldest change in years
The branding has been designed to be more flexible, while
Compared with previous brand identity updates, the new
building on established elements such as the starball, the
design is a greater leap forward. While the ‘starball’ visual
stadium and the trophy. The blue colour palette deriving
gains importance in the new identity, the distinct and suc-
from UEFA Champions League match nights has been en-
cessful ‘ultimate stage’ arena still features in the branding
riched with new accent colours – magenta and cyan – to
package. This provides an extended range of key visuals
support the fresher look.
that can be used for communication purposes, both inter-
nally as well as by UEFA’s partners.
Actions
New, more flexible colour co-branding system A brand identity review team was created using all stake-
holders. Four top brand identity agencies were vetted and
The new identity has been designed to support a large
selected to pitch for the refreshed brand identity. The win-
range of stakeholders, such as sponsors, broadcasters, li-
ning brand identity concept (and agency) was selected.
censees and clubs. A new, more flexible colour ­co-branding
F I G U R E 2.12 Brand guidelines

5-PILLAR BRANDING APPROA CH

OFFICIAL MATCH INFO

BRANDING
2
PHOTO-CONTENT
BRANDING
3
PHOTOGRAPHY SOFT
BRANDING
4
ARTISTIC
BRANDING
5
PHOTOGRAPHY WITHOUT
BRANDING

F I X TUR E S

Q&A
BAYERN MUNICH
VS

PARIS ST GERMAIN

TUE 14 MAR, 18:55 FACEBOOK LIVE EVENT

WED 7PM
VILL ARRE AL
VS
#ASKNEYMAR
ANDERLECHT

TUE 14 MAR, 18:55

• Entirely branded (full screen) • Frames, placeholders for • Photo colour, keying, contrast • Artistic illustrations, less • No graphic treatment
• In line with TV graphics design photos and videos treatment (and/or) restricted bold visual • Purely editorial photography
• Mobile ready (increased font • Partially branded • Watermark, pattern branding expressions • Still in line with overall brand
size, less content) • Flexible approach split photo • Feature frame, sign-off device • Red-thread in style, graphic positioning
vs branding needed (1/3, 1/2, elements
etc) • Feature frame, sign-off device

FULLY BRANDED UNBRANDED

69
70 Part One | Communications Background and Theories

F I G U R E 2.1 3 UEFA design changes, 2018

Before: 2015–18 visuals After: 2018–21 visuals

(a) Apex (d) Apex

(b) Side view (e) Side view

(c) Trophy (f) Trophy

SOURCE: Reproduced by kind permission of UEFA

 2 | Branding 71

The brand identity concept was then refined to ensure it Executing with excellence
has maximum impact as well as supporting the reposition-
To help execute the roll-out of the refreshed brand identity,
ing, enabling more customer engagement and also allowing
a brand manual was developed giving very specific guid-
the brand to be used by emerging digital trends (including
ance for media and other authorized users of the brand
digital, mobile and social media platforms).
identity, to ensure correct and consistent use of the brand
identity.
Development timeline
The 52-page brand manual (Figure 2.14) gives clear
The project for the 2018–21 rebranding was launched in guidance for all forms of the brand identity usage for
September 2015 and involved multiple stakeholder reviews stakeholders’ use in TV studios, retailer’s point of sale, so-
(UEFA internal, sponsors, broadcasters, licensees, clubs cial media, including how official partners can incorporate
and industry experts) to assess strength, weaknesses, op- products and brand colours with selected UEFA Champions
portunities and threats of the branding. League assets. When the world is watching, every detail
The findings were briefed to four pre-scanned creative matters. Using the brand assets effectively is vital to re-
agencies that presented two concepts each. Two agencies maining consistent and making the brand instantly recog-
made it to the final round where the winning concept nizable.
‘Highlighting moments that make the ultimate stage’ was The manual also includes hard and soft usage (Figure 2.12
chosen. The winning agency was asked to develop and im- shows the five-pillar branding approach previously men-
plement the updated brand identity. The unsuccessful tioned). The brand manual addresses the surprisingly wide
agencies were all paid rejection fees. array of potential use of UEFA assets. For example, the use
After various concept enhancements, development of of the anthem (music) is supported with links to 44 different
the new brand started in June 2017 and it was launched in types of audio files required for different usage by broad-
June 2018. casters and stadium managers.

F I G U R E 2.14 The 52-page brand manual helps to ensure consistent brand usage
 72 Part One | Communications Background and Theories

Control fans and stakeholders across new technologies and

platforms.’
In addition to formally tracking reaction to the new identity,
key stakeholders were invited to give feedback. Here is a (Guy-Laurent Epstein, Marketing Director, UEFA Events
selection of their reactions. SA)

The most iconic of sporting identities: The new brand identity will continue to afford the UEFA
Champions League a unique branding that will be applied
‘Confident, contemporary and courageous. With
across a wide range of promotional applications, with the
refined elegance and a vibrant injection of colour, the
objective of further enhancing the prestige of one of the
UEFA Champions League brand upholds its position as
world's biggest sporting competitions.
possibly the most iconic of sporting identities.’
(Mark Hyde, Head of Design, BT Sport) Resources
Fresh yet premium:
●● Men and women: Led by the director of marketing,
‘The branding is fresh and appealing. It gives the
other UEFA marketing staff liaised with the
competition a new, contemporary look while remaining
stakeholders and the agencies. UEFA have a marketing
premium.’
partner, TEAM Marketing AG, and the London-based
(Hans Erik Tuijt, Global Sponsorship Director, creative agency DesignStudio, who both helped to
Heineken) manage this brand identity programme.
Maximizes the opportunities to engage: ●● Money: Although budgets are confidential, UEFA did
‘The UEFA Champions League is a globally recognized pay rejection fees to the three unsuccessful agencies.
brand in football, sports and entertainment. This brand ●● Minutes: It took 33 months from start to finish (launch
refresh maximizes the opportunities to engage with and roll out the brand identity).

Key points from Chapter 2

●● Brands help customers and the organizations ●● There is a disciplined approach to the brand-
behind them. building process.
●● Branding is a strategic issue. ●● Brands, like any other asset, need to be
●● Branding can create competitive advantage. maintained and require resources.

References and further reading

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New York Bayley, S and Mavity, R (2008) Life’s a Pitch, Corgi
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brands, McKinsey Quarterly, 4 Newsbeat, 22 March
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finance to play a role in brand management, CFO: critique of corporate communications, Holt,
Rinehart and Winston, London
 2 | Branding 73

Bové, J and Dufour, F (2001) The World Is Not For [online] www.vistage.com (archived at https://
Sale, Verso Books, London perma.cc/34TX-GKS4)
Braun, T (2004) The Philosophy of Branding, Kogan Jenkins, N (1991) The Business of Image, Kogan
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Brown, D (2016) Purpose and passion: The pillars of Jones, B (2001) The Big Idea, HarperCollins, London
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(updated) [online] http://blogs.hbr.org/kanter/2009/07/
Brun-Jensen, P (2014) Next-gen social analytics are the-downsides-of-branding.html (archived at
transforming digital marketing, Adweek, 22 https://perma.cc/2MCH-9D26)
September Kapferer, J (2008) The New Strategic Brand
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Excellence, 4th edn, Routledge, London Klein, N (2000) No Logo: Taking aim at the brand
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 75

03
Customer relationship
management
LEARNING OBJECTIVES
By the end of this chapter you will be able to:
●● discuss the importance of relationship marketing and how CRM creates competitive
advantage;
●● see how marketing automation generates leads for the CRM system;
●● see how social and CRM are a natural fit;
●● outline the CRM planning process;
●● understand the benefits and resources required by CRM;
●● identify and avoid the classic CRM errors;
●● present the case of long-term brand building vs short-term sales growth.

Introduction to CRM 76 Customer lifecycle marketing 84

What is CRM? 76 CRM architecture 85
What is marketing automation? 78 Human architecture 85
What is the difference between CRM and MA? 78 CRM processes 86
What are service bots? 79 Catch the at-risk customer defectors 89
What is social CRM? 79 Personalization 90
What is CRM dialogue? 79 Closed loop reporting 93
The power of CRM 79 Databases 93
Boost sales 79 Data 95
Reduce costs 80 Managing the database 96
Boost profits 80 Profiling 97
Solve customer problems early 80 GDPR compliance 101
Create competitive advantage 80 CRM implementation and agile planning 101
Create assets 80 Agile planning 101
What causes CRM failure? 81 Writing a CRM brief 102
Poor CRM process skills 81 Project leader 103
Poor project management skills 82 Costs and timescales 103
Poor internal marketing 82 Measuring CRM success 104
Forgetting customer needs 82 Internal marketing 105
Forgetting sales team needs 82 CRM summary and challenges 106
Interdepartmental squabbles 83 Key points from Chapter 107
IT hijackers 83
References and further reading 107
What drives CRM success? 83
CRM culture 84 Further information 109
 76 Part One | Communications Background and Theories

fans’ comments are ignored;

Introduction to CRM ●●

●● immediate response is expected but not

CRM presents a golden opportunity to create com- delivered;
petitive advantage by listening to customers, serving ●● satisfying customers is simply not enough to
their needs better than ever before, improving the keep them.
overall CX and, in summary, adding value to the CX.
Adapted from Chaffey and Smith (2017)
Your marketing strategy should, among other
things, highlight which has priority: customer acqui-
sition, or customer retention. CRM is primarily What is CRM?
about helping prospects to become customers and
then nurturing customers into lifetime customers. Some call it customer relationship management; oth-
ers call it customer experience management (CEM);
others call it customer managed relationships (CMR).
Regardless of its name, it is a strategic decision to
A customer’s LTV (lifetime value) might be worth invest in and develop your customer relationship
sales of, say, 20 cars or 20 mobile phones (during process. This includes sales/order f­ulfilment, sales/
the customer’s life). Obviously, this is worth a lot order processing, returns and ­overall service manage-
ment. Do remember that customer retention is differ-
more than selling one car or one mobile and hence
ent to customer acquisition as it requires different
why customer retention is deemed to be, on
messages, incentives and channels; in fact, a different
average, at least six times more profitable than
communications mix. Given that it is possibly six
customer acquisition. It is therefore, generally
times more profitable to sell to an existing customer
speaking, worth investing in customer retention.
than to a new customer, it follows that the decision to
invest in CRM and customer retention, in particular,
is a relatively easy strategic choice. What may be
more challenging is choosing and executing a ­suitable
So, deciding how to split resources between customer CRM system that connects to all customer touch-
acquisition and customer retention is a s­trategic points, both online and offline. Contacting customers
decision that comes from your overall marketing
­ pre, during and post sales with relevant, tempting
strategy. Acquisition is generated by driving traffic to and timely offers, as well as responding to customers’
the website and using marketing automation systems direct and indirect comments (on social platforms)
to identify and deliver sales leads to the sales teams requires carefully planned systems. Some of this may
by delivering the prospect customer’s information be automated. We’ll look at this later.
into the CRM system for the sales team to convert to There is a direct overlap between nurturing cus-
a customer. After that, customer retention can be tomer relationships and nurturing a brand (see
managed via a sales CRM system. Sales and service p 35), and growing the longer-term profitability of
teams can help customers throughout the customers’ the business. Carefully managed brands help cus-
lifetime with exactly the right information at exactly tomers to develop good relationships with those
the right time on exactly the right platform. brands. CRM is a set of processes, linked to a data-
Marketers can learn to optimize their timely (and rel- base, that helps an organization keep in contact
evant) offers which, effectively, block out competi- with customers and deal with their queries, com-
tion. Ultimately, keep nurturing the customer plaints, purchases, suggestions and post-purchase
relationship throughout the customer lifetime jour- issues as well as seeking to nurture loyal customers
ney. Customer retention depends on excellent cus- and advocates. Today, this involves multiple chan-
tomer relationship ­management. nels, particularly social media. Hence the term:
Better CRM is required if: social CRM.
●● customers receive irrelevant, untimely emails
they mark as spam; Customer relationships
●● customer emails or messages are left Think about how personal relationships grow
unanswered for days; stronger and stronger: listening, understanding,
 3 | Customer Relationship Management 77

r­esponding and communicating. Understanding

what is important and what makes a difference; de-
‘Your name is the most important sound in
livering it regularly; never breaking the promise; oc- the world’
casionally surprising or even delighting the other
person; caring about the person; helping the person Remembering names and needs (and satisfying
when things go wrong; always being there for them. them) helps to build customer relationships. This
The same applies to customer relationships. It is not applies to a small business with 50 customers or a
rocket science. bigger business with 50 million customers.
Even remembering someone’s name makes a dif-
ference. People generally like it when their names
are remembered, particularly when their prefer-
A system is required, whether automated or man-
ences and needs are also remembered. How nice is
ual. Securing loyalty today is a never-ending process
it when a waiter or receptionist remembers your
requiring outstanding CRM and ongoing customer
name?
engagement.

Never sell to a stranger 50 per cent of FTSE 100 did not know who
their customers were
‘Think of the old corner shop. If the shopkeeper
ordered a new type of pickle, he wouldn’t They could not profile their own customers, even
expect strangers to flock in and buy it. He’d though they had the customer data collected and
recommend it to his regular pickle buyers and to safely stored (MORI, 2003). We thought this was
people buying cheese and pork. You wouldn’t crazy but has it improved since?
call that hard sell. You’d call it personal service,
based on the shopkeeper remembering the
preferences of individual customers and using
this knowledge to anticipate their needs. No Rewarding customers
matter what the size and character of your A lot of CRM is about serving customers properly
marketplace, direct marketing now lets you and occasionally rewarding them, identifying advo-
offer that personal service to every customer.’ cates and regularly rewarding them in a carefully
Young (nd) planned process, and, finally, identifying potential
defectors and somehow stopping them from leaving
(if they are worth keeping). Not all customers are
equal. Some are ideal and some you lose money on.
Remembering names, needs Those ideal customers who buy a lot, recommend
you a lot and give useful feedback, deserve to be
and profiles rewarded. After all, they generate six times more
Remembering a customer’s particular needs and profit than new customers and they spread aware-
providing the right response is rarely the result of ness and positive attitudes, so why wouldn’t you
guesswork. In the case of a company with a small identify them, contact them and surprise them, just
number of customers, it requires a good memory, like when Canadian bank, TD, decided to ‘wow’
good interpretive skills and attention to detail. In the their customers (Figure 3.1).
case of an organization with many hundreds, thou- TD Bank turned ATMs into Automated
sands, or sometimes millions of customers on a Thanking Machines™ to create some very special
­database, it is largely dependent on accurate analysis moments for a selection of their loyal customers
and building up valuable insights. As customers are across Canada. A simple thank you can change
more demanding and have more channels of com- someone’s day. A simple thank you with a highly
munication, organizations simply have to be able to relevant and valuable gift can help to create advo-
respond to them continuously, in a p ­ersonalized cates. Warning: the video captures some very emo-
way – wherever, whenever and h ­ owever required. tional customer reactions, which make many
viewers feel quite emotional too.
 78 Part One | Communications Background and Theories

FIGURE 3.1 ‘Customer retention isn’t

boring – here’s wow’! Watch the video on PR and doors. Mercedes-Benz claimed that Mr
Wang had “used the wrong fuel and had
Smith’s blog at http://prsmith.org/ subsequently refused a complimentary cleaning
customer-retention-isnt-boring- of the engine”.’
heres-wow/ August (2002)

What is marketing automation?

Marketing automation (MA) is all about auto-
mated communications: an email, a pop-up page, a
dynamic page swap showing more relevant m ­ aterial
to a particular visitor, or alerting a sales rep to call
a particular prospect – all triggered by a visitor’s
click behaviour (digital body language). Many pro-
SOURCE: TD Bank, Canada cesses can now be automated in very sophisticated
ways. MA’s primary goal is to acquire leads. MA
can improve campaign results, as it generates auto-
Angry and impatient customers matic tailored communications triggered by click
Customers know how to use social media and how behaviour and profiles. It is rules based (eg a visitor
to generate publicity if required. Meanwhile, re- who stays for over five minutes, views the product
member that even though customers are tired, have video, views prices and goes to the checkout but
no time, are angry, and are often simply wrong, we doesn’t buy will get a higher score and subse-
need to manage, now more than ever before, our quently receive a call or email from a salesperson
customer care to nurture lifetime relationships. offering help – assuming the visitor has clearly
opted-in and given their name, email and phone
number).
Angry customers become militant
complainers and smash Mercedes
What is the difference between
‘The chairman of a Chinese wildlife park CRM and MA?
destroyed his $60,000 SLK230 Mercedes sports
car as a protest because he was unhappy about MA is primarily used to develop a ‘marketing quali-
the warranty. With an astute understanding of fied lead’ (ie identify a prospect’s behaviour and
the media, he “intended to cause maximum then present the prospect/lead’s information to the
embarrassment” to Mercedes-Benz by inviting sales team) while CRM is primarily used to help
hundreds of spectators and journalists to watch prospects and customers, so they firstly convert
five workers with sticks smash the car. After prospects into customers, and secondly, nurture
customers into lifetime customers. MA helps to at-
that he attached ropes to the wreck and got
tract visitors (prospects) to a website (eg via an
several bulls to tow it through the city.
email), analyses their behaviour on the site, nurtures
Compensation negotiations resumed
a percentage of them into leads (marketing qualified
immediately but progressed too slowly, so Mr
leads or MQLs) via a follow-up auto email, or an
Wang (who wanted a full refund) asked a friend
auto dynamic page swap (serving the visitor with
to also destroy his Mercedes. The friend obliged even more relevant web pages). The MQLs can be
and drove his white S320 1,000 miles from delivered to a sales team for follow up. Once the
Beijing to Wuhan. In another public event, six lead is presented the data is transferred into the
men armed with batons smashed the windows CRM system so that the subsequent relationship
 3 | Customer Relationship Management 79

can be managed. CRM handles the entire customer

journey from the point that a marketing qualified Front end is fun, back end is business
lead is handed over to sales.
Marketers are reasonably good at developing
websites (front end) but we have to become
What are service bots? experts with the database and the CRM systems
CRM bots include chatbots like Facebook (back end) required to build continual success.
Messenger bots or any bots that auto answer cus- Roll-out requires an investment of the 3Ms (men
tomer service questions on a website. Other forms and women, money and minutes) into
of service bots are emerging such as Pizza Hut communication, motivation and training. Training
Japan’s new robot waiters and Hilton Hotels’ con- ensures all staff are fully familiar with the system,
cierge bot. how it works, how it can make their lives easier,
Pizza Hut’s waiter (designed by Softbank) takes how it will help the customer and how it will help
and delivers orders as well as carrying out ‘emo- the business.
tional sensing’ to detect whether a customer is
happy or not. The bot will then adjust the ordering
process.
The power of CRM
What is social CRM?
CRM builds a protective wall around customers, in
Firstly, social CRM is a strategic decision, similar the same way as a brand does. CRM enhances the
to the strategic decision to engage website visitors customers’ relationship with the brand. In fact,
and customers at different levels via the Ladder of CRM is part of the brand experience, therefore it is
Engagement. Essentially, social CRM integrates part of the brand. As the relationship strengthens,
social media conversations into your CRM sys- loyalty builds and gives you some protection from
tems. Ideally, it links all of these conversations losing customers to the constant onslaught of com-
with telephone calls, emails and online chats into petitive promotions. Relationships built on excel-
information to understand and serve customers lent service and occasional rewards are more
better. Social selling is different as ‘salespeople use enduring (see TD Bank video, Figure 3.1) than rela-
social media platforms to research, prospect, and tionships built on price discounts, which can dilute
network by sharing educational content and an- the perceived value of your brand.
swering questions… build relationships until pros-
pects are ready to buy’ (Minsky and Quesenberry,
2016). Boost sales
Good customer relations boost sales, as they simply
What is CRM dialogue? help customers to repeat-buy during their ‘customer
lifetime’, as well as buying other products and ser-
The CRM system should facilitate a dialogue, or a vices as they increase their share-of-wallet spend
two-way flow of information, between the cus- with the same trusted brand (customers still buy al-
tomer and the organization. Every time customers most any product or service from Tesco; think:
respond, they can be encouraged to give informa- Google Pay and Apple Wallet). Good relations also
tion about their needs and their situation (eg help to recruit new customers, as happy customers
whether they want to opt out or stay on the data- spread the word.
base, or whether they prefer email to a phone call). Excellent CRM systems can predict customer
Does the system prompt a three-way dialogue (‘tri- preferences and prompt customers with tempting
alogue’) by regularly sharing engaged customers’ offers when they are ready to buy or sometimes just
opinions, scores, ratings and reviews with other before they are ready to buy. Some of this is pur-
prospects? chase triggered, time triggered, event triggered or
 80 Part One | Communications Background and Theories

digital body language triggered (particular click poor product quality) rather than value creation, eg
behaviour can trigger an automated response in the adding value with helpful advice over the phone
form of a tailored web page, an email, a pop-up or (Mitchell, 2004). Fujitsu recently (2018) installed
an offline phone call). marketing automation that integrates with the
Equally, good CRM systems can identify poten- CRM system, which ensures visitors/prospects and
tial defectors (customers who are about to leave), customers receive increasingly relevant and helpful
pre-empt them and trigger win-back programmes information. The new MA system listens to and re-
for those who might otherwise have slipped through sponds to customers’ behaviour (click behaviour) in
the net. a quicker and more accurate manner. More later.

Reduce costs Create competitive advantage

Good CRM systems save money as the systems mon- Managing customer relationships is, ultimately,
itor customer feedback or issues before they grow critical to an organization’s future. Nurturing excel-
into a major problem. Take Federal Express’s 1–10– lent customer relationships can build a wall around
100 rule. They believe that for every pound your com- a business that most competitors struggle to break
pany might spend on preventing a quality problem, it through. A wall built on solid relationships can pro-
will spend 10 to inspect and correct the mistake after tect your customers from the constant waves of
it occurs. In the worst case, the quality failure goes competitors’ offers. This wall of trust and loyalty
unanswered or unnoticed until after your customer creates one form of competitive advantage.
has taken delivery. To fix the problem at this stage,
you probably pay about 100 times what you could
have paid to prevent it from happening at all. Your best defence

Boost profits A strong, loyal customer relationship is sometimes

the only thing that competition cannot replicate.
Marketing to both existing and referred customers
costs a lot less than marketing to new ones. As men-
tioned, estimates suggest that it is six times more
profitable to sell to existing customers, hence the Create assets
importance of customer retention versus customer
acquisition. Keeping existing customers happy and Customer relationships add value to the brand,
keeping in contact with them boosts sales in a more boost repeat sales, boost profits and ultimately
cost-efficient way. This boosts profits. boost the balance sheet assets as the financial value
of brands can be included as assets on the balance
sheet. Well-kept databases are also a valuable asset
1 per cent customer satisfaction = $500 but not yet appearing as assets on the balance sheet.
million
Brand assets
‘Over a quarter of a century ago IBM calculated Stronger relations create stronger brands. This builds
that each percentage point improvement in brand loyalty, which effectively builds a defensive
customer satisfaction translates into $500 wall around the customer, protecting them from the
million more revenue over five years.’ inevitable onslaught of hyper-competition as it ad-
Kirkpatrick (1992) vances across this ‘borderless and category-less’ mar-
ketplace (see Chapter 1). Good relations also boost
the brand image and consequently the brand value,
which is eventually reflected on the balance sheet.
Solve customer problems early
Of all calls to Fujitsu call centres (fifteen years ago), Database asset
50–70 per cent were for value restoration (fixing a CRM systems can create and maintain a ­good-quality
problem, such as late delivery, wrong delivery or database. This is significant and, ­although not shown
 3 | Customer Relationship Management 81

on the balance sheet, a very real asset to a company.

It gives you, if used correctly, a monopoly of your ‘In 2017, CIO magazine reported that around
own market share. It gives you access (assuming the one-third of all customer relationship
database includes fields for various contact channels management (CRM) projects fail. That was
from email to phone to social media). Some compa- actually an average of a dozen analyst reports.
nies quantify the value of their databases by calculat- The numbers ranged from 18 per cent to 69 per
ing lifetime sales value of customers and then cent. Those failures can mean a lot of things –
discount these revenues back to today’s net present over-budget, data integrity issues, technology
value. limitations, and so forth. But in my work with
clients, when I ask executives if the CRM
system is helping their business to grow, the
failure rate is closer to 90 per cent.’
A well-run CRM programme requires happy staff
Edinger (2018)
and effective integrated systems. Excellent CRM
makes customers happy. An excellent CX delivers
happier customers, which ultimately equals happy
shareholders. So here’s the happiness formula:
‘Avon calling’ cancelled
Happy staff (+ excellent CRM) = happy
customers = happy shareholders ‘Avon cancelled a $125 million investment in an
enterprise system that had taken four years of
effort to install. Basically, Avon salespeople
refused to use it because it was a usability
What causes CRM failure? nightmare. This should not be remotely
surprising. Many of the systems organizations
give to their employees are usability
Many organizations appear to have steadily got
worse at CRM because of the lack of a customer- monstrosities.’
driven culture (failed leadership and, specifically, McGovern (2014)
failed CRM leadership), poor CRM project man-
agement skills (in particular, scope creep, lack of
training and lack of staff motivation programmes), These are horrendous figures. Why do CRM sys-
poor CRM usability (eg an unintuitive, difficult-to- tems keep failing, despite being so important to a
use interface that forgets about the staff need for an business? Let’s explore a few possible reasons in-
easy-to-use, friendly, intuitive system) and, after all cluding: poor CRM process skills; poor project
of this, forgetting customer needs. management skills; poor internal marketing (moti-
Organizations are sitting on a customer service vation, training and communication); ignoring cus-
time bomb. Customers are more demanding, and tomers’ needs.
many marketers are not delivering. Yes, many
products have got better (eg rustproof cars and
hybrid cars), but service and CRM are generally Poor CRM process skills
not keeping up with these improvements
Customers are not happy. They are ready to swap Many CEOs and CMOs fail because they lack an
suppliers. They are bombarded with competitive understanding about the development and imple-
offers. They have less time but more demands. And mentation of customer-driven marketing.
marketers are not delivering, perhaps because they Many marketers have previously failed because
are not in control of their own CRM (IT may they have not mastered CRM systems, or managed
hijack the process). Regardless of the reasons, the to integrate the culture across the organization, nor
stats do not seem to get any better over time. helped the CEO to understand the importance of
 82 Part One | Communications Background and Theories

CRM. Assuming marketers do address these issues, needs. As highlighted in Digital Marketing Excellence
they have an opportunity to integrate the potential (Chaffey and Smith, 2017):
of marketing automation and content marketing
Old CRM systems were effectively automated
(more about these later) to create powerful new
selling systems that took little or no account
CRM systems that will nurture lifetime customers of what customers actually want. Danger bells
(many of whom may become advocates). should start ringing when an IT consultant offers
a front-end automated solution that cuts costs
and streamlines operations and processes because
Poor project management skills this does not necessarily make marketing more
Poor project management skills stop CRM systems effective.
from being implemented on time and within budget.
CRM projects are relatively large to any organiza-
tion. Failings like scope creep (constantly adding Forgetting sales team needs
extra and late requirements into the brief), unneces- Instead of saying how can this system help sales
sary and often poor system design, and an over- people to help, and therefore retain, existing cus-
dominant IT department also wreck potential CRM tomers, as well as convert prospects into customers,
programmes. One possible reason why so many ‘IT many CRM systems lose their focus and, for exam-
projects’ fail is because they are called ‘IT projects’! ple, end up being used as a management control
IT is a service that supports business functions, not system reporting on ‘progress, improve accuracy of
an end in itself. IT simply uses information technol- forecasts, provide visibility, predict project delivery
ogy processes to help run a business, which in turn dates, and provide a range of other business intelli-
is designed to help customers. gence – rather than creating improvement in the
sales process’ (Edinger, 2018).

Poor internal marketing

Many CRM projects lack buy-in from staff who Over-burdened sales team hate new CRM
both fear and resist change. Internal marketing (in- and go GIGO
ternal training, motivation and communications) is a
critical yet often forgotten key component in any Harvard Business Review’s Scott Edinger (2018)
CRM programme. ‘A staggering 88 per cent of CRM
observed this first hand. When asked if the new
users reported that they haven’t entered complete
CRM system was a success or not,
contact information in the system. Almost two-thirds
of users don’t log every activity and have repeat en- ‘The EVP of marketing was pleased she could
tries for the same prospects’ (Leslie Le, Hubspot). now track the assignment of every single lead.
Last but not least, constant cost cutting and The CIO was unhappy about data integrity
operational failings have shifted the emphasis of issues that arose from the integration of more
many CRM programmes from value creation to than 20 discrete databases. The EVP of sales
value restoration. Overburdened and demotivated liked the easy-access dashboard to report on
staff may also be struggling with a work overload. metrics and the forecast. Sales management
Sometimes, competitors see this as a service gap in was less positive but acknowledged that it
the market and develop an improved customer ser- helped them monitor activity. And the sales
vice programme, until years later new management
team – well, they mostly hated it. They had to
cut costs and reduce service, and competitors seize
enter a lot of information that added little value
the opportunity.
(for them), and provided no help in selling more.
Because the sales team had so little incentive to
Forgetting customer needs keep up with the data entry requirements, the
quality of the data in the system became less
It may seem ironic to have a CRM system that for- and less reliable over the following year. The
gets about the customer’s continuously changing result? Incomplete or inaccurate information
 3 | Customer Relationship Management 83

from the CRM was exported into Excel

71 per cent of IT projects fail (Ismail, 2018) and 84
spreadsheets for further manipulation by each
per cent of CRM projects fail (NetProspex, 2014).
level of management.’

GIGO (garbage in: garbage out) means inputting

incorrect and/or incomplete data destroys the Effectively, marketers need to work closely with
effectiveness of any CRM system. sales and customer service, and develop some shared
goals and operations to ensure a cohesive, inte-
grated CRM system is embraced by all departments.

Interdepartmental squabbles
The marketing team blames the sales team for not The success/dominance trap
following up on all the wonderful sales leads that
the marketing team generated. Meanwhile the A classic Harvard article by Allen et al (2005)
sales team says that ‘marketing doesn’t understand thought the CRM problems had something to do
exactly what is meant by a real qualified lead’. with growth. They called it ‘the dominance trap’
Integrating the two teams, getting them to work and explained it as follows:
together, on a regular basis (and share their suc-
cesses together) is the best solution here. See how The larger a company’s market share, the
sales and marketing collaboration can also help to greater the risk it will take its customers for
generate extremely relevant marketing content in granted. As the money flows in, management
the section on content marketing later in this begins confusing customer profitability with
chapter. customer loyalty, never realizing that the most
lucrative buyers may also be the angriest and
most alienated. Worse, traditional market
IT hijackers research may lead the firm to view customers
A few years earlier, another Harvard Business as statistics. Managers can become so focused
School Professor, Susan Fournier (in an interview on the data that they stop hearing the real
with Manda Mahoney, 2002), suggested that IT voices of their customers.
was actually hijacking CRM projects:
Most customer relationship management
technology programs are failing. Why? CRM
programs are expensive and take a long time What drives CRM success?
to install. One consequence is that IT has
‘hijacked’ the process. In emphasizing technology CRM is a strategic decision and has a long-term im-
decisions over marketing decisions, we’ve lost pact on how a business is run. However, CRM pro-
the opportunity to build better relationships with grammes need resources, the 3Ms:
customers. To get back in balance, marketers have
to help design CRM systems from the get-go. ●● Men/women: Commitment, including the
CEO’s support, an expert project director
Given that 71 per cent of IT projects today are not and teams of trained people to carry out the
successful (Ismail, 2018) there is a natural concern service.
about IT driving CRM.
●● Money: Finances to pay for the software,
It gets worse, specifically with CRM projects.
outside consultants, installation, testing,
We’ve moved from 47 per cent CRM failure in
training and motivation programmes.
2009 (Forrester Research) to 84 per cent CRM fail-
ure in 2014 (NetProspex), as defined by ‘barely ●● Minutes: It can take several years to develop
functional databases’. We need to explore exactly a major CRM project, and even the training
what drives CRM success. can take many months.
 84 Part One | Communications Background and Theories

An excellent CRM system often requires a cultural on a customer culture where all staff always ask:
change, which may be a challenge for many ‘How can we help the customer?’
­organizations.
Without senior management support cascading The ladder of loyalty
right down throughout the organization, CRM will
fail. CRM implementation is disruptive, expensive This ladder was devised by Considine and Raphel
and time-consuming and requires extra resources in 1981 (Figure 3.2). Organizations seek to move
particularly for internal marketing (communicat- prospects up the ladder of loyalty from ‘suspects’
ing, motivating and training staff). eventually up to devoted ‘advocates’ who advocate
Overambitious CRM system suppliers some- an organization’s product or service. There is some
times recommend a ‘rip and replace implementa- overlap with the PR ‘Ladder of Engagement’, where
tion’. This can be expensive. Here, some CRM visitors are encouraged to engage initially at low
suppliers convince the client company to dump engagement levels (ratings and reviews) up
­
their existing system (because of its unfriendly and to higher levels (collaborating with new product
difficult-to-use interfaces, or inadequate functional- ­developments).
ity) and, therefore, start again from scratch. In the CRM philosophy, the organization con-
Whichever approach is used, integrating cus- tinually seeks to learn about customer needs and
tomer interactions and data across a range of chan- preferences in order to deliver excellent relevant
nels from website to mobile to telephone to sales services and content to better satisfy customer
rep to email is a key requirement – as is an easy-to- needs. The organization must also continually
use, friendly interface. measure the right criteria. Ultimately, a CRM phi-
losophy seeks to move customers up the ladder of
loyalty.
Blame storming
Customer lifecycle marketing
‘Companies who do not appreciate the
importance of an effective complaint handling Lifecycle marketing takes a long-term view of the
system risk internal friction (passing on the
customer. It involves developing a one-to-one rela-
tionship with the customer to help the customer on
blame). This may lead to a vicious circle, as
his/her lifecycle journey. To save the customer time
internal friction generates poor motivation and
by making it so easy to buy again, when the cus-
cynicism, staff disloyalty and worse service.
tomer is ready. To help the customer with timely
This is why customer loyalty and staff loyalty
reminders and tips to get the best out of their prod-
are closely linked.’
uct or service. Customer needs may change as they
Merlin Stone, Neil Woodcock move through the customer lifecycle. For example,
(source unknown)

FIGURE 3.2 The ladder of loyalty

CRM culture
Building a customer-driven business requires a spe-
cific corporate culture where the organization, at all Advocates
levels, recognizes the need for customer service and
customer focus. A real CRM philosophy sees cus- Clients
tomers at the centre of the business (or organiza- Customers
tion). This customer focus requires a longer-term,
strategic view of continually helping the customer Prospects
throughout the customer lifetime (as opposed to a
Suspects
short-term ‘transactional marketing’ approach that
focuses on quarterly sales results). Ultimately, CRM
is an attitude as much as a system. Success depends
 3 | Customer Relationship Management 85

a small sports car may be required when the buyer

is single, a larger family car when children arrive
Samsung’s gamification boosts results
and a smaller car when the children have ‘left the
nest’. Constantly aiming to help the customer in- ‘Samsung uses game mechanics to offer
creases the likelihood of delivering an excellent life- incentives and rewards to users who review
cycle CX, which keeps the customer loyal and with products, advocate on social networks,
you rather than drifting off to competition. participate in Q&As and register products. After
deploying game mechanics in conjunction with
social login, Samsung has experienced
CRM architecture increases in time on site, reviews written,
comments published and shop clicks to its
An enterprise architecture is a blueprint that defines
the structure and operation of a business or ecommerce site.’
­organization. CRM needs an integrated enterprise Janrain (2012)
­architecture. Read ‘The good, the bad and the ugly of
Ultimately, we would like to integrate several gamification‘ (Smith, 2014a) for broader use of
processes, even marketing automation, as well as gamification.
building, storing and accessing a ‘universal cus-
tomer record’ for each customer (so that customer
data from every channel can be integrated); and
delivering the subsequent customer contact Hosted, outsourced and web-service IT solutions
sequence (called a ‘contact strategy’; see more on are becoming increasingly available from service
p 87). In addition, the database needs to be man- suppliers. Organizations should make the most of
aged so that other processes like data mining, data these.
analytics and profiling can be carried out. Marketers In hyper-competitive markets – ie markets with
also need to have another process integrated and no categories, no boundaries and no borders – dif-
that is the ability to personalize and tailor offers ferentiation is important. What difference is per-
and rewards and all ongoing communications. ceived between Visa and MasterCard, or L’Oréal
Not all of the software that enables CRM goes and Clairol? Brands should be distinct from the
under the CRM banner. Here are some of the appli- competition. They need a ‘personality’ that can be
cations sometimes associated with CRM and now promoted and brought to life through all the CRM
part of the martech stack (marketing technology touchpoints. Brand promotion offers a promise;
stack): CRM and CX are the physical delivery of that
promise. This can be achieved by having the right
●● collaboration tools (eg instant messaging, systems and, most importantly, the right people, or
community support on websites); human architecture (we’ll explore this later). Before
●● content management system; considering integrated processes, let us just empha-
●● marketing automation; size the importance of human architecture along-
side CRM architecture.
●● social platforms;
●● customer feedback;
●● knowledge management; Human architecture
●● portals and self-service; CRM architecture (systems and processes) is just
●● call centres becoming interactive contact part of the equation. Even though a significant pro-
centres; portion of repetitive CRM tasks can be automated,
the human factor is still deemed critical to most
●● business information and analysis;
CRM systems. This is why internal marketing is
●● enterprise process management; critical. Here are a few tips to ensure you get the
●● gamification; best from your CRM team who are on the front
●● display and retargeting ads. line, dealing with prospects and customers:
86 Part One | Communications Background and Theories

●● Benchmark current culture with staff via || encouraging staff to align their behaviour
story techniques about customers, their with the values;
work and CRM. Establish the problem || rewarding employees for delivering the
areas and use the information for internal brand values.
brand alignment through change
●● The CEO needs to develop a real customer
programmes.
culture where staff really care about
●● Spread customer insight among staff and customers. This is no easy task. It’s a
ensure they can use it in their work. Link mindset. It is more an attitude than simply a
knowledge of management processes to set of processes. It affects the whole
customer interaction processes for greater organization, as everyone is responsible – not
collaboration and learning. The big mistake just the customer services, marketing or sales
of previous process re-engineering was not departments. It’s everyone’s job, from the
doing this. Good customer experience delivery driver to the receptionist to accounts
depends on the learning and support that and finance. Everyone can enhance every
staff give each other as a natural part of customer experience to create a strategic
everyday life. advantage over the competition.
●● Establish the new skills required and ‘cast’
staff into the new roles. Develop skills
through continuous coaching in delivering CRM processes
the brand values. How does an organization manage complaints,
●● Redesign organizational structures to support money-back requests, queries, compliments, sugges-
new ways of working. Put flexible delivery tions and requests for additional services? How does
teams together, pulled from ‘communities of it handle a sale, a cancellation, a complaint or a cus-
practice’ (ie similar skill pools) as and when tomer defection? Are there processes or systems in
required. CRM challenges old structures place? After an order, do you send out an order ac-
because of the need for: knowledgement? And after a sale, do you send out a
|| a segmented approach to customers; delivery alert, followed by a post-sales service satis-
|| non-siloed thinking and working; faction questionnaire, or score sheet or feedback re-
quest or a formal review? What happens with this
|| new and scarce skills. information? Who decides to act on a particular cus-
●● Link key performance indicators (KPIs) tomer suggestion? Who tells the staff? Who tells the
through performance management to staff customer what’s happening with their complaint,
incentives; banish incentives that misdirect query or suggestion? How many times should a cus-
activity. The right incentives are vital. Do not tomer be contacted after a sale? If customers have
focus just on ‘what’ is being delivered in outstanding issues, it is not the time to cross-sell
terms of financial targets. Focus also on the them something else. Should different types of cus-
‘how’ of good performance delivery. tomers get different types of offers? Who decides?
Gamification can be and is used here. Who implements this? Processes are important.
●● Link the brand values to the team and the Does everyone know how to process an order or
CX: a complaint? What happens if someone phones
with an unusual enquiry? Who deals with it? How
|| basing brand values on what customers
many times are customers left hanging on the
want;
phone, being passed around from department to
|| involving employees in developing the department?
values;
|| linking the values to the main brand
Customer feedback process
promise;
Some organizations value customer feedback. They
|| recruiting employees with appropriate
encourage it with 0800 numbers, feedback buttons
brand values;
on websites, questionnaires, rating cards and even
outbound telemarketing to collect feedback. Others
 3 | Customer Relationship Management 87

employ the services of third-party feedback special-

The chain averages approximately 100 comments
ists like reevoo.com or feefo.com, who aim to gather
per day – they are the pulse of the store. By
feedback from 30 per cent of your customers. There
actively listening to customers (and their
are also many new customer listening tools (many
of them are free; read ‘The old ­marketing ship is complaints), companies can save, rather than
sinking’, http://prsmith.org/blog/). Listening is spend, money.
just the beginning. It is vital to have a system that
enables a listening process as well as a constructive
response, or sometimes a series of responses (see the
Contact strategy
Tesco auto contact example later).
Too much contact can wear out a relationship. As in
personal relationships, you can become a bore, a
nuisance or irrelevant. On the other hand, too little
Maximize the customer’s opportunity to contact may kill the relationship. The key to build-
complain ing the relationship is to contact customers when it
is convenient and/or helpful, ie at the right time, via
Companies can set up suggestion boxes and other their preferred channel. This is a contact strategy. It
feedback systems to maximize the customer’s specifies which kinds of customers and enquirers
opportunity to complain, compliment, create or get which sequence of contacts and incentives via
engage with the brand. Feedback (even negative) is which channel (email, newsletter with dynamic, rel-
food and drink to marketers. However, only one in evant content, push notifications/message, tele-
every 24 dissatisfied customers bothers to phone call, personal call, or even remarketing or
complain, according to E-Satisfy Ltd (formerly retargeting ads). Some organizations ask their cus-
tomers how they prefer to be updated. Organizations
TARP). Rather than facing an unknown enemy of
also need to be flexible and vary their contact strat-
bitter, disappointed and dissatisfied customers, an
egy depending on how customers react. You can ei-
organization, through its complaints process, can
ther ask customers directly about how they prefer
offer a chance to sort out previously unknown
to be contacted or you can observe their response
problems. It also gives the organization the
(or lack of response). And remember, permission to
opportunity to find the enemy within (internal contact customers is only temporary. Organizations
problems such as quality control or demotivated have to continually win it by delivering relevant
staff). One company chairman takes time to listen added-value communications continuously.
to taped telephone complaints while driving home
in his car. Many services companies actually ask
their customers to fill in a form about levels of Morton’s steak story
satisfaction or dissatisfaction. Solutions are
relatively easy. Identifying the problem is the
‘Companies are reportedly incorporating
difficult part. Complaints are generally helpful.
influencer scores into their customer service
Welcome them.
operations. Morton’s Steakhouse even arranged
for the surprise delivery of a deluxe meal at
Newark airport, for an influencer. After noticing
that Peter Shankman (an influential
Stew Leonard’s: US retail chain’s listening entrepreneur and investor with 100,000
process followers on Twitter) had tweeted the following
message mid-flight: “Hey @Mortons – can you
At Stew Leonard’s grocery stores there are monthly meet me at Newark airport with a porterhouse
focus groups and a daily suggestion box. when I land in two hours? K, thanks :)”
Suggestions are typed up by 10 am the next day, The effort won Morton’s considerable
and store managers either act or call the publicity, via traditional and social media, and
customers about the complaints or suggestions. demonstrated their ability to engage creatively
 88 Part One | Communications Background and Theories

Step 2: ‘Contact strategy’ process

with loyal customers. As one technologist Here is how Tesco, arguably the world’s most sophis-
noted, “few companies would be agile enough ticated relationship marketer, develops different con-
to pull off a stunt like that in under three tact ­strategies relevant to four different customer
hours – it says a lot about the freedom that types and relationship stages:
Mortons have chosen to give their social media ●● new website visitor registers;
team”.’
●● first-time customer;
Curragh (2012)
●● repeat customer;
●● lapsed customer.

Some garages maintain contact with their custom- Tesco monitors customer actions during the cus-
ers via email or SMS, sending them reminders when tomer lifecycle. Different customer actions trigger
their car is due for a service. If no response is gener- different automatic responses (ARs) by email:
ated then this triggers a prompt for staff to make a ●● Trigger event 1: The customer first registers
phone call to see whether the customer still wants on the site (but does not buy).
to receive reminders (maintaining permission). A || AR1: Two days after registration, an email
contact strategy defines an initial welcome strategy is sent offering phone assistance and a £5
when the prospect is first added to the database, discount off the first purchase to
based on the best interval and sequence of mes- encourage a trial.
sages. The contact strategy should then be extended
for later stages in the customer lifecycle, with mes- ●● Trigger event 2: The customer first purchases
sages designed to convert customers to purchase, online.
encourage repeat purchases, encourage customers || AR1: An immediate order confirmation is
to try new products or reactivate customers when sent.
their interest wanes. Here are three steps to a con- || AR2: Five days after purchase, an email is
tact strategy from Chaffey and Smith (2017): sent with a link to an online customer
satisfaction survey asking about the
Step 1: Welcome programme process quality of service from the driver and
Develop a welcome programme where over the first picker (eg item quality and substitutions).
three to six months targeted auto-triggered emails || AR3: Two weeks after the first purchase, a
are sent to educate subscribers about the brand and direct mail approach offers tips on how to
its benefits and deliver targeted offers. For example, use the service and a £5 discount on the
the Renault B2C welcome strategy has a container next purchase, intended to encourage
or content pod within its e-newsletter to deliver per- re-use of online services.
sonalized information about the brand and model
|| AR4: A generic monthly e-newsletter with
of car in which a prospect is interested. This is
online exclusive offers.
­updated each month as the customer gets to know
the brand better and the brand gets to know the || AR5: A bi-weekly alert with personalized
customer better. offers for the customer.
Segment list members by activity (responsive- || AR6: After two months, a £5 discount for
ness) and age on the list. Assess the level of email list the next shop.
activity (ask what percentage of list members || AR7: A quarterly mailing of coupons.
haven’t clicked within the last three to six months –
if they haven’t, they are inactive and should be ●● Trigger event 3: The customer does not
treated differently, either by reducing frequency or purchase for an extended period.
by using more offline media). Some customers || AR1: The dormancy is detected, and a
become less responsive. A specific contact strategy is reactivation email is sent with a survey of
required to reactivate waning customers. how the customer is finding the service (to
identify any problems) and a £5 incentive.
 3 | Customer Relationship Management 89

|| AR2: A further discount incentive is used lost customers. Essentially the organization needs to
in order to encourage continued usage listen carefully, find out why customers have de-
after a break. fected, clarify what can be done to win back the
business, and remind them what business offers
Remember, markets are conversations. Listen to
(sometimes with an added incentive). All of this has
what customers say or watch what they click on
to be recorded on the database for review (particu-
and use this information to tailor relevant added
larly why customers are ­leaving).
value with every contact you make. Then ask cus-
Patience is required, as the defecting customer
tomers how often they want contact and what type
may have just bought a competitor’s product or
of information or offers they would like. This in-
service and the organization has to wait for the
creases relevancy – a key success factor.
next purchase cycle to start again. So be patient.
Keep in touch. Make it easy to come back to the
organization. When defectors actually do return,
BA puts VIP faces to a welcome name via the organization has to go out and win their busi-
Google ness every day.
Marketers must know what aspect of the organi-
‘Three years ago British Airways were reported zation’s procedures, customer care and customer
to be watching out for its most important experience causes customers to leave. They must
customers with its then-new “Know Me” also know which types of customers are defecting.
programme which involved a thorough Googling If it is a disproportionate number of high-value cus-
of their passengers, so that check-in staff can tomers, then alarm bells should start ringing.
“put a face to the name before the customer
sets foot in the airport”. Staff searched Google
images for specific VIP passengers, and those
Catch the at-risk customer
with high Klout scores. “Results of the searches defectors
will be forwarded to front-line staff equipped
It is surprising how many major brands do not
with iPads, making for more personal
have any alarm systems to highlight customers who
interactions with check-in staff or cabin crew.” are about to switch to a competitor. They can be
BA were hoping to send out about 4,500 daily easily identified or profiled by their behaviour (or
“personal recognition messages” in 2012.’ lack of behaviour/spending). At-risk (of defecting)
Huffington Post (2012) customers or even recently ‘churned’ customers
need to be followed up with a ‘contact strategy’,
which might comprise a sequence of calls, emails,
gifts/incentives (if they fit the ideal long-term cus-
The higher the relevance, the greater the tomer profile).
value – it’s a continuum Profiling is a continuous activity, which includes
continually collecting customer information, mining
‘If you want to protect and enhance the value of it and using it to profile and target more success-
your brand, your offer must be valuable.’ fully. For example, Grattan’s ladies’ fashion mail-
order company decided to experiment with a new
‘Customers get what they want; your margins
product, a grandfather clock. They guessed the
are protected; everyone’s a winner.’ likely target profile would be something like middle-
dunnhumby (2006) aged, well-off ABs living in ACORN types J35 (vil-
lages with wealthy older commuters) and J36
(detached houses, exclusive suburbs). They then
asked for a print-out of names and addresses that
Step 3: Customer defector reduction ­process
fitted this profile. The subsequent mailing generated
All organizations lose customers. It’s called ‘churn’.
60 orders at £1,000 each. They then analysed those
Some customers change job, leave the country, grow
60 orders with a view to identifying any hidden
old or die, and some switch to a competitor.
characteristic that could be added to the profile and
Organizations need a process for following up any
 90 Part One | Communications Background and Theories

fed into the database again to produce a different, Personalization

more accurate target list. When they mailed this list
they sold every one of the 1,000 limited edition The most important sound in the world is… your
clocks. own name! It’s personal. It’s a compliment – an ex-
pression of respect. Marketers depend on a good
database to remember customer names, needs, inter-
ests and preferences. Specialized software combined
3M complaints system generates with an up-to-date and well-cleaned database al-
innovative ideas lows marketers to personalize communications such
as emails, voicemails (voice-activated emails), snail
3M claim that over two-thirds of their innovation mails (traditional direct mail), SMS text messages
ideas come from listening to customer complaints. (for mobiles) and, most interestingly, w ­ ebsites –
­personalized websites.
Personalization can help to build relationships.
When someone remembers your name and, even
Some organizations have systems and processes more importantly, your interests, it demonstrates
that stop complaints before they happen. that the person cares about you. Similarly, an organ-
Compared to fixing a complaint, telemarketing (or ization that remembers your name and your inter-
even an email) can provide a low-cost method of ests is, at least, trying to do a good job.
ensuring customer satisfaction. For example, some There are three distinct approaches to personali-
customers may have a question that does not merit zation, as explained by Chaffey and Smith (2017):
them making a telephone call, but nevertheless ●● customization;
they would like it answered. If left unanswered,
●● individualization;
the question can fester into a source of dissatisfac-
tion, so regular outbound telephone contact (the ●● group characterization.
company calls the customer) picks up any issues or Customization is the easiest to see in action: it al-
problems before they become major ones. This is lows visitors to select and set up their specific pref-
usually more cost-effective than fixing problems. erences. Individualization goes beyond this fixed
Inbound (0800 and freephone) customer service setting and uses patterns of a visitor’s own behav-
lines can also reassure customers if they are made iour (and not any other user’s – it is known that it’s
aware of the facility. Some technology companies, a particular customer because of the log-in and
like ICL, have a team of telephone diagnosticians password choices) to deliver specific content to the
who handle fault reports from customers. Linked visitor. In group characterization, visitors receive
to a sophisticated computerized diagnostic kit, recommendations based on the preferences of peo-
they can identify whether the fault really exists or ple like them, using approaches based on collabora-
not. Many problems arise from the user’s lack of tive filtering and case-based reasoning. Mass
knowledge, which means many potential problems customization is where a different product, service
or frustrations can be sorted out over the phone. If or content is produced for different segments –
a fault is identified, the diagnosis informs the engi- sometimes hundreds of them. Personalization is dif-
neer in advance so that he or she arrives with the ferent. It is truly one-to-one, particularly when not
right spare part. only the website and communications are personal-
Marketing optimization analyses all contact his- ized but also the product or service.
tory to identify what communications mix gener- Another way of thinking about the many options
ates the best return on investment. It identifies for online personalization is suggested by the Gartner
which channels (or tactical tools) generate the best Group (ranging from simple to complex):
results, whether email, direct mail (snail mail), call
centre, search engine traffic (resulting from SEO ●● Addressing customers personally:
campaigns), social media or any other sources of || address customers or prospects by name
customer acquisition (or retention). in print communication;
 3 | Customer Relationship Management 91

|| address customers or prospects by name Personalization enhances relationships. Person­

in electronic communication. alized web pages help to give customers a sense of
●● Real-time personalization: ownership – not the marketer owning the cus-
tomer, but the customer owning (or controlling)
|| keyword query to change content;
the site. When you make customers feel that their
|| clickstream data to dynamically change home page is truly theirs, then the offers you
website content; make available belong to them, the information
|| collaborative filtering to classify visitors they access is put together just for them, and you
and serve content. allow the customers to own you.
●● Customer profile personalization: Many personalized sites require users to log in
with a password, which can be frustrating when
|| geographic personalization to tailor
customers forget. Many visitors give up and leave
messages in traditional media;
the site. Incidentally, privacy laws now require mar-
|| demographic personalization to tailor keters to ask permission before placing a cookie on
messages in traditional media; a user’s device (and also explain the use of cookies
|| geographic personalization to tailor online within the privacy policy).
messages; Here are some other personalization problems.
|| demographic personalization to tailor Although personalization is important, it is
online messages; possible to over-personalize. American Express
once tried too hard to be too personal and upset
|| give website visitors control over content customers. UK Online for Business reported that
from set preferences; American Express call centres discovered that cus-
|| registration data to change website tomers resented being greeted in person before
content. they had actually declared who they were, even
For over a decade marketers have been using other although a powerful database can recognize an
interesting options for tailored offers and ads, in- incoming phone number and reveal the caller’s
cluding ‘content interested in’ (pages visited) com- name, address, purchases, issues, etc. The practice
bined with other live data such as a bank account of immediate personalized greeting was swiftly
balance. For example, when HSBC Bank International discontinued.
wanted to move customers into more valuable seg-
ments, it tested personalized banner ads on its own
website. New Media Age reported that this was a Dear Rich Fat Bastard
challenge: since 60 per cent of total weekly visitors to
offshore.hsbc.com log on to the internet banking
Security becomes even more important when
service, HSBC wanted to market to them effectively
personalized information is collected. A credit card
while they were engaged in this task, disrupting their
company once had a direct mailshot to 30,000 of its
banking experience without infuriating them
best customers (its gold card holders) intercepted
(Rubach, 2007). HSBC developed some rules to
by a disenchanted employee. He changed the
serve different offers dependent on the type of con-
tent accessed and the level of balance in the custom- salutation in each of the personalized letters to
er’s account. The personalized approach worked, ‘Dear Rich Fat Bastard’.
with new banners having an 87.5 per cent higher
click-through rate than non-personalized banners
(6.88 per cent versus 3.67 per cent); savings accounts
Nike’s website once offered customers the opportu-
opened via internet banking increased by 30 per cent
nity to personalize their own shoes by stitching on
(based on the six months pre- and post-launch); and
their own personal logo. One customer filled out
non-premier customers upgrading to premier ac-
the online form, sent the $50 and chose ‘sweatshop’
counts (requiring a balance of £60,000 or more) in-
as a personal logo. Nike refused. The publicity
creased by 86 per cent (based on the four weeks
soared.
pre- and post-launch of the targeted banners).
 92 Part One | Communications Background and Theories

Automated personalized systems can present buy, etc). Both hard and soft data are combined.
challenges. However, listening to feedback, ensuring Hard data includes customer interactions with a
security measures are in place and motivating staff company, including calls, chats, emails, texts, social
to spot issues (eg Nike) are all simply best practice. media responses and surveys. Soft data is buried in
In addition to personalized communications, among hard data and can give a clearer insight into
having relevant, added-value content can also help how a customer is actually feeling about your
boost CRM results. brand.
Your digital footprint (or click behaviour) can
Content marketing give a far better insight to customer than their
demographics.
Content marketing is content that will be of value A 360-degree view used by, say, a call centre can
to your customers. This can be a book, ebook, white generate, in real time, an instant snapshot regarding
paper, report, photograph, infographic, video, etc. the background to the customer’s call:
Some include games, responses and even direct mail
and text messages (a sequence of emails needs sim- ●● identity: name, age, gender, location;
ple yet carefully crafted messages). A newsletter re- ●● relationships: influence, connections,
quires interesting and relevant content. A social associations;
media feed requires great content with lots of visu- ●● current activity: purchases, deliveries, faults,
als. A public talk requires an interesting speech and etc;
visuals. A sales promotion, whether offered on TV,
via email, at a conference or on social media, needs ●● history: contacts, processes, campaigns;
to be interesting and desirable. Suffice to say that ●● value: which of our products or services have
before developing any content suitable for your cus- they used?
tomers on, say, your social media platforms, it is ●● flags: churn propensity (likelihood to swap
worth carrying out a social media audit. This will supplier), cross-sell and up-sell opportunity,
help you decide what information/marketing con- credit risk, fraud risk, last interaction mood,
tent and interactions customers will actually engage fault record, frequency of contact;
with, and what they won’t. A contact strategy can ●● actions: expected, likely or key actions the
also include interesting content marketing. caller might take.
There is a process to ensure your marketing con-
tent is relevant and desirable, plus a sequence or Consumer variables, or traits, like browsing and
continual stream throughout the year. We will look shopping patterns in conjunction with social media
at this process in more detail in Chapter 15. activity, can be added to a CRM and used subse-
Meanwhile, knowing what content customers pre- quently for more detailed persona creation and cus-
fer is part of the bigger customer picture, called a tomer segmentation.
‘360-degree view’.

360-degree view of the customer ‘Companies now use an increasing array of

A 360-degree view gives a single, end-to-end picture tools to develop this 360-degree view, including
of the customer’s experience, including each step of social media listening tools to gather what
their journey with a brand and also how they felt. customers are saying on sites like Facebook
This generates a single unified view from all the cus- and Twitter, predictive analytics tools [more
tomer touchpoints at each stage of their buying (be- later] to determine what customers may
fore, during and afterwards), whether the customer research or purchase next, customer
was on the website or calling a call centre or com- relationship management suites and marketing
menting on social media (about the brand). automation software. So it has become more
Whatever processes are integrated, they should important than ever for this software to
ideally deliver a single customer view (a 360-degree integrate with other platforms to enable data
view) and identify which media (including social sharing and a cohesive, up-to-date, accurate
media tools) work best using propensity models view of customers. In some cases, this may
(propensity or likelihood to open, propensity to
involve the use of application programming
 3 | Customer Relationship Management 93

team who then convert the leads into ­customers),

interfaces to enable applications to share data. many organizations still have a gap between market-
Data quality and data cleansing practices may ing qualified leads (MQLs) and sales qualified leads
also be necessary to attain an accurate picture (SQLs).
of customers, where the data is current, not CLR closes this gap as marketing and sales sim-
duplicate or conflicting, and so forth.’ ply share data with each other so that they can both
Rouse (2015) make more informed decisions. CLR lets specific
members from both marketing and sales obtain a
complete view of the whole sales funnel, including
MQLs and SQLs.
Another way to close the loop is to get the sales
When customers ‘opt in’ to further emails or phone teams to share with the marketing team what hap-
calls they give their permission to be contacted. This pened to the leads that the sales team received. This
is a first step in using their permission to develop helps marketing to understand how best they can
the relationship. In fact permission can, and ideally help the sales team in the future.
should, be extended to be quite specific by asking CLR helps to boost conversion rates, and even
customers exactly what they prefer: identify the best- and worst-performing campaigns,
●● content – news, products, offers, events, ultimately lower marketing costs, improve the CX,
topics; generally have better lead management processes
and ultimately improve ROI analysis.
●● frequency – weekly, monthly, quarterly or
CLR helps to generate a 360-degree view of your
alerts;
sales cycle – so you can see a user’s first visit to the
●● channel – email, direct mail, phone or SMS; website, browsing through their activities and then
●● format – text vs HTML. identifying their last conversion event. See what
marketing content a prospect downloads. Then
Ensure future contact with customers always adds
compare that with any data about their business
value to the CX. It is a moral and legal requirement
type, size or location to see if any content appeals to
(in B2C markets) to offer the customer the option
one segment more than another. Closed-loop report-
to ‘opt out’ every time you contact them. The num-
ing is a powerful tool.
ber of existing customers who opt out from further
contact is the ‘churn rate’. Marketers watch the
churn rate closely and try to understand why it
­varies.
All of these approaches are dependent on an
Databases
overall customer philosophy that is more strategic The database is at the heart of CRM. A database
than tactical, with customers being nurtured over can contain a lot of information about customers
the medium to long term rather than by a one-off depending on how many ‘fields’ or variables an or-
transactional sale approach. This also requires dif- ganization wants to capture. It contains customer
ferent teams to integrate and work together (eg names and addresses, enquiries, purchasing pat-
closed loop reporting), rather than ‘silo’ depart- terns, preferences, areas of interest, incentives and a
ments competing against each other. lot more depending on how many ‘fields’ are kept
and what kind of analytics are used. It can even be
progressively improved with each interaction (or
Closed loop reporting even each click). The database can be enriched with
Closed loop reporting (CLR) brings data from two data from publicly available social media informa-
main sources together. Integrating the data that the tion if required. A database gives an organization
marketing team collect via marketing automation access to its own private marketplace. It can create
with the information that the sales and customer ser- a monopoly of your own customers.
vice team collect via the CRM system is an example A good database contains highly relevant and
of CLR. Even if both teams work well together (the up-to-date customer data. It is a valuable repository
marketing team deliver leads efficiently to the sales of information on prospects and customers from all
 94 Part One | Communications Background and Theories

F I G U R E 3.3 Visualizing closed-loop marketing

Visualizing Closed-Loop Marketing:

VISITOR VISITOR
ARRIVES BROWSES
ON SITE WEBSITE

1 2
Cookie is set The cookie
on the visitor tracks
and their source, the visitor’s
e.g. small, social actions on the
media, etc, website

Attributing
customer Submission of
acquistion to the a lead capture
visitor’s original form
source

4 3
LEAD VISITOR
BECOMES A CONVERTS
CUSTOMER INTO
A LEAD

VISITOR ACTIONS
SOFTWARE ACTIONS
 3 | Customer Relationship Management 95

sources and channels, including website registration those needs/benefits; deliver a reasonable product or
forms, sales reps’ discussions with customers, cus- service – the magic marketing formula, see p 352).
tomer service calls including complaints, comments ROI improves. The deep analytic tools can now also
or any customer feedback. The database can build be applied to online social media as well as the more
up a detailed 360-degree customer view, identifying traditional scenarios. First, consider how data mining
issues, buying cycle/frequency, preferences and works to build better c­ ustomer profiles and contact
which incentives work for each customer. strategies while exploiting purchasing cycles with au-
Organizations with properly managed databases tomated marketing.
enjoy a competitive advantage over competitors
without one. A good database is a powerful asset. Data mining
Data mining and segmentation can identify poten-
tial long-term, loyal customers as opposed to those
Sometimes some of the best customer data lies in who are promiscuous ‘bonus seekers’ (short-term
the bottom of a drawer or a customer file. shoppers who grab sales promotions and then
switch when another brand offers a new sales pro-
motion). The latter are costly and increase the
‘churn rate’ (customers who leave). Since the long-
term loyal customers are far more profitable and
Data the promiscuous customers are loss making, every
business needs to know where each of these seg-
Historical data and predictive data ments comes from, ie which channels and incen-
There are two types of information kept: historical tives recruit the best customers. Businesses need to
data and predictive data. Historical data (‘transac- know which offline advertising, online advertis-
tional data’ or ‘back data’) includes name, address, ing, direct mail (online or offline), referrals links,
recency and frequency of purchases, responses to social media channels and content type are gener-
offers and value of purchases. Predictive data can ating the right or wrong customer traffic and
identify which groups or subgroups are more likely ­conversions.
to respond to a specific offer. This is done through
statistical scoring: customer attributes (eg lifestyle,
house type, past behaviour, etc) are given scores that
help to indicate the customers’ future behaviour. Intelligent miner saves Safeway’s top
The database can identify best (‘ideal’) customers
and worst customers. The worst customers have
customers
‘negative value’: these are customers who, for ex-
Data mining has been around for many decades
ample, only buy when special offers are available.
now. Here’s an example of how data mining helps
make better decision:
Data analytics
‘Before Safeway delisted a particular cheese
Data analytics improves customer intelligence, which
in turn improves targeted marketing, which in turn product, ranked 209th in sales, an intelligent
improves campaign management and, most import­ miner discovered that this cheese was
antly, customer relationship management. Forget frequently purchased by its ideal customer
how this boosts profitability for a moment, and just profile – the top-spending 25 per cent of
consider how more relevant benefits make customers customers, the last clientele Safeway would
happier, and how happy customers generate more want to disappoint. Under conventional
business and more word-of-mouth referrals. It’s a vir- analytical principles, the product would have
tuous circle that starts with a bunch of processes: been delisted; in actual fact, the item was quite
identifying customer needs, reflecting those needs important.’
through marcomms and then delivering more ­relevant DB2 (1997)
products, services and i­ncentives in a timely and cost-
So the cheese was not delisted.
efficient manner which ultimately boosts customer
sales and satisfaction (IRD – identify needs; reflect
 96 Part One | Communications Background and Theories

Databases have to be stored securely. Large databases

require large warehouses. Data mining drills down
London Fire Brigade data analytics predict
into these data warehouses and applies a­ dvanced sta- fires
tistical analysis and modelling ­tech­niques to the data
to find useful patterns and relationships. It can, for Database mining can even be used for non-
example, explore each and every transaction of mil- marketing purposes, such as fire prevention. Take
lions of customers and how they relate to each other. the London Fire Brigade. It carries out 65,000 home
Data mining can find correlations that are beyond safety visits each year, but with over 3 million
human conceptual capability (see the ‘Unexpected re- homes in London it would take over 50 years to
lationships’ box below). A range of statistical tools is cover every one. More than 60 different data
used, including regression analysis, time-series fore- elements are fed into the model, including census
casting, clustering, associations, logistic regression, data and population demographics, broken down
discriminant analysis, neural nets and decision trees. into 649 geographical areas (ward level), plus type
A sequence-discovery function detects frequently oc- of land use, data on deprivation, Mosaic lifestyle
curring purchasing ­patterns over time. This informa- data, historical incidents and past prevention
tion can then be layered with demographic data activity. The model predicts where fires are most
(from the main database) so that a company can tai-
likely to occur. London Fire Brigade use the
lor its mailings on each household’s vulnerability or
information to predict where there is a high risk of
propensity to buy certain items at certain times.
fire, eg in a small estate of houses or industrial
buildings, so they can then send in an assessor to
investigate and perhaps circulate information, set
Unexpected relationships
up some advisory services and ultimately reduce
the number of fires.
‘Data mining can reveal unexpected database
connections. For example 82 per cent of
motorcycle owners buy frozen seafood and 62
per cent of amateur cellists buy power tools. It
can be mathematically interesting to see these
Managing the database
techniques in action. However, it is also The database is at the heart of the CRM system.
important that a manager knows roughly what The database manager has many responsibilities in
the purpose and possible benefits are of any addition to the database design (which allows rele-
such data-mining analysis… The ability to ask a vant customer data to be accessed rapidly and que-
good question or write a good data-mining brief ries performed):
is a relatively new skill for today’s marketing ●● Data quality: Ensuring data are accurate,
manager.’ relevant and kept up to date. Data, like any
PR Smith asset, needs to be maintained (cleaned and
updated continuously). See box below.
●● Data security: Ensuring data cannot be
Data retrieval compromised by attacks from inside or
outside the organization.
Remember, input is one thing, but retrieving it in a
sensible format is another. The art lies in the r­ etrieval ●● Data coordination or user coordination:
of the data in an appropriate format, for example a Specifying exactly who has access to data
list of ‘all enquirers for product x from the south- retrieval and who has access to data input.
west in the past six months’, a list of a particular Too many uncontrolled inputs may result in
category of business customer (SIC code), a list of files being deleted or changed by too many
‘customers who have bought all product x but not different people. The database spins out of
product y’, and so on. control.
Scale is important too. Will the database grow? ●● Data back-up and recovery: Ensuring that
How many sources of data might there be? How data can be restored when there are the
many scenarios might exist? almost inevitable system failures or attacks.
 3 | Customer Relationship Management 97

The manager also monitors performance, particu- and explicit data continually. This provides a real pic-
larly checking the system is coping as either the ture (or profile) of the target markets, the characteris-
database or the number of interactions grows
­ tics that define each segment and how to serve each
(driven by the contact strategies). segment. For example, certain car buyers might have
different demographic profiles, show an interest in
particular features (pages) of a car and request a test
Data asset becomes a liability if data drive. If this group of visitors (or segment) fits the
ideal customer profile then they may get an immedi-
maintenance is poor ate incentive to buy now, whereas another group, or
segment, of visitors with a less likely profile may only
Although it does not appear on the balance sheet, get an e-newsletter once a month.
the database is an asset. Like any asset, it Website visitors are observed as they leave an
deteriorates or depreciates over time if it is not audit trail of what they did, what they looked at
properly maintained. In the same way that a and for how long. Cookies enable marketers to
physical asset, like a building, needs to be track which pages they access, what they are inter-
maintained to avoid it becoming run down and ested in (pages visited, times, duration spent there)
eventually a liability (if tiles fall off the roof or a wall and what they buy, which then helps to build their
collapses), a database asset needs to be cleaned profile. They can drill down deeper to see how well
and maintained to stop it deteriorating and different segments respond to different offers or
eventually becoming a liability. For example, features in a newsletter. Profiling helps to identify
sending messages (direct mail/email/messaging) to who the most profitable customers are and whether
people who have died upsets their relatives. Or they have any similar characteristics (eg whether
contacting individuals who have opted out (or who they respond to certain mailshots, came from a cer-
have registered with the Mail Preference Service, tain type of site or search engine, searched using a
the Email Preference Service, the Telephone particular key phrase, or spent a certain amount of
Preference Service, etc) can incur a large fine. See time on particular pages).
‘GDPR compliance’ in this chapter and p 299.
Careful maintenance (cleaning and updating) of this Profile customers, visitors
valuable asset is required. and enquirers
Build profiles of both customers and enquirers and
then segment them according to their different inter-
ests, enquiries, requirements or purchases. Marketers
Profiling can build sophisticated consumer profiles based on
Fifty per cent of FTSE 100 companies do not know previous purchasing decisions and even identify the
who their customers are. They cannot describe how consumer hierarchy of criteria, whether quality,
their ideal customers are different to their negative- speed of delivery, level of service, etc. This enables
value customers. They cannot profile them. They tightly targeted, tailored offers that match the spe-
may have their names and addresses, etc, but they do cific needs of each segment or profile type.
not build useful profiles describing them. If an or-
ganization doesn’t know its customer profiles (iden- Progressive profiling
tities, needs and preferences), how can it give them
Asking for information is a delicate affair. Marketers
relevant offers that satisfy them better, and find other
can be too greedy. This can create ‘form friction’ by
customers like them? It is like searching for a needle
presenting a customer with 20 questions to answer.
in a haystack if customers are not profiled.
Beyond the basic information, you may need to
Chaffey and Smith (2017) explain how profiling
offer incentives for more information or simply wait
can combine explicit data (customer information col-
for the relationship to develop and gain p ­ ermission
lected from registrations and surveys) and implicit
to ask for more. Progressive profiling means asking
data (behavioural information gleaned from the back
for a little bit of extra information with each visit or
end, ie through the recorded actions of customers on
purchase. But remember that ­customers value their
a website). Valuable profiles combine both implicit
 98 Part One | Communications Background and Theories

privacy. All organizations’ privacy policies should

example, if a new customer comes in and bets on
be clearly posted on the website and any other ac-
cess points customers may have with you. casinos (instead of poker tables), the company can
predict whether that customer is more likely to
become a long-term customer or a short-term,
expensive, loss-making customer. The predictive
‘Incorporate progressive profiling to build a
analysis suggests which customers are worth
richer understanding of your audience.
investing in (with regular contact and regular
Hopefully you wouldn’t put someone through the
incentives) and which are not – those loss-making
wringer on your first date by asking 50
‘bonus seeker’ customers, whose profile is: young
questions… right? Dating advice is surprisingly
male, tight betting (as opposed to betting all of their
relevant when it comes to learning more about
stash), declining betting frequency, infrequent
your online users. Don’t ask your users to share
betting, or middle-aged female. If visitors display
their life story on your first date. Build
these characteristics, they’ll stay three weeks and
progressive profiling workflows that invite users
leave and therefore do not warrant any
to share more information about themselves at
relationship-building efforts (ie no regular contact
the right moments. The points at which people
or incentives). The other customers are worth
post comments, share content, purchase
investing in, and it is worth developing ‘retention
products or write reviews all present an
activity’ (a regular attractive incentivized contact
opportunity to inquire and build a deeper, more
strategy) for them. Predictive analytics use
comprehensive customer profile.’
historical data to highlight and optimize marketing
Janrain (2012)
messages that work better for certain social
networks.

The better the profiling, the better the results, be-

cause the more accurate the targeting, the less re-
sources are wasted. Different customers have Remember Alibaba’s CEO talking about their
different needs. It is actually easier to satisfy them ­customer-centric mission in Chapter 1: ‘Making it
by dividing them into groups sharing similar needs easier to do business across the world’, followed
(segments) and then treating each segment differ- by their motto, ‘Customer first, employee second,
ently (different contact strategies for each). shareholder third’.

Non-scientific profiling Building a profile with fields of data

In the absence of completely reliable data, a less scien- So what kind of data, or ‘fields’, should be cap-
tific analysis is sometimes used to separate or take out tured? In addition to a customer’s name and ad-
names that do not fit the target profile. For example, dress, there are obviously other fields of data worth
Rediffusion cable services felt that older home dwell- capturing for either a B2C or a B2B business. Today
ers did not fit their ideal prospects’ profile, so they did marketers can collect a plethora of customer data.
not target prospects with older-generation Christian There are many fields of data, and many ways to
names such as Albert, Alfred, Alice, Amelia, Arthur, collect it. A single universal customer record can be
Bertram, Constance, Grace, Harold, May, Mildred, used to link all the data together.
Rose, Sabena, Samuel, Victor, Violet and Winifred.
FRAC
Gaming company profiles big gamblers vs Another useful approach to building immediately use-
able profiles relates to their likelihood to buy based on
loss-making bonus seekers four common sense factors collectively known as
FRAC. It stands for: frequency (of purchase/visit), re-
Internet gaming company Victor Chandler uses cency (of purchase/visit), amount (of money spent on
SAS Analytics to do a behavioural analysis to purchases) and category of ­purchase. These were in
predict lifetime values of new customers. For use a long time before the internet emerged.
 3 | Customer Relationship Management 99

Chaffey and Smith (2013) show how some CRM to encourage purchase. There are many approaches
systems use recency, frequency, monetary value here; for example, a theatre group uses nine cate-
(RFM) analysis for targeting emails according to how gories to tailor its direct marketing for customers
a customer interacts with a website. Values could be who have attended once, twice or more over the
assigned to each customer, as shown in Table 3.1. last year, previous year, etc. Other companies will
Customers can be combined in different catego- have hundreds of segments with very tailored
ries and then appropriate message treatments sent offerings.

TA B L E 3.1 Using RFM analysis

Recency Frequency Monetary value

1 Over 12 months 1 More than once every 6 months 1 Less than £10

2 Within last 12 months 2 Every 6 months 2 £10–£50

3 Within last 6 months 3 Every 3 months 3 £50–£100

4 Within last 3 months 4 Every 2 months 4 £100–£200

5 Within last 1 months 5 Monthly 5 More than £200

F I G U R E 3.4 Types of data that can be collected from customers

CRM System Profile

Customer ID Interests
Subscription info Geo location
Renewal date Device
Lifetime value Age
Demographics Gender
Credit score Propensity to buy

Transaction On-Site Behav.

Order ID Click-path
Visitor ID Pages viewed
Products purchased Visitor_ID: Duration
Recency 26uqzjjkfmzcl
Frequency
pattern Exposures
Attributed 3rd-party Display
conversion Databases Email opens
Events/promos eXelate
Registration data: Blue
Name, Address... Net mining

SOURCE: PR Smith’s SOSTAC® Guide to The Perfect Digital Marketing Plan (2019)
 100 Part One | Communications Background and Theories

F I G U R E 3.5 Digital body language and marketing automation

How can we + Big Data What pages/

help them with their products
next steps? = MA are they most
interested in?
Add Social Data
How interested
Add 3rd-party are they?
Data (databases) (click behaviour)

Progressive Have they

Profiling (forms) been to this site
before?
Digital Body
Augmenting
Profiles
Language
(click behaviour) & Any past
Marketing purchases?

What do we know Automation ® PR Smith 2014

about them from www.PRSmith.org
the CRM system?

SOURCE: PR Smith’s SOSTAC® Guide to The Perfect Digital Marketing Plan (2019)

There is a lot of other useful data worth collecting ●● 5 per cent of customers have made three or
also, such as promotions history or responses to spe- more purchases in the past year.
cific promotions, share of wallet or customer share
When marketers identify their customers’ purchas-
(potential spend), timing of spend and more. In B2B,
ing cycles, they can increase sales significantly, by
we are interested in business type (standard indus-
targeting customers with attractive offers just ­before
trial classification (SIC) codes), size of business, hold-
they start their next search. Delaying this by a
ing companies and subsidiaries, competitive products
month or a week reduces the probability of pur-
bought, etc. Customers can be segmented by their
chase, because once they start searching, customers
activity or responsiveness levels, and then strategies
explore competitive offers. Data mining reveals the
to engage them can be developed. For example,
average purchasing cycle and subsequently identi-
Novo (2004) recommends the use of hurdle rates,
fies those customer segments that are about to start
which are the percentage of customers in a group (or
their buying process again. The database can then
segment) who have completed an action. Hurdle
automatically trigger an email or direct mail or
rates can then be used to compare the engagement of
­telephone call to a customer (once certain sets of
different groups or to set targets to increase engage-
rules are applied). For example, a computer com-
ment with online channels, as the examples of hurdle
pany mined its database to identify individual pur-
rates below show:
chasing cycles and see how frequently different
●● 60 per cent of registrants have logged on to types of customers replaced their PCs. Once the fre-
the system in the past year; quency was identified, the company started sending
●● 30 per cent have clicked through on email in catalogues and discount offers inside the buying
the past year; frame, with a 95 per cent confidence level, ie 95 per
cent of the prospects were just about to start search-
●● 20 per cent of customers have visited in the
ing for a new PC. Sales jumped up.
past six months;
 3 | Customer Relationship Management 101

Predictive analytics GDPR goes further as it insists that marketers gain

permission and also provide proof that ‘permission’
Data mining can also be used to analyse buying be-
had been granted by customers (was it recorded?).
haviour to identify clues for cross-selling and up-
Furthermore, proof of secure storage, data mainte-
selling. For example, a bank that monitors its
nance, data access and easy deletion (if the customer
customers’ spending may identify a segment of cus-
opts out at any time) must be ensured. For more on
tomers buying products from Mothercare, which
GDPR see p 299.
suggests they have young children. This can be com-
bined with typical profile information such as age
and marital status to further identify a cluster, or
segment, of the bank’s customers who might be
likely to consider buying a bigger car (as their fam-
CRM implementation
ily is growing). The bank’s subsequent offers of a and agile planning
car loan might receive a 30 per cent conversion rate
(request more information, call the bank, register an
interest or take out an actual loan).
Agile planning
After the brief is issued, several supplier tenders are
reviewed and researched. These solutions may be
Data analytics treble conversion ratios off-the-shelf, tailor-made or a mixture. When a
CRM system is selected, agile planning is used. This
Wolters Kluwer UK provides publications such as means that working systems are delivered in short
Croner’s information and consulting services that bursts, while checking that the system is robust. A
help businesses and professionals comply with pilot group of customers are selected with core,
constantly changing laws in key areas including tax well-understood needs. The system’s functionality is
and accountancy, health and safety, and human tested to see if it helps customers. After this, sales
resources. The company has annual revenues of functionality, then service, then marketing function-
ality are tested.
around €3.7 billion and employs over 19,000 people.
The benefits of a phased (or agile) approach are:
After they installed and employed SAS Analytics,
ROI on marketing spend increased threefold; ●● Staff and customers are ‘helped’ immediately.
customer retention rates increased from 75 to 83 The system is used to see if it actually helps
per cent; improved efficiency and targeting meant customers with tasks that can be implemented
reduced marketing headcount and costs; and in quickly, and whether staff can easily and
customer acquisition, sales conversion rates quickly start using the system. (Customer
improved from 1 in 33 (3 per cent conversion) to 1 in tasks and needs have been identified in
11 (9 per cent conversion). The overall project ROI research previously carried out. This results in
ratio was 2.25:1. a much quicker buy-in from staff.)
●● As customers interact with the system, it
gives business analysts and implementers an
iterative test bed, while still delivering value
GDPR compliance to customers.
The General Data Protection Regulation protects ●● Major changes often require major
customers from misuse of their data and the disruption. For example, if you develop a
­customer-sensitive culture that it demands is similar massive CRM system over two years, the
to the ‘permission marketing’ originally defined by roll-out is often extremely disruptive,
Seth Godin in 1999. GDPR subsequently intro- sometimes resulting in complete failure. A
duced these ethical demands as an absolute neces- system with limited functionality is quicker
sity when it became law in 2018. Godin’s Permission and easier to introduce.
Marketing originally said that marketers must first ●● The best business analysts and project
gain customers’ permission to speak to them; then managers often find it difficult to articulate
they develop trust, sales and, ultimately, loyalty. system requirements if users are naive in
 102 Part One | Communications Background and Theories

their use of (CRM) databases. Again, limited

functionality helps users experience the Using SOS + 3Ms in a brief
system easily and it is then possible to
identify missing features or functions. Taken from the SOSTAC® marketing planning (see
Chapter 9), SOS + 3Ms helps briefings.
Scoping and costing can be difficult, and always re- SOS stands for situation (what kind of CRM do
quire strong leadership to decide which tasks and
we have now and why does it need improving?),
functions should be included (and which may have
objectives (what are we trying to achieve with the
to be postponed). A ‘feature score’ can help to make
new CRM system?) and strategy (how does CRM
tough decisions:
integrate with all the company’s operations and
●● impact to the business (efficiency, revenue); improve the overall CX?).
●● ease of implementation; The 3Ms are money (the budgets required for
●● completeness of understanding. software licences plus training and motivation
schemes to ensure staff buy into the new system),
As the early iterations of the new CRM system start minutes (the timescales required to specify the
to reveal some ROI, incremental budget may be- brief, source it, test it, modify it, train the team and
come easier to acquire. roll out the system), and men/women (who will
champion the project, do the work and be involved
in data capture, analysis and use).
Writing a CRM brief
Careful thought and considerable advice are needed
when setting up an initial CRM system. It requires
vision, strong leadership, CRM experience, inte- Beware of scope creep
grated skills and an integrated team. When choos- Scope creep destroys projects. Finally, when you’ve
ing an initial CRM system, you need to consider the done your research, discussed everything, written up
current and future requirements. This involves: a detailed brief, got it signed off by the key people
●● objective; and issued it to a supplier or several suppliers, some
member of staff thinks of an additional function or
●● scenarios;
feature, albeit really quite helpful, and asks for it to
●● contact strategies; be included in the brief. This is scope creep. It delays
●● communications tools. projects, and allows suppliers to be late with deliv-
ery (‘you changed the brief’) and to charge a lot
Objective means purpose. What are you trying to
more money. Although it’s tempting to keep adding
achieve with a new CRM system (customer reten-
extra ideas, a CRM project manager has got to be
tion, customer win-back, customer acquisition,
strong and comprehensive in the initial exploratory
complaint processing or customer feedback)? How
discussions and ensure everyone knows that this is
can it help customers? Then how can it help you
the last chance to discuss the brief before it goes out
and your team? What kind of scenarios does this
to tender, because once it goes out it stays out.
involve (customer feedback, suggestions, com-
plaints, enquiries, sales – all of these can be online
and offline, or on a telephone line)? Is the system
Reverse scope creep
designed to facilitate ‘welcome cycles’ (welcome let-
ters and new member offers), up-selling (moving the
Scope creep can be even more complex when
customer on to higher quality levels), cross-selling
(other products or services) and reactivation (of flaws in the initial scope emerge during the testing
previous customers), all of which help to nurture phase. It takes even stronger leaders to juggle
the relationship? What kind of contact strategies additional (essential) requirements while parking,
might this involve? What kind of marketing tools or postponing, other requirements (functions and
will generate the data, eg email, snail mail, out- features) so that the initial budget and deadline
bound telemarketing, inbound telemarketing, sales are met.
teams and website dialogue?
 3 | Customer Relationship Management 103

Project leader ●● the set-up costs of the system;

●● the type of system;
A strong CRM project leader is also required to
nurture an interdisciplinary team. The project team ●● the scope of the system;
comprises different users of the system, analysts to ●● the size of the system;
understand their requirements, technical staff to ●● the choice made about the database
create the system and a project manager with suffi- management system;
cient time to devote to the job. You’ve got to involve
●● the maintenance programme;
all departments that may use the CRM system,
from customer services, sales and marketing to fi- ●● where the physical database management
nance (invoicing), admin, production and quality system is geographically located.
control. Don’t forget IT, but we strongly recom- It is a complex job but, once all these variables are
mend that marketers must take control, not IT – IT taken into consideration, a task breakdown can be
simply supplies the service expertise. It rarely has a performed, and analysis, design, set-up, mainte-
customer focus. Remember, the primary reason is to nance and running costs can be calculated.
help customers to do business with you. This is not
a technology-driven project. It has to be a customer-
driven project with measurable customer criteria,
such as increased sales, satisfaction, referrals, etc. Data integration and data mining costs

Costs can vary from company to company and

projects can range from several hundred thousand
Seven ways to achieve exceptional customer records to tens of millions. A data
customer service integration, data mining campaign optimization and
a full direct marketing suite from companies like
1 Make customer service a priority for the whole SAS range from £500,000 to £5 million, with social
company. It’s not just the department. media customer link analysis starting at around
2 Empower your customer service reps. Rarely £250,000.
should they have to escalate a customer’s issue
to a supervisor.

3 Fire customers who are insatiable (cannot be What’s missing is customer service staff, who are a
satisfied) or abuse your employees. key component, particularly when they are handling
wide-ranging, non-standard requests or complaints.
4 Don’t measure call times; don’t upsell; don’t use Here’s a crucial question: how many customer s­ ervice
scripts. staff are required?
The other key question is: how long does it take
5 Don’t hide your phone number. You want to talk
to set up a CRM system? The variables are similar
to customers.
to those for cost:
6 Show the cost of handling customers’ calls as
●● time allowed for the investigative stage;
an investment in marketing, not an expense.
●● time allowed for design;
7 Celebrate great service by telling exceptional ●● time for writing programmes;
stories to the entire company.
●● time for data capture, reassessment and
Hsieh (2010)
input;
●● time for trials, piloting, testing and
debugging.
Costs and timescales As already mentioned, agile planning accelerates this
When it comes to the crunch question of ‘How whole process by using a more iterative planning
much does it all cost?’ there are many variables to process – getting a basic system working, followed
consider: by improvement tweaks, testing, releasing and so on.
 104 Part One | Communications Background and Theories

Measuring CRM success misleading. For example, an increasingly high cus-

tomer care score (say up from 84 per cent to 92 per
Since data is an asset and data is also central to cent) may seem good, but it ignores two critical
CRM success, one of the toughest jobs is to know elements. Firstly, which service components are
which data matters most. Some customers will give very important to customers? The ultimate goal is
incorrect information, consciously or unconsciously. to score 5 out of 5 ratings for all those customer
Some staff (including sales people) input data incor- service components given an importance rating of
rectly. Other staff leave data fields empty. Measuring 5 by the customer. Secondly, ‘how do customers
the quality, cleanliness and completeness of data is rate the experience in comparison to that from
worthwhile. Marketers and data managers have to competitors?’, which brings us to the net promoter
come up with ways to acquire the correct and rele- score (NPS).
vant information in the first place and then make it
useful to the organization.
The net promoter score
Some authors are even suspicious of t­ hree-dimensional
customer satisfaction scores, as they believe conven-
The customer cube tional customer satisfaction scores ‘typically only
draw responses from the bored, the lonely and the
One-dimensional customer surveys usually rate seriously aggrieved’ (Reichheld and Allen, 2006).
product quality, after-sales service, maybe price, The key, they suggest, is to ask customers one simple
etc with 1 being extremely dissatisfied, 2 question: ‘On a scale of 1 to 10, how likely is it that
dissatisfied, 3 neutral, 4 satisfied, and 5 completely you would recommend us to a friend or a colleague?’
satisfied. This ignores how the customer ranks the where 1 is ‘never’ and 10 is ‘always’. Calculate the
importance of each variable. NPS by counting the percentage of unhappy (‘de-
Two-dimensional customer surveys weight tractors’) customers (who give scores between 1–6)
these satisfaction factors according to how from the percentage who are very happy (‘loyal pro-
important they are to the customer: 1 is not moters’) customers (who give scores of 9 or 10). The
important, 2 of minor importance, 3 fairly important, 7 and 8 scores are ignored. Then subtract percentage
4 very important, and 5 essential. However, this of detractors from the percentage of promoters to
ignores how customers compare the brand to those get your NPS. Some critics say that the NPS single
of competitors. item question cannot be a better predictor of busi-
Three-dimensional customer surveys also ask ness growth than a more comprehensive survey.
customers to rate the organization versus the However, it is used – Apple and Google have an NPS
competition for each customer service component: of 74 per cent and 73 per cent respectively (Curragh
1 is significantly worse, 2 somewhat worse, 3 about 2012). Other marketing influencers, like Hubspot,
the same, 4 somewhat better, and 5 significantly
believe NPS can drive a business in the right d­ irection
(DeMere, 2019).
better. The net promoter score is an excellent
example of this (see below).

Accountants cannot distinguish between

Measuring customer satisfaction good and bad profits
Call centre agents’ performance is often measured
‘Business measures success based on profits
by number of calls taken. This ignores customer sat-
but accountants cannot distinguish between a
isfaction, although customer service is a stated aim
dollar of bad, customer abusive, growth-stifling
of many companies. Many marketing managers
view call centres as a means of gathering customer profits and a dollar of good, loyalty-enhancing,
data rather than as a highly influential ­brand-building growth-accelerating profits.’
‘brand moment’. Reichheld and Allen (2006)
Those marketers who do measure customer
care also need to tread cautiously, as it can be
 3 | Customer Relationship Management 105

●● consolidate technologies, ensuring consistent

Climbing the Ladder of Engagement with clean data, aligning disparate silos;
high NPS ●● develop a process that delivered a
standardized execution;
O2 created a platform that helps customers to
suggest improvements to the service and to help
●● design and approve workflows, consolidate
templates.
other customers. Customers earn community
recognition and points-based rewards. Right from the start, Fujitsu knew they had to get
buy-in from all internal stakeholders from top to
‘According to Giff Gaff, customers solve 95 per
bottom of the business. These Fujitsu slides (Figures
cent of questions and most questions are
3.6 to 3.10) explain how leaders (C suite), external
answered in three minutes or less. What is most partner suppliers (Marketo), internal marketers and
revealing is that Giff Gaff enjoys a net promoter external partner consultants (CleverTouch) all had
score of 73 per cent (a measurement that crystal clear roles to play in this significant part of
indicates what proportion of customers are Fujitsu’s digital transformation – introducing and
promoters versus detractors). As a comparison, embracing marketing automation.
Apple and Google have an NPS of 74 per cent
and 73 per cent respectively. Giff Gaff has also
responded to customer suggestions, F I G U R E 3 . 6 Marketing automation
implementing over 100 improvements to date, stakeholders: C suite staff and leaders must
including changes to the pricing structure.’ support MA
Curragh (2012)

Internal marketing
We have mentioned it already – without internal
marketing even the best planned projects fail,
whether CRM or marketing automation. Internal
marketing ensures excellence of execution. Internal
marketing identifies fears, phobias and barriers that
can hinder the introduction of a new, or even just
improved, CRM system. Internal marketing com-
prises: motivation, communication and training
which, in turn, require resources to ensure the suc-
cessful launch and ongoing operation of a market- F I G U R E 3 . 7 Marketing automation
ing automation system and/or a CRM system. stakeholders: internal champions must be
Here’s an example of the importance of getting
‘buy-in from all internal stakeholders’ for Fujitsu’s identified and empowered
new global marketing automation project. It starts
with leaders (see Figure 3.6).
Fujitsu’s ambitious MA was developed for global
use with over 30 countries having little or no MA
execution, awareness or skills and each using a mul-
titude of different tools, technologies, processes and
standards. They suffered from a lack of transpar-
ency, consistency and oversight as well as a lack of
insights. So they worked with UK-based CleverTouch.
com to:
 106 Part One | Communications Background and Theories

F I G U R E 3.8 Marketing automation This major global MA programme, designed to de-

liver better marketing qualified leads to sales peo-
stakeholders: marketing team must be trained ple, acknowledges, early on, the importance of
and motivated internal marketing to ensure ‘buy-in’ from all stake-
holders, ensuring future coaching and training are
embraced by staff.

Coaching to improve not reporting to

inspect

Managers provide coaching to improve, not

reporting to inspect. The pivotal role in driving
CRM success is not individual salespeople. It’s
sales management. They will determine how the
sales team uses and experiences the CRM. If
they use it solely to check on the amount of
F I G U R E 3.9 Marketing automation activity, call volume, or other measures of
efficiency, it’s of low value to the sales team and
requires working with partners, CleverTouch, as
likely be rejected or filled with fictional data.
an extension of Fujitsu team Instead use it as a tool to jointly create
strategies for major opportunities, and help the
sales team to maximize opportunities by
coaching them throughout the sales process.

As with any aspect of marketing communications,

internal marketing helps your marketing teams to
understand, embrace and deliver new marketing
initiatives. None more so than CRM and MA.
Without internal marketing, these initiatives will
fail. With internal marketing, the chances of success
increase significantly.

F I G U R E 3.10 Three key takeaways

CRM summary and challenges
CRM is a strategic issue requiring a long-term per-
spective. Winning a sale is short-term transactional
marketing. Building a relationship where the customer
comes back again and again is long-term strategy.
Building good customer relations requires a cultural
shift to ensure that the whole organization wants to
help customers. Slow CRM projects that take several
years to research, develop, test and launch, are being
replaced by a more agile planning approach, to get
them up and running more quickly. There will always
be some tension between the pressure to hit the short-
term monthly and quarterly sales (and profit) targets
versus the longer-term customer relations scores.
Marketers need to e­ ducate boards about how CRM,
in the long term, grows quarterly sales and profits.
 3 | Customer Relationship Management 107

The shift to becoming a relationship-building or-

ROI of customer satisfaction ganization can start by asking how the organization
or the brand can help customers even more than it
‘In fact, when we looked at the top 100 e-retailers, does now. CRM is big business and needs careful
we saw that increasing satisfaction by just one attention to tiny details, but with a clear vision of
point drove over $112 million in additional sales’ nurturing prospects into customers and customers
(Atchison, 2008). That was over ten years ago. into lifetime customers. Although CRM will help
What would increasing satisfaction, or perhaps short-term results, its real potential is in the long-
your NPS score, by ‘1’ be worth in sales to your term future of the business as lifetime relationships
organization today? with customers are grown.

Key points from Chapter 3

●● Relationship marketing (and CRM) can create ●● CRM requires resources and a disciplined set of
competitive advantage. processes.
●● Marketing automation generates leads that are ●● Many organizations allow scope creep and lack
then fed into the CRM system for conversion to of training and motivation to destroy their
sales. CRM.
●● CRM is ultimately all about nurturing long- ●● Although CRM can boost short-term results, it
term customers and brand building vs short- really is an investment in the long-term future
term sales growth. growth of an organization.
●● There is a disciplined approach to the CRM
planning process.

References and further reading

Allen, J, Reichheld, F and Hamilton, B (2005) The Chaffey, D and Smith, PR (2013) Emarketing
three ‘Ds’ of customer experience, Harvard Excellence, 4th edn, Routledge, London
Business School Working Knowledge Chaffey, D and Smith, PR (2017) Digital Marketing
Atchison, S (2008) The ROI of customer satisfaction, Excellence, 5th edn, Routledge, Abingdon
Interview with Larry Freed, President and CEO of Considine, R and Raphel, M (1981) The Great
ForeSee Results, ClickZ, 24 July Brain Robbery, The Great Brain Robbery,
August, A (2002) Smashing time for Chinese Pasadena, CA
consumers, The Times, 14 March Creak, T (2018) The simplification of marketing
Bi, F (2016) Closed-loop reporting and why it matters automation, Fujitsu presented at Clever-Touch.
to your company, Salesforce Blog, 10 November com (archived at https://perma.cc/T8CH-98N7)
Bird, D (1989) Commonsense Direct Marketing, 2nd Simplification and smarter adoption event,
edn, Kogan Page, London November
Brandi, J (2010) Customer sensitivity quotient Curragh, A (2012) The future of customer service:
[online] www.returnonhappiness.com (archived at The rise of the social consumer, Social Media
https://perma.cc/5QET-VRGP) Leadership Forum 2012, ItsOpen [online] www.
Brann, C (1984) Cost-Effective Direct Marketing: By itsopen.co.uk (archived at https://perma.cc/
mail, telephone and direct response advertising, H9UT-SRAD)
Collectors’ Books, Cirencester DB2 (1997) IBM Developer Works
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DeMere, N (2019) 5 interesting ways real companies McGovern, G (2014) The complexity-simplicity trade
use net promoter score results, Hubspot, 11 off, Gerry McGovern//New Thinking, 9 March
Direct Marketing Centre (1992) The Practitioner [online]http://gerrymcgovern.com/the-complexity-
Guide to Direct Marketing, Direct Marketing simplicity-trade-off/ (archived at https://perma.cc/
Centre, London ZYF3-W5HV)
dunnhumby (2006) The dunnhumby Way, Minsky, L and Quesenberry, K (2016) How B2B sales
dunnhumby, London can benefit from social selling, Harvard Business
Earls, K (2002) Welcome to the Creative Age, Wiley, Review, 10 November
Chichester Mitchell, A (2004) Heart of the matter, The Markets,
Edinger, S (2018) Why CRM projects fail and how to 3 June
make them more successful, HBR, 20 December MORI (2003) Managing your customer insight
Exhibition Venues Association (2000) UK Exhibition capability and the drivers for change – client
Facts, Vol 12, Exhibition Venues Association, managed, cosourced, insourced or outsourced – a
Mayfield, East Sussex, February survey of UK FTSE 100 organisations,
Forrester Research (2009) Answers to Five Frequently Commissioned by Detica
Asked Questions about CRM Projects, Forrester Moriarty, R and Moran, U (1990) Managing hybrid
Research, Cambridge, MA systems, Harvard Business Review, November–
Gartner (2009) Trip Report: Gartner customer December
relationship management summit 2009, Gartner, Moriarty, R and Swartz, G (1989) Automation to
Stamford, CT boost sales and marketing, Harvard Business
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Schuster, New York NetProspex (2014) The State of Marketing Data:
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to extremes for customers, HBR, July/August into profits with a spreadsheet, 3rd edn, Jim Novo
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projectfailures/crm-failure-rates-2001-2009/4967 Smith, PR (2019) SOSTAC® Guide to The Perfect
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 3 | Customer Relationship Management 109

Tapp, A (2001) Principles of Direct and Database Ye, L (nd) Why your sales reps hate CRM software,
Marketing, 2nd edn, Financial Times/Prentice Hall, Hubspot
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Marketing Magazine, 9 February

Further information
British Quality Foundation Institute of Customer Service
Devonshire House Mill House
60 Goswell Road 8 Mill Street
London EC1M 7AD London SE1 2BA
Tel: +44 (0)20 7654 5000 Tel: +44(0)207 260 2620
www.bqf.org.uk www.instituteofcustomerservice.com

British Standards Institution

389 Chiswick High Road
London W4 4AL
Tel: +44 (0)20 8996 9000
Fax: +44 (0)20 8996 7001
www.bsigroup.com
 110

04
Buyer behaviour
LEARNING OBJECTIVES
By the end of this chapter you will be able to:
●● appreciate the complexity of buying behaviour;
●● understand the critical nature of a continual feed of information on customer
behaviour;
●● appreciate the emotional influences in decision-making;

●● compare and contrast various approaches to buying models;

●● apply the psychology of marketing by exploring different intervening variables.

Introduction to understanding customer Summary and conclusion 148

buying behaviour 111
Three key questions 111 Key points from Chapter 4 149
Who is the customer? 112
Appendix 4.1: Hofacker’s online information
Decision-making units 114
Why do they buy? 114 processing 150
The rational–emotional dichotomy 116
Appendix 4.2: The post-PC and, soon,
Unconscious fears and differing reasons 116
post-mobile customer 151
Brain science 118
How do they buy? 121 Appendix 4.3: Unilever’s five steps to change
behaviour 152
Models of buyer behaviour 126
Unilever publishes its marketing behaviour change
The buying process 126
principles Five Levers for Change to inspire
Psychological variables 134 sustainable living 152
Perception 134
Appendix 4.4: Use and convenience replace
The shift towards visual and social 136
Learning 140 trust and security 152
Motivation 142
References and further reading 153
Attitudes 145
Group influence 146 Further information 155
 4 | Buyer Behaviour 111

Why do they buy (or not buy) a particular

Introduction to ●●
brand or product?
understanding customer ●● How do they buy (how, when and where
do they buy)?
buying behaviour The second question, ‘Why do they buy?’, is the
The first step in formulating a marketing communi- most difficult to answer. It requires qualitative
cations strategy is to identify, analyse and ultimately rather than quantitative data (which often answers
understand the target market and its buying behav- the other questions also). Products and services are
iour. This chapter considers some of the theories and bought for a range of different reasons or benefits,
models that the marketing professional can use to some conscious, others unconscious, some rational,
help to communicate with and influence the buyer others emotional. Many buyers buy for a mixture of
at various stages before, during and after purchas- reasons. Consider a simple hamburger.
ing. Buying behaviour is often more complex than it
appears. Individuals are generally not very predict- The complex burger buyer
able, but, in the aggregate, groups of customers (or Why buy a burger? The answer might be as simple
percentages of markets) can be more ­predictable. as ‘Because I was hungry – so I bought a Big Mac.’
Whether in the industrial or consumer market, The real reason, however, may be quite different.
or whether they are buying products or services, Perhaps the buyer was in a receptive state for food
buyers respond in different ways to the barrage of because of the time of day. In the same way that a
marketing communications that are constantly stimulus such as a bell for Pavlov’s dogs (see
aimed at them. Theoretical frameworks borrowed ‘Learning’, p 140) can cause a dog to salivate, the
from psychology, sociology, social psychology, cul- highly visible yellow McDonald’s logo can act as a
tural anthropology and economics are now added stimulus to customers to remind them of food and
to by both commercial and academic market arouse feelings of hunger – even trigger salivation.
research into consumer and business-to-business Perhaps the yellow logo also acts as a cue, by trig-
buyer behaviour. All of this contributes to a better gering memories of the happy advertising images
understanding of customers. It is this understanding that are learned and stored in memory banks.
that helps to reveal what kind of marketing com- Choice is influenced by motivations. Consider
munications work best. that a teenage burger buyer may prefer McDonald’s
This chapter can provide only an outline of the because friends hang out there and it feels nice to be
vast amount of work written in this area. The com- in with the in-crowd (Maslow’s need to be accepted
plex burger buyer example below is used to open up or loved; see ‘Motivation’, p 142). Maybe the
some of the types of questions that need to be con- friendly image and the quick service simultaneously
sidered. The chapter then looks at types of p­ urchases satisfy two basic needs – love and hunger. Many
and the buying process (including some buying convenience purchases today are, in fact, about pur-
models) and then considers how the ‘intervening chasing time, ie buying a time-saving product or
variables’ of perception, motivation, learning, mem- service releases free time to do something else, to
ory, attitudes, beliefs, personality and group influ- satisfy another need. In fact, despite Facebook los-
ence can influence the communication process and, ing the trust of its customers (regarding personal
ultimately, buying behaviour. data), its convenience seems to be more important
as Facebook numbers just keep going up (see more
on ‘whether convenience trumps trust’ later). It is
Three key questions likely that buyers have many different reasons with
There are three key groups of questions that have to different orders of importance. Different segments
be answered before any marketing communications can seek many different reasons with different
can be carried out: orders of importance. But why don’t they go into a
Burger King restaurant or a fish and chip shop
●● Who is the buyer (target market profiles and
instead of a McDonald’s?
decision-making units)?
 112 Part One | Communications Background and Theories

Choice is often influenced by familiarity with the Impulse buying and repeat purchasing of low-cost
brand, or sometimes the level of trust in a brand fast food obviously differs from the buying behav-
name. Familiarity can be generated by actual experi- iour involved in the purchase of, say, a new audio
ence and/or increased awareness boosted by adver- system, a house, a holiday or a fleet of new cars for
tising, sponsorship, social media and PR. If one the company. It is likely that more ‘information
brand can get into the front of an individual’s mind search’ will occur than in the simple stimulus–­
(‘front-of-mind awareness’), then it will stand a bet- response buying model (McDonald’s yellow logo
ter chance of being chosen in a simple buying situa- stimulates the senses and arouses hunger, which
tion like this, unless of course the buyer has a generates the response – buy a Big Mac). Regular
preferred set of fast-food restaurants that specifically low-cost purchases are known as ‘routinized re-
exclude a particular brand. In this case the buyer is sponse behaviour’ and therefore have a different
usually prepared to search a little harder (even cross buying process than a high-cost, high-risk, irregular
the road) before satisfying the aroused need. purchase, which is known as a ‘high-involvement
Choice can be influenced by location – eg offer- purchase’. Some basic buying models help to ­explain
ing the right goods or services in the right place at the different types of purchases and the types of
the right time (convenience). Assuming this is all buying processes involved. These will be considered
supported by the right image (eg clean and friendly, later in this chapter.
nutritious, fast service and socially responsible),
then the marketing mix has succeeded in capturing
this segment of non-loyal burger buyers who have
no strong ‘preferred set’ of fast-food outlets.
Get customers to form new habits
More health-conscious buyers may prefer a nice with their mobile phone
warm cup of soup. Why? What motivates them?
Health? A desire to live longer? A fear of death? If a brand can become part of someone’s life it can
A desire to be fit, stay slim, look good (esteem) or develop into a habitual behaviour. Getting
just feel healthy and feel good? Or perhaps it’s customers to develop a new ‘mobile habit’ of using
cheaper than a burger? Or is it because everyone else your brand’s app will nurture stronger brand
in the office recommends the local delicatessen’s relationships and deliver a new form of competitive
soup (pressure to conform to group norms, desire to advantage. So, think mobile. As Meri Rosich (2015)
be accepted by a group – again, the need to be loved)? says: ‘Being mobile does not just mean being able
to access information – it also means a lot of new
habits. Habits that are only possible with an
We like soup, perhaps, because ever-present mobile device.’
of prenatal sensations of being
surrounded by amniotic fluid…
There are other possibilities that lie in the dark
Who is the customer?
depths of our vast information storage chambers So many organizations do not know who their cus-
otherwise known as our unconscious. For tomers are. This means they have no real idea who
example, in 1957 Vance Packard suggested that they are trying to target. This is high-risk marketing,
‘the deepest roots of our liking for warm, something akin to trying to find a needle in a hay-
nutritious and plentiful soup may lie in the stack. In fact, there is more chance of finding the
comfortable and secure unconscious prenatal needle, because at least we can describe what a
sensations of being surrounded by the amniotic ­needle looks like. But in marketing if we cannot
fluid in our mother’s womb’. ­describe (or profile) who the ideal customer is then
the organization is almost totally dependent on luck.
Packard (1957)
The few outstanding marketing companies out there
 4 | Buyer Behaviour 113

really do spend a lot of time and effort ­constantly income levels, education, spending habits do they
researching and analysing exactly who is their target have? You need information to build their profile to
market (in great detail), the needs of the target mar- tell you who they are. Once you know this (in great
ket (why they buy) and how they buy. It can be more detail), suddenly marketing to them gets a lot easier.
difficult online. Some people behave differently on-
line than offline. They assume different pseudonyms
and personalities. However, we have a multitude of
online analytics tools that help us to profile online Who are Generation ‘C’ or the ‘perpetuals’
customers. (perpetually connected customer)?
● Mostly young (27–38 year olds);
‘A 25-year-old New York stockbroker had an online ● well educated;
fling with a 21-year-old blue-eyed blonde Miami
beauty. They arranged to meet at JFK airport with ● tech fiends
red roses. The young New Yorker was horrified to ● average income $110,000+;
see a 70-year-old man sitting in a wheelchair,
wearing a red rose and roaring with laughter at ● spend most money online;
him.’ They used to tell this story when the internet ● 4/5 tablet + smart phone/phone;
emerged in the 1990s. Today, we can see a lot
more customer profile information, with the right ● use lots of apps;
analytics collected from our online profiles, ● connect everywhere, frequently;
activities (likes and shares) as well as our basic
click behaviour or ‘digital body language’. ● multitask and have fast-paced lives;
● first adopters of new technology;
● Generation C (for connectedness and also
Knowing who the customer is, is not as easy as it ‘consume, create and curate’).
seems. As discussed in Chapter 3, many businesses do Adapted from Pun (2013)
not know who their customers are. Despite having
large databases, they do not know how to put profiles
on their customers. Without this information, compa-
nies are shooting blind and just hoping for the best. Who are the visitors to your website? What is their
This is high-risk marketing. For example, a European profile? You can collect information via forms and
battery supplier noticed that its highest-margin, high- monitor click behaviour (digital body language).
tech batteries were frequently sold out in one of its Google analytics (and other packages) give you ag-
most powerful retailers. As it wanted to boost sales at gregate profile data (demographics, preferred con-
this retailer, it invested in a new point-of-sale. It as- tent, conversion rates etc). LinkedIn Insights and
sumed the high-tech batteries were bought by high- Facebook Insights also reveal visitor profile infor-
tech users. It designed a prominent new display rack mation. There are services today that will profile ap-
describing the batteries’ benefits for digital services. proximately 20 per cent of your visitors on B2B
Sales fell. Research revealed that ordinary (non-high- sites, delivering company name, telephone number,
tech) users were buying the batteries, as they per- address, number of employees, location, keywords
ceived the hi-tech batteries would simply last longer used and a lot more for individual visitors. See PR
(a fact not emphasized in the displays). The company Smith’s SOSTAC® guide to your perfect digital mar-
returned to the original displays, and sales went up by keting plan (2019) for these and many more ser-
20 per cent (Forsyth et al, 2006). vices and free tools that answer the ‘who, why and
If you are targeting ‘perpetuals’, those people how?’ customer questions.
who are 24/7 connected, what age are they? What
 114 Part One | Communications Background and Theories

Decision-making units real-time contextualized and personalized services

and information, the device knows, through the
As mentioned previously, there are often several in- aggregated filters of our location, our timeline and
dividuals involved in any one person’s decision to our social graph, what we did just before and what
purchase either consumer or industrial products we are expected to want, or do, later on (courtesy of
and services. The choice of a family car may be in- our online calendar, contacts database, web search
fluenced by parents, children, aunts, uncles, neigh- history and geo-location information). Very soon,
bours, friends, the Automobile Association and so context-based technology will predict our needs
on. Each may play a different role in the buying and desires. It is ‘aware’ because it holds a complete
process. Similarly, the purchase of a new factory record of our past actions and habits and of our
machine may have been instigated by a safety in- future intentions – where we are heading and who
spector, selected by a team of engineers, supervisors, we will meet via calendar entries, contacts, web/
the shop steward and production manager, agreed search history, etc (Frank, 2010).
by the board, bought or ordered by the purchasing
director and paid for by the financial director or
company secretary.
PAGES is a simple acronym that helps to build a It’s only a matter of time before
marketing communications decision-making unit your mobile device knows your
(DMU) checklist: every want and need
●● Purchaser: The person who orders the goods
or services. ‘I am on a business trip to Madrid, have just
finished my meetings and have three hours until
●● Adviser: Someone who is knowledgeable
my flight back to New York. My device “senses”
in the field.
I started moving and “knows” my schedule,
●● Gatekeeper: A secretary, receptionist or
therefore it asks me if I prefer to get a taxi to the
assistant who wants to protect his or her boss
airport, or if I prefer to stay in the city since the
from being besieged by marketing messages.
drive to the airport takes about 15 minutes. I
●● End user: Sometimes called ‘the customer’. choose the second option, slide the “ambient
●● Starter: The instigator or initiator. media streams” all the way from “privacy
The actual decision-maker is sometimes separate please” to “hit me with everything you’ve got”,
from the purchaser and/or the user. The payer and the device offers me all the tourist
(cheque authorizer) may be different to the pur- attractions around me, even a nearby coffee
chaser in the B2B environment. shop that has received exceptionally high ratings
Other, non-human, influencers include artificial (I love coffee). I choose the coffee shop, and as I
influencers (which you might find disturbing in am drinking my second cup, the device alerts me
Chapter 5) plus the intelligent shopping bot. They that my flight has been delayed by an hour and
can take many different forms. One form is the will board through gate E32. I drink another cup
futuristic 3D floating holograms that appear beside of coffee and read from my device the history of
the customer when the customer is in buying mode, Madrid until the next alert updates me that I
giving advice, or even haggling with the salesperson should call a taxi – immediately providing me
(if buying offline). Another influencer may well be with an application that directly books one.’
Internet of Things (IoT) connected devices including Frank (2010)
the intelligent fridge, which can offer the customer a
tempting online voucher to replace the last can of
Guinness with an alternative brand. Other ongoing
influencers are apps on your phone. My iPhone has
various apps: one identifies the prices at all petrol
Why do they buy?
stations near my location, and another scans in bar Marketing people really do need to know the rea-
codes and compares prices locally. As phones sons why buyers buy. More often than not, con-
become smarter, with predictive devices delivering sumers do not even know all of the real reasons
 4 | Buyer Behaviour 115

they buy (although they like to think that they are

­rational decision-makers). There is a range of con­
Why do people share content on social
scious and unconscious reasons underlying why media? Rational or emotional reasons?
people buy what they buy. Some reasons are more
important than others to a particular segment. It is worth asking your friends and colleagues why
Some reasons are rational, and some are emotional. they share. Keep asking ‘why?’ after each answer.
The split between the two is called the ‘emotional– And you will find some interesting answers.
rational dichotomy’. The late Robert Gouezeta, Ultimately, because we want to be loved, perhaps?
­former CEO of Coca-Cola, once said, ‘We sell on Or perhaps we admit we want to look good or
image. We don’t know how to sell on performance. maybe even build our own brand?
Everything we sell, we sell on image.’ So their cus- Mridu Khullar Relph reveals why we share from
tomers are persuaded emotionally. However, ask a neuroscience perspective:
anyone why they buy Coca-Cola and they’ll give
you rational reasons like ‘it tastes better’. This not ● 84 per cent share content that supported
always true. Often customers don’t know why they a particular cause;
buy what they buy. But marketers must know. ● 78 per cent share content to nurture relationships;
Marketers may know why customers buy (or don’t
buy), why they visit your website for a second time ● 73 per cent process information more deeply
(or why they never come back). Marketers need to when they share it with others;
know what is motivating these customers and new
● 69 per cent share content to feel involved in
prospect customers. Marketers need to know their
the world;
customers better than customers know themselves.
Marketers need to get deep insights into the minds ● 68 per cent share content that they feel helps
of their market. These deep insights can create them define themselves;
competitive advantage.
● 49 per cent share content as a form of
entertainment.
Why do they visit your website? Khullar Relph (2015)
What job do they want done?
Visitors arrive at your website hoping to achieve
something. Find a product, get more information,
find a phone number, maybe even buy a product. So, it’s not surprising that the former CEO of the
Each of these is a ‘job to be done’. Christensen et al world’s largest communications group, WPP, signed
(2016) extend this to buying any product or ser- a strategic global partnership with Twitter. Why?
vice: What job do customers want done or what Unique customer insights from Twitter. ‘The global
problem are they trying to solve? Customers don’t strategic partnership between WPP and Twitter al-
really buy products or services, they ‘hire’ them to lows the communications giant to integrate Twitter
do a ‘job’. Identify compensating behaviours, where data into its media and analytics platforms’ (Ibrahim
people are having to use work-arounds to get the 2013). The CEO, Martin Sorrell, said two-thirds of
job done. ‘A compensating behaviour is any action the benefits of Twitter are brand insights and cus-
someone performs to get a job done when there’s tomer research. So take note, WPP see Twitter as a
not a good product in the market to solve that listening tool and as an analytics tool more than an
job.’ Christensen continues: ‘A common theme in advertising tool with tremendous reach.
disruption is that the technology already exists, the Useful insights can be gleaned just from the
job to be done already exists, but the two have words, or phrases, people use to find firstly your
never been put together in an affordable and website and secondly things on your site. These
­accessible product.’ So often we find that the tech- words and phrases describe the benefits or features
nology often already exists and the job to be done they want. Consequently, they can also tell you
exists – it is just a question of putting the two what is missing on your site. Any analytics package
­together. reveals these key phrases that give you insights into
your visitors’ needs and wants.
 116 Part One | Communications Background and Theories

through the packaging, through the advertising

Identify your unspoken desires (with AI) and through your memory that you make. And
then you decide. Neurologist Donald Khan says
‘AI (when thoughtfully applied to protect the difference between emotion and reason is:
consumer privacy) can help marketers learn “Reason leads to conclusions – emotion leads
things even the most creative humans can’t. By to action.”
using natural language processing, for instance, Most of the research asks: “Do you
companies can figure out that a consumer is remember it? Do you get the brand benefits?”,
interested in sports cars without that person whereas the only question you need to ask in
ever having said so.’ research is: “Do you want to see it again? Does
Gregg et al (2018) this connect with you?”’
Roberts (2006a)

The rational–emotional dichotomy

This rational and emotional quagmire is not re- The bottom line is that marketing managers have
stricted to B2C (consumer) purchasing but applies constantly to ask the question: ‘Why are they buying
also to supposedly hard-nosed rational B2B (busi- or not buying our products or services?’ Customers
ness) customers. B2B customers buy into relation- need to be probed deeply to find the answers to
ships built on reliability, trust and personality questions like: ‘How do you feel about the brand?
(emotional factor). Meanwhile, Harley-Davidson Does the brand connect with you? How? How much
does not sell motorcycles, Starbucks do not sell cof- emotional connection have you got with the brand?’
fee, Club Med does not sell holidays, Guinness does The answers are not static, one-off pieces of research
not sell beer and Coca-Cola doesn’t sell cola. findings but a constant flow of information. Rational
Porsche buyers don’t buy a transport vehicle; many reasons need to be understood also. And remember:
of them buy a Porsche because they ‘simply want to reasons change; people change; markets change;
prove to themselves that they have the ability to buy competition and technology change. A valid reason
such a car’ (Kapferer, 2004). for buying a particular product yesterday may be-
Coca-Cola is not the best tasting cola, yet it com- come invalid tomorrow as reasons can change over
mands almost 1,000 per cent price premium and it’s time as new trends kick in. Likewise, an apparently
the world’s most popular cola. I know because the irrelevant feature yesterday may become a key rea-
then European Marketing Director of Coca-Cola, son for buying tomorrow. So we need continual re-
George Bradt told me that Coca-Cola was an infe- search because markets are continually moving
rior cola when measuring rational taste buds using away from products (and s­ ervices).
rational taste wheels to help consumers describe
taste. Coca-Cola aims to satisfy our deeper emo-
tional desires beyond rational taste. We all want to Unconscious fears and differing
be loved. You’ll never see a Coke ad with just
one person, or just one polar bear. And, for this inti- reasons
mate privilege that reflects our deep desires we are A company executive might buy a well-known
­prepared to pay the premium for Coca-Cola. brand of laptop rather than another brand simply
because of an unconscious fear of being fired for
buying a poor-quality laptop.
The difference between This is further complicated by the fact that some
emotion and reason customers buy the same product for different rea-
sons. For example, Americans may buy iPods because
‘You spend three seconds. You do not think iPods enable them to listen to their favourite music
about every benefit, every attribute, every without being disturbed, by others, while Japanese
demonstration. There’s an emotional connection buy them to listen to their favourite music without
disturbing others. Even an apparently simple product
 4 | Buyer Behaviour 117

like toothpaste presents an array of reasons for buy- In the UK many organizations use in-depth re­­
ing. The toothpaste manufacturers respond by sup- search; Guinness, for example, carries out in-depth
plying different brands of toothpaste offering differ­­­ent research to tap into drinkers’ deeply ingrained feel-
benefits to different segments who have different rea­ ings about the product. Feelings that customers can-
sons (needs or motives) for brushing their teeth. The not articulate. So, instead, they are asked to express
following toothpaste test explains. their (often unconscious) feelings through clay mod-
elling, picture completion and cartoon completion
techniques. This kind of research has revealed that
people associate natural goodness and quasi-­mystical
The toothpaste test qualities with the brand. Not something that the
average customer could articulate, when asked ‘why
Why do you buy toothpaste? ‘To keep teeth clean.’ do you drink Guinness?’ The section ‘Motivation’
‘To stop cavities and visits to dentist.’ ‘To keep a full (p 142) looks at in-depth feelings in more detail.
set of beautiful shining teeth.’ Some people will
admit that ‘it is habit’ or that ‘my parents taught me
always to clean my teeth’. All of these answers
suggest different benefits that different groups or Rational pricing?
segments want from their toothpaste, and so the
toothpaste suppliers oblige by positioning certain Why do cinemas have small $3.50, medium $5.25
brands as those that deliver a particular benefit. and large $5.50 sodas? If a cinema only has small
But when do you brush your teeth? First thing in the sodas for $3.50 and large sodas for $5.50, fewer
morning? If people were serious about seeking the large sodas are bought. But if they add in a medium
benefits they would carry a small portable brush size soda, it becomes a ‘decoy’, making you more
and use it after each meal. Why do most people likely to buy a large (as it appears better value).
brush first thing in the morning? To avoid bad Why does The Economist have a digital
breath (which destroys one’s confidence). Yet many subscription $59, a print subscription $125 and a
people do not like admitting it. The real reason is print plus digital subscription at $125? If only two
often hidden beneath the surface. options are available, most choose the cheaper
option. But three options, with one being a bad
option, ‘made people much more likely to choose
the more expensive print plus digital option. This is
The now classic Colgate ‘ring of confidence’ was called “asymmetric dominance” and it means that
one of the UK’s best-known toothpaste advertise- people gravitate toward the choice nearest a
ments. It was basically selling a tube of social confi- clearly inferior option’ (Stibel, 2018).
dence (the ad literally showed a ‘ring of confidence’
wrapped around smiling customers). This need to
be accepted is relatively obvious although not al-
ways admitted initially. There are, however, deeper
feelings, emotions, memories, moods, thoughts, be- In B2B markets studies reveal that emotion plays a
liefs and attitudes locked up inside the dark depths significant part when making buying decisions:
of our unconscious. Sigmund Freud suggested that
the mind was like an iceberg in so far as the tip rep- B2B buyers are people too, and just because
resents the conscious part of the mind while the they work in a corporate environment, it doesn’t
greater submerged part is the unconscious. Even mean they want to digest staid, dry and ‘typical’
long-forgotten childhood experiences can affect content. It also means that business marketers
buying behaviour, including that of hard-nosed US need to connect with their audience in a way that
empathizes with their pains and offers workable
industrial buyers (see ‘Mommy’s never coming
solutions to them in a language that is human and
back’, p 200). Some theories of motivation are dis-
that they can understand.
cussed further in this chapter (see the ‘Motivation’
Langton (2013)
section p 142).
 118 Part One | Communications Background and Theories

F I G U R E 4.1 How emotion influences B2B buying

In the quest to find the real reasons why people buy

Bloatware: Emotional wins over rational or don’t buy, why they visit a website repeatedly or
why they never come back, marketers continually
Forty-five per cent of software features are never seek to answer these sometimes complex ‘why’
used, 19 per cent are rarely used, and 16 per cent questions.
are sometimes used, so some software suppliers
launched ‘liteware’ with fewer functions and lower
prices. It flopped. Why? Because people didn’t Brain science
want to be without features that other people There is no doubt that conscious reasoning ac-
had – so bloatware prevails. counts for only a small part of our thinking. David
Penn (2005) talked about how brain science helps
 4 | Buyer Behaviour 119

to throw some light on the dark depths of emotion Now consider the types of buying situations in which
and consciousness: customers have different approaches to choosing
products and services.
By reuniting psychology with philosophy and
biology, it shifts the scientific focus back onto
the mysteries of consciousness and emotion. Nudge theory
Increasingly, we’ve come to understand that ‘Nudging is about orchestrating persuasion on a
unlocking the mystery of consciousness actually subconscious level by sidestepping arguments and
depends on figuring out the unconscious functions
leading people down the road’ says Ogilvy analyst
of the brain. Not Freud’s unconscious functions (a
Daniel Stauber. Nudge theory is a way of appealing
repository for repressed memories) but rather the
to people’s logic or emotions.
many things the brain does that are not available
The UK government had its own ‘Nudge Unit’
to consciousness. Unconscious processes include
most of what the brain does – we can often be (or Behavioural Insights Team), which was set up by
aware of what we’re doing when these things the former UK Prime Minister, David Cameron
happen, but much of the time consciousness is when he was in office in 2010 and subsequently pri-
informed after the fact through the cognitive vatized in 2014. Using insights from behavioural
unconscious. The area that’s generating hottest economics it finds canny, cost-effective ways of
debate is emotion, and its operation through the encouraging people to make choices ‘that are bene-
so-called emotional unconscious, and it’s here that ficial to them and society’. It has used these tech-
the fusion of biology and psychology is changing niques successfully with the HMRC to increase tax
the whole way we understand human behaviour. payments by tapping into peer group pressure (and
The unconscious explains most of what we feel, sending out reminder letters stating that most peo-
think and do. Conscious reasoning accounts for ple in the area have paid their tax). These subtle
only a small part of our ‘thinking’. nudge services are now being sold to other coun-
tries like Guatemala, who have seen income tax
Penn warns of the dangers of overemphasizing the
declaration increase by 52 per cent (Benady, 2014).
importance of brand awareness when he says: ‘It is
Communications agency Ogilvy has recently
clear that if we only base an assessment of effective-
invested six years collecting 800 studies using
ness [advertising effectiveness] on conscious recall,
behavioural economics, neuroscience and narrative
we potentially miss out on those [customers] who
theory to create a body of knowledge and customer
are positively affected yet have no conscious recall
insights that can be used by clients.
of having seen it [an ad or a product].’
Penn highlights the four big ideas in brain science:
●● Unconscious processes (either cognitive or Monkeynomics trace decision-making
emotional) account for most of what we
think, feel and do.
biases back to our ancient ancestors
●● Conscious reasoning may account for only a
via monkey studies
small part of our ‘thinking’, with most taking
place in the cognitive unconscious. ‘Dr Laurie Santos from Yale University spoke
about the behavioural economics of primates
●● Emotion precedes our conscious feelings and
or Monkeynomics and how we may trace our
works in tandem with rational thinking to
decision-making biases back to our ancient
help us make (better) decisions.
ancestors.
●● The interconnectedness of the thinking and Laurie immediately had the crowd
feeling parts of the brain facilitates the enraptured by the content of her talk. There is
interaction of rationality and emotion in something innately fascinating about learning
decision-making.
about our primate cousins and how similar our
Each one of these has fundamental implications for behaviour can be. For example, following the
marketing and research. Marketers must tread with financial crash Laurie explained how she
caution and measure the emotional aspects – some of became engrossed in finding out the evolutionary
which are often unconscious emotional c­ onnections. origins of the biases that led to the crash.
 120 Part One | Communications Background and Theories

Her lab at Yale had begun to teach capuchin We are what we shop
monkeys how to use money. In this monkey
Effectively, marketers have to know their custom-
market the experimenters could test how
ers better than the customers know themselves.
monkeys react given the same conditions as
This involves deep customer insights, sometimes
the financial crash. The idea being that gaining
generated by intense psychoanalysis, sometimes by
insight into how deeply rooted biases are in our employing anthropologists and sometimes by clev-
human brain can give us guidance on how we erly looking at customers through several lenses to
may design for them. get a deeper insight. What people buy reflects their
These monkey markets uncovered a range motivations and even their perceptions about
of previously unknown facts, such as how themselves.
monkeys and humans share the same aversion
to risk the poorer they become, how loss averse
they are and how sensitive they are to a fair
We are what we ‘like’ (on Facebook)
market. It also showed how innovative they Researchers at Cambridge University in the UK
could be, within approximately eight weeks the and Microsoft Research claim that they were able
monkeys had created a system for prostitution
to use ‘easily accessible digital records of behav-
iour, Face­book likes’, to accurately predict a wide
within the enclosure.’
range of a­ ttributes that included: sexual orienta-
Daniel Bennett, Choice Architect
tion, e­ thnicity, religious and political views, person-
at Ogilvy Change
ality traits, intelligence, happiness, use of addictive
substances, parental separation, age and gender
(Kosinski et al, 2013).
Ogilvy has worked with the Royal Borough of
Greenwich to reduce street violence by putting pic-
tures of the faces of local babies on shop shutters
(18 per cent reduction) and also The Times to de-
Facebook data analysis identifies
sign new ‘choice architecture that nudges people
into buying higher-priced subscriptions’. individual deep needs
Unilever brands (including Magnum and Comfort)
use nudge theory to boost participation in branded In the 2020 race, Facebook could theoretically
competitions by simply asking people to opt-out determine not only who are the 32,578 swing
rather than opt-in. ‘Orchestrating the choice archi- voters in Pennsylvania, but also what you
tecture’ like this resulted in a 65 per cent increase in need to tell each of them in order to swing
social sharing, saving Unilever chunks of budget them in your favour... The market is less
because of a reduced need for paid advertising. likely to self-regulate the explosive powers
of bio engineering and artificial intelligence.
Harari (2017)
Place cues on website landing pages
to trigger concepts unconsciously Note: In 2016, Trump worked with Cambridge
Analytica, who analysed Facebook data (what you
Robert Cialdini, author of the 1984 classic book like/didn’t like, shared, etc). Although this
Influence: The psychology of persuasion (Cialdini, subsequently shocked many, Trump delivered
2007) and many more books since, has suggested extremely relevant, tailored messages addressing
that marketers should place certain cues on the the very specific needs of very specific clusters of
landing pages of websites so that a particular people (analysed by their own Facebook
concept is triggered in the unconscious mind. He behaviour). See http://prsmith.org/blog/ for
continued: ‘What many marketers forget to do is two posts on how Trump won.
to establish the brand’s trustworthiness before
expecting the target market to adopt the product’
(Cialdini, 2014).
 4 | Buyer Behaviour 121

We are where we are and where How do they buy?

we have been
Types of buying situation
Basically, location-based marketing (explored in
Chapter 12) uses our physical location data (deter- The amount of time and effort that a buyer is pre-
mined by our mobile phone if location settings are pared to put into any particular purchase depends
turned on) and our previous locations to build a on the level of expenditure, the frequency of pur-
profile of who we are, what we do, what we like. chase and the perceived risk involved. Relatively
They can now layer this on top of actual browsing larger expenditure usually warrants greater delib-
behaviour also. eration during the search and evaluation phases. In
Top UK retailers vary their research techniques to consumer markets this buying process is classified
generate customer insights that they then apply to as ‘extensive problem solving’ (EPS) if the buyer has
their marketing immediately. Many combine loyalty no previous product experience and the purchase is
card data (on what customers are buying), browsing infrequent, expensive and/or risky. The situation
behaviour (what customers are considering) and is different where the buyer has some knowledge
survey research (why customers considered products and experience of, and familiarity with, a particular
but then did not buy). These mixed insights reveal product or service. This is called ‘limited problem
for example, that young mothers bought fewer baby solving’ (LPS). In the case of strong brand loyalty
products in Tesco stores because they trusted phar- for a habitually purchased product, routinized re-
macies more. Tesco subsequently l­aunc­hed a Baby sponse behaviour (RRB) can be identified by the
Club to provide expert advice and targeted coupons. repeat brand purchasing of convenience products
Its share of baby product sales in the UK grew from like baked beans. The buyer chooses quickly and
16 per cent to 24 per cent over three years (Forsyth has a low involvement with the purchase. EPS re-
et al, 2006). The Baby Club has now become part of quires high involvement from the buyer, which
the Tesco Club Card family. means that the buyer spends time and effort before
Tesco varies the individual store’s format to reflect actually deciding to buy a particular product or
the needs of its local customers (the magic marketing brand. This can be complicated by further advisers
formula). For example, stores located near large con- and influencers who form part of the d­ ecision-­making
centrations of affluent male professionals display unit. LPS requires lower levels of involvement than
more high-end home theatre equipment, specialized EPS but more than RRB.
financing and same-day delivery while stores closer Industrial buying is even more clearly influenced
to family areas feature softer colours, personal shop- by decision-making units, particularly when the
ping assistants, and kids-­orientated technology sec- purchase is considered large, infrequent or risky. As
tions. Marketers look at customers through a variety in consumer buying, types of purchase situation
of lenses. So knowing your customers really does pay also vary in industrial markets. A ‘new task’ buying
dividends. situation means what it says – the organization has
no experience of the product or service and is buy-
ing it for the first time. A ‘modified rebuy’ situation
is where the industrial buyer has some experience of
Know your customers intimately – their
the product or service, while a ‘straight rebuy’ is
hopes, dreams, fears and aspirations where the buyer, or purchasing department, buys on
a regular basis.
‘The job now is to be so intimate with
consumers, so empathetic with their hopes and
their dreams, their aspirations and their fears
Analytics reveal how customers buy
that we can develop revelations which we then Whatever the type of buying decision, marketers
put into creative departments and from great need to know: how do customers make their deci-
revelations awesome ideas will come, eg sions? What was their journey or route? How do they
T-Mobile UK – revelation – life is for sharing, the discover your site or your store? Channels i­nclude
advertising (pay per click and banner ads), social
power of tribes, the power of communities, and
media, direct mail, referral links (using your web url).
the power of all this social stuff.’
Here are 10 questions that we can now answer
Roberts (2009b)
using analytics:
 122 Part One | Communications Background and Theories

1 How do customers buy – what is their online Google Analytics and Multichannel Funnel
journey/what route did they travel (eg from reports provide an intriguing insight into how
Facebook to website or email to website)? customers buy. Just like sport, where an assist is
2 How many channels do your visitors use very valuable, so too some channels, whether ads,
and how long do they stay? email or social media, bring traffic that converts
to sales or registrations. These ‘assisting’ channels
3 Did customers move between online and
can be measured via an Assisted Conversions
offline?
Report. While the Top Path Report reveals the dif-
4 What stage are your visitors at in the ferent routes customers take before the conver-
buying process? sion, the Time Lag Report reveals the amount of
5 How many pages are ideal during a visit? time customers take from the first channel inter-
6 Which routes or channels bring you the action to conversion and Path Length Report
most traffic? shows the number of interactions customers had
with your channels. The Overview Report sum-
7 Which ones bring you the best traffic (that
marizes it all.
converts to say repeat sales)?
The buying process even differs between Google
8 When is the best time to post content and and Facebook users. On Google, potential customers
engage customers? go through a discovery phase during which they
9 What percentage of your visitors view your gather detailed and rich information, while on Face­
site on a mobile? book potential customers may post a message saying
10 Do customers see things differently on their that they are looking for a ‘new family people car-
mobile? rier’, and soon recommendations will flow in from
their friends, brands and third parties (Pun, 2013).
These questions are taken from the SOSTAC® guide This flow of information gathering can change the
to your perfect digital marketing plan (Smith, more traditional models of buyer behaviour, which
2019). There are many more questions answered we are about to explore.
here, including how to use many of the new free
tools available to marketers.

Independent research reveals how customers buy

the true value of social is significantly higher

Different channels (social vs website) = (Table 4.1).
different purchase behaviour Wolfgang’s report includes a comparison between
some Google research and some Facebook research,
According to Google Analytics, social media accounts
which shows the average conversion rate when
for 5 per cent of website traffic and 2 per cent of
engaging with social media is 4 per cent, which is
revenue. According to analysis by Wolfgang Digital,

TA B L E 4.1 Percentage of traffic and revenue generated by social media

Organic Paid search Direct Email Social Display Referral Other

Overall traffic 43% 18% 20% 4% 5% 1% 7% 3%

Overall revenue 38% 18% 19% 4% 2% 0% 17% 2%

SOURCE: Wolfgang Digital (2019)

 4 | Buyer Behaviour 123

double that of the website conversion rate of ●● Reaction = 4.9 per cent convert to a sale
approximately 2 per cent. And Facebook suggest
transactions with Facebook touchpoints are almost 8 ●● Message = 9.95 per cent convert to a sale
per cent. This is nearly four times the conversion rate Channel choice affects the number of visitors and level
of an average website (Sources: Facebook and of sales. For example, social media and website usage
Google). affect both the volume of traffic and the revenue value.
Wolfgang Digital analysed over 250 million website Now consider whether devices affect how we buy
sessions and over €500 million in online revenue over (Figure 4.3).
the 12 months from July 2017 to June 2018 to compile Fifty-three per cent of traffic to online stores
this report. comes via mobile devices, but this translates to just
32 per cent revenue. It seems that we go back to the
Do likes, shares, comments and messages desktop to complete order forms, or prefer more
impact sales? secure platforms rather than worry about security
issues with our mobile. Interestingly, revenue on mobile
Using Facebook Analytics data Wolfgang Digital (2019)
devices actually increased by 23 per cent during the 12
found that 3 per cent of the people who like your post
month period, which suggests (not shown in Figure 4.3)
will go ahead and purchase from you. The conversion
it is now becoming easier and more convenient for
rate increases to 4 per cent for a share, 4.67 per cent
people to press ‘buy’ on their smart phone because:
for a reaction, 4.9 per cent for a comment, and if the
user takes the time to message you it’s a whopping 1 There has been an increase in ‘shoppable posts’ on
9.95 per cent conversion rate. social media, allowing customers to click straight
through to buy a product they see on their feed.
●● Like = 3 per cent convert to a sale
2 Mobiles are perceived to be getting more secure.
●● Share = 4 per cent convert to a sale

F I G U R E 4.2 Average conversion rates when engaging with social media

SOCIAL ENGAGEMENT
CONVERSION RATE

WEBSITE
CONVERSION
RATE

TRANSACTIONS WITH
FACEBOOK TOUCHPOINT

REVENUE GENERATED
BY SOCIAL MEDIA

0% 1% 2% 3% 4% 5% 6% 7% 8%

According to Facebook According to Google

SOURCE: Wolfgang Digital (2019)

 124 Part One | Communications Background and Theories

F I G U R E 4.3 Percentage of traffic and revenue by device

% TRAFFIC BY DEVICE % REVENUE BY DEVICE

32%
37%
53% 56%

12%
10%

Desktop Tablet Mobile

SOURCE: Wolfgang Digital (2019)

Finally, desktops accounted for 37 per cent of traffic suggest that larger purchases are still being made via
but over half (56 per cent) of revenue, which might desktops rather than mobiles.

Customers process information surveyed did not know their email open rates, ie what
percentage actually open the emails (Burstein, 2013).
from different social media This information, or basic analytics, is available for
platforms differently free from most email systems. Equally important is to
know what devices your customers use to read
emails, your posts and peruse your website. How
‘People use social networks like Facebook and many use a mobile instead of a laptop? Professional
Twitter in many different ways for different marketers make it their business to know which
reasons. Twitter is mostly known as a place to words/images/colours/offers work better in emails,
find real-time information in a compact format, websites, apps as well as offline in direct mail, ads
but Pinterest is used in a completely different and exhibitions. It is even easier online as A/B testing
way. Most users on Pinterest are either looking is used constantly to learn what works best, then roll
it out and ultimately optimize the responses.
for ideas or browsing images related to topics
they like. If you try to lump all the social
networks together and send one update to all of Think mobile
them you will likely have information that is not
suited for any social network.’
How will customers use your information
Hagy (2013)
on their mobile?

‘Don’t deliver same “vanilla” experience to your

Marketers also need to know how customers process mobile customers. Personalize the experience.
information, eg how do they read their emails? Use information that is unique to smartphones
Surprisingly, approximately one-third of marketers and tablets (device type, operating system,
 4 | Buyer Behaviour 125

connection speed, location, and sensors, etc) to Get ready for ‘post mobile’
combine with information in the consumer’s
profile (preferences, time, behaviour, social We are already talking to Google, Siri, Alexa and
graph and offline data). This is the end of the era many more intelligent search engines. Soon we
of “one size fits all”.’ won’t be keying in words into search engines, we’ll
Pun (2013) just converse with them, whether they are
connected IoT devices, wearable technology, or
maybe even implanted (chips).

Can customers process your information on their

mobiles? Big clunky thumbs do not work well on
tiny icons or links. So be ‘mobile optimized’, or, as New currencies required: privacy,
some say, ‘optimize conversion paths for mobile’
(make it easy for your visitors, followers and cus- trust and time
tomers to use all of your marketing and services on Privacy, trust and time are new currencies that have
a mobile). We all know mobile is one of the biggest a very high value in customers’ minds. Customers
trends right now. So a lot of marketers are having are cautious about giving up private information.
their websites delivered in responsive and mobile- They are also busy and don’t like wasting time (if
friendly designs. Many stop there, assuming that you can save your customers time, they will like you
because the website looks great on a mobile that even more). They expect their privacy to be pro-
customers can easily interact with the brand. Not tected and GDPR law insists organizations must
true; there is much work still to be done. This is just protect customer data (and also be able to prove
the start of optimizing for mobiles. they are protecting it). Equally, customers resent
Here are five tips from Hubspot’s Ginny Soskey being asked for too much information or being
(2015): asked for information when they haven’t yet estab-
lished any relationship – so much so that some cus-
●● That blog post you wrote? The image file
tomers just fill in online forms incorrectly.
shouldn’t be so large that it slows down your
load time.
●● That CTA (call to action) at the end of a blog Do customers process information
post to download an ebook? It’d better be differently on mobile?
large enough for real fingers to tap.
●● That landing page form people have to fill The user experience (UX) on the mobile is unique,
out to receive that ebook? It should be easy as users process information differently when they
to fill out on a mobile. are on their mobiles. Why? Because they are
●● That ebook you put behind that landing usually multitasking and more likely to be
page form? It’s got to be easy to read – and interrupted. The small screen size means people
you’ll also want to send the person a don’t like reading lots of text, and therefore reading
follow-up email with that ebook so they can comprehension plummets.
access it on another device later on.
●● That email? It should be easy to read on a
device – no pinching or scrolling required.
And after someone clicks on that email to Trust
eventually buy something from you, your site Trust is increasingly important, as online customers
had better make it easy to get in touch with live in a dangerous environment of privacy invasion
your sales department and/or make a direct and identity theft. Surprisingly, many customers
purchase. trust a website more than a person. People trust well-
known and well-respected brands. Why else would
they give an unknown American their home address,
 126 Part One | Communications Background and Theories

credit card details, security code, money and time?

Trust. In the UK, several major brands score higher
Models of buyer behaviour
in trust than the church and the police. Well-managed
brands are trusted as long as their promise is never There are many different models that attempt to
broken. How does it feel when a website remembers model the buyer’s behaviour. Figure 4.4 shows how
your name? And when it remembers your prefer- a buyer in either an EPS or an LPS situation moves
ences? It seems customers are happy to have uncon- through the purchasing cycle or continuum. The
scious relationships with brands, robots and mac­hines basic model can be borrowed and used in industrial
as well as people. Enlightened companies remember markets also. It highlights some of the stages
information for customers, not just about them. This through which a potential buyer passes. Sources and
builds trust in the relationship. Ask: what is it about channels of information plus buying criteria can
a website that might attract a visitor to come back a also be identified, which in turn provide a checklist
second time and, ultimately, regularly revisit the site for the marketing plan.
and develop a relationship? Remember, the second
visit is the start of the relationship.
The buying process
The buying process can be complicated or simple,
Can you attract users back depending on the type of purchase. H
­ igh-involve­ment
to your website? purchase is where a customer spends a lot of time
researching and evaluating the choice of brand.
‘The best converting websites have the ability to Low involvement, on the other hand, is almost im-
attract that user back to their websites time and pulsive or habitual repeat buying of low-price items.
time again. As a result, they have thundered Let’s explore both.
ahead of their one-click-wonder competitors.’
Wolfgang Digital (2019) High-involvement purchase model
We can demonstrate this simple buying model
(Figure 4.4) by considering, say, the purchase of a
The perpetuals, who we mentioned earlier, are (they new car, which is a high-involvement buying pro-
think) immune to traditional marketing. Their de- cess (with extensive problem solving).
fault stance towards marketers is: I don’t trust you. Somewhere, somebody or something makes the
They resent banner ads but may put up with them if customer aware that he or she needs a new car. This
they offer a reward to watch the ad. They expect is known as problem recognition, which is followed
user-friendly personalized experiences across all de- by ‘information search’. This may include reading
vices and channels. As Pun (2013) says, obstacles ads and editorial in magazines, reviews and recom-
are unacceptable (eg tiny, impossible to navigate mendations online, visits to stores, discussion among
websites on mobile) and so marketers should think friends.
like a digital disrupter and think ‘about ways to in- Next comes evaluation. Leaflets, catalogues, ads
crease the frequency of interactions’ with perpet­ and discussions are amassed, and a set of criteria is
uals. ‘Pleasantly disrupt customers with digitalized further refined. This may include engine size, eco-
products that add value.’ friendliness, space, in-car facilities, number of doors,
shape, colour, delivery, guarantee, etc. Evaluation is
relatively easy today, with plenty of reviews and feed-
Simplify the world for your customers back available as well as price comparison websites
and apps. Many businesses now build ga­thering cus-
‘Simplify: create simple, user-friendly experiences tomer reviews into their post-sales service process.
for mobile consumers. Use digital to disrupt your Reviews are now pulled into Google search results;
customers’ lives with pleasant surprises. Provide you can see why companies want more reviews.
hassle-free conveniences for your customers.’ Finally, a decision is made to choose a particular
Pun (2013) car. It isn’t over yet. The chosen brand may be out of
 4 | Buyer Behaviour 127

stock or have a 12-week waiting list – in which case F I G U R E 4 . 4 A simple model of the
the communications mix has worked but the mar-
keting mix (distribution/place) has failed (if the cus-
buying process for a high-involvement purchase
tomer is not prepared to wait).
Regardless of which particular brand of car is
eventually purchased, a tiny sense of doubt often Problem recognition
trickles into the customer’s mind. This is called
‘post-purchase dissonance’ and it needs to be man-
aged to avoid large-scale product returns, cancella-
Information search
tions or complaints. It can be managed by reassuring
the buyer (with a congratulatory note, additional
advertising, after-sales service and, most of all, a
product or service that lives up to the promise made
Evaluation
in the advertising). And, if the product matches the
promise, then both repeat business and word-of-
mouth referrals are more likely to occur in the
longer run.
The simple buying model shown in Figure 4.4
serves as a useful checklist to see whether you are Decision
filling in all the communication gaps in the buying
process. Interestingly, many websites now use this
as a checklist to ensure that the site helps different
customers to move through different stages of their Buy
buying process. The model should not be hierarchi-
cal, since in reality, there are loops, eg between
information and evaluation, if the buyer learns Post-purchase
about new criteria not previously researched nor dissonance
considered.
This model is more relevant for a high-­involvement
purchase, whether extensive problem solving (con-
sumer) or new task (industrial). A routinized response
Dissatisfaction = Satisfaction = Loyalty
situation, like buying a Coca-Cola, is l­ ow-involvement, Brand rejection = Repeat purchase
and therefore it would not involve any lengthy decision-­
making process.
An alternative high-involvement purchase model
is suggested by Dave Chaffey (Smart Insights, 2014).
It starts with something that ‘triggers’ awareness of a lot of money. Customers walk into the store,
the need or want. This is followed by the Initial browse, find the right product, leave without buy-
Consideration Set (preferences and ­ pre-conceived ing, go online, price compare and buy from a com-
ideas), leading to the Zero Moment of Truth (ZMOT) petitor who perhaps doesn’t have the overhead costs
when the customer gets some information including of bricks and mortar retail stores on high streets.
price, performance, reviews, social media… to the
First Moment of Truth (a final shortlist of possible How John Lewis stop ‘showrooming’
suppliers) to Purchase Decision (the moment of pur-
chase) to the Second Moment of Truth (Figure 4.5). John Lewis has recognized the explosion in ‘show-
rooming’. Instead of battling this phenomenon, the
brand has installed wifi in its stores to allow price
Showrooming comparison and product research while in store.
Another high-involvement buying model is called They have also endeavoured to make the shopping
‘Showrooming’ (Figure 4.6), which can cost retailers experience more convenient and stress-free.
 128 Part One | Communications Background and Theories

F I G U R E 4.5 An alternative model

SOURCE: Smart Insights

 4 | Buyer Behaviour 129

F I G U R E 4.6 The showrooming buying process

Buying process
When showrooming
(High Involvement)

Problem identification Combined marketing communications

establishes the need for the product.

Information search Marcomms attracts the buyer into the store.

(B2B + specification + tender) They browse and find the product.

Evaluation Examine and try on several products.

Decision Choose the product.

Action/Purchase Leave the store (without buying).

Go online. Comparison shop. Buy elsewhere.

Normal post-sales follow up by competitor as they

Post sales
attempt to nurture a lifetime customer.

Low-involvement purchase model after awareness but before any purchasing behav-
iour actually occurs. The attitude may subse-
Low involvement can sometimes appear to be
quently be reinforced by first, the real CX (customer
thoughtless (impulsive) responses (purchases) to
experience) of buying and using the brand and sec-
stimuli (point-of-sale displays or well-designed
ond, any subsequent advertising or word-of-mouth
packaging). If attention can be grabbed, then some
communications.
brands can be bought, without much considered
Ehrenberg’s 1974 awareness trial reinforcement
thought processing. Basically, if you see the brand,
(ATR) model suggested that consumers become
you try it, and if you like it you rebuy it. Some ad-
aware of a brand, try it (buy it) and then are exposed
vertising aims to remind customers and reinforce
to reinforcement by advertising (or even the actual
the benefits of the brand – trying to create a rou­
brand experience) (Figure 4.7).
tinized response behaviour (RRB).
Trial can occur many months after an advertise-
Advertising can also reassure existing customers
ment has created awareness. Advertising here is also
that they have bought the right brand. This defen-
seen as defensive, in so far as it reassures existing
sive advertising (defending market share) reduces
buyers that they have made the right choice, as
any post-purchase dissonance (or worries) and also
opposed to advertising that might make them run
keeps the brand on the buyer’s shopping list (or
out and buy the advertised brand immediately.
‘considered set’ of brands).
Ehrenberg acknowledges that some advertising
In contrast with attitudes towards high-­
actually does prompt (or ‘nudge’) people to buy, as
involvement purchases, attitudes towards low-
demonstrated with his more explicit 1997 aware-
involvement brands can be formed after the brand
ness trial reinforcement plus occasional nudging
expe­r­ience and not before. In the more considered,
(ATR + N) model. Ehrenberg’s specific views differ
high-involvement purchases attitudes are formed
from many other approaches highlighted in this
 130 Part One | Communications Background and Theories

F I G U R E 4.7 The ATR model Marketers need to understand their customers’

buying process, whether online, offline or a mixture
of both. Dulux paints found that its brand share is
Awareness 11 per cent higher when customers choose their
paint colour at home rather than in-store. But 75
per cent of colour decisions are made in the store. It
therefore tried to lock people into a Dulux purchase
Trial before they visit a shop by creating a value-added
online experience whereby users can decorate a vir-
tual room (with colour coordination suggestions)
and receive swatches delivered free to their home
Reinforcement with directions to their nearest Dulux retailer.

Response hierarchy models

Although the ultimate objective for most marketing
chapter, yet his research findings are used by top managers is to build repeat purchases from profit­
blue-chip companies around the world. able customers, there are many stages between
Many other academics believe that different buy- creat­ing problem recognition or need arousal and
ing situations (high- and low-involvement) require purchase (as shown in Figure 4.5). The six different
different thought processes and timescales. Even communication models in Figure 4.8 show the se-
within the same product sector, different processes quence of mental stages through which buyers pass
can occur. Take grocery shopping. Australian aca- on their journey towards a purchase.
demics Rossiter and Percy (1996) identified differ- These models are sometimes called ‘message
ences in thought processes within the grocery sector. models’ or ‘response hierarchy models’, since they
They suggested that most grocery brands (65 per help to prioritize the communication objectives by
cent) need recognition at the point of purchase, determining whether a cognitive (eg awareness),
since buyers tend to see the brand first and then affective (eg like or dislike) or behavioural response
realize they want it. Less than 10 seconds elapse (buy or not buy) is required, ie whether the organi-
between recognition and putting the product into zation wants to create awareness in the target audi-
the trolley. The other 35 per cent of groceries are ence’s mind, or to change an attitude, or to act in
chosen in advance, so brand awareness (before pur- some way (buy, vote, participate, etc). (See ‘Attitudes’
chase) is important for these. p 145 for a more detailed explanation of the cogni-
tive, affective and behavioural/conative elements of
an attitude.) Message models are helpful but not
Relief purchases vs reward conclusive, since 1) not all buyers go through all
purchases stages, 2) the stages do not necessarily occur in a
It does not stop there. There are more differences hierarchical sequence, and 3) impulse purchases
depending on whether the purchase is a relief pur- compress the process.
chase (to solve a problem such as dirty clothes) or a Although expanding repeat purchase (loyal
reward purchase (to provide gratification, like ice behaviour) from profitable customers is the ulti-
cream). The relief purchases require a more rational mate marketing goal, a PR campaign, advertisement
approach and the reward purchases a more emo- or sales promotion may have a tactical objective
tional approach. So each market and each brand focusing on a particular stage in the above models,
needs to be carefully analysed. Robert Shaw eg increasing awareness, changing an attitude or
(1997/98) pointed out that ‘many different meas- generating trial. In fact, Hofacker’s (2001) online
ures such as brand knowledge, esteem, relevance or information processing model shows how online
perceived quality may need to be monitored’. Any messages from banner ads and websites are pro-
marketing manager, whether industrial or con- cessed (see Appendix 4.1 on p 150 for more detail).
sumer, product or service, has constantly to watch These hierarchical communication models iden-
the market, its segments and how it is fragmenting. tify the stages through which buyers generally pass.
 4 | Buyer Behaviour 131

An understanding of these stages helps to plan appro- obtain more information before making a decision
priate marketing communications. The DAGMAR to buy. Each hierarchical model really requires a
(defining advertising goals for measuring advertising loop from the ‘last’ stage up to the first stage – to
results) model in Figure 4.8 was created to encourage show that the sale (action stage) is not the end stage,
measurable objectives for each stage of the communi- but rather the beginning of an ongoing dialogue
cations process. that nurtures a lifetime customer relationship.
Some of the stages can sometimes occur simulta- The models also ignore the mind’s ‘intervening
neously and/or instantaneously, as in the case of an variables’, some of which are identified in both the
impulse purchase. Buyers can also avoid moving in ‘personal-variable models’ of Fishbein (1975) and
a hierarchy of stages when making a more consid- the ‘complex models’ of Howard and Sheth (1969)
ered purchase (extended problem solving). For and Engel et al (1978). The complex models, do, in
example, during the evaluation stage a potential fact, allow for both loops and the complexities of
buyer may go back to the information stage to the intervening variables (see p 133).

F I G U R E 4.8 Response hierarchy models

Howard & Online

Lavidge
Stage AIDA Adoption DAGMAR Sheth information
& Steiner
(excerpt) processing

Exposure

Unawareness Attention Attention

Awareness Awareness Awareness

Cognitive Attention

Knowledge

Comprehension Comprehension Comprehension

and perception

Interest Liking Interest

Affective Preference

Desire Conviction Evaluation Conviction Attitude Yielding and

acceptance

Trial Intention

Behaviour Action Purchase Adoption Action Purchase Retention

E K Strong L&S E M Rogers R H Colley H & S* Hofacker

(1925) (1961) (1961) (1961) (1969) (2001)

NOTE: *The Howard and Sheth excerpt is taken from the full model shown on p 134.
 132 Part One | Communications Background and Theories

Three types of models,‘black-box’,‘­personal-variable’ Personal-variable models

and ‘complex’, will now be considered briefly.
These models take a glimpse inside the black box of
Black-box models consider external variables that
the mind. They only involve a few personal varia-
act as stimuli (such as price, shops, merchandise,
bles such as beliefs, attitudes and intentions. These
advertisements, promotions and the social environ-
kinds of models are sometimes used within more
ment, including families and friends) and responses
complex models. Three types of personal-variable
such as sales. Personal-variable models focus on
models, ‘linear additive’, ‘threshold’ and ‘trade-off’,
some of the internal psychological variables such as
are briefly considered below.
attitudes and beliefs. The complex models attempt
to include both the internal and the external vari­
ables in one large model. To some this proves impo­ Linear additive models
ssible. As Gordon Foxall (1992) pointed out, ‘No Linear additive models like that of Fishbein are
one model can capture human nature in its entirety; based on the number of attributes a particular
nor can a handful of theoretical perspectives em- product or service has, multiplied by the score each
brace the scope of human interaction.’ attribute is perceived to have, multiplied by the
weighting which each attribute is deemed to have.
This model opens up attitudes by indicating which
Black-box models attributes are considered to be important to the cus-
The behaviourist school of psychology concentrates tomer and how each attribute is scored by the cus-
on how people respond to stimuli. It is not con- tomer. Attitudes are not always translated into
cerned with the complex range of internal and exter- purchasing behaviour. Even intentions are not al-
nal factors that affect the behaviour. The complexities ways translated into action. Nevertheless, market-
of the mind are left locked up in a ‘black box’. ing strategies can be built around changing beliefs
The resulting stimulus–response models ignore about attributes, and altering their evaluation or
the complexities of the mind (including the inter- scores.
vening variables such as perception, motivation,
attitudes, etc) and focus on the input or stimulus, eg Threshold models
advertising, and the output, eg purchase behaviour. Most purchases have cut-off points or thresholds
A classical approach to stimulus–response models is beyond which the buyer will not venture. It may be
considered in ‘Learning’ on p 140. Figure 4.9 shows price or some particular feature that a product or
a black-box model. service must have (or must not have in the case of
As Williams (1989) said: ‘Black-box models treat some environmentally damaging ingredients) if it is
the individual and his physiological and psychologi­ to be considered at all. Here, the buyer has a selec-
cal make-up as an impenetrable black box.’ Only tion process that screens and accepts those products
the inputs and outputs are measured. Any internal or services within the threshold for either further
mental processes (the intervening processes) that analysis or immediate purchase. Those beyond the
cannot be measured are ignored. The model in threshold are rejected and will not be considered
Figure 4.10 shows some examples of ‘input’ and any further.
‘output’.
The black-box approach considers only the Trade-off models
inputs and outputs. Careful analysis under con- Buyers generally have a wide array of choices, many
trolled tests (using reasonably sophisticated com- with different types and amounts of attributes. A
puter models) can reveal the optimum price, the trade-off occurs when the buyer accepts a product
optimum level of advertising and so on. that is lacking in one attribute but strong in another.

