VIDEO GUIDE
Advertising: Principles and Practice, 8th Edition
Moriarty/Mitchell/Wells
Segment 1: AFLAC
Summary
That wacky, quacky duck brought AFLAC to a high spot among most-recognizable ads and
brand names. The insurance company is growing quickly as a result of this greater name
recognition. It achieved 89 percent brand recognition in a relatively short time, resulting in $10
billion in sales and about a 25 percent compound growth rate.
AFLAC had spent millions of dollars on advertising with little or no effect and almost no market
awareness. Clearly, the current strategy was not working. This led the management team to
decide to try something bold to increase market awareness. The advertising agency came up with
many different ideas, but one crazy one—a duck. AFLAC tested the ad concepts and, as we
know today, the duck yielded the highest results. The goal of advertising is to create awareness,
while the actual sale comes from the agents selling the complicated insurance products.
Discussion Questions
1. What other industries, products, or brands have used humor in advertising to help position
themselves in the marketplace? Do you think the strategies have worked? Where wouldn’t
humor work?
Humor wouldn’t work all that well with serious purchases (e.g., health), but one might
think it wouldn’t have worked with something as serious (boring?) as insurance. Might
that be because the humor is associated only with the name and not the insurance
company’s attributes? B2B might be a place where humor might not seem appropriate
(chemicals, machines), yet it might cut through the ad clutter.
2. Now that AFLAC is a widely known brand name, what should its next advertising campaign
strategy be? How should AFLAC link the new strategy to the same business and marketing
plans? Do you think the company should drop the duck? Why or why not?
Once the name recognition is strong, most consumer behavior models suggest the
company would have created a hunger for more information. AFLAC then needs to use
advertising to provide consumers with supporting information, as in the following
scenario: "Yeah, okay, the duck. I know the name is AFLAC because it sounds like that
duck, but what does AFLAC do? Oh, insurance. Well, what kind of insurance? My
company doesn’t make AFLAC available. How do I know it’s better? How would I
convince my company that we need that option? Could I buy AFLAC for my other
insurance needs? How would AFLAC policies and prices compare to the insurance
policies I already have? Where do I go for more information?” It is obvious that AFLAC
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probably needs to move beyond the duck. (The company is not going to get much above
89 percent brand awareness; Coca-Cola is “only” at 95 percent.)
3. We have learned that it is important to communicate with consumers through more than just
traditional advertising. Personal selling is extremely important when you are trying to
convince consumers to buy an intangible product. What do you think the sales force’s
reaction was when it first saw the AFLAC duck? Is it necessary for a sales force to buy into a
campaign, or can it be shown later that a campaign is working?
The sales force probably was worried, and usually it’s important to have it the team
board. Remember, the objective of IMC planning is to make the most effective use of all
marketing communications functions to influence the impact of other communication
elements. Perhaps the salespeople knew, though, that the name wasn’t being recognized
and they were desperate for anything that would work.
Teaching Suggestions
Rather than investigating marketing communications content related to insurance, which would
probably be boring for students, focus on the humor in advertising element of this case. Have
students pick one product category that seems ideally suited to humor and one product category
for which humor is unlikely to work, perhaps because it would be insensitive or offensive in
some way. Have students mock up two ads to support their conclusions.
Have students do an analysis of other ad gimmicks, such as using old songs in a TV ad, using
black-and-white photos in a print ad, and so on, with an eye toward “When should it work, and
when shouldn’t it work?” as well as “Why, and why not?”
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Segment 2: Crispin Porter + Bogusky
Summary
Crispin Porter + Bogusky has been working over time to prove that it is the most innovative firm
at truly integrating marketing promotions. Crispin has worked miracles for companies like
Virgin Atlantic Airways and BMW’s MINI by executing non-traditional campaigns designed to
work within limited budgets. Crispin’s unique capability to balance strategy with creativity is
what produced such ground-breaking efforts as the “Truth” campaign. Crispin landed this
campaign in the late 1990s after the state of Florida successfully sued tobacco companies and set
up a foundation to fund anti-tobacco advertising targeted toward youth. What followed was a
campaign that shaped the agency and changed the nature of social advertising forever.
Discussion Questions
1. Alex Bogusky once said, “Anything and everything is an ad.” What does this means?
How is Crispin putting this idea into practice?
When most people think of an ad, they think of the traditional media such as broadcast,
print, and outdoor (e.g., billboards). But because CP+B has become so adept at thinking
outside the box, it employs various non-traditional media. CP+B’s philosophy is that any
message communicated through a medium of any kind can be an ad. Thus, they have
defined events, rallies, video games, apparel, and websites as ads.
2. In what ways has Crispin differentiated itself from other advertising agencies?
While this case does not discuss other agencies specifically, it does point out various
things that make CP+B unique and therefore differentiate it from others. These include:
a. the culture – people who work at CP+B are workaholics. Not for the common
workaholic reasons, but because they feel that they are part of something truly
unique, truly different.
b. non-traditional approach – many agencies are focusing on integrating marketing
communications across different media. But CP+B has a knack for employing
things that are totally out of the norm.
c. size – it is a big agency that thinks and functions like a small one.
d. taking on the impossible – CP+B is at its best when signing up for something that
others in the industry say can not be done.
3. Give some examples of how Crispin balances strategy with creativity to develop truly
integrated marketing communications campaigns.
The “Truth” campaign is the only basis for example in this case. In examining this
campaign, it is apparent that the strategy was to create a message that would
communicate the idea of rebelling against the “man,” or, Big Tobacco. This strategy also
involved creating a brand with which the target market could identify. This portion of the
process could be considered CP+B’s definition of the problem.
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After having defined the problem, CP+B used this strategy as an umbrella. It then
employed one of its greatest strengths…creating ideas. As stated in the case, those ideas
can come from anywhere…a creative director, an intern, or a secretary. This is what takes
CP+B into employing tradition (ads and PR) as well as non-traditional (events, rallies,
gear, apparel, websites) methods. The key is that the company doesn’t just throw darts
and do something zany because it is zany. It looks for ways to communicate a message
that fall in line with the established strategy. Thus, everything from the apparel to the ad
“Body Bags” communicated the strategic message of rebelling against Big Tobacco.
