Last generation sponsorships

During the 2nd African Experiential Marketing Summit held on 3 Septmeber, Kim Skildum-Reid from Power Sponsorship in Australia gave marketers plenty of food for thought about the way in which sponsorships are run.

Says Skildum-Reid: "Most sponsorship money in the world is completely wasted; it's not an investment that’s reaping real returns. When talking about experiential marketing, sponsorship is as good as it gets - if it's done right. You can use sponsorship as an incredible authentic experiential building experience."

Best practice sponsorship:
Brand life cycle - it goes on a bell curve. When you have a brand new brand, you need awareness.

• Infancy: Goal: create awareness
• Adolescence Goal: Build relevance
• Maturity: Goal: Build relationships
• Reinvention Goal: rebuild relevance

"Sponsorship for even mature brands tends to get stuck at the infancy stage. Let's be truthful, how many marketers would say that your sponsorships are about visibility? As far as I'm concerned, awareness and exposure are the swear words of sponsorships," says Skildum-Reid.

In 1991, a study was conducted about awareness - respondents were asked 'can you name all the sponsors of this event?' What it found was that even if they could name all the sponsors it didn’t change perceptions and behaviours. Studies since back up the study with the same results.

Skildum-Reid talked about the customer continuum - Start of the purchase cycle - become aware of the brand - understand relevance - try brand - add to repertoire - become loyal - advocate to others and back to the beginning.

"Experiential marketing imbues advocacy and sponsorship and does this better than anything else. With sponsorships, you're sponsoring something that people have decided they already care about so you’re building advocacy straight into it," says Skildum-Reid. She added that sponsorship benefits need to be negotiated and leverage plans put in place for every level of customer relationship.

New-look sponsors objectives
Consumer-centric:

• Customer/consumer needs first
• brand needs probably come third
• Internal buy-in is second.

Make ground by:

• demonstrating relevance
• demonstrating alignment with their beliefs, needs, concerns or self-definitions
• adding value to their relationships

Many objectives but they all come down to:

• changing target market perceptions
• changing target behaviours

"These two things, not dollar value return, should be the goals of sponsorship. If you find yourself directionless with a sponsor or sponsorship, get back to the bare bones again. Don’t be fussing about awareness, go straight to relevance," says Skildum-Reid.

Four generations of sponsorship - which generation are you?

First generations: exposure-driven

Exposure only proves that a brand exists:

• ego-driven
• does not change people's perceptions
• does not change people's behaviours
• inappropriate for all but very new brands.

Second generation: sales-driven

All about incremental sales:

• Measured solely in dollar ROI
• Profit in incremental sales vs cost of sponsorship
• if a sale cannot be traced directly to the sponsorship, it doesn’t count

Third Generation: objective-driven

Uses a sponsorship to achieve multiple marketing objectives:

• Long and short terms

This does work:

• thorough
• measureable

Selfish:

• all about your brand
• lacks heart

"Often times, you end up disrespecting the target market by disrespecting the experience around the events," says Skildum-Reid.

Fourth Generation: Market-driven

• Puts target market needs, wants, and interests first
• Ensures there are multiple, meaningful benefit for you target markets:
• treats them like people, not purchasers
• Win-win-win.

"It is no longer that the sponsor and sponsee wins. It is now sponsor, sponsee and target market win. When I say event experience - I don't mean just when they punch the ticket in and that it stops when they leave the event. The event experience is way beyond the bounds of an event. The experience of being a fan, art lover etc, does not end when the event ends. The event experience is much bigger and you could add so much value to this," says Skildum-Reid.

"The result: Last Generation Sponsorship: finally, sponsorship is focusing on the right things - the target market. And what we need to do is embrace it and learn how to use it," she adds.

So how does it work?

Recommendations

• Throw out the rulebook and get strategic:

sponsorship is about results, not history

• Get away from the sponsorship package mentality:

best practice does not rely on logos, tickets, hospitality and endorsement

• Stop 'supporting' sponsorship:

use sponsorship as a catalyst to make existing spends work harder

• Take a magic wand approach to leverage:

If you cold do anything to achieve your objectives and get that third win, what would you do?

• Measure what matters:

changes in behaviour - use your internal experts
changes in perception - model on your existing brand research
never ask questions about sponsorship!
You will leverage to your measurement strategy!

