[MUSIC] So hey again everyone. We're now in week three, module three. We're talking about targeting and messaging. This is kind of the real fun stuff. So those of you who might not have taken a marketing course before, you might have thought yeah, marketing's all that cool kind of advertising. Well, this is the piece where we're getting to that. So let me go through and give a little bit of an overview, as I typically do, of where we're going to go with this last piece of material in module three. First of all I'm just going to show you some trends and some data how much are we all engaging with various different kind of media. Not just TV, but radio, our phones, the internet, and so on. I'm then going to give you an example of a classic campaign of a product that I grew up with way down in New Zealand, a product that's milk. It's good for you. And then I'm going to go into the example of, I think it's our final acronym, so we've had the five Cs, we've had the four Ps, we've had STP segmentation targeting positioning, now we're going to do the 7Ms. So, there'll be a bit of suspense as all the Ms get rolled out, you can imagine what they might be, but I'm going to go through those, the 7Ms of marketing communication. And then we're going to look at some different kinds of appeals, rational appeals versus emotional appeals. And then finally I'm going to give you some updates in terms of how social media marketing is being done and what's sort of working and not working in that environment. So first of all, the trends we can go through fairly quickly. You might want to dig into these a little more, and to, to discuss them, and also look for some of them online. I think it's very, very interesting and quite instructive. So the first one here, again, these are US data, but I would imagine they would be somewhat common around other parts of the world, too. So first of all, we're all just spending a heck of a lot of time engaged with media, whether it's digital media, TV, radio and print. One of the interesting things to me in this particular graph is that TV has remained pretty flat from 2010 projected through 2013. People still seem to like watching TV, although they may be doing it in different forms now. If you look at the spending, spending on all media is up fairly considerably, again with TV sort of leading the way. And then the final chart I wanted to show you is just the expected increase in marketing that's done on the internet. So, so a change in optimization, display advertising, mobile marketing and so on. And again, when we get to the end of this discussion I'm going to give you some of the latest research on those different types of media that we could be engaging in those different types of technologies. So just to wet our appetites a little bit for what's coming next, I'm going to show you a classic campaign from the United States way, way back when, back in 1992. So the product as I mentioned earlier is milk. So this was the situation that was faced by the Californian Milk Processing Board. Hopefully your companies out there don't look like this, but you can see a fairly precipitous decline from 1987 to 1992. People were just drinking a lot less milk. Maybe they were drinking less coffee. Maybe they thought the milk wasn't so good for them. Whatever their reasons were, clearly consumption of milk was going down and the California Milk Processing Board wanted to try and address this problem. So like all good marketers, they did some surveys and they found that basically people thought that milk was healthy. Most people thought that milk tasted pretty good. And so the goal was to increase the consumption of milk by having people store more milk in the home. So, this is a very, very interesting phenomenon. Maybe you've experienced it in your own household. When you have more product on hand, you tend to use more of it. So if you had a 12 pack of Pepsi in the fridge, you're going to drink a lot more Pepsi than if you only had a 6 pack. You'll start rationing it. And if you're interested in this kind of idea, particularly as it relates to food, go and take a look at Brian Wansink and his book called Mindless Eating. He goes into this in a lot of detail. Very interesting book. So here's a commercial, I'd just encourage you to watch this on your own time. It's a commercial that was put together by the milk processing board, to kind of illustrate the point that it would be very, very important for you not to run out of milk and to have milk in your home. I won't spoil the punch line for you, but the commercial starts with a fairly obnoxious, obnoxious guy probably in some large US city, perhaps New York City, and he's yelling at somebody on the phone and firing them. And just after he does that, he gets run over by a Mack truck. A good ending you might think, but the story continues from there and I'll let you watch that and and see what happens. So as a result of this campaign, it was very, very effective, for the California Milk Processing Board. And you can see some of the metrics here, and also you can see the 7Ms. So, first M is the market. Who was the target audience? Well the target audience was people who currently drink milk. The goal of the milk marketing board was not to try and get non-milk drinkers to drink milk. That might be a more difficult challenge. Perhaps there are people who don't like milk for health reasons, so let's focus on current users. Secondly, the message content. The message content was to encourage people to make sure they have enough milk on hand so that they don't run out. The mission was to try and increase the consumption of milk. If you've got more in the house, maybe you'll drink one more glass per week. The message design, or the creative solution, was around the idea of deprivation, oh my goodness, what's going to happen to my life if I run out of milk, that's just going to be a terrible catastrophe. The media strategy was to use TV and print, of course we're back in 1992 at this point. The amount of money that was spent, I don't have a good indication of that, but clearly money was spent to deliver this campaign. And then this is a very, very important one. Why is this important? Well, there's a famous Philadelphian called John Wanamaker, who in 1928 made a quote, expressed a quote, that probably many of you have heard, and he said you know what? I know half the money I spend on advertising is wasted, so that's a bit of a depressing thought. If you're spending $10,000,000 on advertising in stores, five million's wasted. So that's depressing enough, but then he continues on and he says, and I don't know which half. And this is really the perennial problem of spending money on marketing, is that sometimes, you don't know whether it's effective. And even if it is effective, you're not sure exactly why. That's why measurement is so critical. And that's why I said at the beginning of our time together, we should be thinking about marketing expenditure on advertising and other things, not as a strict expense that's purely negative, but really more like an asset that's going to give us some return in terms of more customer affinity, more loyal behavior, less price sensitivity, more consumption and so on. So they measured two things in particular. And firstly was to do with the execution of the campaign itself. That's important. So how many people could actually remember the campaign within three months of it being shown? And there is a pretty good number. There's 60% of people could actually remember having seen these series of ads about milk. You might want to go and look at some of the other ones, in addition to the one that I've put in the slides. There were some other very humorous and very effective campaigns. And then secondly, you don't want to just measure the effectiveness of the campaign, but you want to measure the effectiveness of what the campaign is designed to do. In this case, to increase sales. And it was actually fairly effective. They generated almost a 3% increase in sales of milk over the period of the campaign, which translates to about $30 million US. Great. So now we have that classic campaign out of the way. Perhaps you have your own favorite advertising campaign that you've been exposed to. What I'd like you to do, if you do have a favorite campaign, is to reflect on that campaign now through the lens of the 7Ms. What do you think it was that the advertiser was trying to do? Do you think the advertisement was effective? How would you have measured that effectiveness if you were the one running the campaign? So again, here are our 7Ms. The Markets, who should I talk to? What's the target segment? The Message Content. What am I going to say? How am I going to position it? The Mission. What are we trying to accomplish here? Thinking, feeling, action type objectives. I'll talk about those in a moment. The Message Design. That's really the creative piece. Are we going to try and be very emotional in the way we do this? Are we going to try and be very rational in the way that we do this? The Media Strategy. Is this going to be a local advertising campaign? A TV campaign? A billboard campaign? All of the various tools available to us to do this. How much money are we going to spend and in particular what return on investment can we expect to get? And then finally the Measurement. This is absolutely critical. You want to measure both the effectiveness of the campaign itself, do people like it, remember it, understand it? And also what was the outcome? Did I sell more, did people like me more as a result, did people change their opinion about what it is that I'm doing? Okay, so we've mentioned this a little bit earlier on, so some of this is going to be somewhat of a recap and a repeat, but I hope that's useful for you too. I'm going to spend most of the time really on the mission and also on the message, that's what we're going to be talking about because it doesn't make sense to give too many other examples beyond milk with the other 5Ms, because they're going to be very very idiosyncratic to the type of product you're talking about. [MUSIC]