Teaching Suggestion
Crisping Porter + Bogusky has created some really ground breaking campaigns. The “Truth”
campaign is only one of them. Gather information, print, and broadcast ads from other
campaigns such as CP+B’s efforts with Burger King over the past few years. Presenting this
material in class along side the video case will combine to make a truly informative as well as
entertaining presentation.
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Segment 3: Dunkin’ Donuts
Summary
Dunkin’ Donuts has many strengths (quality and freshness, flavor and variety, good value,
convenient locations, strong brand presence). However, the company has to deal with powerful,
new competitors, including Starbucks and Krispy Kreme.
The company continues to be a major brand with more than $3 billion in sales expected this year.
Success is attributed to extensive market research conducted before a product is launched.
Additionally, corporate training enforces the company standards to deliver a consistent product
year after year and across all restaurants and franchises. Dunkin’ Donuts does not target one
customer segment; rather, it reaches across all demographic strata. Its promotional campaigns
and diversity of locations support this strategy. To meet market demand, the company is
expanding into the coffee market by offering specialty coffee drinks in addition to its standard
drip coffee. But Dunkin’ Donuts will not deviate from its original product offering and continues
to offer the consumer quality, convenience, and variety.
Discussion Questions
1. Who do you think is the competition for Dunkin’ Donuts? How would you describe the
differences in the types of consumers attracted to Dunkin’ Donuts and its competitors?
Dunkin’ Donuts competes with Starbucks. Starbucks tends to attract customers who are
more upscale than Dunkin’ Donuts.
2. Which psychological influences on consumer responses do Dunkin’ Donuts utilize in its
advertising campaigns in order to appeal to everyone?
The video mentions how the character of Fred the Baker was used to reinforce the notion
of appealing to everyone because he personified the brand: a commitment to quality, and
a strong work ethic. Both of these characteristics are psychographic influences that
transcend social class, allowing the company to connect with consumers from a broad
range of backgrounds. The idea that Dunkin’ Donuts is a reward for those who take pride
in the quality of their work is what appeals to a broad variety of consumer types. The type
of work may be different, but the quality is the same for all customers.
3. How can Dunkin’ Donuts use other elements of marketing communications to tackle the
issues of Starbucks and Krispy Kreme invading its turf?
Dunkin’ Donuts can use sales promotion to help fend off would be competition and
protect its market share. Free samples, coupons, contests, and sweepstakes are some
examples of how Dunkin’ Donuts can help drive store traffic and stimulate trial. Once in
the door, the company can then focus on its value proposition of quality to stimulate
repeat purchases.
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Teaching Suggestions
Encourage the students to think about advertising and its relationship to marketing and branding.
Thus far, Krispy Kreme and Starbucks have extraordinarily little marketing presence, whereas
Dunkin’ Donuts advertises relatively heavily. Will that brand heritage make the company
immune to a competitor's attacks?
Have the students (individually, in pairs, or in groups) complete a SWOT analysis for Dunkin’
Donuts, making sure they assess the competitors’ strengths and weaknesses. Have students then
discuss why it is important for Dunkin’ Donuts to know this information about its competitors
and how the company can use this information when developing advertising messages.
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Segment 4: Google
Summary
The advent of the World Wide Web set the foundation for what would become Google’s mission
when it opened its doors in September 1998: to organize the world’s information and make it
universally accessible and useful. Google was not the first Web search engine. But soon after
founders Larry Page and Sergey Brin introduced their service based on a unique search
technology, Google became the go-to way to search for information on the Internet. Google now
has dozens of free services, including foreign language translation, stock quotes, maps, phone
book listings, images, videos, and news headlines.
But perhaps Google’s most revolutionary impact on the dot.com environment is the manner in
which it has turned Internet advertising upside down. Today, services such as AdWords
(keyword search advertising) and AdSense (a method that generates only the most relevant ads
for client Web sites) are breaking new ground because they result in ads that actually help
consumers.
Discussion Questions
1. Brainstorm the many benefits that Google provides for consumers.
The case illustrates many consumer and business benefits. However, students may also
come up with things that are not mentioned in the case. Hal Varian, Chief Economist for
Google, makes a statement in the case that illustrates benefits to both consumer and
business. He says that Google matches up people who have information with people who
are seeking information; and matches people who want to sell things with people who
want to buy things. Clearly, there are benefits here for both sides.
More specifically, the case highlights one single major benefit for consumers: free stuff.
Searching, Google Maps, Gmail, and YouTube are all major features of Google’s vast
web-presence. Each of these can be analyzed in terms of the benefits that customers
receive. For example, benefits of Google Maps include being able to attain point-by-point
directions between any two points, being directed to points of interest like restaurants,
hotels, airports, etc., and saving time by not having to drive around or ask for directions.
2. Brainstorm the many benefits that Google provides for online marketers.
It matches people who want to sell things with people who want to buy things.
The main benefits for marketers are in the area of promotions. The video highlights
Google’s evolution from text-only ads at the top of the page to where it is today. Student
responses should recognize the two main Google ad programs and the benefits provided
by each:
AdWords – advertisers could reach more consumers more efficiently by purchasing
keywords that would produce the company website if the word were used in a keyword
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query. This tool helps advertisers by directing ads that are more relevant to users. The
auction-based system incorporates both the price that a company is willing to pay for
keywords plus the user’s interests. This utilizes click-through rates. Thus, advertisers
aren’t just paying an upfront cost to be “on top” of the query, but they are paying on a
“per-click” basis that links actual ad effectiveness to advertising cost.
AdSense – This ad tool allows Website owners to generate revenue on their sites by
inserting ads for other companies that are relevant to their website. They do not have to
know where to look for advertisers or worry about making sales. Google takes care of all
of that and allows for a simple plug-and-play format.
Other benefits to businesses are that Google’s ad products allow them to set up their own
ads in minutes, measure advertising effectiveness immediately, and generate revenue on
their own sites by inserting relevant advertising.
3. Visit www.google.com. Based on what you find there, discuss Google’s presence in each
of the four major e-marketing domains.
There are an endless number of items that may result in Google’s vast array of features.
Here are a few examples:
B2C – The most obvious example of this is when consumers use keyword searches to
find company websites. Specifically, Google’s Product Search function only provides
lists of online retailers. Gmail also provides a venue for this.
B2B – Examples of true B2B may be harder to find. Clearly, keyword searches will turn
up companies that are suppliers or purchasers of industrial products. Also, pages like
Google Finance are set up for both individuals and companies to gather data. And Google
itself caters to the business community with its ad products.