Article courtesy of Marketing Mix

Creating Consumer Friction

Ryan FitzSimons is the founder & CEO of Gigunda Group, a full-service innovation and involvement agency dedicated to delivering unforgettable brand experiences. Recently named the most creative shop in the United States by Promo Magazine, award-winning and breakthrough work includes Charmin's NYC Holiday Restrooms, the Altoids Anti-Love Valentine's Chocolate Pop-Up Shoppes and the Tide Mobile Laundromat for victims of Hurricane Katrina. Other clients include Starbucks, Sony, Yahoo, Microsoft, GM, Target, Wrigley and Kellogg’s.

Marketing Mix asked Fitzsimons a few pertinent questions about experiential marketing and its role in the marketing mix ahead of his presentation at the 2nd African Experiential Marketing Summit in Johannesburg next week.

Marketing Mix: What is your definition of experiential marketing?

Ryan Fitzsimons: Experiential marketing is the discipline of creating engaging, experience based, programs that drive a brand message to the one to one conversation level. How is this done successfully? First, we find the friction point for consumers. What is it that our brand can do to alleviate a point of friction in the lives of our prime prospects. Second, we build programming based on that insight that will involve our consumers in a meaningful brand experience. Gigunda Group is really an Involvement Agency vs. Experiential. Why? Because we find friction and use that friction insight to INVOLVE consumers in truly relevant way with the brand.

MMX: Where does it fit in within the 'traditional' marketing mix?

RS: Experiential marketing has a critical role within the traditional marketing mix. If we look at all the vehicles available to marketers and put them in a tool box, there are some tools designed to drive mass awareness and brand acceptance. There are other tools deigned to drive purchase. Experiential marketing is the tool that is most responsible for driving the consumer/brand fit revelation. In this day and age of over-messaging there is no more important a tool. As consumers we see thousands of messages daily -- too many to effectively interpret. Without part of a marketing plan dedicated to delivering unique, one on one brand conversations, a brand misses a huge opportunity to drive overall fit with consumers and ultimately long-term growth.

MMX: Does experiential marketing work best on its own, with a few traditional elements thrown in, or in a fully integrated campaign?

RS: The most successful campaigns, by far, are those that are integrated. If our experiential programs are not reinforcing what is communicated in the mass media we have very low chances of involving consumers effectively while working to promote how a brand fits for them. Our philosophy is that a successful marketing campaign must be fully integrated across all mediums.

MMX: How do you measure an experiential 'event'?

RS: Every organisation and brand measures programs differently. Our programming cannot fit cleanly into a mass impression measurement system because the programme objectives change all of the time. We believe measurement should be determined by programme objective. If we are working on a program designed to get heavy users to use more of a product why would we measure that with mass media impressions? We wouldn't. We would place greater analysis interest in how many heavy users we are able to reach and what kind of action we deliver from them. Gigunda Group has a strategic partnership with an unbiased 3rd party vendor for ROI research data that is above and beyond standard programme ROI.
MMX: During an experiential campaign how do you achieve that one-to-one-connection?
RS: Within our campaigns we are looking to deliver brand devotion. We can't do that without a compelling message and experience that is relevant to the brand's target consumer. We achieve affective one to one connections by exhaustively researching what matters most to our consumers when it comes to the product. We then marry this insight to a point of friction for the consumer. When we find the point of friction that can be solved by our brand, then we've cracked the code. Being an affective friction finder will absolutely drive personal connection with consumers. Our P&G work has universally been based on finding the right consumer friction point to leverage with the brand.

MMX: What's the secret to turning people into customers and can this be done by experiential marketing alone? Also, getting indifferent consumers to take action?

The right insight. Period. As I mentioned before, finding the right friction point to leverage is the secret to driving action on behalf of consumers. It is that simple and that hard. Can it be done by experiential marketing alone? Absolutely. If an experiential programme has done it's job properly, consumers begin see how and why a brand fits into their lives and they become Brand Advocates. Brand Advocates are a powerful tool, because they start marketing the message to a much wider audience. Brand Advocates are a credible source that garners buzz, and buzz as we know, lasts well beyond the programme.

MMX: How do you find consumer perceptions (without using the traditional target market info such as gender and income) and make them work in experiential marketing?

