X & Y

Generation X and Y are a huge American market that may not be marketed to in the best way possible. Do companies really know the audience representing this audience? Some may, but not all companies marketing to these groups are as effective in reaching this population as they could be.

Generation X, people born between 1965 and 1976, have been known to be independent and skeptical. At this point in their lives, Generation X'ers are a more mature audience. They are settling down and many of them are engaged in family life. These people are currently in today's job world and have become a "wired" group. They do not respond to traditional media as the generations before them have.

Generation Y, people born between 1977 and 1994, are known more for being optimistic and positive as a whole. They are harder to reach through traditional media and are more educated when it comes to marketing. This group is not easily fooled and are marketing savvy. They also tend to be less brand loyal because this generation grew up with so many options.

Generation X and Y make up about 42% of the US population, but the question is how do you reach these groups if they show limited response to traditional media? One effective method actually does come from a traditional source. Michael Fleischner recently wrote about the success of direct mail when targeting generation X and Y. Direct mail is certainly used to advertise in today's age, but the response from this traditional source is shockingly high. About 87% of generation X and Y bring in the mail each day it is delivered, with a very high percentage using coupons received in the mail. According to the study Fleischner wrote about, X and Y's say that 75% of the mail they receive is "valuable."

These high percentages indicate how well received mail is in the eye of these consumers. If 42% of the population rates mail that high as a way to reach them, more companies should take advantage of it. However, the success of direct mail could easily be lost if too many companies caught on to this effective communication medium. Mail would turn into a clutter making each piece of direct mail less important to its receiver.

The real success of direct mail, aimed at the people from generation X and Y, comes with the online content that they are directed to. These generations are very influenced by the Internet. Their daily lives are dependent on the Internet. These wired generations use the Internet to shop, communicate, research and educate themselves. Successful companies have been supplementing their direct mail with the Internet. Direct mail, many times, gives the consumers motivation to visit their site. They can offer contests, sweepstakes, discounts, and more. Direct mail will not work by itself with this market. It can be very useful if it is integrated into a marketing mix that reaches the target audience.

What's Wrong With U???

What's wrong with you? That is the question Microsoft is asking the Asian market referring to the low sales of Xbox 360's in that region. Microsoft set up a website called whatswrongwithu.com to generate interest in their video game console.

The site brings you to 4 links of different languages, three of which are in Asian. The other says Singapore and the content off that link is in English. According to a blog I read about the website the three countries that are being targeted with the site are Taiwan, Hong Kong, and Korea. These are most likely the other 3 links. These large Asian markets have been virtually unresponsive to the Xbox 360. They have shown a much greater interest in the Playstation 3 from Sony. This unusual marketing tactic seems a little harsh and disrespectful to its audience.

I find this website to be offensive. If I were someone in this Asian market this site would do nothing more than turn me away from this product. Microsoft is saying that because sales of their product are down in one area of the world there is something wrong with these people. The site tries to highlight things that the market is interested in such as "Great Japanese Games," but I find this approach degrading. One headline of the site says, "Xbox has it all! What else are you looking for?" I feel that the site is almost talking down to the people its directed at. From the title to its structure, the site is degrading to the audience that it needs the most help from.

I believe that this site is counterproductive because of how Asians will perceive the site. In addition, the site is very pushy at getting personal information. I understand that they would like to know more about their Asian audience to better serve them, but they are very forward with the process. First, they ask for an e-mail address and you cannot navigate away from the page without giving your e-mail or exiting the site. Once you give your e-mail another window appears that says "We want to know more!" The site is not only degrading, but it is pushy and invades the privacy of its visitors.

This odd marketing tactic gets my thumbs down. I think it is very ineffective. There are numerous alternatives to increasing Asian sales dollars and Microsoft messed up with this marketing strategy.

The LeBron Brand

LeBron James is a basketball superstar, but is he a global icon? Not yet anyway, but that's his plan. LeBron may be good at basketball, but he also knows what he's doing when it comes to marketing. He is the face of many brands like Nike and Coca-Cola to name a few. He has landed his huge endorsement deals by marketing himself. As a teenager breaking into the NBA right out of high school, LeBron was looking for single endorsements, but now he is getting serious.

LeBron is now a part of legitimate marketing firm called LRMR marketing. His business partners are three childhood friends helping LeBron reach his global status through many business ventures. The firm started up after LeBron's much talked about split with former agent Aaron Goodwin.

"As we're building our relationships, I don't look at it as endorsement deals," said James. He is looking at his endorsers as partners in building his business empire. LRMR invited LeBron's endorsers to get together to discuss how to slowly build the LeBron brand. LRMR understands that this will be a process requiring time and patience. LeBron set his goals very high and his business associates understand.