C2B – In this domain, consumers communicate with companies. Given that most
websites offer such options, Google’s keyword searches will clearly lead to C2B
opportunities. However, Gmail, Blogger, and Groups are Google features that also allow
consumers to interact with companies.
C2C – Examples for this should be easy: Blogger, Gmail, Groups, YouTube and Google
Video, Orkut, etc.
Teaching Suggestions
This is a case that students should be able to relate to very well because in many respects,
Google is the Internet. Some discussion points might be:
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The extent to which the Internet has, is, or will replace traditional sources of commerce
and information.
The disadvantages that the Internet brings with its advantages (e.g., it makes information
much more accessible to individuals, but at the same time inundates us with information
overload).
The privacy and security issues associated with Internet commerce.
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Segment 5: Harley Davidson
Summary
Few brands engender such intense loyalty as that found in the hearts of Harley-Davidson owners.
Why? Because the company’s marketers spend a great deal of time thinking about customers.
They want to know who customers are, how they think and feel, and why they buy a Harley.
That attention to detail has helped build Harley-Davidson into a $5 billion company with more
than 900,000 Harley Owners Group (HOG) members, the largest company-sponsored owner’s
group in the world.
Harley sells much more than motorcycles. The company sells a feeling of independence,
individualism, and freedom. These strong emotional connections have made Harley-Davidson
ownership much more of a lifestyle than only a product consumption experience. To support that
lifestyle, Harley-Davidson recognizes that its most important marketing tool is the network of
individuals that ride Harleys. For this reason, Harley-Davidson engages its customer base
through company-sponsored travel adventures, events, and other things such as clothes and
accessories both for riders and for those who simply like to associate with the brand.
Discussion Questions
1. How does Harley-Davidson build long-term customer relationships?
As noted in the text, there are two major building blocks for customer relationships. One
is customer satisfaction, the other is customer value. Both of these can be discussed
(however, customer value is treated more fully in question 2). But students should also be
prompted to identify specific tools or programs that HD employs to help build customer
relationships. Among these are HD’s sponsorship of the Harley Owner’s Group (H.O.G.),
which includes events, publications, and other means of facilitating customer-to-customer
interaction.
2. What is Harley-Davidson’s value proposition?
The text defines customer perceived value as the difference between all the benefits and
all the costs of a market offering relative to those of competing offers. This video case
does not really focus on the costs of owning a Harley, but that can certainly be discussed
with students. The price tag is high. Non-monetary costs like storing the bike and not
being able to use it during cold and rainy seasons might also be considered.
However, the bigger focus here should be on, “What benefits does a Harley customer
receive?” Early in the video clip, Joanne Bischmann, VP of Marketing, seems to
summarize this element of the value proposition. Harley-Davidson stands for
independence, freedom, individuality, expressing one’s self, adventure on the open road,
and experiencing life to its fullest. This is what people are buying when they buy a
Harley.
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3. Relate the concept of customer equity to Harley-Davidson. How does Harley-Davidson’s
strategy focus on the right relationships with the right customers?
The case does not overtly treat these topics, but there should be enough information that
students can make some sound observations. Two things need to be considered in
discussing customer equity: loyalty and profitability. Figure 1.5 in the text illustrates the
concept of building the right relationships with the right customers. While HD might
generate revenues and profits through some Butterflies, their main focus seems to be on
the True Friends, the long-term customers who are also profitable. Harley’s core products
(the motorcycles) are high-dollar and high-margin products. A customer buying one such
product contributes a certain amount to HD’s bottom line and is therefore “worth” a
certain amount. But customer equity grows dramatically when such customers buy
consecutive bikes either for themselves or for spouses or other family members. Add to
all this the opportunities for further transactions through the purchase of accessories,
clothing, and other HD licensed items, and the potential for building customer equity
with such a loyal core of customers is tremendous.
Teaching Suggestion
Ask students to list the characteristics of the typical Harley owner. Then ask them how Harley’s
marketing efforts, including advertising, target those and other consumers.
Harley sells more than motorcycles. It sells the feeling of independence, individualism and
freedom. Ask students to fill in the blank for different products. Here are a few examples that
will help students understand the concept of “benefit”:
Don’t sell me a Harley, sell me a sense of freedom.
Don’t sell me an iPod, sell me ________________.
Don’t sell me a Honda Accord, sell me __________________.
Don’t sell me a Corvette, sell me ______________________.
Don’t sell me Colgate, sell me ______________________.
Don’t sell me Lay’s Potato Chips, sell me ________________.
Don’t sell me Evian, sell me ____________________.
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Segment 6: Hasbro
Summary
It all started with GI Joe back in 1964. That was when Hasbro, now a $3 billion company
operating in more than 100 countries, launched the now legendary toy and pioneered the action
figure category. Since then, the company has developed scores of new toys that are well known
to children and adults around the world. Hasbro’s brands include games such as Hungry Hungry
Hippos, Parcheesi, Risk, Trouble, Scrabble, Outburst, Twister, Pictionary, Boggle, and
Monopoly. The company also sells Tinkertoys, Lite-Brite, Transformers, Glowworms, Mr.
Potato Head, VideoNow, and Play-Doh.
Today, to keep up with constantly changing trends in the marketplace, Hasbro develops almost
1,000 new products annually and launches nearly 80 percent of those products within a year’s
time. Getting all of those products to consumers requires a reliable and efficient supply chain
and a well tuned marketing channel. Hasbro’s products can be found in toy stores, drug stores,
wholesale stores, and even grocery stores.
Discussion Questions
1. What levels of distribution does Hasbro use? How does the company keep both mass
merchandisers and other channels from competing directly with one another?
Hasbro distributes its products through a wide variety of intermediaries, but focuses on mass
merchandisers. The company keeps different channels members from competing by offering
different product mixes through each channel.
2. How does Hasbro use distribution channels to build stronger relationships with customers?
You can find Hasbro products in toy stores, drug chains, grocery stores, or even wholesale
clubs. Having such a diverse set of retail channels allows Hasbro to reach customers
everywhere they shop. And, differing product assortments required by different channels
offers consumer more choices.
3. How does Hasbro use a pull strategy to market its products?
Hasbro forges partnerships with retailers, who integrate Hasbro products in their advertising.
Hasbro also create its own commercials and uses other media, including the Internet to create
one cohesive message that drives consumers to Hasbro products.