F I G U R E 4.9 Black-box model

Stimulus variables Intervening variables Response variables

(inputs) (black box) (outputs)
 4 | Buyer Behaviour 133

F I G U R E 4.10 An enlarged black-box model

Inputs/stimuli Processor Outputs/behaviour

Product
Price
Place
Promotion:
Advertising Product purchase
Selling
Sales promotion
Publicity Brand purchase
Packaging
Buyer
Point-of-sale
Merchandising Brand loyalty/
Exhibitions repeat purchase
Corporate identity
Sponsorship
Sales literature Size of purchase
Direct marketing
Word-of-mouth Frequency of
purchase

F I G U R E 4.11 A simplified version of Howard and Sheth’s model

Exogenous variables

Stimuli Perception Learning Responses

A sort of compensatory mechanism emerges. When Howard and Sheth

someone is buying a car, engine size and price can A simplified version of Howard and Sheth’s complex
be traded off against each other, eg a bigger engine model divides the black box into perceptual constructs
means a worse (higher) price. A number of combi- and learning constructs, as shown in Figure 4.11. The
nations of price and engine size can be researched to exogenous variables are external to this model and
find the value or ‘utility’ for different prices and en- include personality traits, social class, financial status,
gine sizes. the social/organizational setting and even the impor-
tance of the purchase to the individual.
Complex models The complete complex model in Figure 4.12
includes perception, learning, attitudes and motiva-
The cognitive school attempts to open the lid and
tion. Stimulus ambiguity implies inadequate infor-
look inside the mind’s black box. Here more com-
mation to make a decision. Perceptual bias (see
plex buying models, like that of Howard and Sheth
‘Perception’ below) basically means that there is a
(1969), try to incorporate into the hierarchical com-
certain amount of distortion in the way that an
munication models the intervening variables of per-
individual perceives a stimulus.
ception, motivation, learning, memory, attitudes,
This complex model has been criticized for lack-
beliefs, group influence, etc – in fact, almost every-
ing a clear definition of the relationships between
thing inside the mind.
some of the variables and for a lack of distinction
 134 Part One | Communications Background and Theories

F I G U R E 4.12 The complete Howard and Sheth model

Inputs
Stimulus display Perceptual constructs Learning constructs Outputs
Significative
a. Quality
b. Price Intention Purchase
c. Distinctiveness
d. Service Overt
Confidence
e. Availability search
Intention

Symbolic
a. Quality
Attitude
b. Price
c. Distinctiveness Stimulus
Attitude
d. Service ambiguity
e. Availability Brand
comprehension
Social
a. Family Choice Brand
Motives
b. Reference groups criteria comprehension Attention
c. Social class

Perceptual
Attention Satisfaction
bias

between the endogenous variables (within the Perception

model) and exogenous variables (external to the
model). The model is, for many readers, difficult to Perception means the way stimuli, such as commer-
understand, and for many practitioners impossible cial messages, advertisements, packaging, shops,
to use. Nevertheless it does provide a useful insight uniforms, etc, are interpreted. Chisnall (1985) said:
into the possible workings of the mind. ‘Our perceptual system has a tendency to organize,
The remainder of this chapter looks at some of modify and distort information reaching it.’
the influencing variables such as perception, learn- Perception is selective. We see what we want to see.
ing, motivation, values, attitudes and lifestyles, and
considers how an understanding of them helps to For those of you who smoke –
make more effective marketing communications.
try this test

Here’s a simple test. Ask smokers to recall exactly

Psychological variables what the health warning says on the side of their
packet of cigarettes. Few will be able to tell you the
These are the intervening psychological variables exact words. This is because we all selectively
that include: screen out messages or stimuli that may cause
●● perception; discomfort, tension or ‘cognitive dissonance’.
●● learning; Imagine that smokers allow the message (warning)
to be perceived. This will cause discomfort every
●● motivation;
time a cigarette is taken, since the box will give the
●● attitudes; smokers an unpleasant message. In order to
●● group influence; reduce this tension, the smokers have two options:
●● habit. 1) change behaviour (stop smoking) or 2) screen out
the message and continue the behaviour (smoking).
 4 | Buyer Behaviour 135

Many stimuli are screened out by the perceptual and disciplinary action. It never happened. Here’s
system, which, it is estimated, is hit by between 500 the interesting bit about perceptions. The author
and 1,500 different commercial stimuli a day interviewed over 100 New Zealand fans several
(whether ads, sponsored posts, tweets, etc). The ex- months later in Dublin, and every one of them saw
ample in the next box shows how preferences and nothing wrong with the incident. Ask Lions fans,
motivations affect perception.
and every one of them will say it was an absolute
disgrace. Everyone saw the same thing, but the two
The same brand logo, icon or a groups saw (perceived) something different.
symbol can be perceived differently Perception is selective and hugely biased by our
motivations.
Take this example from Hong Kong, where in 1997
China regained control over this former British This incident was the trigger that founded
­colony. The committee responsible for celebrating www.greatsportsmanship.org, an
the resumption of Chinese sovereignty chose the edutainment programme designed to inspire global
white dolphin as its symbol. A British newspaper, citizens through sportsmanship stories.
the Independent, pointed out that this was a species
threatened with extinction in Chinese waters. The
committee also chose to place it alongside the new
symbol for the future special administrative region The same ad can be perceived
of Hong Kong, the Bauhinia flower, which, reported
the newspaper, was a sterile hybrid that produces differently
no seed. The newspaper perceived Hong Kong to be Perceptions can vary even within the same region. A
marching into the future under the symbols of an UK TV advertisement for Unilever’s Persil washing
endangered species and sterility. The Hong Kong powder showed a Dalmatian dog shaking off its
committee saw the friendly dolphin as appealing to black spots, a white horse breaking away from black
everybody, especially children: ‘Its leaping move- horses and a skater dressed in white beating other
ment symbolizes Hong Kong’s vibrancy.’ They dif- skaters dressed in black. The advertisement was per-
fered vastly even over the same symbol or stimulus. ceived by some as being racist. Despite the advertise-
ments having been tested with Afro-Caribbean
women before going on air, the Independent
Television Commission (ITC) received 32 complaints.
Millions perceive same moment
differently: The infamous The same website can be perceived
Brian O’Driscoll incident differently
You need to know how visitors see your website.
The captain, and potential match winner, of the Session maps and heat maps are used to try to un-
British and Irish Lions rugby team, Brian O’Driscoll, derstand how customers process information on a
was spear-tackled by two New Zealand players, off website. Session maps record an individual’s eye
the ball, in the first minute of the first test match movements across a web page (erratic/random eye
way back in 2005. It remains, to this day, the perfect movement suggests confusion). The larger the cir-
example of how two segments (influenced by their cle, the more time spent looking.
different motivations) perceive the same stimulus The results of all the individual session maps are
completely differently. O’Driscoll’s shoulder was aggregated to generate a single heat map with
shattered and his test series over. He was lucky not warmer colours revealing areas most looked at and
to have broken his neck, as a spear tackle involves ‘black’ indicating that no one looked at this part of
lifting and throwing a player head first to the the page (in this case no one noticed the ‘Sale’ sign).
ground. It can result in a broken neck. It is See Figures 4.14 and 4.15.
extremely dangerous and totally illegal. The Lions’ That’s probably why most organizations put
their brand top left. Incidentally, the eye movement
manager, Sir Clive Woodward, called for a citing
used to be an ‘F’, starting top left, scanning across,
 136 Part One | Communications Background and Theories

reverting to top left and then scanning down and The shift towards
across (to complete the top two rows of the ‘F’)
(Smith, 2019). visual and social
Usability testing is different. Basically, it asks cus- A picture paints 1,000 words:
tomers (and other stakeholders) to use the website
to carry out specific tasks with an observer watch- ●● Blogs have 500–1,000 (or more) words.
ing to see how easy or difficult it is to complete the ●● Facebook has just a few words. Facebook posts
tasks. See the ‘Control’ section p 283 for more. with pictures and videos get more engagement.
Research suggests that conversion rates for visi- ●● Twitter: 280 characters. Tweets with pictures
tors using mobiles are a lot lower than if they were get more engagement.
using laptops or PCs. They’re typically between
one-half and one-third of those on desktop (Chaffey, ●● YouTube: no words. Well, very few words –
2018). How visitors hold their phones affects how just some in the title, caption, credits and
easy it is to click various parts of the screen description (and the full transcript plus
(Figure 4.13). A call to action (CTA) must be easily annotations can also now be included).
­accessible. ●● Pinterest: essentially visual with limited
Figure 4.13 suggests a ‘best practice’ design of words.
screen interaction points, ie CTAs, should focus in ●● Instagram: essentially visual with limited
the natural green areas and avoid the red ‘hard areas’. words.
Incidentally these red areas are where the navigation
menu is often located, so alternatives to this on page Adapted from Dalton (2012)
load should be provided (Chaffey, 2018).
Regardless of which device your audience uses, Attention before perception
attention spans are shrinking and a shift towards Generally, before perception occurs, attention
visual is occurring. has to be gained by, say, the advertiser (there are

F I G U R E 4.13  How visitors hold their phones affects how easy it is to click various parts of
the screen

Hard Hard Hard Hard

Stretching Stretching
Stretching

Natural

Natural Natural

Left Hand Combined Right Hand

 4 | Buyer Behaviour 137

F I G U R E 4.14 Session map showing movement of eyes across a web page

SOURCE: Courtesy of Etre

F I G U R E 4.15 Heat Map showing which areas of a web page are looked at most

SOURCE: Courtesy of Etre

 138 Part One | Communications Background and Theories

exceptions – where subtle icons, colours or images

don’t grab attention but do affect perception, see
Goldfish a have greater attention
‘Nudge theory’ p 119). As Williams (1989) said, in- span than some Americans
terests, needs and motives determine ‘not only what
will arouse attention, but also what will hold it’. For ‘Well, probably Europeans too. According to
example, advertisements for a new house are ig- Harvard Business School historian Nancy
nored by the mass population. But there is a sector Koehn, our average attention span today is eight
of the population that is actively looking for a seconds down from 12 seconds over a decade
house. This sector has a need for a new house, and ago. Goldfish are believed to have attention
it is therefore receptive to any of these advertise- spans lasting 9 seconds. We live in an “age of
ments. Individuals from this sector positively select distraction”. However, context is important as
information relevant to their needs. This is known TV attention spans shrink, and smartphones,
as ‘selective attention’. surprisingly “trump desktop computers for
receptivity to ads, especially when the viewer is
Shrinking attention spans at school or work” (sorry, boss). Overall, a highly
Attention spans are shrinking. Estimates from attentive audience was shown to boost
Harvard for the first televised live TV debate be- purchase intent by 23 per cent and overall
tween Nixon and JFK in 1960 suggested the atten- favourability by 14 per cent.’
tion span of the audience was only 42 seconds. Dishman (2014)
Kennedy delivered key points within 40 seconds. He
won the election. Fast forward to Obama in 2008
and 2012; some estimates suggested attention spans
had fallen to just twelve and eight seconds respec- Perceived differences in brands are not necessarily
tively. Hence Obama’s snappy one-liners such as dependent on real product differences (in either func-
‘Yes We Can’ were repeated across many platforms. tion or form). As Chisnall (1985) says, ‘Consu­mers
Obama won. There was of course a lot more than evaluate products against the background of their
just snappy one-liners in the Obama campaign – see experiences, expectations and associations. Percep­
PR Smith’s interview with Teddy Goff, Obama’s tion is seldom an objective, scientific assessment of
Head of Digital (Smith, 2019). Fast-forward to the comparative values of competing brands.’
Trump’s 2016 win and some estimates suggested the
concentration of the great heaving masses was now
just four seconds. Hence ‘Make America Great Colour affects our perception
Again’ (MAGA) worked far better than Clinton’s
longwinded socio-economic arguments. Perhaps
‘The colour red makes food smell better.’
Brexit was the same. ‘Take Back Control’ was a
Kanner (1989)
crystal-clear message pounded home by Brexiteers.
Meanwhile, Remainers delivered long-winded
­socio-economic arguments to an audience that had
switched off. Perceptions are delicate and need to be managed
There are also certain physical properties that carefully. Take Google: it is loved by everyone, but
increase the likelihood of a message gaining atten- could easily be feared by all if it was perceived to be
tion: intensity and size; position; sound; colour; too powerful (as perhaps Microsoft experienced).
contrast; and movement (eyes are involuntarily Kennedy (2009) suggested:
attracted to movement because of the body’s instinc-
One of the main hurdles Google faces in its quest
tive defence mechanism). Given that an individual’s
to manage the world’s information, becoming
attention is constantly called upon by new stimuli,
a virtual library of books, movies, music, maps,
repetition can enhance the likelihood of a message tools, news, communication, even our very voices,
getting through. Novelty can also be used to jar is that it also becomes a figure of suspicion.
expectations and grab attention.
 4 | Buyer Behaviour 139

How safe is that information, are they reading our understanding of gestalt psychology. Gestalt means
every email, do they know too much about us? ‘total figuration’. One of the four basic perceptual
organizing techniques from the gestalt school is ‘clo-
Google CEO Eric Schmidt admitted these are real
sure’. Individuals strive to make sense of incomplete
fears (Manyika, 2008), and he says:
messages by filling in the gaps or shaping the image
Trust means there is a sacred line the company so that it can fit comfortably into their cognitive
must never cross. In fact, its greatest strength is, in set (or their current knowledge). KitKat’s ‘Kit’ –
truth, its Achilles heel. If it crosses that line it can ­sometimes advertisements do not clearly say ‘Kit
never go back. Privacy and trust are sacrosanct. Kat’ and thereby encourage audiences to fill in gaps
There’s a lot of things we could do that would (to make sense of the ad). This may happen so fast
upset our users so there’s a line you can’t cross. that viewers are not aware of what is going on in-
We try very hard to stay very much on the side of side their heads. Effectively, the mind momentarily
the consumer. becomes the medium, since the complete image is
Even if the company stays on the right side of the visible only inside the head, while the external ad-
line, it still has to manage customer perceptions vertisement shows the incomplete image. In a sense,
very carefully. the giant billboard inside the cranium is switched on
by an incomplete stimulus. The natural perceptual
tendency towards ‘closure’ completes the advertise-
ment’s image inside the audience’s mind. Perception
Certain words work better than others is also influenced by past experiences, motivation,
beliefs, attitudes and our ability to learn.
Certain words must be perceived to have different
meaning or inference. President Obama’s Director
of Digital, Teddy Goff, told me that one of these
statements had a much higher impact than the
other: Everybody is scared
●● ‘You should be a donor.’
‘Everybody is scared; everybody is insecure;
●● ‘You should donate.’ everybody is nervous. Nobody knows what’s
coming next. Nobody. So people are looking for
Which one, do you think, worked best during the
intimacy. They’re looking for brands that
last Obama campaign? Stop and think for a moment
understand them. They’re looking for services
before reading the answer.
that deliver for them in their new environment.
Teddy Goff discovered that people were more
I think most brands and most companies are
likely to be persuaded by the first statement, as
operating in a time lag and a time warp.
nouns were found to be more powerful than verbs
Consumers are way ahead of us. Their
(Lee, 2013). Sometimes we just don’t fully know why
insecurities are much more to the surface…
this is, but testing and analysis will reveal which
The challenge is to get more intimate with her
works best. Hence the importance of developing a
fears, her needs, her desires. Let’s face it: she
constant beta culture. Do check out how changing
needs to enjoy her life today – because there’s
one button on a website boosted revenues so much
not a lot of it coming her way. So she will still
that they named it the $300 million button.
use brands. She will still find some pleasure in
Smith (2019)
shopping. What we’ve got to do is provide that
pleasure, provide that joy, that delight so that
we can delight her in her new environment
through being very intimate in her current
Gestalt psychology situation.’
An understanding of the way our perceptual system Kevin Roberts, CEO, Saatchi &
organizes information has helped some brand ad- Saatchi Worldwide (Roberts, 2009c)
vertisers to exploit perceptual systems through an
 140 Part One | Communications Background and Theories

Learning start salivating. Is this classical conditioning? What

about the pub? When the bell rings (Pavlov) for ‘last
Marketers obviously want customers to learn about drinks’ or ‘last orders’, there is sometimes a surge
firstly, the existence of their brand and secondly, its towards the bar. Or the ice-cream van jingle (stimu-
merits. A knowledge of the learning process is there- lus) which makes children and parents come out of
fore useful in understanding how customers acquire, their houses to buy an ice cream (response)?
store and retrieve messages about products, brands
and companies. How are attitudes about compa-
nies, products and brands developed (or learned)?
Advertising and sales promotions can help custom- Coca-Cola’s classical conditioning
ers learn in different ways (see ‘classical condition-
ing’ and ‘operant conditioning’ in ‘Connectionist Here are some Coca-Cola slogans from the last
learning theories’ below). In addition, how many century – applied with meticulous consistency
times (frequency) should an advertisement be shown across all communications channels.
before it is remembered or, alternatively, before it
causes irritation? Should it be repeated regularly ● 1904 Drink Coca-Cola
once a week for a year (a ‘drip’ strategy) or concen- ● 1922 Thirst Knows No Season
trated into 12 times a week for four weeks only (a
‘burst’ strategy)? Differing levels of intelligence, ● 1932 Ice Cold Sunshine
memory, motivations, perceptions and rewards (re-
● 1942 The Only Thing Like Coca-Cola is Coca-
inforcement) affect the learning process.
Cola Itself

Connectionist learning theories ● 1952 What You Want is a Coke

Simple connectionist theory suggests that associa- ● 1963 Things go Better With Coke
tions can be made between messages, or stimuli,
and responses, hence the term ‘stimulus–response ● 1969 It’s the Real Thing
model’. Remind people they are hungry (stimulus/ ● 1976 Coke Adds Life
ad) and they might just go to a particular takeaway
where they are quickly rewarded with nice tasty ● 1982 Coke is it!
warm food (response). ● 1993 Always Coca-Cola

2000 Coca-Cola. Enjoy

Learning via classical conditioning ●

In the late 1890s the Russian physiologist Ivan ● 2003 Coca-Cola… Real
Pavlov demonstrated how ‘classical conditioning’, ● 2016 Taste The Feeling
or involuntary conditioning, worked on dogs. By
regularly hearing the ringing of a bell before being Brown (2016) and Moye (2016)
presented with food, a dog learned to associate (or
connect) the bell with food. After a period of condi-
tioning the dog would salivate (respond) upon hear-
ing the bell (stimulus) without any food arriving. As
Human behaviour is influenced by music
Williams (1989) says, ‘It is the idea of association
that underlines the concept of branding in modern
marketing.’ Constant repetition can build associa- ‘High-tempo music may be appropriate in fast
tions between needs, products and brands, eg if you food restaurants because it encourages faster
are thinking of beans, think Heinz: ‘Beanz Meanz knife and fork activity, leading to quicker table
Heinz’. Can we be conditioned into buying brands? turnover. Customers buy more expensive wines
Can constant repetition build immediate associa- in a retail environment playing classical music
tions between needs and brands, or needs and rather than pop music. French wine significantly
behaviour? Some people, if they see a yellow
­ outsold German wine in a store when
McDonald’s arch sign when they are feeling hungry,
 4 | Buyer Behaviour 141

Advertising jingles, pictures and even smells are

stereotypical French accordion music was some of the stimuli that can arouse emotional or
played. Marketers frequently match the volume behavioural responses. Some people still feel good
of music in different time zones of their store to when they hear the Coca-Cola jingle ‘I’d like to
the age band of the target market… younger teach the world to sing…’; others are aroused and
shoppers spend more in a retail environment excited when they hear the sound of a sports com-
playing loud music, while shoppers aged 50 and mentator’s voice with crowd sound effects in the
over spend more in an environment with quiet background. Ice-cream van jingles arouse children.
background music.’ McDonald’s large, highly visible yellow ‘M’ logo
Oakes (2008) can trigger a response, particularly if an individual
is involved in goal-orientated behaviour (is hungry
‘London Underground started piping “uncool” and is ready to consider eating food).
classical music in the booking halls of tube
stations in December 2005 to deter youths from
loitering, resulting in a 33 per cent drop in abuse Cyber-logo makes customers salivate
against staff.’
Marketer (2010)
‘Seeing your logo on the net made me hungry’
(feedback from a McDonald’s website visitor,
demonstrating classical conditioning).
Learning via operant conditioning Smith et al (1999)

Whereas classical conditioning is non-voluntary, ie

we cannot control the situation fully as lights flash,
bells ring or ads roll, operant conditioning is vol-
untary in so far as the participant actively searches Certainly, the release of certain aromas can stimu-
for solutions. The Skinner box was devised by late immediate responses. For example, as custom-
Dr Burrhus Frederic Skinner in the United States ers leave a pub and walk down the street they are
during the 1940s. By placing a hungry rat in a box often greeted by the wafting smell of frying chips,
where food only arrived once the rat pressed a which can stimulate or arouse the need for food,
lever, Skinner observed that the rat would search, and lead to an immediate purchase.
investigate and, eventually, press the lever acciden- Lunn Poly created a full sensory holiday environ-
tally. Food then arrived. Over a period of time the ment in its stores using a coconut aroma, fresh cof-
rat, when aroused by the hunger motive, learned to fee in the Parisian-style café area, holiday music,
press the lever for food. An association or connec- travel images and a variety of film footage.
tion was made between the lever pressing and the Reinforcement and reward enhance the learning
drive to satisfy the hunger need. This approach to process. In other words, good-quality products and
building associations through voluntary participa- services reward the buyer every time. This consist-
tion suggests that sales promotions, discussions, ent level of quality reinforces the brand’s positive
competitions, and engagement at various levels relationship with the buyer. On the other hand, if
(like, share or comment) possibly invite the buyer the quality is poor, there is no reward (the response
to participate, and eventually connect, or learn, does not satisfy the need), and the response (to buy
that a particular product or service is associated a particular brand or visit a particular shop) will
with a particular need. not be repeated.
Positive reinforcement helps the learning process
(or helps the buyer to remember the brand or shop).
Stimulus–response It is possible to ‘unlearn’ or forget (‘message decay’),
Connectionist theories of learning highlight the im- so many advertisers seek to remind customers of
portance of first, timing and second, frequency of their products, their names and their benefits. Some
marketing communications. The establishment of a advertisements seek to remind buyers what a good
connection or association between a stimulus and a choice they have already made by frequently repeat-
response is fundamental to the conditioning p
­ rocess. ing messages. The connectionist approach ignores all
 142 Part One | Communications Background and Theories

the other complex and influential variables involved Insight, meaning, perception, knowledge and
in learning and, ultimately, buying. Arguably, it over- problem solving are all considered relevant con-
simplifies a complex process. cepts. Cognitive learning is not dependent on trial
Packaging design can also act as a cue to arouse and error. It depends on an ability to think, some-
momentarily the happy images conveyed in the pre- times conceptually, and to perceive relationships and
viously seen and unconsciously stored advertising ‘what if’ scenarios. It is not dependent on an imme-
images. This is where a ‘pack shot’ of the product diate reward to reinforce the learning process; in
and pack in the advertisement (usually at the end) fact, ‘latent learning’ occurs in the absence of reward
aids recall of the brand, the advertisement and its and without any immediate action. Of course, an
image when the consumer is shopping or just individual has to be suitably motivated (interested)
browsing along shelves full of different brands. to achieve this kind of learning. The next intervening
All brand managers would like to have their variable – motivation – will now be considered.
brand chosen automatically every time. Some brands
achieve this through an unconsciously learned
response. How? By building a presence through fre- Tea-drinking Chinese learn
quency of advertising and maximum shelf facings to drink coffee
(the amount of units displayed on shelves) and, most
importantly, by supplying an appropriate level of Just as they helped the Europeans to learn to eat
reinforcement (an appropriate level of quality in
with their hands (McDonald’s) and drink ice-cold
the product or service itself). Chapter 3 emphasizes
beer (Budweiser), mostly through classical
the importance of quality in the long-term repeat-­
advertising, Coca-Cola, Pepsi and now, Starbucks are
buying success strategies of today and tomorrow.
conditioning a massive market to learn a new way of
satisfying their needs, especially young Chinese.
These brands are turning a tide in tastes. Tea houses
Adopt positive psychology to create in China are being challenged by coffee houses.
shareable meaningful moments

‘Positive conditioning: if the future of a brand is

dependent on shared experiences, it is
important to adopt positive reinforcement and Motivation
positive psychology in order to create Motivation is defined as the drive to satisfy a need.
shareable, meaningful moments… invest in the Some motives are socially learned (eg wanting to
consumer as well as in these positive get married), and others are instinctive (eg wanting
moments… I ask you in return to share a great to eat when hungry). Sigmund Freud suggested that
experience you’ve had with my brand, I should an individual is motivated by conscious and uncon-
have a loyalty programme that rewards you for scious forces. Many motives are unconscious but
your advocacy…. a strategy for loyalty and active in that they influence everyday buying behav-
advocacy determines the future of the brand… iour. Brands carry covert messages that are fleet-
Do you have a system to reward advocates? ingly understood at a subconscious level. As the
Solis (2015) Market Research Society said in its 1996 confer-
ence paper, ‘It is often this deeper meaning which is
what is exchanged for money. These deep underly-
ing feelings are often the real reason why people
buy products or services.’
Cognitive learning
Cognitive learning focuses on what happens in be- Sigmund Freud’s psychoanalytical
tween the stimulus and the response. It embraces
the intervening mental processes that lie within the approach
black box. Freud broke the personality into the id (instinctive
drives and urges, eg to eat food or grab food), the
 4 | Buyer Behaviour 143

ego (the social learning process that allows the indi- ●● Men want their cigars to be odoriferous in
vidual to interact with the environment, eg to ask order to prove that they (the men) are
politely for food or pay for food) and the superego, masculine.
which provides a conscience or ethical/moral ref- ●● Shaving for some men is the daily act of
eree between the id and the ego. Freud suggested cutting off this symbol of manliness
that all actions are the results of antecedent condi- (stubble).
tions (see how childhood experiences might even
affect industrial buying behaviour some 30 or 40 Of course, this is all outdated now. Humans are ra-
years later in ‘Mommy’s never coming back’, p 200). tional animals and are not concerned with such psy-
Occasionally these unconscious stirrings mani­fest choanalytic interpretations of everyday, ordinary
themselves in dreams, responses to ambiguous stim- and, supposedly, common-sense behaviour. Consider
uli and slips of the tongue (Freudian slips). ‘A close shave?’
Clinical psychology uses thematic apperception
tests, Rorschach tests and word association tests to
analyse the underlying, and sometimes unconscious, A close shave?
personality traits and motivations of an individual.
In-depth market researchers (qualitative research-
ers) use metaphors, picture completion and mon- There is a simple test that has been used in
tages in an attempt to throw the interviewee’s ego lectures with different groups. A question is posed,
off guard and dip into the real underlying feelings with a request for male respondents only. The
that interviewees find difficult both to become question is ‘How many of you find shaving a
aware of and to express in an articulate manner. hassle?’ Usually a unanimous show of hands
In the 1950s, Vance Packard was concerned about emerges. ‘How many of you would like to be able to
how in-depth researchers like Ernest Dichter were dispense with the aggravation of shaving?’ Slightly
attempting to extract buyers’ unconscious feelings, fewer hands emerge. ‘Well, here is a cream that
aspirations and motivations, which were then subtly will solve your problem. This cream closes your
reflected through advertising imagery, which in turn hair follicles so that hair will never grow there
manipulated buyers unconsciously. Although dis- again. It is medically approved and cleared for a
credited by some and criticized by others, Dichter’s market launch next year. Who would like to try
Handbook of Consumer Motivations (1964) is an some right now?’ All the hands are gone. The
extremely thought-provoking and entertaining read. question ‘Why not?’ is usually answered faintly with
Here are some other well-known, in-depth ‘Freedom to choose to have a beard later in life’
research findings from the 1950s that were thought and so on. Or is there something deeper here?
to reveal the deep underlying motivations that Dichter would have said ‘Yes.’
drive certain forms of behaviour, including buying
behaviour:
●● A woman is very serious when she bakes a
cake, because unconsciously she is going Abraham Maslow’s hierarchy
through the act of birth. of needs
●● Soon after the trial period, housewives who Abraham Maslow’s (1954) hierarchy of needs pro-
used a new improved cake mix (no egg vides a simple but useful explanation of the way an
needed, just add water) stopped buying it. individual’s needs work. Essentially he showed that
The new, improved cake mix provoked a we are driven or motivated initially to satisfy the
sense of guilt, as the cooking role of the lower-level needs and then, when satisfied, we move
housewife was reduced. up to the next level of need. This theory also implies
●● A man buys a convertible car as a substitute that motivation can be cyclical, in so far as buying a
mistress. house may be motivated initially by the lower-level
●● Smoking represents an infantile pleasure of survival needs and subsequently by the higher-level
sucking. need of esteem. Figure 4.16 shows Maslow’s hierar-
chy of needs.
 144 Part One | Communications Background and Theories

F I G U R E 4.16 Maslow’s hierarchy of needs

Self-actualization
needs
(self-development
and realization,
accomplishment, fun,
freedom, relaxation)

Esteem needs
(self-esteem, recognition, status, prestige, success)

Social needs
(sense of belonging, love, affections, affiliations and identification)

Safety needs
(security, protection, order, stability, physical well-being)

Physiological needs
(hunger, thirst)

Cars transport people from A to B. Sometimes the

need to buy a car is a basic survival need (eg to get leisure’ – to an audience of strangers. Today’s
to work, to earn money to buy food). Sometimes it customers also wear badges (a pint of Guinness is
can provide a cocoon (or shelter/safety) from the a badge that tells everyone that the drinker is a
mass of bodies scrambling for the public transport discerning beer drinker). Even hybrid cars are said
system. Cars can also act as status symbols (esteem). to be eco-status markers (or signals) that show
Sometimes cars can provide freedom to explore the ‘conspicuous concern’ about the environment.
countryside, visit friends or do what you want (self- According to Walker (2008), conspicuous
actualize). Some cars position their benefits (power, consumption is no longer valid:
speed, safety, environmental, etc) so that they domi-
nate the ad and appeal to the predominant need of There is a better idea – the invisible badge.
a particular segment. What the Joneses might think is, really, beside
the point. Because what you are really doing is
telling that story to yourself. In other words, yes,
The invisible badge: Motivation beyond a fancy ‘product’ really is a badge in the sense
conspicuous consumption that it’s a symbolic confirmation or expression of
identity (an identity that we may wish for rather
In 1899 Thorstein Veblen introduced ‘conspicuous than actually embody – aspirational rather than
consumption’, which suggested consumers buy authentic). But the fact that hardly anyone sees
products to impress other people, with his example it, let alone accepts the meaning it supposedly
of the man who parades down Main Street in projects, hardly matters. In fact, if the real
‘stainless’ linen, with a superfluous walking stick. audience is us, the badge may as well be
These items told a story and provided ‘evidence of invisible.
 4 | Buyer Behaviour 145

Sometimes customers simply do not understand the Attitudes can be broken down into three com-
new benefits delivered by innovative products and ponents, which are often explained as ‘think’, feel’
services. For example, research originally rejected and ‘do’ or ‘cognitive’, ‘affective’ and ‘conative’.
ATMs (cash machines), with typical comments like The cognitive element is the awareness or knowl-
‘I wouldn’t feel safe withdrawing money on the edge of, say, a brand. The affective element is the
street’. Interestingly, the wheel is turning full circle, positive or negative feeling associated with the
as customers are once again becoming nervous brand. The conative element is the intention to pur-
about cash withdrawals on crime-ridden streets. chase. It can be important to measure all three
Different people (or groups of people) extract dif- components, since an isolated element can be mis-
ferent benefits from the same product. Some people leading. For example, Rolls-Royce scores highly on
want to drive a Porsche because it gives them power; the cognitive and affective elements of the attitude,
others want to because they see it as a symbol of but few of those who express awareness of and lik-
success (good for the ego and esteem); others just ing towards a Rolls-Royce will actually buy one.
want the thrill of driving very fast (self-actualization, Identifying the levels of each attitudinal element
as in the case of the driver’s last wish in Nevil Shute’s helps to set tighter communication objectives. For
classic On the Beach); others again may simply want example, the creative strategy for increasing brand
a very fast, reliable car that allows them to get from awareness would be different from the strategy
A to B (around Europe) without delay (see the iPod required to change the target market’s feelings (or
example on p 116). Markets can be broken up into reposition the brand). A different communications
‘benefit segments’ so that communications can be strategy (perhaps an emphasis on sales promo-
tailored to develop the ideal positioning for a par- tions) would be required if the objective was to
ticular segment. In some cases benefit segmentation convert high awareness and positive feelings into
demands different products for different segments, trial purchases.
as in the case of the toothpaste market (see p 117). Attitudes can be changed, but it does take time.
There are several options:

Attitudes ●● Change the beliefs held about the product or

service (or its attributes and features).
Attitudes affect buying behaviour. Attitudes are ●● Change the importance ratings (or
learned, and they tend to stick; they can be changed, weightings) of various attributes.
but not very quickly. As Williams (1989) says: ‘If a
marketer is able to identify the attitudes held by dif- ●● Introduce another attribute.
ferent market segments towards his product, and ●● Change the association of a particular
also to measure changes in those attitudes, he will product or service with the others.
be well placed to plan his marketing strategy.’ An ●● Change the perception of competitors’
attitude is a predisposition towards a person, a products or services.
brand, a product, a company or a place.
Groups also influence attitudes: hence the impor-
tance of opinion formers and opinion leaders. Now
consider group influence in the buying process.
Can attitudes be formed without any experience?

Can attitudes be formed prior to purchase?

Attitudes and consumer values

are changing
The answer is ‘yes’ to both. Attitudes are sometimes
formed without direct experience and, equally, ‘Buying a house is no longer the American
products are often bought without any prior atti- dream. Consumers may not even need a car.’
tude. In the latter case, however, it is likely that an Solis (2015)
attitude will form as a result of word of mouth, or
an engaging advertisement.
 146 Part One | Communications Background and Theories

Group influence lover. In the online world the same person can adopt
different roles and even multiple personalities.
Much of human behaviour, and buyer behaviour in Activities, interests and opinions can form useful
particular, is shaped by group influence. Whether segmentation criteria. Roles within groups help
cultural, religious, political, socio-economic, life- to target decision-makers and influencers in the
style, special interest groups or just family, social ­decision-making units. Roles are also identifiable
groups affect an individual’s behaviour patterns. from the family lifecycle, which shows how an indi-
Watch explicit group influence occur as thousands vidual moves from single to newly wed to full nest
of people perform a ‘Mexican wave’ at football 1 (youngest child under six) to full nest 2 (youngest
matches, the Olympics, etc. child six or over) to full nest 3 (dependent children)
to empty nest 1 (children moved out) to empty nest
2 (retirement) or solitary survivor 1 (still working)
to solitary survivor 2 (retired). The income levels,
The effects of group influence are often seen in a needs and spending patterns are often predictable
queue or waiting area where charity collectors are as the income earner moves through various family
attempting to collect money. Success or failure is lifecycle roles. Spending patterns, influenced by
often determined by the reaction of the first changing roles, can be monitored and forecast
encounter, ie if the first person acknowledges the
before communicating any marketing messages. For
example, direct mail companies often mail new
collector and makes a contribution, the next person
mothers within a few days of the arrival of their
is more likely to do so too. We have often seen a
baby. Marketers must ensure they are GDPR com-
whole platform (on the underground train network/
pliant before any mailings and before even collect-
the subway) generously giving money after a
ing the data.
successful start. Equally, we have seen almost total
rejection by a whole queue once the initial contact
has refused to donate. This is a bizarre or perverse
form of charity giving and seems to be about peer Absenteeism out, ‘presentee-ism’ in
group pressure. In a sense, a donation buys some
relief from guilt or embarrassment.
‘Men have to work harder than ever before to
make themselves indispensable, to the point
where we are now seeing “presentee-ism”,
which occurs when men feel that they have to
Most individuals are members of some kind of
get to work earlier and leave later to show their
group, whether formal (eg committees) or informal
commitment. This is having a detrimental effect
(eg friends), primary (where face-to-face communi-
on their home lives.’
cations can occur, eg family) or secondary (eg the
Coopere (2008)
Chartered Institute of Marketing). Groups develop
their own norms or standards that become accept-
able within a particular group. For example, normal
dress among a group of yacht club members differs
considerably from the norm or type of clothes worn Many young men today even see their home as hav-
by a group of clubbers. Yet both groups adhere to ing a different role to that of their parents’ home.
the rules (mostly unwritten) of their own group. For many, home is a ‘refuge from an uncertain
Both groups also go through some sort of purchas- world’ and a ‘haven from the stresses of life’. In ad-
ing process. dition to being a long-term financial investment, a
Roles are played by different members within a home can also be a hub of technology that ‘connects
group. An individual may also have to play different a guy with his sense of self through a variety of
roles at different stages of the same day, eg a loving media experiences’.
mother, tough manager, loyal employee, client Finally, the mix of communications tools helps
entertainer, happy wife and, perhaps, sensuous move customers through the stages of a buying
 4 | Buyer Behaviour 147

model from unawareness to reassurance. Each tool life event – for instance graduating from college,
can affect different stages. Although there is always getting a new job, moving home, etc – shopping be-
some vagueness about exactly where the effective- haviour can become more flexible and predictable.
ness starts and stops, Figure 4.17 is arguably an This is therefore extremely valuable for retailers.
oversimplified graphic that may help in understand- The study revealed that when a person marries they
ing which tools do what. are likely to begin buying a new brand of coffee.
Similarly, if a couple moves house, there’s a higher
Powerful analytics can help change than usual chance that they’ll opt for a new brand
of breakfast cereal. Divorce, however, leads to new
customer buying habits, by Charles brands of beer.
Duhigg As would be expected, no life events lead to more
Way back in the 1980s, a team of researchers led by drastic changes in purchasing behaviour than the
a UCLA professor named Alan Andreasen under- arrival of a baby. The new parents’ habits are more
took a study of peoples’ most mundane purchases, changeable then than, arguably, any other point in
like soap, toothpaste, rubbish bags and toilet paper. their lives. Clearly, this represents huge opportuni-
What they discovered was that few shoppers paid ties for companies: if they can identify expectant
any real attention to how they purchased such arti- mothers, they can earn millions.
cles – they were purchases that occurred routinely, To see this in action, consider a fictional shopper.
without involving any deep thought or complex If a female shopper purchases cocoa butter lotion, a
decision-making. Naturally, this causes difficulties bag big enough to transport nappies and baby
for marketers, who rely on displays, coupons and equipment, zinc and magnesium supplements, and a
product promotions to persuade shoppers to devi- blanket, there’s an excellent chance she’s pregnant.
ate from ingrained habits. However, they also dis- If she makes her purchases via the website or via her
covered that when consumers go through a major customer loyalty card in the store, the store will

F I G U R E 4.17 Which communications tools do what

Unawareness Awareness Acceptance Preference Insistence/buy Reassurance

now

Advertising

PR

Sponsorship

Direct mail

Selling

Packaging

Point of sale

Exhibitions

Sales promo

Website

Social media

CRM/WOM
 148 Part One | Communications Background and Theories

know how to reach her and trigger her shopping communications environment explores this ethical
habits (Duhigg, 2012), assuming the store is GDPR issue and more.
compliant in the first place.

Is convenience becoming more

Analytics may know more about your important than trust?
family than you do We are so time poor that convenience becomes very
attractive. Perhaps even more attractive than truth.
Approximately 12 months after the American Is saving time more important than trust? Is a con-
retailer, Target, created their pregnancy-prediction venient brand preferred instead of a trusted brand?
model, a man clutching coupons for baby clothes Is convenience trumping trust? Many rational peo-
that had been sent to his daughter walked into a ple would say ‘no, convenience would never trump
Target store and demanded to see the manager. trust’. But in this time-poor world we live in, con-
Enraged, he demanded to know whether Target venience seems to be winning, if recent surveys
was encouraging his schoolgirl daughter to get about Facebook highlighted by Gerry McGovern
pregnant, as they were sending her incentives to (2019) are to be believed:
buy baby clothes. The manager looked at the mailer ●● Facebook is worse for society than
promoting maternity clothing, nursery furniture and McDonalds or Walmart (2018 Honest Data
pictures of smiling infants and duly apologized. He poll).
followed up with a courtesy call to apologize again
●● Facebook will have a net negative for society
a few days letter. However, the father answered the
10 years from now (2018 CB Insights
phone and said ‘I owe you an apology, my daughter survey).
is due to have a baby in August.’
●● Yet Facebook revenue rose from $16.9
billion in the last quarter, up 30 per cent.
●● Monthly active users rose to 2.32 billion, up
9 per cent.
Many customers dislike their privacy being invaded
●● Share price soared more than 13 per cent.
by third parties using ‘clever’ analytics – both in the
United States, Europe and elsewhere. This is now, What’s happening? Is convenience trumping trust-
with GDPR, a bigger issue as privacy is a new cur- worthiness? See the appendices for the full Gerry
rency. People do not want to be spied upon as they McGovern piece.
live their lives and do their shopping. So retailers
need to be careful. Although they can sell baby
products that customers didn’t even know they
needed yet, they have to be careful. They have dis- Summary and conclusion
covered that some women react badly if they re-
ceive incentives for baby products (imagine if the Marketers must understand the target market’s
woman had not told her partner yet). So they buying behaviour before, during and after the ac-
learned from this and now add random products tual purchase. Even the apparently simple act of
that these customers would never buy, such as lawn- purchasing a hamburger can reveal a host of hidden
mowers and wine glasses, ‘so the baby ads look ran- motives. In-depth research reveals some deep and
dom’. Target stores learned that pregnant women unconscious reasons that demonstrate some of the
will use the coupons as long she thinks she hasn’t complexities of buying behaviour. The time and ef-
been spied on. ‘She just assumes that everyone else fort spent in the buying process depend on the type
on her block got the same mailer for diapers and of buying situation. Decision-making units also af-
cribs’ (Duhigg, 2012). fect the process.
This raises all sorts of delicate privacy and ethi- Buying models highlight some of the stages
cal issues about the use of personal shopping data through which the buyers pass, offering a kind of
(and other data). Chapter 10 on the changing checklist for marketing communications to ensure
 4 | Buyer Behaviour 149

that they carry the buyer through each stage suc- state of the economy, the level of demand and com-
cessfully. The behaviourist school differs from the petition, the cost of money, etc. B2B buyers are not
cognitive school of more complex buying models. perfectly rational buyers. They too are affected by
Motivation, perception, learning, values, attitudes emotions.
and lifestyles all interact and influence the buying Perhaps Oscar Wilde was too generous when he
process. said that ‘man is a rational animal except when
Once marketing professionals are equipped with asked to act within the dictates of reason’.
a clearer understanding of both the motives for Some argue that it is impossible, as Foxall (1992)
buying and the buying process itself, a marketing said, to ‘capture human nature in its entirety’ because
communications strategy can be developed to of the complexity of the decision-making process.
ensure that it covers as many avenues to the mind of This complexity is created by the web of rational
the buyer as resources allow. and emotional factors that are generated from inter-
Reasons and motives range from the rational to nal processes and guided by external influences.
the bizarre. Motives are, however, only one variable Marketing communications can change a nation’s
among many other intervening variables that inte- behaviour. Marcomms do affect aggregate buying
grate and influence buying behaviour. For example, behaviour, as evidenced by changed behaviour pat-
beliefs and attitudes affect motives, which in turn terns after the National Lottery integrated cam-
affect the way an individual sees or perceives things paign, which stimulated some 65 per cent of the
(images, ads, products, shops, etc). We learn these British adult population into shops to buy lottery
opinions, attitudes and beliefs partly from groups tickets on a regular basis. The same changes in buyer
(such as friends and colleagues), partly from com- behaviour are evident in China and across Europe,
mercial messages carefully aimed at us through where marketers really do change customer behav-
advertising, sales promotion, etc, and partly from iour patterns. It is no accident. It is never the result
real experiences of products or services. of guesswork. It is largely dependent on accurate
All these influences interact with commercial analysis of customers and subsequently building up
stimuli such as advertisements. The effects are ulti- valuable customer insights. If you want to protect
mately reflected in our behaviour (or lack of behav- and enhance the value of your brand, your offer
iour in some circumstances). must be valuable. See how Unilever change behav-
In consumer markets, buying behaviour is iour in Appendix 4.3. You will see that the higher the
affected by the complex web of mostly internal relevance, the greater the value – it’s a continuum.
intervening variables (motivation, perception, atti- It’s the magic marketing formula delivering success.
tudes, learning, memory, lifestyle, personality and
groups). Sex, age, income and even an individual’s
face or body affect their behaviour. Other external Goethe and the magic
variables such as laws and regulations, the weather, marketing formula
opening hours, an out-of-stock situation or an
emergency can all change buying behaviour. ‘Behaviour is a mirror in which everyone
A B2B buyer is also influenced by internal varia- displays his own image.’
bles, including the organization’s objectives, poli-
Goethe (1809)
cies, procedures, structure and systems, and
variables external to the organization such as the

Key points from Chapter 4

●● Buying behaviour is complex. ●● Emotional influences in decision-making are
●● There are many different approaches to buying still dominant in B2C and exist in B2B markets.
models. ●● Marketers must understand how the intervening
●● Marketers need a continual feed of information psychological variables influence buyer
on customer behaviour. behaviour.
 150 Part One | Communications Background and Theories

●● Marketers must know their customers better ●● Data analytics plus nudge theory and
than the customers know themselves. neuroscience can give powerful insights into
customers’ minds.

Appendix 4.1: Hofacker’s online information processing

One approach to online information processing is multimedia on a website. If the design uses familiar
Charles Hofacker’s five stages of on-site informa- standards or metaphors, it will be most effective,
tion processing: since the customer will interpret them based on pre-
vious experience and memory. Once relevant infor-
1 exposure;
mation is found, visitors sometimes want to dig
2 attention; deeper for more information.
3 comprehension and perception; Changing the layout of a website will be as popu-
4 yielding and acceptance; lar with customers as a supermarket changing its
store layout every six months! Metaphors are another
5 retention.
approach to aid comprehension of e-­commerce sites;
Each stage acts as a hurdle, since if the site design or a shopping basket metaphor is used to help compre-
content is too difficult to process, the customer can- hension.
not progress to the next stage. The emarketer fails. Fourthly, yielding and acceptance refers to whether
The best website designs take into account how cus- the information you present is accepted by the cus-
tomers process information. Good emarketers are tomer. Different tactics need to be used to convince
aware of how the messages are processed by the different types of people. Classically a US audience is
customer and of corresponding steps we can take to more convinced by features than benefits, while the
ensure that the correct message is received. reverse is true for a European audience. Some cus-
The first stage is exposure. This is straightfor- tomers will respond to emotive appeals, perhaps rein-
ward. If the content is not present for long enough, forced by images, while others will make a more
customers will not be able to process it. Think of clinical evaluation based on the text. This gives us the
splash pages, banner ads or Shockwave animations: difficult task of combining text, graphics and copy to
if these change too rapidly the message will not be convince each customer segment.
received. Finally, retention – how well the customer can
The second stage is attention. The human mind recall their experience. A clear, distinctive site design
has limited capacity to pick out the main messages will be retained in the customer’s mind, perhaps
from a screen full of single-column-format text prompting a repeat visit when the customer thinks,
without headings or graphics. Movement, text size ‘Where did I see that information?’ and then recalls
and colour help to gain attention for key messages. the layout of the site. A clear site design will also be
Note though that studies show that the eye is imme- implanted in the customer’s memory as a mental
diately drawn to content, not the headings in the map and they will be able to draw on it when
navigation systems. Of course, we need to be careful returning to the site, increasing their flow ­experience.
about using garish colours and animations, as these To summarize, understanding how customers
can look amateurish and distract from the main process information through the stages of exposure,
message. attention, comprehension and perception, yielding
Comprehension and perception are the third of and acceptance, and retention can help us design
Hofacker’s stages. They refer to how the customer sites that really get our message across and deliver
interprets the combination of graphics, text and memorable messages and superior customer service.
 4 | Buyer Behaviour 151

Appendix 4.2: The post-PC and, soon, post-mobile customer

The post-PC customer may occasionally accept happily play chess and interact with their oppo-
payment to view some ads. The rest are screened nents on the giant vertical screens, called refrigera-
out by sophisticated browser software. Neither gov- tors. Voice-operated computers are considered noisy
ernments nor society permit old-style intrusive and old fashioned as discreet, upmarket, thought-
­advertising any more. No more evening telephone operated computers operate silently, but extremely
calls from script-reading intelligent agents or effectively.
scammers. It is also illegal to litter anyone’s door- And all the time bluetooth type technology facili­
step or house with mailshots and inserts. Heavy tates ubiquitous communications, which allows con-
fines stopped all that a long time ago. The only ads stant interaction between machines. Man and
that do get inside are carried by the many millions machine integrate into a vast database. We have
of private media owners who rent out their cars, more IT power in today’s average luxury car than
bikes and bodies as billboards. the rocket that went to the moon. Yes, Moore’s law
The tedious task of shopping for distress pur- suggests the tectonic shift will continue. Yes, mar-
chases like petrol, electricity or memory storage is keting will continue in a new guise (probably not
delegated completely to embedded shopping bots. even called marketing but just ‘common-sensing’).
Non-embedded bots spun out of control some years Time-compressed, information-fatigued and dis-
ago when they first appeared in three-­dimensional loyal, the post-PC and post-mobile customer seeks
hovering holograms – always at your side, always relationships not from brands themselves but from
double-checking the best price for hire cars, hotels, databases that know, understand and seemingly
even drinks at the bar. Some are programmed to be care about them. Witness the virtual girlfriend rela-
polite, aggressive or even abusive. All are pro- tionships in Japan, relationships with shops and
grammed to be intrusive whenever anything is being vending machines, oh, and relationships with peo-
bought. Delays on buses and traffic jams regularly ple, real, quaint, touchy, feely, physical people.
occurred when argumentative bots engaged in And all the time the technology, if truly mas-
lengthy negotiations. Frustration broke out. Bots tered, can free up time to do the important things in
attacked bots, people attacked bots and bot owners. life, to give the post-PC customer a genuinely higher
Eventually bots were banned from buses, planes, quality of life both at work and at home with family
trains and several ‘peaceful supermarkets’. and friends.
Next came the great worm wars: programming
bots so they only buy your brand – for life. But,
unlike humans, bots can be reprogrammed by a Live longer
competitor. The advertising agent’s worm was born.
Agent eaters soon followed. Despite being informa- Humans may develop smaller ears (from constant
tion fatigued and time compressed, the post-PC and use of headphones) and better body organs,
post-mobile customer lives a lot longer than many
replaced as a result of early-warning systems
bots. And certainly longer than most of the new
carried by miniature submarines constantly
brands that seem to come and go. The 150-year-old
patrolling in the bloodstream. These wireless
person has already been born.
database-driven devices identify wearing parts and
Meanwhile, back at the ranch, microwaves insist
on offering suggestions of ideal wines to go with organs, check cloned stock availability, reserve
your meal, offering instant delivery from the neigh- beds and preferred surgeons and estimate time
bourhood’s wired-up 24-hour roving delivery van. before breakdown replacement is required.
Your fridge offers special incentives to buy Pepsi Discounts for early bookings into leisure hospitals
when you run out of Coke (or whichever brand are also negotiated automatically.
owns or hires the IoT hub database). Children
 152 Part One | Communications Background and Theories

Appendix 4.3: Unilever’s five steps to change behaviour

The Five Levers for Change are:
Unilever publishes its marketing
1 Make it understood. Sometimes people don’t
behaviour change principles, Five know about a behaviour and why they
Levers for Change, to inspire should do it. This lever raises awareness and
sustainable living encourages acceptance.
2 Make it easy. People are likely to take action
To coincide with a public debate on mainstreaming if it’s easy, but not if it requires extra effort.
sustainable living, Unilever has today published the This lever establishes convenience and
behaviour change model its marketers use to en- confidence.
courage sustainable changes in consumer living
habits: Five Levers for Change. 3 Make it desirable. The new behaviour needs
Based on Unilever’s long history of research and to fit with how people like to think of
insights into consumer behaviour, the tool is based themselves, and how they like others to think
on a set of key principles, which, if applied consist- of them. This lever is about self and society.
ently to behaviour change interventions, increases 4 Make it rewarding. New behaviours need to
the likelihood of having an effective and lasting articulate the tangible benefits that people
impact. Unilever is sharing the model in the hope care about. This lever demonstrates the proof
that others will find it helpful and use it to inspire and payoff.
people to turn their concerns about sustainability 5 Make it a habit. Once consumers have
into positive actions. changed, it is important to create a strategy
The model outlines five techniques to apply to help hold the behaviour in place over
when looking to encourage new behaviours, based time. This lever is about reinforcing and
on five key insights. reminding.

Appendix 4.4: Use and convenience replace

trust and security
‘Sheryl Sandberg: The teens “consented” to putting up 9 per cent. Consequently, Facebook’s share price
Facebook spyware on their phones.’ Another day, soared more than 13 per cent. What’s happening?
another screaming headline exposes negative be- Does trust matter? Clearly, not very much when
haviour by Facebook. Adweek reported on a survey it comes to Facebook. Why is Facebook still so
which asked US adults how they would trust 100 of ­successful?
the biggest brands with their personal data in ex- There’s a pattern to many of the negative stories
change for ‘more relevant offers, goods and ser- about Facebook. Most of them tell of Facebook’s
vices’. Facebook ranked last. relentless pursuit of understanding their customers
A 2018 Honest Data poll found that US citizens deepest needs, desires and behaviours. The Facebook
think Facebook is worse for society than McDonalds app that Sheryl Sandberg defended by saying that
or Walmart. The only company ranked worse than teens ‘consented’ to installing it, was used to target
Facebook was Marlboro. A 2018 CB Insights sur- teens as young as 13 so as to track and monitor
vey asked which company will have a net negative everything they did on their phones, from private
for society 10 years from now? ‘The answer was messages and browsing histories to app messages. (I
pretty overwhelmingly Facebook.’ recently read a story about how the Silicon Valley
And yet… And yet… Facebook revenue rose to elite, like Sandberg, ‘are now restricting, or outright
$16.9 billion in the last three months of 2018, up 30 banning, screen time for their children’).
per cent. Monthly active users rose to 2.32 billion,
 4 | Buyer Behaviour 153

Facebook is relentlessly focused on usability and Just like with the BP oil slick scandal. People
simplicity. It wants to understand you better than didn’t stop using BP stations to fill up their cars,
you understand yourself so that it can craft a world because these stations were too convenient, too
through which its advertisers can get you to buy close to their homes or workplaces to avoid.
more and more of their products. (There are almost Those that make it simple and easy are ruling the
7 ­million advertisers using Facebook.) That’s the world. Those that understand what people do,
Face­book business model. Every time you use Face­ rather than what people say, are ruling the world.
book, you pay. The currency? Your personal data. For good or ill, you can’t craft an effective customer
It’s the things we don’t talk about that seem to experience on a website or app if you don’t first and
matter most to us. Today, we choose simplicity, use- foremost truly understand your customers.
fulness and convenience over trust and security. Facebook knows this. Google knows this. But nine
We don’t trust Facebook. We use Facebook. So, out of ten organizations that I deal with don’t. And
trust doesn’t matter? Or does convenience simply then we wonder why Facebook and Google have
trump trust? become so dominant?
McGovern (2019)

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of the United States of America, ed Kenneth presentation, Madrid, 8 June [online] http://www.
Wachter, University of California, Berkeley, CA saatchikevin.com/kevin-video/emotion-reason/
[online] www.pnas.org/content/ (archived at https://perma.cc/4HM9-ED5L)
early/2013/03/06/1218772110 (archived at https:// Roberts, K (2006b) Saatchi & Saatchi presentation,
perma.cc/YTW2-MEEJ) Madrid, 8 June
Kotler, P (1998) Practice of Marketing, Prentice Hall, Roberts, K (2009a) Short cuts (part 1), 6 July; see
Englewood Cliffs, NJ hard copy journal kept in Chartered Institute of
Langton, N (2013) Emotion influences B2B buying Marketing library (www.cim.co.uk (archived at
more than you might think, The Laws of https://perma.cc/S59Y-AX9L))
Attraction
 4 | Buyer Behaviour 155

Roberts, K (2009b) Short cuts (part 5), 6 July, see wars? 27 June [online] http://prsmith.org/blog/
reference above for further details (archived at https://perma.cc/67JZ-HYWA)
Roberts, K (2009c) Annual City Lecture to the Smith, PR (2017) How Trump won: A SOSTAC®
Worshipful Company of Marketors, 6 November analysis (parts 1 and 2), 20 January [online]
Roberts, K (2010a) Creativity, 21 January http://prsmith.org/blog/ (archived at https://perma.
Roberts, K (2010b) Spreading the love, Marketer, cc/67JZ-HYWA)
February Smith, PR (2019) SOSTAC® guide to your perfect
Rogers, E M (1961) Diffusion of Innovations, Free digital marketing plan [online] http://prsmith.org/
Press, New York blog/ (archived at https://perma.cc/67JZ-HYWA)
Rosich, M (2015) Digital outlook (Singapore Solis, B (2015) Crossing the experience divide:
conference) 2015, reported by Rajeck, J, Five new Creating positive, lasting experiences is a crucial
mobile marketing strategies for 2015, mandate for any brand, Technology of Us, 12
eConsultancy blog, 21 January [online] https:// January
econsultancy.com/blog/65928-five-new-mobile- Soskey, G (2015) What to cut from your marketing,
marketing-strategies-for-2015/?utm_campaign= Hubspot Blog, 7 January [online] http://linkis.
Twitter&utm_content=11477997&utm_ com/blog.hubspot.com/mar/Yy9bk (archived at
medium=social&utm_source=twitter (archived at https://perma.cc/VD2L-6L4A)
https://perma.cc/94DT-3ADC) Spool, J (2009) The $300 million button, User
Rossiter, J and Percy, L (1996) Advertising Interface Engineering, 14 January
Communications and Promotion Management, Stibel, J (2018) Why the brain buys what it doesn’t
2nd edn, McGraw Hill, New York want, LinkedIn, 25 September
Shaw, R (1997/98) Appreciating assets, Marketing Strong, E K (1925) The Psychology of Selling,
Business, December/January McGraw-Hill, New York
Smart Insights (2014) The consumer decision journey Unilever (2011) Unilever reveal 5 steps to change
(infographic) [online] www.smartinsights.com/ consumer behaviour, 23 November, Unilever
marketplace-analysis/consumer-buying-behaviour/ Global
what-influences-purchase/ (archived at https:// Veblen, T (1899) The Theory of the Leisure Class,
perma.cc/F98H-K7LV) Oxford University Press, Oxford
Smith, P, Berry, C and Pulford, A (1999) Strategic Walker, R (2008) The invisible badge: Moving past
Marketing Communications, Kogan Page, London conspicuous consumption, ChangeThis.com,
Smith, PR (1996) Video interview with Kenichi 47 (1)
Ohmae Williams, K C (1989) Behavioural Aspects of
Smith, PR (2001) Online Emarketing Course: Marketing, Heinemann, Oxford
Ecustomers, Multimedia Marketing, London Williams, T G (1982) Consumer Behavior, West
Smith, PR (2010) Video interview with Kevin Publishing, St Paul, MN
Roberts, CEO, Saatchi & Saatchi Worldwide Wolfgang Digital (2019) KPI report 2019 [online]
Smith, PR (2014) The rise and fall of owned and www.wolfgangdigital.com/kpi-2019/ (archived at
earned but not paid media: World Cup marketing https://perma.cc/RT45-KAU6)

Further information
Market Research Society (MRS) Ofcom
The Old Trading House Riverside House
15 Northburgh Street 2a Southwark Bridge Road
London EC1V 0JR London SE1 9HA
Tel: +44 (0)20 7490 4911 Tel: +44 (0)300 123 3000
www.mrs.org.uk www.ofcom.org.uk
 156

05
Communications
theory
LEARNING OBJECTIVES
By the end of this chapter you will be able to:
●● understand that communication involves a two-way flow of information;
●● appreciate the subtle variables involved in communications;
●● apply communication theories to practical marketing situations;
●● exploit contemporary models to ensure successful communications;
●● explain why new models are required to meet the changing communications
landscape;
●● understand why new skills are required to match new communications models.

Introduction to communications theory 157 Personalized communications models: Chatbots and

Non-verbal and non-symbolic communications 157 messaging 169
Symbolic and semiotic communications 158 Personalized communications models: AI avatar
Source credibility 158 chatbots 171
Influencers: Opinion formers, opinion leaders and Multi-step non-linear communications models 171
connectors 160 Adoption model 173
Artificial influencers 160 The diffusion of innovations 174
Advocates 162 The end of the traditional marcomms funnel
model? 175
Communications models 163 Customer lifecycle journey model 176
Single-step communications model 163 Sequential communication 176
Two-step linear communications model 164
Multi-step linear communications models 164 Key points from Chapter 5 178
Personalized communications 167
Develop a systematic listening team and a system to References and further reading 178
use the information 168
Personalized communications models: Further information 180
Messaging 168
 5 | Communications Theory 157

can be explained by Douglas Smallbone’s analogy

Introduction to of radio communication.
communications theory Perfect transmitting conditions might exist if
there were no noise (extraneous factors that distract
A dictionary definition of ‘communication’ is as fol- or distort the message, such as other advertisements,
lows: ‘Communication (noun) 1. Transmitting. 2. a) poor reception, a flashing light, a door bell or an
Giving or exchange of information, etc by talk, ambulance). Without noise, perfect transmitting
writing. b) The information so given. 3. A means conditions would exist. In reality, there is almost
of communicating. 4. The science of transmitting always noise, so perfect transmitting conditions do
­information’. not exist. Cinemas may be the exception, where a
What is interesting is the exchange of informa- captive audience is in an attentive state and r­ eceptive
tion. Communication is not a one-way flow of infor- to, say, a well-produced advertisement. But even
mation (see social listening on p 167) Talking at or to when the target audience is seemingly tuned in
someone does not imply successful communication. (watching, listening to or looking at a particular
It only occurs when the receiver actually receives the organization’s package, promotion, advertisement,
message that the sender intended to send. Message etc) it may not be on the same wavelength because
rejection, misinterpretation and misunderstanding of the hidden internal psychological processes that
are the opposite of effective communication. may be reshaping or distorting the message to suit
the audience’s own method of interpretation.
The human receiver is in fact equipped with five
distinct means of receiving messages or information
Ineffective communications kill millions or marketing communications – the five senses of
hearing, sight, touch, taste and smell. Marketing
‘There is evidence that a mistake in translating a communications tools can address many senses
message sent by the Japanese government simultaneously (for example a retail environment).
near the end of World War II may have triggered
the bombing of Hiroshima, and thus ushered in
atomic warfare. The word “mokusatsu” used by The human radio
Japan in response to the US surrender
ultimatum was translated as “ignore”, instead of ‘Given good transmitting conditions and
its correct meaning, “withhold comment until a receiver and transmitter tuned to the same
decision has been made”.’ wavelength, perfect reception can be effected.’
Cutlip et al (2004) Smallbone (1969)

If true, this would be an extreme and tragic example Non-verbal and non-symbolic
of communications gone wrong. Communication
errors in marketing generally do not cost lives but
communications
can, if allowed to continue unchecked, cost market Although verbal and visual communications gain a
share, company survival and jobs. On the other lot of conscious attention, there are non-verbal and
hand, good marketing communications help an or- non-symbolic ways of communicating, such as
ganization to thrive by getting its messages across in space, time and kinetics. Crowded areas, or lack of
a focused and cost-effective way. space, send messages to the brain that, in turn, can
Good marketing communications is not as sim- stimulate a different set of thoughts and a different
ple as it may appear. Even David Ogilvy, the adver- behavioural response. The opposite is also true: a
tising guru, was once reported to have used the word spacious office or living room conveys different
‘obsolete’ in an advertisement only to discover that messages. In fact, spacious websites (minimalist de-
(at the time) 43 per cent of US women had no idea sign) can quickly communicate the purpose, or
what it meant. The delicacy and difficulty of creat- ­benefit, of a web page. Visitors are impatient and
ing effective communications to target audiences fast-moving. If a website visitor does not understand
 158 Part One | Communications Background and Theories

what a page is about in just a few seconds, they Engel et al (1994) demonstrated how Lever’s
leave. We also need to reduce the number of choices, fabric softener ‘Snuggle’ used a cuddly teddy bear in
as Hick’s Law (1952) states the greater the number its advertising. It has been suggested by some psy-
of potential choices/decisions, the longer it will take chologists that ‘the bear is an ancient symbol of
to make a choice. aggression, but when you create a teddy bear, you
Visitors also seek consistency across website pages provide a softer, nurturant side to that aggression.
as well as community and belonging (you can use lan- As a symbol of tamed aggression, the teddy bear is
guage and imagery that help visitors to feel included the perfect image for a fabric softener that tames
in your business). And of course, colour communi- the rough of clothing.’
cates; Google tests prove blue links receive more Engel et al (1994) comment: ‘The key point here
clicks (Golson, 2009) than links using other colours. is that if marketing communicators are not aware
A visual hierarchy also helps since visitors are also of the subtle meanings of symbols, then they are
drawn to objects that stand out. They jump along liable to communicate the wrong message.’
prominent items on a site, which means you can guide Carol Moog’s advice to Pierre Cardin on its
them to information you want them to see. Audiences men’s fragrance advertisement, which was designed
tend to look at faces more than other objects. to show men who are ‘aggressive and in control’
In Western cultures the use of time creates images; splashing on fragrance, was accepted but rejected!
a busy but organized person gives an impression of Moog saw ‘cologne gushing out of a phallic-shaped
authority. ‘Thanks for your time’ immediately con- bottle’ creating a conflict of images, since it ‘sym-
veys a respect for and an appreciation of a seem- bolized male ejaculation and lack of control’. Pierre
ingly important person’s time. A busy diary can Cardin acknowledged that she was probably right,
project an image of importance. ‘I can squeeze you but decided to keep the shot, as it was ‘a beautiful
in on Friday at…’ implies seniority in the relation- product shot plus it encourages men to use our fra-
ship. In the UK, the term ‘window’ means ‘free time’ grance liberally’.
or space in a busy diary. Some advertisements sell
products and services primarily on time-saving and
convenience benefits. Source credibility
Finally, kinetics communicate. Gestures and move­ The success or failure of an advertisement, or any
ments send messages. Even the simple, swift clicking message, is partially determined by whether it is a
of a briefcase, entering or leaving a room or closing credible message in the first place. This, in turn, is
or not closing a door can communicate (in China influenced by the credibility of the source of the
sitting opposite the door means you are paying for message, the deliverer of the message and the cho-
the meal). Most of all, body language and facial ges- sen media vehicle.
tures are powerful communicators. An understand- The perceived credibility of the message source is
ing of body language allows an individual to learn influenced by trustworthiness and expertise. These
more about what another person is really feeling. are key factors that organizations must constantly
A smile, for example, communicates immediately, prove so that they have a platform of credibility.
effectively and directly. Online, we also analyse dig- Endorsements from customers and venerable insti­
ital body language (click behaviour) to determine tut­ions, published papers, conference speeches, awards
what a visitor is interested in and what stage of the won, memberships and of course the perceived quality
buying process they are at. of the brand itself all help to establish trustworthiness
and expertise, ie source credibility. In addition to
the credibility of the brand, the message credibility
Symbolic and semiotic is also influenced by the individual delivering the
communications message, such as the presenter in an advertisement.
For example, some brands stopped sponsoring
The field of semiotics (or semiology) opens up a rich
Tiger Woods and also supermodel Kate Moss when
discussion of how symbols and signs are used in
their private behaviour was deemed to be ‘unsuita-
communications, particularly advertising. Audiences
ble’. On the other hand, a highly credible presenter
often unconsciously perceive images stimulated by
adds credibility to a brand.
certain symbols.
 5 | Communications Theory 159

Content design also affects credibility. Research­ attractive, the recipients may be more likely to
ers asked subjects to look at two websites: one was develop a similar opinion or position); and 3) per-
professionally designed, and the other looked dated ceived power to reward or punish message receivers
and ugly. When the researchers asked people why (eg a teacher or perhaps an owner of a social media
they mistrusted the information on either site, 94 group). In summary, a great message delivered from
per cent said it was because of design. And get this: a source with low ‘source credibility’ will not be as
the content on both websites was exactly the same effective as the same message coming from a source
(Sillence et al, 2004). Poor design is one of the main with high ‘source credibility’.
reasons why visitors distrust a site. Therefore
your site should look up to date and display relevant Message style affects credibility,
content and images. State your business purpose/
online value proposition (OVP) clearly. Display ‘trust anxiety and trust
badges’, high-profile customer logos, members of When customers see an ad or a mailshot for your
trade bodies, payment methods, security p ­ rotection. product or service they ask these three questions:
Who are you? What are you offering me? And why
should I care?
Many customers feel ‘loss aversion’ – they are
Positive and negative reviews: Two-sided more afraid of making the wrong decision than they
arguments create more trust are excited about making the right decision. They
just don’t want to get taken advantage of, so a cus-
‘Reevoo research shows bad reviews actually tomer acquisition ad has to answer these questions
reduce site abandonment, with time on a site quickly, whereas a customer retention message is
leaping from just over three minutes to 18 more conversational – uses the customer’s name
minutes. The research revealed that consumers (people like to be remembered), mentions any previ-
trust reviews more when they see both positive ous purchases and perhaps offers a customized offer
and negative comments. In fact, an absence of (which new customers can’t get). Personalization
negative reviews can lead consumers to also helps, whether it’s a web page, an email, an ad
distrust a brand. “Shoppers are suspicious or even a video (see personalized videos at scale,
when reviews don’t include any complaints”, page 167). A conversational tone can make existing
says Reevoo founder Richard Anson.’ customers drop their defensiveness and become
Manning (2012) more receptive to your next offer.

The media vehicle affects the credibility, eg a mes-

Message likeability
sage that ‘using a laptop damages your fertility’
would have less credibility if it came from The Sun ‘This is about how much an individual likes an
newspaper than it would have if it came from the advertisement. It is determined by how
FT, or even more credibility if it came from a learned interesting, meaningful, relevant and enjoyable
medical journal rather than a newspaper survey. an advertisement is deemed to be. When
The media vehicle’s perceived expertise, prestige researching advertisements, and in particular,
and editorial tone (style, eg upmarket or mass-­ how much customers like an advertisement,
market, and other content, eg sex and violence) all “likeability is deemed to have four elements:
affect the credibility of a message. entertainment, relevance, clarity and
Message source affects credibility. Kelman (1961) pleasantness”.’
suggested that it has three variables: 1) perceived Source unknown
source expertise and neutrality (or objectivity); 2)
perceived source attractiveness (if it is deemed
 160 Part One | Communications Background and Theories

Influencers: Opinion formers, In the world of fashion, the leaders are sometimes
called ‘style leaders’. Even cult fashion products can
opinion leaders and connectors be mass-marketed by carefully splitting the messages
Opinion formers and opinion leaders include jour- between style leaders and the mass. While the lead-
nalists, judges, consultants, lecturers, religious lead- ers want to set themselves apart from the rest, the
ers, politicians, group leaders and of course bloggers, mass market consciously and/or unconsciously looks
tweeters, Instagrammers and YouTubers to name a to the leaders for suggestions about what to buy. The
few influencer types. Officially, opinion formers difficulty lies with success – as the mass market buys
such as journalists and judges are formally paid to more, the leaders lose interest unless they are rein-
give their opinions, while opinion leaders such as forced with brand values that preserve the brand’s
bloggers are not. credibility among the cognoscenti. This is important
Influencers can have a much bigger impact than because, if the leaders move away today, the mass
any of your other marketing efforts. You must iden- sales will eventually start falling away next year or
tify and connect with influencers in your industry. A the year after. So, in addition to the mass advertising,
comment, like or share from influencers can be pow- some brands use small-audience, targeted, opinion-
erful. You may not be able to afford to pay (via leader media to send the ‘right’ messages to reinforce
money, free products or placing ads on influencers’ the leaders’ relationship with the brand.
blogs) or even collaborate with all the influencers, it Just getting the product into the hands of influ-
may be that you just focus on a small number, or encers can help a brand grow. Chapter 20 describes
perhaps focus on niche influencers or ‘nano-­ how Zip World seeded some stunning photographs
influencers’ (with perhaps just 5,000 followers) who with influencers outside their target market and con-
usually have a more niched following who are inter- sequently delivered a massive boost in sales (p 611).
ested in some specific aspect or group of users. A
hundred nano-influencers with a combined audience
of over 1 million could be very effective and cheaper,
Artificial influencers
than working with one influencer with 1 million fol- Artificial influencers are avatars who model fashion
lowers. Either way, you have to ensure the influencers brands, appear to drink fashionable coffee, visit
understand your brand, your values, your messaging cool exhibitions and maintain a dialogue with
and then continually monitor their performance. their followers. Miquela Sousa, also known as
@LilMiquela, has over 1.5 million followers and
gets tens of thousands of likes for each of her posts.
Connectors know a lot of people AI can help maintain a dialogue or it could be man-
aged manually. She’s modelled for Prada, Chanel,
Diesel and Moncler. She has released a Spotify top
‘They are the kind of people who know 10 track and launched her own clothing range.
everyone. All of us know someone like this. But I Miquela’s creator Brud.fyi specializes in ‘robot-
don’t think we spend a lot of time thinking about ics, artificial intelligence and their applications to
the importance of these people. I’m not even media businesses’. So they gave Miquela a social
sure that most of us really believe that the kind conscience as she ‘supports social causes such as
of person who knows everyone really knows Black Lives Matter and supports an organization
everyone. But they do.’ called Black Girls Code, which promotes tech­
Gladwell (2000) nology training for girls. British photographer,
Cameron-James Wilson, created the stunning artifi-
cial influencer Shudu.
In an email interview with BBC, Lil Miquela was
Marketers recognize that in each market there is a asked what she thought about virtual celebrities
smaller target group of influencers. Major brands can and gave this reply:
maintain their credibility by communicating specifi-
cally to these influencers, as well as communicating I think most of the celebrities in popular culture
to the mass through other media channels (some- are virtual! It’s been disheartening to watch
times with messages tailored for the two groups). misinformation and memes warp our democracy,
 5 | Communications Theory 161

but I think that speaks to the power of ‘virtual’. FIGURE 5.1 Shudu
Eventually, ‘virtual’ shapes our reality and I think
that’s why I’m so passionate about using virtual
spaces like Instagram to push for positive change.
Brands want access to this audience so they pay
$2–3,000 per 500,000 followers. Hence Miquela
could earn, say, $10,000 per post x 50 posts (one
post per week) which generates $500,000 pa. If
Brud see good engagement in the first 30 minutes
they remove the post.
Artificial influencers are proving to be a success
and therefore are attracting the attention of brands
(Kulp, 2018b). You will probably see more virtual
models in your Instagram feed as artificial intelli-
gence transforms influencer marketing (Kulp, 2018a).
For examples of how artificial influencers work
and their use of the magic marketing formula see
http://prsmith.org/blog/ (‘Artificial influencers’).

SOURCE: Courtesy of Cameron James Wilson, @TheDigitals, and

Microsoft call on influencers to Jennifer Powell, Inc
launch new product

‘Molly O’Donnell, Director of Influencer The power of influencers and organizations can
Marketing, Microsoft, says that before any also be seen in industrial markets. An entire indus-
influencer campaign, they identify (1) who they try may follow a well-respected and highly success-
want to reach (2) where they are (3) what media ful company that makes an early decision to buy.
they consume and (4) how do they behave? Expert sales teams focus on these kinds of compa-
More than 70 per cent of its target consumers nies initially. Marketers in consumer markets can
are influenced by their peers. Microsoft also focus on the people who are the first to buy
partners with Klout* through its Perks new ideas. Better information today can provide a
programme and gave a free phone to individuals focused approach through database marketing,
with a score of 55+ (and invited them to an while the imagery used can reflect the lifestyles, at-
event). Others with scores of 29–54 were invited titudes and aspirations of these innovators and
but didn’t get a phone. Microsoft placed ads on early adopters of fresh ideas. We are also particu-
Facebook Marketplace and partnered with larly interested in the influencers, opinion formers
Flavorpill, a daily guide to cultural events, to (formal influencers like journalists, judges, consult-
reach “tastemakers (massive following) and ants) and opinion leaders (informal, often bloggers
influencers”. Result: thousands of people vying and tweeters) who spread information. Communi­
to get into the events and conversations cations agencies regularly use ‘blogger outreach
reaching tens of thousands before, during and programmes’ to identify and work with opinion
leaders.
after the event.’
There are several different approaches, including
Solis (2012)
Campbell’s Soup’s Warhol campaign (see p 562);
* Klout used to rate an individual’s online social they approached key media (ie journalists) and
influence via the Klout Score. opinion leaders (eg bloggers) through an intensive
sampling campaign, while also offering product for
photo shoots.
 162 Part One | Communications Background and Theories

F I G U R E 5 . 2 You can watch digital guru,

WARNING
Zaid Al Zaidy, talking about how agencies use
Influencers must state, when posting, ‘Ad’ if they’ve ‘blogger outreach’ programmes on the
been paid, given, or loaned things.’ See the CMA ­PRSmith1000 channel on YouTube
(2019) ‘Social media endorsements: Being
transparent with your followers’.

Virtual influencer: The search

engine
Instead of watching ads, building brand relation-
ships over time and eventually buying a particular
product or service, customers can now speak into
their phone and ask it to get a certain product or
service. It duly obliges, as this virtual influencer,
Google Voice, searches carefully and delivers useful
suggestions for purchase. A high Google ranking,
for some, acts as an endorsement of quality (or at
least relevance). Mobile apps compare prices by just rule may be derived from the 90-9-1 rule from Ben
swiping the phone screen over the bar code or just McConnell and Jackie Huba (2006), which de-
keying in the brand name. scribes activity on online forums: 90 per cent lurked
(or observed or read posts); 9 per cent commented;
1 per cent created new posts. Although it is referred
Influence is a measure of social capital to as the 90-9-1 principle or rule (and occasionally
the 1-9-90 rule) it is in fact the 89:10:1 ratio, but
this is not very memorable, hence the 1 per cent rule
‘Social capital is a culmination of 3 pillars:
is also used.
Reach (popularity, proximity, goodwill);
Relevance (authority, trust, affinity); and
Resonance (culmination of reach and
relevance: frequency, period, amplitude). ‘Nokia has a community of advocates in each
Resonance is also how long something will stay country who are managed through a specialist
alive in the stream before attention dissipates.’ agency, with updates centred around a special
Solis (2012) blog for influencers, Nokia Connects, which has
resources put into it reflecting its importance.’
Nokia Connects for Nokia advocates

Advocates
Brand advocates are invaluable as they promote Interestingly, Wikipedia found something similar.
your brand, usually to your target market. These They suggest that in a collaborative website such as
are your precious 1 per cent of customers that dem- a wiki, 90 per cent of the participants of a commu-
onstrate high levels of engagement, strong brand nity only view content, 9 per cent of the participants
loyalty and tell others about your brand. Sometimes edit content, and 1 per cent of the participants ac-
called the 1 per cent rule, they are the ones that tively create new content. These numbers may re-
write nice reviews about your brand and recom- duce as people find themselves increasingly busy.
mend your brand to other people. They are special. What percentage of your audience, your fans, your
They need to be treated as special. The 1 per cent likers will engage with your site, blog, page or
 5 | Communications Theory 163

whatever platform/s you use? Some are more active want to see and not necessarily what is sent. An
than others. And some of the active audience are more understanding of the target receiver or audience
active than others. You need to know (and reward) helps to identify what is important to the audience
these active people, as they are your a­ dvocates. and how symbols, signs and language are inter-
Do not forget staff advocates. If your employees preted. The message is ‘dressed up’ or ‘coded’ in an
can be mobilized to share and engage with the con- appropriate way, sent through a media channel and,
tent marketing that you are generating, this can if it gets through all the other noise, finally ‘decoded’
amplify your content and messages enormously. by the receiver. Guinness advertisements basically
Tools like GaggleAMP help staff advocacy expand its ask their target audience to drink Guinness, but they
reach with accessible content, league tables and more. are very carefully coded. For example, ‘It’s not easy
being a dolphin’ were the only words uttered in one
of their television advertisements. The audience
Communications models decodes the message (correctly or incorrectly) and
ultimately rejects, accepts, stores or decides whether
to include Guinness in its ‘considered set of brands’
No simple diagram can reflect all the nuances and
or not. Correct decoding does not always work; for
complexities of the communication process. This
example, an anti-drink ad campaign backfired by
section considers some basic theories and models.
inadvertently glamorizing the habit (see the next
box, ‘Decoding drunken messages’). Amidst the
Single-step communications model careful coding and decoding there is noise; the extra-
neous factors that distract or distort the coded mes-
There are three fundamental elements in communi- sages. Figure 5.4 demonstrates this.
cation: the sender (or source), the message and the The sender monitors feedback (eg whether the
receiver, as shown in Figure 5.3. receivers change their behaviour, facial expression,
This basic model assumes that the sender is active, beliefs or attitudes) so that the message (and/or the
the receiver is inactive or passive and the message is channel in which it is sent) can be modified or changed.
comprehended properly. In reality this is rarely the With so many other advertisements out there it is easy
case. Chapter 4 demonstrates how we see what we to understand why so little communication actually
gets through and works on the target market.
Despite the attractions of one-to-one marketing,
F I G U R E 5.3  A simple communications mass communications such as television advertising
model are still considered attractive because they can reach
a large audience quickly and cheaply (when com-
paring the cost per thousand individuals contacted).
Sender Message Receiver In fact, although TV channels are fragmenting, TV
viewing is increasing year on year in most of

F I G U R E 5.4 The communication process

Noise

Sender Encoding Message Decoding Receiver

Feedback

SOURCE: Based on Schramm’s 1955 model

 164 Part One | Communications Background and Theories

Europe and the United States. Having said that, filtered through opinion leaders to the mass audi-
much of this kind of mass advertising is often ence. Figure 5.6 shows how messages are filtered
ignored or distorted by an individual’s information through opinion leaders, as well as going directly to
processing system. However, there is usually, within some members of the target audience.
the mass audience, a percentage who are either When opinion formers (OF) are added in, the
actively looking for the particular product type or communications model becomes a little bit more
who are in a receptive state for this type of message interesting. Opinion formers can be separated from
(see the financial services example in the box opinion leaders, as shown in Figure 5.7. Opinion
‘Floating targets’ on p 267). Mass communication formers are formal experts whose opinion has influ-
is therefore of interest to many marketing commu- ence, eg journalists, analysts, critics, judges or mem-
nicators. It is not the single-­step process it was con- bers of a governing body. People seek their opinions,
sidered to be in the early mass communications and they provide advice. Opinion leaders, on the
model shown in Figure 5.5. other hand, are harder to identify – they are not
This kind of inaccurate model of mass communi- formal experts and do not necessarily provide
cation suggests that the sender has the potential to advice, but other buyers are influenced by them.
influence an unthinking and non-interacting crowd. Other customers look toward them. Opinion lead-
Audiences (receivers) are active in that they process ers often enjoy higher social status (than their
information selectively and often in a distorted immediate peer group), are more gregarious and
manner (‘We see what we want to see’). Receivers have more confidence to try new products and ser-
(the audience) talk to each other. Opinion formers vices. Endorsements from both opinion formers and
and opinion leaders also influence the communica- opinion leaders are valuable.
tions process. Today’s communications models are The opinion formers are often quoted in promo-
more sophisticated. tional literature and advertisements, while the style
leaders are often seen with the brand through clever
editorial exposure engineered by public relations
Decoding drunken messages professionals. This can be generated by collecting
third-party endorsements, creating events around
celebrities and ‘placing’ products alongside celebri-
‘Drinks manufacturer Diageo’s “The Choice Is
ties (eg branded mineral water on the top table at
Yours” campaign implied that being very drunk
press conferences or actual product placement in
with friends carries a penalty of social films). In B2B markets, blue-chip customers are
disapproval. However, for many young people opinion leaders and are much sought after, as their
the opposite is often the case. A University of presence on a customer list influences other custom-
Bath research team found adverts which show ers. Both opinion formers and opinion leaders can
drunken incidents – such as being thrown out of contribute towards credibility. ‘Credibility before
a nightclub, or passing out in a doorway – are visibility’ means that a solid platform of credibility
often seen by young people as being typical of a should be developed before raising visibility with
“fun” night out, rather than as a cautionary tale. any high-profile activities.
Lead researcher Professor Christine Griffin said:
“Extreme inebriation is often seen as a source
of personal esteem and social affirmation Multi-step linear communications
amongst young people.”’ models
BBC News Channel (2007)
Communication is in fact a multifaceted, multi-step
and multi-directional process. Opinion leaders talk
to each other. Opinion leaders talk to their listeners.
Two-step linear communications Listeners/recipients talk to each other (increasingly
model with discussion groups and internet groups) and
subsequently feed back to opinion leaders, as shown
Katz and Lazarsfeld’s two-step hypothesis (1955) in Figure 5.8. Some listeners or readers receive the
helped to reduce fears of mass indoctrination by the message directly and some recipients talk to the
all-powerful media. It assumed that mass messages message sender (eg the brand) directly.
 5 | Communications Theory 165

F I G U R E 5.5  One-step communications Noise, channels and feedback can be added to the
multi-step model to make it more realistic, as shown
model in Figure 5.9. Feedback can either be formal market
research, or customers communicating with the
brand (via social media or CRM/customer service)
or customers communicating about the brand (most
brands actively listen to online discussions about
Sender Message their brands using listening tools – more later).
Meanwhile, the process of communicating with
groups is fascinating. Group roles (leaders, opinion
formers/leaders and followers), group norms and
Receivers group attitudes are considered in ‘Group influence’
(p 146). In fact, all the intervening psychological

F I G U R E 5.6 Two-step communications with opinion leaders (influencers)

R
O.L R

Sender Message R
O.L R

F I G U R E 5.7 Two-step communications with opinion leaders and opinion formers (influencers)

R
O.L
R
R
O.F
R
R
Sender Message
R
R
O.F
R
R
O.L
R
 166 Part One | Communications Background and Theories

F I G U R E 5.8 Multi-step communications model (a) with OL talking to each other

R
O.L
R
R
O.F
R
R
Sender Message
R
R
O.F
R
R
O.L
R

F I G U R E 5.9  Multi-step communications model (b) with OL talking to each other and recipients
talking back to OLs (and brands)

R
Noise O.L
R
O.F
R
Sender Message Channel
O.F R

R
O.L

R
Feedback
R

variables can be added into the communications Winning over opinion leaders/influencers can be
models to show how perception, selection, motiva- key to any marketing communications campaign,
tion, learning, attitudes and group roles all affect the whether B2B or B2C. Take B2B: IBM linked up
communication process. The intervening variables with the Marketing Society, as its 3,500 members
and some more complex models of buyer behaviour represented key movers and shakers in the business
are considered in more detail in Chapter 4. world. Consider B2C: KangaROOS trainers targeted
 5 | Communications Theory 167

opinion-leading celebrities and children’s TV show

presenters by giving them free shoes. P&G, Unilever
The Martian:
and Microsoft trial products with hundreds of thou- Personalized video trailers
sands of people.
20th Century Fox create personalized trailers for
The Martian on Twitter to drive highly personal and
meaningful interactions with fans, and ‘the
James Bond: Opinion leader/influencer engagement levels were out of this world’
extraordinaire (Redgate, 2016a). It does not give studios carte
blanche to spam everyone who has ever mentioned
The fictional character James Bond, and the 25 going to the cinema or ‘liked’ a film. ‘Engagement
movies about, him have always influenced others. needs to be focused (and must), identify real intent
From the Aston Martin sports car to Avon, Omega from fans and use content which will resonate.
and Coca-Cola, product placement has generated Ignoring this could in fact do more harm than
significant revenues for the James Bond franchise. good’(Redgate, 2016b). See Chapters 13, 16 and 20
From Pan Am (remember that airline?) to Virgin for more. See http://prsmith.org/blog/
Airlines, they all feature in various Bond movies ‘Imagine what you could do with this video?’ (2019).
and all of these brands have influenced others. ‘This kind of personalized content really
amplifies our social campaigns, taking these
channels to a new level of relevance for fans…
that goes beyond traditional social marketing.’
Personalized communications Chris Green, Marketing Director
Database marketing and direct mail perfected the at 20th Century Fox (2016)
personalization of messages in the 1980s. Then
email marketing (1990s) combined with marketing
automation (2000s) took personalization to a new This changes the original communications model to
level. It has been possible to personalize web pages look like Figure 5.10. Sender sends personalized/
for some time (so that pages greet each visitor by individualized messages directly to recipients or via
name and offer them tailored, relevant, content). an opinion leader/influencer. This personalized
Now, very fast, scalable and extremely personalized video process enables recipients, subsequently to
videos have arrived. become nano-influencers when they share the video.
How about 50,000 personalized trailer videos This is what some chief marketing officers now call
for xyz movie (with an individual’s name and the one-to-one mass marketing.
words they have actually posted about the movie
xyz on social media) – all delivered within two
hours? Most, if not all, of the 50,000 recipients of Listening to your market’s
this personalized video are very likely to share this conversations
personalized video with their friends. Listening to the market has never been easier. Here
People posting comments about the movie with are seven ways (adapted from PR Smith’s ‘Social lis-
the hashtag (#moviexyz) can be tracked. Their tening skills’ blog post, http://prsmith.org/blog/,
comments are considered to be a form of ‘intent’ 2014). Listen to:
(or interest). ‘Their tweet or comment and some-
times their photo are collected and embedded in ●● customer service;
the movie trailer (which appears in the clip’s first ●● customer feedback (post-sales try Reefo,
three seconds – remember shortened attention Feefo or Trust Pilot);
spans)’ (Redgate, 2019). They are then given the ●● customer communities (GetSatisfaction,
option of keeping the personalized video or delet- UserVoice, UserEcho);
ing it and of course opting out or in re any future
communications. ●● local chatter (Twitter’s advance search,
Hootsuite, Social Bro);
 168 Part One | Communications Background and Theories

F I G U R E 5.10 Revised communications model: One-to-one mass marketing

R

Message 1 O.L R

Message 2 R

Sender Message 3 R

Message 4 R

Message 5 O.L R

Message 5 R

●● websites (listen to several via feed readers); ●● listen and engage in conversations about
●● influencers (GigAlert, Newslee, your brand.
Followerwonk); This requires a cultural and organizational shift for
●● the mood of the market – sentiment analysis some marketing departments to become a listening
(Talkwalker, Brandwatch). and sharing culture rather than a selling culture.
You can also search for topics, brands, products, by
searching for specific hashtags, just like Tim Redgate’s Develop a systematic listening
team did for The Martian.
Organizations that are not listening to online team and a system to use the
conversations about their brand are missing a major information
opportunity. If someone attacks a brand there is an
opportunity to address any criticisms and rectify the Who listens to and responds to comments on all
issues before the rumours spread out of control. If the relevant social media platforms? Who compiles
someone applauds a brand there is an opportunity the analysis and the reports? Who analyses the
to leverage this comment. Conversations cannot be comments, complaints and suggestions? What hap-
controlled like advertising messages, but organiza- pens to all this valuable feedback information?
tions can feed accurate information into conversa- More and more organizations are using third-party
tions as well as being seen to listen and care. In organizations or their software to scan for any on-
addition to collecting crucial feedback, ideas and line comments, discussions or tweets regarding
public comments from the marketplace, marketers their brand, their company, their customers or their
are provided with a welcome platform to get their competitors.
message across, if it is relevant. This also grows a
brand’s presence wherever the market congregates
online. Ignoring these conversations leaves an organ- Personalized communications
ization on the outside, soon to be replaced by models: Messaging
another brand that does want to be a part of the
conversation. Fifty-five billion messages are sent every day on the
Social media provides a platform to: WhatsApp message platform alone (Tung, 2017).
WhatsApp has 1.5 billion users, Facebook Messe­
●● reach out to increasingly difficult-to-contact nger has 1.3 billion users (both are owned by
customers; Facebook) and China’s WeChat has 1.1 billion users
●● help customers by sharing expertise (and the (Statista, 2019). Back in 2017, the messaging apps
brand) with audiences; already had 20 per cent more monthly active users
 5 | Communications Theory 169

than social networks and 3 billion snaps were created done via mobile, it is perfectly logical for marketers
every day on Snapchat (Mediakix, 2017). It looks to follow their customers into this space. With 2.5
like messaging is getting bigger than social media. billion customers using instant messaging (IM) (The
Economist, 2016) on Facebook, WhatsApp and
China’s WeChat, an opportunity opens. Within a
The question emerges: Is messaging the world’s couple of years IM will reach about half of human-
new media channel? ity – 3.6 billion people. We are not quite there yet!
But heading in that direction.
Combine this with customer dissatisfaction from
These messenger apps help users communicate with lousy customer service (including endless auto-
each other singularly and/or in groups. They can re- mated telephone service systems and sloppy chat-
ceive personalized content, watch videos, chat with bots) and a double opportunity opens. High-quality
their contacts, and even shop with these apps. chatbots can fill this opportunity gap.
Marketers realize that these messenger apps have Facebook Messenger developers had already cre-
massive user numbers and therefore they are a seri- ated 100,000 bots for Messenger in the first year of
ous new medium to consider, even though it is a the Messenger Platform (Johnson, 2017) while
one-to-one conversation model using personalized other platforms such as Twitter, Skype and Slack are
communications (Figure 5.11). actively promoting chatbots. Chatbots can be inte-
grated into many social media channels, and CRM
R is receiver and marketing automation systems. This requires
one-to-one communications as in the personalized
The average value of a WeChat user, by 2020, is esti-
message model Figure 5.11.
mated at $15.65 while the average user on Facebook
Companies are beginning to realize that one of
is forecasted to be worth almost $5 (Clark, 2017).
the key places for selling and servicing is on Facebook
This is likely to increase as Facebook continues to
or WhatsApp rather than just web pages. With 2.5
develop new features (music, TV, and ecommerce).
billion people using instant messaging and spending
on average 200 minutes a week on WhatsApp, that’s
Personalized communications quite a market. (Lobo, 2017). (Note that these num-
bers differ to other research findings.)
models: Chatbots and messaging WeChat offers a good example of how this can
As more and more humans socialize via social media function. Consider a restaurant, where users can
(via mobile), and as more and more transactions are read the menu, order and pay through the mobile

F I G U R E 5.11 A one-to-one conversation model using personalized communications

Message 1

Reply to 1 R

Message 2

Reply to 2 R

Sender Message 3

Reply 3 R

Message 4

Reply 4 R

Message 5

Reply 5 R
 170 Part One | Communications Background and Theories

F I G U R E 5.12 Active monthly users on messenger apps

WhatsApp 1500

Facebook Messenger 1300

Wechat 1058

QQ Mobile

Skype 300

Snapchat 291

Viber 260

LINE 203

Telegram 200

0 250 500 700 1000 1250 1500 1750

Monthly active users in millions
SOURCE: Statista (2019)

phone app. Indeed, it has been so successful that 40

per cent of mobile transactions in China are now programme on Einstein the bot could chat with
through WeChat. users and share information about the show
Chatbots, or chat apps that use artificial intelli- including quips about relativity and other
gence to receive and respond to messages, are rising Einstein topics.
in popularity. Typical outreach click-through rate The chatbot channel has to be the best
ranges from 15–60 per cent compared to a click- marketing channel for customers. “Talking to
through rate of 5–10 per cent for a marketing email Einstein” in real time – albeit via bot – delivered
(Siu, 2018). a human 1-2-1 chat with the great man as if the
user were speaking to a friend and
simultaneously connecting the brand and
consumer in a more intimate way.
National Geographic’s genius chatbot In one day alone, the bot has generated
stellar engagement, including 6 to 8-minute
‘National Geographic promoted its TV show average conversations, 11 turns per
Genius (chronicling the lives of figures like conversation, 50 per cent user re-engagement,
Albert Einstein and Pablo Picasso). The Nat Geo and an involved community of followers.’
Genius Facebook page presented a messenger Siu (2018)
bot for each feature programme, eg for the
 5 | Communications Theory 171

Personalized communications Just Eat’s chatbot gets abuse, occasional

models: AI avatar chatbots wit and marriage proposals.
As mentioned earlier, have a look at @LilMiquela
‘Two challenges: parrying the f**k offs and
on Instagram to see the next level of communica-
flirtations, while making sure customers get their
tions where one-to-one conversations can be held
food on time. If at any point you say, “My food is
with her 1.5 million followers. At present, we are
unsure whether it is AI driven or manually up- late”, then it triggers to a human being. Not relying
loaded. We suspect AI – so keep an eye on this on a piece of hardware to have an interaction.’
model (literally). Crowcroft (2018)

Advantages of chatbots
●● Always on 24/7/365.
For more on clever bots, shopping bots, marriage
●● Never get tired, sick, take holidays, or bots, divorce bots, research bots and videos of
require insurance or medicals. the world’s first robot citizen, Sophia, see
●● Faster – solving customer problems or http://prsmith.org/blog/ or specifically see
getting the job done – which satisfies ‘Here come the clever bots: Bursting with artificial
customers. intelligence?’ (16 July 2016) and ‘Here come the
●● Better service – getting cleverer – perhaps really clever bots: Where AI meets customer
eventually serving customers better than needs’ (8 November 2017).
humans.
●● We already prefer to deal with a machine
than a human when withdrawing cash.
Integrated marketing communications are more im-
●● They collect data all the time. portant than ever. Chief marketing officers (CMOs)
now have a broader role, which realigns marketing
Disadvantages of chatbots communications with the new realities of customer
decision-making. They have to manage the usual
●● Fear of fake bots, negative bots, trolls, used marcomms, product development, market research,
to pollute and hijack conversations. and now data management.
●● Possible breaches of copyright or defamation
of an individual or organization – who is
liable? Multi-step non-linear
●● Customers think bot conversations are communications models
private one-to-one conversations without
realizing the conversations can be viewed Let’s take this a stage further and consider a com-
and analysed by humans. munications model, where conversations revolve
around the brand rather than just being messages
●● Bots can turn negative (witness the video of sent by the brand. Markets are conversations. Word
Sophia in Saudi Arabia – see http://prsmith. of mouth conversations and comments work more
org/blog/) and Microsoft’s chatbot ‘Tay’, quickly online than offline. Online customers can
who in 2016 learned to become a swearbot talk, first to each other (C2C) and second, back to
supporting Hitler with just 24 hours of the company (C2B). The flow of communications
machine learning. eventually becomes like a web of conversations
●● Data must be carefully managed in line with woven between customers and opinion leaders –
GDPR – if not, large fines are coming. and all built around the brand (see Figure 5.13).
 172 Part One | Communications Background and Theories

F I G U R E 5.13 Simple web communications model

C
C C

C C
O.L
C C

C C

C O.L Sender O.L C

C C

C C
O.L
C C

C C
C
C = Customer

O.L = Opinion leader

There are conversations about your brand between brand. This could be a conversation (usually shar-
customers. There are other conversations started by ing some interesting content) going viral if there are
influencers, many of whom are paid to do so; some a lot of opinion leaders/influencers talking about it.
just have to wear the brand or attend a brand event
or venue to trigger other opinion formers (journal-
ists) to trigger another conversation. In a sense, a Chewing gum hysteria
web of conversations is spinning around the brand.
Marketers monitor these conversations, which Rumours spread in the Egyptian university town of
include comments, likes and shares. Another conver- Al-Mansura that after chewing certain brands of
sation or comment that generates a lot of business is gum female students experienced uncontrollable
a referral, where happy customers become advocates passion for their male peers. Time Magazine (1996)
and recommend or refer other customers to your reported that ‘in a society where girls are expected
brand. to remain virgins until marriage the news has
Another form of referral is affiliate marketing generated considerable anxiety. Suspicion of who
where a third-party website promotes another might be spiking the gum with aphrodisiacs fell on
brand in return for a percentage commission, eg the usual suspect, Israel, frequently accused of
websites that host a page promoting the SOSTAC®
supplying the Egyptian black market with
Certified Planner programme earn 15 per cent from
pornography. However, laboratory analysis showed
any traffic that (a) comes from the affiliate site to
that some gum samples actually lowered the libido.’
www.SOSTAC.org and (b) converts (registers to
Scientific fact may not be relevant. For once a
take the course).
Finally, Figure 5.14 shows an advanced commu- rumour gets going, ‘the suggestibility factor can be
nications model with customers talking to each so strong that it can greatly affect one’s mind and
other on forums, groups, platforms and opinion actions without there being a scientific
leaders talking to each other too – all about your explanation’, says sociologist Madiha El Safty.
 5 | Communications Theory 173

F I G U R E 5.14 Advanced web communications model

C
C C

C C
O.L
C C

C C

C O.L Sender O.L C

C C

C C
O.L
C C

C C
C

Adoption model FIGURE 5.15 The adoption model

Several different hierarchical message models are
considered in Chapter 4. The adoption model
(Rogers, 1962) is such a model. As shown in Awareness
Figure 5.15, it attempts to map the mental process
through which individuals pass on their journey to-
wards purchasing, and ultimately adopting (or reg-
ularly purchasing), a new product or service. This Interest
somewhat simplistic hierarchical model is never-
theless useful for identifying first, communication
objectives and second, the appropriate communica-
tions tools. Evaluation
For example, television advertising may create
awareness, while a well-trained salesperson, expertly
designed brochure or product comparison website,
Trial
or iPhone app may help individuals in the evalua-
tion stage. In reality, the process is not simply hier-
archical. Some individuals move directly from
awareness to trial, while others loop backwards
Adoption
from the later stages by never actually getting
around to trying the new idea, subsequently forget-
ting it and then having to go through being made
aware of it again.
 174 Part One | Communications Background and Theories

product). Their profile was very different from those

Guinness: An individual’s who were last to try a new idea (the ‘laggards’).
adoption process Opinion leader characteristics were part of the in-
novators. The key to successful marketing of inno-
Although it is not a new product, Guinness has vations is to identify, isolate and target resources at
adapted the adoption process. They researched the the innovators rather than everyone (84 per cent
adoption process for a pint of Guinness because will not buy the product until they see the innova-
high increases in consumption among young tors and early adopters with it first). The ‘early
session drinkers resulting from the previous ad adopters’ are the second group to adopt a new idea
campaign were not sustained. This prompted the (they represent 13.5 per cent of the total market),
questions: How does one adopt a pint of Guinness? followed by the ‘early majority’ (34 per cent), the
How many pints, sessions or weeks does it take ‘late majority’ (34 per cent) and the ‘laggards’ (16
before becoming a regular, fully converted, loyal per cent) (see Figure 5.16).
Guinness drinker? The answers to these questions Each group has a different profile, encompassing
were carefully collected before the commencement income, attitudes, social integration, etc in a B2C
of the campaign. market. Innovators are venturesome and socially
mobile, and they like to try things that are new. The
early adopters tend to be opinion leaders who care-
fully adopt new ideas early. In the retail sector,
Nielsen identified early adopters as multiple card
holders (among other things), who are very differ-
The diffusion of innovations ent from single card holders in that they are signifi-
Rogers (1962) was also interested in how a new cantly more promiscuous in their card usage. The
idea spreads or diffuses through a social system or early majority (who adopt earlier than the majority
market. He defined diffusion as ‘the spread of a new of the market) are even more careful, almost delib-
idea from its source of invention or creation to its erate, in their buying process. The late majority
ultimate users or adopters’. Several groups who adopt only after they have seen the majority of peo-
moved towards adoption – at different rates – were ple try it. They tend to be sceptical. The laggards are
identified. The first group to try a new product were self-explanatory – tradition-bound and the last to
called ‘innovators’ (approximately 2.5 per cent of adopt.
all of the buyers who will eventually adopt the new
Crossing the diffusion chasms
Geoffrey Moore (1999) applied the diffusion of in-
F I G U R E 5.16 The diffusion of innovations novations to the B2B sector and, in particular, tech-
nology innovation. Although he gave different
40 names to the segments, the principle was the same:
focus on and find the innovators and early adopters
35
first. His key point is that there are gaps between the
30 segments – gaps so big that they are chasms into
which many companies fall and never climb back
25
out (see Figure 5.17). The gap between early adop-
20 ters and the early majority is massive. Whereas the
15 former seek innovative products, like exploring how
they work and accept some teething problems, the
10 latter group (the early majority) will accept only a
5 tried-and-tested fully functional solution with zero
risk. They will also seek a different package. In the
0
Innovators Early Early Late Laggards e-learning market, while early adopters like IBM
adopters majority majority were happy to buy CDs and make them integrate
SOURCE: Rogers (1962) with their training programmes, the early-majority
 5 | Communications Theory 175

F I G U R E 5.17 Diffusion of innovations: ●● The law of the few. A relatively small group
of adventurous influencers are powerful.
The chasm between the segments Marketers need to identify these gregarious
and socially active ‘connectors’ and then
40
develop relationships with this small group
35 of ‘socially infectious early-adopters’ or
30
connectors (Gladwell, 2000).
●● The stickiness factor. The product, service, idea
25
or message has to be intrinsically infectious.
20 Marketers need to systematically ‘tweak and
test’ or refine and improve against diffusion
15
criteria. ‘By tinkering with the presentation of
10 information we can significantly increase
5 stickiness’ (Gladwell, 2000).
●● The power of context. Ideas and innovations
0
Innovators Early Early Late Laggards spread quickly when they fit the context or
adopters majority majority are relevant to the group or its environment.
SOURCE: Moore (1999) You can exploit the bonds of memory and
peer pressure in groups of 150 or less. ‘In
order to create one contagious movement,
you often have to create many small
customers like BT needed a different solution: CDs, movements first’ (Gladwell, 2000). That’s
workbooks, textbooks, workshops and accredited why many small, tightly targeted movements
training programmes. This was a completely differ- are better than one large movement.
ent solution (to the same problem), albeit a much
more lucrative sale. Other e-learning companies did Many organizations, including giants like P&G,
not understand the difference between the two types Unilever, Diageo and Microsoft, started their tipping
of customers and the chasm between them. Many point initiatives several years ago. P&G set up its
threw millions of dollars at the e-learning market ‘connector panel’ in 2002 in the United States with
and it all fell into the chasm. Casualties followed. 200,000 infectious teen connectors used to research
Marketers must recognize that offering exactly and seed new products. Prior to that, Microsoft re-
the same innovation (solution) to all the innovator cruited 450,000 early adopters to trial Windows 95
segments in total marketplace will fail. Match the in 1995 (‘ensuring that one in every 189 PC users
proposition (and the actual solution delivered) to had a pre-release copy’), enabling Microsoft to ‘cap-
the unique needs of each segment. This is the magic ture critical pre-launch feedback for the mass mar-
marketing formula once again (identify needs, ket launch whilst giving the consumers that count a
reflect them back to the buyer and deliver a reason- unique preview of their product that would generate
able product or service). word of mouth’ (Marsden, 2004).

Accelerating diffusion – the The end of the traditional

tipping point marcomms funnel model?
Malcolm Gladwell’s The Tipping Point (2000)
­applies to both B2B and B2C. It explores that mo- Marketers aim to reach customers at the moments
ment when ideas, products, trends and social behav- that most influence their purchasing decisions. The
iour cross a certain threshold and spread like old ‘funnel’ communications model started with cre-
wildfire. In his book, Gladwell suggests three key ating awareness (the wide end of the funnel with
initiatives that release the viral potential of new many brands) and then brand familiarity, followed by
ideas, products or services: brand consideration, followed by purchasing a single
brand (followed by repeat purchasing of the same
brand, ie loyalty, where only one brand is chosen).
 176 Part One | Communications Background and Theories

Is the old funnel dead? Should you communications across multiple digital
change your model? channels. To enable this, we’re fortunate today
to have many martech options for marketing
‘Consumers are moving outside the purchasing automation, so we can create a coordinated
funnel – changing the way they research and contact strategy to engage audiences through:
buy your products. If your marketing hasn’t
●● automated email marketing like welcome,
changed in response, it should.’
nuture and win-back sequences;
Court et al (2009)
●● display ad retargeting, eg via Google
AdWords Display network remarketing;
The old linear funnel model misses many of the new ●● on-site personalization recommending next
touchpoints, which can occur late in the buying best-product, offer or content to convert;
process. For example, a customer is looking at buy-
ing brand X, but just before clicking the ‘buy’ but- ●● social media retargeting available on
ton she checks for customer comments and ratings Facebook, Instagram, Twitter and LinkedIn;
both on the same site and on other sites, effectively
●● traditional channels like direct mail or phone
going back to the ‘evaluation’ stage of other linear
contact.
buying models despite being apparently at the ‘deci-
sion’ stage (see p 126). This renewed focus by marketers on prospect
Marketers need to be where these points of influ- and customer engagement, conversion and
ence occur, whether at the offline point-of-sale or mer- retention has led to the appearance of a new
chandising point or the online point-of-sale, or in the phrase in the digital marketing lexicon:
offline and online word-of-mouth discussion. For the customer lifecycle marketing, or sometimes just
latter, marketers monitor discussions about their lifecycle marketing.’
brand (and their competitors’ brands), whether on Chaffey (2018)
Twitter, forums or blogs, and automatically post their
messages (some ‘canned’ or pre-prepared) into the
conversation, with links to videos, demonstrations,
testimonials or the brand itself. This can be done man-
ually or as part of automated marketing (scanning, Sequential communication
identifying and rules-based selection of responses).
We need to think about a sequence of communica-
tions and not just campaigns. From first contact to
Customer lifecycle journey model welcome (onboarding) to ongoing help. Apply the
customer lifecycle journey model to your communi-
It is important to help visitors or prospects to be- cations. Interestingly, the 2019 KPI report by
come customers using a variety of tactical tools and Wolfgang Digital highlights this:
eventually help them to become repeat (lifetime) cus-
tomers, with a few lapses along the way. Continual The best converting websites have the ability to
relevant and personalized (if possible) contact helps attract that user back to their websites time and
time again. As a result, they have thundered ahead
to build a healthy relationship with customers.
of their one-click-wonder competitors. Focus on
ways you can re-engage your previous website
visitors through remarketing to really move the
‘This “relationship” begins today with the first needle on revenue growth. Long gone are the days
contact with the customer when they are simply when ‘remarketing’ was executed by chasing a user
a contact or prospect. We believe that the best around the Internet with the same banner ad until
way for a company or brand to build they puked. Remarketing done right, by today’s
relationships is through a planned always-on best marketers, is a sophisticated sequential
marketing approach of integrated communication. Creating additional touchpoints,
each adding a new layer of value, and reaching the
 5 | Communications Theory 177

same user on a new channel is about the smartest analytics, transaction histories, behavioural
thing a digital marketer can do in 2019. profiles and industry aggregates.
Wolfgang Digital (2019) ●● Agile project management. As tactical
campaigns fragment into more granular,
relevant, niche-like propositions, each one
Late deciders wait until inside the store targeted at dozens, hundreds or even
thousands of different contexts, fast-moving,
‘Consumers want to look at a product in action multiple project management skills are
required.
and are highly influenced by the visual
dimension: up to 40 per cent of them change ●● Experimental curiosity and rigour. As
their minds because of something they see, marketers seek constant improvement on
learn, or do at this point – say, packaging, their marketing ROI, they manage a constant
placement, or interactions with salespeople.’ flow of tests, testing new alternatives,
Court et al (2009) exploring new creative executions and
monitoring changes in response rates to
identify immediate opportunities and threats.
●● Systems thinking. Marketing is a set of
Attention, branding and processes. This means connecting all the
communication model (ABC) parts. Who gets customer comments,
summaries and key issues arising from social
Kerris Bright recently said that during her 10 years
media conversations? Which decisions does it
at Unilever, her team worked on the premise of the
influence? Who else needs this information
ABC model, ‘attention, branding and communica-
(eg salespeople, PR people, the board of
tion’. She pointed out that often marketers forget the
directors) and what decisions can it affect?
importance of ‘attention’ – if the message fails to cut
through nothing else really matters (Rogers, 2019). ●● Mashable software fluency. Those marketers
who understand the mashable web – a world
of mash-ups, widgets and application
New models required programming interfaces (APIs) – will have
The IoT means that devices, equipment, houses, competitive advantage. For example, it is
cars, clothes will communicate with us. We will no possible to connect and integrate a website’s
longer be dependent on smart phones, tablets and content management system with site search,
laptops as we step into the post-mobile era, as mes- RSS feeds, email alerts and e-newsletters, all
sages will arrive into our spectacles, car wind- serving very relevant content. Rose (2006)
screens, our jackets and clothes and all over our defines mashable in terms of a ‘web page or
homes and offices. So new communications models application that uses and combines data,
are required, with the opinion formers, leaders and presentation or functionality from two or
influencers sometimes being machines, search en- more sources to create new services’.
gines and AI partners/suppliers/facilitators. Add to
this the wonderful array of 3D messages and cus- Many of the previously discussed models offer some
tomer experiences being delivered by virtual reality insight into the communication process but, almost in-
and augmented reality and we have an exciting new variably, they distort or oversimplify the process of
communications frontier – requiring new thinking communication. Chapter 4 draws on some of the com-
and new communications models. munication models discussed here and looks at buying
models, the buying process and the intervening psycho-
logical variables. How do we buy? Why do we buy?
New skills required What influences our choices? Are there unconscious
Scott Brinker (2009) suggests marketers need five motives playing havoc with our d ­ ay-to-day shopping
new skills: behaviour? Chapter 6 attempts to look inside the cus-
tomer’s mind and answer some of these questions.
●● Analytical pattern skills. Mastering the flow
of data from social media feedback, web
 178 Part One | Communications Background and Theories

Key points from Chapter 5

●● Communication involves a two-way flow of ●● AI is and will continue to be integrated with
information. communications.
●● Communications also involves multiple flows of ●● Communication theories can be applied to
information. practical marketing situations.
●● Influencers are playing an increasingly large role ●● New models are required to meet the changing
in communications. communications landscape.

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Instagram’s virtual celebrities, BBC Capital, 2 could be hiring, Linkedin News, 2 October
April Crystal (2013) The 90-9-1 rule: Dead, different,
BBC News Channel (2007) Warning on anti-drinking or a distraction? Cultivating Community,
adverts, 10 December 8 July
Berners-Lee, T (2008) Google could be superseded, Cutlip, S, Center, A and Broom, G (2004) Effective
says web inventor, Times Online, 12 March Public Relations, International edn, Prentice Hall
Berners-Lee, T, Hendler, J and Lassila, O (2001) The International, Englewood Cliffs, NJ
semantic web, Scientific American, May Ehrenberg, A (1988) Repeat Buying, 2nd edn, Charles
Bernstein, M, Bakshy, E, Burke, M and Karrer, B Griffin, London
(2013) Quantifying the invisible audience in social Engel, J, Warshaw, M and Kinnear, T (1994)
networks, CHI 2013, 27 April–2 May Promotional Strategy: Managing the marketing
Brinker, S (2009) 5 new skills for the future of communications process, 8th edn, McGraw-Hill
marketing, Chief Marketing Technologist (blog), Education, Homewood, IL
23 February [online] http://chiefmartec. Floch, J-M (2001) Semiotics, Marketing and
com/2009/02/5-new-skills-for-the-future-of- Communication, Palgrave, Basingstoke
marketing/ (archived at https://perma.cc/A7DY- Gladwell, M (2000) The Tipping Point, Little, Brown,
NCX5) New York
Carroll, G (2010) Jargon watch: Delinkification, Godin, S (1999) Permission Marketing, Simon &
Renaissance Chambara (blog), 5 June [online] Schuster, Hemel Hempstead
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jargon-watch-delinkification/ (archived at matters, Gigaom, 9 July
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Chaffey, D (2018) What is customer lifecycle 20th Century Fox taps EchoMany to tweet
marketing? Smart Insights, 25 April personalised Deadpool movie trailers, The Drum,
Chen, Y (2017) What influencer marketing really 8 February
costs, DigiDay, 5 June Guirdham, M (1999) Communicating across
Clark, D (2017) 2017 tech trends: Chatbots will Cultures, Palgrave, Basingstoke
reshape messaging apps, Wall Street Journal, Johnson, K (2017) Facebook Messenger hits 100,000
26 October bots, Venture Beat, April
CMA (Competition and Markets Authority) (2019) Katz, E and Lazarsfeld, P (1955) Personal Influence:
Social media endorsements: Being transparent with The part played by people in the flow of mass
your followers, CMA, 23 January communications, Free Press, New York
Court, D et al (2009) The consumer decision journey, Kelman, H (1961) Process of opinion change, Public
McKinsey Quarterly, June Opinion Quarterly, 25, Spring
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Kotler, P (2000) Marketing Management: Analysis, Richards, J (2008) Google could be superseded, says
planning, implementation and control, web inventor, Times Online, 12 March
International edn, 11th edn, Prentice Hall, Rogers, C (2019) The BBC’s customer chief on the
Englewood Cliffs, NJ power of marketing at the ‘extreme edges’:
Kulp, P (2018a) How artificial intelligence is Interviewing BBC’S Kerris Bright, Marketing
transforming influencer marketing, Adweek, Week, 24 January
20 August Rogers, E (1962) Diffusions of Innovations, Free
Kulp, P (2018b) Artificial influencers are attracting Press, New York
the attention of brands, Adweek, 20 August Rose, B (2006) Marketing mashup tools, iMedia
Lee, K (2015) Why your social media posts are more Connection (blog), 27 June [onine] www.
popular than you think: Inside the invisible imediaconnection.com/content/10217.asp
audience, Buffer Social (archived at https://perma.cc/H6Q8-PEPX)
Lobo, J (2017) 3 options for using chatbots for Schramm, W (1955) The Process and Effects of Mass
ecommerce, Smart Insights, 11 December [online] Communications, University of Illinois Press,
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ecommerce/ (archived at https://perma.cc/5AJN- Trust and mistrust of online health sites, 2004
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Lucas, J (1997) License to sell, Marketing Director Systems
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Manning, J (2012) 5 trust-winning tactics, The Smallbone, D (1969) The Practice of Marketing,
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Marsden, P (2004) Tipping point marketing, Brand Smith, PR (2014) Social listening skills, 6 January
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Charting citizen participation, Church of the Smith, PR (2016) Here come the clever bots: Bursting
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P6XF-YBWE) Where AI meets customer needs, 8 November
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with the personalisation trend, The Wall Blog, Statista (2019) Most popular global mobile
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 180 Part One | Communications Background and Theories

Tuck, M (1976) How Do We Choose? A study in Wolfgang Digital (2019) KPI report 2019 [online]
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send 55 billion messages per day, ZD Net, 27 July

Further information
The Nielsen Company The Semiotic Alliance (formerly Greg Rowland
85 Broad Street Semiotics)
New York, NY 10004 332 Lordship Lane
USA London SE22 8LZ
www.nielsen.com Tel: +44 (0)7779 611 656
www.semiotic.co.uk
Ofcom
Riverside House
2a Southwark Bridge Road
London SE1 9HA
Tel: +44 (0)300 123 3000
www.ofcom.org.uk
 181

06
Marketing
communications
research
LEARNING OBJECTIVES
By the end of this chapter you will be able to:
●● understand how market research reduces risk and improves decision-making;
●● list and explain the different types of research tools available;
●● apply the marketing research process;
●● appreciate the advantages and disadvantages between online and offline research;
●● identify and avoid the potential problems.

Introduction to market research and Visualization 190

decision-making 182 Problems and challenges 190
Relevant information reduces risk 182 Errors to avoid 191
Relevant information increases power 182 Types and costs of research 191
Asking great questions increases success 183 Quantitative research 193
Relevant information improves decision-making 183 Content marketing testing 199
How to make the perfect decision 184 Qualitative research 200
Information and competitive advantage 184 Test marketing 203
Marketing intelligence and information 185 Think ‘secondary’ first 204
Information overload 186
Information prioritization 187 In conclusion 204
Common sense 187 Key points from Chapter 6 205
The market research process 188 References and further reading 205
Problem definition and research objectives 188
Agency selection 189 Further information 206
 182 Part One | Communications Background and Theories

story (later in this chapter) could pick the ace as

Introduction to market soon as she knew what the other three cards were.
research and d
­ ecision-making Market research (information) also reduces risk. So
why not use research to reduce all risks? There are
Relevant information reduces risk, increases power three reasons – the three key resources (the 3Ms,
and creates competitive advantage if used correctly. men/women, money and minutes) are limited.
Today’s marketers have to be ruthless with their in- Firstly, knowing exactly what information is re-
formation needs and know exactly what it is they quired and how to gather it (whether commissioning
need to know. Then prioritize it, collect it, digest it a research agency or handling the research in-house)
and then, make better decisions equipped with this is a relatively rare management skill (the ability to
information. ask great questions); secondly, research costs money;
and thirdly, it takes time to define and write a brief,
carry out the fieldwork, analyse the data, write and
read a report and, ultimately, act upon the informa-
The X Factor: Market research makes the tion. The fieldwork (asking the questions and col-
decisions lecting the answers) can also give competitors an
early warning of intended activities. It can, some-
Simon Cowell’s TV phenomenon The X Factor uses times, alert them and give them time to respond.
research in a very structured and systematic
manner. He researches various product concepts
(singers) by testing them with customers
Relevant information increases
(audiences at home and at the theatre). The power
customers provide free market research, revealing In both military and marketing strategies, informa-
which product they prefer. The customers also pay tion creates power. If your organization knows
for this privilege (as they vote by phone). He then what its customers really want, and its competitors
refines the product concepts (trains them and adds do not, then it has a powerful advantage. If you
some production effects) and repeats the market know what a competitor’s next move is before they
research exercise (all the time making money from make it, then you are in a stronger position to react
the research). The final product testing is done with or even pre-empt the move. In negotiations, if one
a chosen song, which has already been recorded party knows more about the other party’s real
by each finalist. This final layer of market research needs, their resources and their options then the in-
almost guarantees the success of the new product formation holder has a huge hidden advantage.
(a pop star). The finalists present their version of The classic salesperson versus buyer situation
the song. The market research respondents emphasizes how sales and profits can be increased
(audience) complete the ‘survey’ via a text as a direct result of information: the salesperson
message (while paying for this privilege and desperately wants an order and is prepared to cut
simultaneously being highly engaged with the X prices to get the business. The buyer desperately
Factor brand). The most popular product is needs to buy the salesperson’s product because all
identified (most votes). The product (star) is stocks were destroyed the night before in a fire and
launched and usually becomes a chart-topping the salesperson’s company is the only company that
can supply the products immediately. If the buyer
product.
knows how desperate the salesperson is, then a low
price will be negotiated by the buyer. If the salesper-
son knows the buyer’s desperate situation, the sales-
person has the power. In addition, the salesperson
Relevant information reduces risk takes even more control if the buyer does not know
As more and more relevant information becomes how desperate the salesperson is to make a sale. In
available, risk eventually reduces to zero and cer- this situation the salesperson will make the sale,
tainty emerges. The young woman in the card trick probably at a higher price. Information is power.
Information can boost prices and profits.
 6 | Marketing Communications Research 183

Asking great questions increases of definitions, many of which involve the concepts
of massive volume, velocity and variety of informa-
success tion. In other words, what turns data into Big Data
Notice how senior managers always seem to ask is the amount of information, and the speed at
questions that are potentially embarrassing (be- which it can be created, collected and analysed’
cause sometimes you don’t know the answers). (Kaye, 2013). Big Data is not scary nor draconian
When they ask the question, you might think, ‘I nor Orwellian.
wish I’d thought of that’. Questions are indicators
of ability and seniority, or potential seniority. The
ability to ask the right question is a precious skill Big Data is everywhere
that usually takes time and practice to develop. The
ability to ask the right question is the precursor to Here are 10 useful ways Big Data is used – that you
providing the right answer. This is becoming in- probably didn’t know – from Lady Gaga to
creasingly important as too much information be- premature babies:
comes available and the potential for information 1 T he FBI is combining data from social media,
overload and information fatigue grows.
CCTV cameras, phone calls and texts to track
down criminals and predict the next terrorist
attack.
Information advantage: World chess
championship 2 S
 upermarkets are combining their loyalty card
data with social media information to detect
To avoid giving his competitor too much and leverage changing buying patterns. For
information, Bobby Fischer wore a green visor to example, it is easy for retailers to predict that a
stop Spassky, the challenger, from looking into his woman is pregnant simply based on her
eyes during an alternative world chess changing buying patterns. This allows them to
championship. target pregnant women with promotions for
baby-related goods.

3 F acebook is using face recognition tools to

Relevant information improves compare the photos you have uploaded with
those of others to find potential friends of yours.
decision-making
4 P
 oliticians are using social media analytics to
Before making a serious decision, always ask determine where they have to campaign the
whether you have the right information to make a hardest to win the next election.
great decision. Then define what information you
need. Get this information, digest it and then, and 5 V
 ideo analytics and sensor data of baseball or
only then, make an informed decision. The alterna- football games is used to improve the
tive is guesswork, which relies on luck, and is usu- performance of players and teams. For
ally an unnecessarily high-risk activity. On the other example, you can now buy a baseball with over
hand, proprietary relevant information (or knowl- 200 sensors in it that will give you detailed
edge) effectively creates competitive advantage, eg if feedback on how to improve your game.
an organization has unearthed some deep customer
insights that no one else has. 6 A
 rtists like Lady Gaga are using data of our
listening preferences and sequences to
determine the most popular playlists for their
What is Big Data? live gigs.
Big Data refers to relatively large amounts of struc-
tured and unstructured data that require machine- 7 G
 oogle’s self-driving car is analysing a gigantic
based systems and technologies in order to be fully amount of data from sensors and cameras in
analysed. ‘The much-hyped term has inspired a slew real time to stay on the road safely.
 184 Part One | Communications Background and Theories

8 T he GPS information on where our phone is moving marketers will use the marketing cloud
and how fast it is moving is now used to (multichannel marketing automation, content
provide live traffic updates. management tools, social media tools and
analytics platforms – more later) to create a
9 C
 ompanies are using sentiment analysis of
wall around their customers, which
Facebook and Twitter posts to determine and
competitors will consequently find difficult to
predict sales volume and brand equity.
break down (particularly because of
A hospital unit that looks after premature and
10  customers’ changing behaviours). This is now
sick babies is generating a live steam of every a race towards an automated integrated digital
heartbeat. It then analyses the data to identify marketing hub.’
patterns. Based on the analysis the system can PR Smith (2019)
now detect infections 24 hours before the baby
would show any visible symptoms, which
allows early intervention and treatment.
Try this next time you have a big decision to make.
Marr (2013)
You will find that you need some of the 3Ms (men/
women, money and minutes); usually there are not
enough minutes. However, if you plan ahead you
See p 97 for information on using data for profiling will get more information to help you make better
and prospecting, progressive profiling and integrat- decisions. A lot of the information is free.
ing all contact points, and layering on top third-
party databases to deliver even more specific profile
information defining exactly who your customer is Information and competitive
and how to reach them. See also p 377 on using advantage
­location-based data combined with third-party da-
tabases to target prospects very precisely. Can information be the principal source of competi-
tive advantage? A large, comprehensive, well-­
maintained and GDPR-compliant database creates a
How to make the perfect decision mini market belonging, at least in the short term, to
the company that owns the database. And databases
1 Define the issue, opportunity or problem are essentially carefully structured customer infor-
clearly. mation. This delivers an advantage over a poorly
managed database. Equally, information about your
2 List what information you need to make a
competitors can create competitive advantage if they
great decision.
do not have access to this information.
3 Get the information.
4 Digest the information.
5 Decide. The card trick

An Oxford Street card trick man places four cards

Cloud wars face down on a portable table. As the crowd
gathers, he shouts, ‘£10 to anyone who picks the
‘The marketing cloud is marketing nirvana – a ace.’ Embarrassment, scepticism and even
place, or a hub, where marketers automate mistrust run through the crowd. No one responds
and integrate all customer data, automatically to the offer of a simple £1 bet to win £10. As the
analyse it then continuously and automatically card man leans forward to show the crowd a crisp
serve highly relevant engaging content across £10 note, a grinning young man leans behind the
multiple channels at just the right time on the card man and sneaks a look at the outside card.
right platform to the right customer. Fast- It’s a jack of diamonds. Word quickly spreads
 6 | Marketing Communications Research 185

through the crowd that the outside card is not the The intelligent rep
ace. Prompted by the fun (and the improving odds)
someone shouts, ‘That’s not a real tenner.’ The In the United States one particular chain of stores
card man responds by stepping into the crowd to that sold Christmas crackers held buying days
allow a closer inspection of the £10 note. A second when their buyers would see visiting sales
stranger boldly leans across and briefly turns the representatives. Appointments were not accepted
other outside card over. It’s a two of hearts. The and, once they had registered with the receptionist
card man returns. ‘Come on now. Who wants to for the appropriate buyer, reps proceeded to queue
win £10?’ A well-spoken young woman replies, ‘If in a waiting room on a first-come, first-served
you show me one of the two middle cards, I will basis. The room had rows of desks with telephones,
place a £2 bet against your £10.’ The card man where the reps sat down quietly filling in order
accepts. What has happened here? Information forms, drafting letters, completing call sheets and
reduced the risk to zero. making phone calls. Although it was only 7.30 am, a
dozen registered reps were already busily working
away. By 8.05 am the room was packed. The large
chap beside me was on the phone at 8.00 am
Marketing intelligence reporting some hot information he had come across
during another breakfast appointment earlier that
and information day. He told his boss how the competition had
Every organization needs marketing intelligence offered the other buyer a new buyer-incentive
and information that lists secondary information scheme that would commence next month,
sources, and also includes online information tools followed by a new consumer-incentive programme
(many of which are free) that reveal instant infor- scheduled four months down the road. They had
mation about your customers, competitors, chan- now four months to react or pre-empt the
nels and market trends. A marketing intelligence competition!
and information system (MIIS) should be structured
and constantly refined as new sources become avail-
able and old ones become redundant.
Good salespeople are also masters at collecting
Good marketing departments monitor competi-
information about new product ideas, market
tors’ prices, products, leaflets, advertisements, mar-
trends, and competitors’ strengths and weaknesses.
keting content, social media platforms, satisfaction
Some reps also ask buyers what words and phrases
scores and customer comments if they can. This can
they use to search for their products and services.
be outsourced or done in-house. Estimating a com-
The answers need to be regularly and
petitor’s marketing spend on, say, ads, social media
systematically sent back to the marketing team to
and marketing content can also be done manually
be added to the key phrase inventory for search
(by collecting all the competitor’s press ads, social
engine optimization (SEO) and pay–per-click (PPC)
media content, seeing which content performs best
purposes.
on which platforms manually and then calculating
Staff members throughout an organization can
the costs from experience and/or rate card costs less
be trained or briefed as to what type of information
bulk discounts) or it can be done automatically
is considered important. Staff, if motivated, can
online (by services like www.spyfu.com for ads
scan their preferred trade journals, newspaper,
and https://buzzsumo.com for marketing content
online newsletters, blog, Pinterest board, etc, for
across different platforms).
items of interest to the company. Alternatively, a
The sales force can, if trained, provide the most
press clipping agency can do this work, or Google
up-to-date and relevant information from the MIIS.
Alerts will do a lot of the online scanning for free.
They are closest to the marketplace and in touch
Some of this information can then be fed into a
with what is happening. They need to be encour-
strengths, weaknesses, opportunities and threats
aged to collect relevant information.
 186 Part One | Communications Background and Theories

(SWOT) analysis. This is particularly useful in means every two days we create as much informa-
moni­ toring uncontrollable external opportunities tion as was produced in 2,000 years. That’s why
and threats variables such as political, economic, we’ve got what Gerry McGovern calls ‘content
social and technical factors. Many forecasting com- wars’.
panies specialize in certain aspects such as social In 2010, McGovern observed:
forecasting, and they will also carry out econometric
Never before in history has the human being had
­forecasting, which correlates the likely sales effect
such an ability to create information. Never before
resulting from a change in pricing or advertising have we been faced with so much information.
expen­ditures (price elasticity or advertising ­elasticity). It’s not faster computers. It’s not bigger hard
As with all information, you must decide exactly drives. It’s information literacy we need. We need
what information and intelligence you need and to create less information of a higher quality. We
when. Know which questions really need answers. need to be able to manage information much,
Today there are many online tools that can much better, getting rid of the junk and out-of-date
almost instantaneously deliver a stream of intelli- stuff. We need skills that help us search better, and
gence, answering questions about your competitors. to be able to judge better and faster the quality of
Here are some questions that can be answered eas- the stuff we find.
ily online by using some specific tools:
●● How good are your competitors’ websites?
●● How good are your competitors’ social Amidst the information overload and
media platforms? fatigue, remember to laugh
●● What social content works for your
competitors? ‘There is a very simple way of dealing with
●● What Facebook content works for your stress that is not often considered… laughing.
competitors? Laughter cures stress by pumping adrenalin and
●● What do customers say about your endorphins into the bloodstream. It reduces
competitors? muscular tension, improves breathing and
regulates the heartbeat.’
●● What keywords work best in your
Nurden (1997)
competitors’ PPC ads?
●● What inbound links are your competitors
using?
●● Do you have enough share of voice? This is very much required in today’s hyper-­
●● How big are your competitors’ marketing competitive marketplace.
team and budget? Way back at the turn of the millennium,
University of California professors Varian and
These and many more questions are explored in the Lyman (2000) noted that our ability to create infor-
‘SOSTAC® guide to writing your perfect digital mation had far outpaced our ability to search,
marketing plan’ (Smith, 2019). Remember to choose organize and publish it: ‘Information management –
carefully which questions you need to prioritize, to at the individual, organizational, and even societal
avoid drowning in a sea of information, otherwise level – may turn out to be one of the key challenges
known as ‘information overload’. we face.’ Marketing managers must learn to man-
age information pollution; otherwise they will make
ill-informed decisions and may well end up suffer-
Information overload ing from ‘information fatigue syndrome’. Reuters
By the end of today, another 4,000 books and an- reported that information overload combined with
other 7 million new web pages will have been pub- analysis paralysis and poor quality of life reveals
lished around the world. As Google CEO, Eric that ‘one in four people admit to suffering ill health
Schmidt (2010) said, ‘Every two days we create as as a result of the amount of information they now
much information as we did up to 2003’. That handle’ (Reuters, 2009). Out of 1,300 managers,
 6 | Marketing Communications Research 187

two-thirds said that their social life was affected by briefing a market researcher as to the kind of infor-
having too much information to process at work. mation that is required, it is often tempting to add
extra, ‘interesting’ questions. Before adding extra
information requests, think about your information
Information prioritization priorities and check that the following questions are
There is an unlimited amount of information avail- answered satisfactorily:
able and obtainable to all marketing managers; ●● What will I do with this information?
more than any manager can absorb, let alone pay ●● How will it affect my strategy or tactics?
for, in any one period. So the key is to define pre-
cisely what the problem, or opportunity, is and out- ●● What action or withdrawal may result from
line the kind of information that will help to make this information?
a more informed decision. An experienced market ●● How much is the information worth?
researcher (whether in-house or from an agency) ●● How much will it cost?
can guide the marketing manager towards defining
●● Can I afford it?
specifically what kind of information is needed.
Since the research budget is usually limited, the ●● When do I need it?
manager may then have to prioritize which kinds of ●● Have I checked all secondary sources? (See
information are more important than others. Ask Table 6.2, p 192.)
for ambiguous information and a lot of ambiguous
answers will be delivered. Ask for a dashboard and
you will get a dashboard crammed with dials, charts Common sense
and scores. It’s worth thinking about exactly what For example, the highly successful ice cream manu-
information you really need before accepting any facturer Ben & Jerry’s observed an increase in com-
information. plaints from buyers of Cherry Garcia ice cream.
Many customers were upset because they felt that
the product had too few cherries. What would you
Are you an information junkie? do? What extra information would you collect?
This is what they did – they asked the following
It has been suggested in previous editions of this questions. Firstly, was it only a regional problem?
book that a growing proportion of internet users They checked by matching shipment records with
find themselves addicted to information online. complaints. Secondly, did the problem arise from
Over 50 per cent of managers were accumulating the manufacturing process – was the quality not up
information they didn’t have the capacity to to scratch? But the ingredients turned out to be nor-
assimilate; in fact, they were overwhelmed by it. mal. After questioning almost every aspect, they fi-
Over half the respondents pronounced themselves nally found the source of the problem. The
to be ‘information junkies’ who got ‘cravings’ for photograph on the ice cream carton was not of ice
new information, especially online information. cream but of frozen yogurt, which appeared laden
Do you find yourself constantly checking your with cherries in comparison with the paler pink ice
emails, text messages and Facebook? Do you allow cream. They simply changed the image on the car-
yourself to interrupt your own conversations when ton and the complaints melted away.
you hear the ring of your phone or the ping of a new
text message? Hoping, perhaps unconsciously, that
this new information will be more interesting than Correlation is not causation: ‘Drinking
the person you are talking to? coffee from corporate branded mugs
increases job promotion’

A certain amount of discipline is needed to focus on ‘The survey found that 37 per cent of people
relevant issues and not become side-tracked by in- who have a coffee mug with their company logo
dulging in ‘interesting’ bits of information. When on it have been promoted within the last six
 188 Part One | Communications Background and Theories

months, compared to just 8 per cent of those market research findings that a carefully refined and
people who did not have a coffee mug with their tailored survey will.
company logo on it.’
A merchandise company Research plan
Statistically this is bordering on the ridiculous. The research plan clarifies whether to do the re-
search via your internal team or to go to an external
Counting numbers is one thing but suggesting the
market research agency, and whether desk research
correlation is predictive is another. We need proof
(secondary research) is required before commis-
that this hypothesis has been tested properly and
sioning any primary research. Research methodol-
can prove that there is a statistically significant
ogy (eg observation, survey, experiment, focus
association between owning a corporate branded
group or survey) along with the tactical choice of
mug and getting promoted. To begin with, samples fieldwork type (face-to-face, phone, online or post)
(that is, the number of respondents being surveyed) and the required degree of confidence plus sample
need to be large enough and also randomly chosen size, cost and timings need to be clarified.
to be statistically meaningful. The structure of the After the questionnaires have been agreed (and
questions, selection of respondents and statistical sometimes piloted), and the interviewers have been
analysis all need to examined before validating this trained, the fieldwork commences. Once that is
‘research’. completed the data must be analysed carefully to
identify any significant findings. Conclusions (and
sometimes recommendations) are subsequently
reported or presented to the management team.
Equipped with this information, the marketers can
The market research process make their decisions.

Using information efficiently starts with the ability Research brief

to define exactly what information is required.
Depending on the type of research, the brief can in-
This is a valuable management skill. Defining the
clude the situation, objectives and strategy (SOS)
problem or defining the research objectives is the
plus 3Ms from SOSTAC® (see p 264):
first step in the market research process (see
Table 6.1). Then you can decide whether you and ●● situation analysis (including target and
your team can collect this information, or whether marketing mix);
you need to use an external market research agency ●● objectives of the research (problem
and/or a data analytics company that can analyse definition – what information is required and
Big Data (such as historical location data com- what decisions should be made as a result of
bined with real-time location and demographic the research finding);
data).
●● strategy (why the information is required
and how the research findings may affect the
Problem definition and research communications strategies);
men/women (who will liaise with the
objectives ●●
agency);
Before going through the steps of the market re- ●● money (how much is the research budget?);
search process, it is worth emphasizing the im- ●● minutes (timing – when is the information
portance of defining exactly what information needed?).
you need and which decisions it will affect.
Otherwise you get information creep, delays and Note that some clients prefer not to divulge too
confusion. much strategic or tactical information for security
It is important to identify specific segments and reasons. On the other hand, the more the research
what information is required from each segment. A agency knows, the more useful the contribution to
one-size-fits-all survey may not yield the quality of the success of the project will be.
 6 | Marketing Communications Research 189

own observation of research agencies and their

Subcontract research but not advertisements or editorial coverage. Agency size,
understanding specialism or expertise, reputation, location and
whether the agency works for any competitors can
‘There are certain research functions, marketing be used as shortlisting criteria. The agencies that
research functions, that are sometimes provided ‘pitch’ or make a presentation will then be judged
by outside firms that are specialists in doing by the quality of their research proposal (Step 2 in
nothing but research. But the core aspect of Table 6.1), GDPR compliance, cost, credentials
marketing, which is understanding our customer and spin-offs (like free training). Even small details
and having a close bond with the customer, that can make an impression – for example, the num-
should never be turned over to anybody else.’ ber of bound reports that will be delivered when
Kanter (1996, 2000) the research findings are eventually presented, or
emailing presentations and providing client access
to extranets, so that clients can monitor project
progress. The personal chemistry or relationship
Agency selection between the client and the agency presenter is
If the organization is not handling the research in- often the key variable that swings the choice of
house, a market research agency will be chosen. Some agency one way or another. It is also important to
of the usual agency selection procedures will apply find out who will be handling the project and, if it
(see ‘Agency selection process overview’, p 220). is a junior member of staff, the degree of supervi-
A shortlist of agencies can be developed from sion that will be offered. The Interviewer Quality
personal recommendations from colleagues and Control Scheme follows rigid procedures to super-
advertising agencies, and from the organization’s vise and check the quality of the information.

TA B L E 6.1 The market research process

Step Actions

1 Problem definition Define what you need to know. Decide clearly what information is needed
and why it is needed. Is it qualitative and/or quantitative? What will be done
with it? What is the objective of this research?

2 Research plan Internal or external (if using a market research agency a briefing must be
prepared along with a carefully structured selection process).
Data sources: secondary/primary.
Research techniques: observation, survey, experiment, focus group.
Sample: size and type.
Degree of confidence.
Fieldwork: face-to-face, online, phone or post.
Questionnaire design.
Cost and timing.

3 Fieldwork Actual interviews/data collection and supervision.

4 Data analysis Coding, editing, weighting, summing, consistency/check questions,

extracting trends and correlations, if any.

5 Report presentation The interpretation of the figures, summary and sometimes conclusions.

6 Action taken/not taken If the information is not used, then perhaps it wasn’t worth collecting in the
first place.
 190 Part One | Communications Background and Theories

Some agencies demonstrate great care about the se- of some markets and product usage be simulated?
curity of the data they hold. Computer hackers pose Another problem lies with the difficulty in taking the
a problem to any computer-stored data. Product novelty factor out. When presented with something
test samples need to be controlled carefully and se- new, buyers may be prepared to give it a try, but can
curely. All samples, mock-ups and concept boards the marketing people sustain the marketing effort
need to be returned by the interviewers, and logged after the excitement of the initial launch?
as returned once they are received by the research
agency. They can then be kept under lock and key.
No one asked for a burger until they were
invented
Ensure the agency is GDPR compliant
‘Consumers can’t be expected to embrace
Check the agency is GDPR compliant. Note the previously unseen solutions. Let us not forget
research agency will be the data controller or joint that no one had asked for a hamburger until
data controller. See p 299 for more on GDPR. Also they were invented.’
see Esomar (2017) for GDPR guidance for the Murray (1997)
research sector.

The same applies to advertising. Most advertisements

Visualization try to be new, different and refreshing. So how can
research help produce something that is radically dif-
It is a shame to see great research findings suffer ferent to people’s existing levels of expectancy? One
from ‘death by PowerPoint’ – ie screen after screen, of the UK’s most successful advertising campaigns,
table after table. Visualizing data is a skill that helps ‘Heineken refreshes the parts other beers cannot
communicate key findings with more impact to a reach’, had the normal focus groups and concept re-
wider audience. ‘Visualization is an especially im- search carried out. It ‘researched poorly’, ie the results
portant tool to have in your data-gathering belt. said, ‘This is rubbish. We don’t understand this type of
Dynamic visualizations can simplify complex data ad. Don’t do it.’ Sir Frank Lowe (chairman of the ad-
and capture numbers in a graphic representation, vertising agency Lowe Group) tells the story of how
which will speak more clearly to a wide swath of he had to tell the client (Heineken) about the negative
people’ (Olenski, 2018). concept research findings on their radically different
advertising concept. ‘He [the client] took a very brave
decision and placed the research report document in
Problems and challenges the bin. He said, “We had best leave that alone and get
There are many challenges associated with getting on with the ad!”’ Expensive and carefully prepared
good market research. These include researching market research findings are sometimes ignored.
new ideas, sloppy briefs, sloppy interviews and Expensive research also gets it wrong if it fails to
much more. ask the right question. Even world-class companies
can ask the wrong question and make huge mistakes.
Take Coca-Cola – although it researched the taste of
Researching new ideas the new Coke, its 1985 flop occurred because it failed
How can answers to questions about anything that to research how consumers felt about dropping the
is new, unseen or previously untried be valid? The old Coke. It is classic marketing history now.
first commercially produced electric car, the Sinclair
C5, had the benefit of some product research, but ‘Blind comparisons which took no account of the
total product… name, history, packaging, cultural
how can research ask people about something they
heritage, image – a rich mix of the tangible and the
cannot experience? Driving a C5 in a hall is very dif-
intangible. To many people, Coke stands beside
ferent from driving one along a coast road or a busy,
baseball, hotdogs and apple pie as an American
wet and windy dual carriageway with a 40-foot
institution. It represents the fabric of America. The
truck trying to overtake. Here lies one of the difficul- company failed to measure these deep emotional
ties with researching a new idea: how can the reality
 6 | Marketing Communications Research 191

ties, but Coke’s symbolic meaning was more ●● misinterpretation of the answer by the
important to many consumers than its taste. More interviewer;
complete concept testing would have detected
●● interviewer bias (eg if street interviewers
these strong emotions.’
select only attractive-looking respondents
Kotler (2000)
and exclude anyone else from the sample);
The question they forgot to ask was: ‘Would you ●● interviewee inaccuracies (trying to be
buy this (new Coke) if we took away the old Coke rational, pleasant, offensive, disruptive,
forever?’ knowledgeable when ignorant, etc);
Real innovations are difficult to research because
●● interviewer fraud (falsely filling in
both customers and experts struggle to visualize
questionnaires);
their benefits. Henry Ford once said: ‘If I’d listened
to my customers, I would have invented a faster ●● non-response (a refusal to answer questions);
horse.’ ●● wrong sample frame, type or size;
●● incorrect analysis;
●● freak clustering of result (an inherent danger
Flawed research: Why new Coke flopped of sampling);
●● timing (researching seasonal products out of
‘Sometimes research gets it wrong because it
season).
fails to understand that people can only buy a
complete brand. People don’t buy products; they
don’t buy packages; they don’t buy brand
names. They most certainly don’t buy Types and costs of research
advertising. They buy the sum total of all those
things. At one point the Coca-Cola company There are basically two types of research sources:
thought they could improve Coke and invented a primary and secondary. Primary data are gathered
new Coke. They had thousands of consumers in specifically for and commissioned by an organiza-
the US blind-test new Coke vs old Coke without tion for a particular purpose (eg a research survey
telling them what it was. New Coke won. So the to find out about attitudes towards a company’s
Coca-Cola Company launched new Coke. It brand). Secondary data, on the other hand, already
failed miserably. When the company researched exist and have been gathered by someone else for
new Coke versus old Coke they missed the some other reason (eg government statistics, news-
understanding that the brand Coca-Cola was far paper features or published reports). Desk research
more than just a product. It’s the sum total of all can be carried out in a library or office, since it re-
elements of the brand.’ quires researching secondary sources. It is worth
George Bradt, former European Marketing doing some desk research before embarking on the
Director, Coca-Cola (1996, 2000)
more expensive primary research. There are essen-
tially two types of primary research: quantitative
and qualitative. Analytics (like Google Analytics)
are quantitative while neuromarketing/neurosci-
Errors to avoid ence (researching the effects of marketing stimuli on
the brain) tends to be more qualitative (with smaller
Here are some of the areas where problems can numbers of respondents than, say, a field survey).
occur in market research: Table 6.2 summarizes some of the many different
●● ambiguous definition of the problem; types of research information that are readily avail-
●● ambiguous questions; able. The cost figures give only a very rough indica-
tion of the budget requirements. They have been
●● misinterpretation of the written question by included to give some idea of the costs involved.
the interviewer; Anything can be researched and tested, including
●● misinterpretation of the question by the sales promotion ideas (concepts), mailshots and
interviewee; even press releases and journalists’ attitudes to par-
ticular companies and brands.
 192 Part One | Communications Background and Theories

TA B L E 6.2 Types of research or information available

Information Types of research or
on information Sources Approximate costs

Markets Market reports (analysing market Mintel £750–£5,000

size, structure, market shares and Jordans
trends, prices, key players, etc) Keynotes
Syndicated £1,000–£15,000
FT and trade £1
magazines

Distributors Retail Audit (analysing a brand's Nielsen £15,000–£50,000*

penetration into various retailer store
categories, average stocks bought,
held and sold per period, retail prices)

Customers’ Surveys – recommended minimum Quantitative market £10,000–£60,000

attitudes and of 200 interviews; preferably a research agencies £10–£100 per person
awareness minimum of 500 interviews interviewed**
Omnibus surveys £200 entry fee +
£300–£700 per question

Customers’ In-depth research, sometimes using Qualitative market £650 per individual,
motivations and projective techniques, children’s research agencies £3,000–£5,000 per group
perceptions groups, supergroups of eight

Customers’ Social forecasting, futurology, etc Future forecasting £1,500–£5,000 annual

future lifestyles subscription

Customers’ Who's buying what, when and from Consumer panels, £15,000–£40,000
buying behaviour where; how buyers respond over eg AGB's Super
and trends over time to various marketing activities,
time eg special offers, new ads and
competitor activities

Customers’ Market penetration of production Omnibus survey £500 per yes/no question
penetration into percentage of homes and £1,500 per multiple
frequency of usage answer/ranking

Competition As for markets, distribution and As for markets, As for markets, distribution
customers, if the budgets are distribution and and customers
available. The sales force and customers
marketing departments’ ‘ear to the
market’ can also provide much
competitive information There are
now many digital tools that gather
competitor information very quickly.

Simulated test Total mix test of product, brand Nielsen Research £25,000–£100,000
market name, price, positioning International; RSG8

(continued )
 6 | Marketing Communications Research 193

TA B L E 6.2 (Continued)
Information Types of research or
on information Sources Approximate costs

Test market Running a new product or variation of Sales analysis –

its mix in a test area

Product New product concepts can be Focus groups £3,000–£5,000 per group
researched (‘concept research’) of eight

Packs New pack design concepts can be Focus groups £3,000–£5,000 per group
discussed of eight
Hall tests £5,000+

Advertisements New advertisement concepts can be Focus groups £3,000–£5,000 per group
researched before going to expensive of eight
production. Hall tests £1,000+
Pre-and post- advertising research Quantitative survey £20–£40 per person
measures levels of awareness before Online tests £5,000–10,000
and after a campaign (tracking
studies)

Exhibitions Stand design, memorability, number Exhibition surveys £3,000

of passers-by, number who stopped
and looked, number who visited,
percentage of total exhibition visitors

NOTES:
* Prices can vary enormously, eg a single brand retail price check might be carried out for as little as £750, while a full-blown retail audit
for multiple products can run into hundreds of thousands of pounds.
** Depending on location and methodology plus set-up plus analysis costs.

Quantitative research Research can provide the marketing professional

with information on just about anything from mar-
Whereas qualitative research asks difficult ‘Why?’ kets to distributors, to customers, to competition, to
questions like ‘Why do you buy or not buy some- new products, new packs, new promotions, new
thing?’ or ‘Why did you stay, or not stay, on this advertisements, new prices and so on. Different types
website?’, quantitative research, on the other hand, of research can reveal information about customers,
asks numerical questions like ‘Who?’, ‘What?’, where they are located, what they buy, read and
‘How?’, ‘Where?’ and ‘When?’ – what percentage of watch online and on TV, how they spend their holi-
buyers buy which type of product, or what percent- day time, which competitors they prefer and so on.
age remember a particular advertisement, where do Ideas on new, or modified, products, packs, brand
they buy (what percentage buy from different chan- names or advertisements can be discussed initially in
nels), when do they buy, etc. focus groups (six to eight people), which generate
Quantitative research uses surveys based on a information explaining how people feel about a
representative sample of the target market. Quali­ concept. This kind of concept testing can be used to
tative research, on the other hand, involves an in- reduce a number of ideas to just one or two for fur-
depth, unstructured exploration with either small ther testing, or can be used to give feedback to the
groups of individuals (group discussions or focus creative people so that they can refine a particular
groups) or individuals on a one-to-one basis concept. These qualitative interviews open up and
­(in-depth ­interviews). identify areas that may need further investigation on
 194 Part One | Communications Background and Theories

a larger scale (a quantitative survey) to find out how If a product is launched nationally or regionally,
important certain aspects are among a statistically its launch can be monitored in several ways. Its
valid sample (minimum 400 in the sample). usage (user profiles, frequency of purchase, etc) can
In the case of a new advertising concept, or a then be monitored through consumer panels. Retail
new pack or brand name concept, the refined con- audits provide information about distribution pen-
cept can then be shown in a hall test (where respond- etration and how the product is moving off which
ents are invited into a hall to make comments). The shop shelves. It is also likely that tracking studies
packs and brand name concepts can be shown as will monitor the immediate reactions and effects of
mock-up artwork, and the advertisements might be the launch advertising. Pre- and post-quantitative
shown as either a storyboard or an animatic (video surveys can monitor the levels of branded aware-
cartoon). ness before and after a new campaign breaks, and
A new product (concept) can be tested by using can then be used again to measure the effect of the
in-home trials or hall tests. Some data sources, such advertising and the product’s development in the
as the Target Group Index (see p 195), are often marketplace.
used in the early research stages of consumer cam-
paigns to identify buying behaviour, socio-economic Omnibus surveys
groups, lifestyles, locations and appropriate media
channels. Omnibus surveys allow marketers to add a few very
After all of this, a new pack or brand name (or specific questions (eg one standard question with up
product) can be test-marketed. This reduces the to 10 options or two statements against a scale) and
risk by holding back from national or interna- get quick, statistically valid answers from over
tional roll-out until the advertising campaign (or 2,000 respondents within 48 hours. A popular one
pack or name or product) can be tested within a is the UK government’s own www.gov.uk.
representative test area. Owing to the high cost of
test marketing, and the increasing difficulty in the Home audits
UK of truly isolating the test market area (espe- Instead of, or in addition to, retail store research,
cially in terms of distribution, where the national home audits research the customer directly. The re-
retail chains do not want to limit stocks to certain tail audit data can be backed up with customer
parts of the country), companies often prefer to usage data. Representative families (sample size:
conduct a simulated market test instead of carry- 8,500) are recruited and asked to log all their pur-
ing out a test marketing exercise. Some of the main chases using a bar code recorder. The device asks for
research companies in the field are Burke (BASES the name of the store and the price paid per brand,
test), Nielsen (QUARTZ model) and Research etc. Non-bar-coded items are recorded on paper.
International (MICROTEST). These models use Analysis of this wealth of data over time shows con-
information from the concept test or product test, sumers’ repertoire of brands, the effects of sales
simulate an expected level of distribution penetra- promotions on purchases, frequency of purchase,
tion (percentage of stores that will stock the prod- etc. This is automatically cross-referenced with the
uct), assume a certain level of advertising spend household’s demographic data already held. Diaries
required to generate certain levels of awareness, and dedicated dustbins were once used to collect
and then assume competitive activity, prices and this type of information. Today the automated on-
other factors to predict the likely sales of a new line bar code system is preferred.
product with an accuracy of +/–20 per cent.
Since television advertisements can be expensive,
many companies prefer to do all the careful check- Retail audits
ing and testing through focus groups and hall tests Retail audits monitor share of shelf space, prices
instead of testing the advertisement in a specific test and turnover of particular brands (including com-
region. They can, and do, however, test the weight petitors’) in a large and representative sample of
of advertising in different regions and measure the retailers. It is worth noting that Boots, Sainsbury’s
incremental sales to help them to find the most and Marks & Spencer do not allow auditors to
cost-effective levels (frequency and timing) of
­ come into their stores. This means that the audit
­advertising expenditure. results have to be weighted and adjusted. Where
 6 | Marketing Communications Research 195

a­ uditors are allowed access, they check shelves, fac- ●● press (weighted to the National Readership
ings, prices and stock levels. Most fast-moving con- Survey);
sumer goods (FMCG) companies buy these ­audits, ●● radio;
since they provide a picture of what is happening at
●● television;
the retail level. Bar codes and laser scanning can
provide much of this information online directly to ●● internet;
the user. Sales out of shops do not necessarily reflect ●● mobile internet;
actual customer usage. Home audits (see above) can ●● out of home;
provide customer purchase information.
●● cinema;
●● direct mail.
Look at external averages/
competitor activities The Target Group Index (TGI) collects and com-
piles information on consumer brands and the
Internal figures, such as sales, percentage of sales ­profiles of heavy, medium and light users, and non-
expenditures (of say advertising), response levels, users, in a vast range of product categories and sub-
cost per order or enquiry, etc, can and should be categories. This is all cross-referenced to types of
compared with external industry averages or com- papers read, TV programmes viewed, and lifestyle
petitor activities. Not all the information is readily or a­ttitude statements. It can even classify ‘light
available immediately, but competitors’ sales figures users’ a­ ccording to whether they buy a brand exclu-
(of grocery products and some other large markets) sively (‘solus users’), whether they prefer it to an-
are available from companies such as Nielsen Retail other brand also used (‘most often users’) or
Audits. Information on levels of advertising is avail- whether they are more casual in their use (‘minor
able from Nielsen Media Research. users’), again cross-referenced to demographic
data, lifestyles and media used. Advertisers use the
The Target Group Index TGI to find out who the users of a particular brand
The Target Group Index (TGI) global network of are and what they read, watch and listen to. The
market research surveys provides comparable con- same information is available on competitors and
sumer insights for over 60 countries across six con- their brands.
tinents. TGI quarterly surveys identify who a brand’s Elsewhere, the index also gives lifestyle data,
target customers are, why they behave and make eg ‘heavy drinkers of low-alcohol lager’. This
choices the way they do and how best to reach them. gives an insight into what motivates them. The
They deliver the most comprehensive insight into excerpt in Figure 6.1 shows that they are keen
the online and offline behaviour of c­ onsumers. pub-goers and have a propensity to try new
TGI studies explore the motivations of the indi- drinks. They are highly image conscious, aiming
vidual, from the conscious to the subconscious, to keep abreast of new fashions. They appear to
across different product sectors: be fairly ‘flash with the cash’ and admit to being
no good at saving money. In spite of, or maybe
●● lifestyle attitudes; because of, this, they show a strong tendency to
●● social DNA: economic and cultural capital; seek the advice of a financial consultant. They see
●● values; their holidays as a way of achieving total relaxa-
tion, not wishing to do anything but eat, drink
●● motivating factors/criteria of choice; and lie in the sun.
●● the purchasing process; Just about anything can be cross-referenced with
●● consumer segmentations, including any other variable. For example, the index can iden-
electronic, shopper, social media and holiday. tify Heinz beans users and what kind of cars they
drive. Another package, called ‘trender’, can be used
TGI surveys measure the relationship between and to track product, brand, attitudinal, demographic
exposure to nearly 1,500 media sources for com- or media trends. The index can also link into vari-
parative and competitive analysis at a granular level: ous online geodemographic ­packages.
 196 Part One | Communications Background and Theories

F I G U R E 6.1 An example of lifestyle data from the TGI

Base: NEW 18+
Pop: 20699
Private Eye Target:HEAVY DRINKERS OF LOWALCOHOL BEER AND LAGER
Pop: 1155(000) Xof Base:5.57

UNWTD PRJ VERT HORZ

INDEX RESP (000) (%) (%)
1 D8 DRINK LAGER RATHER THAN 176 183 366 31.68 9.83
BEER THESE DAYS
2 PA9 I LIKE TO KEEP UP WITH 165 53 121 10.47 9.20
LATEST FASHION
3 T7 HOLIDAY-ONLY WANT TO 165 75 158 13.67 9.18
EAT, DRINK, SUNBATHE
4 PA15 MEN’S FASHION MORE 161 105 238 20.60 8.96
EXCITING NOWADAYS
5 F7 I TEND TO SPEND MONEY 160 65 141 12.20 8.96
WITHOUT THINKING
6 SP3 CO’S/PRESTIGE SPONSOR 157 88 190 16.45 8.76
ART/SPORT
7 DH6 HEALTH FOODS ONLY BOUGHT 155 78 179 15.49 8.65
BY FANATICS
8 D9 I LIKE TO TRY NEW DRINKS 155 70 143 12.38 8.65
9 D12 I REALLY ENJOY A NIGHT 146 164 345 29.87 8.12
OUT AT THE PUB
10 P4 I WOULD LIKE TO BUY A 142 58 148 12.81 7.92
HOME COMPUTER
11 F4 I AM NO GOOD AT SAVING MONEY 138 87 190 16.45 7.72
12 F15 USUALLY CONSULT FINANCIAL 138 62 114 9.87 7.68
ADVISOR
13 PA2 IT’S IMPORTANT TO LOOK 137 104 247 21.38 7.65
WELL DRESSED
14 T11 TRY TO TAKE ONE+ HOLIDAY 135 60 116 10.04 7.55
ABROAD A YEAR
15 PA13 I REALLY ENJOY SHOPPING 134 70 130 11.25 7.50
FOR CLOTHES

Social media audits well as its resources and restrictions (policy issues
about content or trade secrets, any legal or political
Look before you leap. It is essential to carry out an
constraints or any internal issues about sensitive
audit before jumping into the blogosphere. As al- ­information).
ways, the brand and the organization need to check
that it is credible and ready to become more trans-
parent, as social media can probe into many previ- Online analytics and behavioural
ously protected areas of the business. A social media insights
audit explores how an organization (and/or its Analytics packages, like Google Analytics, can tell
brands and high-profile staff) and its competitors you who your visitors are (or at least give a general
are seen in relevant online communities: what is profile), what they are interested in (page views and
being discussed, what is required, whether the or- key phrases used), where they are coming from
ganization has existing assets (contents, eg speeches) (how they found your site, via search engine or re-
and how ready the organization is (includes train- ferral from another site, etc), their journey (multi-
ing, systems and processes and generating content channel analytics), which types of journeys
and participating in discussions). The audit also converted the best (got the most newsletter sign-
looks at current presence, whether blog, Twitter, ups or sold the most products). Many free packages
Flickr or YouTube, and the levels of engagement like Twitter analytics or Hootsuite can tell you
and traffic or followers. The audit explores the or- where your followers are from, which of them are
ganization’s social media goals (eg a direct channel influencers, where they are from, who is talking
with customers, to gather research, to improve cus- about you, what they are saying, even who is at-
tomer service, to reach out to new audiences or tending a conference and what they are talking
markets, to add value to existing customers, etc), as about before, during or after the event (if they add
 6 | Marketing Communications Research 197

the conference hashtag to their tweets). Facebook

Insights and LinkedIn Website Analytics offer alter- Ethnographics help Intel
native ­analytics.
‘Ethnographic research is more valuable than
traditional surveys and market research. The
Behavioural insights
ethnographic work at my company, Intel, and
Behavioural insights can come from customer ob- other firms now informs functions such as
servations, click behaviour analytics or drawing strategy and long-range planning. Ethnography
upon a range of interrelated academic disciplines
is the branch of anthropology that involves trying
(behavioural economics, psychology and social an-
to understand how people live their lives. Unlike
thropology). ‘These fields seek to understand how
traditional market researchers, who ask specific,
individuals take decisions in practice and how they
highly practical questions, anthropological
are likely to respond to options.’ Formal research
can be requested from groups like The Behavioural researchers visit consumers in their homes or
Insights Team or data analysis companies, or man- offices to observe and listen in a nondirected
agers can be simply tasked to present their key way. Our goal is to see people’s behavior on their
‘learnings’/insights from their marketplace when terms, not ours. While this observational method
they present their key performance indicators. may appear inefficient, it enlightens us about the
Potential behavioural insights are sitting on context in which customers would use a new
many people’s desktops unused. Most analytics product and the meaning that product might hold
packages can be used to identify what works best by in their lives.
split testing a single variable (such as price, image, Ethnography has proved so valuable at Intel
words, or colours on website pages, ads or emails). that the company now employs two dozen
anthropologists and other trained
ethnographers, probably the biggest such
Behavioural insights: The greatest corporate staff in the world.’
untapped marketing asset Christensen et al (2016)

‘Most marketers are not exploiting the value of

behavioural insights (capturing and
consolidating customer behavioural data from President Obama and behavioural
multiple channels in a single database). Despite analytics, 2012
newly automated processes (marketing
President Obama’s Head of Digital, Teddy Goff, be-
automation), marketers are increasingly
lieves that behavioural information is more impor-
capturing this data, but not using it to build
tant than demographics. Online click behaviour
better marketing campaigns.’
revealed what people were interested in. Two peo-
Forrester Consulting (2013)
ple with very dissimilar demographics may have a
lot in common. ‘Everything we did was informed by
data.’ They were determined to serve their support-
ers with the best experience possible, so they used
Ethnographic research ‘the stuff people were telling us they wanted.’ (Note
Ethnography is the systematic study of people and this is the magic marketing formula mentioned in
their cultures. It explores cultural phenomena where Chapter 2.) So they used these behavioural insights
the researcher observes society from the point of to create platforms for niche interests to connect
view of the subject of the study. ‘Ethnography is the and develop relationships; they had up to 18 differ-
study of social interactions, behaviours, and percep- ent versions of emails going out to different niche
tions that occur within groups, teams, organiza- groups (source: Teddy Goff interview with PR
tions, and communities’ (Anderson, 2006). Smith, Dublin).
 198 Part One | Communications Background and Theories

President Trump and behavioural Location-based mobile analytics are all driven by
deep analysis of behaviour (within milliseconds)
analytics, 2016 including both where you’ve been visiting/browsing
UK Company Cambridge Analytica analysed the online and where you’ve physically been visiting/
Facebook data of millions of adult Americans, so travelling in the real offline world. However, they
that they could categorize personality types and can only monitor those who have opted in via using
then subsequently send them tailored messages that free wifi (terms and conditions) or via accepting
reflect their specific needs. ‘The company’s former cookies when visiting various websites.
boss, Alexander Nix, claimed, before the election, to
have predicted the Big 5 score of every adult in
America. On Facebook, hundreds of ads were
New market research platforms,
posted every day targeted at specific personality gamification and research
types tailored towards people’s innermost fears, Research professionals have started to use games to
needs and emotions’ (BBC, 2018). It used an algo- gain consumer insight, which has resulted in more
rithm that analyses what people like (and don’t like) creative surveys. Sony Music wanted to understand
on Facebook to predict your personality. With 10 the connections between fans and artists: a quiz,
likes it can predict what kind of person you are bet- which was introduced into Jeff Wayne’s The War of
ter than your colleagues: the Worlds forum, resulted in nearly 2,000 com-
With just 10 likes, a computer model pleted quizzes in less than 24 hours. Despite such
fundamentally knows you better than a encouraging results, the number of clients and agen-
colleague... With 70 likes, it knows you better than cies using gamification is still fairly low. Nevertheless,
a friend or roommate; with 150 likes, better than the Market Research Society reports that gamifica-
a family member. And with 300 likes, Big Data tion is a growth area for training so we should be
knows you better than your spouse. seeing more of it. A case study of parenting club
Tinker (2018) Bounty is also included (Fisher, 2012).

See ‘How Trump won’ in more detail at http://

prsmith.org/blog/. Online vs offline research
Qualitative research such as in-depth interviews and
focus group discussions give insights into the real rea-
Geodemographics and location-
sons why customers buy or don’t buy, or what they
based mobile analytics think about a new advertisement, a new pack design
Geodemographics originally mixed geographical or an app. A lot of this can be done online, for exam-
population data together with basic demographic ple by observing online discussions (some say this is
data. It uses neighbourhood types to predict the akin to having access to a one-month focus group),
kinds of people who live within them and thus their or engaging in a one-to-one discussion in real time, or
behaviour as consumers. If a brand is found to ap- a simple pop-up exit survey. In addition, accessing
peal to certain geodemographic groups, their loca- real-time discussions, or even real-time behaviour
tions can be mapped and the subsequent and layering it with additional data can reveal valu-
communications can be targeted at the geographi- able customer insights (see location-based mobile
cal areas that offer the greatest potential. marketing layering digital body language with physi-
ACORN (a classification of residential neigh- cal journeys in Chapter 12). More traditional surveys
bourhoods) uses postcodes to identify different can also be carried out online. However, online re-
types of houses and generally gives useful indica- search has both advantages and disadvantages.
tions about buying behaviour. Other UK online
demographic analyses can be cross-referenced, eg Advantages of online research
PINPOINT, which uses 60 different neighbourhood
●● Access – it is easier (and cheaper) to reach
classifications. MOSAIC has 58 neighbourhood cat-
respondents online than in person.
egories linked with financial information. SUPER
PROFILES uses 150 neighbourhood types. Today ●● Researchers can observe consumers in their
we use location data to monitor behaviour and own community (without taking them
more. See Chapter 12 for more. somewhere else).
 6 | Marketing Communications Research 199

●● Researchers can observe passively as people Websites and research

interact with each other very naturally online.
Websites can help identify customer needs in the
●● It is quicker – online dialogue and feedback following ways:
are immediate and in some cases within
minutes of something happening, as opposed ●● Identify what customers are interested in (the
to face-to-face surveys, which might take most popular web pages).
days, weeks or months, giving people time to ●● See what customers really want by looking at
think, forget or get confused. Equally key phrases used to arrive at the site and
split-testing ads, emails and web pages give within the site (seeing what phrases are
almost instantaneous results. Do remember if keyed into the onsite search engines).
multivariate testing (testing many variables), ●● Employ polling for brand names, straplines,
you have to have a big enough audience and packaging design concepts or any concepts.
sufficient duration to gather to be able to
extract significant results. Use questionnaires sparingly, as they can cause peo-
ple to leave a site, particularly if the questionnaire is
●● Online also allows for more longitudinal
on the home page. Every click potentially captures
studies – instead of an intense one-hour
data, building a better profile about visitors and
dialogue, online can encourage conversation
their interest. Chat rooms offer a wonderful oppor-
over months or years, which can yield very
tunity to listen, free of charge, to customers discuss-
different insights to traditional face-to-face.
ing your product or service. And more sophisticated
●● There is a wider spread of respondents, as data-mining software can drill down into data
online focus groups can recruit from across mines and build profiles that help companies to un-
geographical and social boundaries. derstand their customers better.

Disadvantages of online research

●● Too much information generated by too A pop-up exit poll
many social media conversations means
marketers potentially face ‘an overload of Automatically triggered when a visitor clicks to
untargeted data that is costly to analyse and leave a website, a pop-up survey can ask just a few
requires specific expertise and resource’ short questions to determine: 1) Did the visitor find
(Gray, 2010). what they were looking for? 2) If not what was it?
●● There is less control. As the discussions This collects extremely valuable research, which if
reside within their own online communities, used in a remarketing campaign could actually
the role of a focus group moderator has double sales.
become more passive and observational, with
less control over the direction of the
discussion. This can open up new, previously
unknown aspects, but can also make it Content marketing testing
harder to get feedback on specific questions.
Everything can, and should be tested: ads, mailshots,
web pages and content marketing in particular. You
need to know what topics, content type (eBook,
Facebook research platform white paper, video, infographic) and channel work
the best. Once you know what works you can do
Restaurant chain Nando’s asked its Facebook fans more of it. But you need to know if it was a particu-
for their thoughts on a possible new product. lar topic, or a particular content type or a particular
Overnight, more than 500 fans clicked their ‘like’ channel that worked particularly well. And then op-
button, and there were 657 comments for the timize. See researching ‘content shock’, p 453, and
marketing team to analyse. the talented Erin Robbins O’Brien, on videoing, ex-
plaining how you need to constantly test your con-
tent (http://prsmith.org/blog/).
 200 Part One | Communications Background and Theories

Qualitative research Chapter 4 considers the underlying motivations and

complex information processes through which buy-
An in-depth interview with an individual provides a ers pass on their journey towards a purchase.
lot of qualitative information. There is usually a se-
ries of individuals interviewed on a one-to-one
basis. This type of research attempts to reveal what
Focus groups
customers sometimes don’t even know about them- Group discussions can be a more cost-effective way
selves by delving deep into their unconscious moti- of collecting information that is perhaps less in-
vations. In-depth interviews can reveal deep depth but nevertheless useful in understanding why
customer insights. and how people (in the target market) feel about
certain brands, advertisements or just new ideas
(concepts).
How young men retain their youth
(unconsciously)
Mommy’s never coming back
‘Amongst the most popular destinations from
the stresses of life are the worlds of the ‘In-depth research for a US manufacturer of
computer game. One way that men retain their security doors revealed deeply ingrained
youthfulness is by spending large amounts of unconscious fears of being trapped inside, or
time playing video games.’ abandoned, when doors are closed. The report
Kimmel (2008) suggested that a young child’s first experience
of a door is when its mother puts it to bed and
closes the door behind her as she leaves. The
child fears that it may never see its mother
As Gordon (1991) says, ‘Consumers are often again. Many years later, the adult’s unconscious
unaware as to why they do or don’t use/buy/ mind can react to the sight of a closed door with
choose a particular brand. Asking for this kind of an ‘underlying feeling of discomfort and
information in a direct way is like shouting at a anxiety’. The Simpson Timber Company was
foreigner in the belief that he will then understand reported as having gained a significant increase
English more easily.’ in its market share when they changed their
advertisements to show partly open security
doors rather than their traditional images of
Work and family aren’t the only important securely closed doors.’
things in life Knave (1991)

‘As time pressures increase on young men, so

does their value of “me time”. There’s more of
A variety of creative stimuli materials are used
an “I deserve it” attitude towards leisure
within these groups, including cartoons, pictures,
activities. What’s more, leisure can enrich and
words and brand maps. One of the most common
reconnect a young guy with his sense of self.’
types is the collage or mood board, which is made
Kimmel (2008)
up from scrap art taken from a wide variety of
maga­zines and newspapers. It is used to explore a
variety of themes, such as user lifestyles, occasion
usage and abstract concepts such as freshness or vi-
In-depth researchers employ a variety of techniques
tality. The example of a collage board featured here
(including psycho-drawings, word associations,
(Figure 6.2) has been developed by The Collage
metaphors, collages, picture completion, clay mod-
Shop for use in focus groups. It explores concept
elling and role playing) that throw the ego off guard
pack themes for a shower gel.
and allow the subconscious feelings to be expressed.
 6 | Marketing Communications Research 201

F I G U R E 6.2 Concepts for shower gel packs

SOURCE: Collage provided by The Collage Shop

Some companies, like MTV, use online discussions problems with a chosen concept or simply to help
and discussion groups as online focus groups – ‘a to refine the concept itself.
year-long focus group’.
Usability testing: Monitoring how
Concept research easy/difficult a website is
Concept testing helps every element of the commu- Usability testing is a one-to-one observation, which
nications mix. Whether it is an advertisement, new explores the CX and in particular, the usability of a
sales promotion, new piece of packaging, new direct website. Simple setting tasks and watching individu-
mail leaflet or even a product or service, the concept als trying to complete them on a website can reveal
should be researched and discussed at least among bottlenecks and dead ends that can ruin the CX.
colleagues and customers and, ideally, among unat-
tached, unbiased focus groups that are representa-
tive of the target audience or customer. Eye tracking: Monitoring customers’
Advertising concept testing measures responses information processing
to advertisements before they are fully produced. The best website designs research how customers
Storyboards and key frames or animatics are made process information. Some companies use eye track-
up and shown to focus groups. This kind of group ing and heat maps to try to understand how custom-
discussion is used to identify the best idea from a ers actually process information presented on a web
range of different concepts, to iron out any glaring page (Chaffey and Smith, 2013). We explore these in
 202 Part One | Communications Background and Theories

Chapter 4 when looking at how the same website Opinion-forming panels

can be perceived differently by different people.
Some companies use opinion-forming panels, in-
Heat maps and session maps can be used to show
cluding Microsoft (450,000 early adopters), and
where a customer looks, what they pay the most at-
Procter & Gamble (nearly 200,000 recruited
tention to, and, most importantly, what they miss
respondents in its ‘connector panel’). ‘Connector
­
(see p 137 for more).
panels’ are used to research and seed new products.
Note that in the UK market, research cannot be
Advanced one-to-one UX research: blended with selling (it’s called ‘sugging’ – selling
Monitoring blood, sweat and tears under the guise of research). Not only are these test-
ers giving very valuable feedback, but they are also
Some advanced research analyses how visitors actu-
taking ownership of the product and the brand as
ally use a particular website and benchmark it
they become more and more engaged.
against a number of competitive sites to identify
Use panel data to estimate your traffic, break it
any barriers or difficulties. Companies like Space
down by socio-demographic characteristics and com-
Between measure eye movement tracking, emo-
pare it to competitors. A panel member is p ­ rofiled in
tional arousal (and stress) through GSR (galvanic
terms of socio-demographics and software is installed
skin response) and facial recognition (including
on their PC to monitor the sites they visit. Examples
how the eyebrows move) to measure emotional re-
of online panel data providers are Nielsen NetRatings
actions, and they also measure heart rate. Their re-
(www.nielsen-online.com) and Comscore (www.
cent report for the UK’s largest fashion provider,
comscore.com). Similar data are ­ available from
ASOS, also benchmarked the ASOS website against
Hitwise (www.hitwise.com), which aggregates
two competitor websites, Boohoo and Zara – all for
anonymous data from ISPs with which it has signed
under £10,000.
agreements to show the relative ­popularity of sites
(online audience share) within a sector. Hitwise is
Neuroscience particularly valuable since it gives information on
Neuromarketing (and neurological techniques such competitors – eg which key phrases they rank well
as wearing a skull cap studded with electrodes to for – and shows which traffic sources drive visitors
identify which parts of the brain are stimulated by and clickstreams showing sites their audience visit
ads or images) is an additional, albeit expensive, before and after the evaluation of the site.
market research tool that helps marketers literally
to ‘get inside the heads’ of their customers.
Post-it notes failed the test
‘I don’t like it’ really means ‘I do like it’: ‘Post-it notes failed in concept testing,
Neuroscience digs below the surface prototype testing and a test launch. Although a
great product, consumers, when researched,
TV show Quizmania invited viewers to call in and simply did not like it. Just before pulling the plug
win money if they guessed the answer. Before the on this potential new product, 3M focused on
show was released in the United States, the “highly connected CEO secretaries”. These
concept testing (people watched it and filled out respondents were given boxes of the 3M Post-it
questionnaires) revealed that people clearly didn’t notes, invited to share them with their
like the programme. ‘But when we scanned their colleagues and gather any feedback re possible
brains, it showed they loved it. They didn’t like the uses. The goodwill, engagement and word of
show because from a rational point of view it’s mouth generated pushed this product beyond
ridiculous. However, the emotional part of the brain the tipping point to become the fifth-largest
is so engaged that you keep watching it’ (Martin office supply.’
Lindstrom, in Rothery, 2009). When the show was Marsden (2004)
finally broadcast, the ratings matched the
predictions from neuroscience research.
 6 | Marketing Communications Research 203

Test marketing visitors land on the many variations. The goal is to

find the combination of the various page elements
Test marketing refers to new packs, new brands and that delivers the best results.
new products that are marketed only in a limited The kinds of variables (or elements) which are
test region or geographical area, eg the Yorkshire tested simultaneously on a single web page include:
TV area. A full marketing drive (distribution and
advertising, etc) is released in the test area only. This ●● page headline: message and typography;
gives the company a chance to spot any last-minute ●● photo button (size, colour, placement and
problems that previous research has not identified. call-to-action text plus arrow);
If the test market proves to be positive, then the ●● page copy;
marketing campaign can be extended nationally. ●● benefits (messages).
As mentioned, everything can be tested. A new
advertising campaign, a new sales promotion or Multivariate testing can eliminate the need to run
even a direct mail campaign can be tested among a several sequential A/B tests. It can save a lot of time
few thousand names on a mailing list (in direct and find the optimum blend of variables that deliver
mail, some companies test right down to whether the best results.
different-coloured signatures affect direct mail
response levels). Some organizations do not, how- Tracking studies: Advertising
ever, test-market because of the associated problems
of security, timing, costs and seasonality. campaigns
Testing also costs time and money, which may Advertising tracking involves pre- and post- adver-
not be available as launch deadlines loom closer. tising research that aims to measure levels of
The limited time period of a test often restricts the ­awareness and brand recognition before and after
accuracy of the measured results, since additional an advertising campaign. It can also be used to
time may be required to monitor whether repeat measure the series of mental stages through which a
purchases continue beyond the ‘trial period’. customer moves: unawareness, awareness, compre-
Seasonal products and services are further compli- hension, conviction and action. These are the stages
cated, since they may need to be tested 12 months in identified in DAGMAR (defining advertising goals
advance. Both freak results and results manipulated for measuring advertising results – see p 131). It is
by competitors can also invalidate certain tests. worth remembering that some elements of the com-
Some businesses have their own test networks. munications mix, such as sales promotions, packag-
ing and point-of-sale, can be more effective than
advertising when pushing the customer through the
final stage of ‘action’ or buying.
‘Facebook continually test over 10,000 different An analysis of the sales figures can identify an
versions of Facebook.’ advertising campaign’s effect on overall sales. Home
Mark Zuckerberg in an interview with Reid audit panel data like SuperPanel can reveal infor-
Hoffman, Masters of Scale, Episode 4 mation on what is happening within the total sales
figures, such as who is switching brands, who are
the heavy users, etc. Quantitative techniques involv-
ing street surveys, in-home interviews or telephone
Constant optimization: A/B testing surveys (obviously not used if prompting respond-
and multivariate testing ents with visual prompt material, eg storyboard,
Multivariate testing is a more sophisticated form of press or poster ad) can measure the other DAGMAR
A/B testing which enables simultaneous testing of stages listed above.
many variable (multivariables) on, say, website The percentage of respondents with spontaneous
pages. Multivariate testing involves setting up the awareness (which brands of beer can you remember
server to display the different web page variations seeing an advertisement for this week?) is always
(or combinations) to equal proportions of incoming lower than those with prompted awareness (since
visitors. You need sufficient traffic and time so that the interviewer prompts the respondent by showing
you can split it up and have significant numbers of a list of brand names or a storyboard of the ad).
 204 Part One | Communications Background and Theories

Think ‘secondary’ first In conclusion

All communications plans should be built upon reli-
able research. Expensive primary data should be So, what is the best type of research? Many mar-
used only when all possible secondary data sources keters, and market researchers in particular, have
have been checked. Why pay £25,000 for a market their own favourite research techniques. Some be-
research report analysing your industry when it lieve the only way to understand customers is to
may be possible to subscribe for less to a syndicated explore their minds through qualitative research
survey carried out specifically for a group of com- carried out on small numbers of people (from psy-
panies in an industry sector (eg air travel or car cho drawings to clay modelling to focus groups of
manufacturers)? Alternatively, some markets are re- say six people at a time, to in-depth one-to-one
searched regularly by market report companies discussions and even neuroscience) while others
such as Mintel, Keynote and Jordans. These reports say this information only gives some clues and is
can be purchased by anyone for a few hundred statistically insignificant and therefore the only
pounds. Academic institutes often publish reports way to draw real significant conclusions is from
on various markets or aspects of the marketing pro- quantitative research (such as surveys of, say, a
cess within a particular industry. Sometimes these thousand people). The truth is that qualitative
are available at not much more than the cost of du- research identifies the issues that need to be
­
plication and dispatch. A newspaper like the ­researched quantitatively.
Financial Times may have done its own analysis or Today, online, we have free and automated
survey, which will cost you less than £3. ­analytics generating behavioural information about

F I G U R E 6.3 Awareness questionnaire

Spontaneous Brand Awareness

Q1 Which makes or brands of yoghurt can you think of?

