Recalibrate your marketing mix
As we entered the 2000s, it was obviously time Marketing for new ways to connect with customers.
Google, TiVo, XM Radio – the landscape was shifting under our feet. The Mad Men model of ad campaigns was no longer the gold standard. Marketing departments were fragmented, brands were yelling over top of each other with too many messages at too many people. The CMO stepped into the limelight at F500 companies to unify teams, budgets, and re-calibrate the marketing mix.
After 50 years of independence and cannibalization, combining the marketing mix under corporate marketing executives allowed companies to watch, manage and measure all marketing functions, both new and old, as a single entity. As detailed by Coke COO Steve Heyer at a 2003 conference, they saw seven factors changing the game:
- the economic landscape around media cost-efficiencies
- the escalation of traditional marketing costs
- the trifect of media fragmentation, media ownership consolidation, and wholesale unbundling
- the erosion of mass markets
- the empowerment of consumers who have new abilities to edit and avoid advertising
- a consumer trend toward mass customization and personalization and
- the emergence of an experience-based economy
Twenty years later we know marketers only buying reach and frequency are dinosaurs. The new marketing mix integrates an ever-expanding variety of touches for a consumer, interactions with a brand that build a relationship over time. From Pepsi’s Director of Alternative Beverages: “Experiential marketing is about showing customers that your brand wants to be a part of their lives.”
The accepted marketing mix of advertising, promotion, direct marketing, e-mail marketing, online advertising and social media has reorganized to include Experiential Marketing (EM). But it’s not just taking a place in line — it’s becoming the thing around which all the others revolve and by which they are strengthened.
Why does it work?
- carries the strength of many — leveraging the best part of each traditional marketing function and laser-focusing it on an in-person impactful consumer experience.
- is Unstoppable — face-to-face connections are unstoppable, undeniable, unbreakable, and most importantly… un-block-able. The human connection cannot be tuned out or ignored like every other push-type of marketing
- is a “singular converter” — in person interactions offer the ability to engage prospects, make them aware of the brand value proposition, create interest and desire, and make a purchase.
- is a “funnel accelerator” — EM converts consumers into customers far faster than traditional multi-silo campaigns.
- drives Lifetime Value (LTV) — EM creates a stronger and longer-lasting bond with the consumer, a more substantive relationship
- is an “engagement multiplier” — because consumers are more hands-on during events, they share the experiences with more people, preference and purchase intent spike, and brand affinity rises.
- is a “force multiplier” — campaigns that lead with EM see other marketing functions benefit significantly from the alignment. Ad recall, web traffic, social media engagement, and even incentive redemption each show increases when aligned with EM strategy.
If you would like to learn more, don’t hesitate to connect with someone on our team.