Teaching Suggestion
Have students visit three different types of retail stores frequented by children or families. Have
them make a list of products sold at each store find. Did they find any Hasbro products? What
other products did students find that they didn’t expect at each retailer? Why might the retailer
choose to carry those products? Create a retail advertisement that features Hasbro toys. How
might the distribution channels and advertising both contribute to Hasbro’s success?
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Segment 7: Meredith Corporation
Summary
The Meredith Corporation has developed an expertise in building customer relationships through
segmentation, targeting, and positioning. But the amazing thing is that they have done this by
focusing on only half of the population…the female half. That’s right, Meredith has become one
of the most successful magazine and specialty book publishers in the world by focusing on the
specific needs and desires of women.
Meredith is known for leading titles such as Better Homes and Gardens, Family Circle, and
Ladies’ Home Journal. But that list has grown to a portfolio of 14 magazines and more than 200
special interest publications. Through these magazines alone, Meredith regularly reaches
approximately 30 million readers. By focusing on core categories of home, family, and personal
development, Meredith has developed a product mix designed to meet various needs of women.
Discussion Questions
1. What are the main variables that Meredith has focused on to segment its markets?
Gender. Clearly, this is the greatest area of focus. But to say that this drives Meredith’s
segmentation strategy would be far too broad. This factor is more like the starting point
for cutting out half the market.
Life stage/Life events – this one really stands out as a factor that breaks the female
market down into groups that are specific enough to have their own product or product
line. The case mentions life events like having a baby, sending kids off to college, or
getting ready for retirement. Other possibilities include getting married or buying a first
home.
Passions – this could be considered an extension of interests and hobbies. The case
specifically discusses Meredith’s ingenious method (Passion Points) of gauging a
customer’s level of interest in a given area such as cooking.
Geographic/Demographic – The case describes how Meredith creates different versions
of their bigger magazines (e.g., “Better Homes and Gardens”) across different
demographic and geographic segments. For example, a special version of BHG has been
offered in the past to subscribers of a particular income range.
2. Which target marketing strategy do you think best describes Meredith’s efforts? Support
your choice.
Of the four main targeting strategies covered in the text (undifferentiated, differentiated,
concentrated, and micromarketing), Meredith clearly pursues a differentiated strategy.
Meredith clearly targets several market segments and designs separate offers for each.
For its print magazines alone, Meredith publishes hundreds of titles. Each of these is
crafted to appeal to a certain kind of customer.
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3. How does Meredith use its variety of products to build relationships through direct
marketing with the right customers?
Meredith’s efforts to build relationships with customers are very closely tied to its
segmentation activities. Overall, Meredith’s extensive database gathers as much
information as possible about a customer so that various customer needs can be met. The
idea is not just to sell a person one magazine, but to create a link with a customer and
then become the go-to source for multiple interest areas. For example, one person may be
looking at remodeling their home, love to cook, and have diabetes. There is a Meredith
magazine for each and every one of those characteristics. Also, Meredith’s deep portfolio
allows for adapting with customers as their needs change within a given interest area. For
example, “American Baby” (prenatal), “Parents” (postnatal), and “Family Circle” (teens
and tweens) are all designed to appeal to parents, but meet different needs depending
upon life stage. Thus, a prospective parent might become a Meredith customer by
subscribing to “American Baby,” and then progress through the other publications,
remaining a Meredith customer for life.
Teaching Suggestions
1. Have students visit the Meredith website. In conjunction with the first discussion
question, have students categorize the various magazine titles according to segmentation
variables.
2. Lead the class in a discussion about the future of print magazines. Have them comment
and speculate on the future of this industry. Small groups could generate
recommendations for a company like Meredith and how it might adapt to the changes in
culture and technology. For further supplements, instructors might research the Meredith
publication websites to discover what Meredith is already doing in that area.
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Segment 8: Motorola
Summary
Motorola's new Moto phone is used to illustrate how advertising helps to build a global brand.
The launch is based on a set of core ideas that represent the brand. The regional areas were
allowed to take those core ideas and build on them to fit their geographic and local perspective.
The basis of the branding started with the brand name. The name Moto came from a trend in the
Taiwanese market, where the Motorola name was shortened to Moto. Although this name
seemed to have staying power, it was important for the advertising agency to ensure the name fit
with the overall business and marketing strategy.
After the name was selected, the integrated marketing communications strategy was developed.
The purpose of IMC is to build a brand through every customer touch point. While every activity
communicates the brand, everything also has to be integrated and synergistic. The IMC process
from beginning to end is very detailed and complex. This video provides a good look at a realworld example of IMC.
Discussion Questions
1. If you were to design an integrated marketing communications plan for the Moto in the
United States, using billboards, the Internet, radio, and print, what features and benefits of
the cell phone would you play up in each of these media? Why? What needs to be consistent
across the media? What could differ?
Theory suggests that detailed, technical features must be made available via the media that
allow consumers to read at their own pace in order to think about products thoughtfully and
to review information as necessary. These elements of consumer learning suggest that Web
pages and print ads would be best suited to describe technical features. In contrast, sexappeal types of general benefits are best displayed vividly—for example, via billboards, a
page on the Web, perhaps radio, and probably TV. What needs to be consistent is the brand
name and the brand essence—the basics of what the company wants people to know about its
brand.
2. How would you modify your plans to promote the phone in China? In Finland (home of
Nokia)? In Brazil (big youth market)?
Motorola is familiar to people in these countries. The Chinese might find U.S.-built phones
attractive. They might appreciate value. Finnish customers might not be won until the Moto
is truly a cooler-looking phone than the Nokias that are available. The young Brazilian crowd
is a great example of what Motorola sought in general, to appeal to a younger segment.
3. Was the Motorola campaign “successful”? How well did the campaign meet its message and
media objectives?
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Motorola is regaining market share, so yes it was successful. The campaign successfully used
advertising to create exposure, awareness, and brand image. The Motorola brand image became
stronger on critical dimensions of the personality and positioning cues because of the campaign.
Teaching Suggestions
Most of your students probably have a cell phone. Ask them why they chose a particular
brand/service. Divide the students into pairs (or groups according to brand) and have them
convince you (or each other) why their particular phone service is the best choice. What features
and benefits are most appealing to you (the instructor)? To the students? Have them explain their
choices.