RS: We always have to use some traditional information to frame up who the prime prospect is. Solid identification of consumer perceptions is found in truly taking a walk in their shoes to understand what is or what is not important to them as it pertains to the brands we represent. In a focus group a bath tissue can be made to sound like a life and death decision. This is simply not a real world interpretation of how consumers think of the brand. Make no mistake, focus groups can and often do deliver fantastic insights. It takes a further dive with consumers to truly understand if what is heard in groups is reality in life. Understanding reality... where your brand truly fits, how consumers truly view your brand, how the competitive set truly impacts your brand is critical.
Or stated another way….
We have found that what the brand believes the consumers are thinking and what the consumers are actually thinking are often times disproportionate or skewed. Therefore through focus groups, social networks, research, trend watching and other tools we find true consumer perception, which often revolves around a point of friction, or something that is not working in their lives. Once we find that then we creatively and cleverly find the solution and wrap the brand around the solution so they ultimately become a brand-hero - that is how we make the consumer perception work in experiential programmes.

MMX: Could you give us a very brief outline of the Potty Palooza campaign which has been cited as the 'perfect' experiential case study, and why it worked.

RS: Charmin bath tissue, a Procter & Gamble brand, is the category leader. Bath tissue is traditionally one of the lowest involvement categories not just for paper products but the entire supermarket. From the generation-spanning Mr. Whipple to the current ‘Call of Nature’ bear campaign, Charmin has a rich history of delivering memorable – and traditional – marketing.
But back in 2000, faced with countless market pressures and the need to break through the clutter to stand for something more than the product attribute of the week (softness, absorbency, roll life etc.), Charmin committed to pioneering new ground by developing an experiential platform to bring their brand positioning to life. Recognising an opportunity to turn the category on its bottom, Charmin addressed a very real and very raw need for young families on the go – the lack of clean public restrooms!
Working to alleviate this void by delivering a pristinely clean, home-like restroom experience via the famed “Potty Palooza” programme, Charmin quickly moved into the hearts, minds and bath tissue holders of families coast to coast. Further, by becoming known as a trust-brand looking out for families while being adorned by countless family advocate groups with a brand-as-hero badge, Charmin’s “Red Cross of Restrooms” approach was a royal flush. The programme not only allowed the brand to create trial – in a fully branded and uninterrupted environment – but immeasurable goodwill. From the country’s largest state fairs to local & national festivals, parades, zoos, travel plazas and sporting events (including two Super Bowls appearances by request of the NFL), Charmin delivered not only surprise and delight, but a fully immersive, uninterrupted total brand experience.
Having made an undeniable impact (P&G has countless correspondence from families that won’t attend events unless Charmin is there… one event had 34 000 families sign a petition ensuring Charmin’s return), combined with the constant effort to find new ways for families to experience the brand in a live theatre format, the brand decided to star at the crossroads of the world in the ultimate proof-point environment, a place renowned for having virtually everything BUT clean and abundant public restrooms…Times Square!
Wowing New Yorkers and families visiting from all over the world during the holidays, the Charmin NYC Restroom Experience set-up in the epicentre of the world, Times Square and offered 20 stunningly luxurious and immaculate home-like restrooms in a place infamous for a lack of restrooms. Just ask anyone – especially young families with kids – where to find a restroom in Times Square and you’re sure to get an earful. Not any more… just follow your eyes to the brilliant blue 2000 sq. ft. billboard exclaiming You’re in New York…Go in style!. Those flying into area airports were greeted by terminal and baggage claim dioramas announcing the newest and hottest attraction in New York City.
Cleaned after every single use and outfitted with almost every amenity imaginable – hardwood floors and plush carpeting; rejuvenating aromatherapy; Charmin branded wallpaper framed by homey bead board; 5” crown molding with matching chair rail; glistening white porcelain toilet and pedestal sink; elegant glowing sconces and backlit tray ceilings with illuminating cloud-motif; squeezable soft Charmin Megaroll; Bounty Paper Towels, Safeguard Soap and Puffs tissues; working fireplaces (electric!); illuminated topiaries; Winter-Wonderland family photo opportunity featuring a larger than life stuffed Charmin bear riding a toboggan with room for 5; American Band Stand-style dance stage with laser lights and disco ball; valet stroller parking and plenty of oversized, super comfy furniture for all those tired holiday shopping legs – the Charmin NYC Restroom Experience quickly became known as Charmin’s Holiday Gift to NY with overjoyed families unanimously proclaiming 'Thanks, Charmin!'

Student delegates at the Ex Summit

Exp Agency is proud to announce the names of the three students the company is sponsoring to attend the 2nd African Experiential Marketing Summit taking place on 3 September 2008 at Montecasino.

