"I recommend today's marketing model is broken. We are precisely applying antiquated thinking and work systems to a higher life of possibilities...The traditional marketing model is obsolete."- Jim Stengel, Global Marketing Officer, P & G, Association of National Advertisers, Oct 2004.
The notion that marketing and advertising attitudes must change is no longer a theory just banded about by Online marketers. Perhaps the big boys as well as the major world players at the moment are accepting the mass marketing techniques, of your last half a century, are not used penetrating audiences like they designed to. There is certainly visiting ought to be a shift in the whole approach of advertising if it's going to maintain any relevancy with an increasingly cynical consumer.
When discussing marketing it doesn't get any larger than Proctor & Gamble, among the largest suppliers of household products on the earth, and certainly one of the biggest advertisers. With brands like Ariel, Head and Shoulders, Pampers and Crest, they must be at the forefront in utilising new methods to have their products into people's homes. Together with the mega brand no more revered as some sort of deity, P & G should need to learn how to communicate with the influential consumer networks, and persuade these to talk positively about a few.
P & G consists of a long tradition of innovation and groundbreaking the way they tend to have broadcast their messages. These were the first one to start advertising nationally, long ago in 1880, and still have taken the thought of product placement to another level along with their Soap Opera productions devised to hook female viewers onto their shows and shampoos.
Recently, P & G enlisted a multitude of 600,000 'connectors' to spread the answer with their 'Vocalpoint' campaign (an extension of their earlier 'Tremor' scheme amongst teenagers). Their 'connectors' were showered with coupons to distribute on their colleagues, and free samples to provoke conversations about P & G products. As Steve Knox, Vocalpoint CEO, recognised, "we all know the fact that most important type of marketing is undoubtedly an advocacy message by a trusted friend." With Vocalpoint, P & G are utilising the influence and relevancy of facebook to promote a few through interaction and trust. People might not hear brands, but nonetheless they will listen to the suggestion of friends.
The perception that change was on the horizon had already been identified by their former global marketing officer, Bob Weiliing. Inside a 2002 interview, Bob's view was that the Internet will possibly not replace the mass 'push' medium of TV, but instead may well be tailored to your individual. An online environment can be utilized for when you have a personal passion to learn a few products or services. Gaining advice, direction as well as the latest product news are services not readile free on simply a 'push' medium. TV is mostly about the mass market message, whereas the internet is good for individual relationship building.
Bob's conclusion, at the future of P & G's marketing success, lay in understanding the best way to combine the 2. That they had to keep up the relevancy of the 30 second TV ad, whilst also utilising the extended attention and interaction on the net. Also this meant persuading them warring marketing factions to function together to pinpoint a solution - to achieve the technophobes talking to the web evangelists. It was obviously been obvious in recent years that Bob's successor, Jim Stengel, subscribes firmly into the latter camp.
In 2005, P & G cut their TV ad spend by 8% into a mere $677.3 million, a bold move plus a definitive shift onto non-traditional media. Not too long ago, they contacted digital and interactive agencies in britain that will put together its first digital agency roster for Western Europe, and to find innovative new ways of populating their brands online.
We're now seeing the rise of interactive websites devised to keep hold of attention and encourage return visits. A while back a music themed site for Old Spice was launched with free downloads and song samples to appeal to the 16-24 iTunes generation. Another notable example was the campaign for Pringles crisps during the FIFA World Cup. A site created where people could upload videos of themselves imitating your television ad, mirroring the appeal of YouTube for only a young internet savvy audience. Both content driven sites devised to develop the brand through interaction, relevancy and value.
P & G have even learnt the training sessions preached by legions of business bloggers. By giving information valued at you develop trust and confidence; consequently, individuals will want a relationship together with your brand and become customers. Their Pampers website builds an affinity possessing audience through the provision of suggestion and help. As a valuable supply of young mums, it enriches their association with the manufacturer which enables you to provoke an appealing response next situation they go buying for nappies.
P & G's Homemade Simple website is a flagship in online marketing, with its own Tv program and guides on good housekeeping. Compared to being blasted with product placement, web site simply develops relationships with its audience through its news and articles. Once your trust is gained you will inevitably sign up for the newsletter, with further promises of free samples, coupons, good deals and sweepstakes all pulling you into their trap of turning into a convert to their products. 'Home Made Simple' provides the perfect buying environment by developing trust, along with the yearn to possess a relationship using their brand, what the new kind of website marketing will be about.
With the Association of National Advertisers Conference, earlier this month, Jim Stengal and P & G's CEO, A.G. Lafley, outlined their mission to carry their brands directly into 'pull' age of relationship marketing.
Lafley reinforced the views of Bob Weiling, that they had in order to understand learn how to make connections with their audience throughout the various 'touch points'. Them for years to come lay in mastering the best way to integrate their strategy across every one of the mediums available, as an alternative to relying on the original a method 'push' bombardment of marketing messages. His crucial point was they had to master how to "terminated" as "the longer in control we are most certainly the longer away from touch we become." P & G were required to move beyond thinking in terms of merely transactions, and instead concentrate on building relationships when you're more responsive and receptive to what their audience, the 'boss', wanted.
Jim Stengal opened his speech with a plea to his fellow marketers to "stop considering consumers and start considering people." He was suggesting a paradigm shift in how they approached marketing and advertising. Their potential customers were no longer just demographics, but individuals to be empathised and engaged with. They had in order to hear what customers wanted from the brand as an alternative telling them what the brand should mean an internet. A brand new stage understanding were required to form on why people should place trust in a relationship P & G's brands in lieu of simply superficially appealing to their desires (a tactic which has served copywriters for many years).
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Many proctor and gamble Online marketers are eager to hammer the nails into TV's coffin, whilst traditional advertising execs rest on their hands awaiting the 'web 2.0' bubble to burst. P & G have, since the start of the decade, been steadily moving from a monolithic, lumbering marketing dinosaur into an Internet savvy, feedback focused livewire. When you're an early adopter of many new 'trust' focused marketing philosophy, P & G really should be on the right track to solving the puzzle of marketing online and maturing their brand's message for the proctor and gamble coupons sceptical consumer.
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