His main goal at this point is to become a global icon by the date 08/08/08. This day marks the day that Team USA arrives in Beijing, China to kick off the 2008 Summer Olympics. LeBron wants to be a global icon walking into China. He wants to be known by everyone in the world by name. At the meeting with his endorsers the material he handed out displayed this date with no explanation. At the meeting they revealed the goal and tried to formulate a long-term strategy. He also handed out black Nike T-Shirts with the word "Witness" printed on it, referring to everyone who will be a witness to his greatness. This was part of Nike's new campaign for "King James."

LeBron has plans to be in a category with Muhammad Ali and Pele as athletes who went beyond sports and were known as icons. Along with his impressive line-up of endorsers, LeBron has other marketing plans to boost his status. He has a marketing scheme called "Go Inside." The campaign highlights social responsibility including charitable work that LeBron is currently involved in.

LeBron seems to be growing extraordinarily fast in the states and his global efforts are on the rise. He has done so much to get his name and face out there. He is still young and has the potential to reach his global icon goal.

Pepsi Gets Personal

Pepsi's 2007 marketing campaign called for a few changes; 35 to be exact. Pepsi is taking a new approach to marketing this year that will deal with their packaging. This campaign calls for the Pepsi bottles and cans to change their look every couple of weeks. Since its birth in 1898, Pepsi has changed the look of its containers a total of 10 times. This year alone they plan on changing the look 35 times with different themes to catch the eye of shoppers.

The bottles and cans will all feature the globe-shaped Pepsi logo and traditional lettering, but the background of the cans will constantly change. The backgrounds will show different themes that Pepsi has found its target to be interested in. I recently read a blog that quoted the company as saying the goal in continually changing the containers is to “reflect themes close to the hearts of teens and young adults, such as sports, music, fashion and cars." The change that this marketing scheme offers intends to excite the consumer. They will soon realize that the cans are changing their look. They will be excited to see what the next design will look like when its displayed in stores.

Because the cans feature hobbies the target is interested in, such as sports and music, they will take the time to see what is on each new can. The extra time the consumers spend observing the new look of the can is also extra time that they can think about buying cool, refreshing soda.

Pepsi is also using the new cans to make the consumers feel connected to the company. A sports enthusiast who sees a basketball background may feel like the company is really taking the time to get to know their customers. Pepsi knows what they like and they try to encorporate consumer intersts in their product. This strategy tries to give the consumers the impression that Pepsi cares about them by making the cans more personal.

The bottles and cans will also have internet addresses printed on them. These addresses will lead consumers to online activities including games, contests, and sweepstakes. The sites also will also invite consumers to help design projects including a Pepsi billboard to be placed in Times Square and a new paint scheme on the Pepsi sponsored NASCAR racecar. These interactive components make consumers feel more connected to the company. The sites give the consumers the opportunity to be involved in the company. Someone who works on the new paint scheme seen on Pepsi's racecar will be more loyal to the brand because they feel connected.

The campaign is set to launch this month. Check out the new look of Pepsi cans and the interactive websites.

Cartoon Network President Cracks

Unless you have been living under a rock for the past week and a half you know all about the marketing stunt that cost Turner Broadcasting and their marketing company $2 million. The Cartoon Network attempted to create some buzz about their upcoming movie for the Aqua Teen Hunger Force. They hired Interference Inc, a marketing firm that set up glowing billboards of one of the characters from the movie. They set up in several major US cities, but they encountered some controversy in Boston.

Some people in Boston thought that the glowing billboards looked dangerously close to bombs with the wires hanging out of the back. They were also located in places like subways and under bridges where bombs have been known to be, which is scary in the world we live in today. The publicity the event got was great for the movie. The audience for this movie is filled with rebels who loved the stunt. Turner and Interference were fined for the stunt, but the fine was well worth it for the Cartoon Network. The story blew up and exposure they received for the stunt was huge.

Turner and Cartoon Network have been under heat the past week and a half and it finally became too much for Cartoon Network president Jim Samples. Samples sent an e-mail to network employees saying "I feel compelled to step down, effectively immediately, in recognition of the gravity of the situation that occurred under my watch." He was under fire, and was probably on his way to being fired. In an attempt to keep some of his credibility he stepped down before he was let go. The event in Boston caused so many problems that it became too much to handle for Samples. He had to deal with the legal difficulties that arose from the incident, the large fine, and the public relations disaster that was created.

The buzz about this event was what eventually led to Samples' resignation. The story blew up because it peaked the interest of so many audiences. Everyone wanted to know more details about what Interference Inc. was thinking, if they intended any of the effects that occurred in Boston, and everything that the story was about. The news traveled fast through many different media sources and the nation was kept on top of the story all week long.

Targeting Young Males

The young men demographic, age 18 to 34, is one of the hardest groups to reach with traditional advertising. This demographic is not watching enough television, listening to enough radio or reading enough magazines for these types of media to be effective. Advertisers have had to think outside the box to reach this group. Scion is one brand that has been at successful using non-traditional methods to reach this target audience.