Cyndi-lee De Cerff of Damelin, Hatfield; Melisizwe Notwala of the IMM Graduate School of Marketing, and Dani du Plessis of University of Johannesburg (UJ) will be joining many of South Africa’s top marketing professionals at the summit as they gather to listen to some of the world’s top experiential marketing speakers.

“I’m so excited about the summit,” enthuses De Cerff, who holds a marketing diploma from IMM Graduate School of Marketing and is currently in her second year of studies at Damelin. “I think it’s going to be the experience of a lifetime and a huge eye-opener for me as a student. I’ve seen the experiential marketing that Mini Cooper and Apple do, and I’m looking forward to finding out what experiential marketing is really about.”

Du Plessis, who is the top third year marketing student at UJ is equally as excited. “Moving from the classroom to the real world of Marketing is exhilarating,” she says. “What better experience to kick-start my journey, than to have been given the opportunity to attend the 2nd Experiential Marketing Summit? Not only is it a chance to expand my theoretical understanding of marketing; it is also an opportunity to cross the threshold into what the industry is actually up to, who is leading it forward and where it is headed in the future, giving me a taste of all that awaits me following graduation.”

Notwala, who is a marketing graduate and is currently studying and working at IMM, adds that he is looking forward to being exposed to the latest strategies and trends in experiential marketing, as well as learning about what sets the top companies apart.

Carol Abade, CEO of the Exp Group, explains that by sponsoring these students, the company hopes to encourage tomorrow’s marketing leaders to think big, as well as educating them on the importance of experiential marketing as an essential part of the marketing mix.

The students will be writing about their experience of the 2nd African Experiential Marketing Summit in the week following the event. Their articles will be published on the Experiencing Experiential blog (www.experiencingexperiential.blogspot.com).

For more information about the 2nd African Experiential Marketing Summit, visit www.exsummit.com.

Book prizes up for grabs!

Register today for the 2nd African Experiential Marketing Summit and you could be one of five lucky people to win a copy of Bernd Schmitt’s book Customer Experience Management, valued at R405.00. For more info, visit www.exsummit.com.

“What attracts customers to any company is a great customer experience,” says Bernd Schmitt, PhD - Robert D Calkins Professor of International Business and executive director of the Center on Global Brand Leadership at Columbia Business School in New York.

Pointing out that customers are every company’s most valuable asset, Schmitt is adamant that now, more than ever, companies need to retain existing customers and to attract new ones in order to survive and grow.

“A brand needs to stay relevant with consumers. And consumer trends, technologies, and culture, in general, change all the time,” he says. “Therefore, a brand must respond to these changes, pick up these trends, and thus stay relevant. A great way to show that you are relevant to consumer’s ever-changing lives is to connect with them and engage them – in conversations and activities. Events and sponsorships are a great way of doing so.”

Schmitt explains that the concept of “customer experience” can be used to address a range of marketing and branding issues in an innovative way. While many companies see segmentation from the perspective of the company and its products (segmenting by features, price, or distribution channel, for example), Schmitt says that by taking the experience approach, companies are able to tackle segmentation and targeting very differently, by starting with research tools that reveal meaningful data from the customer’s perspective, and using these to develop a customer-focused segmentation scheme.

“Another key issue for companies is how to position brand,” says Schmitt. “Many products are undifferentiated these days. They have similar features, and even in fast moving markets (like consumer electronics), features are easily copied.”

That’s why he believes that for brands, differentiation in the mind is vital. Yet most branding initiatives are also similar. “A company searches for the brand identity, the brand values, brand core, brand DNA, the brand personality or whatever they call it, and at the end, they usually come up with trivialities,” he opines. “For example, our brand is warm, or innovative, or intelligent.”

The agencies are then invited in, and they create messages around these branding initiatives. “They create ‘emotional ads,’ for example, smiling faces of people performing some sort of lifestyle activity. I don’t like to be cynical – but all of this is quite silly. Plus, most of it is developed without any customer input,” says Schmitt.

“What really matters is the customer experience. What the customer gets when he or she shops, interacts with company people, attends events, visits a website. What really matters is the interaction with the brand – not what brand managers and ad agencies are trying to put into people’s heads.”