Probe: Which others can you think of?
Q2 And which brands of ar d)
arenes s (Showc
Brand Aw
Prompted e you se
en or
o f y o g hurt hav
brands tioned?
makes or eady men
W h i c h of these n y y o u have alr
Q1 g a
includin
before,
heard of
s?
ny other
Probe: A
these ness
hich of Aware
Q2 And w i s i n g
heard
a A dvert n or
in the l u s s e e
aneo you )
Spont hurt
have awrhdere?
o f y o g m a
s thtoewrc n o
r
r ands '
oensenss
t ( see
o r b I t d y o u r e?
makes y. re e he
i c h r e centl g Awa t hav t e r w
h r r t
Q1 W g fo isi
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 6 | Marketing Communications Research 205

how customers and prospects react to prices, pro- Analytics are used in digital marketing. In the
motions and special offers, whether in an ad, on a offline world of marcomms we tend to use the words
web page or in an app. Originally, metrics measured ‘market research’ and ‘testing’ – there is no reason
the effects of marketing decisions. Today’s nimble why we can’t call all market research and digital ana-
marketers can use instant metrics (analytics) to help lytics market research – a lot of the digital analytics is
decide what is the best price, colour, ad, name or free and most of the traditional market research
even phrase to use. Split-testing emails, ads and (focus groups, hall testing, ad tracking) is paid for.
even web pages informs marketers what works best. Research is valuable but, as can be seen, it does
So we can now use instantaneous measurement of require experienced advice and strict control if the
the effects of our marketing decisions, to make data are to be usefully applied. Finally, remember,
even better marketing decisions. This is constant asking great questions is a great skill. It is important
­optimization. to know what you need to know.

Key points from Chapter 6

●● Budgets allowing, research can reveal anything ●● Always check secondary sources before
required. commissioning expensive primary research.
●● Consider carefully exactly what information is ●● Consider online as well as offline research.
required, because there is too much information ●● Set up a marketing intelligence and information
out there. system.
●● Know what you need to know.

References and further reading

Anderson, K (2006) Ethnographic research: A key to Crouch, S, Housden, M and Wright, L T (2003)
strategy, Harvard Business Review March Marketing Research for Managers, Butterworth-
BBC (2018) Facebook data: How it was used by Heinemann, Oxford
Cambridge Analytica, BBC News, 9 April Dunkley, C (2008) Gender psychology: Differentiate
Birn, R (ed) (2003) The Handbook of Market to accumulate, Marketer, October
Research Techniques, Kogan Page, London Esomar (2017) General Data Protection Regulation
Bradt, G (1996, 2000) Online Marketing Course 5: (GDPR) guidance note for the research sector:
Marketing research, Multimedia, London Appropriate use of different legal bases under the
Cerha, J (1970) Inventing products to fit the future GDPR, June
market, Paper given at ESOMAR, Neu-Isenburg, Fisher, L (2012) Game on to keep consumers engaged,
November Marketing Week, 8 November, pp 33–36
Chaffey, D and Smith, PR (2013) Emarketing Forrester Consulting (2013) Use behavioural
Excellence, Routledge, Abingdon marketing to top up the ante in the age of the
Christensen, C, Hall, T, Dillon, K and Duncan, D customer, Silverpop, May
(2016) Know Your Customers’ ‘Jobs to be done’, Gordon, W (1991) Accessing the brand through
HBR, September research, in Understanding Brands, ed D Cowley,
Collins, S, Dahlstrom, P and Singer, M (2006) Kogan Page, London, pp 31–56
Managing your business as if customer segments Gordon, W (1999) Goodthinking, Admap, Oxford
matter, McKinsey Quarterly, August Gray, R (2010) How to do ‘qual’ research, Marketer,
Crimp, M (2000) The Marketing Research Process, June
5th edn, FT Prentice Hall, Englewood Cliffs, NJ
 206 Part One | Communications Background and Theories

Holder, S (1999) Talking to the right consumer, Marsden, P (2004) Tipping point marketing, Brand
Design Week, May Strategy, 1 April
Holder, S and Young, D (1995a) A journey beyond McGovern, G (2010) Information overload – the
imagination, Paper given at ESOMAR, Berlin, sequel, New Thinking, 23 October
February McNally, F (2002) Wolfe Tones’ rebel ballad beats off
Holder, S and Young, D (1995b) Managing change: Bollywood classic to be top choice, Irish Times, 21
Moving towards a leaner future, Paper given at December
Business Industry Group, May Moore, A (2004) Enterprise search: The Holy Grail of
Holder, S and Young, D (1997) Researching the KM? KM World, 1 January
future in the present, Paper given at ESOMAR, Murray, R (1997) Clone zone, Creative Review,
Edinburgh, September November
Holder, S and Young, D (2000) Getting to the future Nurden, R (1997) Managers pay price for office
first, Paper given at AEMRI, Paris, June pressures, European, 27 November
Kanter, R (1996, 2000) Online Marketing Research Olenski, S (2018) Data science is the key to marketing
Course 5: Marketing research, Multimedia, London ROI: Here’s how to nail it, Forbes, 6 March
Kaye, K (2013) Data defined: What is ‘big data’ Reuters (2009) Information overload, 15 August
anyway? Ad Age, 15 January Robbins O’Brien, E (2015) Measuring the
Kimmel, M (2008) Species: A user’s guide to young effectiveness of content marketing, 22 February,
men, Discovery Channel, Discovery http://prsmith.org/blog/ (archived at https://perma.
Communications Europe cc/67JZ-HYWA)
Knave, M (1991) Unlocking deepseated reactions Rothery, G (2009) All in the mind, Interview with M
makes ads more sympathetic, in Marketing Lindstrom, Marketing Age, 3 (6), November
Breakthroughs, ed Bruce Whitehall, p 9 Schmidt, E (2010) Every 2 days we create as much
Knave, M (1996) Rescuing Boris, Time Magazine, 15 information as we did up to 2003, Techonomy
July conference, Lake Tahoe, CA (reported by Siegler,
Kotler, P (2000) Marketing Management: Analysis, M G (2010) Eric Schmidt: Techcrunch, 4 August)
planning, implementation and control, millennium Smith, PR (2019) SOSTAC® guide to writing your
edn, Prentice Hall International, London perfect digital marketing plan, www.PRSmith.org/
Kotler, P and Keller, K L (2012) Marketing SOSTAC (archived at https://perma.cc/DR3G-
Management, Pearson, Harlow UZUM)
Lynch, M with Manchester, P (1999) How to uncover Tinker, B (2018) How Facebook ‘likes’ predict race,
knowledge and make it available, Financial Times, religion and sexual orientation, CNN, 11 April
10 November Varian, H and Lyman, P (2000) How Much
Market Research Society (1986) Research is good Information? UC Berkeley School of Information
for you: The contribution of research to Management of Systems
Guinness advertising, Conference papers, MRS, Wurman, R (1996) Information anxiety, system
London overload, Time, 9 December
Marr, B (2013) Big Data: The mega-trend that will Zuckerberg, M (nd) Interview with Reid Hoffman,
impact all our lives, LinkedIn Update, 27 August Masters of Scale, Episode 4: Imperfect is perfect

Further information
Businessmagnet Ltd European Society for Opinion and Market
9 Meadway Court Research (ESOMAR)
Meadway Technology Park Atlas Arena, Azië Building – 5th floor
Stevenage Hoogoorddreef 5
Herts SG1 2EF 1101 BA Amsterdam
Tel: + 44 (0) 870 350 7767 The Netherlands
www.businessmagnet.co.uk Tel: +31 20 664 2141
www.esomar.org
 6 | Marketing Communications Research 207

Market Research Society Nielsen

15 Northburgh Street Nielsen House
London EC1V 0JR John Smith Drive
Tel: +44 (0)20 7490 4911 Oxford Business Park (South)
www.mrs.org.uk Oxford OX4 2WB
Tel: +44 (0)1865 528800
Kantar Millward Brown (London)
www.nielsen.com
24–28 Bloomsbury Way
London WC1A 2SL
www.millwardbrown.com
 208

07
Marketing
communications
agencies
LEARNING OBJECTIVES
By the end of this chapter you will be able to:
●● understand the range of different types of agencies;
●● understand the changing nature of agencies;

●● discuss different methods of remunerating agencies;

●● set up a selection process;

●● nurture relationships with the agency.

Agency types 209 Agency selection 220

Introduction 209 Agency selection process overview 220
Full-service, specialist, hybrid or in-house 209 Analysing the agency 226
Full-service agencies vs hybrid agencies 209 Choosing an agency 227
Tomorrow’s agency 212
Ongoing agency–client relationships 229
Agency structure 213 Onboarding 230
Planning department 214 Unhappy clients and unhappy agencies 231
Creative department 215 Firing the agency 232
Media department 215 Firing the client 233
Data analytics 216 Arrogance and egos 233
Production department 216
Traffic department 216 Agency issues 233
In-housing 233
The account management team 216
New competitors 234
Integrated co-located teams 217
Lack of agency differentiation 234
Agency remuneration 217
Summary and conclusion 234
Commission 217
Fees 218 Key points from Chapter 7 235
Pay-by-results 218
Affiliate partner commission 219 References 235
Costs vs ROI and creativity 220
Further information 236
 7 | Marketing Communications Agencies 209

In fact, some of these specialists may be freelancers

Agency types or independent consultants. And finally, clients (the
brand owners) can set up their in-house teams to
Introduction run their own ads, PR, content marketing or SEO.
Each of the four options have their own advantages
This chapter covers agencies, types of agencies, their
and disadvantages (see Table 7.1).
structure, fees and working relationships, from
There are more radical changes on the horizon
shortlisting to briefing, selecting, hiring and firing.
as more of the big players move into this agency
There are many types of agencies, including
sector. Notably, the big management consultan-
advertising, sales promotion, direct mail, PR, cor-
cies (who recruit talented digital staff combined
porate identity design, web design and more. Some
with their traditional strategic thinking) and the
call themselves agencies and others, consultancies.
large platform companies, like the FANGs and the
The overall structure of advertising agencies is
BATs (who have the data mountains, the analyt-
changing. Many agencies have moved their focus
ics, the digital talent, and soon, wide ranging,
beyond specializing in a single tactical communica-
value-adding AI) – these are now open to advertis-
tions tool. These agencies are now moving from
ing and marketing. (FANG are Facebook, Amazon,
shouting to listening, sharing, analysing and per-
Netflix and Google, while BAT are the big three
sonalizing messages whether advertising, sales pro-
Chinese platform giants Baidu, Alibaba and
motions/content marketing, direct mail or PR both
Tencent.) Some say the future of marketing is soft-
online and offline.
ware companies; we think platform companies
The process of change among agencies is being
offering marketing channels to both brand own-
driven partly by unsettled clients, visionary agency
ers and to comms agencies may well emerge as the
directors, digital disrupters, the media explosion,
winners.
the AI explosion, marketing automation, platform
companies and other new types of competition
emerging. Full-service agencies vs hybrid
agencies
Full-service, specialist, hybrid Mike O’Brien (2015) reveals why many brands
or in-house need something more than a large full service
agency:
As ‘ad agencies’ are generally the biggest type of
communications agency let us initially look at ad- At the moment most agency teams are split
vertising agencies and then the other options that into management, client services, researchers,
brand managers or marketing managers have. planners, creative, media, production, data,
The larger ad agencies offer a full service, which analytics, brand, direct, digital. Digital makes
includes research and planning, creative, media things even more complex, with specialist teams
planning and buying, production (of the actual ad) for SEO, PPC, display, email, affiliates, UX, social,
as well as many newer disciplines such as PPC, SEO, content, analytics, and so on. It is a mess. The
wastage is extraordinary. The results are less than
and data analytics. Many full-service agencies also
inspirational.
have departments specializing in forecasting, mar-
ket intelligence, customer insights, data, customer
experience design, AI and business planning, Hybrid agencies
together with support services for the advertising Agencies that offer integrated services, delivered by
campaign, including point-of-sale design, sales lit- integrated/hybrid staff, across all of the channels
erature, sales conferences and other below-the-line that end-customers use are hybrid agencies. They
activities such as content marketing/sales promo- break down the barriers between different channels
tion, PR and direct mail. Hybrid agencies tend to be and integrate them seamlessly for maximum im-
smaller but totally integrated (more later). pact. Whereas traditional ‘full-service agencies’ tend
Alternatively, there are specialist agencies that stay to be large agencies, with separate specialized de-
focused on a specific aspect, such as SEO, or PR. partments and staff, hybrid agencies have those
 210 Part One | Communications Background and Theories

rarer hybrid staff who understand UX, design, web- copy, more promotional “selling point” copy, and
sites, apps, email, social media, PPC, content market- more emotional “heart-warming” copy’ (Nicolaci
ing, contact strategies, CRM, marketing automa­tion, da Costa, 2019).
AI, IoT, Big Data, data analytics and testing, and
so on.
Hybrid agencies are tech savvy agencies with
scalable infrastructures who hire and retain hybrid AI creative copywriting opens up new
talent, and profit from diversified recurring revenue hybrid agency market
streams – ‘education, training, publishing, software
reseller licensing, affiliate programs — so they can ‘One heart-felt ad for a hoodie read: “A
focus on strategy, execution and results rather than windbreaker is enough to withstand the autumn
billable-hour quotas… They provide integrated wind in England”. The AI copywriter learns from
solutions that used to require multiple agencies and millions of existing samples and “can generate
consultants’ (Boches, 2016).
20,000 lines of copy a second in Chinese,” says
Li Mu, Director of Alimama (Alibaba’s digital
marketing arm). “A single product might require
Hybrid creatives required up to 10 versions of copy for different
advertising formats, like posters, web banners,
‘Monolithic creative is no more (other than with product pages, and event pages,” says Li Mu.
Christmas and the Super Bowl), because there AI-written “Shop the sale – don’t hang around,
are no longer any town squares full of book today!” proved more popular than the
congregating customers where you can put human-written “There’s still time to book that
them up. Creative has to sweep itself through dream holiday for less”.’
the B-roads and back alleys to find and win over
attentive eyes and ears. It’s a very different (Nicolaci da Costa, 2019)
challenge for brands and agencies.’

Roope (2018)

New hybrid agencies emerging

Interestingly, Honda also use a hybrid type of
agency in Malaysia – IH Digital. They are more of a
Hybrid agency structure partnering hybrid agency as they deliver paid media, owned
with FANG media and earned media (POEM) for Mazda. They
When DDB won the huge McDonald’s account in create content to provide owned media for social
2016 it did so by pitching not only its own services media (it’s good enough for TV as well); They then
but those of a combined team drawn from people distribute the content (content distribution) across
and services from Facebook, Google, The New York a huge variety of platforms to secure earned media;
Times, Twitter and other agencies like Alba, Burrell, They then amplify the content to maximize the paid
The Marketing Store, and many, many more. The media and extend the reach. This agency calls it
new hybrid agency was eventually named We Are 360-degree marketing.
Unlimited (Ritson, 2018). The big three Chinese In-house or do-it-yourself advertising also varies,
platform giants Baidu, Alibaba and Tencent (BAT) as some advertisers may develop the actual advertise-
are eyeing up possible hybrid partnerships, as they ments in-house but prefer to contract out some of the
grow their audience bases, their analytics skills and other advertising requirements to very specific spe-
AI potential. Alibaba’s AI-generated copywriting cialist services, such as a media scheduling and buy-
service ‘enables merchants on its e-commerce eco- ing agencies known as a ‘media independent’.
system to dictate the tone of the language… mer- Similarly, the initial creative work can be put out to a
chants can choose between descriptive “short-title” ‘hot shop’ or ‘creative shop’ to generate the concept.
 7 | Marketing Communications Agencies 211

going to allow us to emotively bring the stories

Honda take content marketing in-house of Honda products to life”.’
Hammet (2018)
‘Called the “Engine Room”, Honda’s relaunched
its content hub. It aims to “bring content to life”
in a way the brand hopes will appeal to a
Alternatively, the advertiser can go à la carte by
younger audience. Honda believes agencies
picking and choosing separate specialist agencies
have “ruled the roost for too long” and so it is
with specialist services for different parts of the pro-
taking control of more of its online media and
cess, eg using four different agencies for the re-
advertising in the UK to help it bring content “to
search, creative, production and media planning/
life” and drive reappraisal of the brand. Honda buying stages. There are other types of specialist
says it can now make changes on the site that agencies that focus on a particular industry sector.
once took up to a month – slowed down by the Managing an agency then becomes managing agen-
time it took for agencies to sign briefs off – cies, which can be complicated and very time-­
within the hour. One person is now responsible consuming for an already busy marketing director.
for a job that would have traditionally taken five. A recent discrete development in the à la carte
Honda is moving away from large agencies with option is the agreement of a large, well-known, full-
large overheads to smaller companies and service advertising agency to subcontract its crea-
freelancers while growing its inhouse work. It tive services to a small communications consultancy
is, however, retaining its media agency Dentsu. on an ad hoc basis. This may last only as long as the
Nick Bennett, Honda UK’s digital content and agency has spare capacity or is searching for extra
social media manager says “[Before] we had revenue. Some clients demand that their full-service
a… central agency on a retainer contract… agencies work alongside the client’s separate choice
they did a job and served a purpose but it wasn’t of media independents. Some full-service agencies
get only a portion of the full job.

TA B L E 7.1 The pros and cons of different client–agency working relationships

Brand manager’s/ Full services Specialist
client’s perspective (and hybrid) services In-house

Management and Easier, since it is all under one More work Total control, but
control roof (coordinating) more work involved

Security Limited risk – sensitive More risk – more Minimal risk – no

information is shared with people have access outsiders
agency to information

Speed/response Reasonably good (hybrid is Possible problems if Fast, since all

even quicker) à Ia carte = more decision makers are
coordination available

Cost Expensive, high overheads, but Cheaper, fewer Cheaper, but less
lower media costs with agency overheads media buying power
buying power (but hybrid have
fewer overheads)

Fresh views Yes Yes No

(continued)
 212 Part One | Communications Background and Theories

TA B L E 7.1 (Continued)

Brand manager’s/ Full services Specialist

client’s perspective (and hybrid) services In-house

Expertise Yes (jack of all trades, master of Yes (fill in gaps in No (lack of
none?) client’s skills) specialized
knowledge)

Stress Less pressure/workload Delegate some More stress – more

workload work

Meanwhile, the smaller, nimble, highly creative

From creative to full-service to yet mathematically capable digital consultancies
entrepreneur’s business that have sprung up and specialize in marketing
automation, data science, IoT, VR and AR will
Saatchi & Saatchi started as a specialist creative work with agencies as connected partners or spe-
shop in 1970 and grew into a full-service ‘integrated cialist providers.
communications network’, with 114 offices in 67 In an excellent piece entitled ‘The agency of the
countries, (with its HQ in London), and is now future’, Mike O’Brien (2015) predicted that as cli-
owned by the Publicis Groupe, the world’s third ents are already beginning to automate many of the
largest communications group. Meanwhile, in 1995, less challenging communications processes in SEO,
the brothers Maurice and Charles Saatchi set up PPC, display, email, mobile and social, agencies will
M&C Saatchi Worldwide as a global marketing deliver fewer and fewer of the following processes:
services company working across a wide variety of ●● content development;
industry sectors with today’s strategy focused on
●● activation publishing;
winning new business and starting new businesses,
with almost 2,500 staff employed in over 80 business ●● digital analytics deployment and reporting;
units run by local entrepreneurs. ●● social interaction propagation;
●● mobile communications;
●● web experience management;
Tomorrow’s agency ●● cross-channel testing and optimization;
●● media optimization;
Many years ago, WPP’s Martin Sorrell said that
agencies would be competing with software compa- ●● campaign management.
nies, search engine companies and many more as
‘frenemies’ or ‘copetitors’. He may be gone from
WPP, but he was right. Look at the DDB’s big win P&G integrate its agencies with a single
when they pitched McDonald’s and introduced ‘throat to choke’
their platform partner companies Facebook and
Google and other partners. Several years ago, P&G undertook the task of
At the centre of agency partnerships will be part- refocusing their global agency relationships. They
nerships that give access to AI and data. The big realized they had more than 2,500 different agencies
platform players, the FANGs and the BATs, may and 3,000 pay points, with a huge duplication of
become a new wave of frenemies and copetitors. resources, relationships and remuneration. Over the
Meanwhile, consultancy services like McKinseys,
course of a three-year process, they launched a
EY and others will be looking to partner with all of
Brand Agency Leader (BAL) model – whereby a
the above.
 7 | Marketing Communications Agencies 213

single person of a lead agency would have a single

contact point for all integrated services on that
Agency structure
brand at P&G. The BAL model has driven a new Different types and sizes of agencies have different
culture of accountability among lead agencies, and structures. The structure of a large advertising
a new approach to an old problem. The model is not agency is shown in Figure 7.1, which illustrates the
foolproof, and there have been a lot of kinks along many different departments, people and skills that
the journey – but it’s a quite unique step in the have to work together to create an advertisement.
challenges of unifying communications. Companies that have their own in-house advertis-
The move also required fundamental changes ing departments (even programmatic ads), and
on the P&G side – a single ‘throat to choke’ had to smaller, external agencies, will subcontract (or
be established for each brand internally, with that hire) any of the departments they do not have.
person controlling the briefing and approval of all Many of the bigger agencies also hire, or subcon-
agencies globally. Not every company is ready for tract, directors, producers, camera people, photog-
such a radical change, and not every P&G brand raphers, film companies, print and production
has migrated to the BAL model (R3, 2015). (Note: facilities. Any other agent, agency, consultant or
‘Throat to choke’ is an aggressive metaphorical consultancy – whether public relations, direct mail,
expression that describes the benefit of having a sales promotion or corporate identity – also relies
single person in a lead agency as the single on the ability to bring together many different skill
contact point – so if things go wrong, you only have
sets and departments, as shown in Figure 7.1.
Although pure ad agencies are growing into inte-
one ‘throat to choke!’ We do not advocate choking
grated agencies offering an additional suite of so-
anyone, nor grabbing anyone’s throat!)
cial media services, TV advertising is not going

F IGU RE 7.1 Structure of a large traditional advertising agency

Other Other
New media communication Data analytics communication Sponsorship
tools tools

UX
(user experience)
Database Sales
Others promotion Others
marketing

Account
management

Planners Creative Production Traffic

(research and Media (concepts and (film, print and (progress
strategy) developments) websites) dispatch)

(planning and buying)

Market research + Press, TV, Ad at right

strategic direction + posters, cinema, Make the place at the
Art and copy
creative beliefs new media actual ads right time
 214 Part One | Communications Background and Theories

away and still takes a disproportionately large see how value exchange works so beautifully.
chunk of any brand’s budget. Therefore the origi- Prospects who want a specific report, set of tips or
nal ad agency structure is still worth exploring. guidelines that solves a problem (or exploits an op-
Agencies have evolved from pushing advertis- portunity) give their contact details in return for ac-
ing campaigns to nurturing communities of con- cess to the content. The engine behind this is
sumers around brands. The new breed of agencies Demand Exchange, which is basically an advanced
have a greater understanding of data analytics, lead generation platform that helps B2B companies
brand, direct and digital skills (including AI’s increase revenues and reduce costs (and is listed as
potential) along with the required planning, crea- GDPR compliant, and has also passed DMA Comp­
tive and media skills. It is also possible that, instead liance Assessment). They offer the ‘full service’ from
of pitching for a brand’s business, agencies may content syndication, to data capture, to verification
offer a new service – selling access (posting their and validation (verify the quality of the data) to lead
content) to groups of consumers with similar qualification (only leads that match the required
interests that they have nurtured (eg a Facebook or persona), data enrichment, data output (at the click
LinkedIn group or a chatbot’s followers). of a button), integrations (with MA and CRM), re-
Successful agencies will probably connect them- porting, analytics and tracking ROI and account-
selves with clearly defined communities of con- based marketing (ABM) focused on a list of target
sumers and ‘cultivate insights into their behaviour’. companies to make multiple connections within a
Agencies may also develop their own bots ready to company. The cost per lead ranges from £50 to £70
carry the client’s message personalized and at scale (although some can go up to £150 per lead).
(ranging from election bots, to winfra bots and Agency structures have changed somewhat over
Boris bots to research bots to sales bots to lead the years, particularly recently; with agencies want-
generation bots). ing to position themselves as more nimble and
quicker to react, many have developed flatter, less
compartmentalized structures. The ad agency struc-
ture is changing.
A lead bot Let’s now have a look at the classic agency
­structure.
A lead bot can be set up, promoted and used to
help people get information about any particular
area of interest. In return for giving tailored, Planning department
relevant and useful content/information, the bot
Planners are more than glorified researchers. They
asks ‘Is it ok if I pass this along to someone who
have to know the right kinds of questions to ask in
can help you with some special offers?’
the research, commission the research and inter-
Instead of generating enquiries (leads) from pret the results at two different levels. First, they
agencies and their ad campaigns and direct mail have to absorb, summarize and translate large
campaigns and telemarketing campaigns, leads market research reports into simple lay terms for
can also be generated by a new type of company, inclusion in the creative brief that they, in con-
content syndicators – see the Digital Doughnut junction with the account director, give to the
example, below. creative team. They also need to understand ana-
lytics, and of course digital potential. Second, the
information has to be interpreted at a strategic
and tactical level for discussion with the account
Content syndicators skip executive, account manager, account director and
advertising step and collect leads often the client. Planners provide an objective
Content syndicators such as DigitalDoughnut.com strategic voice, unhindered either by the account
work at scale to deliver B2B clients several thousand executive, who sometimes wants to ‘sell’ an adver-
leads per month without advertising. Look at their tising concept to the client simply because the
free resources section on their website and you will creative director wants to get on with it, or by
 7 | Marketing Communications Agencies 215

c­ lients, who sometimes want to get on with it by Outsourcing will include user-generated content
quickly running some advertisements to satisfy the (see Chapter 1), harnessing champions and brand
sales force, who are anxiously waiting for news on advocates, as engagement and user-generated con-
the new campaign. tent becomes more important.
Planners are experts in making sense of market
research data and condensing the information into
creative briefs. Media department
The media department basically plans and buys the
space where the advertisements are eventually
Creative department placed (press, websites, posters, social platforms,
It is unfair to stereotype creative people as coming apps, games, TV, radio, cinema, etc). Media plan-
in late, lying around and dreaming up the big ideas ners and media schedulers can be separate from
and concepts that drive all big advertising cam- media buyers, who negotiate and ultimately buy the
paigns. They can work long hours under extreme space from the media owners.
pressure to deliver unique, creative ideas that grab Maths Men (those who are involved in pro-
attention, build brands and win customers. They grammatic ads, algorithms, or any form of soft-
constantly search for the big idea that has to fit the ware or automation that helps to minimize media
single-minded strategy presented in the creative costs and optimize a client’s budget) are becoming
brief that is developed by the planning department. key players in the media department and media
When working on brands and direct marketing, houses. Maths Men used to be called the econo-
creative people usually work in pairs, covering metrics department. However, as econometrics
words and pictures, ie a copywriter (or wordsmith) becomes a slightly dated term and data or Big Data
and an art director. When working in digital mar- keeps its current appeal, data analysts and data
keting, teams tend to be more agile (ie a cross-­ planners are the more commonly used terms.
functional group of people that have all the skills Rather than being a department in an agency, many
required to create, test, run, tweak, optimize and planning departments now sit in media companies,
report ROI of an ad campaign). albeit owned by agency holding group companies
such as WPP.
Both media planners and media buyers can be fur-
ther separated into those who specialize in TV, press
Creative people: An appreciation or digital media, remarketing and programmatic
advertising. As markets fragment and media explode
‘Somebody finally has to get out an ad, often into many more magazines, TV stations and websites,
after hours. Somebody has to stare at a blank large audiences become more difficult to buy. Despite
piece of paper. Probably nothing was ever this, the media explosion presents new opportunities
bleaker. This is probably the very height of for schedulers and buyers, as these new media vehi-
lonesomeness. He/she is one person and he/she cles have access to more tightly defined target mar-
is alone. Out of the recesses of his/her mind kets. The media department now analyses the
must come words which interest, words which appropriateness and cost-effectiveness of much more
persuade, words which inspire, words which media than ever before (including the one-to-one
sell. Magic words.’ mass marketing mentioned with personalization in
Leo Burnett, Founder, Leo Burnett Company Chapter 5). This is quite a responsibility, as the bulk
of the advertising spend is in media and not produc-
tion (eg a £20 million campaign might have a £19
million media budget and a £1 million production
Creatives now work more on content required for budget). On top of this, media departments can
generating ongoing dialogues with individuals and deliver highly creative media strategies that find new
less on one-way campaigns to a mass audience. ways of delivering advertisements to target audiences.
 216 Part One | Communications Background and Theories

You think you are overworked – try the media depart- clients, and the need for a traffic manager becomes
ment or a media company. self-evident. Add in games and virals, and traffic
gets busier. Traffic departments are still used in
large, well-established agencies, with managers
Data analytics using software like Roadmunk to manage projects
Data engineers, data architects, data-visualization in real time.
experts and data scientists with advanced analytics
and AI skills will be required by full-service agen-
cies to improve decision making across communica-
The account management team
tions processes from research and design to creative In a large agency this can involve an account direc-
to supply chain. ‘Data scientists are required to tor, account manager, account executive, planner,
build the analytics models – including machine creative director, copywriter, art director, TV pro-
learning and, increasingly, deep learning – capable ducer, media director, TV media scheduler, TV air-
of turning vast amounts of data into insights’ time buyer, press planner and press buyer.
(Henke et al, 2018).
The account executive
Production department Sometimes also called an account representative, the
account executive is dedicated to a particular client.
The production department actually makes the ad- The account executive wears two hats – the client’s
vertisement. Many agencies subcontract various when talking to the agency and the agency’s when
parts of the production, eg hiring a studio, camera talking to the client. Responsibilities include attend-
crew or photographer, director, editing suites, etc. ance at all client meetings, writing up ‘contact re-
This can involve long pre-production meetings fi- ports’ and general liaising between the many different
nalizing all the minute details, flying around the members of the agency’s team and the client so that
world to shoot some film, and the less glamorous, projects get delivered on time (quasi producers).
lonely post-production – working around the clock Many agencies write up contact reports (after each
in a dark and dingy editing suite. meeting), because they confirm and clarify all key
points discussed, conclusions reached and any ac-
tions to be taken. This cuts out the opportunity for
any misinterpretation further down the road when
Creating games, funny virals and some ads the client says ‘I never asked for that.’ When agreed
by the client, vital documents, such as a summary of
Production departments (and outsourced the agency’s interpretation of the client’s brief, or con-
production companies) will be full of clever people, cept proposals, are sometimes required to be signed
some of whom can create great 60-second movies by the client as ‘approved’. This keeps communica-
(and longer-form ads – page 359), as well as online tion clear, reduces ambiguities and, if a row does
games and, of course, contagious virals. break out over a particular strategic direction or over
the details of copy (the words in the advertisement),
the agency can pull out a signed ‘approved by’ copy.

Traffic department
The agency model of the future
Although the traffic department is now usually part
of the creative services department, dispatch, or ‘What the agency model of the future looks like of
traffic, is responsible for getting the right artwork course depends on the brand, its strategy, its
or film to the right magazine or TV network at the
internal capabilities and its KPIs. There will never
right time. This becomes complicated where post-
be a one-size-fits-all solution. But such a complex
ers, cinema, radio and magazine inserts are in-
landscape cannot continue; it works neither for
cluded in the media strategy. Multiply this by
the brands nor the agencies. And agencies will
several different campaigns for a range of different
 7 | Marketing Communications Agencies 217

F I GU R E 7. 2 360-degree agencies
need to get on board with this new way of
thinking and prove their value to brands, or
watch as their business goes to the
consultancies on strategy, and direct to media
owners like Facebook and Google on execution.’
Vizard (2018)
Amplify your
Create content to
content to maximise
provide owned
your paid media and
media for social
extrapolate your
Integrated co-located teams reach
engagement

Some clients want their agency teams to work more

closely with the brands they represent. For example,
the brand O2 has its media, PR, advertising and
CRM agencies co-located three days a week. The
Distribute the content created
big players, Unilever and Procter & Gamble, both across a huge variety of
get their cross-agency groups to work more closely platforms to secure earned
together. It makes sense, builds a greater ‘team feel- media
ing’ and facilitates easier internal communications,
if they all physically work closer to each other.
Bigger agencies have to think smaller. Think like
small, nimble, agile, fast-moving agencies. Big agen- SOURCE: Courtesy of IH Digital
cies have big overheads, and with that comes a cul-
ture of cost and hence agencies desperate to keep
hold of their clients budgets. Clients, meanwhile case of a £10 million TV advertising campaign, the
want to move some work in-house. agency gets invoiced by the TV station at rate card
£10 million less 15 per cent, ie £8.5 million. The
client then gets invoiced by the agency at the full
rate card price, ie £10 million (this can be checked
‘These days a great brand campaign had better be with British Rate and Data (BRAD) or the media
backed up with a great online experience. If not, owner’s published rate card). The 15 per cent com-
Google’s search engine will ensure your mission really represents a 17.65 per cent mark-up,
competitors get to cash in on your brand activation ie the £1.5 million commission is the mark-up that
efforts… The big agency, in my experience, has a the agency adds on to its media cost of £8.5 million:
cultural downer on thinking small.’ Agency invoiced by TV station less 15 per cent
O’Brien (2017) £8.5 million
Agency invoices client at full rate card £10.0
million
Agency mark-up £1.5 million
Agency remuneration Agency mark-up 17.65 per cent
The agency will also apply its agreed mark-up to
Agencies have four methods of remuneration: com-
other services that it subcontracts, such as market
mission, fees, pay-by-results and affiliate partner
research and so on. Thus a piece of research that
commission
costs the agency £10,000 would be charged to the
client (+17.65 per cent) at £11,765, or more. One
Commission of the problems with the commission system is
that it can tempt agencies to get clients to spend,
Although this has changed drastically, historically spend, spend. Incidentally, the commission system
media owners have given recognized agencies a 15 does not necessarily cover all production costs, so
per cent discount off the rate card price. Thus, in the
 218 Part One | Communications Background and Theories

these costs are often separately invoiced directly to

the client by the agency. The number of clients
Rebates above and beyond their normal
using 15 per cent commission has declined signifi- commissions based on all the money they
cantly, in favour of a combination of the payment spend for all their clients
methods outlined below. In fact, the 15 per cent
commission has been slashed in half by some ‘In most of the world ad agencies get rebates
media owners. Back in 2006, Yahoo announced from media companies based on their “pooled
that it would pay 10 per cent commission to agen- buying” power. In other words, they get cash
cies that spend £80,000+ per month on search returned, above and beyond their normal
marketing, 5 per cent to those spending £20,000+ commissions, based on all the money they
and nothing to agencies that spend less than that. spend for all their clients.
In a hyper-competitive marketplace, some special- Clients aren’t routinely informed about exactly
ist media-buying companies – with much lower how much of these rebates is generated by their
overheads – can work with commissions as low as
particular spending. Even when clients press for
2 or 3 per cent. Many clients today are moving
answers, they often allow agencies to keep the
towards fees instead of solely commission-based
extra money so clients can continue to pay lower
remuneration.
fees.’
Crain (2013)
Commission rebating
Rebates are paid by media companies (such as TV
or newspapers) to agencies in return for certain vol-
umes of media spend (common in the UK). These Fees
rebates are not always passed on to advertisers. In
fact, some advertisers consider rebates to be ‘con- Smaller clients with smaller media spends do not
troversial practices that were often not disclosed to generate sufficient commission, so a fee will gener-
clients. These included cash rebates, rebates as in- ally be agreed. Larger clients are also moving to-
ventory credits and “service agreements” for non- wards fees such as an annual, quarterly or monthly
media services such as consulting or research’ retainer or, alternatively, a project fee. ‘No commis-
(Hobbs, 2017). This poorly kept secret drives many sion’ means no media bias, since the agency is then
advertisers to ‘expect agencies to fully declare rev­ free to recommend, say, direct mail, without losing
enue streams directly or indirectly related to their any of its income (which would have been gener-
business, for example, via rebates and arbitrage’ ated through TV commissions).
(Pandey, 2016). Many agencies receive a fee along with some
Some clients also insist that the agency takes less level of commission, and/or some level of pay-
than the traditional 15 per cent commission, say by-results. The agency’s remuneration essentially
just 10 per cent, with the remaining 5 per cent going depends on how much work is involved and how
back to the client. This separate type of commission much the client is likely to spend (on media). The
rebating occurs when an agency passes on some of trend, particularly with larger clients, appears to be
its commission to the client. There is no actual moving towards a fee basis or a mixture of fees,
refund or rebate. The agencies simply invoice the commissions and results/performance.
client at rate card costs less the level of rebate, in
this case 5 per cent. Commission rebating opens the
door to agencies competing on price instead of on Pay-by-results
quality of service, as they have done traditionally. Pay-by-results (PBR) can be mutually beneficial. It
Most industries dislike price wars, and advertising is sometimes disliked, however, because of the lack
is no exception. However, ‘advertisers are changing of control that the agency may have over its own
the way they pay agencies as they seek more trans- destiny. PBR (also called value-based payment mod-
parency and simplicity in their agency relationships’ els) has become more popular. Almost half of adver-
(Bruell, 2017). tisers (43 per cent) use performance-based or a
 7 | Marketing Communications Agencies 219

combination of performance- and labour-based fee company keeps a percentage and the client receives
(World Federation of Advertisers, 2018). In fact, ‘80 a percentage. If the advertisement is 10 per cent
per cent of marketers plan to increase the use of over budget, the client pays; anything over 10 per
performance-based remuneration contracts with cent and the production company pays.
their ad agencies over the coming year in the hopes
of not only eliciting better value and more trans­
parency but improving the working relationship’
(Faull, 2019).
Pay by results for packaging designers, too?

PBR extends beyond advertising into other

disciplines as far away as design. This can apply to
Airbnb pay TBWA on a ‘per night’ basis new product design (as a royalty) or even
packaging design, when the packaging design
‘Since 2011, marketers have been pushing for consultancy bases its fee (or a portion of its fees)
agencies to ink alternative contracts; from on the client’s increase in sales occurring after the
Airbnb paying former creative shop TBWA on a launch of the newly designed pack.
“per night” basis (meaning, the agency took a
cut of every sale) to more experimental models
like St Luke’s set up with Uber-rival Gett.’
Faull (2019) Although PBR appears attractive to the client, it can
generate extra administrative work, as exact results
have to be measured, royalties and contributions
calculated, invoices requested and cheques raised
Media owners like Google offer another form of for each agreed accounting period.
PBR: cost per click (CPC) and cost per action The method of agency reimbursement is funda-
(CPA – not be confused with the other CPA, cost mental to the client–agency relationship (both
per acquisition of a customer). If no one clicks on working and contractual). An agency’s flexibility in
the sponsored phrase or no one buys (if that is the its range of reimbursement packages can influence
goal) then Google do not get paid. the client’s selection process.
The problem with PBR, for agencies, is that some
results are affected by variables beyond the agency’s
control, eg out-of-stock, price increase or competi-
Affiliate partner commission
tor activities. If, on the other hand, the payment is As mentioned earlier, agencies can generate addi-
linked to results directly influenced by advertising, tional revenues from diversified recurring revenue
eg increasing brand awareness, then the agency has streams from education, training, publishing, soft-
more influence and is happier to be paid for, say, ware reseller licensing and affiliate programmes.
boosting brand awareness (rather than just sales). Consider reseller licensing and affiliate partner ar-
Another area where results are easily measured rangements. Whether it is software relicensing or
and are directly related to the agency’s input is pure affiliate programmes, these can generate repeat
media buying. If an agency achieves media buying revenue streams for agencies. This can be (a) a sim-
at a price that is better than average, then the saving ple referral programme or (b) a more lucrative certi-
can be shared between client and agency. For exam- fied partner programme; eg a software company
ple, if the average advertising cost per thousand to offering marketing automation solutions for SMEs
reach, say, housewives with children is £3.50, and if might pay $500 per referral that arrives via your
the agency gets this for 10 per cent less, then the unique url and then ultimately signs up for the ser-
saving might be split 8 per cent to the client and 2 vice. The more lucrative arrangement is when the
per cent to the agency. agency chooses deeper involvement and gets trained
Some agencies, like BBH, prefer a fixed bid with up and also actually installs the system. These certi-
shared risk system. For example, if an advertise- fied partners can earn 20 per cent of the monthly
ment is produced under budget, the production fees for many years (subject to agreement).
 220 Part One | Communications Background and Theories

Costs vs ROI and creativity strength of the media department the key criterion
when choosing an agency, particularly if the store
Think about the essential ingredients for successful primarily wants maximum media coverage for its
creativity and successful campaigns. BBC’s Chief relatively straightforward black-and-white product
Customer Officer, Kerris Bright, believes that it is information advertisements. Another client may be
about being really clear on the problem you are try- looking for a radically fresh approach and have a
ing to solve and not just doing ‘creativity for crea- bias towards agencies with abundant creative tal-
tivity’s sake’. It is important, she says, to be bold, ent. Either way, a clear brief should be prepared to
but also focused and reframe the conversation identify exactly what – in marketing and advertis-
about creativity away from cost to return on invest- ing terms – the new advertising campaign is trying
ment. ‘I’ve been in meetings talking about media to achieve.
ideas and someone will say that’s “very expensive” The agency selection procedure is as follows:
and I’ve said, “what’s expensive?” I’m talking about,
●● define requirements;
is it a good return?’ Bright asks. ‘Some things will
have a high cost associated with them. It might cost ●● develop a pool list of attractive agencies;
a lot of money, but it might have a much greater ●● credentials pitch (by the agencies);
return, so we talk about a low return on investment, ●● issue brief to shortlisted agencies;
not expense’ (Rogers, 2019).
●● full agency pitch;
●● analysis of pitch;
select winner;
Agency selection ●●

●● agree contract details;

The coordination of any campaign’s development, ●● announce winner;
launch and measurements requires time and man- ●● commence onboarding.
agement skills. Powerful personalities in agencies
Some clients prefer to get on with it by issuing a
need to be managed. The ability to ask the right
full brief to the shortlist of, say, six agencies with-
question is a valuable management skill. The fa-
out going through the agency credentials presenta-
tigue factor in negotiations or discussions can also
tion. Other clients prefer to restrict the valuable
cause rash decisions to be made. Marketing people
research findings and strategic thinking to as few
tend to be energetic, enthusiastic, action-orientated
agencies as possible, because the unsuccessful agen-
achievers. Sometimes steely patience needs to be ex-
cies are free to work for the competition at any
ercised. Perhaps a decision has to be delayed until
time in the future.
further research can answer some emerging ques-
tions. Painstaking attention to detail may some-
times seem irksome to the advertising agency, but it Define requirements
is often the mark of a true professional. On the The marketing director must be clear about what is
other hand, a key resource, time, may be running required when selecting an agency. What kinds of
out. More research reduces the risk but costs time services are critical, brand strategy, brand identity,
and money. Can deadlines be moved? Is there advertising, creative services, media planning and/or
money left for more research? Is there time before buying or lead generation ad campaigns etc. This
the competition launches its new offer? A decision then leads to what are the critical skills and services
made in haste is rarely the best one. required? In addition to the core service you require,
say PPC advertising, try to consider the additional
services you will be offered – market research, com-
Agency selection process overview petitor analysis, data analytics, content marketing,
Defining exactly what is required is the first stage of social media audits, etc. You do need all of these but
agency selection. This is because an appropriate you have to prioritize which are more important so
choice is partly determined by a specific require- that you can allocate your scarce resources. What
ment. Some furniture retail chains may consider the kind of agency is required – full-service global, or
 7 | Marketing Communications Agencies 221

local specialists? Location of the agency may be im- There are also agency assessors, such as the
portant to you, too. Your pool list can be further Advertising Agency Register, and intermediaries
refined by including, or excluding, agencies that whose business is agency selection. They can handle
have (or have not got) experience in your industry the development of the pool list, pitch list, pitch
sector. Do you want to exclude large agencies with analysis, agency selection and even performance
subsidiaries or divisions that have clients that are assessment of the agency when it starts working for
competitors? So, consider services required, type of the client.
agency, industry experience and competition when
drawing up a pool list. Credentials pitch
Some clients, before issuing a full brief, prefer to ask
Pool list the pool of agencies to present their credentials.
Most advertising managers and marketing manag- This includes examples of current and previous
ers observe various campaigns by watching adver- work, team members’ profiles, and company his-
tising and noting any particularly attractive tory, structure and facilities. It is worth visiting the
campaigns. Agencies working for the competition agency, and sometimes at short notice, as this gives
need to be excluded or treated with extreme cau- the client a feel for the potential agency, and its at-
tion. Some desk research, both online and offline, mosphere, organization, professionalism, etc. From
can reveal the agencies behind the brands by refer- this a final shortlist is selected and issued with a
ence to organizations such as AdForum, which detailed brief.
allow advertisers to look for agencies using sensible
criteria. Advertisers can create shortlists, preview
creative work and explore an agency’s profile, on- Too-long agency shortlist
line and free of charge. Many marketing managers
have a fair idea of who is doing what advertising in
Some years ago, Westminster City Council invited
their sector by regularly reading the trade press.
10 agencies to pitch for its communications work. A
Other managers spend a few weeks watching more
long shortlist creates an unnecessary amount of
advertising than normal plus agency credential vid-
unpaid work for everyone concerned.
eos, which, ironically, can be a tad tedious.
Some clients prefer to do their own screening
and request an agency reel (video) directly from a
particular agency so that they can view the agency’s Briefing, pitching and selecting take time and skills.
best work. As mentioned, online sources (eg www. Apart from creating a lot of work, a large pitch list
adforum.com) share agency info, some of their cre- sometimes leaves sensitive marketing information
ative work and sometimes see some interesting with many different people. Some cynics see it as an
updates and communications articles and news opportunity to get free strategic and tactical ideas
alerts. Remember, selecting agencies is hard work from the best brains in each agency.
and requires rigorous attention to detail. Bad selec-
tions are very expensive.
Another way of building a pool list is through
the professional associations such as the Institute of Pitches are not for everyone
Practitioners in Advertising (IPA), the Incorporated
Society of British Advertisers (ISBA) and the ‘When it comes to agency relationships, BBC’s
Advertising Association (AA). They all offer to pro- Chief Customer Officer, Kerris Bright explains
vide lists of agencies that they think are suitable to her focus is on feeling engaged in a collective
handle a specific type and size of business. Similar endeavour, which is why she is not a fan of the
services are offered by the relevant professional agency pitch process as it can feel like there is
institutes of other service sectors such as public too much luck involved in getting to the right
relations, sales promotion, design, direct mail, etc place.’
(see ‘Further information’ at the end of each chap- Rogers (2019)
ter). This service is normally free.
 222 Part One | Communications Background and Theories

Issuing the brief ●● 3Ms:

Briefs vary in size, structure and level of detail. || Men/women – who makes the final
Some clients may summarize on to a single A4 sheet decision, members of the team, who
of paper; others issue a much more detailed briefing reports to whom, contacts for additional
document (one Guinness brief was 100 pages). questions.
Essentially, the brief should incorporate at least the || Money: key question for the
situation, objectives and strategy (SOS) and the agency – what is the budget?
3Ms (men/women, money and minutes), part of the || Minutes: timescale and deadlines for
SOSTAC® planning system explained in Chapter 1. pitch, agency selection and eventual
The brief tends to be short, while a marketing com- campaign launch.
munications plan has much more detail. Since the
brief usually goes out to several agencies pitching Control is sometimes included, as it outlines how
(only one of which will get the business), a difficult the campaign will be measured, which in turn moti-
dilemma emerges. How much confidential and stra- vates the team to get it right. A smaller client may
tegic information should be revealed in the brief, prefer to replace the advertising and/or marketing
given that the majority of the recipients will not objectives with a statement of the problem and sub-
work for you and may one day work for your com- sequently ask the agency to present a complete pro-
petition? Food for thought. motional plan. It is likely that the agency’s first
At the bare minimum, the brief will usually question will be: ‘How much do you have to spend?’
include the following: As mentioned, there are obvious dangers of releas-
ing strategic information to several agencies, the
●● Situation: Where you are now, including the majority of whom will never work for you (since
market, channels, segments, target markets, there is usually only one winner or single agency
trends, competition, market share, position, selected). The corollary is that too little information
current and previous campaigns, strengths reduces the quality (and possibly strategic direc-
and weaknesses, unique selling propositions tion) of the proposals. So start collecting ads, sales
(USPs), features and benefits of the brand promotions, web pages, packaging, etc now.
and the organization. It is important to get the brief correct and con-
●● Objectives: Where you want to go: cise. If there are specific requirements, spell them
marketing objectives and communications out, eg ‘It must be clearly legible from eight feet
objectives (see pp 260 and 270 for examples) away’ or the ‘The brand name must stand out from
plus specifically defining exactly what is the the crowd’, etc. You must work hard at stating your
problem (or opportunity). Include the positioning and of course benefits, USPs, etc.
required positioning and tone of voice. Remember, a casual brief will probably generate
Ensure also that effectiveness criteria and casual concepts followed by frustrations and accu-
evaluation methodology are clearly specified. sations. Get the relationship off to a good start with
●● Strategy: How you are going to get there a clear, concise, yet comprehensive, brief.
(including how the marketing strategy fits in
with the overall corporate strategy). This Pre-pitch agency efforts
may also include a campaign strategy if this
The shortlisted agencies are invited to make a full
is already worked out.
presentation or sales pitch. This usually involves
●● Control: How you will know when you’ve several members of the agency staff and is viewed
arrived. Both the agency and the client by several members of the client company. The cost
should agree on what success and failure will of a major pitch varied from £750 to £75,000 in
look like. What are the key criteria, and how 2017. The highest cost incurred by an agency in
will they be measured? 2016 was £150,000 (Ledger, 2017).
US-owned McCann Erickson was reported to
draft in a professional teacher of meditation and
relaxation techniques before every pitch. JWT
 7 | Marketing Communications Agencies 223

practises its pressure presentation techniques with

bizarre scenarios like asking its teams to imagine Will they love me?
that they discover one of their art directors pushing
cocaine and that, as they prepare to fire him, they ‘Our research has shown that, generally
discover his wife is dying of cancer and in need of speaking, clients are not happy about changing
private medical treatment. Real empathy, sound agencies. Such events are usually a signal that
strategy, exciting creative work and reasonable costs they are unable to sustain a productive
are often considered to be the key factors during a relationship with other people, which is
pitch, but some agencies take initiatives before the something that none of us is pleased to accept,
actual pitch, as Table 7.2 shows. however difficult the other people might be...
the prospect [potential client] is under pressure
Pre-pitch client’s feelings from his boss to get it right quickly... so when he
steps from the bustle and stress of his own
Other potential or prospective clients would deny
trade into the palm-fringed oasis of Berkeley
any such self-imposed pressure. They may see the
pitch as an exciting and stimulating process full of Square or Charlotte Street or Covent Garden it
fresh ideas and strategic thinking presented by is possible that he has two questions in his
clever, articulate (and sometimes entertaining) peo- mind: “Will they love me?” and “Can they save
ple. Client egos are massaged, and generally the my neck?”’
prospect is treated as a revered guest. Other pro- Brian Johnson, New Business Director, JWT
spective clients see pitches as a more tedious affair,
since they have to repeat their brief in detail several
times over and then sit through the inevitable cre-
dentials bit before they get to the heart of the mat- The pitch
ter – the agency proposals. After weeks of intensive preparation of exciting
Most selling situations, including pitches, are creative ideas, ingenious media plans and pitch re-
about the removal of uncertainty. So understanding hearsals, copies of the proposal or pitch document
the problem, and identifying clear solutions with are laser-printed, bound and made ready for client
enthusiasm and conviction, is a winning formula. distribution after the main presentation. The pitch

TA B L E 7.2 Pre-pitch agency initiatives

Client Agency Stunt

Kiss FM Radio BBDO Delivered a framed poster to the Kiss MD bearing the legend ‘We’ll put
your name on everyone’s lips’*

Kiss FM Radio Saatchi Covered Kiss HQ with pink balloons on Valentine’s Day

Guardian Publicis Booked a 96-sheet (40’ x 10’ poster) site opposite the newspaper’s offices
during the week of the pitch and ran flattering ads that changed each day*

Financial services Publicis Sent a safe containing the agency’s credentials

company

Toyota Saatchi Three Toyota cars suspended above Charlotte Street, hanging out of the
agency’s offices*

NOTE: * Won the account.

 224 Part One | Communications Background and Theories

itself is where an advertising agency has the oppor- built, and a special chair was delivered to the func-
tunity to advertise or sell itself. Given that most tion room for Mr Robinson, the arthritic and age-
campaigns try to be different, grab attention and ing Weetabix chairman. As the Weetabix panel
make an impression, it is understandable that some seated themselves the next morning, the lights
agencies should regard a pitch as a creative oppor- dimmed until they were all immersed in an enthral-
tunity also. Some would say, an expensive opportu- ling darkness. A spotlight burst a stream of light on
nity as the cost of a pitch can be astronomical, eg to the stage, where Peter Marsh knelt as he opened
£100,000 on a big global pitch say for British his pitch with: ‘As one of Britain’s few remaining
Airways or a global brand. Agencies often make test wholly owned independent advertising agencies, it
films for the pitch and costs quickly add up. gives me great pleasure to present to you, Mr
While most agencies pay up to £75,000 per Robinson, as chairman of one of Britain’s few
major pitch, many more hours are burnt in over- wholly owned cereal manufacturers...’. ABM won
night presentation preparations. As to clients pay- the account.
ing for pitches, it is still too rare; but they’d never One final ABM classic pitch was for Honda.
pay more than £5,000, which is really just a token ABM hired the 60-piece Scots Guards bagpipe band
gesture. to play the Honda jingle ‘Believe in freedom, believe
There are many stories of daring pitch tech- in Honda’, while marching up and down London’s
niques, some of which work and some of which do Norwich Street (where ABM was making its pitch).
not. Here are a few. Again, ABM picked up the account. Another agency,
Legendary 1980s agency ABM created the clas- AMV, had Hollywood hero Bob Hoskins at its pitch
sic British Rail pitch, which purposely created client for BT (which it won).
tension when the top executives from British Rail Strict adherence to the time and type of presenta-
were kept waiting in a smoke-filled reception area tion (specified by the client) is essential. When
while the receptionist ignored them throughout her Burkitt Weinreich Bryant was pitching for Little­
gossip-filled telephone conversation. Eventually, a woods, it was asked to make a ‘short and sweet’
space was cleared among the empty cans and orange final pitch, since the then 92-year-old chairman, the
peels, and the executives were invited to wait, as the late Sir John Moores, would be in attendance. The
agency people were ‘busy’. After some minutes the trade press reported that ‘after over 30 minutes
British Rail executives had had enough. As they got managing director Hugh Burkitt was asked to finish
up to leave, the agency chairman, Peter Marsh, clad as it became obvious that Sir John’s interest and
in full BR uniform (complete with cap, whistle and attention was waning’. A row broke out as Hugh
flag), burst in and said, ‘You don’t like it. Why Burkitt persisted and a senior Littlewoods executive
should your passengers?’ He then invited them to tried to stop the pitch.
listen to how he and his colleagues were going to Way back in the 1990s, when British Airways
solve their problems. moved from Saatchi & Saatchi to Maurice and
Don White, formerly of Benton & Bowles, is Charles Saatchi’s new outfit, M&C Saatchi, all the
reported to have dressed up as a redcoat for a agencies involved threw everything at this prestig-
Butlins pitch. The client took one look, said ious £30 million account. In an attempt to drama-
‘Anyone dressed like that isn’t suitable for my busi- tize BA’s global reach, Saatchi & Saatchi did the
ness’, and left. David Abbott of Abbott Mead pitch in different rooms for different stages. Each
Vickers is reported to have greeted Metropolitan room had been completely redecorated in the styles,
Police Commissioner Sir Robert Mark with a high- natural habitat and climate of particular parts of
pitched nasal ‘Hello, hello, hello’ as he arrived to the world – tropical rainforests, etc. When Bartle
hear the agency pitch. Not amused, Sir Robert left Bogle Hegarty (BBH) got its chance, it reassured BA
the building. about BBH’s ability to create extremely satisfied cli-
Agencies pitching for the Weetabix breakfast ents by providing ready-made testimonials after the
cereal account were invited to make their pitches in presentation – a wall went back and BA were sur-
a hotel. As ABM was the last agency to pitch on the rounded by the key decision makers of every one of
final morning, it decided to redecorate the function BBH’s clients, who then had lunch with them. When
room in the ABM colours. This required an over- M&C Saatchi got its chance, Maurice Saatchi stood
night painting and carpeting exercise. A stage was up and talked about the importance of music to the
 7 | Marketing Communications Agencies 225

BA brand, explaining that they had commissioned

their own composer to create a unique blend of Dropping your guard
popular classical music that BA could own. A grow-
ing murmur of approval was heard. He went on to During an intense, high-profile, multimillion-pound
say that they would like the client to meet the com- pitch, the client called for a 10-minute break.
poser, at which point in walked Andrew Lloyd Unfortunately for the agency (which will remain
Webber. unnamed), a senior agency member had forgotten
The worst, most painful and potentially career- to remove his scribbled notes, which the client
busting ad agency presentation was presented by accidentally read. ‘Watch out for the – in the
Saatchi & Saatchi’s own Peter Levitan when pitch- glasses’, it said at one point. Not surprisingly, the
ing for the Adidas account. They had already been agency lost the pitch.
told by Adidas that the account was as good as
theirs as long as they didn’t $%&* up the pitch.
They did. You can read an extract of the full detailed
and honest account of it, mistake by mistake, at Pitches, like presentations for major campaigns, are
http://prsmith.org/blog/. An extract is also printed
now an ongoing process where effort is concen-
here with the kind permission of Peter Levitan, of trated on developing a relationship (relationship
Peter Levitan & Co: marketing) with the client before the final presenta-
‘A few weeks after that meeting, Maurice (Saatchi) tion. This can sometimes involve client exposure to
told me that we were going to pitch the global the strategy and even the advertisements before
Adidas account. Huge brand, global business, D-Day. One UK agency, Howell Henry Chaldecott
cool category, big budget, powerful competition Lury, has tried to appropriate this process on its
and potentially great creative. Not much more own with what it calls ‘tissue groups’, ie a series of
for an agency to wish for... A couple of days later, build-up meetings with the client. In the United
Maurice and the reclusive Charles Saatchi and I States the most notable exponent, Chiat Day, has
met with Robert Louis Dreyfus, Adidas’ new CEO been doing this for a long time. Without doubt there
and majority owner to discuss the pitch. Get this: is a cultural shift to ongoing pitches rather than a
Robert was a good man and close friend of the big finale.
agency. Close? He had been the CEO of Saatchi
& Saatchi Advertising Worldwide. He was one
of us... I am working with Maurice and Charles Post-pitch agency’s agonizing wait
Saatchi – the most famous advertising men in Post-pitch tension is agonizing. Awaiting the out-
the world. They asked me to run a huge pitch come of a pitch is a tense and worrying time. When
for the global Adidas account. Adidas’ CEO is a the phone eventually rings and it turns out to be the
close friend of the agency and the management prospect, everyone holds their breath. Rejection
of Adidas America wants us... But wait, there’s means total failure. All the brilliant ideas, the care-
even more good news. During an early meeting, ful research, the buzz of excitement, the long
Robert leans over to me and says: “Peter, you’ve
hours – all down the drain. Selection means total
won this business as long as you don’t $%&* up
success. The post-pitch wait makes the mind wan-
the pitch.”’
der. Were there any clues as to what the client
The pitch, however, flopped. A video opening with thought of the pitch? Len Weinreich, advertising
scenes of baby seals being beaten to death as a way guru, had an almost unbearable wait in ‘No news is
of demonstrating man’s inhumanity to man con- bad news’ (see Figure 7.4, p 229).
trasted with the big idea: ‘the glory of sports’, just Occasionally the prospect client actually helps
didn’t work. Compounded by a lack of rehearsals, the agency by giving feedback that identifies where
big egos, no leader/manager, no control, no budgets, the client saw a real weakness. The agency can then
no real understanding of the clients’ challenges and eradicate the weakness before the next pitch.
opportunities, loose creative brief and the pitch Similarly, a successful agency will be interested to
team roles based on seniority (not expertise), the find out why it was chosen, so that it can capitalize
pitch failed. on its strengths.
 226 Part One | Communications Background and Theories

Analysing the agency 10 What will it charge? And on what basis?

How much time will it spend on the
As Nigel Bogle, CEO of Bartle Bogle Hegarty, says: account?
‘The key questions today are less about an agency’s 11 How does it allocate resources in the
ability to execute brilliantly and more about vision- planning, testing and evaluation process?
ary strategic thinking, razor-sharp positioning, pin-
point targeting and ingenious media solutions.’ 12 Does it display cost-consciousness?
The order of importance of the following ques- 13 How is my ‘investment’ going to be
tions can vary, depending on what the prospective returned? (This should feature prominently
client really wants. Some clients may consider the in the agency’s pitch.)
agency’s location and car parking facilities rele- 14 How will it measure its effectiveness?
vant, whereas other clients would discount this as High-performing agencies measure their
trivial and irrelevant to good advertising. Here are results constantly – do this agency?
two dozen questions that will help you to get deep 15 Is the agency agile – can they adapt quickly
down inside the agency you are considering work- if results not coming in? Can they make
ing with: changes in real time?
1 Does the agency really have a feel for my 16 Are we a small fish in a big pond? Is it too
product and market? Does it really small or too big for us? Do we have contact
understand my brand’s situation and with the principal partners? Will it fire us if
potential? a competitor offers it a bigger account
2 Have they got a great solution to the (should we insist on a five-year contract)?
problem/challenge/issue? 17 Does it have a good track record? Do clients
3 Does the agency understand and use Big stick with it and place repeat business with
Data, AI, IoT, AR, VR, marketing the agency? If not, why not?
automation, chatbots? 18 How much experience does the agency have
4 Has it got creative flair? Does it win awards? in marketing integration (particularly with
Does it suggest new ideas? the tech stack)?
5 Has it got strong research and planning 19 What is the agency process (not just a bunch
capability? of arrows in a fancy PowerPoint slide)?
6 Does it know the best media to use? Will its How does it intend to allocate resources
media-buying skills make my budget go (time and people) to particular aspects of
further? the campaign, including planning, concept
development, testing and evaluation, etc?
7 Who will work on our account? Will the This helps in making interesting
pitch team be involved? Are the people who comparisons with other agencies. How
worked on the case histories still with the much time will it devote to your account?
agency? How stable will our account team
be? Are we likely to get on together 20 What is the agency’s ‘purpose’ beyond
(chemistry)? making money? Ask what feedback comes
from their staff and client exit interviews.
8 Is it full-service, or does everything get Ask do they have a learning and
subcontracted out? How much integration development plan for staff – what does it
experience with above-, through- and look like? How many days training per staff
below-the-line as well as online does it have? member per annum? Do not allow soft
9 Is it international? Can its headquarters force answers such as ‘Our people are our best
it to resign the account should it decide to asset.’ Really? Prove it.
seek business in the same industry overseas? 21 Is the agency GDPR compliant if any
Alternatively, can it take on a lot of our campaigns integrate with data collection?
coordination work through its own Note the research agency will be the data
international management network? controller or joint data controller.
 7 | Marketing Communications Agencies 227

22 What are the agency client retention rates? consolidate, curate and refine their digital
23 Check the agency’s references. References experience specific platforms, applications
from past clients must also be requested. and systems?
24 Check whether the agency care for 4 Predictive: Display and other targeting
their staff (and do their staff leave or platforms have become more and more
stay) – how do they avoid staff burnout accurate and predictive of targeting intent,
and deal with mental health, the gender the stage of consumers on specific journey
pay gap, diversity, parental leave and the paths and propensity of conversion. AI and
#timeTo campaign against sexual machine learning platforms will increase
harassment? effectiveness over time.
5 Adaptive: Creative messaging and cross-
device delivery improvement are increasingly
The pitch is never over: Cars have ears driving better results. Multivariate testing on
site destinations and dynamic creative
platforms – literal manifestations of
After making a good pitch, a well-known agency
adaptation – will continue to improve.
kindly offered a chauffeur-driven car to take the
clients to the next agency on the pitch list. During 6 The speed of delivery of digital content and
the journey, the client team analysed the previous the ability of brand destinations to adapt to
pitch and commented that the media strategy user devices, connections, locations and
modes of communication will become an
appeared ‘off-brief’. The next day the agency found
increasingly important aspect of campaign
a way of representing the media strategy – and it
optimization.
won the business. The limo driver was an account
man at the agency. Ethical or not, it’s reality. 7 Transparent and credible: Publishers,
platforms and app experience will
increasingly refine their delivery to provide
credible, relevant and quality content and
If you want to drill down a bit deeper, here are an- experiences to users.
other seven slightly more technical topics for dis-
cussion with potential clients – from Brent Trimble
(2017). Choosing an agency
1 Spatial: Localization, geographic precision The assessment form shown in Figure 7.3 can be
and targeting… connecting product, weighted and scored as appropriate for each client’s
service, platform, description and metadata needs. A rating scale of 1–6 can be used. Agencies
with geography, device, location and should be assessed using the same criteria. Few
experience will be imperative for products agencies perform so outstandingly that they remove
and brands. all doubt in the client’s mind as to which agency it
2 Platforms vs impressions: Platforms such as should choose. The criteria should be agreed in ad-
Google, Microsoft, Facebook, Amazon and vance by the team involved in the selection process.
Apple will continue to dominate both The assessment form shows one approach that at-
monetized ad inventory (such as AdWords, tempts to formalize the selection by using consist-
Facebook Advertising, Bing) as well as ent criteria. Each company obviously tailors its own
experience (Apple iTunes) and utility approach.
(Google, Apple app marketplaces) and Some agencies add a little extra hook, sometimes
commerce (Amazon, Google Shopping) . proprietary applications, widgets or iApps, data
analytics or AI.
3 Drive audiences that are rapidly changing: The client must eventually tell the unlucky agen-
How can you drive audiences, particularly in cies they have not been chosen. Rejected agencies
a dynamic where consumers visit few will ask for feedback about their pitch. Professional
independent domains each year, and clients will have kept their evaluation scores and
 228
F IGURE 7. 3 Choosing an agency – an assessment form

AGENCY Understand Commit- Research, Data Media Creative Size, International Location Fee/cost Will we Opinion
our product ment to our planning & analytics, planning in-house get on? of
and project? strategic AI, IoT, and resources, existing
company? thinking AR, VR buying full service clients
including including
digital digital

SOURCE: Courtesy of IH Digital

 7 | Marketing Communications Agencies 229

F IG U R E 7.4 When no news is bad news – waiting to hear

will take time to either share these or write a brief

feedback explaining what the agency needs to
Ongoing agency–client
improve on. The rejected agency’s managing direc- relationships
tor then has the difficult job of picking up the shat-
tered team and building up the agency morale Having gone through the rigorous and sometimes
again. exhausting process of choosing an agency, it is im-
As managing directors are never told that their portant to maintain a good working relationship.
pitches are terrible and come last, having always You do not want to split up after 6 or 12 months
been narrowly beaten into second place, there is a and have to waste all those resources searching for
plea from the advertising industry to clients that another agency. That is bad management. Senior
they should tell it like it really is! management takes a poor view when they see a
 230 Part One | Communications Background and Theories

­ articular manager going through regular agency

p ●● Keep briefs short and unambiguous.
recruitment processes. Questions start to be asked.
●● Communications – regular reviews help to plug
More importantly you have to get on and deliver
any gaps in performance, whether creative,
results and not be distracted by major partner selec-
tion processes. You have to be able to manage rela- strategic or personal.
tionships when you work with an agency. ●● Write an occasional thank-you note to the team.
●● Trust the agency team (share research and
Agency relationship and pressure information with them, and involve them).
●● Share the problems/challenges but also share
The BBC’s Chief Customer Officer, Kerris Bright, said:
the celebrations when results are achieved.
‘Creativity does not come out of the wrong type
●● Make them become part of the marketing team.
of pressure and stress. There’s a pressure
Use their expertise.
that’s got an optimism and a positivity, a trust
and a belief in it, so I absolutely believe in ●● Ask relevant questions. Listen carefully to the
pressure, but I think you have to show answers. Do not be intimidated by strong
confidence and trust. You have to create a agency characters. All propositions should be
sense of positivity and feel like you are in a justifiable. The final decision is the client’s.
collective endeavour.’
Bright also believes that agencies
sometimes fail to appreciate the pressures
brand side marketers are under within their own
organizations. However, if they can turn these
Onboarding
pressures to their advantage this can be a great Onboarding is the process of welcoming or introduc-
strategy for future success. “One thing I try to ing a customer or a client to an organization, usually.
do, because I’ve seen the impact of getting it However, clients/brand owners also like to get the
right and wrong, is think about how you exert agencies on board quickly so they can build a strong
the right positive pressure,” Bright explained.’ team. Regardless of who instigates it both parties
Rogers (2019) need to meet each other’s teams, clarify expectations,
understand each other’s modus operandi, establish
some ground rules and build an integrated team that
is motivated to deliver great results. Onboarding in-
How to ensure good agency relationships cludes getting to know each other, answering any
questions or concerns and setting common goals.
●● Invest in ‘onboarding’ – introducing the agency Not having a good onboarding process can be
team to the client team, getting them working one of the costliest mistakes you can make when
together as a team. working closely with a new team. Onboarding
includes everything from the initial welcome email,
●● Be very clear about remuneration – fees, letter, phone call or personal visit to clarifying the
commissions, mark-ups, time, expenses and scope of work plan, the subsequent modus operandi
method of billing – in writing. Remember, it is including frequency of reviews (formal and infor-
better to argue over a quote than an invoice. mal). Establishing common goals is important to
●● Explain to the agency who makes what build a team. Increasingly, teams are agile whether
decisions, ie who has authority for which
they use Scrum, Waterfall, Kanban or some other
approach. The preferred comms channel (eg Slack,
decisions.
Skype, Google Hangouts, etc) and access to shared
●● Sign or approve in writing each stage from brief files (including brand guidelines and logos, images,
to concepts – finished artwork, running proofs videos) and other content files must be established
and so on. early on. In fact, it is not uncommon to see agency
staff move into and work from clients’ offices.
 7 | Marketing Communications Agencies 231

A stable relationship builds a real team, since the

agency gets to know the client, the team, the com- Draining the joy and motivation
pany and the market inside out. In addition, the cli-
ent does not have to worry about unfriendly ‘Could you do more to avoid draining the joy and
discarded agencies that have previously had access motivation from the very people [agency people]
to sensitive information. whose productivity your career depends on?
Companies like P&G, Coca-Cola, Unilever, Whether it’s an occasional crappy briefing or
Nestlé and others are deemed to be the best-in-class unreasonable last-minute request.... Be part of
brands when it comes to integrated marketing com- an honest conversation.’
munications. ‘All of the top players have their agen- Bonn (2018)
cies evaluate them. Some even have their agencies
evaluate each other. But all of them have built in a
continuous learning loop to keep driving in­novation
and integration and keep asking “what’s next?”’ Unhappy clients and unhappy
(R3, 2015). agencies
It seems as if many relationships between clients and
Unilever stops paying for slow work agencies are not great. According to research by the
World Federation of Advertisers, ‘clients give their
and integrates communications via current agency roster set-up a score of just 5.7 out of
multi-discipline, better-trained 10, where 10 is fit for purpose. Agencies themselves
integrated digital teams believe the situation is even worse, with current ar-
rangements given a score of 5.2’ (Vizard, 2018).
‘Unilever is often identified as a thought leader in Issues such as media transparency, revenue transpar-
integrated marketing communications. Starting with ency, ad fraud (click fraud) and influencer fraud
the business objectives for the brand and remaining (fake followers) are making clients anxious. Vizard
agnostic to the channels used to deliver the big continues by suggesting that there may be a trend
ideas, Unilever takes a consistently unified approach towards more clients developing their own in-house
that is enabled by multi-disciplined teams and the teams (‘in-housing’) – whether it is specializing in
environment of collaboration promoted among all data science, programmatic advertising, marketing
Unilever brands. As a part of its “Crafting Brands for content or whole creative departments (primarily for
Life” strategy, Unilever seeks to strike a healthy content), as clients are unhappy with their agencies’:
balance between magic and logic – or in other ●● lack of transparent billing model;
words, creativity and sales. Unilever also doubled its ●● lack of expertise for new communications
spend on marketing training to keep up with the channels (inexperienced staff);
ever-changing digital landscape and build a stronger
●● pitching process is too expensive/time
team that goes beyond sole marketing skills.
consuming.
From 2014 onwards, R3 has been consulting with the
global Unilever team on Agency Integration,
Management and Compensation. While this Agencies have got away with murder
assignment is still confidential, the approach is to
reward agency partners on outcomes, not on inputs. Nick Bennett, Honda UK’s Digital Content and
In a world where, under a fee structure, agencies Social Media Manager, suggests:
are paid more based on the slowness of their work
(more hours), Unilever is seeking a new path that will ‘“For too long, agencies have got away
truly enable stronger alignment between their goals with murder. They have basically
and the agency’s ideas.’ outlined what’s successful based on
R3 (2015) metrics that work for them but don’t
necessarily constitute what’s happening in the
 232 Part One | Communications Background and Theories

Insufficient planning was cited as a reason

real world.” Bennett, who joined Honda two behind the fiasco.
years ago after spending 13 years agency
3 Client is unsettled over too many changes at
side, thinks the traditional agency model will
agency: Foote Cone and Belding lost £22
“crumble” in the next 10 years.’
million worth of business – including Heinz
Hammet (2018)
and Cadbury – because of management
upheaval.
4 Client unhappy over excess negative publicity
surrounding its agency: IBM is uncomfortable
Firing the agency over the widely reported lawsuits involving
A Campaign magazine survey identified the follow- its agency and breakaway Lord Einstein
ing reasons for sacking an agency (in order of im- O’Neill and Partners. Could result in IBM
portance to the client): choosing neither and picking a new shop.
5 Takeover of agency infuriates client:
●● receiving no fresh input;
Goodyear, Philips, Pilsbury said goodbye to
●● account conflict at the agency; JWT after it was taken over by WPP. Most
●● a new marketing director arriving; cite ‘disruption’ as a reason for leaving.
●● a change of client’s policy; 6 Client rationalizes its agency roster: Toyota
●● other accounts leaving the agency. chose its dealer agency Brunnings over its
main agency Lintas London after a creative
A derivative of the second point, conflict of interests, shoot-out. British Telecom reviewed its entire
arises with mergers and acquisitions. After acquiring account and picked three main agencies –
Gillette for $57 billion, P&G sacked Gillette’s agency, BBH, Abbott Mead and JWT.
Mindshare (part of the WPP Group). Gillette ex-
7 Total breakdown in agency–client
plained that it was removing its $800 million global
relationship: GGT resigns the Daily Express
media planning and buying business. Mindshare al-
after repeated clashes and an inability to
ready worked for Unilever, P&G’s arch-rival (WARC,
work with title’s marketing staff.
2005c).
In the international arena, business relationships 8 Agency fails to come to terms with account:
(including agency relationships) are even more deli- BMP got sacked by Comet, its first major retail
cate, as WPP discovered when it was fired by China’s client. Former vice-chairman Paul Leeves said
largest advertising conglomerate (Citic and its Beijing BMP won the business ‘one year too soon’.
Guoan Advertising arm). Citic’s Vice-­Chairman, Yan 9 Lack of solution creatively: Abbot Mead
Gang, claimed that WPP’s CEO, Sir Martin Sorrell, couldn’t crack the Daily Telegraph. Later the
had treated him ‘very rudely’ during an April meet- agency admitted to producing tasteless series
ing in London to discuss management problems at of press ads that aroused the ire of women,
the joint venture (WARC, 2006). among others.
Although over 25 years old, Campaign maga- 10 New client arrives: Allen Brady & Marsh’s
zine’s ‘13 ways to be a loser’ article identifies many long-standing Milk account was reviewed
recurring reasons why agencies still get fired: after new NDC chief Richard Pears joined.
1 Control of brand’s advertising switches to 11 Agency can’t master the client’s politics:
rival of client: Gold Greenlees Trott lost JWT lost British Rail. Agency was allied to
Fosters when Elders IXL and its Courage the central advertising body while the
division took over control of marketing chairman, Bob Reid, was committed to
Fosters from Watneys, a GGT client. devolution. Network SouthEast chief Chris
2 Agency produces irrelevant or inappropriate Green was not keen on JWT after it
advertising: Lowe Howard-Spink lost some produced two poor ads, one of which put it
of its prized Mobil account after its in legal hot water with the Monty Python
‘breakthrough’ Dan Dare campaign failed. people.
 7 | Marketing Communications Agencies 233

12 Agency merges with another, producing allegedly responding to the anger of O&M North
conflict and massive disruption: difficulties America’s co-president Bill Gray at the loss of
surrounding the merger of Reeves anticipated income. Gray was not among the
Robertshaw Needham and Doyle Dane accused. Early got a 14-month prison sentence
Bernbach resulted in massive client fall-out. and $10,000 fine. Seifert got an 18-month prison
13 Client is the subject of a merger or takeover: sentence and $125,000 fine (she was also
Fast becoming a major reason for account ordered to write a code of advertising industry
moves. ethics). O&M extricated itself (but not its
employees) from the affair with a $1.8 million
Reproduced by kind permission of Haymarket ­Mar­
keting Publications Limited and Laurie Ludwick settlement in 2002.’
WARC (2005b)

Firing the client

Agencies sometimes resign accounts, particularly if
a larger competing account is offered to them.
Occasionally, they are obliged to resign if an agency Agency issues
takeover or merger brings in some competing ac-
counts and thereby creates a conflict of interest. Rapid change means markets are changing, and so
New demands by a client sometimes become so dif- too agency structures must change. Amidst this 4th
ficult that the account becomes unprofitable or, as Industrial Revolution everything is changing for
in the case of ABM, a reduced commission is con- agencies. In-housing, low levels of client (and
sidered unsatisfactory. agency) satisfaction, not to mention data science,
AI, IoT, VR, AR, MA and the constantly changing
(and soon fully integrating tech stacks). It seems IoT
Arrogance and egos could bring a whole range of new partners into play.
Partners that can carry messages and conversations
Some years ago, a continually critical senior mar- via home and office accessories. Equally, chatbots
keting manager commented at the end of yet an- (see Chapter 5) and messaging combined with per-
other long, unsatisfactory meeting, ‘If this were my sonalization means a whole new world is opening
company [which it wasn’t; he was an employee], I up for agencies, particularly as the platform compa-
would fire the agency.’ The long-suffering creative nies hover and consider which industry is ripest for
director responded, ‘If this were my agency, which it their entry. As they sit on their data mountains, the
is, I would fire the client, which I am.’ He left the BAT Boys and the FANGs seem well positioned to
room, with the marketing manager knowing he become powerful partners in the new world of
now had to face colleagues and break the news that agencies of the future. Clients today are ‘dividing
there was no campaign ready to roll out, no agency, their brand building affections across consulting
and an agonizing new pitch process required. firms, digital platforms and publishers as well as ex-
ploring the potent opportunity of doing the whole
thing in-house’ (Ritson, 2018).
How to upset the client and get sent to
jail – overcharge them
In-housing
‘Thomas Early (former senior partner and
Some brands feel that content marketing is such a
finance director) and Shona Seifert (former major part of their communications that they want
president) at Ogilvy & Mather (O&M) New York to bring this function back in-house, rather than
were both reported by WARC to have been subcontract to an agency. Honda UK are taking
found guilty in 2005 of fraudulently overbilling content creation in-house. Other brands now want
the White House Office of National Drug Control to deliver their in-house programmatic advertising
Policy in 1999 and 2000. The guilty pair were (media buying). Lego and Spotify are building inter-
nal creative teams for advertising.
 234 Part One | Communications Background and Theories

house for certain people – are basically identical in

New competitors scope, service and positioning.
Agencies are under pressure from activist investors, Ritson (2018)
new competitors, and a trend towards setting up in-
Almost one third of agency staff leave each year.
house departments. Plus professional services firms
The IPA Agency Census 2017 reveals annual staff
(the big consultancies) are taking a slice of the strat-
turnover of agencies at 32 per cent in 2017 (and
egy and digital transformation end of spend.
29.4 per cent in 2016). Albeit not necessarily senior
‘The digital duopoly of Facebook and Google are
agency stars, but nevertheless how does that affect
able to reach brands directly without the need for
your brand when middle and lower rank agency
an agency middleman’ (Marketing Week Reporters,
staff are leaving your account to work with another
2018). See ‘FANG are coming to get you’ (http://
agency perhaps? Turning over?
prsmith.org/blog/).
And on top of all that, we have issues such as
media transparency, ad fraud (click fraud) and Agency consolidation
influencer fraud (fake followers) (Marketing Week
Reporters, 2018) as well as artificial influencers (see ‘When private labels from Tesco and Sainsbury
Chapter 5) and audiences with shorter attention began to make significant inroads into the
spans, less time and little tolerance for anything not supermarket categories of the 90s the big FMCG
immediately relevant. firms like Procter & Gamble and Unilever did a
very smart thing. They closed down their number
three, four and five brands and focused their
Lack of agency differentiation resources on the number one and two brands in
a category, which could not only defend their turf
Ask agency people over a beer what enabled one
firm to win a big account versus other agencies against Tesco Value but actually prosper in that
and most will revert back to the ‘back bench’ of new competitive context. In the same way, WPP
five or six star people in each country who could now hopes a smaller cadre of agencies with
offer the most impressive vision of strategy, media more horsepower will win the day against
and creative to the client team. The brand of the Accenture, Google and an in-house team of 300
firm comes a distinct second to the talent, almost down the road.’
as if the agencies themselves – other than as a Ritson (2018)

Summary and conclusion

So changing times for agencies both now and in the bots, messaging, personalized videos) with all other
future. One thing is for sure, agencies will want to customer touchpoints so that their clients and their
be both creative and analytical (with good data sci- brands will be able to deliver one seamless CX,
ence and AI skills). Agencies will also have to be able which ultimately boosts the clients results. Happy
to integrate data generated by their customer touch- clients equals happy agencies.
points with other customer ­touchpoints (whether
 7 | Marketing Communications Agencies 235

Key points from Chapter 7

●● Clear communications between client and services; they can become strategic partners of
agency are important if the right messages are the client.
going to be successfully communicated to target ●● Careful selection is crucial to ensure the
audiences. development of a mutually beneficial long-term
●● Agencies, consultancies and consultants can relationship.
become more than just suppliers of marketing

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November

Further information

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 7 | Marketing Communications Agencies 237

Incorporated Society of British Advertisers Institute of Practitioners in Advertising (IPA)

ISBA 44 Belgrave Square
12 Henrietta Street London SW1X 8QS
London WC2E 8LH Tel: +44 (0)20 7235 7020
Tel: +44(0)20 7291 9020 Fax: +44 (0)20 7245 9904
www.isba.org.uk www.ipa.co.uk
 238

08
International
marketing
communications
LEARNING OBJECTIVES
By the end of this chapter you will be able to:
●● understand the globalization of markets and the international opportunities arising;
●● list and explore the international challenges arising in international markets;
●● avoid the classic errors in international markets;
●● discuss the strategic global options available to marketers interested in growing on
a global scale.

The globalization of markets 239 Payment 250

The growing global opportunity 239 Legal restrictions 250
Three global marketing success stories 239 Competition 250
Respecting global complexity/cultural
idiosyncrasies 240 International mistakes 251
Touching a global nerve 241 Wrong names 251
Forces driving globalization 242 Wrong strapline 251
The elite global players 242 Wrong product 252
Below-the-surface similarities 242
Below-the-surface external differences 243
Strategic global options 252
Global marketing strategy 253
Below-the-surface internal differences 243
Global advertising strategy 253
International difficulties 244 Four global advertising strategies 254
Language 244 Decentralized strategy 257
Literacy 246 Whichever strategy, smarter process, roles and
Tone 246 accountabilities are required 258
Sharing time: Social media 247 Influencer marketing 258
Motivation 247
Different information needs 247
Agencies in the international arena 258
Choosing a centralized international agency or
Colour 247
independent local agencies 259
Design 248
Get the resources required for international growth 260
Form filling and privacy 248
Gestures 248 In conclusion 260
Culture 248
Devices 249 Key points from Chapter 8 261
Media 249
Different cost structures 250 References and further reading 261
 8 | International Marketing Communications 239

China alone presents a vast opportunity, but one

The globalization of markets that needs careful attention, understanding, plan-
ning and long-term commitment.
This chapter examines opportunities and the diffi- Global markets are here. Al Jazeera’s English-
culties, strategic options and actual implications for language TV news service has a 100 million audience
implementation of international marketing commu- worldwide. BBC World Service does what it says on
nications, in particular global communications. the tin. Football clubs have global fans; Barcelona FC
have 83 million fans on Facebook alone, while
Manchester United Football Club have 64 million
The growing global opportunity Facebook fans; recently it has been claimed they have
Airbnb, Red Bull and Coca-Cola are just three of the 659 million fans around the world (www.kantar.
many brands that have seized the global opportunity com), although this is disputed by the BBC (Prior,
(more on them later). Meanwhile, just look around 2013). Since media follow markets, media consump-
you. Yogurt, pizza, spaghetti, rice, kebabs, Indian tion is going global; therefore marketers must remem-
cuisine, Chinese meals, Mexican food, Japanese ber that brands with international ambitions must
sushi and American burgers are popular and now have a consistent global image – production should be
available in most cities across the world. Not too international in mind, and content rights should be
long ago they were considered sophisticated luxu- global (Chaffey and Smith, 2008).
ries. The Rolling Stones and Shakespeare also have a
global appeal. Coincidentally, there are more people
learning English in China than speak it in the United Three global marketing success
States. stories
Thirty years ago, back in 1985, the global village
emerged when 1.9 billion people from different time Red Bull
zones across the world simultaneously watched, and
Red Bull created a new global position and use word
donated funds to Live Aid, the charity concert for
of mouth rather than mass media. They saw a gap in
Ethiopian famine relief. And so we continue to con-
the market and positioned/created a new category of
nect and communicate more easily with free
non-soda energy drinks aimed at burned-out high-
WhatsApp calls and video sharing as well as Skype
school and college students. Red Bull’s international
video conference calls. The London to Brussels train
event marketing strategy (hosting extreme sports
is quicker than the London to Newcastle train.
events all over the world), supported by excellent
However, be forewarned: clichés like ‘The world is
content and free local experiential marketing mobi-
getting smaller’ oversimplify this growing global
lizing influencer advocates, combined with its dis-
opportunity but remember it is one that is still
tinctive and consistent unique packaging style has
wrapped in cultural complexity.
helped them to become an identifiable global ‘anti-
Some say that human beings have more things
brand’ (doing it their way). This Austrian company
that bind them together than separate them; others
does such a great job with global marketing that
argue that market differences are greater than mar-
many Americans assume it’s a local brand.
ket similarities. There are, in fact, what the Young &
Their extreme sports events all over the world
Rubicam creative agency called ‘cross-cultural con-
include the Red Bull Indianapolis Grand Prix, the
sumer characteristics’. These identify the common
Red Bull Air Race in the UK, the Red Bull Soapbox
ground. The person living in a smart apartment
Race in Jordan, not to mention the Bull Stratos
block in London’s Knightsbridge probably has more
‘mission to the edge of space’ – a supersonic freefall
in common with his or her counterpart living in a
parachute jump.
smart apartment block off New York’s Central Park
Harvard Professor Nancy Koehn said: ‘Red Bull
than with someone living in a drab south London
really looks like a product from a global economy. It
suburb. There are indeed some common denomina-
doesn’t look like a traditional American soft drink –
tors and some common sets of needs and aspirations
it’s not in a 12-ounce can, it’s not sold in a bottle, and
that can be identified, particularly in similarities of
it doesn’t have script lettering like Pepsi or Coke.
lifestyle.
 240 Part One | Communications Background and Theories

It looks European. That matters’ (Rodgers, 2001) See Respecting global complexity/
more on p 574.
cultural idiosyncrasies
Airbnb The total global concept suggests that the big global
Airbnb has grown into a disruptive global brand. marketing players can accelerate the globalization
They celebrate this with an extraordinary ‘global, process by transcending cultural boundaries and
social experiment’ driven by social media around bringing their messages, goods, services and tradi-
the hashtag #OneLessStranger. Airbnb ask their tions to the markets they choose.
community to perform random acts of hospitality There are some cultural norms that suggest that
for strangers, and then take a video or photo with total globalization will not happen in every market,
the person and share it using the hashtag. everywhere, at least not in the next few generations.
San Francisco’s Airbnb started in 2008 and is now Thank goodness for that. Here are a few interesting
a global community marketplace for people to rent cultural idiosyncrasies.
and reserve accommodation just about anywhere in The Barusho Bride
the world. Just three weeks after the launch of what Lailan Young (1987) reported that the Barusho
was a global social experiment, Airbnb had over bride in the Himalayas has a tough time on her
three million people across the world highly engaged wedding night, as she has to share the bridal
(creating content), and, of course, talking about it. bed with her mother-in-law until the marriage is
consummated.
Coca-Cola Post-natal male exhaustion in Kerala
Think global – act local community. Coca-Cola has In the southern Indian state of Kerala, Puyala
worked hard to become a global brand. Whether it women return to the fields to tend the crops
is in the burning desert heat or the frozen snowy after the birth of their babies, while the
mountain tops, Coca-Cola take great pride in get- husband goes to bed. The rest of the family
ting their brand into the hands of customers any- ministers to his needs until he recovers. In the
where, even if delivered by camel, husky or a special Andaman Islands, especially anxious husbands
weightless Coca-Cola can for astronauts in space. will stay in bed for anything up to six months
Although it is a large global brand selling emotion (Young, 1987).
(with a central global theme of ‘happiness’), it acts Women dominate men – Minaros
local with small-scale local community relations The lost kingdom of the Minaros was
programmes. For example, in Egypt, Coca-Cola ‘discovered’ in a mountain hideaway 16,000
built clean water installations in the rural village of feet up in the Himalayas by a French
Beni Suef. It sponsors Ramadan meals for children explorer in 1984. The Amazon-like women
across the Middle East. In India, the brand sponsors totally dominate their men, marrying several
the Support My School initiative to improve facili- at a time and keeping them in line by brute
ties at local schools. force.
Conspicuous consumption, extreme rivalry –
Kwakiutl
Global marketplace: Prepare for
The former Kwakiutl of Vancouver Island
new markets and new competitors: demonstrated what is almost a parody of
BAT Boys vs FANG industrial civilization: the chief motive of this
tribe was rivalry, which was not concerned with
Will BAT (Baidu, Alibaba and Tencent), three the usual issues of providing for a family or
massive Chinese platform companies, compete owning goods, but rather aimed to outdo and
directly with FANG (Facebook, Amazon, Netflix and shame neighbours and rivals by means of
Google) and others like Apple? Baidu have hinted conspicuous consumption. At their potlatch
that there is no rush and that they target carefully, ceremonies the people competed with each
country by country. other in burning and destroying their valuable
possessions and money.
 8 | International Marketing Communications 241

No mercy from the Dobu It is common in such dancing for the front of
The Dobu of north-west Melanesia is reported the bodies to be in constant contact – and they
to encourage malignant hatred and animosity. do this in public. In spite of the close physical
Treacherous conduct unmitigated by any touching involved in this type of dancing (a
concept of mercy or kindness and directed form of bodily contact not unlike that assumed
against neighbours and friends is expected. in sexual intercourse), our society has defined
it as almost totally asexual. Although ballroom
Zuni shamed leaders dancing can involve high levels of intimacy, it is
The Zuni (a branch of the Pueblos of New equally possible that there is no sexual content
Mexico) are a people whose life is centred on whatsoever. Many adult men in the United States
religious ceremony, being prosperous but have danced in this fashion with their mothers,
without interest in economic advancement. their sisters, the wives of the ministers at church
They admire most those men who are friendly, socials without anyone raising an eyebrow. Yet
make no trouble and have no aspirations, many non-American cultures view this type of
detesting, on the other hand, those who wish to dancing as the height of promiscuity and bad taste.
become leaders. Hence tribal leaders have to be It is interesting to note that many of those non-
compelled by threats to accept their position Americans for whom our dancing is a source of
and are regarded with contempt and resentment embarrassment are the very people we consider to
once they have achieved it. be promiscuous, sex-crazed savages because their
women do not cover their breasts.
Even cultures that are relatively better known have Ferraro (2001)
their own intricacies over something as simple as
a handshake, eye contact and the use of colours. The international marketer embraces other cultures,
For example, brown and grey are disapproved of researching and respecting the local culture as being
in Nicaragua; white, purple and black are the col- right and proper and perhaps adopts Geertz’s (1983)
ours of death for Japan, Latin America and Britain insight:
­respectively. the world... does not divide into the pious and the
superstitious... there are sculptures in jungles and
paintings in deserts... political order is possible
without centralized power and principled justice
Understanding other cultures: without codified rules; the norms of reason were
The oppressed male not fixed in Greece, the evolution of morality not
consummated in England... We have, with no little
success, sought to keep the world off balance,
‘The Kagba women of North Colombia practise
pulling out rugs, upsetting tea tables, setting off
not only free love but free rape, and few men
fire crackers. It has been the office of others to
are safe.’ reassure; ours to unsettle.
Young (1987)

Touching a global nerve

Despite the complexities of cultural idiosyncrasies,
If this is deemed to be strange, consider how other there are many common needs that manifest them-
cultures might view the seemingly bizarre behaviour selves into common wants and purchasing patterns,
patterns of the tea-drinking, nose-blowing, ballroom- particularly where there are similar levels of eco-
dancing and kissing population of Europe. nomic wealth. It follows that, if a manufacturer or
The reader may be surprised to know of a tribe service supplier targets roughly the same socio-­
where it is not uncommon for the men of the tribe to demographic groups in different countries and
behave in a promiscuous manner with other men’s touches a common nerve within these target mar-
wives and daughters in public. It is so popular it is kets, then the same product or service can be pack-
even broadcast on their television networks. The aged and promoted in a uniform manner. The
country? The UK. The practice? Ballroom dancing. pricing and distribution may vary, but the branding,
Here is a description of this behaviour: packaging and even advertising can be the same.
 242 Part One | Communications Background and Theories

The manufacturers of world brands can therefore by pensioners. Now this ‘common nerve’ presents a
position their products in a similar manner in the positioning challenge. Despite these difficulties,
minds of millions across many different cultures. Coke, Airbnb, Red Bull, Apple, Facebook (just look
This is the result of careful analysis and planning by at the Top 50 or Top 100 brands in Chapter 2) have
expert marketing professionals rather than a trial- proved that large, lucrative global markets do exist.
and-error approach to market extension.

Forces driving globalization

Cannibalistic disease: kissing Globalization has emerged not because of a product-
orientated corporate sales push to find sales growth
‘A whole lot of people think kissing is not at all from international markets, but partly because of a
natural. It is not something that everybody does, market-orientated reaction to the emergence of com-
or would like to do. On the contrary, it is a mon global lifestyles and needs. These are emerging
deplorable habit, unnatural, unhygienic, as cheap travel combined with higher disposable in-
bordering on the nasty and even definitely comes, allowing travellers to leap across borders,
repulsive. When we come to look into the visit other cultures and return home with a little bit
matter, we shall find that there is a geographical
of that culture’s soul in their own. Television and so-
cial media have also contributed. The key to global
distribution of kissing; and if some enterprising
expansion, it seems, is to identify core benefits that
ethnologist were to prepare a “map of kissing”
are common to different cultures, along with any rel-
it would show a surprisingly large amount of
evant cultural idiosyncrasies
blank space. Most of the so-called primitive
races of mankind such as the New Zealanders
(Maoris), the Australian Aborigines, the Pauans, The elite global players
Tahitians, and other South Sea islanders, and
the Esquimaux of the frozen north, were The significant benefits derived from developing a
ignorant of kissing until they were taught the
global brand supported by a global communications
strategy are currently reserved for a relatively small
technique by the white men... The Chinese have
number of world-class globalized marketers. This
been wont to consider kissing as vulgar and all
elite band of players recognize the right conditions
too suggestive of cannibalism... the Japanese
and apply thorough research and planning to ex-
have no word for it in their vocabulary.’
ploit the brand’s assets on a global scale. However, it
Pike (1966) should be remembered that a single communications
strategy (incorporating everything from branding to
the complete range of communications tools) rarely
The next challenge lies in moving the rest of the com- works for all the players operating in international
munications mix in a uniform manner so that not markets. The desire to harness the global opportu-
just advertising and packaging but also sales promo- nity is natural, because international markets offer
tions, direct mail, sponsorship, etc, reap the benefits huge rewards. They also present intricate problems.
of a global approach. This globalization issue has Careful cultural homework needs to be included in
revealed itself through the increased use of the inter- the detailed research and planning that go below the
net. Even local firms going on to the net attract cus- surface.
tomers from all over the world. A web presence can
deliver a global presence. However, this does present
challenges, as Pepsi discovered, with its European Below-the-surface similarities
blue can being seen by its US customers, who much Similar buying behaviour and buying patterns do not
prefer the traditional red can. Similarly, Tia Maria, necessarily mean a perfect uniform market with
although it is consumed around the world, has differ- uniform needs, uniform communications channels,
­
ent age segments in different countries, eg in the UK uniform decision-making processes, uniform decision-
Tia Maria is about girl power, targeted at 18- to making units, or even uniform reasons for b ­ uying.
24-year-olds, while in the Netherlands it’s drunk neat Take the case of buying premium-priced water. In a
 8 | International Marketing Communications 243

Khartoum slum an impoverished family pays 20 times languages, retail trends, direct mail trends, sources of
the price paid by families with water main connec- information, time taken to make a decision, and so
tions, while half a world away a middle-class family on. Different marketing mixes and communication
buys bottles of mineral water. This demonstrates mixes are required for different European countries.
­‘unreal similarities’. The buyers appear to behave simi­ For example, in the Netherlands, dentists derive 40
larly by purchasing expensive water. They are, how- per cent of their turnover from the sale of products
ever, very different; in fact, they are from totally such as toothbrushes. In Germany, supermarkets are
dissimilar groups with different aspirations, motiva- expected to sell only cheap, utilitarian brushes, while
tions, lifestyles and attitudes, not to mention disposa- the pharmacies handle the premium brands. In Italy,
ble income. On the surface there is a market for private a premium brush has to carry a fashionable, exclu-
water in both countries, but the distribution channels, sive label. This makes any above-the-line (ad) cam-
communications channels, advertising messages and paigns difficult. The communications mix was built
levels of disposable income are poles apart. around direct mail to dentists supported by point-of-
An analysis that goes below the surface (or below sale and product literature, packaging design and
the sales results) will reveal a range of different sales presenters. Although these all change over time,
motives, aspirations, lifestyles and attitudes to the it underlines the necessity for detailed and thorough
same product. Surface information can create a research before entering any market.
false sense of simplicity. International markets can Check your web analytics. You may already have
also suggest surface solutions that ignore the cul- visitors and maybe even some customers in several
tural complexities and intricacies of distant interna- international markets. Use them to gather customer
tional markets. The late Sir John Harvey-Jones’ insights about why they visited (or bought). How
wise words – from his popular business TV series did they find you? Did they find whatever they
more than 30 years ago – still ring true today: needed from you? Who else did they consider? What
can you do to get them to buy from you? Once you
Operating in this milieu requires much greater
have collected this basic information, it may be
sensitivity to national differences than we are
accustomed to having. The mere fact that one worth geo-targeting any tests into this market.
stays in the same sort of hotel almost anywhere Find where (ie the cities) your brand (or product
in the world, that one arrives in the same sort of and service) is already known and being discussed
car, that it is now possible to call by telephone or in your target market. Use this insight to research
telex directly from almost anywhere in the world, your competitors in these international markets.
all gives a superficial feeling of sameness which is You can easily and quickly see what ads work for
desperately misleading and must never be taken them (using www.spyfu.com) what marketing con-
for granted. tent works for them (using www.alexa.com and
www.similarweb.com). Spyfu.com works really
Globalization, intertwined with cultural idiosyncra- well in the UK and USA. Analysis of competitor PPC
sies, is emerging in many markets around the world. ad campaigns elsewhere can use www.semrush.
The marketing maxim ‘Think global, act local’ re- com. Some companies sign up for their competi-
mains valid. Although the late great Professor tors’ newsletters.
Theodore Levitt’s ‘globalization of markets’ is oc-
casionally criticized by some academics, he was
right; globalization is happening and it does offer
huge rewards for those who seize the opportunity. Below-the-surface internal
differences
Below-the-surface external The marketer’s challenge goes beyond communicat-
ing with new international customers and into
differences working with international partners whose idiosyn-
There are, of course, many differences below the sur- crasies and languages pose many problems. To some,
face also. In practice, the European Union is splin- overcoming local customers’ idiosyncrasies may
tered by different levels of economic development seem relatively easy compared to overcoming local
(north and south), culture, attitudes and lifestyles, partners’ working practices. Whether local partners,
distributors, sales agents, or strategic partners, it is
 244 Part One | Communications Background and Theories

essential to understand and work with very different International intricacies that contribute towards
approaches to business. Take nomenclature for a the challenge of global marketing include:
moment. The French normally refer to advertising as
●● language;
publicité, which can cause some confusion, while the
Yugoslavian word for advertising is propaganda. ●● literacy;
Other cultures have difficulty translating ‘market- ●● tone;
ing’, ‘marketing communications’ and ‘advertising’, ●● timing;
as they have not created such words.
●● motivation;
●● different information needs;
Southern Europeans work to live and ●● colour;
northern Europeans live to work ●● design;
●● form filling and privacy;
‘Somewhere in the world there are people who
think the Germans are messy and unpunctual. ●● gestures;
(The chances are they are in Switzerland.) ●● culture;
There are countries where Greece is regarded ●● devices;
as a model of efficiency. There are countries in ●● media;
which French bosses would seem absurdly
●● different cost structures;
egalitarian and others where Italian company
life would seem oppressively regulated.’ ●● payment;
Mole (1998) ●● legal restrictions;
●● competition.

International difficulties Language

Language obviously requires careful translating,
Apart from the normal communication challenges – whether it is straplines, product descriptions or in-
different time zones and different languages – inter- structions (see ‘International mistakes’ on p 251).
national markets are also riddled with hidden There are exceptions to the rule (where the lan-
cultural differences that make global marketing an guage reflects beneficial cultural aspects of the
intriguing challenge even for the most experienced product, eg Audi’s Vorsprung durch Technik strap­
international marketer expert. Positioning on a line). And some brand names simply don’t work
global scale is not easy. In addition to language, lit- when used in foreign languages and thus restrict the
eracy, colour, gestures and culture, marketers have brand’s international growth potential or dilute the
to think how global audiences search for informa- brand’s presence through the need to have two
tion – what words and phrases they use. Even if you brand names.
do translate correctly, you probably have to rede- Beware of automatic translation, as it does not
sign your web pages, since many other non-English always work perfectly. For example, the word
languages require more words and therefore more ‘home’ is automatically translated into maison, the
space to deliver the same message. On top of all of French for ‘a home to live in’ (as opposed to ‘home
this, sometimes the local regional teams don’t share page’). In Italy, machine translation for the word
the same deep understanding of the home market’s ‘hi-fi’ generates a machine translation of ciao-fi.
approach. Great ideas can easily become incompre- Ciao means hi or hello. And even the most perfect
hensible once they cross cultural or language di- word-for-word translations often do not match the
vides. This lack of sharing a deep understanding of real meaning as different countries use completely
the brand doesn’t fill local teams with a real passion different words when online.
to embrace the project.
 8 | International Marketing Communications 245

in much the same way – with accounts, campaigns,

Swansea Council translation process ad groups and keywords), but there are also some
gone wrong big differences (eg Tuigang has six match types, re-
quires up-front payment for both account set-up
A sign that read ‘No entry for heavy goods vehicles. and the minimum advertising spend, and, once ap-
Residential site only’ was sent, by email, for plied for, an account can take weeks to set up owing
translation into Welsh. As the translator was not in to the paperwork required) (Paget, nd).
the office, an auto-response email was returned to
the sender saying: ‘Nid wyf yn y swyddfa ar hyn o
bryd. Anfonwch unrhyw wiath i’w gyfieithu’, which
Baidu requires time and money
means: ‘I am not in the office at the moment. Please
send any work to be translated.’ Since the original Baidu takes time to set up an account. It takes
message had two sentences, it was assumed the weeks, as opposed to hours or days. It has strict
Welsh message was the translation, and the sign data controls, content standards and other
was duly printed and erected. idiosyncrasies about content. So plan well ahead of
any launches and allow extra time (and knowledge
skills) required.

Search terms
A British white goods retailer launching in Germany Calls to action (CTA)
discovered that the common English term ‘slimline’
was simply never used. Instead, German consumers Requests for more information can vary dramati-
search for goods using precise measurements. A cally by country. The UK and United States prefer a
British sports retailer soon realized that Germans more direct approach, such as ‘Get quote’, while
will never search for ‘football kits’. They will only Australians are more likely to click on something
search for ‘football shirts’. These small nuances citing ‘Free’. The Chinese prefer a more respectful
make a big difference when it comes to an interna- ‘Request quote’. Eastern cultures tend to be more
tional search strategy. polite and formal.

Search engines Hybrid language

There are many markets where the digital media The term ‘cheap flights’ worked well in most mar-
landscape is not the same. In the UK and US Google kets, but it was almost completely ineffective in Italy.
reins supreme in search. In the Czech Republic it’s Consumers there often use hybrid Italian/English
Seznam, in Japan it’s Yahoo! Japan, and Bing still phrases, so ‘voli low cost’ is a far better fit.
holds a double-digit percentage share globally. It’s
the same across social media, with VK (Russia) and Same language, different words
Renren (China) being the dominant platforms, not Even the same language uses different words; for
Facebook, Twitter or Instagram. In ecommerce, the example, in the UK, PPC means ‘paid media’ yet
US and Europe shop at Amazon, India’s online mar- Americans call it SEM while some other countries
ketplaces include Snapdeal, Flipkart and Myntra call it SEA.
while Rakuten is the overwhelming favourite in
Japan (Paget, nd).
Same language, different spelling
Even when using the same language, spelling can
Search engines: Rules/payments/
differ; British and Americans might spell the same
timescales word differently, eg minimise/minimize or colour/
Each search engine has its own ad platform. There color. When marketing in these countries your mar-
are some distinct similarities with Google (eg Baidu’s keting communications must reflect (ie use) the pre-
PPC platform, called Tuigang, structures its account ferred spellings.
 246 Part One | Communications Background and Theories

directly back into English, Location Bateau means

Searching in one language for results boat rental. Search in google.co.uk for that term
in another language and the majority of what you see will relate to
canal boat holidays. It’s crucial to understand the
‘For example, the term “Hindi News” is used in market and the user intent behind the keywords
English to find websites written in Hindi. you’re going to target.
Technology is another core area where key Paget (nd)
terms from another language are often used to
find and talk about products and services.’ Hashtags
Oban Digital (2015) There may be many hashtags already being used
across countries, industries and areas of interest.
Before entering a market, you must research the
hashtags already being used by your target audience.
Language barriers can be expensive Check whether any of the existing hashtags overlap
with key phrases (potential hashtags) in your cam-
Even the same language can have different paign. You can then include these hashtags in your
meaning in different markets, eg a ‘boot’ refers to content and perhaps set up remarketing to target
the rear of a car (in the UK) as well as a shoe. In the people using those hashtags.
United States, the rear section of a car is called a Remember the two golden rules for hashtags:
‘trunk’. This is relatively minor, but how about
keep them short and make them memorable.
exactly the same word having radically different
business meanings? Take a trillion. In most Literacy
English-speaking countries, including the United
States and the UK, a trillion is 1 followed by 12 In many developing countries literacy is low
zeros: 1,000,000,000,000. (Dudley, 1989). This limits the amount of explana-
In most continental European countries, a trillion tion in advertising. Even with high literacy, the
is 1 followed by 18 zeros: 1,000,000,000,000,000,000. reading of translated Western-style advertisements
Be careful also with a billion, as it has different still causes problems, eg before-and-after tooth-
meanings – in most English-language countries a
paste advertisements if they are not adjusted for
Arabic readers, who read from right to left. In low-
billion is 1 followed by 9 zeros (a thousand million)
literacy countries, pictures may be used to explain
but in many other parts of the world it is 1 followed
the contents. When Gerber first sold baby food in
by 12 zeros (a million million).
Africa it put a picture of a baby on the label and
didn’t realize that, in Africa, companies routinely
put pictures on the label to show what’s inside, as
there is a high rate of illiteracy.
Words
The same words can have different meanings in dif-
ferent languages. Add to this subtle nuances such as Tone
date formats, localized spelling, local phrases and
Tone can be subtle. In mainland Europe and also in
even slang, and international communications be-
the United States, a luxury brand will approach its
comes challenging. For example, in the Australian
target audience online with bespoke, glossy, aspira-
travel market the term ‘lay by’ means to place a de-
tional communications – more like a brochure than
posit and is also often used for round-the-world
a transactional site. However, in China this may
flights, while (still speaking the same language) in
fail. Even for expensive purchases, and major high-
England it means a place where a truck or car can
profile brands, Chinese consumers prefer a no-
pull in off the road.
nonsense approach – they want to know how to
The most relevant term for The Moorings in buy and what the options are, with all the informa-
France is in fact Location Bateau. Translating that tion at their fingertips.
 8 | International Marketing Communications 247

Sharing time: Social media Google, Yahoo and Bing are not
A UK Premier League football club wanted to tar- as big as Baidu
get fans across India, Mexico, Thailand and the UK
with a social media campaign – four very different Yahoo and Bing are far more important in the
audiences. Research found that each wanted very United States than the UK, for instance, where
different content, and to consume and share it at Google overwhelmingly dominates. Baidu in China
very different times. For instance, Indians are less and Russia’s Yandex dominate their home markets,
likely to react to tweets or Facebook posts during with up to 75 per cent reach each, while Yahoo in
match-time itself and often for hours afterwards, Japan (now a separate entity) and Naver in Korea
while others are hugely reactive in the immediate are also important considerations.
aftermath of a game.

Email timing
Different information needs
Research reveals that sending emails early
morning works best in Germany (where 71 per Even though you have got international visitors on
cent of online activity before work is email), your website, you need to research their needs, as
whereas in the UK the evening can be better. Each they may be quite different to each other. A
product type varies – eg travel companies often Nordics-based cruise company discovered many
different nationalities visiting its site had a variety
find Mondays, rather than Fridays, are better.
of information needs. The Brits were very inter-
Paget (nd)
ested in the Northern Lights, while the dog-loving
Germans were far more interested in Husky-dog
sledging; the Americans, meanwhile, wanted infor-
mation on ‘activity sports’ while the French, with
Social networks differ
their own ski resorts, didn’t want any information
on Alpine sports.
People in China use Sina Weibo, an alternative to
Twitter, and Germans use Xing rather than LinkedIn.
Colour
Colour has a direct access to our emotions. Watch
Motivation how red is commonly used in advertising in the
West. Colour, however, does not have uniform
Motivation, or reason to buy the same product, can, meaning across the world. Asians associate red with
and often does, differ across different countries, as prosperity and good luck. Consider a financial ser-
Oban Digital (2015) explain: vices website: if Asians see no red, they will leave; if
In Germany, price and quality are the most Westerners see red, they might leave. Never wrap a
influential factors, while the Japanese most value a gift in red in Finland, as it is associated with Russian
high level of customer service. The Japanese concept aggression during the Second World War. Blue in
of Omotenashi, described as its unique approach Iran means i­ mmorality. White in Japan means death
to hospitality, is one reason why customer service (hence McDonald’s white-faced Ronald McDonald
is highly regarded. Kawaii, the concept of cuteness, has problems). Black means death, bad luck or mor-
is another differentiating factor in Japan. Kawaii bid in some countries. Websites designed with black
values innocence, beauty and fun and is used in backgrounds may be seen as ‘hip’ in the West, but
many areas you wouldn’t expect. Brands add can suffer lack of traffic from China and Hong
cuteness to their product set by associating it with Kong.
pastel colours and images of hearts, flowers, stars
and rainbows. Even construction guard rails are
infused with Kawaii elements!
 248 Part One | Communications Background and Theories

Google, Yahoo and Bing not enough in Gestures

China or Russia When greeting or bidding farewell, physical contact
beyond a handshake in South America, southern
‘Some marketers wanting to break into China Europe and many Arab countries is a sign of warmth
or Russia might mistakenly believe a reach of and friendship, but in Asia it can be considered an
around 25 per cent through Google, Yahoo and invasion of privacy. After a meal in Egypt it is con-
Bing might be a shortcut worth taking. Given sidered rude not to leave something on your plate,
the size of these markets, yes of course you while in Norway and Malaysia leaving anything on
might reach millions through such engines, but your plate would be considered rude. Basic body
are they actually the people you want to gestures are not global. In some parts of India, Sri
reach? Restricting yourself to those three Lanka and Bulgaria, shaking the head from left to
search engines means the audience you reach right means ‘yes’. Touching the lower eyelid may be
just an itch, but it also suggests to a South American
is likely to be mainly Western expats,
woman that a man is making a pass, or to a Saudi
internationalists and the elite. The aspiring
man that he is stupid. Scratching an earlobe has five
middle class, the new consumers, probably the
different meanings in five Mediterranean countries:
people you should be talking to, are still more
‘You’re a sponger’ (Spain), ‘You’d better watch it’
likely to go local.’
(Greece), ‘You’re a sneaky little...’ (Malta), ‘Get
Oban Digital (2015) lost!’ (Italy), while a Portuguese will feel really
pleased. The A-OK gesture (thumb and index finger
in a circle with the rest of the fingers open) means
money to a Japanese, zero in France, ‘ok’ in the
United States, a rude gesture in Brazil and ‘I’ll kill
Design you’ in Tunisia. Even the thumbs-up sign is deemed
UK and US customers prefer a cleaner, uncluttered to be a devastatingly obscene gesture to a Sardinian
approach with lots of white space (signalling a reas- woman and insulting in Iran. Thrusting your palms
suring sense of order) and drop-down menus. towards someone’s face may be meant to be endear-
Eastern markets, however, with languages that re- ing, but to a Greek there is no greater insult, since
quire more space, prefer busy landing pages, with this gesture is called a moutza and comes from the
links down both the left and right sides of the page. Byzantine custom of smearing filth from the gutter
This is partly due to the sheer volume of characters in the face of condemned criminals.
making searching clumsier and therefore a poor
CX. And even within Europe there are many nu-
ances and differences, for example the design of Culture
French retail sites is often busy and can look old-
Culture creates a quagmire of marketing problems:
fashioned to the English eye.
religion, sex, eating, greeting, habits, lifestyles, the
role of women – the list is endless. Ferraro (2001)
points out nine critical dimensions that contrast the
Form filling and privacy United States with the rest of the world’s cultures.
Privacy is important in China, and consumers there She says that US culture places a high value on 1)
prefer real-time interaction rather than being asked individualism, 2) a precise reckoning of time, 3) a
to provide information such as email addresses, future orientation, 4) work and achievement, 5) con-
using services such as 22. Though they love to com- trol over the natural environment, 6) youthfulness,
ment and interact online, they also want to preserve 7) informality, 8) competition and 9) relative equal-
their privacy. ity of the sexes.
 8 | International Marketing Communications 249

into writing.’ As for humour, use it sparingly, if at all.

Chinese breakfast: Positioning’s cultural In Germany, humour is generally considered inap-
challenges – breakfast comforting or propriate in business.
breakfast crunching?

‘A breakfast product in China should be soft, it Christmas in other cultures

should be reassuring, it should be comforting
and not be about discovering your dreams as Taking advantage of the Christmas opportunity
you crunch your way through the morning! requires an understanding of each international
A food product manufacturer, many of market. For example, in Brazil and Spain the
whose products are consumed before noon, celebration continues until 6 January (when
launched with cereal, a breakfast cereal. The festivities end). In Russia the celebrations start on
Chinese don’t like to crunch in the morning. The 7 January. In India Christmas Day is called Bada
role of breakfast in the morning is fundamentally Din (Big Day) in Hindi, and it is a national holiday
different than in America. This is a protective that allows people from all religions to celebrate
society; a mother’s fundamental role is to with their Christian friends. In China the main
protect her children with love as opposed to celebration occurs at the end of January (the
enable them to go discover their dreams. So Chinese New Year or the Spring Festival). In other
breakfast in the morning should be soft, it countries Christmas does not happen (in fact the
should be reassuring, it should be comforting. word is illegal in some countries).
This company had trouble recognizing that their
lead product couldn’t be what it would be in the
United States. To own the morning would
require a fundamentally different business
model and through that they have tried to have
Devices
relationships with an acquisitions strategy with In parts of Africa and Asia mobile is now the pri-
domestic companies.’ mary device through which to access internet, sur-
Madden (2012) passing desktop traffic.

As always, online can complicate matters. For exam-

Ozon.ru – Russia’s Amazon
ple, older Scandinavians and Germans are reluctant
to use credit cards, the currency of the internet; and In some markets such as Russia, consumers are
the French dislike revealing personal information. In loyal to ‘local’ and it might make more sense to
meetings, the Dutch and the Germans want to get launch via a marketplace such as Ozon.ru – the
straight to the point in business dealings, whereas in Russian Amazon equivalent.
countries like Spain, Brazil and Hong Kong some
general chat is the most important part. In France,
family is private and not part of business discus-
sions. In Hong Kong, expressing an interest in fam- Media
ily, general health, and observations of the country
help to nurture good relations. Media availability
Even protocol for follow-ups to a meeting varies Television is sometimes unavailable, since 1) devel-
from country to country, as some countries place oping countries do not have a high penetration of
more importance on the written word than the spo- televisions in domestic households, 2) some countries
ken word, and vice versa. As Julian (2009) points do not have commercial TV stations, and 3) others
out: ‘In Spain for instance, it’s important to follow up do but they restrict the amount of advertising time.
an email with a phone call, but in Germany you must Some countries, like Pakistan, do not allow YouTube;
do the opposite and put your phone conversations ‘although we know a significant proportion of the
 250 Part One | Communications Background and Theories

population accesses the service via proxy servers, it Different media standards
would be impossible to know who was consuming
A lack of uniformity of standards means that differ-
what and when’ (Oban Digital, 2015).
ent types of both film and artwork may be required
Unilever and BAT have made their own medium
for different markets, for example the United States
available in East Africa by running their own mobile
and the UK have different standard page sizes that may
cinemas.
require different artwork, which increases cost.

TV helps Different cost structures

‘The further away from a TV screen, however, Different countries have different forms of negotia-
tion and bartering. The Americans and the Japanese
the more difficult many experts say it becomes
are poles apart. In less developed countries cash
to create and to deliver a pan-European
may not be available, but barter, or counter-trading,
message.’
can offer an acceptable alternative.
Mead (1993)

Payment
In Russia, cash on delivery and payment via kiosks
Media overlap
is the most popular method of payment (Paget, nd).
Television, radio and the internet from one market
can spill over into other markets, for example half
the Canadian population has access to US televi- Legal restrictions
sion. The Republic of Ireland receives the UK’s BBC
and ITV channels. In mainland Europe local TV is Whether voluntary codes or actual law, there is as
received by neighbouring countries. yet no harmonized set of laws or regulations. For
example, the Lands’ End website in Germany can-
not mention their unconditional refund policy, be-
Lack of media data cause German retailers successfully sued in court.
Great Britain and Ireland have well-structured and (They normally do not allow returns after 14 days.)
categorized media analysis data (audited data). This presents the advertiser with different problems
Without reliable media data the optimum cost and in different countries. In Sweden, misdemeanours
effectiveness of the overall campaign are unlikely to by advertisers may be charged under the criminal
be achieved. Properly structured media markets are law, with severe penalties.
easier to work in. Regarding email, in the USA, the Can Spam Act
2003 governs the regulations around email market-
Lack of media credibility ing. You must have a valid physical address refer-
enced in your email. In Germany, a double opt in is
Unregulated or poorly regulated media in some required for email marketing consent to be acquired
countries may flout the principles of legality, de- and the confirmation email must be free of advertis-
cency, honesty and truth, which in turn may make ing. In Denmark, like in the UK and US, social
these media untrustworthy or create audience scep- media contests can be run without requiring too
ticism about the particular source of information. much commitment from the entrant (Paget, nd).

Varying media characteristics

Coverage, cost and reproduction qualities can and Competition
do vary from country to country. Some countries Different markets have different key players using
are technically more advanced than others, eg they different strengths. For example, Ford’s position of
may have massive penetration of high-speed broad- ‘safety engineering’ worked in many countries, but
band, while other countries do not even have many not in Sweden, where, of course, Volvo occupied the
cinemas.
 8 | International Marketing Communications 251

position. Competition may react in different ways ●● Gorilla Balls (American protein supplement);
in different markets. ●● My Dung (restaurant);
●● Cul toothpaste (cul means anus in France);
Language, literacy and logic ●● Scratch (German non-abrasive bath cleaner);
●● Super-Piss (Finnish car lock anti-freeze);
Combine these three in the international arena and ●● Spunk (jelly-baby sweet from Iceland);
a new challenge emerges – writing instructions. It
●● the Big John product range was translated as
is a skill in one language, and attempting to
Gros Jos (slang for ‘big breasts’) for French-
translate instructions is complex. This is an extract
speaking Canada.
from the translated instructions for assembling a
‘knapsack’: Even sophisticated marketers get it wrong. General
Motors discovered that Nova meant ‘it won’t go’ (no
1 Lead for hind leg in an opened position. va) in South America. Ford launched the Pinto in
2 Lead the frame of the sack support up. Brazil and soon realized that it was slang for ‘tiny
male genitals’. Coca-Cola’s phonetic translation in
3 Insert the blushing for blocking in the proper China meant ‘Bite the wax tadpole’. After launching
split, push it deeply and wheel in an anti-time into English-speaking markets, Japan’s second-largest
sense till it stops. tourist agency was surprised to receive a steady influx
of enquiries for sex tours. The Kinki Nippon Tourist
Company soon changed its name.
These translation problems are not insurmount­
able. For example, Curtis shampoo changed its name
International mistakes from ‘Everynight’ to ‘Everyday’ for the Swedish mar-
ket, since the Swedes wash their hair in the mornings.
Here is a selection of global misses or mistakes made
by brands attempting to sell into international mar-
kets. It includes wrong brand names, wrong advertis- Wrong strapline
ing slogans or, worse still, a fundamentally unsuitable
product for a particular international market. The New York Tourist Board found ‘I love New York’
Some marketers carefully choose names that work difficult to translate into Norwegian, since there are
for their local domestic market but never consider only two Norwegian verbs that come close: one
that one day the successful brand could sell into sev- translation is ‘I enjoy New York’, which lacks some-
eral markets. This insular perspective more than thing, and the other is ‘I have a sexual relationship
likely restricts any future growth opportunities into with New York’. Scandinavian vacuum cleaner manu­
international markets and almost certainly restricts facturer Electrolux used this in a US campaign:
the brand from developing into a global brand. ‘Nothing sucks like an Electrolux’. When Parker Pens
marketed its ballpoint pen in Mexico, its advertise-
ments were supposed to read: ‘It won’t leak in your
Wrong names pocket and embarrass you’. Unfortunately, embarazar
does not mean embarrass. It means impregnate, so
Here are a few examples: the slogan had an entirely inappropriate meaning.
●● Sic (French soft drink); The Mitsubishi Pajero had problems, since pajero in
some parts of the Spanish-speaking world means a
●● Pschitt (French soft drink);
liar, in others a plumber and in others something
●● Lillet (French aperitif wine); much worse. Other expressions that have been impre-
●● Creap (Japanese coffee creamer); cisely translated include US cigarettes with low as-
●● Irish Mist (in Germany ‘mist’ means manure); phalt (tar), computer underwear (software) and wet
sheep (hydraulic rams). Attention to detail is required
●● Bum (Spanish potato crisp);
when translating, as even the smallest error, such as
●● Bonka (Spanish coffee); missing out an accent on a letter, can drastically
●● Trim Pecker Trouser (Japanese germ bread); change the meaning. For example, in the United
 252 Part One | Communications Background and Theories

States, a b
­ ilingual banner celebrated ‘100 ano of mu- Even the major global players can get it totally
nicipal history’. In Mexican Spanish, año is year but wrong. Microsoft was reported (Brown, 2004) to
ano is anus. have released its colour-coded world map with time
zones showing the disputed Jammu and Kashmir re-
‘I saw the potato’ gion as not being in India. Under Indian law, this is
an offence. Result: the Windows 95 operating system
During the Pope’s visit to Miami it was reported was banned, with hundreds of millions of dollars in
that some T-shirts were printed supposedly saying lost sales. Office 97 was subsequently launched with-
‘I saw the Pope’. However, the translation was out colour coding.
‘I saw the potato’, because in Spanish Papa with a Microsoft employees were arrested in Turkey
capital P means Pope, whereas papa with a small when Kurdistan was shown as a separate entity, so
P means potato. Kurdistan was subsequently removed from all
maps. ‘Of course we offended the Kurds by doing
this but we had offended the Turks more and they
were a much more important market for our prod-
Wrong product ucts. It was a hard commercial decision, not politi-
cal’ (Tom Edwards, Microsoft’s Senior Geopolitical
In the attempt to get the packaging, advertising and
Strategist, quoted in Brown, 2004).
branding right, global marketers can sometimes for-
Another mistake that caused catastrophic offence
get the fundamental product and whether it is suit-
was a game called Kakuto Chojin, a fighting-styled
able for the market in the first place, leading to
computer game with a rhythmic chant from the
campaign failure. Here are some examples of inter-
Koran. Despite being alerted by a Muslim staff
national product failures arising from the basic
member as to this insult to Islam, Microsoft still
product itself: Christmas puddings in Saudi Arabia
launched the game in the United States on the
(where the word ‘Christmas’ is illegal and 50,000 of
assumption that it would not be noticed. After a
the Anglo-Saxon population go on leave during
formal protest by the Saudi Arabian government,
Christmas anyway); and toothpaste to combat betel
Microsoft withdrew the product worldwide. The
nut stains (stained teeth imply wealth in some cul-
list goes on. China, Korea, Spain and Uruguay have
tures, as does being overweight in others). General
all been upset by various Microsoft products. In
Foods’ packaged cake mixes found the Japanese
Korea its software showed the Korean flag in reverse
market too small for them (3 per cent of homes had
and prompted government objections. In Spain,
ovens). Coca-Cola had to withdraw its 2-litre bottle
hembra means woman, but in Nicaragua and some
from Spain, because few Spaniards owned refrigera-
other Central American countries it means bitch. In
tors with large enough compartments. Tennent’s
China, when Microsoft referred to Taiwan as a
Caledonian, a successful Scottish lager, flopped ini-
country, the police moved in and questioned staff.
tially in the UK because it came in 24-packs rather
In Uruguay, a proud republic, Microsoft’s Outlook
than six-packs. Philips had to change the size of its
referred to 30 April as ‘the Queen’s birthday’, which
coffee makers to fit into the smaller Japanese kitch-
offended the government.
ens and its shavers to fit smaller Japanese hands.

Microsoft pays dear for insults

through ignorance
Strategic global options
More and more businesses have to compete in the
‘Insensitive computer programmers with little global arena. For many companies there is nowhere
knowledge of geography have cost the giant left to hide. Those that do not move into the global
Microsoft company hundreds of millions of market will probably find that the global market
dollars in lost business and led hapless will come to them, as new international competitors
company employees to be arrested by offended target their safe local market.
governments.’ A defensive strategy (eg consolidating the existing
Brown (2004) customer base, staying native, and blocking compe­
tition from entering with, for example, a series of
 8 | International Marketing Communications 253

promotions) may safeguard the company, at least in Coca-Cola, with its centrally produced
the short term. Offensive strategies are required if a advertisements that incorporate local
company is seeking entry into new markets, eg differences in language.
increasing promotional spend in key national mar- ●● Same product/different communications.
kets. Strategic alliances and joint ventures offer a This applies to markets where the need or
lower-cost, lower-risk (and possibly lower-margin) function is different but the conditions of
method of entry into these new, large and increas- product use are the same, eg bicycles in
ingly competitive markets. Europe and bicycles in Africa (recreation and
transport, respectively).
Global marketing strategy ●● Different product/same communications.
This applies to markets with the same
A global marketing strategy usually consists of: 1) a product function or need but with different
single positioning, 2) a single brand name, 3) identi- conditions of product use, eg different petrol
cal packaging, 4) a similar product concept (al- formulae but the same advertising image
though with local cultural adaptations), (eg Esso’s tiger).
5) standardized ad messages, 6) synchronized pric- ●● Different product/different communications.
ing (not always possible), 7) coordinated product This applies to markets with different needs
launches across different countries/regions, etc. In and different product use, eg greeting cards
reality, it doesn’t always go according to plan. and clothes are held to be ‘culture bound’,
Sometimes there is not even a detailed centralized but it should be noted that some clothing
plan! And as the campaign rolls out, frustrations, companies (like Levi’s) use the same,
fractured messages and wasted resources are far too centrally produced, wordless advertisements
common. internationally.
Markets overseas are rarely at the same stage of
development. They may be at different stages of ●● New product (invention)/new
maturity, have different levels of competition, dif- communications. This applies, for example,
ferent distribution channels, different levels of in the case of a hand-powered washing
brand awareness, brand preference and brand mar- machine.
ket share. Not to mention the different languages Gordon Storey, Mars External Relations Manager
and cultures both in the external marketplace and
in the internal teams across the world. So how can
you ensure that your product will be in 35 markets Global advertising strategy
and in 25 different languages? How do you develop
The question of whether at least the advertising can
and execute a global marketing campaign, or even
be standardized (across the world) is a source of
just in a selected few international markets?
great discussion. Forty years ago Kahler and
International expansion is a natural growth strat-
Kramer’s (1977) original work suggests that success-
egy for many businesses. It can go horribly wrong,
ful standardization is dependent on the similarity of
but if you get it right the rewards can be great.
the ­motivations for purchase and the similarity of
Keegan and Schlegelmilch (2001) identified five
use conditions. For culture-free products such as in-
marketing strategies (product/communication strat-
dustrial goods and some consumer durables, the
egies) for international marketing. These were
purchase motivations are similar enough to permit
determined by the state of the various international
high degrees of standardization. Culture-bound
markets, analysed by 1) whether the need (or prod-
products, in contrast, require adaptation. Customs,
uct function) was the same as in other markets, 2)
habits and tastes vary for these products, and cus-
whether the conditions of product use were the
tomer reaction depends on receiving information
same as in other markets, and 3) whether the cus-
consonant with these factors. It has been argued that
tomer had the ability to buy the product:
‘buying proposals’ (the benefits proposed in the ad-
●● Same product/same communications. This vertisement) have a good chance of being accepted
applies to markets where the need and use across large geographical areas, whereas the ‘crea-
are similar to those of the home market, eg tive presentation’ (creative treatment) does not.
 254 Part One | Communications Background and Theories

Essentially, if the international market had a 3 central strategy and local production (pattern
similar set of needs and interests, then a successful advertisements);
adaptation of the advertising message was more 4 central strategy with both central and local
likely (as in the case of pattern advertisements – see production.
‘Central strategy and local production (pattern
advertisements)’ below). Simon Majaro (1993)
observed that the time period between the time a Central strategy and production
product reaches its decline stage in the most Advertisements are controlled and produced by the
advanced market and the introduction stage in the head office (or its agency). This includes message
slowest market is narrowing. If this trend contin- modification, such as translations and tailor-made
ues, the point will be reached where the pattern of editions for various markets. Examples of centrally
the lifecycle in a domestic market will become iden- controlled and centrally produced advertisements
tical with the pattern in the foreign markets. This include Coca-Cola’s emotion-packed ‘General
will of course have a tremendous impact on the Assembly’ advertisement showing the world’s chil-
communications strategy of firms operating inter- dren singing happily and harmoniously together,
nationally. It would mean that in time it would which was similar to their classic 1971 ‘I’d like to
become possible for the communications objectives teach the world to sing’ (McCann) in that it was
of such firms to become more and more homogene- packed with emotion and carried a universal theme.
ous, thus allowing for a larger measure of stand- The 21 language editions of this advertisement
ardization. In other words, if the trend continues, it opened with ‘I am the future of the world, the future
should become p ­ ossible for the same campaign, of my nation’ and ended with the tag line ‘a message
subject to the manipulation necessitated by linguis- of hope from the people who make Coca-Cola’.
tic and cultural variations, to be undertaken in all Each country then edited in its own end shot of the
markets. This is indeed the kind of standardization appropriate child’s face. Incidentally, the German
that Coca-Cola has achieved in world markets. edition was dubbed slightly out of synchronization,
This strategy stems in the main from the fact that since Germans associate quality films with dubbed
the product lifecycle profit of Coca-Cola is pretty (slightly out of sync) US and British films. Scottie’s
homogeneous throughout the world. Rijkens nappies save production costs by omitting any dia-
(1993) confirmed the trend towards ‘greater inter- logue and just using a different voice-over for each
nationalization and centralization’, where basic country. Levi’s does not bother with voice-overs,
creative ideas are centrally produced for interna- dubbings or translations, as there is no dialogue –
tional use. Kahler and Kramer (1977) felt that just music. Its unified logo and brand image does
transferability of advertising was dependent on the away with the need for different pack shots (close-
possibility of a more homogeneous consumer, who ups of the pack/label) for each country, so its com-
might, for example, evolve out of the e­ ver-integrating mercials are used throughout Europe.
European community. If the European consumer
showed a willingness to accept the products of
countries within the community, and if that con-
sumer was motivated similarly to consumers in Automobile ads in Europe
other countries, a common promotional approach
would be practical; but if national identities pre- Show smooth drivers driving beautiful cars around
vailed, separate campaigns would be more likely to adventurous roads in Europe. These centrally
succeed. produced European ads work fine in mainland
Europe, but in the UK the ads reveal their ‘centrally
produced’ style when audiences can see the driver
Four global advertising strategies is sitting in the ‘wrong’ seat – ie they use left-hand
drive cars (despite UK being a right-hand drive
The four basic strategies available for global mar-
keting communications are: market). As they continue to be used, we must
assume this, surprisingly, does not affect their
1 central strategy and production; effectiveness.
2 decentralized strategy and production;
 8 | International Marketing Communications 255

Centralized global advertising Rolex epitomizes ‘achievement’ in New York and

‘trendiness’ in Tokyo, it must implement two of
campaign: Local splash page every­thing: two product lines (one stately, one flashy),
Some brands navigate this by having a splash page. two ad campaigns, two sponsorship series and two
For example, Nike have the generic url nike.com/ retail strategies (Doctoroff, 2005).
running at the end of some of their YouTube vid-
eos. It’s a global channel meaning anyone across
the world could be watching that video. If you fol-
Central strategy and local production
low that url, you’re presented with what they’ve (pattern advertisements)
called a location tunnel, which then re-directs to The pattern provides uniformity in direction but
their localized content (served on a .com/en sub not in detail, which allows the advertisements to be
folder) (Paget, nd). locally produced but within the central strategic
guidelines. This is where head office guides the stra-
Decentralized strategy tegic direction of the advertisements but allows
local production. These advertisements work to a
and production formula, or pattern. In the Blue Band margarine ad-
Advertisements are controlled and produced by each vertisements, whether in Scandinavia or Africa, the
local subsidiary and its agency specifically for the appropriate happy mother could be seen spreading
local market. This approach generates lots of differ- margarine on bread with her happy family sitting
ent advertisements by the same company. Each divi- around eating it. Impulse fragrance used a ‘boy
sion or subsidiary works with its own local agency to chases girl’ formula across Europe, but still allowed
produce tailor-made advertisements for the local for cultural idiosyncrasies like eye contact, sex ap-
market. As well as being an expensive approach, it peal and law-abiding citizens to be tailored into
can destroy uniformity and a consistent global pres- each country’s different production. Renault’s pan-
ence, but it does allow more creativity to suit the spe- European strategy was to ‘endow the car with its
cific needs of the local market. Different positionings own personality’. In France the car was shown with
in different markets do require different campaigns, eyes. In Germany the car talked back. In the UK the
sponsorship and retail strategies. For example, if end line was ‘What’s yours called?’

F I G U R E 8.1 A location tunnel

SELECT YOUR LOCATION

AFRICA AMERICAS ASIA EUROPE MIDDLE EAST

 256 Part One | Communications Background and Theories

Centralized creative problems: Advantages of central strategy

The creative ideas won’t translate and central production
●● Consistent image. A consistent image (and
‘Global creative is often not easy to localize.
positioning) is presented around the world,
From sign-offs and tag lines to pictures and
allowing consumer awareness and familiarity
concepts that offend rather than resonate, the
to prosper.
whole process can be a minefield to the
under-experienced…. voice selection is
●● Consolidated global position. It leaves the
brand in a stronger position to protect itself
insensitive to cultural needs, it just won’t work.
from any attack.
Other creative minefields include humour,
metaphors, idioms, regulatory issues and ●● Exploits transnational opportunities. It
cultural norms. reduces message confusion arising when
Sometimes you’ll find a global team working advertising in one country spills over to
with lead agencies in a silo. Some markets
another (eg boundary-bouncing satellite TV)
or when migrants and tourists physically
won’t even have been considered. How you’re
travel to another geographical area
going to measure the success of your global
(geographical segment).
campaign should be part of the initial brief.
Very often it isn’t.’ ●● Saves costs. Economies are enjoyed by not
Freedman (nd) having several different creative teams (and
production teams if central production)
working on the brand around the world
(saves reinventing the wheel). There is the
Central strategy with both central possibility of centrally produced (or at least
centrally designed) point-of-sale material
and local production also. Levi’s has found that it saves £1.5
Centrally produced non-verbal commercials are million by shooting a single TV ad to span
used to build a unified identity, while local produc- six European countries (at £300,000
tions supplement this platform. This is demon- production cost per each one-minute TV ad).
strated by the Levi’s example given below. Although ●● Releases management time. It may also
‘standardized’ generally refers to production, it can reduce the size of the marketing department,
also include centrally controlled media strategies, which might otherwise be tied up briefing
planning and buying. The centralized or standard- creative teams, approving creative concepts,
ized global campaign problems are discussed below. supervising productions, etc. It may even
As Rijkens (1993) says: save time invested with packaging designers,
As far as advertising is concerned, the company sales promotion agencies, etc, if pack designs
will continue its policy of central production and promotions are run from a central office.
of non-verbal commercials and cinema films, ●● Facilitates transfer of skills. It does this
to be shown throughout Europe and intended within the company and around the world,
to establish a uniform identity for Levi Strauss since in theory it is the same job anywhere
as a business and for its products. Advertising around the world. It also stimulates cross-
produced locally by the Levi Strauss subsidiaries
fertilization of company ideas if staff are
will respond to local circumstances and to the
moving around internationally.
local competitive scene.
This formula, also applied by other companies ●● Easier to manage. It is easier to manage
marketing a uniform product and using one centrally, since there is in total a smaller
advertising strategy on an international scale, number of decisions and projects to manage:
has proved successful and may well be further || One creative decision facilitates
developed once the single market really comes harmonization of creative treatments,
about. particularly in areas of media overlap.
 8 | International Marketing Communications 257

|| Media policies – manage the media locally created original idea. Sales therefore
overlap between countries to maximize perform below their potential.
effectiveness and recommend preferred ●● Difficult translation. Some ideas just do not
media choice in specific territories. lend themselves to translation, eg Pepsi’s
|| Budgets – determine local budgets for ‘Come alive’ was translated in some
each product in each market so that the countries as ‘Come from the dead’ or ‘Come
method of allocating resources is out of the grave’.
balanced. ●● False savings. Local language adaptation or
|| Agree an activity programme and a modification costs may negate the cost
specific reporting system to facilitate savings generated by the centrally controlled
easier management. creative work.
●● Market complexities. The many other local
Disadvantages of central strategy market differences (eg variations in consumer
protection regulations and media
and central production availability) may make a standardized
●● Stifles creativity. It stops local creative message extremely difficult.
contributions from both company staff and ●● Inexperienced staff. A lack of suitably
the local advertising agency (whether part of qualified expert staff who can manage the
an international group or an independent coordination of transnational standardized
agency). The account may be considered by campaigns may make the whole centrally
the local agency staff to be dull and boring, controlled advertising concept too risky.
and the supposed ‘best brains’ (from the
creative department) may avoid being
involved with it. Rudyard Kipling’s advice to McDonald’s
●● Frustrated local management. Although the
local office may be accountable for its ‘Asia is not going to be civilized under the
performance, it does not have control over methods of the west. There is too much Asia
its own destiny, since advertisements are and she is too old.’
centrally produced or directed. This may lead Rudyard Kipling (1891)
to a sense of frustration.
●● Minimal effort from the local agency (if
using an international agency with its McDonald’s India now offers tailored products for
network of overseas branches). The high the Indian market – mutton, chicken, fish and veg-
global advertising spend may put the brand etable products, not beef, pork or their by-products.
high on the agency’s head office list, but the Since Hindus don’t eat beef, the Big Mac is called
local agencies may find it is uneconomic to the Maharaja Mac and made from lamb.
spend too much time and top brains on it.
●● Lost opportunities. The opportunity to react
quickly to changes in the local market is lost. Decentralized strategy
●● Different product lifecycles. Different Successful marketers recognize a customer-centric
markets may be at different stages of their world in which customers choose to do business
lifecycle, which may make the standardized with the brands that speak to them as individuals
approach unsuitable. It may, however, still be and are always relevant to their lives, jobs, families
possible to standardize each stage of the and cultures. As Ben David (2015) points out, ‘mar-
brand’s development, eg Boots launch of keters are adapting their ad programmes to better
Nurofen in the UK and northern Europe. relate to consumers on an individual level, but those
●● Wrong idea. Some central advertising targeting a global customer base still need to heed
concepts may simply not work as well as a cultural differences to make their ads more effective
across continents.’
 258 Part One | Communications Background and Theories

Decentralized, localized and highly ●● Define a worldwide localization process.

Implement one consistent but flexible process
relevant ads perform better worldwide and educate global teams on
Ben David (2015) observes that brand marketers transcreation and adaptation.
create regional-specific advertising programmes ●● Determine what resources are available and
(whether by country or even by city) because they fill any gaps within internal service
know that the most effective ad experiences are departments, global and local marketing
those that are highly relevant to the customer. teams, agencies, or other suppliers
●● Identify where the money is coming from.
How North American and European Make sure everyone is clear. Define budgets.
ads differ ●● Decide on budget ownership and allocation.
●● Secure early budget allocation to allow
It’s difficult to generalize advertising preferences marketing teams to deliver with confidence
across regions as each advertiser is striving to be and consistency.
more unique and innovative than the next, but we Freedman (nd)
can extrapolate a few common themes.
Consumers in North America are accustomed to
forming a direct relationship with big brands, so
Influencer marketing
ads tend to focus more on the brand experience. Influencer marketing (see p 410) is popular in al-
US marketers use the power of story-telling to help most all markets and therefore should be built into
define the consumer’s persona traits, and then any international campaigns. Sunsail, a UK yacht
create an ad story that places the consumer within charter business, ran an international campaign
that storyline. called #paperboats aimed at driving awareness of its
On the other hand, European consumers don’t flotilla product. In order to kick the campaign off,
tend to formulate that relationship with a brand. they engaged staff and influencers from over a dozen
Consumers respond better to ads that contain countries before the campaign officially kicked off,
brand messages around product cost and value. meaning they had content for their newsletters,
It’s typical to see ad messaging in Europe touting landing pages and social media platforms for go-live
(Paget, nd).
the unique practical selling points of the product
or service, versus emotional selling points. For
instance, the underlying tone of a European ad
might be, ‘you should buy these shoes for their Agencies in the
durability’, versus the North American tone, ‘you
should buy these shoes so you can feel like international arena
LeBron James’.
There are several different types of agency from
which an international advertiser can choose:
international agencies;
Whichever strategy, smarter ●●

●● independent networks, associations or

process, roles and accountabilities confederations of agencies;
are required ●● local independent agencies;
Kevin Freedman suggests that marketers should make ●● in-house agencies.
sure they have got the right people and that everyone In addition to deciding whether to centralize con-
knows what they’re doing. They should also: trol over advertising (and effectively standardize it),
●● Establish clear roles for global, region and the international marketing manager must decide
local. Define roles; educate players; and whether to put all international advertising in the
follow it. hands of one international agency or hand it out to
 8 | International Marketing Communications 259

local independent agencies. Many local independ- ●● Full service. Because of the international
ent agencies have grouped themselves into networks agency’s size, it can offer a full range of
or associations, which means that they have a services, including research, planning and
ready-made network of contacts with the other net- translation, under one roof.
work member agencies in the various international ●● Quality. Some clients feel reassured by the
regions. A fourth and less common option is for the quality feeling of a large international agency
client to set up its own in-house agency specifically (as opposed to taking a chance with a
to handle its own worldwide advertising. smaller local agency). Quality and standards
should, in theory, be universal.
Choosing a centralized ●● Broad base of experience. Training and
transferring personnel is common among the
international agency or international agencies.
independent local agencies ●● Presence in major advertising centres. The
agency branches are located at the centre of
This question is linked to whether the communica-
most major cities or marketing territories.
tions should be controlled centrally or left to run
autonomously. Should the marketing team at head- ●● Cost saving. Less duplication in areas of
quarters work with just one large multinational ad- communication, creative and production
vertising agency or should it allow a range of departments.
independent agencies to use its unique skills on a ●● Easier to manage. A single central contact
local basis? A coordinated message can be developed point combined with the points listed in
in either situation. For example, centrally produced ‘Advantages of central strategy and central
advertisements (with local modifications, transla- production’ on p 256.
tions, etc) and pattern advertisements (formula ad-
vertising) can work under either system. Although a
centrally produced advertisement is more likely to Disadvantages of using a
be handled by a large international agency, there are centralized international agency
exceptions where local independent agencies with
It is arguably easier for a single international
local media buying and production skills (if pattern
agency to standardize the message. The disadvan-
advertisements are required) may be preferred. It is
tages of standardization (see p 257) therefore apply
possible to choose to work with a range of inde-
where central control moves in. In addition, the
pendent local agencies while adhering to centralized
overseas subsidiary may lack enthusiasm if the ac-
policies. These policies can help the client to manage
count was won elsewhere. It is as if, by necessity,
the whole advertising process by giving specific
various branches of the international agency are
guidance on creative directions, media strategies,
brought in. The lack of excitement may be com-
budgets and activity programmes. As Majaro (1993)
pounded, particularly where all the creative work
said, ‘Obviously where the product profile justifies
has previously been handled by head office. In a
communications standardization, it may be advis­
sense, the branch’s job is relegated to media sched-
able to use the services of an international agency
uling and planning.
with offices in all markets.’ Majaro continued:
‘Hoping to attain the same results by using a host of
local agencies with no international expertise is a
formula for waste in worldwide marketing.’
The key to successful central
Advantages of using a centralized communications
international agency
‘If Shakespeare and the Rolling Stones can do it,
Compared to using several local agencies, using a
so can advertising.’
central international advertising agency has the fol-
lowing advantages: Maurice Saatchi
 260 Part One | Communications Background and Theories

Rather than engaging in high-risk new product de- ●● gestures;

velopment many corporations prefer to consider
●● animal icons;
the lower-risk new market development approach.
This doesn’t mean international marketing is cheap. ●● body parts as metaphor;
It’s not. It requires resources to grow sales and mar-
ket share internationally. Without this or with too
●● racial and/or gender stereotyping;
little resources the propensity for failure increases. ●● flags, maps, political and religious symbols.
Adequate resources: budget (money), time ­(minutes)
and skilled people (men/women) increase the likeli-
hood of success.
However, making it all actually happen is another
thing altogether. Take advertising: although more Get the resources required
and more advertising is used in more than one coun- for international growth
try, only some of it works successfully.
Understanding the disadvantages in addition to Scarce resources limit international growth plans
the advantages is the first step towards implement- (or any plans for that matter). Compared to their
ing centralized communications. Identifying the bar- Asian counterparts, companies based in Europe and
riers reveals the levels of resistance among distant the United States are nearly twice as likely to sug-
international marketing managers. It follows that gest that they don’t have the analysts they need to
internal marketing skills are also required. Before make sense of their data. A key theme emerging
international communications are standardized from the feedback we received in response to our
(centralized), management thinking must first be open-ended questions is that most companies sit on
harmonized internationally. Diminishing local heaps of data, but being able to turn all their data
autonomy without diminishing local responsibility into actionable insights is something that few have
requires skilful management handling. Indeed, main- been able to master (eConsultancy, 2015).
taining management motivation requires people International marketing communications require
skills, particularly when their responsibilities for even more attention to detail than domestic market-
advertising budgets are being slashed. ing communications. But, even closer to home, care
Many local managers will perceive the central is required to ensure the correct translation pro-
advertising campaign to be dull and disappointing cesses are in place. A process is required to ensure
because it is based on the lowest global common copy is sent off for translating, translated, double-
denominator – those common cross-cultural char- checked and then uploaded into the correct section
acteristics that somehow find commonality across of the foreign language site.
borders that can result in dull ideas.
Inspiring managers to continue to excel with
sometimes-bland, centrally produced advertising is
a challenging job. It becomes more challenging the In conclusion
longer internal communications are delayed.
Note, the same applies for centrally produced International markets present many challenges and
content marketing, if there has been no collabora- many rewards. There are many similarities among
tion earlier in the creative process. customers around the world, but there are also
many differences lurking below the surface. Even
more attention to detail is required in international
markets, as the opportunities for errors increase.
How to avoid some international Systems, processes and teams have to be harnessed
difficulties when creating graphics to make it all work successfully.

Avoid:
●● text-based graphics;
●● visual puns;
 8 | International Marketing Communications 261

Key points from Chapter 8

●● The globalization of markets is ongoing. ●● The biggest challenge is to stay relevant to each
●● There are, however, technical and cultural region.
idiosyncrasies that need to be accommodated. ●● Classic errors are made even by the big,
●● There are many other challenges that arise in established brands. They can be avoided by
international markets beyond just culture, thoroughly checking and researching each
including language, media, laws (or lack of market.
them) and much more.

References and further reading

Ahonen, T and Moore, A (2007) Communities Julian (2009) The ‘lucky seven’ tips when collecting
Dominate Brands, Future Text, London payments from overseas companies, Octempo: RM
Anholt, S (2001) Another One Bites the Grass, Wiley, Blog, 18 December
Chichester Kahler, R and Kramer, R (1977) International
Becht, B (2010) How I did it: Building a company Marketing, South-Western Publishing, Cincinnati,
without borders, Harvard Business Review: The OH
Magazine, April Kashani, K (1989) Pathways and pitfalls of global
Ben David, E (2015) Relevant, personalized ads solve marketing, Marketing Business, June
global marketing challenges, The SmartVideo Blog, Keegan, W J and Schlegelmilch, B B (2001) Global
24 February [online] http://info.sundaysky.com/ Marketing Management: A European perspective,
blog/ (archived at https://perma.cc/RAL9-DDNC) Financial Times/Prentice Hall, Englewood Cliffs, NJ
Brown, P (2004) Microsoft pays dear for insults Kotler, P (2002) Marketing Management: Analysis,
through ignorance, Guardian, 19 August planning, implementation and control, 11th edn,
Chaffey, D and Smith, PR (2008) eMarketing Prentice Hall, Englewood Cliffs, NJ
eXcellence, Butterworth-Heinemann, Oxford Lajoie, M and Shearman, N (2014) Defining Alibaba,
Doctoroff, T (2005) Billions: Selling to the new Wall Street Journal
Chinese consumer, Palgrave Macmillan, New York Madden, N (2012) Five questions with Tom Doctoroff,
Dudley, J (1989) Strategies for the Single Market, JWT’s Greater China CEO, Ad Age Global, 27 June
Kogan Page, London Majaro, S (1993) International Marketing, 2nd edn,
eConsultancy (2015) Quarterly digital intelligence Allen & Unwin, London
briefing: Digital trends 2015, eConsultancy Mazur, L (1997) Successfully managing cultural
Ferraro, G P (2001) The Cultural Dimension of differences, Marketing Business, September
International Business, 4th edn, Prentice Hall, McGovern, G (2014) Customer-centric and easy-to-
Englewood Cliffs, NJ use is the new business model (The Alibaba story)
Freedman, K (nd) Planning a global marketing Gerry McGovern//New Thinking, 18 May
campaign? Think implementation first, Freedman Mead, G (1993) A universal message, Financial
International [online] www.freedmaninternational. Times, 2 May
com/implementation-first/ (archived at https:// Mole, J (1998) Mind Your Manners, Nicholas Brealey
perma.cc/5XYK-BUS3) Publishing, London
Geertz, C (1983) The Interpretation of Cultures: Morris, D (1988) Watch your body language, Observer,
Selected essays, Hutchinson, London 23 October
Harvey-Jones, J (1988) Making It Happen: Oban Digital (2015) Understanding your new global
Reflections on leadership, Collins, London customer: 10 things you need to know about search
Inskip, I (1997) Marketing international brands in and conversion when marketing to an overseas
Asia needs fresh thinking, Marketing Business, audience [online] https://obaninternational.com/
May (archived at https://perma.cc/AX3K-WGS2)
 262 Part One | Communications Background and Theories

Orton-Jones, C (2013) Follow the money, The Rodgers, A L (2001) It’s a (red) bull market after all,
Marketer, March/April Fast Company, 30 September
Paget, J (nd) Running international marketing Shih, C (2013) What’s a ‘like’ worth? Ask Facebook’s
campaigns guide, SmartInsights [online] www. graph search, Ad Age Digital, 14 February
smartinsights.com/guides/running-international- Universal McCann (2007) Power to the people:
marketing-campaigns/ (archived at https://perma. Tracking the impact of social media wave, 2.0,
cc/76AN-S48A) May
Pike, K (1966) Language in Relation to a Unified Usunier, J C (2000) Marketing Across Cultures,
Theory of the Structure of Human Behavior, Financial Times/Prentice Hall, Englewood Cliffs,
Mouton, The Hague NJ
Prior, E (2013) Do Man Utd really have 659m Winick, C (1961) Anthropology’s contribution to
supporters? BBC News Magazine, 18 February marketing, Journal of Marketing, 25
Rijkens, R (1993) European Advertising Strategies, Young, L (1987) Love around the World, 2nd edn,
Cassell, London Hodder & Stoughton, London
 263

09
The marketing
communications plan
LEARNING OBJECTIVES
By the end of this chapter you will be able to:
●● write an outline marketing communications plan using PR Smith’s SOSTAC®
planning framework;
●● understand the importance of gathering intelligence and research for the situation
analysis before writing the rest of the plan;
●● explore strategy, knowing that it is an area of weakness for most organizations;
●● schedule a range of tactical tools to fulfil the strategy;
●● develop the internal marketing part of the plan to ensure excellent execution
of the plan;
●● establish control systems.

Introduction to the SOSTAC® marketing Sample strategy excerpts 279

communications plan 264 There is no one single approach 280
The 3Ms 264
Tactics 280
Situation analysis 265 Social media tactical function is changing 280
Segmentation and target marketing 265
Decision-making units 266 Actions 280
B2C (consumer) segments 266 Internal marketing 281
B2B (industrial) segments 267 Critical path and project plans 283
Segmentation requires careful analysis 267
Control 283
Situation analysis requires more than just a customer
Some tactical tools/channels are better than others 286
analysis 268
Net promoter score, satisfaction score and
Objectives 268 recommendation score 289
Mission 268 Sentiment analysis: Social conversation scores (social
Vision 269 media monitoring) 289
Key performance indicators 269 Return on investment 289
Marketing objectives 269 Constant beta 291
Communications objectives 270 Budget setting 291
The KPI pyramid 270
Key points from Chapter 9 292
Strategy 272
References and further reading 292
Your value proposition 274
TOPPP SEED components of digital marketing Further information 294
strategy 274
 264 Part One | Communications Background and Theories

use the same terminology. The SOSTAC® framework

Introduction to the will help the development of a logical structure com-
SOSTAC® marketing bined with the key elements of a plan.
A real plan requires a lot of detail, and the first
communications plan component, the situation analysis, is so important
that it can take up half of the total plan (this can be
There are many different approaches to building a dumped into the appendices at the back of the plan
marketing plan or, more specifically, a marketing or kept in the front but either way the situation
communications plan. There is no single common analysis must be thorough). Objectives and strate-
approach, but there are essential elements that every gies should be written in a concise manner, while
plan must have. PR Smith’s SOSTAC® was devel- the tactics and action plans can require a lot of
oped in the 1990s after 10 years of searching and details. Control, feedback and monitoring mecha-
experimenting: a simple aide-mémoire that helps nisms should be built into the plan so that everyone
managers to recall the key components of a market- knows what is going to be measured when, by
ing communications plan. SOSTAC® can in fact be whom, and most importantly, what happens when
applied to any kind of plan – a corporate plan, mar- the numbers go up or down?
keting plan, marketing communications plan, social SOSTAC® is also an agile planning framework
media plan, direct mail plan or even personal plan: since the control section feeds into the situation
analysis, which helps to refine the next set of objec-
S Situation analysis – where are we now? tives, etc.
O Objectives – where do we want to go? So SOSTAC® + 3Ms works for any type of prod-
S Strategy – how do we get there? uct or service in both consumer and business-to-
business markets, as demonstrated in the short case
T Tactics – the details of the strategy
studies used in this book. Although the case studies
(marcomms mix).
provide only an outline plan, they show how easily
A 
Action – the details of tactics (internal SOSTAC® can be applied to either planning the
marketing). Includes: communicating, overall marketing communications or just planning
motivating and training your team to execute a campaign for a single communications tool such
with excellence and passion. as direct mail. Let us consider now each SOSTAC®
C 
Control – how do you know you are getting component in more detail.
there, what metrics are you going to
measure, how often, when, by whom, how Note: Several extracts in this chapter are taken from
much will it cost. PR Smith’s ‘SOSTAC® guide to your perfect digital
+ 3Ms (the three key resources): marketing plan’ (2019).

Men and women (human resources).