Ask student to bring ads for cell phones to class. Compare the messages in the ads. How might
these messages need to be changed for advertising in different countries?
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Segment 9: nineMSN
Summary
Formed in 1997, ninemsn is a joint venture between Microsoft and Australia's leading media
company, Publishing and Broadcasting Limited (PBL). The ninemsn site offers news and
content from nine of Australia’s largest media channels funneled through MSN’s signature
portal. Each month, more than 7.5 million people visit the ninemsn site for news, information,
and communication services, including MSN Hotmail and MSN Messenger. That’s 74 percent
of all online Australians, and the number keeps growing.
Ninemsn keeps users coming back by continually updating its content while maintaining a
consistent, easy-to-use Web site that users can customize. Then, the portal capitalizes on its
steady stream of consumers by capturing demographic data and working with advertisers to build
online marketing campaigns targeting the site’s users.
After watching the video featuring ninemsn, answer the following questions about direct and
online marketing.
Discussion Questions
1. How does ninemsn build and use its customer database?
By asking users to fill out a survey of personal information when registering, and
tracking users’ click-through choices, ninemsn builds its customer database.
2. Visit the ninemsn Web site, www.ninemsn.com.au, and evaluate the site. Does it do a
good job of visually telling the story? Does this site conform to the basic principles of
design?
Student responses will vary. The some of the principles of design are unity, balance,
movement or direction, and simplicity.
3. What forms of online advertising and promotion do marketers use to reach ninemsn
members through the Web site?
Advertisers use banners, pop-ups, and rich media.
Teaching Suggestions
1. Have students visit the ninemsn site and compare its content and design to the site they most
often use for news and searching (Yahoo, Google, MSN, etc.). Ask students to note how the
advertisers and types of advertisements differ between the two sites.
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2. Privacy is a serious concern for many consumers searching and shopping online. Ask
students to discuss their concerns about privacy online. Has technology had a positive or
negative impact on consumer privacy?
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Segment 10: Progressive
Summary
Progressive has grown into the third-largest auto insurance group in the country. Progressive
attained its status by not only focusing on growth but by focusing on innovation. Some of
Progressive’s most innovative moves have involved its channels of distribution. Whereas most
insurance companies distribute their products to consumers via intermediary agents or direct-toconsumer methods, Progressive was one of the first companies to recognize the value in doing
both.
In 1995, Progressive moved into the future by becoming the first major insurer in the world to
launch a Web site. In 1997, customers could buy auto insurance policies online in real time.
Today, customers can do everything from managing their own account information to reporting
claims directly through Progressive’s Web site.
Discussion Questions
1. How does Progressive reach its audience?
The company uses both agents and direct marketing to reach its potential consumers. It
relates information with its agents as well as directly to its customers. Progressive has
nurtured relationships with agents for more than 40 years. Progressive supplies these
resellers with training, product information, financial incentives (commissions), and
flexible pricing for products. Progressive also communicates directly to customers
through mass-media advertising (this has also had an incidental effect on increasing
brand awareness for customers shopping through agents). It also communicates through
its website. Various features are given through this medium for customers to become
educated about Progressive’s products. Direct customers can then interact with the
company and purchase product in two ways, by telephone or through the Internet.
2. Compare and contrast the efforts of agents with direct marketing efforts to reach potential
consumers.
Students’ answers will vary. They might discuss the differences in types of consumers
who might be served best by working with agents, and those who might prefer to receive
their information via the Internet or other direct marketing pieces. They might also
mention the benefits of using the different methods.
Note: Some students may include more than one channel for direct to consumer. 800-call
centers are one channel with the customers calling in, and the Internet is another channel.
3. Discuss the various ways that Progressive has had an impact on the insurance industry.
Responses here should focus on the innovations that Progressive has pioneered in this
industry. Progressive was the first insurance company to:
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start a website.
sell an insurance product on the Internet.
provide an easy comparison to competing company’s products.
offer online claims services.
include a “call me” button on the website to speak with a representative.
provide text messaging bill reminders.
provide concierge claim processing.
put response vehicles on the road.
Teaching Suggestions
Lead a discussion that centers on the synergy achieved through promoting the direct-to-consumer
channels with mass-media advertising. How did this benefit the agency channel? One point that
should be brought out is that even after selling online for over 10 years, the agency channel still
comprises 65% of Progressive’s business and is much larger than it was pre-Internet. Be sure that
the discussion touches upon how choosing to go with a dual-channel strategy could produce
significant channel conflict. How might Progressive’s direct strategy have clashed with the
agency network?
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Segment 11: Reebok
Summary
Reebok recently turned its attention to the youth market, repositioning itself as an edgy, fresh
company. To reach young consumers, Reebok builds programs with individual retailers, relying
heavily on their partnerships to help differentiate the brand.
Discussion Questions
1. Visit Reebok’s Web site and search for retailers near you. What types of retailers does
Reebok rely on to sell its products? Are there any additional retailers that Reebok should
consider working with?
Reebok sells its products through self-service shoe sellers, like Rack Room and DSW Shoes
and limited-service retailers, like Sears. In essence, Reebok sells its products through every
retailer available. Reebok products are sold in department stores (Macy’s) and specialty
stores, like Foot Locker. Reebok also sells direct to consumers through its own outlet stores.
2. What consumers does Reebok target? How does the company reach these target consumers
to build relationships?
Originally, Reebok targeted women who were interested in aerobics. In recent years,
however, Reebok has turned its attention to the youth market. They use music, fashion, and
shoes to reach young people. In addition, Reebok created a new brand RBK to create a fresh
appeal. Reebok ads feature rap stars like 50 Cent and Jay-Z. Such entertainers make Reebok
an edgier brand that appeals to youth.
3. Do you think that Reebok’s chosen retail outlets are the most effective places to reach the
company’s targeted consumers?
Student responses may vary. Reebok still sells its products in department stores that appeal
more to adults than to youth. However, the products are also available in specialty stores that
might cater to the young people Reebok is after.
Teaching Suggestions
1. Ask students to compare Reebok’s marketing strategies (using entertainers as spokespeople)
with Nike’s (using athletes as spokespeople). Is one a better choice for reaching the youth
market?
2. Have students visit several different types of retailers that carry Reebok products. Encourage
them to compare how Reebok products are displayed and sold at each different retailer.