I recently read an article explaining the strategy Scion took to reach this target. Scion had a very successful campaign that peaked the interest of people new to the car market. Many people in this demographic are buying a new car for the first time and car brands like Scion can cash in. Scion is a hip new car brand that catches the interest of young men. They are stylish and have a uniqueness to them. Scion decided that if they wanted to reach this target they had to use alternative routes. Their strategy was going out into the environment where their target could be found.

They set up an area outside of a music store with three or four of their cars in a few major cities. Potential buyers could stop by, sign up and get a free ten minute test drive of one of the model cars. They also gave away merchandise, which is always a good way to keep the brand in the consumers' minds. They are always reminded of the brand when they see this merchandise with the brand's logo on it. This is a very successful strategy because of the comfort the environment creates. They are scaring these people off by pressuring them into buying a car. Simply being at a dealership puts pressure on the consumer, but Scion's idea gives the consumer the chance to really get a chance to learn about the product without the pressure found at dealerships.

Scion is also using other promotional strategies to further reach consumers. They have sponsored numerous night club events, which is a perfect way to reach their target market. Their brand fits perfectly with the night life, bachelor theme. Even though the target is harder to reach through traditional media, Scion advertises on television and in magazines because there is still a huge audience base. Consumers who attended the test drive event can be reinforced by the tradition commercials. The combination of all their different types of marketing has been fairly successful.

As someone in this target market I am attracted to Scion because of everything it represents. The cars go with the lifestyle of many people in this target. They are sleek, futuristic looking cars that peak the interst of young men. I think that they have positioned their brand effectively and their marketing is consistent with everything that the brand represents.

Super Success

Superbowl Sunday is just as well known for the much anticipated commercials as it is for the game. Companies spent $2.6 million dollars on each 30 second commercial aired during the game. Companies are aware that CBS will draw a huge audience, but is the $2.6 million really worth it?

The companies advertising in the Superbowl get more exposure than meets the eye. Companies know that they are reaching a wide audience and save their best commercials for this night. Viewers, on the other hand, know these commercials are always entertaining. Some people watch the game strictly for the commercials. Non-football fans get just as much entertainment as football fans on the commercial breaks. From my own experience, whoever I'm watching the game with always pays close attention to the ads. Everyone quiets down and pays close attention to the ads. Then, everyone critiques the ad. The close attention paid to these commercials creates a buzz.

In each one of my classes today students were talking about their favorite commercials, which one was the funniest, and which ones were complete failures. I got a few e-mails from people at home raving about which commercial they are still laughing about. These commercials are so heavily scrutinized by all the viewers that they are bound to create buzz no matter what. So many people share the these ads and want to give their opinions to friends about them. They stir up conversation between friends, co-workers, students, and more. So these traditional TV ads turn into work of mouth advertising that is effective enough to charge companies $2.6 million dollars for a 30 second advertising spot.

In short, the extraordinary amount of money these companies spend on Superbowl Sunday are definitely worth it. The buzz these commercials generate is so important for the growth of these companies.

Have you seen the purple cow?

I recently watched a video presentation by Seth Godin about Google and its continued success in marketing. He spoke about how marketers must find a way for their products to tell a story. A product can distinguish itself from the competition if there is a story worth telling about that product.

Seth gave the example of socks. Socks are socks. Not many people are interested in what socks are setting the trends. But, what if the socks could tell a story? He introduced a company that sold socks that didn't match. Two different colors, two different designs, an no matches. These socks, marketed to 11 year old girls, allowed for these girls to go to school and tell their sock story. One girl shows another girl her funky socks and the chain reaction begins. The next thing you know, all the girls are showing off all the different colored socks they have. The story the girls are able to tell causes the strong buzz that marketers are looking for. The girls respond to the fun they can have with something as simple as a pair of socks.

Now you must be wondering, purple cow? Seth told a story about how his kids were rambunctious on a car trip when he noticed that they suddenly became silent. He noticed that they were looking out the window at a cow. But, five seconds later they went back to their obnoxious behavior. He went on to imagine, what if the cow was purple? This would be an amazing sight that would keep their attention. He would have pulled the car over to get a better look. They would go over to the cow to make sure their eyes were not deceiving them and they would touch the cow to be able to say "I've touched a purple cow!" This is what marketers are trying to do: portray their product as something capable of telling a story.

Google has been very successful with buzz marketing. Everyone knows about Google! but why? Google is so user-friendly. It gives you exactly what you want with many options. Everyone can relate to Google because it is personal. What sets Google apart is that people care about Google. People have created their own verb heard in everyday conversation related to the site. If someone wants to know more about something many times I will hear people say I will "Google it." Searching something online has become synonymous with this site and word of mouth has propelled their extraordinary growth over the past few years.