Money (budgets). The 3Ms
Minutes (timescales). As mentioned above, the 3Ms, the three key
­resources, consist of:
And now, if you so choose, you can see this on
video, in a bit more detail, in four minutes at http:// 1 men and women (human resources);
prsmith.org/sostac/, or watch it later and continue 2 money (budgets);
reading.
SOSTAC®’s simple structure is applicable at differ- 3 minutes (timescales).
ent levels. In each chapter in Part Two of this book, Men/women are the human resources: who is
SOSTAC® is applied at a lower level for each of the r­ equired to do what? Some staff can be drawn from
communications tools, an advertising plan, a direct within the organization, others have to be brought
mail plan, etc. SOSTAC® can also be used to check in from an agency or consultancy or recruited as
other plans to see if they are comprehensive and cover full-time members of staff. Is it worth asking over-
the key items that every plan needs. You don’t have to busy people to give half their attention to a project
or asking under-qualified and under-utilized people
 9 | The Marketing Communications Plan 265

F I G U R E 9.1 Visit http://prsmith. mega data or small data) and how data can improve
marketing efficiency, add value to the CX and find
org/sostac/ and watch the four-minute new collaborative data partners (eg IoT).
video

Situation analysis
The situation analysis needs to be comprehensive. An
in-depth analysis of customers (see the three key cus-
tomer questions that must be answered in detail:
Who? Why? and How?), competitors, distribution
channels, the organization’s own performance/re-
sults, strengths and weaknesses as well as external
trends (that create opportunities and threats), is re-
quired. Half the plan should be devoted to situation
analysis.
The marketing communications plan does not
necessarily require a full SWOT analysis, as this is
usually found in the full marketing plan. It should
certainly include an explanation of the product or
service’s positioning – how the product is perceived
in the minds of the target market.
to have a go? Perhaps the marketing communica- The situation analysis can include a PEST analysis
tions task is too important to be casual? specifically relevant to communications, eg political
Minutes, the third M, is the most limited resource – (what new laws or regulations affect communica-
time. Is there enough time to do the job, to carry out tions); how economic fluctuations might affect media
the research, to develop credibility, to nurture a Twitter and messages; social trends and changes in attitudes
following, to develop new packaging, etc? Crystal and media usage; and technology’s fast-changing
clear timescales and deadlines are critical. How much impact on communications.
lead time do you need if you want to launch a new toy A vital part of any analysis is the market and its
at Christmas? The product has to be ready by February, structure. How is it segmented? What are the most
for the New York Toy Show, when the major US retail- suitable segments that can become target markets?
ers place their Christmas stock orders. Are the target markets big enough? Are they profit-
Money means budgets, and senior management able enough? Are they vulnerable to competition?
will tend to scan budgets first and foremost. There Do the existing distribution and communications
are many different ways of setting marketing com- channels serve them properly? Are customers satis-
munications budgets, and there is not a generally fied in each target market? Do they intend to repur-
agreed methodology but rather a whole range of chase? Who is involved in the decision-making unit
approaches that can be described as either scientific (DMU)? Do the key opinion leaders and opinion
or heuristic. A combination of judgement, experi- formers support the brand?
ence and rational evaluation influences budgets. See
more on budgets at the end of this chapter.
There is also a fourth ‘M’ – mega data. Every Segmentation and target
organization uses data today. Whether it is a basic marketing
database of customers and prospects or large quan-
tities of data that can be used to make better data- Segmentation and target marketing is all about the
driven decisions about marketing or even just finding number one customer question: ‘Who is my ideal
new ways to use data to add value to the customer target customer? Segmentation is so important that
experience (CX). Start thinking about data (whether it appears almost everywhere in a marketing plan: in
 266 Part One | Communications Background and Theories

the situation analysis in detail, in the objectives users, the 9 per cent of the UK adults who drink 65
briefly and in the strategy (as a fundamental compo- per cent of the lager? Who are the deciders? Cola
nent); it is also referred to in all tactical campaigns drinkers may tend to be young, but who does the
and events. buying, who makes the decision and who pays? This
Target marketing involves the division of a large is the DMU.
market into smaller market segments. Each segment
has its own distinct needs and/or its patterns of
response to varying marketing mixes. The most Targeting pays dividends: from
attractive segments are targeted according to the £50 to £50m for a Rembrandt
organization’s resources.
Some communication channels are more waste-
A painting by Rembrandt probably would not
ful than others, eg TV, but the Target Group Index
sell (even for £50) in the wrong target market,
(TGI) (see Chapter 6) helps to identify what kinds
whereas in the right target market it might fetch
of brands people buy, the papers they read, the pro-
grammes they watch, etc. As mass markets frag- £50 million.
ment and splinter into mini-markets or segments,
and technology provides more tailored communi-
cations, there is less requirement for mass market-
ing and mass communications, although we are Decision-making units
seeing the emergence of ‘one-to-one mass market- The DMU is made up of influencers, advisers, de-
ing’ with automated chatbots (p 169) and auto- ciders, users, buyers and payers. It applies to all
mated personalized marketing content (p 167). types of markets (industrial, consumer, products
Data aggregators are finding new ways to profile and services). A baby’s pram may be used by mother
and target prospects with the clever use of AI on and child, bought by the mother and father, influ-
massive amounts of data. enced by the grandmother, and decided on by the
whole family. Similarly, the purchase of a new
Segment attractiveness ­photocopier may have been instigated by a secre-
Ideally, segments should satisfy the following criteria: tary, the decider may be the financial director; the
buyer may be the procurement officer. In some or-
●● Measurable. Is it quantifiable? Can buyers ganizations the DMU may be a committee. The ac-
who fall into this category or segment be ronym SPADE (starter, payer, adviser, decider, end
identified? user) helps to identify some of the DMU members.
●● Substantial. How many buyers fall into this See p 114 for alternative acronym, PAGES. There is
segment? Is there a sufficient number of also the ‘gatekeeper’, who has the power to pass a
buyers in the segment to warrant special message on to more senior executives.
attention and targeting?
Accessible. Can this group be contacted?
●●
Can they be isolated or separated from other
B2C (consumer) segments
non-targeted markets via specific media and Segmenting markets into groups of buyers and tar-
distribution channels? geting those groups that are more likely to be the
●● Relevant. The benefits of the product or best customers are absolutely vital if marketing
service being offered must be relevant to the communications are to be both effective and effi-
target customer. cient. Markets can be broken into segments using
many different criteria. Here are some typical con-
Some segments are obvious. Cat food is bought by sumer criteria:
cat owners, petrol is bought by motorists, and
heavy-duty cranes are bought by both large con- ●● demographics: age; job type (socio-economic
struction companies and leasing companies. Other groupings);
segments are less obvious, eg less expensive cars are ●● geodemographics: geographical location,
bought by both low-income groups and high-­income type of neighbourhood and demographic
groups (as a second or third car). Who are the heavy data;
 9 | The Marketing Communications Plan 267

●● psychographics: attitudes, beliefs, VALS

(values, attitudes and lifestyles, see ‘The
How can you target frequent flyers
Target Group Index’ on p 195); who might take a train instead?
●● behavioural: benefits sought (see ‘The
‘If you are trying to sell train tickets to frequent
toothpaste test’ on p 117); usage frequency;
readiness to buy; loyal vs non-loyal. flyers from London to Edinburgh, who are the
ideal prospects? Your ability to ask great
The biggest improvements in segmenting and tar- questions, find databases and interrogate them
geting are coming from digital sources, aggregators, in new ways to profile prospects is a great skill.
social media platforms and new third-party data Stop and think for a moment.
companies. Facebook can now offer several hun- How about asking data owners of major
dred segmentation criteria or ‘filters’ to tighten your mobile networks (eg WEVE) to find “mobile
targeting including: location, interests (business,
users who disappear in Heathrow and reappear
hobbies, relationships, technology, fitness, food and
in Edinburgh in the time a flight would take”.
drink, entertainment, sports, shopping and fashion),
Then segment these travellers and promote
behaviours (travel, mobile device, digital activities),
highly relevant offers via their mobiles. Add a
demographics (age, gender, language, education,
mobile commerce component enabling
generation, work, relationships) and a lot more. For
the full list see ‘How to target very very specific au- prospects to directly purchase a rail ticket, or
diences on facebook’, https://prsmith.org/blog/. just wave their smartphone at the ticket counter
or transport kiosk. NB Check GDPR compliance.’
PR Smith (2015)
B2B (industrial) segments
In industrial markets and business-to-business mar-
kets, segmentation criteria are different but none-
theless vital. Here are some commonly used Floating targets
segmentation criteria for industrial markets:
●● type of company (standard industrial Many markets have a floating percentage who
code – SIC); move in and out of the market, eg insurance is
considered to be dull and boring (a ‘distress
●● size of company;
purchase’) and if customers (reluctantly) review
●● structure of company (autocratic vs insurance suppliers, say, every four years, then
centralized); you have only got 25 per cent of the market active
●● location or geographical area; each year. Divide this by 12 months and you have
●● heavy or light users; only got approximately 2 per cent of the market
●● existing suppliers; active in any particular month. So, instead of
advertising specific product benefits many brands
●● benefits sought;
just want to maintain awareness levels, so that
●● title or position of key decision makers. they are at least considered when the customer
Many marketers now create their own target lists of becomes ready to buy.
prospects, eg from visitors that land on a website
added to a list (without their name but just a nu-
merical identifier) and subsequently used in remar-
keting ad campaigns, when they visit other websites. Segmentation requires careful
Or their digital body language (see p 329) identifies
each visitor having a particular level of interest (or
analysis
readiness to buy), derived from their click behaviour. In reality, all the target customers rarely fall neatly
Marketing automation is increasingly being used to into one single segment, eg surprisingly, more than
automatically send alerts, emails, or trigger telephone half of The Sun newspaper’s customers might be
calls from sales professionals to offer help to visitors. ABC1s (white collar workers) and less than half
 268 Part One | Communications Background and Theories

might be C2DEs (blue collar workers). However, a small number of factors

sophisticated technology can help the marketer tar- prior to a challenge.
get using new variables, eg your ‘likes’, comments, Much computation brings triumph.
hashtagged discussions as well as the usual age, in- Little computation brings defeat.
come and geographic criteria. How much more so with no computation at all.
By observing only this,
I can see triumph or defeat.
Does a gap in the market equal
a market in the gap?
‘Much computation’ or much analysis is required.
If 85 per cent of the world’s tea drinkers like hot tea The better the analysis, the easier the decisions
and 15 per cent of the world’s tea drinkers like iced will be later. Decisions about strategy and
tea, it doesn’t necessarily mean that there is a tactics become a lot easier when you know your
screaming gap for lukewarm tea. customers, your competitors, your competencies
Objectives can cover a variety of goals. It is and resources as well as market trends. That’s why
useful to separate marketing objectives from half your plan should be devoted to the situation
marketing communications objectives. Detailed, analysis. It doesn’t have to be at the front of the
specific objectives ensure that the subsequent plan (you can dump a lot of it in the appendices)
but the detailed analysis must be carried out if you
choice of strategy is clearly focused.
are to succeed.
Smith (2015)
Hence almost half of the marketing communica-
Situation analysis requires more tions plan should be devoted to the situation
analy­sis. The first year you do this analysis it will
than just a customer analysis be particularly challenging, but as you find better
An in-depth analysis of customers (Who? Why? and (and often free) resources for highly relevant in-
How?), competitors, distribution channels, the or- formation, it gets easier, the intelligent informa-
ganization’s own performance/results, strengths tion gets stronger and consequently, you make
and weaknesses as well as external trends (that cre- better-informed decisions. This ultimately boosts
ate opportunities and threats), is required. your results.
Arguably the greatest marketing book ever, The
Art of War, was written over 2,000 years ago by the
Chinese military strategist Sun Tzu (translated by
Wing, 1989). Sun Tzu emphasizes the importance of Objectives
a comprehensive situation analysis. Most senior
marketers have a copy of it on their shelves. It is a After analysing the situation (‘where we are now’),
classic read. Interestingly, confrontation, or war, is we can start setting sensible objectives (to deter-
seen as a last resort and the best military strategies mine ‘where do we want to go?’). We have a mis-
win the war without any bloodshed. They win wars sion, a vision and KPIs.
through intelligence.
Sun Tzu effectively confirms why the situation
analysis needs to be comprehensive. Here’s an Mission
excerpt from this masterpiece: As well as defining what business you are in, your
Those who triumph, mission is your raison d’être; the reason your or-
compute at their headquarters ganization exists. It is a selfless statement about how
a great number of factors you make the world a better place – how you ulti-
prior to a challenge. mately help customers and stakeholders. It should
also demonstrate some corporate social responsibil-
Those who are defeated, ity while giving strategic direction for the organiza-
compute at their headquarters
tion. Google’s mission statement ‘to organize the
 9 | The Marketing Communications Plan 269

world’s information and make it universally acces- ‘If you don’t stand for something you’re dead; it’s
sible and useful’ makes a lot of sense. Mission over- just a question of when.’
laps with a sense of purpose; eg Kellogg food Sisodia et al (2014)
company is ‘Nourishing families so they can flourish
World-Class companies profit from passion and
and thrive’, while the insurance company IAG ‘helps
people manage risk and recover from the hardship purpose. They endear themselves to customers and
of unexpected loss’ (Kenny, 2014). communities. These companies are what Sisodia
et al (2014) call ‘firms of endearment’. Remember
in Chapter 1 we said:

A man on the moon ●● In 10 years, ‘firms of endearment’ grew

collectively at a rate of 1,000 per cent +
‘When John F Kennedy visited NASA he met a ●● In 10 years, Standard & Poor’s 500 companies
janitor and asked him what he did. The janitor grew collectively at a rate of 122 per cent
said “I’m helping to put a man on the moon”. A
strong mission delivers a greater shared sense
of purpose for all staff.’
PR Smith (2019) Key performance indicators
Ideally KPI objectives should be quantified in terms of
success or failure criteria. Timescales should also be
set. Clearly defined objectives make the management
Vision task of control much easier. Drawing up objectives for
the first time is a difficult task. In future years, the pre-
A vision statement is more selfish, as it is more vious year’s objectives and corresponding results will
about the organization (as opposed to a mission help to make the planning job a little easier, as every-
statement, which is more customer/community ori- one has a better idea of what is realistic and what is
entated). A vision states where the organization sees not. Establishing clear objectives is necessary to give a
itself in three, five or ten years’ time. Imagine writ- focus to the organization or division. Clear objectives
ing a headline in The New York Times or the FT for also give direction to subsequent creative efforts. Some
your business: ‘XYZ is the number one company in marketing managers and agencies break objectives
the world (or Asia, Europe, China, London or into many different types; other marketers use just one
Beijing, etc).’ So the vision sets major goals for how set of objectives (and sometimes without quantifica-
successful your organization will be in the future. tion or numbers attached). As a discipline it is useful to
This includes size of turnover, size of organization, break up objectives so that performance can be meas-
size of market share, local, national or global, posi- ured more accurately. Objectives should be SMART:
tion in the market place (number 1, 2 or 3).
S specific;
M measurable;
What is your sense of purpose? A actionable;
R realistic;
‘A sense of purpose at work is important – partly
because customers like to buy brands that T time specific.
stand for something and partly because Two types of objectives are examined here: market-
employees like to work for an organization that ing objectives and communications objectives.
stands for something more than just making
money. Something deeper.’
PR Smith (2019) Marketing objectives
See Chapter 1, p 6, for more on ‘sense of purpose’, Typical marketing objectives refer to sales, market
including how ‘firms of endearment’ outgrow the share, distribution penetration, launching a number
S&P’s excellent companies by eight times. of new products, and so on. For example, market-
ing objectives might be:
 270 Part One | Communications Background and Theories

●● to increase unit sales of product/brand X by Here are some examples of communications ­objectives:
10 per cent over the next 12 months;
●● to increase awareness from 35 per cent to 50
●● to increase market share by 5 per cent over per cent within eight weeks of the campaign
the next 12 months; launch among 25- to 45-year-old ABC1
●● to generate 500 new enquiries each month; women;
●● to increase distribution penetration from 25 ●● to position the service as the friendliest on
per cent to 50 per cent within 12 months; the market within a 12-month period among
●● to establish a network of distributors 70 per cent of heavy chocolate users;
covering Germany, France, the Netherlands ●● to reposition Guinness from an old,
and Italy during the first six months, unfashionable, older man’s drink to a
followed by Switzerland, Austria, Belgium fashionable younger person’s drink over two
and Luxembourg in the second six months. years among all 25- to 45-year-old male
drinkers;
It is worth noting that not all marketing objectives
are growth orientated. In Denmark, electricity ●● to maintain brand X as the preferred brand
boards no longer pride themselves on how much (or number one brand) of photocopiers
electricity they sell but on how little. Product among at least 50 per cent of current UK
withdrawals are another example where objec- buyers in companies with 1,000-plus
tives are not attached to year-on-year growth. In employees;
very competitive mature markets, with new en- ●● to include Bulgarian wines in the repertoire
trants appearing on the market, maintaining mar- of possible wine purchases among 20 per
ket share and consolidating sales might be more cent of ABC1 wine buyers in London within
appropriate than expecting big growth. Given that 12 months;
marketing is shifting towards retention of profit- ●● to support the launch of a new shop by
able customers and deselection of unprofitable generating 50 per cent awareness in the
customers, the emphasis in some companies has immediate community one week before the
moved from growth in turnover or sales to growth launch;
in profit or ROI.
●● to announce a sale and create 70 per cent
awareness one day before the sale starts.
Communications objectives
These typically refer to how the communications The KPI pyramid
should affect the mind of the target audience, eg
The KPI pyramid attempts to categorize various ob-
generate awareness, attitudes, interest or trial.
jectives into those that the C suite or board of direc-
Again, these tend to be most useful when quantified.
tors would want to see versus those that perhaps a
DAGMAR (defining advertising goals for measur-
marketing manager might need to see versus those
ing advertising responses) and AIDA (attention,
the operational marketing team might need to see
­interest, desire, action) provide yardsticks for com-
(Figure 9.2). Although a pyramid, it is not written in
munications objectives by trying to separate the
stone, so feel free to move certain objectives into
various mental stages a buyer goes through before
different categories. Now we can turn the pyramid
buying. (DAGMAR is discussed in Chapter 4.)
upside down to create a funnel – starting with visi-
The mental stages suggested by DAGMAR and
tors entering the website, a percentage, moving on
AIDA are as follows:
to become prospects and eventually a percentage
converting to customers.
DAGMAR AIDA
Figure 9.3 shows a more typical sales funnel,
Unawareness –
with a percentage of visitors moving on to become
Awareness Attention
prospects/leads, of whom a percentage move on
Comprehension Interest
down to become hot prospects and, finally, a per-
Conviction Desire
centage convert by buying/becoming customers.
Action Action
F I G U R E 9.2 (a) The KPI pyramid. (b) The KPI pyramid upside down = the sales funnel
Objectives
The KPI pyramid

Site visits
ROI Unique visitors
Sales; (referral/traffic source)
Primary objectives
Market share;
C suite report
Bounce rate
Acquisition vs
retention Duration
NPS; Sentiment Page views (+top pages)
score Downloads
Visits; Visitors; Conversion rates; Likes/Favourites
Secondary objectives Subscribers/Customers; Enquiries;
Shares
Managerial reports Orders;
Qualified leads; Cost per visitor; Comments/Prints
Cost per lead; Cost per order/cost per Registrations
customer acquired
Sentiment + NPS
Page views; Duration; Key phrases;
Email enquiries
User objectives Top content; Top landing pages; Top referrers;
RFP requests
Analytics team A/B tests; Page rank;
Sales
Engagement: Followers/Likes/+1s; Comments; Shares ROI
Cost per visitor; Cost per like

(a) (b)

271
 272 Part One | Communications Background and Theories

F I G U R E 9.3 A simple sales funnel ever discussed, strategy must be crystal clear about
both positioning and target markets – just two of
nine strategic components we will discuss. One
Visitors aide-mémoire for the components of marketing
communications strategy we shall borrow is the
TOPPP SEED acronym taken from the ‘SOSTAC®
Prospects/Leads guide to your perfect digital marketing plan’ (Smith,
2019). Before exploring all nine components let us
Qualified leads explore the two key components: targeting and po-
(hot prospects)
sitioning (and value propositions).
Target markets means breaking markets into
Customers segments and carefully selecting the right segments
to target, ie targeting the ‘low hanging fruit’. These
are the customers that you can easily reach and who
really want your product or service.
Many criticize the sales funnel as being out of date, Don’t forget that your existing customers are a
over-simplified and excluding what happens after very hot target market and should never be forgot-
an initial sale is made. Indeed, the first sale is just ten or treated as second-class customers.
the beginning of what marketers want to convert Positioning means how you want to be perceived
into a lifetime relationship, so there is a lot more to or positioned in the minds of your target market –
do. However, it is useful and easy to agree objectives you want to be positioned where there is a real cus-
re how many visitors, prospects, hot prospects and tomer need and, ideally, little competition.
customers for each quarter. Two repositioning examples are e-cigarettes and
Intel (also see Figure 9.4 on the repositioning of the
European newspaper). Although seemingly small
and subtle changes, these are big decisions.
Strategy E-cigarette company, Blu-e-cig, want to reposition
their product from:
Strategy summarizes ‘how we get there’ – how the
‘An alternative method to give up smoking’
objectives will be achieved. Strategy subsequently
drives all the tactics in the same direction. Strategy to:
summarizes tactics. Communications strategy helps
‘A lifestyle choice for smokers’
to harmonize and integrate all of the tactical com-
munications tools. Communications strategy can Jacob Fuller, CEO of Blu-e-cig, said, ‘Our biggest
include selection of target markets, positioning, se- mistake was to call it an e-cigarette – an alternative
quence of communications tools (are different tools method to give up smoking’ (Benady, 2014).
used at different stages?), and more. Another example of ‘repositioning’ is Intel, who
made a bold strategic decision to change their posi-
tioning from:
Most of us are afraid of strategy... ‘High-quality technology products’

‘...because we don’t feel confident outlining one to:

unless we’re sure it’s going to work.’ ‘Leader in technology breakthroughs’
Godin (2009)
Intel’s strategy is to position itself as a leader in
technology breakthroughs, targeting Generation Y
by associating Intel with innovation in music, art
Marketing communications strategies are hard to and lifestyle, using social media to leverage offline
find. Often the strategy is retrospective in so far as real events. This is a major strategic decision that
the tactics are mistakenly planned first, and later, a will drive all of their tactics, including: developing
strategy is created to try to summarize all of the an online community forum called IT Galaxy; a
tactics. This is not strategy. Before any tactics are B2B game, outdoor 3D projections; partnering with
 9 | The Marketing Communications Plan 273

F I G U R E 9.4  Repositioning the European newspaper from a medium-quality newspaper

to an upmarket European newspaper
European business news

Low-quality High-quality
mass market upmarket

General European news

F I G U R E 9.5 Watch the ‘Museum of Me’ video on YouTube

SOURCE: Used with kind permission

edgy magazine Vice to launch The Creators Project So, strategy drives tactics (not the other way
and Facebook app The Museum of Me (Figure 9.5); around).
appointed will.i.am of the band Black Eyed Peas as Just before we move onto the nine components
Director of Creative Innovation; Google search, TV of digital marketing, it is worth clarifying how ‘posi-
ads, social media, PR and training (for store assis- tioning’ directly influences your value proposition
tants and re-sellers). (VP). Your VP ultimately answers your potential
customer’s question ‘What’s in it for me?’ Do your
 274 Part One | Communications Background and Theories

website, your content and your social media plat- 5 Convenience (24/7/365 ‘live’ help when the
forms all express a clear and immediate VP? intelligent bots get going).
6 Cost reduction (no middleman therefore
cheaper?).
Your value proposition
You can see some overlap with Michael Porter’s
A company website offers great opportunities to (1985) now classic three growth strategies: (a) com-
offer added value to the customer experience that peting on cost, (b) differentiated products or (c) tar-
simply isn’t available offline. This added value can geting niche segments.
vary from new types of content to entertain or to
inform (eg how to use your products), to new types
of interactive services like a customer community Part of ongoing integrated
or some ‘sizzle’ like the Sistine Chapel digital expe- communications
rience (see p 10). Many businesses miss out on the Your VP should be developed around your audience
opportunity of adding digital value to physical personas, support commercial goals and be commu-
products and services (not just online products nicated as part of ongoing integrated communica-
and services). tions to encourage prospects to experience this
value. The VP can only be developed after the posi-
Positioning tioning has been decided.
Your value proposition is closely tied to your Targeting and positioning are just two of the
brand’s positioning, which answers questions such nine key components of digital marketing strategy.
as: Who are we? What do we offer? What makes us Let’s explore all nine components of a marketing
different? And the customer’s crunch question: communications strategy.
What’s in it for me? Which needs to be answered
within seconds of landing on a website, looking at
an ad or a shop window. TOPPP SEED components of digital
marketing strategy
VP is more than just selling Here are nine key components to consider when
Your VP is more than just a selling proposition, building your digital marketing strategy. You do
since it shows what you can offer by way of con- not have to use all the key components. In fact,
tent, products, services and experiences to engage the strategy excerpts I’ll show you later only in-
online customers. The VP extends this difference in clude a selection of these components. You may
that it identifies the reasons why customers will find some components overlap/integrate. This is
click on, return to, register or buy from your site good. Your strategy doesn’t have to be in the
and, ideally, feel motivated enough to share their same order as TOPPP SEED. Feel free to move the
experience. components around to suit your strategy. Now
let’s consider each of the nine components to help
you to build a crystal-clear digital marketing
VP communicates six customer
strategy.
benefits (6Cs)
●● Target markets (essential).
VPs should communicate at least one of the 6Cs:
●● Objectives (summarize what objectives the
1 Choice: (a) wider range; (b) product strategy will fulfil).
differentiation (added features); (c)
●● Positioning (essential).
specialized service (niche customers).
●● Processes (new processes like a new CRM
2 Content (relevant, added value content at the
system or a new marketing automation
right time in the right place).
system or AI).
3 Customization (personalization of products/
●● Partnership (strategic alliances, co-marketing
services or content) for individuals or groups.
or marketing marriages can make marketing
4 Community (customer forums exchanging more cost effective).
tips, ideas, experiences or troubleshooting).
 9 | The Marketing Communications Plan 275

●● Sequence or stages (eg pilot campaign, then means precisely how you want to be posi-
roll out in region 1, 2 and 3; or a sequence of tioned (or perceived) in the minds of your target
tactical tools, eg advertising followed by a ­customers.
sales drive). Positioning is the foundation for brand proposi-
●● Experience (does the strategy support the tions (what’s in it for the customer) and ultimately,
right customer experience?). the CX. In fact, defining the brand, the VP and the
CX are part of strategy. VP and CX also influence
●● Engagement (what level of the Ladder of
the marketing mix (tactical decisions), eg exclusive
Customer Engagement is required?).
products online; differential pricing; exclusive
●● Data (can data be used to add value, or online promotions; prioritizing which channels;
target new customers? This may overlap with online distribution partners, etc. See ‘Tactics’, p 280,
‘processes’ – major opportunity here). for more.
Let’s take a look at each of these briefly.

Target markets The classic repositioning case:

Target markets need to be defined very clearly.
From sick child to healthy adult
Today we have many new variables (or filters) to
help marketers identify targets. Time and effort Lucozade repositioned itself from a ‘sick child’s
spent carefully analysing and discussing who is/are drink’ to a ‘healthy adult’s drink’. They followed the
the most ideal target market/s is time well spent. market trends: the demographic shift from a
The more detailed target customer profiles, the eas- massive child market (Baby Boom) in the 1960s to
ier it is to find the customers. a bulging 40-year-old market in the noughties
We can now add digital behaviour to many other (2000s). They also followed the trend towards
variables. We can target people who visited certain ‘healthy living’. This repositioning strategy drives
websites, used different apps, liked, shared or com- changes across all of the marketing mix tactics
mented on different topics. Lists can be created for from chemist shop distribution and ‘mother and
retargeting. This is in addition to the traditional child’ ads to sports celebrity ads and Coca-Cola
approaches to targeting (geographic, demographic, style distribution into shops, restaurants and
psychographic and behaviouristic). See Chapter 12 offices.
on advertising for more.

Objectives
It is always worth double-checking that your strat-
Processes
egy actually supports the ‘big’ objectives (mission If you are introducing a new approach, a new pro-
and vision) as well as the target sales, market share cess, a system or even a new way of thinking, this
and ROI. Strategy without reference to objectives is can be strategic, eg introducing marketing automa-
unlikely to achieve those objectives. Hence some or- tion or adding AI chatbots to your customer ser-
ganizations want to see the main objectives referred vice channels, or working with new IoT partners,
to when presenting their strategies. or insisting on analytics driven decisions, or nur-
Decide which is a priority objective – customer turing a ‘constant beta culture’ (constant A/B test-
acquisition or customer retention. Or perhaps it’s a ing/optimization of web pages, emails and ads), or
new market, you’ve no customers and you need to integrating all data from all touchpoints to gener-
first build awareness, followed by preferences ate a real-time (immediately updated) 360 degree
among the target market. customer view to facilitate a personalized and tai-
lored CX.
These are significantly new processes that will
Positioning disrupt staff, departments and organization struc-
Positioning is so strategic that you really don’t tures. Hence when introduced they are definitely a
want to be changing this each year. Positioning strategic issue.
 276 Part One | Communications Background and Theories

Bezos did not give up. He saw the big picture

WARNING! of making Amazon the world’s largest retailer
and stuck to it. Innovation again was the
Most of these new processes fail! Over 50 per cent key. In order to grow the customer base it was
of new CRM systems fail. See the Actions section necessary to garner greater traction on its online
(p 280), which explains why they fail and how to presence through collaboration with physical
ensure your processes never fail. stores. Thus it partnered with Target, Toys-R-Us,
GAP and 400 other retailers for expanding its
reach. Amazon was back in the picture again
Note: Processes such as programmatic ads, AI per- and it has never looked back since.’
sonalization and marketing automation are also re- Soumya (2017)
ferred to in another strategic component: the Note: Amazon also purchased key online publishers
‘Sequence or stages’ section below. like IMDB.com to market its DVDs and DPReview.
Finally, major new processes will probably com to encourage the purchase of cameras from
require reallocating your team to some different
Amazon by people comparing cameras). Amazon
jobs. Do you need a new marketing team structure
have also got over 900,000 affiliate partnership
or employ external agencies to manage the process
arrangements in place.
of marketing? Either way, internal marketing (com-
munication, motivation and training) will be
required. See the ‘Actions’ section (p 280) for more
on internal marketing. Selecting the right partner can firstly give you access to
a much bigger target market, and secondly strengthen
Partnerships (and collaborations) your brand. But remember partnerships have to bene-
fit both parties, with clear goals, roles and responsi-
Partnership – introducing, strengthening or reduc-
bilities – the devil is, most definitely, in the detail.
ing strategic partnership/marketing marriages/mar-
keting alliances – is part of strategy. Are there
partners out there that can extend (a) your reach or Sequence or stages
(b) your product portfolio? Certainly, IoT is al- Stage 1, using advertising, sponsorship and PR to
ready creating new partnership opportunities to generate awareness, can be followed by an email
communicate with your target audience via com- drive, followed by a sales conversion drive online
pletely different partners who have access to them, and offline. Another type of sequence would be a
eg domestic refrigerator companies promoting pilot campaign, followed by rolling out the cam-
beer, or vacuum cleaning equipment promoting a paign in region 1, 2 and 3. Another sequence is de-
particular type of carpet cleaner (if it detects a stain rived from AIDA (building attention/awareness,
on a carpet). interest, desire and action/buy) as a series of stages:
Are there potential partners out there whose
customers would welcome your organi­ zation’s 1 Develop credibility before raising visibility
products or services (including your content mar- It is so important that we thought we’d
keting)? mention it again! How many major TV ad
campaigns or content marketing and social
media platforms drive traffic to websites or
apps that don’t work?
Partnership strategy worked for Amazon 2 Customer acquisition vs customer retention
Obviously, retention can only come after
‘The dot-com bubble hit Amazon in year 2000. acquisition. However, you still need to plan
Stock price crashed to $5.97 per share. It for retention. In year 2, perhaps you might
seemed like the end for Amazon due to
spend more on stage 2: retention (than you
previously spent on stage 1: acquisition)?
extremely low investor confidence in the online
marketplace model. 3 Long-term lifetime vs short-term transactional
The long-term view introduces lifetime
customers and lifetime customer experience
 9 | The Marketing Communications Plan 277

(which has many stages). This type of F I G U R E 9.6 Red Bull’s content supports
thinking changes everything and ensures a
more strategic approach.
both what their customers want and their
4 Map out the customer lifecycle journey…
brand values
… and then deploy processes such as
automated, always-on communications like
programmatic ads to build awareness,
AI-based personalization to improve
conversions and marketing automation to
nurture customer relations by delivering more
relevant messages via email, app and website.
Adapted from Dave Chaffey

Experience (the CX)

Defining what kind of customer experience you
want your customers to have is at the heart of your
strategy. Personalized, real-time, fast and efficient or
fun, relaxing and enjoyable? You must decide.
The CX establishes the brand experience, which
needs to be clearly defined:
●● Is your CX a one-off CX or a lifetime CX?
●● Can you deliver the perfect lifetime CX?
●● Can AI help your CX?
●● Should the CX be personalized and available
in real time?
Content marketing is part of the CX. Can you de-
liver a stream of relevant added-value content that
your customers will appreciate? Can you do this bet- SOURCE: Red Bull
ter than competition? Can you deliver it in real time?
Content marketing could be the lead component in What a brand says about itself is less important
your marketing strategy, but remember it’s competi- than the actual experience the brand delivers to its
tive out there and there’s a lot of other content com- customers across all touchpoints. So, although posi-
peting for your customers’ shortened attention tioning and brand propositions are important, they
spans. See Chapter 15 for more on content market- are less important than the actual CX.
ing. Red Bull’s content is simply excellent and now The CX needs to be managed across functions,
adds to the overall CX from Red Bull (Figure 9.6). by all staff online and offline.

Costco vs Apple CX Can you become the expert Wikipedia?

Costco customers expect bare-bones service in For your industry or topic, whether it is Red Bull or
return for low prices, while Apple customers B2B widgets?
expect high-quality innovative products at relatively
high prices. Those are very different customer
experiences, but they both delight customers (Band
and Hagen, 2011). And they are delivered to Engagement
customers consistently online and offline. There are different levels of visitor engagement,
from encouraging visitors and customers to give
 278 Part One | Communications Background and Theories

ratings and reviews to nurturing advocates to col-

laborating and co-creating ideas and products. This Download a complete chapter about engagement
is the Ladder of Engagement, starting with low- from the ‘Welcome’ tab on PR Smith Marketing’s
level engagement (ratings and reviews) and at the Facebook page.
top of the ladder is collaborative co-creation
(Figure 9.7).
Remember that not everyone wants to engage all
the time, sometimes visitors just want to complete a Data
task, find some information or just buy something The last of the TOPPP SEED components of strat-
and leave your site. So, don’t ignore the basics of egy, yet some would say the most important.
properly tested, quick, easy-to-use websites and Remember, TOPPP SEED is not in any order of im-
apps. It may well be the 90:9:1 ratio that applies – portance, it is just an acronym to help you think
90 per cent of your visitors/customers will just lurk about various aspects of strategy. Your strategy
and watch (but not engage), while 9 per cent (if you could be led by the way you decide to use data to
are lucky) will engage with ratings, reviews and add value to the CX or access customers’ attention.
possible comments/discussions, while 1 per cent Integrating customer data online and offline is a
will be prepared to engage in what we call ‘collabo- strategic decision. Integrating customer/visitor data
rative co-creation’. from the marketing automation sales funnel (click
Now this is strategic and it takes time to set up behaviour/digital body language), to registration data,
1) communications systems (to acknowledge receipt to social media data to CRM, which includes purchase
and acceptance/rejection of ideas; 2) legal systems behaviour, to post-purchase data (including com-
(to clearly state who owns the IPR (intellectual plaints) is a worthwhile challenge for all marketers.
property rights) if visitors and customers are shar- After that you can layer it with external data
ing ideas for say new products or new features; 3) from third-party databases.
financial systems to pay people if you promise to
pay them a fee, a winning prize or a royalty. Having social data as well as a complete history
If any of these three systems are not working of your leads’ and customers’ activity in one place
perfectly, customers/visitors will get upset and is invaluable to your company, because it means
you can finally stop wasting time on what doesn’t
quite quickly your ladder starts damaging your
work, as well as equipping your sales team with
brand reputation. The Ladder of Loyalty can effec-
the information to help them close more deals.
tively restructure a business if customers are driv-
Toner (2014)
ing the new products, etc. So the Ladder of
Engagement is strategic and requires careful plan- You must give an integrated 360-degree customer
ning in itself. view that brings together each customer’s data from
online (websites, apps, social media, etc) and offline
platforms (telephone, in-store, etc). This means that
F I G U R E 9.7 The Ladder of Engagement all the processes (already discussed) must be inte-
grated so data can flow between them to ensure a
single 360-degree view of the customer.
Learn to ask questions of your data.

Three great data questions

1 Can you integrate your data?

2 How can data add value to the perfect lifetime

CX – to help customers to ‘get the job done’?

3 Can you extract more value from data – can you

use your data to profile customers better or to
help customers better?
 9 | The Marketing Communications Plan 279

continual delivery of user-generated content to sat-

WARNING! Bad or incomplete or isfy the growing global network of schools, clubs,
unintegrated data damages your business coaches and ambassadors.

Data is the world’s most valuable resource. But,

equally, bad or incomplete data can damage your
Red Bull
brand permanently – late data, unintegrated data, Red Bull created a new category of ‘non-soda en-
repeat data requests, incomplete customer data ergy drinks’ targeting burned-out high schools and
(eg they complained via Twitter but no one in the
college students, firstly by initially quietly convert-
ing America’s youth into devoted, enthusiastic cus-
sales department knows that this customer is
tomers, building an anti-brand via brand evangelists’
unhappy). So develop an interest in the many
word-of mouth (rather than expensive, older-­
different digital marketing tools and how they
fashioned mass marketing ad campaigns). Red Bull
integrate data.
is positioned as a revitalizing drink (for both body
and mind); consumer-educators drive around in
shiny silver off-roaders with giant, phallic cans of
Red Bull strapped to the back, giving out free cans
Sample strategy excerpts (they also give student representatives free cases
and encourage the kids to throw a party). Red Bull
Here are four examples of strategy excerpts. These ex-
sponsor extreme sports events which reinforce the
cerpts overlap with the broader marketing s­ trategies.
brand positioning of ‘strong mental and physical
performance’ and gives them access to produce and
Uber manage a stream of high-quality action sports, and
Uber’s algorithms use data and devices to create a youth culture-oriented content that spans web, so-
service (product) that improves the CX by reducing cial, film, tablet, print, music and TV.
the customer’s ‘cognitive load’, reducing searching,
reducing waiting time, reducing prices for any cus- Avon
tomer who needs a taxi, all done via a clever app.
Avon’s new strategy is to turn its existing business
Uber wants to be seen (positioned) as a ‘personal
model into a ‘modern, high-touch and high-tech or-
drive from any point at any time’ (for customers)
ganization’ by mixing the best marketing communi-
and also a ‘business/hobby driving people for
cation techniques of a consumer goods company,
money’ (for drivers). For governments, Uber wanted
with the social selling tradition Avon pioneered.
to be seen as a data company rather than a trans-
Avon has teamed up with the creative production
port company (however, the EU has ruled it is a
company MediaMonks to develop and distribute
transport company). Uber has an aggressive growth
high-quality brand and product content at scale
strategy related to spending to: (a) get new custom-
(more than five million people’s worth of scale,
ers and (b) enter new markets.
across 50 countries). Going live in March across
Brazil, Mexico and Russia, the ‘always-on’ content
The Great Sportsmanship hub will develop 12,000 images, videos, gifs and
programme pieces of gamified content annually for use across
Avon’s 50 markets. Multi-language and multi-­
Repositioned from a book (targeted at sports fans in
platform, the content will be delivered weekly to its
the UK and Ireland) to an edutainment programme
network of representatives. Avon reps will become
packed with inspirational true two-minute sports-
‘micro-influencers’ who create content and post it
manship stories targeting youths with challenges
themselves, allowing the brand to ‘let go of control
from Ireland, the UK and the UAE via the most pop-
a little bit’. A brand framework, tone, look and feel
ular social media platforms and to help (a) coaches/
(brand guide) is shared so that all sales representa-
trainers and influencers to guide their groups
tives create ‘hyper-localized’ content that fits the nu-
through the resources available online and (b) help
ances of their specific markets.
youths to self-select their level of engagement for the
 280 Part One | Communications Background and Theories

The three priorities are to 1) convert awareness to and whether the work will be done in-house (and
relevance, 2) create a real-world perception of Avon whether upskilling is required) or out of house via
quality products and then 3) communicate that. agencies and consultancies.
The Tactics Matrix (Figure 9.9) is designed to
help to discuss and ultimately choose which tactical
There is no one single approach tools are most useful at various stages of the custom-
Remember, TOPPP SEED is not in a linear sequence; ers’ buying process. The matrix helps marketers to
eg your strategy can start with data if you prefer. consider, discuss and eventually choose a particular
There is no one single approach to building market- tactical tool to achieve a specific objective. This
ing communications strategies. In fact many com- matrix is work in progress and designed to stimulate
panies do not put them together at all. A good discussion.
communications strategy helps to keep all the sub-
sequent tactical communications tools integrated
and moving in the same direction, delivering bigger
Social media tactical function
impacts and reducing costs. A simple way to prac- is changing
tise writing marketing communications strategies is
Although social media is a tactical communications
to generate several alternative strategies, so that
tool, way back in 2008 a Marketing Sherpa study
strategic options can be considered. Many strategies
found that the vast majority of those surveyed rated
will not use all nine components, but you most cer-
social media marketing effective at influencing
tainly should consider each of the nine components
brand reputation, increasing awareness and improv-
to see if it helps you to achieve the objectives you
ing search rankings and site traffic. Although many
have set for your organization.
organizations have a corporate blog or Facebook
page, few have strategies in place and even fewer
have written social media policies. In fact, only 33
per cent of larger firms had a written policy to man-
WARNING! age brand communications, and a mere 13 per cent
of smaller businesses had a written policy (eMar-
‘There’s no point rowing harder, keter, 2009). Fast forward to today and the excellent
if you are rowing in the wrong direction.’ companies not only have content ‘strategies’ and
Kenichi Ohmae social media ‘strategies’, they also use social media
as both a listening tool (re conversations about their
product/customers/competitors/market) and, far
more interestingly, as a source of future communica-
tions. Consider how organizations collect particular
Tactics hashtag comments and then return those comments
to the individuals with tailor-made video content
Tactics are the details of strategy. In a full market- (see also p 505, British Heart Foundation, and the
ing plan, tactics are the marketing mix (product, videos on www.prsmith.org/blog).
price, place, promotion, people, processes and Part 2 of this book addresses 11 tactical com-
physical evidence). In a marketing communications munications tools in great detail. So let us move on
plan, tactics are the ‘promotions’, sometimes called to the forgotten part of most plans. This omission
the promotional mix or the communications mix. causes many plans to fail. Let us explore the ‘actions’
This the selection (or mix) of tactical tools (or section.
channels) such as advertising, PR, direct mail, etc.
The tactics in the marketing communications plan
list what happens, when, for how long, and for
how much. They are often best expressed as a Actions
Gantt chart, as shown in Figure 9.8. The tactics
section describes the themes, types of campaigns Excellent execution of tactics is surprisingly rare.
In fact, execution, or ‘actions’ can often prove to
 9 | The Marketing Communications Plan 281

F I G U R E 9.8 Tactical timings of different communication tools

Jan Feb Mar Apr May Jun Jul Aug £

Advertising
– TV
– Press
– PPC

Social media
– Blog
– YouTube
– Facebook

Website
– SEO
– Inbound links

Sales promotion
– Sample drop
– Competition
– Collection

Direct marketing
– Mailshot
– Telesales

Publicity (and
public relations)

Sponsorship

Exhibitions

Packaging

Point-of-sale and
merchandising

Internet

Word of mouth
– Viral marketing
– CRM NGN

NOTE: This is just a shortlist of some of the tactical tools employed by an organization.

be the weakest link in many businesses’ plans. Internal marketing

Strategy summarizes, and gives direction to,
‘How you are going to get there?’ Tactics are the Internal marketing is like a mini project plan that
details of strategy (communications mix) and ac- covers staff:
tion is the details of tactics – how you ensure ex- ●● motivation;
cellent execution of the plan. Internal marketing
●● communication;
is required.
●● training.
 282 Part One | Communications Background and Theories

F I G U R E 9.9 Tactics Matrix

Many staff resent change (eg a new plan with a new ‘Everything degenerates into work’
way of doing things, such as AI or automation)
being imposed upon them. The excellent companies
(Peter Drucker)
keep anything between 10–15 per cent of their mar-
keting budgets for internal marketing – to ensure That is the bad news. But, taken into context,
staff are capable, motivated and fully understand the Drucker actually said ‘Plans are only good
new plan. intentions unless they immediately degenerate into
The internal marketing section of the plan hard work.’
includes:
●● systems;
Internal marketing is largely about internal commu-
●● processes;
nications and motivation to make sure everyone
●● guidelines; understands what the marketing activities are all
●● checklists. about and everyone knows who has to do what,
when and how. This can include mini action plans
All of these help to ensure high-quality execution.
and even checklists (which reduce the opportunity
for errors) since each tactic is a mini project that
 9 | The Marketing Communications Plan 283

needs professional execution. You don’t have to in- Critical path and project plans
clude all the mini projects in the initial plan. Just be
aware that someone will have to produce a mini A variety of project plans are used here, whether
project plan for, say, an automated marketing pro- critical path or just a Gantt chart. A detailed project
ject linking content, emails, websites, etc. plan is required for each tactical communications
You can add systems, processes, guidelines and tool. For example, the production of a snail mail-
checklists, either into the body of the plan or in the shot (that needs to be printed and mailed) is shown
appendices at the back, or you can simply issue in Figure 9.10.
them later. The actions section of your plan ensures This is just for one mailing. More detailed plan-
your plan has resources to communicate, motivate ning is required if there is a series of mailings. The
and train staff so that they are capable and moti- response handling also needs to be planned care-
vated to execute the plan with excellence and pas- fully. With hybrid and automated marketing sys-
sion. Without internal marketing, many plans fall tems (see Chapter 16), the responses can be routed
over; 50 per cent of new CRM projects fail. The to an inbound telesales team, who filter respondents,
morale, culture, skills of the team is critical; look at rank them in terms of urgency, size and location,
the kind of staff Netflix recruit – they are very and pass the enquiry to a relevant salesperson or
focused on creating and maintaining a particular dispatch further information and update the data-
culture (google ‘Netflix slide deck’). base for future activities. All of this requires careful
planning to ensure sufficient resources are available
to make the strategies and tactics actually happen.
Workers should be allowed to
take whatever vacation time they
feel is appropriate Actions can be boring

‘Facebook’s Sheryl Sandberg has called the A lot of the work involved in delivering an
Netflix slide deck one of the most important excellent CX is boring.
documents ever to come out of Silicon Valley. McGovern (2018)
It’s been viewed more than five million times on … therefore motivation is critical.
the web. Reed Hastings (CEO) and Patty McCord
(Chief Talent Officer) wrote and published
openly on the internet the ‘Netflix culture,
freedom and responsibility’ 125-slides deck – it
included: “Workers should be allowed to take
Control
whatever vacation time they feel is appropriate’. Plans should include a control section – ‘How do you
They wanted to craft a ‘culture of excellence”.’ know you are going to get there?’A good plan speci-
McCord (2014) fies what is going to be measured, how often, by
whom and, most importantly, what you are going to
do with this information. Managers need to know at
In reality, the actions/implementation of the mar- an early stage (rather than when it’s too late) how
keting communications tactics also require an abil- your plan is working or how a particular campaign is
ity to get other people (staff, agencies, printers, etc) running. If it is not working, it should be stopped.
to deliver on time and within budget. Control systems need to be in place to help monitor
any campaigns or activities (see Figure 9.11). This is
where clear objectives can once again help, since they
can usually be broken down into more detailed objec-
‘Culture eats strategy for breakfast’ tives covering shorter periods of time. Once market-
ers are armed with clearly defined, precise objectives,
Peter Drucker is quoted by many as having said money can be spent on measuring performance
this, but no direct citation can be found. against the objectives (whether defined as sales, en-
quiries, awareness, or return on investment, etc).
 284 Part One | Communications Background and Theories

F I G U R E 9.10 An action plan for one communication tool – a mailshot

Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk
1 2 3 4 5 6 7 8 9 10 11 12

Creative brief

List brief

List proposal

Visual concepts

Visuals approved

List order

Final copy/design

Artwork brief

Print quotes

Set artwork proofs

Receive lists

Data preparation

Finished artwork

Printer brief

Printer proofs

Merge purge lists

Print

Computer bureau output files

Live laser proofs

Mail house brief

Print delivery

Laser print letter

Mail house delivery

Mail house sort/enclose

Mail
 9 | The Marketing Communications Plan 285

Marketers can now measure and compare all ac- ●● net promoter score, satisfaction score and
tivities: inbound (social media campaigns) and out- recommendation score;
bound marketing (ad campaigns), online and ●● reputation/social conversation scores (social
offline. If a campaign is focused on boosting brand media monitoring);
awareness or repositioning a brand in the mind of
●● return on investment.
the target audience, this can be measured separately
through surveys (offline and online – in fact Note that the figures in Figure 9.11 (control sys-
Facebook offer advertisers a new system to link ac- tems) are inserted when professional marketers
tual offline sales or store visits with online advertis- learn what are realistic conversion ratios of enquir-
ing including measuring awareness, etc). If the ers or website visitors to customers. For example, in
campaign is focused on engagement and/or sales, Figure 9.12, 1 per cent of visitors generated by
this can be easily measured by identifying if visitors, search engine optimization (SEO) convert to cus-
enquirers or customers are emerging from each tomers, while only half of 1 per cent of visitors from
communications tool – assuming the campaign is a viral marketing campaign convert to customers.
focused on generating engagement at some level, eg The figure would probably be higher for visitors
interaction on a website or Facebook page (posting generated from PPC campaigns.
a comment or voting), registering for a newsletter, Consider SEO. In Figure 9.12, it generates
taking a trial or making a purchase. The web ana- 20,000 visitors and costs £20,000. This gives a cost
lytics reveal where visitors are coming from, and per visitor of £1 (£20,000 divided by 20,000 visi-
telesales, reception and sales staff should also al- tors). If the site converts 1 per cent of these visitors
ways log where new enquiries are coming from into customers, then the SEO generates 200 new
(how visitors heard about the business and what customers (1 per cent of 20,000 visitors). The cost
key phrases they used to find the website). per order (CPO) generated by SEO is £100 (£20,000
Cost per order, cost per enquiry and cost per divided by 200 orders).
visitor can be easily calculated. Other variables If a viral marketing piece costs £30,000 (to create
need to be closely monitored, including: and seed) and it generates 20 million players of which
10 per cent click through to the website, this gener-
●● cost per order, cost per customer acquisition
ates 2 million visitors. Say only half of 1 per cent con-
and cost per customer retention;
vert, because many of them are from international

F I G U R E 9.11 Control systems

Quantified Means of Frequency of Accountability Cost Action?

objectives measuring measurement Who does it? How much Who needs
State each Sales analysis; Daily; weekly; does it cost to be alerted
quantified number of monthly; to measure? if significant
objective and responses; quarterly; variances are
its time period surveys annually? found?
 286 Part One | Communications Background and Theories

markets not relevant to this service. This generates TA B L E 9 . 1 Measuring the KPIs
10,000 customer ‘uniques’ (unique visitors). Feel free
to fill in the rest of the figures yourself. KPI Results Objective Results
The table in Figure 9.12 can be extended. You (previous (current (current
can create your own, more accurate, analysis by period) period) period)
adding another column for percentage of visitors
that convert to enquirers (and a percentage of them ROI (return on
eventually convert to customers, and a percentage investment)
of them convert to repeat customers, at which point
the costs decline significantly and large profit mar- Sales
gins emerge). A longer list of tactical communica- - units
tions tools can be added, including different - value
exhibition events, different email campaigns, differ-
ent virals, etc, so that the marketer can see what Market share
works best and ultimately do more of what works - units
and stop what doesn’t. - value
More detailed control systems can be put in
place. See Table 9.1 (taken from PR Smith’s 2019 Market leader
‘SOSTAC® guide to your perfect digital marketing number (in
top 5)
plan’). Here is a more compact control dashboard
starting with ROI, sales and market share and mov-
Awareness
ing down through various KPIs to cost per customer
level (offline
acquisition and then through to NPS, sentiment and
survey)
share of voice.
Preference
level (offline
Some tactical tools/channels survey)
are better than others
NPS score
Remember, some tactical tools (channels) are better (net promoter
at generating awareness (eg banner ads) and some score)
are better at closing sales (email with a sales promo-
tion or a website page with chatbot support). So Sentiment
customer acquisition may not be the prime goal of score
some tools (eg advertising, PR and sponsorship are (incl.
better at building awareness rather than closing competitor
sales). Therefore they may have different criteria comparison)
for success. Be careful not to make decisions, eg to
stop using a certain tactical tool based on the wrong Website/
­criteria. blog:
In fact marketing can be like a football or bas- Unique
ketball match. The ‘assist’ is as important as the visitors
goal. So if you can identify players (or tactical chan- Average
nels) that are part of the customer journey, these duration
may be worth investing more in. Multichannel fun- Subscribers to
nel analysis does just this and helps you to make updates/
better decisions. newsletter
The lifetime value of potential repeat sales of a cus- Leads
tomer can give a truer picture of their real value. generated
Remember, lifetime value can include ‘share of wallet’:
(continued)
 9 | The Marketing Communications Plan 287

TA B L E 9.1 (Continued) TA B L E 9 . 1 (Continued)

KPI Results Objective Results KPI Results Objective Results

(previous (current (current (previous (current (current
period) period) period) period) period) period)

Cost per Most popular

visitor downloads
(website)
Engagement:
Cost per like Downloads
(Facebook)
Engagement:
Cost per lead Likes/
favourites
Cost per
customer Engagement:
acquisition Comments

Engagement:
Cost per
Shares
customer
retention
Engagement:
Registrations/
Database size
newsletter
Prospects/ Churn rate
leads
Conversions
Customers Leads and
sales
Advocates
Sales (all sales)
Influencers
Task
Site visits completion

Unique SCAR
visitors (shopping
cart
Bounce rate abandonment
rate)
Duration
Satisfaction
Page views score
Passive
engagement NPS score

Most popular Sentiment

page(s) score

Share of
(continued) voice
 288
F I G U R E 9.1 2 Cost per order/cost per customer acquisition

Volume of Total CPT/CPM Percentage Unique Cost Conversion Number Cost

people/ cost (cost per CTR (click- visitors per rate of of orders/ per
size of thousand through visitor/ visitors to customers order
audience people rate/visit lead customers
reached) website/
enquiry)

SEO n/a £20,000 n/a n/a 20,000 £1.00 1% 200 £100

Viral A 20,000,000 £30,000 £1.50 10% 2,000,000 £0.15 0.5 of 1% 10,000 £3

Blog n/a £20,000 n/a n/a 10,000

Banner ad 100,000 £1,000 £10 1% 1,000

PPC ad n/a n/a n/a n/a n/a

Opt-in e-mail 10,000 £2,000 £200 2%

Online sponsorship 50,000 £5,000 £1,000 1%

E-zine/e-newsletter 1,000 £10,000 £10,000 5%

Press ad 1,000,000 £5,000 £5.00 1/100th of 1%

Direct mail List A 10,000 £5,000 £500 2%

Telemarketing 5,000 £20,000 £4,000 10%

– outbound

Exhibition B 6,000 £18,000 £3,000 n/a

 9 | The Marketing Communications Plan 289

other products or services that a customer might be from a campaign? But remember customer acquisi-
prepared to buy from the same supplier. tion may not be the main goal. For example, if
You also need a rigorous structured approach to boosting awareness is the main goal, then it may
measuring relative satisfaction (compared to com- be worth calculating the correlation between
petitors) for each stage of the online experience – brand awareness and market share, because then
product search, evaluation, enquiring, purchases, you can calculate the ROI of increased awareness.
post-purchase communications, after-sales support, Figure 9.13 shows an overall ROI of 40.3 per cent.
etc. You need this more than once a year. Many The columns and rows in Figure 9.13 are self-
organizations like to have 90-day plans and then explanatory. The ROI is calculated by dividing the
review and modify them every quarter. £2,726,000 profit (‘return’) generated by the total
cost of £6,760,667 for the marketing campaigns,
delivering a 40.3 per cent ROI.
Net promoter score, satisfaction Another way of looking at this is calculating
score and recommendation score how much sales are generated by every dollar, or
pound, spent on advertising What is the X factor (x
Since satisfaction criteria can change and leave an being the multiple)? We can calculate it by saying
old satisfaction scoring systems irrelevant, net pro- every £1 spent generates x. So if spending £120,000
moter score (NPS) has emerged. Effectively, sub- (total media and set-up costs) helps to deliver
tracting the total number of detractors (those who £9,486,667 sales, then each £1 spent generates £79
give a score between 1–6) from the number of advo- in sales revenue. The X factor is 79, ie each £1 spent
cates (9–10 scores) delivers your NPS. We ignore on ads generates £79 worth of sales.
the 7–8s.

Sentiment analysis: Social ROI is not the only measure

conversation scores (social media ‘Despite all evidence to the contrary, the belief
monitoring) that a single number can be used to assess
marketing performance is persistent. Some say
Marketers need to keep abreast of what is being
that top management can only handle a single
said about their brands, their organizations and
number, or silver metric, so we must choose the
their staff (as well as the competition) in the vast
least bad one. Others believe that ROI is so
array of conversations in social media platforms
standard as not to be worth challenging. Others
around the world. There are also some more com-
again claim modernity for customer concepts
prehensive licence fee systems with their own scor-
ing systems, which include Radian6, Market such as customer equity, customer lifetime
Sentinel and Precise Media. value and Peppers and Rogers’ new “Return on
Customer”. Yes, they are new and, yes, they
have value, but these measures are not the
Return on investment silver metrics their promoters claim them to be.’
Ambler (2006)
As mentioned in Chapter 1, marketers must learn to
speak the language of the boardroom. This includes
ROI on marketing expenditure. Can marketers
demonstrate rigorous professional discipline and Professor Tim Ambler (2006) explored four meas-
track what communications campaigns deliver a urement mechanisms – return on investment (ROI)
better ROI than others? Can marketers convince (or return on marketing investment (ROMI), or re-
the board that the return from investment in mar- turn on marketing expenditure (ROME));discounted
keting is better than the return generated by invest- cash flow (DCF); return on customer; and net advo-
ing the money elsewhere (eg in a high-interest cates (Reichheld, 2006) – and concluded that no
deposit account)? It is possible to calculate the cost single metric does it all. In fact, a combination of
per order, profit per order and cumulative profit metrics is required.
 290
F I G U R E 9.13 A dashboard from www.smartinsights.com

SOURCE: Used with kind permission

 9 | The Marketing Communications Plan 291

Control includes various areas of market research that it now features in almost every chapter in Part
and testing, so measurement systems need to be Two. That leaves ‘money’ or budgets. Here is a brief
built into the plan. insight into how you build your budgets.
Planning is really an iterative process. A manager
puts together a plan and a budget. The budget gets
cut. The manager revises the plan according to new Budget setting
budget. The plan is then rolled out, results watched
carefully and action taken to change the plan if nec- Budgeting
essary (ie if it is not working). Each year, improve- Outlined below are the most common approaches
ments can be made. Procter & Gamble asks its to budgeting:
managers to build on their ‘learnings’ (what they
●● Objective and task – identifying the overall
have learned from the marketplace). They con-
objectives and then breaking these down into
stantly learn from the marketplace and then incor-
specific tasks and calculating the budget
porate those ‘learnings’ in their next marketing plan.
accordingly. For example, to sell x million
cans of Coke would require x per cent levels
Constant beta of awareness, which would require x number
of impressions, which would require x
Nurturing a constant beta culture is part of amount of advertising, which would cost £x.
developing a well-managed data-driven business.
­ This is sometimes called the ‘ideal’ or ‘task’
Constant beta means constantly split testing web approach.
pages, ads, emails. In fact it means more as it ●● Modelling involves the use of a variety of
­includes ­multivariable testing – testing several vari- econometric and simulation techniques to
ables ­simultaneously. determine how various budget levels may
affect performance (eg sales). An example of
this is Unilever’s AMTES area market-testing
10,000 different versions of model.
Facebook being tested constantly ●● Profit optimization tries to find the optimum
marketing spend that would generate the
At any given point in time, there isn’t just one most profit. It is based on ensuring that the
version of Facebook running, there are probably marginal revenue derived from each
10,000. Any engineer at the company can marketing communications activity exceeds
basically decide that they want to test the marginal cost.
something. There are some rules on sensitive ●● Percentage of sales is a crude but quick way
things, but in general, an engineer can test of calculating a budget. For example, taking
something, and they can launch a version of 5 per cent of £1 million forecasted sales
Facebook not to the whole community, but means the marketing budget is £50,000. In
maybe to 10,000 people or 50,000 people – B2B markets, the percentage ranges from 0.5
whatever is necessary to get a good test of an to 2 per cent, and in B2C markets it ranges
experience from 5 to 20 per cent.
Zuckeberg (2018) ●● Competitive parity analyses competitors’
marketing communications spends. Basically,
it suggests that if an organization wants to
match a competitor it should spend the same
Do not forget your 3Ms: men/women (HR), money amount as that competitor.
(budgets) and minutes (timescale), and the new ●● Affordability is usually driven by
resource mega data (data). We addressed ‘men/
­ accountants, who draw up business plans,
women’ when we explored internal marketing and work out profitability and then allocate some
recruitment; minutes and timescales need to be at- budget to marketing based on what is left
tached to everything; mega data is so important over or affordable. This is the opposite of the
 292 Part One | Communications Background and Theories

objective and task method. It is based upon year’s marketing. Few companies have sophisticated
what is affordable after taking all costs and optimum profit models that attempt to identify the
an amount of profit away from sales. optimum spend.
●● Payback period is the time taken for an
integrated campaign to pay back the costs Allocating budget between
(or budget) of the marketing
communications.
customer retention and customer
●● Arbitration requires a senior member of staff
acquisition
to arbitrate between different views of the Another interesting question is how to split the
marketing team and the rest of the business. budget between customer retention and customer
acquisition. If selling to existing customers is sup-
Some academics categorize these different budgeting posed to be on average six to seven times more
approaches as scientific and heuristic. Scientific plan- profitable than selling to new customers, there is a
ning approaches include: objective and task; model- school of thought that suggests that marketers
ling; payback period; and profit optimization. Heuristic should spend at least equal resources on 1) keep-
planning approaches include: percentage of sales; ing existing customers happy (eg CRM) and 2) ac-
competitive parity; affordability; and arbitration. quiring new customers. Businesses like Amazon
In reality, several budgeting approaches are used. reportedly pay £50 to acquire a customer, and
Although a manager might use the ideal task Virgin pays up to £150 (a free laptop), while
approach, the review panel (of senior management) Reichheld (2006) estimated the Dell average cus-
will immediately convert it into a percentage figure, tomer to be worth $210 (five-year net present
compare it with the competition’s spend and ask value), with a detractor (someone speaking nega-
‘Can we really afford it?’ and ‘Does it deliver the tively about Dell) costing $57 and a promoter gen-
required level of profits?’ It is not unusual to find erating $328. In the world of online marketing it is
the initial budget request cut back by senior man- increasingly easy to calculate the cost of customer
agement as other divisions and departments com- acquisition.
pete internally for limited funds for the following See ‘Social listening skills’ (Smith, 2014a) for
more information on each of the approaches.

Key points from Chapter 9

●● SOSTAC® provides an effective structure for ●● Some tactical tools are better at achieving
any plan. specific objectives, but regardless of which
●● Market research and intelligence reduce risk and objective, all tactics must fit into the
boost the likelihood of success. It is essential to overarching strategy.
gather key information before making any ●● Develop an internal marketing part of the plan
decisions about strategy or tactics. to ensure excellent execution of the plan
●● Strategy is the weakest part of most plans. Use ●● Build and monitor control systems into the
TOPPP SEED as an aide mémoire for the key plan.
components for writing a strategy. Write several ●● Ninety-day planning cycles can be useful.
options before choosing the best one.

References and further reading

Ambler, T (2006) Use a dashboard when driving your http://www.destinationcrm.com/Articles/Columns-
marketing, Market Leader, 33, Summer Departments/The-Tipping-Point/The-Right-
Band, W and Hagen, P (2011) The right customer Customer-Experience-Strategy-74691.aspx
experience strategy, Destination CRM [online] (archived at https://perma.cc/3KNP-ULAA)
 9 | The Marketing Communications Plan 293

Benady, A (2014) E-cigarette boss Jacob Fuller on Ohmae, K (2000) Marketing CD 2: Segmentation,
comms and the industry’s ‘biggest mistake’, PR positioning and the marketing mix [online] https://
Week, 25 June prsmith.org/ (archived at https://perma.cc/8LKG-
Doyle, P (2001) Marketing Management Strategy, 3rd MEEW)
edn, FT Prentice Hall, Hemel Hempstead Porter, M E (1985) Competitive Advantage, Ch 1,
Doyle, P, Saunders, J and Wright, L (1987) A pp 11–15, The Free Press, New York
Comparative Study of US and Japanese Marketing Reichheld, F (2006) The Ultimate Question: Driving
Strategies in the British Market, Warwick good profits and true growth, Harvard Business
University School Publishing, Boston, MA
eMarketer (2009) Social media best practices, 29 July Sisodia, R, Sheth, J and Wolfe, D (2014) Firms of
[online] www.emarketer.com (archived at https:// Endearment: How world-class companies profit
perma.cc/7G34-UAH9) from passion and purpose, 2nd edn, Pearson
Engel, J, Warshaw, M and Kinnear, T (1994) Education, London
Promotional Strategy: Managing the marketing Smith, PR (1998) Marketing Communication: An
communications process, Irwin, Boston, MA integrated approach, 2nd edn, Kogan Page,
Forrester Research (2009) US Interactive Marketing London
Forecast, 2009 to 2014, Forrester Research, Smith, PR (2004) SOSTAC Marketing Plans (CD)
Cambridge, MA Smith, PR (2014a) Social listening skills parts 1 & 2
Godin, S (2009) When tactics drown out strategy, [online] https://prsmith.org/blog/ (archived at
Seth Godin’s Blog, 7 August [online] https://seths. https://perma.cc/MJ9V-Q25F)
blog/ (archived at https://perma.cc/T262-CXC5) Smith, PR (2014b) How to target very very specific
Kanter, B (2008) How much time does it take to do audiences on Facebook [online] https://prsmith.
social media? Beth’s Blog, 1 October org/blog/ (archived at https://perma.cc/MJ9V-
Kanter, R M (2000) Marketing CD 2: Segmentation, Q25F), 21 August
positioning and the marketing mix [online] https:// Smith, PR (2015) SOSTAC® guide to writing the
prsmith.org/ (archived at https://perma.cc/8LKG- perfect marketing plan [online] https://prsmith.
MEEW) org/sostac (archived at https://perma.cc/JKR3-
Kanter, R M (2001) On-line Marketing Course 2: HH9U)
Segmentation, positioning and the marketing mix, Smith, PR (2019) SOSTAC® guide to your perfect
2nd edn [online] https://prsmith.org/ (archived at digital marketing plan [online] https://prsmith.
https://perma.cc/8LKG-MEEW) org/sostac (archived at https://perma.cc/JKR3-
Kenny, G (2014) Your company’s purpose is not its HH9U)
vision, mission, or valuesKotler, P (2001) In Smith, P, Berry, C and Pulford, A (1999) Strategic
conversation with Paul Smith, Harvard Business Marketing Communications, Kogan Page,
Review, 3 September London
Kotler, P (2001) In conversation with Paul Smith, Solis, B (2010) The myth of control in new media,
Marketing Series, Multimedia Marketing Brian Solis, 25 January
Consortium Soumya, P (2017) The story of Amazon.com: Jeff
Kotler, P et al (2000) Marketing CD 3: Marketing Bezos, innovation, customer centricity, Amazon
planning [online] https://prsmith.org/ (archived at LinkedIn page, 24 July
https://perma.cc/8LKG-MEEW) Toner, L (2014) 6 ways social data can inform your
McCord, P (2014) How Netflix reinvented HR, marketing strategy, Hubspot
Harvard Business Review, January/February WARC (2006) Adidas to reposition Reebok from
McGovern, G (2018) Keeping digital teams happy fashion to action, 26 January
versus keeping customers happy [online] http:// Wing, R L (1989) The Art of Strategy (translation of
gerrymcgovern.com/ (archived at https://perma.cc/ Sun Tzu, The Art of War), Aquarian Press,
GF3D-CV9F), 5 August Wellingborough
Moore, K (2017) How to increase your performance Zuckerberg, M (2018) Imperfect is perfect, Reid
by finding your purpose, Forbes, 3 August Hoffmann’s Masters of Scale Episode 4
 294 Part One | Communications Background and Theories

Further information
Euro RSCG PAMCo Ltd,
Havas Barcelona 4th Floor,
Av. Diagonal, 575 – CC L’Illa 7/8 Market Place,
Modulo 2, Planta 11 London,
Barcelona, Spain W1W 8AG
(Now part of the HAVAS agency network) Tel: +44 (0)20 7637 9822
https://havas.com/ www.pamco.co.uk

HAVAS Worldwide London Target Group Index (TGI)

HAVAS PR London 222 Grays Inn Road
The HKX Building London WC1X 8HB
3 Pancras Square Tel: +44 (0)20 7264 4700
London www.kantarmedia.com
Tel: +44 (0)20 3793 3800
https://havas.com/

International Organization for Standardization

Chemin de Blandonnet 8
CP 401
1214 Vernier, Geneva
Switzerland
Tel: +41 22 749 01 11
www.iso.org
 295

10
The changing
communications
environment
LEARNING OBJECTIVES
By the end of this chapter you will be able to:
●● embrace the constant nature of change in markets and ergo marketing
communications and recognize the integrated digital opportunity is now greater than
ever before;
●● be aware of the importance of checking the laws and regulations relevant to marcomms;
●● consider building risk assessment into marketing plans, particularly including
economic risks;
●● accept the need to understand social change and integrate this change into
marcomms to reflect changing social norms, values and roles;
●● dispel any fears of technology and embrace technological advances including AI as
aids to marketing.

Introduction 296 Shrinking attention spans 307

The 4th Industrial Revolution 296 Increasing fear 307
A good or bad revolution? 297 Device junkies 308
Time poor 308
Political change 297 Customer rage 309
Brexit 297 Ethics 310
Laws and regulations 297 Demographics 311
GDPR 299
ICO (Information Commissioner’s Office, UK) and the Technology 311
DPC (Data Protection Commission, Ireland) 300 Big Data 311
No security policies, testing, audits or disaster recovery AI 311
= negligence 300 MA 312
Self-regulation: Codes of practice 301 IoT 312
AR 312
Economic change 303 The increasing pace of change 314
Economic policies affect markets 304
Changing economic agreements for trading Summary 314
blocks 304
Economic cycles affect marketing 305
Key points from Chapter 10 316
Healthy economy = healthy competition 305 References and further reading 316
Social change 307 Further information 318
 296 Part One | Communications Background and Theories

legal (from political) and environment (from politi-

Introduction cal and social). There is an overlap between all of the
factors, as you will see.
We are children of change. Right now business is
going through the most radical period of change, the
4th Industrial Revolution (mentioned in Chapter 1).
This chapter looks at how marketing communica- New borderless, category-less
tions are affected by the rapidly changing business competitors changing the marketplace
environment and its many uncontrollable factors.
Everything changes, including customers, competi-
Once upon a time, grocery stores sold groceries
tion, channels, technology, social trends, even regu-
and petrol stations sold petrol. Today, grocery
lations and laws. Whole markets are pulled and
stores sell groceries and sell petrol while petrol
pushed in different directions by the PEST (political,
stations sell petrol and groceries. Telephone
economic, social and technological) factors, forces
that are outside an organization’s control. New companies sell broadband and TV, not just
laws, changing regulations, fluctuating economic cy- telephone services. All markets are constantly
cles, demographic shifts, new social values, attitudes changing. Categories are blurring as competitors
and cultural norms, fast-changing technology, and seek growth from share of wallet (if equipped
aggressive, borderless and category-less competitors with a strong brand and trustworthy customer
are some of the key factors that constantly move relations, they can sell a wider range of products/
markets away from the status quo. As a result, yes- services). Then some new players, such as
terday’s marketing communications strategy will network companies like Uber, are pushing
soon be ineffective, unless we embrace, exploit and markets into a new ‘shared economy’. And on it
integrate these change factors. goes – this is the borderless, category-less
This means that marketers need a constant feed merry-go-round continually changing the
of information on patterns, trends, and of course, structure of all markets.
any sudden changes in any of these uncontrollable
forces. The ‘OT’ part of a SWOT (strengths, weak-
nesses, opportunities and threats) analysis monitors
the external opportunities and threats that emerge
in the business environment. These are the PEST
The 4th Industrial Revolution
factors: This is a new beginning. I know we have said this
before. The internet came along in the 1990s and we
●● Political (including legal and regulatory).
said, ‘This changes everything.’ It did. Then social
●● Economic (global economic shifts and cycles media came along in the ‘noughties’ (2000s) and
of recession and boom). 2005 it was suggested in that social media was the
●● Social (new values, attitudes, lifestyles, ethics/ biggest change since the Industrial Revolution. It
environment and demographics). was. And now we have even bigger changes coming
●● Technological (the internet, databases, digital via AI, machine learning, marketing automation
TV and much more). along with a proliferation of technology develop-
ments, triggering economic power shifts and new so-
Competition can also be added as another uncon- cial structures. This is the 4th Industrial Revolution.
trollable factor in an organization’s environment
which could stop sales growth or even destroy a
business. Any of these change factors could ulti-
mately push a business into extinction if seemingly
subtle, yet significant, changes are continually ig- ‘We are witnessing the start of the 4th Industrial
nored. We will now consider how these PEST factors Revolution. With it come some wonderful
affect the organization’s marketing activities, and its opportunities and some dangerous risks.’
communications in particular. Note: Some organiza- Smith (2019)
tions use the acronym PESTLE, which separates
 10 | The Changing Communications Environment 297

courts and procedures, while regulations are often

There has never been a time of greater self-regulating (as in the case of both advertising and
promise or potential peril sales promotions) and are quicker and cheaper to
­enforce.
‘The changes are so profound that, from the
perspective of human history, there has never
been a time of greater promise or potential peril.
My concern, however, is that decision-makers Political change
are too often caught in traditional, linear (and
non-disruptive) thinking or too absorbed by Brexit
immediate concerns to think strategically about
the forces of disruption and innovation shaping UK and EU marketers (and almost all other man-
our future.’ agement) are currently preparing for major changes
Professor Klaus Schwab, founder caused to their markets by Brexit (BRitain’s EXIT
and Executive Chairman of the
from the European Union – actually it is Great
Britain and Northern Ireland exiting the EU). This
World Economic Forum, 2018
major UK political shift will have a significant effect
on many businesses.
Over time, the EU laws roll out across Europe, in
particular, laws that offer even more stringent cus-
A good or bad revolution? tomer protection. For example, the new EU Consumer
Rights Directive, which has been implemented by The
The 4th Industrial Revolution can do good or bad Consumer Contracts (Information, Cancellation and
for both economies and societies. It could share Additional Charges) Regulations 2013 ensures that
education in new ways, reduce illness and starva- consumers who buy online, in most circumstances,
tion and improve the quality of life across the have considerably more rights than those who buy in
world. In fact, it might even alert us before national stores. Businesses must be extra transparent and
disasters occur and ‘potentially also undo some of ensure consumers can easily see (a) the identity of the
the damage wrought by previous industrial revolu- business and the business registration details, (b) its
tions’ (Marr, 2018). geographical address, (c) an accurate description of
On the other hand, it could further polarize the the goods, and (d) full detailed returns policy, delivery
rich and the poor as low skills get low pay and high information and terms and conditions.
skills get much higher pay. While AI creates com- The GDPR (the General Data Privacy Regulations)
petitive advantage between businesses, the bigger Directive is another EU directive which increases and
ones invest more heavily in AI to get bigger while protects an individual’s rights. GDPR has already
wiping out, or buying, up the smaller businesses. had a major impact on all organizations in Europe
Some jobs will become obsolete. Additionally, and any organizations doing business with European
the changes might develop so swiftly, that even customers. The EU’s GDPR directive became law in
those who are ahead of the curve in terms of their the UK on 25 May 2018. More on GDPR later.
knowledge and preparation, might not be able to
keep up with the ripple effects of the changes…
world governments need to plan carefully and Laws and regulations
regulate the emerging new AI capabilities to ensure
UK business legislation provides laws that essen-
our security.
tially support the principles of being honest and
Marr (2018)
truthful. There is also a host of self-regulatory pro-
This is serious food for thought. However, let’s get fessional codes that draw on the same set of basic
back to the PEST factors that marketers must also business principles, ie that marketing professionals
watch carefully. Let’s start with politics. Consider should conduct their business in a legal, decent,
briefly how laws and regulations can affect your busi- honest and truthful manner.
ness. In marketing communications in the UK laws Meanwhile EU directives must be subsequently
are slow and expensive to enforce as they involve adopted into the member state’s laws within two
 298 Part One | Communications Background and Theories

years. In the UK a statute is a law (also called an Regulations 2013 supersedes The Consumer
Act) that has to be voted in by Parliament. Acts are Protection (Distance Selling) Regulations
the primary legislation. Regulations are refinements 2000. Marketers must supply, in writing, full
of an Act, and they are brought into force by the details of the goods or services offered,
Secretary of State (minister). Regulations form part delivery arrangements and payment, suppliers’
of the law in the UK. details and the consumers’ cancellation right
There are also self-regulating industry bodies who before they buy (known as ‘prior
have their own codes of practice, such as the CAP information’), eg a cooling-off period of 14
(Code of Advertising Practice) – more on these later. days. These regulations apply when selling via
the internet, TV, mail order, phone or fax.
Some UK laws affecting marketing ●● The Consumer Protection from Unfair
Trading Regulations 2008 seek to tackle
communications unfair sales and marketing.
●● The Trade Descriptions Act 1968 effectively ●● The Business Protection from Misleading
stopped false claims and has mostly been Marketing Regulations 2008, combined
repealed and superseded by the CPRs with CPR, also provide protection for
(Consumer Protection Regulations). businesses.
●● The Sale of Goods Act 1979 (Section 13: ●● The Digital Economy Act 2010 regulates
Sale by Description) demands that goods digital media and offers new protection
sold match their description. against copyright infringement. Note: only
●● The Business Protection Regulations 2008 some parts of the Act came into force in
replaces large parts of the Control of 2010; the main regime still remains
Misleading Advertisements Regulations 1988 unenforceable.
in terms of B2B protections in respect of The overall guiding principles are the same in law
advertisements. These regulations provide a as in voluntary regulations: simply be legal, decent,
back-up for self-regulation. The Control of honest and truthful. If all else fails, the Office of Fair
Misleading Advertisements Regulations 1988 Trading (OFT) provides a safety net, and com-
provide legislation in respect of plaints about marketing communications (advertis-
advertisements. ing, shop-window displays, etc) can be referred to
●● The Telecommunications (Data Protection the OFT for scrutiny. Some other laws affecting
and Privacy) Regulations 1999 emerged from marketers in the UK:
the Data Protection Act 1998.
●● The Bribery Act 2010 – in the UK sales
●● The EU Directive on Privacy and Electronic promotions, incentives and gifts to
Communications Regulations (PECR) came distributors and staff can now be seen as
into force in 2003. GDPR does not replace bribes if deemed excessive and carry a
PECR – although it has amended the maximum sentence of 10 years in prison.
definition of consent. You need to comply with Marketers should issue guidance on
both GDPR and PECR for your business-to- corporate hospitality and have internal
business marketing. The EU is in the process of training, communications and procedures to
replacing the current e-privacy law with a new back this up. Companies should keep a
ePrivacy Regulation (ePR) (ICO, 2019). register of gifts and require employees to
●● The Communications Act 2003 was driven update it; review incentive schemes that may
by the Electronic Commerce Directive (ECD) operate; consider changing supplier
Regulations 2002. agreements to add or amend anti-bribery
●● The Enterprise Act 2002 ensures fair provisions; and review commercial practice
competition. to assess potential risk.
●● The Consumer Contracts (Information, ●● The Trade Marks Act 1994 adapted UK
Cancellation and Additional Charges) trademark law to fit with European
legislation. This means that a wider range of
 10 | The Changing Communications Environment 299

products and service attributes can now be GDPR

registered as trademarks.
●● The DPA (Digital Protection Act) 2018 sets GDPR essentially protects customers from their per-
out the framework for data protection law in sonal data being abused by criminals, or by busi-
the UK. It updates and replaces the Data nesses seeking to exploit their data unfairly, and also
Protection Act 1998, and came into effect on from sloppy organizations who simply do not protect
25 May 2018. It sits alongside the GDPR, their customers’ data in a rigorous and professional
and tailors how the GDPR applies in the manner. Ignoring GDPR can be expensive, with fines
UK – for example, by providing exemptions. of €20 million or 4 per cent of global turnover for
It also sets out separate data protection rules primary infringement (if it impacts a data subject/in-
for law enforcement authorities, extends data dividual) or €10 million or 2 per cent set for second-
protection to some other areas such as ary infringement (a breach of the regulations, eg not
national security and defence, and sets out carrying out technical and organizational measures
the Information Commissioner’s functions as required) – whichever is the greater. Directors can
and powers. be sent to prison for both a breach (of security) and
also for non-compliance with GDPR
●● EU Directive on Copyright (Article 13) Personal data includes: genetic data, bio data,
makes big platform companies (like voice data, finger prints and recognition data,
YouTube) responsible for any copyrighted CCTV, photos, recorded calls, CRM and after sales,
content they host. Once the EU passes this search strings, web reports, systems log IP addresses,
new directive, EU member states will have accounts and finance, financial records, HR records,
two years to pass their own legislation that communications tools such as emails, messenger
brings article 13 into effect in their country. messages, social networks, marketing databases and
Firms exempt from Article 13 must fulfil all profiles.
of these criteria: 1) they’ve been available to Anyone handling personal data is now legally
the public for less than three years; 2) their obliged to be GDPR trained. Staff must be trained
turnover is less than €10 million pa and 3) so they understand and execute GDPR. Essentially
they have fewer than 5 million monthly anyone using data has to be educated about their
visitors (Reynolds, 2019). responsibilities and processes required. Fundamental
to it all is ‘consent’ – did the customer give their
consent to their data being collected and used? Can
Can legal disclaimers on packaging stop you prove you have got consent? Have you made it
sparkling wine shootings? clear to the customer why you are collecting it,
what you will do with it, how long you will keep it?
The classic case of a US consumer suing a UK You have also got to protect the data securely. And
paint company for alleged injurious effects of a update it where necessary. Customers have rights to
lead-based paint strikes fear into the heart of many access their data. They also have rights to opt out
potential exporters. According to Pohl (1991), a and to ‘be forgotten’ (all their records deleted). Was
growing awareness that a manufacturer carries a the data processed lawfully, fairly and in a transpar-
heavy and detailed obligation to warn potential ent manner in relation to individuals? For another
users about any dangers that might lurk in the use
10 internal actions see ‘GDPR tactics: Action and
control (Part 3)’ at http://prsmith.org/blog/ or
of its products has prompted some sparkling wine
visit the ICO or DPC sites for more GDPR check-
manufacturers to print disclaimers on the
lists and advice.
packaging warning against possible risks involved
Some banks now refuse business with non-
in uncorking their products.
GDPR compliant businesses. The GDPR compli-
ance tightens its grip on business. GDPR is serious
for both marketers and all management and direc-
On a more serious note, let’s take a closer look at tors of a business. You can read ‘7 data protection
GDPR since it has had a massive impact on all mar- questions to answer before some banks will do
keters and their marketing communications. business with you’ at http://prsmith.org/blog/.
 300 Part One | Communications Background and Theories

59,000 GDPR breaches since ICO (Information Commissioner’s

May 2018 Office, UK) and the DPC (Data
Since the arrival of GDPR (25 May 2018) there have
been over 59,000 breaches reported, with 10,000
Protection Commission, Ireland)
data breaches in the UK alone. This puts the UK be- The ICO is the supervisory authority for data pro-
hind Germany (12,600 breaches) and the Netherlands tection in the UK. It offers advice and guidance, pro-
(15,400 breaches). In less than a year, there have motes good practice, monitors breach reports,
been 59,000 data breaches reported across Europe. conducts audits and advisory visits, considers com-
‘Facebook, Google, Marriott International and plaints, monitors compliance and takes enforcement
Cathays Pacific are just a few of the big names to action where appropriate. The DPC is the Irish
have faced hugely embarrassing and costly data ­supervisory authority for GDPR.
breach investigations over the last 12 months’
(Hunter, 2019). This has generated 91 fines so far
(with the largest being Google’s €50m GDPR fine). GDPR should help reduce data security
disasters like these
GDPR fines
Memory sticks, discs, laptops, and files lost or
stolen from homes or cars or left behind on a train
Google hit with €50m GDPR fine over
have included information about the following:
personalized ads
●● 10,000 prolific offenders – profiles and other
‘Google was fined 50 million euros (£44m) by the information;
French data regulator CNIL, for a breach of the ●● 84,000 prisoners – profiles and other
EU’s data protection rules on two counts: (1) by information;
failing to meet transparency and information
requirements, and (2) failing to obtain a legal ●● 30,000 people with six or more convictions in the
basis for processing.’ last year;
Fox (2019) ●● 100,000 personal details about members of the
armed forces;
●● 600,000 people interested in, or who had applied
to join, the Royal Navy, Royal Marines and RAF;
Cambridge Analytica owner fined £15,000
for ignoring personal data request ●● 25,000,000 child benefit claimants;
●● Gulf War invasion plans stored on a computer
‘Cambridge Analytica’s parent company, SCL that was stolen from an RAF officer’s car in 1990.
Elections, has been fined £15,000 for failing to
respond to an American citizen’s request for BBC News Online (2008a, 2008b)
copies of information it holds on him.’
Pegg (2019)

No security policies, testing, audits

or disaster recovery = negligence
Can you prove that you are compliant Breaches of privacy and website security can end up
with GDPR? in court. Organizations can be accused of negli-
gence for breaches of privacy/security. In addition
Remember: The Burden of Proof Is On The DC (Data to damaging your customers’ trust in your organi-
Controller) to verify that it received lawful consent. zation, ‘security lapses can mean that company di-
rectors end up in court, if they are deemed to be
 10 | The Changing Communications Environment 301

negligent in their responsibilities towards good se- To do this they sometimes have to be daring, bold
curity’ (Chaffey and Smith, 2017). and controversial, ie producing ads that are right on
Good website management must build in secu- the edge of what is permitted by the regulations.
rity policies, security reviews, security testing and Although marketing communications must
auditing, as well as planning for business continuity adhere to the laws of the land (ie one cannot mis-
in case of ‘disaster recovery’ and emergencies. represent or blatantly mislead), the voluntary codes
‘Remember, the earlier security is discussed, the are both cheaper and quicker to apply should any
cheaper it becomes to manage risks. Also integrate complaints or claims be made. The codes also offer
security into any testing programmes’ (Chaffey and useful guidance to the marketer, so that most prob-
Smith, 2017). Regardless of the legal obligations, it lems are ironed out before an advertisement goes
makes sense to protect your organization’s data out on air or is published in the press. Essentially,
carefully and rigorously, since how long could your advertisements should:
business survive if it had its database hacked and
●● be legal, decent, honest and truthful;
stolen and destroyed?
●● show responsibility to the customer and
society;
The last generation to know privacy ●● follow the basic business principles of fair
competition.
American author, Brian Solis, suggests that we’re
Professional bodies need to be vigilant in order to
‘still in the early stages of learning just what it
maintain the credibility of their profession. This is
(privacy) all means and doesn’t mean. It is now
particularly true in advertising, where the consum-
something that will have to be taught.’ He develops
er’s scepticism and resistance to advertising are
the ‘we are what we share’ angle by saying: ‘And
heightened or lowered according to the credibility of
more importantly, what we share online, will now the advertising industry. This credibility is founded
require thoughtful curation to deliberately upon the industry’s reputation and determination to
construct a more accurate and desirable portrayal maintain standards of legality, decency, honesty and
of who you are and how you wish to be perceived. truthfulness.
Therein lies the inspiration for social networking;
the understated, willful and dramatic leap between
privacy and publicness’ (Solis, 2012). It has also
Code of Advertising Practice
been suggested that your online profile is a window The Code of Advertising Practice (CAP) is for non-
to your soul. See ‘We trade privacy for broadcast and covers ads that appear in a wide
convenience’, p 308. array of media including newspapers, magazines,
cinema, billboards, mailings, leaflets, paid-for space
online, sales promotions (wherever they appear),
texts, emails and on UK-based company websites.
Self-regulation: Codes of practice This Code must be followed by all advertisers,
agencies and media. The Code is enforced by the
Various professional marketing bodies (advertising, Advertising Standards Authority (the consumer side
direct mail, PR, sponsorship, etc) draw up their own of CAP, which is the advertiser side), who can take
codes of practice to which their professional mar- steps to remove or have amended any ads that
keting members must adhere. Failure to do so may breach these rules.
result in expulsion and sometimes negative public- The BCAP (Code of Advertising Practice – broad-
ity, along with a form of blacklisting. In the case of cast) applies to traditional ‘spot’ ads on TV channels
advertising or a sales promotion, a breach of a code and radio stations licensed by Ofcom as well as tele-
can also result in the withdrawal of an advertise- shopping, interactive services and text services.
ment or sales promotion, etc. This can be expensive, Laws and regulations vary in different markets;
as the development of any campaign costs money. for example, cold calling is banned in Germany and
The risks are arguably higher in television, where a some US states. Equally, sales promotions, incentives,
60-second advertisement can cost a million pounds. premiums and free gifts are generally unacceptable in
Most advertisers want to stand out from the crowd. Germany and can cause problems in France.
 302 Part One | Communications Background and Theories

CAP principles of the system. It ensures that the system is properly

funded, while ensuring that CAP, BCAP and ASA
The main principles of the Codes that apply to all
regulatory decisions are not influenced by who may
ads is that advertisements should not mislead, harm
or may not be funding the system. See www.asa.org.
or offend. Certain products or services are subject
uk/advice-and-resources.html.
to further specific rules. For instance, products or
services that have the potential to harm or which
are age-restricted, such as alcohol or gambling, are ASA
subject to additional restrictions above and beyond The ASA (Advertising Standards Authority) is the
the general rules. The Codes also provide further independent watchdog responsible for administer-
clarity in some complex areas such as finance, the ing the Codes. It responds to complaints from con-
environment, and health and beauty. sumers and industry about advertisements that
The Codes are owned, written, revised and appear to be misleading, harmful or offensive. If a
enforced by CAP and BCAP. They are developed in complaint is upheld, then the ad has to be with-
response to public policy, changes in legislation, drawn or amended. The ASA is the customer/­
emerging technologies and advertising trends, as well audience-facing side of CAP, while CAP is the
as in response to social or political concern. The advertiser/marketer-facing side.
Codes are regularly updated and are periodically
reviewed to make sure they remain relevant.
Clearcast, Ofcom and TV ads
TV advertisements must gain approval before broad-
CAP advice casting. Ofcom came into being in 2003, having been
Help and guidance is readily available from www. created by the Telecommunications Act 2003, and for
asa.org.uk, with free confidential and expert advice the first time a single entity regulated what tradition-
on non-broadcast ads prior to their launch. They ally had been seen as disparate forms of media.
offer a free 24-hour-turnaround service advising ad- Initial scripts are approved by Clearcast, and a
vertisers if their promotions are within the regula- clearance certificate is issued. However, this does
tions, and there is a chargeable service if a four-hour not guarantee that the finished production will also
turnaround is required. The website also contains be acceptable, as the film’s treatment is sometimes
copies of the advertising codes, help notes and other difficult to envisage from a script or storyboard,
online advice. and so it is also screened for final approval by
Anyone planning a TV ad for UK licensed ter- Clearcast before broadcasting. Even after an adver-
restrial and satellite channels should submit it to tisement is cleared for broadcasting, it can still be
Clearcast for approval. Radio advertisers should pulled off the air if the ITC requests it. Its attention
submit their ads to the Radio Advertising Clearance can be aroused by complaints from the public. If,
Centre (RACC). after it has examined the material and considered
Marketers can keep up to date with developments the complaint, it feels that the complaint should be
in advertising regulation by registering for email upheld, it can then pull the advertisement off the air.
news alerts from CAP and BCAP as well as the CAP
Copy Advice team.
Does Red Bull give you wings... or not?
CAP funding Red Bull energy drink offered to refund $10 (with a
The system is funded by a voluntary levy on adver- maximum cap of $13 million) to anyone who
tising spend. This is collected at arm’s-length on be- consumed their product after 2002 since their ‘Red
half of CAP, BCAP and the ASA by two bodies: the Bull gives you wings’ advertising campaign was sued
Advertising Standards Board of Finance (Asbof) for false advertising. There is a debate about the
and the Broadcast Advertising Standards Board of caffeine levels being less than a cup of coffee. So
Finance (Basbof). Red Bull settled out of court to avoid the distraction.
The levy is set at 0.1 per cent of advertising space Many marketers now look even more carefully at the
costs and 0.2 per cent of Mailsort contracts, and is promises they make via their advertising.
collected at arm’s-length to maintain the independence
 10 | The Changing Communications Environment 303

Sales promotions, PR and other worldwide political agreements. These companies

prepare plans to meet a range of scenarios built
regulatory bodies around possible results from, say, the current major
In addition to advertising, other marketing services economic disputes. Fortune Magazine described
have their own regulations and codes. For example, two scenarios used by an oil company:
the Code of Sales Promotion Practice is also pub-
lished by the CAP and basically provides guidelines ●● Scenario 1: Sustainable world and global
for sales promotion activities. The Institute of mercantilism assumes that all the major
Practitioners in Advertising (IPA), Chartered international economic disputes are solved,
Institute of Public Relations (CIPR), Public Relations there is European unity, the United States
Consultants Association (PRCA), Institute of Sales and Japan agree trading terms (and avoid a
Promotion (ISP) and other professional bodies all trade war), free trade prevails across the
have codes of practice to which their members must globe, and stable growth is maintained. As a
adhere. Any breach of the code can result in a mem- consequence, environmental issues receive
ber being warned or ultimately struck off the insti- more attention. The implications for Shell
tute or association member list. This may have some are new emission restrictions and a
short-term negative publicity, plus, in the medium to reconfiguration of the energy industry in
longer term, exclusion of that member from pitch which less oil and more natural gas are used.
lists. Some clients refer to the appropriate institu- ●● Scenario 2: Global mercantilism, which
tion or association when choosing a new agent or assumes a gloomier world where regional
consultant. conflicts basically destabilize the world, trade
wars and recessions rage, trading blocs form,
and consensus on environmental issues is
Social media corporations to be regulated never achieved. This scenario implies less
and fined for child abuse, terrorism, regulation, a piecemeal approach to
self-harm materials published environmental issues and much more oil
consumption.
The UK Government is considering ways to
regulate social media companies, including
Facebook, YouTube and Instagram, over harmful Economic change
content. ‘Nothing is off the table,’ said Suicide
Prevention Minister Jackie Doyle-Price (BBC, Economic changes affect markets and, in turn, a mar-
2019). Triggered by the suicide of Molly Russell, keter’s choice of marketing messages. Economies
who was allegedly influenced by harmful videos on move in cycles, but few can forecast exact economic
Instagram (owned by Facebook), it is likely that the trends across different regions. Some market econo-
regulations will extend to child abuse, racism, hate mies are more risky than others, particularly at cer-
and terrorism, with large fines imposed for future tain periods or stages in their cycles. Marketers must
breaches. be in tune with economic trends. Since 2005, UK
company reports must, by law, include a description
of the principal risks and uncertainties facing the
company (as well as a description of the resources
Politics and trading block available to the company and a statement of the busi-
agreements ness’s objectives and the strategies of the company).
Moving on from national and international regula- Businesses now need marketers to analyse the risks of
tions and legislation, we now turn our attention to various markets and the risks of particular strategies.
international political agreements that affect major In the United States, the Sarbanes–Oxley corporate
trading regions and the world economy. Whether it governance legislation requires a risk management
is Trump Trade Wars, Brexit or major international approach to business. Interestingly, the 2004
trading block agreements, the larger international Enterprise Risk Management Integrated Framework
trading companies monitor the potential results of mentions the word ‘customer’ 71 times and the word
 304 Part One | Communications Background and Theories

‘marketing’ 11 times. Marketers must be well posi- government for loss of profits since banning
tioned to analyse risk and report risk to their boards. persuasive cigarette packaging). TTIP has
been thrown out, but is it being replaced by
ISDS and Ceta?
Shift to the East ●● Investor-State Dispute Settlement (ISDS) or
investment court system (ICS) allow
‘The dominance of the United States and the investors (eg corporations) to sue nation
dominance of Europe – particularly Western states for alleged ‘discriminatory practices’
Europe – is eclipsed. What we’re witnessing is a that affect their profits. Previous ISDS cases
sharp shift in wealth in a relatively short period brought against governments include
of time from West to East.’ Swedish energy giant Vattenfall, who sued
Martin Sorrell, WPP, at the 2006 the German Government (BBC, 2015) for
World Economic Forum, Davos €4.3 billion plus interest because Germany
decided to end the use of nuclear power in
the wake of the Fukushima disaster. US
pharmaceutical giant Eli Lilly is suing
Economic policies affect markets Canada for trying to keep medicines
Industrial and consumer markets are directly and in- affordable; and French multinational Veolia
directly affected by economic changes. The global is suing Egypt for increasing its national
shift in economic power from West to East affects minimum wage (Guardian, 2019).
many markets. Trade wars seem to be more popular ●● The Comprehensive Economic and Trade
since President Trump arrived. Economic policies af- Agreement (Ceta) is a free trade agreement
fect markets. Exchange rates, interest rates, unem- (cutting tariffs) between the EU and Canada,
ployment, levels of disposable income, etc all affect signed in 2016. Ceta is a potential model of
how much money is around, how much will be spent how future UK–EU relations could be
and, in a sense, the size of many markets or industries. structured, and linked by some to ISDS.

Changing economic agreements F I G U R E 10.1 If corporations challenge

for trading blocks governments for being over-protective of
TTIP, ISDS and Ceta: Transfer of citizens, could this open the gate for law
economic powers to corporations? suits leading to the reintroduction of ciga-
Trade bodies like the EU and NAFTA want to de-
rette advertising and allowing the sale of
velop agreements that ‘oil the wheels of economics’, cigarettes to be deregulated (ie allow the
ie help to reduce barriers and regulations to allow sale of cigarettes to children)?
faster, easier, ‘free trade’ to occur between economic
blocks. However, some of these proposals appear to
strengthen corporations’ rather than customers’
rights. Simultaneously, specific powers of nation
states appear to be passing to corporations, if the fol-
lowing are agreed.
●● The Transatlantic Trade Investment
Partnership (TTIP) between the USA and the
EU is criticized by some for allowing US
corporations to sue EU governments for loss
of profits caused by changes in a
government’s laws or regulations (eg there is
an alleged case in Australia where American
tobacco companies are suing the Australian SOURCE: PR Smith
 10 | The Changing Communications Environment 305

Economic cycles affect marketing Hyper-competition

During a recession almost everyone cuts back. Your business has moved into an environment packed
Consumers spend less. Companies spend less. Many with hyper-competition. You have new, indirect com-
organizations cut back on all types of spending, in- petitors who you need to compete with using content
cluding marketing, although there are exceptions, marketing to gain visibility in the search results and
such as Procter & Gamble, who ‘automatically social media. You are also in a borderless market with
raise their marketing expenditure in a recession’ competitors from all over the world. You are also in a
(MacNamara, 1991). As Quelch and Jocz (2009) say, category-less market with competitors from other
during a recession ‘indiscriminate cost cutting is a business sectors trying to acquire your customers.
mistake’. During a recession many buyers search for Once upon a time, supermarkets sold groceries
better deals, which include price cuts, extended terms and petrol stations sold petrol. Today supermarkets
and value-for-money sales promotions. These pro- sell petrol as well as pet insurance, BBQs and
motions do not necessarily increase brand loyalty; clothes, while petrol stations now also sell groceries,
however, ‘brand-building advertising’ does, unsur- DVDs, fresh coffee, internet connection and more.
prisingly, build brands during any economic cycle. We live in a category-less world determined by
strength of brand and the ability to grow via share of
wallet (selling a wider range to the same customer)
Recession-induced psychological rather than just share of market. Does the Apple
change Watch compete with Samsung, Swatch or Amazon?
Consumer markets have changed because of previ- Can the big platform companies like Google,
ous recession-induced psychological change, which Facebook, Amazon or BAT (Baidu, Alibaba or
moved people away from the self-indulgence and Tencent) move into any market they choose?
excess of the ‘me, mine, more’ mentality of the pre-
millennium to the ‘learning to live with limitations’ Hyper competition in your pocket
of the post-millennium. Amazon and eBay mobile apps compete with all re-
This could affect buying behaviour and the spe- tailers. The apps invite customers, while in a com-
cific types of advertising messages, for example a petitor’s retail store, to scan in a product to see how
move away from images of personal achievement to much cheaper they can get it via the app (plus they
images about personal relationships, or even a move deliver it to your door). Plus, there are many other
away from advertising that is built around the user ‘price comparison apps’.
imagery (from where ‘the user is the hero’ to where So, retailers have to have even better apps (that
‘the product is hero’). This suggests that advertising add value rather than compete on price) to compete
will have to provide more hard information as con- inside your hyper-competitive pocket. Meanwhile
sumers buy more carefully, seeking out the best Amazon can target ads at customers within a radius
deal, and display a price consciousness that rejects of one mile of a competing store.
premium-price brands for better-value products (This hyper-competition section is taken from
that provide relevant benefits and excellent perfor- Smith, 2019.)
mance. Marketing messages change to match the
mood created by the state of the economy. Equally,
marketers must monitor the overall business envi- Fashion vs pharma wars?
ronment for high-impact events such as a recession
or banking crisis, to be ready to react and, ulti- ‘Levi’s see themselves competing with the
mately, to reflect the changing set of needs that peo- pharmaceutical companies when their
ple acquire as their circumstances change. “smart-clothes” start improving people’s health
and reducing the need for medication.’
Healthy economy = healthy Smith (2019)

competition
Healthy competition is deemed to be good for a healthy There is even more hyper-competition for your cus-
economy. Hence governments support ­start-ups and tomers’ attention coming from brands that appear to
digital disruptive start-ups. Meanwhile, competition is be way outside your category and perhaps even your
becoming more intense as hyper-competition emerges. country; eg Honda Cars head of marketing content
 306 Part One | Communications Background and Theories

(UK) sees itself competing with Red Bull and Coca-

Cola in terms of competing for attention via content treasury responded: ‘The Commission’s actions
marketing (see content marketing Chapter 15). could threaten to undermine foreign investment, the
business climate in Europe, and the important spirit
of economic partnership between the US and the
Anti-competitive laws
EU’ (Kottasova, 2016).
Free and open competition is deemed essential to a
healthy economy in a capitalist world. Therefore
there are regulatory bodies that protect fair competi-
tion. They also issue very large fines for any breaches
of fair competition. In the UK, the Competition and Worldwide competition authorities
Markets Authority (CMA) is responsible for Worldwide competition authorities ban ‘unfair meth-
strengthening business competition, and for both ods of competition’ and ‘unfair or deceptive acts or
preventing and reducing any anti-competitive activi- practices’. The Federal Trade Commission (FTC), a
ties in the UK. You can alert the CMA about any bipartisan federal agency in the USA, has a unique
anti-competitive practices (eg price fixing and bid dual mission to protect consumers and promote com-
rigging), or perhaps a market not working well, or petition. The FTC bans ‘unfair methods of competi-
any unfair terms in a contract or issues related to tion’ and ‘unfair or deceptive acts or practices’. Over
poor competition. The CMA took over from the the years, Congress has passed additional laws giving
Competition Commission in 2014. the agency greater authority to police ­anti-competitive
practices.
European competition policy
The European Commission ensures that European
competition policy is implemented. The legislation Fines for
is contained in Article 101 of the Treaty on the anti-competition
Functioning of the European Union (1958). It is de-
signed to prevent, or correct, anti-competitive be-
haviour. The main areas of legislation include rules Google fined a total of €8.2 billion for
on antitrust, mergers, cartels, and state aid. anti-competitive restrictions
‘European authorities on Wednesday fined
Apple’s €13b tax bill Google 1.5 billion euros for antitrust violations in
the online advertising market, continuing their
‘Apple paid tax at 1 per cent, or less, on profits efforts to rein in the world’s biggest technology
attributed to its subsidiaries in Ireland, well below companies. The fine, worth about $1.7 billion, is
the 35 per cent top rate of corporate tax in the the third against Google by the European Union
United States and Ireland’s 12.5 per cent rate’ since 2017, reinforcing the region’s position as
(Kottasova, 2016). The European Commission, which the world’s most aggressive watchdog of an
administers EU law, has therefore ordered Ireland industry with an increasingly powerful role in
to recover unpaid taxes, plus interest, from Apple society and the global economy. The regulators
dating back to 2003. The European Commission said said Google had violated antitrust rules by
the Irish Government had granted illegal state aid to imposing unfair terms on companies that used
Apple (AAPL) by helping the tech giant to artificially its search bar on their websites in Europe. The
lower its tax bill for more than 20 years. European fines against Google total roughly
The EU Commission demanded Apple pay back 8.2 billion euros, or $9.3 billion.’
€13 billion tax to the Irish Government. The US Satariano (2019)
 10 | The Changing Communications Environment 307

Competitive advantage: Continually substantiated by the following statement from 15

years ago: ‘Corporate brands are starting to replace
changing character brands. Kids are starting to grow up at an
All products and services continually tend towards earlier age and so move away from characters and
becoming commodities as competitors copy what- into brands sooner. Their pocket money is spent on
ever succeeds. It follows, that the design of the fun- items such as mobile phones and branded merchan-
damental product or service, on its own, is less dise’ (Levy, 2003). Young people also prefer to text
likely to deliver sustainable competitive advantage. rather than talk when using their mobiles. They also
Some feel that strong brands and a data-driven cul- see grammatically correct sentences in ads, on televi-
ture can combine to deliver a new competitive ad- sion or the internet, as outdated (Lindstrom, 2003).
vantage. As you monopolize your own mini market
(through your own database) you create a protec-
tive wall (built on brand relationships) around your
customers that stop the invasion of competitors. The changing world is no longer black
Some say that content marketing can also create a or white
new source of differentiation, in fact a new source of
competitive advantage. It certainly can (particularly Who would have thought the world’s favourite
if you can establish authority, or expertise, on the golfer would be a black man and the world’s
topic). At least, that is, until competition copies it. favourite rapper would be a white man? Tiger
Going back to the brand and the customer data- Woods and Eminem were once the world’s best,
base, this only works as long as all of the customer and, who knows, may one day be number one in
touchpoints deliver a single consistent customer their respective fields once again.
experience that continually adds value to the CX. An
integrated, added value CX is also seen as a source of
competitive advantage.
For more on analysing your own competitive
advantage watch the four-minute video on http://
Shrinking attention spans
prsmith.org/blog/. Search for ‘competitive advan- And all the while customers’ attention spans shrink,
tage’ to see Professors Urbani and Davis’ unique email open rates plummet and social media engage-
approach to analysing competitive advantage. ment nosedives; the information fatigued, multi-
tasked, semi-burnt-out customer has limited time and
desire to keep giving their personal data to more and
more organizations that ask for it. So, ‘first in’ (first to
Social change get the sign-ups) wins. The ‘connected customer’ will
expect the ‘internet of everything’ (everything con-
Norms, values and roles change. Today, fathers nected) to deliver highly relevant, added-value con-
change nappies, cook dinners and shop in super- tent and personalized experiences continuously.
markets. Many women earn more than their male
partners. Roles are becoming less clearly defined. It
is no longer abnormal to have two working parents. Increasing fear
Children are growing old younger, and many adults
Although we have more material goods are we
feel fatigue beyond their years as they suffer ‘infor-
more secure individually and collectively, do we feel
mation fatigue syndrome’ (too much information),
content, comfortable and relaxed with ourselves
which weakens the effectiveness of marketing com-
and our surroundings? Or do we worry about work,
munications, as audiences simply cannot digest all
war, family breakdown, isolation (online and off­
the information being thrown at them.
line)? Do we fear strangers and immigrants? Back
Young men find a lot of pressure out there and
in 2003 this was observed by Lindstrom, who said
are not sure what their role is (see Chapter 4 for
tweens (8- to 14-year-olds) had common fears, in-
more). Children are growing old younger. This is
cluding terrorism and family breakdown.
 308 Part One | Communications Background and Theories

F I G U R E 10.2 Miracle teenager survives on his own for almost six hours with no wifi

Miracle Teenager Survives On His Own For Almost 6

Hours With No Wi-Fi
IN what has been hailed as ‘a miracle’, one Waterford teenager has reportedly
suvived in his home with no connection to the internet for almost 6 whole hours.
WATERFORDWHISPERSNEWS.COM

SOURCE: www.waterfordwhispersnews.com

Device junkies “more relevant offers, goods and services”.

Facebook ranked last. A 2018 Honest Data poll
We are device junkies. We prefer to text rather than
found that US citizens think Facebook is worse
talk. We seem to need to be connected 24/7 to
for society than McDonalds or Walmart. The
brands, people, experiences, and some of us even
sleep with our phones! The wonderful satirical piece only company ranked worse than Facebook was
in Figure 10.2 actually reveals a lot about us, and, in Marlboro. A 2018 CB Insights survey asked
particular, the new generations coming through. which company will have a net negative for
society 10 years from now? “The answer was
pretty overwhelmingly Facebook.” And yet…
Time poor And yet… Facebook revenue rose to $16.9 billion
in the last three months of 2018, up 30 per cent.
We say that we value our privacy and that we won’t
Monthly active users rose to 2.32 billion, up 9 per
casually give our personal details away any more. But
cent. Consequently, Facebook’s share price
time may be a new currency with even greater value
than privacy. Are we so time-poor that we are pre- soared more than 13 per cent.’
pared to trade our privacy for convenience? Read on. McGovern (2019)

Is time a more valuable currency than privacy? Are

we so time-poor that we just don’t pay attention to
We trade privacy for convenience our data use or abuse?

‘Adweek reported on a survey which asked US

adults how they would trust 100 of the biggest
brands with their personal data in exchange for
 10 | The Changing Communications Environment 309

Customer rage Customer feedback is falling

Alongside the customers’ growing need for connec- Less trust in government, brands and professions,
tivity, we find other trends, some more surprising and survey fatigue – a typical Pew Research tele-
than others: phone survey customer response rate fell from 36
per cent to just 9 per cent over approximately 10
●● customer service is falling; years to 2016. The possible causes for the general
●● customer trust is falling; decline in feedback response rates include: ‘less trust
●● customer rage is rising; in government, brands and professions, and survey
fatigue’ (Bolling and Smith, 2017)
●● customer attention spans are shrinking; (This customer rage section is taken from Smith,
●● customers have less time; 2019.)
●● customer patience is falling;
●● customer feedback is falling.
OK, Google, sort out my life, please
Customer service is falling ‘We cannot even answer the most basic
Seventy-five per cent of customers believe it takes questions about you because we don’t know
too long to reach a live agent, while more than 66 enough about you. The goal is to enable Google
per cent end up hanging up in frustration. Sixty-
users to be able to ask questions like “What
seven per cent of customers hung up the phone out
shall I do tomorrow?” and “What job should
of frustration they could not talk to a real person
I take?” This is the most important aspect of
(Lobo, 2017).
Google’s expansion.’
Smith (2008)
Customer trust is falling
Two-thirds of the 28 countries surveyed in the
Edelman Trust Barometer have revealed that the Humanity may change more in the next 20 years
general population did not trust the four institu- than in the three hundred years previous. Billions of
tions (business, media, government and NGOs) to things, devices, objects will be connected and some
‘do what is right’. This means ‘people’s trust has de- of these things will be inside of us (and therefore
clined’ (Harrington, 2017). becoming a part of us). Here is futurologist, Gerd
Leonhard, who borrows thoughts from Ray
Customer rage is rising Kerweil, Elon Musk et al. You might find this ‘peep
at the future’ interesting…
Consumers and advertisers are at war. Consumers
surrender their personal information which is then
collected and sold back to advertisers for a ‘capitalist
micro-assault [that] is, from all directions at all wak-
ing moments… getting much more intense, focused,
Rampant change: Humanity is about
targeted, unyielding and galactically more boring’ – to change forever
Doug Coupland’s apocalyptic words (2015).
‘Our contact lenses will be connected to the
internet. NanoBots will be inside us fixing our
Customer attention, patience
cholesterol… Life will be magical, abundant,
and time are falling full of possibilities, what could be better?
With attention spans shrinking (from 42 to 4 sec- What makes us human will never change…
onds) in roughly 50 years, and people having so much connectivity is the new oxygen... We need it to
more ‘to do’ via their mobile apps (and other activi- live… even at the price of losing our privacy?
ties), it may follow that people’s patience is shrinking. Your connected car, your smart fridge, your
 310 Part One | Communications Background and Theories

wearables will talk to your doctor and your Ethics

insurance company. Yes indeed, data is the
new oil. These exponential changes are Social consciousness among buyers is important.
unstoppable. Man and machine will converge. However, the degree of importance can change over
We are about to transcend humanity. Is it time. Perhaps it is linked to economic cycles; for ex-
creepy or useful? Is it heaven or is it hell? What ample, during economic downturns does ethics fall
down the ladder of importance? However, many
will it mean to be human in a world where
customers want to know more about products and
everyone will need to be amplified or
their producers. Do the products or producers dam-
augmented by algorithms?
age the environment? What do the producers do in
By 2027 computers are likely to match the
the community? Do they donate political funds? Do
capacity of the human brain, perhaps even
the organizations disclose information, and so on?
reach some kind of awareness or emotional
intelligence. Yes AI and cognitive computing are
incredibly powerful. But if we fail to consider Blockchain tracks chocolate to stop slavery
the unintended consequences such as, for
instance, an intelligence explosion, these ‘An inspiring experiment to track down sources
advantages could be more dangerous than of chocolate beans and to ensure local farmers
nuclear weapons. Why would we expect robots get paid a decent price by the major brands.
or AI to share, or even understand, human Allows consumers to make more informed
values, ethics and emotions? Technology purchasing decisions about the ethics behind
doesn’t have ethics, but the future of humanity major brands.’
depends on it. Davis (2019)
We need to spend just as much time on the
norms, and the value and the context than we
spend on technology itself. After all, the future Many buyers know that shopping is the economic
is not just something that happens to us, the ballot box of the future. And investors also are be-
future is something that we create. Are you coming increasingly interested in the corporate citi-
ready for your futureshock? See where the zenship of organizations that they might consider
story takes us next: data wars and privacy; funding.
exponentiality; transhumanism; singularity: Banks are becoming weary of lending funds
heaven or hell; IoT; AI; towards abundance; to higher-risk, environmentally poor companies.
digital ethics; ego to eco; algorithms to Insurance premiums will also reflect the higher risk
humarithms; digital obesity; sustainable of non-green companies. The corporate responsibil-
ity record is now a criterion in joint ventures. For
capitalism; networked society; robot love.’
example, who wants to invest time and money in an
Leonhard (2019)
organization that has a poor environmental record?
To put it another way, who wants to inherit a green
time bomb? (Note that banks will also not do busi-
ness with clients who ignore GDPR regulations.)
Attitudes towards issues change. Once, environ- Some estimates suggest that a ‘green screen’, or
mentalists and ethicists were considered to be hip- false green claims by corporations, will last only a
pies, communists, anarchists or outcasts because short period, since probing pressure groups, investi-
of their lack of conformity with other people’s be- gative journalists, scrutinizing financial analysts
liefs, values and attitudes. Today, most political and information-hungry customers will eventually
parties and major corporations recognize the im- reveal a much bigger problem than that which was
portance of environmental groups. Ethics is creep- originally hidden. This implies that the marketing
ing back up the charts of consciousness as ‘business people have a vested interest in ensuring that an
purpose’ becomes popular again, and more so, eth- organization operates in a socially responsible man-
ics is now deemed critical in AI. Let’s explore some ner. Corporate attitudes towards altruism and eth-
ethics. ics are changing, as are personal religious beliefs.
 10 | The Changing Communications Environment 311

Finally, one extraneous factor that affects the

business environment is the environment itself. If the
Technology
world continues to heat up, northern European atti-
tudes, emotions and feelings about different stimuli This is such a fast-changing variable. We are seeing
(particularly colour) may change. This would affect major changes occurring in the use of Big Data, AI,
almost all forms of marketing communications. MA AR, VR (mirror worlds), IoT, blockchain and
much more. Also see the 4th Industrial Revolution
in Chapter 1.
Demographics
Demographic shifts move markets away from prod- Big Data
ucts. Populations are ageing across the world, ie
populations are getting older. What are the implica- Customer data is everywhere. We leave digital trails
tions of an ageing population? Bigger typefaces and everywhere when we browse, click, scan or fill in a
print to help older eyes read commercial messages? form. And many organizations can gather a lot of it
Many products and services repositioned as the and cross-reference with social media platforms (and
more mature person’s choice? There will still be third-party sources) to gather extra data. Big Data re-
youth markets, but they may not be as attractive, fers to relatively large amounts of both structured and
since they will shrink in size and competition may unstructured data that require machine-based sys-
become quite ferocious. tems and technologies in order to be fully analysed
The falling marriage rate, the increasing divorce and used. Those that collect the data carefully and
rate and the increasing number of births outside analyse it can create competitive advantage. They can
marriage contribute towards the sad term ‘disinte- also extract more value from data (look at Uber and
grating family’. In addition, the number of single- Amazon), and in turn this data adds value to the CX.
person households is expected to increase. Data is the lifeblood of any business.
Decision-making units (DMUs) are changing (see
p 265, ‘Segmentation and target marketing’). Over
60 per cent of mothers in the UK work either part
AI
time or full time, compared with 10 per cent in the Artificial intelligence is not just about businesses’
1930s and 20 per cent in the 1950s. Incidentally, it processes operating more efficiently, AI combined
has been suggested that guilt-ridden working moth- with ‘real’ bots can also tackle other challenges like
ers may ease their discomfort by buying the ‘best’ responding to customer requests – taking orders
brands for their families instead of buying the store’s and payment and delivering meals in restaurants
less expensive own brand. A Gallup poll suggested (Pizza Hut in Japan), answering hotel guest con-
that 90 per cent of working mothers suffer some cierge queries (Hilton McLean, Canada), helping
psychological discomfort in combining the roles of elderly folks in old folks homes (Japanese baby
mother and worker. seals), influencing followers (artificial influencers –
p 160), answering website visitor questions (intelli-
gent chatbots) and helping marketers creatively by
writing higher-impact email subject lines. See the
Hanging out at the oxygen bar word of caution regarding the law of unintended
consequences and AI in Chapter 1, p 18.
Here is an IBM future vision from many years ago:
oxygen bars offering ‘nutraceuticals’ (staple foods Chatbots
packed with vitamins and minerals) and gas for the Chatbots can be just text messages responding to
jet-set hyperactive executives and fun lovers. questions from customers (say on a website or an
Memory drugs, male birth control pills and app or social media platforms) or soon, courtesy of
remote-control surgery might all affect markets, IoT, packaging, point of sale or anywhere really!
their structure, the communications channels and Other chatbots can manifest themselves in human-
communications tools. looking robots. What’s most important is the
­relevance/quality of their answers in the discussion/
 312 Part One | Communications Background and Theories

dialogues they have with customers. AI driven bots example, showing a digital image of a cup on a real
will continually learn and improve their responses. table (while the smart phone/camera points at the
See Chapter 1 to see the growing variety of types of table). Virtual reality (VR), on the other hand, is a
bots (from research bots to ad bots). Also see ‘Here complete immersion experience via headsets that shut
come the really clever bots: Where AI meets cus- out the physical world. Headsets include Facebook’s
tomer needs’, http://prsmith.org/blog/. Oculus Rift or Google’s Cardboard, and users can be
transported into a number of real-world and imagined
environments such as Greenpeace’s Amazon Jungle
Your animal life is over. Machine life experience.
has begun. And coming soon, courtesy of AR, is mirror world
(also known as spatial computing) where everything
This shocking article by Mark O’Connell in the
(and every person will have a digital duplicate).
See ex-editor of Wired Kevin Kelly’s stunning 2019
Guardian in 2017 was shared over 32,000 times. He
article entitled ‘AR will spark the next big tech plat-
believes that we are close to having a machine that
form – call it mirror world’.
replicates the human brain and keeps a version of
us alive forever. See p 19 for more.
Blockchain
A blockchain is a decentralized list of records, called
blocks, which are linked (using cryptography). It is
MA like a public ledger (or record) that records transac-
tions across all computers in a particular network.
Marketing automation reduces a marketer’s work-
This means it is secure since any changes made have
load and delivers highly relevant reactions to a pros-
to be recorded by all subsequent blocks.
pect’s behaviour – automatically – once it has all been
Ray Kurzweil’s Law of Accelerating Returns
worked out in advance. A prospect’s click behaviour,
(Kurzweil, 1999) proposed that the rate of change
or digital body language, triggers automatic market-
in a wide variety of evolutionary systems (including
ing responses like sending a particular type of email,
but not limited to the growth of technologies) tends
or connecting to a salesperson or showing some dy-
to increase exponentially.
namic content on a website. See p 329 for more.

IoT
The 21st century will achieve 20,000
The Internet of Things connects everything via three
things: chips, sensors and wifi. My smart golf club times the progress of the 20th century.
can record the speed and angle of my swing, send
that information to my mobile and show me how to American futurist, Ray Kurzweil suggests that the
improve my game. An IoT fridge could send alarms progress of the entire 20th century would have been
throughout the house when it recognizes that the achieved in only 20 years at the rate of advancement
can of ‘draught’ Guinness that I am taking out of in the year 2000 – in other words, by 2000, the rate of
my fridge is the last can, so it sends an alert to me progress was five times faster than the average rate
with three optional solutions offering different of progress during the 20th century.
speeds of delivery and prices. New IoT partnerships Kurzweil believes that another 20th century’s
can add huge value to the CX and can also allow worth of progress happened between 2000 and
marketers to get their marketing content into the 2014 and that another 20th century’s worth of
hands of new ideal customers too. progress will happen by 2021, in only seven years.
A couple of decades later, he believes a 20th
century’s worth of progress will happen multiple
AR times in the same year, and even later, in less than
Augmented reality adds digital elements to a real live one month. This is the Law of Accelerating
view, often by using the camera on a smart phone – for Returns. Kurzweil believes that the 21st century will
 10 | The Changing Communications Environment 313

achieve 20,000 times the progress of the 20th data shifts (technology), new regulations and laws
century! So, embrace technology developments. (political) or fundamental economic cycles (eco-
We will see all sorts of AI developments – the nomics) that grow or shrink your market, the PEST
most immediate might be better chatbots! Better factors need constant monitoring.
bots simply help customers, in a conversational Behind technology’s physical manifestations, more
way, to find answers more quickly and therefore subtle advances are occurring. Witness marriages
boost conversions. They help customers to ‘get the between technologies such as geographic information
job done’. systems, analytical modelling market analysis and
With 2.5 billion customers using instant data mining. See the ‘semantic web’ as well as digital
messaging (The Economist, 2016) on Facebook, body language on p 329 and l­ocation-based ad cam-
Whatsapp and China’s WeChat an opportunity paigns on p 377. Google Alert and Google News can
even do a lot of a manager’s reading by scanning
opens. Within a couple of years IM will reach about
­journals, newspapers and trade magazines for rele-
half of humanity, ie 3.6 billion (The Economist, 2016).
vant material and printing out headlines, summary
Chatbots can be integrated into many social media
abstracts or complete articles. Robots make our lives
channels.
easier.

Moore’s law: Every 18 months, processing Fast-forward to the semantic web

power doubles, while costs hold constant
Although this was written a decade ago, it is still
‘Gordon Moore, founder of Intel, observed that accurate.
each new generation of computer chips ‘Now, fast forward a few years. You’re still
(semiconductors) doubled in power every 18 happily employed as a software consultant, and
months. This has been valid for 30 years and is today you’re taking a working lunch with one of
predicted to continue for the next 30 years... it your biggest clients. Her company has an
has held since the 1960s, and recent emergency project at its San Francisco branch
developments in so called ‘molecular for which they need you to consult for two
electronics’ – arranging molecules in electronic weeks, and she asks you to get to San Francisco
circuits – suggest improvements are likely to as soon as possible to begin work. You take out
continue for another 30 years.’ your hand-held computer, activate its Semantic
Krugman (2000) Web agent, and instruct it to book a non-stop
flight to San Francisco that leaves before 10 am
the next day. You want an aisle seat if it’s
This means that in just over 30 years computer chips available. Once your agent finds an acceptable
will be 1 million times more powerful than today.
flight with an available aisle seat, it books it using
Note that today’s modern luxury car has more com-
your American Express card and assigns the
puter power than the first human spaceflight craft
charges to your client’s account in your
that landed on the moon.
accounting application. It also warns you that
The internet also provides virtual meeting places,
you’ll be missing a dentist appointment back
virtual discussion groups, virtual greetings cards,
virtual gifts and virtual exhibitions. Invisible com- home during your trip and adds a note to your
puters will be in everything that uses electricity, and calendar reminding you to reschedule. Next, you
3D environments and avatars will increase – both in specify that you want a car service to the client’s
virtual worlds (see Figure 10.4) and in traditional site, so your agent scans the availability of limos
web environments. Virtual reality and augmented with “very good” or higher service ratings and
reality draw from a mash-up of data, allowing even books an appointment to have you picked up 30
richer and more relevant customer experiences. minutes after your flight lands. Your agent also
So change appears to be accelerating – whether books you at your favourite hotel in San
shrinking attention spans (social changes), quantum Francisco, automatically securing the lowest rate
 314 Part One | Communications Background and Theories

using your rewards card number. Finally, the F I G U R E 10 . 3 Years taken to achieve
agent updates your calendar and your manager’s
calendar with your trip information and prints out
25 per cent market penetration, showing the
your confirmation documents back at your office. ever-accelerating speed with which new ideas,
With just a few clicks your Semantic Web agent
products and services penetrate markets
found and booked your flight, hotel, and car
35
service, then updated your accounting system 35
and calendars automatically. It even compared
your itinerary to your calendar and detected the 30
scheduling conflict with your dentist 26
25
appointment. To do all this, the agent had to find,

Years taken
interpret, combine, and act on information from 20
multiple sources. This example, of course, is a
long-term vision for applying the Semantic Web. 15
15 13
It’s one that may or may not come to fruition,
and only the future will tell. However, the vision 10
7
itself is important for understanding the
5
potential of Semantic Web technologies.’
Altova (2010) 0

et
PC
TV
on

on

rn
ph

ph

te
le

In
ll
Te

Ce
The Semantic Web will make life even easier. Software Technology
will talk to software, documents and a lot more. Tim
Berners-Lee, the British inventor of the World Wide
do so at their peril. However, marketers must de-
Web, defines the Semantic Web as ‘a web of data that
velop their ability to recognize and separate signifi-
can be processed directly and indirectly by machines’.
cant trends from insignificant fads.
Data can be processed independently of application,
platform or domain; in fact, data can become part of
the web.
Summary
The increasing pace of change An open mind helps in exploiting trends and emerg-
There is no doubt that change will continue to affect ing opportunities more quickly than a closed mind.
organizations. Those who ignore significant trends Change is constant. It churns up new opportunities

F I G U R E 10.4 Virtual worlds can, and do, co-exist alongside the real world
 10 | The Changing Communications Environment 315

F I G U R E 10.5 A manifesto for human-centred marketing

SOURCE: Reproduced with kind permission of Mark Schaefer, author, Marketing Rebellion
 316 Part One | Communications Background and Theories

and threats in all markets. The only certainty is that social trends – AI. Marketers must lead the field
all markets constantly pull away from the status with its understanding of AI, its unintended conse-
quo, fuelled by an ever-increasing array of variables quences and how it can be used to add value for
easily categorized under the PEST factors. Change customers and, most importantly, to create a better
is accelerating right now. It is every marketer’s re- world for all.
sponsibility to observe, analyse and anticipate fu- Figure 10.5 shows a nice graphic from top
ture developments in their marketplace and, in American columnist and author Mark Schaefer,
particular, in the changing communications envi- who passionately believes that to succeed in the
ronment. Watch all technical developments, and in long term, marketers must be more humanist.
particular the one that affects political, economic, However, not everyone agrees (see the discussion on
the PR Smith Marketing LinkedIn page).

Key points from Chapter 10

●● The constant nature of change in markets ●● Building risk assessment into marketing plans
presents a constant flow of opportunities and (particularly including economic risks) makes
threats. sense.
●● The laws and regulations change also. Ignoring ●● Mapping social change is critical as marketers
them can be a costly affair. aim to reflect customers’ social feelings, values,
roles and norms.

References and further reading

Adams, R, Carruthers, J and Hamil, S (1992) Brinker, S (2015) Marketing technology landscape
Shopping for a Better World, Kogan Page, London supergraphic, Chief Marketing Technologist Blog,
Akhtar, O (2014) Who is winning the marketing 12 January [online] https://chiefmartec.com/
cloud wars? The Hub (archived at https://perma.cc/K3XT-YJ2W)
Altova (2010) What is the Semantic Web? Altova Brøndmo, H (2003) Save the customer attention
Library [online] www.altova.com (archived at ecosystem, ClickZ, 14 July
https://perma.cc/7K4B-D5XV) Byron, D, Kievman, N and Schrum, R (2010) Why
Anning, P (2007) FSA helps ICO with £980K data executives hate social media: An executive’s guide
fine as Halifax could be next, Osborne Clarke to social media, Deming Hill
BBC (2019) Social media: How can governments Central Statistical Office, Social Trends (annual)
regulate it? BBC News, 7 February (gives demographic breakdowns and forecasts)
BBC News Online (2008a) Company loses data on Cetron, M and Davies, O (1992) The Futurist (World
criminals, 21 August Future Society), summarized in Crystal Globe: The
BBC News Online (2008b) Previous cases of missing haves and the have-nots of the new world order,
data, 25 May St Martin’s Press, New York
Belicove, M (2013) Content marketing study suggests Chaffey, D and Smith, PR (2013) Emarketing
most content marketing doesn’t work, Forbes, Excellence, 4th edn, Routledge, Abingdon
10 September Chaffey, D and Smith, PR (2017) Digital Marketing
Bolling, K and Smith, P (2017) Declining response Excellence, 5th edn, Routledge, Abingdon
rates and their impact, Ipsos Mori, Kantar, GFK & Chartered Institute of Management (CIM) (2010) Fact
NatCen, 29 June File: Marketing and the law, CIM, Maidenhead
Brinker, S (2008) Marketing in the semantic web, Coupland, D (2015) We are data: The future of machine
Chief Marketing Technologist, 2 March [online] intellingence, FT [online] https://www.ft.com/
https://chiefmartec.com/ (archived at https:// content/475789b8-2b2b-11e5-acfb-cbd2e1c81cca
perma.cc/K3XT-YJ2W) (archived at https://perma.cc/VPC9-KKL9)
 10 | The Changing Communications Environment 317

Davis, C (2019) This company is using blockchain Kelly, K (2019) AR will spark the next big tech
technology to eradicate slavery in the chocolate platform – call it mirror world, Wired, 2 December
industry, Forbes, 31 March Kirkpatrick, M (2010) Google CEO Eric Schmidt:
Doyle, P (1992) What are excellent companies? ‘People aren’t ready for the technology revolution’,
Journal of Marketing Management, 8, pp 101–16 readwrite, 4 August
Dwight, M (2007) Lifestyle stories, Services, March Knowlton, C (1991) Shell gets rich by beating risk,
[online] https://www.pe.com/ (archived at https:// Fortune, 26 August, pp 51–53
perma.cc/G6YS-VCT8) Kottasova, I (2016) EU hits Apple with $14.6 billion
eConsultancy (2015) Quarterly digital intelligence tax bill, CNN Business, 30 August
briefing: digital trends Krugman, P (2000) Unleash after 100 years of trial
Enterprise Risk Management Integrated Framework and error, Fortune, 6 March
(2004) COSO (Committee of Sponsoring Kurzweil, R (1999) The Age of Spiritual Machines,
Organisations of the Treadway Commission) Penguin
European Commission, Consumer Rights (2015) Leonhard, G (2019) Are we living in a Mirrorworld?
Your rights in consumer contracts, 23 March (asks Kevin Kelly, with reference to Magic Leap),
Farrell, D, Ghai, S and Shavers, T (2005) The 19 February [online] www.futuristgerd.com/
demographic deficit: How aging will reduce global (archived at https://perma.cc/M3B6-LLQM)
wealth, McKinsey Quarterly, March Levy, A (2003) Unlock the equity in your brand,
Fox, C (2019) Google hit with £44m GDPR fine over Marketing, 24 April
ads, BBC News, 21 January https://www.bbc. Lindstrom, M (2003) Brandchild, Kogan Page, London
co.uk/news/technology-46944696 (archived at Lobo, J (2017) 3 options for using chatbots for
https://perma.cc/ZY4Z-BVYT) ecommerce, Smart Insights, 11 December
Grey International Advertising (1992) The Post- Long, W (2013) EU Data Protection Regulation: fines
Recession Marketplace: Life in the slow lane, Grey up to €100m proposed, Computer Weekly,
International Advertising, New York November
Griffin, A (2015) Facebook users sue site over data MacNamara, W (1991) A new discipline, Marketing
collection, demand compensation for privacy Week, 6 December, pp 34–37
breaches, Independent, 9 April Marr, B (2018) The 4th Industrial Revolution is here:
Guardian (2019) Much to fear from post-Brexit trade Are you ready? Forbes, 13 August
deals with ISDS mechanisms, Guardian, 20 February McGovern, G (2019) Use and convenience replace
Gwyer, M (1992) Britain bracing for the age bomb, trust and security, 3 February [online] http://
Independent on Sunday, 29 March gerrymcgovern.com/ (archived at https://perma.cc/
Harrington, M (2017) Survey: People’s trust has GF3D-CV9F)
declined in business, media, government and McLellan, L (2012) By 2017 the CMO will spend
NGOs, HBR, 16 January more on IT than the CIO, webinar, Gartner
Hope, M (2014) 5 things businesses need to know: Murphy, D (2003) Stopping careless texting to
The new EU Directive on consumer rights, Digital children, Marketing, 3 April
Doughnut, 20 February Ohmae, K (1983) The Mind of the Strategist, Penguin
Howarth, A (2015) Google in dock over Safari Business Library, London
privacy breach cases, The Scotsman, 27 March Ohmae, K (1999) The Borderless World, revised edn,
Hubspot (2011) The Facebook marketing update, Collins, London
Spring 2011: Who’s blogging what? Ohmae, K (2002) Triad Power: The coming shape
Hunter, D (2019) British firms suffer 10,000 data of global competition, 2nd edn, Free Press,
breaches in GDPR era, GDPR Report, 11 February New York
ICO (Information Commissioner’s Office) (2019) Oliver, M (2012) Quarantining Facebook to control
Guide to the General Data Protection Regulations tracking, ZD Net, 3 July
[online] https://ico.org.uk/for-organisations/ Pegg, D (2019) Cambridge Analytica owner fined £15,000
guide-to-data-protection/guide-to-the-general-data- for ignoring data request, Guardian, 9 January
protection-regulation-gdpr/ (archived at https:// Pohl, M (1991) UK unaware of legal pitfalls in US,
perma.cc/LF9P-PZVU) Marketing Week, 13 September
Jankowski, S (2014) The sectors where the internet of Precision Marketing (2006) Privacy: Do Not Call
things really matters, Harvard Business Review means business, 6 January
Global Editions, 22 October Press Association (2015) Google loses appeal bid over
Keegan, V (2002) The web needs its own police, suing, 27 March
Guardian, 19 December
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Quelch, J and Jocz, K (2009) How to market in a Smith, D (2008) Google, 10 years in: Big, friendly
downturn, HBR, April giant or a greedy Goliath? Observer, 17 August
Reynolds, J (2012) Nike ticked off for Rooney and Smith, PR (2019) SOSTAC® guide to your perfect
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cc/7287-8SYD) Solis, B (2012) The erosion of privacy and the rise of
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divisive new copyright plan explained, Wired, 24 [online] www.briansolis.com (archived at https://
May perma.cc/5VSL-G6WR)
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Cassell, London six mistakes executives make in risk management,
Robinson, M (2015) Is democracy threatened if Harvard Business Review, guest edn, The
companies can sue countries? BBC News, 31 Magazine, October
March The Economist (2003) Real men get waxed, 3 July
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Publishing, Danville, CA

Further information
Advertising Standards Authority European Association of Communication Agencies
Castle House (EACA)
37–45 Paul Street EACA Secretariat
London, EC2A 4LS 152 Boulevard Brand Whitlock
Tel: +44 (0)20 7492 2222 B-1200 Brussels
www.asa.org.uk Belgium
Tel: +32 2 740 07 14
Chartered Institute of Public Relations (CIPR) https://eaca.eu/
4th Floor
85 Tottenham Court Road The European Marketing Confederation (EMC)
London W1T 4TQ Square du Meeûs 35
Tel: +44 (0)20 7631 6900 1000 Brussels
www.cipr.co.uk Belgium
Tel. +32 2 7421 780
Department for Business, Energy and Industrial https://emc.be
Strategy
1 Victoria Street Fax Preference Service (FPS)
London SW1H 0ET DMA House
Tel: +44 (0)20 7215 5000 70 Margaret Street
https://www.gov.uk/government/organisations/ London W1W 8SS
department-for-business-energy-and-industrial- Tel: +44 (0)20 7291 3300
strategy Fax: +44 (0)20 7291 3301
https://dma.org.uk/
 10 | The Changing Communications Environment 319

Institute of Practitioners in Advertising (IPA) and artificial intelligence. During the Second World
44 Belgrave Square War he worked for the government breaking the
London SW1X 8QS enemies’ codes and Churchill said he shortened the
Tel: +44 (0)20 7235 7020 war by two years. In 1950, he published a philo-
www.ipa.co.uk sophical paper including the idea of an ‘imitation
game’ for comparing human and machine outputs,
The Institute of Promotional Marketing Ltd now called the Turing Test. He was later convicted
Holborn Town Hall of ‘indecency’, as being gay was a crime in the UK
193–197 High Holborn at that time. He died from eating an apple laced
London WC1V 7BD with cyanide. He was only 41 years old.
www.theipm.org.uk Today, their website includes posts such as:
‘Alexa, Siri, Eno, Kai: Can we trust you?’ and
ITV Consumer Limited ‘Questions we should be asking about AI in the
2 Waterhouse Square financial industry’.
Holborn
London EC1N 2AE Open Data Institute
www.itv.com 3rd Floor
65 Clifton Street
Ofcom London EC2A 4JE
Riverside House Tel: +44 (0)20 3598 9395
2a Southwark Bridge Road https://theodi.org/
London SE1 9HA
Tel: +44 (0)300 123 3000 The Open Data Institute works with companies
www.ofcom.org.uk and governments to build an open, trustworthy
data ecosystem, where people can make better
Public Relations Consultants Association (PRCA) decisions using data and manage any harmful
82 Great Suffolk Street impacts. The ODI was co-founded in 2012 by the
London SE1 0BE inventor of the Web Sir Tim Berners-Lee and
Tel: +44 (0)20 7233 6026 artificial intelligence expert Sir Nigel Shadbolt to
www.prca.org.uk show the value of open data, and to advocate for
the innovative use of open data to affect positive
There are many other fascinating organizations change across the globe.
whose goals are to help people embrace some of
these changes for the better including: the Open Blockchain Research Institute
Data Institute, Alan Turing Institute, Blockchain 111 Peter Street, Unit 503
Research Institute and Customer Data Platform Toronto
Institute. ON Canada
M5V 2H1
Alan Turing Institute Tel: +1 416 863 8800
British Library www.blockchainresearchinstitute.org/
96 Euston Road
London NW1 2DB The Blockchain Research Institute was founded by
www.turing.ac.uk/ Don Tapscott (an American author) based on the
belief that blockchain offers an opportunity to
The Alan Turing Institute is the national institute realize the original promise of the digital era. Its
for data science and artificial intelligence. Alan manifesto, A Declaration of Independence, lists the
Turing is often called the father of modern comput- following chapters: the Fourth Industrial
ing. He developed the idea of the modern computer Revolution; globalization; climate change; structural
 320 Part One | Communications Background and Theories

unemployment; growing inequality; asymmetrical Customer Data Platform Institute

power; crisis of democracy; ineffective government; www.cdpinstitute.org
failing institutions; fragmentation of public dis-
course; civil society and more…. The Customer Data Platform Institute is a
vendor-neutral organization dedicated to helping
marketers manage customers. It educates market-
ers and marketing technologists about how
customer data platforms can solve critical
marketing data needs.
 321

PART TWO
Communications
tools
322

THIS PAGE IS INTENTIONALLY LEFT BLANK

 323

11
Selling, social selling,
marketing automation
and martech
LEARNING OBJECTIVES
By the end of this chapter you will be able to:
●● understand the purposes of different types of sales teams;

●● map out the key stages and skills required of key account management and account-
based marketing;
●● understand how marketing automation and martech can help sales teams sell more;
●● begin to manage the sales force;
●● identify different ways of extending your sales force.

Introduction 324 Recruiting 336

How can digital help sales teams? 324 Training 337
Functions of selling 325 Four digital steps to help sales teams 339
Responsive vs prescriptive selling 325 Motivating 339
Consultative selling 326 Controlling 340
Key account management 326 Time: The scarce resource 341
Account-based marketing 328
The SOSTAC® approach to ABM (adapted from Extending the sales force 341
LinkedIn’s ABM steps) 328 Types of sales force 341
Integrating the sales force
with the communications mix 328 Advantages and disadvantages of a sales
Integrating sales with online activity 328 team 346
Marketing automation 329 Advantages 346
Social selling 329 Disadvantages 346
Reverse forensics prospecting 330
Real-time conversation prospecting 332 Summary 346
Social media prospecting 332
LinkedIn prospecting 332 Key points from Chapter 11 346

Managing the sales force 334 References and further reading 347
Types of salespeople 334
 324 Part Two | Communications Tools

Introduction returns the next day, all he sees is bodies, all

scorched, burning and screaming. ‘But this isn’t the
The word ‘sales’ is conspicuous by its absence in job same place,’ he shouts at St Peter in the distance.
titles on business cards. ‘New business develop- ‘Oh yes, it is,’ St Peter replies. ‘Yesterday you were
ment’, ‘account manager’, ‘key account manager’, a prospect. Today you are a customer!!’
‘relationship manager’ and ‘marketing executive’
are often preferred, yet selling’s impact on the bot-
tom line at some stage is usually vital. The ‘selling’ Today, selling has moved away from the short-term,
stigma is surprising, given the size and importance quick-sale scenario of offering prospects the most fan-
of selling. The sales force budget allocation varies tastic products and services and then not following
according to industry type, but often, in B2B mar- through with the promise. Selling has also moved
kets, more budget is spent on sales teams than on away from recruiting and t­raining combative sales-
advertising or PR. people. Instead they are being transformed into
B2B markets depend on personal selling more ­‘customer servants’. Selling today is more about ‘part-
than B2C marketing. Winning an order for, say, a nering’ and relationship building: ‘You don’t sell to
heavy industrial machine cannot be done by adver- people; you partner with them.’ This is particularly
tising, direct mail or telesales (telephone selling). true with key account management (KAM), which re-
This kind of selling requires top-level expert sales quires a more strategic approach to selling. Today sell-
professionals. Consumer goods, on the other hand, ing is about building durable relationships that are
rarely use personal selling to the end user or con- dependent on satisfying the customer constantly. IBM
sumer because of the high cost per sales visit. today is following a growing trend towards paying the
Nevertheless, consumer products do need salespeo- sales force salaries partly on customer satisfaction.
ple to sell or ‘push’ the product into the retail chains Many companies are now measuring success not just
(and the wholesale chains). by units sold but also by the far more rigorous yard-
There was an era when selling was all about stick of customer ­satisfaction.
short-term tactics, quick sales, in–out and on to the
next unsuspecting prospect. This is short-term trans-
actional marketing, which in the long run reduces The changing salesperson
sales and profits. This approach to selling gave sales-
people a bad reputation – probably best summarized ‘I sold systems that people didn’t want, didn’t
by the well-known Heaven and Hell story. need and couldn’t afford.’
Bill Gardner, IBM veteran with
23 years’ service, now retired
Heaven or Hell – where do salesmen go?
‘Forty-five per cent of the variable component of
A man dies and arrives at the Pearly Gates, where my pay cheque depends on how Jon Gorney at
St Peter tells him he cannot enter until Hell has National City Corporation rates me.’
been given an equal opportunity. Although the man Don Parker, IBM salesperson
knows he wants to go to Heaven, St Peter insists
that he checks out Hell first. To his amazement, the
man discovers that Hell is a party town, with How can digital help sales teams?
free-flowing drink, good music, lots of friendly
supermodel lookalikes everywhere, perfect Today, due to hyper-competition and other change
weather, immaculate golf courses, football pitches, factors, delivering sales growth is difficult enough
super-fast broadband and white sandy beaches. for a single-product company; imagine what it is
Best of all, everyone is friendly and concerned that
like for a large, decentralized sales team with chan-
nel partners all over the world. Although everyone
the man feels comfortable in his new surroundings.
knows this, many senior sales people simply ‘do not
St Peter appears and asks the man for a decision,
put sufficient energy into driving that change, eg ad-
upon which the man says, ‘Hell’s for me!’ When he
vances in digital and analytics’ (Chappuis et al,
 11 | Selling, Social Selling, Marketing Automation and Martech 325

2018). We will see later how marketing automation, ●● all the data;
Big Data and sales tools like reverse forensics and ●● case studies;
LinkedIn Navigator can help sales teams.
●● testimonials;
●● a suite of options.
Functions of selling But Toman et al’s (2017) research, reported in the
The purpose of selling is not just to sell. Master Harvard Business Review, suggested otherwise be-
salespeople gather intelligence and build relation- cause the responsive sales technique actually de-
ships (which can, in turn, create competitive advan- creases purchase ease by 18 per cent (according to
tage). Research suggests that as little as 10 per cent their survey of more than 600 B2B buyers). They
of a salesperson’s time is spent actually face-to-face discovered that piling on more information and
‘selling’. In addition to prospecting, appointment ­options just makes it more difficult for buyers.
setting, letter writing, travelling, training and admin-
istration, many salespeople are also responsible for Prescriptive sales technique
some customer care, post-sales service, entertaining,
intelligence gathering, forecasting, understanding increases purchase ease
customers, developing customized solutions, team Toman et al discovered that a more proactive, pre-
selling, etc. Some managers say that ‘Customers seek scriptive approach increased purchase ease by 86
longer-term relationships with fewer suppliers than per cent.
formerly, and in return for security of business ask Prescriptive suppliers give buyers:
their suppliers to do more for them.’ Forecasts sug- ●● a clear recommendation for action;
gest that there will be a concentration of key ac-
counts (large customers) and they will need suppliers ●● backed by a specific rationale;
who work with them as strategic partners instead of ●● a concise offering;
adversaries (see the sections ‘Consultative selling’, ●● a stable view of their capabilities.
‘Key account management’ and ‘Account-based
marketing’ in this chapter) . Toman et al suggest a simple prescription might
The best salespeople are expert listeners. They sound like this: ‘One of the things we’ve learned from
ask intelligent questions and listen carefully. The working with customers like you is that purchasing
best salespeople are masters at capturing data. Since folks are going to get involved, and probably late in
the sales force is in the front line of the market, it the process. And when they come in late, things tend
provides a fast and accurate feedback mechanism. to blow up. So you’ll want to bring them in earlier.
Competitor activity, customer needs, and new When you do that, they will have two main ques-
opportunities and threats can and should be picked tions: X and Y. Here’s how to answer them.’
up by the sales force and fed back, without delay, to
the sales manager or marketing manager. Reasons
Make buying easy wins big business
why an old customer is lost or a new customer is
won should also be fed back immediately.
Sales people who make buying easy are 62 per cent
likelier than other suppliers to win a high-quality
Responsive vs prescriptive selling sale (one in which the customer buys a premium
offering). ‘Purchase ease is by far the biggest driver
Many sales people incorrectly think that a responsive of deal quality’ (Toman et al, 2017). Customers who
sales technique is best, ie responding to customers’ complete a prescriptive, easy sales process are
questions by giving them more and more informa-
dramatically less likely to regret their purchase or
tion, to help buyers make better decisions. Toman
to speak negatively of the supplier, and are more
et al (2017) discovered that responding and supplying
likely to repurchase, than customers in
a lot of information can be counter-productive. Sales
conventional sales interactions.
people trying to be more responsive can actually give
It is important to understand the customer’s
buyers too much support and too much information,
such as when the salesperson gives the buyers: purchase journey:
326 Part Two | Communications Tools

Identify the most significant customer challenge Consultative selling

at each buying stage; arm salespeople with tools
Looking at customers as partners with whom a com-
to help overcome each challenge; trace the
pany wishes to develop a long-term, repeat-business
customer’s progress (so that they can intervene
relationship requires a shift in the business paradigm
at any moment to keep the process on track).
from ‘selling to them’ to ‘working with them’.
Toman et al (2017) B2B selling is no longer just converting features
into benefits. Selling is more to do with problem solv-
ing and strategy fulfilment (for the customer). ‘What is
your requirement and how can we fulfil it?’ is not
Car dealer boosts sales with big data enough. Salespeople have to understand customers’
business strategies and then see how they can help to
‘A car dealer has 2,000 showrooms across fulfil these strategies. GE asked its largest customers
America. The marketing director asked a great what they expected from the GE sales team. Customers
question: “What information does each dealer revealed: ‘The number one thing we expect is excellent
need to sell more cars?” They previously made knowledge of our company, our industry and the envi-
2,000 different decisions to buy stock of cars, ronment in which we do business.’
trim, colours etc. They previously made little or Offering expert advice and consultancy demands
no attempt to use valuable data from the entire an attitude shift where the customer is seen as a
partner rather than just a sales target. The short-
dealer network. The dealer subsequently was
term ‘win–lose’ scenario (the seller gains at the cus-
able to order the optimum mix of stock based
tomer’s expense) is replaced by the longer-term
on a combination of (a) profitability and (b)
strategic partnership ‘win–win’ scenario. This builds
customer appeal (updated in real time). These
customer retention through enhanced customer sat-
insights also made dealers and sales reps
isfaction, which in turn creates a sustainable market-
better informed and able to make better ing advantage. These new partnerships may involve
recommendations to customers, delivering 5 to joint development programmes that might not bear
10 per cent revenue growth with the same or fruit for five or more years. This may seem inefficient
even better margins. in the short term but highly effective in the medium
The adoption rate (of actually using the Big to long term. This is a strategic shift towards KAM.
Data analytics) within nine months was 80 per
cent, which was a striking contrast to a
previous effort where the adoption rate was Master salespeople
below 10 per cent.
What changed? The first time around, the Master salespeople are masters at gathering
company had been clear on what the outcome information. They are equipped with ‘must know’,
needed to be, but it hadn’t taken the individual ‘useful to know’ and ‘nice to know’ questions
dealers’ perspective into account. The dealers before every meeting.
resisted what felt like a top-down idea imposed
on them, because they didn’t really understand
the benefits, and implementation was difficult.
This time, the digital tools that delivered the Key account management
insights were built hand-in-hand with the Key account management means managing the most
dealers from the outset, to understand what important customer relationships. It is strategically
functionality and information was most helpful important and requires highly skilled senior salespeo-
for them. The manufacturer also used an agile ple or senior management. In addition to salespeople
approach to development, refining the tool being able to sell on a personal level, KAM requires
quickly based on real dealer feedback. many other time-consuming skills, including:
Chappuis et al (2018)
●● Solutions selling and collaborative selling,
which generate tailored products or
 11 | Selling, Social Selling, Marketing Automation and Martech 327

services, including ensuring customer 10 steps to KAM

retention, growing lifetime value and share
McDonald and Woodburn (2007) identified 10
of wallet. It is all about value creation for
steps towards developing KAM within an
the client or partner. The initial sale
­organization:
(demonstration, pitch, handling objections,
building trust, presenting proposals, closing 1 Select the right accounts.
the sale and after-sales service) is just the 2 Categorize them for their sales and profit
beginning. Intense collaboration is a potential.
complex, time-consuming joint effort.
3 Analyse their needs.
KAM must help the client to identify
unique sources of value. Collaborative 4 Develop strategic plans for (and with) each
selling is a high level of customer of them.
engagement and generates collaborative 5 Get buy-in from all functions about their
co-creation offline. role in delivering the agreed value
●● Project management skills (to ensure tailored proposition (to the key account).
products and services are delivered on time 6 Get the right organization to serve the
and within budget). selected key accounts’ needs.
●● Relationship building at many complex 7 Get the right people and skill sets in the key
levels right across the decision-making unit account team.
(this requires the ability to analyse clients’ 8 Implement the plans on an annual basis.
internal structures, systems and overall
organization and continually widen relevant 9 Measure success, particularly in respect of
contacts). whether they create shareholder value added.
●● Research and intelligence gathering (and 10 Reward individuals and teams for their success.
sharing information). An alternative approach to seeing how KAM
●● Negotiating skills (to nurture the long-term evolves through the following stages was developed
relationship and deal with a large decision- by Millman and Wilson (1995) (Table 11.1). This
making unit). overlaps with the above but also goes beyond it by
●● Legal skills (an understanding of legal issues including the ‘uncoupling’ stage when the partner-
and contracts). ship ends.

TA B L E 11.1 Stages of KAM

Stage Activity

Pre-KAM Identify potential accounts (select the best clients - who's the perfect client?).
Understand how they make decisions; key criteria;key players.

Early KAM Tentative agreements and probing; identifying how the organization can help the client.

Mid-KAM Account review and senior management involvement.

Partnership KAM Joint problem solving and sharing sensitive information.

Synergistic KAM Synergy of shared values and one-entity perspective.

Uncoupling KAM A positive move recognizing that there is no further value in the relationship.
 328 Part Two | Communications Tools

Account-based marketing Step 5a: Action: Develop a ‘playbook’ for the

sales and marketing team – who does what,
Account-based marketing (ABM) appears similar to when?
KAM, as they both focus on large customers/clients
and both aim to develop deep understanding of Step 5b: Action: Execute your campaigns.
these large (sometimes global) clients, build rela- Step 6: Control: Measure and optimize –
tionships, improve brand perceptions, identify op- marketing and sales are jointly accountable for
portunities, share expertise and give world-class driving pipeline and revenue.
service (before, during and after a sale).
ABM forces marketing and sales teams to work
together to deliver personalized account-specific Integrating the sales force
messaging for each client. In fact, this tailored cus-
tomized sequence of messages to individuals in the
with the communications mix
buying team culminates in an individual ‘marketing An organization’s own sales force, or a distributor’s
plan for each strategic customer’ says Dr Beth or agent’s sales force, should be updated regarding
Rogers from the Association for Key Account any new advertising, sales promotions or social
Management (Rogers, 2019). This suits buyers who media campaigns. Some advertisements are wasted
are increasingly insistent on ‘outreach tailored to when they succeed in pulling customers into stores
their business and even their personal interests only for the customers to find out that the sales staff
within the business’ (Golden, 2018). behind the counter are not familiar with either the
This, in turn, creates the rare business luxury of advertisement or the particular offer being made.
slowing down to develop a thoughtful approach Equally, salespeople should spend time ensuring
that boosts the odds of driving engagement and that wholesaler and retailer point-of-sale materials
eventual conversion to a sale and repeat sales. are in place and ready to support an advertising
campaign. The amount and type of personal selling
requires changes as a product or service moves
through its lifecycle (see ‘Types of salespeople’
‘Personalize well and buyers are more open to
p 334). Using a sales force to create awareness is
your outreach and less likely to ignore your
expensive (and slow, and not recommended). The
content and communications.’
salesperson, eg in a retail store, has more impact in
Golden (2018)
the final stages of AIDA (attention, interest, desire
and action). Salespeople can also ask buyers what
phrases they use when searching for the salesper-
son’s products or services. This list of key phrases
The SOSTAC® approach to ABM should be fed back regularly to the marketing team,
(adapted from LinkedIn’s ABM steps) who can compare with their own key phrase lists
for optimizing the websites and social media.
Step 1a: Situation analysis: Identify high-value Another level of integration is between the web
accounts. ana­lytics and the sales team (see the next section).
Step 1b: Situation analysis: Identify DMU
individuals in each account. Integrating sales with online activity
Step 2: Objectives: Define clear objectives (leads, Digital body language analysis can deliver a weekly
qualified leads, new sales, repeat sales and NPS). alert to each global account manager and summarize
Step 3: Strategy: Define targeted campaigns – all visitors’ activity from an existing key account (or a
personalized campaigns covering the complete major new prospect), whether a brief visit or a deeper
buying cycle investigation of a particular new product. This helps
salespeople gain deeper insights into, firstly, what is of
Step 4: Tactics: Pinpoint optimal channels to get interest to their key accounts (and/or key prospects)
the message to the DMU within the account. and, secondly, what buying stage they are moving to-
And create the campaigns. wards. Alternatively, reports can analyse potential
customers’ interest levels by both region and product,
 11 | Selling, Social Selling, Marketing Automation and Martech 329

allowing marketers to identify areas in need of addi- Sales and marketing alignment
tional focus and resources. These reports can save a
lot of time and effort and build stronger rapport be- ●● ‘Drift’ (Figures 11.1 and 11.2) is a chatbot
tween the sales and marketing teams, as sales teams (or a ‘conversational marketing’ platform)
really appreciate these valuable insights. Marketers that generates qualified leads from visitors to
can also instantaneously see which campaigns are your website. Visitors landing on a particular
generating better visits and conversions. This helps to web page trigger targeted messages from a
improve resource allocations to optimize ROI. See the chatbot designed to help the visitor get
next section for a brief perspective on digital body answers, which simultaneously generates and
language. qualifies leads as well as directly booking
sales meetings for the visitor with an
appropriate salesperson (www.drift.com).
Marketing automation ●● ‘Outreach’ is a sales engagement platform
Professional buyers source and purchase products and that helps sales teams drive informed
services online all the time. The opportunities for a engagement via email (www.outreach.io).
salesperson to get to meet the prospect are reducing. ●● ‘Inside sales’ means modern sales models, ie
Once upon a time a salesperson could meet purchasers sales that are handled remotely (not face-to-
earlier in the buying process and gauge their reactions face), typically for B2B tech and software-as-
and, ultimately, their readiness to purchase by listen- a-service (SaaS) sales.
ing carefully to their questions and comments and,
●● ‘Outbound leads’ come from ‘interruption
most importantly, watching their body language.
marketing’, ie sending messages or calling
Today, instead, marketers watch website visitors’ digi-
prospects directly.
tal body language to determine how interested a pros-
pect visitor is, how ready they are to buy, and how ●● Eloqua is an automated lead generation
they can help the prospects to make a purchase. If, for platform.
example, a prospect has returned several times to the
site and downloaded three white papers, and some
colleagues from the same company have also visited Social selling
the site, this might indicate the visitor is at an advanced Social selling (SS) is a skill that many salespeople
‘information collection’ stage in the buying process. develop when they use social media to develop
This can automatically trigger a tailored on-screen meaningful relationships with their target pros-
message via a web page or a pop-up message, an email pects. It involves connecting with, listening to and
or even a phone call from a salesperson offering help. understanding prospects’ needs and eventually, at
See page 21 for more on marketing automation. the right time, gently, nurturing the prospect into a
customer. Salespeople provide value by answering
questions and sharing useful content – until the
A window to a buyer’s mind but digital prospect is ready to buy. Effectively, SS keeps you
body language gained and your brand ‘front of mind’ (of the prospect)
and hopefully in the ‘considered set’ (the two or
‘When the sales market switched from face-to- three brands that a prospect will consider when
face to online, we lost a window into the buyer’s he/she is ready to buy). A 2017 Forrester Consulting
mind. But we gained access to a compelling
survey revealed that only 2 per cent of the 265
­survey respondents said they had no plans to es-
cookie trail of leverageable information, in the
tablish their own social selling programmes. The
form of their digital body language.
other 98 per cent see the value in developing their
“Digital body language” is the catch phrase
own ­social selling approach, with half of them
coined in 2009 by Steven Woods, co-founder
(49 per cent) having already developed their SS
and Chief Technology Officer at Eloqua, to programme.
describe trackable patterns in online behaviour The sales team should be well trained in net-
of customers.’ working both offline and online. At offline
Blur group email, 2 June 2013 events they are trained to open up discussions,
 330 Part Two | Communications Tools

F I G U R E 11.1 A sales lead management model from CleverTouch Marketing

Sales & Marketing Alignment

CleverTouch Lead Management

New
Web Forms Leads Eloqua
Outbound Leads

MQL Syncs Syncs

Inside
Sales
Desk Research
Salesforce Campaign
New Salesforce
Drift Leads Lead
Salesforce New Contacts
Conversion LinkedIn
Account & & Sales Navigator
Contact Accounts
Salesforce
Opportunity Contacts & Outreach
Activity

clevertouch ©Copyright CleverTouch Marketing.

intelligent engagement All Rights Reserved.

SOURCE: Used with permission from CleverTouch

move around a room, identify prospects and

more. Online, salespeople have a great opportu- Social selling enriches marketing database
nity to use their networking skills across social with social data
platforms. Meeting new people, joining new dis-
cussions and new groups, helping other people – Social information such as LinkedIn interests,
putting themselves about – in the right networks groups, Twitter hashtags, etc, can be added to the
(or groups). Listening to discussions, joining dis- marketing database. Professional salespeople
cussions, starting discussions, and sharing genu- watch key customers’/prospects’ social information
inely useful information allows salespeople to so they can have more meaningful conversations.
get to know people, having helped someone. Social selling also allows salespeople to interact
Salespeople must identify the best social chan-
with customers ‘socially’.
nels, ie where their target audience is communi-
cating about topics relevant to your brand. If
most of your customers and prospects are on
LinkedIn and not Twitter, you should invest
more resource in LinkedIn groups, discussions Reverse forensics prospecting
and maybe even advertising, etc. Some call it ‘reverse IP look-up prospecting’ as this
Incidentally, blog posts, tweets and any social approach to prospecting delivers a list of businesses
media content can have a call to action to get that have just visited your site daily, weekly,
another report/video/tip or to have a salesperson monthly, or in real time. This prospect report is a
call them to help with the next steps. hot list of companies that usually have an interest in
 11 | Selling, Social Selling, Marketing Automation and Martech 331

F I G U R E 11.2  Here the chatbot asks for permission to collect some personal data. We said
‘No’ and you can see the bot’s response highlighted on the right-hand side

your business and/or your products. The list comes This system can effectively help to identify
complete with the company name, address, phone the visitor’s stage in the buying process from their
number, website and firmographic (industry type/sic digital body language – what they click on and
code, number of employees) and optional credit rat- dwell on including the length of the phrase used
ing, as well as what the visitor is interested in (what in the search, duration spent on product pages,
keywords they used, which pages they visited, for repeat visits, duration spent on the pricing page
how long). It does not, however, capture the indi- and duration spent reading product reviews
vidual’s name. pages.
A good salesperson can easily research LinkedIn Rules or filters can be added so that:
and other databases to identify who might be that
anonymous visitor. Some salespeople just pick up ●● a key account manager can be alerted when
the phone and ask who is responsible for purchas- his key customers (or prospects) are crawling
ing whichever product was being looked at. across his site;
Prospects are often pleasantly surprised to get a call ●● a particular product specialist sales rep can
that offers help and answers all outstanding be alerted when businesses are looking at his
­questions immediately. particular product;
 332 Part Two | Communications Tools

●● an area sales rep can be alerted when Twitter users, who are based in London and who
businesses from the same geographic work at companies in the finance industry where
territory are visiting the site; their revenue is greater than £200 million per year?’
●● repeat visits or groups of visitors from the The answer is yes. Asking the right question is a great
same organization can be reported. skill. For a relatively small budget targeted prospect
names and contact details can be delivered. For ex-
Reverse forensics (RF) only works for B2B activity ample, if a sales team wanted to talk to everyone who
and when the visitor is using a fixed IP address (ie attended a particular conference in a particular in-
working from an office that has its own fixed IP ad- dustry sector, listening tools can listen to the confer-
dress as opposed to a remote worker from home, or ence hashtagged discussions on Twitter and elsewhere
someone using an iPhone with 4G, or accessing via and build a list of target prospects, and layer on top
wifi). This only covers a percentage of visitors. In information from other databases (if they have opted
fact, overall, approximately 5 per cent of visitors in to receiving contact from third parties).
actually make an enquiry (email or phone); 45 per
cent of visitors are competitors or suppliers and the
remaining 50 per cent are prospect opportunities. Most prospects are ignored
Companies like Lead Forensics charge between
£250 and £5,000 per month (for between 50 to ‘The tragedy is that most prospects fall through
5,000 visitors per day); this could generate up to the cracks in the floor boards. Eighty per cent of
10–1,000 leads a day (based on only 20 per cent of B2B leads are not followed up. Of the 20 per
visitors) or 200–20,000 leads a month respectively. cent that do get followed up, sales reps reject
Most business people who visit a website will 70 per cent too quickly (even though the
not pick up the phone and call, even though they majority of these prospects eventually buy
may have a need for your services. However, some within 24 months and often from a competitor).
will gladly take a call from an expert adviser/sales- Effectively, only 6 per cent of a business’s
person from the business whose site they were hard-earned leads get followed up.’
recently exploring. Woods (2009)

Has this improved since?

Real-time conversation prospecting
Some also call it ‘social media prospecting’; either
way, it is a prospecting process primarily for B2B LinkedIn prospecting
companies. Basically, the system monitors conver-
sations, posts, tweets, hashtags, etc to find people Specialist social selling agencies will spend a day
talking about your product/service type or a re- clearly defining their ideal target customer profile
lated issue or a conference. Specialist companies and the target customer interests. They then find
identify these people, collect their contact details, and target 300 ‘perfect fits’ and invite them to join a
and then cross-reference this data with other on- newly set-up, dedicated group that specializes in
line social platforms to build a better profile. They discussing the target group’s interests. On average,
then cross-check this with a range of subscription 100 of 300 carefully targeted LinkedIn prospects
databases (such as Dun & Bradstreet) to deliver sign up. After a few weeks or months of creating
as much detail about as many people discussing and participating in discussions, a tailored message
your product type or a related issue as possible. is sent to each group member offering a one-to-one
It could be a group of people discussing a particu- chat about a relevant sales topic. One agency gener-
lar topic, or a group that attended a particular ates 10 well-qualified leads per month for its clients.
­conference. And if the leads are no good, the client does not
have to pay – ie the client only pays for good leads.
At an approximate cost of £1,000 for set up, plus
Social media prospecting £1,000 per month, this means an average prospect
lead (after the set-up cost) costs £100. Sales and
As is often the case, the skill is in the ability to ask a good marketing teams will know whether £100 for a
question. For example, ‘Can you find me i­nfluential well-qualified lead is a good deal.
 11 | Selling, Social Selling, Marketing Automation and Martech 333

LinkedIn’s Sales Navigator a first contact. If they are connected to say, your
boss, then you could ask your boss to make the
prospecting ­introduction
LinkedIn Sales Navigator (LSN) helps salespeople
by feeding useful information into CRM systems
or just email systems, so that you can have some
LinkedIn’s Sales Navigator
extra useful information about your prospect – and Salesforce
just when you need it and without having to The Sales Navigator Gmail extension helps users
change apps; ie, you can see this information vet potential candidates right from their Gmail
while you are in a CRM system or while you are inbox. The user doesn’t have to open Sales
sending an email. Navigator to use the insights. While writing an
The basic LinkedIn prospecting service allows email to a prospect, you automatically get insights
you to identify prospects by industry sector (and about the person to whom you are writing, eg if
by person), by location and by company growth. they are already a ‘saved lead’ or if you went to the
The system presents prospects that fit your same college or are members of the same interest
requirements and you decide whether to save group, or whether anyone else in your organiza-
them as prospects or delete them. The system then tion is connected to them. These insights help to
learns from your interactions to deliver better build rapport with the prospect, or, sometimes,
prospects each day. It also syncs with your CRM quicker sales (see ‘Stuck at the bottom of the food
(sales system). chain’, below). It’ll also show you your way in, ie
who in your team is already connected to this per-
son. They can then introduce you so you don’t
‘Good sales people know who wants to buy from
have to go in cold.
them; Top sales people will know when they
want to buy from you.’
Source unknown Stuck at the bottom of the food chain

‘I was working one of my biggest accounts a few

Intent and interest signals quarters ago, but I was stuck at the bottom of
LinkedIn can identify ‘intent and interest’ signals. It the food chain. There was a lot of turnover at the
flags up when a prospect visits your website, the account and it was difficult to engage with the
pages viewed, if it responded to any CTA, whether decision makers. So, I was dealing with Problem
the prospect changed jobs recently (and perhaps #1. Then, one day, I got a notification that a new
needs some extra help), whether they are hiring/ head of sales had joined the prospect company.
growing or hitting barriers to growth (which per- What was even more amazing was that I saw
haps you can help them to solve). that this head of sales was connected to many of
my colleagues, including my manager. My
Social signals manager made the intro, and now I have this
huge deal on the table.’
LSN also monitors a prospect’s content sharing be-
Keith Browning, LinkedIn
haviour (identifying what content they shared) and
whether they added any comments, which confer-
ences they attended, and finally if they were in the
You’ll also see contact information for the prospect,
news recently (this is the old ‘Newsle’ function).
and you can easily save a contact as a lead in Sales
Navigator so you start to get updates on them
Ice-breakers (without ever having to leave your inbox).
Is a prospect connected with anyone else that you A Sales Navigator Team licence costs approxi-
know on LinkedIn, whether they went to the same mately $1,200 pa per seat/individual.
school, or university as you or whether they are A fully connected marketing technology spine,
members of any of your interest groups in LinkedIn? notably marketing automation (MA Platform) into
All of these help to make nice ice-breakers if m
­ aking CRM, provides a fundamental degree of insight
 334 Part Two | Communications Tools

F I G U R E 11.3 The Sales Navigator Gmail extension

(Figure 11.4), and when connecting sales tools into system actually suggests which phrases should be
the martech spine such as LinkedIn Sales Navigator changed to get maximum impact (Figure 11.7).
or Outreach, etc, a true 360-degree view of the cus-
tomer develops – tracking all marketing activity
and sales activity in one place.
In Figure 11.5 you can see the status of this pros- Managing the sales force
pect from their campaign history. They have opened
the MarTrans email in January, the GDPR webinar Types of salespeople
invite in March and the ROI event invite in April. ‘Ice-
breakers’ (listed under ‘More’) will reveal several Some sales reps are excellent at winning new busi-
other potential common interests, schools, contacts ness (‘order getters’) and find the servicing of regu-
and what the prospect likes (what they share or post). lar accounts to be dreadfully tedious compared to
the exciting buzz of new business. Other reps are
meticulous professionals who service an account
Personality AI (‘order takers’) with such professionalism, pride
Personality profiles and communications insights and affection that they create barriers for competi-
about an individual with whom you are mailing, tion by building a ‘wall of warmth’ around their
emailing, messaging, phoning or meeting are deliv- customers. In reality, most reps have to do a bit of
ered in real time while you are actually communi- both jobs. Shiv Mathur wrote an intriguing paper
cating with someone on LinkedIn, or on a CRM nearly 40 years ago (1981) about ‘transaction
like Salesforce or even Gmail. This intelligence is shifts’, which suggested that different types of mar-
generated by a new category of AI called Personality keting managers (and salespeople) were required as
AI, created by companies like www.CrystalKnows. a product passes through its lifecycle, since the
com (Figure 11.6). In addition to useful insights, product requires different levels of service support
Crystal suggests the optimum phrases to use in an at various stages.
email, how to talk to the person, what irritates In an increasingly impersonal world of faceless
them and what they like. It is based on the well- emails and chatbot messages, face-to-face com-
known DISC personality analysis. munications or personal selling can provide a
If sending a direct message in LinkedIn or email- reassuring, personal touch. In addition, the sales-
ing someone, say Gregg Skloot COO at Crystal, the person can respond immediately to a buyer’s
 11 | Selling, Social Selling, Marketing Automation and Martech 335

F I G U R E 11.4 A fully connected marketing technology spine

Inbound
Known/
Unknown
From Brochure-ware
to Marketing Hub

Outbound
Targeted

MA Platform

Lead scoring & Nurturing

Programmatic Campaigns

Pre-Campaign
Analysis,
Segmentation
& Targeting
CRM

Post-Campaign
Insight & Analysis,
Demand
Management &
Forecasting
 336 Part Two | Communications Tools

F I G U R E 11.5 LinkedIn Sales Navigator information within Salesforce CRM

changing needs and moods. The salesperson can

also provide instant feedback from the customer
Recruiting
or marketplace (see Chapter 6, ‘The intelligent Determining the right size and structure of the
rep’). On the other hand, a sales force can be sales force is vital. What is the optimum call fre-
expensive in terms of cost per thousand contacts, quency? Who should service the account? As an
and sometimes it can prove to be uneconomical organization changes or grows, so too the sales
on a cost-per-order basis. This largely depends on force and its responsibilities must change. Sales
the size and profitability of the order, the distance force attrition is a fact of life. Some salespeople
travelled to get it, the number of meetings move to new companies; some are promoted; oth-
required, etc. ers retire or are fired. This means that recruitment
The primary responsibilities of the sales force is a continual process that demands skills, cash
manager include recruitment, training, motivating, and time. Recruiting the right salesperson is a
controlling and collecting feedback. resources-consuming management activity. The
­
New York Sales and Marketing Association (2002)
revealed that 71 per cent of customers buy from a
I perform better as a salesperson now salesperson simply because they like and trust
them. Two out of three customers change suppliers
‘I used to have a territory where I was a free because of a salesperson’s lack of interest, ­attention
agent... today the computer recommends which or communication. Recruit the wrong people and
calls I should make... my sales aids remind me sales can actually be reduced instead of increased.
what to ask and say... my manager knows where I Keeping the right sales team together is largely de-
am and I spend half my time on training courses... termined by levels of training, motivation, control
but I do sell 30 per cent more per annum.’ and feedback.
A domestic appliance executive
 11 | Selling, Social Selling, Marketing Automation and Martech 337

F I G U R E 11.6 Here’s an excerpt of what Crystal says about Bill Gates

Making noises like farm animals – sales Training

training Training is an ongoing affair, not a one-off activity.
It is a continuous process. Like thinking, it requires
Imagine a group of people walking around a room, practice. Tony Buzan’s classic books (1988, 1989,
making farm animal noises and trying to form a 2003, 2013, 2018) emphasize that thinking is a skill
circle with their eyes closed. This is part of a that needs development and exercise. Basically, the
rigorous selection process of a field marketing sales force has to acquire and maintain three pieces
team whose job is to help major marketing player of knowledge and one set of skills – selling skills.
Unilever to launch new varieties of an established The three pieces of knowledge that the professional
snack product. Top marketing companies recognize salesperson must have are:
that the more time they invest in selection and ●● product knowledge (marketing mix,
training, the better the result. Preparation is features and benefits, and unique selling
rigorous, including dealing with hecklers. As propositions – USPs);
mystery shoppers check on the team, nothing is left
●● market knowledge (customers and
to chance.
competitors);
●● company knowledge (history, structure, etc).
 338 Part Two | Communications Tools

F I G U R E 11.7 The Crystal system suggests changing phrases to optimize response

The 7P approach to selling skills Increasingly today, more and more sales come from
past customers and through growing the share of
There are several different stages involved in selling.
wallet of existing customers. Both employees and
The 7P sequential approach identifies areas for skill
past employees can help to prospect for new busi-
improvement. The seven stages are:
ness. For example, McKinsey Consultants harnesses
●● prospecting (looking for potential a network of its ex-employees – recognizing that the
customers); alumni can help to generate new business. Similarly,
●● preparation (objective setting, continual PwC discovered that 60 per cent of new busi-
customer research, etc); ness came from ex-employees or via ex-employee
­contacts.
●● presentation (demonstration, discussion);
Each stage requires a certain amount of training
●● possible problems (handling objections); and practice. Training should also include non-­selling
●● ‘please give me the order’ (closing the sale or activities (information-gathering techniques, time-
getting the order); management skills, personal expense control, etc).
●● pen to paper (recording accurately all Preparation is continual and includes an initial analy-
relevant details); sis of the customer’s business, issues and objectives,
clarifying exactly what the customer wants to achieve
●● post-sales service (developing the as well as identifying its compelling reason to act. In
relationship). fact, most major sales in large B2B situations involve
 11 | Selling, Social Selling, Marketing Automation and Martech 339

a huge needs analysis. This involves analysing the Use analytics and an automated report
customer’s situation and includes needs, benefits, system to create personalized dashboards for
barriers and ways forward. The decision-making each salesperson and highlight the
unit is analysed in great detail to ensure that all key opportunities they needed to follow-up on.
decision influencers are addressed at the appropriate 3 Use data to prioritize and personalize
stage in the selling process. The customer’s financial capability building
position, access to funds and decision-making units Sales leaders can use analytics to establish
are also carefully studied. Eventually a risk analysis exactly what specific skills are required by
will be completed, identifying potential problems, each sales rep so that they can optimize their
their sources and their likely impacts. performance.
4 Communicate, communicate, communicate
Specific tools that work well include shared
How to use problems (objections) to make dashboards, funnels and visualizations of
a sale (or to get married) activity across the team. Consider
gamification to maintain motivation and
‘Julie says: “I don’t like the way you dress, I bolster internal sales rep competition, and
don’t think you make enough money, and you also online forums where sales reps can share
drive like a maniac.” tips and easily speak to each another. For
more on gamification read the article
Frank hears: “I don’t like the way you dress ‘Gamification – the good, the bad and the
[buying signal ], I don’t think you make enough ugly’ on the PR Smith website (https://
money [buying signal ], and you drive like a prsmith.org/?s=gamification).
maniac [buying signal ].”