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Segment 12: StrawberryFrog: Behind the Scenes of an Advertising Campaign
Summary
Asics is a $1.3 billion global sporting goods manufacturer known for its technologically
advanced running shoes. Consumer desire for older Asics shoes led the company to realize that it
had a product people wanted, and it needed an agency to help manage the brand; enter
StrawberryFrog.
StrawberryFrog, one of the hippest new agencies in the advertising world, and Onitsuka Tiger,
retro sneakers with a real history that appealed to a very specific and hip demographic. The
challenge was to find a way to reach the ”sneakerhead” demographic without actually selling to
them or seeming too obvious. Budgets were a fraction of competitor budgets, so the ongoing
campaign focuses on Web sites, independent film projects, cutting edge print campaigns, viral
marketing, and innovative promotional pieces. This video examines three of the most successful
parts of the overall effort to date: “The Running Fish Gutter,” ”Hero Breath,” and the “Kill Bill”
promotion. As a result of its hard work, StrawberryFrog has exceeded Asics’ expectations in
Europe.
Discussion Questions
1. How did StrawberryFrog use The Running Fish Gutter film to overcome the challenge of
reaching the “sneakerhead” demographic?
The short film successfully blended advertising and entertainment in order to attract the
“sneakerhead” demographic turned off by traditional mainstream media. Distributing the
message via the film festival circuit allowed the agency to reach the demographic without
having to rely on more traditional and more expensive venues, like commercials. The agency
also gave the film an online presence, as the “sneakerhead” demographic is extremely Web
literate. In the end, approximately nine million people saw the film.
2. What role did public relations play in the success of the “Hero Breath” campaign?
StrawberryFrog designed the “Hero Breath” around the 2004 Olympics, designing three
innovative promotional pieces that told the story of three different shoes. The agency then
sent these promotional pieces to opinion formers and journalists writing about the 2004
Olympics. The buzz surrounding the cans created enormous demand, and the pieces
eventually started appearing on eBay. The public relations effort alone won the “Hero
Breath” campaign a Silver Lion at Cannes.
3. In your own words, discuss the importance of coincidence and timing in a viral marketing
campaign. How did StrawberryFrog turn coincidence into a successful ongoing promotional
effort?
The story of the Onitsuka Tiger “Kill Bill” promotion is one of happy coincidences;
StrawberryFrog and Onitsuka were planning a special edition of the tai-chi shoe. At the same
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time that Onitsuka was honoring the death of Bruce Lee, a long time Tiger fan, Quentin
Tarentino was in pre-production for Kill Bill. Because the Onitsuka Tiger was the brand and
provided products for the film, the agency could host film premieres, capitalizing on the
interest generated by the product placement. This led to the agency developing additional
promotional pieces to build on those opportunities. Again, students should be aware of the
concept of cultural literacy and its importance to advertising and integrated marketing
communications.
Teaching Suggestion
Have students (individually, in pairs, or in small groups) identify other forms of successful
product placement in the movies or television. Have each team explain to the other students what
made the placement successful. Next have the students try to identify either a real or fictitious
example of product placement when there is not a match between the product and the movie or
its audience. What harmful effects could this have on the campaign? The brand? The advertiser?
The agency?
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Segment 13: StrawberryFrog: Inside an Advertising Agency
Summary
StrawberryFrog, based both in Amsterdam and New York, has quickly established itself as a new
breed of advertising agency. Smaller, more nimble, yet global in focus, the frogs serve as an
alternative to what they like to call the “dinosaur agencies.“ StrawberryFrog is a young, hip,
global ad agency that services clients and hires employees all over the world. This video segment
visits the Frog’s Amsterdam offices to gain a better understanding of how an advertising agency
is structured.
The video focuses on five main functional areas that are common to most agencies: account
management, account planning and research, creative development and production, media
planning and buying, and internal services. Students will learn exactly what types of positions
exist and what skills they require. For additional movies, visit www.strawberryfrog.com.
Discussion Questions
1. In your own words, describe the term cultural literacy. Discuss the value of cultural literacy
in the StrawberryFrog agency.
Cultural literacy includes keeping current on the latest movies, bands, and other trends.
StrawberryFrog uses cultural literacy to set trends and to pick up on trends before they
become popular. Cultural literacy is particularly valuable to an agency’s credibility—
without it, the client will not believe you.
2. What does the StrawberryFrog agency consider a “dinosaur agency”? How does the
StrawberryFrog agency differentiate itself from a ”dinosaur agency”?
A dinosaur agency is a very large, traditional, full-service agency that has a tendency to
be very Anglo-American in its outlook. It is sometimes difficult for this type of agency to
meet the rapidly changing needs of its clients (particularly in new media), and they often
wind up outsourcing projects to smaller, specialized agencies. StrawberryFrog utilizes
freelancing to work with the best talent; this allows the agency to be truly multicultural in
its approach. For example, technological advances allow graphic designers half a world
away to submit work for clients around the globe.
3. Most agencies have an internal services function that is responsible for accounting, human
resources, traffic, and so on. How does StrawberryFrog approach internal services compared
to most traditional advertising agencies?
Operations manager Wendy Byrne focuses on the behind-the-scenes aspect of the agency,
making sure that shoots are insured, creating and managing office space, and maintaining
the corporate culture of the agency. These duties are typically outsourced, and personnel
issues (hiring/firing/training) are typically handled by the human resources director.
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Teaching Suggestions
Divide students into partners or groups. Have a spokesperson contact one or two advertising
agencies. Question one or more key people about the changes that have taken place in their
agencies and the industry during the last five years. (Prepare a list of questions ahead of time.)
What kinds of changes do they expect in the next five years? Have each team write a three- to
five-page agency profile/comparison.
Students should begin thinking about the direction of their careers early on. Have each student
identify the ideal position he or she would like to have in an agency (creative director, account
planner, etc.) and write a brief summary of the job duties this person would have. Then have
each student identify his or her favorite ad and the role the ideal position played in creating that
ad.
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Segments 14-17: Fallon/Senn, Parts 1-4
Summary
The four-part segment can be shown together or with separate chapters. (See the video grid that
accompanies this guide.)
Part 1: Principles of Creative Leverage
Fred Senn, co-founding partner of Fallon Worldwide, expands the discussion of the principles of
creative leverage that are found in the opening pages of Part 2, pp. 98-99. He talks about the
importance of defining a communication problem that can be solved, the value of finding an
emotional way to communicate with the consumer, and outsmarting vs. outspending the
competition.
