Power to the People

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Motivating Consumers in the 21st Century

• Marketing has become a two-way street

20th Century: Marketing functioned on one-way communication

21st Century: Marketing relies upon engagement with target consumers

• Why?

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Communications Clutter

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Brands Proliferate Messages Multiply

Number of Brands on U.S. Grocery Shelves

Daily Advertising Messages to Which Average U.S. Resident Exposed

Media Fragmentation

• Network Proliferation3 Networks in 1973

102 Networks in 2003

• Screening Technologies

TIVO and iPod allow users to screen out advertising

• Forrester predicts at least 50% of American households will have TIVO by 2010

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Internet Household Penetration

• Internet Explosion

Now more highly penetrated than cable TV• 67.9% vs. 65.8%

Growth at expense of other media

• 21% watch less TV•10% listen less radio•13% read less print

The New Marketing Math: More is Less

More Products

More Media

+ More Messages

= Less message breakthroughLess message retentionLess message credibilityLess effectiveness in traditional marketing campaigns

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The thing that is important is creating communication that is getting into people’s lives. Whether it’s traditional or nontraditional marketing, its advertising, and if people don’t want it in their lives, they are now empowered to do something about it.

Ty Montague,Co-Creative Director,Wieden + Kennedy,New York

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“

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Creating Relevance

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Consumer-Centric Planning

• A new marketing discipline focused on creating relevance with consumers

• Planning model represents a shift in strategic thinking

From Brand to ConsumerFrom Discipline/Medium to Touch-point

• Key components include:Messaging Strategy – Crafting messages which resonate

with target audienceEngagement Strategy– Planning communications around

points at which consumers naturally interact with the brand

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Example:New Balance Pink Ribbon Merchandise

Profile Target Audience

• Segment & Prioritize

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Consider Consumer Brand Values

• How does brand resonate with consumer targets?

New Balance

• Peak performance, Personal Achievement, brand as enabler• Purity of cause (no celebrity spokesperson, flashy advertising, etc.)

Breast Cancer Cause

• Ubiquity of cause spurs broad awareness/involvement• Broad range in degree of Involvement , from purchase to fundraising

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Design Messaging Strategy

• Use brand reference points to develop campaign theme that establishes personal relevance with cause

• Engages target as women rather than consumers

Athlete. Non-athlete.

Doesn’t matter.

Everyone knows someone who has been affected by breast cancer.

How do you choose to get involved?

Create Engagement Strategy

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• Design engagement strategy around natural consumer touchpoints

Provide numerous simple, unobtrusive ways for women to get involved in cause

• Without compromising integrity of cause,New Balance’s brand positioning orcredibility with core audience

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Print Media

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Retail Stores

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Product Packaging

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Internet: newbalance.com

Race Events

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Example:ENERGY STAR Labeled Products

Profile Target Audience

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• Segment & Prioritize

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Consider Consumer Brand Values

• How does brand resonate with consumer targets?

ENERGY STAR labeled products

• Quality performance, energy efficiency, moneysavings, environmental benefits

Environmental protection• Protect environment for future generations• Live responsibly and do your part

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Design Messaging Strategy

• Messaging StrategyUse brand reference points to establishpersonal relevance with cause

• ENERGY STAR can help you save energy, money and the environment

Create Engagement Strategy

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• Design Engagement Strategy around natural consumer touchpointsLeverage support of ENERGY STAR partners

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Print Media

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Product Labels

• Properly label products to demonstrate qualification as point of differentiation

Aid consumer decision making process

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Retail Stores

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Retail Stores

A cool light snack

A warm light bulb

Gives you energy

Saves you energy

Provides calories

Provides longer lasting light

Satisfies hunger

Satisfies ENERGY STAR requirements

Some of the best things

come in spirals!

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Events

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Partner Communication

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Partner Communication

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Web

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Results

• Dramatic increases in brand awareness and influence

• Based on increased consumer demand, Manufacture of ENERGY STAR qualified products has increased exponentiallyRetail sales and support of ENERGY STAR continues to grow • Over 1 Billion ENERGY STAR products have been sold to date

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Conclusions:What Works

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• Profile Target AudienceDefine audience and prioritize segments

• Consider how brand resonates with consumersWhat values does brand represent?

• Personalize the cause through consumer-relevant messaging Money savings, energy savings, increased comfort/improvedproduct performance, environmental benefits • Simplicity is key: too much energy education can be a dangerous thing• Engage vs. overwhelm

• Design engagement strategy around natural consumer touchpoints Consider where consumers interact with your brand as relevant to business challenge, i.e. • Retail stores• Web• Home energy bills• Events

What Works