Frank’s response: “If I let you pick my suits, if I Motivating

double my income, and if I promise never to
exceed the posted speed limits, then will you Maintaining the sales force’s motivation is a vital
marry me?”’ part of sales management.
Frank Pacetta, Xerox sales manager It can be as easy as publishing the monthly sales
figures against targets for each sales rep and circu-
lating the figures among the sales team. This can
lead to competition among members, which may
Four digital steps to help sales inhibit them from sharing ideas, contacts, leads and
even closing techniques. On the other hand, it can
teams keep everyone focused on targets, with peer pres-
Chappuis et al (2018) in McKinseys Quarterly sug- sure as a source of motivation. It is the sales man-
gest these four steps: ager’s job to build a team feeling and get everyone
working together, sharing ideas rather than hiding
1 Get insights that help the sales rep to be them from each other.
better at their job ‘Psychic income’ is often a stronger motivator
Get your sales team involved. Ask them what than financial income, yet it does not need to cost
information would make their jobs easier. the company any more money than the traditional
‘The best sales organizations use data to financial incentive. Psychic income offers rewards
understand the effect of all the steps in sales, aimed at the higher levels of need, such as being
from what matters most in driving a sales valued, recognized, rewarded and challenged (see
opportunity forward to where reps struggle Chapter 4, ‘Motivation’, p 142, and Maslow’s hier-
or miss opportunities’ (Chappius et al, 2018). archy of needs, p 143).
Let salespeople see their sales funnel/pipeline This is how it works. A bonus cheque for £1,000
so that they can prioritize each day. tends to get spent on dull and boring things like
2 Create personalized dashboards around what reducing the overdraft or paying the mortgage. On
matters to each sales rep the other hand, the same £1,000 spent on a holiday
 340 Part Two | Communications Tools

for two or a spectacular piece of Waterford glass Sales can also be analysed by profitability or the
acts as a constant reminder of a job well done. Even ‘contribution’ each order makes towards the overall
a clap on the back, a thank-you note, a presentation profitability of the organization. This encourages
ceremony or a photograph in the newsletter (or in the salesperson to sell higher-margin products or
the annual report) can arouse feelings that satisfy services rather than succumbing to the temptation
the higher levels of Maslow’s hierarchy of needs. of 1) giving discounts and 2) pushing easier, low-
This contrasts with the £1,000 used to satisfy the margin items. The bottom line tends to be turnover
dull, boring and soon-forgotten lower levels of need. or sales, number of new accounts (customers) won
The reward itself is soon forgotten here, whereas the and old accounts lost, and the quality of those ac-
psychic income reward tends to linger longer and counts (size and creditworthiness). Further analysis
therefore offers better motivational potential. reveals number of orders (and average order size),
calls-to-orders ratios, etc. Even miles driven give
some indication as to whether reps are chasing their
Psychic income: Two holes of golf with tails or leaving room for improvement. Good plan-
Jack Nicklaus ning helps control.
Good sales forecasting provides targets and
yardsticks for measurement. Sales forecasts can be
The Maritz Corporation specializes in psychic
drawn up by sales reps for each customer for each
income packages. They even give out pyramid-
month and eventually put together to form an over-
shaped paperweights that list Maslow’s needs.
all sales rep forecast. This can be modified to allow
They tailor their awards so that individuals are
for low forecasts that reduce target sales figures,
offered an appropriate range of stimulating options.
thereby reducing pressure on the reps and making it
Some of their choices have offered trips to the easier for them to attain their daily, weekly, monthly,
moon, ballooning across the wine fields of quarterly and annual targets. There are also more
Burgundy or two holes of golf with Jack Nicklaus. sophisticated forecasting models that take into
As you approach the 18th green there is an account a host of factors, including prices, competi-
80-piece orchestra perched on scaffolding, playing tors, state of the economy, etc.
the tune of your choice. Typical quantitative standards are as follows:
The annual sales conference should be a
●● sales volume as a percentage of sales
motivator and act as a forum for sharing ideas
potential;
(‘how I made a sale’ contest), identifying and
solving problems, improving techniques, and ●● selling expense as a percentage of sales
recognizing and rewarding achievements. The generated;
conference should also provide a pleasant ●● number of customers as a percentage of the
environment that reinforces feelings of being glad total number of potential customers in the
to work with the company. territory;
●● call frequency ratio, or total calls made
divided by total number of customers and
Motivation is critical with sales teams (and all staff prospects who are called (or visited) by the
for that matter). Read more about motivation on salesperson.
the PR Smith website (https://prsmith.org/?s=
motivation).
The ultimate sales pitch: The extinguisher

Controlling There is always room for creativity in marketing,

and particularly in selling. Whether it is a new form
Controlling the sales force involves analysing sales: of presentation, a new way of prospecting or a new
●● by product; way of showing determination to win the business,
●● by market or region; the list is endless. The extinguisher’s creative
approach below is not to be recommended. This
●● by salesperson.
 11 | Selling, Social Selling, Marketing Automation and Martech 341

story is recalled from a marketing magazine of Servicing existing customers with a mixture of
many years ago. telephone calls and personal visits, instead of visits
Having recognized the weary tread of a only, allows sales reps to become more efficient by
door-to-door salesman coming up the stairs, the reducing the frequency of their visits but maintain-
giggling office staff scrambled behind doors and ing the frequency of contact or service by phone.
under desks to avoid the approaching salesman’s
There is obviously a fine line between the less per-
sonal telephone call and the more personal visit.
eye contact. I only realized that a salesman was
Some buyers may prefer to avoid the interruption
looming when I noticed the sniggering bodies
of a sales visit and appreciate a courtesy call (‘just
scattered behind the furniture. Too late. I turned
checking to see if everything is all right or if there is
around to see a shabby little man with a greasy
anything you need’). This minimizes time wastage
raincoat and coffee-stained briefcase move (for both parties) while maintaining the customer
towards me. Before I knew it he had opened his service facility. Getting the balance between calls
briefcase and poured a jar of petrol over himself. and visits is vital, since the competition is also out
Out of his inside pocket he drew a lighter and set there, every day, knocking on the same doors.
fire to himself. Then, while standing in the classic Optimum call frequencies need to be carefully
salesperson pose (right arm holding out a spray can planned.
and left arm pointing to the label), he said ‘And this,
ladies and gentlemen, is the FlameZapper miniature
fire extinguisher.’ As he proceeded to spray himself,
he continued, ‘You can carry it anywhere.’ He left Extending the sales force
several cans lighter and several pounds heavier.
Types of sales force
The three key resources, the 3Ms (men/women,
money and minutes), are limited. Selling soaks up
Time: The scarce resource all three resources. There are various combinations
Salespeople are spending less and less time in front of types of sales force. An organization’s field sales
of customers (Dixon et al, 2011). Some previous force can be supported by an in-house telesales
estimates suggest salespeople spend less than 10 team who do the prospecting and appointment set-
per cent of their time engaged in face-to-face sell- ting, thereby freeing the field salespeople to do
ing (Abberton Associates, 1997). The rest of the what they are best at – selling. Resources can also
time is spent filling in report forms, travelling, set- be invested in agents, distributors, wholesalers, re-
ting up appointments, attending internal meetings, tailers and their reps so that they become an exten-
etc. Is this the optimum use of a key resource? sion of the sales force. Alternatively, a temporary
Definitely not, so some companies use other com- sales team can be contracted in to screen prospects
munication tools (such as a direct response adver- and make appointments (telesales teams) or to go
tisement or a mailshot) to generate enquiries and out and sell or give free samples away (see ‘Field
then categorize or qualify the quality of the en- marketing’ below). There is no single correct sales
quiry or lead into ‘hot, medium or cold’ prospects. force mix; for example within the commercial tyre
An online form or an offline telesales team can market one company achieves 200 calls per execu-
then further qualify the lead by determining how tive per annum, while its largest competitor
urgent, immediate or serious the enquiry is, or this achieves over 1,600. The former company has fo-
can be done by a chatbot. They can even set up ap- cused on large accounts and uses agents to service
pointments in a way that minimizes the travel be- the independent trade. The latter sells direct to
tween appointments. ‘The extinguisher’ (in the box customers of all sizes. Both companies are highly
above) is an extreme example, where the salesman profitable, and both have highly efficient sales
seizes the relatively rare face-to-face opportunity ­organizations.
and makes a sale every time (although he may also The correct approach is, of course, to monitor
soon be locked up!). constantly the effectiveness of each sales force mix
 342 Part Two | Communications Tools

(customer satisfaction, sales, market share and prof- ●● market research into shelf facings, stocking
itability) and the efficiency (number of calls, cost levels and positions in store (including
per call, conversion rates of enquirers to customers, number of shelf facings or number of units
etc). There is always room for improvement. that can be seen);
●● monitoring customer care and service – with
Own sales force mystery shoppers who are employed to
Although a sales force creates a large overhead, it observe service and report back details of the
does allow direct control over recruiting, training specific levels of in-store service and
and motivating. The section ‘Managing the sales customer care.
force’ (p 334) explores the processes involved in Field marketing’s main advantages are widening the
getting the best out of this key resource. First con- reach without acquiring the overhead of a full-time
sider alternative extensions of the sales force, both sales team. The disadvantages, in addition to the
online and offline, including field marketing, multi- fees, are that training, motivation and constant
level marketing, affiliate marketing and distribu- monitoring and feedback are required to get the
tors’ sales assistants. best out of the field sales team.

Field marketing Telemarketing

It is possible to hire flexible sales forces for ad hoc In addition to direct selling, telemarketing (tele-
tactical activities or regular repeat activities. phone marketing) is used for appointment setting,
Reduced cost, flexibility and direct measurability lead generation, list building or cleaning, market
make a contract sales force or field marketing team research, customer care, and even shareholder com-
attractive compared to a full-time, in-house field munications. An outbound campaign requires tele-
sales team. Cost can be further reduced by using a marketing professionals to make the calls, as
syndicated or shared team as opposed to a dedi- opposed to an inbound campaign, which receives
cated team devoted to one particular product only. calls generated from 0800, freephone, local, stand-
There are, of course, risks, particularly if the sales- ard or premium-rate (which act as ‘self-liquidating’,
people have a tendency for hard selling, misrepre- ie generating revenues that pay for other costs)
sentation or even rudeness. Careful scrutiny and phone numbers listed in direct response advertise-
supervision can usually identify these potential ments, mailshots or websites. Telemarketing is a
problems before they develop into a full-blown cri- flexible tool. Depending on the previous day’s re-
sis. Field marketing tends to be used by FMCG or sults, a telesales campaign can change on a daily
impulse goods manufacturers, but can be used by a basis, with the telesales script being rewritten over-
wider range of organizations. night and tested the following day.
Typical field marketing activities include: Telemarketing can be part of a contact strategy
●● selling into independent retail outlets, eg field that includes mailshots (letters, brochures and
sales teams sold Christmas charity cards to vouchers), emails, visits and calls. Equally, telemar-
almost 18,000 outlets during January, keting can qualify prospects to determine which
February and March; particular contact strategy is best, eg prospects with
less immediate needs might be mailed a brochure,
●● merchandising and display – arranging stocks while telemarketing contacts the more immediate
and literature in retail stores and other buyers with a view to setting up an appointment.
outlets, eg 25,000 newsagents and doctors’ Another stage will emerge when the not-so-urgent
surgeries had the Department of Social prospects who received the brochure start to mature
Security’s Family Credit information point-of- into the buying mode. The database can prompt
sale material placed in them within 14 days; some telesales action, and so on. Detailed objectives
●● sampling and promotions – providing teams for the campaign, such as total number of calls,
(eg the Pepsi Challenge) in shopping number of calls per person per hour, conversion
precincts and superstores and at national rates, minimum amount of information to be col-
events and exhibitions; lected, etc, must be agreed.
 11 | Selling, Social Selling, Marketing Automation and Martech 343

Once again, sales and marketing need to work A stock of goods is then purchased at a discounted
closely together; the telemarketing manager needs to wholesale price, which allows newly enrolled distrib-
know when the mailings go out or when the sales utors to add their own margin of profit when selling
team are available for appointments. Script develop- the goods to an end user. Goods are returnable (and
ment draws on the features, benefits and USPs. It will 90 per cent of the cost recoupable). Any training fees
also include open-question, presentation, objection-­ must be clearly stated in the written contract, and
handling and closing techniques. The telemarketing training must not be compulsory.
team can then be briefed and trained. Lists, scripts, The advantage of multi-level marketing is acquir-
incentives, prices and timing can all be tested. The ing a vast distribution network with no direct over-
results will be carefully monitored and used to head, although margins are reduced as commissions
develop the optimum combination for the full roll- are paid. Disadvantages include that some countries
out of the telemarketing campaign. These results do not accept multi-level marketing and ban any
should be analysed to continually build on previous form of ‘pyramid selling’.
success.
Telemarketing is an expensive way to boost aware- Affiliate marketing
ness on a cost-per-thousand (CPT) basis, but it is flex-
ible and quick and can be cost-effective if targeting Although it does not employ salespeople per se, af-
the right customer profile. It can also save costs by filiate marketing extends the reach of a brand’s sales
maintaining customer relationships with telecalls bol- potential through an expanded network. Affiliate
stered by fewer actual visits from a sales rep. partners generate sales on a commission-only basis.
Affiliate partners usually have access to specific
communities or target markets. The affiliates often
Multi-level marketing host an attractive link to the partner website, and
Multi-level marketing is a system of selling goods every time the referred visitors buy the brand the
directly to customers through a network of self- affiliate gets paid a commission. The affiliates use
employed salespeople. The manufacturer recruits banner ads (usually supplied by the brand), email
distributors, who in turn recruit (or sponsor) more and PPC ad campaigns.
distributors, who in turn recruit more distributors, The relatively risk-free concept is ­straightforward:
and so on. Each distributor is on a particular level
●● Affiliate networks generate traffic to the
of discounts (depending on the size of stock pur-
client’s website via banner ads, PPC and
chased). Distributors effectively earn income on
email.
their own direct sales to the distributors they have
recruited. Distributors also earn a percentage of the ●● Affiliate networks track this traffic closely
earnings of all of the other distributors connected (via tracking codes) and supply reports.
through their chain or line of distributors. ●● Commission is paid against whatever the
Multi-level marketing is sometimes called network agreed goals are: traffic, leads or enquiries,
selling, retail networking or pyramid selling. Several or actual sales, eg if sales conversions are the
companies have proved that network selling can be a goal and no sales are generated then no
legal and successful method of marketing. Pyramid commission is paid.
selling has a bad image because it was exploited ●● The only investment a marketer needs is 1)
unscrupulously, with new distributors being prom- the copy about the company or product to
ised fortunes in return for large investments in stock attract affiliates and 2) the banner adverts
that never sold. In addition, these selling systems tend for affiliates to use on their sites.
to exploit personal contacts and networks, which can
cause individuals to view all their friends and family The original form of affiliate marketing was selling
(or anyone with whom they come into contact) as through clubs, associations and networks, whether
sales prospects. This mercenary perspective is some- online or offline. Members within networks, clubs
times enveloped in a kind of corporate evangelism, or associations tend to trust relevant offers from
which gives this sales and distribution method a poor within the group. For example, an insurance com-
image, despite the several legitimate and successful pany might ask a football club to encourage its
systems that thrive in the United States.
 344 Part Two | Communications Tools

members to buy its credit card. Each time a foot- In-house affiliate programmes
ball fan buys a card, the club gets a commission
Some brands like to have their own affiliate net-
and the member gets a discount or a gift instead
works. Amazon has over 900,000 partners who place
(eg a club baseball cap that costs £2 could have
highly relevant Amazon banner ads on their own
much greater value, as a club baseball cap is so
sites, delivering visitors who buy and simultaneously
relevant). The insurance company can do the same
earning a steady stream of revenue for themselves.
online, except on a potentially much bigger scale
Many major brands list their affiliate programmes on
and with multiple clubs, associations and commu-
their websites under ‘affiliate programme’, ‘associate
nities. As well as boosting sales, this also increases
programme’, ‘referral programme’ or ‘partner pro-
brand awareness. In fact, affiliate marketing can
gramme’, giving a full explanation of how it works,
get a brand’s ad carried by hundreds if not thou-
including log-in, tracking, banners available and fre-
sands of websites; for example, Marriott Hotels
quency of commission payments. Commissions range
use Commission Junction to reach into over 700
from 5 per cent to 30 per cent.
highly relevant websites with a range of banner
ads and special offers.
Amazon has over 900,000 affiliates or ‘associ- Affiliate network programme
ates’ who offer Amazon books to their networks; A network is a collection of companies that have
a horse-riding website can have a book about affiliate programmes but are managed by one com-
horse riding promoted on the website in an pany, eg Commission Junction, Affiliate Future,
Amazon banner that takes the buyer directly to Trade Doubler or UK Affiliates. A lot of companies
Amazon. Everyone wins. The customer is offered want affiliate programmes but they don’t want to
very relevant books only. The website owner adds manage them (commissions, payments and que-
value to its website by adding highly relevant ries), which can be costly in terms of time, money
books and subsequently earning a revenue or com- and systems. An affiliate network company recruits
mission on each book sold. There is no risk to the relevant new publishers (websites), checks the qual-
website owner, as no stockholding investment is ity of each new affiliate, activates existing publish-
required, and no resources are required for logisti- ers, and motivates them to boost performance and
cal operations (dispatch, post and packaging, and ultimately grow sales. Some affiliate networks have
invoicing), as this is all handled by Amazon. a set-up fee (up to £2,000) and a monthly manage-
Essentially affiliate marketing extends a brand’s ment fee, and all have a commission override, on
reach across hundreds and sometimes thousands of top of the commission paid to the affiliate (say 20
websites (and search engines), generating extra sales per cent of the affiliate commission). For example,
on a commission basis (approximately 30 per cent). if an item sells for £100 with an affiliate commis-
However, the affiliate may be competing for the sion of 30 per cent, £30 goes to the affiliate and £6
same traffic that the brand’s own website wants (or goes to the network (20 per cent of the £30 com-
it may reach way beyond the brand’s own reach). mission), so the brand pays a total of £36 from the
Heavy use of PPC ad words (including the brand £100 sale.
name) by affiliates can push up bid prices for the There are three parties involved: the merchant
brand itself. Some brands have strict guidelines (eg a brand owner), a publisher (affiliate, eg a web-
about the use (and even restrict the use) of their site owner) and the affiliate network (eg Commission
brand name by affiliate PPC campaigns. Brands Junction). Consider the retailer Argos (‘the mer-
need to check out the quality of the affiliate’s web- chant’) using Commission Junction (‘the affiliate
site and how it portrays the brand to ensure no network’) to reach different target markets via dif-
damage to the brand. There are two types of affili- ferent publishers, eg it could target cheap furniture
ate programmes: in-house affiliate programmes and into its network of student sites (publishers) and
affiliate network programmes. Ask how the brand is camping equipment into its network of festival sites
being portrayed and whether the brand is effectively (publishers) from the 16,000 affiliate publishers
competing with affiliates to attract the same visitor. that are in Commission Junction’s network.
 11 | Selling, Social Selling, Marketing Automation and Martech 345

F I G U R E 11.8 In-house affiliate programme

Customers
Affiliate Customers
Customers
Affiliate
Customers
Brand
Customers
Customers
Affiliate
Customers

F I G U R E 11.9 Affiliate network programme

Customers
Affiliate Customers
Customers
Affiliate Affiliate
Customers
Brand network
Customers
company
Customers
Affiliate
Customers

Distributors’ sales assistants of sales; there might be a silver, gold and

platinum club for 50-, 100- and 200-unit
In both B2B and B2C markets, most brands sell to
salespeople, respectively);
distributors, who in turn sell to wholesalers and/or
end users (ultimate customers). Winning the battle ●● product training;
for the distributor’s ‘mindshare’ (or share of mind) ●● joint visits (the manufacturer and distributor
can be an important part of sales force manage- visit the end user together);
ment. Mindshare means the amount of attention ●● cooperative advertising (where the
and effort that a distributor’s sales force gives to a manufacturer shares the cost of the
particular manufacturer’s product. A distributor distributor’s advertising when it promotes
often carries many different product lines supplied both the parties);
by several competing suppliers. The mindshare con-
●● merchandising and display services.
cept aims to develop the distributor’s sales force
into an extension of the supplier’s sales force. Mindshare requires a longer-term approach to sell-
All suppliers would obviously like to have the ing, since the sales reps’ efforts do not necessarily
distributor’s sales force recommend, select or push result in an immediate order. But mindshare will
their particular brand to the end user. Mindshare contribute to longer-term sales. It is therefore man-
can be won by creating and maintaining a partner- agement’s responsibility to develop a suitable time
ship approach that develops a mutually beneficial horizon and a mindshare strategy that works.
business relationship. This means the manufacturer A US marketing consultancy, the Richmark Group,
must supply: claims that a mindshare strategy has been found to be
more powerful than strategies based on product dif-
●● a reasonable quality of product (and price
ferentiation and other more traditional market strate-
and delivery);
gies. Manufacturers who successfully implement this
●● creative and frequent sales promotions (eg a strategy can build a market position that it is almost
distributor sales rep club where the top impossible for competitors to duplicate. Mindshare
distributor’s reps are presented with awards, can make a competitor’s marketing communications
in front of the distributor’s own totally ineffective. Imagine the manufacturer makes
management, once they attain a certain level electrical cable Z100, the distributor is an electrical
 346 Part Two | Communications Tools

wholesaler and the end user is the electrical contractor i­nvesting in salespeople rather than just advertising
who will buy and install the cable under the floor- makes sense. B2B markets invest more in sales teams
boards of a new house. An end user (electrical con- than advertising. Salespeople are also great at col-
tractor) customer asks a distributor’s sales rep lecting intelligence and market research, as well as
(electrical wholesaler’s rep) for a competing brand, say building relationships and, of course, getting sales.
brand A1000. The distributor’s rep recommends and
offers the Z100 cable instead. The end user seeks
advice in selecting a specific brand. The distributor’s Disadvantages
rep recommends the manufacturer’s brand Z100. The A sales force cannot spread a message as quickly
distributor’s rep effectively becomes part of the Z100 and as widely as advertising, sponsorship, PR or
brand ‘unofficial’ sales force. perhaps a piece of viral marketing. Sales teams re-
The advantage of mindshare is spreading the quire investment in training, motivation and moni-
sales force wider without acquiring the fixed over- toring. It is important to spend time carefully
head of the additional resource. The disadvantages recruiting salespeople, as they are the organization’s
are, once again, that training, motivation and con- brand ambassadors. On a CPT basis, sales teams do
stant monitoring are required. Note that organiza- not compete with advertising, sponsorship or PR,
tions must pay heed to the Bribery Act 2011. but on a cost-per-order basis they may very well do
better than other promotional tools.

Advantages and
disadvantages of a sales team Summary
Here are some of the advantages and disadvantages The sales force is a key marketing resource that can
to consider when deciding whether to increase or determine the success or otherwise of any organiza-
reduce the communications tool. tion. Sales teams and marketing people need to
work together more closely to share intelligence
and leads in a systematic process. Managing the
Advantages sales resource requires clear management skills,
which include Big Data and integrating marketing
Salespeople are great (when trained and motivated) automation, sales and CRM. There are many differ-
at getting key messages across to buyers. Messages ent options to extend the sales force: through its
can also be changed (though it requires some train- own sales team or using field marketing, multi-level
ing) in a relatively short lead time. If the product or marketing, affiliate marketing or mindshare through
service requires a personalized presentation then distributors’ sales teams.

Key points from Chapter 11

●● There are different types of sales teams, ●● Big Data, marketing automation, CRM and
including in-house, telemarketing, multi-level martech can help sales teams sell more.
marketing, affiliate marketing and distributors’ ●● Managing a sales forces requires recruitment,
sales assistants. training, motivation and monitoring.
●● KAM and ABM require a variety of ●● There are many routes to extending your sales
management skills integrating marketing and force, including field sales, telesales, distributors,
sales staff. affiliates and multi-level marketing.
 11 | Selling, Social Selling, Marketing Automation and Martech 347

References and further reading

Abberton Associates (1997) Balancing the Selling Hancock, M, John, R and Wojcik, P (2005) Better
Equation, CPM Field Marketing, Thame B2B selling, McKinsey Quarterly, 16 June
Buzan, T (1988) Make the Most of Your Mind, Pan Jobber, D and Lancaster, G (2000) Selling and Sales
Books, London Management, Financial Times/Prentice Hall,
Buzan, T (1989) Use Your Head, revised edn, Pan Harlow
Books, London Mathur, S (1981) Strategic industrial marketing:
Buzan, T (2003) How to Mindmap, Thorson Transaction shifts and competitive response, City
Publications, London University Working Paper 33, City University,
Buzan, T (2013) Modern Mind Mapping for Smarter London
Thinking, e-book, Proactive Press McDonald, M and Woodburn, D (2007) Key Account
Buzan, T (2018) Mind Map Mastery: The complete Management: The definitive guide, 2nd edn,
guide to learning the most powerful thinking, Butterworth Heinemann, Oxford
Watkins Publishing, London Millman, T and Wilson, K (1995) From key account
Chappuis, B, Reis, R, Valdivieso De Uster, M and selling to key account management, Journal of
Viertler, M (2018) Boosting your sales ROI: How Marketing Practice: Applied marketing science, 1
digital and analytics can drive new performance (1), pp 9–21
and growth, McKinseys, February New York Sales and Marketing Association (2002)
Constable, J and McCormack, R (1987) The Making Tips and advice in selling, Sense and Sensibility, 22
of British Managers, CBI/BIM, London April
Denny, R (2000) Selling to Win, Kogan Page, London Rogers, B (2019) Account based marketing – is it
Dixon, M, Frewer, S and Kent, A (2011) Are your KAM, CRM or something truly new? [online]
sales reps spending too much time in front of www.koganpage.com/article/abm-is-it-kam-crm-
customers? Harvard Business Review, 8 February or-something-new (archived at https://perma.
Forrester Consulting (2017) Social Selling: A new cc/7487-QKST)
B2B imperative, on behalf of Hootsuite, May Toman, N, Adamson, B and Gomez, C (2017) The
Francis, K (1998) What is KAM?, Winning Business, new sales imperative, HBR, March–April
January–March Woods, S (2009) Digital Body Language, New Year
Golden, M (2018) What is account based marketing, Publishing, Danville, CA
why you should adopt it, and how, LinkedIn
Marketing Solutions Blog, 26 September
 348

12
Advertising
LEARNING OBJECTIVES
By the end of this chapter you will be able to:
●● understand the rapidly changing nature of advertising;
●● appreciate data-driven advertising and its variety of new targeting tools;
●● appreciate creativity (in message and media planning) is required to break through
the hyper-competitive clutter;
●● consider the potential for integration with social media and other marketing
communications tools;
●● plan the stages of an ad campaign;
●● ensure that your advertising is legal, decent, honest and truthful.

Introduction to the changing nature of Short-form ads 360

advertising 349 Postmodern ads 360
Advertising is changing 349 Contentious ads 361
The purpose of advertising remains the same 349 Native ads 362
The end of advertising or start of a new ad era? 349 Transactional banner ads 362
Strong and weak theories of advertising 350
The Big Idea and video 351 Unique device identifier 380
Second screen 351
Visitor tracking 380
Apps enhance TV CX 351
Owned, earned and paid media 352 Advantages and disadvantages of
Magic marketing formula 352 advertising 386
Left brain (analytics) and right brain (creativity) 353 Advantages 386
Disadvantages 386
Data-driven ad campaigns 353
Data delivers competitive advantage 353 Key points from Chapter 12 387
Data-driven targeting tools 354
References and further reading 388
Creativity in ads 358
User-generated ads 359 Further information 390
Long-form ads 359
 12 | Advertising 349

Introduction to the changing The end of advertising or start

nature of advertising of a new ad era?
Some ad critics for many years have said that adver-
tising will soon be extinct. Regis McKenna (1991)
Advertising is changing announced that we are ‘witnessing the oblivion of
Advertising is changing all the time, and in the last advertising’. Other critics say that social media,
few years it has seen some massive changes that chal- chatbots and one-to-one AI driven messaging com-
lenge the nature of advertising itself. It is morphing bined with location-based services and tailored vid-
into dialogues, social media, user-generated content, eos despatched via social media will kill advertising.
native advertising, personalized content marketing Mass media with its mass audiences has fragmented
and a myriad of wonderful new ways of communi- into thousands of TV stations, millions of websites
cating with customers. These include contextual ad- and an explosion of new magazines, radio stations,
vertising, behavioural advertising, location-based podcasts, blogs and new apps. Mass audiences are
advertising, long-form and short-form ads, postmod- harder to buy, and audiences now prefer more per-
ern ads, of course creative ads, including contentious sonalized messages anyway. But those who think
ads and continuous ads (known as ‘always on’ cam- that this augurs the end of lavish advertising pro-
paigns). This chapter explores these and uses a selec- ductions (which used to depend on mass audiences
tion of mini cases to demonstrate them in action. to make them cost-effective) will be surprised to see
We are moving from mass messages to mass per- lavish productions personalized and tailored via
sonalized messages (see Chapters 1 and 5), as Big technology (see Chapter 5).
Data and analytics teams (data scientists – the
‘Maths Men’) use programmatic ads, remarketing/
retargeting ads, data enhancement and automated
Who said this about advertising,
marketing (more later). We now have owned media* and when?
(your social media platforms and content market-
ing), earned media (shares/likes/comments/word of ‘Advertising [is] one of the most fundamental
mouth and reviews) and paid media (ads and native ways to sort out information. And that’s the gift
ads) channels. *Facebook has now reduced a of advertising: to connect with people in a
brand’s reach significantly, and instead, Facebook human way, to make the kind of emotional
now invites brands to ‘boost a post’ (pay for a post connections that are at the core of storytelling.’
to get a bigger reach/audience); in a sense you are
paying for the media you once thought you ‘owned’. ‘Advertisements are now so
numerous that they are very
negligently perused.’
The purpose of advertising remains Which of these statements is the more recent? One
the same is by Google’s CEO, Eric Schmidt, in 2009 and the
other by Samuel Johnson over 250 years earlier.
A large part of advertising aims to build awareness,
The answer is at the end of the chapter.
familiarity, trust and even affection, so that eventu-
ally the brand can be considered when a customer is
ready to buy. Let’s remember the original purpose of
Advertising people do have a unique ability to sim-
advertising is to inform, persuade and remind.
plify and condense a complicated selling message
Inform is all about grabbing attention, creating
into an emotionally charged 5, 10, 20 or 30-second
awareness and developing an interest and ultimately
piece of film, a poster or a banner. Great advertising
nurturing a desire for the product or service, while
will continue while integrating with automation,
persuade means motivating people to buy. Remind is
AI, IoT, AR, VR and an array of new platforms as
an important part of advertising, as repeat business
long as they are creative enough and relevant
is where long-term growth and profitability come
enough to cut through the clutter.
from and advertising has to remind and ­congratulate
More TV and radio stations, newspapers and
audiences on choosing their brands as well as re-
cinemas still need advertisements to fill them. Social
minding them to buy it next time they need it.
media platforms still need video to fill them.
 350 Part Two | Communications Tools

Customers still want to be entertained, informed Data-driven, micro-targeted ads do not necessarily
and engaged with relevant added-value content – build long-term relationships which mass media
but only when and where it suits them. Despite the
advertising used to achieve. Procter & Gamble
hype, advertising is not going away. It’s just rein-
have admitted their targeting went ‘too narrow’ and
venting itself to meet the demands and seemingly
that ‘mass reach remains important as it looks to
infinite array of opportunities.
stay front of consumers’ minds’ (Roderick, 2016). In
addition, ads that reach only buyers (and not other
Half of my advertising is wasted ‘brand admirers’) perhaps make brands less
aspirational to the rest of the heaving mass market
(as they never hear about, nor know of, the brand).
‘The days are over when clients politely smiled
So we need a balance between brand-building ads
when anyone used the John Wanamaker
and actions-based ads that sell products.
(1838–1922) quote: “I know half my advertising is
wasted. I just don’t know which half.” Today,
better-disciplined clients demand more
Media owners and advertisers are thinking more
measurement, more integration and more
creatively and, in some cases, thinking way ‘out-
dialogue from all of their communications.’
side the box’. They understand customers’ needs
Advertising Age (1999)
for interaction and involvement and are develop-
ing strategies to maximize them. This is demon-
strated by the integrating of social media, new
variants of advertising (see below) and radical re-
Never again will half of my advertising thinking by major brands like Coca-Cola who in-
be wasted vest in ideas that add entertainment value and
build relationships with the brand. It is developing
content and partnerships with media companies,
Although ‘Marketers will waste $6.3 billion on
as it sees its brands as ‘portals’ offering a ‘network’
internet ads that aren’t even delivered to humans!’,
or means of distribution in their own right. This
according to a study by White Ops and the
concept has been dubbed ‘brand entertainment’,
Association of National Advertisers (Shields, 2015),
and companies such as Coca-Cola, Nike, Orange,
we are today (2020) so efficient in micro-targeting
Red Bull and Mercedes-Benz are busy integrating
that we can use up to 200 variables to segment and brands into such varied areas as sport, entertain-
target ads with great precision. You will see how ment, music, travel and gaming. Some call this
data-driven campaigns are so accurate later in this sponsorship, others content marketing – but to
chapter. But, beware, here comes a warning about leverage maximum value out of either requires
being too granular and too tightly targeted using promotional support from PR, social media and
our new digital tools. advertising itself.

Strong and weak theories

Warning! Zero wastage/too many of advertising
micro-targeting efficiencies can The strong theory of advertising suggests that
damage your brand ­basically advertising works. Ads help move custom-
ers through a series of hierarchical stages towards
Great brands ‘aren’t built on the back of efficiently purchase (eg see AIDA in Chapter 4). When ads
­
targeted messages’ (Dempsey, 2018) aimed at persuade customers to buy something they have
­
custom-built micro-targeted audiences (more never bought before, or to change a behaviour (like
later). A large part of advertising aims to build drink-driving – see p 531) or change an attitude (and
awareness, familiarity, trust and even affection, so subsequent voting patterns – see ‘How Trump Won’
that eventually the brand can be considered when http://prsmith.org/blog/), this proves the strong
the customer is ready to buy a particular product. theory of ads. However, the strength of a­ dvertising is
 12 | Advertising 351

challenged since it assumes that customers are pas- experiences created from all touchpoints (including
sive and unable to process information properly. experiencing the ads themselves).
Professor Andrew Ehrenberg chall­ enged this and
proposed the weak theory of advertising (1974),
which suggested that customers are driven by habit Second screen
and that advertising reinforces rather than drives Advertisers now look for PR and social media con-
initial sales. Advertising could, he suggested, increase versational opportunities. The media consumption
the frequency of purchases, as it could stimulate ha- trend of viewing two screens is still growing as the
bitual buyers into more frequent choice of the adver- audience multi-task and simultaneously use TV and
tised brands against a repertoire of considered social media (via mobile or tablet or laptop). This
brands. He developed the awareness–trial–reinforce- delivers a second audience for advertisers (albeit
ment (ATR) model (see p 129). He maintained that sometimes with lower attention spans). Some audi-
advertising could increase or maintain awareness ence segments watch the main event on TV and
and improve the customers’ knowledge, but only for then extend the show via social media, which
those brands that customers were already buying (or ‘lengthens the shelf life of an advertisement’. Ads
at least had some prior knowledge of). Some aca- get seen on TV and also on social media via phone
demics went further and suggested that advertising or tablet, eg India’s wonderful OPPO F7 mobile
could not convert customers who had reasonably phone ad featuring the stars of India’s cricket team
strong beliefs that contradicted the messages in the imagining themselves as mischievous children, gen-
advertisements. The truth is that no one is 100 per erated an extra 32 million YouTube views during
cent sure of exactly how every aspect of advertising the 12 months to March 2019. Amazon’s Superbowl
works. The same applies for every aspect of market- 2019 ad (showing Alexa going wrong) generated 40
ing. The winners will be those who, firstly, combine million YouTube views in three months. As audi-
analytics and creativity and secondly, those who ences continue to migrate from offline to online, the
have inquisitive minds and a willingness to continu- second screens are growing in importance. Social
ally test, analyse and optimize what ads work best, media also helps to see if an ad is getting traction.
when and where. Have a look at the shocking 360 immersive video
(headset/screen) campaign to stop youth’s ‘drink-
The Big Idea and video driving’ for the RSA in Chapter 17, p 531.

Despite all of these changes, one aspect of advertis-

ing remains prominent: the Big Idea. This can be a Apps enhance TV CX
big creative idea for an ad from an agency or from
Apps add value to the CX, thereby extending brand
a ‘user created ad’ produced by members of the
usage, boosting brand awareness and strengthening
public and subsequently shown on major channels,
brand affinity. High-quality apps are putting brands
eg Doritos Superbowl ads. Check out Tongal.com,
back onto millions of screens (devices) worldwide,
a global community of talent that develops video
whereas devices were previously stealing attention
content for all platforms.
from TV viewership.
Note that the big medium of exchange is still film
Apps extend the user experience beyond the TV
(video) – not necessarily a 30-second TV ad but per-
with a wider array of engagement activities. Although
haps a 10-second or even 5-minute video targeted
the TV programme and its surrounding ads may have
at mobile devices and perhaps also aimed at another
finished at a certain time, apps prolong the sense of
20 different social channels which ends up going
being in an audience/group, thereby extending the
viral. Finally, don’t forget that these, and other, vid-
CX and simultaneously boosting marketing opportu-
eos can also become ‘mass personalized videos’ –
nities; eg TV’s X Factor app updates fans with exclu-
see Chapter 5, p 167, and Chapter 16, p 505).
sive extras, news, features, pictures, videos, fun polls,
So the Big Idea is still much sought after and,
all the songs and enables users to vote contestants on
today, it needs to cross channels and come alive in
or off the show. TV’s musical comedy series, Glee,
many more forms. Great advertising still comes
had an app that combined karaoke and social sing-
from great briefs, except now they are media neu-
ing. The app told customers if they were off-key and
tral as brands are no longer just ‘products’ but
 352 Part Two | Communications Tools

then corrected the pitch. Saved recordings were be ‘suspicious of paid media no matter whose name
uploaded and used to create a band of like-minded is on it’ (Slaughter, 2014). There’s a huge distinction
‘gleeks’ who followed and shared. The ‘Broadcast’ in readers’ minds between paid media and owned
button allowed users to add their performance to media and earned media, which readers trust. Note
Glee’s global sing-along, which also allowed other some brands now have to pay Facebook to get their
users to add their own voices on to another user’s – brand’s previous reach on Facebook.
effectively extending the virtual Glee club. Apps
enhance the TV CX and provide another ad platform.
‘Old’ media still works,
eg Netflix Billboards
Apps are assets that can become liabilities
‘How could Netflix alert audiences to the wealth of
exciting new shows and movies, when they first
Do remember that apps need to be maintained and
needed to attract new writers, directors, and
updated as app operating systems and security
actors to pitch ideas and work for Netflix? It spent
systems are updated. Without maintenance the app
$150m on billboard ads. Where? Sunset Strip, Los
performance weakens, reviews become negative
Angeles proving that a big, bold billboard ad, on
and the downward spiral emerges where a
the street where Netflix’s target audience walks by
marketing asset becomes a marketing liability (like
every day, still delivers results. “The power of OOH
when a clean database asset becomes a liability if
Media (billboards) has yet to be fully realized.
it is not cleaned and updated).
There’s dormant equity ready to be unleashed.
Netflix sees this”, says the OOH media company.’
Fletcher (2018)

Emotional data for emotionally

targeted ads
Magic marketing formula
Imagine an advertising engine that monitors people’s
Always apply the magic marketing formula – IRD –
emotional states based on their search queries,
to boost results:
emails, instant messages, use of online games, as
well as facial expressions, tone of voice, speech ●● identify needs;
patterns and body movements – using motion- ●● reflect these needs and/or solutions (through
sensing input devices embedded in smart products. ads, sales presentations, search engines, etc);
●● deliver a good CX (ie fulfil your promise
consistently at every touchpoint).
If Coca-Cola’s research identifies people’s need to
Owned, earned and paid media be loved, Coca-Cola then reflect this by showing
Owned media refers to your own channels or media, ads of people drinking Coke and having a really
such as your website, your YouTube channel or good time (whether they are people or polar bears,
Twitter stream where you have a certain amount of there’s an undercurrent of love). If a B2B technol-
control over your message. Earned media refers to ogy supplier identifies a segment’s main need is, say,
engagement, which means word of mouth gener- security, then it reflects ‘security’ in its ads, exhibi-
ated by discussions/comments, likes, shares (where tions and social media.
you have very little control), all triggered by your When you search for a very specific multi-word
marketing content and social media messages. ‘Paid key phrase and then you see that exact phrase appear
media’, whether banner ads, pay-per-click ads, pro- in the search engine results, it is a ‘eureka’ moment,
moted posts or sponsored content, all offer more a fusion of your specific need with a supplier’s offer-
control over your message and can be a much faster ing. The perfect match. This is the magic marketing
way to spread a message. However, audiences can formula reflecting your needs through SEO.
 12 | Advertising 353

F I G U R E 12.1  This creative ad by Fold7 cuts through the clutter and then presents a
powerful proposition

SOURCE: Courtesy of Audible

Left brain (analytics) and right and cookie data and that’s all there was. Today, that
data environment has opened up with vast and var-
brain (creativity) ied data sets providing all sorts of deeper audience
You will see the power of data and data analytics, in insights and contextual user information. Advertisers
particular, in all of the case studies at the end of this and their agencies now seek richer, multi-layered sets
chapter. Programmatic advertising, marketing auto- of data to give information on location, history, de-
mation and hyper-competition require data analyt- mographics and other sources that enable advertis-
ics (left brain) to understand customer needs and ers to serve the right ad, to the right audience, in the
also to target audiences more efficiently. Creativity right place at just the right time.
is also required to help your message cut through Location-based data will become more power-
the clutter generated by the hyper-competitive mar- ful, as demonstrated on p 356 and the case study on
kets. In fact, creativity in advertising, whether with p 377. It is crucial in understanding, segmenting,
just seven words in text (see the greatest ad ever – contextualizing, and actually predicting customer
later), 30 words or a three minute video, creativity behaviour.
is essential to grab an audience whose attention In what would have been inexplicable marketing
span has shrunk and who is also ‘time poor’. jargon just a few years ago, here’s Blis (consultancy)
talking about how data can create competitive
advantage in advertising:
Using device recognition augmentation methods,
Data-driven ad campaigns such as device usage profiles, geo location
clustering, cross-device/screen analytics or ID
Data delivers competitive advantage linkage, improves digital marketing programs.
Exclusive strategic data partnerships with,
The digital advertising landscape has rapidly say, major wifi providers O2 and Sky are also
changed over the last few years. Not long ago, digi- important. The mobile environment is expanding
tal marketing, and digital targeting had its limita- fast. The proper use of data is delivering
tions – it was based on content behaviour, search competitive advantage to those that seek it.
 354 Part Two | Communications Tools

Data-driven targeting tools a customer’s changing status or status updates on a

social network. For example, a man who updates his
Customers still want relevant advertising to inform status with ‘I’ve just got engaged’ will subsequently
them, entertain them and challenge them just as be- be served ads about wedding photographers, suit
fore. After all, advertising does inform, persuade and hire, limousines, romantic honeymoon holidays and
remind. It can still, very quickly, help to build brands, maybe even wild stag venues. This is contextual
raise awareness and nurture brand relationships, and a­ dvertising.
all in a relatively controlled environment (compared
to the vagaries and uncontrollable n ­ ature of editorial Behavioural targeting
exposure generated by PR, sponsorship and social
Behavioural targeting is similar but based around
media campaigns). Let us consider the many differ-
previous behaviour, since this gives an indication of
ent data-driven approaches to targeting ads today:
interests (particularly if the visitor is repeatedly visit-
●● socio-demographic and geographical ing a particular site or similar sites). The visitor pro-
(residence and office); file is also used, eg if a 23-year-old male living in a
●● contextual targeting (a third party ad on a major city is online comparing car prices, Microsoft
website that is relevant to the page’s content); can serve (or target) him with an ad for a Mini
Cooper car, while a 40-year-old suburban business-
●● behavioural targeting (targeting ads based on
man with children might be served an ad for a peo-
previous online behaviour; includes
ple carrier. Behavioural targeting uses a systematic
remarketing/retargeting and day-parting
observation research that tracks behaviour over
including/excluding specific times-of-day);
space and time. It gets more interesting. Ads can be
●● custom audience (including behavioural, made even more relevant according to the geo-
geographical, interests and lookalike graphic location of the customer. The tracking may
audiences, in fact Facebook offer over 200 focus on a particular place (place-centred mapping)
different variables to target audiences); or be based on an individual’s movements (individual-­
●● location-based marketing (including centred mapping). See how Mini (cars) used behav-
geographical plus current location, ie where ioural mapping in some micro cases at the end of the
you are visiting online and offline). chapter. In fact, you can explore a lot more detail on
how to manage a location-based marketing ad cam-
Socio-demographic and paign on page 377 at the end of this chapter.

geographical targeting
Remarketing and retargeting
The classic demographic and geographic segmenta-
tion variables are age, income, job type combined (a form of behavioural targeting)
with geographical place of residence (or office loca- Remarketing (by Google) and retargeting (by
tion). These have been used to target advertising for Facebook) are pretty much the same. They both ba-
generations – eg your target might be 25- to 35-year- sically remarket your brand to your previous web-
old ABC1 females living in London. We explore the site visitors (and/or Facebook followers) when they
intriguing possibilities of layering location-based visit other websites. So, for example, when you are
data (online and offline location data) when target- browsing around the internet… if you previously
ing advertising on p 377. put a shiny new Nikon D800 in your shopping cart,
but didn’t buy it, Google will offer advertisers the
Contextual targeting opportunity to put ads for the D800 in front of you.
Or if you visited a new elite fashion design site, a
Contextual targeting matches an ad with (a) the con-
website banner ad for that site will pop up when
tent that is being displayed to the visitor and (b) the
you visit other sites to lure you back to them.
identity of the visitor – so that the targeted ad is rele-
Incidentally, if the banner ad is a transactional
vant to the page’s content and the user profile. Online
banner ad (more later) you can buy directly through
newspapers can serve specific ads to readers deter-
the banner ad itself, ie without leaving wherever
mined by the pages they read, the words on the pages,
you are at that moment. Retargeting is like building
the number of pages they read and how often they
an invisible anonymous email list of every visitor to
read these pages. Ads can also be served according to
 12 | Advertising 355

F I G U R E 12.2 How remarketing works

SOURCE: Courtesy of Lovi

your website but without collecting their names and You can: (a) exclude customers that have already
emails. You can’t see who’s on your list but, you can bought from this list; (b) set a limit to the number of
see how many are on the list, and, more impor- ads an individual will see; (c) control the recency of
tantly, serve them ads as they visit other sites online. visit as it can be capped from 1 day to 7 days to 30
days or 60 days. Note: Ashley Furniture, our main
Remarketing: How to set it up case in this chapter, saw a significant drop off of
conversions from visitors who visited longer than
To start using remarketing, add the remarketing
7 days prior.
tag across all your site pages. The tag is a small
snippet of code that you get from AdWords or the
pixel ‘snippet of code’ from Facebook. Many sites
have an identical footer for all pages, and this
­remarketing tag could be placed there. Once you’ve Custom audience
added the remarketing tag to your site, you can If you upload the small snippet of code that you get
create remarketing lists for any of your webpages – from Google Ads or the pixel ‘snippet of code’ from
effectively an anonymized list of visitors who are Facebook onto your website, you can then build your
interested in product X (if they visited product X own list of visitors that can be later used for (a) re-
page). So when a visitor visits this page, their marketing banner ads either on the Google network
cookie ID is added to the remarketing list. If that or Facebook, and (b) creating a ‘lookalike audience
visitor (or that browser) with the unique cookie (with Facebook Ads) or a ‘similar audience’ (with
appears on another site, the original site is invited Google Ads). A lookalike audience needs a source or
to bid to serve an ad to that already interested vis- ‘seed’, which can come from custom audiences – eg
itor – even though they are on another site. uploading your own customer list, or a list (from
your pixel data) that visited this webpage or that
webpage or watched some video (say, 10-second
video viewers).
Remarketing = stalking? You can create your own custom audience, say
with Facebook, in these ways:
‘Some consumers are being bombarded by these ●● Upload your own existing customer file to
ads. Poorly executed campaigns make ads stick Facebook, which then searches for matches to
to you like flypaper, following you everywhere create a lookalike audience. (This process also
you go, sometimes weeks after visiting a enables you to reach your current customers
marketer’s website. While retargeting can create with messaging via Facebook. You might
a lift in direct-response metrics, what is the long- want to do this to encourage them to become
term impact on branding from being relentlessly a fan of your page, or simply to use an
stalked like this? It’s a question that smart additional channel to attract their attention.)
brands are considering carefully.’ ●● Website traffic visitor list (using the Facebook
Straz (2012) pixel) created from visitors to your website.
 356 Part Two | Communications Tools

●● App activity – a list of people who

download/use your app (or game) or a Many websites, some apps and most free wifi
custom audience of people who have used it, systems opt users into this type of advertising
within a specific timeframe. (permission is often granted when accepting the
●● Offline list –a list of people who engaged terms and conditions of free wifi, so read the small
with you via visiting the real store, or called print), or when accepting cookies. Each device is
you via phone. given a unique identifier, which can then be tracked.
●● Engagement list – a list of anyone who engaged
with your content on Facebook or Instagram.
Facebook Custom Audience tool matches your list Target audience when working with Google Ads or
with its own database to create lookalike audiences Facebook Ads:
(or ‘similar audience’ with Google Ads). 1 Warm audience:
Have visited your website or your Facebook.
Custom audience and lookalike – Remarketing (Google).
audience – Retargeting (Facebook).
You can build a custom audience of people who –  an target by location and recency of visit
C
have similar demographics, interests, likes to people and which page visited.
who are already interacting with your website. You
2 Cold audience:
can choose people who visited specific pages but
not other pages, or people who have not visited in a Have not visited your website or your
certain time period, etc. You can also exclude any- Facebook but can become:
one who saw a previous ad. You can exclude buyers a Custom audience
and/or anyone else who has progressed further – Facebook Ads and Google Ads offer
along your funnel (identified by visiting specific web many segmentation variables (Facebook
pages). There are 17 events (Newberry, 2019) that has 200 variables) including
can be used including purchase, registration, pay- demographics and interests to create
ment, add to cart, add to wish-list, donate, find lo- your own target audience.
cation (someone who looks for your business
b Lookalike audience
location).
Custom audience can be used to create a broader – Facebook find an audience that has a
‘lookalike’ audience to target similar users. Facebook similar profile to your existing
will look for similar characteristics in common with customers and/or visitors. Google ads
your own audience. It will then generate a new big- call them ‘similar audience’.
ger ‘lookalike’ list of prospect customers who have Note: remarketing, along with targeting Facebook
similar characteristics. ‘lookalike’ audiences (similar profile to your cus-
Lookalike audiences are exactly what they claim. tomers or fans) and Facebook custom audiences
Facebook Ads and Google Ads (‘similar audience’) (customers you already know) are used in the
will analyse your customer database, website visi- Topline Christmas ad campaign, p 479.
tors and followers/fan base, to determine their pro-
file and then find a similar audience and serve your
ads to this ‘similar’ or ‘lookalike’ audience. The only Location-based advertising
filter to consider using is ‘geography’. These looka- Once upon a time marketers used to say ‘you are what
like audiences are considered to be a ‘cold audience’ you shop’ (your purchases represent who you are, or
as they may not have heard of your brand yet. They who you aspire to be). Then ACORN came along (A
may not have visited your website nor Facebook Classification of Residential Neighbourhoods) and
page, but they do have a similar profile to your own said ‘you are where you live’, based on the assumption
elusive ‘ideal customer/fan’. that people living in the same kinds of places purchase
 12 | Advertising 357

similar types of products. Then came mobile location

marketing which said ‘you are where you are’ (and Using data to find mortgage customers
where you have been). A lot of advertising is based on
the sites you visit and the searches you make. Now TSB Mortgages continually improve the
you can also add in the locations, or places, you phys- effectiveness of their ad campaigns. Working with
ically visit in the ‘real’ world. Today location-based Manning Gottlieb OMD and Talon, Blis analysed data
advertising version 2 also uses data about where a generated from over 200 million daily ad impressions
user has been (rather than just where they currently across a two-week period to map the actual real
are). A deep analysis of behaviour can include (within location of people in the market for a new mortgage.
milliseconds) both where you’ve been visiting/brows- They geo-fenced estate agencies in Cambridge, so
ing online and where you’ve physically been visiting/
they could look at the devices that were inside this
travelling in the real world offline. Now ‘you are
area and then tracked where they went afterwards.
where you have been (online and offline)’.
Equipped with this data, Talon, an Out Of Home
(OOH) media specialist agency planned where to put
their OOH advertising based on these movements.
We, increasingly, know who you are Geo-fencing is drawing a border around a target
location, which enables marketers to detect target
Someone visiting a cooking website was a ‘stay at devices within this location.
home’ mum. But if more data also shows that the Tracking those who visited estate agents and
same person goes to an international airport once a then used property-related mobile apps and
week and visits the business lounges, we could websites helped to identify (a) property hunters and
assume he or she is a business traveller who (b) what these property hunters’ travel routes were
enjoys cooking as a hobby. Add in even more data so that TSB could buy OOH advertising billboards in
points and you begin to get a very accurate picture the most effective locations.
of what kind of person they are. You can also target
users who have been in, say, a particular store any
time within the last six months.
Location-based ads vs geo-targeting ads
Location-based ads should not be confused with the
geo-targeting which Google, Facebook and other
platforms have been using for many years to target
We know where you are specific areas based on where the user is geographi-
cally located – either recognized by the locations of
his/her internet service provider or the registration
If any of your apps or social media platforms have details which include their address (home/office ad-
‘location’ enabled in the settings (most people do dress). Location-based ads, on the other hand, use
so), then your device (mobile) can trigger location-tracking technology in mobiles to target
information to be sent to an ad network telling it customers with specific ads that are relevant to their
that this device owner with a particular profile is actual location as they travel around.
within a few metres of a Burger King (based on
physical places and websites you have visited and
Location beacons
apps you have been using).
Push-based ads can be sent to you by a media iBeacon technology enables unprompted messages
company once you have (a) opted in to receive
to be sent your mobile as you move around either
outside or inside a store. Retailer apps installed on
relevant ads (often while signing up for a mobile
your phone effectively listen out for the signal
phone service) and (b) are in a particular location
transmitted by these beacons and respond by dis-
(and have opted in for ads when downloading an
playing a special offer when your mobile comes
app or signing up for free wifi).
into range of a beacon (which is effectively a small,
cheap Bluetooth transmitter). Virgin Atlantic tested
 358 Part Two | Communications Tools

iBeacon at Heathrow Airport (Ranger, 2014a) – their location to attract their friends into the venue.
when passengers walk towards the security check- Other customers might value knowing that a friend
point their phone automatically pulls up their is having a coffee or a beer around the corner – as
mobile boarding pass ready for inspection. Upon long as they are happy for all their network to see
entry into the Virgin lounge you are greeted by what they are doing and with whom.
name (as the beacon technology presents Virgin
staff with information on who you are) and they
then present you with your favourite cocktail.
Programmatic ads
Programmatic advertising, or programmatic market-
Hyper-competition ing, uses data to automate the auction (buying and sell-
ing) of media inventory (ad space). This helps marketers
It’s the dream of some brands to put a cookie on a firstly to target more relevant audiences, secondly to
rival’s home page. With location-based mobile tailor and personalize ads and thirdly to run remarket-
advertising, they can come close. For example, ing ads. PA uses real-time first- and third-party data to
fast-food brands can already track users (without identify the best online audience for a campaign.
knowing their names) who visit their competitors’ Programmatic ads and their real-time buying
stores and then serve them ads at key times of day. creates an automated online auction to buy space
Once Blis know the device ID, they can see what for your ads. Hence the ‘Maths Men’ create algo-
rithms to place ads in real time in front of more
the user looks at, has looked at and where they’ve
relevant audiences.
been as well as where they are.
Publishers (media companies or website owners)
list their inventory (and their audience profile).
Advertisers specify which ad inventory (audience pro-
file: demographics, geography, interests, behaviours,
Hyper-local targeting ads time of day, device, etc) that they wish to purchase.
While a potential investor was on holiday in Bali, When an advertiser is matched with their target
Blis crunched his data to determine his location and audience, ad exchanges use automated auctions to
served a ‘Happy Birthday Harry’ banner on each sell individual impressions to the highest bidders,
mobile site he visited that day. whose ads are then served to the individual. This is
Blis geo-fenced W Hotel, Bali. So each time his all done in about 1/10th of a second.
device ID appeared on a website that used program-
matic ads, Blis got a notification of an invitation to
bid to serve an ad (or, in this case, a very personal
message). Note: There is more on location-based
Creativity in ads
marketing in the next section. There is no doubt that marketers need creative ads
to cut through the clutter. Marketers also need the
data scientists and media planners to use data in
Will you share your location data? new creative ways so that marketers’ ads can reach
audiences that actually need the information at just
A restaurant, pub or night club may incentivize the right time in the right place. Chapter 1 discusses
customers to share a special offer while sharing the ongoing need for creativity.

F I G U R E 12.3 Blis birthday banner

SOURCE: Blis
 12 | Advertising 359

More creative ads will emerge, whether user-­ Long-form ads

generated ads, apps, games, virtual reality, long-form
ads, short-form ads (one-second), postmodern ads, Long-form ads can help a brand stand out from the
outrageously creative or plain old contentious ads. clutter and do not necessarily cost an awful lot
Let’s explore some of these. more than a traditional 30-second or 60-second ad.
Nike created a three-minute ad about the art of
dropping beats using sneakers. Waitrose’s mini-
User-generated ads cooking show with celebrity chefs giving cooking
tips used the whole three-and-a-half-minute ad
Customers, visitors or followers are invited to cre-
break. Absolut Vodka created a 15-minute docu-
ate a brand’s ad. The best ideas are whittled down
mentary commercial featuring Jay-Z called NY-Z;
to a handful and eventually a winning idea is se-
Kraft Foods’ Greek chocolate brand Lacta created a
lected. Public relations and social media work hard
27-minute user-generated branded movie initially
behind the scenes spreading the word of mouth as
for online consumption but eventually seen on local
the final selections are narrowed down and the win-
TV (free), as it generated so much buzz. A natural
ner is chosen. Chevrolet’s Tahoe opened up user-
extension of long-form ads is sponsored TV pro-
generated (UG) ads by unveiling the winning ad
grammes (for more on sponsorship see Chapter 14).
during the Super Bowl. UG ads save creative costs
and generate interest in the campaign. We are now
seeing the emergence of user-generated content
(UGC) ads, UGC films or UGC long-form ads. Sites Lady Gaga’s nine-minute ad
like Tongal.com host very creative individual talent
(and product placement)
who prefer to work independently.
As you move into long-form ads/videos/films the
‘Lady Gaga’s nine-minute video included product
lines blur between advertising and content market-
placement for Virgin Mobiles, Wonder Bread
ing, eg Red Bull TV have 1, 2, 5, 10, 60 minutes and
and Miracle Whip. As of 2019, it has had “over 91
even 2-hour action-packed videos. Whether you call
them high-quality content marketing videos or million views on YouTube, with 83,000 comments,
long-form video ads, audiences still want well-told, as well been watched on MTV.com, Facebook
interesting stories (without too much of a hard-sell and tweeted directly from the pop star’s site”.
advertising pitch). Featured throughout “Telephone” are shots
of a Virgin Mobile cellphone, a nod given to the
mobile sponsor of Gaga’s Monster Ball tour, as
Google’s perfect ad well as a Polaroid camera and photo booth as
part of Gaga’s new role as the camera
‘I’ve always argued that the correct ad in company’s creative director. Several
YouTube is itself a YouTube story. Once you start characters are also seen listening to music on
watching, it’s so good you can’t stop – don’t have Heartbeats by Gaga headphones from
a 30-second limit in principle – and the best ads Interscope Music and surfing the internet on
may be an ad about a refrigerator that is so the “Beats” laptop from Hewlett Packard, all of
compelling you will drop everything in your life which were unpaid extensions of Gaga’s
and drive at full speed to get to the refrigerator marketing partnerships.
store. That’s the job of advertising companies: to Online, music-video site Vevo bought a slot
come up with that narrative that will get you to on the YouTube home page that referred users
really want that refrigerator. That’s what they to the “Telephone” page on Vevo.com, which
compete over; our job is to host them.’ crashed the morning of the clip’s premiere. The
Eric Schmidt, in Kennedy (2009b) video broke all Vevo single-day traffic records
and had already generated close to four million
Note: Independent creative professionals and even views on YouTube in less than 24 hours.’
some creative influencers, along with ad agencies, Hampp and Bryson York (2010)
all produce some perfect ads – or at least ‘near-
perfect’ ads.
 360 Part Two | Communications Tools

Short-form ads However, there is a link between the brand and

the ad. It is ‘feeling good’, which is how people
Somebody had to do it sooner or later, and Miller feel when they eat chocolate. What engages peo-
beer did it – a one-second TV spot during the Super ple b­ etter than a gorilla sitting behind a set of
Bowl 2009 (the American football final). The ad drums waiting, as a really well-known piece of
cost a fraction of the $3 million normally charged rock music builds up to the climax, where the
for 30-second spots during the Super Bowl. The ad, drums come thumping in by a gorilla drummer?
starring actor Windell Middlebrooks, gave one sec- The ad didn’t tell people to feel good; it simply
ond of inspiration and reminded viewers that ‘High made them feel good. Results: Still popular on
Life is common sense in a bottle’. YouTube in 2020 (13 years after it was launched).
Some 50 individual YouTube channels still show
the ad, (one with 9.5 million views, another with
Postmodern ads the extended mix of four and half minutes long
Postmodern advertising may at first seem a little with almost 4 million views); 100 Facebook
abstract, and certainly unconventional, as neither groups and many bloggers have tried to identify
the user nor the product is the hero. Some mar- why they liked the ad so much and whether the
keters find it difficult to understand how an ad gorilla was Phil Collins (the singer) in a gorilla
that doesn’t promote a brand’s values or have suit, This single 90 second ad boosted awareness
any apparent link to the brand can work. and affection for the brand plus it delivered a 9
Consider Cadbury’s drum-playing gorilla ad. per cent sales increase year on year. In addition,
This, now classic, postmodern ad has no appar- all five Cadbury’s chocolate bar variants were
ent link to the brand, as drums, music, gorillas back in growth for the first time since the begin-
and animals are not part of the brand equity. ning of 2005. In 2020 this ad lives on.

F I G U R E 12.4 Cadbury’s drum-playing gorilla

 12 | Advertising 361

Postmodern ad brief Greatest ad ever: Ogilvy and the Beggar

‘People feel uplifted when they eat it [Cadbury’s We feel that this is, arguably, the greatest ad of all
chocolate]. One of the things I believe time. Just seven words long. Read on.
passionately is that the advertising should be as
‘During one of his morning walks to work in New
enjoyable as the product. The brief was not to
York City, David Ogilvy encountered a man
tell people to feel good, it was to make them feel
begging with a sign around his neck. The sign
good and the “gorilla execution” is an
read: “I am blind”, and, as evidenced by his
expression of that.’
nearly empty cup, the man was not doing very
Phil Rumbol, former Marketing Director,
well. Ogilvy removed the man’s sign from around
Cadbury, in Jones (2008)
his neck, pulled out a marker and changed the
sign to read: “It is spring and I am blind.” He
hung the sign back around the beggar’s neck
and went on his way. On his way home he was
Contentious ads pleased to notice the vagrant had a full cap.’
Marketers have to be relevant and increasingly cre- Daye and VanAuken (2008)
ative, sometimes challenging and occasionally con-
NB There are many variations of this story and
tentious to break through the clutter. The Paddy
many claims and many different cities, but the point
Power ad in Figure 12.5 certainly cuts through the
still stands – customer empathy is a powerful
clutter. Also have a look at the shocking 360-degree
marketing skill.
immersive video campaign for the RSA, designed to
stop youths ‘drink-driving’; it was contentious as it
was so real (p 531).

F I G U R E 12.5  This six-week outdoor campaign broke through the clutter but received
consumer complaints via the Advertising Standards Authority towards the
end of the campaign; the ad was subsequently withdrawn slightly earlier
than expected
 362 Part Two | Communications Tools

Native ads journalistic standards’ (Pulizzi, 2014a). But either

way, it looks like native advertising is here to stay.
Native advertising (or ‘in-stream’ advertising) is on-
line advertising that looks like editorial (often called
‘advertorial’). Native ads look and feel more like Transactional banner ads
content. They never disrupt the user experience
Interestingly, many banner ads are now ‘transac-
since the ads never interrupt the normal reading/
tional banners’ or, alternatively, branded applica-
viewing behaviour of the user in that particular
tions (apps), which means customers can buy
channel. Native social ads are dressed up to look
directly from the banner without being taken away
(almost) exactly like normal tweets, Facebook
from their preferred platform to a website.
posts, and LinkedIn updates from your friends and
Customers on Facebook can order a pizza delivery
followers. Despite the declaration words such as:
while still on Facebook. These transactional ban-
‘ad’, ‘sponsored’ or ‘sponsored content’, these ads
ners take customers right through the AIDA buying
blend in with the editorial. Media owners and pub-
process (see Chapter 4).
lishers are increasingly looking at ‘native ads’ as a
Now that we have explored both data-driven
way to replace any lost ad revenue. Forbes business
ad campaigns and creative approaches to advertis-
magazine even blends in native ads on its cover.
ing, let us consider a variety of actual ad cam-
‘Critics suggest that, at best, native advertising is a
paigns in action.
form of trickery and, at worst, a gross violation of

C A S E S T U DY  Rotating videos PPC sales funnel boosts ROAS: Ashley HomeStore

Facebook ad campaign

●● Generate sales that deliver 20 × return on ad spend

Situation analysis
(ROAS).
Ashley HomeStore is the number one furniture retailer in ●● Reduce cost-per-store-visit to less than $16.
the USA. and one of the world’s best-selling furniture
store brands with more than 800 locations in 45 countries
Campaign strategy
(600 stores across the USA). They target consumers in the
regions where the stores are located. This is a highly Ashley HomeStore was given BlitzMetric’s 3 × 3 video/ad
competitive market and Ashley HomeStore like to stay on grid (Figure 12.6) to help move prospects (that are using
top of digital trends, in fact, all trends that affect their Facebook) through a three-step sales funnel: awareness,
marketplace. ‘We’ve always considered ourselves to be consideration and conversion. The ads effectively move
leaders in the digital marketing space – early adopters prospective customers down the sales funnel into a
experimenting with channels to boost our presence on conversion campaign where they eventually purchase.
social, search and digital reputation platforms,’ says They effectively deliver a sequence of videos to the
Michael Melaro, Senior Director, Retail Performance for Facebook page’s social following, which ultimately converts
Ashley HomeStore. They met with Dennis Yu from views into sales. Prospects are helped through the sales
BlitzMetrics and ‘everything changed,’ says Michael. Here funnel with relevant videos while location segmentation
is the story of a highly successful Facebook advertising layered on refers prospects to their nearest store.
campaign targeting US customers.
Tactics
Campaign objective
Goals, content and targeting are the roadmap used to help
●● Establish a three-stage sales funnel for targeted prospects move into the awareness, consideration and
prospect customers that are using Facebook. conversion funnel. Goals are a brand’s metrics –
●● Develop a process that other licensees (other stores in numerically driven targets, eg cost per lead, ROI/ROAS,
the group) can utilize. revenue, traffic, etc.
 12 | Advertising 363

F I G U R E 12.6 3 × 3 video grid

SOURCE: Used with kind permission from BlitzMetrics

Content supports each of these goals, and ties these sales watched 10 seconds or more, or visited a page, or
funnel metrics to audience segments (eg those that are engaged with a post, or clicked a CTA, or sent a
aware of Ashley HomeStore, or those that are both aware message or saved the page or any post), they are then
and also consider visiting Ashley HomeStore when buying listed as a prospect (that is, aware of Ashley
home furniture, etc). The 3 × 3 video grid rotates three HomeStore). They will then be served a stage 2 video.
different types of video ads for each of the three stages. Ashley HomeStore can see/measure how many
Stage 1 videos (Figure 12.9) are rotated and shown to prospects are being nurtured along the conversion
targeted prospects to help them become aware. Stage 2 funnel. Eventually, this results in a sale, because this
videos (Figure 12.10) are designed to help prospects approach generates a list (or ‘bucket’) of ideal
consider Ashley HomeStore as a possible furniture store prospects who are ready to be served the final stage
worth visiting. And the final stage 3 videos (Figure 12.11) ad set – helping them convert to customers via visiting
are designed to help the audience that is aware of and the store.
has Ashley HomeStore in its ‘consideration set’ to convert Compelling content is also essential, as is targeting the
and become customers by enticing them to visit the actual right people at the right stage in the funnel.
store. There are three target audiences:
Targeting is essential. This means identifying and ●● Saved audience (cold targeting). This lets you target
targeting prospects that are at different stages of the interests, behaviour, income level, locations and more.
funnel. Location segmentation is also used so that In this example it is people who live in a region/area
prospects can be referred to their nearest store. So each with specific demographics and interests:
segment (defined by which stage of the sales funnel) is demographics > life events > recently moved.
paired with the relevant content (video) in a carefully Interests: DIY network, fixer-upper, Flip or Flop (TV
created sequence of video ads. The campaign also targets series), HGTV decorating show, etc.
consumers in the regions in which the stores are located.
●● Lookalike audience (where Facebook finds more
Once a prospect views a stage 1 video ad they
people who have similar profiles to your existing
become aware, and if they engaged with the ad (ie
 364 Part Two | Communications Tools

F I G U R E 12.7 Awareness, consideration and conversion funnel

SOURCE: Used with kind permission from BlitzMetrics

followers/likers or customers). BlitzMetrics take off Awareness

additional targeting criteria while leaving geographic
This first step was developing Ashley HomeStore’s brand
targeting on. Facebook’s algorithm does all the heavy
awareness. The intention with the first set of ads was not
lifting from here on, ie its algorithm is so strong it will
to push a product or service but to develop the Ashley
outperform manual targeting. Facebook’s targeting
HomeStore brand awareness in a particular region, eg the
algorithm uses a strong ‘seed’ audience from the
New York market. Using compelling stories and fun
existing purchaser list (uploaded to Facebook).
furniture tips, the consumer connects with the Ashley
●● Custom audience. Custom audiences are people who brand on a personal level. The ad examples shown in
have visited your website or have engaged with your Figure 12.9 are the top-performing awareness ads.
post who are then retargeted. Since they’re already a
‘warm’ audience, it won’t take much for them to take
Consideration
action. If they saw a stage 1 ad (if they watched at
least 10 seconds of the video) they can then be served The stage 2 videos/ads for Ashley Furniture’s Facebook
a stage 2 ad next time they log in. Custom audiences strategy are the ‘how’ videos. This is the consideration
can be further segmented: 7-day website visitors (14 step of the funnel. Consideration comes in many forms,
days, 28 days, 90 days or 180 days); 7-day Facebook whether it’s video views, likes, comments, shares or
visitors (30 days, etc). even link clicks. Not only do these videos drive
consideration, but they also help establish the business
Start off with awareness (stage 1 ad). When someone sees
as a trustworthy source of information. This is a key step
an awareness video, they’ll get retargeted to the
in the process of building positive connotations toward
‘consideration stage’ and usually in the consideration stage
the Ashley brand.
they get a call to action (CTA). The CTA might be ‘Hey,
check out our web page!’ When they click on the website,
and land on the page, they’ll be retargeted for a stage 3 ad. Conversion
Ads will pop up as a ‘sponsored post’ on Facebook The final step of this strategy for Ashley HomeStore was
newsfeed, Instagram feed, Instagram stories, messenger, to create the conversion videos/ads. This is the product or
audience network (see Figure 12.8). service that Ashley HomeStore offers. This step is what
 12 | Advertising 365

F I G U R E 12.8 Ashley HomeStore Facebook advertisement

SOURCE: Used with kind permission from BlitzMetrics

F I G U R E 12.9 Ashley HomeStore Facebook ads: Brand awareness

SOURCE: Used with kind permission from BlitzMetrics

 366 Part Two | Communications Tools

F I G U R E 12.10 Ashley HomeStore Facebook ads: Consideration

SOURCE: Used with kind permission from BlitzMetrics

F I G U R E 12.11 Ashley HomeStore Facebook ads: Conversion

(a) (b) (c)

SOURCE: Used with kind permission from BlitzMetrics

 12 | Advertising 367

most businesses do first – advertise or push products/ Starting off with a 1 per cent lookalike of existing store
services online. What does Nike sell? Plastic, rubber and purchasers at the top of the funnel is an effective way to
fabric shoes. Do Nike commercials and ads talk about the leverage Facebook’s algorithm to do the heavy lifting and
specific materials used, or do they sell the dream of being go after people most likely to be ideal purchasers.
a healthy runner on the Amalfi coast? Without the Geography is a filter worth considering but not
awareness and consideration messages/steps demographics, as this then might ignore Facebook
prospective customers ignore most businesses. algorithm usefulness. So 1 per cent of your target region
Consumers do not want to connect with a business that will be the best matching profile audience (that matched
continually spams inboxes. Typically, it takes seven your original ‘seed’ audience) but will be a smaller number
touches for a consumer to convert into a customer. The of people, whereas 10 per cent will be a bigger audience
3 × 3 video grid makes those ‘touches’ and converts but not as tight fitting as the 1 per cent audience.
prospects into customers. For the consideration campaigns the ad sets would
primarily be made up of retargeting to warm audiences
Actions such as:
●● page engager audiences;
A big challenge for many businesses, particularly when
working with partners and agencies, is how do you ensure ●● mega 10-second video view audiences (a compilation
your campaign plan will be executed with excellence and of videos from Ashley HomeStore that people have
passion? BlitzMetrics recruit and train their teams rigorously. watched for at least 10 seconds).
All of the videos need to be created with the appropriate For the conversion campaigns, the strongest audiences
messages suitable for prospects at each stage of the funnel. are 7-day website visitors (ie those that visited the
They also use automatic reporting systems to ensure the website in the last 7 days). After that, there is a significant
videos they produce are deemed to be excellent. They do this drop-off in conversions, ie 14-day website visitors do not
by monitoring the videos carefully when they are posted. convert as much.
They can see which videos get more traction – more After thorough testing, website visitors are the strongest
views and more engagement, which includes: reactions audiences for conversions. Website visitors are more likely
(likes and emojis), shares and comments. to convert to customers when put into designated buckets
With each Ashley ad, BlitzMetrics look at the relevance (or lists) and are shown ads that they will relate to.
score and reactions, comments and shares to ensure ads The best ads are carefully preselected by testing them
are generating social proof, thus delivering cheaply and on social media platforms to find out their:
putting the strongest content in front of prospective
●● Performance: The videos are first posted on various
customers in their Facebook and Instagram feeds.
social media platforms and then those videos that
To drive in-store visits to individual stores, Ashley set
perform the best are selected. This is measured by using
up awareness, consideration and conversion campaigns
BlitzMetrics’ Standards of Excellence. A set of criteria
to drive store visits for each individual store.
for each part of the funnel benchmark performance.
Each campaign (awareness campaign, consideration
campaign and conversion campaign) includes various ad ●● Relevance score: This will be based on quality ranking,
sets (a group of ads, eg the three ads already shown in the engagement ranking and conversion ranking. This
conversion campaign that share the same targeting data, uses similar logic to Google’s Quality Score for ads.
daily or lifetime budget, schedule, bid type and bid info). Higher relevance = lower cost of advertising. NB
As an example, for the awareness campaigns the ad Relevance score is about to be replaced by a new
sets would primarily be made up of cold audiences: metric similar to Google’s Quality Score.
●● 1 per cent lookalike audiences of existing store
Cheapest delivery (Facebook tells you how much
purchasers;
each ad is)
●● saved audiences made up of interest targeting and
narrowed by geography. Before you pay for the ad, Facebook will give you an
estimate. Like an actual auction when you’re trying to buy
 368 Part Two | Communications Tools

something, you can name your price and ‘bid’ on an item. Dashboard 1 (Figure 12.13) shows Ashley Home
Over time, the targets segment by audience, product and Store’s current ROAS is surpassing the target 20 x ROAS.
copy to optimize further efforts. The ‘standards of excellence’ This means that for every $1 put into a campaign, they
determine the success rate of articles, posts and videos. are now receiving an average sales return of
$29.49 instead of just the target return of $20 for every
Control (results) dollar spent.
Observe the targeting approach of different markets
Note the difference between CPC $1.50 and website visits for each store location in Figure 12.13.
$3.50 in Figure 12.12. This is because sometimes people Each campaign breaks down into the level of the
click by accident, so they close the browser and don’t funnel in which the ad belongs (Figure 12.14). In the
become a website visitor. Also, they may close the left-hand columns, numbers 1, 2 and 3 indicate the funnel
browser if the page speed loads too slowly. That’s why the stage of the ad – 1 for awareness, 2 for engagement, 3 for
cost per web visit is higher than the cost per click. At the conversion, which makes it easy to note funnel position
conversion level it’s critical that the page load speed is when reviewing performance.
optimized so customers get a good CX, as no one waits 20
seconds for a page to load.

F I G U R E 12.12 Cost per engagement

SOURCE: Used with kind permission from BlitzMetrics

F I G U R E 12 .13 Dashboard 1

369
 370
F I G U R E 12 .14 Dashboard 2
 12 | Advertising 371

Awareness results

F I G U R E 12.15 Dashboard 3a

Spent: $2,675.96 Spent: $3,165.30 Spent: $1,571.82

Impressions: 890,989 Impressions: 1,045,908 Impressions: 509,599
3-sec video views: 115,519 3-sec video views: 130,477 3-sec video views: 65,525
Cost per 3-sec vv: $0.02 Cost per 3-sec vv: $0.02 Cost per 3-sec vv: $0.02
10-sec video views: 32,862 10-sec video views: 27,284 10-sec video views: 13,648
Reach: 389,840 Reach: 414,025 Reach: 279,848
Offline purchases: 54 Offline purchases: 41 Offline purchases: 30
Purchases value: $91,053.25 Purchases value: $60,102.89 Purchases value: $45,464.86
ROAS: 34.46x ROAS: 20.01x ROAS: 29.64x
 372 Part Two | Communications Tools

Consideration results

F I G U R E 12.16 Dashboard 3b

Spend: $2,431.69 Spend: $$1,410.96 Spend: $1,335.22

Post engagements: 818 Post engagements: 648 Post engagements: 801
Post reactions: 190 Post reactions: 204 Post reactions: 63
Reach: 62,647 Reach: 89,767 Reach: 83,996
Offline purchase: 33 Offline purchase: 29 Offline purchase: 27
Offline purchase Offline purchase Offline purchase
revenue: $50,920.43 revenue: $37,807.98 revenue: $49,892.66
ROAS: 22.96X ROAS: 29.50x ROAS: 37.96X
 12 | Advertising 373

Conversion results

F I G U R E 12.17 Dashboard 3c

Spent: $2,822.18 Spent: $1,366.50 Spent: $4,289.72

Offline purchases: 84 Offline purchases: 27 Offline purchases: 68
Offline purchase Offline purchase Offline purchase
revenue: $131,101.11 revenue: $53,311.47 revenue: $92,978.78
Reach: 79,025 Reach: 43,301 Reach: 110,737
ROAS: 48.78X ROAS: 39.82X ROAS: 24.99x
 374
F I G U R E 1 2 .18 Dashboard 4
 12 | Advertising 375

The second row in dashboard 4 (Figure 12.18) shows Summary and conclusion
the conversion campaign named ‘3_store_visitrs_
With the right sequenced content advertising strategy, Q1
orchard_park’ reached 49,211 people, who saw any of
2019 results showed ROAS 29.49, which means a total ad
the conversion ads in their stream on average, 9.7 times
spend of $124,203 delivered $3,662,751 sales (dashboard
(calculated by dividing 476,793 ad impressions by the
4). Some of the individual ROAS were as high as 49x
number of viewers reached 49,211). This generated 1,277
(dashboard 3c).
store visits from people living in the Orchard Park area
‘By following BlitzMetrics’ social amplification engine,
and who saw the stage 3 video.
we were able to drastically reduce our out-of-pocket
The ‘Store Visit Orchard Park’ video ad cost (‘amount
marketing dollars while simultaneously enjoying
spent’ column 7) $3,712.11 and generated 1,277 visits at a
exponential growth in metrics that mattered,’ said Ashley
cost per visit of $2.91 (column 6).
HomeStore’s Michael Melaro. ‘Proving return on our
investment has been easy, as we now see digital marketing
Budget
through an intelligent funnel process, quantifying a winning
Budget figures were unavailable at the time of publishing. ROAS and cost-per-store-visit. Partnering with BlitzMetrics
has been one of our best decisions ever!’

C A S E S T U DY PPC ads boost ROI: Cover My Cab

The situation but your audience may well still be searching for your
services. You might even find that you’re missing out on
Cover My Cab has more than 30 years’ experience
peak search activity by capping budgets.
providing specialist insurance products to taxi drivers,
fleet owners and taxi operators. The brand is part of J&M When optimizing a Google AdWords account it is always
Insurance, a ‘business-to-business’ insurance firm that worth seeing what impression share each of your
has served the taxi industry for longer than any other campaigns has. There are two types of impression shares:
specialist broker. ●● Impression share lost to budget. This is the percentage
ClickThrough Marketing began working with Cover My of time your ads weren’t shown on Google due to
Cab in April helping to manage and optimize its PPC insufficient budget.
campaigns.
●● Impression share lost to rank. The percentage of time
your ads weren’t shown on Google due to a low
The challenge position in the AdWords auction.
After four months working on Cover My Cab’s paid search ClickThrough used their proprietary forecasting tool to
campaigns, results were good. However, ClickThrough perform a deep-dive analysis of Cover My Cab’s AdWords
suspected more gains could be made by opening the account.
monthly budget caps (ie removing the daily cap or monthly The tool showed that the account had around 5 per
budget) and opting, instead, for an ‘always on’ PPC cent impression share lost to budget in August. It
strategy, to get 24/7 visibility (since users search 24/7). forecasted that if budget caps were removed so there
Ian Boyden, Paid Search Manager, says: were no impressions lost to budget, Cover My Cab could
The risk with capping your spend is that you could ‘go have spent approximately 11 per cent more and seen
dark’ too early in the day. In other words, your ads stop conversions increase by 11 per cent also. This analytic
appearing because you’ve spent your allocated budget, forecasting tool suggested that by switching to ‘always
 376 Part Two | Communications Tools

TA B L E 12.1 Analysis of Cover My Cab’s AdWords account

Performance with
Current Open Caps (0% Imp
Metric Performance Share Lost to Budget) Delta Change % Change

Imp. 200,000 210,000 10,000 5.00%

Clicks 16,000 16,800 800 5.00%

CTR 8.00% 8.00% 0.00% 0.00%

Conv. 1,000.00 1,110.00 110.00 11.00%

Cost £25,000.00 £27,650.00 £2,650.00 10.60%

Cost/Conv. £25.00 £24.91 –£0.09 –0.36%

Cost. Rate 6.25% 6.61% 0.36% 5.71%

Avg. CPC £1.56 £1.56 £0.00 0.00%

SOURCE: ClickThrough Agency

NOTE: Forecasted results by changing from a budget cap to ‘always on’ campaign

on’ ClickThrough could generate (or deliver) an extra This might sound like a simple thing, but many clients we
10,000 impressions, which could generate an extra 800 take on have a limited budget and are worried about
visitors of whom 110 will convert, reducing the cost per overspending. Ian created this tactical tool to show
conversion from £25 to £24.91. clients in a clear and simple way how they could improve
their number of leads, and still remain within their
Objectives cost-per-lead target without the risk of wasting budget.

To reduce conversion costs below £25 and boost sales/ ClickThrough presented the findings to Cover My Cab,
conversions beyond previous months’ (exact numbers are who agreed to trial this new approach and raise the
not available). budget for the next month.

Strategy Actions

Remove the budget cap and become ‘always on’. Because Removing the budget cap and becoming ‘always on’ was
the spend increase meant increasing the daily budget caps easy to execute. In fact it was set up in minutes, with no
rather than pushing the position of the keywords up through additional bid management or optimization. No additional
the maximum cost per click they were willing to pay, Cover costs or time were required.
My Cab would not pay any more per click – as they would if
they were jostling for higher positions. The tool showed The results (control)
simply and effectively how gains could be made by raising In September, Cover My Cab spent 24 per cent more on
budget to allow the client to be visible 24 hours a day. clicks, and saw:

Tactics ●● the number of conversions increase by 25 per cent;

●● the number of clicks increase by 23 per cent;
ClickThrough’s Paid Search Executive Dave Earnshaw said:
●● cost per conversion decrease to £24.72.
 12 | Advertising 377

TA B L E 12.2  Actual results after starting ‘always on’

Month August September Difference
Imp. 200,000 250,000 25.00%
Clicks 16,000 19,680 23.00%
CTR 8.00% 7.87% –1.60%
Conv. 1,000.00 1.254.00 25.40%
Cost £25,000.00 £31,000.00 24.00%
Cost/Conv. £25.00 £24.72 –1.12%
Conv. Rate 6.25% 6.37% 1.95%
Avg. Pos 3.49 3.00 –14.15%
Avg. CPC £1.56 £1.58 0.81%

Cover My Cab were very pleased with the results and restricting additional volume of traffic and
have since decided to be ‘always on’ (although they conversions. We recommend an ‘always on’ strategy
monitor it closely). Meanwhile, ClickThrough’s Ian with PPC, and if you find your account is spending
Boyden says: too much then you should reduce CPCs until you see
spend hit your target.
The next time you see impressions lost to budget, we
recommend opening up the budget as you may be

C A S E S T U DY Location-based ads: Managing a campaign

When managing a LBA campaign, it is probably easiest for Location-based target markets, publishers, advertisers
most marketers to use expert companies in the field, eg
If you, a consumer, are browsing via your mobile (or
use a data-driven programmatic, ad-buying solutions
tablet) and you click onto the sports page of the Guardian
company, like Blis (who are advanced location data tech
newspaper online, a ping (it’s called a bid impression/bid
experts). To work with these kinds of solutions companies,
stream) is sent from the publisher (the Guardian) to an
marketers must understand:
online ad network. This effectively announces ‘a viewer is
●● location-based target markets, publishers, advertisers; looking at the sports page on the Guardian’ and invites
●● demand-side platform (DSP) exchanges, supply-side bids (in real time, ie right now) from advertisers (or their
partners (SSPs) and advertisers; agencies) to serve an ad to this consumer (say car
intenders/buyers). Marketers can see what the viewer is
●● layered data, additional insights and programmatic ad
looking at, at that time, via the bid impression (if they work
buying solutions;
with the right supply-side partners). They can also
●● data flows, bids and ads; cross-reference that device ID into their own database
●● unique identifiers; and see what that person generally looks at/has looked at
●● tracking visitors. in the past and where they usually go location-wise.
 378 Part Two | Communications Tools

Demand-side platform previously Blis were only targeting, say, 1,000 mortgage
customers.
The advertisers gain access to buying this impression and
They can identify the number of people in a postcode
then have an ad served via a DSP, which is offered by
who have recently had ‘mortgages in principle’ enquiries
providers like Blis.
made on their credit file; in other words, people who have
applied for mortgages already. Blis could start to look at
Supply-side partner other people that they haven’t yet targeted, in addition to
Site owners and app owners are called publishers, since that original target group. Blis would then delve into their
they publish the site or the app that can host ads. Some own database to look at browsing histories of other
sites (like newspapers or news stations) offer their ad space devices in that area. The target audience might grow from
inventory to advertisers as their main source of revenue. So 1,000 to 3,000 based on the Experian data.
these ad exchanges are serious business. To participate in Experian basically deliver insights into the target
the ad network, the publishers sign up as an SSP. market. They can provide information on ABC1s in a
particular area. Some of that information might include a
postcode, in which case Blis can start looking at residential
Advertisers
IP addresses on that postcode. And then they can start
Brands seek to get in front of their prospective customers seeing devices that are attached to that IP address. And
(and even their existing customers and sometimes their then they can start to see the devices when they are
competitors’ customers), ideally when that customer is leaving the home. This is just another way of developing
either already aware of the brand and/or is moving behavioural location user IDs. Blis can get a residential IP
towards making a purchase. This is where location-based address once their potential customers connect via wifi.
marketing can deliver much more relevant ads to
customers by targeting only those customers whose Data flow, bids and ads
behaviour has already expressed an interest in the
product or service by either visiting a physical location (in Location-based marketers continually collect data. If your
the real offline world) and/or visiting a website or app apps or your social media platforms are ‘location
online. Brand advertisers access the DSP, while SSPs are enabled’, your device location can be detected via the
the publishers (websites and/or apps) that provide data information passed back to the exchange from the
and the ad space (or ad inventory). publisher (the website) and sometimes via GPS. However,
exchanges/SSPs often ‘wrap up’ very basic estimated
location data into GPS lat/longs and try to sell it on. This is
Layered data and additional target market insights
where some specialist agencies clean and filter the data
Data companies like Experian can delve into their so that only precise data (lat/longs with five decimal
databases to reveal additional insights about target points of accuracy) gets used as the user passes
markets. No names are given. It is hashed anonymized locations such as football stadia, hotels and tube stations.
data. Experian can reveal if there are people in the This creates a footprint of where you have physically
postcode area that you have geo-fenced that have applied travelled in the real world over the last two months (if the
for a credit card. This data could be used to target a credit device ID is in a particular database and, if the device, at
card ad that may be useful to them to help them buy, say, that time, is using either apps or visiting websites that
a new baby buggy. subscribe to the SSP Ad Network).
Data-driven, programmatic, ad-buying solutions
companies like Blis help advertisers. They can ask Unique identifiers
Experian: ‘We are looking at these postal codes for people
interested in mortgages. Have you got any information on A unique identifier is added to each device IP. A brief
people looking for mortgages in that geographical area?’ history of where you physically went in the offline world
They might deliver aggregated anonymized data (not plus where you have visited online can be added to the
individual information) which gives an insight; for example unique identifier. This data can be used to infer your
they may reveal that there are approximately 8,000 people gender, age and interests; for example, if you visited
looking for mortgages in a particular area where Mothercare and young women’s fashion sites, it will infer
F I G U R E 12.19  Blis location demographics audience

FEED
CUSTOM LOCATION
TARGETING DEMOGRAPHICS
DATA AUDIENCE

FEED IMPRESSION
AVAILABLE

ISP BID REQUEST

DATA

FEED
DEFINE
DSP EXCHANGES PUBLISHERS AUDIENCE
/SSPs

ADVERTISER

BID RESPONSE
CAMPAIGN
REQUIREMENTS

WIN NOTIFICATION

SOURCE: Blis

379
 380 Part Two | Communications Tools

you are a young mother (or about to become a young define digital audiences, and then tightly targeted display
mother). But cross-referencing with other data could ads can be served (via real-time bidding) to users across
actually reveal that this particular user is actually a young mobile, tablet and laptop.
father so the ads served would be different. Agencies can So they can serve timely geo-location offers to
also layer additional data, for example from Experian or individuals in a retailer or in a supermarket. For example,
the DVLA databases. McDonald’s can target people within five metres of a
If a user is logged onto a BMW wifi point in a location. They can also then link the device footprint
dealership, they may be in the research mode or actual (where else the device owner physically walked, eg to
purchase stage. Their level of interest can be identified Ladbrokes to place a bet and took a bus home). They can
from their click behaviour (or digital body language). also layer on additional data.
Location and demographic data can be combined to

for example. This piece of information gives the

Advertising is now as much about bidder location and content behavioural data so
Maths Men as Mad Men they can decide on the amount of their bid.
Blis uses the same device ID that the phone soft-
‘Advertising is now as much about Maths Men as ware creates when you turn it on to create a track-
Mad Men’ says WPP ad supremo Sir Martin Sorrell. ing device ID, as the identifier (or tag) it uses to
(Note: Mad Men is an AMC television series about store that device profile in their database. Mobile
advertising agencies in the 1950s.) web cookies are what the publisher drops into the
You can see why ad agencies employ device browser to understand what kind of content
mathematicians (many of whom previously worked they are using. Device IDs are not passed through
in the City developing algorithms to optimize the the exchanges when the user is on mobile web –
buying and selling of stocks and shares in real only when they are using apps. The mobile web
time). Their USP is the way they crunch the data, cookies last for a month and then delete themselves.
which is gathered from various partners such as
wifi networks, supply-side platforms and so on.
Visitor tracking
If you are (a) using public wifi, (b) using an app, or
Unique device identifier (c) browsing a website, after asking your permis-
sion, each device lodges a bit of code or a user ID
Each smart phone has a unique device identifier (websites call them cookies) invisibly onto the user’s
(UDID), which is a sequence of 40 letters and num- browser (or app). The device ID is sometimes also
bers that is specific to each device and looks like this: called a user ID and is used as a unique identifier,
2b6f0cc904d137be2e1730235f5664094b831186. which allows marketers to create groups of devices/
This unique device address/identifier is created by users (or segments) so that they can, for example,
the manufacturer. When you turn on the device the compare different groups’ behaviour after exposure
software creates a device ID or IDFA (identity for to an advertising campaign. Device manufacturers
advertising) so publishers can recognize devices like Apple or Samsung/Android/Google have spe-
when they connect. cific device IDs but only they can see those on the
About 16–24 pieces of information are attached network and they are used for their own mobile ad-
in the ‘bid stream’ (which is a bid request announc- vertising and app store purposes. Note: cookies are
ing that an ad impression is available for auction) for desktops. Mobiles use the term ‘user IDs’.
from the publisher, via the exchange. Information Here are three micro-case examples of location-
within the bid request includes minimum price based ads for Mini, Gillette and Thomson Holidays,
CPM, lat/long data and gender and the device ID, followed by some mini-case examples of advertising.
 12 | Advertising 381

C A S E S T U DY Behavioural mapping: Mini Countryman car (micro-case)

Mini used behavioural mapping to raise awareness and ●● Average daily impressions: 160,843.
engagement (brochure downloads and boosting the ●● Mini Paceman ads delivered greater volume
number of test drives) for two new models, the Mini impressions (63 per cent) but Countryman ads delivered
Countryman and the Mini Paceman. better CTR (0.60 per cent).
Through behaviour mapping and/or IP location, Mini
●● iOS out-performed Android on device OS CTR: 0.97 per
served ads in real time to ABC1 device owners who were
cent vs 0.75 per cent.
visiting: 4/5 star hotels; Michelin-starred restaurants;
business-class lounges in airports; or who were in proximity ●● CTR peaked at mid-morning (10:00), mid-afternoon
to a Mini dealership, or in a competitor dealership. It took (14:00) and immediately after work (17:00) – break
two days to set this up. The £20,000 campaign ran for five periods and commuting times.
weeks and delivered the following results: ●● CPM (or cost per thousand – CPT) was between
●● Average campaign click-through rate (CTR): 0.55 per £5 and £8.
cent (industry benchmark CTR 0.5 per cent).

F I G U R E 12.20 Selection of Mini ads

SOURCE: Blis
 382 Part Two | Communications Tools

C A S E S T U DY LBA rich media ads using weather data: Gillette (micro-case)

Blis were asked by Gillette to deliver rich media ads F I G U R E 1 2 . 2 1  Gillette ad with dynamic
incorporating dynamic weather information to identify female
weather information
mobile users in the designated age range across the UK.
The immediate results showed an uplift of more than
10 per cent who identified Gillette Venus as a trusted
brand and an 11 per cent-plus uplift in those who thought
it was a brand for people like them.

SOURCE: Blis

C A S E S T U DY LBA remarketing ads and OOH billboards: Thomson Holidays (micro-case)

Blis were asked by Thomson Holidays to increase footfall related to an ad) they helped Thomson combine remarketing
(traffic into their stores). Using Path (a retargeting solution) and OOH (out of home) billboards. By comparing a control
and footfall attribution (measures footfall in a location group against a group served with the ads they tracked path
 12 | Advertising 383

F I G U R E 12.22 Thomson remarketing ad

SOURCE: Blis

activity through to store footfall up to seven days later. site or app users, 135 per cent uplift; Thomson store
They delivered an increase in store footfall. Ads visitors, 138 per cent uplift.
served in OOH sites: 121 per cent uplift; previous travel This subsequently helped to reallocate budget more
efficiently.

C A S E S T U DY Viral TV ad reduces road deaths: DOE

The situation Although ‘speeding’ is understood to be dangerous,

there is a gap between the reality of what speeding is and
Since 2000, speeding in Northern Ireland has killed the
how drivers interpret their own behaviour:
equivalent of a classroom of children. Every increase in
speed increases the risk of death. Research shows that ●● Drivers perceive that they engage in safe speeding.
just a 5 per cent increase in average speed increases the ●● They go over the limit but are in ‘full control’.
risk of serious injuries by over 15 per cent and road deaths ●● Seen as different to the type of speeding that results in
by over 20 per cent. serious collisions. They choose their speed not by
 384 Part Two | Communications Tools

what the law dictates, but by their own feeling of Strategy (message strategy)
safety, how in control they feel.
●● To propel speeding to the forefront of the public’s
●● They go over the limit particularly on rural roads/
mental agenda by disrupting and challenging false
motorways.
perceptions through deep emotional engagement of
●● Feeling that in 30mph zones there is a reason for the road users as to the truly horrifying consequences of
limit, but on faster roads this reason is lacking. speeding.
●● Much more likely to stick to speed limits in urban ●● Targeting drivers responsible for speed-related
areas. collisions in which a person is killed or seriously
Drivers underplay the consequences of speeding, injured: (a) males 17–24; (b) males 25–34; (c) females
believing that they will not be as serious as people make 17–24.
out and that it will never happen to them anyway. ●● Media strategy: campaign in TV, cinema and digital.
Speeding is enjoyable and pleasurable, with many drivers
even showing the classic signs of addiction.
There is an increasing belief that speeding is acceptable, Tactics
almost normal, and that it is common to everyone. Create an intensely shocking 60-second ad and buy 1,200
TV ratings.
Objectives
To propel speeding to the forefront of the public’s mental Action
agenda and to reduce speeding and road deaths caused Focus groups were used to find what would motivate
by speeding. speeding drivers to slow down. During the intense

F I G U R E 12.23 DOE road safety classroom

 12 | Advertising 385

F I G U R E 12.24 An intensely shocking 60-second ad to promote road safety

research carried out by ad agency Lyle Bailie focus unexpected event or to state that any speed level would
groups revealed that ‘speeders’ feel it is their right to drive have the same effect. The strongly felt exception to this is
at whatever speed they want. They won’t change this for when a young (and therefore innocent) child is involved –
anything. ‘What about if you killed someone?’ No this the moderating influence of the child cannot be
would not stop them. ‘What about if you killed a child?’ A underestimated here.’ This was without exception across
resounding silence. A possible angle! The idea was born. all of the groups.
This research opened up a potential creative strategy. Children are powerless, and as drivers we feel a
How can we challenge these misperceived beliefs? responsibility for their safety. It is our human nature to
Drivers understand that travelling at speed means that protect children. The thought of hurting a child is
they are less able to react to unexpected events. universally horrifying and is the most powerful trigger for
However, they enjoy speed and believe that they are safe challenging misperceptions.
and in control when speeding. The natural response to
cognitive dissonance is to reduce it by changing one of Action (ad roll out)
the beliefs/behaviours. The problem is that rather than
The 60-second advertisement was first shown on a
reducing speed, drivers are instead using false
Tuesday night during a programme called Dentist, with no
rationalization, misattributing the consequences of speed
social media reaction. It was shown again at half time
to other factors. Individuals have become more
during an England vs Uruguay football game (19 June). It
sophisticated at rationalization and can now rationalize
immediately received 7,000 YouTube hits. By the next
factors that were previously disrupting.
morning there were 23,000 hits; and 53,000 by the end of
A deeply emotional approach is vital to disrupt this
the day. Four days later there had been 2.2 million views.
rationalization, to create a discomfort that can only be
Further results are shown here:
reduced by changing speeding behaviour. ‘The temptation
with unexpected events is to attribute blame to the
 386 Part Two | Communications Tools

●● ad shown Tues 17 June during Dentist – Control

no reaction;
The cost of a road death is £1.43 million (Oxford Economics,
●● played again at half time during England vs 2012). This figure is taken from the Department for Transport
Uruguay game 19 June, generated 7,000 Highways Economic Note No.1 (2005), and is made up of
YouTube views; lost output, human costs and medical and ambulance costs.
●● 20 June 11am 23,000 YouTube views; You can see the ad link in the online resource pack for
●● 20 June midnight 53,000 YouTube views; this book.
Note: Another road safety themed campaign from the
●● 24 June 2,200,000 YouTube views;
RSA (Road Safety Authority), which uses a virtual reality
●● 1 July 4,000,000 YouTube views. video experience, is discussed on p 531.

Advantages and growing brands) and now with clever campaigns

like Ashleys can move customers right through to
disadvantages of closing the sale. On a CPT basis it can be quite
­effective.
advertising
Here are some of the advantages and disadvantages Disadvantages
to consider when deciding whether to increase or
Message credibility is less than that of PR or social
reduce advertising as a communications tool.
media, as it is seen as ‘advertising trying to sell
something’, though credibility can be enhanced by
source credibility. Some media advertising, such as
Advantages TV ads, have a long lead time if changes are re-
Advertising informs, persuades and reminds. It is quired. Such advertising also requires relatively
great at getting messages out to large audiences large budgets for creating the ads. (Note that PPC
quickly. Unlike PR or social media, advertisers can ads can be small and flexible, and ads can be
control their own message (assuming it is within the changed within minutes). Advertising is less engag-
regulations). Today, there are media vehicles (maga- ing than social media or an interactive website, al-
zines and TV programmes) that target niche audi- though some ads now seek to change this, as they
ences. And, of course, PPC ads can now be tailored integrate with social media. It can be difficult to cut
to audiences with particular interests. Location- through the communications clutter; however, crea-
based advertising takes this a stage further. tive ads, personalized ads and timely personalized
Advertising is good for building awareness (and videos are coming to you very soon.

One final warning: The hidden Web damages advertising

Advertising must be: Cadwalladr who said, ‘Multiple crimes took place
during the referendum. And they took place on
Legal, decent, honest and truthful.
Facebook.’
Advertising Standards Authority (UK)
During her presentation, titled ‘Facebook’s Role in
The Brexit advertising campaign on Facebook is Brexit – and the Threat to Democracy’, she gives
explored in a 2019 TED Talk by Welsh journalist Carole examples highlighting just some of the various series
 12 | Advertising 387

of advertisements which ran throughout the campaign. this were ‘dark’ or hidden from the scrutiny of
One advertisement, containing disinformation (alleged regulators and the general public) – these are now
spreading of hate and fear), consists of a world map viewable on the government’s DCMS website (see
and poses the question ‘Turkey has a population of 76 references).
million. Turkey is joining the EU. Good idea???’ (view Ms Cadwalladr highlighted:
the advert at https://prsmith.org/blog/). Similar
●● illicit use of data (harvesting the profiles of people
advertisements focus on Macedonia, Albania,
from Facebook);
Montenegro and Serbia. The advertisements variously
show world maps with money flowing out of the UK, ●● illegal funding (illegal use of cash funding the ad
demonstrated with arrows, and people flowing in. This campaign and unknown funds source);
particular series alternatively calls out the population
●● disinformation (factually incorrect statements or
levels of these countries or compares factors such as
‘lies’ in the ads, eg Turkey’s 76 million people are
average annual wage. All prompt a yes/no answer or a
joining the EU. Turkey is not joining the EU).
call to action which appears as an ‘I agree’ button.
Another such advertisement by Leave.EU features The principles of the UK advertising regulators (see p
highlighted text reading ‘European Commission report 301) appear to have been broken. Advertisements
admits Turkish visa-free travel will “increase mobility must be legal, decent, honest and truthful. The Brexit
of criminals and terrorists” within the EU’ over a campaign breaches of these regulations not only
stylized image representing terrorism (view the advert damage the advertising, marketing and data
at https://prsmith.org/blog/). industries’ credibility but have also damaged
Ms Cadwalladr describes the difficulty she had in democracy, perhaps permanently.
trying to find evidence of the advertisements on See the 15-minute talk by PR Smith (2019)
Facebook, which fuelled her investigation. Her and her ‘Marketing gone wrong: Is the Dark Web worse than
colleagues’ findings were published in The Observer. subliminal seduction?’ at https://prsmith.org/
The UK Parliament forced Facebook to hand over blog/ or visit http://tedtalk.com/
the ads used in the Brexit campaign (which prior to

Key points from Chapter 12

●● Advertising is changing faster than all other ●● Creativity (in message and media planning) is
communications tools. required to break through the clutter.
●● Data-driven advertising uses a variety of new ●● Advertising needs to be integrated with social
targeting tools, including remarketing and media and other marcomms tools.
location-based advertising. ●● Advertising must be legal, decent, honest and
truthful.

‘Advertisements are now so numerous that they

are very negligently perused.’
Samuel Johnson published this
in issue 40 of his magazine The Idler,
on 20 January 1759
 388 Part Two | Communications Tools

References and further reading

Aaker, D and Myers, J (1987) Advertising Fanning, J (1997) Is the end of advertising really all
Management, 3rd edn, Prentice Hall International, that nigh? Irish Marketing Review, Marketing
Englewood Cliffs, NJ Institute, Ireland
Advertising Age (1999) The advertising century, 29 Fletcher, N (2018) Netflix buys LA billboards: What
March does it mean?
Belch, G and Belch, M (2001) Advertising and Hampp, A and Bryson York, E (2010) Singer’s
Promotion: An integrated marketing manager dishes on all those product-placement
communications perspective, 6th edn, McGraw- deals (and lack thereof) in the nine-minute video,
Hill, London Ad Age, 13 March
Benady, A (2014) The 20th World Cup: social media Hart, A and O’Connor, J (1990) The Practice of
strategies and brand war rooms, PR Week, 10 June Advertising, 3rd edn, Heinemann, London
Bradshaw, P (2010) Coke sees ‘phenomenal’ result Heine, C (2015) Daily Mail Invests $3 Million in
from Twitter ads, FT.com, 25 June Native Partner Taboola, Daily Mail, 4 June
Brannan, T (1998) A Practical Guide to Integrated Howell Henry Chaldecott Lury and Partners (HHCL)
Marketing Communications, Kogan Page, London (1997) Marketing at a Point of Change, HHCL,
Broadbent, S (1994) The Advertising Budget, Admap London
Publications, London Jones, H (2008) Gorilla tactics, Marketer, May
Cadwalladr, C (2019) Facebook’s role in Brexit — Kennedy, J (2009a) App-fab, Marketing Age,
and the threat to democracy, TED 2019 November
Caples, J (1932) Tested Advertising Methods, Harper Kennedy, J (2009b) A wave of optimism: Interview
Brothers with Eric Schmidt, Marketing Age, 3 (6),
Cowley, D (ed) (1989) How to Plan Advertising, November/December
Cassell in association with The Account Planning Kohler, E (2007) Hyperlocal is more about ads than
Group, London news, Technology Evangelist, 9 August
Dalton, J (2013) 24.1 million Tweets posted during Learmonth, M and Bryson York, E (2010) Facebook
Super Bowl XLVII, Media Matters, 5 February poised to take geo-networking mainstream, Ad
Daye, D and VanAuken, B (2008) Great Moments in Age, 10 May
Copywriting: Ogilvy and the Beggar, McKenna, R (1991) Marketing is everything,
BrandingStrategy.com, 17 January Harvard Business Review, January–February
DCMS (Department of Culture, Media and Sport Newberry, C (2019) The Facebook pixel: What it is
website) is a UK government website – search for and how to use it, Hootsuite, 14 January
‘Facebook Ads’ or https://beta.parliament.uk/ O’Neill, M (2010) Budweiser celebrates the World
search?q=facebook+ads (archived at https://perma. Cup with Bud House reality series, Social Times,
cc/33QF-L3VK) 14 June
Delo, C (2012) Microsoft Files Patent to Serve Ads Oxford Economics (2012) Economic payback of road
Based on Mood, Body Language, Ad Age Digital, safety advertising in Northern Ireland,
12 June commissioned by Lyle Bailie
Dempsey, S. (2018) Three lessons from P&G’s Parekh, R (2010) Why long-form ads are the wave of
frugality, Sunday Independent, 11 March the future, Advertising Age, 3 May
Douglas, T (1987) The Complete Guide to Patel, K (2010) Will growing crop of TV apps engage
Advertising, Pan Macmillan, London viewers, advertisers? Ad Age, 17 May
Dwek, R (1997) Who’s got the net by the eyeballs?, Percy, L, Rossiter, J R and Elliott, R (2002) Strategic
Revolution, October Advertising Management, Oxford University Press,
Ehrenberg, A (1974) Repetitive advertising and the Oxford
consumer, Journal of Advertising Research, 14 (2), Pulizzi, J (2014a) The ultimate guide to native
pp 25–34 advertising, LinkedIn Pulse, 7 January
eMarketer (2015) UK to achieve world first as half Pulizzi, J (2014b) Hey WSJ – content marketing is not
of media ad spend goes digital, eMarketer, 27 native advertising, Content Marketing Institute, 6
March November
 12 | Advertising 389

Ranger, S (2014a) Virgin Atlantic tests Apple’s Smith, PR (2015) The SOSTAC® Guide to writing
iBeacon at Heathrow, ZDNet, 1 May your perfect digital marketing plan [online]
Ranger, S (2014b) What is Apple iBeacon? Here’s http://prsmith.org/SOSTAC/ (archived at
what you need to know, ZDNet, 10 June https://perma.cc/MWF6-Y2TT)
Roberts, K (2010) Creativity, KRconnectblogspot. Smith, PR (2019) Marketing Gone Wrong: Is the dark
com, 21 January web worse than subliminal seduction? [online]
Roderick, L (2016) Why P&G is moving away from http://prsmith.org/blog/ (archived at https://perma.
targeted Facebook advertising, Marketing Week, cc/3XZ4-MTP5), 3 May
10 August Smith, PR, Berry, C and Pulford, A (2000) Strategic
Schmidt, E (2009) A wave of optimism, Marketing Marketing Communications, 2nd edn, Kogan
Age, 3 (6), November/December Page, London
Shields, R (2015) The case for big brands taking ad Sorrell, M (1996) Beans and pearls, D&AD
tech in-house, Exchange Wire, 6 May president’s lecture
Slaughter, S (2014) The success of native advertising Straz, M (2012) The remarkable rise of retargeting,
hinges on earning readers’ trust, AdWeek, 26 August Online Spin, Media Post, 22 October
Smith, PR (2014) Research-driven shock ad uses Weinreich, L (2001) 11 Steps to Brand Heaven,
magic formula and goes viral [online] http:// Kogan Page, London
prsmith.org/blog/ (archived at https://perma. Whatmough, D (2010) Facebook threat, PR Week, 19
cc/3XZ4-MTP5), 23 August March
Smith, PR (2015) The rise and fall of owned, earned
but not paid media [online] http://prsmith.org/blog/
(archived at https://perma.cc/3XZ4-MTP5), 27 June
 390 Part Two | Communications Tools

Further information
Advertising Standards Authority Limited (ASA) Institute of Practitioners in Advertising (IPA)
Castle House 44 Belgrave Square
37–45 Paul Street London SW1X 8QS
London EC2A 4LS Tel: +44 (0)20 7235 7020
Tel: +44 (0)20 7492 2222 www.ipa.co.uk
www.asa.org.uk
Ofcom
Committee of Advertising Practice (CAP) Riverside House
Castle House 2a Southwark Bridge Road
37–45 Paul Street London SE1 9HA
London EC2A 4LS Tel: +44 (0)300 123 3000
Tel: + 44 (0)20 7492 2222 www.ofcom.org.uk
www.asa.org.uk

Incorporated Society of British Advertisers

(ISBA)
12 Henrietta Street
London WC2E 8LH
Tel: +44(0)20 7291 9020
www.isba.org.uk
 391

13
Publicity and public
relations
LEARNING OBJECTIVES
By the end of this chapter you will be able to:
●● understand how PR is changing and the expanding range of PR tools;
●● appreciate the potential for integration with social media and other marketing
communications tools;
●● plan an outline PR campaign knowing the advantages and disadvantages of
PR tools.

Introduction 392 Photography 402

What is PR? 392 Publicity stunts 402
Public relations and marketing 392 Viral marketing 404
Product PR and corporate PR 393 Influencer marketing 410
PR is more than communications 393
Corporate responsibility 394 Advantages and disadvantages of PR 412
The PR mix 396 No media cost 412
Higher credibility 413
New and old PR tools 396 Lack of control 413
Media relations and publicity 396 A summary of the advantages and disadvantages
News releases 397 of PR 424
Online newsroom 397
Press conferences and interviews 399 Key points from Chapter 13 425
Video news releases 399
Personalized videos 399
References and further reading 425
Content pools 399 Further information 426
Syndicated radio interviews and down-the-line
interviews 400
 392 Part Two | Communications Tools

(the ‘trade’) and the competition, public relations is

Introduction concerned with many more publics. Add in the
emergence of globalism (eg websites are viewed
Positive publicity nurtures good relationships with around the world), increased media interest (includ-
the media (media relations). This is only one of the ing social media) in business, new investor criteria
responsibilities of public relations, as it deals with a (eg ethical policies), more effective pressure groups,
range of different ‘publics’ or stakeholders. Public ­
information-hungry customers and the constant
relations integrates with public affairs, corporate search for cost-effective communications tools, and
affairs, community affairs, community relations, you can soon see why PR has grown in importance.
corporate relations and corporate communications. The new understanding of the power of PR is dem-
The first part of this chapter explores what exactly onstrated when business analysts suggest that both
PR is and where it fits with marketing; then it exam- management and trade unions, before embarking on
ines various PR tools and finally the advantages and a dispute, now ask: ‘How will this play in the media?’
disadvantages of PR over other marcomms tools. Some organizations insist on public relations,
The golden rule, ‘Develop credibility before raising advertising, direct mail people and sales promotion
visibility’, underpins this chapter. people sitting in together on various project meet-
ings so that they cross-fertilize ideas and create
­synergy through integrating the marketing commu-
What is PR? nications at an early stage.
Public relations is regularly, and sometimes worry-
ingly, referred to as ‘PR’, which is often confused
with ‘press releases’ or ‘press relations’. These are, The death of PR?
in fact, only a part of real public relations. A simple
definition of public relations is: ‘the development
of and maintenance of good relationships with dif- When the Editor in Chief of UK’s PR Week, Danny
ferent publics’. The publics are the range of differ- Rogers, announces ‘The death of PR agencies – as
ent groups on which an organization is dependent. we know them’, the PR industry has to listen to it.
These include employees, investors, suppliers, cus- ‘Advertising and PR are increasingly the same
tomers, distributors, legislators, regulators, govern- thing. PR was about editorial persuasion; selling
ments, pressure groups, the community, the media stories to journalists. And while the distinction
and even the competition. Most of these groups between bought media and earned media still
have different (sometimes conflicting) interests in
exists, you now find their executives working
any particular organization. The UK’s Institute of
across both. So now is the opportunity for those
Public Relations (IPR) uses the following public re-
with earned (media relations) and owned
lations definition: ‘the planned and sustained effort
(company websites, magazines or events)
to establish and maintain goodwill and mutual un-
derstanding between an organization and its pub- media skills to completely rebrand their
lics’. In 1978 in Mexico, the World Assembly of PR business. Alongside endeavours to reinvent
Associations agreed what is now known as the themselves according to today’s transforming
‘Mexican statement’: ‘PR practice is the art and media, they may finally need to cast off those
­science of analysing trends, predicting their conse- two deadly letters – P and R.’
quences, counselling organization leaders and Rogers (2014)
implementing planned programmes of action that
will serve both the organization’s and the public
interest.’
Who reports to whom? Is PR part of marketing or
marketing part of PR? Product publicity is part of
Public relations and marketing the marketing communications mix and therefore
While marketing traditionally focuses on markets or should be under the control of the marketing direc-
just three of the publics, ie customers, distributors tor or manager. Corporate PR, on the other hand,
often reports to the board or CEO directly. However,
 13 | Publicity and Public Relations 393

Martin Sorrell (2015) said: ‘PR can cast off its self- social media and optimized news releases (press re-
doubt, build its influence and take the lead on social leases optimized for key phrases and also designed
media, content-led campaigning and reputation... for easy sharing on social media). Today’s PR is
PR can place itself at the centre: data, social and often measured less by press coverage (press clip-
content present great opportunities.’ pings) and more by web traffic, registrations and
sales, sentiment and brand engagement.
The influence of public relations stretches far
Product PR and corporate PR beyond product marketing and into corporate strat-
The previous definitions give an indication of the egy, particularly where long-term decisions affect-
diverse nature and far-reaching effects of public re- ing choice of markets, products, factory locations,
lations. We need to separate product PR (product or production processes, etc are concerned. External
brand publicity) and corporate PR (corporate image groups are becoming more demanding, and organi-
enhancement). Product PR (sometimes called ‘mar- zations are beginning to have to demonstrate their
keting PR’) promotes a product or a brand and is social responsibility on a global basis. Ethics and
the responsibility of the marketing manager, while social responsibility have traditionally been the bas-
corporate PR promotes a company and is the re- tion of public relations. Today all managers need to
sponsibility of the corporate communications direc- develop their awareness and understanding of at
tor. A manager responsible for product PR would least the PR implications of both boardroom and
ultimately report to the marketing manager, whereas marketing decisions, strategies, policies and actions
a manager responsible for corporate PR would (or the lack of these).
probably report to a board director or the board
itself. Both types of PR do, however, integrate with
each other, as observed by Professor Jon White sev- Integrated reporting
eral decades ago, in How to Understand and
Manage Public Relations (1991):
‘There is a massive opportunity for corporate
public relations is a complement and a corrective communications in adopting “integrated
to the marketing approach... it creates an reporting”. The International Integrated
environment in which it is easier to market... Reporting Council (IIRC) has seen Coca-Cola,
public relations can raise questions which the
Microsoft and Sainsbury’s “jumping on board
marketing approach, with its focus on the market,
with the concept”, which is basically
products, distribution channels and customers, and
its orientation towards growth and consumption, intertwining non-financial reports (eg CSR
cannot. Public relations concerns are with the reports) with financial reports. Integrated
relations of one group to another, and with the reporting has been mandatory in South Africa
interplay of conflicting and competing interests in for some time.’
social relationships. Farey-Jones (2014)
Publicity objectives can vary from promoting a
product (product PR) to promoting a company
(corporate PR) among employees, unions, custom-
ers, investors, the community, local government,
PR is more than communications
etc. Marketing will tend to be sales or market share Publicity/visibility should not be raised before a
orientated, while public relations can, but will not solid platform of credibility has been developed
always, be sales or market share orientated; for ex- through decent, safe products, fully functional web-
ample a PR objective may be to recruit the best em- sites, friendly customer service, caring ethics and
ployees, to win permission to build a new factory or socially responsible policies. The PR mix is diverse
to influence government. Nevertheless, today’s PR and its effects are far-reaching. It is more than just
people, like any marketing professionals, have to be communications; it is part of the broader business
fully familiar with AI, Big Data, marketing automa- disciplines such as corporate planning, finance, per-
tion, webinars, podcasts, chatbots, influencer mar- sonnel, production and marketing. It cannot work
keting (including AI influencers – see more later), effectively unless it is integrated into these areas and
 394 Part Two | Communications Tools

unless it also links with product quality, customer reported that Sears Roebuck had hundreds of
care and design management (corporate identity). ­elderly protesters picketing its store as a result of a
These are the credibility elements that build a plat- decision to reduce pensioners’ life insurance bene-
form for subsequent publicity, which is just one of fits. Any amount of press releases, or even advertis-
the many visibility tools. ing, announcing Sears’ caring ethics would have a
negative effect until this basic credibility problem
was sorted out.
Corporate responsibility
Survey after survey reveals that the public feel that
industry and commerce don’t pay enough attention
to their corporate social responsibilities (CSR).
Shell in Nigeria
People feel that a company that supports the com-
munity is a good one to work for. People believe ‘The most significant landmark in the growth of
that companies have responsibilities towards their anti-corporate activism also came in 1995, when
employees and communities that go beyond making the world lost Ken Saro-Wiwa. The revered
profits. Today ethical issues are highlighted by new Nigerian writer and environmental leader was
pressure group techniques. imprisoned by his country’s oppressive regime
Although Naomi Klein’s challenging, and now for spearheading the Ogoni people’s campaign
almost cult-like book, No Logo (2000) was criti- against the devastating human and ecological
cized, she did highlight issues and the need for con- effects of Royal Dutch/Shell’s oil drilling in the
stant corporate social responsibility. Amnesty Niger Delta. Human rights groups rallied their
International, which defends the human rights of governments to interfere, and some economic
individuals, departed from its normal focus on pris- sanctions were imposed, but they had little
oners persecuted for either their religious or their effect. In November 1995, Saro-Wiwa and eight
political beliefs and, as Klein reported, ‘is also other Ogoni activists were executed by a
beginning to treat multinational corporations military government who had enriched
as major players in the denial of human rights
themselves with Shell’s oil money and through
worldwide’.
their own people’s repression.’
Klein (2000)

Nike

‘According to Campaign for Labor Rights, the Even companies with a great tradition of social re-
largest ever anti-Nike event so far took place on sponsibility and, ergo, high credibility, like Cadbury
October 18, 1997: 85 cities in 13 countries Schweppes, sometimes score PR own goals when
participated. Not all the protests have attracted mixing marketing and social responsibility without
large crowds, but since the movement is so carefully thinking through the implications. Some
decentralized, the sheer number of individual years ago it offered nearly £9 million worth of
anti-Nike events has left the company’s public sports equipment to UK schools if schoolchildren
relations department scrambling to get its spin bought lots of chocolate (millions of bars of choco-
onto dozens of local newscasts. Though you late had to be bought to get all the equipment). The
never know it from its branding ubiquity, even media quickly picked up on the negative spin asso-
Nike can’t be everywhere at once.’ ciated with the prospect of a teenager ‘needing to
Klein (2000) consume thousands of calories before being able to
play with a new basketball’. Using cause-related
marketing to boost sales and corporate image is
popular but needs, firstly, to be thought through
Corporate responsibility is not just an overseas re- carefully and, secondly, to be screened to ensure
sponsibility but starts in the corporations’ own that there is a clear and positive strategic fit between
back gardens. A few years ago, the Chicago Tribune the brand and the cause.
 13 | Publicity and Public Relations 395

more than ever before, need to engage in, and pro-

Shell trigger protests in Ireland vide evidence of, solid ethical policies.
Companies can take positive steps, such as being
Shell continue to be embroiled in controversy, by transparent and carrying out environmental impact
way of environmental protest when in 2010 an studies, talking to communities, addressing their
award-winning documentary called The Pipe issues and finding solutions. An Irish renewable
highlighted Shell’s attempt to pipe gas under fields energy company, Mainstream Renewable Power,
in Rossport, Co Mayo, Ireland. Five locals, ‘The has wind farms and solar parks across the world
Rossport Five’, were jailed, which caused a and they work closely with each community to
national outrage. The ShellToSea.com campaign ensure harmonious co-existence. Other companies
join the ‘per cent club’ and promise to donate 1 per
is an attempt to stop the proposed construction of a
cent (or half of 1 per cent) of profits to the local
raw natural gas pipeline through a parish, as locals
community. There are even 2 per cent and 5 per cent
feel this puts residents at risk.
clubs. Another way is by ensuring regular ethical
and/or environmental audits and, of course, taking
F I G U R E 13.1 ‘Shell to Sea mural’ appropriate action.

Imagine your funeral

‘I went on this training course (at Procter &

Gamble) where you had to imagine what the
minister might say about you at your funeral.
When I realized that mine would say I was the
leading expert on housewives’ toilet cleaning
products, I realized it was time for a change.’
Hamish Taylor, Managing Director, Eurostar
SOURCE: Courtesy of Lapsed Pacifist

It is not just about making good business sense.

Marketing, PR and corporate communications pro-
Good business is not just about achieving financial
fessionals are in the exciting position of being able
targets; it is also about behaving with a sense of re-
to help improve their local communities, support
sponsibility. Eighty-four per cent of the value of the
valid causes, improve the environment, and much
S&P 500 comes from intangible assets (Hargreaves,
more. The bottom line is that it makes long-term
2017), such as management, leadership, vision, in-
business sense to be ethical, as it creates a platform
novation, customer loyalty, product and service
of credibility that enriches all subsequent communi-
quality, intellectual property, brand equity and rep-
cations. As Bob Leaf of Burson Marsteller succinctly
utation. In September 2001 the US stock market
says in PR Smith’s award-winning PR film Actions
was worth an estimated $24 trillion; by summer
Speak Louder than Words (PRTV, 1991), ‘Ethics is
2002 it had collapsed to $11 trillion. The events of
good for business’.
9/11 and economic uncertainty had a significant im-
pact, but so too did the collapse of Enron and a
wave of other scandals that raised fundamental
questions over corporate governance. Cancel your Christmas party
At the time, the vast majority (84 per cent) of
Americans thought that the people who run their ‘As CEO of Electronic Data Systems, Mort
companies were trying to do what was best for them- Meyerson made an unpopular decision and
selves rather than the company (Accenture, 2004). cancelled the Christmas party when he realized it
Years later, following another major economic crisis was going to cost $360,000. Instead, he insisted,
and an environmental crisis, organizations now,
 396 Part Two | Communications Tools

“We’ll take the $360,000 and buy food and clothes were required to sign strict legally enforceable
and toys, and we’ll get our employees to take confidential agreements. Subtle hints that there
those things personally and deliver them to the weren’t enough copies of the book to go
inner city, to people who don’t have anything.” around... fake TV footage of heavily armed
The result was, initially, outrage that the party security vans delivering Potter books to online
was cancelled, then depression, then recognition book stores... Twenty advance copies were
that the company was doing something different “accidentally” sold by an unnamed Wal-Mart in
and then elation for those who actually took part deepest West Virginia and one of the “lucky
in the project. This project “made them more children” was miraculously tracked down by the
human... made them better employees... better world’s press and splashed across every front
family members... it did a whole bunch of things”. page worth its salt... Another copy
When Meyerson was CEO, he used to give 10 per “accidentally” found its way to the news desk of
cent of his time to community and philanthropic the Scottish Daily Record.’
projects.’ Brown (2001)
Colvin (2003)

There is no point waving a flag or raising an or-

The PR mix ganization’s visibility if it does not have a solid plat-
The ‘visibility’ or publicity-generating activities such form of credibility supporting it. The days when the
as news releases, news conferences, publicity stunts, two aspects were held separately are gone. Spending
conferences, events, exhibitions, sponsorship and thousands or millions of pounds on raising a profile
sales promotions can all integrate. Before we look at is not just wasteful but is actually damaging if a
publicity in more detail, it is worth mentioning again lack of credibility is exposed. So today, more than
that the key to long-term success is to develop cred- ever before, it is worth investing men/women,
ibility before raising visibility. Credibility is created money and minutes in getting the credibility right
by a proper product and/or quality of service. This before raising visibility. And credibility must also be
means that the product must match the promise evident on websites and social media, as journalists
made by the marketing communications, ie do not use these as their first port of call for gathering
sell a Rolls-Royce and deliver a Ford Ka. False ex- ­information.
pectations only lead to disappointment, frustration
and extremely high post-purchase dissonance. This
kills off any long-term repeat business. Good cus-
tomer service makes doing business a pleasurable New and old PR tools
experience for all parties. Having the right sort of
people or institutions associated by their using or Media relations and publicity
endorsing a product improves credibility. So too eth-
ics, social responsibility and corporate image all Take a look at the local and national newspapers,
contribute towards building a credible image. trade journals, radio programmes and television.
Spot the commercial news items or features that
have made news. Although they appear to be
­written by an editor or journalist, many of them
Harry Potter’s anti-marketing magic builds have been written by skilled PR professionals. Like
the PR hype advertising, editorial publicity can achieve many
­
similar communication goals, such as increasing
­
‘Review copies were withheld from interviews, awareness, repositioning a brand, generating
no author interviews were allowed, and foreign ­enquiries and boosting sales. Busy editors do not
translations were deferred for fear of have time to scout around for all the items they use.
injudicious leaks... printers and distributors They depend on a constant feed of professionally
presented news items and news releases from
­
 13 | Publicity and Public Relations 397

­rganizations. Despite this, sackfuls of press re-

o any algorithm Google – or a number of upstart
leases get thrown into editors’ bins continually. companies – can code. On the machine side, the
Many of them are badly written and inaccurately purest algorithmic news finder is Google News,
targeted (sometimes even addressed to people who which made waves in the media world when it
have long left the newspaper). debuted. With Google News, it’s code, and not a
Publicity can be generated through written press team of editors, that decides which stories make it
releases and feature articles for the press, video onto the front page.
news releases for television programmes, syndicated Figure 13.2 shows an excerpt from a Samsung news
radio recordings for radio programmes and digital release regarding Tim Peake’s Soyuz spacecraft tour
press packs for all and sundry. Publicity is also gen- landing in Belfast. Note the image is supplied with
erated by press conferences, press receptions, media the news release and access to more photos. A great
events (what the media less reverently call ‘stunts’) headline is used. Most of the key questions are an-
and public speaking at conferences, lectures, semi- swered in the first paragraph.
nars, dinners, chat shows, etc. A national PR and marketing campaign pro-
moted this national tour, with each site hosting
media previews and family launch events in addi-
News releases tion to promotion of the partnership (Samsung and
News by definition is new – a new idea, a new pro- the Science Museum Group) and the tour used a
cess, a new product, a new service or even a new use variety of channels including but not limited to:
of an old product. News should ‘defy expectations’ internal and external signage at the tour venue,
and provide a new way to understand the world we social media, website, press and online ads. Support
live in, so it has to be newsworthy. A news release from Tim Peake himself, both in person at events
should make it easy for a journalist (and a search and across traditional and social media, has helped
engine) to make news. All the key information raise the tour’s profile and Samsung has also worked
should be in the first paragraph for the journalist, with other inspirational female STEM ambassadors
and key phrases, if relevant, should be used in the such as Libby Jackson (UK Space Agency), Dr
title or headline and also in the opening paragraph Suzanne Imber (planetary scientist and winner of
(to optimize it for search engines). The press re- the BBC Two astronauts programme Do You Have
leases can then be distributed to the news wires, What It Takes?) to promote this unique tour. It has
top-ranking free publicity websites, news aggrega- become a massive success story – see the full case in
tors, relevant social news sites such as Digg, and Chapter 14, p 440).
relevant online and traditional media outlets. Press
release services like Pressbox, PRWeb, Free Press
Release and ClickPress can do it all in one go. Online newsroom
Ensure the organization’s web url is included and If building an online newsroom or media facility on
any other links to relevant sections of a website, as a website, make it easy to make news by consider-
not only does this help readers but it also acts as ing what journalists need when writing up a story:
inbound links, which boost search engine rankings.
As the proliferation of online news aggregators ●● news releases and press releases (easily
(eg Google News) increases, the debate continues as searchable and sortable by date, by topic and
to whether PR staff are writing news releases for by department);
people or machines – a human editor or a robot. ●● photos (linked to each news release, plus an
The reality is both. A select few organizations archive or library of high-, medium- and
bother to write different news releases for human low-resolution images);
editors and online aggregators. ●● video (can be linked to a new release if it is a
The debate rattles on with Ryan Singel’s (2006) launch event, a press conference, a speech, an
comments: interview, a product demonstration, vox
Standing up for the human intellect, upstart Digg pops or endorsements);
is betting that its formidable legion of users can ●● media kits to support news (all of the above
find better and more interesting news faster than in one downloadable file);
 398 Part Two | Communications Tools

F I G U R E 13.2 Tim Peake news release, Belfast tour

●● general corporate information (corporate its people and its media assets, so that journalists
background, corporate financials, get to know the organization and form a healthy
corporate statistics and executive team relationship.
information);
●● research and study data, white papers, links Embeddable digital press kit
and related resources (including blogs, which
journalists use increasingly);
Buena Vista International’s film Starship Troopers
●● awards and recognition; had an innovative ‘digital press kit’ available to
●● upcoming events; support its launch. The kit comprised a ready-made
●● contact information. mini-site packed with material related to the film. It
was designed in such a way that it could be
Note that all media assets, including videos, pho-
incorporated into other media sites. This made a
tos, news releases, white papers, etc, should be eas-
convenient package for media partners,
ily searchable, sortable and shareable. An effective
online newsroom invites visitors to go deeper into distributorships, agents and promoters to link the
the site for additional background information on mini-site to their own website.
the organization, its corporate social responsibility,
 13 | Publicity and Public Relations 399

Press conferences and interviews three to five minute ‘B’ roll, which is a selection of
loosely cut shots (‘rushes’) designed to be re-edited
Press conferences are an efficient way to release in- by the broadcasters into their own style, ie the
formation to a large number of journalists, news­ broadcasters use their own commentary, graphics
papers, blogs and radio and TV stations. They and captions so that as far as the viewers are con-
should include pre-prepared press packs and, ide- cerned the story has been originated by the broad-
ally, rehearsed Q&As (the likely questions and sen- caster. As with a press release, a VNR is paid for by
sible answers), although there is not always time to the brand that is looking for publicity. The TV sta-
prepare Q&As. tions receive VNRs free of charge. Again, as with
Key staff need to be trained for press interviews. press releases, there is no guarantee that the ma­
Avoid jargon, tell the truth and be topical, relevant terial will be used, since a bigger story can break at
and unusual if possible. A story that stirs up some any time. Equally, a VNR can be used negatively,
trouble can be attractive to an editor. However, some since, unlike advertising, there is no control over
caution is required to ensure the facts are 100 per the final message. These videos can also eventually
cent correct, as journalists will investigate rigorously be used on social media sites, websites and blogs as
and any inaccuracies will subsequently cause dam- well as form part of the press resources. Some or-
age. Finally, the human angle (human story) always ganizations, like Greenpeace, like to control how
appeals at an emotional level. Paint a picture with they are seen in the press and therefore produce
words; as Scott Chisholm (2010) says, ‘Imagine is the their own broadcast-quality videos.
most powerful word you can use in an interview.’

Personalized videos
Virtual press conference in Second Life A little-known new resource is ‘personalized videos’
at scale. For example, a trailer for a new film can be
For those international bloggers and journalists personalized and sent to micro-influencers. The per-
sonalized video will contain a comment that the in-
who could not physically attend the launch of
fluencer has made online about the film, plus the
Northern Ireland’s creative digital hub in Belfast’s
influencer’s name, photo and sometimes their han-
Science Park, a virtual press conference was held
dles (eg Twitter name).
the next day, with some 50 bloggers attending. The
Specialist video companies can scour the internet
Minister for Enterprise’s avatar and PR Smith’s
searching for people talking about hashtagged top-
avatar presented the hub and took questions for an ics or brands, or the name of a movie. They then
hour afterwards. This resulted in a buzz of collect the comment, photo and handle and embed
discussions on key international blogs, raised this into the first three seconds of the video. They
awareness, a new network of bloggers and a surge can filter the selection to only use comments from
of valuable inbound links. people with over 500 followers. They can also filter
out any comments that use obscene language, etc.
They can scale this up and collect, create and dis-
patch up to 150,000 personalized videos in two
Video news releases hours. The influencer receives a film trailer featuring
his/her comments. They then choose whether to
A video news release (VNR) is conceptually the delete or share it.
same as a written press release, except that it is pro- For much more detail see ‘Imagine you could do
duced on broadcast-quality digital video. A key this with video’ at https://prsmith.org/.
factor is that it must be newsworthy or highly rel-
evant as a feature item. VNRs also save broadcast-
ers from having to send their own busy camera Content pools
crews out to cover a story. The VNR consists of
two sections: a 30–90 second ‘A’ roll, which carries Some companies like Red Bull make it easy for the
a commentary designed to show the editor and/or media by providing well-organized cross-referenced
journalist how the story could run on air, and a (tagged) media resources. These include stories,
 400 Part Two | Communications Tools

F I G U R E 13.3 Personalized videos at scale sent to micro-influencers

v­ ideos, photos, album, cartoons and advanced search company, product or service. The audio file and
(which has 14 filters including length, location, subti- script are distributed (or syndicated) to radio sta-
tles and semantic values). tions. The same principles as apply to VNRs apply
The Red Bull Content Pool is the global B2B self- here, ie it should be newsworthy and not a blatant
service media and news platform for press, journal- plug. For just a few thousand pounds, a syndication
ists and business partners. It offers photos, videos supplier’s basic package usually includes:
and news about Red Bull events, partner events and
●● preliminary discussion;
athletes – all free and with all rights cleared for edi-
torial and news purposes. It includes global news, ●● interviewer – selecting, booking and briefing;
exclusive interviews, more than 300,000 high-­ ●● structuring the interview;
quality photos and over 22,000 HD videos, from ●● studio session (one hour);
thrilling sports to lifestyle, and from culture to
●● recording (three minutes);
ground-breaking photography.
Other Red Bull channels and media products ●● editing the master tape;
include: Red Bull TV; www.redbull.com; Red Bull ●● two spare copies for the client;
Illume; Red Bull Records; Red Bull Radio; Red ●● cue sheet preparation (written introduction
Bulleting; Red Bull Photography; Red Bull Media to the taped interview);
House; Red Bull Media House on Shutterstock; and
●● selecting 30 relevant radio stations (only one
Terra Mater Factual Studios. Terra Mater Factual
per area where stations overlap);
Studios is a subsidiary company of Red Bull and
specializes in factual production and distribution ●● monitoring – three to four weeks after
for cinema, TV and multimedia platforms. dispatch, a written report is produced, giving
details of which stations broadcast the
information, which is sometimes followed up
Syndicated radio interviews and with a more detailed report.
down-the-line interviews A 40 per cent take-up of a professionally produced,
newsworthy, accurately targeted syndicated radio
A syndicated radio interview is, on average, a three-
interview is considered to be an ‘average success
minute recorded interview about a person, event,
 13 | Publicity and Public Relations 401

F I G U R E 13.4 Red Bull’s Content Pool

F I G U R E 13.5 Red Bull’s Terra Mater Factual Studios in Vienna

 402 Part Two | Communications Tools

rate’. There is usually a range of optional extras (eg ●● No 10 Downing Street. Plan UK created this
localized cue sheets or overseas distribution). image to put pressure on the prime minister
Syndicated producers usually offer an alternative to help 72 million extra children into
service – ‘down-the-line interviews’. This is where primary school across the world. This was
the interviewee is brought into the studio, linked up part of an ongoing advocacy/PR campaign to
live to local radio stations one at a time, and inter- ensure the Government delivered on
viewed on a one-to-one basis. On average the inter- promises to fulfil the Millennium
viewee does about 10 separate interviews per day. Development Goals (MDG) at the MDG
Some interviewees have been known to do up to 15 summit in New York in September 2009.
separate interviews in one day. This is exhausting, ●● Projection on Parliament. ‘Don’t forget
and sometimes the later interviews are not as good, planes!’ – Friends of the Earth took its
as interviewees cannot remember if they have said successful campaign for aviation emissions to
something before or not. However, syndicated radio be included in the Climate Change Act to
interviews can be very cost effective ways of spread- Parliament and mobilized huge public and
ing a message. political support for action on climate
change, engaging a mainstream public
audience, as well as environmental activists
Photography and politicians.
A picture paints a thousand words. A cleverly ●● MPs support Friends of the Earth’s rainforest-
crafted photograph can catch a photo editor’s eye. free lunches for planet-friendly farming.
Some of the same criteria as for a news release Andrew George finds out that there’s no such
apply – is it newsworthy, is it different, does it tell a thing as a rainforest-free lunch if you’re eating
story, does it catch the reader’s eye and does it add meat or dairy. He’s one of 160 MPs who
value to the publication? If the photo has someone backed Friends of the Earth’s call for
famous in it, then it is even more valuable. Ideally government action to reduce the
photos can be stored in three file sizes: high, me- environmental impact of livestock farming.
dium and low resolution. They can be stored se- ●● Admiral Lord Nelson. The stunning skyline
curely for press, or distributors only. Social photo around Nelson’s Column certainly helped to
sites like Instagram.com can store the images, and grab attention of the picture editors of many
embed them on the company’s or individual’s blog media outlets, and consequently their
and as part of an electronic press kit. Again, tagging audiences, during England’s World Cup
makes the images searchable and sortable. Here is a 2018 bid.
list of some great publicity photos that generated
vast audiences (see Figures 13.7–13.12):
●● Jarvis Cocker’s blue beard for Oxfam was Publicity stunts
part of a series taken by Rankin to promote Publicity stunts are at much higher risk of error and
Oxfam’s ‘blue faces’ campaign, which was to ‘egg on the face’ than issuing a news release with a
raise awareness of the effects of climate photograph, since the media are invited to wait and
change on poor people around the world, watch.
and was carried out across the UK festival
season.
●● Dom Pedro and the 15 Second Film
Festival. Dom Pedro is the iconic character
Legendary publicity stunts
used by the 15 Second Film Festival to
promote the concept of 15 second movies. Pimm’s Cup punch-up (1949)
Each movie has a beginning, a middle
and an end, and Dom Pedro is the front ‘The most celebrated was by a New Yorker
man, deal maker and do-er who catches called Jim Moran, who once contrived a
the picture editor’s attention bar-room brawl between a fairly well-known
(www.15secondfilmfestival.com).
 13 | Publicity and Public Relations 403

Other stunts include:

band leader and a bystander. When the judge
asked what they were fighting about, the band ●● The Archaos fish diet: A classic ‘What the –?’
leader told him it was over the recipe for Pimms photo, this is a brilliant example of life
Cup. Pimms had hired Mr Moran because they mimicking art. Photographer Gavin Evans
were having trouble establishing the brand was sent to shoot a fish-throwing act. Stuck
name in the United States. The “brawl” received for a workable angle, Gavin stuffed a fish in
so much publicity that he solved the problem the performer’s mouth. Archaos
with a single blow.’ subsequently made the stunt the grand finale
Independent on Sunday, 1 April 1990 to its routine.
●● Friends of The Earth one-off gig with
Tightrope across the Thames (1997) Razorlight at the Science Museum:
Razorlight played a one-off gig at London’s
Didier Pasquette promoted Vanguard while walking Science Museum to back Friends of the
high above the River Thames on a tightrope, Earth’s call for aviation emissions to be
meeting Jade Kindar-Martin heading in the included in the forthcoming Climate Change
opposite direction. The two had to climb over each Act.
other midstream in the first-ever double tightrope ●● Fuel poverty stunt outside the Royal Courts
crossing of the Thames – a stunt that was of Justice: Friends of the Earth and Help the
publicized worldwide. Aged took the government to court over its
failure to tackle fuel poverty.
Banksy shreds his own painting (2018) ●● Mortascreen’s funeral procession:
Mortascreen has a consumer database of
Just moments after the painting Girl with a balloon
over 7 million deceased individuals, with
by the world’s most famous street artist, Banksy,
50,000 UK deaths being added each month.
was auctioned and sold for $1.4 million to an
Brands use the Mortascreen database to
unknown buyer at the world’s most famous
remove deceased people from their mailing
auctioneers, Sotheby’s in London, the painting
lists, firstly, so families are not upset in
self-destructed whilst still hanging on the wall, in bereavement with unwanted mail and,
front of an audience and captured on camera secondly, to improve the effectiveness of the
(Figure 13.6). The publicity spread and the story brands’ marketing campaigns. The PR
immediately went viral. According to Banksy’s own agency Eulogy set up a photo opportunity
video on his own Instagram account (www. using a traditional horse-drawn funeral
instagram.com/banksy), he had, some years procession, complete with four mourners,
earlier, installed a shredder into the frame of the walking across Westminster Bridge and
painting, so that it could shred itself if it was ever Parliament Square and finally coming to rest
auctioned. Ironically, some experts suggest the behind the London Eye. The funeral cortège
painting (or what’s left of it) has, since this contained a coffin filled with the amount of
shredding stunt, doubled in value. Perhaps this is direct mail Londoners receive in one day
the greatest publicity stunt of all time? Jennifer addressed to deceased loved ones. This
Calfas (2018) from Money.com suggests: ‘The publicity stunt achieved 90 pieces of
stunning and widely viewed moment was seen as a coverage across key national, broadcast,
pointed criticism of the lucrative art world from the trade and online media (within an hour it
daring artist.’ Banksy posted the video showing the was on YouTube and probably even more
installation of the shredder into the frame of the quickly on Twitter), delivering 35,000,000
painting, and his 5.7 million followers subsequently opportunities to see (OTS), with a publicity
value equivalent (PVE) of £578,000. On a
posted more than 95,000 comments. The video has
small budget of £8,500, this generated an
had almost 15 million views.
ROI of £68:£1 or 6,800 per cent. It also
generated £60,000 worth of licence sales,
which gave a sales-to-fee ratio of 7:1.
 404 Part Two | Communications Tools

F I G U R E 13.6 Banksy: Love is in the Bin, 2018

SOURCE: Screengrab, courtesy of Pest Control Office

A photograph’s unconscious Viral marketing

messages Viral marketing devices include videos clips, TV
With the accelerating rate of declining attention ads, cartoons, funny pictures, a short poem, a po-
spans, images become more important. Your or- litical or social message, or a news item, games or
ganization’s images send out many unconscious widgets, but they can also be a game, a photograph,
messages. It is worth checking your images match a graphic or just a piece of text, as long as it is en-
your company’s core objectives. Even head-and- lightening (informative), entertaining (shocking or
shoulder shots can send all sorts of messages, as funny), engaging (people must play or interact with
shown in the selection in Figure 13.14. Note that it) or simply so good that you just have to pass it on
although folded arms can suggest insecurity or to a friend or colleague. That is the acid test: is it
nervousness, if the subject can relax the shoulders worth looking at again, and is it deemed valuable if
it reduces the defensive impact and the person can it is passed on? Anything that enhances the value of
look quite confident. the sender (or person who passes it on) has viral
potential.
 13 | Publicity and Public Relations 405

F I G U R E 13.7 Jarvis Cocker’s blue beard

SOURCE: Rankin/Oxfam

F I G U R E 13.8 (Dom) Pedro El Magico, silent investor of the 15secondfilmfestival.com

 406 Part Two | Communications Tools

F I G U R E 13.9 The 10 Downing Street image for the MDG summit

SOURCE: Plan UK/Mark Read

F I G U R E 13.10 The ‘Don’t forget planes!’ campaign

SOURCE: Friends of the Earth

 13 | Publicity and Public Relations 407

F I G U R E 13.11 Andrew George supporting Friends of the Earth’s rainforest-free lunches

SOURCE: Warren Allot

F I G U R E 13.12 Admiral Lord Nelson supporting the London bid

SOURCE: On Edition
 408 Part Two | Communications Tools

F I G U R E 13.13 The Archaos fish diet

SOURCE: Gavin Evans

F I G U R E 13.14 Selection of head shots and the messages they send

(continued )
 13 | Publicity and Public Relations 409

F I G U R E 13.1 4 (Continued)

SOURCE: Grey Corporate

Viral criteria ●● Is it emotional (does it make you smile/

laugh/feel enraged/shocked/happy/sad/
The viral object has to be so amazing that it makes
sentimental)?
people want to pass it on. The best ones simply
make compulsive viewing. Here are some tough ●● Does it have the wow factor?
­criteria:
●● Is it good enough to make people pass Seeding
it on? Great creative material (‘the viral agent’) is simply
●● Is it on trend with whatever is trending? not enough. It needs to be seeded, branded and
●● Does it create a ‘shared experience’? (Eg measured. Seeding means identifying websites,
Father’s Day, St Patrick’s Day, Christmas blogs and influential people and sending them the
time – people want to share the experience, email, or posting the viral on their Facebook wall to
so suitable virals can be propelled by a start the virus spreading. Some agencies offer seed-
shared experience.) ing services, where they have databases of people
 410 Part Two | Communications Tools

who like virals and tend to pass them on. Other

The tour bus was brought to the House of
marketers tend to build their own lists of their
Commons, where Parliamentarians were
champions or brand advocates and influencers who
like to be the first to see a new idea and therefore encouraged to nominate a school in their local area
get credibility among their networks when they to receive a visit from the Samsung VR bus, thus
pass on useful virals. When it comes to branding engaging influencers (members of parliament).
your viral video, you have to be careful to ensure Samsung and the Science Museum Group also ran a
the branding actually works. This means clear nationwide prize draw for any primary or secondary
branding and a url, ideally not just at the beginning schools to enter for a chance to win a visit from the
and end where they can be cut out before being Space Descent Bus – thereby attracting more major
passed on. Although they cannot be controlled, vi- influencers (headmasters and senior school staff) to
rals should be measured as to what (a) brand aware- engage with the tour and hopefully spread the
ness and (b) traffic they generate and (c) what message. For more on this tour see p 440.
conversions come from this, as measured by ROI.
TV channel E4’s ‘Stack Da Police’ viral mixed
real video, animation, sound and gaming technol-
ogy to create a viral that promoted its new TV pro-
gramme. It generated 3.8 million unique visitors (to Creating human influencers:
the website) and a 14 per cent click-through rate Love Island
(CTR), which is about 0.5 million click-throughs. The programme sponsors deliberately use the dual
The cost per click (CPC) was 6p (approximately screening trend among millennials by integrating
£30,000 divided by 500,000). Kerb viral agency the app (which is the only way to vote people off
created and seeded it for £30,000. the show). The app also contains a summary video
of each day and opportunities to buy, in real time,
the clothes being worn by the contestants at that
Influencer marketing time directly from the show’s fashion/clothing
Seeding influencers is common practice today – sponsor, Missguided. Each carefully selected/­
whether you tag an influencer in your post, or send handpicked contestant immediately became an
your list of influencers an early notice or special influencer (once they appeared on TV) and was
­
preview before releasing information to the rest of therefore given a Missguided wardrobe, which in-
the market. Some influencers are paid to post com- cluded ­everything from swimsuits and pyjamas to
ments or wear certain brands. Influencers are the ‘going-out’ ­outfits. ‘It’s a classic bit of product
obliged to declare if they have been paid or given placement ­combined with influencer marketing. We
gifts or even loans of products. See Chapter 5 p 160 can ­expect to see a lot more TV influencer ­marke­ting
for more on influencer marketing. which abuses our love–hate relationships with
Subscriptions services like Gorkana help influ- our phones and the accompanying apps’ (Friend
encers/journalists to find the right PR people man- Bartlett, 2018).
aging specific brands, and Gorkana also helps PR
people to find the right influencer/journalist as they Creating AI influencers:
provide information to journalists about PRs (and
to PRs about journalists). Lils & Ugoto
As mentioned in Chapter 5, ‘Artificial influencers are
proving to be a success and therefore are attracting
the attention of brands’ (Kulp, 2018a). You will
Engaging Influencers: Tim Peake’s probably see more virtual models in your Instagram
Spacecraft Tour feed as AI (artificial intelligence) transforms influ-
encer marketing (Kulp, 2018b). See a full artificial
influencer post: ‘Artificial influencers use my magic
It is interesting to see how the Tim Peake’s
marketing formula (IRD)’ at https://prsmith.org
Spacecraft Tour engaged some influencers.
and also on p 352.
 13 | Publicity and Public Relations 411

Creating micro-influencers i­nfluencers outside their target audience to boost

sales enormously (their website crashed as a result of
Helping customers share the great experience they
the surge in traffic!) in Chapter 20, p 611.
have is often called the ‘shared experience’. How can
we help customers to share the pleasure and joy they
get from our products or services? One way is to Warning: Influencer fraud/fake followers
provide props or sometimes backdrops of beautiful
scenes. Sri Lanka Golf Tours encourage customers to
‘The Competition and Markets Authority (CMA)
take selfies in front of stunning images from the golf
launched an investigation to measure how
courses. The Tim Peake Soyuz spacecraft tour (see p
transparent influencers are actually being about
440 for more) displayed this iconic object accompa-
sponsored posts. It said there were “clear
nied by an immersive ‘Space Descent VR’ lounge
along with a Selfie spacesuit specially designed for examples of influencers not stating they have
visitors to share their experience. Encouraging selfies been paid to promote a product or service” –
encourages everyone to become an influencer. Some and a number of influencers have already fallen
are more influential than others. Shared images like foul of the Advertising Standards Authority
these ‘selfie astronaut’ images can be more powerful (ASA) for just this.’
than any form of advertising. Note: See also how Marketing Week Reporters (2018)
Zip World seeded stunning photographs with

F I G U R E 13.15  Shared images can be very powerful: the selfie spacesuit at the Science
Museum

SOURCE: © Science Museum Group 2019 – reproduced with kind permission

 412 Part Two | Communications Tools

F I G U R E 13.16 A fun way for visitors to share their experience

SOURCE: © Science Museum Group 2019 – reproduced with kind permission

‘The ASA and Committees of Advertising

Advantages and
Practice (CAP) launched a new set of principles disadvantages of PR
on advertising disclosure called The Influencer’s
Guide – which some argue still don’t go far As mentioned, editorial coverage can achieve many
enough – while ISBA unveiled an updated objectives similar to those of advertising, but there
version of influencer marketing contracts as it are three important points that differentiate edito-
looks to bring better “commercial discipline” to rial coverage from advertising:
the relationship between brands and
●● there is no media cost;
influencers.’
Marketing Week Reporters (2018)
●● the message has higher credibility;
●● there is no control over the message.

No media cost
See Chapter 10, p 302 for more on ASA and CAP.
Now let us look at any advantages and disadvan- There is no media cost since, with editorial coverage,
tages of increasing spending on PR. unlike advertising, the space is not bought. There
are, however, other costs, since news releases have to
 13 | Publicity and Public Relations 413

be written, carefully targeted and distributed to the c­ redibility factor, editorial coverage is risky because
right editor at the right time in the right format. This there is no control over the message. An editor can
can be done by an in-house press officer or public take a news release and criticize the sender for send-
relations department, or it can be handled by an ex- ing it. Advertisers, on the other hand, can control the
ternal public relations agent or consultancy. There message, since they buy the space and publish ex-
are news release distribution companies that special- actly what they want to say (within the law and ad-
ize in getting releases physically or electronically to vertising regulations). Despite this, editorial clippings
news editors’ desks at the right time. This kind of and their associated levels of credibility are often
editorial coverage creates valuable positive publicity, compiled and used as endorsements in direct mail-
as it has higher credibility than advertising copy. No shots, sales literature, advertisements and exhibition
space was bought, and therefore no media costs stands. You can even see them above theatres pro-
were incurred. However, whether it is in-house PR moting a show, where extracted comments from the
people or an external consultancy, it does cost some- press are highlighted in bright lights outside the front
one’s time and expertise to: door. The third-party editorial coverage adds credi-
bility to the claim that this is a good show. Equally, a
●● select the right target media (appropriate
reviewer can severely criticize a show and therefore
press and editors) at the right time;
damage the credibility (and viability) of that show.
●● write the news releases;
●● distribute the news releases;
●● handle any press enquiries. (There are, of Lack of control
course, other minor costs, some of which are The uncontrollable element of media relations is
hidden: photographs, stationery, stamps, demonstrated by the montage of press clippings (ed-
phone calls, and wear and tear of the word itorial coverage) generated by PR Smith’s ‘nuclear
processor, laser printer and so on.) missile’ news release (Figure 13.17). This shows how
Editorial coverage is used increasingly to stretch the the same news release gets totally different editorial
above-the-line advertising campaigns. Good press coverage from two different editors. On the one
officers push the knock-on PR potential of advertis- hand, The Wall Street Journal gives it brief but posi-
ing. Bruno Magli shoes enjoyed an uncontrolled tive front-page exposure, while Personnel Today
­estimated $100 million worth of free exposure dur- treats the same news release with a lot of cynicism
ing American football star O J Simpson’s trial. The and, arguably, negative editorial coverage, despite a
­calculation is simple: add up the column inches of lot more detail about the promotion. It can be ar-
coverage, times by the amount of broadcast ­coverage gued, in the case of PR Smith’s award-winning PR
and find the equivalent cost for the same amount of video, that ‘any publicity is good publicity’, but this
advertising space. There are more sophisticated is certainly not the case with Ratners, IBM and
methods of evaluation, which include: positive and McDonald’s. These examples demonstrate the dan-
negative comments; the position on the page; gers of uncontrolled publicity (see the next section).
whether a picture is shown; the number of times a Even carefully controlled media events such as an-
brand name is used, etc. Forte Hotels’ constant nual general meetings can go wrong (see the box
quantitative report on editorial coverage is outlined below). Every media event has an element of risk
in the box ‘Scoring your PR performance’, p 418. attached to it, since if things do go wrong the press
are waiting – with cameras perched and pens ready.

Higher credibility Fat cat pig

Editorial coverage has higher credibility than adver-
tising because it is perceived as being written by an ‘The production of a pig at the British Gas
editor or journalist and not by an advertiser trying to annual general meeting helped give the
sell something. There is arguably less resistance to bandwagon against “fat cats” (overpaid
the message. Some estimates suggest that a message directors) a memorable push.’
­carried in a piece of editorial has three times more Andrew Bolger, Financial Times
credibility than a similar message carried in an
­ (date unknown)
­advertisement. Despite the attraction of the ­message
 414 Part Two | Communications Tools

Uncontrollable publicity – any region, date, etc. There are other directories that list
editors’ names, addresses and numbers (again cat­
publicity is good publicity? egorized by type of magazine or programme).
The adage ‘any publicity is good publicity’ is not Editorial risk can be further reduced with the help
always true. Although the PR training video’s nega- of companies (such as Echo Research) that compile
tive editorial coverage mentioned in the previous lists of journalists who have written articles on a
section is, arguably, useful publicity, this is not al- particular organization or on its products, or on
ways the case. Retail jewellery giant Ratners discov- any particular issue, together with a favourable or
ered this when it fell foul of the power of negative unfavourable rating for each article. A further
publicity. Its chairman, Gerald Ratner, told the press analy­sis compares the incidence of solicited and un-
that his jewellery was ‘crap’. This gained national solicited press coverage, which can be cross-­
coverage, but it also kept customers away from his referenced with the ratings to identify any apparent
shops and lowered morale among his employees. bias in specific journalists’ relationships with or-
He relinquished his joint position of chairman and ganizations. When a journalist calls the press office,
managing director, and the Ratners shops have the staff can punch in a few keywords into a desk
since disappeared. On the other hand, unexpected terminal, and effectively see the profile of the caller
editorial coverage can sometimes help, as shoemak- on the screen almost instantaneously, even before
ers Bruno Magli observed when their sales jumped the preliminary greetings are completed. So the
50 per cent because of references to their shoes dur- pressurized PR manager is briefed automatically.
ing the trial of O J Simpson. Uncontrolled editorial Despite the best preparation and briefing, things
exposure, and particularly negative publicity, can still go wrong. In advertising, the organization gets
somersault out of control, as IBM discovered dur- a chance to approve the final copy (or wording), but
ing the 1996 Olympics when one of its official with editorial coverage deadlines are too tight even
Olympic computers started churning out incorrect for the friendliest of editors to allow the PR man-
information. ‘The press reported the story ad nau- ager sight of the copy and layout before it is pub-
seam, even blaming IBM for things it had nothing lished: hence a bad day for Mr Pimlott (p 416).
to do with. In the aftermath of the tragic bombing
in Centennial Park, for example, the Philadelphia
Inquirer erroneously reported that an IBM system
Controlled integration of publicity
may have contributed to security lapses’ (Fortune Publicity should be integrated with other elements
Magazine, 9 September 1996). How a company of the marketing communications mix. Chapter 1
handles the spotlight is a test for its company val- explained how many major advertising campaigns
ues. When 21 customers were shot dead in a are now supported by press launches and followed
McDonald’s restaurant in California in 1984, up with a press and publicity campaign to maintain
McDonald’s knocked the restaurant down within the visibility generated by the public relations
days and eventually donated the land to a local people. An integrated packaging, PR and sales
­
community college. Continued publicity and asso- ­promotion campaign maintains the brand’s share
ciation with such a tragedy are certainly not ‘good without any traditional above-the-line support. In
publicity’. More recently, BP’s negative publicity other cases, blown-up press cuttings can be used
threatens the very survival of this highly profitable (once permission is gained from the copyright own-
global success story. The negative coverage has been ers) at trade fairs and exhibitions. Third-party
exacerbated by extremely poor crisis management ­endorsements can be used in advertising, news re-
(see ‘Crisis management’ overleaf for more). leases, sales literature, packaging design, sales pro-
motion and so on. A single photographic shoot can
produce a range of material suitable for advertising,
Reducing the lack of control packaging, exhibitions, direct mail, press packs, etc.
Red faces can be avoided by checking to see if any Strategically, the marketing communications tools
events clash with a particular news release or event should all work together (consistent positioning)
(such as launching a new hamburger bar on a na- rather than pull in different directions. Ideally,
tional vegetarian day). There are directories availa- each activity should be planned for maximum
ble that list events and categorize them by type, ­integration.
 13 | Publicity and Public Relations 415

F I G U R E 13.17  PRTV news release: The same news release can generate totally different
types of editorial coverage, from positive coverage on the front page of
The Wall Street Journal to negative coverage in a training magazine
 416 Part Two | Communications Tools

legal people have approved it). Communicate to all

A bad day for Mr Edward Pimlott stakeholders. Avoid threatening legal action if
­possible. Legal options can be part of the solution,
‘Mr Pimlott’s letter to the Grantham Journal led but rarely all of it. Note that legal action takes time
to this apology: “In a letter printed in our July 25 (and money), and time is a very scarce resource
issue, Mr Pimlott apparently described himself ­during a crisis. Company spokespeople must tread
as ‘a pillock of the community’. This was our with c­aution. As Alex Wollfall (2010) points out,
error. Mr Pimlott described himself as a pillar of ‘After the global banking crisis and the politicians’
the community.”’ expenses scandal, public distrust of politicians,
Independent, 28 August 1997 ­company spokespeople and big brands is at an all-
time high.’
There is a process, which usually includes the
following steps.
Unforeseen opportunities and threats invariably 1 Survey the scale of it. Is it just a handful of
emerge that make it difficult to plan for everything. moaners or something more significant, and
For example, editorial is difficult to forecast. (Even have they good reason to moan?
if an editor promises to use a news release, it often
2 Don’t deny it. Acknowledge the issue if it is
gets ‘spiked’ or replaced by some other news item at
an issue. Be open and honest and give useful
the last moment; at other times the news release
information where possible. When the toy
gets used later than expected.) Successful positive
company Mattel faced a number of product
publicity can trigger all sorts of ideas for mailings,
recalls, the CEO tackled the issue head on
promotions and further press coverage. Crises and
with a video message that was posted on
negative publicity are equally difficult to forecast
Mattel’s corporate website, spread virally
and plan, although top companies invest in crisis
across the internet and appeared on some TV
management programmes before crises occur. This
news bulletins. Compare this to TV images
allows them to respond in the most effective man-
of queues of concerned customers trying to
ner. A well-handled crisis can actually leave an or-
withdraw their savings from a crippled
ganization in a stronger position, for example
Northern Rock for several days, while no
Johnson & Johnson’s excellent handling of the
one really knew what was happening and
1982 Tylenol poisoning crisis (when seven people
rumours spread uncontrollably.
died of poisoning from cyanide that had been in-
serted in their headache tablets) in Chicago. 3 Be genuinely concerned. It seems ridiculous
to spell this out, but a lack of sincerity will
be sniffed out by an angry press corps very
Crisis management quickly. Witness the BP CEO’s now infamous
Accidents happen, sometimes on a massive scale. comment ‘I would like my life back,’ which
Crisis management is standard procedure when a displayed a concern for his own personal
nightmare occurs. Top companies have crisis man- circumstances at a time when others’
agement procedures in place in case of a crisis – livelihoods were being destroyed by a
whether of their own or someone else’s making. Key massive environmental disaster.
speakers are agreed, with key messages about the 4 Be open with employees. Inform them as
company, and specific messages for a series of much as the press.
different disaster scenarios. These are reviewed
­
immediately if a crisis occurs. Media training in-
­ 5 Fix it so it is better than it was before the
cludes a questions-and-answers document (tackling crisis. Make sure processes are reviewed so
all the most frequently asked questions, including the that the accident can never happen again.
tricky ones). Key to it all is simply to be human and 6 Finally, repair or compensate for any damage
decent. Show concern. Visit the site or the customers. done or replace any faulty products.
Answer the questions. Pay for any damage (after the
 13 | Publicity and Public Relations 417

to the original article or source). Companies like

Yacht holiday while Atlantic burns Durrants supply their clients with press digests, re-
ports of where they are covered, how favourably
‘BP’s Gulf of Mexico crisis is a case study in and how often. Sentiment Analysis aggregates
how poor communications skills will only ­everything that is said about your brand online and
magnify a corporate crisis. Avoid any gives it a score each day, each week or each month.
photographs transmitting the wrong message. Companies like Social Mention, Radian6 and
Of course everyone needs some time off but to Kantar supply sentiment analysis to help managers
be snapped enjoying yourself on your yacht in monitor what is being said about their brands
blue seas – when just across the Atlantic a BP ­online.
Similar media monitoring services are available
field continues to spew oil into the ocean – is
for television, radio and the internet (scanning
tantamount to reputational suicide. It was just
newsgroups, online editions and search engines).
the latest mistake by Hayward, who, despite
The size of file, number of references, and quantity
correctly apologizing on 30 May, stupidly added:
of space or time devoted to a chosen product,
“I would like my life back,” demonstrating a lack
organization or issue are, again, a simple method of
of judgement... His performance in front of a measurement. More detailed analyses give a break-
Senate committee was evidence of this. While down of: front-page mentions; exclusive mentions;
one sympathizes with the pressure he was size of mention or cutting; number of beneficial
under, and the fears of his legal advisers, he credits; neutral credits; adverse credits; and oppor-
came across as overly defensive and tunities to enquire (includes reach of article, circula-
unemotional, playing into the hands of tion, and whether a contact address and/or phone
aggressive US journalists.’ number, enquiry card, coupon, etc was included).
Rogers (2010) Various formulae attempt to calculate the quality of
the coverage rather than the quantity. These can
include photographs or diagrams, position on the
page, etc.
It may be difficult to avoid financial losses, but crisis Online measurement includes the following:
management can, if handled properly, strengthen ●● ‘Reads’ measures how many times a news
relationships with all stakeholders. In this way it release has been read every day.
not only repairs damage but is an investment in the
future. It is worth remembering that good corporate ●● ‘Impressions’ measures how often a news
social responsibility gives a platform of credibility, release headline was displayed to how many
particularly during a time of crisis. people visiting PR websites and RSS feeds.
●● ‘Activities’ reveals who read the release, who
skimmed the headline and how many
Control – measuring media ‘shares’. Social media sharing is important,
relations and the number of times a release was shared
Free publicity, news coverage or editorial can be on Facebook, LinkedIn or Twitter can be
monitored, measured and analysed. The old ap- measured.
proach was just ‘column inches’ and TV minutes of ●● Keywords that were used to find the news
press coverage. Today, news releases are also meas- release.
ured by impressions, shares, reads, traffic and en-
●● Search engines that were used to find the
gagement. News clippings can be compiled in-house,
release can be reported on as well.
by an agency or by a specialist news clipping com-
pany that monitors, cuts out, pastes up and delivers All of these are hard facts, which could provide a
the clippings daily, weekly or however regularly the simple format for pay-by-performance.
client wants, or delivers the coverage stats online. These factually based reports will make it easier
Google Alert and Talkwalker can deliver a list of for more PR consultancies to accept pay-by-results
your brand’s mentions online each day (with a link from their clients. The PR industry has not fully
 418 Part Two | Communications Tools

embraced pay-by-results (probably because of the performance-related fees do encourage clients to set
large number of uncontrollable variables that affect very clearly defined, measurable objectives.
the results). In summary, PR punches above its weight. It can
Paul Miller, Strategic Planning Director at Porter be a very cost-effective communications tool that
Novelli Europe, has observed that ‘the PR business nurtures and strengthens relationships with key
is not the most sophisticated or advanced about stakeholders.
setting good objectives. But this is now being
­
­recognized as a weakness, and what we like about
performance-related fees is that they make clients Scoring your PR performance
really focus on what they want, so they are not
wishy-washy.’ Hill & Knowlton, a leading PR ‘When we have a story about a new hotel or
agency, launched the pre-school animation series product we identify five key messages we want
Engie Benjy using the TV stars Ant and Dec, and 30 to put across – it’s never more than five – and
per cent of its fee was contingent upon the pro- we’re lucky if we get two across in print. We
gramme achieving audience reach targets. then identify the key target audiences and the
These forms of analysis measure what gets into most appropriate publications to reach them.
the press; they do not measure what gets into the This establishes a matrix which ensures the
minds of the target audience, ie whether the editorial maximum efficiency for our efforts. All stories
has changed or reinforced the target audience’s atti- are then monitored on a scale of one to five,
tudes and intentions, voting patterns, shared values, according to how favourable they are and how
sales levels, etc. This has to be measured separately
many of the key messages are included.’
by researching attitudes and behaviour patterns.
Richard Power, Director of Corporate
Sales can be measured, but it can be difficult to iso-
Communications, Forte Hotels
late PR from other communications activities when
attempting to gauge the effect of any aspect of pub- This enables Power to give Rocco Forte and other
lic relations. Perhaps this is the reason for the appar- executive directors a quantified report on just how
ent resistance to payment-by-results. But, despite the well they are communicating.
difficulties of isolating and measuring PR’s results,

C A S E S T U DY The gnome story that went viral

F I G U R E 13.18  The start of the Situation

gnome going viral Kern, a precision scales manufacturer, needed to build its
brand, differentiate itself and grow market share within
the science and education sectors. However, with millions
of schools and laboratories around the world to reach,
Kern faced the challenge of a highly commoditized
marketplace and a disinterested media. Subsequent
audience analysis by Ogilvy PR (surveys, perceptions
audit and analysis of Kern’s historic sales data) revealed:
low brand recognition for laboratory grade balances; a
highly commoditized marketplace; no significant
discussion of measurement and accuracy outside of
specialist titles; and few independent views on quality,
SOURCE: Ogilvy PR reliability or precision. Recognizing that Kern’s targets
 13 | Publicity and Public Relations 419

represented a global audience, from school teachers to ●● go beyond traditional media, amplifying flagship
Nobel scientists, this extremely diverse group was coverage and developing engaging sharable content.
influenced by equally diverse sources, including friends,
peers and media. They are highly active online; Tactics
inquisitively seeking out, discussing and sharing
information they ‘discover’ from a host of influential and ●● Chip-proof gnome: Create a chip-proof garden gnome
specialist cross-media sources. (also called Kern), providing the campaign with a
universally appealing personality. Gnomes are famed
Objectives for their love of travelling and originate from Bavaria,
where Kern scales are manufactured.
Ogilvy PR London and OgilvyOne were challenged to
●● Create local stories: Offer local stories anchored in
deliver an engaging business campaign that would effect
international activity targeting territories including:
behavioural change within the target audience,
Switzerland, South Africa, the UK, the United States,
encouraging them to recognize brand ‘Kern’ for the first
Canada, etc for physical activity to spark local
time and make purchases based on familiarity and
conversations yet attract international attention.
preference. These translated into:
●● Drive sales of scales to the education and science Stage 1: Endorsements/develop credibility
sectors by enhancing Kern’s brand visibility and
preference among these key markets. Packed in a flight kit containing a set of Kern precision
scales, the gnome was then circulated between scientists
●● Generate conversations internationally around
and existing Kern customers globally. This provided
gravity’s influence on weight measurement –
professional endorsement of the Gnome Experiment as
explaining the importance of Kern’s USP; calibrating
individuals weighed the gnome at their location before
scales for local gravity.
passing it on.
●● Raise awareness of Kern’s reputation for accuracy
within and beyond its existing customer base –
securing coverage outside of specialist media.
F I G U R E 1 3 . 19 The gnome pack
Strategy
Make complex science accessible, harnessing Kern’s
gravitational calibration USP. Give the public a reason to
talk about Kern and ‘accuracy in measurement’. Conduct
in-depth research into education and science influencers,
delving into scientific theories on weight and
measurement to find a unique, engaging concept that had
viral potential. The Gnome Experiment was born – a global
research project aimed at proving the scientific theory
that gravity varies from place to place affecting weight.
This would:
●● harness compelling science surrounding gravitational
anomalies to engage new audiences;
●● give Kern a personality that would speak to all media
channels;
●● transform the way Kern reaches buyers, targeting
influencers via new channels and encouraging
interaction with the brand; SOURCE: Ogilvy PR
 420 Part Two | Communications Tools

F I G U R E 13.20  The gnome in famous

locations

SOURCE: Ogilvy PR

Stage 2: Initiate media and influencer engagement/

raise visibility

●● The Gnome Experiment Blog – a blog and website

were created to host the experiment’s results and
directly engage volunteers and fans. Through these
channels, and across other social media, the gnome’s
own personality emerged: scientifically irreverent.
●● Social media news releases targeting global media as
well as science and education influencers brought
consumer and target business attention to the
project – requesting volunteers and engaging millions.
●● Participants were given the tools to share their
involvement with local media and friends.
●● Content was shared, including travel snaps of the
gnome, video and facts about gravity to encourage
further sharing.
 13 | Publicity and Public Relations 421

Action experiment increased global understanding of the issues

of gravity and weight measurement, reaching an audience
The creative use of little-known gravitational facts and a
of over 350 million.
travelling gnome brought together academics, scientists
Corporate website visits increased 256 per cent and
and the media, sparking global conversations through the
Gnome Experiment volunteers ranged from schoolchildren
world’s first mass-participation gravity experiment:
to internationally acclaimed scientists.
●● Dispatching gnome packs. Following up to ensure safe
receipt. Raise awareness
●● Creating website/blog, testing and release.
Globally, people became enthralled by the Gnome
●● News releases and blog post creation. Experiment as it brought science to life. For the first time
●● Monitoring reactions, press coverage, social media Kern drew the attention of popular science publications,
engagement, on a daily basis. national newspapers, influential online publications,
broadcast news and social media, eg New Scientist, Fox
Control/measurement/results News, BBC, the Metro, Le Monde, National Geographic,
etc.
Lauded by Oxford scholars and science geeks alike, the
campaign resulted in schools incorporating Kern’s
Today
experiment into lessons, a TED presentation, National
Geographic feature articles; and TV production companies The experiment continues... Kern’s Gnome visited
around the world vied to feature Kern in shows. Newton’s apple tree in the company of BBC’s Newsround,
followed swiftly by a trip into earth’s upper atmosphere in
One week after launch NASA’s zero-G flight trainer. The campaign has taken Kern
from laboratories and schools into people’s daily lives.
News, science and education shows globally ran
Millions learned about gravity, tens of thousands shared
dedicated Kern segments. The website saw 52,425 views,
Kern’s content, and thousands volunteered to take part in
with a new participant enlisting every 20 seconds. 16,386
the experiment.
websites linked to the project website.
3Ms
Two weeks after launch
Coverage reached an audience in excess of 355,378,000: ●● Men and women/human resource required: Kern
worked with Ogilvy PR London and OgilvyOne. Ogilvy
●● Analytics revealed coverage reached 152 countries.
PR team was led by Blair Metcalfe and Allan Edwards
●● 1,042 per cent ROI achieved based on new distributor who worked intensely with the Kern marketing
sign-ups alone. manager.
●● Schools around the world added Kern’s story to the ●● Money/budget required: All of this was done for a
curriculum. surprisingly small budget of £10,000. Other non-OPR
●● The experiment became a TED talk. costs, including shipping, cases, web design and some
advertising placement to showcase the campaign in
Drive sales trade press, added another £25,000, giving a grand
total of £35,000. Many people, for example the US Army
●● Product sales to target groups increase by 22 per cent. at the South Pole, and SnoLab in Ontario, found the
●● 2,200 former customers got back in touch. project so fascinating they simply gave their own time
●● 1,445 new leads were generated: 40 per cent schools, and even paid to move the gnome on once they had
25 per cent scientists. weighed him.
●● Minutes/time required: From brief to launch, the
Generate conversations campaign ran for two weeks but still has momentum
and continues to engage its target market, and
Kern and its USP were debated among scholars,
maintain awareness, preference and sales.
scientists and the general public across all media. Its
 422 Part Two | Communications Tools

C A S E S T U DY The Snack Dash viral game

This is another more detailed viral case (created by Kerb exercise is required to lose the excess pounds (toggling
Games) regarding the serious issue of obesity and healthy the A and S keys will make the character perform a
eating. The client, Digital Public, proposed a viral game to number of press-ups in order to lose that puppy fat).
the School Food Trust to promote its healthy eating However, this all takes up precious time. The only way to
message, raise awareness of the School Food Trust and get a good score and speed is by avoiding the fatty foods
drive traffic to its site. The target market is a cynical age altogether.
group, and the task of creating a game with such a
nannying message without alienating the target market is Action
a minefield.
●● Week 1: design.
Objectives ●● Week 2: develop.