Part 2: Trends
Senn discusses trends in the industry. Some topics include the Internet and the importance of
word of mouse, new media, YouTube, and how to stay current in the business.
Part 3: Strategy and Creativity
In this section Senn explains how strategy and creativity work together, the value of awardwinning work, the role of humor and the future of creative leverage.
Part 4: Career Advice
Senn describes characteristics aspiring advertisers should possess to make it in the business.
Discussion Questions
1. Give an example of advertising that effectively finds an emotional way to connect with
the consumer. Do you agree with Senn that an emotional approach can give your produce
and edge? Why or why not?
Student answers will vary. The MasterCard and the Apple’s “Get a Mac” campaigns
might be mentioned. Connecting with people emotionally helps start the conversation.
2. What trends in marketing communication does Senn mention? How does he suggest
staying current in the business?
Some trends include: Internet and word of mouse, other new media such as YouTube
Senn suggests that people become a sort of cultural anthropologist to make an effort to
try to understand the consumer in an changing environment.
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3. What is the relationship between strategy and creativity?
Creativity starts in strategy that is rigorous. Winning creative awards is good for the ego,
but what really counts producing results for the business, says Senn. Using humor as a
creative strategy can be good because it can engage the audience; however, funny
advertising that does not accomplish the business objectives is just an expensive joke at
the client.
4. What are the characteristics of people who will prosper in marketing communications,
according to Senn? What can you do to develop these characteristics in yourself?
He thinks those successful in the business need to be intelligent, able to see the entire
landscape, understand music and other aspects of the culture, be collaborators, and
energizers. He thinks they should have a sense of self and a sense of group. They should
raise the level of thinking and the level of energy.
Teaching Suggestions
Ask students to find award-winning ads along with evidence that the ads were effective. Discuss
these in class. (The Winners Showcase on the Effie web site, www.effie.org, offers case studies.)
Consider showing the fourth part of this segment with the fourth part of the Fallon/Buckner
segment to discuss the importance of teamwork.
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Segments 18-21: Fallon/Buckner Holiday Inn Express, Parts 1-4
Summary
The four-part segment can be shown together or with separate chapters. (See the video grid that
accompanies this guide.) All four parts feature Mike Buchner, Chief Operating Officer at Fallon
Worldwide, Minneapolis, who spent ten years of his career on the Holiday Inn Express account.
Part 1: Winning the Account
Buchner gives the history of winning the Holiday Inn Express account and explains the research
underlying the award-winning work.
Part 2: Creative Development of the Account
In this part, Buchner describes how the creative team came up with the concept and the famous
line, “No, but I did stay at a Holiday Inn Express last night.”
Part 3: The Showerhead Campaign
This part of the segment explains the thinking behind the part-opening case for chapter 6, the
Holiday Inn Express Showerhead campaign.
Part 4: Teamwork, Advice to Students, the Future
Buchner gives insight about working in teams, the importance of balancing what he calls the
emotional quotient and intellectual quotient and the importance of creativity in a digital world.
Discussion Questions
1. What is the key consumer insight used as the basis for this campaign and how did it
emerge?
The Fallon team studied the target audience, a group it named Road Warriors. These are
people who took great pride in working hard for their companies and making smart
business decisions. The Fallon team linked that trait with the Road Warriors’ decision to
“Stay Smart” at Holiday Inn Express.
2. How complicated was getting approval for this campaign?
The creative department had to get approval from the creative director, internal teams,
client, client constituents, franchisees, distributors, advisory boards, and a CEO. Getting
approval isn’t always an easy task.
3. What research underlies the Holiday Inn Express “Showerhead Campaign”? How does
this campaign link to the “Stay Smart” campaign?
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Holiday Inn Express research suggested that a great shower experience could help build
brand preference. Surveys indicated that the bathroom experience could be a
differentiator for guests. The headline, “You do your best thinking in the shower” links to
the “Stay Smart” campaign and underscores that the patrons continue to make smart
choices by staying at the Holiday Inn Express.
4. What is the EQ/IQ that Buchner talks about?
It stands for Emotional Quotient and Intelligence Quotient. Buchner suggests that
aspiring advertisers ought to balance their ability to create messages that reflect a rational
approach (providing information) and an emotional approach (engaging audiences) in the
advertising.
Teaching Suggestion
The Holiday Inn Express campaign, which broke in 1999, has incredible staying power. Ask the
class to discuss if and when they think the direction of the campaign ought to change. Ask them
to create another commercial for account in the style of the “Stay Smart” campaign.
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Segments 22-24: How Frontier Became “A Whole Different Animal;” Frontier Airlines
“Flip to Mexico;” Frontier Airlines “Denver’s Favorite Animal”
Summary
This piece explains how Frontier used talking animals to communicate its message and create
brand preference for its fleet of planes. “How Frontier Became ‘A Whole Different Animal’’
includes interviews about the origins of this award-winning advertising. “Send Flip to Mexico”
and “Denver’s Favorite Animal” campaigns show innovative approaches to involve consumers
in the communication process. The campaigns are used as the opening case studies for chapters
12 (“Flip to Mexico”) and 16 (“Denver’s Favorite Animal”).
Discussion Questions
1. Ask students if they think the campaigns are effective, and if so, why.
Student answers will vary. They may mention the use of humor, involving the consumers
and interactivity of the campaigns, the IMC approach.
2. How did the campaigns take an IMC approach?
Messages were integrated. In addition to traditional television advertising, Grey
Worldwide incorporated public relations events to create its entertaining and awardwinning campaign.
3. How did “Denver’s Favorite Animal” drive consumers to buy tickets on the Internet?
Was this effective? If so, how?
The campaign featured a web presence on the Frontier Airlines site that invited visitors to
interact with it.
Teaching Suggestions
This segment can be used to help explain concepts in chapter 12, such as benefit, promise, and
message formulas. It also demonstrates how different aspects of the IMC process can contribute
synergy to the brand message. Ask students to think about how this differentiates Frontier from
its competition. Imagine that Frontier is opening routes to Alaska. Let students work in groups to
plan the next generation in this campaign for Frontier to promote trips to Alaska. What media
might be involved? What might the message be?
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Segments 25 and 26: Weintraub, Coors, Parts 1 & 2 (“Marketing is More Art than
Science” and “Advertising Effectiveness”
Summary
This segment includes two excerpts from a “Marketing 101” presentation for new Coors
employees made by Bill Weintraub, retired vice president for marketing, Coors.
