1. BMW Z3 Session 7 Summer 2008 XMBA 206.1

2. English Fast cars German Adv. Technology Hero Ultimate Driving Machine Drives an Aston Sophisticated Sexist Benefits and Risks of Non Traditional Marketing Benefits • Credibility • More credible than paid for advertising • Efficiency through word of mouth • Leveraging the buzz Risks • Loss of control • Timing • Target audience • Over what is seen • Over what is said • Challenge of translating awareness into sales • Difficult to measure impact

3. Awareness / Visibility Word of mouth, Buzz Involvement / Infatuation Consumer Advocacy Purchase How does NT work? Awareness Interest Excitement Desire, Preference Purchase • Focus on awareness • Leverage the buzz • Cannot fully control what is said and to whom • RELIES ON AUDIENCE SELF SELECTION

4. Traditional versus Non Traditional • Credibility • NT can be more credible have more impact and more efficient when it works. • Budgeting • NT costs can be uncertain • Traditional advertising costs can be better forecasted. • Target market • Traditional advertising can be well targeted through mass media • NT relies on audience self selection • Metrics • Traditional advertising = measurable, reach GRP, frequency = more easily measured by market research. • NT is more difficult to evaluate.

5. Products best suited for NT marketing • Stage in product life cycle • May work well for product launches in conjunction with mass media advertising • May work better for social products

6. Success of NTComparative performance

7. Success of NT ElementsSome examples • Always try to specify quantitative objectives for each element to the extent possible • Important role for campaign evaluation research to understand the sales impact of these programs.

8. Postscript • By Jan. 1996 BMW had to scale down their marketing efforts to avoid potential consumer backlash by not being able to meet demand. • Tactics shifted to maintaining consumer interest • Cinema advertising (60 sec. Teaser placements) • In flight videos targeted at business travelers. • Dealer sponsored direct marketing programs to maintain interest of people on waiting lists. • Launch date March 1996. Selling price in 1997 = 30k to 36k.