The brief was to build a game that conveyed the message ●● Week 4: test.
of healthy eating to a target market of children aged seven ●● Week 5: seed.
and over in the UK, drive traffic to the site and also for the
game to sit on the site as a flagship piece of game content Control
for the site’s newly established game section.
Results: As expected from an engaging viral, it got huge
worldwide traffic; 70 million uniques, with 3 per cent
Strategy
coming from the UK, which equals 2 million UK uniques,
To create more than just a game with a logo on it, or with without any media spend. In the first two weeks alone,
information regarding healthy eating embedded in it, the the game achieved over 3 million visits, with no budget
strategy required the creation of a game with pure game spent on media buying. It subsequently spread like a true
play and humour that would appeal to children but that viral. The game has been independently tracked by
would actually illustrate the benefits of healthy eating MemeCounter and Viralchart. ‘Out of over 400 campaigns
within the game play. this is the fastest-moving viral that we have ever
tracked’ (Viralchart). MemeCounter recorded over
Tactics 340,000 visitors in one day, which beat the previous
record by over 80,000. The cost per thousand was £8.33,
The tactics were to design and build a game that requires and the reach was 3 million, with a cost of £25,000. This
the player to guide the main character from start to finish may seem expensive, but it was a highly engaged
in the shortest possible time, while collecting as many audience. The cost per click was less than 1p (£25,000
points as possible along the way. In order to fulfil the brief, divided by 3 million).
one of the game’s key features is the inclusion of healthy
and unhealthy food. Collecting healthy foods (such as 3Ms
apples, water and carrots) increases the player’s score
and protects the player from danger. Conversely, the ●● Men/women: Created and seeded by Kerb Viral
consumption of unhealthy food (such as crisps, sweets Agency.
and fizzy drinks) causes the character considerable ●● Money: £25,000.
instant weight gain. The player can still move but is unable
●● Minutes: Eight weeks to create, seed and spread to 70
to move quickly enough to negotiate features like the
million users.
loop-the-loop or to jump over the baddies. A little bit of
 13 | Publicity and Public Relations 423

C A S E S T U DY Virgin Mobile’s new tariff

Situation ‘If you can get all of the internet for 30p a day, just imagine
what 30 peas could do.’ The 30 Peas film premiered at
Tariff announcements are essential for mobile phone
London’s first interactive blogger event for the launch of a
providers, as they are one of the key factors affecting
viral video called the Voscars (Virgin Mobile Oscars).
consumer purchase. It’s a cluttered marketplace where a
formulaic approach to PR is typically used. The campaign
used innovative techniques in digital media to promote Virgin
Action
Mobile’s new, very cheap, 30p tariff, engaged a hard-to- The premiere of 30 Peas took place at the Curzon Theatre
reach audience and delivered coverage that surpassed all in Mayfair, where a group of 30 of London’s most
client expectations for a new tariff announcement. influential bloggers were invited to showcase their
favourite viral videos. Bloggers across all categories,
Objectives including tech, coolhunting, mobile, social media,
marketing, transport, London, food and news, took part,
●● Engage Virgin Mobile customers, potential customers and bringing an eclectic and vibrant energy to the event.
key online influencers with the data tariff story – Virgin At the end of the screenings, the bloggers voted on
Mobile offers unlimited mobile internet for 30p a day. their favourite videos. The winning video was packaged
●● Find a creative way to get people talking about a dry as a story and sold at a ‘Virgin Mobile’s 30p per day
news story. Mobile Internet Tariff’ premiere.
●● Increase inbound links to the tariff’s homepage. The Voscars also saw the opportunity for Virgin Mobile
to engage directly with online consumers. Members of the
●● Secure at least 60 pieces of coverage between online
Virgin Mobile communications team were on hand to chat
national news and blogs in three weeks.
about the campaign, the data tariff and Virgin Mobile’s
●● Increase average monthly new customer acquisition plans for the future.
by 4 per cent. What was not covered in national news was covered
by the bloggers in attendance at the event. Each of the 30
Strategy bloggers wrote his or her own post about Virgin Mobile,
the Voscars, 30 Peas and the mobile data tariff plan, often
To build an online PR and social media campaign using
linking to or embedding the 30 Peas clip.
innovative digital techniques to engage Virgin Mobile’s
Additional online outreach was conducted to bloggers
customers, prospects and influencers. The campaign had
who were not able to make the event, as well as to
to be developed with the essence of the brand in mind, so
non-London-based bloggers on mobile, creative,
elements of youth, fun, funkiness, vibrancy and edginess
entertainment, coolhunting and technology blogs.
were critical in positioning Virgin Mobile as the
‘challenger’ brand within its competitor set.
Control
Tactics Results
The ‘30 peas’ campaign was the first-ever online PR and ●● Monthly new customer acquisition increased 5.5 per
social media campaign for the launch of a new mobile cent (over 37 per cent over target).
phone tariff. The creative concept was to use ‘30 peas’ in
●● There were 99 pieces of coverage, including a feature
different, digitally enhanced ways to illustrate the new 30p
in Metro online and print.
tariff in a fun and quirky way. A stop-motion animation film
of 30 frozen peas dancing through black holes, climbing ●● Over 80 per cent of sites linked to the website.
mountains and playing Pong fully encapsulated the fun of ●● There was OTS of over 20 million across non-mobile
the Virgin Mobile experience, with the subtle messaging blogs and websites.
 424 Part Two | Communications Tools

F I G U R E 13.21 Virgin Mobile campaign timescale

Week commencing 24 November 1 December 8 December 15 December 22 December

Brief delivered

Campaign planning

Video production

Event planning

Blogger engagement

Event confirmation

Video approval

Event 11 December

Top virals story developed

Top virals story sell-in

Campaign evaluation

●● There were 10,000 video views in 10 days. 3Ms

●● In total, 75 per cent of placements linked to or
●● Men/women: Account executive, managers and senior
embedded the 30 Peas video.
managers.
●● Over 95 per cent of placements mentioned Virgin Mobile.
●● Money: This amounted to £21,000 for all PR activity,
●● For every £1 spent, 952 people were reached. including agency fees and third-party costs.
●● Outcome: over 80 per cent of sites linked that wrote ●● Minutes: Figure 13.21 shows the timescales required
about the plan and/or the campaign created inbound for this campaign.
links to Virgin’s site.

A summary of the advantages and CPT basis) than advertising. PR is good at generat-
ing awareness, building preference and overall
disadvantages of PR brand building. It often delivers more ‘bang for
Here are some of the main advantages and disad- your buck’.
vantages to consider when deciding whether to in-
crease or reduce this communications tool. Disadvantages
PR has no control of the message once editors re-
Advantages ceive it. They can rewrite it any way they want,
PR has higher credibility than advertising, as it is whereas advertising controls its message. Editors,
deemed to be a journalist’s opinion or at least vetted journalists and bloggers often dig deep under the
by a third-party news source. Equipped with a good surface to expose any inconsistencies. Also, the mes-
platform of corporate social responsibility, PR can sage can spread beyond target areas. PR cannot
work wonders. It also has much lower costs (on a close sales.
 13 | Publicity and Public Relations 425

Key points from Chapter 13

●● PR and marketing are not subsets of each other, ●● Social media is a natural fit for PR.
although they do integrate. ●● Integrated PR contributes to marketing
●● Editorial coverage has lower costs, higher communications synergy.
message credibility and higher risks because of
lack of control over the message.

References and further reading

Accenture (2004) The Business of Trust, White Paper Kulp, P (2018a) Artificial influencers are attracting
referencing the World Economic Forum 2004 the attention of brands, Adweek, 20 August
Bernays, E (1923) Crystallizing Public Opinion, Boni Kulp, P (2018b) How artificial intelligence is
& Liveright, New York transforming influencer marketing, Adweek, 20
Bernays, E (1969) The Engineering of Consent, 2nd August
edn, University of Oklahoma Press, Norman Larkin, J (2003) Reputation under fire, Profile, 35,
Bland, M (1987) Be Your Own PR Man, Kogan Page, April
London Lohr, S (2006) This boring headline is written for
Brown, S (2001) Marketing for Muggles, Journal of Google, New York Times, 9 April
Marketing Management, 17 (5), 5 July Luckett, T (2010) Crisis communications, PR Week,
Calfas, J (2018) Banksy shredded a piece of art that 26 February
sold for $1.4 Million. Now it’s worth double, Marketing Week Reporters (2018) 2018 year in
according to an art expert, Money.com (archived review: It’s been a bad year for…, Marketing
at https://perma.cc/8JMC-CWEF), 8 October Week, 10 December
Chisholm, S (2010) Getting your message across, PR Murphy, D (1992) Don’t forget the hype, Creative
Week, 16 April Review, October, p 16
Churchill, D (1992) The power behind the image, PR PRTV (1991) Actions Speak Louder than Words, PR
Week, 15 October training video by PR Smith, Chartered Institute of
Colvin, G (2003) Value driven – think about this as Public Relations, London
you don your tuxedo, Fortune, 18 December Rich, F R (2003) There’s no exit from the Matrix,
Cutlip, S, Center, H and Broom, M (1999) Effective New York Times, 25 May
Public Relations, 8th edn, Prentice Hall Rogers, D (2010) Poor comms skills just magnify a
International, Englewood Cliffs, NJ crisis, PR Week, 25 June
Farey-Jones, D (2014) The bigger picture, PR Week Rogers, D (2014) PR Week leader: The death of PR
March agencies, PR Week, July–August
Friend Bartlett, J (2018) Does love island show us the Ross, D (1990) Surviving the Media Jungle, Mercury
next phase of influencer marketing?, CIPR Books, London
Influence, 25 July Singel, R (2006) Man vs machine in newsreader war,
Hargreaves, R (2017) Intangible assets now account Wired Magazine, 14 March
for more than 84% of S&P 500, Talk Markets, 25 Sorrell, M (2015), founder and CEO, WPP, Bright
February Future, PR Week, May
Haywood, R (1990) All about PR, 2nd edn, White, J (1991) How to Understand and Manage
McGraw-Hill, London Public Relations, Business Books, London
Jefkins, F (1998) Public Relations, 5th edn, FT Wollfall, A (2010) Crisis communications, PR Week,
Management, London 26 February
Klein, N (2000) No Logo, Flamingo, London World Advertising Research Centre (WARC) (2005)
Kosky, H (2008) Howard Kosky on PR and digital Excerpt from a subscription-based article archive
broadcasting, Independent, 16 June
 426 Part Two | Communications Tools

Further information
CIPR Public Relations Centre Public Relations Consultants Association (PRCA)
4th Floor 82 Great Suffolk Street
85 Tottenham Court Road London SE1 0BE
London W1T 4TQ Tel: +44 (0)20 7233 6026
Tel: +44 (0)20 7631 6900 www.prca.org.uk
www.cipr.co.uk

Communications Advertising and Marketing

Education Foundation Limited (CAM Foundation)
Moor Hall
Cookham
Maidenhead
Berkshire SL6 9QH
Tel: +44 (0)1628 427120
Fax: +44 (0)1628 427158
www.camfoundation.com
 427

14
Sponsorship
LEARNING OBJECTIVES
By the end of this chapter you will be able to:
●● consider the unlimited range of sponsorship opportunities online and offline;
●● assist in managing a sponsorship programme;
●● discuss the advantages and disadvantages, including what can go wrong;
●● monitor a sponsorship programme.

Introduction 428 Advantages and disadvantages of

Immature sponsorship 428 sponsorship 438
Mature sponsorship 429 Advantages of sponsorship 438
What is sponsorship? 430 Disadvantages of sponsorship 438

Managing a sponsorship programme 432 Key points from Chapter 14 447

Situation: The target audiences 433
Objectives 433 References and further reading 447
Sponsorship strategy 434
Tactics 435 Further information 448
Actions 435
Control: Monitor, measure and evaluate 436
Budgets 437
 428 Part Two | Communications Tools

Introduction Some brands get more out of sponsorship

than others
Sponsorship can help brands build and maintain
awareness and preference as well as positioning a ‘We do not sponsor sports. It’s a very cluttered
brand by associating it with the sponsoree’s position- market where you can spend millions without
ing. Major brands see major sponsorship opportuni- getting much return,’ said David Goldesgeyne,
ties as medium- to longer-term opportunities and
Head of Sponsorship for Lloyds Bank, a few years
hence longer-term agreements, ie 10- and 20-year
ago. While Gillette World Cup News state, ‘Each
agreements are more popular. However, there is room
World Cup has proven even more rewarding than
for shorter-term sponsorship deals, like Samsung’s
the last, in terms of global name exposure, premium
amazing sponsorship of Tim Peake’s Spacecraft Tour
positioning, sales promotion results, cementing
(more later).
relationships with trade customers.’

Ford have been sponsoring Australia’s Geelong

Football Club for approximately 95 years.
Immature sponsorship
Meanwhile, Adidas extended their kit sponsorship The European Sponsorship Association (ESA)
with Bayern Munich until 2030 for a reported €900 ­describes yesterday’s approach to sponsorship:
million (£645 million). This figure is dwarfed by the In the early days of sponsorship, arrangements
Adidas 10-year sponsorship of Manchester United’s were made for simplistic and one-dimensional
kit for £750 million, which ended Nike’s 13-year reasons. There was little, if any, media proliferation;
sponsorship deal (Lusbec, 2015). Manchester United advertising was very much the dominant marketing
have 22 sponsor partners including a shirt sponsor, discipline of choice (due to a lack of alternatives)
shirt sleeve sponsor, outdoor apparel partner, music and gaining awareness for company or brand
partner, feature film partner, wine partner, watch names was the strategic priority. It was considered
partner logistics partner, tyre partner, lubricant part- enough just to attach your brand name to an event
ner, fuel retail partner, office equipment partner, title and place your branding in front of the TV
global mattress and pillow partner, and many more. cameras. Partnership choices were often made
LeBron James and Cristiano Ronaldo each have a on the likely volume of TV coverage alone, with
lifetime arrangement with Nike reported to be worth no other considerations or priorities. Success was
at least $1 billion (Sports Illustrated, 2018). likely to be assessed by attaching a TV equivalent
Brand managers understand the power of sponsor- advertising value to the exposure of the company
or brand name and whether this seemed to be good
ship and therefore see sponsorship as an in-term strate-
value for money when compared to advertising.
gic marketing tool. Take Coca-Cola, who sponsored
ESA
the FIFA World Cup back in 2005 and committed
$500 million to extend its sponsorship until 2022. This
gave Coke exclusive rights as non-alcoholic beverage Align with new communities’ passions
supplier to all major competitions, including the World
Cup tournament, and sales rights for TV and stadium through sponsorship
advertising. It also extended its Olympic Games spon-
sorship for 12 years to 2020. The Coke deal covered ‘While advertising is excellent for generating
the 2010 Winter Olympics, the 2012 Summer Games awareness, public relations informs and
and the 2014, 2016, 2018 and 2020 games (WARC, influences, and sales promotions stimulates
2005). Note that even the signing of a sponsorship trial, they all compete with each other to cut
contract provides a PR opportunity – Coke took it and through the marketing clutter. Brands have
signed the contract on the Great Wall of China. found that the best way to get our attention is to
Although this is based on anecdotal evidence, it is from identify the passions of new communities and
one of the world’s best marketing machines, which align with them through sponsorship.’
considers that its sponsorship management (‘know- Collett and Fenton (2011)
how’) actually gives it a distinct competitive advantage.
 14 | Sponsorship 429

Today, expert sponsors leverage the sponsorship sophisticated marketing environment. While
opportunity to maximize the return on their invest- achieving significant media coverage is still
ment. It is much more than just ‘badging an event’; important, it is now likely to be only one of many
for example, if a mobile phone company sponsors a objectives set by the company. Some sponsors
summer music festival, it will seek to be allowed to select properties with no, or at least very limited,
collect and distribute backstage gossip, generate ex- media coverage because their objectives do not
clusive video content, interviews and jam sessions, require it. Sponsorship is so versatile that a
and share this with its audiences, with its own cus- relationship can be used to fulfil a broad number
tomers getting extra benefits. These may include of strategic marketing objectives. Selection of
the most appropriate property to satisfy specific
VIP access, parties and intimate performances from
objectives is, therefore, often the most crucial part
artists. Some phone companies loan phones so peo-
of the sponsorship process.
ple can share their partially branded photos and
ESA
videos with their social media networks.
Think of sponsorship as an enabler of marketing’s
In a community-less society sponsorship broader objectives and strategies. It is not an end in
itself. Today marketers look beyond the old objec-
can give supporters a greater sense of tives of reach and affinity and try to leverage the
belonging sponsorship to create value for consumers in a way
that can, firstly, drive behavioural change, and sec-
In an increasingly impersonal world (where email, ondly, reinforce the brand. As Rosen and Minsky
texting and ‘social’ media platforms replace (2011) say, sponsorship can ‘create unique opportu-
talking), while the pillars of society crumble (as nities for experiences, access, self-expression, enter-
trust plummets for churches, politicians, banks, tainment, connection, or contribution to the social
police and communities), work pressure and time good.’
increases, and changing gender roles reduce a So, what should be sponsored? How does one
sense of order. ESA suggest: choose what to sponsor and what to reject? Maybe
arts are good for computers and sports are bad for
‘ Our sense of community and belonging is banks? If sports sponsorship is so good for Gillette,
increasingly under threat; this has led to the why does it bother to advertise at all? Or perhaps
adoption of new allegiances and relationships, its advertising doesn’t work, which means any
often passionate ones, with a range of interests. meagre improvement would be deemed to be a
Increasing numbers of media outlets and digital success? Do sponsorship funds come out of the
channels are offering more compelling, in-depth above-the-line budget, ie does it always mean
and personalized content than ever before. It is reducing the advertising budgets, or can they come
no surprise that these stronger and more out of some corporate communications or corpo-
intimate affiliations across a range of sports, rate social responsibility (CSR) programme? How
arts activities, live entertainment, charities, much should be spent? How much is too much?
environmental concerns, politics and When does it become less value for money? How is
educational activities are offering their it measured? Finally, what exactly does sponsor-
followers (supporters) a greater sense of ship mean? These are some of the questions this
belonging and association.’ chapter answers.
ESA (2015)

The power of sponsorship

Mature sponsorship
Tiger Woods is Nike’s $650 million man. His contract
Sponsors have got a lot more professional about stipulates that he wears Nike clothes when doing
leveraging their investment in sponsorship: other brands’ promotional work, so its brand
Time has moved on and sponsorship has matured piggybacks other sponsorship programmes and
and now plays an integral role in an increasingly advertisements.
 430 Part Two | Communications Tools

However, just like PR, sponsorship is uncontrollable only by one’s imagination. The obvious areas are
as sponsors’ brands can be damaged by behaviours of sport, arts, education, community and broadcast.
the people they sponsor. Woods’ well-publicized Whether the events are large or small (eg blind
personal problems a few years back resulted in the golf and blind cricket), sport offers an effective
loss of several sponsorship deals. route into the minds of various target markets. Even
within a particular sport there is a range of different
sponsorship opportunities. Take football, for exam-
ple. It is possible to sponsor a title, eg the Carling
Sponsorship shifting from brand exposure Cup or the Barclaycard Premiership, or a stadium,
to brand activation eg the Reebok Stadium. Perhaps a more interesting
example is where Maxwell House coffee’s Taste of
Chicago sponsorship maximized the off-site poten-
‘In a little less than 20 years, the focus of
tial by buying all 37,000 tickets to a game and then
sponsorship has shifted from the valuation of
giving them away free in return for two empty
brand exposure (eg jerseys, boards, etc) to the
Maxwell House jars. It is also possible to sponsor:
sponsor’s brand activation by focusing attention
on the organization’s relationship with the ●● a club, eg Emirates and Arsenal, Doritos and
people interested in the event.’ Wolverhampton Wanderers (incidentally,
Ferrand et al (2007) since the 1980s, five of Japan’s baseball teams
have been owned by railway companies, four
by beverage companies, two by newspapers
and one by an automobile company);
What is sponsorship? ●● a match day (eg York City gave 12 stand
tickets, free buffet, free bar, free ads in the
Sponsorship is more than patronage, altruism or programme, hoardings in the car park and
benefaction. It can indeed help others while simul- the opportunity to present the Man of the
taneously achieving specifically defined communica- Match award and join players in the bar after
tions objectives. Some sponsors see sponsorship as a the game – all for approximately £1,000);
form of enlightened self-interest, where a worthy
●● a kick-off (in the United States, Anheuser
activity is supported with cash and/or consideration
Busch sponsors NFL kick-offs, and they are
in return for satisfying specific marketing or corpo-
referred to as ‘Bud kick-offs’);
rate objectives. As sponsorship matures, its diverse
range of programmes, objectives, advantages and ●● a ball, eg Crystal Palace FC match ball
disadvantages requires a relatively sophisticated sponsorship costs £250;
level of management understanding. ●● a fair play award, often tied in with another
The target audience must be researched in detail, sponsorship package;
crystal-clear qualitative and quantitative objectives ●● a sin bin (the Northern Ireland police force
must be set, and appropriate types of sponsorship wittily sponsored the ‘sin bin’ at the Belfast
vehicles must be agreed, considered and selected. A Giants hockey team – essentially made up of
programme of integrated communications has to be neutral Canadians);
planned with precision, and sufficient budgets have
●● a player (players receive individual
to be allocated to allow for ‘leveraging’, stretching
sponsorship and in return they open stores,
or maximizing the overall sponsorship impact.
meet employees and acknowledge the
sponsor in the programme);
Can anything be sponsored? ●● a pass, a tackle, a goal, a save or a miss – the
All sectors of society can be targeted and reached Pizza Hut and American Express examples in
through sponsorship. Just about anyone or any- the boxes opposite show US baseball
thing can be sponsored. You can even sponsor ‘the creating such exciting opportunities. Score
possibility of an event’; Granada TV once spon- updates, gossip about players and even free
sored Manchester’s bid to host the Olympic Games. betting can be sponsored. It is even possible
The range of sponsorship opportunities is limited to sponsor a fictitious team in a kids’ comic.
 14 | Sponsorship 431

F I G U R E 14.1 Sponsoring the national tour of Tim Peake’s spacecraft

what was likely to be the longest golf shot ever

Sponsor anything: Sponsor a catch – fan (IOL, 2006). See Samsung and National Museum
catches 33,000 pizzas Group’s intriguing sponsorship of the national tour
of Tim Peake’s spacecraft on p 440 of this chapter.
Pittsburgh Pirates fan Ted Bianucci was picked at See also Red Bull’s sponsorship of the mission to the
random out of a crowd at Three Rivers Stadium to edge of space and supersonic freefall parachute
take the field to try to catch three pop-ups (balls shot jump in Chapter 15, p 457). See more on sponsor-
out of a gun used to help catchers practise defence). ing a spacecraft tour later.
Sponsors Pizza Hut promised every spectator in the It is the marketer’s job to spot the opportunity and
park a free soft drink at Pizza Hut (by showing the determine if it is really just a publicity stunt sponsor-
ticket stub), a jug of soft drink or a small pizza if the ship or if it is a medium- to longer-term sponsorship
fan caught one, two or three respectively of the programme.
pop-ups. No one had ever previously caught all three.
Bianucci, to the cheers of 33,789 people, caught all
three balls – and $150,000 worth of pizza generates a Sponsoring a miss
lot of good feeling, and probably extra business as
33,000 customers enter Pizza Hut’s premises. American Express and Best Western International
Hotels jointly sponsored a programme that donated
$300 to a children’s baseball league every time top
Effectively, anything can be sponsored, including baseball pitcher Nolan Ryan bowled or pitched an
golf on the moon. A golf equipment manufacturer opposition player out. If Ryan pitched a ‘no-hitter’
asked Russian cosmonaut Mikhail Tyurin, who was (bowled the whole team out for nought) then a
based on the International Space Station, to take a whopping $1.25 million would be donated by the
golf club and ball outside to tee off into space for sponsors to the league. AmEx and Best Western also
 432 Part Two | Communications Tools

donated three cents every time an AmEx card was (Mercury has sponsored a walk to the North Pole).
used to pay for a Best Western hotel. In addition, $2 British Aerospace, Memorex and Interflora signed as
was contributed for every newly approved AmEx sponsors for a voyage into space (the package was
card member application that came from a ‘take- subsequently cancelled). An organization can also
one’ box at each Best Western hotel. sponsor a species (Systematics Association, a scien-
Arts sponsorship can be even more diverse – tific group involved in classifying organisms, named
from sponsoring the opening of Disneyland Paris, to seven wasps after the directors of Salomon Brothers
a film premiere, to a particularly obscure type of when they waived a $300,000 debt arrangement).
play to gain access to an otherwise difficult target The ‘Ugly Bartender’ contest sponsored by the
market. Education is a sensitive area, and Multiple Sclerosis Society is its second-biggest reve-
sponsorship can come in cash or in kind, such as a nue generator. Some years ago, cows wearing
computer company donating computers to schools.
Vladivar Vodka jackets in a field near the London-
to-Brighton railway line were sponsored during the
Community sponsorship is becoming increasingly
Brighton festival. Akai sponsored bullfights at
important as businesses recognize the importance
£10,000 a fight. BP sponsored Eugène Ionesco’s play
of their community and their corporate
Journeys Among the Dead. Sponsoring a war? It is
responsibility. The corporate citizen is alive and
possible to sponsor sections of the US Army (eg the
well within the Per Cent Club. (In the UK, corporate Medical Corps). On the other hand, sponsoring
members of the Per Cent Club promise to spend peace initiatives is also possible. For example, dur-
one-half of 1 per cent of their profits on community ing the height of the Cold War the Irish Times spon-
programmes. In the United States, there are also 2 sored an official televised arms debate between
per cent and 5 per cent clubs.) In the UK, it is Soviet and US diplomats. It is even possible to spon-
possible to sponsor the police, the fire brigade and sor an Amnesty International tour.
the coastguard. Off-licence chain Thresher Broadcast sponsorship offers possibilities rang-
sponsored a van for Avon and Somerset police ing from sponsoring other people’s advertisements
force, while Newcastle Breweries sponsored a (Midland Bank’s £50,000 and Cancer Research), to
mobile police station. the weather, specific programmes and themed weeks
on cable television.
Online events in virtual worlds or online com-
munity events (webcasts, discussions, video walls,
Sponsoring a possibility and then asking etc) can be sponsored. Effectively, any event any-
FIFA for money back where, online or offline, presents sponsorship oppor-
tunities that can be leveraged in many ways.
‘Morrisons supermarket chain sponsored
England’s failed 2018 World Cup bid. After the
bid was lost, they called on FIFA to donate £1
million to charity for compensation for an
Managing a sponsorship
‘unfair’ bidding process. Morrisons said: “We programme
think the decision-making process was unfair.
We hope FIFA will do the right thing and offer The SOSTAC® + 3Ms acronym (see Chapter 9, p 264)
£1m to be invested in grassroots football.”’ can be used to develop and manage a sponsorship
PR Week, 17 December 2010 programme.
SOSTAC® + 3Ms involves:
●● defining target audiences;
Other (unusual) types of ●● defining sponsorship objectives;
sponsorship ●● analysing and summarizing the current
Here are some other forms of sponsorship, which sponsorship situation (including competitive
give an indication of the variety and potential avail- review, previous sponsorship experiences,
able. An organization can sponsor an expedition sponsorship strategies, etc);
 14 | Sponsorship 433

●● clarifying the strategy (how the sponsorship image through association with particular
programme contributes towards the overall types of sponsorship activities, eg a caring
corporate or brand mission, marketing image through community programmes. The
objectives and communication objectives); sponsorship must support the brand values.
●● developing the tactical details of how it all ●● Activating a brand: There is a shift in
fits together; sponsorship from building brands to
●● building in measurement or evaluation to see ‘activating’ brands.
whether the programme is worth repeating; ●● Customer engagement: There are many
●● identifying the resources required to leverage spin-off engagement benefits that can be
a programme to give the maximum return. shared with customers such as free gifts,
tickets, photos in return for participation in a
sales promotion.
Situation: The target audiences ●● Content generation: Part of the sponsorship
There are two different audiences. The first is the package can be the brand’s own content
one immediately involved with the programme; the creators generating content, eg behind the
second is the one that can be reached through ad- scenes interviews, photos, videos, etc.
vertising and media coverage. Although there are ●● Differentiate a brand: Create a unique
many spin-off objectives that offer benefits to dif- association with a particular passion point of
ferent target groups, the primary objective should a target audience.
be linked clearly with the primary audience. This ●● Strengthen brand personality: Associate a
involves some research into the lifestyles, attitudes, brand with an ‘activity area’ with which the
behaviour patterns, leisure activities, issues and de- target audience has a positive, and ideally, a
mographics relevant to the primary target group. passionate, connection (often referred to as a
Previous research should have identified the cur- ‘passion point’). This adds value to the
rent situation, ie how the sponsor is positioned in overall brand proposition and allows a more
the target audience’s mind. This will reveal the personal, passionate and a more connected
kinds of specific communications objectives that form of communicating.
need to be set. ●● Improve or maintain relations: With
customers, the trade, employees and even
investors through hospitality and
Objectives entertainment at a sponsored event.
After defining the target audiences, objectives must Rumbelow’s department store sponsored
be fully clarified to focus both the spin-off activities English soccer’s League Cup. Part of the
(eg sales promotions linked with the core sponsor- agreement allowed the sponsor to appoint its
ship programme) and the marketing support activi- own employee of the year to meet the teams
ties (eg advertising and publicity announcements and present the cup to the winning captain.
around the sponsorship programme). A sponsor- Community relations can also be enhanced
ship programme can satisfy many objectives simul- by supporting appropriate local activities.
taneously. The range of objectives is varied: ●● Increase sales and open closed markets:
●● Increase awareness: Eg Canon sponsored the Coca-Cola was banned in Arab markets
Football League to create a presence, become because it had built an Israeli bottling plant.
a familiar household name and generally Sponsorship of the 1989 Arab Youth
raise awareness of a previously relatively Football Competition in Riyadh helped to
unknown company in the UK marketplace. open the door again.
Its sponsorship gave it a foothold in the UK ●● Increase sales (sampling and direct sales):
market. Action-orientated sampling opportunities
●● Build/enhance an image: This can help to abound in a captive market where the buyer
reposition or strengthen a brand or corporate is in a relaxed frame of mind, for example
 434 Part Two | Communications Tools

buying and drinking Victoria Beer at a touch- your dreams; see Chapter 11, p 339) as a means of
rugby competition sponsored by Victoria improving employee relations.
Beer. Some market research can also be A sponsorship policy helps the programme selec-
carried out. Sponsorship can create a tion process by defining sponsorship parameters
dialogue, whereas a lot of advertising is a such as the preferred types of sponsorship that fit
monologue (although there are some with the overall mission statement and the marketing
campaigns that engage the customer in more and communication objectives. Questions to ask
than just a monologue). include the following: Is there any relevance between
●● Attract distributors or agents: For example, sponsor and subject, eg a chess competition and a
sponsoring a radio station’s weather computer company share values of intelligence? Is
forecasts to build awareness and attract there a consistent message or objective behind all the
enquiries from agents in other markets. organization’s chosen sponsorship programmes?
Does the association add value to the company or
●● Employee motivation: Offering employees
product? Does the sponsorship support the brand
special access to the sponsored event, or team.
values? Is the association internationally acceptable?
●● Create promotional material: Some events Think global; act local (sponsoring bullfighting is
offer wonderful photo opportunities with globally unacceptable, although Pepsi has sponsored
scenes, sights and stars. One climbing it). Are there certain types or areas of sponsorship
equipment company sponsors climbs that are preferred? It is often felt that it is better to
primarily to secure stunning photographs concentrate in certain areas. What is the ideal time in
with branded climbing gear featuring terms of seasonality and length of commitment, eg a
prominently. three-year minimum? When should a sponsorship
●● Circumventing advertising bans: programme be dropped, changed or simply reviewed?
Sponsorship, particularly of televised events, Are both solus and shared or joint sponsorship
allows sponsors a way around mainstream ­programmes acceptable? Can staff involvement be
above-the-line advertising bans, for example incorporated? Does the sponsorship lend itself to lev-
tobacco companies sponsoring sports events erage by offering potential for spin-off promotions
such as snooker. Incidentally, the famous and publicity? Does it lend itself to sales promotions?
1985 Steve Davis vs Dennis Taylor snooker Can customers become even more engaged? Is it
final kept one-third of the British population unique? Is it protectable from ambush marketing
glued to their TV sets until 3 am. (see p 439 for more on this)? What is the compe­
●● Cost effectiveness: More bang for your buck tition doing? Are ‘me-too’ sponsorship packages
when comparing CPT (cost per thousand) (the ­competition follows with a similar sponsorship
reached vs CPT for advertising. ­programme) preferred to unique (and uncopiable)
sponsorship programmes? What kind of budget is
●● Miscellaneous: Ranging from, for example,
required? What is defined as value for money?
the generation of new product ideas (new
product educational competitions) to
graduate recruitment.
Tiger Woods and a watch
Sponsorship strategy Does the sponsorship support the brand values?
The watch company TAG Heuer sponsored Tiger
The strategy statement briefly explains which types
of sponsorship programmes are preferred, why a Woods for £1.5 million and he didn’t even have to
particular sponsorship programme is selected, how wear one of its watches while on the golf course
it will be exploited and integrated, and at what cost. (their sponsorship arrangement has now expired).
To maximize the effect, sponsorship must be inte- Both brands, one might argue, are very similar. The
grated with other elements of the communications trick is to balance the person and the product.
mix, eg advertising, sales promotion, direct mail Arguably, there was a good balance between Tiger
and public relations. It should also be explained in- Woods’s and TAG Heuer’s brand values: timing,
ternally and sometimes used internally as part of focus and commitment.
‘psychic income’ (non-financial rewards that fulfil
 14 | Sponsorship 435

Tactics example, it is easy to start supporting a local

theatre, but when the sponsor wants to
Squeeze as many benefits as possible into the pro- switch into a different type of sponsorship
gramme. Sponsorship does not involve just adding the eventual withdrawal of funds may
the organization’s name to an event, team or situa- prompt the local paper to print a headline
tion and waiting to see if awareness takes off that reads ‘Company X Pulls Plug on
­overnight. A well-planned sponsorship programme Theatre’ or ‘Company X Leaves Theatre in
involves attracting media coverage, corporate enter- the Dark’. Consider exit strategies also.
tainment, new client recruitment, miscellaneous spin- 2 Can those sponsored deliver on their
off promotions and staff motivation schemes. (See promises? Can they provide proof? Have
the ‘tactics’ section in Chapter 9, p 280, to help de- they done it before? Have they any
velop a whole communications plan around the references? Are they financially secure?
sponsorship package or to help integrate the spon-
sorship programme into the rest of the marketing 3 Is it fair and reasonable to all parties?
communications activities.) Sometimes razor-sharp negotiators agree a
The launch is the easy bit. The real work starts deal that is too good for the sponsors, which
then, as years one, two and three need constant eventually creates problems. A good example
attention to detail. A series of checklists and detailed is Nike’s sponsorship deal with the Brazil
plans (including contingency plans) have to be football team (see the box ‘Sponsor being too
developed. clever’ on p 437).
4 Are there other opportunities for brand
exposure via the sponsored person or
Actions organization’s other marketing activities
(see the next box)?
Internal marketing
The actions are all about internal marketing.
Communicating, motivating and training staff if Nike piggyback on Tiger Woods’ other
necessary. Without this, staff may feel alienated so it endorsements
is reasonably common practice to share some of the
benefits of sponsorship with the brand’s own staff ‘Nike’s association with Mr Woods has worked
(as well as customers). See Liberty Insurance’s spon- wonders for the company. After signing him in
sorship of the GAA, which includes staff days out 1996, Nike redid the deal in 2000 for a reported
and staff tickets to big matches on p 444. Actions $105 million. That may sound like a lot of money,
also include detailed project management right but not only has Mr Woods single-handedly built
down to logistics plans (see Tim Peake’s Spacecraft Nike Golf, his apparel deal means that even
Tour, p 440). And the details of sponsorship con- when he appears in ads for his other partners,
tracts need to be carefully checked as they try to
he wears Nike clothing. The swoosh is clearly
cover all possible eventualities; eg, what if there is a
visible in ads for American Express.’
media strike or blackout?
Thomaselli (2006)

The agreement Note: When Tiger won the US Masters in 2019 his
value increased enormously, despite his difficulties
Agreements need to be carefully checked, as some-
along the way.
times, in the frenetic search for funding, those spon-
sored may promise the world to potential sponsors.
The potential sponsor needs to exercise some cau-
tion. Here are some points worth considering: Pilot scheme
1 Have the contract checked by an expert. In Pilot testing is where ‘action’ overlaps with ‘con-
particular, check the exit clause and exit trol’. In an ideal marketing world, all risks are re-
arrangements, since it may be harder to get duced by testing and researching everything. Extra
out of sponsorship than to get into it. For research costs resources, primarily time and money.
 436 Part Two | Communications Tools

Sometimes the nature of a sponsorship programme

does not lend itself to testing, eg sponsoring the
35 days’ continuous monitoring
English Football League, but customers can be
asked what they would think of it (before signing When npower sponsored cricket, media monitoring
on the dotted line). Alternatively, a local league can services revealed it received:
be sponsored to allow management to move up the ●● 350 hours of TV coverage (Channel 4 and Sky);
learning curve. Telstra was reported to have jointly
sponsored the 2003 Rugby World Cup so that it ●● 12,500 banner sightings;
could learn about how sponsorship worked. The ●● 625 references in the national press.
cautious or delayed approach arising from testing
can also cause opportunities to be lost, since the Cost: £18 million over three years. Result:
competition may snap up the best sponsorship pro- spontaneous awareness up to 45 per cent.
grammes. It may, however, identify some opportuni-
ties and avoid some nasty problems.

Although cricket is on TV for long periods, its audi-

Roll-out ence is often quite small. Sponsorship research com-
This is the exciting side that everyone sees without pany AGB divides broadcast time by audience size
fully realizing the amount of work that goes on be- to give cricket a ranking of 67, less than half that of
forehand. Nevertheless, it is deceptively hard work ice skating. There are other, sometimes simpler, ap-
since, even though the sponsors are enjoying enter- proaches to measuring the effectiveness of sponsor-
taining their clients, it is still work. In smaller spon- ship. For example, Volvo calculated that its $3
sorship programmes sponsors have constantly to million tennis sponsorship generated 1.4 billion im-
think on their feet while entertaining, as minute pressions (number of mentions or sightings times
problems inevitably crop up from time to time. In audience size), worth about $18 million in advertis-
larger sponsorship programmes the constant alert- ing. It is worth noting that this measures only the
ness, attention to detail and readiness to react can be amount of media coverage or output. It does not
shared between members of staff (or a consultancy). measure the ultimate objectives of, say, increasing
Staff will be interested in high-profile sponsorship awareness, changing attitudes or improving rela-
programmes. Keep staff informed about how the tions with different groups. This is where money
programme is working and whether it is on target may have to be spent on commissioning a piece of
and generating results. Where possible, include pro- research that looks inside, instead of outside, the
gramme prizes as staff incentives. Marks & Spencer minds of the target audience.
sponsors projects that attract staff involvement. The other objectives can be relatively easily
measured if a system of measurement is set up in the
first place, eg everyone is briefed to log or identify
Control: Monitor, measure the source of any enquiries from customers, agents
and evaluate or distributors. Then again, a common-sense
approach may help to identify results, eg new dis-
This is where the clearly defined sponsorship objec- tributors or increased sales, without changing any
tives make life easy, since results can be compared of the other elements of either the marketing or the
with predetermined targets. Once the result has been communications mix (and assuming the competi-
measured, further analysis as to why a programme tion has not had a strike or a factory fire).
was particularly successful or unsuccessful will help
future sponsorship programmes. The first two objec-
tives listed on p 433, awareness and image, would Waffles or lager?
normally require some formal market research
­activity such as a survey. There is, in ­addition, an ‘In 1979 Belgium was “better known for its
interim method of evaluating sponsorship – by the waffles than its lager”. When TV ads were
amount of media coverage or name mentions. There beyond budget, sponsorship of the Queen’s
are many monitoring companies that provide such tennis tournament beckoned. TV exposure and
services.
 14 | Sponsorship 437

tennis’s “aspirational and achievement” image

matched Stella’s objectives. Stella rose to
Budgets
number 1 in Britain’s premium lager sector. Budget allocation may in fact determine programme
Sales increased by 400 per cent.’ choice rather than the other way around. The for-
mulae for determining the sponsorship budget vary,
Observer, 1 April 1988 but a rough rule of thumb suggests that the basic
sponsorship fee should be at least doubled to get
maximum leverage from the programme (Coca-
Canon got good value for its money when, some 30 Cola allows 16 times the sponsor fee to generate
years ago, it sponsored the Football League for a lim- maximum leverage).
ited period only. As Frank Jefkins (1991) observed, This then leaves a budget for supporting market-
‘Hardly an office in Britain is without a Canon ma- ing activities such as advertising and publicity, and
chine. It only took £3 million and three years – pea- maybe even some direct marketing. It also allocates
nuts in that sort of business when you think what the some money for other spin-off activities. For exam-
sales are valued at.’ More recently, Barclays paid ple, sponsors of the Olympics will tend to milk the
£31.5 million to sponsor the football league sponsorship to the maximum by running sales pro-
(Georgiou, 2018). Incidentally, the Premier League motions offering Olympic prizes and donations in
receives over £100 million pa from commercial part- addition to simply carrying the ‘official Olympic
ners, and is set to generate over £5 billion in domestic sponsors’ logo. Payment can be in cash or in kind. A
TV revenue over the course of the coming three-year sponsor’s services or facilities are likely to have a
rights cycle (Georgiou, 2018). much greater value than cost; for example a news-
paper sponsoring a boxing match can offer the fight
Sponsor being too clever promoter free advertising space in return for exclu-
sive sponsorship rights. The cost may be minimal if
the newspaper is not selling all its advertising space,
‘There was a legislative inquiry into Nike’s
while the value to the promoter is, of course, much
sponsorship deal with the Brazilian football team.
greater.
[Nike had negotiated a $400 million, 10-year kit
There are also various government sponsorship
sponsorship deal with the Brazilian Football
grant programmes that contribute significantly
Federation.] A sense that Nike had too much towards the cost. (Check for any government subsi-
control over the country’s affairs was magnified dies; arts and business for example have different
by original provisions in the contract allowing the subsidy programmes.)
company to promote 50 Nike-branded Brazil- The 3Ms (men/women, money and minutes)
friendly matches involving eight first team need to be budgeted for and built into plans. Who is
players... With World Cup qualifiers and other responsible for what – the supporting advertising,
friendlies to organize, it became clear that the the spin-off sales promotions, the hospitality tent,
original number of Nike friendlies was too large. the invitations, the publicity, etc? Is it all handled by
In November 1999 Brazil found itself double an agency or controlled and administered by the in-
booked to play two matches. This led to a house team? Time can be the greatest constraint to
second-string Brazil team playing in Australia, leveraging a sponsorship programme fully, since
while most of the country’s top stars featured in a there may be lots of great ideas for exploiting the
game against Spain. Consequently last April Nike opportunities to the full but each one takes time to
reduced the contractual number of games it plan and ultimately put into action. Some estimates
would promote to two a year. Also under the initial suggest a minimum of nine months is needed to
contract – since changed – legal disputes with develop a proper sponsorship strategy and pro-
the CFB were to be settled outside of Brazil. “The gramme plan.
CFB transferred part of its autonomy as a public
entity to Nike”, said Aldo Rebelo (head of the
25-member committee of Brazil’s Lower House of
Congress investigating Nike’s sponsorship deal).’
Colitt and Garrahan (2001)
 438 Part Two | Communications Tools

in Kerrigan’s recovery created an avalanche of

Advantages and media coverage before, during and after the event.
disadvantages of sponsorship The extra, unplanned coverage was carefully meas-
ured and valued by the sponsors.

Advantages of sponsorship
Sponsorship can be cost-effective (compared to ad-
Disadvantages of sponsorship
vertising) in terms of reaching a particular audience. Sponsorship cannot close sales; it only creates
It does allow access to very specific targeted audi- awareness. It can carry only a very limited message
ences that otherwise might be difficult to reach. (for the masses), usually just a brand name, al-
Sponsorship can achieve many different objectives though some brands leverage the sponsorship into
(see ‘Objectives’, p 433), including: many diverse aspects, which allows more detailed
brand value messages. The message cannot be con-
●● increased awareness;
trolled; a football hooligan wearing a club shirt
●● image enhancement; with a sponsor’s brand might appear on the front
●● customer engagement; page of a newspaper, attacking a police officer.
●● content generation; Guerrilla marketing can also damage the sponsor’s
impact. It is not so easy to change a message or to
●● brand differentiation;
exit a sponsorship programme quickly (unless care-
●● strengthened brand personality; fully planned). As with PR, there is a lack of control,
●● improved relationships; as strikes, riots, weather and media all affect the im-
●● increased sales; pact of sponsorship.
Some say that sponsorship is insidious and that it
●● sampling and database building;
undermines artistic integrity. In areas such as health
●● creating a platform for new promotional and education, some feel that the issues involved are
material; too important to be left to the whim of a corpora-
●● beating advertising bans, etc; tion. Although sponsorship can deliver extremely
●● employee motivation; cost-effective benefits, it can be misunderstood by
employees as an excessive indulgence if they are
●● cost effectiveness.
kept in the dark about it and if there are redundan-
It also offers creative opportunities, including the en- cies occurring at the same time. In both cases spon-
gagement of an audience in a relaxed atmosphere of sorship, particularly high-profile sponsorship, needs
goodwill. Hospitality events open doors and create a to be presented to the employees as a cost-effective
dialogue that conventional media simply cannot business tool that can help the business to survive
match. As Alan Mitchell (1997) says, ‘sponsorship and thrive in the future. Sponsorship of a competi-
reaches the parts conventional advertising cannot’. tive activity, such as a football club, can alienate the
Sponsorship lends itself to integrated communications company or product from the opposition fans, eg a
and the cost-effectiveness of integrated activities. national audience if the teams are involved in an
Sponsorship packages can offer brands an international competition, or an even larger audi-
opportunity to communicate regularly. Finally, the ence if the team or player behaves badly.
effects of a sponsorship programme are measurable. Global media coverage may not be a good thing
Even the uncontrollable nature of sponsorship is if what is being sponsored in one country is unac-
measurable. Consider the now classic case of the ceptable in another country, for example bullfight-
1996 Olympic sponsors (who paid $40 million ing, camel wrestling, etc. If the medium is the
each). They were pleased to have the rights to the message (ie the choice of sponsorship reflects the
Winter Olympic Games in Lillehammer thrown in values of the sponsor), the message can become tar-
free of charge. The US figure skater Nancy Kerrigan nished through its association with a socially unac-
was violently attacked six weeks before the Games ceptable event. Some sponsorship deals can alienate
began. The attack was masterminded by the ex-­ a whole nation, particularly if the sponsor is per-
husband of her chief rival, Tonya Harding. Interest ceived to have negotiated too good a deal for itself
 14 | Sponsorship 439

(see the box ‘Sponsor being too clever’, p 437). The There is nothing really new in this, as ambush
uncontrollability of so many variables from weather marketing has been around almost as long as spon-
to fans to strikes to riots makes sponsorship more sorship itself. Measurement of the 1991 Rugby
risky than advertising. Even pop concerts are risky, World Cup broadcast sponsorship demonstrated its
as Naomi Klein (2000) points out: ability to influence consumers and override the main
event sponsors. Spontaneous brand awareness of
Celine Dion’s concert tour was picketed by
Sony rose among Rugby World Cup watchers by
human rights activists in Boston, Philadelphia and
Washington, DC. Although she was unaware of it, eight points to 61 per cent (between September and
her tour sponsor – Ericsson cellular – was among November). Despite the recession, the company
Burma’s most intransigent foreign investors, went on to record sales in December. Although Sony
refusing to cease its dealings with the junta despite was not a sponsor of the event itself, it did sponsor
the campaign for an international boycott. the ITV coverage. ITV report that invariably the first
name mentioned as sponsor of the Rugby World
Finally, ambush marketing allows non-sponsoring Cup and overwhelmingly seen as the main sponsor
competitors to soak up some benefits without pay- was Sony.
ing full sponsorship fees. However, over-zealous policing can backfire.
Pepsi was one of the official sponsors at the 2003
Ambush marketing Cricket World Cup in South Africa. The drinks
Ambush marketers attack official event sponsors by company had to distance itself from the embarrass-
running competing promotions, events and adver- ment of the publicity surrounding the ejection of a
tisements close to the official sponsors’ activities. fan caught drinking a can of Coca-Cola. Previously,
This way they create an aura of being official spon- Coca-Cola had been the official sponsor of the
sors without paying the official sponsor fees. An Football World Cup in Japan, where organizers had
example is the classic 1984 ambush by Kodak when stopped fans from taking Pepsi into the stadium.
it sponsored the ABC TV coverage of the Olympics This kind of action is not necessarily protecting
despite Fuji being the official sponsor. In 1988 sponsors from mainstream ambush marketing but
Kodak was the official Olympics sponsor while Fuji is an indication of the attention to detail and the
sponsored the US swimming team. Nike managed lengths that event organizers will go to in order to
to ‘ruin the 1996 Olympics for the official sponsors protect the interests of sponsors. It can, however,
by ruthless advertising and by exploiting its star backfire in publicity terms.
names’ (Boshoff, 1997). The International Olympic Shani and Sandler’s (1989) study of ambush mar-
Committee stepped in next time round by ordering keting revealed that it works. For example, Wendy’s
that all poster sites in Athens be bought up and got what it wanted for about $20 million or so less
fairly distributed. For the 1998 World Cup, Adidas than McDonald’s spend. McDonald’s didn’t leverage
paid £20 million to be an official sponsor and, its sponsorship well at all, advertising its super-value
among other things, built a football village under meals and Double Big Macs instead of its Olympic
the Eiffel Tower, while Nike responded with a site sponsorship.
on the outskirts of Paris. Adidas signed up Paul For some 20 years now, the Olympics Committee
Gascoigne, Paul Ince and David Beckham, as well as has had clear anti-ambush guidelines, including the
sponsoring the kit of nine teams, including Germany, registering of all trademarks and emblems, coordi-
France and Spain, while Nike sponsored six squads, nation with city authorities to control the skies
including the favourites, Brazil (which cost £250 above venues, and ensuring that sponsors have first
million over 10 years). The Daily Telegraph re- option for any broadcasting and advertising rights
ported that ‘rumours have it that Nike is willing to for the event in each country where the Olympics is
spend £20 million to hijack its arch-rivals Adidas shown on TV. In 2010 a beer company tried
during the competition in France’. Adidas planned a ambush marketing tactics inside the stadium by
series of ‘counter-stunts’ and intended to ‘ambush introducing a group of women wearing similar
their ambush by having our own stunts and tricks’. shirts. The women were ejected. The laws and regu-
Both companies supposedly had £20 million to lations have become more stringent (the UK has
spend on the five months up to and including the specific Olympic legislation in place to stop ambush
competition (on top of Adidas’ sponsorship fee). marketing).
 440 Part Two | Communications Tools

Unpredictable sponsorship results from an ambushed knee

‘When US skater Tonya Harding’s associates hammered her main competitor Nancy Kerrigan’s knee, they
performed a dastardly deed – which happened to boost the fortunes of Kerrigan’s sponsors, Campbell’s Soups,
for the first time in a decade. Campbell’s was also a sponsor of the US Figure Skating Association. After the
incident Campbell’s placed ads everywhere, and when Kerrigan recovered and came back to win silver
Campbell’s sales skyrocketed. Which just goes to show that no amount of planning could have produced the
publicity it received from the wounded-knee incident and the sales bump that accompanied it. Campbell’s was
even mistakenly perceived by the general public as a full-fledged Olympic sponsor in 1994, even though it wasn’t.’
Schlossberg (1996)

Now let us see what two actual sponsorship cam- s­ ponsorship to establish itself – a great example of
paigns look like: firstly, Samsung and the Science how to leverage sponsorship way beyond just a
Museum Group’s unique sponsorship of the na- match, a cup or a competition – Liberty Insurance’s
tional tour of Tim Peake’s spacecraft, and sec- sponsorship of the Gaelic Athletic Association.
ondly how a new entrant into a new market used

C A S E S T U DY Sponsoring the national tour of Tim Peake’s spacecraft

Despite the world’s fascination with space travel and what Objectives
lies beyond, it is staggering that only 24 people in the world
To inspire millions of young people across the UK by bring-
have travelled beyond the Earth’s orbit – out of them, only
ing to life the wonder of space travel, sparking a curiosity
seven have been British. The Science Museum Group’s ac-
in life-long learning. To inspire the next generation of sci-
quisition of Tim Peake’s (Britain’s first-ever astronaut to
entists, engineers and technologists.
board the International Space Station) spacecraft from the
Soyuz TMA-19M mission was an amazing opportunity for
Samsung and the Science Museum Group to address the Strategy
challenge of how to open up the subject of space travel to Create a highly interactive, engaging and inspiring experi-
as many people as possible across the UK (particularly be- ence, targeting KS3/4 students in schools with low cultural
yond the capital, where many of UK’s world-class cultural engagement rates who may be disengaged with STEM
organizations are heavily concentrated) and help them to (science, technology, engineering and mathematics) sub-
relate and engage with the science and inspiring technolo- jects. Share the experience by bringing the experience to
gies that make space travel possible. the people rather than trying to bring the people to the ex-
Samsung partnered with the Science Museum Group to perience.
sponsor this unique tour which included the Soyuz TMA-
19M capsule – complete with equipped interior and char
Tactics
marks on its outer body from its re-entry into Earth’s atmos-
phere – and is displayed along with its 25-metre diameter The ‘Soyuz Rocket Show’ was delivered in schools by the
parachute and the Sokol KV-2 spacesuit Peake wore during Science Museum Group Outreach team. Schools were vis-
his high-speed descent back to Earth. ited by an immersive Samsung VR bus (double-decker
 14 | Sponsorship 441

F I G U R E 14.2  Tim Peake, the UK’s first European Space Agency astronaut to visit the
International Space Station, wanted to share the experience with schoolchildren
to ignite their interest in space and ultimately STEM subjects

F I G U R E 14.3  Tim Peake sharing the knowledge and inspiration with schoolchildren (note the
look of amazement on one of the children’s faces)
 442 Part Two | Communications Tools

F I G U R E 14.4 The Soyuz TMA-19M c­ onversion) mirroring the inside of the International Space
Station, fully equipped with educational games and a VR
capsule with char marks on its outer body from
lounge upstairs. Students visited their local tour venue to
its re-entry into Earth’s atmosphere see Soyuz and to partake in a specially curated STEM
themed day
Accompanying the spacecraft was the unique Space
Descent VR experience. With the help of Samsung Gear VR
technology, Space Descent VR placed visitors at the heart
of Tim Peake’s historic return voyage to Earth from the
International Space Station and was voiced by the astro-
naut himself.

Actions
The logistics of this tour were carefully managed by a high-
ly trained team who knew how to liaise with schools, their
curriculum and ultimately how to inspire the children with
a once-in-a-lifetime experience. The ongoing collection of
feedback from students, teachers and institutions revealed
extraordinary enthusiasm from the children, with science
clubs increasing by 600 per cent in some cases. The na-
tional tour project was meticulously managed by a dedi-
cated project team.

Control/results
The tour and its outreach programme received overwhelm-
ingly positive feedback, with the inspirational experiences
both in and outside the museum helping Samsung and the
National Science Museum to reach diverse audiences at
levels far exceeding initial expectations.

F I G U R E 14.5  Samsung’s 360-degree immersive and interactive double decker ‘Space Descent
VR Experience’ bus visited schools to deliver Soyuz Rocket Shows
 14 | Sponsorship 443

F I G U R E 14.6 Schoolchildren learning Across seven sites:

how to make rocket fuel on a Samsung tablet ●● Over 1.2 million visitors visited tour venues across the
UK with the mid-project visitor target exceeded after
aboard the Space Descent Bus just two venues.
●● Tour venues saw increases in visitors of between 31
and 810 per cent (nearly 10 times more visitors at
Peterborough Cathedral) during the time Soyuz was
in situ.
●● The VR Lounge at each local museum venue received
43,891 visitors – a 327 per cent increase compared to
the initial campaign target.
●● The Samsung VR Bus resulted in more than 56,000
engagements in 130 days at over 90 locations including
more than 60 schools.
●● The tour had a significant impact on regional museum
partners, supporting them to connect with local
audiences like never before.
F I G U R E 14.7 The Samsung VR Bus
resulted in more than 56,000 engagements in Education outreach programme
130 days at over 90 locations including more The programme was delivered to more than 10,000 stu-
than 60 schools dents from over 60 schools. Students have displayed an
increase in STEM knowledge behind Tim’s principal mis-
sion and the desire to want to find out more.
Teachers confirmed that the outreach programme ex-
ceeded their expectations and would recommend it to other
educators. The schools expressed a desire to develop rela-
tionships with their local museums to continue to inspire
students in STEM learning.

FIGURE 14.8 On the Samsung VR Bus

 444 Part Two | Communications Tools

Marketing results F I G U R E 1 4 . 9 The bus was invited to

●● 584 pieces of coverage with an estimated reach of festivals and events around the country
over 117 million.
●● Joint national marketing campaign across all sites
promoting the activity (OOH, social, online) delivered
an estimated 37 million impressions/impacts.
●● The bus was invited to numerous exciting festivals and
events around the country, including the Bradford
Science Festival, Bournemouth Air Show, Norwich
Science Festival and the BT Young Scientist and
Technology Exhibition in Dublin, as well as to the
Houses of Parliament.

C A S E S T U DY Liberty Insurance and GAA

What is the GAA? GAA engagement and participation. These outputs under-
pinned the strategic planning and activation of the sponsor-
The Gaelic Athletic Association is the largest sporting body
ship over 18 months. LI wanted an innovative programme
in Ireland; Gaelic games are among the most-watched
that positioned hurling and camogie on an equal platform,
spectator sports in Ireland, with over 1 million people at-
and for LI to stand out in a cluttered market, bolstering the
tending matches live in any given year. The GAA has
image of Liberty Insurance (part of a global insurer) as com-
600,000 registered members and over 2,300 GAA clubs na-
mitted to the Irish market and understanding the passion of
tionwide. Every parish/community in the country has a his-
the Irish for sport, while also delivering a return on business
torically established GAA club, allowing sponsors to reach
objectives, driving sales and quote volumes.
all points in the country. Supporters of the GAA are deeply
loyal to sponsors with a high level of the population agree-
ing that they would look favourably on a brand that spon-
Objectives
sors the GAA. ●● Awareness and brand building: Drive sponsorship
awareness; deliver minimum increase in two or more
Situation analysis image statements; achieve higher consideration of
Liberty Insurance among those aware vs unaware of
In May 2013 for the first time ever in Irish sporting history, a
the sponsorship; drive social media engagement
sponsor, Liberty Insurance (LI), brought together Ireland’s
through value-added content; maximize all
two oldest field games: hurling (a male sport) and camogie (a
opportunities for PR and media exposure.
female sport) in a unique and ground-breaking sponsorship.
Part of the sponsorship planning process included qualita- ●● Acquisition and retention: To increase insurance
tive research among hurling players, camogie players and quotes and sales through the use of incentives
supporters. This research revealed key insights around the targeted towards GAA hurling and camogie clubs.
 14 | Sponsorship 445

F I G U R E 14.10 Liberty Insurance sponsorship of GAA

SOURCE: Liberty Insurance

●● Fan engagement: Deliver an enhanced fan experience ●● Awareness and brand building:
for hurling and camogie supporters through || TV, print and online creative featuring hurling/
experiential match day activations. camogie players provided a point of differentiation
●● Commercial relationships: To develop a and showcased Liberty Insurance’s shared passion
comprehensive programme to build meaningful for both sports.
relationships with brokers and commercial partners, || Live Twitter Q&As with camogie/hurling
including delivery of corporate hospitality to key players.
insurance brokers currently engaged with Liberty
|| Innovative digital and print media partnerships with
Insurance.
Today FM, Newstalk, www.thejournal.ie, the
●● Employee engagement: Increase excitement and Irish Times and the Irish Independent.
awareness among staff through the development of an
|| PR strategy ‘One Game: One Family’ was developed
inclusive employee engagement programme.
with players from both sports.
●● Acquisition and retention:
Strategy
|| GAA club affinity programme via dedicated
LI used careful audience and media research to identify a microsite.
previously untapped sponsorship opportunity and integrate
|| €50 to a nominated hurling/camogie club for every
it with PR to gain access to a traditionally difficult target
insurance policy purchased.
market. The selection of ‘the bringing together’ of Ireland’s
two oldest field games is a unique and ground-breaking || Entry for your nominated club into a draw for
sponsorship. It also complements and reinforces LI brand €10,000 with every insurance quote.
values of integrity, inventiveness and fairness. The spon- || Customer opportunities for sons/daughters to be
sorship has increased both awareness and reputation, flagbearers on match days.
driven positive engagement with Liberty Insurance and de- ●● Fan engagement – match day activations
livered a significant commercial return on investment. including:
|| Complimentary branded shuttle buses bringing
Tactics supporters to matches.
The LI approach was underpinned by an innovative cam- || Best banner and ‘supporter of the match’
paign, positioning camogie/hurling on an equal platform competitions; face painting and ice creams in
across multiple consumer touchpoints. family fun zones.
 446 Part Two | Communications Tools

|| Flagbearer opportunities for children at All Ireland || Significant social media reach and engagement
Finals and Semi Finals. across Hurling and Camogie Championships.
|| Distribution of supporter ‘Scór’ scrollers; use of ●● Acquisition and retention:
Liberty Insurance ‘blimps’. || GAA activation affected significant uplifts across
●● Commercial relationships: business metrics including acquisition, customer
|| Provision of tickets, hospitality and events to foster retention and net promoter score (NPS).
relationships with Liberty Insurance’s broker ●● Fan engagement:
partners and stakeholders. || Match day experiential activation programme
●● Employee engagement: delivered to significant percentage of supporters
|| ‘Liberty’s Big Day Out’, Croke Park’s largest ever on match days and in stadia.
sponsor-run event, for employees and families. ●● Commercial relationships:
|| Staff competitions for match tickets and mascot || Tickets and hospitality provided to a significant
opportunities. percentage of Liberty Insurance’s broker partners
and commercial stakeholders.
Action/execution ●● Employee engagement:
Careful attention to detail, staff training and project man- || 900+ employees and their families participated in
agement ensures that all aspects of this innovative spon- ‘Liberty’s Big Day Out’.
sorship programme are executed professionally, including:
LI employees benefiting from LI’s association with both 3Ms
hurling and camogie (900 employees and their families cel-
●● Men/women: The ongoing management of Liberty
ebrated LI’s sponsorship at ‘Liberty’s Big Day Out’ in Croke
Insurance’s sponsorship is maintained through a
Park, and 60 per cent of staff regularly attend matches dur-
partnership arrangement with regular meetings and
ing the Hurling and Camogie Championships).
engagement with rights holders, as well as fortnightly
Match day activation was carefully carried out to ensure
inter-agency meetings with advertising, creative, PR
all activation was carried out smoothly for: the complimen-
and social media agencies. Employee involvement is
tary shuttle buses to key fixtures; once-in-a-lifetime oppor-
important too, with over 50 per cent of Liberty
tunities for children to be flag-bearers at the All Ireland
Insurance employees directly engaged in the
Hurling and Camogie Finals; and contributing to the drama
sponsorship, entering competitions, attending
and theatre on the day with ‘best banner’ and ‘supporter of
matches, participating as flag bearers and other
the match’ competitions.
related events. The sponsorship is activated through
Several selected players were encouraged to tweet.
internal communications and ongoing face-to-face
briefings including opportunities to have photographs
Control/evaluation taken with the All Ireland Hurling and Camogie
●● Awareness and brand building: Trophies. Staff are actively encouraged to participate
in live Twitter Q&As with match players.
|| Increased sponsorship awareness among GAA
fans. ●● Money: The sponsorship fees and the budget for
promoting the sponsorship across a range of tactical
|| Uplift achieved across six brand image attributes.
tools and channels are not available for release at this
|| Established a substantial consideration gap (aware point in time.
vs unaware).
●● Minutes: A five-year partnership with the GAA and
|| Considerable PR and media exposure. Camogie Associations was announced in May 2013.
 14 | Sponsorship 447

F I G U R E 14.11 Liberty Insurance sponsorship at work

SOURCE: Liberty Insurance

Key points from Chapter 14

●● Almost anything can be sponsored. ●● Think global, but act local (today’s satellite
●● Almost any target audience can be reached communications may highlight a sponsorship
through sponsorship. programme that is acceptable overseas but
unacceptable at home and vice versa).
●● Choose sponsorship programmes carefully, and
separate the initial excitement from the ●● Budgets should be secured to leverage the
numerical analysis. programme and maximize impact through other
communications tools.
●● Sponsorship can provide a cost-effective
marketing communications tool, satisfying a ●● Keep employees informed. Sometimes getting
range of different objectives. them involved increases the leverage.
●● Maximize leverage by integrating sponsorship ●● Run a small pilot scheme, if possible, to iron
with other communications tools. out any teething problems.
●● Sponsorship does not have total control over ●● Beware of ambush marketing.
the message. Have contingency plans in case
things go wrong.

References and further reading

Atkinson, S (2007) Why just a logo is now a no-no, Colitt, R and Garrahan, M (2001) Nike finds Brazil
BBC News, 21 June deal a bad fit, Financial Times, 12 January, p 19
Boshoff, A (1997) World Cup’s battle of the boots, Collett, P and Fenton, W (2011) The Sponsorship
Daily Telegraph, 4 December Handbook, Jossey-Bass
 448 Part Two | Communications Tools

ESA (2015) European Sponsorship Association, ESA Rosen, W and Minsky, L (2011) Six steps to
DIPLOMA 2015 (Study notes – module one, successful sponsorships, HBR Insight Center
section 1.8.1) Marketing That Works, July 28
Ferrand, A, Torrigiani, L, Camps, I and Povill, A Schlossberg, H (1996) Sports Marketing, Blackwell,
(2007) The Routledge Handbook of Sports Oxford
Sponsorship, Routledge Shani, D and Sandler, D (1989) Olympic sponsorship
Georgiou, S (2018) Barclays extends league versus ambush marketing, Journal of Advertising
sponsorship deal, SportsPro, 16 November Research, August/September
Giles, C (1991) Business Sponsorship, Butterworth- Shank, M (2002) Sports Marketing: A strategic
Heinemann, Oxford perspective, 2nd edn, Prentice Hall, Englewood
Head, V (1981) Sponsorship: The newest marketing Cliffs, NJ
skill, Woodhead-Faulkner, Cambridge Sports Illustrated (2018) Ranking the Top 10 Athletes
IOL (2006) The year of golf in space, IOL, 7 December by Endorsement Income for 2018, Sports
Jefkins, F (1991) Modern Marketing Illustrated, 19 September
Communications, Blackie & Son, London Thomaselli, R (2006) Dream endorser: Tiger Woods
Klein, N (2000) No Logo, Flamingo, London as a giant of marketing ROI, Ad Age, 24
Lusbec, K (2015) Adidas all in with Bayern Munich September
until 2030 for €900m, Football Marketing XI, Turner, S (1987) Practical Sponsorship, Kogan Page,
30 April London
Mitchell, A (1997) Sponsorship works, Marketing WARC (2005) Coke pours $500 million into soccer
Business, September sponsorship, 24 November

Further information
Business in the Community Ofcom
137 Shepherdess Walk Riverside House
London N1 7RQ 2a Southwark Bridge Road
Tel: +44 (0)20 7566 8650 London SE1 9HA
www.bitc.org.uk Tel: +44 (0)300 123 3000
www.ofcom.org.uk
European Sponsorship Association (ESA) Office
Suite 130
61 Victoria Road
Surbiton
Surrey KT6 4JX
Tel: +44 (0)20 8390 3311
https://sponsorship.org/
 449

15
Content marketing
and other sales
promotion
LEARNING OBJECTIVES
By the end of this chapter you will be able to:
●● understand the variety and importance of content marketing and sales promotions;
●● explore the process of creating and distributing content marketing;
●● discuss the difference between strategic sales promotions and tactical sales
promotions;
●● separate brand-enhancing sales promotions from brand-diluting sales promotions;
●● grasp the emergence of gamification as a potent sales promotions tool;
●● integrate sales promotions with other elements of the communications mix;
●● avoid the typical costly trial and error;
●● embrace creativity, amidst the vast range of collaborative opportunities.

Content marketing 450 Managing sales promotions 470

What is content marketing? 450 Situation analysis 470
Objectives 470
Managing content marketing 450 Strategy 472
Situation 450 Tactics 473
Objectives 453 Actions 473
Content marketing strategy 454 Control 474
Tactics: Creating, promoting and distributing
content 454 Sales promotion, ads, AR, engagement and
Actions 460 gamification 474
Control 462
Advantages and disadvantages 483
Sales promotions 462 Advantages 483
Successful promotions 462 Disadvantages 483
Sales promotions consumers = Skinner’s rats vs
Pavlovian dogs? 463 Key points from Chapter 15 484
Unsuccessful promotions 464
Creative sales promotions 466 References and further reading 484
Gamification 467
Further information 485
 450 Part Two | Communications Tools

Creativity, aesthetics and graphic design are impor-

Content marketing tant. See also how Zip World seeded a few stunning
photographs with influencers to deliver a massive
Content marketing is a type of sales promotion boost in sales (p 611).
where the gift or prize is content marketing. We will
explore more traditional sales promotions like com-
petitions, gifts and prizes in the second half of this
chapter. But first let us explore one of the hottest Managing content
topics in marketing today: content marketing. It has
become a major part of most organizations’ mar- marketing
keting efforts today. It can be a source of competi-
tive advantage. It can also be a waste of time and
effort. So let’s explore the best practice.
Situation
Content marketing is part of CX
What is content marketing? If more than 85 per cent of Google searches were for
useful information and only 10 per cent of searches
Content marketing includes videos, webinars, info- were for products and services (Toll, 2014), it fol-
graphics, PowerPoint slides, tweets, posts, posters lows that producing good quality marketing content
(memes), articles, speeches, white papers, books, will satisfy searchers’ needs and give them a good
games, VR and AR experiences to help customers to customer experience (CX). Note this excellent qual-
fulfil their own needs and goals. Content should in- ity content also satisfies some of Google’s SEO
spire; entertain; educate; inform; help; reward ­criteria, which requires relevant high-quality ­content
(Meaningful Brands, 2019). that people like (and engage with) across multiple
The content marketing process involves research- platforms. Some brands, like Red Bull, make con-
ing, creating, promoting, distributing high-quality tent marketing a major part of the brand experience.
content at the right time and in the right place and Content marketing is now a significant part of
then measuring its effectiveness. See the range of the CX as you help them along their journey.
content in the content pyramid (Figure 15.1).
Surprisingly, a well-produced printed book (with
excellent graphics and production value, and assum- Content challenge
ing good content) is top of the content pyramid (if Can you deliver a stream of relevant added-value
its content is relevant to the target market). content that your customers will appreciate? Can
you do this better than competition? Can you deliver
it in real time – just when they need it and where
F I G U R E 15.1 The content pyramid they need it? Customers are drowning in a sea of
content – some good and some bad. Customers’ abil-
ity to consume content is finite because there are
only so many hours in a day to read/watch/listen,
Hi

Books
gh

even to really interesting content. Meanwhile, com-

eff

petitors are churning out content – some good and

or

eBooks
t&

Surveys some bad.

ra

White papers Nine out of 10 consumers expect brands to deliver

re

Infographics, Video, content, but consumers think 58 per cent of content

Webinars, Slideshows, from brands is irrelevant (Meaningful Brands, 2019).
Photos
Lo

In fact, most customers wouldn’t care if most brands

w

disappeared forever. Havas Meaningful Brands

eff

Web/blog content
or

Twitter, Facebook, Pinterest Report 2019 reveals that customers couldn’t care if 77
t&

per cent of brands disappeared (3 per cent higher than

fre
qu

the 2018 report). So, why should they bother reading

en

Curated content
your content? Brands seen as meaningful and viewed
t

as making the world a better place have seen their

SOURCE: Adapted from curata.com
 15 | Content Marketing and Other Sales Promotion 451

F I G U R E 15.2 Content wars rage while customers drown in a sea of content

wallet share multiply by 9, and see a 24-point greater may try to reach a broader audience via paid media
purchase intent (Sweeney, 2019). (sponsored posts or tweets or messages). This makes
it even more difficult for the other companies’ con-
Content wars tent to be effective. The biggest budgets may prevail
by promoting heavily their content against yours.
Mark Schaefer (2014) describes this as the ‘content
shock’ when ‘At some point, the amount I am “pay-
ing out” will exceed the amount I am bringing in
and at that point, creating content will not be a Hyper-competitive content marketing (cars
smart business decision for me and many other compete with Red Bull and Coca-Cola)!
businesses.’
We may have to pay customers to read our con- ‘Honda plans future models 10 years in advance
tent! In fact, we already are (indirectly as we spend, but it is now having to think about how it creates
say, six hours writing a blog post at a nominal cost content that vies for attention against content
of £100 per hour = £600 spent producing the
powerhouses like Red Bull and Coca-Cola.
piece!).
Meanwhile, the likes of Tesla (with electric
cars), Dyson (which is set to enter the
automotive market in the next two years) and
‘Lowering the barrier of content creation to Amazon (with its test-driving partnership with
near-zero has contributed to an exponential rise Volvo) are changing the way the automotive
in content production, making it more difficult industry works entirely.’
than ever to gain attention and engagement.’ Hammett (2018)
Buzzsumo

Loyalty and emotion disappearing?

Big budgets might win the content Mark Schaefer (2019b) recently observed that
war ‘Research by McKinsey and others shows the reason
Some competitors will pay to promote their con- people feel disconnected or even distrustful of brands
tent. If their regular audience fails to engage, they is because there is a lack of emotional c­onnection
with the company and its products’. This creates an
 452 Part Two | Communications Tools

opportunity to create powerful, emotional, content,

to help brands build relationships again. Fully 87 per Tommy’s Tent Company identify needs
cent of our customers ‘shop around’ now (Schaefer,
2019a). Tommy has a tent company and wants to be on
YouTube. So he visits all of his competitor sites and
analyses all the comments/discussions to identify
what are people concerned about when buying
Content is an area where most marketers are tents. He discovers customers are concerned
failing, according to the report. Consumers about whether the tents are (a) as big and (b) as
expect relevant, personal content from their fully waterproof as claimed by many tent
favourite brands, but brands are missing the companies. Tommy’s research also reveals that the
opportunity to engage them in a meaningful way typical customer is new to camping.
that builds loyalty. What should he do next?
Schaefer (2019a)
●● Tweak website copy – spelling out size and
water-resistance of his tents.
●● Website copy may not be enough – video a tent
Content research outside during a rain storm and film a product
Mission and brand values video inside (big and waterproof).
An organization’s choice of content (‘content strat- ●● Not too ‘sales-ey’ – all practical and authentic
egy’) is influenced by its mission, its brand values
(and add some tips).
and brand personality and also what your custom-
ers want or would value, that your competitors do His video isn’t focused on technical details. These
not currently create. can be addressed elsewhere if more experienced
Content research involves looking at trends, cus- campers need this information.
tomer needs, direct and indirect competitors to see
who is producing what content, which content
works best, and most importantly, are there any
gaps in the market where your brand could become Audit existing content
the expert source? Most organizations already have a lot of marketing
content (market research, white papers, presenta-
Magic marketing formula (for content) tions, speeches, articles, videos, photos, graphics, as
The magic marketing formula we introduced in well as social media content). Some potential con-
Chapter 1 also works for content marketing: IRD tent is less obvious but nevertheless easy, such as
(identify customer content needs; reflect those needs book reviews (if written by the CEO). FAQs col-
(or solutions) in the content name; and deliver the lected by customer service teams can be a rich source
content at the right time and in the right place. of content recreated into ‘10 most popular ques-
Talk to customers, ask them what would help tions’, ‘10 questions you’ve got to answer’, ‘10 rea-
them, inform them, inspire them, entertain them, sons why’ or ‘10 things you’ve got to know’. These
etc. Ask them what would they really like. Also, can be converted into quizzes with multiple answers,
search your own and your competitors’ reviews, or self-assessment widgets. Speeches – record them
comments, complaints, FAQs and anywhere cus- and then edit them into shorter clips. Slide shows –
tomer concerns might exist. Then search more share them on SlideShare. Re-use the graphics. Work
widely for questions relating to your product/ser- out what customers need first, then create a content
vice’s features and benefits. Identify customer con- plan and calendar and deliver it. Being creative is
tent needs. You might be pleasantly surprised to great, but it has to be relevant/interesting to the cus-
find that you already have the basic answers to tomer. One problem remains. Most customers do
these questions. They just need to be produced with not fully know what they want nor what they might
nice graphics or on video, etc. like in the future (as they cannot imagine it).
 15 | Content Marketing and Other Sales Promotion 453

Audit your current content to see what works 4 If you are a leader in a saturated niche, more
best. Compare with your competitors’ content to content might create content shock for
see what works for them. Look out for content
competitors.
gaps, particularly if there’s nothing already on
YouTube on this topic. Companies like Buzzsumo, 5 Identify topics before they become saturated –
Compete, Crawlytics, Hitwise and SimilarWeb ana- build authority, reputation and trust early and
lyse what content works best for your competitors quickly.
(or you can do this research yourself) and they also Schaefer (2018)
benchmark your customer acquisition strategy
against competitors.
Your choice of content (‘content strategy’) will
also be influenced by your mission, your brand val-
Schaefer’s four unsaturated niche
ues and brand personality and also what your cus-
tomers want (or would value), that your competitors guidelines
don’t currently have.
If in an unsaturated niche:

1 Create core evergreen content.

Perhaps you already have some great content,
2 Develop authoritative content.
but in the wrong format; or maybe it’s just not
easily findable on the site. 3 Increase quality content publishing schedule.
Chaffey and Smith (2017)
4 Build content promotion competency.
Schaefer (2018)

Content shock
Content shock (content saturation) will occur in
your market at some point. You need to recognize You can see content shock when more and more
when it does and consider stopping or varying your content is released/published (by everyone) and less
approach to publishing this content (see below). and less engagement occurs. When the two graphs
Here’s Mark Schaefer’s explanation: ‘As content be- meet, content shock occurs. Schaefer’s content
comes saturated, it will be more difficult to break shock has a common pattern: as the volume of
through the noise. The cost of competing will rise posts/articles/content (blue bars) about, coinciden-
due to the need for better content and paid promo- tally, the topic of ‘content marketing’ grows
tion. Content engagement levels will fall. Some will (Figure 15.3), the average number of shares/engage-
be squeezed out of the content marketing option ment declines (black line) well before ‘content satu-
when costs outweigh benefits’ (Schaefer, 2018). ration’, ie when the number of articles peaks.

Schaefer’s five content saturation Objectives

implications Content marketing objectives
Think carefully about what you are trying to achieve
If entering a saturated content market:
with your content marketing. Is it to: inspire; enter-
1 Create radically different and exceptional tain; educate; inform; help; reward? Look at it from
content. the customer journey point of view – is it to build
awareness, consideration, preference, sales and after
2 Discover specific niches or networks (eg that, strengthening post-sales relationships?
LinkedIn or YouTube) where content is still Some content is better for certain tasks. Figure 15.4
gaining traction. shows Dave Chaffey’s Smart Insights content matrix,
3 Promotion and amplification are critical which shows which content type supports the objec-
(including paid ads). tives of: entertain, inspire, convince and educate.
 454 Part Two | Communications Tools

F I G U R E 15.3 Articles published on content marketing and average shares

200 10,000

160 8,000

Content published
120 6,000
Shares

80 4,000

40 2,000

0 0
Jan ‘15 May ‘15 Sep ‘15 Jan ‘16 May ‘16 Sep ‘16 Jan ‘17 May ‘17 Sep ‘17
Content Published Avg shares
SOURCE: Buzzsumo

Content marketing strategy Tactics: Creating, promoting

The content marketing strategy summarizes which and distributing content
kind of content topics will be delivered via which
type of content format across which platforms over Story-telling
a sequence or series of trigger points. The choice of High-quality story-telling that helps brands to be
a particular topic is informed by the content re- meaningful to their audiences start with a deep un-
search already carried out. ‘Content pathways’ will derstanding of the brand, its relationship to the so-
also be developed so that when prospects show in- ciety or culture, plus an interesting market insight
terest in a particular piece of content, they automat- (which some call ‘an informed idea’). If a brand
ically get sent (or given access) to another, even truth ‘intersects’ with a cultural truth there lies
more relevant, piece of content. some potential. The ‘Fearless girl’ story by State
See how Red Bull has strategically developed Street Global Advisors (SSGA) focuses on a statue
their content to create a distinct competitive advan- of a young woman facing the famous Charging Bull
tage and grow their audience/fans and ultimately statue on Wall Street, New York. A duplicate statue
customers on p 239. has since been brought to London.
As Bruce Henderson (2018) says, this may have
Source of competitive advantage all came from an insight that had to do with one or
more of the following:
It is worth considering whether content marketing
could be the lead component in your digital market- ●● Very few public companies have enough
ing strategy (eg Red Bull and Kelly HR), but re- female senior leaders.
member it’s competitive out there and there’s a lot ●● SSGA introduced the SHE fund, an ETF
of other content competing for your customers’ (exchange traded fund) that tracks firms that
shortened attention spans. have women in senior leadership roles.
●● The charging bull is a symbol, and a very
male symbol, of Wall Street.
 15 | Content Marketing and Other Sales Promotion 455

F I G U R E 15.4 Content marketing matrix

Awareness Purchase
Emotional

IN IN
RTA SP
E IR
T E
E N
COMPETITIONS CELEBRITY
WIDGET ENDORSEMENTS
QUIZZES

VIRALS
GAMES

COMMUNITY
BRANDED VIDEOS FORUMS REVIEWS

ARTICLES EBOOKS ENEWS EVENTS RATINGS

PRODUCT
FEATURES
INFOGRAPHICS CASE STUDIES
PRESS RELEASES DEMO VIDEOS

INTERACTIVE
DEMOS
CHECKLIST DATA SHEET
&PRICE GUIDE
TREND REPORTS
GUIDES
Rational

REPORTS
ED

CE
AND W/PEPES WEBINARS
U

N
CA

CALCULATIONS
VI
N
TE

CO

SOURCE: Courtesy of Dave Chaffey Smart Insights

Therefore the ‘Fearless girl worked so well because it great brand experience tend to have, Henderson sug-
acknowledged the tension inherent in those thoughts, gests, three things in common – they are:
and used that tension and the resulting execution to
●● simple;
spark and shape a brand story that quickly spread
around the world’ (Henderson, 2018). Great stories ●● moving (emotional);
that make great marketing content that delivers a ●● original.
 456 Part Two | Communications Tools

F I G U R E 15.5 Fearless girl

When these three variables come together, you’ve away from and share about the experience will be
got a story that is memorable. clear and consistent with its intention.
Henderson (2018)
And since brands, and therefore brand narratives,
are built on memory structures, it’s imperative that Emotional stories simply have more impact, be-
we create things that are memorable and worth come more easily tied to our memories and are
talking about. Simplicity of an idea and execution – more likely to be shared. Lastly, people tend to re-
particularly when featuring uncluttered, member and share things that are new or novel, so
recognizable visual elements of a brand’s identity – creating work that is original – ie hasn’t been done
makes the idea or execution easier to remember. It before, or done before in that context can also in-
also increases the likelihood that what people take crease the likelihood that it will be remembered and
 15 | Content Marketing and Other Sales Promotion 457

shared (Henderson, 2018). Food blenders have been Leverage content

used to blend difficult types of food, but never to
Your marketing and advertising team probably have
blend an iPhone or an iPad; when Blendtech started
a lot of material that they can share on Instagram,
blending in this context they generated 6 million
Pinterest, YouTube, Vimeo, Facebook and LinkedIn.
viewers for each video they produced.
Sharing advertising ­ collateral and any marketing
See checklists for great story-telling techniques in
content in an organic way simply gets you ‘more
the actions section, p 461.
bang for your buck’ (eg PR photos with an added
caption).
Content calendar A blog post’s key points can be broken into
A content calendar is used to schedule what content many tweets, etc. Images can be re-used in many
will be published in which month, week or day. ways. You leverage, across many tactical channels,
Some calendars also specify type of content (post, the assets you invested in and created (rather than
video, infographic, eBook, webinar, etc). Relevant leave them gathering dust). See the Kelly HR exam-
key phrases that can be used to optimize the content ple on p 475. NB Some content is better for certain
and url links are sometimes added. Organizations tasks. See Dave Chaffey’s Smart Insights content
adopt their own calendar style, some with a lot matrix p 455.
more detail than others. Any speeches, presentations, articles can also be
leveraged across many channels. Sift through your
Personas marketing collateral. Among these assets, you will
Don’t forget to create personas for content market- find components that need polishing or some com-
ing (in the same way you do for any communica- ponents that just need a caption or developing into
tions, PPC, etc). This helps you to write much more Memes/posters and then release them in an organ-
relevant content as it’s aimed at real people (perso- ized process (or schedule).
nas). See p 596 for more on personas. See Kelly HR (p 475) for a full case study of how
a team of two generated content from one piece of
research to fuel content for books, blog posts,
Frequency of content tweets, infographics, events, videos, public talks and
Once a day or once a month? Firstly be consistent. a lot more. It all went global and connected with a
More than once a day might be too much – it very specific universe of HR directors.
­depends on what market you are in. It is worth Remember, some content is better for certain
being consistent with the type and style of content. tasks (or objectives).

Red Bull
Content size: Short or long?
Red Bull released an 81 minute movie, Where the
If we all just followed best practice and never Trail Ends. This was after they had sponsored Red
tested the alternatives then all content Bull Stratos – Mission to the Edge of Space, and
marketers would still be creating blog posts that Supersonic Freefall parachute jump, which was
were exclusively between 500 and 750 words made into a TV documentary complete with photo
long… Data and science have since shown this gallery, video gallery and media tour.
to be nonsense. Our research with Buzzsumo
proved that the most effective posts in any B2B
sector are over 1,000 words long – and that the
most influential posts of all tend to be over 2,000 Content deletion
words long. And contrary to the perceived Reviewing and removing out-of-date content is
wisdom, audiences have no problem never going to be as exciting as creating and publish-
concentrating on something for longer periods – ing new content. Getting involved in a project to cre-
providing it’s interesting. ate a marketing video is always going to be more
Miller (2018) interesting than writing a clear and easy to follow set
of instructions on how to install a product. In most
 458 Part Two | Communications Tools

F I G U R E 15.6 Red Bull: Mission to the Content distribution and promotion

Edge of Space. Red Bull’s content supports Content distribution can be as important as the con-
both what their customers want and their tent itself. There’s no point creating great content if
nobody sees it. You may have to spend more on pro-
brand values moting the content than on creating it. Great quality
content can deliver low-cost visitors and conversions
but it may also be worth pushing your best content
via paid media (eg sponsored posts and ads) as they
can generate additional conversions (albeit more ex-
pensive). It is worth testing and subsequently blend-
ing. In fact, you need to test and blend both to find out
what is the best way of distributing your best content.
Social media management dashboards like
Hootsuite can help schedule content publishing
across most social media platforms each week or
each month. It also gives access to comments and
discussions.

Seeding influencers
Seeding, ie sending content to influencers like tradi-
tional journalists and other influencers (both social
media influencers and micro-influencers), is still
­important.

Warning: Influencer fraud

and fake followers

‘While many marketers intend to increase their

budget for marketing content and most
marketers plan to increase spend on influencer
marketing, there are increasing worries about
SOURCE: Red Bull influencer fraud (fake followers). Some industry
experts (including Unilever) insist that tighter
organizations, those who sell and market are the regulations are required. A Unilever speaker at
‘creatives’ and the stars. Those who service and sup- Cannes Lions 2018 went on to say: “the market
port are outsourced and ignored. Many marketers gets undermined if people don’t trust the
and communicators find it really difficult to give amount of followers someone has”. Unilever
control to customers because that means giving up now refuse to work with influencers who buy
control. The indomitable Gerry McGovern (2018) followers and will prioritize influencer partners
nails it once again in his article ‘Keeping digital
who increase their transparency.’
teams happy versus keeping customers happy’.
Marketing Week Reporters (2018)

Content outsourcing
Work can be commissioned to external writers.
Equally interesting external content can be curated Staff and partners promote content
and shared (as long as it adds value to your followers Passionate staff (and partners, resellers and suppli-
and doesn’t compete with your product or service). ers) often like to share your content to their own
 15 | Content Marketing and Other Sales Promotion 459

networks too. Software like GaggleAMP gives staff This can be quite powerful for any company.
and partners the ability to share and engage with Imagine Avon (see p 279) with their 50,000 sales
your content from one easy-to-use, intuitive plat- people or 50,000 micro-influencers selecting, post-
form. Staff are rewarded for sharing as every action ing, or sharing, really interesting content to their
earns points, which earn rewards – a form of gami- networks.
fication which helps staff to start sharing, and even
more importantly, to stay sharing over time. Staff Content distribution matrix
can opt in to a leader board league table that is au-
tomatically updated and published. The content distribution matrix (Figure 15.7) will
help you to decide how to promote/distribute

F I G U R E 15.7 The content distribution matrix

HI
M

G OW
U
L OI

H
L
VO R

VO RO
LU I
W W
LO LO

M
E
Investment (Resource needed. ROI decreasing)

LINKEDIN PROMOTED
POSTS

ADWORDS GENERIC
INFLUENCER PR

INTEGRATED
CONTENT
FACEBOOK CAMPAIGNS
FACEBOOK PROMOTED FBX MEDIA RELATED PR
CUSTOM POSTS RETARGETING
AUDIENCES

SEO GENERIC ADWORDS ORGANIC

SPONSORED
TAIL REACH ADWORDS
TWEETS
PLA

ADWORDS
ADWORDS SEO LONG TAIL
REMARKETING
MOBILE (ENHANCED
CAMPAIGNS) BLOG MARKETING
LO HI

I E
RO M
W GH

INSTAGRAM
H LU
VO R

IG O
H HV
LU OI
M

IG

ORGANIC REACH
E

ORGANIC REACH
H

Effectiveness (Potential lead or sales volume)

SOURCE: Chaffey (2015)
 460 Part Two | Communications Tools

your content. This infographic is aimed at helping

marketers to review the effectiveness of different Schaefer’s checklist for improving content
types of paid, owned and earned media to pro- marketing’s emotional impact
mote or distribute their content in generating site
visits, leads or sales, compared to the level of in- 1 In most company content, I don’t know who is
vestment in applying the media measured as paid producing it. Where is the author? I want to
media costs, or the costs of marketing team mem- see a human face.
bers.
2 Stop using stock photos. Show real people and
Note each business and sector may find some
content far more effective than others. their smiles. When you use stock photos, the
Plot each media type (paid-owned and earned message you convey is ‘even we don’t care’.
media options) on the horizontal axis – based on 3 Nobody cares about the arc of your story.
each option’s effectiveness in generating leads or Content that connects in an emotional way
sales from a low number of leads on the left to the must put the customer at the centre. Make the
highest number of leads on the right. Then con- customer the hero.
sider cost effectiveness on the vertical axis (lowest
cost at the bottom to highest at the top). The long- 4 Most corporate content isn’t native to a normal
tail SEO (bottom right quadrant) is one of the content stream. For example, you can almost
most effective techniques since it produces a high always spot a sponsored post on Instagram
volume of leads or sales at relatively low levels of because they just don’t fit in. Take care to craft
investment, as opposed to LinkedIn promoted content that appears natural and native to the
posts with a relatively low level of volume and social stream.
highest costs.
Now review all of the paid-owned and earned 5 Even company content must be in a human
media options, particularly those you aren’t using at voice. Not a legally approved human voice. A
present. Consider how they might contribute. Then real human voice.
test your hypothesis and revise your mix of distri- 6 Humans are friendly, approachable and even
bution channels accordingly. Decide what channels vulnerable. How about your content? Oh yes,
you want to trial and test. Set up a schedule. Don’t
our human friends admit it when they make a
forget to consider (and test) new content partners
mistake.
(including IoT).
7 Brands should be exploring new ways to tell
stories. A blog is a blog is a blog. How do you
Actions tell a story in a way where the format is as
conversational as the content?
Internal marketing
Ensure all staff know about your content marketing 8 Stop selling. Start helping.
and why it is important to share as widely as pos- 9 If somebody came to your store, would you ask
sible. Involve staff. Perhaps even staff-generated for their email address before they enter? Treat
content can be part of the overall strategy. people online like you would treat them offline.
Why not ask your partners, resellers and suppli-
That includes ending pop-up ads. Stop doing
ers to spread your content? GaggleAMP alerts these
what people hate.
groups every time you post, makes it easy for them
to share and rewards them for sharing. It also inte- 10 The economic value of content that is not seen
grates with marketing automation systems, and and shared is zero. Are you developing a
costs $100 pcm if you regularly post content (or less competency in content transmission? Content
if you are infrequent). must enter the conversation to work.

11 There is a difference between personalization

and personal. Personalization is an expectation.
Personal creates emotional impact.
 15 | Content Marketing and Other Sales Promotion 461

12 Content should be viewed with the same

Call to action in all content marketing
esteem as your company’s products. It’s not just
sales propaganda. It should be good enough to
be a stand-alone product that customers look Check that every piece of content has a call to action
forward to receiving. If you can’t meet that – whether it is just sign up for a newsletter or for email
standard of quality, you’ll certainly fail in this alerts of special offers or new content. It doesn’t have
era of overwhelming information density. to be to make a sale. In fact, content marketing is
Schaefer (2019a) good at building awareness and relationships, not for
hard sales, although several content marketers do ask
if you would like a call from a salesperson.

Story-telling checklist

1 Is it simple, moving and original? Think like a publisher

2 Would you remember this experience? You have to think like a publisher, discover hot top-
ics that are not well served by competitors, brain-
3 Would you talk about it? storm, create content concepts, select the best ones,
produce them, distribute them and measure their
4 Would you share it with someone else?
impact. You need a team that looks like an egg timer
‘If the answer to these questions is “maybe” or (large at the start, thin in the middle and large at the
“no,” chances are the work isn’t good or bold end – see Figure 15.8). A cross-functional group at
enough to create meaningful impact.’ the beginning (for brainstorming), then a small edi-
Henderson (2018) torial team and small production team to produce
the content, and finally a large team mobilized
(staff, distributors, retailers, influencers) to help the
promotion distribution (and engagement).
Figure 15.8 shows many staff can help with
Content brand experience checklist brainstorming new content ideas, then a single edi-
tor decides and manages production and then all
1 Be useful – people appreciate things that make staff are invited to help share the new content.
their lives easier or better.

2 Be human – treat people as human beings, not F I G U R E 1 5 . 8 The ‘staff egg timer’
as targets or demographics.
(many staff contribute during brainstorming;
3 Invite participation – physical engagement has then reduce staff during production, and
been shown to increase mental engagement
and memorability. then many staff help distribute content)
4 Be shareable –create things that are worth
sharing, and make it easy to do so. staff
5 Build community – give people opportunities to
connect with each other in both physical and
digital places. Human beings thrive on
connection and community.

‘People will also have more positive experiences staff

with brands if we do all 5.’
Henderson (2018)
 462 Part Two | Communications Tools

Control ●● Do you know what successful content

Measuring content marketing’s marketing looks like?

effect ●● Do you document your content marketing

Content marketing should be designed so that it is strategy (topics, formats, sequence)?
easy to measure its impact (is it driving traffic, or is ●● Have you got an editorial mission statement?
it boosting newsletter subscriptions, trial requests,
enquiries or sales?). Make sure each piece of con- ●● Are you telling everyone what’s coming up?
tent has direct links to the correct landing pages so
it becomes easy to measure the effectiveness of your
content. Build ‘content pathways’ so that when
prospects or customers show interest in (open) a
particular piece of content, they automatically get
Sales promotions
sent, or are given access to a link, to another even Sales promotion is big business. In fact, it has tradi-
more relevant piece of content. Finally, content tionally been bigger than advertising in the UK. And
should also have feedback mechanisms that allow if content marketing is included as well as gamifica-
the audience to give direct feedback, comments, rat- tion multiplied by VR and AR, then you can see
ings or discussions. why sales promotions is going to continue to grow.
Brand activation and customer engagement are
two big buzz words in marketing, as is content
­marketing.
Is there a pulse? Sales promotions, premiums, incentives and
motivation schemes are used for both products and
Watch open and click rates to see if there’s a services in consumer and business-to-business mar-
‘pulse’ – ie whether the content is connecting and kets. There are three main categories:
resonating.
●● customer promotions (premiums, gifts, prizes
and competitions, eg on the back of
breakfast cereal boxes);
Content marketing can be a major component in ●● trade promotions (special terms, point-of-
your communications strategy. But in a hyper-­ sale materials, free pens, diaries, competition
competitive environment you need to have pro- prizes, etc);
cesses in place to identify what’s needed, produce ●● sales force promotions (incentive and
it, release it and monitor which kind of content motivation schemes; see p 340 for an
works best. explanation of how these become a form of
For more on measuring content marketing, psychic income).
watch the video ‘Measuring the effectiveness of con-
tent marketing’ by Erin Robbins O’Brien in an
interview with Steve Farnsworth of the Steveology Successful promotions
group, posted on http://prsmith.org/blog/. It really Whether they take the form of competitions, price
puts marketing content and analytics together reductions, free gifts, coupons, samples, special dem-
very nicely. onstrations, consumer sales promotions tend to affect
the later stages of the communications and buying
process (see Chapters 4 and 5), ie they trigger action,
such as a purchase or increased usage of a particular
brand. Whereas advertising tends to a­ ffect the earlier
 15 | Content Marketing and Other Sales Promotion 463

F I G U R E 15.9  Watch the video ‘Measuring the effectiveness of content marketing’ by

Erin Robbins O’Brien at http://prsmith.org/blog/

stages, such as awareness, interest and desire (there coupons, posting application forms, trying a free
are exceptions, particularly where direct response ad- sample, etc) are a form of ‘operant conditioning’
vertising is concerned). Content marketing is often (demanding active engagement), as demonstrated by
used, particularly in B2B markets, as a sales promo- Skinner’s rats (see Chapter 4, p 141). Advertising, on
tion to identify and build a list of prospective custom- the other hand, is thought by some to help buyers to
ers by collecting an email address, in return for giving learn and remember brands and their benefits by re-
the gift of content. However, sales promotions are an peating the message and building associations be-
expensive way of generating awareness and need to tween brands, logos, images and benefits, a form of
be supported by advertising, PR and social media. classical conditioning as demonstrated by Pavlov’s
Sales promotions are often action orientated, particu- passive dogs’ engagement (see Chapter 4, p 140).
larly as they can tempt the buyer to buy, or at least Well-thought-out sales promotions that embrace the
try, a product or service. These kinds of promotions brand values and deliver real customer benefits can
often provide the final nudge that moves a customer be enormously successful. Promotions should
towards making a purchase. strengthen or add value to the brand image.
These types of promotions build ‘consumer fran-
chise’. This means that the gift is in some way
Sales promotions consumers = related to the brand, its image or its properties.
Skinner’s rats vs Pavlovian dogs? Franchise-building promotions contrast with price
and discount offers, which can dilute brand values
In terms of learning about brands and learning to and do not enhance brand loyalty, despite boosting
use them frequently, many sales promotions, and the short-term sales. See ‘Packaging with added value
engagement they create (by filling in forms, c­ ollecting on-pack promotions’ p 583).
 464 Part Two | Communications Tools

that are relatively ineffective, and some are actually

Free Ladas boost football club sales by damaging in terms of branding, sales and cash flow.
36 per cent

After several seasons of declining gates, Russian

football club Zenit used a simple sales promotion to
Warning: Continued price promotions can
boost attendances up to 26,000. Entry costs 1.5 damage brands
roubles and tickets for the Lada car lottery cost 1
rouble. Ladas cost 8,000 roubles (equivalent to Price promotions such as discount vouchers, two
three years’ salary for the average industrial for the price of one, a free extra 10 per cent can
worker). The biggest roar of the evening comes not help to boost sales in the short term, but what do
as the two teams run out on to the pitch but when they do to the brand in the long term? Discount the
the three cream-coloured Ladas are driven on to price and you discount the brand down to a point
the running track. The opportunity of winning a where it loses its brand value and competes solely
Lada just pulls in the crowd. Whether it builds the on price (which is not a protectable competitive
brand’s franchise is another question. advantage, unless you have massive scale).

Unsuccessful promotions Warning: Temporary boost reduces

subsequent sales
Many sales promotions fail for two reasons: 1) they
have no link to the brand values and long-term
Some promotions create a temporary boost in sales
branding; 2) a lack of attention paid to detail, so
followed by an immediate drop, as customers who
problems emerge, such as fulfilment (eg pubs and
bars find SMS promotions offering money-off initially bought and stocked up on more product
vouchers to be labour-intensive, since staff have to then stop buying until they have used up their extra
be trained). See ‘Disaster promotions’, below, for stock (as shown in Figure 15.10). Other promotions
major disasters by, surprisingly, major brands. actually damage the brand image and even the
There is much room for more creative flair in holding company’s corporate image, sales, profits
sales promotions (see ‘Creative sales promotions’ and cash flow (eg Hoover’s £48 million fiasco – see
p 466). Effective sales promotions can creatively more below).
build the brand franchise while achieving many
other objectives, such as increasing sales, cementing
loyalty, building databases, generating publicity and
more. However, more than half of trade promotions F I G U R E 1 5 . 10 Some promotions boost
fail: 59 per cent of global promotions do not break
even (and in the United States that figure is even sales temporarily as customers stock up but
higher, at 71 per cent, with the UK at 58 per cent don’t come back for twice as long
and Italy with the lowest failure rate at 41 per cent).
These figures are from 2015 (Nielsen), but has it
improved since? How many really good sales pro-
motions do you see that make you want to tell your
friends about it? Sales

Disaster promotions
Despite the phenomenal size of the sales promo- Start End sales
tions industry and the data available for analysis, promotion promotion
there are a frightening number of sales promotions Time
 15 | Content Marketing and Other Sales Promotion 465

The MagiCan looked, weighed and felt (even

Murphy’s Law when shaken) like a regular can. When the
tab was pulled, the winning cans had a
What can go wrong will go wrong with sales mechanism inside that pushed real rolled-up
promotions. As with most marketing dollar notes through the hole in the top of
communications tools, things can go wrong with the can. Cash prizes inside the can ranged
sales promotions and destroy many excellent ideas from $5 to $200. The winning cans had some
that have apparently been meticulously planned. extra liquid to ensure the weight of all cans
Sample packs may burst open and destroy other was the same. Inevitably there were a few
goods (or carpets), or premiums may be pilfered. duds. Most of them just didn’t work, but in a
There can be problems of misredemption (non- few cases the seal that held the ‘liquid that
buyers acquire other buyers’ coupons), gives the can the feel of the real thing’ had
malredemption (large-scale fraudulent coupon broken. Although it was not harmful, one
redemption), over-redemption (with millions small boy (who was not aware of the
claiming their prizes), or door-drop samples that the promotion) drank the liquid and public
dog or child gets to before the adult. The health officials were called in. Massive media
attention followed; 750,000 cans were held
possibilities of a mini-marketing disaster seem
back while each one was shaken to determine
endless. In addition, the Competitors’ Companion, a
whether the seal was broken or not. An
monthly subscription magazine (www.
immediate TV and press campaign was put
competitorscompanion.com), publishes news
into action to explain the promotion and to
and views on which sales promotion competitions
warn customers not to drink the liquid if the
are running, what prizes they offer, exactly where seal was broken (Marketing, 31 May 1990).
to get entry forms, which qualifiers are required (eg
●● Pepsi’s special bottle top was offered by its
a label) and the closing dates. According to the
Philippine subsidiary with a 1 million pesos
magazine, ‘You receive advice on the answers to
(£26,000) prize to anyone finding a bottle
their questions plus a regular list of winning
top with the number 349. Pepsi paid out £8
slogans and tie breakers... that way, you can read million before it realized that thousands of
what’s catching the judge’s eye today and make winning bottle tops were appearing
them work for you tomorrow.’ everywhere. When payment stopped there
were public demonstrations; then Pepsi
plants were attacked with grenades, and
Here are a few classic cases of promotions that Pepsi lorries were burnt (three people were
went horribly wrong, even for the biggest and the killed). Pepsi executives hired bodyguards
best of marketing companies: before fleeing the country.
●● Heinz recipe book was a printed recipe book
●● Typhoo Tea’s Cash Pot promotion was
promotional offer on its Pickering Fruit Pie
reported to have had to make cash payouts
Fillings. Heinz forgot to print a reply address,
of more than £1 million. According to
so no one could participate in the promotion.
Marketing Week Cadbury Typhoo’s insurers
were reported to have issued a High Court ●● KFC plastic figures seemed like a good idea
writ against the company seeking a (giving a free plastic figure in some of its
‘declaration that some claims made by Cash meals as a promotion). Although they tested
Pot competitors are outside the rules of the the plastic for proximity to hot food, they did
competition’. Nevertheless, the expensive not test it for children sucking off the plastic
promotion apparently increased its market and poking their eyes with the remaining
share to its ‘highest level since its relaunch in wire. Personal injury claims followed.
1982’, but at what cost? ●● Macy’s department store talent promotion
●● Coca-Cola’s MagiCan US promotion was was designed to find an Annie for a new
supported by a massive $100 million push. production of the Broadway show. The lucky
12-year-old winner later made even bigger
466 Part Two | Communications Tools

news when she sued Macy’s after she was ●● Coca-Cola and McDonald’s got into trouble
‘dumped’ from the production. with Coca-Cola’s special-edition round bottle,
●● Hoover’s free flights to New York were which was a potential 2006 World Cup
offered to anyone purchasing any Hoover collector’s item – available from McDonald’s
over £100. Wrong comparisons with outlets in the host country Germany as well
response rates from a dissimilar ‘two flights as Austria, Hungary and Poland during the
for the price of one’ promotion, prompted tournament. This fell foul of Germany’s strict
wildly inaccurate forecast response rates waste recycling regulations. Although it was
for this new promotion. (The company stamped with the word Mehrwegflasche,
forecast 5,000 responses and received indicating it was returnable, McDonald’s did
600,000!) The fixed-fee limit of £500,000 not charge the customary deposit meant to
was agreed with a relatively small travel ensure the bottle was returned for recycling.
agent. When the agency went bust, Hoover The environmental lobby threatened legal
was exposed to a massive response (note action if McDonald’s continued to advertise
that sales promotion insurance is essential). or sell the bottles.
Meanwhile, the trade increased prices of The moral of the story? Check all possible disaster
the cheaper Hoover models to over £100 so scenarios. Get advice from third parties. Test the
that effectively any Hoover purchase promotion. Take out promotional insurance: pro-
qualified for free flights (Hoover should fessional indemnity insurance covers an agency’s
have restricted the offer to certain models). duty of care to its clients; product recall insurance
The promotion cost £48 million, careers protects against the cost of a recall of products or
and corporate image. promotional gifts; over-redemption insurance pro-
●● Kraft Foods’ ‘Win a free camper van’ tects against an unexpectedly high response.
promotion had a computer error that Whether the client pays or the agency pays is an
generated hundreds of winners. As the issue that needs to be clearly agreed long before any
prize-winners’ claims kept coming in, Kraft sales promotion campaign rolls out.
realized there was a problem. Some There is, arguably, a worse scenario – no one
disappointed customers vowed never to buy responds to the sales promotion. Large stocks of
the firm’s food products again. Others sought premiums are left in the warehouse, and teams of
legal action. order fulfilment staff (who dispatch the prizes) sit
●● Vidal Sassoon shampoo samples: According around with nothing to do.
to Marketing Breakthroughs (1991), half a
million special free sample minipacks of
Vidal Sassoon shampoo were distributed
Creative sales promotions
throughout Poland. When news of the There is always room for creative innovation.
promotion spread, around 2,000 mailboxes Whether it’s a trip to the moon or a party in an under-
(mostly at apartment blocks) were pillaged. ground nuclear shelter, the only limitation to potential
The sample packs then started appearing in sales promotion creation is one’s imagination. If it is
street markets and soon sold out. The extra stunningly successful, it is likely that the competition
costs incurred by the damaged mailboxes will follow, unless the innovative promotion relates
added a new dimension to the sales uniquely to the brand in a creative way. This is dem-
promotion review process. onstrated by the Sunday Sport tabloid newspaper.
●● Alamo Car Hire’s free car hire flopped in
Germany. Alamo normally offers one free
day’s car hire with every 30-day hire. This ‘Is your mother-in-law an alien?’
was fine until it discovered that it is illegal in
Germany to give anything free after just one Although no longer in circulation, the Sunday Sport
transaction. The international arena further newspaper once offered a free test kit that helped
complicates the life of the sales promotion readers to determine whether their mothers-in-law
professional, as regulations vary enormously. were, in fact, aliens. The paper sold out within hours.
 15 | Content Marketing and Other Sales Promotion 467

This ‘alien mother-in-law’ type of promotion is argu- F I G U R E 1 5 . 11 Two creative promo-

ably just a stunt designed to generate publicity that
may, at least temporarily, increase levels of aware-
tions on video – watch the recipients’
ness, boost sales and also reinforce readers’ loyalty by reactions: https://prsmith.
rewarding them with a gift that appeals to their men- org/2014/08/22/customer-retention-
tality. Because the gift is relevant to both the target
isnt-boring-heres-wow/
reader’s sense of humour and the newspaper’s image,
it adds to the paper’s branding. In a way it adds to the
brand franchise or builds consumer franchise.
One sales promotion that might have impressed
mothers-in-law was for Cadbury. When it launched
its white chocolate, Snowflake, agency Triangle
achieved significant consumer trial by negotiating a
cover-mount of a free bar on OK! magazine. When
it discovered that the same issue was featuring
celebrity television presenter Anthea Turner’s wed-
ding, it persuaded OK! to give free bars to all the
celebrity guests. The additional brand exposure
enabled Cadbury to hit the media headlines, gain an
estimated £1 million worth of editorial coverage, One other dimension that creative thinkers can
and ensure a spectacular launch success as a result. explore is the huge synergies and creative poten-
Creativity and originality can work well together, tial released by joint promotions with other
as when NatWest Bank’s sales promotions and brands, sometimes known as marketing marriages
direct marketing were combined as a ‘direct promo- (note: these strategic alliances can integrate
tion’ (most mailshots use an incentive). NatWest or work across all 10 communications tools/
moved away from the traditional clock/radio/calcu- channels/tactics).
lator/travel-bag type of incentive used by the banks
from time to time. Instead it offered the choice of
one of 10 limited-edition prints that were specially Gamification
commissioned from five artists. It mailed to 65,000
names (who were thought to have over £25,000 to What’s it all about?
invest) and received a 12.3 per cent response We feel a sense of achievement upon completing
(instead of the targeted 5 per cent response level). tasks, whether building a boat or going for a swim.
Another highly creative and popular promotion Gamification taps into this human characteristic,
was Guinness’s inflatable armchair, which formed particularly if there is:
part of its campaign as sponsor of the Rugby World
Cup. An application for the armchair was even ●● reward;
received from Buckingham Palace! ●● recognition;
Highly creative sales promotions may involve an ●● progress.
element of risk. Insurance (indemnity insurance,
redemption insurance, etc) is advised with all sales
promotions, but particularly recommended with What exactly is gamification?
highly creative and high-risk ones. Incidentally, cre- Gamification can be defined as: ‘The use of game
ative thinkers will spot the PR opportunities that thinking and game mechanics in a non-game con-
can be exploited when creative sales promotions text in order to engage users and solve problems.
are developed. These can spread through social Gamification is used in applications and processes
media networks, and the press are usually also to improve user engagement, return on investment,
interested. See how Canada’s TD Bank use creative data quality, timeliness, and learning.’ The word
promotions to ‘literally blow their customers away’, was created by computer programmer and inventor
on video at http://prsmith.org/blog/. Nick Pelling.
 468 Part Two | Communications Tools

More than entertainment scanned first time get a green score (as
opposed to red for several scanning
and engagement attempts). Getting the scan process right
Gamification is much more than entertaining and first time shaves a minute off the check-
engaging customers. Watch how gamification will out procedure. Cashiers can see their own,
become embedded into relatively mundane business their colleagues’ and their store’s score (to
processes to add sparkle to repetitive tasks that ro- compare with other stores).
bots will not do. But it’s more than staff who benefit
from gamification.
Gamification disaster: Mistakes to
Who uses gamification? avoid
Most staff are not engaged. Are you shocked? It’s
Arguably, all stakeholders can benefit from gamifi-
not a mystery that employee engagement continues
cation. It helps to deepen learning of brand aware-
to sink, say Sturt and Nordstrom (2018): ‘The
ness, brand aspirations, brand features, brand
Gallup organization reminds us every couple of
preference, brand relationships as well as entertain-
years that nearly 70 percent of employees are ac-
ing and engaging the user/stakeholder in a meaning-
tively disengaged.’ Here are three gamification mis-
ful and relevant way. Let’s look at two stakeholder
takes to avoid:
groups split into three: customers, and staff (sales-
people and cashiers). 1 Poor gamification design
‘80 per cent of current gamified applications
●● Customers: ‘Nike Missions’ has grown, as
fail to meet business objectives primarily due
does its UK Facebook page, which urged its
to poor design’ (Burke, 2013). Is this perhaps
200,000+ fans to ‘forget public transport’
similar to the lack of ‘instructional design’ in
and ‘make the commute home your
the many failed elearning projects in the
racecourse’. This creative approach to
1990s? Deep levels of detail are required; if
gamification also allows customers and
ignored, this can result in some of the early
prospects to race against themselves or a
stage chatbot errors we see today. Testing is
worldwide community. Membership boosts
also a critical part of these processes.
brand relationships, which boost sales.
2 Don’t leap into the game
●● Staff:
Don’t leap into gamification (without
|| Salespeople: Salespeople are competitive understanding good design) like many who
people by nature. Internal sales league jumped into elearning (without
tables have been around since the year dot understanding instructional design). It’s as if
as a way of motivating sales reps. One they felt they ticked that box ‘yes we do
thing salespeople don’t like is filing reports. gamification’ or ‘yes we do have chatbots’.
So some organizations’ sales reporting Gartner’s Brian Burke’s (2013) comment still
systems have been ‘gamified’ by rewarding rings true today: ‘remember not to confuse
accuracy and frequency of data entry, with activity with success’.
the scoring of points complete with a 3 Know your audience
leader board and monthly prize – Do not design for the wrong audience. The
‘morphing mundane into motivation’ by average gamer is 35, married, earns £23,000
making a tedious task surprisingly exciting. pa; games 12 hours a week; owns two
|| Cashiers: The retail checkout is a chicane consoles, 18 games and takes a month to
for customer emotions. A delay in a queue complete one game; rows with their partner
can destroy a reasonably positive CX. twice a week over their pastime (Source:
Target Retail chain gamified the check-out Pixwoo.com). Note this will change if
process to engage their staff. Items gamification spreads to non-gamers, ie
customers, call centres, cashiers, sales
teams, etc.
 15 | Content Marketing and Other Sales Promotion 469

photos, writing reviews, following fellow reviewers

10 gamification success factors and subscribing to have reviews sent to their
Facebook news feeds. Remember GaggleAMP is
1 Narrative that guides, challenges and changes used in content marketing.
as the player progresses.

2 Feedback immediate re success or failure, and The business benefits

most importantly, progress. ●● Customers are engaged and have fun, see
3 Competitive: We like to compete with others – progress, win rewards.
even in a different location. Make it social. ●● Staff: Boosts product knowledge, processes
efficiency, customer service skills and
4 GUI (graphical user interface) – must be easy engagement.
and fun to use.
●● Business: Boosts awareness of brand and
5 Test with a view to usability, security, scale, features/benefits, recruitment, retention and
local or global roll-out. advocacy.
6 Rewards, recognition, awards – it’s a ●● Business cost reduction: Cost-effective –
motivation programme (that involves changing
embeds key messages and boosts operations
efficiency.
behaviour, knowledge and or skills). Note that
major staff motivators are ‘progress’ and ●● Business data capture: Build customer
‘psychic income’ (see below). database for future engagement and
relationship building.
7 Achieve business objectives (not just
entertainment objective). Note: this gamification excerpt was first published
at http://prsmith.org/blog/ in October 2013 in an
8 Promoting gamification – avoid using the ‘g’ article entitled ‘Gamification – the good, the bad
word and focus on bottom line results (ie don’t and the ugly’.
promote the word gamification, do promote the
benefits of gamification). Joint promotions
9 Add in some psychic income (non-financial Joint promotions, cross-promotions or marketing
rewards) – see below. marriages offer effective partnerships to target the
same customers with relevant offers. When Coca-
10 Add in some earned media/social sharing Cola led its army of soft drinks brands into a joint
promotion with Cadbury, it was followed by their
arch-rival Pepsi announcing another mega-brand
Psychic income is non-financial rewards that fulfil deal, in this case, with Kellogg’s. When Deep Pan
your dreams. Instead of giving a £100 cash bonus, Pizza created a joint promotion with Lego, giving
which gets lodged in the bank and forgotten, give children free branded toys, sales of children’s meals
two tickets to see the person’s favourite band or team inevitably grew. In fact they doubled. To maintain
(see the TD bank ‘wow’ video mentioned on p 77). repeat purchases, the choice of toys was changed
Companies like Maritz offer psychic rewards to shop every quarter.
floor workers and CEOs. For example, instead of a However, caution must be exercised when choos-
£50,000 cash bonus for the CEO give him/her two ing a partner. Brand space allocation, data collec-
holes of golf (if they like golf) with Jack Nicklaus, tion and budgets must be clarified. Stuart Hardy,
and on the 18th green provide an orchestra perched MD of WLK (who married Mothercare and Lever’s
on scaffolding playing the tune of the CEO’s choice. Persil in a joint promotion), says, ‘In any true rela-
Earned media children’s retailer Step2 use gami- tionship each side is going to have 50 per cent of the
fication and give points to users depending upon say. A lot of marketing people want 100 per cent of
their social media interaction and activity within the say and only 50 per cent of the costs.’ Although
the BuzzBoard community. Customers are rewarded there are lots of opportunities, particularly with
with points for different levels of engagement, from new IoT partner potential, relatively few joint pro-
sharing Facebook content to uploading videos and motions seem to get off the ground. It must be
 470 Part Two | Communications Tools

agreed and specified who actually does what and promotion offers: 1) users of a competing brand in
gets what, including databases, space allocation, etc. the same category; 2) users in other categories; and
3) frequent brand switchers. These ‘deal-prone cus-
Integrated promotions: Social tomers’, the brand switchers, tend not to be loyal and
are likely to switch away to the next low-price or
media free-gift offer that comes their way. The group at the
As with any marketing communications tactical tools other end of the target market loyalty spectrum are
or channels, social media is an essential element of called ‘the immovables’, who are locked into brand
any sales promotion campaign. But as social media loyalty. Do not waste resources targeting them. The
reach declines, sponsored posts may need to be used. real target group within the target market are called
As mentioned earlier in the chapter, no matter how the ‘loyal susceptibles’. These are there to be won (or
great your content marketing is, it fails if no one lost if they are your brand customers). Once their
knows about it. The same applies to a sales promo- loyalty is broken, their new-found loyalties can be
tion. It needs to be promoted. Sometimes you need to nurtured and relationships strengthened through
spend as more money promoting it than creating it. regular relevant communications and engagement.
Knowing exactly who these people are and why
Integrated promotions: Other they are more susceptible is the key to the sales pro-
motions tapping into their susceptibilities, which in
tactical tools turn will increase market share beyond a short-term
Sales promotions naturally integrate with other temporary boost.
marketing communications tools, particularly pack- After the real target market has been analysed,
aging (‘on-pack’ promotions), point-of-sale, mer- the eventual sales promotion concept should be
chandising, sponsorship, PR, advertising, direct researched in focus groups or at least with sample
mail, events and selling and, of course, social media. customers. When the idea or promotional tool is
Advertising-supported promotions do better than agreed, it is still worth testing it in a limited area
ones that are not supported. There are occasions or customer group to reveal any hidden problems or
when point-of-sale materials promoting the offer even opportunities before launching it nationally or
are considered to be more cost-effective than above- internationally.
the-line (advertising) support.

Objectives
Managing sales promotions As the name suggests, a promotion is a limited-­
period offer. It is therefore not surprising to find
that sales promotions tend to have shorter-term tac-
Going back to mainstream sales promotions where
tical objectives (although, as previously explained,
gifts, prizes and competitions are popular promo-
this need not be the case). As well as boosting brand
tions, the SOSTAC® + 3Ms* planning process can
activation and customer engagement, some typical
be used to build a sales promotion plan.
sales promotion goals include:
●● increase sales (although it may be only a
Situation analysis temporary increase, because customers can
The situation analysis requires research into past simply stock up with the goods or
promotions (including those of your competitors), temporarily switch brands while the
present and possible future campaigns, combined promotion is running) by:
with a clear analysis of the target market. An initial || rewarding loyal customers;
review can be followed by further research into the || increasing the repurchase rates of
target market including concept testing, and eventu- occasional users;
ally test marketing. || locking customers into loyalty
In addition to the usual demographic and psycho- programmes (collecting coupons or items);
graphic information, further analysis may reveal
what Philip Kotler (2000) identified as three types of || generating trials among new customers
new triers who are attracted to (and respond to) sales (by triggering an impulse purchase);
 15 | Content Marketing and Other Sales Promotion 471

●● deseasonalise seasonal sales (eg skiing ●● build a database (NB GDPR compliance);
holidays in the summer); ●● generate publicity.
●● develop new sales leads;
Some sales promotions are more appropriate than
●● nurture loyalty; others in achieving various objectives (see Table 15.1).
●● brand activation and customer engagement;
●● demonstrate new features or modifications
or introducing a new product or service; Strategic impact of sales promotions
●● develop new uses;
●● satisfy retailers with a complete package – ‘Years ago, Heinz used to say that they saw
gain trade acceptance; more far-reaching effects on image dimensions
of their tracking studies from their sales
●● move excess stock;
promotion schemes than they ever saw
●● block a competitor’s sales promotion; resulting from advertising campaigns.’
●● match a competitor’s sales promotion; Castling (1989)

TA B L E 1 5 . 1 Matching promotions with objectives

Objective Promotional tool
Consumer
Trial Sampling; couponing; free draw; price-off; self-liquidator (send in some money,
which pays the costs of the promotion); premiums; in-pack; on-pack; near-pack;
re-usable container; personality promotion
Retrial Coupon for next purchase; price-off
Increase usage Collections; games; competitions; extra-quantity or bonus packs; price-off multiple
purchase
Develop new uses Companion brand promotions; publications; workshops
Image development Publications; sponsorship; charity

Trade
Increase distribution, Discount; extended credit; point-of-sale materials; tie-in with advertising
shelf facings or displays
In-store promotion Discount; extended credit; point-of-sale materials; tie-in with advertising;
consumer offer; promotion allowance
Increase sales Sales competitions and rebates (mostly independent stores and wholesalers)
Cement good relations Gifts,holidays and awards

Sales force
Sales and distribution Psychic income and financial income
 472 Part Two | Communications Tools

Cummins (2003) identified how certain sales pro- Some organizations only see promotions as a
motion techniques match up with various objec- short-term tactical tool, eg ‘Get 50,000 people to
tives (Table 15.2). see my store opening’. So strategic sales promotions
are not always possible to achieve if clients do not
want them in the first place. The difficulty is com-
Strategy pounded by the fact that strategic promotions may
Ideally, all promotions should be part of a longer- sometimes not generate immediate customer
term strategy. Longer-term sales promotion strate- response. So the question is: should the longer-term
gies build and reinforce brand image, strengthen image-building capability of sales promotions be
user loyalty, and can also invite new users to join forfeited for the shorter-term tactical sales objec-
the club, as opposed to short-term tactical tempo- tive? The growth of content marketing is forcing
rary sales boosts. Sales promotions (including con- many companies to think more strategically; for
tent marketing) work best when a sequence of example, after a prospect downloads the free ebook,
promotions (or content) are scheduled to be given what do we do next? Perhaps a webinar, followed
to prospects or customers at various points in their by a free trial, and after that how can we reward
lifetime buying cycle. them for being customers?

TA B L E 15.2 Linking the objective to the mechanics: how they match up

Immediate price offers
Immediate free offers

Delayed price offers

Delayed free offers

Games and draws

Charitable offers

Self-liquidators
Finance offers

Profit-making
Competition

promotions
Mechanics

Objectives

Increasing volume 9 7 9 7 5 1 3 5 2 1

Increasing trial 9 7 9 2 9 2 7 7 2 1

Increasing repeat purchase 2 9 2 9 5 3 2 7 3 3

Increasing loyalty 1 9 0 7 3 3 1 7 3 3

Widening usage 9 5 5 2 3 1 5 5 1 1

Creating interest 3 3 3 2 2 5 9 8 8 8

Creating awareness 3 3 3 1 1 5 9 8 8 8

Deflecting attention from price 9 7 0 7 7 3 5 5 2 2

Gaining intermediary support 9 5 9 5 9 3 7 5 1 1

Gaining display 9 5 9 5 9 3 7 5 1 1

Each square is filled with a rating from 0 (not well matched) to 10 (very well matched.). Use it as a ready
reckoner for linking your objective to the mechanics available

SOURCE: Cummins (2003)

 15 | Content Marketing and Other Sales Promotion 473

A strategic approach is preferred, as explained Tactics

by Cummins (2003):
The general short-term, ‘immediate action’, tactical
●● It enables one offer to build on the previous nature of sales promotion contrasts with the longer-
one, and to establish a continuity of term image and brand-building capability of adver-
communication. tising. This need not be the case, because sales
●● It makes it possible to communicate image promotions can be planned on a strategic level. But,
and functional values, so promotions work first, why is there a tendency towards ­short-termism?
harder. Perhaps the short-term focus is a result of:
●● It can produce considerable savings in time ●● management pressure to boost quarterly
and money. sales, which therefore encourages the use of
●● It enables offers to be fully integrated into the quick-response sales promotions;
other activities in the marketing programme ●● shortening product lifecycles, which demand
(eg linking with advertising and PR). quick sales results;
●● It facilitates a better approach to joint ●● increased competition and increased new
promotions (see above). product introductions, which increase the
●● A strategic approach does not exclude the need for tactical defensive sales
use of tactical promotions, since it can promotions;
provide a framework within which shorter- ●● the speedy response required to handle
term tactics can be determined. business problems when they arise;
●● full-service agencies trying to sell the client
additional services such as sales promotion
How to develop a strategic approach on an ad hoc, ‘add-on’ tactical basis.

1 Identify what customers (and prospects) really

want (in terms of promotions). Actions
2 Identify the long-term strategic marketing and Sales promotions also require internal marketing to
ensure staff (particularly customer-facing staff) are
communications objectives.
aware of the promotion. Contingency planning
3 Create guidelines for each product or service, should cater for an unexpectedly large response.
showing the style of sales promotion that is Insurance can help here, because things do go
most appropriate to the brand’s long-term wrong and costs can rapidly escalate. Although cre-
health. ating a promotion is exciting, executing it is dull
and boring. This is where attention to detail and
4 Determine exactly how much of the total ensuring proper processes and resources ensure the
marketing communications budget is available smooth running of any sales promotion and avoid-
for sales promotions. ance of the ‘disaster promotions’ mentioned earlier
5 Ensure that there is support and commitment (see p 464).
from senior management. Cut-off dates, logistical arrangements (returning
unused stocks) and even announcing the end of the
6 Develop a promotions file that compiles promotion cost time and money; eg Shell wanted to
promotion ideas throughout the year. These can avoid the flush of irritation that would undoubtedly
then be reviewed closer to the time of planning. rise up if its customers failed to cash in their care-
fully collected gift tokens before they expired and
7 Plan and forecast the sales promotions’ results. became worthless, so it advertised the end of the
8 Develop a method of evaluation so that promotion.
longer-term performance can be measured Here is a checklist covering some sales promo-
against longer-term objectives and forecasts. tions issues:
 474 Part Two | Communications Tools

1 Does the promotion exploit key strengths Are there any hidden costs associated with
10 
and unique selling propositions (USPs)? this sales promotion that have not been
2 Is it a franchise-building promotion? Does included in the budget?
the gift, incentive or premium relate to or
enhance your product or service or the
organization’s image? Control
3 What can go wrong? Contingency planning, Control, measurement and monitoring form the
crisis management and insurance are worth loop in the management system. How can the suc-
considering. cess or otherwise of the promotion be measured?
4 Has the promotion got legal clearance? The number of respondents, redemptions and in-
Should it be checked with the Committee of creased sales are all relatively easy to calculate, but
Advertising Practice (CAP) sales promotions these are only the surface figures. They may be hid-
department? ing the fact that many of the responders are the
wrong profile, or existing customers who simply
5 Will the promotion generate only a buy twice as much this week (Figure 15.10).
temporary gain (see Figure 15.10)? Will The purpose of measurement and monitoring is
existing or old stocks (not carrying the twofold:
promotion) be wasted?
●● to control current campaigns;
6 How will the promotion be promoted? Does
it need advertising and PR support? ●● to improve future campaigns by learning
7 What other communications tools are about what works.
required – new packaging, point-of-sale
materials, new literature or field sales teams?
8 Is there an administrative burden created by Sales promotion, ads, AR,
new order forms, coupons, judging, choosing
winners, dispatching gifts, etc? Or will this engagement and
all be handled by an external agency?
9 Is there a cut-off date, and is it clearly stated
gamification
when the offer closes? Now here are some actual sales promotion (includ-
ing content marketing) case studies.

C A S E S T U DY Burger King’s ‘Burn that ad’

Burger King (Brazil) ran a most unusual sales promotion that recognized competitors’ ads (eg McDonald’s). Burger
(free vouchers) using augmented reality to engage in a King also encouraged customers to share their
form of gamification (downloading the app, then playing a experience: if a customer shared this experience, they
game): scanning a competitor’s ads and setting them on got a free Whopper.
fire (in augmented reality) and winning a voucher for a free Is this the beginning of ‘billboard hacking’? Soon we will
whopper. see ads change from a McDonald’s billboard to one for
This presents the question: ‘How can AR turn a competitor’s Burger King or Coke or Pepsi or any other variant of this.
ads into your own ad, using competitors’ billboards, magazine Burger King expected to give away over 500,000 burgers
ads to generate your own discount coupons?’ Or how can through this unique, innovative and highly engaging fun
Burger King change the media investments of its competitors campaign. Vouchers were limited to one per consumer.
(billboards ads, magazine ads, discount coupons) and turn ‘Augmented reality is a fascinating tool. And when
them into ads of their own collateral? combined with a little pyrotechnics, is even better. With
Here’s how: Burger King used advanced AR to enable “Burn that ad,” we hacked the competition by leveraging
customers to ‘burn down’ competitors’ ads using a lens our biggest advantage, which is fire’, said Rafael Donato,
 15 | Content Marketing and Other Sales Promotion 475

F I G U R E 15.12 Burger King ‘Burn that ad’

Creative ­Vice-President for David SP, referring to the ‘Technology as a means to provide the best customer
flame-grilled burger which is a Burger King USP. The experience is one of our main investment targets in 2019,’
message ‘After all, flame grilled is always best!’ appears explained Ariel Grunkraut, Burger King’s marketing and
on the app screen after burning a competitor’s ad. sales director for Brazil in a statement.
The marketing hack also promoted Burger King’s Diaz (2019)
Express Service, which allows customers to pre-order
their meals to avoid real-world queues (lines).

C A S E S T U DY Content marketing delivers competitive advantage: Kelly HR

Australian company Kelly HR are doing all the right things recruit staff for them; and staff looking for a new job. Kelly
re content marketing: are effectively in both B2B and B2C.

●● create engaging content; Target market

●● produce the content;
Instead of dealing with traditional staffing/recruitment
●● measure content effectiveness. companies, Kelly targeted the more traditional consulting
Plus, they are doing an awful lot more with their content firms including McKenzie’s, the Banes, the IBMs, PWCs; all
marketing. They create, promote and distribute their of whom have a lot bigger budgets. Kelly wanted to break
content marketing in a consistent format, in an integrated into this market and demonstrate its capability to play in the
marketing communications process. This ‘integrated outsourcing space where the deal size is typically $20
content marketing’ is now their number one lead generator, million to $1 billion and where it takes 18 months to two
number one brand awareness builder and it is now years to close deals.
delivering a competitive advantage that is rapidly becoming
a sustainable competitive advantage. Content, competition and the opportunity
Already a lot of the players were quite well advanced in
Situation: The company thought leadership content but not many of them were
taking it to a real content marketing approach integrating
Kelly Services is a recruiting staff organization with two
and leveraging the content to the maximum. Kelly saw
core audiences: companies who will pay Kelly money to
this as a really good opportunity to create competitive
 476 Part Two | Communications Tools

advantage and, frankly, they didn’t have enough money to spends 50 per cent of his time with another content
do anything else. marketer in Germany who is basically the head of B2B
content marketing and distribution channels. Kelly have
Step 1: Content audit
one other person in the United States who is in charge of
Kelly’s Marketing Content Director, Todd Wheatland,
B2C content, which is now a big focus for Kelly since they
talked to a lot of staff and identified 600 pieces of content
have introduced the Kelly Service side of the business. The
that had been developed by someone somewhere for
US team member spends 20 per cent of their time
some purpose (eg promotional materials for events,
(annualized) on content marketing (0 per cent in the quiet
exhibitions, conferences, collateral literature, reports,
months, and up to 40 per cent in the busy months), and
etc), all of which were potential marketing content. Kelly
there are many individuals both within and outside the
found the process of looking back (at existing content) in
company who play varying roles in Kelly’s highly successful
order to look forward to be very useful. This process
content marketing. This includes translations,
helped the team to learn how to structure content. ‘We
videographers, animators, illustrators, etc. Beyond that,
understood a lot more about who we’re trying to speak
everything is outsourced.
to, and what we’re trying to tell them. What value Kelly is
trying to add, what questions they’re asking,’ said
Wheatland. A huge underutilized resource was Tactics: Leverage content
discovered. The research report may be 80 pages in a general term;
Step 2: Content selection they may do a spinoff ebook that’s 2–3 pages long and is
Out of those 600 pieces of content two were selected that very specific and targeted to a different audience. The
could be used. Kelly are good at leveraging research. research is repurposed into different elements beyond a
Eighty per cent of all their content, including blog posts, research report to deliver ebooks, blog posts, infographics,
has a unique original research component to it. social memes, animated infographics and more. In fact,
Kelly Global Workforce Index (survey) was leveraged to
Step 3: Develop personas deliver:
Personas help Kelly to understand the audience, which
tends to be typically C suite plus some HR and procurement ●● 1 × survey or ebook;
audiences. ●● 6 × topics/chapters (mini ebooks);

Step 4: Identify five buckets, 200 keywords and 2,000 ●● 1,000 + content pieces;
pieces of content ●● 200 + news releases;
Five buckets (themes) of content were identified along with ●● 20 + company events;
some 200 relevant keywords that searchers would use. For
●● 40 + external events;
each of those 200 keywords Kelly produced 10 pieces of
content per year, optimized for that keyword. Effectively ●● 30 × countries’ languages.
Kelly produce 2,000 pieces of content in English a year, Kelly also generate white papers over consecutive
based on these five buckets. years and sometimes look at the same topic, going back
Step 5: Secure budget (3Ms resources) to reinvent and refresh older pieces. Books still have a
Kelly made a strategic decision to focus on content high degree of credibility when being considered for
marketing, subsequently cancelling some major events events.
that they normally attend and using the money to develop
content and run a pilot programme to demonstrate Generate leads and integrate
value. Integrated marketing communications and integrated lead
generation content marketing requires more than content
Resources required generation. It’s a naturally integrated process involving
Content has now become about 50 per cent of the total everything from undertaking the research through to
marketing spend. In terms of structure, Kelly’s content analysis, content development, PR, events, staff
marketing team is lean – led by Todd Wheatland who mobilization and measurement. The website’s front end has
 15 | Content Marketing and Other Sales Promotion 477

free content supported by a lot of social distribution around (relatively easy to do once the survey questions have
that, and there is a lead registration or capture model for covered some regions and sectors). For example, a global
the really juicy pieces of content that Kelly think people are survey can be split and sliced in many ways, such as
willing to go through and sign up for. Marketo is the lead gender, jobs and geography, so that tailored reports for
nurturing platform used, which integrates nicely into engineers in Queensland, or creative services people in
Salesforce, with auto alerts sent to sales reps when New York, etc can easily be generated.
qualified leads interact with specific content.
Integrate, mobilize and distribute
Action: Leverage, repurpose and produce The task was producing so much content around speci­­
The production process can be the lengthiest part of fically defined keywords, with frequency, and circulating
content management, particularly if running a properly and distributing that content, both on Kelly’s own channels,
structured survey with time allowed for testing the (SlideShare and YouTube), plus mobilizing staff and
questionnaire, rolling it out/fieldwork, analysis, report partners. Kelly wanted many people from within the
presentation and the array of design and editing required organization to have an external profile. They didn’t just
to generate a suite of marketing content. Atomizing content want it to be the top 10–20 employees, the same old people
means breaking it into different formats and/or tailoring who have the senior titles. So the content management
reports into very specific regional or industry type reports team (of two) fought very hard to get people right down the

F I G U R E 15.1 3 Variety of content created from one piece of research

SOURCE: Kelly HR
 478 Part Two | Communications Tools

basic operational level involved in being part of this Kelly try to stream the same visual look across the
mission. Kelly now leverage their content via staff social family of content.
networks supported by a huge amount of internal content
plus internal webinars. The sales teams are always briefed Control: Measuring results
and equipped so they can offer added-value content (eg
sample reports, memes, infographics and even mini In addition to its 25,000 LinkedIn members, Todd Wheat­
ebooks) at exhibitions/conferences/events. Popular posts land’s tiny team’s continual stream of great content is
are also promoted (they find it delivers a healthy ROI). now reaching a tightly targeted global audience which
Hot new content is also regularly leveraged via PR has, in turn, lifted the monthly unique visitors by over 350
(news releases). Most surveys make interesting news. per cent within the first 12 months. So from Kelly’s own
channel through to their SlideShare channel, through to
Apps YouTube, through to other communities it’s not
uncommon for those 200 keywords to have multiple Kelly
Kelly believe in apps as part of their content marketing and results on the first pages of search results. Todd is very
they cannot overestimate the value of such things. ‘People clear about the tight connection between content
like shiny stuff.’ People internally get very excited about marketing, marketing objectives, bringing in leads and
things that maybe aren’t that strategic but that actually closing sales.
have some sort of cool factor that they can share with their
network, so they talk about it with clients. That funky factor, Ongoing results: The knock-on effect
that thing that’s a bit light-hearted, or a bit cool or a bit new;
having something like that every few months, or whenever Events companies now invite Kelly to attend for free
it is justified, has really helped sustain interest, momentum because they have become an influential content
and a sense of excitement that stuff is happening within company. Some companies invite Kelly back because of
Kelly. their blog power. Event organizers see Kelly’s growing
database, their growing audience, all of their content and
often ask them if Kelly can come and cover an event.
Action: Systematic content marketing
Maybe even host the event? Kelly then get given behind-
Kelly now has one of the fastest-growing groups on LinkedIn the-scenes access to talk to the different speakers,
with 25,000 members and another 350–400 new members a interview them and run that through various blogs. They
week, because LinkedIn promotes it and because Kelly now increasingly make connections between topics,
manages it diligently. It literally takes only 10 minutes a day to spokespeople, content assets and events – a self-fulfilling
manage the LinkedIn platform and yet it generates more cycle. Kelly’s successful content marketing has moved
traffic than search. Kelly’s proactive weekly email to any them out of being the vendor in the trade hall booths, and
member of this group brings people back and says ‘There’s up to being the people doing a lot of hosting, but also a lot
three hot new discussions here, can you help out these of keynote speaking around topics that are important to
guys?’ Todd believes that the LinkedIn company page is Kelly’s target market.
becoming and will become more of a hub for any content and
will become a much bigger channel. Conclusion
Kelly do a lot of research annually, quarterly and
monthly. It’s like a self-perpetuating cycle. It’s very easy to Through their dedication to relevant quality content,
calenderize, it’s very easy to find a process around and it repurposing and promoting in an integrated process, Kelly
gives them a layer of those core things that can help set the have created an ever-strengthening competitive advantage
content. Calendarization around that gives them some that is rapidly becoming a sustainable competitive
predictability throughout the year. advantage.
 15 | Content Marketing and Other Sales Promotion 479

C A S E S T U DY Topline’s advertising boosts Christmas promotion

Situational analysis platform and multi-device capabilities to reach all of

Topline’s target audience.
With over 150 retail stores in Ireland and Northern Ireland,
Topline is Ireland’s largest DIY/building materials buying
group (retail and trade chain of stores).
Tactics
Traditionally, Topline’s digital tactics focused solely on Google AdWords
Facebook competitions and campaigns using a mix of
Standard display/text adverts were created for appropriately
organic posts and paid advertising targeting a broad user
researched strategic keywords and placement, such as the
base in Ireland. This organic social media promotion tactic
keyword ‘Stanley Stoves’ placement on Elledecor.com
mixed with paid traditional advertising by Topline had
and Housebeautiful.com.
worked reasonably well. Previous Topline competitions
A remarketing campaign targeted people who had
were also promoted via Twitter with scheduled tweets and
recently visited the Topline site. This audience then
profile background imagery; however, it was difficult for
received Topline ads when they landed on other sites. The
Twitter followers to use the competition page in order to
remarketing AdWords campaign performed significantly
enter the competitions, especially on mobile devices.
better than the standard display advertising and text ads.
Campaigns were not cross-platform nor cross-device so a
The remarketing campaign had a CPC of 0.43c versus 0.80c
large percentage of potential customers were neglected.
for text ads and 0.98c for placement ads.
As of October 2014 Topline’s Facebook following was
11,000. Topline came to Dublin-based agency, Continuum,
looking for assistance on a digital campaign strategy with
Facebook
a view to driving traffic to their website and improving Pre-defined target audiences based on previous Topline
brand engagement online. An advertising budget was campaigns – 1) lookalike audience, and 2) custom audience
made available for a specific online campaign. for interior design/DIY interest targeting – were targeted
via sponsored posts.
Objectives A separate lookalike audience was also targeted by
sponsored posts for the competition, to entice new
The Topline digital marketing objectives were as follows: engagement. This campaign performed the best by far,
●● Primary objective: Improve customer data collection with a cost of 34c per follow compared to previous CPF of
for future Topline communications. 42c per like of a custom audience.
●● Secondary objective: Improve brand engagement on Any remaining budget for Facebook was used to boost
social media. the standard organic posts. Lookalike audiences help you
reach people who are similar to your current customers.
●● Tertiary objective: Generate website traffic to the
Custom audiences let you reach customers you already
corporate Topline site.
know with ads on Facebook.
Exact target numbers are not available.
Twitter
Strategy Sponsored tweets were used to amplify posts.
Topline came to Continuum with a Christmas-themed
social media competition – ‘12 Stoves of Christmas’ – Action
consisting of a giveaway prize of one Topline stove A third-party application, ‘ShortStack’, was selected,
product each day for 12 days. Topline required Continuum implemented and used to host the competition page and
to assist in the implementation of their proposed strategy data collection. This app allowed Topline to create a
to achieve targets and maximize the potential results of landing page without any coding or development
the campaign. This strategy needed to include cross- dependence, and collect the entrants’ contact details
 480 Part Two | Communications Tools

F I G U R E 15.14 Topline ran a Christmas-themed giveaway social media competition

for each of the 12 daily competitions seamlessly across Both Topline and Continuum made daily checks of the
all channels including the Topline website, Facebook campaign. These checks resulted in tweaks to the
page and Twitter profile. An opt-in to further marketing advertising spend throughout the campaign based on best
promotions ‘tick-box’ was included on the landing page performing ads.
and provided a post-campaign final opt-in rate of 83 per
●● Customer data collection for future communication:
cent.
A two-week campaign calendar that outlined all || total competition entrants = 19,313;
deliverable elements of the campaign from the set-up of
|| total competition entrants after duplicate removal
the competition page using ShortStack to the selection of
and unwanted countries = 18,000;
competition winners was created and used as a point of
reference throughout the campaign. || final opt-in competition entrants = 15,003;

|| opt-in rate = 83.4 per cent.

Control
●● Brand engagement on social media (December
The Topline ‘12 Stoves of Christmas’ social media campaign 2013–December 2014):
was a success surpassing expectations for social media
engagement, email communication sign-up and website || Facebook following December 2013 = circa 1,000;
traffic generation. || Facebook following 27 November 2014 = 20,300;
 15 | Content Marketing and Other Sales Promotion 481

F I G U R E 15.15 Topline’s Christmas sales promotion appearing on Facebook

|| Facebook following 13 December 2014 = 35,454; || social media traffic up 147 per cent;

|| growth over 16-day period = 72 per cent; || organic traffic up 11 per cent;

|| growth since this time last year = 3,440 per cent. || referral traffic up 134 per cent;

●● Increase in website traffic (December 2013–December || direct traffic up 82 per cent.

2014) compared to previous month: ●● Other: The ShortStack app competition page received
|| overall up 47 per cent; 45,000 page views.
 482
F I G U R E 15.1 6 The campaign calendar

Activity 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th
Competition Page Set-up and Testing
Competition Page LIVE 6
Facebook Advertising Set-up 1
Facebook Advertising LIVE 4
Graphic Creation 2
Teasing Posts 7.5
Embeding Competition Page to Facebook 0.5
Embeding Competition Page to Website 1
Uploading Graphics to Channels 2
Competition 7.5
Winner Announcement and Facebook Post 2.5
 15 | Content Marketing and Other Sales Promotion 483

F I G U R E 15.17 Topline overall traffic

10000

9000 8651

8000

7041
7000 6856

5789
6000
5289
5000
4332
3944 3786
4000 3753

3000

2000

1000
843

0
4-Oct 11-Oct 18-Oct 25-Oct 1-Nov 8-Nov 15-Nov 22-Nov 29-Nov 6-Dec 16

Topline.ie Elements of Developer Doc #12StovesOfChristmas

Launched Deployed Meta Titles, URLs,
Sitemap
SOURCE: Topline

the brand and customer relations. They can be

Advantages and ­ eveloped strategically to strengthen relationships
d
disadvantages over time. Increasingly content marketing is used
in B2B marketing to capture email addresses, de-
Here are some of the advantages and disadvantages velop leads and constantly nurture the customer
to consider when deciding whether to increase or relationship.
reduce this communications tool.
Disadvantages
Advantages Promotions require other tools to promote them,
Sales promotions are useful when trying to close the eg advertising, PR, direct mail or social media an-
sale or push the customer through the last stage of nouncing the promotion. What can go wrong will
the buying process. They can also help to keep a go wrong, hence the need for insurance. Some pro-
relationship alive with existing customers by re- motions actually damage the brand. Promotions
warding their loyalty. Sales promotions can support can be expensive to set up, procure, administer and
 484 Part Two | Communications Tools

wind down, although third parties are generally cost-effective on a cost-per-order (CPO) basis.
contracted to do so. On a CPT basis, promotions Content wars make content marketing a more chal-
are expensive, although they can prove to be more lenging type of sales promotion.

Key points from Chapter 15

●● Sales promotions can be used strategically ●● Attention to detail is required, as sales
rather than simply as short-term tactical tools. promotions can go horribly wrong.
●● Sales promotions must integrate with other ●● There is room for enhanced creativity, as social
elements of the marketing mix. media has opened up a vast range of
collaborative opportunities.

References and further reading

Bird, D (1990) No mileage in frequency marketing, Farrell, J (1989) Which countries allow which
Marketing, 10 October, p 12 promotions? Marketing Week, 16 June, pp 75–77
Bird, J (1997) How to keep them faithful the world Grobel, W (2013) Marketing and insights practice
over, Precision Marketing, 26 May manager, Deloitte, CIM Gamification webinar, July
Bond, C (1991) Marriages of some convenience, Hammett, E (2018) Honda ‘ditches’ agencies in move
Marketing, 10 October, pp 23–26 to take charge of its brand, Marketing Week, 24
Britt, B (1990) Coke’s magic spells trouble, October
Marketing, 31 May Henderson, B (2018) Storymaking: How to shape the
Burke, B (2013) The gamification of business, Forbes, stories that people share about brands, Chief
21 January Marketer, 14 February
Castling, J (1989) Buying strategic sales promotion, Hollinger, P (1996) Electronic age raises ghost of
Sales Promotion, July, p 11 Green Shield stamps, Financial Times, 9–10
Chaffey, D and Smith, PR (2017) Digital Marketing November
Excellence, 5th edn, Routledge, Abingdon Holloway, P (1989) Getting it right in the 90s, Sales
Chaffey, D (2015) The content distribution matrix, Promotion, February, pp 23–24
Smart Insights, 20 January Hyslop, R (1989) Round table discussion, Sales
Chaffey, D (2018) The content optimization matrix, Promotion, July, p 14
Smart Insights, 16 April Kotler, P (2000) Marketing Management: Analysis,
Chapman, N (1985) Cadburys pays up in Typhoo planning, implementation and control, Millennium
game, Marketing Week, 17 May edn, Prentice Hall, Englewood Cliffs, NJ
Cummins, J (2003) Sales Promotion: How to create Marketing Breakthroughs (1991) Polish give-aways
and implement campaigns that really work, 3rd struggle to reach target, December
edn, Kogan Page, London Marketing Week Reporters (2018) 2018 year in
Diaz, A C (2019) Brazilian campaign from David SP review: It’s been a bad year for…, Marketing
is latest clever play to get consumers using the app, Week, 10 December
Adweek, 20 March McGovern, G (2018) Keeping digital teams happy
Douglas, T (1987) The Complete Guide to versus keeping customers happy, gerrymcgovern.
Advertising, Pan Macmillan, London com (archived at https://perma.cc/HV6Y-DZWG),
Ehrenberg, A, Hammond, K and Goodheart, G 5 August
(1991) The After-Effects of Large Consumer Meaningful Brands (2019) Havas Meaningful Brands
Promotions, London Business School, London Report 2019 [online] https://www.meaningful-
brands.com/en (archived at https://perma.cc/
XGK5-CAGW)
 15 | Content Marketing and Other Sales Promotion 485

Miller, J (2018) Don’t let ‘best practice’ take over Smith, PR (2013) Gamification: the good, the bad and
your brand, LinkedIn Sales and Marketing the ugly, http://prsmith.org/blog/ (archived at
Solutions EMEA blog https://perma.cc/67JZ-HYWA), 9 October
Nielsen (2015) Trade promotion doesn’t have to be a Smith, PR (2014) Customer retention isn’t boring,
guessing game, Neilsen’s Trade Promotions here’s wow, http://prsmith.org/blog/ (archived at
Performance Visualisation Report https://perma.cc/67JZ-HYWA), 22 August
Pelling, N (nd) http://www.nickpelling.com/ (archived Smith, PR and Chaffey, D (2001) eMarketing
at https://perma.cc/95HM-ZX29) eXcellence, 2nd edn, Butterworth-Heinemann,
Schaefer, M (2014) Content shock: Why content Oxford
marketing is not a sustainable strategy, Sturt, D and Nordstrom, T (2018) 10 shocking
Businessgrow, 6 January workplace stats you need to know, Forbes, 8
Schaefer, M (2018) Is content marketing sustainable? March
SlideShare, 14 February Sweeney, E (2019) Consumers see 77% of brands as
Schaefer, M (2019a) 12 incredibly easy ways to create not meaningful, MarketingDive, 22 February
content with emotional impact, Businessgrow Toll, E (2014) Content marketing strategy: 5 essential
Schaefer, M (2019b) Marketing Rebellion, Publisher tips, Champion Communications 18 September
Services Yardy, R (2015) Your parents were wrong! You were
Schnaars, S (2013) General manager EMEA, not ‘wasting your time’ playing computer games,
Badgeville, CIM gamification webinar, July Digital Doughnut, 15 July
Smith, D (2008) Google, 10 years in: Big, friendly Zeisser, M (2010) Unlocking the elusive potential of
giant or a greedy Goliath? Observer, 17 August social networks, McKinsey Quarterly, member
edn, June

Further information

British Promotional Merchandise Association Marketing Agencies Action Group (MAAG)

(BPMA) 82 Great Suffolk Street
Fetcham Park House London SE1 0BE
Lower Road Tel: +44 (0)20 7535 3550
Fetcham, Leatherhead www.marketingagencies.org.uk/
Surrey KT22 9HD
Tel: +44 (0)1372 371 184 Promota UK Ltd (Promotional Merchandise Trade
www.bpma.co.uk Association)
1310 Solihull Parkway
Content Marketing Institute Solihull
2 Penn Plaza Birmingham B37 7YB
15th Floor Tel: +44 (0)8453 714335
New York Fax: +44 (0)8453 714336
NY 10121 www.promota.co.uk
USA
www.contentmarketinginstitute.com

Institute of Promotional Marketing Ltd (IPM)

Holborn Town Hall
193–197 High Holborn
London WC1V 7BD
www.theipm.org.uk
 486

16
Direct mail, email,
messaging and
chatbots
LEARNING OBJECTIVES
By the end of this chapter you will be able to:
●● be aware of the changing trends in one-to-one direct marketing;
●● understand how email, messaging, Messenger and direct mail work;
●● integrate direct one-to-one marketing into both acquisition and retention campaigns;
●● check that you are GDPR compliant;
●● understand the advantages and disadvantages of different direct marketing tools.

Introduction 487 GDPR 500

Direct mail 487 Keeping the relationship alive 501
Email 487
Messaging to mobiles 487 Managing a direct mail campaign 501
Messenger bots/chatbots 488 Situation analysis 501
Contact strategy 488 Objectives 501
Email types 488 Strategy 501
Tactics: Creative mailings 501
Objectives 488
Direct response vs brand building 488 Action 502
Customer acquisition 490 List buying/hiring 502
Customer retention 490 Integrated systems 502
Timing 503
10 success factors 491 Control 504
Initiating conversations via social media, Messenger
and CRM 492 Advantages and disadvantages 517
Integrating tactical tools 493 Advantages 517
Disadvantages 517
Issues and challenges 498
Email challenges 498 Key points from Chapter 16 518
Data decay rate 499
Digital marketing best practice checklist: Email list
References and further reading 518
decay 499 Further information 519
 16 | Direct Mail, Email, Messaging and Chatbots 487

However, a relevant, aesthetically pleasing and timely

Introduction piece of direct mail can still work (see Greenpeace’s
email success that generated more sales than any
Direct marketing includes any marketing communi- other tool, p 497), particularly if it is t­ hree-dimensional,
cations tools that interact directly with customers. and perhaps delivered in a jiffy bag, which can arouse
This includes direct response advertising, telemar- curiosity and ensure the envelope is opened. A plastic
keting and email, messaging, direct mail and now cucumber mailed to media buyers in the UK once
chatbots. This chapter explores direct mail, email, proved to be the most successful mailshot at that
messaging and Messenger within the context of a time. Media buyers kept the cucumber (with a data
contact strategy. services company’s details on it) on their desks for
months afterwards. Today, direct mail can form a
surprisingly pleasant part of the mix within a contact
Direct marketing is never alone strategy.

It rarely ever, these days, works on its own. It is Email

usually one component of a contact strategy for
customer retention or maybe even customer Once upon a time email marketing was considered
acquisition. Email (and messaging, direct mail and to be an innovative and exciting way of communi-
even Messenger) integrates with a series of cating with prospects and customers (1990s). Then
contacts – which can be a microsite, a Facebook
as everyone started using it, individuals’ email bins
got saturated and important emails got buried. The
page, a personalized video (more later on real-time
average worker receives 121 emails per day and
personalization), snail mail and even a
only approximately 20 per cent are opened (Smith,
salesperson’s visit or call.
2019). The emergence of the derogatory email word
‘spam’ occurred. Spam and other breaches of per-
sonal privacy irritated people so much that privacy
laws and eventually GDPR (see Chapter 10) came
In fact, these one-to-one tools can create conversa- into legislation to protect people from the vagaries
tions that unveil even more information about the of unethical, and now illegal, spam emails. However,
visitor, eg a Messenger bot (primarily on Facebook, permission-based, carefully targeted and highly rel-
which is the dominant Messenger platform) can evant email is generally ­welcomed and does have a
collect additional information from conversations. role to play in the mix within a contact strategy.
Very rudimentary data can be easily pulled from
Facebook, such as name, profile picture and gender.
‘But then once visitors start to talk to you through Messaging to mobiles
Messenger you can start asking them questions and
you can use those answers to inform what you are Whether text messages, vouchers, downloadable
going to send back. This is real time personaliza- podcasts, video clips or photos, messaging to
tion of the content (eg a personalized video)’ ­mobiles/smart phones is going to get bigger, it is
(Redgate, 2019). But first let us introduce the vari- safe to say here that special offers made only to rel-
ous tactical tools that help one-to-one conversa- evant target prospects as they pass by a relevant
tions or correspondence. location will work, at least in the short term.
Longer-term success will be determined by how
well the industry regulates itself and the need for
Direct mail privacy (which is an issue that will continue to
grow in importance also). If too many location-
Once upon a time, precisely targeted direct mail, based mobile messages appear and clutter inboxes,
with relevant incentives, and relatively cheap lists to customers will bar such messages and may also
hire, became the clever marketer’s approach (1980s). take legal action. As email is still popular, we will
Then, as it grew and customers became saturated look at seven email types later.
with piles of ‘junk mail’, it lost its ­attractiveness.
 488 Part Two | Communications Tools

Messenger bots/chatbots contact strategy. Equally, we see more and more

contact strategies using messaging and chatbots
Chatbots are automated messaging that chat with (more later).
people. Chatbots use AI. Facebook Messenger bots The contact strategy can include messaging, email,
are the same as Facebook chatbots. Messenger bots snail mail, telemarketing and even personal visits.
are primarily on Facebook, which is the dominant The mailings (online or offline) can be short mes-
Messenger platform. Chatbots have been around in sages or letters, newsletters, vouchers or full bro-
some form or shape for decades. They appear in so- chures (or links to a website section: video, ebook or
cial media, apps and websites. Bots are basically web pages). NB Short is good – scrolling on smart
programmed to understand questions, give answers, phones is getting less popular.
and execute tasks. Designed to ‘help’ the customer
by not having to search, look up, phone for info,
just ask the chatbot, who is there, 24/7, waiting to Email types
be asked to help. They should save time (no queues).
Some are better than others ●● Rented list email (rental doesn’t usually give
direct access to data nor unlimited use);
●● co-branded email (and/or co-registration);
Bots will replace everything ●● competition sites;
●● third-party email newsletter;
‘You’ve heard the buzz. Chatbots will replace ●● viral email;
mobile apps. Chatbots will replace email
●● triggered, retargeted email;
marketing. Chatbots will replace customer care
agents. Chatbots will cut your costs and
●● first-party house e-newsletter or acquisition
deal.
increase your revenue. And they’re gonna do it
all while you sleep. There’s a lot of hype floating
around right now about chatbots in general, and
Facebook Messenger bots in particular. It’s no Objectives
surprise that, according to a survey by Oracle,
80 per cent of businesses want a chatbot in Direct mail, email, messaging and Messenger can all
place by 2020.’ trigger conversations, dialogue and engagement.
Cooper (2019) They probably work best with individuals who are
already warm, ie they know you already, although
they can be used as part of an integrated contact
strategy to trigger a conversation too.
Contact strategy ‘Key Strategy Recommendation: 1. Focus your
Email does work quite well if it can be mixed in as email marketing efforts on current contacts.
part of a customer acquisition contact strategy, in- Email marketing tends to work best as a tool to
viting prospects to click through to a website for improve prospect conversion, nurturing, customer
some relevant information, followed by some re- retention, and growth. This is because emails to
marketing if their subsequent digital body language warm contacts who already know you work best.
(click behaviour) identifies them as interested pros- Don’t forget to focus on getting email opt-in and
pects as opposed to visitors that ‘bounce’ away your email marketing efforts on known contacts.’
from the site immediately (more later). Despite this Chaffey and van Rijn (2019)
(and falling email open rates), many organizations
either maintain their own database or buy (rent)
­databases (lists) of ‘opt-in’ email addresses, person- Direct response vs brand building
alize a relevant offer and, despite the very small
percentage response rates, still find it works for Although it is similar to direct mail, email is most
many markets, particularly if the email is part of a widely used for direct response (as opposed to brand
 16 | Direct Mail, Email, Messaging and Chatbots 489

TA B L E 16.1 Email types

Option What is it? Benefits Issues

1. Rented list Renting access to Reach into new List source

contacts from a list contacts High typical cost of acquisition
owner who broadcasts Low responsiveness
on your behalf Perception of spam – rent
from a reputable list owner

2. Co-branded Email sent from list Leverage partner Exclusivity

email owner but with your brand. Can also Brand mismatch
brand, message and offer co-register – sign up
on their site

3. Competition Email inviting recipient to Works best if firstly If too many people win the
email join a competition to win the prize is relevant prize, insurance required
a prize and secondly, it
relates to brand

4. Third-party Placing an ad, Responsiveness Need prime position

e-newsletter sponsorship, editorial in a compared to other Clutter
ad/ publisher’s e-newsletter options Cost
sponsorship Reach

5. Viral email An email is designed to Potentially low-cost Not achieving the viral effect
be shared and seeded to and high reach Negative brand impact
a house or rented list in Reach second degree
combination with social contacts
media promotion

6. Triggered Email that is Automated – just sit Optimizing creative, offer and
email automatically sent after a back and relax frequency
trigger event like a Can handle conversion Might have high start-up
download or cart of leads costs
abandon Availability of enough data to
target/segment

7. House Newsletters keep your Helps build a Achieving balance between

newsletter contacts informed, they relationship with informing the list member
can work well for recipient over time and selling to them
prospects who haven’t Broad testing and Creating relevant and
bought from you yet optimization options interesting content

SOURCE: Chaffey and van Rijn (2019)

building or brand awareness), although e­ -newsletters email inbox, even if only to delete it. Contrast this
in particular can also support brand awareness. with the web, which is a pull medium where custom-
Email enables a targeted, and personalized, message ers will visit your site only if there is a reason to do
to be pushed out to customers to inform and remind. so. Nevertheless, unsolicited email (spam) is illegal
They will, at worst, see the subject line within their in B2C markets and damaging to a brand.
 490 Part Two | Communications Tools

Opt-in is essential, whether B2C or B2B. Emai­l­ It is important to use some form of
ing only those who have opted in is simply best ‘statement of origination’, as otherwise the
practice. Before starting an email dialogue with cus- message may be considered spam. Cold
tomers, companies must ask them to provide their emails, unsurprisingly, tend to have a higher
email addresses. GDPR/privacy law in many coun- cost per acquisition (CPA) than other forms
tries requires customers to proactively opt in by of online marketing, but different lists should
checking a box (showing consent in some way). In still be evaluated.
the UK it is alright to email prospects either if they ●● Co-branded email. Here, recipients receive
have been customers or if they have made enquiries an email with an offer from a company with
and have given their email address. With every sub- which they have a reasonably strong affinity.
sequent email, however, marketers must offer cus- For example, the same credit card company
tomers an easy way to opt out at any time. could partner with a mobile service provider
such as Vodafone and send out the offer to
their customers who have opted in to receive
Stay within the law: Opt-in email emails from third parties. Although this can
be considered a form of cold email, it is
‘Email is an effective push online warmer, since there is a stronger relationship
communications method. It is essential that with one of the brands, and the subject line
email is opt-in, otherwise it is illegal spam. and creative will refer to both brands.
Co-branded emails tend to be more
Consider options for customer acquisition
responsive than cold emails to rented lists,
including cold email, co-branded emails and
since the relationship exists and fewer offers
placements in third-party emails. For house list
tend to be given.
emails, experiment with achieving the correct
frequency, or give customers the choice. ●● Third-party e-newsletter. In this visitor
Consider automated event-triggered emails. acquisition option, a company publicizes
itself in a third-party e-newsletter. This could
Work hard on email design and maintaining
be in the form of an ad, sponsorship or PR
up-to-date lists. Stay within the law.’
(editorial) that links through to a destination
Chaffey and Smith (2013)
site. These placements may be set up as part
of an interactive advertising ad buy, since
many e-newsletters also have permanent
versions on the website. Since e-newsletter
Customer acquisition recipients tend to engage with them by
scanning the headlines or reading them if
For those companies that use opt-in email for cus- they have time, e-newsletter placements can
tomer acquisition, there are three main options for be relatively cost-effective.
customer acquisition programmes, as highlighted
by Chaffey and Smith (2017):
●● Cold email campaign. In this case, the Customer retention
recipient receives an opt-in email from an As mentioned, email marketing is best for customer
organization that has rented an email list retention, as part of an ongoing contact strategy to
from a consumer email list provider such as keep in touch with customers and deliver them rel-
Experian, Nielsen, Claritas or a business evant updates, offers, tips and advice. It also pro-
email list provider such as Mardev, trade vides a response mechanism for customers to air
publishers, event companies, or data their views and give valuable feedback. Every con-
companies. Although the recipients have tact creates an opportunity to continuously add
agreed to receive offers by email, the email is, data to the customer profile. It is therefore impor-
effectively, cold. For example, a credit card tant that marketing integrates with the rest of the
provider could send a cold email to a list organization’s operations, particularly if there was
member who is not currently their member. a sudden surge in responses but there was no system
 16 | Direct Mail, Email, Messaging and Chatbots 491

in place to manage responses (whether asking a

out was scary. The other option was, if we’re
question, making a complaint, looking for advice or
going to email everyone every day, let’s talk to
trying to buy the product or service). Any glitches in
them in a way that’s meaningful and relevant
the system can damage the customer relations that
to them.”
have been built up over time. Well-managed sys-
tems test campaigns before roll-out and build in the In a test, they isolated the accessories
facility of continual customer profiling to identify persona and the non-accessories persona. They
which customers are likely to want which products compared the accessories customers who
or services. (See the grandfather clock story, p 89.) received the accessories-focused email (group
A) to accessories customers who received the
regular email (group B). The CTR and
Predictive analytics predict acquisition conversion rate of group A far exceeded those
of group B.
and retention, and reduce emails
Another analysis approach was identifying
high-value customers to optimize acquisition.
‘“All of our analysis was based on past
This dispelled a lot of assumptions, according to
purchases behaviour. We’re not data scientists,
Graham, such as assuming that top customers
we don’t have PhDs in our office, so any
were metropolitan customers, who liked core
predictive analysis – like who might buy in the
products like denim, but also loved accessories.
future, and what a customer might buy in the
But this wasn’t necessarily the case, Graham
future – was not something that we were able to
explains: “When we looked at where our
capture” (Victoria Graham, Guess Director of
customers really over-index and differentiate
Marketing).
themselves from the rest of our customer
Guess applied predictive analytics by first
database, they found that they were more likely
identifying and understanding their customers
to live in suburban areas. Arizona popped as a
across two dimensions: purchase-based
big state for high lifetime value customers. Their
customer personas, and high-value customers.
first purchase tended to be a knit or a sweater
These insights were then applied to predict
or denim.”’
future purchase response to acquisition and
Chaffey & Smith (2017) and Kivilis (2014)
retention campaigns. This has prompted a
change in the Guess email strategy. “Three
years ago we were emailing customers three,
possibly four times a week,” Graham says. “We
were very much batch and blast, and our email See Chapter 3, p 96 on how the fire brigade use
calendar was driven by our merchant team: If predictive analytics to predict fires through profil-
there’s a product launch, or a big promotion, like ing and how gaming companies profile and target
40 per cent off all sweaters, that was driving the big gamblers versus loss making bonus seekers.
email calendar. We’re now in the process of
changing that.”