Part 1: Marketing Is More Art than Science
Weintraub offers a set of principles for creating brand equity, including:
• Marketers are advocates for consumers, and they should strive to understand
consumers.
• Marketers are an idea source.
• Thinking is creative, not linear.
• Marketers think broadly and nationally.
• Marketers should strive for making the brand distinctive and look for clever angles to
communicate that uniqueness.
• The goal is to increase brand longevity.
• Success is measured by market share growth.
• Thinking is long-term and strategic.
• The focus should be on continuous improvement.
• Research is used to draw insights and guide – not dictate – decisions.
• Marketers should strive to build partnerships with ad and promotion agencies.
• Marketers should have a bias for action.
Part 2: Advertising Effectiveness
Weintraub explains the difference between advertising that entertains people and advertising that
stimulates behavioral change.
Discussion Questions
1. Which of the principles that Bill Weintraub offers (in part 1) do you think are most
pertinent in today’s marketplace?
See list above. Students’ answers will vary.
2. What is the role of research in marketing (part 1)?
Research helps guide decisions, but it doesn’t dictate the decision.
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3. Can advertising be entertaining and effective? Explain.
The goal of advertising is to create behavioral change. The primary goal is not to be
entertaining. However, effective advertising can create behavioral change and be
entertaining. The iPod campaign serves as an example. There are, of course, a multitude
of others.
Teaching Suggestions
Ask students to think about a product that they recently bought. Why did they buy it? What role
did advertising play in the decision to buy? Can they even say why they bought it? Could it be
several things influenced their decision, some of which they may not be able to articulate. Did
you buy it because the advertising was entertaining?
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Segments 27-31: Lewis, Dunkin’ Donuts, Parts 1-5
Summary
This segment is part of the “On the Brink of Greatness” speech delivered at a franchisee
convention held in Las Vegas by Regina Lewis, Vice President, Consumer Insights, for Dunkin’
Donuts.
Part 1: Iconic Brands
Mountain Dew, BMW, Target. What do these iconic brands have in common? Lewis says they
share three characteristics. 1. They offer a powerful product experience that fits in the lifestyle of
the consumer. 2. They communicate effectively because they stand for something. 3. Their
timing is good.
Part 2: Consumer Culture
In this part, Lewis identifies salient characteristics of the American culture post 9/11 and Katrina
that align with characteristics of Dunkin’ Donuts. She says we live in a world of “too” – too
many choices, too many things to do, etc. This has caused consumers to reevaluate priorities and
appreciate the need for community and simpler things in life.
Part 3: Our Competition
Starbucks is identified as Dunkin’ Donuts’ competition. Lewis says that competition brings
power to your brand.
Part 4: The Dunkin’ Donuts Dream
Lewis recounts the story of a loyal customer who sent a picture of herself dressed as a Dunkin’
Donuts product. This, according to Lewis, is a sign that the brand is powerful because it’s being
internalized. She says the timing is right, the rational and emotional pieces are in place for
Dunkin’ Donuts to become an iconic brand.
Part 5: One Global Brand
Lewis concludes that Dunkin’ Donuts needs to be better brand stewards and make sure the
message communicates what a great brand it is. She says the pieces are in place. The human
connection is there. What needs to happen to become an iconic brand is that “we be ourselves –
down to earth, fun – and show what we stand for.”
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Discussion Questions
1. Name some iconic brands. Do they have the same characteristics that Lewis describes?
The characteristics of an iconic brand, according to Lewis, are:
A. They offer a powerful product experience that fits in the lifestyle of the consumer.
B. They communicate effectively because they stand for something.
C. Their timing is good.
2. Do you think that Dunkin’ Donuts has become an iconic brand? Explain in terms of the
characteristics of iconic brands that Lewis mentions.
See previous question for the characteristics.
3. Lewis mentioned Starbucks as its competition and said that “competition brings
power” to her brand, Dunkin’ Donuts. What does she mean by this?
Starbucks leads the competition and was the first to recognize a void that it could fill with
places people could go to drink coffee and be seen with other people. It created a sense of
community. It also caused Dunkin’ Donuts to rethink how consumers connected with its
brand.
Teaching Suggestion
Have students visit several types of coffee shops such as Dunkin’ Donuts, Starbucks and a local
coffee shop. In what ways are they alike? Different? If they created an ad for each brand, what
would the ads say?
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Segment 32: Billings/John Brewer: Billings Is Changing
Summary
John Brewer, president of the Billings (Montana) Chamber of Commerce created a video to
rebrand the Chamber. This short piece uses chamber employees and community leaders to
explain how the Chamber is helping recruit visitors to Billings, benefiting members and
becoming partners with others in government affairs. The message is that “It’s Billings” with a
new look, a new attitude and a new vision for tomorrow.
Discussion Questions
1. How might this video be used effectively?
Answers will vary. One possibility is to have Brewer show this at meetings such as
Kiwanis and Rotary.
2. In addition to the video, what other public relations tactics might Brewer employ to
communicate his message to enhance the work of the Billings Chamber of Commerce?
There is not one right answer.
3. Does the video do an effective job communicating the message that the Billings Chamber of
Commerce is changing? Why or why not?
Answers will vary. The use of city leaders can be an effective way to give credibility and
support the Chamber’s claims.
Teaching Suggestions
Students can investigate how their town or city is promoted. If it has a chamber of commerce,
they can identify tactics it uses. Have the students form small teams to create a plan to promote
their area to visitors. What would their strategy and tactics include for the campaign?
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Segments 33-42: Commercials
Summary
The commercials offered in this Video Library can be used to illustrate concepts from the text at
various points throughout the semester.
The commercials in this Video Library are:
Great America Advertising Project: Radio Ranch
U.S. Air Force
Harley Manning “Design Personas”
Framsokn
Keep America Beautiful
Sorpa “Speaker”
Doritos “Check Out Girl” Super Bowl
Metro Recycling Campaign
GEICO “English Muffin”
Charmin Bear
Discussion
Some opportunities for discussion include:
• How does the commercial tell the story?
• In what ways is the commercial effective?
• Discuss the emotional and rational aspects of the commercial.
• What information do you learn in the commercial that viewers might find useful?
• How might the message be presented in other media such as newspapers, magazines, Internet,
and radio?
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