“We’ve been cognizant of the fact that it is 10 success factors

quite likely that we were irritating our
customers with constantly talking to them. We 1 Conversation: Engaging conversation or…
had two options when we talked about getting Email marketing is two-way – are we
helping recipients to engage in a dialogue
personalized with our emails: one option was
or just pushing content at them? Ask
to cut back on emails. If today’s email is about
recipient to engage via polls, surveys,
denim, and you like accessories, you just
ratings, reviews, competitions or maybe
don’t get today’s email. But the thought of
sharing content. Keep any forms short
cutting down the number of emails we send
and simple. Add the option to opt-out
(by law).
492 Part Two | Communications Tools

2 Relevant: Highly relevant or … 8 Landing page or…

Great emails if targeted at the wrong The link clicked on in an email should,
people, become irrelevant emails, which ideally, take you to a landing page tailored
become an irritant. ‘Sense and respond’ specifically for the email. Never send
communications are driven by interactions customers to a home page where they have
from the customer. If the subject line is to start searching. Landing pages are part of
deemed irrelevant it will not even get the magic marketing formula (IRD): identify
opened. Tighter targeting equals higher need, reflect need (or show solution on the
response rates. landing page) and then deliver a reasonable
3 Incentives: Great incentive or… product or service.
Do the recipients actually want our incentives? 9 Targeting…
What benefit does the recipient gain from Although it is implicit in ‘Relevance’, it is so
staying subscribed, reading the email, important, we need to highlight it as
participating or clicking on the links? Have targeting is the variable that impacts results
we asked them what they want? The incentive the most – more than creative, timing and
should be part of a strong call to action. even incentives. Should be continually
4 Timing: Great timing or…. refined, as customer profiling and
What time of day and what day in the week preferences continually improve over time.
is best for sending emails in your industry 10 Testing….
sector? Markets differ. The only way to find Continually test to continually improve and
out is to test and learn. Some email services optimize everything over time. A/B testing
learn and adjust timing based on previous allows marketers to test different headlines,
email campaign open times. different offers, different photographs and
5 Integration: Part of a contact strategy or…. even different background colours to see
Are our emails integrated with other which perform the best. Small
channels? Is the email part of a sequence of improvements directly impact the bottom
emails or a mix of emails, snail mails, line. Test everything, continually.
messages, phone calls, remarketing – ie a Note the first eight factors were adapted from Chaffey
contact strategy spread across multi- and van Rijn’s Email marketing strategy (2019).
channels?
6 Creative: Cut through the clutter or…
Does the creative (design, layout, images) Initiating conversations via social
and the copy (words) catch the eye, arouse media, Messenger and CRM
interest and generate a ‘must open’ feeling?
Again, subject line is critical. Keep it brief, Brands pull data from Facebook feeds, Messenger
personalized and clear CTA. The ultimate bots, Twitter and CRM platforms. Consider a
test for an email in the email pile is this: Facebook feed – where a brand posts something
‘Are you more important than my partner?’ onto its page and someone posts a comment. This
There are AI systems such as Phrasee and data can be pulled (the comment they have made,
Persado that claim to optimize subject lines their handle name and photo). This data is subse-
better than humans. quently processed and used to personalize a mes-
7 Render or…. sage, or in the case of videos a personalized video
Does the email look ok when opened via complete with the user’s name, photo and comment
different email servers, different browsers and (more later).
different devices? If the recipient has ‘images
turned off’ is there some text (vs image only)? Twitter
Are images tagged so there is still some Brands use an API that pulls in all the tweet data.
message? Is the email short enough not to Brands search against the hashtag or for brands or
look too long on a smart phone? people mentioning a certain brand. This is deemed
 16 | Direct Mail, Email, Messaging and Chatbots 493

to be an ‘engagement’ from Twitter’s point of view would be like ‘Hey, Paul thanks for doing Christmas
and that is a signal of ‘intent’ from the user towards Jumper Day last year, you raised £500 lets see if
the brand (or towards a campaign) which means you can smash it and beat that this year.’ You can
that brands can then legitimately respond to includ- see these and many other personalized videos at
ing using the user’s quote or whatever they have http://prsmith.org/blog/.
said and their Twitter handle. Remember this is
only for a personalized video which will only be
sent to that individual person who then chooses to
post it or delete it. See yourself on the side of a bus

Putting your name, photo and quotation onto the

Messenger bots
side of a bus as it drives by, is an advanced video
Messenger bots, primarily on Facebook, can trigger
after effects technique.
a conversation. Initially, personal data available on
the general public level can be collected, such as
name, profile picture, gender. Once the individual
starts to talk to the brand (through Messenger) then
you can start asking them questions and use those Messenger with personalized video
answers to inform (and personalize) something A prospect is in Messenger (where you don’t have
even more relevant which you are going to send them for much longer than 60 seconds). So once
back. As mentioned, this is real-time personaliza- they start engaging, you pull that data, you run it
tion of the content. through the profanity check (that the name is a real
name and that there is no obscene language, etc).
CRM Other rules and filters can be added – eg if prospect
Comments made by a customer and stored on a is on Twitter you might only send a personalized
brand’s CRM system provide more ‘more passive video to somebody that has got over 500 followers
engagement’ data compared to the real-time per- because they are going to be more influential when
sonalization data we just mentioned. However, this they share it. Anyone with fewer followers might
can be done, as demonstrated by EchoMany, who just get a personalized image. This can be done at
worked with Save the Children on their Christmas scale, ie delivering 250,000 personalized videos
Jumper Day (see below). and sending back to 250,000 individuals via
Messenger – all done within approximately 25
minutes from the user’s first engaging (10,000
Integrating tactical tools ­videos per minute).
Then you’ve got moderation. Since you have got
Each tactical tool used in Part Two of this book user generated content (UGC), eg you are asking
naturally integrates with several other tactical tools. people to submit photos, then you need to moderate
One-to-one personalized campaigns, at scale, also that. This is a manual step that ensures a brand can
naturally integrate with a variety of tools. Let us protect itself from anything naughty, rude or
explore a few examples. obscene, or political.
Asset selection (part of moderation), puts these
CRM with emails and personalized platform tools in the hands of the brand’s social
media teams. They can add the campaign rule:
videos ‘Find people that are talking about our movie’ (eg
Data is pulled out from the CRM system of people Deadpool) and when people say something nice
that engaged with Save the Children Christmas about the movie they can be sent a personalized
Jumper Day promotion last year. We know that this video, so that needs to be checked manually. One of
person engaged last year – they raised this much five different video trailers featuring five different
money and they are based here. That data is pulled characters can be selected, depending on which par-
from the CRM system and used to inform the video ticular Deadpool character this person is talking
so then when they get the video sent to them it about.
 494 Part Two | Communications Tools

F I G U R E 16.1  Campaign rules and filters include profanity checks and minimum number
of followers required

F I G U R E 16.2 Asset selection allows the most relevant video clip/trailer to be dispatched
 16 | Direct Mail, Email, Messaging and Chatbots 495

F I G U R E 16.3 Personalized thank-you

They will get a personalized video about that par- individuals for being a fundraiser, completing the
ticular character, still personalized in the same London–Brighton bike ride video and asked them if
way – pulling in the fan’s name, their tweet, their they were ‘up for it’ again next year.
profile picture all embedded into the first few sec-
onds of the video. Messaging and ads
You can put somebody’s profile photo into the
Weve are a telco data company who helped to raise
background of a movie scene (this is called ‘mask-
awareness of Seat Ibiza by targeting both verified
ing and compositing’), effectively masking the origi-
25–54 adults and verified 18+ adults, living in prox-
nal background image out. This is a bit like green
imity to Seat dealerships, with a messaging cam-
screen technique. Dynamic effects allow you to
paign that drove through to a 360-degree landing
make the fan/prospect or customer’s name turn
page, where users explored the car by rotating their
around in 360 degrees, or you might have other ani-
phone. Results: 24 per cent not previously aware of
mation effects added in.
the Seat Ibiza; 166 per cent uplift in likelihood to
consider Seat Ibiza when next buying a car, and
Email, personal landing pages, more likely to remember Seat Ibiza after they ex-
social media and personal videos plored it in full 360 degrees.
See the case study p 505 which shows how the
British Heart Foundation emailed 13,000 fundrais- Messaging and display ads
ers a link to a personalized landing page with an BMW 2 series generated leads for the BMW 2 Series
embedded personalized video, which the fundraiser Active Tourer. Weve used a combination of messag-
could then choose to share or delete. The net result? ing and display advertising to target different family
Almost a 20 times return on campaign cost. This audiences. For example, Weve targeted first time
was followed by another personalized video at mums, young families and empty nesters with be-
Christmas. The second personalized video thanked spoke copy to appeal to their unique needs from a
 496 Part Two | Communications Tools

F I G U R E 16.4 Greenpeace ad on Facebook

new BMW family car. Twenty per cent took an ac- kids) to the beauty of the fragile natural envi­
tion to find out more about the car. Eight per cent ronment with a VR explorer kit promoted at
intended to register online to get 2 Series updates. Christmas.
Greenpeace tested ads on major platforms like
Email and ads National Geographic and found that emailing their
own database got by far the best results. See the box
Greenpeace wanted to boost awareness of global below.
issues and introduce a new audience (families and
 16 | Direct Mail, Email, Messaging and Chatbots 497

Greenpeace VR Explorer Kit campaign results

‘In total we have received 1749 orders with an average A Radio Times advert achieved just under 40 orders
amount of £13.37. We also got 57 online direct debits and two online direct debits. Also, our advert was
(membership sign-ups) and will be calling other people featured in around 800,000 copies and it definitely
in two weeks’ time to convert them into regular donors. raised our brand awareness, which should help with
Most of the external channels were very new to us, so it the longer-term results.
was a great testing opportunity for us to see what other Nat Geo Kids editorial and website also didn’t
channels Greenpeace could be investing more in, in the perform very well, as we only achieved 17 orders.
future. Taking into account the fact that Nat Geo Kids has
Most orders came from our emails (we sent two of 45,000 subscribers a month and each magazine has
them) – generating 1,302 orders (74 per cent of sales). over 100,000 circulation (90 per cent of parents read it
Paid Facebook performed quite well, generating 112 too), it was a great opportunity for us to raise our
orders (6 per cent of sales) with a £17 CPA. SMS brand awareness among new audience groups:
marketing achieved only 15 orders out of around 60,000 parents and kids.
messages sent (<1 per cent). This campaign is considered to be a “self-
Online banner advertising performed well for liquidating sales promotion” (promotions that pay for
retargeting as we got just over 100 orders (6 per cent their own cost). Whilst proving there is a need for VR
of sales) with a spend of under £2,000 (CPA of £18). It experiences, Greenpeace also grew brand awareness,
was also driving high traffic to our organic search found a new target audience (families and kids),
results and therefore our Greenpeace shop page boosted customer engagement by adding value to CX
(which wasn’t advertised in any other way than and sowing the seeds of the importance of stopping
search). On the other hand, prospecting banner climate change in this beautiful, yet fragile, world,
advertising didn’t achieve good results as we achieved amongst a new generation.’
only a handful of orders. Greenpeace

F I G U R E 1 6 .5 Greenpeace VR ad
498 Part Two | Communications Tools

Data brokers, list broker and a telco Issues and challenges

powered data offering
Email challenges
Weve are backed by O2, the UK’s leading telco
company. Twenty-three million UK adults make up their Email marketing brings its own peculiar set of chal-
transparent, verified and consented data foundation, lenges that need to be managed. Your email pro-
creating accurate data and location at scale.
gramme will fail if you are not managing these
issues adequately:
That potential for this inbuilt functionality to
create powerful mobile creative should not be ●● Deliverability: All emails are not delivered in
ignored. In fact, some brands have found a 10 times the same way through different internet
higher engagement rate on campaigns that utilize service providers (ISPs), corporate firewalls
these unique features, which could include and email systems. Your carefully crafted
anything from the gyroscope, light sensor and email may be classified as SPAM 1) due to
accelerometer through to the camera, microphone the use of spam words (like ‘free’) or 2) if
and touch screen. the reputation of your email sender is poor
Advertisers can use these sensors to make (due to previous bounced emails, complaints
existing ads feel more mobile friendly, but most or sending high volumes rapidly). Check
importantly these unique features should be your reputation using SenderScore
(https://www.senderscore.org/). The better
considered from the start and used to power
your reputation, the less likely you are to be
creative ideas full stop. In doing so brands have the
blocked for using copy such as ‘free’ or
opportunity to create rich, immersive ads that are
‘limited offer’, which have proven
more akin to the engaging experiences we have
effectiveness.
come to know and love on our phones.
●● Renderability: This refers to the difficulty of
displaying the email message as intended
within the inbox of different email reading
systems. If the email is all image-based, the
Rain-triggered emails images are not always displayed in the email
(an anti-spam measure). The email will be
‘In the United States, bowling company AMF meaningless unless it is has a powerful
works with engagement marketing specialist, subject line. Response rate will fall. Best
Silverpop, to take advantage of sudden changes practice is to ensure the body copy and alt
of weather. Live weather feeds are used to tags (tags or labels behind the images) get
trigger emails. So, if rain is forecast for the your message (and CTAs) across even when
weekend, emails are sent out to opted-in bowlers images are blocked. An additional problem is
that different email readers can display
on AMF’s database, offering discounts on and
emails differently, so they need to be coded
vouchers for the days in question. By making it
and tested to look their best across different
clear that rain is likely and outdoor activities
email readers and devices.
won’t be as much fun, AMF has been able to
boost participation and revenue. Silverpop also ●● Email response decay: Email recipients are
works with Air New Zealand, putting live weather most responsive when they first subscribe. It
is difficult to keep them engaged. A carefully
feeds into travel confirmation emails. Suggested
planned welcome strategy will include a
activities for travellers to undertake once they
series of pre-prepared emails with a variety
reach their destination, provided by the airline’s
of relevant messages, coupons, gifts and
partners, are tailored depending on the predicted
news, scheduled to be sent out over a period
weather conditions.’
of weeks and months. Response will also
Gray (2011) affect which email gets sent (see the PayPal
case study at the end of this chapter).
 16 | Direct Mail, Email, Messaging and Chatbots 499

●● Communications preferences: Recipients will ●● You could lose 5 per cent of the whole list
have different preferences for email offers, every 3 months
content and frequency, which affect ●● Your list loses two-thirds of its value in 12
engagement and response. Some list members months.
will prefer more frequent emails and others
●● Fresh emails (0 to 3 months old) are each
may prefer once a month. These can be
worth three times as much as older emails
managed through communications
(12 months old).
preferences, which can also include which
channel they prefer (email, Messenger, snail You can evaluate your email list using Dom’s for-
mail, telephone). mula based on different aspects of email response:
●● Resource intensive: Although email offers Engagement index = (D × V × CTR × 100) where
great opportunities for targeting, D = deliverability, V = views (opens) and CTR
personalization and more frequent = click-through rate
communications, additional people and
technology resources are required to carry He gives these examples:
out testing and overcome issues such as Email engagement index, 0–3 months = 11
deliverability and renderability. Having said Delivery rate = 90 per cent
that, most email services, eg Mailchimp,
Views = 35 per cent
include deliverability and renderability
testing. In addition, marketing automation Click-throughs = 36 per cent
systems and rules can be set up so that [.9 × .35 × .36 =.11 × 100 = 11 ]
certain click behaviour (on a website or with Email engagement Index, 9–12 months = 4
an email – opening it and/or clicking a link)
Delivery rate = 73 per cent
will trigger an automatic email.
Views = 31 per cent
Chaffey and Smith (2013)
Click-throughs = 18 per cent
Data decay rate is a separate, major issue affecting [.73 × .31 × .18 = .04 × 100 = 4]
email, direct mail and messaging. So we will address
it here with some specific solutions, and also when So, what to do about email decay?
we explore the importance of maintaining a clean
database in the following section.
Digital marketing best practice
checklist: Email list decay
Data decay rate
Checklist for managing email
Email marketing databases naturally degrade by
about 22.5 per cent every year. So it’s important to list decay
have a strategy to make up for these lost contacts ●● Develop a welcome programme where, over
(HubSpot, 2016). That means more than half your the first three to six months, you deliver
database erodes every three years (53 per cent is targeted auto-triggered emails to educate
gone). subscribers about your brand and products,
and deliver targeted offers.
Managing email engagement decay ●● Think about how you can reactivate list
It is inevitable that email list subscribers have their members as they become less responsive.
highest levels of engagement with a brand when ●● Segment list members by activity
they are first added to a database and that this will (responsiveness) and age on list. Assess your
decay through time. Dom Yeadon (2009) of The level of email list activity (ask what
Marketing Bureau analysed a sample of B2C and percentage of list members haven’t clicked
B2B lists that show the extent of email list decay. within the last three to six months – if they
He summarized the implications of the research as haven’t, they are inactive and should be
follows:
 500 Part Two | Communications Tools

treated differently, either by reducing regulations – eg not carrying out technical and or-
frequency or using more offline media). ganizational measures as required) – whichever is
●● Follow up on bounces, using other media to the greater.
reduce problems of dropping deliverability. Personal data includes: genetic data, bio data,
voice data, finger prints and recognition data,
●● Best practice when renting lists is to request
CCTV, photos, recorded calls, CRM and after sales,
only emails where the opt-in is within the
search strings, web reports systems log IP addresses,
most recent six to nine months when
accounts and finance, financial records, HR records,
subscribers are most active.
communications tools such as emails, Messenger
Chaffey and Smith (2017) messages, social networks and marketing databases
and profiles.
Database maintenance So, GDPR tries to protect an individual’s rights
to privacy and security of data, and protection from
A well-maintained database is crucial. A poorly identity theft. It is therefore much required. The
kept database turns an asset (database) into a liabil- onus and responsibilities it places on organizations
ity, as customers are irritated by incorrect emails, or have created a lot of extra work and cost a lot of
even worse irrelevant emails determined by seg- money. However, the net result is a better CX, and
menting a poorly maintained database. Worse still, ultimately this should benefit the business as it
you might end up in court courtesy of the new forms better relations with its customers and takes
GDPR laws (see the next section). care of their data. Data is the lifeblood of any busi-
Profile data (first name and address) is static ness today. GDPR helps us marketers to take good
data. Dynamic data is profile data generated from care of it. For more on GDPR see http://prsmith.
open and click behaviour. This data reveals inter- org/blog/.
ests, optimum times and ultimately helps you to tar-
get even more relevant direct messages in the future.
Managing incoming emails
Many organizations insult their customers by ig-
GDPR noring or mismanaging their incoming emails –
Is the General Data Protection Regulation an op- they not only lose sales but also raise anger and
portunity to boost CX, or a threat that could put damage the brands which they have spent budgets
you out of business? It’s both. A great opportunity, on building. Marketers have to be careful and man-
if you work with it. A threat, if you dare to ignore age the volume of incoming emails and reduce the
it. Do we really need the GDPR? manual workload required by outgoing responses,
The answer is ‘yes’ and here are six big reasons while somehow still growing strong customer rela-
why: tions. Whether it is a sales enquiry, an after-sales
service issue, a complaint or a compliment (five star
●● falling customer trust; rating or review), email provides a direct conduit
●● data criminals are growing; to the marketplace. Having made the effort to cre-
ate a dialogue, you need to have the systems, pro-
●● GDPR breach (poor data security) incurs big
cedures and resources in place to manage this
fines;
communications channel. This can be automated,
●● GDPR breach can close your business; semi automated or manual. However AI is improv-
●● GDPR breach can send you to prison; ing and the maturity of marketing automation will
●● GDPR protects individuals and your eventually integrate seamlessly with CRM systems
customers. (still a challenge for many organizations).
Meanwhile, unsubscribes must be deleted from
Smith (2017) your database, whether manually or automatically.
A company can be fined €20 million/4 per cent of Finally, think about a contingency plan if you get
global turnover for primary infringement (if it im- an unusually large response (see Zip World, p 611,
pacts a data subject/individual) or €10 million/2 per whose website crashed when they got an above-
cent for secondary infringement (a breach of the average response).
 16 | Direct Mail, Email, Messaging and Chatbots 501

Keeping the relationship alive the situation, message development (creative mail-
ing), media planning (list selection and timing), test-
One-to-one emails, messages, Messengers or letters, ing and monitoring, etc.
if timely and relevant, can be an excellent tactical A direct mail campaign can be planned in the
tool to keep the relationship alive. It’s a relatively same way as an advertising campaign, ie by using
inexpensive, flexible, personal communications SOSTAC® + 3Ms (see Chapter 9). However, six fac-
tool. The key is relevance and timing. See the British tors will be examined in more detail using the
Heart Foundation case at the end of this chapter, SOSTAC® structure (http://prsmith.org/SOSTAC/).
who send out a timely and useful personalized video
to fundraisers just two weeks before the London–
Brighton bike ride and follow it up with a friendly Situation analysis
‘Thank you’ email with another personalized video The usual product interrogation, trend identifica-
at Christmas time. tion and soliciting customer feedback help build a
See some quick tips on how to ‘convert custom- bigger picture as to where the brand is now, its
ers to lifetime customers’ in Chapters 19 and 20, strengths and weaknesses, competition, customer
and a more detailed approach to relationship build- trends, etc.
ing in the CRM in Chapter 3, p 75. Basically, it’s all
about common sense courtesy, listening, communi-
cating, helping and rewarding with relevant useful Objectives
gifts, at the right time (and ideally, in the right place).
Crystal-clear objectives can eventually be broken
Customer lifecycle marketing is based on the princi-
down to ensure that everyone knows where the
ple of exchange of value. Savvy brands develop a
brand is going. Ideally, marketing communications
series of structured communications across chan-
objectives should be numerical for sales, enquiries
nels to encourage further engagement, dialogue,
and even brand awareness.
purchasing and advocacy – always offering some-
thing of value to their recipients.
Strategy
Use STP (from the TOPPP SEED components of
Useful gifts strategy discussed in Chapter 9). Segmentation cre-
ates customer profiles from the database (or just
Sending a custom gift (anything you like from select profiles from a mailing list). Target or select
Amazon, a winery, or a flower shop) or company the best profiles. Positioning ensures the message is
merchandise (t-shirts, hats, pens) or instant eGifts right. Is there a marketing automation process (or
(online vouchers) in real time with handwritten manual), are there any partnerships, or a sequence
notes can be a pleasant variation (within a contact of emails? How does the data integrate with your
strategy) for the customer and adds value to the main database? Any other tactical tools used to sup-
port the email campaign (see PayPal case at the end
overall lifetime CX. Companies like Sendosa.com
of this chapter)?
do exactly that with an integrated system that fits
Remember target list selection is the most impor-
other stacks.
tant stage in the whole direct marketing process.
Sixty per cent of any project’s time should be spent
on list selection. ‘There’s no point fishing in the pool
if the pool ain’t got any fish.’ See ‘Actions’ section,
Managing a direct mail p 502, for a ‘list-buying checklist’.

campaign Tactics: Creative mailings

Whether an organization is planning an advertising Opportunities for creativity abound. Most mail
campaign or a direct mail campaign, a similarly dis- competes with bills and statements. Many of the
ciplined approach should be taken, ie researching top creative people still feel television advertising is
 502 Part Two | Communications Tools

more glamorous, so perhaps most mailings are (redundant names or addresses that the post
­restrained either by the people who create them or office return to the sender)? Are there any
by the managers who commission them. Here are known results or any references from past
some odd exceptions: users?
●● A plastic green cucumber was mailed by the ●● What is the rebate per gone-away that is
Direct Mail Sales Bureau to all UK media returned to the list owner for future
buyers to raise awareness of the direct mail cleaning?
option. ●● What proportion of the target’s total
●● The Prince’s Trust, when targeting company universe does the list represent, eg does the
chairmen, mailed a box containing a ceramic 1 million list of home movers represent all
bowl created by one of the businesses the the home movers, or half, or what?
Trust had supported (the bowl provided a ●● What selections are available (eg geographic
gift for the chairmen’s secretaries, to split, job title, etc)? Are there any additional
encourage them to pass on the pack; it also costs?
brought the achievements of the Trust to life ●● What net names percentage is quoted (ie net
for the chairmen). usable names after deduping with other
●● A briefcase was mailed to car distributors. lists)?
When opened, the briefcase resembled a car ●● Are there any rental restrictions (minimum
dashboard complete with audio system and quantities, competitive products subject to
car phone. The recipient inserted a CD and the list owner’s approval, etc)?
lifted the phone to hear a sales pitch about
why that particular car phone was Assuming the list has an appropriate profile (similar
outstanding. The briefcase further doubled as to your specified target market), clarify whether:
a point-of-sale item for the distributor. ●● it has named individuals as opposed to job
The mailing piece and the incentive can affect the titles or ‘The Occupier’;
budget significantly. Not all creative mailings need ●● it is in an appropriate format, ie labels, USB
anything other than a few clever words. One recent stick etc; if USB stick, check that this suits
mailing simply said ‘Good morning’. This generated the letter shop’s requirements;
a lot of interest, anticipation and eagerness to get ●● it is postcoded (for post office mailsort
the next mailing in the sequence. discounts).
How much does it cost? What is the lead time from
order to delivery?
Action If the list is hired, permission is usually given for
one use only. Sleeper names are planted in the list to
ensure that it is not used more than once (the sleep-
List buying/hiring ers immediately notify the list owner if they receive
Here are some questions that should be asked ­before two mailings). Hiring charges vary from £50 to
using a list: £350 per thousand. Many lists are not available for
purchase, but those that are available are often
●● Where do the names come from (eg
priced at least four times higher than the rental price.
compiled, previous mail responsive,
subscription lists, etc)?
●● When was the list built? Integrated systems
●● How often is it cleaned (updated)? Is it If carefully thought out, the operational require-
Mailing Preference Service (MPS) cleaned? Is ments clarify how the campaign will actually work.
it GDPR compliant? For example, what happens to the information that
●● When was the list last used (and by whom) is collected during a telephone conversation? How
and what was the percentage of gone-aways do the sales representatives’ diaries get updated,
 16 | Direct Mail, Email, Messaging and Chatbots 503

and who monitors their availability? Research by cross-platform or single media, and so on, is arguably
Euro RSCG Direct found ‘an irresponsible use of less important than determining strategically how
response-handling mechanisms’, with only a 70 per each mailing forms part of an overall communica-
cent chance of respondents receiving information. tions programme that develops a cumulative effect.
The majority of this 70 per cent were never con- One-off large mailings should gradually be
tacted again. Only 5 per cent ever received a follow- replaced by smaller, more frequent mailings as the
up telephone call. Is there a plan or system that database identifies what is needed by whom, and
ensures follow-up? when. Many direct mail agencies can develop a
Automation can deliver both cost savings and campaign in four to six weeks, but ideally the cam-
increased effectiveness of marketing and sales paign should be researched and planned strategi-
follow-­through. Hybrid systems help salespeople by cally, and with a greater emphasis on creativity, to
reminding them which customers need attention achieve ‘cut-through’.
this month, next month and so on. Enquiries gener- Timing also refers to identifying when a target
ated through an array of marketing efforts are all market buys and how often. Markets are constantly
dealt with (a brochure is dispatched along with a moving. Buyers drift in and out at different stages.
letter; telesales follow up for an appointment; an Some markets are seasonal, and others again have
appointment is made for the salesperson). Nothing peaks and troughs on different days of the week. Are
slips through the system. No enquiries are lost. All target respondents more receptive to a mailshot that
are followed up. The system has to accommodate lands on a Friday morning or a Monday m ­ orning?
returned goods and cancelled orders. Up-front The development and scheduling of the cam-
investment in an integrated system is falling as more paign are shown in Figure 16.6. Essentially they fol-
and more sales-tracking software packages come on low the normal campaign development sequence:
to the marketplace. brief, concept development, research artwork, pro-
duction and roll-out (note that research can be sup-
plemented by continual testing).
As in an advertising campaign, a creative brief is
Direct mail: A strain on your office? followed by concepts that are subsequently approved,
amended, researched and eventually developed into
‘Even if the response is fairly modest it can still final copy and design. This is turned into artwork
be a strain on your office resources. Could your that is checked, proofed and eventually turned into
telephone system handle thousands of calls in final approved artwork that goes to the printer. Prior
an hour? Could your staff still treat customers to this (or sometimes simultaneously) a list brief is
with enthusiasm at the end of a whole day of agreed. This defines the target market. Lists are care-
frantic answering? Do you have space for fully researched and checked.
sackfuls of mail? Do you have time to answer A list proposal is subsequently approved for
every reply quickly? If not, a specialist fulfilment ordering (purchase or hire). The letter shop puts the
company can help.’ required letter into the system ready for laser print-
Royal Mail (2001) ing on to personalized letters. Proof letters are
checked and approved while the lists are prepared,
Or at least test the campaign with a sample of the merged and purged (duplicate names withdrawn).
list to gauge the response level. The printer dispatches the brochure to the letter
shop, which then presses the button. The letters are
lasered, folded, collated and inserted with the bro-
chure or mailing piece into lasered (or window)
envelopes (sometimes pre-printed with teaser mes-
Timing sages or images) and posted (companies like Sendosa.
The faster you need something done the more it will com offer print on demand along with incentives/
cost and the more likely there will be mistakes. gifts plus all the logistics required for mailings). Then
Deciding whether the campaign should be multi-stage a dreadful quietness descends as the bags of mail are
(generate enquiries, screening, follow-up phone calls driven off into the sunset and the wait begins. Pre-
and sales visits, etc) or single-stage (straight order), mailshot tension can run riot, with nightmares about
 504 Part Two | Communications Tools

F I G U R E 16.6 Example of a mailing schedule

Creative Artwork Print Lists Computer Laser Mailing
bureau house
creative
brief

list brief

concept/ list
visuals proposal

approval/
list order
amends

final copy/ artwork print

letter text
design brief quotes

setting receive data proofs/

proofs lists prep. approval

finished printer
artwork brief

merge/
proofs
purge

output live mail house

print
files proofs brief

delivery print

delivery sort/
enclose

MAIL

SOURCE: Institute of Direct Marketing

NOTES: 1 Print includes letters, brochures, envelopes.
2 If there is a large mail quantity, the mail house need more notice.
3 If envelopes are special, their make-up requires a longer lead time.

postal strikes, redundant lists, a printing error, a Control

wrong expiry date or, worse still, a nil response level.
Good planning ensures that the best lists are Budgeting ‘money’
used (perhaps based on test results), print, proofs,
One way of budgeting is by asking: ‘How much can
dates, etc are checked, and acceptable results are
the organization afford to spend to recruit a new
projected. Even in a situation where a lot of varia-
customer? How much is a new customer worth or
bles are unknown, careful planning can reduce the
what is the allowable cost per customer? What is
chance of failure.
the customer’s lifetime value?’ Then multiply this by
 16 | Direct Mail, Email, Messaging and Chatbots 505

the number of customers required and, bingo, a TA B L E 1 6 . 2 The impact of different

budget emerges. Another way to build a budget or direct-mail variables on response levels
at least a ballpark cost figure is to calculate 50p per
mailshot. Thus if an organization is running a Different response
20,000 mailshot, then ballpark costs to cover every- between worst
thing (design, artwork, print, list, letter shop, inser- Variable and best
tion or collation incentive, envelope and postage)
would be £10,000; a 500,000 mailshot would enjoy List × 6.0
economies of scale and cost less than £250,000.
Cost per response and cost per order give the Offer × 3.0
bottom line of success or failure. Percentage response
levels vary from 0.5 per cent to 5 per cent, although Timing × 2.0
there are many examples now of much higher
rates – as high as 60 per cent – especially when tar- Creative × 1.35
geting existing customers with strong creative com-
bined with highly relevant incentives. (Note that Response × 1.2
enquiries, as opposed to orders, are easier to get and
therefore pull higher response levels.)
How much would you spend on winning a cus-
tomer? What kind of incentive would you offer a different prices, two different ways to pay, different
customer to take action and place an order? Here times for the mailings, alternative ways of respond-
are a few examples: $50 Amazon voucher; Alliance ing and several creative approaches. He found that
& Leicester (bank), £50 (to open an account); the best combination of all these factors produced a
Virgin, £400 (free laptop to selected customers); result 58 times better than the worst combination.
FedEx, £1,000 (free PC). By identifying the best and worst responses for each
variable, the maximum response variation (differ-
Test, test, test ence between best and worst) was found. Table 16.2
shows the results.
One of the advantages of direct marketing is the
Ideally, everything should be tested in isolation
ability to test, retest, change, monitor and learn
to give more realistic results. There are sometimes
what works best. Everything can be tested, includ-
so many combinations that testing might appear
ing the colour of the signature. A white envelope
endless. However, the big variables (those likely to
will do better than a manila envelope, and a brightly
have a significant impact on the bottom line) should
coloured envelope will do better than a white one
be tested. Work down the list, but stop when the
(but will it damage the long-term corporate image?).
cost of testing outweighs the benefits. As mentioned,
If 10 per cent of a direct marketing budget is allo-
direct mail lends itself to testing. It allows the mar-
cated to continual testing, then response levels will
keting manager to become more scientific and more
be continually higher.
precise – basically a better manager. Testing the col-
our of a signature may yield only one-twentieth of 1
Test and optimize per cent difference in response, but even so it still
There’s nothing new in optimization. Drayton Bird generates increased revenues, so it is worth testing
(2000) tested 12 different ‘appropriate’ lists, three everything.

C A S E S T U DY Personalized videos for British Heart Foundation bike ride

Situation participants in other events such as various marathon runs,

but the London–Brighton bike ride is BHF’s ‘owned event’.
The annual London–Brighton bike ride is the British Heart
With between 12,000–13,000 riders cycling and raising
Foundation (BHF)’s biggest fundraising event. They have
 506 Part Two | Communications Tools

money for BHF, it is the major profile-raising and fundraising videos with more personalized content, highlighting how
event each year. Some riders raise £500+, others raise £100. much they had raised, how much they aimed to raise, who
Most fundraisers use the JustGiving website, which is a had donated, etc (only donors’ names that chose to be
simple tool for fundraisers to build their own charity dona­ public were used). If donors didn’t have a JustGiving page
tion web page to help donors make donations online in a they just got a video with their name in the video. If donors
simple and easy manner. All of this exists in a hyper- had a JustGiving account they received a much richer
competitive charity marketplace. With a lot more charities video.
vying to do good and donors being approached all the time, EchoMany created approximately 13,000 personalized
while people becoming more ‘time poor’ and information vides in two hours. This had to be done at the same time so
fatigued, it is more difficult for any charity fundraisers. On EchoMany had the most up-to-date data and accurate
top of this, the donor pool is shrinking as the donating fundraising totals.
public gets older. Personalized email was tested internally to ensure it
rendered ok on all different email platforms and devices
Objectives (from desktop to tablet to smart phone). The personalized
email was sent, via the BHF email platform, to the database
BHF needed to find new ways of raising money. BHF needed complete with url link to a personalized landing page which
a creative solution to cut through the clutter, primarily had the personalized video embedded along with links to
boost fundraising and secondarily increase the profile of donate as well as to share and download the video.
BHF. The email was sent two weeks before the actual bike
ride. Many fundraisers had been fundraising for months
Strategy already, while others had started just a few weeks earlier.
BHF decided to work with Tim Redgate’s EchoMany, This was the final push: ‘Let’s see how many more donors
specialists in personalized videos at scale. Together they you can get.’
strategically decided to try to get donors to raise more
money (rather than finding many more new donors) and Actions
leverage the BHF database of around 13,000 donors, with an Here is what needed to be done when using a personalized
added value CX delivered by a personalized video campaign, video engine. Attention to detail is required. After the
which can be shared widely and used to generate more personalized video template had been approved by BHF
funds. The personalized video was also a unique reward and the data was pulled from the CRM system and the
that supports the ongoing relationship between donors and JustGiving pages, the videos had to be created at scale
the charity. quickly. Next is rendering. This is the real power behind
this personalized video platform. BHF needed to render
Tactics those videos out as quickly as possible.
EchoMany’s creative team took video footage from the Although not used in this particular campaign, the
previous year’s event and cut this into a promotional video advanced option for multi-clip video rendering allows
for the event. Building in some branded graphics based on multiple videos – eg 100 video clips can be built into the
the BHF brand guidelines, EchoMany created a personalized video in a different sequence to provide something that is
video template with placeholder content that would be highly individualized and unique.
dynamically added to the live campaign, such as the Masking and compositing – allowing clients to put a
fundraiser’s name, profile photo and fundraising target. This profile photo into the background of a movie scene – is like
template was then reviewed and approved by BHFs ‘green screen’ technique; you effectively have to mask
marketing team. things out and add in the user’s photo. Dynamic effects can
To generate the 13,000 or so personalized versions of be added to make an individual’s name turn around in 360
the video, EchoMany first pulled data from the BHF’s opt-in degrees or other animation effects. This was not used in
CRM database for the participants who had signed up for this campaign.
the event. As many of the participants provided their unique The video finally gets published when it is assembled
JustGiving IDs on sign-up, EchoMany were able to use the into a message so that it goes out as an email with
JustGiving API to cross-reference the data and enrich the something like this: ‘Hey Paul, here’s your personalized
 16 | Direct Mail, Email, Messaging and Chatbots 507

F I G U R E 16.7 The personalized email with a link to the personalized landing page
 508 Part Two | Communications Tools

F I G U R E 16.8  The personalized landing page, with three options: share, download
and donate

F I G U R E 16.9  EchoMany took the all the data that had been pulled in and then injected
it into those dynamic videos
 16 | Direct Mail, Email, Messaging and Chatbots 509

F I G U R E 16.10  Multiple video clips can be built into a video in a different sequence (not
used in this campaign)

F I G U R E 16.11 Masking and compositing

 510 Part Two | Communications Tools

F I G U R E 16.12 Message assembly

F I G U R E 16.13  End screen in the personalized video that Laura will proudly share to her
network
 16 | Direct Mail, Email, Messaging and Chatbots 511

F I G U R E 16.14 Success carried forward

video’ (with links to the personalized landing page with the £280,000. The spike in sharing happened within two
video embedded). days of the emails going out, leaving almost two weeks
Figure 16.13 shows the end screen of the personalized for the final fundraising push.
video. It generated a near 20 times return on spend (see the
At a cost of approximately £15,000, this campaign delivered
Control section).
a return on personalized video of almost 19 times (£280,000
divided by £15,000).
Control British Heart Foundation donors liked the videos. So too
●● Open rate: 70 per cent of approximately 13,000 (ie 9,100) did BHF as they want to repeat personalized videos next
registrants opened the email. year, as they continue their important fundraising efforts to
create a world free from the fear of heart and circulatory
●● Click through rate: 63 per cent of 9,100 (5,733) clicked
diseases.
through to the landing page.
●● Share: 40 per cent of 5,733 (2,293) shared the video.
Success carried forward
Assuming each individual has an average of, say, 200
friends or followers, then these videos potentially reached BHF kept the relationship with its donors warm by sending a
another 457,640 people. separate ‘thank you’ and a ‘congratulations’ personalized
●● Donations: 14 per cent increase year on year against video to each donor at Christmas time. BHF also asked the
the previous year’s donations of an estimated £2 million. donor if they were ‘up for it’ next year.
On this basis, the campaign generated an additional
 512 Part Two | Communications Tools

C A S E S T U DY PayPal: Helping Britain’s online retailers to go mobile

Situation As the microsite’s content centred on mobile optimization,

it was critical for the site itself to be fully mobile optimized.
In the space of one year, the volume of mobile payments
While responsive design is often the best approach to
processed by PayPal tripled. As smart phones became
optimization, striving to develop web content that renders
more common, there was a change in the way consumers
well on numerous devices often results in pages that are
were making purchases. This was a massive opportunity
not truly optimized for any of them.
for online merchants – and therefore an opportunity for
In this case the user interface on mobile devices needed
PayPal to reinforce its position as the leading online
to look and feel like a native mobile application. With more
payment brand by talking to merchants about how they
screen space available, it made sense for the interface on
could optimize their sites for the ‘mobile boom’.
desktops and tablets to be very different and include much
PayPal faced two main problems. Firstly, there was a
more information on each page.
general perception among merchants that going mobile
To achieve this level of device optimization, two versions
was complicated. Secondly, many of them felt that it was
of the microsite were developed. Custom client-side coding
not important to them. PayPal therefore had a twin objective
enabled the user’s device to be detected so that the correct
of instilling a sense of urgency and explaining the value of
version could be loaded automatically for each visitor. From
the mobile opportunity, while also reassuring them by
the visitor’s perspective, the same site would appear to be
explai­ning the simple steps that could be taken now, while
dramatically different when viewed on different types of
they start thinking and planning for the future.
device.
The microsite showed visitors:
Objectives
●● why optimizing their websites for mobile devices is so
The commercial advantage to PayPal was to reinforce the important;
benefits of its own mobilized payment solution. But, of
●● how to approach mobilization (guidance and advice)
course, this proposition was not compelling to merchants
together with an overview of PayPal’s mobile optimized
who were reluctant to optimize their own sites. So PayPal
payment solutions.
had to, firstly, spread the mobile commerce gospel to the
non-believers and, secondly, reinforce benefits of PayPal’s The high-quality content comprised a series of:
mobilized payment solution.
●● articles and links;
Strategy ●● interactive visual guide on the key five steps;
●● video providing an overview of PayPal’s mobile
PayPal undertook a two-phased automated email campaign
checkout service and benefits.
supported by banner ads and telemarketing and a ‘fully
mobile optimized’ microsite using high-quality content that
not only helped merchants to understand the mobile Action
opportunity, but which also helped them to begin their own This typically included the details of implementation, ie how
mobilization process. to ensure excellent execution of the strategy, and tactics.
It included internal marketing (ensuring all staff understand,
Tactics and have the opportunity to share, the campaign), as well as
detailed action plans regarding automated email marketing.
This content was presented in a variety of formats:

●● housed on a purpose-built microsite; Control/measurement

●● promoted by an email campaign;
Reporting was a key requirement, in order to be able to
●● web banner adverts; measure the success of the campaign. The microsite was
●● supported by telemarketing. hosted on the Eloqua MA platform, which meant that visitor
 16 | Direct Mail, Email, Messaging and Chatbots 513

activity on the site would be logged, either anonymously for website, and 57 per cent of all merchants surveyed had
visitors arriving from web banners or telemarketing, or by a positive view of PayPal as an enabler of mobile pay­
email address for visitors arriving from the email campaign. ments. The video proved to be the most popular asset
Alongside common reporting metrics such as email within the microsite, proving a good way to display
open rates and page visits, custom tracking was deployed content to the audience.
so that campaign reports were able to provide a view of ●● Brand preference from 70 to 78 per cent: For merchants
where microsite visitors arrived from and which devices intending to offer mobile payments, PayPal remains
they were using. the preferred solution. The proportion of merchants
Survey data gathered before and after the campaign pre­fer­ring PayPal increased by 8 percentage points to
also served to highlight the campaign’s effectiveness. 78 per cent.

Results 3Ms
●● Open rates 25–35 per cent: The campaign had a very PayPal worked with two agencies: Base One, a specialist
positive impact. Email open rates were between 25 and B2B agency, and CleverTouch, leading experts in marketing
35 per cent, driving 6 per cent of the customer base to automation. The two agencies worked together, combining
the microsite. their specialist expertise to manage the project: Base One
●● CTR – 20 per cent: Of those merchants who received an creating the content, microsite and communications material,
email from PayPal about mobile optimization, 20 per cent while CleverTouch managed the planning and delivery of the
clicked on the articles/links provided. communications and campaign measurement across Eloqua.
●● Awareness almost doubled: Of the merchants surveyed
before and after the campaign, the effectiveness of the Success carried forward
campaign awareness that PayPal provided mobilized
PayPal saw US $14 billion in payments through mobile in the
payment solutions had nearly doubled – 11 per cent
previous year and were expecting US $20 billion in the
awareness increased to 20 per cent during the campaign.
subsequent year. The microsite continued to be used as
●● Include mobile in their business plans – 24 per cent: collateral across the business and as part of other campaigns.
A quarter of merchants surveyed (24 per cent) were PayPal continued to work with Base One and CleverTouch,
encouraged to include mobile as part of their overall creating and implementing a variety of innovative online
business plans after seeing the information on PayPal’s campaigns to build on this success.

C A S E S T U DY Acronis automated marketing campaign

Situation Objective
Acronis is a software company that helps small to medium The objective was to target new customers in the UK with
businesses manage their back-up and disaster recovery the aim of achieving about 65 attendees per webinar for
operations. The automated marketing agency CleverTouch real educational engagement. From these attendees, an
launched a campaign entitled ‘Digital assets’ in the UK, estimated 10–20 opportunities per event would evolve with
which targeted senior IT contacts in organizations of up to an average value of typically £5,000, ie £50,000–£100,000
500 employees. revenue generated from each event.
 514 Part Two | Communications Tools

Strategy webinar, and those who registered but did not attend, to
identify any immediate sales opportunities. The qualified
CleverTouch marketing deployed a five-stage strategy to
sales leads were passed to the Acronis sales team for
inform identified organizations’ IT managers about the
closure (80 leads).
latest practices in storage, back-up and recovery while
meeting the objective to confirm that any existing contact
still existed and was relevant. The focus was on helping
Action
prospects along their buying cycle or journey of The campaign ran across a five-week timeframe, with
understanding and not purely selling to them or securing a typically five working days between email distributions.
sales appointment. This meant that contacts who were out of the office for a
week would not miss the follow-up email. When resending
Tactics an email, the identical email was sent with a different
subject line. Recipients’ email addresses that were no
Acronis commissioned market research to identify the key
longer valid (hard bounce) were removed from the contact
pain points for IT managers implementing storage back-up
database.
and disaster recovery solutions. The results were pre­
Marketing automation technology increased effici­
sented in an Acronis white paper entitled ‘Digital assets
encies in the whole process and workflow and reduced
research findings: Unveiling backup and recovery prac­
costs (see Figure 16.16).
tices across Europe’, which became the call to action for
the first email.
Control
●● Stage 1: Email 1 was sent to 24,000 contacts. It had a
secondary purpose of cleansing the database of The goal was to get 65 attendees to a webinar (based on
contacts that were no longer in the role or relevant. The previous history and experience). The result was over 140
initial email was re-sent to all those who had not clicked attendees, with 10 immediate opportunities (worth over
through or registered, whose email address was still approximately £50,000 in year 1) and one initial sale of
valid (c 21,500). Duplicates were suppressed at all £10,000. As a result of the campaign’s success, the same
stages. process was applied to a secondary campaign within
a three-week time frame. This second campaign had
●● Stage 2: Email 2 was sent to those who had opened the
equally successful results, with again over 140 contacts in
initial email, with an invitation to download an Acronis
attendance.
blueprint in back-up and disaster recovery. The blue­
As a result of the success, the campaign has now
print email was re-sent to those who had not opened it
expanded to other languages and regions within Europe. To
and whose email address was still valid (c 2,125). Simply
supplement the campaign with additional coverage, a
put, this email was sent to everyone who downloaded
channel partner version was developed, which was used
‘Digital assets research findings’.
by Acronis channel partners to enhance their marketing
●● Stage 3: Email 3 was sent to respondees of the first two activities.
emails inviting them to attend a market research led The key to this campaign was to nurture the prospects
webinar that again highlighted the findings from the through the campaign and create a pool of engaged
market research and linked the findings to Acronis best contacts to be used in future, more targeted campaigns, eg
practice (c 4,600). Simply put, this email was sent to direct mail. This method of continued, ongoing activity
everyone who downloaded emails 1 or 2. aimed at educating and engaging contacts is far more
●● Stage 4: Throughout the campaign a link was included beneficial than a single campaign that is executed in
that enabled the recipient to forward the email to a isolation.
friend, providing Acronis with the possibility to acquire
relevant contacts for this and further campaigns. Men/women, minutes and money
●● Stage 5: Marketing engagement was used to follow up This campaign required an estimated 10 days from Acronis
on those contacts who registered and attended the and an estimated five days from CleverTouch. It was a
 16 | Direct Mail, Email, Messaging and Chatbots 515

F I G U R E 16.15  The amount of time IT managers could lose in the event of data loss
(email 1 with ‘Digital assets research findings’ attachment)
 516 Part Two | Communications Tools

F I G U R E 16.16 Contact workflow strategy

Email 1 Opened Yes Landing Yes

1st Touch

Registered
send or Read Page Yes

Call to action
Download/
No No No Add to
list
Non-Responders

Email 1 Opened Yes Landing Yes Yes

Registered
resend or Read Page

No No No

Out of Process

Yes Yes
2nd Touch

Email 2 Opened Landing

Registered
send or Read Page Yes

Call to action
Download/
No No No Add to
list

Yes Yes
Non-Responders

Email 2 Opened Landing Yes

Registered
resend or Read Page

No No No

Out of Process
3rd Touch

Email 3 Opened Yes Landing Yes

Registered
send or Read Page Yes
Call to action
Download/

No No No Add to
list
Non-Responders

Email 3 Opened Yes Landing Yes Yes

Registered
resend or Read Page

No No No MQL

Out of Process
 16 | Direct Mail, Email, Messaging and Chatbots 517

digital multi-step campaign, with each step requiring ever- campaign, including imagery and Clever­ Touch’s devel­
increasing degrees of commitment and engagement on opment, build and delivery time, was esti­mated at £25,000.
both sides. The campaign took eight weeks to research and Currently the ROI is 4:1, and it is expected to peak at 10:1.
plan, and was rolled out in eight weeks. The budget for this

acquisition also. A well-targeted mailing in a jiffy

Advantages and bag or gift wrapped, with an attractive incentive
disadvantages inside, can generate unexpectedly high response
rates, trigger word of mouth and sometimes gener-
Here are some of the advantages and disadvantages ate publicity in the press. Finally, adherence to
to consider when deciding whether to increase or GDPR ensures all marketers are now building and
reduce the use of email, messaging, Messenger and maintaining what is arguably the organization’s
direct mail. most valuable asset: data.

Advantages Disadvantages
Email, messaging, Messenger and direct mail one- In addition to sometimes upsetting intermediaries
to-one communications can create unique dialogues (because marketing/selling directly to customers),
with customers, particularly if part of a bigger com- these direct marketing one-to-one tools used to
munications strategy. Creating conversations and have a problem with being associated with ‘junk
nurturing interactions with relevant information mail’. Direct mail is therefore also vulnerable to
creates an opportunity to also collect data. All of criticism from environmental pressure groups (if
these tools are flexible (messages and target audi- only 1 or 2 per cent respond to a direct mailshot,
ences can be changed quickly) and it is easy to this implies 98 or 99 per cent of those printed pieces
measure their performance. These tools are interac- of paper are wasted). When, pre GDPR, emails had
tive and therefore engaging as they solicit responses connotations of spam, direct communications tools
from audiences, albeit percentages of audiences. were perhaps considered less worthy marketing
Whether response or non-response, marketers tools. This is changing as campaigns are now GDPR
can use this information to improve the profiling of compliant, and therefore permission-based (ie opt-
each customer and constantly learn about what in) and more relevant.
works for them and what doesn’t. These direct tools The initial cost per thousand (CPM) for direct
lend themselves to split testing and multivariate mail is very high compared to advertising (although,
testing, with very quick response times to ensure cost per acquisition, if targeted carefully can be a lot
constant improvement. lower than for other communications tools).
The debate continues as to whether these tools Under GDPR, data has to be collected more
work best at which end of AIDA (attention/aware- carefully, stored securely and used for a limited
ness/brand awareness building/action – making sales time. This and overall database maintenance costs
or converting customers). Brand-building campaigns money, expertise and time. GDPR compliance is
tend to be served best by banner ads, PR and spon- required by law in Europe, and it does create extra
sorship, while these direct one-to-one tools, when work (although it has many benefits). Organizations
integrated into a communications strategy, are good that ignore GDPR will incur significant fines –
at helping customers to take a trial or even buy or sometimes big enough to close a business down.
repurchase. These tools certainly work for customer Finally, international direct mail, whether direct
retention and we are seeing more integrated com- mail or opt-in email, has to adhere to local regula-
munications strategies using them for customer tions that still vary (eg some countries do not allow
incentives).
 518 Part Two | Communications Tools

Key points from Chapter 16

●● Email, messaging, Messenger and direct mail ●● The systems and database behind any campaign
one-to-one communications can create unique must be fully integrated into the campaign or
dialogues. ongoing contact strategy.
●● One-to-one communications tools can integrate ●● Database maintenance is essential.
with landing pages. ●● GDPR compliance is required by law in Europe
●● One-to-one communication is always part of a ●● Organizations that ignore direct marketing and
bigger contact strategy. database techniques will suffer a competitive
●● These tools are highly targetable and relatively disadvantage.
easy to test and control (particularly email).

References and further reading

Bird, D (2000) Commonsense Direct Marketing, 4th Moriarty, R and Moran, U (1990) Managing hybrid
edn, Kogan Page, London systems, Harvard Business Review, November–
Brann, C (1984) Cost-Effective Direct Marketing: By December
mail, telephone and direct response advertising, Moriarty, R and Swartz, G (1989) Automation to
Collectors’ Books, Cirencester boost sales and marketing, Harvard Business
Chaffey, D and Smith, PR (2013) Emarketing Review, January–February
Excellence, 4th edn, Routledge, Abingdon Redgate, T (2019) Personalised videos at scale, video
Chaffey, D and Smith, PR (2017) Digital Marketing interview with PR Smith, http://prsmith.org/blog/
Excellence, Routledge, Abingdon (archived at https://perma.cc/67JZ-HYWA)
Chaffey, D and van Rijn, J (2019) Email marketing Royal Mail (2001) Getting More from Integrated
strategy: A practical guide to improving email Marketing and Making Direct Mail Work for You,
communications, Smart Insights MBO, London
Considine, R and Raphel, M (1987) The Great Brain Schlosser, J (2003) Looking for intelligence in ice
Robbery, The Great Brain Robbery, Pasadena, CA cream, Fortune, 17 March
Cooper, P (2019) Complete guide to using Facebook Smith, C (2019) 90 interesting email statistics and
messenger bots for business, Hootsuite, 9 May facts, DMR Business Statistics, 13 May
Exhibition Venues Association (2000) UK Exhibition Smith, PR (2017) GDPR: Opportunity to boost CX
Facts, Vol. 12, Exhibition Venues Association, or a threat of closure? (Part 1), http://prsmith.org/
Mayfield, East Sussex blog/ (archived at https://perma.cc/67JZ-HYWA),
Gray, R (2011) Here today... The Marketer, July/ 19 May
August Stevens, M (1991) The Handbook of Telemarketing,
Hilpern, K (2013) How to personalise your customers Kogan Page, London
experience, Marketer, March/April, p 42 Tapp, A (2001) Principles of Direct and Database
Howard, M (1989) Telephone marketing vs direct Marketing, 2nd edn, Financial Times/Prentice Hall,
sales force costs, Datapoint (UK) Ltd, London Englewood Cliffs, NJ
HubSpot (2016) Database decay, HubSpot Toffler, A (1980) The Third Wave, Collins, London
Kivilis, N (2014), Taking the guesswork out of Watson, J (1989) The direct marketing guide,
marketing: How Guess uses predictive analytic, Marketing Magazine, 9 February
Blog post, Custora blog, 10 December Worcester, R (2002) Customers: Handle with care,
McCorkell, G (1997) Direct and Database Marketing, Purple Issue, 30 October
Kogan Page, London Yeadon, D (2009) The Marketing Bureau
 16 | Direct Mail, Email, Messaging and Chatbots 519

Further information
Data & Marketing Association Mailing Preference Service (MPS)
DMA House DMA House
70 Margaret Street 70 Margaret Street
London W1W 8SS London W1W 8SS
Tel: +44 (0)20 7291 3300 Tel: +44(0)20 7291 3310
Fax: +44 (0)20 7323 3301 www.mpsonline.org.uk
www.dma.org.uk
Information Commissioner’s Office
Federation of European Direct and Interactive Wycliffe House
Marketing (FEDMA) Water Lane
Avenue des Arts 43 Wilmslow
BE 1040 Brussels Cheshire SK9 5AF
Belgium Tel: +44 (0)303 123 1113
Tel: +32 2 779 4268 Fax: +44 (0)1625 524510
www.fedma.org www.ico.org.uk

Institute of Data & Marketing (IDM)

DMA House
70 Margaret Street
London W1W 8SS
Tel: +44 (0)20 8614 0255
www.theidm.com
 520

17
Exhibitions, events
and experiential
marketing
LEARNING OBJECTIVES
By the end of this chapter you will be able to:
●● consider exhibitions, events and experiential marketing;
●● plan for before, during and after;
●● integrate particularly with PR, email, social media, sales and the overall contact
strategy;
●● develop an exhibition strategy;
●● measure the success or otherwise of events;
●● appreciate how exhibitions can be part of a contact strategy.

Introduction 521 Actions: Train exhibition staff – operational plan 525

Exhibitions 521 Control: Evaluate post-show 528
Events, conferences, summits, launches and
experiential marketing 521 Advantages and disadvantages 544
Experiential marketing with virtual reality and Advantages 544
augmented reality 521 Disadvantages 544

Managing exhibitions 522 Key points from Chapter 17 545

Situation: To exhibit or not to exhibit? 523
Objectives: Prioritize exhibition objectives 523
References and further reading 545
Strategy: Develop an exhibition strategy 523 Further information 545
Tactics: pre-show, during and post-show ­
follow-up 525
 17 | Exhibitions, Events and Experiential Marketing 521

Introduction A product launch is a major event

opportunity
Exhibitions, events and experiential marketing pre-
sent unique opportunities to meet prospects and When Jaguar Land Rover launched the Range
customers, engage with them, learn from them, Rover Sport, guests were invited to attend a live
generate leads, enquiries, sales and even strengthen
film of the upmarket car being driven all the way
­existing customer relationships. Whether it is an
from the New York docks to the venue. Not very
exhibition or an event like a conference or summit,
exciting you might think; however, when the actual
a roadshow event or an experiential branding ex-
car was driven into the venue the driver, James
perience, they all use a physical space to get people
Bond 007 Daniel Craig, stepped out from the driver’s
engaged with the brand. Some will expand that
physical space into augmented or virtual space. We seat. This event engaged and enthused 750 VIP
will see more and more augmented reality and vir- guests and simultaneously connected with 20,000
tual reality integrating into these ‘events’, as in the others who had already registered to watch this
RSA case at the end of the chapter. They all require event live also. Some four million viewers have
meticulous planning and execution before, during since watched the recorded video, while the many
and after the events. Done well, they can be very hundreds of mobile photos snapped at the event
potent marcomms tactical tools. Done poorly, have been shared and reshared across thousands
they are a waste of resources that also damage the of networks.
brand.

Exhibitions JCB construction machinery use fully

Imagine bringing a whole market together, under immersive experience
one roof, for a few days. An exciting idea? An ex-
plosive concept? It happens all the time. Exhibitions JCB, whose yellow machinery is seen on
are unique in that they are the only medium that construction sites, created a global roadshow that
brings the whole market together – buyers, sellers delivered a 300 per cent boost in sales. A three-day
and competitors. Products and services can be seen, event ran 13 times in four weeks as more than 3,000
demonstrated or tested, and face-to-face contact customers attended. Marquees, fireworks and
can be made with a large number of decision mak- dancing diggers ensured that delegates had a fully
ers in a short period of time. immersive experience, and orders were placed
there and then.

Events, conferences, summits,

launches and experiential
Experiential marketing with virtual
marketing
reality and augmented reality
In fact some organizations are exploring parallel
areas, such as conferences and summits (their own Experiential marketing creates experiences between
or third-party conferences where they can exhibit a brand and a customer (or stakeholder). Experiential
and/or speak) and events that can expand into ex- branding is more than just dressed-up, branded char-
periential marketing where brands are activated acters giving out free samples. We now have pop-up
and brought to life by creative experiences in both shops, roadshows (see the RSA case p 531), publicity
the real world and virtual worlds. stunts and Google’s very cool Curiosity Rooms (see
the case on p 538) and, of course, augmented reality
and virtual reality (again, see the RSA case).
 522 Part Two | Communications Tools

F I G U R E 17.1  Mazda North American dealer meeting, Prudential real estate national
sales meeting, RNC welcome event, Gaylord Opryland Hotel Grant reopen

Mazda North American dealer meeting Prudential Real Estate national sales meeting

RNC welcome event Gaylord Opryland Hotel Grant reopen

SOURCE: Photos courtesy of CorporateMagicInc.com

Sometimes it is instore, as in the case of Disney when managing any kind of an event. For now, let us
inviting kids to become doctors for 10 minutes explore what it takes to manage an offline, real-
wearing white coats, toy stethoscopes and diag- world exhibition.
nosing Big Ted the giant teddy bear. The children
had more branded experiences while queuing as
they played with Doc McStuffin merchandise, did
some colouring-in, and watched clips from the Managing exhibitions
TV show. Kids, teenagers and adults can all step
into completely new experiences because of AR Exhibitions offer an array of opportunities, prob-
and VR. lems and challenges. They can be leveraged to the
As mentioned in Chapter 10, AR augments or maximum effect by integrating them with other
adds digital elements to a real-life view, often by communications tools and developing a longer-term
looking through your smart phone. VR, on the perspective incorporating an overall exhibition
other hand, is a complete immersion experience via strategy. Detailed exhibition planning skills require
headsets that shut out the physical world, as in the the manager to work through the following:
RSA case. ‘The premise is to create a closer bond ●● Situation: To exhibit or not to exhibit?
between the consumer and the brand by immersing
them in a fun and memorable experience’ (eConsul- ●● Objectives: Prioritize exhibition objectives.
tancy, 2018) – or a shocking one with RSA. ●● Strategy: Develop an exhibition strategy,
So, augmented worlds will continue to develop, as including selecting the right shows and
will virtual events. The same basic principles apply agreeing a design strategy.
 17 | Exhibitions, Events and Experiential Marketing 523

●● Tactics: Pre-show, during and post-show ●● recruit new staff;

follow-up. ●● be part of a contact strategy (including
●● Actions: Train exhibition staff – operational emails, snail mail, telemarketing, sales team
plan. visits, etc).
●● Control: Evaluate post-show.
Strategy: Develop an exhibition
Situation: To exhibit or not strategy
to exhibit? Ideally, exhibitions should not be used as a one-off,
Exhibitions are expensive investments in terms of ad hoc activity. They can be used more effectively
money required for renting the space, building a when: 1) they are viewed as a possible series of ex-
stand, promoting it, entertaining customers, travel hibitions; 2) they are integrated carefully with other
and accommodation. They are also expensive in communications tools; 3) they are selected and
terms of human resources and time required. planned well in advance; and 4) their effectiveness
Sometimes the cost is disproportionate in terms of is constantly measured. An exhibition strategy sum-
return on investment, and marketers have to make marizes the frequency and types of show selected
tough decisions as to whether to continue attending (eg national, international, real or virtual, exhibi-
all the usual exhibitions and conferences, particu- tion, event or roadshow). See the ‘Selection check-
larly if customers are migrating online and doing list’ below.
business there instead of visiting trade shows. For
the marketer who wants to attend some exhibitions, Select the right events
whether online or offline, here are the stages of plan- There is an increasing number of exhibitions avail-
ning that will help to boost return on investment, able, usually more than an organization can attend.
save time and, ideally, reduce workload through bet- Some are better than others. Some are far more ex-
ter planning. pensive than others and some have a smaller num-
ber of visitors. Some have better-quality visitors.
You must choose carefully.
Objectives: Prioritize exhibition
objectives
Selection checklist
Exhibitions can achieve many different objectives
including: ●● Type of exhibition: Local, national or
●● sell – generate sales and enquiries; international; vertical (tight focus of interest for
●● launch new products; buyers or sellers) or horizontal (wide range of
interest for buyers or sellers); general public;
●● reinforce relationships with existing
trade events; private events; symposia or
customers (hospitality);
conferences where a limited amount of
●● maintain a profile presence in the market; exhibiting facilities are available.
●● build awareness – external PR opportunities;
●● Target audience: Type and number of visitors;
●● market research and intelligence gathering audited figures should be made available, for
(the whole market is here);
example Audit Bureau of Circulations figures
●● competitor analysis and intelligence are approved by the Association of Event
gathering; Organisers.
●● test new ideas – product testing and informal
●● Timing: Does it meet buyers’ purchasing
creative discussions;
patterns and can the organization prepare for it
●● motivate staff – some exhibitions can be the in time? For example, foreign shows may need
focal point of the year;
to be planned 18 months in advance.
 524 Part Two | Communications Tools

●● Facilities: Any limitations or constraints; how the

organizers intend to promote the event; supporting
The ‘three-second’ test
contact events, such as dinners, award
ceremonies, seminars, breakfast receptions, etc. When you next visit an exhibition look around you
and see how many (if any) stands clearly tell you
●● Costs: Compare ‘cost of space’ and ‘size of what they offer. How many exhibition stands
audience’ ratios between different exhibitions. actually explain what business the exhibitors are in
The space cost is useful for comparison, but it and their benefits? How many stand designs
represents only a small proportion of the total actually help visitors by answering this question
cost of exhibiting. NB Miscellaneous extra items within three to five seconds before they pass by?
(see Figure 17.1) rapidly cause costs to escalate.
●● Previous success: How long has the show been
running? Has it been a success previously? Is it It is surprising to observe the number of organiza-
enjoying year-on-year growth? Are there any tions that promote their name first and foremost,
customer (exhibitor) testimonials or references perhaps followed by a product name, and some-
available? where, almost hidden, the product and product fea-
tures and benefits are displayed. Product benefits
●● Endorsements: What official bodies are
(what buyers really seek) cannot be seen easily.
supporting it? There are independent surveys
The exhibition stand design should be consistent
that list visitor numbers, visitor quality, sales
with the organization’s corporate identity guide-
enquiries and a summary of exhibitors’ results lines and the brand design guidelines (see Chapter 2).
(see ‘Evaluate post-show’ below). These specify the logo style, typefaces, and primary
and secondary colours. The overall stand design
must catch the visitor’s attention and attract them.

Agree on a design The design brief

The stand design is a key factor in the overall exhibi-
The design brief for an exhibition stand can use the
tion strategy. It should present the right corporate/
extract SOS + 3Ms from SOSTAC® + 3Ms discussed
brand image, announce the product or service and
in Chapter 9 (p 264). Essentially, the designer needs
visualize benefits, attract interest and look aestheti-
to know: who the target audience is; in what kinds
cally pleasing while providing for other functions
of exhibitions the stand might appear; the exhibi-
such as display, demonstration, discussion, hospitality
tion locations and preferred stand locations (within
and storage (of spare samples, literature, coats, etc).
the exhibition); stand size and function (display,
Clarifying the key performance indicator (KPI) for
demonstration, hospitality area, access and service
the exhibition, whether it is sales, enquiries, trials,
facilities required); and whether the stand needs to
visitors, etc, or boosting awareness of a key message
be re-usable. Information on competitors and their
helps to guide the overall design of the exhibition
stands is also useful.
stand.
Additional information such as the design manual
A visitor may have less than three seconds to scan
and the dimensions of any display items is also impor-
and decide whether to enter a particular stand instead
tant. The success criteria must be listed and objectives
of one of the many others competing for their atten-
prioritized. The designer also needs to know the over-
tion. Buyers have only a limited amount of time to
all exhibition strategy. Tactical information is some-
visit a limited number of stands. Buyers have to
times included, for example any promotional ideas,
choose quickly whether to visit a stand or not.
specific numbers of staff and visitors on the stand at
Buyers often decide what route they will take and
any one time, whether any promotional off-stand
which stands they will visit before entering the main
activities will be attracting visitors on to the stand,
exhibition hall. Despite a pre-planned schedule of
whether the stand will be used for photo opportuni-
visits, a busy buyer can still be tempted by an excel-
ties, and what kinds of electronic gadgetry (data pro-
lent stand design or interesting promotional stunt.
jectors, laptops, sound, etc), products and sales
However, a stunt can also attract time-wasting,
stand-congesting, non-target-market visitors.
 17 | Exhibitions, Events and Experiential Marketing 525

literature need to be displayed. The designer also In summary, pre-show promotional activity can
needs to know about the 3Ms – the three key resources involve:
of men/women, money (budget) and minutes (time –
●● social media activity (announcements,
set-up and knock-down time).
inviting visitors); updates (photos, videos,
The whole exhibition design should focus on key,
tweets, posts) during the build-up (plus
measurable objectives – are all the elements linked
thank-you notes after the event);
up to and consistent with the overall exhibition
strategy, etc? Sound, sight, space and even smell can ●● content calendar (see p 457) with marketing
be used creatively by a designer (there are, however, content created for and by the events;
likely to be some constraints imposed by the organ- ●● snail mail invitations (with an incentive?);
izers). Good designers exploit both two-dimensional ●● email invitations and reminders;
design (eg graphics) and three-dimensional design
●● telesales key customers or prospects;
(eg the use of space).
●● field sales force briefing (to invite their key
customers);
Tactics: Pre-show, during and ●● press activities;
post-show follow-up ●● sponsored activities;
Careful pre-show promotions can ensure a steady ●● perimeter advertising (around the venue) and
flow of visitors on to a stand. Direct mail, linked location-based advertising (see p 377);
with an incentive or sales promotion, free tickets, ●● press advertising (trade magazines and
inserts, advertising, publicity, etc, can all be used to exhibition manual);
get visitors to decide to visit a particular stand be- ●● joint promotions.
fore they arrive at the exhibition in the first place.
Given that the average visitor visits only 13 stands,
it is important to get on to the appropriate target
Post-show follow-up
visitor’s ‘must visit’ list. Pre-show marketing identi- This is essential, but surprisingly rarely done. Seventy
fies who to expect and who to chase up. Exhibitions per cent or more of enquiries or leads from exhibi-
(pre, during and post) provide a fresh opportunity tions are not followed up (Junius, 2017). This is a
to talk to customers and prospects and therefore disgrace. All that hard work wasted. Be vigilant, set
should be part of both your overall contact strategy up a thorough and rigorous follow-up on all leads.
and your content calendar (Chapter 15). Remember, some buyers will not be ready to reply for
Advertising and editorial opportunities range two weeks, four weeks, eight weeks, twelve weeks, so
from the usual trade, professional and domestic press, send them a reminder via a different medium (email,
local and regional media, and transport (taxis, trains, letter, LinkedIn message, telephone call, etc).
buses and stations) through to the exhibition cata-
logue itself. Sponsorship of exhibition guides, maps, Actions: Train exhibition staff –
promotions, teaser promotions, free gifts and compe-
titions can all be offered to the target visitor through operational plan
advertising, editorial, inserts, mailings, social media After all the hard pre-show work, when a stunning
posts, messaging and even telemarketing. This means stand has been created, the promotion has been
that the costs of sales promotions and incentives can publicized and a good flow of traffic on to the stand
be reduced significantly by increasing the organiza- has been generated, what a shame it is to lose busi-
tion’s buying power when sourcing many different ness through staff who don’t know exactly how to
sales promotion gifts simultaneously. Delivery and deal with people. Staffing an exhibition stand is
invoicing can also be staggered or delayed so that hard work. The day becomes even longer when staff
cash flow bottlenecks do not occur. It might be pos- have no goals, no targets and no exhibition training.
sible to run a joint promotion with a non-competing The team needs to be briefed about why the organi-
exhibitor so that your product or service (or even just zation is exhibiting (including specific objectives
the incentive) is combined with someone else’s to pro- broken down into daily objectives). Exhibition
mote both sites as ‘must see’ sites. training helps staff to know:
 526 Part Two | Communications Tools

●● how to physically stand (the importance of Increase newsletter sign-ups

body language);
Staff can be trained to ask prospects what they need
●● how to approach a visitor (never with a to know about the staff’s business, then show the
closed question such as ‘May I help you?’ – prospects some really relevant content from the
try open-ended questions like ‘What caught blog or white papers and invite them to get regular
your eye?’); free updates via signing up for the newsletter. This
●● what kind of information should be gleaned boosts the size of the prospect database.
from visitors (see the box below);
●● when a senior manager should be called over; Boost social media engagement
●● how to demonstrate (product knowledge and with a social butler
skills);
Some events have social butlers who, equipped with
●● how to close a sale; their tablet, take photos and videos of visitors and
●● how to present records (ask permission to then offer to post them immediately to the visitor’s
use their business card details to follow up social platform with the appropriate hashtags. All
with special offers from time to time). the visitor has to do is hit their own ‘share’ button.
Staff should practise all of these before the show
starts each day (or during quiet moments during the Finalize the exhibition action plan
show). Everything, from staffing to samples and sales pro-
motions, has to be meticulously planned. Even con-
tingencies should be allowed for. Exhibitions are
hard work. A staffing roster schedules staff so that
Six essential questions for qualifying they can have a break and a chance to look around
a prospect the exhibition (and report back on their observa-
tions). How many visitors are expected? How many
‘Thanks for stopping. How are you familiar staff will be required? How many junior and senior
with...?’ or ‘What attracted you to our display?’ staff? Comfortable shoes, regular breaks and solid
or ‘What do you see that you like?’ (This gives rest between exhibition days are also essential.
the history of the prospective buyer and tells Individual performance on the stand can be meas-
you where to start selling.) ured against pre-set criteria (number and quality of
enquiries, etc). Social media integration: are all the
‘What’s your situation now?’ (This tells you if
staff aware? Are there guidelines regarding social
the prospective buyer actually has a real live media? Does everyone know the event hashtag and
need.) key messages? Here’s how some organizations inte-
‘What would you like to achieve [or change]?’ grate Instagram and other social media into their
(This further defines the prospective buyer’s exhibition activities.
application of your product.)

‘What are your concerns as to budget?’ (This 10 ways to integrate social media into
tells you if the prospective buyer has the exhibitions, events or conferences
money.)
1 Add a photo-sharing social network to your
‘How does your timetable look on all of this?’
exhibition, event or conference checklist so
(This gives you the prospective buyer’s
that you can increase engagement with your
timetable for buying or acting.)
visitors and maybe even grow your database
‘How would you like to proceed from here?’ with more leads.
(This lets the prospective buyer take over.)
2 Get the event hashtag before exhibiting or
Engebretson (2000) attending, or establish one if you are the event
host.
 17 | Exhibitions, Events and Experiential Marketing 527

3 Search using the hashtag to find your (and another photo opportunity of presenting
prospects’ photos and ask them to visit your ‘today’s prize’). Be sure to check Instagram
stand (maybe add a small incentive): like their rules regarding competitions. Also request
photos to start establishing a relationship with permission to re-use photos posted in the
these prospects; post your own photos using competition.
the hashtag also. You can also add geo-tags
9 Re-use these photo assets across multiple
using the venue name and even add ‘visit
platforms. Set up a photo feed to the website to
stand number 301’ or ‘main lobby’ so visitors
show as a slideshow or display as a grid (during
can find you.
or after the show). Then after the show make
4 Add a tailored event landing page on your some photo montages and share cross-
website and paste the url into your Instagram platform, including maybe a creative blog post
profile information (you can change it after the featuring lots of photos. NB Get permission to
event). So when someone finds one of your use any photos you take.
Instagram photos (hashtagged to the event) and
10 Finally, measure the results: (a) Increase in the
they click your avatar or name to get to your
number of your followers; (b) increases in
information they will be able to click the link to
engagement levels (likes, shares, comments);
take them to your tailor-made event website
(c) database growth; and (d) how much traffic
(well, landing page!).
was generated to the main site and whether
5 Grow your prospect database by giving them a any conversions were generated.
reason to add their details. Only ask them to fill
out a short form so they can receive some
information or maybe a prize or password to
collect a prize from the stand. Remember
Small exhibitors can be beautiful
GDPR – you must explicitly ask permission to
add their name to your database. NCH Action for Children charity had to break
through the clutter with a small two- by two-metre
6 Amplify your reach. Share your Instagram stand. Its stunning backlit graphic of children’s
photos onto other social media platforms. Note faces, supporting the ‘All children dream’ theme,
photos shared from Instagram to, say, Twitter did the trick. The stand staff were fully trained in
appear as a link instead of a photo preview (and exhibition techniques and fully briefed to
therefore have lower engagement rate). There communicate key messages and collect key
are some ‘hacks’ to post as photos. information. They fulfilled their ‘key contacts hit
7 Create a visually engaging backdrop as part of list’, snapped publicity photos with visiting MPs and
your stand design – insert a large stunning shone out from the heaving masses.
image plus your brand name/url and maybe the
event hashtag so that visitors can take selfies or
team photos with a stunning (yet clearly
branded) backdrop. Ideally the image should What can go wrong will go wrong
relate to your business benefits, values or The ‘What can go wrong will go wrong’ law runs
mission. rampant in exhibitions. Contingency planning re-
duces risks, but inevitably something unforeseen
8 Run a contest by asking attendees to repost, still occurs. One of the authors has had two such
tweet, and share their own photo with your own experiences, both of which happened at interna-
hashtag, eg #PRSmithGiveAway. You can tional shows: the first was in Birmingham, where a
monitor entries by refreshing the contest new electrical product set itself on fire while being
hashtag. Ensure the prize whether offline or exhibited; the second was in New York, where the
online can only be collected at your stand – so freight company lost all the samples and display
that you get even more personal engagement units. Other exhibition nightmares include a stand
 528 Part Two | Communications Tools

that was built upside down (because the architect F I G U R E 17. 2 This checklist needs to be
read the plans upside down) and neighbouring
stands encroaching on each other’s areas (some-
checked at the end of each day so that
times by accident), or breach of trade union regula- everything is in place for the next day
tions by using a hammer or screw-driver!
To minimize risk of errors, checklists can be used
to ensure execution is professional at all times. Daily Checklist
Figure 17.2 shows a simple daily checklist used at
Appointments diary
the end of each day in preparation for the next day.
Visitors book
Enquiries log/lead form
Ensure follow-up
Badges
The exhibition is not an end in itself, although by
Business cards
the end of the show the exhausted staff probably
feel as though it is. Careful follow-up work must Brochures
start almost immediately. This is where the organi- Press packs
zation can earn its return from the exhibition. Samples
Leads, enquiries, quotations, sales and after-sales Spare parts
discussions need to be followed up in a professional Display screen
manner. This requires a follow-up meeting where all
Laptops
the staff go through the cards they collected (or
Scissors, adhesive tape, penknife
scanned), the people they talked to and the projects
or jobs that were discussed. This prevents the dupli- Fishbowl
cation, contradiction and conflict that can arise Water
where two people from the same prospect organiza- Clean glasses
tion have asked two different members of staff for a Insurance
quotation for the same job, or where two different First aid kit (including aspirins)
enquiries have emerged for the same job from two
Other?
different prospects. Worse still are unfulfilled en-
quiries. How many times have you left an enquiry
with exhibitors never to hear from them again?
Lack of post-show follow-up makes all the previous
exhibition efforts a complete waste of time. degree. How can the performance be improved?
The manager can determine who follows up Should the exhibition be run again next year? Was it
what, with a report-back meeting date set to see value for money?
what sales are actually generated. More detailed
evaluation of the true exhibition results can be car-
ried out so that future efforts are improved. It is Some post-show questions
worth formalizing the evaluation process so that 1 What percentage of the potential number
the trend, individual performance and competitor of visitors to the whole exhibition (that
performance can all be measured. fitted the target market profile) visited our
stand?
Control: Evaluate post-show 2 What percentage stopped but did not visit
our stand?
Post-show evaluation measures performance against
3 What percentage saw but did not stop at
the pre-set objectives. It also examines whether the
our stand?
objectives were realistic, whether the show was the
right show, and what was good and what was bad 4 How many leads or enquiries were created?
about the organization’s performance. A competi- 5 What was the cost per contact or visitor/
tor’s performance can also be evaluated to a certain lead?
 17 | Exhibitions, Events and Experiential Marketing 529

6 What percentage of contacts or visitors should, ideally, be separated from those incremental
plan to buy the product or service? orders generated solely by attending the show.
7 What was the cost per ‘serious’ visitor/hot Third, there is a school of thought that suggests that
lead? exhibitions do not generate sales; they only allow
the exhibitor to meet a useful target market, but
8 What was the cost per order?
whether the target market buys depends on a num-
9 How effective was each staff member’s ber of factors totally divorced from the show (eg the
performance? Research can get visitors to product, competitors’ products, and prices). CPO
rate individual staff because the visitors’ also ignores both the size of the orders and their
comments can be linked back to the stand profitability. The size of the orders could be ex-
record of contacts with a view to pressed as a percentage figure in the same way as a
continually improving/optimizing marketing communications budget is sometimes ex-
exhibitions). pressed, ie marketing expenses as a percentage of
10 Did we overspend or underspend (too large sales. In this case, exhibition costs as a percentage of
or too small a stand, or too many or too sales generated can be calculated.
few staff)?
Percentage of sales
Costs The difficulty here lies in isolating the sales gener-
ated exclusively through the exhibition, ie ignoring
Exhibition costs need to be looked at carefully. Various sales that would have been taken by the sales force
sources suggest that the cost of hiring the exhibition regardless of the exhibition. Nevertheless, the cost
space represents as little as one-fifth of the total costs of taking the same number of sales by routine sales
of exhibiting. This obviously depends on whether the visits should be compared to the costs of sales taken
cost of the stand design is included, whether there is during the exhibition.
much integrated promotional activity and whether
the opportunity cost of taking members of the sales
Return on investment
team ‘off the road’ are included. The most important
The long-term profitability of the sales is probably
thing is to be consistent, so that year-on-year com-
the most important of all the criteria. This is difficult
parisons can be made. Cost per enquiry, cost per order,
to calculate, because the lifetime value of a customer
percentage of sales, return on investment and experi-
can be difficult to forecast. However, the short-term
mental non-attendance are now considered.
ROI can be calculated by dividing the profit or con-
tribution made from the orders by the total cost of
Cost per enquiry and cost per order the exhibition.
Cost per enquiry: For example, if the orders taken during a show
amounted to £200,000 and the total cost of invest-
Total exhibition costs
= Cost per enquiry ment in the exhibition was £20,000, the calculation
Number of enquiries
would be as follows:
Total exhibition costs can be divided by the number
Sales £200,000
of orders taken to find the cost per order.
Less cost of sales (say £100,000
Cost per order: 50 per cent)
Total exhibition costs Contribution £100,000
= Cost per order
Number of orders
Less cost/investment £20,000
There are some difficulties here, however. First, in the exhibition
there is the timescale (some orders instigated by a Return or profit on £80,000
contact at a trade show or exhibition can take sev­ the investment
eral months or longer to be finally confirmed).
Second, the regular orders (which would have been This can then be
brought in by the normal sales force visits anyway) expressed in £80,000 = 400 per cent
percentage terms £20,000
 530 Part Two | Communications Tools

The real ROI should in fact only be calculated from 2 Poor performance of staff running the stand,
additional or new sales that were generated by the because of poor selection, training, motivation
exhibition. Say the exhibition generated only five or management.
new customers, who in total bought £50,000 worth.
3 Lack of follow-up of leads and enquiries.
The real ROI (on new business) would be 25 per
cent. The word ‘investment’ is a bit misleading, 4 Poor-quality visitors.
since if the exhibition stand cannot be used again it
is not an investment but an expense. If the exhibi- 5 Bad location of the stand.
tion produced only one new customer, who bought 6 Ineffective quality and design of the stand.
£10,000 worth, then the ROI would be negative.
7 Poor recognition of company by customers
Press coverage (lack of pre-show marketing and poor design).
One simple gauge is to collect the press clippings 8 Low recall of the stand by visitors (bland
from the show. How important publicity and press
design).
coverage are as exhibition objectives determines
how important publicity is among your KPIs. 9 Ignoring competition and letting them steal
your prospective visitors.
Experimental non-attendance
10 Breakdown in organization and control, eg
Some organizations decide to stop exhibiting and
unfinished stand on the opening day of the
use the opportunity to measure the impact of non-
show or late arrival of literature, give-aways
attendance on their sales and on their competitors’
exhibition results. and so on.
The many other functions exhibitions provide are 11 Inadequate arrangements made for staff
not included in the costs or revenues used in the previ- working on the stand, such as locating their
ous calculations. Other, non-selling exhibition activi- accommodation too far from the event or
ties such as maintaining a presence, projecting an failing to obtain car park permits.
image, entertaining customers, marketing research,
competitor analysis and product testing all, in a sense, 12 Inadequate control of costs and budgets,
save costs that would have been incurred if they were leading to over-expenditure and consequently
commissioned outside the exhibition. Arguably, these a poor return on investment.
‘saved costs’ could be subtracted from the other costs
in these calculations. Real costs can certainly be saved
by careful coordination throughout the whole exhibi-
tion planning cycle. Now let us look at two intriguing case studies: the
RSA (Road Safety Authority) Virtual World event
designed to stop the trend towards drink-driving
in Ireland and then Google’s curious Curiosity
12 errors to avoid Rooms, which was an unusual piece of experien-
tial branding beside London’s Piccadilly Circus be-
James Dudley (1990) highlighted research findings fore Christmas.
indicating the 12 main reasons for poor
performance. How much has changed?

1 Inadequate statements of purpose and

objectives – nobody fully knows what they are
supposed to do – eg personal and team
targets.
 17 | Exhibitions, Events and Experiential Marketing 531

C A S E S T U DY The RSA’s shockingly immersive VR experience (that saves lives)

Situation experience they will never forget. Use technology to make

the consequences of drink-driving very real.
There has been a recent resurgence of drink-driving in
Ireland. A legacy of historical anti-drink-driving advertis-
ing previously reduced this behaviour, but a new cohort of
Strategy
younger people, who have never been advertised to about Create a shocking and deeply resonant immersive experi-
this issue, are drink-driving anew. There were 146 fatalities ence called ‘Consequences’ with virtual reality production
on Irish roads in 2018 (RSA). The RSA asked BBDO Dublin that puts the users into the shoes of a drink-driver. Drink-
if they could help to reduce this worrying drink-driving/fa- driving can change anyone’s life in an instant and this vir-
talities trend. Once BBDO decided that virtual reality was tual reality series brings that reality home in chilling detail.
the best way forward, they partnered with film production Emerging technologies like VR can ultimately help to
company, assembly and VR production company, Inition, to change customer behaviour. Delivered via the RSA Shuttle
make this Webby-nominated VR experience to stop this Bus, awareness of the VR ‘Consequences’ experience is
drink-driving trend. ‘Consequences’ brings this message spreading across schools and colleges in Ireland.
home in a new and brutally immersive style.
Tactics
Objectives
Create four varied storylines to help participants to plunge
Reduce drink-driving. Get under the audience’s skin, using themselves into the shoes of a drink-driver and experience
a tech-appropriate medium, and make sure they have an the full extent of the agonising consequences of drink

F I G U R E 17.3 Stay in or head out?

 532 Part Two | Communications Tools

F I G U R E 17.4 Two narrative journeys leading to permanent injury or criminal prosecution

d­ riving – from being invited to have ‘one more’ drink in the F I G U R E 17. 5 User flow chart
pub or at home (the viewer can choose which experience
they want – ‘stay in’ or ‘head out’), to suffering the night-
mare car crash with permanent spinal injury through to be-
ing prosecuted in court.
Then, two narrative journeys take the viewer either
through the jarring medical experience of permanent injury
or to the lonely confines of a prison cell. Experiencing a drink-
driving related crash first-hand is the surest way to never
experience one again. The RSA and BBDO are giving people
that chance. This VR experience is housed permanently on
the RSA’s shuttle travelling across Ireland all year round.
The RSA also sends the cardboard goggles to schools that
have heard about the shuttle and its immersive virtual experi-
ence but whom the RSA cannot visit due to the growing wait-
ing list of schools. So the teachers are also sent a bullet point
activation email, video link and cardboard goggles.

Actions
Detailed project planning was required to produce the im-
mersive video (shot in 6K with 3D audio), including story-
boarding and shot planning (see the courtroom shot map,
Figure 17.6).
 17 | Exhibitions, Events and Experiential Marketing 533

The user flow chart (Figure 17.5) shows the potential jour- The RSA also sent training staff to schools and colleges
neys that the viewer might experience. The ‘crash’ is the that can’t visit the shuttle bus. These staff are equipped with
one constant factor. This one scene can lead to one of Oculus Go’s wireless version of the experience on the shuttle
four possible journeys, making sure everyone has a bus. The VR headset is near identical, just the Oculus Rift on
slightly different experience to chat about afterwards: 1) shuttle has higher processing power, which can lead to
bar – jail; 2) bar – wheelchair; 3) home – wheelchair; slightly higher picture quality and sound. But, overall, the
4) home – jail. Oculus Go still delivers a very hard-hitting experience for peo-
The shot map for the court room scene is used in pre- ple who can’t visit the shuttle to teach them about the dan-
production to outline where the 360 camera will be posi- gers of drink driving. The Oculus Go RSA VR app is also avail-
tioned and the type of real estate and other key actors that able to download from the Oculus Go store for users lucky
will be present, so set-designers can start to plan the scene enough to have their own Oculus headset (retailing at €300).
around it (Figure 17.7). Any other remaining schools that don’t get a visit from
After the 360-degree video production, the logistics of the RSA team can request the teaching pack (cardboard
the RSA Shuttle Bus also have to be planned meticulously goggles plus bullet point activation list plus the link for the
before it travels across Ireland to schools that are waiting videos), which the RSA subsequently send.
anxiously for their turn with the immersive experience. Journalists who cannot visit the shuttle but are inter-
Testing was done between June and November 2018. ested are also given the cardboard goggles, the tips and
The Shuttle Bus was launched in December 2018. the url link.

F I G U R E 17.6 Shot map (for the court room scene)

 534 Part Two | Communications Tools

F I G U R E 17.7 Storyboards plan each scene

 17 | Exhibitions, Events and Experiential Marketing 535

F I G U R E 17.8 Interactive shuttle statistics

Interactive shuttle programme
June July August September October November December January February March
Locations
16 19 15 11 20 18 4 13 12 17
No of
visitors 15,965 17,586 20,294 27,195 6,687 12,294 990 15,695 4,783 16,387

F I G U R E 17.9 The RSA interactive shuttle

Key visuals immersive ‘Consequences’ experience, to visit their school,

festivals, businesses and events.
Key visuals have to be created to promote the experience
The RSA Shuttle Bus and the ‘Consequences’ experience
once it’s been created. A single hero visual/identity that
has almost instantaneously become one of Ireland’s most
can be easily recognized is created. Lots of concepts are
accessible high-end VR activations, with over 135,000 views
drawn up until one is chosen. Once the concept is chosen,
so far.
it is worked up, art directed, shot and retouched to create
Most importantly, this innovative VR experience has al-
the master visual for the campaign.
ready changed lives, saved lives and is inspiring drivers to
change their behaviour away from the drink-drive trend that
Control/results (to date) has emerged in recent years.
Over 135,000 students have experienced ‘Consequences’ (the The BBDO 360 Video has also been nominated for a Webby
VR experience). RSA have a waiting list of schools and col- award: agency: BBDO; film production company: Assembly;
leges and events wanting the shuttle bus, and the unpleasant VR production company: Inition.
 536 Part Two | Communications Tools

F I G U R E 17.10 Virtual reality set-up Note: If you want to experience ‘Consequences’:

1 Use a smart phone with at least a 5.1 inch screen and

gyroscopic technology, eg iPhone 8+ or Samsung galaxy
S7+.
2 Open up your YouTube App manually, and search for
‘RSA VR’.
3 Click the ‘Cardboard Goggles’ icon in the video player
control panel.
4 Ensure you are in ‘landscape’ orientation.
5 Click ‘Play’.
6 Place phone in Google cardboard goggles.
7 Put goggles on.
8 Experience ‘Consequences’ (move your head and look
around).

See the online resources to see how this kind of video was
created. See a ‘behind-the-scenes’ video on how this VR
experiences was produced, and more.

F I G U R E 17.11 Cardboard goggles

 17 | Exhibitions, Events and Experiential Marketing 537

F I G U R E 17.1 2  Two key visuals, one of which is developed into the master visual – the
promotional visual for the campaign shown on the right

F I G U R E 17.1 3 Participants on the RSA Shuttle Bus

 538 Part Two | Communications Tools

F I G U R E 17.14 Promotional poster

C A S E S T U DY Google’s Curiosity Rooms: Experiential branding

Google’s five-week Curiosity Rooms branding exercise was Objectives

located in Piccadilly Circus, London – where retail design
Build and strengthen awareness of the Pixel 3 phone. Get
meets experience design.
the Pixel 3 phone into the consideration set of the target
market.
Situation
The Google Pixel 3 phone is a challenger brand in the Strategy
­hyper-competitive mobile market place.
Promote awareness and nurture consideration of the Pixel
3 phone among younger tech-savvy consumers by inte-
Target audience
grating retail design with experience design, and convert-
Consumers who are naturally curious and willing to inno- ing the prestigious location 55 Regent Street in London’s
vate. Google hope to engage the younger tech-savvy and Piccadilly Circus into ‘Pixeldilly Circus’, an engaging expe-
tech-positive audience who are in tune with culture, fash- riential brand exercise.
ion and experiences.
 17 | Exhibitions, Events and Experiential Marketing 539

F I G U R E 17.1 5 All-in auto wash

SOURCE: Matt Monfredi

A free specially curated experience opened for five weeks Tactics

before Christmas. All integrated into Google’s Pixel 3 cam-
Twelve windows, three floors and a packed programme of
paign which is all about discovery and making every day
free talks, workshops, gigs (YouTube music gigs), coffee
extraordinary.
and food, and special events including celebrity talks,
A high-profile, prestigious location was chosen to create
weekly podcast recordings, and many other experiences,
a space where people can come and explore, and be curi-
for five weeks. Google also invited cool local London busi-
ous in a playful way. An offline physical space was used to
nesses into the Curiosity Rooms, such as Patch, Perky
get people involved.
Blenders, Earl of East, Lapp by Leomie Anderson and more.
Tickets were free, with a recommended donation to the
Message/theme
charity Crisis.
Create a space where people can come, have a coffee Here’s a small sample of some of the events that were
and explore, and be curious in a playful way. It ties in promoted:
perfectly with the product’s overall campaign, as Google
●● Join John Boyega in conversation with his mentor. The
and Pixel 3 are all about discovery and making every day
actor shook up Star Wars as its first black stormtrooper
extraordinary.
and hasn’t looked back since.
 540 Part Two | Communications Tools

F I G U R E 17.16 Google Lens Launderette

SOURCE: Matt Monfredi

F I G U R E 17.17 Christmas booths in the curiosity rooms

SOURCE: Matt Monfredi

 17 | Exhibitions, Events and Experiential Marketing 541

F I G U R E 17.18 Perky blenders in the curiosity rooms

SOURCE: Matt Monfredi

FIGURE 17.19  Perky Blinders, Pixeldilly Tea ●● Grab a seat at the table as Jessie Ware and her mother
are joined by a special guest to take their Table Manners
podcast live to discuss food, family and the beautiful art
of everyday life and its joys.
●● Join Professor Green as he records his new podcast
live with very special guests.
●● Join Dolly Alderton and Pandora Sykes as they record
their weekly hit podcast The High Low.
●● The star of one of Netflix’s most popular debut original
series The Haunting of Hill House, Oliver Jackson-
Cohen, will share how he landed the starring role.

Actions
Eight weeks to set it up. It ran for five weeks.

Control/measurement and metrics

Success was measured in footfall, social reach and con-
sideration rather than sales. ‘This is a brand experience
first and foremost, so we aren’t expecting to transact.
This is about consideration,’ said Kirstyn Stark, Head of
UK Hardware Brand Marketing and Partnerships at
Google.

SOURCE: Matt Monfredi

 542 Part Two | Communications Tools

F I G U R E 17.20 Mistah Jam and Professor Green

SOURCE: Matt Monfredi

There was a lot of press coverage, including Campaign 3Ms

Magazine:
●● Men and women: Kirstyn Stark led the project with the
A basement bursting with music and dining experiences, support of Amplify (deliver the experience), working
a candy-pink faux launderette, a Vogue photo shoot, alongside Halpern, 72andSunny, Essence and OMD, with
intriguing installations and Instagram-friendly moments Kru Live providing brand ambassadors. Matt Monfredi
at every point, not to mention a slide in place of an supplied photography.
escalator: welcome to the ‘Curiosity Rooms’, where
●● Minutes: Eight weeks to build. Five weeks to run. Google
Google has chosen to promote its latest smartphone,
saw it as a test in terms of a longer-term activation, but
Pixel 3.
they like to experiment.
Arrigo (2018)
●● Money: Budget undisclosed.
 17 | Exhibitions, Events and Experiential Marketing 543

F I G U R E 17.2 1 Pixel booth for selfies

SOURCE: Matt Monfredi

 544 Part Two | Communications Tools

F I G U R E 17.22 A slide adds to the experience

SOURCE: Matt Monfredi

You can see an extra exhibitions case study on be controlled: prospects, customers, distributors,
Sedgwick at RIMS Monte Carlo in the online re- competitors, the media and many more. While exhi-
source pack. bitions do create a presence (or awareness in the
mind of key customers), they do generate business.
Orders can be taken (sales can be closed), and new
customers can be introduced to the brand. Enquiries
Advantages and can be taken and customer needs explored in conver-
sations that otherwise might be difficult to engage in.
disadvantages
Here are some of the advantages and disadvantages Disadvantages
to consider when deciding whether to increase or
reduce this communications tool. Many exhibitors are looking at the total cost of ex-
hibitions (including pre-promotion, attendance, de-
sign and build, staff, sales promotions, gifts and
Advantages ‘freebies’). Some exhibition traffic is falling, and
hence exhibitors see their costs rising. Lastly, exhi-
Exhibitions contain a whole market under one roof bitions are hard work and require pre-show train-
in an engaging environment where the message can ing and motivation, which are also time-consuming.
 17 | Exhibitions, Events and Experiential Marketing 545

Key points from Chapter 17

●● Exhibitions, events and experiential marketing ●● Integrate particularly with PR, email, social
offer a unique one-to-one opportunity. media, sales and the overall contact strategy.
●● Exhibitions are hard work. They can work well ●● Develop an exhibition strategy.
for the exhibitor if they are carefully and ●● Exhibitions should be part of a contact strategy.
thoroughly planned and integrated with other
●● Every element of exhibition performance can be
marcomms tactical tools.
monitored and measured with a view to making
●● Plan for before, during and after the exhibition/ future improvements.
event or experience.
●● Measure the success or otherwise of events.

References and further reading

Arrigo, Y (2018) Google’s ‘Curiosity Rooms’ aim to Engebretson, D (2000) Exhibiting in the USA (video),
inspire experience-savvy Londoners, Campaign, 23 Trade Partners UK, Department of Trade and
November Industry, produced in association with Multimedia
Black, S (1989) Exhibitions and Conferences from A Marketing.com, London
to Z, Modino Press, London Junius, W (2017) Trade show success: New rules for
Cotterell, P (1992) Exhibitions: An exhibitor’s guide, Europe and beyond, Exhibit in Europe, 18
Hodder & Stoughton, London September
Dudley, J W (1990) Successful Exhibiting, Kogan Seekings, D (1996) How to Organize Effective
Page, London Conferences and Meetings, Kogan Page, London
eConsultancy (2018) 10 very cool examples of Talbot, J (1989) How to Make Exhibitions Work for
experiential marketing, eConsultancy, Your Business, Daily Telegraph/Kogan Page,
12 November London

Further information
Association of Event Organisers Society of Event Organisers
119 High Street 29a Market Square
Berkhamsted Biggleswade
Hertfordshire HP4 2DJ Bedfordshire SG18 8AQ
Tel: +44 (0)1442 285 810 Tel: +44(0)1767 312986
www.aeo.org.uk www.seoevent.co.uk

Event Supplier and Services Association (ESSA)

Limited
119 High Street
Berkhamsted
Hertfordshire HP4 2DJ
Tel: +44 (0)1442 285 812
www.essa.uk.com
 546

18
Merchandising
and point of sale
LEARNING OBJECTIVES
By the end of this chapter you will be able to:
●● appreciate the impact of merchandising techniques;
●● understand how offline and online merchandising must integrate and optimize;
●● empathize with a retailer’s strategies and merchandising policies;
●● discuss retail strategies and how they incorporate store image, store layout,
merchandise ranges, colour blocking, point-of-sale, promotions and a range of
miscellaneous items;
●● ensure that a culture of constant analysis and improvement is employed so that
results can constantly be improved.

Introduction 547 Colour blocking 559

The importance of merchandising 547 Point-of-sale displays and retail sales
Merchandising offline 548 promotions 559
Merchandising online 549 Sounds, scents and mindshare 560

Augmented reality in store and at Measuring merchandising effectiveness 561

home 549
Virtual reality in store and at home 550 Advantages and disadvantages 566
Blurring virtual and reality 550 Advantages 566
Disadvantages 566
Merchandising challenges 551
The high street struggle 551 Key points from Chapter 18 566
Merchandising opportunity 552
References and further reading 566
Alternatives to high street and shopping mall
locations 554 Further information 567
Retailer empathy required
from brands 555

Retail strategy 556

Store image 556
Store layout 557
Merchandise ranges 557
 18 | Merchandising and Point of Sale 547

Introduction Shopping for happiness

The importance of merchandising In the offline world, going shopping is still a popular
leisure activity. In fact some tourist resorts offer
Merchandising success or failure is determined by
the final moments before a purchase is made (or shopping facilities as a USP. This is also evident in
not made). This is the point in the buying cycle the United States, where retail centres almost
where the customer is in front of the product or double as leisure centres. ‘Mall walking’ is a
service and is about to make a final decision, the significant activity. In the north of England,
point of purchase, to buy or not to buy. It is also customers are transported by the coachload to
called the ‘point-of-sale’. Merchandising is all spend a day at one of Europe’s largest retail centres,
about presenting goods and services in an enticing Gateshead’s Metro Centre. Similarly, visitors to Dubai
way. This involves everything from packaging, dis- consider ‘shopping malls’ as one of the attractions.
plays, posters, splashes, special offers, choice of
supporting products as well as the overall store
design including lighting, layout and ambience off­
line and integrating this with the customer’s offline In many consumer markets the consumer’s final deci-
and online needs. sion to buy is often made inside, and not outside, the
store. More recently there is evidence that more

F I G U R E 18.1  Red Bull’s Hangar 7: Merchandising involves multiple factors including

overall store design
 548 Part Two | Communications Tools

­ ecisions are being made on the smart phone (out-

d ●● 82 per cent of smartphone users say they
side). More later. There has been some debate as to consult their phones on purchases they’re
exactly what percentage of decisions are made inside
about to make in a store.
the store, and although ‘70 per cent of decisions are
made inside the store’ appears to be used widely, They get ideas, look up information, and make
Court et al (2009) suggest that these figures may vary decisions, all from their smartphone anytime,
according to sector. Neff (2010) suggests that retail anywhere.’
stores have more impact than TV when generating Google (2016)
awareness of new products. Google (2016) reveal
changes in purchasing habits over the last 10 years –
see ‘Ten years ago shoppers did this’ in the box below.
Websites, smart phones and apps will affect these Switching to industrial markets (B2B markets), the
figures significantly, as all of these tools are vying merchandising opportunity lies relatively untapped
for the consumer’s attention and attempting to in industrial wholesale outlets such as electrical
secure the decision making, sometimes even before wholesalers and builders’ suppliers, where a lot of
point-of-sale can persuade a customer. See how merchandising tends to look dusty, dirty and uninter-
Dulux shifted the decision from inside the store to esting. There is room here for creative, intelligent and
outside the store online (p 130). And mobile devices effective merchandising. It does require a delicate
can influence a customer before, during and after a balance, since a hard-working electrician in search of
shopping trip. Paperless couponing, special promo- some 2-core 3-millimetre cable might assume a dis-
tions, and information via SMS and location-based tributor to be too expensive if it looked too glitzy
advertising are likely to have a significant impact on and comfortable. On the other hand, merchandising
the customer decision journey. including offering ‘free coffee’ can provide customers
Location-based advertising and paperless cou- with useful information and overall, a better shop-
pons can also be triggered by the actual location of ping experience, for example, reminding the buyer
a customer (actually, the location of their smart about other relevant products and any special offers.
phone), so that as customers walk through a shop-
ping centre, or even a particular retail store, their
mobile rings or a text message appears and men-
Merchandising offline
tions a relevant special offer in a competing store You are probably more aware of offline merchandis-
that is close by them at that precise moment. Read ing in stores where they use point-of-sale (POS) ban-
more about location-based advertising at p 377. ners, leaflets and dispensers (‘take one’ boxes); stickers;
posters; showcards; cardboard cut-outs; 3D lenticular
images; branded racks or display units; dump bins;
free-standing floor displays. You can also see elec-
Ten years ago shoppers did this… tronic gadgetry: spotlighting systems; video walls;
plasma screens; illuminated display systems and more.
‘When looking for ideas and inspiration, a Meanwhile the brands themselves are acutely aware
shopper would either go online, browse a of, and negotiate hard for use of, these in store and
catalog, or walk the store aisles. When in-store, also for premium shelf positioning (eye level and end
a shopper would learn more about a product of aisles); in-store sampling, window displays and
and either head to the cashier or head home to
more sophisticated interactive merchandising.
In-store screens and video terminals positioned
buy online. The point is that a shopper
at checkouts can transmit special relevant offers
interacted with channels independently. But the
(based on specific customer’s previous purchase
rise of mobile has changed this picture. What’s
data) to customers as their store cards are swiped
different today is that even though this behavior
through the checkout.
still happens, shoppers are omnichannel: These tools have been available for many years.
●● 60 per cent of internet users start shopping One problem with any particularly clever high-tech
on one device but continue or finish on a POS is that customers can end up admiring the POS
different one; material instead of buying the product. On the other
 18 | Merchandising and Point of Sale 549

hand, products can benefit from POS support, as In terms of customer ratings and reviews, 85 per
many products can get lost among the 25,000 lines of cent of online consumers trust online reviews on the
food that the average superstore displays. An innova- same level as personal recommendations from
tive POS attracts attention – which is a key stage in friends and family (Bright Local, 2018). Other
the AIDA communication model (see p 270). ­research shows a 166 per cent increase in sales con-
Although it is important to present fresh images to version when ratings and user-generated content
repeat-visit customers to maintain their interest and are integrated into the online shopping experience
loyalty, many retailers’ obsession with product den- (Baker 2018).
sity and profit per square foot means that they
instantly dismiss most of a supplier’s branded mer-
chandising tools. In fact, the majority of stores do not Target stores merge online and offline
have the flexibility or the luxury of space to dedicate merchandising teams
to one-off ‘stunts’ with in-built novelty obsolescence.
‘Guests might search on smartphones for patio
furniture, then see completely different
Merchandising online merchandise when they came into their local
For online retail website owners, merchandising is a store. So Target Retail chain in the USA merged
crucial activity, in the same way that it is for physi- its online and offline marketing and
cal, offline, retail store owners. In both cases, the merchandising teams into a single unified patio
aims are similar – to help customers and maximize team that was mobile-first. It decided what
sales potential for each store visitor. products and signage to feature in-store based
on digital demand. Target also ran Google local
Online, this means presenting relevant products
and promotions to site visitors which should help inventory ads to show customers on mobile the
boost key measures of site performance such as exact patio furniture that was available in the
conversion rate and average order value. You will store nearest them. As a result, patio revenues
see that many of these approaches are related in the stores in which Target made this change
to the concept of findability. Some of the most have been dramatically outpacing the others.’
common approaches used are: Google (2016)
●● Use of customer ratings and reviews have a See also the case study ‘Rotating videos PPC sales
direct influence on sales. funnel boosts ROAS: Ashley HomeStore Facebook
●● Feature the best-selling products prominently. ad campaign’, p 362.
●● Use ‘bundling’, ie buy-one-get-one-free
(BOGOF) on the product page or in
checkout, although care has to be taken here
since this can reduce conversion rates.
Augmented reality in store
●● Use of product visualization systems, which
enable web users to zoom in and rotate and at home
products.
●● Expanding navigation through synonyms. AR allows users to see additional information about
Using a range of terms that apply to the a product, an item or an exhibit by pointing a mobile
same product, the product may become phone and reading any hyper-data posted. Additional
easier to find. information can be text or photographs. For exam-
ple, a building site might use AR information on the
●● Applying faceted navigation (easy to drill
site to show what the site will look like when it is
down by selecting different product
finished. Through use of AR software like Layar or
attributes). Conversion rates will be higher if
other apps from the App Store, the horizon expands
relevant products and offers are at the top of
as augmented reality emerges. Having downloaded
the search results list.’
the app (eg Layar), it opens to the scan screen. Scan
Chaffey and Smith (2017) the street around you to see useful information like
 550 Part Two | Communications Tools

icons for ­restaurants. Or you can look for the Layar Meanwhile, some 20 million MMOGs immerse
logo on magazines, packaging, billboards, magazine themselves in virtual gamers’ worlds as they engage
and newspaper ads, business cards and other items. in ‘massively multiplayer online games’, with some
Then tap anywhere on screen to see the extra infor- 23 million subscribers to MMO gaming in 2014
mation such as a graphic, an extra photo, a video, a (Statista, 2014). Most of the games are not truly
website, or take an action like call a phone number, immersive experiences and do not require headsets.
vote in a poll, send an email or share the extra layer However, a lot of people do play games online and
of information, or engage in a game. Soon apps may transcend into a games world. It is estimated that
be built into things like car windscreens so you can there are currently 2.2 billion active video gamers
see layers of data if you want to. Incidentally, Layar (individuals that play video games). This is expected
also scans QR codes. The company that owned to grow to 2.7 billion by 2021 (Statista, 2019).
Layar, Blippar, has since developed ARDP (aug- Virtual immersion in a non-reality world has
mented reality digital placement), which allows users been around for many decades and crept into peo-
to view web AR experiences without the need for a ple’s living rooms in the form of Wii games. These
separate app to be installed on their device. popular virtual games convert a living room instan-
AR is also used in magazine ads (once the AR taneously into a gymnasium, a tennis court, a box-
code/logo is visible in the ad), so that an ad, say for ing ring, a dance studio, a keep-fit studio or even a
a pair of shoes, then becomes a 3D pair of shoes golf course, and customers (players) play happily in
protruding out from the page when viewed via the their virtual worlds. It will become a lot more
AR app. You can move around and see different sophisticated – eg Guinness’s virtual pint given to
views of the shoe. You can also change colour and customers in Tesco stores (more later).
style and ultimately select and purchase shoes – all
from a print ad that is AR enabled.
Apple’s ARkit app allows users to add images to Virtual rain
reality, eg add an image of a cup, or a vase, or a can-
dle, or a lamp onto a ‘real world’ table that is in front Nine years ago, the University of Tokyo perfected
of you. If you select the cup it appears on your table ‘virtual rain’ that looks and probably feels like water
immediately. You can, in the real world, walk around dropping on to a surface. It may well be that the
the table to see the other side of the ‘virtual’ cup or next wave of virtual experiences combines virtual
look over it to see inside the ‘virtual’ cup. You can see worlds with artificial intelligence that will create
how this can help customers visualize what particu- whole new stream of opportunities for those that
lar products might look like in their own homes. embrace the technology.
See the box about Memory Mirrors’ digital mir-
rors later in this chapter.

Virtual reality in store and at home Blurring virtual and reality

As the online experience may become more 3D ori- More and more customer service avatars (interac-
entated and more virtual world-orientated, market- tive cartoon characters on websites) are appearing,
ers will require inquisitive minds to find what works particularly in the customer care sectors, where they
and what doesn’t. This is what Tesco started explor- offer themselves as ‘your assistant’. Some of these
ing when they unveiled a prototype of a virtual real- are being replaced by real photographs of real peo-
ity supermarket back in 2014, in which customers ple who want to help.
browsed a 3D supermarket using an Oculus Rift It might also become more blurred as virtual reality
virtual reality headset. ‘Although customers can’t and ‘real’ reality morph. Back in 2007, I held a parallel
yet pick (or click) anything off the shelves, custom- product launch of Northern Ireland’s creative digital
ers can travel through the store and look at the hub, CRE8IVITY.COM in Second Life. The Minister
brands on offer without leaving the comfort of their for Enterprise’s avatar spoke to an international vir-
home’ (Ad Age, 2014). Effectively, the store is being tual audience (of avatars) who were overseas bloggers
brought to the customer rather than the customer who could not physically attend the main ‘real’ event
visiting the real-world store. in Belfast, but could attend the virtual event held in a
 18 | Merchandising and Point of Sale 551

virtual venue we hired for the virtual event. We simul- In addition, as already mentioned, our own
taneously beamed some of this virtual event from a homes and offices can be converted instantaneously
virtual world onto a real world screen with 300 ‘real- into gyms, golf courses and discotheques courtesy
world’ visitors sitting in the real audience in Belfast’s of Wii games. The blurring of reality and virtual
Science park (where the Titanic was built). The divid- reality continues.
ing line between virtual and real is blurring
Soon, virtual reality may come to us instead of
having to log in to a screen. A variation of VR may
come to us in the form of avatars on websites or Merchandising challenges
augmented reality images on a car windscreen, or
hovering holograms, or shopping bots appearing The high street struggle
beside us, or even static, attractive bots that stand
beside us as we queue, offering helpful advice – as Troubled consumer confidence, crippling business
did the simple talking, moving bot who kindly rates and digital disruption have all been blamed
helped me in Dubai airport four years ago by for the battering endured by most high streets and
reminding me to put my liquid containers in a plas- their retail stores.
tic bag (Figure 18.2).

F I G U R E 18.2 A friendly airport avatar spoke to me

 552 Part Two | Communications Tools

From casual dining to department store chains, How can they use AI, IoT, VR and AR to enhance
high street stalwarts have fallen into the red at an the customer experience? How can they expand the
alarming rate. In 2018 alone, toy superstore Toys CX onto smart phones and maybe onto other IoT
R Us and electronics retailer Maplin disappeared ‘things’? How can a retailer add value to their cus-
from the UK high street, while the House of Fraser tomers’ experiences when inside the store? These
collapsed into administration in August owing nearly are the questions for many retailers today.
£1bn to creditors, but was rescued by Mike Ashley’s To tackle showrooming, some retailers, like John
Sports Direct and is now closing some stores. Lewis, encourage customers to use John Lewis
Debenhams is set to axe 50 of its 166 stores after iPads, which are supplied in the changing room. If
posting a £491.5m loss in the year to 1 September.
the customer subsequently finds the same product
Meanwhile, profits plummeted 99 per cent at the
at a cheaper price, the store will give them a special
John Lewis Partnership in the six months to 28 July.
gift that compensates for the price difference, if they
Marketing Week (2018)
still buy from them.

Hyper-competitors in customers’ Near field communications

pockets Other stores like Harvey Nichols encourage custom-
Competition has become so intense that we call it ers to use the store’s own iPads to tap on a particular
hyper-competition. And it is in your customers’ product in a store to get access to rich, in-depth
pocket on their smart phone apps. Both Amazon product content such as images, videos and recom-
and eBay want customers to use their apps when mendations. This is near field communications
physically shopping in other retail stores. They (NFC) technology. Customers just have to insert
want customers to scan any product’s barcode and their email address to set up an account. They can
the app will tell them if they can get a better price also send details of the products to their inbox.
and free delivery which will save them having to lug ‘Harvey Nichols (retail store chain) found that 90
home some heavy products. So hyper-competition is per cent of shoppers engaged in-store were not pre-
in your pocket. Retailers now have to motivate cus- viously known to them. Sixteen per cent of all shop-
tomers to use the retailer’s app to get special offers pers engaged with the experience and 18 per cent
and rewards instead of using competitor apps. took further action after receiving an email’ (Chaffey
and Smith, 2017). NFC is limited to a distance of
Showrooming when shops become approximately two inches, while Bluetooth (see
Beacons, next section) can reach over thirty feet.
showrooms
Are stores becoming just showrooms for mobile
Beacons and proximity marketing
users? Are shops becoming changing rooms where
customers find what they like, try on the clothes and Beacon technology has been generating buzz since
then go home and buy online? This is ‘showroom- Apple introduced Bluetooth beacons to the market in
ing’, and it damages high street and shopping mall 2013 (da Silva, 2017). These small, ­battery-­operated
retailers’ sales. wireless devices transmit Bluetooth signals to nearby
smart phones (if the smart phone is Bluetooth ena-
bled and if the customer has downloaded the store’s
Merchandising opportunity app). Beacons emit signals that mobile apps recog-
nize and these signals then trigger the app to open
Marketers have got to get technology developers, and present the customer with a personalized offer
app engineers, virtual engineers, social media crea- (discount, gift, rewards, recommendations) on their
tives, content marketers and mobile marketers to smart phone as they approach the product being pro-
come up with even more clever ways to engage, en- moted by the store. It can even help customers find a
tertain, inform, save time, and add fun or knowl- product tucked away in an obscure aisle. Soon it may
edge to today’s shoppers. Can they make shopping even be used to provide augmented reality experi-
fast and fun? How can they use the interactive po- ences, enabling customers to ‘try’ merchandise on
tential between store, merchandising, mobile and without ever having to enter a dressing room (da
the customer – a much sought after experience? Silva, 2017).
 18 | Merchandising and Point of Sale 553

Digital mirrors on your list. Smart shelves can also change all prices
in a store in minutes. They reduce damaged stock
Another exciting merchandising development lev-
and wasted energy as the IoT sensors can check
eraging the Internet of Things, is the Memory
temperatures in the freezers to avoid damaged food
Mirror®, a digital mirror that helps customers try
products due to wrong temperatures and reduce
out clothes without actually trying them on.
temperatures if necessary.
Designed by Memomi Labs for in-store clothes
‘Smart shelves will change how you shop in the
shopping, it captures stills and video of every-
future. From digital displays that show instant price
thing a customer tries on. Through artificial intel-
changes to advertisements linked to your shopping
ligence, virtual reality and augmented reality
list, you can expect the technology to become more
customers can virtually ‘try on’ products such as
personalized’ (Bandoim, 2018).
clothing, eyewear, footwear, accessories and
make-up in real time without any of the incon-
veniences of the actual ‘try-on experience’, while Adding value and increasing dwell
looking at a digital mirror. More on digital mir- time
rors on page 558.
Marketers can also help customers with better
product information, product walk-throughs, loy-
3D interactive POS alty points and prizes. Dining facilities, coffee
Over thirty years ago Brian Oliver (1987) wrote in shops, crèches, relaxation areas may become popu-
Marketing Magazine: lar as some retailers are looking at the new priority
of making the store less about selling and more
Imagine walking into a high street department about what retailers call ‘dwell time’ (or duration
store and being greeted by a three-dimensional of visit). Ideally not being stuck in long queues but
lifelike copy of John McEnroe’s head. As you
rather enjoying pleasant time spent in the store’s
walk past, it starts to move and even speaks to
environment, in fact better time spent in the store
you... pointing out the features of a tennis racket
than time spent at home with a mobile. The relent-
suspended in mid-air in front of you with no
apparent means of support. Then a giant pair of
less search for added value for the CX continues.
moving lips mounted on a glass display suddenly There are opportunities for, say, a luxury retail
start talking to you, inviting you to try on the store, or any store, to engage a shopper’s
store’s winter fashions without even undressing. ­non-­shopping companion (eg a child or husband)
All you have to do, say the lips, is stand in front with the store’s brand. A comfortable area with
of a ‘magic mirror’, select an item of clothing and, newspapers, TV, iPad and coffee might help. The
before you can say ‘Bruce Oldfield’, your reflection longer the attention of the unengaged shopper is
is wearing it. occupied, the longer the engaged shopper will con-
tinue on her shopping mission.
Today, many websites engage customers by inviting
them to upload their head and shoulders photo-
graphs (for trying on spectacles on an optician’s
website) or a full photograph for a boutique (to see Dwell time decreases if companion/child
what certain clothes look like on the customer). accompanies shopper

Smart shelves When working on a strategy to bring digital

Smart shelves can help customers and stores. Smart experiences to life in-store for Bloomingdales, one
shelves interact with a store’s app on a customer’s of the surprising insights had nothing to do with the
smart phone. The IoT sensors installed in the shelves customer’s shopping behaviour in Bloomingdales,
recognize each customer as they approach, so they but more with the dwell time and attention span of
can then offer a highly relevant and personalized a customer when she brought a companion or
deal. And if you use the store’s shopping list func- child. Her dwell time decreased when she had a
tion on the app, the smart shelves will also interact male accompanying her and decreased even more
with your list and show you where to find the items when she had a child or children with her.
554 Part Two | Communications Tools

When the customers are alone they accomplish Always-on ‘shop now’ windows
their shopping. When a customer is with a companion Shop windows can integrate offline with online
or child, the flow of the shopper is interrupted. seamlessly. Shop windows can offer real browsers
The customer enjoys focusing on her shopping an engaging ‘buy now’ moment even when the shop
mission when alone or with an engaged shopping is closed by connecting the shop window display
companion, and this is less likely when someone is with a mobile app, QR code or other AR approaches
in tow who is not engaged. When the unengaged (see p 312).
shopper or child doesn’t want to be there then
tension stirs within the shopper, causing her to lose 3D street images through shop
focus and want to tend to the care of her
unengaged companion or child. The two men sitting
windows
on the uninspiring bench in Figure 18.3 don’t know Reebok has developed 3D images that can be pro-
each other. The man on the left was tapping his jected through shop windows and into the street.
foot, patiently waiting while his wife was looking for Using ‘mirror technology’ the image literally hangs
a new outfits; he said he does this every weekend. in space in front of pedestrians. Pedestrians will be
bumping into lots of 3D images as soon as produc-
The man on the right had been waiting for 20
tion costs fall.
minutes for his wife to finish her shopping. He had
brought his iPad.
The Gap 1969 store took a leap and borrowed
02 and House Of Fraser: Retailing, wifi
from the Apple Store. They placed a table in the
centre of the store with several iPads for shoppers
and geo-targeting
to use. On the iPad, the customer can browse
‘Retailers that offer free wifi have an opportunity
assortments from Gap 1969 while the unengaged
to collect data, build lists, highlight the retailer’s
shopper could play games, check Facebook, movie
own in-store app and geo target messages to
times or simply browse. Gap 1969 created a feeling
users whenever they are in the area. For
of well-being and comfort for the shopper, and for
example O2, has been working with House of
the unengaged shopper a positive brand
Fraser stores across the UK to offer its
experience.
customers free O2 wifi. As well as giving
F I G U R E 18.3 These two waiting customers the benefits of good internet access,
this clearly presents geo-targeting
men offer an opportunity to retail opportunities, including pointing wifi users to
stores House of Fraser’s own department store app to
showcase deals, offers and planned in-store
activities.’
Gray (2013)

See Chapter 12 for more on geo-targeting.

Alternatives to high street and

shopping mall locations
Non-high street retail venues
Are some brands strong enough and bold enough
SOURCE: Photo courtesy of Teri Sporato to create their own stores in unexpected locations
and unusual environments? Red Bull is one such
brand. Consider the Red Bull aircraft hangar
 18 | Merchandising and Point of Sale 555

F I G U R E 18.4  Some brands, such as Red Bull, are strong enough to create their own
stores in a variety of locations, including airports

called Hangar 7. This is a unique building in

Salzburg, Austria hosting a collection of historical
Retailer empathy required
airplanes, helicopters and Formula One racing
cars, and serving as home for the Flying Bulls, a
from brands
private aircraft fleet stationed in Salzburg. Hangar Skilful supplier merchandising requires an ability to
7 is owned by Red Bull founder Dietrich empathize with both the customer and the retailer/
Mateschitz. It houses the Michelin starred restau- wholesaler (distributor). Understanding customers is
rant Ikarus, two bars, a lounge, art exhibitions one thing. Understanding distributors and their per-
(current and previous), The Flying Bulls (aircraft, spectives, goals, strategies and tactics is another. It is
pilots, airshows and upcoming events) and a shop, easy to grasp the importance of maintaining the
which is what we are interested in from a mer- theme of an advertising campaign inside a store with
chandising and POS perspective. carefully designed point-of-sale displays. It is not so
easy to understand when, why and how a retailer
Illuminated train platforms will allow its space to be used for such in-store pro-
We’ve seen some developments in Korea where vir- motions and display, ie what its merchandising poli-
tual stores are created at train stations so that com- cies are and how to operate within that framework.
muters can scan shelves and buy with their mobile This ‘distributor empathy’ helps suppliers to
phones, so that the delivery awaits them as they ar- make their product or service (and the relevant
rive home from work. marketing communications) fit in with the retailer’s
 556 Part Two | Communications Tools

plans. The retailer relationship is even more impor- ●● merchandise ranges;

tant in today’s UK retail market, since market power ●● colour blocking;
has moved from the manufacturer into the hands of
●● point-of-sale displays and retail sales
a few major retail chains. It is therefore necessary to
promotions;
understand the various distributor strategies and
their approach to merchandising techniques. ●● sounds, scents and mindshare.
Some retailers do not enter into any merchandis-
ing arrangements with suppliers, as the retailers pre-
fer to control all aspects of product presentation Store image
centrally to ensure commonality and consistency in The human eye is more sensitive than is sometimes im-
all their stores. This is managed by carefully super- agined. Clues about a shop are absorbed, often some-
vised store personnel and/or a roving display man- times without our knowing it. Psychologists call these
agement and merchandising team. This does not ‘cue patterns’. They help shoppers to decide what kind
mean that the supplier can have no involvement in of a shop it is before actually entering (if entering at
the merchandising. Many stores encourage proac- all). The store’s exterior offers an opportunity to com-
tive contributions from their suppliers. Some suppli- municate with customers, to invite them into the store
ers gain permission to use their own display teams to or to reinforce a desired corporate image.
ensure that their particular products or services have Inside the shop, the concept of the ‘retail theatre’
optimum display on their allocated shelf at all times. becomes evident. It has been suggested that a retail
design concept lasts only three to five years, hence
the need for the adaptable retail theatre that allows
the store’s interior layout and design to be changed
Retail strategy easily. It is worth remembering that products, service
and store design all contribute towards the overall
Every retailer has its own retailing strategy, which ex- store image, but if a customer has no prior experi-
ploits its source of competitive advantage (eg exclu- ence of a particular store, or any word-of-mouth
sive products, lower prices, location or customer reference from peers, then the decision to enter or
service). A department store exploits location, its not to enter may be made solely from the store’s
quality of service and its range of products. A small visual image. The store’s exterior is a bundle of cues.
independent grocery cannot compete on product Even the psychological barrier or obstacle, the door,
range or price but can compete on its convenient loca- should be removed or minimized wherever possible,
tion, opening hours and its personal service, friendly thereby facilitating an even easier store entry.
relationship and rapport. A takeaway restaurant may
promote its unique home-delivery service (perhaps
drones for a period of time). Competitive advantage Online store/website aesthetics
is relative to competitors’ unique selling propositions
and customer needs. A constant monitoring of the un-
controllable variables that affect markets reveals how Aesthetics = graphics + colour + style + layout +
competitive advantage can emerge or erode over rela- typography
tively short periods of time. Strategies can change. Effective website design includes both form and
Merchandising strategies are also affected by corpo- function. Form means the aesthetics created by
rate cultures. For example, some distributors and re-
the visual design and function means
tailers are more profit orientated than turnover
interaction, navigation and structure…. A site
orientated. This, in turn, affects their pricing, promo-
with powerful aesthetic appeal can help
tion and merchandising strategies and policies.
communicate a brand’s essential values. The
The more common low-tech merchandising
use of graphics, colour, style, layout and
tools are now summarized and discussed under six
key headings: typography creates aesthetics. Together, these
create a personality for the site.
●● store image (external and internal); Chaffey and Smith (2017)
●● store layout (customer traffic flows);
 18 | Merchandising and Point of Sale 557

F I G U R E 18.5  A store’s exterior is an opportunity to communicate with the human eye,
which is more sensitive than we imagine

Store layout photographs, software packages and even popular

products like known-value items in a food supermar-
Customer traffic flow can be directed around a store ket help the customer to shop the full shop (‘the more
through detailed attention to layout. For example, 9 you see, the more you buy’). Hence bread and milk
out of 10 people are right-handed and naturally pre- are often found at the back of a food store. It is esti-
fer turning to the right, so most supermarkets have mated that, out of the 25,000 food lines on display in
the primary doors on the left-hand side so the shop- a superstore, only approximately 250 are essential
ping is done to the right in a sort of clockwise man- items such as tea, coffee, bread, etc.
ner. Flow-modelling time-lapse photos analyse which
people go where in the store (and at what times,
days, weeks or months). Further analysis reveals Merchandise ranges
where the high-density areas are and whether they
Once inside the store the customer is faced with a
match the high-turnover areas. Customer move-
bundle of retail cues that are never neutral. Fruit or
ments can be predicted by model questions like ‘If a
perfume is positioned at the front of a store (super-
customer were here (in the store), where would he or
market and department store respectively). This
she go next?’ This is important because, as a general
helps to create images and feelings of freshness and
rule, if the goods are in the wrong place they won’t
luxury respectively. Impulse products are placed at
sell: ‘out of sight, out of mind’. Primary and second-
key positions. Cross-merchandising reminds the cus-
ary visual points (as opposed to clutter) are used to
tomer of related end-use products, which are care-
pull the customer around the store or to ‘shop the full
fully positioned beside each other, eg shirts and ties
shop’ (visit every part of the store). Lighting, signage,
 558 Part Two | Communications Tools

F I G U R E 18.6  Detailed attention to together, or pasta and pasta sauce. The maxim ‘Full
shelves sell best’ is valid for retailers of fast-moving
store layout is crucial consumer goods (FMCG, also called consumer pack-
aged goods/CPG) but not necessarily for some
clothes boutiques. Although ‘eye-level is buy-level’,
shelf positioning can reflect the current product life-
cycle stage. The larger retail chains use merchandis-
ing display software packages to determine the right
allocation of space to a particular product or brand.
An ‘optimum shelf layout’ printout shows what mix
and quantities of packs on a shelf maximize a store’s
objectives (maximize sales, minimize over- and
­under-stocking, maximize profitability). It presents a
printout of what the recommended shelf layout
would look like. Some retailers like to have their own
brands placed alongside the main brands, often on
the left-hand side (since the Western eye reads from
SOURCE: Photo courtesy of James Whelan left to right and therefore spots the own brand first).

Memory Mirror’s AI, AR, VR, IoT and 360-degree view shows large range

F I G U R E 18.7 The Memory Mirror® from Memomi Labs

 18 | Merchandising and Point of Sale 559

The digital mirror mentioned earlier in this chapter effectively expands the range of merchandise with which a
customer can engage (and try on).
Using simple body gestures, or via a companion mobile app, customers can control the mirror to see 360-degree
back and side views and compare outfits side by side. Customers can change the colour of clothing with just a
gesture in real time without changing clothes. Using a physics and pixel-based algorithm, Memomi provides a realistic
and personalized augmented reality experience. Smart mirrors like this can transform the customer’s shopping
experience. The Memory Mirror also captures the ‘try-on’ sessions so that they can be reviewed and shared later on
by the customer. See the online resources for more information.

Colour blocking product-use associations; for example blue, green

and white can be associated with stimulating and
A supermarket customer scans shelves at the rate refreshing surf. This in turn might be built into the
of four feet per second from a distance of eight feet shower gel section.
away. Packaging therefore has to work very hard
to attract the customer’s eye. Retailers and packag-
ing designers sometimes use colour blocking to at- Point-of-sale displays and retail
tract attention by placing similarly coloured items sales promotions
close to each other to create a stronger shelf pres-
ence. Colour blocking can also link colours to This includes displays, sampling points, dump dis-
plays and so on. Many retailers will not allow

F I G U R E 18.8 Working very hard to attract the customer’s eye

 560 Part Two | Communications Tools

s­ uppliers this free space, since every square foot of

retail generates a certain amount of revenue. In the Dynamic design and personalization
appropriate store space, a retailer may allow the
supplier the privilege of using extra space. Prime Personalization delivers customized services
selling space can be bought by suppliers. A prod- through web pages and email and rich media
uct’s sales can be boosted depending on its loca- containers. Personalization can be triggered
tion and shelf positioning. In-store sales promotion through several dynamic variables, including:
can tie in with advertising, cooperative advertis- customer preferences, dates, events and
ing, publicity and perhaps even trade discounts locations. The jury is still out on the value of
and rebates. It should be designed to boost sales personalized web sites. It may work for some
without creating any conflict with overall store situations such as media sites, portals or
image. Balance, proportion, lighting, colour and
complex e-tail catalogue sites. Remembering
display units should be used to create the optimum
names shows respect. Recognizing customers
impact on a consistent basis (perhaps across many
and their preferences sows the seeds of good
hundreds of stores). Once the store grants permis-
relationships and better business. The database
sion, field marketing agencies can then provide
merchandising teams to maintain proper POS dis- is obviously vital for this.
plays or shelf facings. Chaffey and Smith (2017)

Store apps combined with smart shelves will

facilitate an even more personalized in-store offer.

Virtual pints of Guinness in Tesco stores

‘To introduce its latest line of beers – West Sounds, scents and mindshare
Indies Porter, Hop House 13 Lager and Guinness
Draft – Guinness is exploring virtual pint In-store sound effects can be used to make an-
nouncements (for example to direct shoppers’ at-
experiences in Tesco stores. Rather than simply
tention to a special offer), to add atmosphere (crowd
throw up a rickety tasting booth under the harsh
applause in sports shop video walls), to relax the
glare of strip lights and the tannoy cacophony of
buyer or to stimulate the buyer to move faster (vary­
your typical Tesco supermarket, Guinness has
ing the types of music) and so on. Some POS tools
instead crafted an immersive 360-degree video
engage customers in a dialogue by asking questions.
to transport each drinker into a world of Scents are also used inside a store to change
“colours, shapes and sound” which Guinness shoppers’ moods and buying behaviour. The Monell
claims is “scientifically proven” to enhance Chemical Senses Center in Philadelphia has found
flavours. Technology was actually designed to its pilot projects highlight how the use of smell
suspend the senses and transport you to affects sales. For example, a fruity floral scent
another place (Glenday, 2017). The digital caused casual shoppers at a jewellery store to linger
transformation consultancy, R/GA, found visual longer. An individual’s brainwaves and moods (eg
and audio cues that truly enhance specific relaxed and trusting) can be changed by extremely
flavours in different beers. “It seemed like low levels of certain scents. In the UK, one home
something that any beer drinker would love to furnishings retailer uses a bakery and café to entice
experience. We hope shoppers appreciate customers into the store to buy non-food-related
Guinness beers in a new light – and maybe like products such as clothing and lighting.
a beer they wouldn’t have thought to try In supermarkets it is interesting to note how
otherwise”.’ odours are carefully managed; the smell from the
Kiefer (2017) fish counter will not be as strong as the wafting
smell of freshly baked bread at the bread counter.
London-based DigiScents can create a particular
atmosphere in a retail store or evoke associations
 18 | Merchandising and Point of Sale 561

in the customers’ minds through a variety of dis-

persion techniques, from central ventilation sys-
Measuring merchandising
tems to hand-held sprays, liquids, granules, gels effectiveness
or powder (or even pressure-sensitive micro-
encapsulated strips). All of these can help to pro- Smart shelves will record everything including what
duce specific moods or simply neutralize is being picked up, looked at and returned to the
unpleasant odours. Effectively they create an shelf, as well as what is taken away in the basket.
‘aromatic logo’ by impregnating a product or a Equally, smart shelves can test pricing and ‘2 for 1’
service environment or just corporate literature offers at different times of day and different days in
with an aroma. the week. The emergence of check-out-free super-
Finally, ‘mindshare’ (discussed in Chapter 11) markets means that the old bar code scanner tech-
combined with merchandising techniques provides nology is rapidly approaching the end of its lifecycle.
an extremely potent communications package as Bar codes have traditionally instantaneously
the store’s sales staff, space and display promote a recorded what is being sold and measure the effect
particular supplier’s goods. of allowing a product more shelf space, a different
shelf location, special displays and so on. Electronic
point-of-sale (EPOS) scanners could also measure
sales responses to new advertising campaigns and
Whispering windows price changes, as well as providing operational
stock control data to central warehouses.
‘Sound is projected through the shop Whether smart shelves or EPOS, suppliers and
windows so everyone on the street outside distributors work closely together and become stra-
can hear what is being played from the Smart tegic partners with some suppliers given access to a
TVs on display inside the store windows. selection of EPOS/smart shelf data that measure
“After installing whispering windows into our sales results, store by store around the country, on a
storefront, the number of people who stopped daily, weekly or even hourly basis.
to view our window displays increased by This is similar to best practice web management,
nearly 50 per cent”, said Kevin Scully, the where the marketing team studies the analytics to
visual merchandising manager of the
see if there is any unusually busy activity on any
particular product or service. Anything with a sig-
company’s Peter Jones store in Sloane
nificant uplift in visits or sales can be highlighted on
Square, west London, where testing has been
the home page to leverage the emerging popularity
carried out on the system since June. The
of the product or service. This gives the particular
technology originated from sonar work
item an even bigger lift – until the next emerging
developed for the US Navy and is being popular item is identified and highlighted on the
applied for John Lewis by Newlands home page. Finding the most profitable mix of
Scientific, a spin-off company from Hull offers on the home page is similar to finding the
University. It effectively turns a shop window most profitable mix of offers at key locations in-
into a giant speaker, using vibrations through store. A constant process of analysis and improve-
a “bug” attached to the window to project ment yields bigger and better results.
sound. So far, John Lewis has used the device
to project the sound of music playing on DVD
players and high-end plasma television sets in The checkout-free store
its store window – although the developers
boast that it can also be used to make ‘As shoppers walk around the store, they will
dummies speak. The whispering window is scan the items they wish to buy, pay using an
able to monitor the level of external street app and then scan a QR code to confirm they
noise and set its sound output just above the have paid. The store has been remodeled for the
ambient level.’ new technology, with its checkout area and tills
Adams (2013) removed. The pilot will last for three months. A
helpdesk has been installed to support shoppers
 562 Part Two | Communications Tools

Change is constant, and nowhere more explicit than

who want to pay with cash or cards. Sainsbury’s
in merchandising, both offline and online – if you
said that 82 per cent of transactions at the shop
look carefully.
were cashless.’
Frangoul (2019)

C A S E S T U DY  Campbell’s soup: Where packaging and point-of-sale form a foundation

for an integrated campaign

F I G U R E 18.9  Campbell’s limited Unique POS creation

edition cans of soup To encourage word of mouth and social media buzz once the
product hit the shelves, renowned artist Stuart Murdoch
was commissioned to create an exclusive two-metre art
installation, built using over 2,000 cans, with both the original
and the limited edition range. The use of the iconic red and
white cans provided a platform of recognition for consumers,
raised awareness of the new limited edition range and
ensured both press and the public fully appreciated the
relationship between the original Campbell’s soup can
design, which many have an emotional association with, and
the new limited edition cans.
The installation featured a well-known image of Andy
Warhol on the front, made out of Plexiglass, framed by the
© The Andy Warhol Foundation for the Visual Arts, Inc./Artists brightly coloured new limited edition cans, raising visual
Rights Society (ARS), New York and DACS, London awareness of the brand new range.
The installation was positioned in London’s renowned
Situation Leadenhall Market for a closed photo call. National
newspapers and news wires attended.
Campbell’s Soup decided it was time to introduce its
products to a wider market.
PR
Objectives In the months leading up to the launch, Campbell’s targeted
food, art, lifestyle and media news desks with details of the
●● To build awareness for Campbell’s new range of condensed
launch. Additionally, the team approached key media and
tomato soup;
opinion formers through an intensive sampling campaign, also
●● to drive sales and increase household penetration; offering product for photo shoots. On the day of the photo call,
●● to support a retail listings drive. samples were delivered to selected radio DJs and TV shows,
resulting in coverage appearing on The Wright Stuff and This
Strategy Morning, and Phillip Schofield tweeting about his love of the
cans from both his personal and food-focused accounts.
Create a limited edition Campbell’s Condensed Tomato
Soup featuring labels derived from original Andy Warhol Website
artwork. Integrate unique Warhol-style packaging with
point of sale, and sales promotions generating UGC Working closely with the Andy Warhol Foundation for the
content via the website supported by the PR campaign. Visual Arts in New York, Campbell’s PR Agency, Wild Card,
‘Warholized’ the classic Campbell’s website, redesigning
the entire site to reflect classic Warhol styling.
 18 | Merchandising and Point of Sale 563

F I G U R E 18.10  The limited edition cans User-generated content

were eye-catching A ‘Warholizer’ tool was built enabling visitors to upload
images and transform themselves into works of art. Wild
Card supported this through social media channels by
designing a Facebook tab on the Campbell’s page,
encouraging fans to ‘Warholize’ their profile images.

Sales promotion
The ‘fifteen minutes of fame’ competition on the website
encouraged fans to submit appetizing recipes that include
Campbell’s soup, raising awareness of its benefits in many
popular dishes. The competition was supported through
Campbell’s social media channels and sold across the
digital landscape through bloggers and influencers. The
winning recipe was professionally photographed and
featured on the Campbell’s website.

POS and UGC

Post-launch, the installation travelled to three key regional
Tesco stores in Watford, Coventry and Purley. The installation
was situated at the front of store, engaging and educating
consumers about the new limited edition range and providing
a further photo opportunity for them (creating Campbell’s-
branded user-generated content). A team on site issued
campaign collateral and money-off coupons and invited
consumers to ‘Warholize’ themselves using iPads.

Control/results
© The Andy Warhol Foundation for the Visual Arts, Inc./
Artists Rights Society (ARS), New York and DACS, London Over 80 pieces of branded coverage have appeared to
date, offering over 289,726,245 people the chance to view.

F I G U R E 18.11 Campbell’s two-metre

F I G U R E 18 . 1 2  Campbell’s ‘Warholized’
art installation offered selfie opportunities
their website

© The Andy Warhol Foundation for the Visual Arts, Inc./Artists

Rights Society (ARS), New York and DACS, London © The Andy Warhol Foundation for the Visual Arts, Inc./Artists
Rights Society (ARS), New York and DACS, London
 564 Part Two | Communications Tools

C A S E S T U DY Thomson Tours

This case study demonstrates how vital merchandising is Carrying out short sales presentations, highlighting key
and, how a field marketing agency manages the whole selling points to counter staff.
operation.
Action
Situation
Supporting brochure launches with additional tactical
Major travel operator Thomson Tours enjoys a dominant activity during key periods. Blitz operations such as these
market share and offers a wide range of long- and short-haul involve the team making 3,000 calls in two days, with the final
holidays to prospective customers via the travel agent in the results presented to Thomson three weeks later. Three
competitive, and currently economically vulnerable, travel thousand agents are visited, normally every two weeks.
sector. ‘Racking’ (the display of a brochure in travel agents) is
crucial to the success of all tour operators. Holidays are Control
rarely booked without a comparison of the product offering
Thomson previously sent off batches of brochures to travel
from several competitors. Over 75 per cent of holidays are
agents without really knowing which agents were running
booked from a brochure that has been picked up and read.
out, which agents placed them on which shelves, and
Few consumers ask counter staff for a brochure. It is
which agents threw them in a pile in the store room. The
therefore essential to ensure that the 30 different types of
new merchandising system gives online data, which
Thomson brochures are positioned in the right store, on the
reduce wastage, as the team ensures the right brochures
right shelf, at the right time of year. Stock of replacement
are on the right shelf at the right time. This has helped to
supplies has to be ready so that the appropriate brochure is
increase sales by ensuring that the brochures are available
available at the point-of-sale at the right time. The several
at all the targeted agents. At the same time it has helped to
thousand travel agents mean that this is too big a requirement
reduce costs incurred by inappropriate print runs,
to be handled by Thomson’s in-house marketing and sales
unnecessary deliveries, etc.
team. Three thousand nominated UK travel agencies were
targeted. 3Ms

Objective ●● Men/women: CPM allocated a team of 65 field staff,

eight supervisors and one account manager to the
To ensure that the right brochures are available to the 3,000
ongoing field marketing activity. A team of 150 mercha­n­
nominated travel agents at all times.
­disers and eight supervisors support blitz operations at
key times such as brochure launches. Both teams are
Strategy
headed by a national field manager who reports to
A comprehensive brochure management and merchandising Thomson’s marketing department.
support programme was developed and contracted out to ●● Money: Comprehensive field marketing activities range
the field marketing agency. from £50,000 to £1,000,000 annually, depending on the
size and scope of the operation.
Tactics
●● Minutes: All field marketing staff attend a fortnightly
Stamping, racking and ordering brochures as required and half-day briefing. This is supplemented by six-monthly
where stocks allow. This includes use of BOBCAT – a one-day sales conferences where major briefings and
computerized brochure-ordering system based on Psion reviews are presented. The normal call cycle, which
technology developed by Thomson with CPM Field covers every one of the 3,000 travel agents, is two
Marketing. The system allows the merchandiser to transmit weeks. This means that every targeted travel agent
daily via a handheld computer to the brochure distribution gets visited and updated once a fortnight. Alternatively,
house, thereby ensuring a speedy, accurate and effective a faster blitz can be completed within two days by using
stock control and delivery system. the extra 150 merchandisers.
 18 | Merchandising and Point of Sale 565

C A S E S T U DY Useful shopping apps can help

Situation/problem Strategy
The target consumer (brand-loyal female grocery Create an innovative grocery shopping experience and
shopper) is overwhelmed with the grocery shopping task provide a helping hand to the consumer, while utilizing the
and meal planning. Market research customer insights CRM and branded promotions (and create consumer
reveal customer issues and concerns: busy lives, time, engage­ment). Basically the app helps the customer manage
managing kids, (food) waste and crowded stores. their busy life.

Objective Tactic
Help customers by finding a solution to address their Design a mobile grocery shopping application that gives
concerns and consequently boost sales and brand loyalty. the consumer the ability to plan weekly shopping, plan
meals, get recipes, have ingredients added to the shopping
list, and provide the consumer with brand coupons and
meal suggestions.

F I G U R E 18.1 3 Shoppers’ considerations for grocery shopping time

 566 Part Two | Communications Tools

are aware of the brand through to encouraging

Advantages and them to buy now. Special offers and sales promo-
disadvantages tions can be highlighted.

Here are some of the advantages and disadvantages

to consider when deciding whether to increase or
Disadvantages
reduce this communications tool. Retail space is premium, and brands compete to get
this space. It is therefore limited and expensive to
secure. It is also expensive to create, deliver and in-
Advantages stall point-of-sale materials into the retail trade.
Merchandising and point-of-sale are present at the Sales teams have to work hard and also try to moti-
point a customer makes a decision to buy, the very vate the busy retailer. Reverse logistics can be in-
last opportunity to communicate with a customer curred at the end of a promotion if the POS has to
before the decision is made. The message can be be removed. Also the lead time has to include the
controlled, and it can range from ensuring c­ ustomers retailer’s time horizons as well as the time required
to produce, deliver and install any POS.

Key points from Chapter 18

●● Merchandising techniques not only offer a last ●● Retail strategies incorporate store image, store
chance to communicate with the buyer, but they layout, merchandise ranges, colour blocking,
can have a major impact on the customer’s choice. POS, promotions and a range of miscellaneous
●● Manufacturers need to empathize with their items.
distributors’ strategies and merchandising ●● Constant analysis and improvement boost
policies. results.

References and further reading

Ad Age (2014) Technology is showcased at Berlin Engel, J, Warshaw, M and Kinnear, T (1991)
marketing conference, Ad Age, 20 March Promotional Strategy: Managing the marketing
Adams, R (2013) The whispering windows, communications process, 7th edn, Irwin,
Guardian, 8 August Homewood, IL
Baker, L (2018) How to increase search rankings and Erlichman, J (1992) How hidden persuasion makes
conversions with customer ratings and reviews, shoppers spend, Guardian, 11 August
Forbes, 5 March Frangoul, A (2019) Supermarket giant Sainsbury’s opens
Bandoim, L (2018) How smart shelf technology will UK’s first checkout-free store, CNBC, 30 April
change your supermarket, Forbes, 23 December Glenday, J (2017) Guinness tantalises Tesco shoppers
Bright Local (2018) Local consumer review survey, 7 with VR tasting experience, The Drum, 18 May
December Google (2016) How mobile has redefined the
Bryson York, E (2010) Shopping aisles at cutting edge consumer decision journey for shoppers, Think
of consumer research and tech, Ad Age, 15 March with Google, July
Chaffey, D and Smith, PR (2017) Digital Marketing Gray, R (2013) Retail revolution, Marketer, March/
Excellence, 5th edn, Routledge, Abingdon April
Court, D et al (2009) The consumer decision journey, Grey, C (2013) The most ambitious in-store retail
McKinsey Quarterly, Q3 iPad integration we’ve ever seen, Fast Company
da Silva, M (2017) Proximity marketing: How to Labs
attract more shoppers with beacon technology, Kiefer, B (2017) How Guinness and R/GA made a VR
Shopify, 12 April tasting experience for all five senses, Campaign,
Danger, P (1968) Using Colour to Sell, Gower, Aldershot 30 May
 18 | Merchandising and Point of Sale 567

Marketing Week (2018) 2018 year in review: It’s been Oliver, B (1987) Marketing Magazine, 10 September
a bad year for…, Marketing Week, 10 December Statista (2019) Number of video gamers worldwide
Neff, J (2010) This upfront, P&G may want to boost 2014–2021, Statista
spend on Piggly Wiggly, Ad Age, 3 May

Further information

British Promotional Merchandise Association Marketing Agencies Action Group (MAAG)

(BPMA) 82 Great Suffolk Street
Fetcham Park House London SE1 0BE
Lower Road Tel: +44 (0)20 7535 3550
Fetcham, Leatherhead www.marketingagencies.org.uk
Surrey KT22 9HD
Tel: +44 (0)1372 371184 POPAI UK & Ireland Ltd (Point-of-Purchase
www.bpma.co.uk Advertising International)
7a Lakeside Court
Institute of Promotional Marketing Ltd (IPM) Maple Drive
Holborn Town Hall Tungsten Park
193–197 High Holborn Hinckley
London WC1V 7BD Leicestershire LE10 3BH
www.theipm.org.uk Tel: +44 (0)1455 613651
www.popai.co.uk
 568

19
Packaging
LEARNING OBJECTIVES
By the end of this chapter you will be able to:
●● understand the three functions of packaging and the importance of packaging at the
point of sale;
●● explain how packaging design can create competitive advantage;
●● appreciate the six design variables;
●● outline the stages in the packaging design process.

Introduction 569 The packaging design process 580

The importance of packaging 569 Why redesign? 580
The packaging opportunity 569 A packaging design brief 580
The three basic functions of packaging 569 The process 581
The communication functions of the pack 570
The silent salesperson 570 Advantages and disadvantages 590
Over-protective packaging 571 Advantages 590
Packaging needs a long-term commitment 571 Disadvantages 590
Brands, packs and corporate identities 572
Key points from Chapter 19 590
The designer’s tools 573
Shape 573 References and further reading 591
Size 574
Further information 591
Colour 575
Graphics 576
Materials 578
Smell 579
 19 | Packaging 569

centres, demanding packs of a size that suits the

Introduction warehouse handling equipment. Good pack design
also saves manufacturing costs.
Packaging is the ‘silent salesperson’. But it has many
other purposes. It also presents opportunities to cre-
ate competitive advantage and save money. Pack­
aging designers work with six variables (shape, size,
Falling in love with a pack
colour, graphics, materials and smell). Managing
the packaging design process is similar in many
ways to managing other marketing communica- Packaging facilitates choice. Choice is rarely made
tions tactical tools. on a rational basis. In fact, the consumer is faced
with several thousand packs screaming ‘Buy me’.
A well-designed pack offers relief from the misery
The importance of packaging of choice. Ernest Dichter (1964) suggested that ‘this
relief may be derived through being permitted to
Since many sales assistants have been replaced by
self-service systems, packaging today often has to like a product, almost to love it indiscriminately
act as a silent salesperson, helping customers by and irrationally’.
bringing a particular brand to their attention, high-
lighting its USPs, giving friendly tips on usage and,
ultimately, helping them to break through the mis-
ery of choice created by the large range of seemingly The packaging opportunity
similar brands. The plethora of ‘me-toos’ (similar
products and brands) and the relentless fragmenta- Packaging is an area of opportunity, as some sectors
tion of markets mean that pack designs have to have difficult to open packs, inadequate labelling
work very hard in a hyper-competitive market. and messy packets, such as boxes of tea that leak
The design of the pack can create competitive leaf dust, sugar packs that spill sugar and bottles
advantage by adding value, improving the product that dribble after pouring. In a market where pack
itself (eg improving the freshness or making it easier design is weak, a new design can steal the advan-
to pour or store, etc), developing stronger shelf tage. It is worth remembering that, although pack
presence, positioning a brand in a particular way, design at worst is just a recognition symbol, at best
and creating or strengthening the brand’s relation- it can offer so much more. As the cost of advertising
ship with the buyer. The pack should be a ‘visual rises, product lifecycles shorten and hyper-­
magnet’ that entices the customer to purchase, form competition intensifies, marketers need to get more
a relationship and, eventually, ultimately become from their packaging. Creative packaging can ­create
loyal to that particular brand. competitive advantage. Even dull and seemingly
Packaging can also be an extraordinarily effec- staid pack designs can be redesigned to create
tive advertising medium, particularly in terms of a competitive, cost-effective edge (see the box
cost and penetration, and reach or cover of a target ‘Creative industrial packaging can also gain com-
audience. On the shelf and in the home it continues petitive advantage’, p 579).
to work, day in, day out, for 52 weeks of the year.
In some ways it is a free medium.
No single element of the communications mix The three basic functions
comes under as much environmental scrutiny as of packaging
packaging. In a sense, packaging should reduce in
size as oversized cartons and unnecessary layers of The three basic functions of packaging are to:
packaging are stripped away by environmental ●● protect (and contain);
pressures (and some cost pressures). Good pack ●● offer convenience;
design also pleases the distributor and retailer by
helping to make distribution, warehousing and use ●● communicate.
of shelf space more efficient. In fact, many ware- First and foremost, a pack must protect its contents
houses are becoming fully automated distribution during storage, transportation and use. Some packs
 570 Part Two | Communications Tools

have to protect the user from the contents (as in the ●● Build loyalty with a pack that:
case of children with weedkillers, medicine, chemi- || looks nicer on the table;
cals, etc). Sadly, some packaging today must also
|| is easy to find in the garden shed or in
protect the contents from tampering. Six people
the warehouse;
died in Chicago when Johnson & Johnson’s Tylenol
pain relievers were laced with cyanide. There is a || is distinctive and easily recognizable in
market for tamper-proof packaging and tamper-­ a store carrying 9,000 separate items;
evident packaging. || is easier to use than the competition’s.
Second, the pack must offer convenience in pour- ●● Instruct the user about how to use the
ing, squeezing, storing, stacking and consuming (in product to optimum benefit.
cars, in the garden, on the beach, in the home and,
●● Inform the user of mandatory requirements
one day, in space). Sugar has yet to be mastered in
such as warnings, source of manufacture
terms of truly convenient packaging. Even a minute
and/or ingredients (buyers tend to want more
improvement in convenience can create competitive
information today).
advantage, as demonstrated by Schlitz beer’s pop-
top can, which helped to boost sales from 5.7 mil-
lion in 1961 to 15.1 million in 1970. On the other
hand, some pack designs are so poor that they cause
The silent salesperson
their own problems. In 1985 the Norwegian com- The pack is the last chance and sometimes the only
pany Elopak had to use TV advertising to try to opportunity to communicate with and sell to a cus-
explain how to open Elopak cartons. tomer. The pack is the silent salesperson. Initially it
Third, the pack must communicate. Before con- has to shout boldly to grab attention and then fade
centrating on the communications aspects of packag- into the background and let the product benefits
ing, it is worth mentioning that all three packaging come forward. A well-designed pack can stop cus-
functions are interdependent. The first two, protec- tomers, invite them to have a look, pick it up and
tion and convenience, both communicate indirectly. pause for a few valuable moments while they are en-
For example, if the product is damaged, tarnished or gaged at the point-of-sale. It is here that the pack can
stale, then a negative image is what remains, despite develop a dialogue by attracting, intriguing, arousing
advertising, publicity and sales promotions that claim unconscious aspirations, informing, reminding, in-
otherwise. Equally, if the instructions for storage or volving, entertaining and, above all, persuading.
pouring are not communicated clearly, then the pack The pack can arouse or trigger stored images
loses its protective and convenience capabilities. from a television advertisement that have been lying
Some products prioritize some functions over dormant in the memory bank either if the advertise-
­others. Some design solutions (or redesigned packs) ment includes a ‘pack shot’ (close-up of the pack) or
cannot optimize all three functions simultaneously if the pack includes some of the images from the
because of constraints such as cost or overall pack advertisement. The brand can also reflect images and
size limitations. Trade-offs, or compromises, between aspirations. The pack can help the customer to recall
functions will then occur. Surprisingly, some opti- those aspirations and develop associations between
mum functions can be forfeited for other reasons. the aspirations and the brand. The hand lifts the pack
off the shelf, allowing the customer, his or her other
aspirations and the brand to move closer together.
The communication functions Packs like Heinz are sometimes called ‘trigger
of the pack packs’, because there is little dialogue other than the
announcement of a strong, confident tone. The pack
The communication function breaks down into sev- design concentrates on being recognized through its
eral different sub-functions: unique visual identifiers, colours, keystone, name
●● Grab the attention of the passing shopper. and lettering, while heavy advertising communicates
the brand values and aspirations. It is interesting to
●● Persuade and convince the shopper to buy. see Campbell’s Soups dispense with Andy Warhol’s
●● Build brand personality and build a legendary red and white livery and replace it with
relationship with the buyer. another aspirational soup setting (Figure 19.1). The
 19 | Packaging 571

Campbell’s graphics portray product values that are F I G U R E 19 . 1 Campbell’s soup limited
arguably less protectable from the inevitable ‘me-
toos’ sometimes produced by the retail stores’ own
edition new designs: ‘Everybody must have
labels. The Heinz pack and image are unique and a fantasy’
therefore more protectable (in terms of branding).
Having said that, Campbell’s introduced a lim-
ited edition Campbell’s Soups can recently and inte-
grated the new design online and offline across
several communications tools. See the full case
study in Chapter 18 on merchandising.

Over-protective packaging
There is a balance between protective packaging,
sales, returns and overall costs incurred. Here are
three examples from James Pilditch’s classic book
on packaging design, The Silent Salesman (1973).
They demonstrate how over-packaging can be iden-
tified, reduced and subsequently used to boost sales
and/or profits:
An electric light bulb company had a breakage
rate so low that it prompted the question:
were the bulbs over-packaged and too well
protected? It subsequently reduced the grade
of cardboard, and returns (of damaged
bulbs) went up. The overall saving in
packaging costs was greater than the
increased costs of breakages and returns.
A detergent company used stronger boxes than its
SOURCE: Wildcard
competitors. The distributors were aware of
this and liked the better boxes, because they
were able to put them on the bottom of the pile in the customers’ aspirations, incorporate demo-
without their collapsing. The product was graphic shifts such as an ageing population, exploit
hidden at the bottom instead of being at eye new technologically driven opportunities (such as
level, which is the optimum ‘buy level’. So the ­microwaves, which require new food packaging) or
box weight was reduced. The boxes started to simply highlight a new improvement in the product
collapse and the detergent was soon freed from itself. There needs to be a constant review of ­customers
the bottom of the pile. Sales soon increased. and their perceptions, motivations and aspira­ tions,
and, of course, a constant review also of competitive
A London discount house was concerned over
packs. Sometimes customers just get tired of a design.
the lack of stealing. It thought, ‘Maybe we
One of the problems with packaging design is
make our goods too hard for people to get
that it never shows up in a normal media budget. A
at’, so the packs were redesigned.
major redesign involving a change of shape as well
as a change in graphics can cost anywhere from
£25,000 to £250,000 for the design stages. The
Packaging needs a long-term tooling cost (the machine parts that the production
commitment line needs to produce the new pack shape) will
probably double the cost. Packaging design is an
The pack design needs to develop and change as mar-
evolutionary rather than revolutionary process. But
kets constantly move away from existing p ­roducts
not all designs involve three-dimensional changes;
(and their packs). The pack may have to reflect changes
 572 Part Two | Communications Tools

often it is simply a two-dimensional change of

graphics. Sometimes this is so subtle (a ‘design
Would you pour a pile of white
tweak’) that the consumer is not even aware of the powder over your new baby?
change, yet the new design will be working harder
for the manufacturer. Look at the Heinz beans cans ‘Would you have the confidence to pour an
in Figure 19.2 and the subtle design tweak. unknown pile of white powder over your new
Packaging design often does not sit comfortably in baby? Put the powder inside the pack called
the marketing budget at all, but failure to get a pack Johnson’s, and emotions are immediately
right is tantamount to possibly wasting millions of evoked of the caring mother–child relationship.
pounds’ worth of above-the-line advertising. You would certainly trust the product with your
A constant design analysis looks at ways in baby. You would not be willing to pay much, if
which design can help to strengthen a brand’s posi- anything, for the powder alone. You would be
tion. Heinz had maintained market share, but only willing to pay a premium for a brand you trust
at the expense of margin. Pack design gave it a lift. and believe in.’
Turquoise is rarely associated with food except for Lewis (1996)
Heinz. Subtle alterations were made to make the
product more appealing and give it a stronger image
for the future. The Heinz lettering was changed
from a thin typeface to a fuller, more generous style;
the keystone was broadened and a white in-line Brands, packs and corporate
used to sharpen its impact; the lettering of ‘oven’
and ‘with tomato sauce’ was changed from tur- identities
quoise to gold; and the tone of the turquoise back- Some brands, and their packs, are inextricably
ground was enriched to create added warmth. linked with the corporation that owns or makes the
It is possible, as Dichter’s classic 1964 book, brands (eg Heinz, Honda or BP). Others keep a
Handbook of Consumer Motivations, suggests, to lower profile with a more subtle form of corporate
‘fall in love with a pack’. It is also possible to form endorsement (like ICI’s Crown Paints). Others still
extremely strong trusting relationships with a pack. prefer to keep the freestanding brand or pack iden-
The relationship-enhancing pack can also help to tity very separate from the corporation, which re-
strengthen branding and even the corporate profile mains anonymously behind the scenes (eg After
of the manufacturer or distributor that controls it. Eight chocolates and Nestlé). There are advantages
The next section of this chapter suggests how. and disadvantages to all three approaches. The cor-
porate culture and diversity of products and mar-
kets can determine the specific approach. Packs can
F I G U R E 19.2 Spot the difference: work in exactly the same way – linking the brand to
subtle design tweaks increase shelf presence the parent company. However, this may be restricted
by the diversity of products and markets. For exam-
ple, think of Esso ice cream, Lada airlines and
Beecham’s beer. If any of these products existed, the
corporate link would not support the brand propo-
sition; it would, arguably, detract from it.
The strengthening of the link between a company
and its brands or packs can help the company by
facilitating new product launches and brand stretch-
ing or brand extension (eg Heinz Weight Watchers).
It can also reinforce corporate presence and, in turn,
reassure different audiences, eg existing customers,
new customers, investors and even employees. On
the other hand, the link can create a design strait-
jacket that, as Lewis (1996) pointed out, ‘inhibits the
 19 | Packaging 573

active development of sub-brands aimed at different not consciously associate these meanings with
target markets’. Since different target markets often shapes, but they are there. During the Second World
require radically different images, these images may War, US paratroopers were tested to find whether
pull in different directions, thereby detracting from they were shape orientated or colour orientated by
the consistency of the overall corporate identity and being shown a film of abstract shapes and patterns.
image. In addition, if a particular brand has a prob- The shapes moved from right to left and the colours
lem (such as product tampering or a faulty produc- moved from left to right. The paratroopers were
tion batch), it is immediately associated with the then asked which way the design was moving.
parent company. This negative reflection can, if the Shape-orientated men were supposed to be more
link between brand and parent company is clearly intelligent, more stable and less emotional. The
established, affect all the other brands operating Thurstone test can be used for packaging design. It
under the same corporate umbrella. As James has revealed that younger children respond to col-
Pilditch (1973) said, ‘The pack can contribute to our more than form (shape), while adults, and men
instant consumer recognition of the company or the in particular, react more to form.
brand.’ Now let us consider the other communica- Pilditch (1973) suggested that a rectangular box
tion functions of the pack. created images of sharpness, neatness and cleanli-
ness, while a round box had associations of security,
plentifulness and generosity. Go into a chemist’s
shop and observe the different packaging shapes
The designer’s tools used for adults’ and children’s bubble bath. Some
shapes give the product a value much greater than
The six variables or tools a designer can use are: its contents. Shapes can also be masculine or femi-
●● shape; nine. Whisky bottles tend to be masculine in shape,
while some perfume bottles are feminine.
●● size; Shape affects the protection and convenience
●● colour; functions in holding, pouring and storing. How a
●● graphics; pack fits into the hand is part of the study of ergo-
●● materials; nomics. A well-designed pack fits the hand more
comfortably and creates what Coca-Cola proudly
●● smell. calls ‘in-hand embellishment’ (it feels good in the
hand). In 1910, part of the packaging design brief
for the now-famous Coca-Cola bottle read: ‘We
Shape need a new bottle – a distinctive package that will
Some brands have such distinctive pack shapes that help us fight substitution... we need a bottle which a
they are recognizable from the shape alone, eg
Baileys, Mateus Rosé, Perrier and Jif Lemon. Other
pack shapes communicate conscious and uncon- F I G U R E 19 . 3 This product can be
scious meanings.
Ask a group to draw the first image, abstract or
recognized in the dark by feeling it
otherwise, that comes into their minds when the
word ‘love’ is mentioned. If they struggle with this,
ask them to imagine they are a design consultancy
whose job is to design a logo for a new political
party called ‘the Love Party’. After a minute ask
them to do the same for ‘hate’. (Close your eyes or
make a doodle yourself before reading on.) Over 95
per cent of the drawings tend to conform to the
same perceptions about shape. The love image usu-
ally has softer edges, curves and maybe heart shapes,
while the hate image tends to have jagged edges and
sharper shapes like swastikas and daggers. We may
 574 Part Two | Communications Tools

person will recognize as a Coca-Cola bottle even shape is arguably Jif Lemon’s lemon-shaped pack. The
when he feels it in the dark. The Coca-Cola bottle Law Lords granted Reckitt & Colman exclusive rights
should be so shaped that, even if broken, a person to this shape; only Jif can use this unique get-up or
could tell what it was.’ shape to package lemon juice.
False ergonomics communicate unreal values to Can manufacturers own monopoly rights to a
customers. For example, dimples (for fingers to pack shape? The test, it seems, is ‘whether the shape
grip) are sometimes placed down the side of a bot- serves mainly to distinguish a product from its rivals
tle, when in fact the bottle is rarely held by the two and whether a competitor using the shape is seeking
dimpled sides; instead, it is held by the two flat front to mislead purchasers’ (Warden, 1990). There are an
and back sides of the pack. The subtle impression infinite number of shapes. Pack shape can form a
created by these false ergonomics is one of ‘This valuable property of the brand. It can become part of
pack looks slightly better or friendlier.’ the brand or the brand equity, eg Red Bull’s slim can
Customers do not often consciously choose one with its distinctive graphics is one of the most recog-
brand instead of another. Ergonomics can help to nized brands in the world.
express that one brand is nicer to use than another.
Real ergonomics help the user to have a more pleas-
ant experience with the pack and therefore encour- Size
age repeat purchasing.
Some shapes reinforce product values by designing Some say Red Bull’s smaller sized packaging rein-
product features into the pack, as with the honeycomb forces its reputation regarding the concentrated
effect on the base of a honey jar. The ultimate brand strength of Red Bull. Others perceive the p
­ ackaging’s

F I G U R E 19.4 Red Bull is one of the world’s most recognizable cans

 19 | Packaging 575

size to be ‘slim, sexy, and powerful’. Size does com- most people can feel colours. Eyeless sight or ‘bio-
municate. Would you give your loved one a perfume introscopy’ suggests that all one’s skin has seeing
packed in a two-litre bottle? The corollary, ie large power. Red, green and dark blue have been found to
pack communicates better quality, is true in product be sticky. This may have something to do with elec-
sectors such as breakfast cereals. Consumer percep- tromagnetic fields. There have been claims that the
tions about cornflakes have been found to change Chinese can teach children to see with their elbows.
according to size of pack. Large cereal packs build Many years ago the US Color Research Institute
feelings of plentiful, expansive, energy-giving food, found that the colour of walls in an office could
whereas a smaller pack may make the cornflakes make people feel sleepy, excited or healthy. More
seem heavy, solid and no good. Size can be used to recently, a British police force has experimented
communicate in different ways. For example, a with pink cells for prisoners. Red increased blood
33-centilitre bottle of premium beer cannot be fully pressure and pulse, while blue had the opposite
poured into a half-pint glass. If the drinker uses a ­effect.
glass, he/she is forced, after filling a glass, to carry The Lüscher colour test uses colour cards to ana-
the bottle away from the bar and over to the table, lyse the reader’s psychological, and specifically
where the unemptied bottle continues to work both emotional, state. Green is ‘the colour of the environ-
as a badge and as an advertisement. ment in Europe and a significant colour for all
Different sizes are aimed at different segments, Muslims. It has religious significance in Malaysia
for example the family pack. Pack size can deter- and is popular in Mexico as a national colour’
mine target markets, or is it that target markets (Ronay, 2005).
can determine pack size? This may be similar to
Ehren­berg’s philosophy of marketing, which states Colour codes
that marketing means excluding many customers
from a particular product (target marketing Some product sectors, particularly food, appear to
ex­cludes the mass). Certain segments exclude cer- have colour codes. For example, within the carbon-
tain sizes, as Coca-Cola discovered when it had to ated drinks sector, red is cola and yellow is tonic.
withdraw its two-litre bottle from the Spanish Freezer meat is red, fish is blue and anything low-
market after discovering that few Spaniards owned calorie or diet is white. Pilditch (1973) suggested
large fridges. If the colour were changed, would that in the wake of health scares many of the world’s
the pack then fit the fridge? Warm colours like red cigarette packs now emphasize white: ‘They hope
and yellow seem to advance or make the pack white is associated with cleanliness and purity.’
appear larger, while cold colours like blue recede Colours have meaning for people. Many people
and make the pack appear smaller. Although a associate colours with images, eg ‘garden fresh’,
change of colour would not have saved Coca- ‘mountain cool’ or ‘rugged manliness’. There was a
Cola’s large bottle in Spain, colour does communi- group of people for whom 7UP’s green bottle had
cate in many different ways. almost medicinal links and therapeutic overtones:
‘the thing to take when you had the flu and the doc-
tor told you to take a lot of liquid’. Whether it is an
Colour annual report, a reception area, some sales litera-
ture or a piece of packaging, colour communicates.
Colour communicates. Albert Kner, former design This applies to products and services in both con-
chief of the Container Corporation of America, said sumer and industrial markets.
‘Colour is the quickest path to the emotions’. Words Colour affects perception. This is probably best
have to be translated into images in the mind. These demonstrated by Ernest Dichter’s research (1964) into
images, in turn, have to be assembled, organized how packaging colour affects people’s p ­ erceptions of
and categorized to give them meaning. This may be taste. Unknown to the respondent, the same coffee
followed by an emotional response, which may sub- was put into four cups. One of four d ­ ifferent-coloured
sequently trigger a physical response. Colour skips coffee cans was placed beside each cup. Respondents
all this and goes straight into the emotions, often were then asked to match the s­ tatements below with
creating a physiological response. Colour is physi- each cup tasted. The research revealed strong percep-
cal. Russia’s Pedagogical Institute has found that tions linked with specific c­ olours:
 576 Part Two | Communications Tools

●● dark brown can: 73 per cent ‘Too strong

aroma or flavour’; The cost of colour
●● red can: 84 per cent ‘Richer flavour or
aroma’; Four colours obviously cost more to print than two
●● blue can: 79 per cent ‘Milder flavour or colours. Can one be economic with the use of
aroma’; colour, the number of colours and the kind of inks?
Is single colour too downmarket? Are four colours
●● yellow can: 87 per cent ‘Too weak flavour
really needed? Has anyone tested a change in
or aroma’.
colours?
More recent research into packaging colour and
perceptions of washing machine powder provided
interesting results. The same powder was put into
three different-coloured packs. The respondents
tried them on delicate clothing for a few weeks and Graphics
were then asked which was best for delicate cloth-
Graphics communicate on different levels. The two-
ing. Respondents thought the performance (of the
dimensional design on a label can help to create and
same powder) was vastly different. Statements
protect individuality and uniqueness, reinforce a
below demonstrate the striking finding:
brand name or image, help to reposition, increase
●● largely yellow pack: ‘too strong’, ‘ruined shelf presence, etc. The use of graphics is arguably
clothes’; the easiest of the designer’s tools to analyse, as mar-
●● largely blue pack: ‘did not work’, ‘clothes keting managers are reasonably design literate as
were dirty looking’; far as graphics are concerned. A naked body on the
label of a bottle of beer will attract attention.
●● blue and yellow pack: ‘fine’, ‘wonderful’.
However, not every brand manager wants this kind
This differs from previous US research reported by of attention. Other images can be used to make a
Terrell Williams (1982) that tested identical wash- pack stand out from the crowd. In terms of brand-
ing powders in three different-coloured boxes; yel- ing, the visual image should be distinctive and
low, blue and red. The yellow detergent was ‘mild, should make the pack immediately recognizable.
too mild really’. The blue detergent was ‘a good all- Even an ordinary tin box can become a valued item
round laundry product’. The red detergent was once some attractive graphics have been applied.
‘good for stains and the like’. Graphics add value by adding aesthetic quality.
Colours may not be international, since colours This creates ‘stay-after value’, which allows the
have different meanings in different cultures. For branding to keep working inside the home, some-
example, white is life, purity and diet in the UK, but times for many years, sometimes for generations.
it means death in Japan. Softer pastel colours and Graphics are sometimes used as a kind of sales pro-
brighter colours are perceived differently around motion by becoming a limited edition or collector’s
the world. In China, bright colours symbolize qual- item, as in the case of the Guinness centenary
ity. Scott entered the Taiwan market with its US Christmas label. Graphics can add value by offer-
blend of pastel-coloured toilet tissues; the launch ing, for example: additional features such as games
flopped. Sales took off when it changed the colours (eg a box of matches with matchstick puzzles); a
to bright red, yellow and gold. Can you imagine UK room-enhancing, stimulating plaything rather than
toilets with bright red toilet paper? Pilditch (1973) just a dull necessity (baby lotion with a colourful
remarked, ‘Not only do simpler folk like stronger children’s toy); or quality associations with images
colours, but people who live under bright sun have of far-off places (coffee with palm trees).
different values from those whose outlook is Good graphics can create a mood or trigger life-
dimmed, say, by England’s “leaden” skies. Think of style aspirations that reflect the often latent desires
this when designing packs to sell to Italian wine- of the target market, for example a shampoo label
growers, or Glaswegian dockers.’ This is important, showing an English country scene for one target
because cross-border packaging may become more market and a rugged desert for another aspiring
common than cross-border advertising. lifestyle segment.
 19 | Packaging 577

F I G U R E 19.5 The LOVI graphics are simple yet aesthetically pleasing

Attention to detail combined with an understanding product while it was still on the shelf’. Pilditch
of the cues and symbols that are relevant to a par- (1973) explained that ‘the spoon also served to in-
ticular target market allow the designer to play with ject the product with some of the reliability of
the unconscious meaning of symbols and images. In grandmother’s honest-to-goodness, my doesn’t that
the case of a cooking fat, according to the psycholo- smell good, old-fashioned kitchen’. In a separate
gists, the positioning of a wooden spoon made it piece of research the analysts turned to the number
‘possible for the housewife to rehearse the use of the and layout of biscuits on a package. A picture
 578 Part Two | Communications Tools

s­howing biscuits scattered all over created psycho- F I G U R E 19 . 6  Bar codes provide useful
logical discomfort, or dissonance, because it sug-
gested gaiety, disorganization, permissiveness and
marketing information
irresponsibility (‘never know how many were eaten
by the kids’). A different picture showing the biscuits
in a neat line triggered associations with orderliness,
parsimony, and fear of disrupting the line by taking
a biscuit, which again resulted in unconscious psy-
chological tension or discomfort. The third image of
just a few biscuits on a plate cut out the chaos and
the irresponsibility and invited the viewer to feel free
to take a biscuit. The number of biscuits was, how-
ever, limited to demonstrate authority and control.
The other pack functions are also helped by good
Graphics affect taste graphics; a blend of visual and verbal instructions
In the same way as colour, graphics also affect taste can make a product and pack much easier to use
perceptions. In fact, packaging designers can test and store (convenience and protection).
different label graphics by asking focus groups or Graphics can also indicate production processes
consumer panels to give their opinions on the taste or corporate caring values such as ‘recycled’ or ‘free
of (unknown to them) the same product. The more from animal testing’. There is some confusion cur-
elegant bottle will tend to have a refined taste, the rently because of the lack of central agreement on
macho label might have a stronger flavour, etc. appropriate logos.
Graphics integrate with other packaging vari- Finally, bar codes linked with electronic point-
ables to create effective communications. Lewis of-sale (EPOS) scanners at retail store checkouts
(1996) suggested that ‘if the form [shape and size help internal communications between the retailer
of the pack] makes the statement then the graph- and supplier by updating stock levels, reorder infor-
ics should step back’. The Lewis Moberly consul- mation and other sales analysis (eg by product, by
tancy worked on Yves Rocher aromatherapy oils store, by day, etc).
and created a tactile experience prompted by
graphics ‘by running the typography [letters] right
round the bottle to encourage the viewer to turn Materials
it, touch it and begin to experience the product Materials communicate. Certain materials, like glass
through the pack’. or metal, have an intrinsic value. Glass still seems to
Many years ago Coca-Cola discovered that its be associated with higher quality. Many wine
dynamic white contour curve (the flowing white ­drinkers would be suspicious of a supposedly top-
ribbon underlining the Coca-Cola and Coke logo) quality wine if it were presented to them in a plastic
reminded observers of the famous profile of the bottle. Nevertheless, the packaging of wine has gone
hobble-skirted contour bottle. through the most radical of shake-ups. Forty years
The graphics should be developed only after ago, if someone had forecast that people would soon
some other key questions have been asked. These be drinking wine out of cardboard boxes it is likely
include: Does the pack use the logo effectively? Can that the comment would have been taken as an in-
the graphics make space for future on-pack promo- sult – with hints of socially unacceptable behaviour.
tions? Do the graphics leave space for international Yet during the 1990s the wine box became arguably
copy translation (usually requires more space than packaging’s greatest innovation, with a nation hap-
English)? Will the graphics lend themselves or at pily drinking from cardboard boxes.
least link with point-of-sale materials? Are the The materials used in packaging affect percep-
graphic images unique and protectable, or can tions of product quality. A good example of this
someone else design something similar, leaving cus- was discovered in the United States, where, ironi-
tomers confused and unaware of their own brand- cally, the better product was perceived to be in the
switching decision?
 19 | Packaging 579

more difficult-to-open package. Crisps of equal legislation. A company’s overseas growth may be sti-
freshness were packaged in wax paper bags and fled by packaging and materials that do not meet leg-
polyvinyl bags. The crisps in the polyvinyl bag were islative criteria. Despite the logistical nightmare, the
perceived (by 87 per cent) to be ‘superior in taste refillable pack is here to stay. The environmental fac-
and freshness’ despite being more difficult to open. tor has a direct impact on packaging and, in particu-
Guinness found that packaging materials, and lar, on packaging ­ materials. Warner-Lambert is
tins in particular, affected taste perceptions. There developing a new disposable plastic made almost
were comments like ‘too gassy, it taints the flavour entirely out of biodegradable starch derived from
and it tastes of tin’ (Nicholas, 1991). Pre-launch potatoes, corn, rice and wheat.
research of the Guinness draught can showed that
in blind taste tests equal numbers preferred the pure
draught Guinness and canned draught Guinness. We made plastic. We depend on it. Now
Subsequent sight tests (showing the source, ie can or we’re drowning in it.
tap) revealed the hidden associations of tin cans:
there was a 70:30 split in favour of the draught The miracle material has made modern life
Guinness. Pretty Polly used tin as an innovative possible. But more than 40 percent of it is used
piece of packaging for its nylon tights. just once, and it’s choking our waterways.
Certain overseas markets have different pack- Parker (2018)
aging material expectations from what is consid-
ered to be the norm in the UK. For example, in
Europe, meats, fruit, vegetables, pet foods and
fruit juices are packed in glass. This means that if Smell
UK manufacturers want to enter these markets
they will have to work with a new packaging Smells can change shopping behaviour. In a Phila­
medium, which may well be glass. In the UK, tin delphia jewellery store some years ago, casual shop-
has an emotional quality. It can become even more pers lingered longer than usual because, claims the
emotional when mixed with shape and colour, eg a Monell Chemical Sense Center, scents change shop-
red, heart-shaped tin box of chocolates for St pers’ moods. In this particular case it was a fruity
Valentine’s Day. floral scent. Mood-changing odours change peo-
Some packaging materials have to work very ple’s brain patterns. The Chicago Tribune reported
hard. For example, microwave packs have to be the renowned neurological director of the Smell
able to protect and store the food at temperatures and Taste Treatment and Research Foundation in
below zero and then have to offer convenience Chicago, Dr Alan Hursch, as saying, ‘Eventually we
cooking by being able to be put into the microwave will be able to influence in a much more powerful
at very high temperatures. Some packs are then way. By making people more relaxed or more trust-
used to eat out of. Self-heating and self-cooling cans ing you could sell them more.’ Scented packaging is
offer new levels of convenience. Apart from the con- becoming more popular.
venience and communications implications of pack-
aging materials, the final materials choice is
integ­rated with a host of other factors such as opti- Creative industrial packaging can also gain
mum size, weight, strength, cost and filling speed, competitive advantage
together with other features such as colour, closure,
secondary packaging, shelf life, tactile characteris- The design resource is not exclusively reserved for
tics and shelf impact. FMCG goods. There is always room for design,
Finally, material is the variable that is affected creativity and innovation in industrial markets.
directly by environmental pressure groups. New leg- Electric cable manufacturer BICC used pack design
islation is putting pressure on manufacturers and to stand out from the competition in the commodity
retailers to use more environmentally friendly pack- cable market and to offer USPs to a traditionally
aging. In the US, garbologists now probe landfill sites
conservative market. It moved from the traditional
to determine the state of decay of various materials.
reel of cable to a newly designed box. This helped
In Europe, Germany leads the way in environmental
 580 Part Two | Communications Tools

the electrical wholesaler by making stacking,

●● Market (size, growth, competitive structure,
positioning, specific requirements such as
storage and identifying (holes in the pack allowed
pallet configuration).
the different colours of cable to be seen) a lot
easier. The pack, however, was not allowed to look ●● Target markets: segments, targets, decision-
too upmarket, as the conservative buyers assumed making units – particularly tricky with gift
it would be more expensive. Before phasing out the products, eg at whom do you target the
old cable packs (reels), they were used to advertise
design, the giver or the receiver?
the imminent arrival of the new packs – the box of ●● Reason for design (eg pressure from retailers’
cable. own labels).
●● Design constraints, eg size, shapes, colours,
images or materials.
●● Restrictions: technical, legislative and
The packaging design corporate restrictions on materials,
warnings or warranties, and logos
process respectively.
●● Brand factors and personality, key design
Why redesign? elements.
●● Merchandising display opportunities.
‘If it ain’t broke, don’t fix it.’ Perhaps, but some
pack designs can become tired or dated, or the mar-
ket simply moves away, making the pack’s current Objectives
position a liability. On the other hand, valuable
What packaging functions are prioritized (protec-
brand equities or properties such as names and
tion, convenience or communication)? If communi-
logos are assets worth maintaining. They may also
cation, state the objectives specifically; repositioning
need ‘tweaking’ from time to time, but rarely need
from what to what? Or is the new pack design pri-
to be disposed of. Perhaps a creative brand manager
marily aimed at shouting louder or creating a
and a professional printer can produce an updated
stronger shelf presence, etc?
or even new graphic design for a pack. Jan Hall,
formerly of Coley Porter Bell, says this would be
like ‘putting together the Pope and a paint company Strategy
to paint the Sistine Chapel’. The designer’s interest How does the pack fit in with the rest of the com-
(or input) in the pack increases progressively during munications mix (the communications objectives
the course of the product’s lifecycle (see Figure and mix)? The brief may also state whether the
19.7). In other words, the pack design has an in- pack design is a low-risk design project (new unit
creasingly important role as competition becomes load, new material, temporary sales promotion, sec-
more intense. ondary panel changes, new ingredients, etc) or a
high-risk design project (new name, new colour,
new image, new logo, new shape, etc).
A packaging design brief
The SOS + 3Ms can be used as a checklist when Tactics
writing a design brief, which can be modified for
Details are not always required here.
packaging.

Men/women
Situation/background
These are the contact names for technical discus-
●● Company (history, production facilities). sions (eg the production manager) and for market-
●● Product (range, features and benefits, ing discussions. Clarify who makes the key decisions
material properties, eg liquids, gases, (who signs off or approves artwork, etc) and who
chemicals). can provide answers to miscellaneous questions.
 19 | Packaging 581

F I G U R E 19.7  How design attention shifts between content and presentation as a

product progresses through its lifecycle
Product
Launch First Second superseded/
Sales update update deleted

Time

Design ‘Content’
interest

‘Presentation’

Provide the names of any other agencies that may final artwork be delivered? How long has been
be working on other marketing communications as- ­allowed for tooling (which can take up to 50 per
pects, such as advertising and sales promotion. cent of the total design time, eg three months)?

Money The process

Money means the design fee, rejection fee (some
­designers charge a rejection fee for presenting ideas The brief may emerge after an initial review of the
or concepts, even during a pitch), changeover costs pack design. The designers (whether in-house or an
(this may incur capital expenditure if a change of external consultancy) often take the brief away, inter-
shape requires a new machine tool) and, ideally, an pret it and rewrite it. Then they present this to the
indication of the maximum unit cost of the new marketing team to ensure that everyone agrees with
pack (the designer will need to know the size of pro- each other before embarking on any further creative
duction runs, etc). work or research. This may be followed by further
research, and eventually a range of concepts (two-­
dimensional labels and three-dimensional pack shapes,
Minutes sizes and mechanisms) is developed for further re-
This is the timescale. What are the launch dead- search. This guides the selection of a concept for ulti-
lines? When must concepts be presented, agreed, mate development into the new pack. Figure 19.8
researched, refined and approved? When must the shows the standard stages of a pack design project.
 582 Part Two | Communications Tools

F I G U R E 19.8 The packaging design process

Briefing

Research

(Market and store visits)

Concept development

Graphics Shapes

Research Research

Concept selection Concept selection

Graphic and shape design

agree optimum designs

Mock-up Model

Model drawings
Layout

Detailed component drawings

Finished artwork
Toolmaker’s drawings

Labels Bottles

Pack with label

SOURCE: Adapted from the pack design management video From Dream to Reality (Smith, 1991)
 19 | Packaging 583

C A S E S T U DY Packaging with added value on-pack promotions

Situation
“When we work on Pedigree, we don’t consider
Pedigree dog foods marketing team and agency, Colenso
that we’re selling dog food, we’re selling the
BBDO, constantly scan the market for trends and opportu-
relationship between the human and their dog.
nities to deepen Pedigree’s relationship with their custom-
That’s what we’re competing against – other
ers. The selfie photo has become a 21st century phenome-
things that take your emotional attention away
non. And dog lovers are no different. In fact, they love to
from your dog.”
take photos of their dogs and, when they can, take selfie
Dan Wright, Colenso BBDO
photos of their dog. Problem: dogs don’t pose for selfies, or
any kind of photo.

Objective: The challenge Strategy (part 2): Create and distribute an on-pack
So how could a dog food company help their customers to SelfieSTIX gift
get these photos? Another useful question for all brands is Create and distribute an on-pack Pedigree SelfieSTIX (a
‘How can AI help my CX?’ In Pedigree’s case, the question clip that attaches Pedigree Dentastix to a phone) plus a
becomes, ‘How can AI help dog owners and their relation- Pedigree SelfieSTIX app for smart phones so that owners
ships with their dogs?’ can add filters to their dog photos. The SelfieSTIX clip is
The actual brief was to change the perception of free with each pack of Dentastix. The SelfieSTIX unit is
DentaStix from being a functional product (keep your dog’s simply a smart phone clip that can hold one dental dog
teeth clean and healthy) to something that is equally irre- treat (eg Dentastix). Dog owners simply have to clip the
sistible for dogs (and also nurtures the relationship between SelfieSTIX on their phones and attach a tasty Dentastix to
dog and owner). entice the dog to become very focused on the food, effec-
tively staring at the camera and allowing dog owners to
Strategy (part 1): Reposition take the perfect selfie with their pup.
The SelfieSTIX app uses unique dog facial recognition
Pedigree was moving from their old positioning, ‘We’re for
(AI) to recognize when a dog is looking straight at the cam-
Dogs’, to the current one, ‘Feed the Good’. And that came
era. To create this AI, they used Stanford University’s dog
from an understanding that the brand needed a purpose
dataset (of dog photos).
that goes beyond being for dogs. ‘Feed the Good’ refers to
the fact that dogs bring out the best in the dog owner and
therefore Pedigree’s job is to bring out the best in them. Tactics
There are three ways of doing that. The first one is obvi- The usual marketing mix has to be mobilized to create
ously the product, giving dogs access to good, nutritious awareness, sales and ongoing engagement. This included
food. The second one is the Pedigree Adoption Drive pro- packaging redesign (to accommodate the offer), PR (prod-
gramme, which helps rescue dogs find homes, with the uct launch – SelfieSTIX and the app), advertising and ­social
added benefit of growing the category. Because the more media (user-generated content marketing: selfie photos).
dogs there are in homes, the more dogs you have to feed.
It’s hard to grow as a brand if you don’t grow the category. Actions
And the third one is innovating with technology or any other
available tool to help make the world a better place for dogs To build an algorithm that identifies an object, you have to
and their owners. teach it what that object looks like. And so, in order for you
 584 Part Two | Communications Tools

F I G U R E 19.9  The free SelfieSTIX to do that successfully, you have to train the algorithm with
thousands of images. By feeding the algorithm thousands
­on-pack-promotion of dog face photos, machine learning ‘learns’ to recognize
different dog faces, their size and structure so that items/
filters can be perfectly fit to each particular dog face. So
the app learns to recognizes different dog faces (colours,
size, features) so that the app can then suggest perfectly
sized items/filters (hats, glasses, moustaches) to be added
to the basic photo.
Every pack of pedigree dog food included a SelfieSTIX
clip and instructions to download the app. AI recognition
allows the app to recognize (a) when the dog looks straight
at the camera, and (b) different sizes and structures of dog
faces (so that filters fit perfectly). The app then automati-
cally takes the photo and then offers a selection of filters to
fit the dog’s face. The app allows the customers to select a
particular filter (eg hat) for the final photo (Figure 19.12).
Pedigree also added an ecommerce dimension – if the
dog stops looking at the camera, the app triggers an op-
tional order of Dentastix (or pack of Pedigree dog food).

Control: Measuring the results

Four months post-campaign launch: 2.1 million interac-
tions, 3.5 million engagements and a 24 per cent increase in
sales. One-quarter of New Zealand’s dog owners re-
deemed a SelfieSTIX, making acquisition cost 12 times
lower than the industry standard. ROI: 1.5 : 1
SelfieSTIX is now rolling out globally. In fact, the cam-
paign execution was refined for the 25+ markets that have
since rolled it out. Watch the Pedigree Chum video https://
vimeo.com/254605619 and see the explanation of how
the AI works, or view it in the online resources for this book.
 19 | Packaging 585

F I G U R E 19.10 The SelfieSTIX in use

F I G U R E 19.11 AI recognition
 586 Part Two | Communications Tools

F I G U R E 19.12  The filter in the SelfieSTIX app allows the customers to select a particular
filter for the photo

F I G U R E 19.13  If the dog stops looking a the camera this triggers an optional order of
­Dentastix
 19 | Packaging 587

C A S E S T U DY Brand range development in India

Situation me up’ appeal. The new 1980s Boro Plus pack colours were
purple and white, and delivered brighter, fresher contempo-
The background
rary colours. These colours were also attention-grabbing.
During the winter months in northern and eastern India,
evening temperatures can drop down as low as five de- Advertising
grees. This causes dry skin conditions ranging from gen-
An advertising campaign created the category for a more
eral dehydrated, chapped skin to more serious cracked
youthful and aspirational quality by bringing in Bollywood
skin. The market is flooded with manufacturers advertising
celebrities to endorse the brand.
skin care products that promise to ‘keep skin healthy’.
In 1929 GD Pharmaceuticals based in Calcutta identified
The challenge
the need for an antiseptic ointment to combat dry skin prob-
lems. Boroline was launched. It was effectively the first Although Boro Plus had performed consistently since its
brand in the antiseptic cream category. The consumer offer successful 1980s launch, it was facing increased competi-
was a perfumed multi-purpose skin cream for cuts, burns, tion, in particular from international brands entering the
chapped skin, etc. The trusted Boroline brand achieved Indian domestic market. Over 20 years after Boro Plus’s
strong penetration in eastern Indian markets. Although launch, Emami needed to do something because, firstly,
Boroline had firmly established itself within the market, it being recognized as an antiseptic cream with a multi-­
had not capitalized on the huge potential opportunity of na- purpose benefit restricted new product extensions and,
tional penetration into India’s giant marketplace of a popu- secondly, there was an opportunity to create a range of
lation of one billion. skin care products for both domestic and export markets.
Boro Plus Antiseptic Cream was launched in 1982 to Emami recruited a London design agency, Evolve
revo­lutionize the antiseptic cream market, and differentiate Creative, to work on the new branding and packaging be-
Boro Plus from Boroline through product formulation and cause of its track record of working with international beau-
branding. The name Boro Plus was created, as it was seen ty and healthcare companies. They work closely together
to convey a sense of added value. The herbal formulation today developing and tweaking designs to meet the contin-
combined with the Ayurvedic concept (an ancient Indian ually changing market opportunities.
healthcare system that means ‘the science of life’) was Market research conducted by Emami among retail out-
marketed as a preventative, curative and healing ointment. lets and users revealed one factor that went against Boro
Leading Ayurvedic authorities endorsed the brand. Plus: the oiliness of the product on the skin, which meant
that during warmer months the cream felt uncomfortable to
Competition use due to the heat, and therefore larger purchases were
seasonal, ie during the winter. This, in turn, restricted the
During the 1980s an established Indian manufacturer of
multi-purpose proposition, so Emami decided to reposition
beauty and healthcare products, Emami, saw the bigger mar-
the brand from a traditional medical product to an aspira-
ket opportunity to introduce a low-end product into the mass
tional beauty product.
market to directly compete with Boroline. The low-end seg-
ment had cold creams (for night use) and vanishing creams
(for day use). The antiseptic cream category offered a
Objectives
­multi-purpose product – if positioned and marketed correctly. ●● To create a new brand (identity and packaging design)
for both Indian and export markets.
Packaging
●● To strengthen the brand’s credibility as a skin care
Boroline packaging was perceived to be dull and old-­ product by simultaneously expanding the product
fashioned: an earthy green pack that had not changed since range to meet new needs.
its 1929 launch and was not seen as attractive. It lacked ‘Pick ●● To help boost sales by a minimum of 30 per cent.
 588 Part Two | Communications Tools

F I G U R E 19.14  Repositioning from a traditional medical product to an aspirational

beauty product

beauty

traditional aspirational

medical

F I G U R E 19.15  Original logotype vs Strategy

new identity Reposition the conservative multi-purpose pharmaceutical
product to an aspirational skin care brand bridging skin
health and beauty, and expand the product range to fill
identified needs.

Brand development
The brand repositioning was achieved by highlighting the
product’s natural herbal formulation and creating a softer
and more distinctive logotype. The design also linked the
product more directly with the media personality used for a
testimonial in the launch TV and cinema campaign. The re-
sult was highly successful, and the year-on-year sales in-
creased by 32 per cent.

New product extensions

Immediately following the approval of the re-launch pack
design, work began on a series of product range exten-
sions for both the domestic and the international market,
which were test marketed and launched in India. These
successfully positioned Boro Plus as a substantial and
 19 | Packaging 589

F I G U R E 19.1 6  Boro Plus antiseptic F I G U R E 19 . 17  Boro Plus healthy skin

cream packaging packaging
 590 Part Two | Communications Tools

s­ erious contender in the broader skin care market, with the to fill identified gaps as they emerge from ongoing market
consumer promise of a full, natural skin care regime. research. The brand’s now extensive range is being estab-
Emami now work closely with Evolve design agency ex- lished in international markets, including Russia and
tending the range further. Market research has revealed Africa.
that there was also a need for a low-unit product (LUP) in
the antiseptic category. It showed a large number of wom- 3Ms
en wanted to carry a tube of Boro Plus in their handbags,
but couldn’t because of its size. With this in mind, Emami ●● Men/women: The team consisted of three people (two
launched the 8 gram variant priced at five rupees. The af- designers and an account handler).
fordable price point has triggered impulse purchasing, ●● Money/budget: The budget was £6,500 for branding,
which allows customers to trade up as they move up the and £7,000 for packaging.
ladder of loyalty. ●● Minutes/timescales: The lead time required to create,
develop, test, refine and roll out the brand and the
Results pack was three months for the brand and five months
for the pack.
Boro Plus now successfully dominates the market with a
70 per cent market share. It continues to expand the range

media). It also carries the brand into the customers’

Advantages and homes or workplaces, so it keeps on working long
disadvantages after the sale. Great packaging stands out from the
clutter and adds perceived value to a product.
Here are some of the advantages and disadvantages Within the retail environment, packaging can create
to consider when deciding whether to increase or or reinforce awareness as well as help to close the
reduce this communications tool. sale.

Advantages Disadvantages
Packaging is the silent salesperson, catching cus- Packaging requires long lead times and is expensive
tomers’ eyes, drawing them in and selling the finer to change. The audience is obviously limited to re-
detail as they digest the information. Like merchan- tail traffic looking at the category. Wasteful packag-
dising, it is often the last chance to communicate ing is not only an irritant for customers but also
before the customer makes a decision. Packaging deemed to be un-environmental (in some markets
provides a platform where the exact message is con- this is a legal issue). If the pack is too trimmed or
trolled by the marketer (unlike PR and social too light the product can get damaged.

Key points from Chapter 19

●● Packaging has three functions: to protect, offer ●● All marketing is a series of processes, and
convenience and communicate. packaging development is no different: there is
●● Packaging design presents an opportunity to a sequential method for managing the design
create competitive advantage. process.
●● The designer’s six tools are shape, size, colour,
graphics, materials and smell.
 19 | Packaging 591

References and further reading

Bayley, S (1986) Coke! Coca-Cola 1886–1986: magazine/2018/06 (archived at https://perma.
Designing a megabrand, Conran Foundation cc/48XN-9BNJ)
Boilerhouse Project, London Pilditch, J (1973) The Silent Salesman, 2nd edn,
Dichter, E (1964) Handbook of Consumer Business Books, London
Motivations: The psychology of the world of Raeburn, O (2003) Design choice, Marketing, 8 May
objects, McGraw-Hill, New York Ronay, A (2005) Paint your brand, The Marketer, 15
Lewis, M (1996) In Understanding Brands, ed September
D Cowley, Kogan Page, London Smith, PR (1991) From Dream to Reality (video),
Milton, H (1991) Packaging Design, Design Council, Media Services, London Metropolitan University,
London London
Nicholas, R (1991) Come home to a real beer, Southgate, P (1994) Total Branding by Design, Kogan
Marketing Week, 15 February Page, London
Opie, R (2001) The Art of the Label, Chartwell, Warden, J (1990) White paper gives shade to
London trademarks, Marketing, 27 September
Parker, L (2018) We made plastic. We depend on it. Williams, T G (1982) Consumer Behavior, Research
Now we’re drowning in it, National Geographic, report, West Publishing, St Paul, MN
June [online] http://www.nationalgeographic.com/

Further information
Chartered Society of Designers (CSD) The Museum of Brands
1 Cedar Court 111–117 Lancaster Road
Royal Oak Yard London W11 1QT
Bermondsey Street Tel: +44 (0)20 7243 9611
London SE1 3GA www.museumofbrands.com
Tel: +44 (0)20 7357 8088
www.csd.org.uk The Packaging Society
A division of the Institute of Materials, Minerals
Design Business Association and Mining
35–39 Old Street 297 Euston Road
London EC1V 9HX London NW1 3AD
Tel: +44 (0)20 7251 9229 Tel: +44 (0)20 7451 7300
Fax: +44 (0)20 7251 9221 www.iom3.org/packaging
www.dba.org.uk

Design Museum
224–238 Kensington High Street
London W8 6AG
Tel: + 44 (0)20 3862 5900
www.designmuseum.org
 592

20
Owned media –
websites and social
media
LEARNING OBJECTIVES
By the end of this chapter you will be able to:
●● understand what makes websites succeed;
●● understand what makes social media successful;
●● ensure that the four key satisfaction factors are applied to your website;
●● understand what increases the quality of the content on a website;
●● understand what increases navigation’s ease of use;
●● convert visitors to customers and customers to lifetime customers;
●● avoid the 10 common mistakes of social media;
●● know how to optimize your website and your social media content.

Introduction 593 10 steps to integrate social media into the

business 606
Owned media 593 10 common social media mistakes 608
Website purpose 593 SEO 609
Sizzle sites 593 10 SEO tips 609
Sloppy sites 593 SEO for voice search 609
‘Inside-out’ or ‘outside-in’ websites 594 Optimizing = empathizing and eliminating 610
Top tasks sites 594 Key phrases 610
Customer orientated sites 594
Advantages and disadvantages 635
Successful websites 595 Advantages 635
Relevant content 596 Disadvantages 635
Easy-to-use navigation 599
Key points from Chapter 20 635
Engagement 600
Conversion techniques 601 References and further reading 636
Successful social media 606 Further information 637
 20 | Owned Media – Websites and Social Media 593

LinkedIn, Instagram or maybe Facebook. Secondly,

Introduction a good website should help and engage customers
and hence nurture some brand preference. Thirdly,
The chapter explores owned media (media that you
websites should help to identify prospects, who
own). We also explore ‘sizzle’ (exciting added-value
can be converted into customers via the website, or
content), customer engagement and customer con-
an automated email, telephone call or offer of a
version (from prospect to customer to lifetime cus-
chatbot to help. Finally, the website should ideally
tomer), as well as the constant search for website
help to convert customers into lifetime customers
improvement. The chapter then explores how to
and ultimately into brand advocates by adding
ensure social media actually wins.
value to the customer experience each time they
Great websites are useless if they have no traffic.
visit. The ‘5Ss’ is another way of thinking about
So to ensure we get the right traffic we will look at
the objectives or purpose of a website: sell, serve,
SEO for websites and social media.
save (time), speak (dialogue) and sizzle (more
later).

Owned media Sizzle sites

Owned media (media you own, such as your web- Sizzle adds excitement to a website. Sizzle is a
site), earned media (word of mouth, shares, likes, ‘wow’ website experience that leaves customers de-
comments) and paid media (paid-for posts, tweets lighted and wanting to only use your website for-
and ads) are referred to throughout this book. Your ever. Ask yourself, ‘What experience could my
content marketing is technically owned media and website deliver that would really help customers
arguably your offices/buildings are permanently get excited?’ Some sizzle isn’t awfully expensive, eg
owned media (planning permission allowed, you Harley-Davidson’s motorcycle website offers web
could host banner ads or messages on your own visitors a virtual ride and lets them actually see the
buildings – see Whitehawk FC’s clever use of the same view a Harley rider enjoys, cruising through
stone steps for key messages, p 636). the countryside. The UK Patent Office’s trademark
However, ‘owned’ generally refers to your web- division allows visitors to search by name, design
site, your apps and your online social media plat- and date for similar trademarks. Its integrated sys-
forms. Owned media usually targets your brand’s tem ensures Patent Office staff are available to talk
existing community/followers and/or current cus- customers through any of the processes. It also
tomers. We are going to concentrate on websites gives visitors access to their own archived applica-
(first half of this chapter) and social media (second tions – all with the click of a button. A complicated
half) and finish the chapter with some intriguing and sometimes dull process has been made surpris-
case studies. ingly user-friendly.

Why do you have a website? Sloppy sites

In just a few seconds, sloppy websites destroy
Do you remember the single most important reason brands that took years to build. Whether it’s bro-
discussed in Chapter 1, page 4? ken links, dead ends, confusing registration forms,
typos, poor design or cluttered content, error-
laden websites all do serious damage. Sloppy web-
sites not only kill sales, but they can destroy a
Website purpose brand. Cluttered sites grow as nearly all managers
want their products, their innovations, their news,
Firstly, without a website you are not credible. their staff on the website. As concentration spans
This may change in the future, but right now, you fall and impatience rises, clutter becomes a killer –
are not credible without a website, or at the very particularly if the visitor uses a small screen/smart
least, some social media presence whether that is phone.
 594 Part Two | Communications Tools

‘Inside-out’ or ‘outside-in’ websites once these tiny tasks are published there is
absolutely no incentive to review or remove
With ‘inside-out’ design the content is all about the
organization, the team, its products; ‘outside-in’ de- them. Thus as the website gets old it gets
sign starts with search queries (which keywords in worse. What is the classic solution? A
ad campaigns and Google searches deliver profit­ redesign!’
able customers) – search phrases are then grouped McGovern (2010b)
and content written to answer each search query.
The outside-in site design is driven by what custom-
ers seek.
Raving alcoholics and web redesign
‘Get rid of anything that is not an answer to ‘A classic web redesign is like taking a raving
questions that your readers may ask.’ alcoholic and sending them to rehab for a
Visser et al (2018) month. (Giving a website to a marketer or
communicator is like giving a pub to an
alcoholic.) They come out looking clean and
Top tasks sites redesigned. However, the underlying problems
have not been addressed so six months later
Identifying the top tasks that visitors want to com- you’re back in the same mess.’
plete when they are on your website is critical. The McGovern (2010b)
website design is consequently driven by these kinds
of tasks. Wunker et al (2016) call it ‘the jobs to be
done’. Every visitor has a reason, a job, or a ques-
tion that need answering. Here is Gerry McGovern Customer orientated sites
explaining how identifying top tasks can reveal in-
‘Defining, first, the purpose of your web site and
sights that directly affect customer conversion rates,
second, your audience, are fundamental stages of
enquiries and, ultimately, sales.
web site development. The answers drive the kind
of content required; content drives the form re-
quired; and form drives the structure of the site’
Two key tasks: Getting married and (Chaffey and Smith, 2017). This answers the ‘who’
divorced get lost amidst tiny tasks and the ‘why’ questions raised in Chapter 4. The
third customer question, understanding ‘how’ peo-
‘Another legal and medical publisher spent a ple use your website, is answered via range of re-
long time trying to figure out what its customers’
search approaches including:
top tasks were. One area in which they publish ●● eye tracking and mouse tracking;
is family law. After much discussion it dawned ●● facial scanning; neurological examination;
on them that there are really only two tasks that
●● web analytics;
matter: getting married and getting divorced. If
you went to their current website these tasks ●● user testing;
would have been very hard to find amidst all the ●● optimization teams.
clutter. They (the many other tiny tasks) all want
to be on the homepage. They all want to be a
news item or an ad. They want more links. And Think mobile first
they will press and press the web team to give
them these things. Little by little the tiny tasks ‘Google have announced that the smartphone
clutter the homepage, the other major pages, websites and mobile index will become the
the navigation and the search. And, of course, primary input in the near future. If a website is
 20 | Owned Media – Websites and Social Media 595

not suitable for smart phones this could have direction that the people in an image are looking
adverse consequences after this switch.’ in.
Visser et al (2018)
●● The call to action button must be prominent and
Remember, if it looks ok on mobile it usually looks ok immediately clear. On a landing page, you may
on a tablet or desktop. But not necessarily the other be asked to perform the same action several
way around. So ‘think mobile first’ makes sense. In times. Clear and noticeable action buttons
fact, responsive design (scalable website) converts perform better.
desktop designed websites so they look ok on
●● You will receive considerably more completed
tablets and smart phones, by making all the content
forms if you refer to the form in various places
fit the smaller screen size of other devices.
and on a lot of pages and directly asked for a
The alternative is adaptive design (specifically for
response.
smart phones) – it will have fewer images and shorter
text plus thumb-friendly body and you often see a Excerpts from Visser et al (2018)
hamburger icon in the top right-hand corner that
represents the menu. Mobile-specific websites also
feature ‘tap-to-call’ and ‘tap-to-SMS’ which let
visitors easily and quickly contact the business Many websites are built on social media engines
directly from their mobile device. like Wordpress, which also offers responsive design
options/templates, ensuring the website is smart
phone friendly. In fact, it renders/displays differ-
ently ie it rearranges the website content display
(and apparent structure) to suit whichever device is
Content design being used, eg a smart phone. Therefore, many web-
sites are effectively blogs if using, say, Wordpress
●● Sentences should be short because reading (social media blog) although they may not look like
texts from a screen is much more tiring than a simple blog. However, we will separate ‘websites’
reading text on paper. An average length of from the main social media platforms. So let us look
between 12 and 15 words per sentence is firstly at successful websites and find out what
considered optimal. For screen texts the optimal makes them successful.
average is nine words per sentence.
●● Landing pages that fit on one screen perform
better. Visitors read less and less. Information Successful websites
from pictures, headings and pieces of text are
sufficient for encouraging visitors to respond. Web usability guru, Jakob Nielsen, identified four
basic website factors that keep visitors satisfied and
●● Scrolling is in decline. Asking for comments at
coming back again and again:
the bottom of the pages there are only visible
after scrolling will cost you a response. Use ●● relevant content;
special landing pages and eye-catching action ●● easy-to-use navigation;
buttons. ●● speed of download;
●● People like to look at other people. Landing ●● updated content.
pages that include an image, preferably of a
The last two factors are self-explanatory: sites that
person, perform better on average than landing
are slow to load (particularly on smart phones) lose
pages without images. customers, who will not wait more than four sec-
●● Draw people’s attention to an action button. onds. ‘Google will finally use mobile page speed as
Visitors tend to follow the same viewing a ranking in their mobile search results’ (Schwartz,
2018). Site speeds are actually getting slower. In
 596 Part Two | Communications Tools

2019 the average page load time was 6.8 seconds, each ad is best. Have just one proposition on each
up from 6.1 the previous year, which is a long way landing page. Reduce the number of CTAs and but-
off Google’s recommended target of two seconds tons, as landing pages with navigation that is lim-
(Wolfgang Digital, 2019). ited to a few buttons do better than pages with (full)
Regarding updated content, sites that have out- navigation (Visser et al, 2018). For example, if you
of-date content will irritate visitors. So we are going search for one of Britain’s leading insurance compa-
to batch ’relevant’ and ‘updated’ content together nies and insert ‘Compare the market car insurance’
and list them collectively as ‘relevant content’. This you will find a link to a landing page for ‘Compare
allows us to add our own critical component – ‘con- the Market’ with, essentially, just two options: ‘Start
version techniques’. These include (a) visitors to a quote’ or ‘Go to your account’.
customers and (b) customers to lifetime customers.
We will now explore the following modified success Scenario planning
factors:
One tried-and-tested technique for ensuring rele-
●● relevant content; vant content is scenario planning. Marketers take
●● easy-to-use navigation; each target customer type and consider, in detail,
●● engagement; the customers’ situation, how they might use the
product or service and the steps they would take
●● conversion techniques. when buying. A chocolate company might have dif-
ferent customer scenarios – some who want to buy
a gift for a loved one, others who want chocolates
Relevant content for a dinner party, and other customers who want
In addition to the usual offline and online market chocolates for a wedding. By exploring what would
research (see Chapter 6), which reveals what the be helpful to customers for each of these scenarios,
target market wants to see on a website, marketers marketers build sites that cater for each scenario, eg
can also ensure that their site is even more relevant the wedding section might have ideas on wedding
by using: table layouts or love messages on chocolates, and
the dinner party section might list ideas for dinner
●● scenario planning;
party games.
●● personas. A plumbing company might identify at least two
Relevant content is the number one reason why customer scenarios – one for emergencies (they need
visitors come back to a website. Suffice to say that a big panel saying ‘Emergency – call now 24/7’ with
customers at different stages of the buying process a telephone number), while another scenario might
need different information. And they need a stream be customers who need help and ideas to change a
of information during their buying journey – some bathroom.
of it on the website, some in email, some on an app,
some can be a personal phone call or even a sales Personas
rep visit to complete the sale. A contact strategy de- Personas help decide what kind of content custom-
fines the sequence of possible contacts with the cus- ers want. Personas are ‘thumbnail’ descriptions of
tomer and the kind of content they receive. See types of visitor for each scenario. Advertising agen-
Chapter 15, p 449 for more. cies have used personas for planning ads for many
years, and now web designers find personas very
Relevant landing pages helpful too.
Landing pages are additional web pages designed Here are three personas for Dulux paint who
for customers who click on an ad or an email. They firstly, describe their target market as:
are temporary pages but should look and feel the Adventurous 25–44 year old women, with a
same, and have the same layout as the main website propensity to socialize; with 12-month decorating
pages with a few small differences. The headline on cycles; shopping online; but lacking in DIY
the landing page should be the same as the adver- confidence because of the gap between inspiration
tisement. Therefore, a separate landing page for (beautiful decorated homes in TV, magazines and
 20 | Owned Media – Websites and Social Media 597

F I G U R E 20.1 Compare the Market landing page with just two CTAs

SOURCE: Courtesy of Compare the Market, and also thanks to M Visser, B Sikkenga and M Berry (2018) Digital Marketing Fundamentals,
who suggested this example

advertising) and their own experience (large, cold, National Semiconductor take scenario planning
impersonal sheds/stores); without any guidance to the extreme with their hugely successful scenario-
nor reassurance available currently on their driven website built almost twenty years ago, yet
journey; although they know online is a well-used still a masterpiece in web design. See the box below.
channel for help and guidance (on other topics);
colours and colour combining are key.
Scenario planning that delivered massive
●● Persona 1: First-time buyer Penny Edwards,
age 27; partner: Ben; location: North
success: National Semiconductor
London; occupation: sales assistant.
National Semiconductor (NSC) supply analogue
●● Persona 2: Part-time mum Jane Lawrence,
and digital microchips that process sounds and
age 37, husband: Joe, location: Manchester;
images for mobiles and DVDs. Target decision
occupation: part-time PR consultant.
makers are design engineers and corporate
●● Persona 3: Single mum Rachel Wilson, age purchasing agents (they don’t buy but they do
40; location: Reading; occupation: business specify what components they recommend at the
analyst. beginning of new product development). This
Personas can have a lot more details (what media influences which components get bought later. The
they like to read, what cars they like to drive, etc). old website gave information about products.
Personas create pictures of the actual people, which The CEO one day challenged everyone and
really helps copy writers to write much more rele- asked a great question: ‘How can the website help
vant content.
598 Part Two | Communications Tools

engineers?’ So a team launched a project to What next? The team went on to ask engineers
develop a deep understanding of engineers, about other activities with which they had difficulty.
including how they work (what their scenarios This revealed thermal simulations and circuitry, so
were). This helped them learn how engineers new scenarios and applications were built for
actually design components, leading them to engineers who design wireless devices. By the end
consider creating online tools (on the website) to of the year NSC had 31,000 visitors on-site,
help engineers to do a better job (and save time). generating approximately 3,000 orders or referrals
They discovered that design engineers were every day. One particular order, from Nokia, was for
under time pressure and realized that NSC could an integrated socket for 40 million units. National
create easy-to-use tools that could speed the Semiconductor are now a part of Texas
design process and save time, so they put a Instruments, but the web-bench facility lives on, on
multifunctional team together (including marketing, the Texas Instruments website.
application designers, web designers and Adapted from Seybold (2001)
engineers). They identified the design engineer’s
work process as follows:
●● create a part; Dynamic design and personalized
●● create a design; websites
●● analyse the design (simulations);
How do you feel when a website addresses you by
your name, and starts to show content that you par-
●● build a prototype. ticularly like? Personalized web pages driven by dy-
namic variables including: name, preferences
NSC then created a web-based tool called
(including shopping), dates, events and locations.
‘web-bench’, which helped engineers to complete
So depending on which country (location) you are
the whole design process without special software. in will determine which landing page you see. Or
When engineers log on, they are prompted to the content on each page contains your name (or
specify overall parameters and key components. perhaps your previous shopping basket if it is a
The web-bench auto-generates possible designs weekly grocery shopping store). Or your digital
and complete technical specs, part lists, prices and body language (your click behaviour) can deter-
cost-benefit analysis. The engineer then refines the mine a dynamic page swap or even a pop-up page
design. Next, the design engineer can run a with a specially relevant tailored offer.‘Remembering
real-time simulation (using sophisticated software names shows respect. Recognizing customers and
that NSC had licensed). their preferences sows the seeds of good relation-
An engineer can then easily alter the design ships and better business’ (Chaffey and Smith,
many times and save iterations in ‘My portfolio’, 2017).
with an email link to colleagues so they can run Personalized sites have been around for a dec-
and save simulations. Once the engineer agrees ade, but soon it will be expected as visitors demand
the final design, the system generates a bill of relevant content. ‘Websites that lack the ability to
materials for the prototype, complete with NSC’s change and respond to users will become ever less
components and all requirements from other successful,’ predicts Sitecore Marketing Director,
manufacturers, with links to distributors and Shawn Cabral.
prices. The next page of content you show your website
The result is that an engineer can do in two
visitor should always be in response to your collec-
tive knowledge of them, and it should move the dia-
hours what previously took months. Not
logue on to building a relationship with that visitor.
surprisingly, design engineers loved it. More than
Use implicit, situational data, such as a web visitor’s
20,000 power supplies were designed in this way in
location, device type, incoming search term or the
the first year of operation.
website they were previously on. If you make it
 20 | Owned Media – Websites and Social Media 599

easier for visitors to find what they need, and make 3 Signposts. There should be signposts to help
sure you display content that is suited to their visitors by telling them where they are within
device, they will stay on your site for longer and the website and what else they might like to
engage more (Hilpern, 2013). see.

Remove content: Why ‘review and remove’ ‘Flow’

are such critical web skills
Excellent websites achieve ‘flow’ as they help the
‘There is often a fear of removal. Review and visitor to complete their task by prompting them to
removal of old and out-of-date content is crucial move to the next page. Ask yourself ‘Where would
for the successful management of large the visitor like to go next?’ and then make sure you
websites. And yet, these critical processes are have signposted and perhaps even incentivized it
lacking in most organizations.’ so that more visitors will move to the desired page.
McGovern (2012)

Remember, not all of your visitors want to buy right

Easy-to-use navigation now. Cater for customers at different stages of the
The overall navigation structure should clearly buying process. Some want to see more informa-
demonstrate how content is grouped and how dif- tion, some want to try a sample, and some want to
ferent pages relate to others. Without a planned buy right now. So ‘see’, ‘try’ and ‘buy’ options can
structure, a site can soon end up as a ‘spaghetti site’. help (see below). These can be presented in different
At worst, this leaves visitors angry and frustrated. formats, particularly when catering for customers
At best, it leaves them dazed, disorientated, con- who prefer to receive information in different for-
fused and frustrated. If there is no natural flow, mats, eg video (demonstration), text (often a PDF
visitors may leave forever. article) or actually speaking to a human (call-back
Navigation requires careful consideration and technology or live chat). Clearly label the different
eventual usability testing. This can be done on paper folders or directories on the site so they act as a
with mock-up screen grabs rather than on a fully reference point for describing particular types of
developed site. Many navigation issues can be spot- content (Chaffey and Smith, 2017).
ted before the site gets fully developed. Here are
three navigation rules from Digital Marketing
eXcellence (Chaffey and Smith, 2017): People see images first
1 Keep it simple. Do not have too many
buttons. Psychologists who have analysed the ‘People see images first, then headers, then the
behaviour of computer users in labs say the body of text. Large images are seen before
magic number is seven (or fewer). Any more smaller images. Warm colours (orange and red)
than seven and the user will find it difficult are seen before colder colours (blue and green).
to choose. You can use nesting or pop-up Images of people are seen before images
menus to avoid the need for too many menus containing objects. The eyes of people who are
or too many menu items. Simplicity is making eye contact are, in a business sense,
necessary to avoid confusing the user. the strongest visual magnet. There are even
2 Be consistent. Consistency is helpful, since stronger images: images of naked people and
you want to avoid users seeing different pictures of a sexual nature are seen earlier. All
menus and page layouts as they move the way at the top, are moving images. Of
around the site. For example, the menu course, not everything that attracts attention is
structures for customer support should be also functional. A moving image on a website
similar to those for browsing product diverts so much attention from the message that
information.
 600 Part Two | Communications Tools

although it can sometimes be functional, it is Can customers easily find and use key
more often a disadvantage than an advantage. content?
The same applies in most cases to images of
naked people. People don’t actually look, or What three things do you want visitors to get from
read, from top to bottom or from left to right. your website? Are they completing these tasks
Visitors are in a hurry, read badly and only have (eg viewing a page; registering for a newsletter;
eyes for what they are looking for. Preferably requesting a quote, etc)? Is it easy to complete
place navigation buttons at the top, company these tasks? Are there any barriers? And how do
logo on the top left (with a link to the you know?
homepage), place call to action and other
buttons on the right. A website can be visited
with the sole purpose of finding the telephone
number or address of the company in question. Engagement
Hyperlinks and control of the screen are Engagement means interaction, whether this is
important items for website visitors. Also a posting a star rating, a like, a comment, a share, a
search box, reviews and feedback and videos chatbot chat or just watching a complete video.
contribute to optimal usability.’ Goals such as sign-up for a newsletter or taking a
Visser et al (2018) trial purchase or repurchase, or just sending a mes-
sage or email via the website also indicate engage-
ment with a website. Return visits to a website
suggest a level of engagement. Marketers want cus-
Design and layout tomers (and prospects) engaging with the website.
Good websites are also carefully designed in terms However, the mere presence of, say, a contact
of both form and function. Form means the way a button on each page is not always enough to trigger
site looks, ie the aesthetics, which includes layout, customer engagement. Ask directly, and ask fre-
graphics, colour and typography. Function is inter- quently, for engagement. This should increase the
action, integration, navigation and structure. level of engagement. CTAs can be placed under
Navigation is a critical aspect, as it determines how every post and on every page.
users can move around a site using menus, hyper-
links and signposts or panels. Two-way websites
Most sites include a general home page, prod-
uct/solutions pages, about us, contact and ­­buy Communication is a two-way process (Chapter 5),
now for primary navigation. And then under, say, and websites should be a two-way experience.
the ‘Solutions’ navigation tab (nav tab), a drop- Visitors should be encouraged to engage in a variety
down menu offers a sub-menu (sub nav-tabs) for, of ways. More engagement means visitors have more
say, different industry sectors. The footer will involvement and control over their own experiences.
have the usual reference to privacy statements, This increases satisfaction and the overall CX.
copyright, disclaimers and sometimes contact Customers can be engaged at any stage of the
details again. buying process. For example: 1) learning: watching
Site structure should be simple, consistent and short videos, animations, simulations, downloading
well signposted in order to create flow. Remember, reports, testimonials, emailing and chatting; 2)
some people are ready to buy right now, others deciding: interactive product selector, callback facil-
want to try it first and others simply want more ity, chat facility, onsite search engines; 3) buying:
information. Telephone numbers and contact details ‘buy now’ button, ‘wish list’ button, lead the cus-
should always be readily accessible. Placing an tomer with a clearly labelled set of numbered steps
order or making an enquiry should never be more to buy, customer feedback/ratings (essential); 4)
than three clicks away. post-purchase: email with link to specific web pages
 20 | Owned Media – Websites and Social Media 601

containing useful information (and videos, eg how This brings visitors back to the site and boosts con-
to assemble/use/clean/maintain, etc), searchable versions (more later).
FAQs, interactive support tools, list of ‘how to’ vid- Now consider our fourth satisfaction factor –
eos and customer feedback (essential). conversion techniques.

The Ladder of Engagement Conversion techniques

Another way of looking at engagement is PR Smith’s
Ladder of Engagement (Smith, 2011). From encour- In the offline world, many salespeople avoid asking
aging visitors and customers to giving ratings and for the sale, or ‘closing the sale’, perhaps because of
reviews to nurturing advocates to collaborating and an unconscious fear of failure or possibly poor
co-creating user-generated content, ideas and prod- training. Whatever the reason, all the hard work of
ucts, this ladder works well for some organizations. finding a prospect, getting an appointment, prepar-
Consider threadless.com, whose visitors send in ing, presenting and handling objections is wasted if
their designs for T-shirts and users then vote for the the salesperson does not ask for the business. The
best designs, which are then printed and sold online. same applies online. Getting traffic to a website is
This UGC is sold back to customers who voted for one thing. Getting conversions is another thing.
it. These customers are highly engaged with the Here are 10 tips to boost conversions:
brand – even co-creating some of its products. This 1 Apply the four basic satisfiers: relevance,
is collaborative co-creation. They have built a solid navigation, fresh content and download
business from this model. speed.
Do remember, however, that not everyone wants
to engage all the time, sometimes visitors (most vis- 2 Develop credibility and reduce customer
itors) just want to complete a task, find some infor- anxiety.
mation or just buy something and leave your site. 3 Use a clear online value proposition (OVP).
So, don’t ignore the basics of properly tested, quick, 4 Have tailored landing pages with OVP
easy-to-use websites and apps (Smith, 2019). tailored to a need (or a key phrase).
If the site content reflects the customers’ inter-
5 Test multiple tailored landing pages.
ests, then the magic marketing formula (identify
needs, reflect them and satisfy them) is activated. 6 Have calls to action (many types of CTAs).

F I G U R E 20.2 PR Smith’s Ladder of Engagement

PRODUCTS

PROCESSES
Collaborative
BRANDS
Co-Creation

ADS

IDEAS

DISCUSSIONS
(and sharing)

REVIEWS Ladder Of
Engagement
RATINGS
 602 Part Two | Communications Tools

7 Include ‘see’, ‘try’ and ‘buy’ options. with many more customers. Use their feedback,
8 Price lining. along with your competitive advantage to improve
your OVP to keep more visitors on your site longer,
9 Simplify processes (remove barriers).
so that more will convert.
Develop a contact strategy (potentially
10 
driven by digital body language).
We will now discuss each of these points in more
Online value proposition
detail.
Be very clear about what is your value proposition.
Can you summarize what customers will get from
Apply the four basic satisfiers your website? Remember, customers can decide
We have discussed these already. Nielsen’s original within seconds (or even less than a second)
four factors, which satisfy customers and bring whether this website is worth staying on and
them back to a website, are relevant content, easy
visiting. Is it clear that what are you offering:
navigation, fresh content and download speed.
●● is different from your competitors;
Develop credibility and reduce ●● makes a difference to your customers’ lives;
customer anxiety ●● is not available offline?
Customers are nervous about giving away their three
currencies: personal data, money and time to some-
one they don’t know, often thousands of miles away.
Customer endorsements, reviews and ratings and a
Relevant landing pages
list of high-profile customers and money-back-­
guarantees reassure people. Membership of profes- When prospects click on a PPC Adword or a hyper-
sional bodies, awards won, standards achieved, link, they expect to land on a page that contains
expertise (books, articles, speeches) and trusted ser- relevant information. They do not expect to land on
vices like VeriSign reassures visitors. Also, a well-­ a home page and have to start searching. Landing
designed, uncluttered site gives a reassuring sense of pages are sometimes temporary pages but should
order amidst a chaotic, cluttered and sometimes look and feel the same as the main site and have the
crazy digital world. Include friendly faces in the same layout (with a few small differences). Reduce
‘about us’ section, contact details (including phone the number of CTAs and buttons; remember that
number) and, ideally, a photograph of a real building landing pages with navigation that is limited to a
with a full address. Typos, broken links, and dead few buttons do better than pages with full naviga-
ends (just one ruins the credibility) ruin everything – tion (Visser et al, 2018). Add a home button or en-
so run regular usability testing. sure there is a link embedded into the logo in the
Reminding customers about money-back guar- top left corner. Again, the UK price comparison
antees and the progress of their dispatch also website, Compare the Market, offers no menu and
reduces customer anxiety. just two choices on its credit card landing page:
‘Compare credit cards’ and ‘Credit card eligibility
check’ (Figure 20.3).
A clear online value proposition Other insurance companies’ landing pages will
You have got a couple of seconds (maximum) to just have ‘home’, ‘calculate premium’ and ‘transfer’
communicate to a visitor why they should stay on on the landing page. The headline on the landing
your site. What is in it for them? What is the value page should be the same as the advertisement (cre-
proposition? Sometimes this is called the online ate separate landing pages for each ad). Have just
value proposition (OVP). Is it clear exactly what one proposition on each landing page. This fulfils
benefits this site delivers? What’s different, or better, the magic marketing formula (IRD): identify needs,
about this site than all of the others? Ask six differ- reflect needs/solutions (to those needs) (on the land-
ent members of staff to summarize what they think ing page) and deliver a reasonable product/service.
your home page offers. Then repeat the exercise We have already discussed dynamic design and
 20 | Owned Media – Websites and Social Media 603

F I G U R E 20.3 Compare the Market credit card landing page with just two CTAs

SOURCE: Courtesy of Compare the Market

personalized web pages (that effectively remember

the customer’s preferences and therefore serve even Create an A/B culture
more relevant content). Some brands build micro-
sites for a particular campaign (rather than just a A/B testing helps to boost conversions. Create an
landing page). Either way, it’s all about relevant A/B testing culture and watch results start to
content. improve.

Test multiple tailored landing pages

Different versions of a landing page can be tested Calls to action
by splitting traffic so that equal amounts of visi-
Whether it is ‘register now’ for an e-newsletter or
tors land on each variation (perhaps of the OVP).
‘buy now’, the CTA should be clear, attractive and
See the American Greeting ecards case on p 630
above the fold, if possible (since people are scrolling
for full details. Basically, three different landing
less and less). Each page should have a crystal clear
pages are tested for each key phrase. The one that
CTA. If someone is on your landing page because
converts more visitors is retained and the other
they want to lose weight, the CTA should not say
two are deleted. This optimizes your tailored land-
‘more’ or ‘click here’ or ‘begin your journey’; it
ing pages.
should be ‘start losing weight now’. Another ­relevant
 604 Part Two | Communications Tools

CTA is ‘you might also like (insert link)’. Decide Simplify processes/usability
what you would like the visitor to do next and then
All form filling should be short and easy. Some mar-
help them to do it with an enticing CTA. Symbols
keters get greedy for data and ask far too many
and icons can help; eg Amazon’s yellow-trimmed
questions early on in the relationship. This is a mis-
(high-visibility), soft cornered (enticing) blue button
take. Generally, visitors do not like having to regis-
(reassuringly safe corporate blue) is almost voluptu-
ter for anything, so if they do have to register make
ous. CTAs can be enhanced by adding an incentive
it easy for them by having only a few questions ini-
to act now, eg early bird discounts, limited stock/
tially. More information can be collected later. If
seats/rooms or even gifts such as reports, videos or
one of the top customer tasks is to download a
insights, or more traditional gifts. Note that some
white paper or register for a newsletter, make it easy
countries do not allow free gifts and incentives. See
for the busy visitor. Make the form short. Do not
Chapter 15 for more on sales promotions.
create barriers with forms.

‘We made the buttons on the screen look so good

Big forms kill customers
you’ll want to lick them.’
Steve Jobs (Schlender and Chen, 2000) ‘Some years ago, HSBC Hong Kong had what
they thought was a reasonably straightforward
mortgage inquiry form. It had 17 fields
requesting: property information (address,
‘See’, ‘try’ and ‘buy’ options price); applicant information (name,
In the same way that an offline retail clothes store occupation); loan information (amount,
tries to let customers see its best clothes and then repayment period, etc).
encourages customers to come into the store and try They were getting two enquiries a week
them on in the hope of making a sale, websites can through the form. They felt that they could do
also accommodate the three stages of ‘see it’, ‘try it’ better. They turned to Brett King, a well-known
and ‘buy it’. A key point to remember here is that innovator in the industry (see his book Bank 2.0).
some visitors have found exactly what they want Brett and his team convinced them to radically
and are ready to buy right now, while other visitors simplify the form.
want to trial it, and others again are interested but They reduced the number of fields from 17 to
want to see more information about the product 3: name, email and phone number. The
first. The site should accommodate all three types of simplification process met some resistance.
visitor by offering all three options to help them People said that the old form gathered data that
along their buying journey.
integrated well into the internal system. People
felt that the new form would encourage
Price lining frivolous enquiries from the likes of Donald Duck
Price lining effectively means having a range of and Arnold Schwarzenegger.
prices so that anyone with any budget can always They finally launched the new form. There was
buy something, even if it is a sample unit or a small no publicity or special promotion, so the basic
version. A range of sizes allows for a range of price number of visitors to the mortgage pages
points, which guarantees that anyone with any remained the same. However, enquiries jumped
budget can at least be in a position to buy some- from two per week to 180 per week. And yes, they
thing. Not having enough money is no longer a did indeed get mortgage requests from Arnie.
barrier. Price lining takes away the pricing barrier. Despite such frivolous enquiries, new mortgage
A variation of this theme of having something for business directly connected with the new, simpler
every budget is rental or leasing; some organiza- online form reached $20 million in the first quarter
tions partner with leasing companies that effec- after its release. With the old form they were
tively give the customer a choice of paying a large doing less than $1 million a quarter.’
capital sum or paying a smaller weekly or monthly
McGovern (2010a)
amount.
 20 | Owned Media – Websites and Social Media 605

The ultimate way to check to see if the website is Develop a contact strategy
easy to use is to carry out usability testing. Here,
Visitors can still be converted into customers even
customers matching the target market profile are
after leaving the website without buying by fol-
given sets of tasks to complete.
lowing them up with (a) remarketing campaigns
(targeting ads at visitors as they move around the
web) or (b) if the prospect’s email was collected, a
simple follow-up contact strategy. See Tesco’s sim-
Tesco’s usability tests focus on tiny details, ple email contact strategies for customers at differ-
integrating offline and online ent stages in the buying process in Chapter 3.
There is a different sequence of contacts depend-
‘“Little tiny things make a big difference to the ing on whether customers registered for an email
customer experience, and Tesco is unbelievably newsletter, made an enquiry, took a trial or actu-
good at creating that differentiation”, says ally made a ­purchase.
Catriona Campbell, Director at Foviance. When Digital body language can trigger the appropri-
Tesco was developing Tesco Direct, Foviance ate dynamic page swap pop-up message, eg three
was tasked with getting real customers to test visits online could trigger an alert to a sales rep
the site. (with the relevant prospect data) followed by a
“We used eye-tracking, so we literally courtesy sales call to see if the prospect needs any
tracked where their eyes were going on the help. Alternatively, certain click behaviour can trig-
catalogue and on the web, and we could see ger a ‘nurturing campaign’ that combines direct
that some of the creative in the catalogue mail (snail mail) and email to strengthen the brand’s
wasn’t transferring to the web,” she says. The proposition.
usability innovations that came out of the Visitors’ digital body language (click behaviour)
research were not huge, but they made a big
is logged so that marketers know what level of
interest any particular (anonymous) visitor has, so
difference.
that sales and marketing people know which buyers
“It was things like putting the catalogue
are actively engaged in a buying process and which
page number into the website, so you could
are not. They identify a quality lead, where the lead
search for something you had seen in the
is in the buying cycle and when to bring a salesper-
catalogue. Customers also wanted to see the son into a deal and when not to. If digital body lan-
Tesco Value ‘stickers’ throughout the website guage is objectively scored and suddenly changes,
and the catalogue as well, the way they do in this can indicate that the prospect has moved to a
store. It doesn’t make it easier to read, but they different phase in the buying process.
just wanted to see that big red splodge.” Excellent contact strategies vary according to the
The point, says Campbell, is that true prospects’ preferences in media type, frequency and
usability depends less on creative ideas that style
spring from nowhere than it does on asking the Some prospects want information via RSS feeds
audience. “A lot of the things that came out of into their RSS readers; others prefer email, direct
the research you couldn’t have come up with in mail, podcasts, trade shows or industry analyst
isolation,” she says. “The creative had to go reports. Some want quarterly, monthly or weekly
hand in hand with research into real-life contact. More engaged customers tend to be more
situations, and the beauty is in combining the comfortable with increased frequency of contact.
skills of researchers with those of the designers The prospects’ progression through the sales cycle
to get that creative idea out that really makes a can be identified by profiling both the communica-
difference. Little tiny things make a big tion frequency and any responses. If open rates start
difference to the customer experience, and dropping, prospects are either under time pressure or
Tesco is unbelievably good at creating that losing interest and therefore it may be worth recon-
differentiation”.’ sidering the contact strategy for them. Again, all this
can be managed by a set of rules that trigger various
Woods (2007)
contact strategies and particular propositions and
 606 Part Two | Communications Tools

offers. Some prospects prefer rich graphical commu- expensive human-to-human, face-to-face
nication, while others just want the basic informa- relationships:
tion in a text or email.
● customer calls to a US call centre cost $7.50;
Convert customers to lifetime ● customer calls to an overseas agent cost $2.35;
customers ● automating the call/interactive voice
The second visit to a website is the beginning of a response system costs $0.32.
relationship. Today, marketers ask themselves
whether they are giving customers enough reasons “Our analysis suggests that migrating custom-
to come back and visit the site for a second time. It ers from channels they prefer to use to
is a great question. Honest answers will improve the channels they don’t, may lower their engage-
website. On the assumption that the site works and ment with their bank” (Gallup 2013 study of
customers have bought once, how do marketers banking customers). A 2013 study by Accenture
convert those same customers into lifetime custom- estimated “that the ‘Switching Economy’ puts
ers? How do marketers keep the relationship alive? up to $5.9 trillion of revenue up for grabs for
Answer: the same way anyone keeps a relationship companies globally.” So, organizations are
alive and well – by listening to them, understanding saving on their relationship costs with custom-
their needs, speaking to them regularly, always giv- ers but in the process are making customers
ing them good value (never breaking the promise) less loyal and more likely to switch.’
and occasionally giving them a nice surprise. What
does that mean? It means marketers must deliver McGovern (2015)
the quality the brand promises, have a contact strat-
egy, respond to the customers – their questions, que-
ries, worries, complaints or suggestions – and Do not let bland, soulless contact strategies occur in
reward them occasionally. Part of the contact strat- your business. Converting customers into lifetime
egy includes acknowledging the order, confirming customers is critical in the long term. Look at exit
delivery dates, and following up with a satisfaction points in your analytics to see what is reducing your
survey, a request for a recommendation or a review. conversion rate. Equally, look at the journeys of
Ongoing tailored special offers and reminders, if your highest converting customers. Now let us con-
they are timely and considered useful or helpful, sider successful social media: the key success factors
should keep the relationship alive. and the classic errors to avoid.

Tech efficiency replaces loyalty with a

switching economy? Successful social media
‘This is the age of customer engagement, Chapter 15 (content marketing) specifically includes
experience, relationships and loyalty. There is several social media campaigns that involve collab-
an impression that these things matter when, in orative co-creation. This is exciting UGC and is at
fact, they don’t. Loyalty for most organizations is the top level of the Ladder of Engagement. We will
a one-way street. The customer is expected to now explore how to integrate social media into
be loyal to the brand. The idea of loyalty to the business systems and after that, how to optimize
customer is not even considered... 66 per cent your social media (SMO).
of marketers surveyed believed that loyalty
programmes are for consumers to show loyalty
to brands... relationships take time and effort... 10 steps to integrate social media
loyalty and caring are powerful human emotions into the business
but brands seem to want to get them on the
Here are ten steps towards integrating social media
cheap... Technology has been used to replace
into business processes so that it becomes a normal
 20 | Owned Media – Websites and Social Media 607

process required to run a business (Brian Solis, slide shows or videos. The guidelines can
2010): also include tone of voice, use of logos and
straplines.
1 Listen. Staff members are allocated certain
groups and communities. They search for the 7 Grow the community. Establishing a blog, a
use of certain brands, people and key phrases Facebook page, a LinkedIn group or any
and use listening tools such as Google Alerts, online profile with great content is not
Talkwalker, Twitter Search, Radian6, and enough. You need great questions to spark
GaggleAMP in addition to monitoring their discussions. You need members/fans,
own allocated communities. Log hot topics advocates and influencers engaging with each
and listen for heated topics packed with other also. You and your team need to
emotion that could go viral. engage too.
2 Create a presence. Create a presence on the Socialization of the team. Staff have got to
8 
usual social networks. This is not strategic get used to the sharing and collaborating
engagement, just experimental at this stage. potential of social media. The listening and
conversing stages are only as effective as
3 Join the conversation. Take the plunge, join
their ability to inspire transformation.
some relevant conversations, add some value/
Interdepartmental cooperation (sharing) is
some useful information. You can also
required. All staff are brand ambassadors
announce activities, events and competitions
and members of the social team. Any
on your own pages or tweets. If in another
external-facing department will have to be
community’s discussion, add these
socially mobilized. Internal social champions
announcements to the conversation only if
must be identified and encouraged to
they are relevant and useful.
collaborate.
4 Identify communities, burning issues and
Socialization of business processes and
9 
opinion formers. Observing where the really
workflow. Monitoring discussions,
significant conversations are, the types of
discovering great resources, participating
responses and the language that is used can
in conversations, blogging and encouraging
reveal burning issues, pain points, new ideas
UGC all require staff time and also
and a lot more valuable intelligence.
processes that ensure conversations are
Businesses do not have to be everywhere to
fulfilled and intelligence is collected,
create a presence, but they do have to be
stored and used to make better decisions
where relevant conversations are occurring
and ultimately run a better organization.
with significant audiences or influencers.
New workflows require the
5 Content strategy. As the needs of relevant reorganization of teams and processes.
communities and opinion formers emerge, an Organizations will have to manage the
organization can begin to define what kind social workflow.
of content, questions, challenges and
Measure and report. Marketers must
10 
collaborative co-creation it would be good to
evaluate the value of social media marketing
feed into these communities. This is the shift
(as well as all aspects of marketing) and
from ad hoc communications to a more
present this to the board. For each social
carefully planned communications agenda.
media tool, it is possible to quantify and
See Chapter 15, p 449.
compare cost per thousand reached, cost
6 Social media guidelines. These guidelines per enquiry, cost per order, cost per
spell out the desired positioning of the brand, customer acquired and ROI (as well as
key phrases with which the brand wants to return on ad spend and return on social
be associated, typical hot issues in which the media spend). The difficult bit is measuring
organization has expertise, and possible links the impact of social media on the brand
to some of the brand’s own popular pages, value, which can now be included as an
specific landing pages, articles, PowerPoint asset on the balance sheet.
 608 Part Two | Communications Tools

for the long haul are far more likely to give

Employee advocacy up. That’s not a good thing because social
media is a party and the other partygoers
Don’t forget to mobilize one of your key social (your customers, competitors, etc) are likely
media assets – your staff. Employee advocacy to notice if you pass out.
(EA) programmes enable your staff to easily 4 Not training employees. Social media may
share company content among their own look easy, but it really isn’t. How your
networks – thereby strengthening their position/ employees behave can have a big impact on
establishing them in certain networks and your company’s social media reputation. For
simultaneously expanding the reach. EA helps to companies that are actively involved with
refocus the passions of employees on your social media, setting expectations and
marketing content, translating their enthusiasm creating policies for employees is the best
into better campaign results. A good EA way to ensure that they help your reputation,
programme energizes your team to get started not hurt it.
with social engagement. Staff are trained and 5 Letting the new kid or a low-level employee
rewarded for sharing because every action earns manage your profiles. Who should be in
points which earn rewards, and also using a charge of your social media endeavours? The
leaderboard to encourage staff introduces a form young employee who joined Facebook back
of gamification. in 2004 and who has 5,000 followers on
Twitter might seem like a good choice, but
chances are he or she isn’t. Your social media
presence is far too valuable to leave in the
hands of somebody who is new,
10 common social media mistakes inexperienced, lacks detailed knowledge about
Here are 10 common social media mistakes high- the company or isn’t heavily invested in the
lighted by Econsultancy’s Patricia Robles. Although company’s success. Putting it in the hands of
she wrote it approximately ten years ago (2010) it anyone else can quickly lead to disaster.
still proves a useful list of social media mistakes to 6 Pretending that social media is free. Signing
avoid today: up for a Twitter account and Facebook page,
1 Over-following. Social media is called ‘social’ for instance, may not cost any money, but
media for a reason, but there’s nothing managing them (and managing them well)
‘social’ about following an ungodly number doesn’t magically happen without an
of users, especially in a short amount of time. investment that can be quantified in dollars
Success with social media is just like and cents. Social media will always require
marketing, sales and PR: results are achieved somebody’s time and may require that
one victory at a time. certain corporate resources be allocated
differently. Businesses can’t ignore these
2 Using every tool available. Getting social costs when planning their social media
media ‘right’ is harder than it looks. One of strategies and evaluating what they’re
the things that’s required: focus. But it’s hard delivering.
to focus when you try to build a presence on
every popular social media platform. Which 7 Publishing first, thinking later. In the world
is why companies should resist the urge to of social media, everything you say can and
get involved with all the new shiny toys and will be held against you. Unfortunately, the
instead focus on the social media platforms real-time nature of many social media
that are most likely to be a good fit. websites encourages a ‘publish first, think
later’ dynamic. Companies have far too
3 Falling off the wagon. A social media effort is much to lose, however, and need to ensure
easy to start, but it can be a challenge to keep that what’s being published is accurate,
going. In short, social media is a journey, not honest and in line with the company’s values.
a destination. Businesses that aren’t prepared Sometimes, it’s better not to publish.
 20 | Owned Media – Websites and Social Media 609

8 Ignoring metrics. When it comes to social tactical tools discussed earlier in this book (ads,
media, companies need to be comfortable sponsorship, packaging, etc) can also generate visi-
experimenting. But experimentation doesn’t tor traffic. Here are 10 SEO tips.
mean that companies shouldn’t define the
metrics by which progress and success can
be measured. Measurement is just as 10 SEO tips
important with social media as it is with any
other business effort. 1 Develop a list of key phrases.
9 Assuming ROI isn’t possible to calculate. 2 Write content that answers questions that
The three letters R-O-I often make social people might ask.
media proponents cringe and social media 3 Include key phrases (and related phrases) in
sceptics grin. Many companies buy into the each topic-specific page and, in particular, in
notion that social media is really, really the title, headlines (H1, H2, H3 and H4)
important, but a lot of them also buy into bold text, initial words in a sentence and in a
the notion that its value can’t reasonably be paragraph. Note that it is better to use key
calculated in terms of ROI. That’s a mistake phrases in a headline than a sophisticated
because for all of social media’s virtues, any alliteration or intriguing words.
effort made by a business eventually has to
4 Insert key phrases in the tags: alt tags for
produce tangible value that can be
visuals, title tags for the top of each page and
correlated to the bottom line.
meta-tag descriptions (the snippets or
Expecting the world. Social media can do
10  summaries of a page shown in some search
many great things for businesses, but it has engine results pages/SERPs).
its limitations. For instance, it isn’t
5 Insert key phrases in urls and ‘anchor text’
necessarily going to drive sales, increase
(instead of ‘more’, use key phrases in a link).
brand loyalty or create buzz – especially
overnight. Getting the most out of social 6 Develop inbound links ideally from
media requires healthy, not unrealistic, venerable institutions (inbound links are like
expectations. a vote of confidence, particularly if coming
from a venerable institution). Quality links
Of course content created for social media can be have the most impact and generate traffic on
used in many other channels, in fact across all 11 their own, and also push you up the Google
marcomms tactical tools (10 if you don’t consider rankings.
earned media/CRM/word-of-mouth to be a channel
7 Use internal links (link your own pages with
itself), if you plan it right. Chapter 15, content mar-
each other, ie make related content easy to
keting, explores how to get the content right. Here
find).
are a few approaches to using social media to boost
a business’s results. 8 Add a site map to the footer.
9 Nurture relations with opinion formers/
influencers/bloggers.
10 Ensure fast download speed (optimize
SEO content including photos and video).
Great websites (and social media platforms) fail if
they have no traffic or if they have poor quality traf- SEO for voice search
fic that does not convert into followers, advocates,
enquirers and eventually customers. Search engine Voice search queries (with Alexa or Siri) are longer
optimization (SEO) generates traffic by making than the traditional keyword search. Searches like
your websites and social media platforms more eas- ‘best digital camera’ will start to disappear. Very
ily findable by search engines. So, when people specific searches will be more popular, eg ‘Alexa,
search for a particular item or topic, your website where can I find a waterproof video camera that
or social media platform is found. All of the other works with Facebook Live?’ Write short answers to
 610 Part Two | Communications Tools

the questions that voice searchers are asking. ‘This questions raised in the reader’s mind. The fact
also increases your chances of appearing in a of the matter is, if you don’t know what your
Google’s Featured Snippet’ (Bonelli, 2017). We are readers’ questions are, you cannot write. Get rid
using more natural language and longer queries of anything that is not an answer to questions that
when voice searching. Queries can be three to five your readers may ask.
(or more) keywords long. These ‘long-tail’ key- Visser et al (2018)
words are very, very specific to whatever you are
selling, or more to the point, specific to what search-
ers are searching for. Include trigger words like Key phrases
who, how, what, where, best, where, why and when.
Use these words in your content (on your pages). A key phrase list is an inventory of words and
Natural language queries such as ‘what is a tasty phrases that the target market would use when
Italian restaurant in midtown Manhattan?’ will be searching for an organization’s product or service,
more popular than the old-style search for ‘Italian or searching for topics, information or just videos.
restaurant’. ‘Search engines are becoming adept at This requires empathy – the ability to think like
understanding intent (ie not “what did they type?” your customers and list the words and phrases cus-
Nor “what did they say?” but rather, “what do they tomers would use. Web analytics show which words
want?”’ (Visser et al, 2018). The plus in ‘long-tail+’ bring the most traffic. Marketers also watch com-
refers to the conversational phrases that must be in- petitor sites to see what words and phrases they use.
cluded when optimizing for the more ‘conversa- Spyfu.com can tell you what key phrases work best
tional’ voice search. for your competitors when using PPC ads. The sales
teams ask customers what phrases they use when
searching. Customer service teams note what
phrases and questions customers use. And the mar-
Questions first, website content second keters use tools to generate keywords and compare
popular ones with the same phrases used on other
It is worth documenting and recording the exact websites.
questions and words customers use when they talk
to both your customer service representatives and
your sales people. Once you have a list of natural- Commercial phrases vs informational
sounding questions and statements that customers phrases
ask (even over the phone), you can then start
creating content pages that focus on those longer,
‘According to Brian Dean, the #1 keyword
more conversational questions (which now are also
research mistake is not spending enough time
‘search terms’). Use conversational language –
on commercial keywords. That’s because
write as if you are talking to a friend face-to-face.
commercial keywords are the ones that make
As voice search grows, this will become more
money. To improve your rankings and make
important.
money, you need to understand the difference
between commercial and informational
keywords. If all your keywords are
Optimizing = empathizing and informational, you will still generate organic
traffic, but converting those visitors to buyers
eliminating may be difficult. The reason is because visitors
Optimizing web page text: who search for informational keywords are not
is mainly a matter of empathizing and eliminating. in a buying mood. They want you to speak their
Empathizing is the most difficult. Eliminating language – the language of free, eg: how to
often meets with internal resistance. If web text clear acne with home products; how to install
begins with a promise, an offer or an advantage, Wordpress; make money online for free; free
it immediately raises questions from the reader. ebook download; top 10 free article spinners.
A good web text is limited to the answers to
 20 | Owned Media – Websites and Social Media 611

●● A brand new business, LOVI, was grown out

In contrast, people who use commercial of social media usage and clever influencer
keywords like: best acne products; top 10 web marketing to steadily nurture a new luxury
hosting providers; web designers in NY, are fashion business in Sri Lanka.
probably searching for a solution they can buy. ●● The New York Giants use social media to
If you’re in the e-commerce industry, you will add value to the fan experience (FX).
recognize commercial keywords tend to convert ●● Owned media helped a Brazilian football
well. Keywords that have these words as a prefix club to wipe out hospital waiting lists for
(before) or suffix (after) to the rest of the keyword organ donors by using the stadium banner
phrase, tend to do well: buy; review; purchase; space, the club’s match-day programmes,
discount; coupon; deal; shipping; order.’ Facebook, a YouTube video and its own
Patel (2014) website.
●● A microsite was created to support the Brian
Clough film The Damned United.
Now explore our case studies. ●● American Greetings e-cards optimized its
●● Social media content seeded cross-industry landing pages.
influencers to improve sales for adventure ●● And finally, social media was used to stop
company Zip World. young people smoking.

C A S E S T U DY Social media content seeded cross industry influencers: Zip World

Situation ●● Phase 1 targeted a number of influential arts and culture

writers and creative design blogs (social media) to seed
Adventure company Zip World created a stunning subter-
the pictures of this stunning underground playground.
ranean playground caving adventure for both adults and
children called Bounce Below. ●● Phase 2 targeted the mainstream media and shared
content for ‘adrenalin junkies’ with a wide selection of
influencers such as Thrillist, Unilad, Ladbible and Viral
Objectives
Thread.
Grow sales of tickets for Bounce Below and boost the tour-
ism economy of northern Welsh town Blaenau Ffestiniog. Tactics
Create some ‘wow’ content (mostly photos and some short
Strategy
videos) and target some influencers outside of the tourism
Weber Shandwick helped Zip World develop a two-phased and leisure sector and more in the design sector. With an
marketing communications strategy: initial budget of just £2,500 and an amateur photographer,
 612 Part Two | Communications Tools

F I G U R E 20.4 Bounce Below, a subterranean playground in the heart of Wales

Zip World’s Bounce Below wanted to showcase to the experience by taking photos and videos and writing re-
world the three-story underground trampoline cavern that views.
is twice the size of St Paul’s Cathedral in London. Another major influencer, George Takei (Star Trek actor),
Celebrity blogger Perez Hilton used the photographs with shared a 30 second video clip (see Figure 20.7) which helped
the line: ‘You win Wales. You win. The title of the “Most Fun to generate four million views. The Bounce Below website
Place in the World” is all yours.’ crashed! But within 24 hours it was back up again (this time
Some videos that went viral had an immediate impact, supported by several extra servers). Zip World also immedi-
increasing daily website visitors from 6,000 to 33,000. This ately increased their customer service telephone sales
had an immediate knock-on effect on ticket sales. team to cope with the increased number of telephone en-
quiries.
Actions
Control
Internal marketing includes staff training, crystal clear in-
ternal communications and motivation. Staff are highly The initial £2,500 campaign secured £72,000 worth of pre-
motivated already and proud of this innovative concept. booked tickets within a week, with 4,500 daily hits on the
They are trained to encourage all visitors to share their website during the campaign period and widespread cov-
erage in the international media.
 20 | Owned Media – Websites and Social Media 613

F I G U R E 20.5 Bounce Below’s nets are connected by stairways, net walkways and slides

Actual customer visits to Zip World were 327,000 for the 220k contacts), developing fresh marketing content,
year (up by 54 per cent on the previous year), which gener- updating the website (which had 3.6m sessions from 2m
ated revenues of over £11 million (56 per cent increase year unique visitors) and social media platforms, sowing
on year), which in turn delivered a healthy EBITDA (profit) seeds with influencers and, most of all, ensuring
of £3.7 million (up by 56 per cent on the previous year). customers enjoy their experience so much so that they
Zip World has succeeded in every criteria, including the share their customer experiences with their own
original promise to boost tourism in the Northern Welsh personal networks.
mining town of Blaenau Ffestiniog – ‘the town that roofed ●● Money: Budgets were tiny at the start – just £2,500 for
the world’. photography and video and advice.
●● Minutes: A busy year!
3Ms
Note: SOSTAC® is an agile planning system. This period’s
●● Men and women (staff): At the time of writing, there results will become part of the next plan’s ‘situation analy-
were three marketing communications staff, sending sis’, which in turn influences the next set of objectives. A
around 4 emails a month (not including pre-arrival and really good in-depth situation analysis also helps develop
booking confirmation emails, working with approximately the next period’s strategy.
 614 Part Two | Communications Tools

F I G U R E 20.6  Bounce Below is made up of six enclosed bouncy nets, with a huge
bouncy net spiral going from the bottom to the top

In the case of Zip World, the company’s strategy for the ●● Expand to new locations.
next period’s plan is: ●● Nurture a secondary spend (ie share of wallet) for
●● Constantly improve the customer experience and customers – food, merchandise including
invest £4.7 million in fixed assets. photography.
 20 | Owned Media – Websites and Social Media 615

F I G U R E 20.7 This video went viral

 616 Part Two | Communications Tools

C A S E S T U DY Social media launches luxury fashion brand LOVI Ceylon

Situation Trends
LOVI was founded in 2015 by Asanka de Mel, to leverage The civil war in Sri Lanka ended nine years ago. Peace and
Sri Lanka’s aesthetics and design into a premium and ele- pride are returning. People (locals and tourists) love the
gant line of apparel that excites fashion-conscious men ancient history, culture and sheer beauty of Sri Lanka.
and women around the world. There is a gap in the market for uniquely styled high-quality

F I G U R E 20.8 LOVI’s Unity collection

 20 | Owned Media – Websites and Social Media 617

fashion. Sri Lankan communities all desire peace and unity. Customer insights
LOVI even have one collection called ‘Unity’.
Instagram, Facebook and Shopify (website data) give com-
Technology/social media has spread everywhere. People
prehensive analysis as to the best performing posts, timing
tend to communicate via social media platforms because it
of most likes, number of impressions, demographics of fol-
is convenient for them. LOVI receives daily enquiries via
lowers, etc. The Instagram Insights (see below) suggest
Instagram and Facebook. Enquiries are growing and are di-
the initial demographic profile for the current primary tar-
rected to the website www.lovisarongs.com and to one
get market is 18- to 34-year-olds in Colombo. More layers of
of the new distributor stores.

F I G U R E 20.9 Instagram insights/analytics

 618 Part Two | Communications Tools

data will be added, including income level/job type, loca- Strategy

tion (residential type), hobbies and interests as well as ‘re-
LOVI is positioned as an exciting and elegant new interna-
sponse to remarketing’.
tional fashion style targeting the confident fashion and
Initial customer research shows the ideal target custom-
style loving maverick in firstly, Sri Lanka and secondly,
ers are confident, wealthy, fashion loving 18- to 34-year-
overseas. Delivering a premium and elegant line of apparel
olds, males and females: firstly in Sri Lanka; secondly, over-
that excites this ‘fashion-hungry’ global market, targeting
seas where Sri Lankans have settled and succeeded; and
confident males and females that share a passion for ex-
thirdly, in the UK, EU and USA.
ploring and adventure – eg have the confidence to get on
stage at a rock concert. Not afraid to try something new.
Competition
Not encumbered but empowered by tradition.
There is plenty of competition in Sri Lanka. There are many As stated above, the ideal target customers are confi-
low- to high-end products competing with LOVI including: dent, wealthy, fashion loving 18- to 34-year-olds, males and
small-scale retailers, Indian imports and local handloom females: firstly in Sri Lanka; secondly, overseas where Sri
sarongs (at the low end) and two major direct competitors: Lankans have settled and succeeded; and thirdly, fashion-
Barefoot and Hameedia (at the high end). LOVI is posi- conscious confident Asians overseas in soon to be selected
tioned as a fashion statement, as a go-to occasion wear. specific cities.
There are few emerging competitors in this space.
The ideal customer
Objectives Confident, wealthy people who like to shake things up…
Mission the ones who want to look completely different at a wed-
ding (where everyone is wearing suits). The core age
LOVI brings beauty and a maverick confidence to the world
range is 18–34 years, primarily Sri Lankan, followed by a
of fashion and style lovers through a unique international
wide spread of multicultural communities and other nation-
luxury fashion brand from Sri Lanka.
alities that love wearing LOVI. For example, recently there
was a wedding in San Francisco, a Jewish wedding be-
Vision tween an Indian groom and an American bride. The groom
Build a global clothing brand based on the finest sarongs in wore a LOVI sarong and a shirt (Figure 20.10).
the world while respecting the environment and the dignity
of the people who make them. The style
LOVI brings stylish Ceylonese clothing back to the fashion
LOVI, inspired by ‘love’ and Ceylonese tradition, brings to
scene to recreate an identity for Sri Lankan clothing, inspired
life a creative and innovative twist for an internationally
by kings and queens and the ancient history of Sri Lanka.
minded fashion consumer. Blending high-quality crafts-
Sarongs have been worn for centuries; it’s a traditional gar-
manship, materials, and design, LOVI breaks the mould of
ment. LOVI is shaking things up. Interest is growing and con-
the traditional sarong. LOVI is mindful of human and envi-
tinues to grow, as can be seen by the figures in Table 20.1.
ronmental responsibilities.

TA B L E 20.1 Interest in the LOVI brand is growing

2019 2020 2021 2022 2023 2025

Facebook followers 30,055 35,000 40,000 50,000 60,000 75,000

Instagram followers 11,444 15,000 25,000 50,000 75,000 100,000

Website unique visitors 27, 858 45,000 100,000 250,000 400,000 550,000

Email list size 14,980 40,000 60,000 80,000 100,000 150,000

 20 | Owned Media – Websites and Social Media 619

F I G U R E 20.10  A Jewish wedding of an Indian groom (wearing LOVI) and an American
bride in San Francisco

The communications strategy ●● With a lot of division in the country, the concept
‘together as one’ is needed in Sri Lanka more than ever.
The strategy is driven by social media, primarily with
Instagram and Facebook and supported by influencer mar- ●● Environmentally, we only use polyester-free materials.
keting and PR. We try to stick to biodegradable materials as much as
Stage 1 is to establish credibility and build a sustainable/ possible – 100 per cent cotton and handloom materials.
viable business. At this point only our buttons and belt anglet are metal.
Stage 2 is to maintain the domestic market, introduce ●● The lovi fruit is a berry-sized plum that grows in
­remarketing and grow the franchise overseas. bunches like cherries do. The beautiful bright red lovi
Social media increases the reach. A manual follow- grows in Sri Lanka (and much of tropical Asia) and
through contact strategy is designed to convert visitors to yields many healthful properties. ‘LOVI sounds like
enquirers, enquirers to first-time buyers and buyers to life- love, doesn’t it? We like that,’ says Asanka, the
time repeat buyers. LOVI also identifies advocates, particu- founder.
larly those who are influencers, and nurtures relations with
these opinion-formers. Tactics

LOVI’s social responsibilities Product

Create new international fashion sarongs that define a
LOVI’s social commitment:
modern Sri Lankan clothing identity. Create beautiful
●● When it comes to the local market, we want to try and clothes that people feel loved in, while respecting the envi-
bring everybody together. ronment and the dignity of the people who make them.
●● We truly believe that fashion could bring people Using impeccable craftsmanship and the finest fabrics,
together. In fact, we have one collection called Unity. LOVI brings authenticity and innovation to sarongs, for all
ages and genders. While hinting at Ceylon’s aesthetics,
●● We will continue to bring collections to life inspired by
LOVI crystallizes the modern Sri Lankan identity.
ancient Ceylonese aesthetics.
 620 Part Two | Communications Tools

Distribution timed to coincide, where possible, with events like the

Colombo’s Fashion Week.
Online shopping (via the website) and 11 retail partners, of
In addition to Instagram and Facebook, LOVI is planning
whom eight are fashion retailers in Colombo and Kandy.
to activate Twitter and YouTube. Images of costumes are
Three are hotel shops in Galle, Southern Sri Lanka. The
posted three or four times a week, while stories are shared
clothes are dispatched centrally from the distribution cen-
almost every day.
tre. Returns: is this an issue? How do you deal with returns?
What percentage of orders are returned?
Stories on Instagram

Communications Very recently, one lady took a 200km train trip all the way
from Anuradhapura just to buy a LOVI and gift it to her boy-
Social media friend, who was leaving Sri Lanka the next day. We man-
Each new collection, uses different models showing differ- aged to have it ready by the time she arrived in Colombo
ent looks from the collection. Social media tactics are after 9pm. Her boyfriend is a die-hard LOVI fan.

F I G U R E 20.11 Instagram generates business for LOVI

 20 | Owned Media – Websites and Social Media 621

F I G U R E 20.12 Stories: A secret train Social media and PR/general media coverage and word-
of-mouth from the many brand ambassadors are the pri-
trip secures a LOVI for her loved one mary promotional channels. LOVI generally do not sponsor
posts or boost posts, but occasionally sponsor a post if it is
particularly important, like announcing a new retail partner
or a new collection.
Remarketing is being planned to execute in Q3 (creating
anonymous lists of your customers and then serving them
ads when they are online), to bring the customer back to the
website. In addition, an email can be sent to anyone who
abandons their shopping cart (if they have registered with
LOVI).

Influencer marketing
Approximately 15 influencers (including Tatyana Lee Jay,
Tayden Aaditya and Danu Innasithamby) extend LOVI’s
reach to almost half a million people. Influencers do not get
paid. They sometimes get clothes and sometimes LOVI loan
clothes for professional attire to people who represent Sri
Lanka at international events, eg tourism, human rights,
etc.

Actions
All LOVI teams work on a project management plan. Every
Monday, the LOVI team discuss each department’s and
each person’s tasks and deadlines. The team discuss and
get an update so everyone knows what is going on. Usually
the CEO or CCO (chief commercial officer) heads the meet-
Sharing social media content ing. After going through the tasks, the team discuss any
further issues, clarifications, share ideas and solutions,
Sharing the social media content is really important. LOVI etc.
staff all work hard and ask all customers to tag @LOVIsarongs
when they wear a LOVI and also to add the #LOVI hashtag to
Control
all posts. All staff are trained to ask customers to do so.
Other hashtags are also used, depending on the occa- Customer reviews are taken very seriously. All staff are
sion, including: I #LOVICeylon #LOVISarongs #lovedinLOVI trained to ask customers to post a review or at least a rat-
#RISE #SS19 #CFW #2019 #royalty #srilanka #srilankan ing. LOVI also use a project management task report
#fashiondesigner #sarongs #redcarpet #luxurybrands #sa- weekly.
rongculture. Searches for ideas, images, photos and posts Shopify is a user-friendly analytics platform. LOVI staff
about these topics, eg #sarongculture, should find LOVI. access detailed reports showing daily and monthly data,
 622 Part Two | Communications Tools

F I G U R E 20.13 Search engine results page (SERP) lists LOVI prominently

 20 | Owned Media – Websites and Social Media 623

F I G U R E 20.14 New collections announced on Instagram

F I G U R E 20.1 5 Influencer Danu Innasithamby

 624 Part Two | Communications Tools

F I G U R E 20.16 The LOVI emblem is inspired by the crown of the last king of Sri Lanka,
King Sri Wickrama Rajasignhe. The crown is surrounded by bold, beautiful symbols: traditional
‘liyavel’ foliage, a protective arch, and courageous arms. For the wearer, the insignia declares
Sri Lankan nobility – not one marked by status, class, or religion, but by a fundamental belief
in unity, self-confidence, and personal style

which can be compared to previous data such as sales, LOVI is an agile business, listening to customers,
­orders, best-selling products, visitors country-wise, city- watching the numbers, changing the collections, and most
wise, etc. of all creating beautiful fashion styles that raise eyebrows
everywhere.
 20 | Owned Media – Websites and Social Media 625

C A S E S T U DY Integrated social media: New York Giants

F I G U R E 20.17 The New York Giants integrate social media

May August
FAN TICKET CONTEST TWITTER FEEDS IN BROADCAST/IN-STADIUM
Ask fans to state why they were the biggest Giants fan. NYG integrate live tweets in the broadcast commentary
All stories narrowed down to 20 finalists. Giants then during Giants preseason games. First team in
let the fans decide (vote) what they considered the best professional sports to submit tweets using #NYGBCA
story. 10 winners were each featured on this year’s game which appeared on all of our stadium distribution
tickets. Total views of Facebook Tab: 238k. Total shares channels. Giants fans loved the fact that NYG allowed
within Tab: 161k. fans to share with NYG how much the people they loved
also loved the Giants.

September October
9/11 ONLINE TRIBUTE MOSAIC ROOKIE HALLOWEEN COSTUME CONTEST
By adding their own Facebook and Twitter profile photos, In partnership with Party City, fans vote via FB/Twitter
fans helped to complete a mosaic. Fans could also post for which Halloween costumes rookies would wear
a message in the mosaic. The hashtag #NYGneverforget when doing their hospital visits. Giants veteran players
allowed fans on Twitter to append themselves to the mosaic. picked out the initial choice of costumes.

ALL SEASON
Man of the Match Extra Effort Player of the Game
Fans voted for their Man Of The Match (Extra Effort Player Of The Game from a choice of three players for each game).
Each player was given a unique hashtag, eg to vote for Eli Manning fans tweeted #Manning10.

PRE- SUPER BOWL

Social Media Night – #NYGsocial
On the Thursday before the Super Bowl whomever answers questions submitted to them via Twitter. Each player is
given a hashtag which allows fans to submit their questions. The hour-long LIVE webcast was broadcasted from
the Giants team hotel on Giants.com.

SUPER BOWL
Twibbon (Ribbon/Badge)
NFC East Champions/Super Bowl Champions Get Twibbon.
A Twibbon Campaign is your own microsite where users can support your cause, brand or organization in a variety of
ways. Saves time.
Fans add a custom badge to their Facebook or Twitter profile by clicking one button.

Super Bowl Social Media Initiatives – Follow 30 Players Via One Microsite
Fans could follow the Giants players all the way to Indianapolis.
NYG launched a microsite that allowed our fans to follow all Giants players who had Twitter accounts.
Website: http://www.giants.com/assets/standalone/connect/default.html

Behind the Scenes Web Cam

Give fans access to behind the scenes video footage each day if 10,000 ‘likes’ were given on NYG Facebook page.
Each day, fresh footage was captured of training, eating and general behind the scenes.
 626 Part Two | Communications Tools

American football team the New York Giants use social me- ­ aterial that no blog, website or TV network could get. So in
m
dia to ‘give fans every opportunity to feel as if they are this example, the social media actually helped to create a
“part” of the team’, ie they use social media to add value to lot of relevant content, engage customers and add value to
the fan experience. Figure 20.17 shows how. the overall brand experience.
What made this campaign a success? Unique, relevant
content. This footage was genuine, behind-the-scenes

C A S E S T U DY Brazilian football club creates immortal fans via social media

Situation The club has created a new kind of fan – the immortal fan!
Their hearts, eyes, lungs could keep cheering for Sport Club
Organ donation was taboo in Brazil for many people. Yet peo-
Recife even after death. And the fans responded. Fifty thou-
ple are dying every day because they cannot find a suitable
sand of them committed to helping others after they die.
donated organ. Hospitals have waiting lists of desperately
Sport Club Recife have helped to reduce the waiting list
sick patients on stand-by, hoping and praying that someone
for heart transplant and cornea transplant to zero.
somewhere has been kind enough to have committed to do-
nating an organ. Brazil’s Sport Club Recife is known for hav-
ing some of the most passionate football fans in Brazil. ‘First
Tactics
God. Second Sport Club Recife. Third Family. Fourth work’ YouTube and Facebook were the main tactical tools used to
says one fan. ‘Nothing else matters... Sport Club Recife is drive this unique and highly successful campaign. The ex-
everything’ says another fan. They are passionate about life traordinary YouTube video shows passionate fans that
(and death too). Perhaps this passionate community can help care – some that need an organ, some who have received
each other by committing to become organ donors? The club an organ and some who want to donate. Adriano Dos
has owned media which includes a Facebook page, website, Santos (who was waiting for an eye transplant) says: ‘I
match day programmes and signage (around the stadium). promise your eyes will keep on watching Sport Club
Recife.’ Luiz Antonio (who was waiting for a lung t­ ransplant)
Objective
The board agreed to mobilize the fans and get as many of
them as they could to sign up and become organ donors. F I G U R E 2 0 . 18 The flowing banner
This supports the club’s community goals and its corporate says: Everything for Sport Recife. Even after
social responsibility goals of helping their community.
death
Strategy
Create the first football club organ donor card by mobilizing
the passion, harnessing the club’s community energy and
creating ‘immortal fans’ whose organs keep on living (in
other people’s bodies), long after the donor has died. This
can be done at minimal cost since it leverages the club’s
owned media, which includes its website, Facebook page,
YouTube channel, match day programme and posters
around the stadium.
 20 | Owned Media – Websites and Social Media 627

says: ‘Your lungs will keep on breathing for Sport Club You can see the extraordinary YouTube video that helped
Recife.’ Marleade Dos Santos (who was waiting for a heart to create the world’s first organ donor football club on www.
transplant) says: ‘I promise your heart will always beat for GreatSportsmanship.org (to find it, search for ‘Brazil’).
Sport Club Recife.’
One lady who received a heart transplant says: ‘My new Action
heart comes from a Sport Club Recife fan and it will keep
on beating for Sport Club Recife. C’mon Sport Club Recife Fans get their organ donor card through their preferred
fans, let’s donate! Let’s form this chain and never stop do- channel:
nating.’ ●● at the stadium;

F I G U R E 20.19 The Great Sportsmanship Programme Blog was founded by PR Smith and
is a NFP edutainment programme designed to inspire young people and boost their literacy,
self-esteem and interest in sport via true two-minute stories about sportsmanship
 628 Part Two | Communications Tools

●● through a Facebook app; 3Ms

●● at home by mail.
●● Men/women: The Ogilvy agency shaped and executed
The greatest difficulty in the organ donation process is the the idea.
family’s authorization. So this barrier was removed by en- ●● Money: This is a zero budget campaign, with time and
suring the donor cards communicate with the donor’s fam- effort donated by volunteers.
ily. The organ donor card also informs the family of the fan’s
●● Minutes: In less than a season this campaign recruited
donation wishes.
51,000 donors.

Control (measurement/results) Note: This case was first posted on The Great Sportsman-
ship Programme blog (11 May 2014).
Fifty-one thousand Recife fans have signed up to donate
their organs after they die (more than the stadium capacity).

C A S E S T U DY The Damned United, Brian Clough microsite

Situation Action
Digital agency Moonshine Media was asked by Times The action section is all about excellent execution of the
Online to create an engaging showcase to celebrate the tactics. This includes internal marketing (training, motiva-
colourful life and times of Brian Clough, one of England’s tion and internal communications), mini project plans, ac-
most controversial and outspoken football managers. tion plans (see Figure 20.20), checklists and processes.

Objectives Control/results
The ultimate objective for the website was to help promote Feedback from Times Online praised the website for having
the film The Damned United, an adaption of David Peace’s a ‘slick and exciting design which showed off our content
best-selling novel of the same name about Clough’s stormy in a fresh and dynamic manner’. The project was complet-
44-day tenure as manager of Leeds United. ed with Times Online feeling ‘confident’ that the application
would engage and entertain its readers.
Strategy
3Ms
The website was designed to focus on Clough’s career as
opposed to his personal life, which was why the inspiration ●● Men/women: A research team involving five individuals
for the website layout was derived from an interest in card from Times Online worked for a month before the
collecting, as well as showing a clean and text-minimalist project started in order to collect all the information
look. with which to populate the site. They went through
archives from newspapers, looked through interviews,
Tactics and bought very limited film footage. Moonshine Media
was given the content and populated the site with
The site provided links to an archive of information includ-
everything that was supplied.
ing video, images and articles, and ultimately displayed an
interactive timeline, ‘Clough in the rough’, and aggregated ●● Money: Times Online had a budget of £13,000 for the
video as well as images. The Sunday Times archive content microsite (no retainer, pay by results).
highlighted the key events in Clough’s career, enabling ●● Minutes: From start to finish the project took 30 days.
readers to explore and navigate through the most memora-
ble moments in Old Big ’Ead’s life.
F I G U R E 20.20 Times Online microsite timetable

Task Effort 15Feb–21 Feb 22 Feb–28 Feb 1 Mar–7 Mar 8 Mar–14 Mar
1) Assets Required
1.1) Branding 16/02/2009 09:00
1.2) Copy 26/02/2009 09:00
1.3) Final Copy 10/03/2009 09:00
2) Design 4d
2.1) Page Design 3d Designer
2.2) Client Feedback 1d Client
3) Flash Development 2w 3d
3.1) Functionality Build 2d Developer
3.2) Timeline 3d Developer
3.3) Secondary... 1d Developer
3.4) Item Content Page 1d Developer
3.5) Image Viewer 1d Developer
3.6) Video Player
1d Developer
3.7) CMS
4d Programmer
3.8) Beta Ready
02/03/2009 18:00
3.9) Testing
10/03/2009 09:00
4) QA/Debug
1w
4.1) Feedback
2d Client
4.2) Debug/QA
3d Developer
4.3) Population
4.4) Hand over 26/02/2009 18:00
09/03/2009 18:00

629
 630 Part Two | Communications Tools

Do not forget internal communications – 10 per cent of the budget

Flawless execution of marketing campaigns and simple tools like websites is not as common as it should be. In
fact, Bossidy and Charan (2002) claimed that execution was the last bastion of competitive advantage; ie, being
able to execute plans better than your competitors created competitive advantage. One aspect that is critical to
flawless execution of marketing communications is internal marketing, which means communicating to your
team, colleagues, staff and other departments within your organization. Figures vary, but many well-run
organizations allocate a minimum of 10 per cent of their resources to communicating internally.

C A S E S T U DY American Greetings e-cards optimized landing pages

Situation analysis offers, propositions and even pictures directly without

needing developers and designers to code and create new
American Greetings has the largest collection of electronic pages for them.
greetings on the web, including cards available at
AmericanGreetings.com through AG Interactive, Inc, the
Tactics
company’s online division. AG Interactive funnelled online
traffic to the www.americangreetings.com homepage, American Greetings adopted LiveBall in order to increase
or a single multivariate testing (MVT)-optimized landing page. agility, speed to market, specificity and ultimately to im-
The marketing team decided they needed to launch an ag- prove conversion performance to lower cost per customer
gressive landing page testing in order to lift visitor conversion acquisition. Ion worked closely with the AG Interactive
rates from an average of 1.47 per cent to 2.01 per cent. marketing manager to launch and test alternative landing
experiences that were specific to marketing segments and
Objectives traffic sources.

The goal was to convert traffic using online registration for Action
a free trial subscription (which later converted to a paid
subscription on AmericanGreetings.com); however, Within the first three months of testing with LiveBall,
one landing page was not converting enough of the total American Greetings moved from a single, optimized land-
traffic. Implementing testing on one landing page was ing page to over 40 unique landing pages, each context-
slow, with a multi-month feedback loop to the marketing specific to its source of traffic. Three entirely different
team. Experimentation with alternative design and content ­design formats were tested with 12 different price points
was even slower. across 200 different audience segments. By speaking to
each segment, American Greetings was able to increase
Strategy conversions despite an economic fallout that actually re-
duced the flow of traffic.
To lift conversions, the marketing team decided to create Customers looking for e-cards search using different
and test several different context-specific landing pages phrases. Tests revealed which landing page performed best
for each keyword: e-cards, free e-cards, birthday, create for each key phrase. Once these ‘champion’ landing pages
and print, and international. They determined they needed were identified, all traffic from a particular ad word was di-
to experiment broadly with content and layout, test results rected to that champion page. Consider three search phras-
and view analysis in real time to find which landing pages es: ‘e-cards’, ‘birthdays’ and ‘create and print’ (your own
worked best. Their new strategy was based around a sys- card). Each phrase is linked to a specific landing page that
tem (Ion’s LiveBall) where the marketers could change the reflects the phrase. Each landing page has several versions
 20 | Owned Media – Websites and Social Media 631

F I G U R E 20.21 American Greetings

The key phrase ‘e-cards’ was tested against many different landing pages before choosing the landing page called
‘Browse with Flash’ (on the right hand side). This was the champion page (which made the most sales).

The key phrase ‘birthdays’ was tested against many different landing pages to see which page converted the most
visitors into customers. The landing page called ‘Browse with Flash’ (in the middle) was the champion
(ie it sold the most cards).

Many different landing pages were tested for the key phrase ‘Create and Print’.
The ‘general’ landing page (on the left hand side) converted higher than the other family focused themes.
 632 Part Two | Communications Tools

tested before the marketing team selects the ‘optimum’ unique traffic sources. The real-time testing and analytics
landing page for each key phrase. This is the magic market- in LiveBall ensured that traffic arrived at the best-­performing
ing formula at work (see Figure 20.21 for the testing process landing page for each traffic source. As soon as American
and results). Greetings got statistical significance on a test, they drove
traffic immediately to the champion landing page in real
Control time. On Mother’s Day alone this resulted in $45,000 in incre-
mental revenue. That’s revenue that would have been lost
Each unique landing page format was customized and without LiveBall’s actionable, real-time approach.
matched with the PPC ad that was sending it traffic. The New tests are always in the works at American
testing resulted in an almost immediate 30 per cent in- Greetings. The conversion goal was over 40 per cent high-
crease in conversion and a subsequent 20 per cent de- er than the previous year, and another 33 per cent lift was
crease in cost per acquisition (which is a net benefit that targeted for the next two years. American Greetings uses
included the added expenses associated with Ion’s LiveBall Ion’s LiveBall platform to drive real business ROI at scale.
platform and conversion optimization services). E-cards Smaller-percentage improvements on the top-line sales
run 13 or 14 tests simultaneously at any one time and get figures have a big impact on the bottom-line profit figures.
quick, actionable learning. LiveBall gives fast speed to market and learning. It’s a vis-
Over the first five months using LiveBall, the American ual tool that lets marketers focus on what’s working to im-
Greetings online marketing team created over 700 unique prove results.
landing pages, which were tested across hundreds of

World-class marketers constantly try to optimize Marketing professionals now need to convert
and improve their marketing performances, and existing customers to lifetime, repeat-purchasing
American Greetings is a good example. Testing mul- customers. Here’s how.
tiple landing pages is one of many ways to boost the
conversion of visitors to customers.

C A S E S T U DY  Social media helps stop smoking: Using social media (and UGC movies) to
help 11- to 15-year-olds to stop smoking

Situation that took place across 10 schools and a youth club

nationwide. The challenge was to develop a creative
Although the proportion of young people aged 11–15 who
concept that would positively resonate with and inspire
smoke had fallen over the previous 10 years, it was reported
young people, so the campaign grew through genuine
that by age 15 the proportion who reported smoking at least
enthusiasm, supported by schools and young people
once a week had risen to approximately one in seven (14
across the country. Ultimately, the project aimed to
per cent). Smoking is the main cause of preventable
engender 1,000 films, generating a change in the attitudes
morbidity and premature death in England. The Deborah
of young people towards smoking and a reduction in the
Hutton Campaign is working in harmony with existing
number of young people smoking.
government and charitable initiatives to reduce the
prevalence of smoking among young people.
Strategy
Objectives Cut Films used the creative film-making process, combined
with the use of social media, to influence 11- to 15-year-
Change agency ICE has worked with the Deborah Hutton
olds. It attracted young people and encouraged them to
Campaign on a pilot, Cut Films, a film-making competition
 20 | Owned Media – Websites and Social Media 633

share their own personal messages and creative work by Action

using the relational nature of social media. This enabled
The Cut Films competition was managed by the campaign
users to forward films and messages, in order to create a
director, who supported schools and youth clubs through-
snowball campaign that aimed to influence the cultural
out the process. However, the main way of managing the
attitudes of young people towards smoking. The power of
results was through the ‘My film’ document that young
the campaign lay in the use of social media as part of a
people used to help them plan, reflect on and evaluate the
peer-to-peer approach engaging young people through the
process of producing a film, and reflect on the content they
creative attraction of film and new media technologies.
discovered throughout the process.
All films were submitted to the Cut Films website, moder-
Tactics ated and uploaded to YouTube. There is an ongoing effort to
The campaign set up a presence for Cut Films on a range of introduce the campaign to schools, as well as constant
social media sites. Films were uploaded to YouTube and communication with key stakeholders, including:
then ‘pinged’ across to pages on Facebook and Twitter. The
●● the Department of Health;
campaign also promoted its presence among key
stakeholders. ●● the head of features, ITV;
●● key academic health promotion specialists;

F I G U R E 20.22 Cut Films ‘film page’ containing multiscreen grabs

 634 Part Two | Communications Tools

F I G U R E 20.23 ‘Smoking is not cool’ on YouTube

●● the head of public health sciences at the University of groups to inform the roll-out and evaluation of the campaign
Edinburgh; nationally.
●● schools and youth clubs;
3Ms
●● regional and local tobacco leads within local NHS
services. ●● Men/women: The campaign director is the only full-time
member of staff. She is supported at board level and is
Control also working alongside social marketing company ICE,
which as part of the pilot provided free access to
Cut Films fed into health and citizenship issues within the
expertise in web development, design, social marketing
PSHE curriculum, and this was underpinned with social
and PR.
marketing or social change principles from the National
Social Marketing Centre. This provided rigorous evaluation ●● Money: ICE provided its expertise for the pilot free of
and evidence for the campaign’s long-term impact. charge, as a contribution to this charitable initiative.
Underpinning every aspect of the project, ICE’s social ●● Minutes: Cut Films’ pilot: June to March. Website and
marketing division provided key insight focusing on resources designed: August to September. Film deadline:
realigning concepts of normal behaviour and identifying December. Awards ceremony: March. National roll-out
film topics that would inspire as well as nudge young of campaign: September onwards.
people and their communities towards a move in behaviour.
See the Cut Films website (www.cutfilms.org).
They also created an evaluation framework and focus
 20 | Owned Media – Websites and Social Media 635

is a tool for nurturing awareness into relationships.

Advantages and Social media, on the other hand, can create aware-
disadvantages ness, change attitudes and help to convert prospects
to customers and customers into lifetime customers.
Here are some of the advantages and disadvantages
to consider when deciding whether to increase or
reduce this communications tool.
Disadvantages
Websites are totally dependent on traffic. No traffic
makes a website useless. Investment is required for,
Advantages first, traffic-building campaigns and, second, main-
Websites can help to establish the credibility of a tenance of the site with fresh content. Equally, so-
brand, engage customers in a unique way and con- cial media requires a continued feed of fresh content
vert them into lifetime customers and brand advo- (as well as resources to respond to discussions). This
cates. Combine this with social media platforms, can be resource hungry (SMO is the new SEO), and
and the combination can be used to move custom- as yet there are few models to indicate the optimum
ers up the Ladder of Engagement and spread the resource allocation here. The usual issues of servers
word. The website is owned media and therefore it crashing, security hackers, scams and spammers
is a controlled environment (assuming it is moder- jeopardizing the control of the message are chal-
ated). New ideas that add value to the customer ex- lenges, and constant vigilance is required. Equally,
perience can be added to the site continually. An conversations across the full social media spectrum
infinite amount of new added value opportunities need to be monitored and tracked continually.
are emerging, particularly as technology develops. Conversations also require moderation and re-
Deeply engaging, relevant experiences can be deliv- sponse. Scope creep can mess up a website either at
ered. This is a form of competitive advantage. Social the development stages, or ongoing requests for
media can help to create awareness and engage cus- website changes/improvements can eventually cre-
tomers all the way through a purchase cycle. It can ate a patchwork quilt that loses the site’s cohesive-
also help to nurture influencer relationships and ad- ness and its ‘thing’, as can poor content management,
vocates who will spread your brand. While the web- eg out-of-date content left online. Maintenance is
site is generally not a tool for building awareness, it essential.

Key points from Chapter 20

●● There are four key satisfaction factors for and digital body language; and relevant landing
websites: high-quality content, easy navigation, pages.
fast downloads and updated content. ●● Successful social media requires high-quality
●● High-quality content is more likely with some content, suitably optimized (also for audio
scenario planning, persona development, search) and spread across various social
creative sizzle and customer engagement. networks.
●● Navigation requires careful planning, including ●● Social media processes must be integrated into
navigation rules and identifying the top tasks. business systems and databases.
●● Customer conversion increases with: a strong ●● The 10 common social media mistakes can be
call to action; price lining; simplified processes; avoided with common sense.
reduced customer anxiety; a contact strategy
 636 Part Two | Communications Tools

As it is the end of this book… F I G U R E 2 0 . 2 4 Unique use of

owned media by Whitehawk FC
We hope you have enjoyed it. One final point
regarding owned media. Here is, in our opinion, one
of the finest uses of owned media. It belongs to a
non-league semi-pro football club on the south
coast of England, called Whitehawk FC. They have
one small stand. The steps in the stand are owned
media. Here’s how they used their owned media to
get a serious message out there. See www.
GreatSportsmanship.org for more.

References and further reading

Baer, J and Naslund, A (2011) The Now Revolution, McGovern, G (2015) Relationships are
Wiley, London expensive, Gerry McGovern: New Thinking,
Bonelli, S (2017) How to optimize for voice search, 21 June
Search Engine Land, 1 May Patel, N (2014) The step-by-step guide on improving
Bossidy, L and Charan, R (2002) Execution: The your Google rankings without getting penalized,
discipline of getting things done, Soundview Neil Patel.com, December 2
Executive Books, Concordville, PA Robles, P (2010) 10 common social media mistakes,
Byron, D, Kievman, N and Schrum, R (2010) Why Econsultancy, 31 March
Executives Hate Social Media: An executive’s Schlender, B and Chen, C Y (2000) Steve Job’s Apple
guide to social media, Deming Hill gets way cooler, 24 January [online] https://money.
Chaffey, D and Smith, PR (2017) Digital Marketing cnn.com/magazines/fortune/fortune_
eXcellence, 5th edn, Routledge, Abingdon archive/2000/01/24/272281/index.htm (archived
Gallup (2013) How customers interact with their at https://perma.cc/995C-M8AT)
banks, Gallup Business Journal, 7 May Schwartz, B (2018) The Google speed update: Page
Hilpern, K (2013) How to personalise your customers speed will become a ranking factor in mobile
experience, The Marketer March/April search, Search Engine Land, 17 January
King, B (2010) Bank 2.0, Marshall Cavendish Sexton, J (2010) Dispelling buyer anxiety and
McGovern, G (2010a) The customer is a stranger, replacing it with buyer confidence, Web Marketing
New Thinking, 7 June Today, 3 August
McGovern, G (2010b) Web manager: Top tasks Seybold, P (2001) Get inside the lives of your
versus tiny tasks, New Thinking, 28 June customers, Harvard Business Review, May
McGovern, G (2012) Why review and remove are Smith, PR (2011) Marketing Communications:
such critical web skills, Gerry McGovern: New Integrating offline with online and social media,
Thinking, 8 July 5th edn, Kogan Page, London
 20 | Owned Media – Websites and Social Media 637

Smith, PR (2019) SOSTAC® Guide to your perfect Wolfgang Digital (2019) KPI report 2019 [online]
digital marketing plan, http://prsmith.org/books/ www.wolfgangdigital.com/kpi-2019/ (archived at
(archived at https://perma.cc/LKV2-WDEY) https://perma.cc/RT45-KAU6)
Solis, B (2010) The 10 stages of social media Woods, A (2007) The Revolution usability report:
integration in business, BrianSolis.com/ (archived Creativity – looks aren’t everything, Revolution
at https://perma.cc/432D-MSML), 22 January magazine.com, 4 December
Surowiecki, J (2005) The Wisdom of Crowds, Anchor Woods, S (2009) Digital Body Language, New Year
Books, New York Publishing, Danville, CA
Visser, M, Sikkenga, B and Berry, M (2018) Wunker, S, Wattmann, J and Farber, D (2016) Jobs to
Digital Marketing Fundamentals, Noordhoff Be Done: A roadmap for customer-centered
Uitgevers innovation, Amacom

Further information
Advertising Standards Authority Limited (ASA) Committee of Advertising Practice (CAP)
Castle House Castle House
37–45 Paul Street 37–45 Paul Street
London EC2A 4LS London EC2A 4LS
Tel: +44(0) 20 7492 2222 Tel: +44 (0)20 7492 2100
www.asa.org.uk www.asa.org.uk

Business Link (now part of Gov.uk) Google Business Solutions

Tel: 0845 600 9006 www.google.co.uk/services/
www.gov.uk
Information Commissioner’s Office
Wordtracker LLP Wycliffe House
Kemp House Water Lane
152–160 City Road Wilmslow
London EC1V 2NX Cheshire SK9 5AF
United Kingdom Tel: +44 (0)30 3123 1113
Tel: +44 0333 200 4555 Fax: +44 (0)1625 524510
www.wordtracker.com www.ico.org.uk

Cloudmark Europe Ltd (anti-spam software)

c/o Olswang
90 High Holborn
London WC1V 6XX
www.cloudmark.com
 638

INDEX

Note: Numbers within main headings are filed as spelt out; acronyms and ‘Mc’ are filed as presented. Page locators in italics denote information
contained within a figure or table.

A/B split testing 15, 124, 197, 199, 203, 205, 291, 492, 517, 603 AT&T 56
ABC model 177 attention (attention span) 136, 138–39, 150, 307, 309
ABM 224 attitudes 145
Absolut Vodka 359 Avon 81, 167, 279–80, 459
accelerated brand creation 21–25 awareness, consideration, conversion funnel 364–75
account-based marketing 328 awareness campaigns 367
account executives 214, 216 awareness trial reinforcement (ATR) model 129–30, 351
account management 216–17
ACORN 89, 198, 356–57 Baidu 35, 210, 240, 245, 247
Acronis 513–17 Banksy 403, 404
actions 280–83, 435–36, 460–62, 473–74, 525–28 banner ads 91, 130, 343, 344, 354, 362, 497, 512
adaptive website design 595 bar codes (bar code recorders) 194, 195, 561–62, 578
Adidas 225, 428, 439 Barcelona FC 239
adoption models 173–74 Barclays Bank 437
advanced web communications models 172–73 BAT 209, 250
advertising 190, 193, 201, 203, 253–60, 305, 348–90, 413, 463, BCAP 301, 302
496–98 Beacon technology 357–58, 552
banner ads 91, 130, 343, 344, 512 behavioural insights (analytics) 197–98
advertising bans 434 Behavioural Insights Team 119, 197
Advertising Standards Authority (ASA) 301, 302, 411, 412 behavioural targeting 267, 354–55, 381
advocacy 62, 162–63, 172, 607, 608 Ben & Jerry’s 187
aesthetics 556, 576–77 benefit based brand names 52
affective attitude 145 Best Western International 431–32
affiliate marketing 172, 219, 343–44 BICC 579–80
affiliate network programmes 344–45 Big Data 183–84, 188, 311, 326
agencies 189–90, 208–37, 257, 258–60, 473 Big Idea 119, 351
agency-client relationships 229–33 black-box models 132–33
agile project management 21, 101–02, 177 blame storming 84
AI (artificial intelligence) 17–19, 21, 116, 171, 210, 311–12, 334, Blendtech 457
583–86 Blis 358, 377, 378, 379, 380, 381–83
AI influencers (artificial influencers) 160–62, 410 blockchain technology 310, 312
AIDA model 131, 270 Blue Band margarine 255
Airbnb 22, 23, 219, 240, 242 Boots 44, 194, 257
Akai 432 Boro Plus 587–90
Al Jazeera 41, 239 Boston Matrix 60
Alamo Car Hire 466 Bounce Below 611–15
Alexa 18, 125, 609 Bové, José 61
Alibaba 4, 13, 18, 22, 35, 36, 42, 43, 209, 210 BP 153, 414, 416, 417, 432, 572
Amazon 18, 22, 33, 58, 276, 305, 344, 351, 451, 604 brain science 118–21
brand value 35, 36, 42 brand, defined 32, 40, 41, 44
ambush marketing 439–40 Brand Agency Leader model 212–13
American Express 91, 431–32, 435 brand ambassadors 12, 54, 346, 607, 621
American Greetings 630–32 brand assets 34–35, 57, 71, 80
Amnesty International 394, 432 brand awareness 119, 130, 145, 203–04, 219, 364, 365,
analytics (left-brain thinking) 7–10, 13, 21, 121–24, 353 439, 489, 497
anti-brand feelings 61 metrics 285, 289
AOL 35 brand benefits 32–39
Apple 4, 22, 35, 36, 42, 79, 104, 277, 306, 550 brand consistency 54, 55–56, 68, 71
AR (augmented reality) 312, 313, 474–75, 521–22, 549–51 brand development 47–61, 71, 587–90
Archaos 403, 408 brand equity 45, 53, 184, 395
Art of War (Sun Tzu) 7, 268 brand essence 45, 66
arts sponsorship 432 brand experience 45, 46, 47, 51, 58, 461
Ashley HomeStore 362–75 brand extension 33, 59–61, 572
ASOS 202, 214, 501 brand features 50
asset selection 493–94 brand guidelines (manuals) 54, 57, 69, 71, 279
asymmetric dominance 117 brand identity 45, 65–72
 Index 639

brand image 45 coaching 86, 106

brand logos 52, 53–56, 67–68, 111, 135, 141 Coca-Cola (Coke) 33, 44, 57, 64, 115, 116, 140–41, 190–91, 240
brand loyalty 50, 59, 80, 121, 305, 451–52, 470, 606 advertising 350, 352
brand maintenance 55–59 brand value 34–35, 36, 42
brand names 52–53, 60, 244, 251 mistakes 251, 252
brand personality 45–46, 51, 52, 66, 85, 433 packaging 573–74, 575, 578
brand policing 55–56 promotions 465, 466, 469
brand portfolio analysis (Riezebos) 60–61 sponsorship 428, 433, 437
brand positioning 46, 52, 272–74, 275, 433, 607 strategy 253, 254
brand promise 46, 51, 52, 85 Cocker, Jarvis 402, 405
brand purpose 6–7, 44–45 Code of Sales Promotion Practice 303
brand reviews 57, 65 codes of practice 301–03
brand role 46 cognitive attitude 145
brand touchpoints (brand moments) 12, 45, 47, 51, 55 cognitive learning 142
brand trust 33, 125–26, 139, 148, 152–53, 159, 309 cold audiences 356, 367
brand value 35–39, 42–43, 63–64 cold email campaigns 489, 490
brand values 46, 52, 64, 66, 86, 452 cold targeting 363
brand vision 46–47, 66, 269 Colgate 117
BrandZ survey (2018) 35, 36–39 collaboration (collaborative co-creation) 10, 276, 278, 327, 601
Brexit 138, 297, 386–88 collage boards 200–01
Bribery Act (2010) 298 colour (colour blocking) 247, 559, 575–76
briefs 51–52, 102, 188–89, 222, 524–25 commission 217–18
British Airways 89, 224–25 communication tools 146–47, 339, 341
British Heart Foundation 495, 505–11 communications mix 25, 280, 328
British Rail 224, 232 communications objectives 270
broadcast sponsorship 432, 436, 439 community sponsorship 428–29, 432
Bruno Magli 413, 414 competition 192, 250–51, 291, 296, 305–07
BT (British Telecom) 58, 175, 232 Competition and Markets Authority (CMA) 306, 411
B2B 149, 164, 166, 267, 291, 324, 326, 332, 463, 548 complex buying models 133–34
B2C 88, 166–67, 174, 266–67, 291, 324 Comprehensive Economic and Trade Agreement 304
budgets 257, 258, 291–92, 437, 504–05 conative attitude 145
Bull Stratos (Red Bull) 239, 457 concept testing 49, 53, 191, 193, 194, 201, 202
bundling 549 connectionist learning theory 140, 141–42
Burger King 474–75 connector panels 175, 202
Burkitt Weinreich Bryant 224 conscious reasoning 115, 118–19
Business Protection from Misleading Marketing consent 250, 298, 299
Regulations (2008) 298 consideration campaigns 364, 366, 367, 372
Business Protection Regulations (2008) 298 conspicuous consumption 144, 240
constant beta 139, 275, 291
Cadbury’s 44, 360–61, 394, 465, 467, 469 consultative selling 326
calls to action (CTA) 125, 136, 245, 461, 595, 597, 600, 603–04 Consumer Contracts Regulations (2013) 298
Cambridge Analytica 120, 198, 300 consumer franchise 463
Campbell’s Soup (Warhol campaign) 161, 562–63, 570–71 Consumer Protection from Unfair Trading Regulations (2008) 298
Can Spam Act (2003) 250 contact strategy 87–89, 488, 516, 605–06
Canon 433, 437 content atomization 477
CAP (Code of Advertising Practice) 301–02, 303, 412 content audits 452–53, 476
capability maturity model 16 content calendars 457, 478, 525
Capgemini 7 content deletion 457–58
Carnegie, Andrew 6–7, 16 content design 159, 595–600
category-less world 22, 296, 305 content distribution (distribution matrix) 458, 459–60, 477–78
central advertising strategies 254–60 content frequency 457
chat rooms 199 content leverage 457, 476–78
chatbots 5, 17–18, 79, 169–71, 214, 311–12, 329, 331, 488 content marketing 19, 92, 199, 449–85
Chevrolet Tahoe 359 content outsourcing 458
churn rate 89–90, 93, 95 content overload 186
Cisco 38, 52 content pathways 454, 462
classic brand names 52 content pools 399–400, 401
classical conditioning 140–41, 463 content pyramid 450
Clearcast 302 content research 452
click behaviour 21, 80, 92, 113, 158, 197, 312, 488, 598, 605 content shock (saturation) 451, 453
ClickThrough Marketing 375–77 content size 457
closed loop reporting 93, 94 content strategy 452, 453, 607
cloud technology 184 content syndicators 214
CMOs (chief marketing officers) 171 contentious ads 361
co-branded emails 489, 490 context 175
 640 Index

contextual targeting 354 personal 299, 300, 500

controls 283–92, 340–41 research 191, 204
advertising 368–75, 376–77, 386 data analytics 18–19, 95, 101, 115, 121–24, 147–48, 183, 196–97, 216
content marketing 462, 478 data coordination 96
direct mail 511, 512–13, 514 data decay rate 499–500
exhibitions 528–30, 535, 538, 541 data flow 378
merchandising 563, 564 data mining 95–96, 100–01, 103, 199
PR 417–18, 421, 422, 423–24 data owners 41
promotions 474, 480–83 data quality 93, 96
sponsorship 436–37, 442, 446 data retrieval 96
conversion campaigns (techniques) 367, 601–06 data security 91, 96, 300–01
cookies 91, 97, 198, 356, 380 databases 13–14, 15, 41, 80–81, 85, 90, 93, 95–101, 500, 527
corporate brands (identity) 55–58, 65–72, 307, 572–73 Debenhams 552
corporate PR 392, 393 decentralized advertising strategy 255, 257–58
corporate presence 55, 572 decision-making 114, 184, 266, 311
cost per click (CPC) 219, 286, 310, 368, 377 Deep Pan Pizza 469
cost per enquiry 529 defensive marketing 129, 252–53
cost per order 285, 288, 505, 529 Demand Exchange 214
cost structures 250 demographics 267, 311, 379
costs 103, 191–93, 220, 224, 256, 367–68, 412–13, 524, 529, 530 desk research 188, 191, 221
Cover My Cab 375–77 Diageo 164, 175
creative departments 215 dialogue 79
creativity (right-brain thinking) 7, 9–12, 23–24, 220, 230, 257, 353, diffusion of innovations 174–75
358–80, 466–67, 579–80 digital body language 7, 21, 100, 158, 328–29, 488, 605
CRE8IVITY.COM 550–51 Digital Economy Act (2010) 298
credentials pitch 221 digital marketing plans 15, 25
credibility 158–59, 164, 396, 413, 419, 602 digital mirrors 553, 558–59
crisis management 416–17 digital press kits 397, 398
CRM (customer relationship management) 23, 75–109, 493 digital transformation 15–16, 105, 234
cross-cultural consumer characteristics 239, 244, 260 diluted brands 40
cross-merchandising 557–58 direct mail 487, 501–17
Crystal 334, 337, 338 Direct Mail Sales Bureau 502
CSR (corporate social responsibility) 44, 61, 394–96 direct mail schedule 504
cue patterns 555 direct response 488–90
cultural norms 240–41, 243–44, 248–49 Disney 432, 522
cultural shift 84, 86, 168 disruptive technology 22, 23–24, 115, 240, 297
Curtis shampoo 251 distributor empathy 555–56
custom audience 354, 355–56, 364 distributors 345–46
customer acquisition 292, 490 DMUs (decision-making units) 114, 266, 311
customer-centricity 4, 6–7, 98, 257 Dom Pedro 402, 405
customer empathy 4, 361 dominance trap 83
customer engagement 59, 277–78, 433, 600–01 down-the-line interviews 402
customer experience (CX) 5, 12, 19, 44–45, 58–59, 62, 277, 553 DPA (Digital Protection Act) (2018) 299
customer feedback 86–87, 309 DPC (Data Protection Commission) 299, 300
customer lifecycle marketing (lifetime journey) 19, 76, Drift 329
84–85, 176, 606 Drucker, Peter 4, 282, 283
customer names 77, 90–91 Dulux 130, 548, 596–97
customer needs 8–9, 11, 18, 77, 82 dwell time 553–54
customer profiling 48–50, 89–90, 91, 97–101, 112–13
customer promotions 462 Early, Thomas 233
customer ratings (reviews) 126, 549, 621 earned media 210, 349, 352, 469
customer records 85, 98, 103 easyJet 60
customer retention 76, 78, 80, 101, 159, 276, 292, 326–27, eBay 22, 39, 305, 552
490–91, 517 economic change 303–07
customer reward programmes 52, 77–78 Edison, Thomas 9–10
customer satisfaction 104–05, 107 editorial coverage 412, 413–15, 416, 417, 418, 425, 467, 525
customer segmentation 48–50, 88, 100, 265–68, 362, 363 Electrolux 251
customer service ‘timebomb’ 5–6, 40–41, 81, 309 Electronic Data Systems 395–96
customer surveys 104, 192–93, 194 Eli Lilly 304
customization 90 Elopak 570
Eloqua 329, 512–13
DAGMAR model 131, 203, 270 emails 88, 122, 124–25, 167, 176, 247, 487, 488–92, 493, 495–501
Damned United 628–30 emotional-rational dichotomy 115, 116
dashboards 339, 368–75 emotions 44, 50, 115, 117–18, 119, 352, 385, 460–61
data 15, 17, 92, 95, 265, 278–79, 291, 339, 353–58, 378 end screens 510, 511
Big Data 183–84, 188, 311, 326 endorsements 158, 162, 164, 414, 419, 435, 524, 572, 602
 Index 641

Engie Benjy 418 Gap 554

Enron 61, 395 Gates, Bill 34, 337
Enterprise Act (2002) 298 Gaylord Opryland Hotel Grant reopen 522
enterprise architecture 85 GD Pharmaceuticals 587–90
Enterprise Risk Management Integrated Framework (2004) 303–04 GDPR (General Data Protection Regulation) 12, 101, 125, 148, 190,
EPOS scanners 561, 578 297, 299–300, 490, 500, 517
ergonomics 573, 574 GE 10, 15, 326
ethics 61, 310–11, 395 General Foods 252
ethnographics 197 Generation C (‘perpetuals’) 113, 126
EU Directive on Copyright 299 geo-targeting 243, 357, 554
Eulogy 403 geodemographics 195, 198, 266
European Commission 306 George, Andrew 402, 407
Evans, Gavin 403 Gerber 246
exhibition checklists (follow-up) 528 Gestalt psychology 139
exhibitions 193, 520–45 gestures 158, 248
Experian 378, 380, 490 Gibson Guitar app 12
experiential branding 538–44 gifts 501
experiential marketing 47, 520–45 Gillette 232, 382, 428, 429
extensive problem solving 121 Glee app 351–52
eye tracking 201–02, 605 global brands (globalization) 36–39, 41, 42–43, 61, 239–44
global marketing strategy 253
Facebook 21, 22, 111, 120, 122–23, 136, 148, 152–53, 267, 291 GM (General Motors) 50, 251
advertising 349, 352, 354–56, 362–75, 363–64, 367–68, 386–88 gnome experiment (Kern) 418–21
brand value 36, 42, 169, 308 golf sponsorship 431, 434, 435
market research 183, 198, 199, 203 Google 35, 36, 42, 104, 138–39, 183, 268–69, 300, 306, 309
promotions 479, 480–82 Google Ads 354–56
Facebook Custom Audience tool 356 Google Adwords 176, 227, 355, 375–76, 479
Facebook Insights 113, 197 Google Alert 185, 313, 417, 607
Facebook Messenger 79, 168, 169, 170, 487, 488, 493–95, 517 Google Analytics 7, 113, 122–23, 191, 196
faceted navigation 549 Google Lens Launderette 540
facial recognition 18, 202, 583 Google News 313, 397
fake followers 231, 234, 411, 458 Google Pixel 3 Curiosity Rooms 538–44
familiarity 112 Google Voice 162
FANGs 209 Google Wallet 22
FAQs 19, 452 gorilla advert (Cadbury’s) 360–61
FBI 183 Gorkana 410
fear 116, 307 Granada TV 430
‘Fearless Girl’ (SSGA) 454–56 graphics 576–78
Federal Express 80 Grattan’s 89–90
Federal Trade Commission (FTC) 306 Great Sportsmanship Programme 279
fees 218 ‘green screens’ 310
field marketing 337, 342, 560, 564 Greenpeace 496–98
15 Second Film Festival 402, 405 group characterization 90
firms of endearment 6, 44, 269 group influence 146–48, 165–66
Fischer, Bobby 183 Guess 491
floating targets 267 Guinness 59, 64, 117, 163, 174, 222, 467, 560, 576, 579
focus groups 193, 194, 198, 200–01
football sponsorship 428, 430, 432, 433, 437 hall tests 194
Ford 250, 251, 428 Hangar 7 547, 554–55
forecasting 186, 192, 340 happiness business model 7, 81
form friction (form design) 97, 604 hard data 92
Forte Hotels 413, 418 Harley Davidson 593
4Es 12 Harry Potter 396
4th Industrial Revolution 14–19, 233, 296–97 Harvey Nichols 552
FRAC 98–100 hashtags 167, 168, 240, 246, 280, 526–27, 621
Friends of the Earth 402, 403, 406–07 head shots 404, 408–09
Fuji 439 heat maps 135, 137, 201–02
Fujitsu 80, 105–06 Heinz 33, 53, 140, 232, 465, 471, 570, 571, 572
full service agencies 209, 211–12, 216, 259, 473 Help the Aged 403
‘full shelves sell best’ 558 Hewlett-Packard (HP) 10, 39, 42
funnel communications models 175–76 high-involvement purchase model 126–27, 128–29
high street 551–52
GAA (Gaelic Athletic Association) 444–47 Hilton McLean 17–18, 79, 311
GaggleAMP 163, 459, 460, 469, 607 historical data 95
gamification 85, 86, 98, 198, 467–70 Hitwise 202, 453
 642 Index

home audits 194, 195, 203 Kakuto Chojin 252

Honda 210, 211, 224, 233, 305–06, 451, 572 KangaRoos 166–67
Hootsuite 167, 196–97, 458 Kellogg’s 44, 47, 53, 64, 269, 270, 469
Hoover 464, 466 Kelly HR 475–78
House of Fraser 552, 554 Kern 418–21
Hovis 63 key account management (KAM) 324, 326–27
Howard & Sheth complex model 133–34 key phrases (SEO) 610–11, 630–32
HSBC 91, 604 key visuals 535, 537
human touch (human-centred marketing) 21, 315 KFC 465
hurdle rates 100 Kindar-Martin, Jade 403
hybrid agencies 209–12 kinetics 158
hybrid systems 503 Kinki Nippon Tourist Agency 251
hyper competition 22–23, 33–34, 65, 85, 186, 305–06, 358, 451, 552 Kodak 439
hyper-local targeting ads 358 KPI pyramid 270–72
KPIs 86, 269, 286–87, 524
IBM 52, 53, 80, 166, 174, 232, 311, 324, 414 Kraft Food 12, 359, 466
ice-breakers 333 Kurzweil, Ray 19, 21, 26, 312–13
ICO (Information Commissioner’s Office) 300
images 599–600 ladder of loyalty (engagement) 84, 178, 601, 606
Imber, Dr Suzanne 397 Lady Gaga 359
impression shares 375 landing pages 120, 492, 495, 507–08, 527, 595, 596, 597,
Impulse fragrance 255 602–03, 630–32
impulse products 112, 130, 131, 342, 557, 590 language 244–46, 251
in-depth discussions (interviews) 7, 143, 192, 193–94, 198, 200 law of accelerating returns 21, 312–13
in-home trials 194 law of the few 175
in-house affiliate programmes 344, 345 laws (legislation) 250, 297–300, 306, 439, 579
in-house teams (in-housing) 209, 210–12, 231, 233 Layar 549–50
individualization 90 learning theory 140–42
influencer fraud 231, 234, 411, 458 left-brain thinking (analytics) 7–10, 13, 21, 121–24, 353
influencer marketing (influencers) 20–21, 160–62, 172, 258, 410–12, Lego 233, 469
458, 621, 623 Levi’s 254, 256, 305
information fatigue syndrome 40, 61, 151, 183, 186–87, 307, 506 Liberty Insurance 444–47
information needs 247, 248 Lil Miquela 160–61, 171
information pollution 186 limited problem solving 121
innovations 8–9, 174–75, 190–91 linear additive models 132
inside-out websites 5 94 LinkedIn 22, 113, 176, 197, 332–34, 478
inside sales 329 LinkedIn Sales Navigator 333–34, 336
Instagram (Insights) 136, 161, 176, 303, 402, 527, 617–18, 620, 623 listening tools 167–68
integrated reporting 393 literacy 246, 251
integration 7–14, 17, 328–29, 414, 470, 476–77, 492, 625–26 Littlewoods 224
Intel 272–73 LiveBall 630–32
intent (interest) signals 333 living the brand 54
internal marketing 12, 55, 82, 85–86, 105–06, 281–83, 435, Lloyd’s Bank 54, 428
460–61, 612, 630 location-based marketing (advertising) 12, 112, 121, 353–54,
internet 14, 21 356–58, 377–80, 382–83, 386, 548
Interviewer Quality Control Scheme 189 location-based mobile analytics 198
interviews 399, 400, 402 location segmentation 362, 363
in-depth 7, 143, 192, 193–94, 198, 200 location tunnels 255
Investor-State Dispute Settlement 304 London Fire Brigade 96
IoT (Internet of Things) 11, 41, 114, 177, 233, 312 long-form ads 359
iPhone 4, 21, 114, 173, 332, 457, 536 long tail 40, 610
iPod 21, 54, 116, 145 long-term brand building 62–63
IRD (magic marketing formula) 33, 95, 352, 452, 492 lookalike audiences 355, 356, 363–64
ISO 10668 63 Love Island 410
IT function 83 LOVI 577, 611, 616–24
low-involvement purchase model 126, 129–30
Jackson, Libby 397 loyalty card data 121, 183
James Bond franchise 167, 521 Lucozade 55, 275
JCB 521 Lunn Poly 141
Jif Lemon 573, 574 Lyft 64
John Lewis 127, 552, 561
Johnson & Johnson 6, 416, 570, 572 M&C Saatchi 224–25
joint promotions 469–70 Macy’s 465–66
joint ventures 19, 253, 310 magic marketing formula (IRD) 33, 95, 352, 452, 492
Just Eat 171 Mainstream Renewable Power 395
 Index 643

mall walking 12, 547–48 MOSAIC 96, 198

Manchester United Football Club 41, 239 motivation theory 54, 111, 142–45, 247, 339–40, 434
Maplin 552 multi-level marketing 343
Maritz Corporation 340, 469 multi-step linear communications models 164–67
market penetration 192, 314 multi-step non-linear communications models 171–73
market research 9–10, 47–51, 52, 57, 181–207 multichannel funnel reports 122
marketing (marketing objectives) 269–70, 392 multivariate testing 199, 203, 227, 517, 630
marketing automation (MA) 21, 78–79, 80, 100, 105–06, 267, 312, music 140–41
329, 503, 513–17
marketing function 83 nano-influencers 20, 160, 167
marketing marriages 6, 274, 276, 467, 469 National Geographic 170, 421, 496
marketing optimization 90 National Semiconductor 597, 598
marketing qualified leads (MQLs) 78–79, 93 National Union of Teachers 58
Marks & Spencer 194, 436 native ads 362
Marlboro 45, 53, 54, 152, 308 Natural Food & Drink Company 44
martech stack 17, 85 NatWest 467
Martian 167 NCH Action for Children 527
mashable web 177 near field communications 552
masking and compositing 506, 509 Nelson’s Column 402, 407
Maslow’s hierarchy of needs 143–45, 339–40 Nescafé 33
mass communications models 163–64, 165, 168 Nestlé 62, 231, 572
mass customization 90 net promoter score (NPS) 13, 104–05, 289
materials 578–79 Netflix 38, 51, 209, 283, 352
Maths Men 215, 380 neuromarketing 202
Mattel 416 new task buying 121, 127
Mazda 210, 522 New York Giants 625–26, 627
McDonald’s 36, 42, 53, 61, 111–12, 141, 257, 414, 439, 466 New York Tourist Board 251
media 159, 249–50, 257, 349, 396–97, 416, 417–21 news clippings 417
media departments 215–16 news releases 397
mega data 265, 291 newsletters 92, 489, 490, 526, 600
Memory Mirror® 553, 558–59 Nielsen 174, 192, 194, 195, 202, 490
Mercedes-Benz 78, 350 Nike 37, 44, 46, 52, 53, 54, 91–92, 255, 394
merchandising 546–67 advertising 350, 359
message style 159 sponsorship 428, 429–30, 435, 437, 439
messaging apps 168–70, 495–96 Nike Missions 468
metrics (measurements) 367, 417–18, 438, 607, 609 NLP (natural language processing) 17, 18
brand awareness 285, 289 Nokia 162, 598
exhibitions 527 non-scientific profiling 98
merchandising 561–62 non-verbal communication 157–58
Metropolitan Police 224 Nordstrom 64
micro-influencers 279, 399–400, 411, 458, 459 Northern Rock 416
microsites 628–30 nudge theory 119–20, 129
Microsoft 34, 35, 36, 42, 161, 171, 175, 202, 252, 393
microwave packaging 579 02 554
MIIS (marketing intelligence and information system) 185–86 objective and task budgeting 291
Miller Beer 360 objectives 268–72, 275
mindshare 345–46, 561 content marketing 453, 455
Mini 50, 381 direct mail campaign 501, 506, 513
Missguided 410 exhibitions 523, 530, 538
mission statements 19, 45, 268–69, 452 merchandising 562, 564, 565
Mistah Jam 542 PR 419, 422, 423
Mitsubishi Pajero 251 promotions 470–72, 479
mobile apps 12, 22, 162, 168–70, 351–52, 357–58, 410, 478, sponsorship 433–34, 440, 444–45
495–96, 565 O’Driscoll, Brian 135
mobile devices 112, 114, 124–25, 136, 161, 249, 308, 357, 487, Ofcom 302
594–95 offensive marketing 253
user IDs 378, 380, 382–83 Office of Fair Trading (OFT) 298
modelling 291 Ogilvy & Mather 119–20, 233
modified rebuying 121 old marketing model 8, 12, 13, 14, 25
monkeynomics 119–20 Olympics Committee (sponsorship) 439–40
Moore’s Law 313 omnibus surveys 192, 194
Moran, Jim 402–03 omnichannel marketing 17, 20, 548
Morrisons 432 onboarding 230–31
Mortascreen funeral march 403 1 per cent rule 162
Morton’s Steakhouse 87–88 one-to-one mass marketing 167, 168, 169, 266
 644 Index

online information processing 150 PINPOINT 198

online media relations measurements 417 Pinterest 124, 136
online newsrooms 397–98 pitches 223–25
online research 198–99 Pizza Hut 17, 79, 311, 431
OOH media 352, 357, 382–83 Plan UK 402
operant conditioning 141, 463 planning 291
operational targets 54, 55 planning departments 214–15
opinion formers 164, 165, 166–67 point of sale technology (displays) 548–49, 553, 559–60
opinion-forming panels 202 polarization 14–15
opinion leaders 161, 164–67, 174 politics 64, 183, 297–303
OPPO F7 351 pool lists 221
optimum shelf layout 558 pop-up exit surveys 198, 199
opting in/out 93, 488, 490 positive reinforcement 141–42
organizational structures 86 Post-It notes 202
outbound leads 329 post-pitch 225
Outreach 329, 334 post-purchase dissonance 127, 129, 396
outside-in websites 594 post-show follow up 525
over-following 608 postmodern ads 360–61
over-packaging 571 PR mix 393–94, 396
overview reports 122 PR Smith ’nuclear missile’ news release 413, 415
own brands 40, 62, 311, 558, 578 pre-pitch 222–23
owned media 210, 349, 352, 593, 636 predictive analytics 98, 101, 491
Oxfam 402, 405 predictive data 95
prescriptive selling 325–26
packaging design 142, 193, 194, 559, 568–91 presentee-ism 146
Paddy Power 361 press conferences 399
PAGES 114 press digests (coverage) 417, 530
paid media (PPC) 185, 210, 243, 245, 285, 344, 349, 352, 362–77 Pretty Polly 579
paperless coupons 548 price lining 604
Parker Pens 251 price promotions 464
partnerships 11, 276 primary data 191, 204
Pasquette, Didier 403 Prince’s Trust 502
passion 35, 44–45 privacy 125, 139, 148, 248, 300–01, 308
Patent Office (UK) 593 Privacy and Electronic Communications Regulations 298
path length reports 122 processes 275–76, 580–82, 604, 607
pattern advertisements 254, 255–56, 259 Procter & Gamble (P&G) 6, 57, 167, 175, 202, 212–13, 232, 234,
pay-by-results (performance-related fees) 218–19, 418 305, 350
payment terms 250 product deletion 60
PayPal 512–13 product failures 252
Peake, Tim 397, 398, 410, 411, 440–44 product function brand names 52
Pedigree 583–86 product launches 521
Pepsi 39, 242, 257, 342, 434, 439, 465, 469 product placement 359
Per Cent Club 395, 432 product PR 392, 393
percentage of sales budgeting 291, 529 product quality 578–79
perception 134–39, 150 product shape 573–74
performance management 86 product size 574–75
performance metrics 367 production departments 216
Perky Blenders 541 Professor Green 541, 542
permission marketing 101 profit optimization budgeting 291
perpetuals 113, 126 programmatic ads 358
Perrier 46, 573 progressive profiling 97–98
Persil 57, 135, 469 project leaders 103
personal data 299, 300, 500 project management 82, 177, 327
personal-variable models 132–33 project plans 283, 284
Personality AI 334 prompted brand awareness 203, 204
personalization 20, 90–93, 124–25, 159, 167–71, 328, 560, 598–99 Prudential Real Estate 522
personalized videos 21, 399, 400, 493, 495, 505–11 psychic income 339–40, 434, 469
personas 457, 476, 596–97 psychoanalytical motivation 142–43
PEST analysis 265, 296 psychographics 267
PESTLE analysis 296 public relations (PR) 391–426, 562
Philips 232, 252 publicity stunts 402–04
photography 402, 404, 434, 527 publishers 378, 461
Pierre Cardin 158
pilot testing 435–36 qualitative research 191, 192, 193, 198, 200–02, 204
Pimm’s Cup punch-up 402–03 quality of life 14
 Index 645

quantitative research 193–99, 203 Scottie’s nappies 254

questions 183, 187, 190–91, 610 search engine optimization (SEO) 285, 450, 609–11
Quizmania 202 search engine results pages (SERP) 622
search engines 245
rational-emotional dichotomy 115, 116 search terms 245, 246, 610
Ratners 40, 414 Sears 394
Razorlight 403 second screen 351
real-time conversation prospecting 332–34 secondary data 191, 204
real-time personalization 91 ‘see’, ’try’, ’buy’ options 604
rebates 218, 560 seeding 409–10, 458
recessions (economic) 305 Seifert, Shona 233
recruitment 336–37 selective attention 138
Red Bull 44, 239–40, 279, 547, 554–55, 574–75 selfies 411–12, 543
advertising 302, 350, 359 SelfieSTIX promotion 583–86
content marketing 277, 450, 457, 458 semantic web 313–14
content pool 399–400, 401 semiotics 158
Red Bull Stratos 239, 457 sensory branding 47
Rediffusion 98 sentiment analysis 184, 289, 417
Reebok 430, 554 sentiment scores 13, 35
regulations 297–300 sequences 276–77
relevance 52, 67, 492 sequential communication 176–77
relevance scores 367 session maps 135, 137, 202
relevant creativity 7 7Ps 25, 338–39
relief purchases 130 share of wallet 22, 34, 79, 286, 305
remarketing (retargeting) 354–55, 382–83 sharing economy 23
remuneration 217–20, 230 Shell 38, 53, 57–58, 303, 394–95, 473
Renault 88, 255 shop windows 554
research plans 188 short-form ads 360
resources 260 shot maps 533
response hierarchy models 130–32 showrooming 127, 129, 552
responsive selling 325 Silverpop 498
responsive website design 595 simple web communications model 171–72
retail audits 192, 194–95 simulated test markets 192
retail strategy 556–61 Singapore Airlines 47
return on investment (ROI) 289–91, 529–30, 609 single-step communications model 163–64
reverse forensics prospecting 330–32 Sistine Chapel website 10–11
reward purchases 130 situation analysis 8, 65, 265–68, 433, 444, 470, 501, 523
RFM analysis 99 6Cs 274
rip and replace implementation 84 sizzle sites 593
risk management, PR 414 skills development 24, 81–82, 86, 177, 256, 338–39
RNC welcome event 522 slide shows 19, 452, 607
roles 146, 258, 307 SMART objectives 269
routinized response behaviour 112, 121, 127, 129 smart shelves 553, 561
RSA 361, 522, 530–38 smell 579–80
Rumbelow’s 433 Snack Dash viral game 422
Snapchat 169, 170
Saatchi & Saatchi 212, 224 Soccer.com 19
Safeway 95 social butlers 526
Sainsbury’s 194, 234, 393, 562 social capital 162
Sale of Goods Act (1979) 298 social change 307–11
sales funnel 270, 272 social CRM 79
sales promotions 462–47, 559–60, 563 social forecasting 186, 192
sales qualified leads (SQL) 93 social media 14, 40, 62, 115, 122–24, 136, 147, 280, 606–09, 632–34
sales teams (sales force) 82–83, 93, 323–47, 462 advertising 351
Salesforce 334, 336 content marketing 458, 611–28
sampling 433–34 exhibitions 526–27
Samsung 85, 380, 397, 398, 410, 428, 431, 440–44 listening tools 167–68
Sarbanes-Oxley legislation 303 PR 420
SAS Analytics 98, 101, 103 promotions 470
Saudi Arabian Airlines 53 regulation 303
saved audience 363, 367 social media audits 196
scenario planning 596, 597–98 social media prospecting 332–34
scents 560–61 social selling 329–30
Schlitz 570 socio-demographic targeting 354
scope creep 82, 102, 635 soft data 92
 646 Index

Sony 198, 439 exhibitions 525, 531–32, 539, 541

Sophia (bot) 18, 171 merchandising 564, 565
Sorrell, Martin 9, 115, 212 PR 419, 422, 423
SOSTAC® planning framework 25, 52, 102, 264, 328, 432–37, promotions 473, 479
470–74, 501–02, 580–81 sponsorship 435, 440, 442, 445–46
sound effects 560, 561 TAG Heuer 434
source credibility 158–59 Target 148, 468, 549
Sousa, Miquela (Lil Miquela) 160–61, 171 Target Group Index 194, 195–96, 266
Space Between 202 target list selection 501, 502, 503
Space Descent VR experience 411, 431, 440–44 target marketing 266, 275, 354–58, 363, 492
spacial computing 312 Tay (chatbot) 171
SPADE 266 TD Bank 77–78, 467
spam 487, 489, 490, 498, 635 technology 151, 310–14, 335, 357–58, 552
specialist agencies 209, 211–12 disruptive 22, 23–24, 115, 240, 297
speeches 19, 452 3D 114, 553, 554
splash pages 255 Telecommunications Regulations (1999) 298
split testing 15, 124, 197, 199, 203, 205, 291, 492, 517, 603 telemarketing 90, 342–43
sponsorship 427–48 Telstra 436
sponsorship agreements 435 10 Downing Street (MDG summit) 402, 406
spontaneous brand awareness 203, 204 Tencent 13, 22, 36, 42, 43, 209, 210
Sport Club Recife 626–28 Tennent’s Caledonian 252
Sports Direct 552 Terra Mater Factual Studios 400, 401
Sri Lanka Golf Tours 411 Tesco 62, 79, 88–89, 121, 234, 550, 560, 605
‘Stack Da Police’ 410 test marketing 194, 203
staff 12–13, 54–55, 86, 163, 257, 458–59, 468, 477–78, 608 testing 505
‘staff egg time’ team 461 Texas (calculators) 47
stakeholders 65, 72 ‘think global – act local’ 41, 240–41, 243–44, 434
Standard & Poor 500 companies 6, 21, 269, 395 third party e-newsletters 489, 490
Starbucks 36, 64, 142 Thomson Holidays 382–83, 564
Step2 469 3D technology 114, 553, 554
Stew Leonards 87 3M 90
stickiness factor 175 3Ms 83, 264–65, 513, 514, 517, 542, 564, 580–81, 613
stimulus-response learning 141–42 PR 421, 422, 424
store image 556–57 sponsorship 437, 446–47
store layout 557, 558 360-degree view of customer 92–93, 95, 210, 278
story-telling 454–57, 461 3X3 video/ad grid (BlitzMetrics) 362–64
storyboards 534 threshold models 132
straplines 251–52 Tia Maria 242
strategic alliances 253, 274, 467 time 158
strategy 272–80, 362, 376, 384, 419, 422, 423, 440, 445, 531 time lag reports 122
content marketing 454 tipping point initiatives 175
direct mail campaign 501, 506, 512, 514 tissue groups 225
exhibitions (experiential marketing) 523–25, 538–39 tone 246
global marketing 253 top path reports 122
merchandising 564, 565 top task sites 594
promotions 472–73, 479 Topline 479–83
sponsorship 434 TOPPP SEED 272, 274–79
strong theory of advertising 350–51 Toys R Us 552
style leaders 160, 164 tracking studies 194, 203
sub-brands 57 Trade Descriptions Act (1968) 298
‘sugging’ 202 Trade Marks Act (1994) 298–99
Sunday Sport 466–67 trade-off models 132–33
Sunsail 258 trade promotions 462
Super AI 18–19, 21 trading block agreements 303, 304
SUPER PROFILES 198 traffic departments 216
SuperPanel 203 train platforms 555
sustainable competitive advantage (SCA) 5, 23, 33–34, 184–85, 307 training 54, 79, 337–39, 416, 525–26, 608, 612
SWOT analysis 186, 296 transactional banner ads 362
symbolic communication 158 Transatlantic Trade Investment Partnership (TTIP) 304
syndicated radio interviews 400, 402 translation 244–45, 246, 257
Systematics Association 432 Treaty on the Functioning of the European Union (1958) 306
trigger packs 570
tactics 280, 281, 454–60 trigger words 610
advertising 362–64, 376, 384 Trump, President 64, 120, 138, 198, 303, 304, 350
direct mail 501–02, 506, 512, 514 TSB Mortgages 357
 Index 647

Tuigang 245 Virgin Mobile 359, 423–24

Twitter 115, 124, 136, 196–97, 210, 479, 492–93 virtual press conferences 399
two-step linear communications model 164, 165 visual language 56, 136, 190
two-way websites 600–01 Vladivar Vodka 432
Typhoo Tea Cash Pot promotion 465 voice search 609–10
Volvo 52, 250–51, 436, 451
Uber 22, 23, 42, 64, 279, 296, 311 VR (virtual reality) 312, 313, 496–98, 521–22, 530–38, 550–51
UEFA 35, 55, 57, 65–72
‘Ugly Bartender’ contest 432 Waitrose 359
unconscious fears (processes) 116–18, 119, 120 warm audiences 356, 367
uncontrolled publicity 413–16, 438–39 We Are Unlimited 210
Unilever 12, 57, 60, 120, 135, 152, 177, 217, 234, 250 weak theory of advertising 351
unintended consequences (AI) 18–19, 310, 316 websites 58–59, 61, 115, 126, 135–36, 199, 593–636
unique device identifiers (user IDS) 378, 380, 382–83 content design 10–11, 159, 556
‘Unity’ Collection (LOVI) 616–17 layout 150, 158
US Army 432 WeChat 22, 40, 168, 169–70, 313
usability testing 136, 201, 604–05 Weetabix 224
user-generated content (UGC) 359, 493, 562, 563, 601, 606, 632–34 WhatsApp 168, 169, 170
Wolters Kluwer UK 101
value propositions 274, 602 WPP 115, 215, 232, 234
Vattenfall 304
Veolia 304 X Factor 182, 351
Victor Chandler 98
Victoria Beer 434 Yahoo 218, 247
Vidal Sassoon 466 YouTube 136, 359
video news releases 399
videos 21, 167, 183, 351, 362–75, 399–400, 493, 495, 505–11, 615 Zappos 7
viral marketing 383–86, 404, 409–10, 418–22 Zenit 464
Virgin 46, 52, 57, 60 Zip World 160, 411, 611–15
Virgin Atlantic 57, 357–58
 648

®
The SOSTAC story

Although SOSTAC® is simple, it actually took me ­almost ten years to develop. When I took my MBA back in
the 1980s I was frustrated reading books with long, meandering marketing plans that were unnecessarily com-
plicated and impossible to remember. So, I kept in touch with my classmates and asked them to send me just the
contents page (list of ­contents) from their marketing plans. I analysed all of them over a two-year period and
developed my own new structure. This went through a number of iterations for several years until I came up
with SOSTAC®. It was like someone had turned the light on!

www.SOSTAC.org
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