While the concepts and methodologies of traditional marketing, such as segmentation and positioning, and the four Ps, will always be relevant, they need to be applied slightly differently to experiences. “Segmentation needs to be done based on experiences; we need verbal and visual experiential positioning platforms (not these long positioning statements) and the four Ps must include new media and other innovative touchpoints,” explains Schmitt.
In conclusion, he reiterates that experiential marketing is truly about customers. “Most traditional marketing is – despite what marketers say – usually product focused. Some of these concepts complement experiential marketing. But it’s all about the mindset: Always think customer first, always think customer experience!”
Bernd Schmitt will be in South Africa on 3 September presenting the keynote at the African Experiential Summit in Johannesburg.

For more information about Bernd Schmitt and his books, visit www.MeetSchmitt.com.

The 2008 African Experiential Marketing Summit – 3rd September 2008 – will take delegates on a sensorial journey, exploring food, technology and innovation in an entertaining and engaging way that is bound to keep delegates entertained as they see how experiential marketing can be used to truly build connections with their customers. As John Keats once said, nothing ever become real until it is experienced.”

Finalised Agenda

As the 2nd African Experiential Marketing Summit draws near, Exp and Marketing Mix are pleased to announce the finalised agenda and line-up of speakers.
Liz Bigham (Jack Morton Worldwide) has unfortunately had to withdraw for personal reasons – her white paper will however still be made available to summit delegates – but the event organisers have the pleasure of announcing that Ryan FitzSimons of Gigunda Group in the USA will be coming to South Africa as her replacement. FitzSimons will be speaking on the topic “Destination Devotion™ – Accelerating the purchase funnel by turning Brands into Brand badges” which has recently wowed audiences across the USA.
Gigunda Group is a full-service, impact marketing firm that specialises in creating, designing and executing big-idea brand experiences that engage consumers, evolve behaviour and elevate brands. With blue chip clients including Kellogg’s, Pampers, Wal*Mart and Publix under their belts, the team at Gigunda has experience in a wide range of industries. The company also won an Ex Award in 2007 for a Proctor & Gamble activation it undertook – a case study which will be included in the 2008 Ex Summit presentation.
Another addition to the agenda is of local advertising and marketing guru, Andy Rice of Yellowwood Brand Architects, who will be speaking on the changing face of brand communications.
Rice co-founded the esteemed Yellowwood Brand Architects agency and hosts a weekly advertising show on Talk Radio 702. His presentation promises to be relevant to all professionals working within the communications industry.
The other speakers for the 2nd African Experiential Marketing Summit are as follows: Bernd Schmitt (best selling author of Experiential Marketing and Customer Experience Management and CEO of The Ex Group); Kim Skildum-Reid (one of the world’s leading lights in sponsorship marketing and manager of her own consultancy – Power Sponsorship), Dr Jan Hofmeyr (Global Head of Insights at Synovate and arguably the world’s leading expert on brand commitment); Carol Abade (CEO of the Exp Group); Sharon Penhallrick (Managing Director, Telmar SPC Media Systems) and Carl Monteiro (Head of Marketing, FIFA, South Africa)
The full agenda and speaker biographies can be found at the 2nd African Experiential Marketing Summit website, www.exsummit.com.

Influencing the Influencers

In today’s marketing environment, the term ‘influencing the influencers’ normally refers to the online space – blogs, social networking etc. But word of mouth has always been around; it’s now simply adding another dimension, in this case digital media, to its appeal. But as Carol Abade, CEO of Exp. explains, it’s not just about telling someone is great. “Influencing goes beyond word of mouth into conviction. It is not about simply passing on information but about passing on the experience linked to real belief of the brand promise.”Word of mouth, especially using new digital mediums, has also levelled the playing fields for brands, especially those that don’t possess enormous marketing budgets. “Frankly word of mouth is not new to marketing it is only now being defined as a key for brands that have niche appeal and cannot always employ mass media to get their messages out there,” says Abade. The key to influencing the influencers however, is finding them, and this can be as easy as looking at your existing customers. “They are mostly long term loyal consumers, whose reason for use of the brand is tied to the long term relationship that they have had with the brand,” says Abade.“There are several models applied to be able to determine key brand influencer. Most of these fairly scientific and rely on profiling and cross matrix applications of consumer lifestyle, the brand promise, and the relationship that they have with the brand against the rest of the category. The willingness of the consumer to work for you will be based on your objectives, in several instances it’s a subtle association, derived from their ‘influencing’ position that one utilises to draw associations.”Now while it is known that word of mouth marketing can be extremely powerful, it doesn’t always work for every brand; in fact, in some cases in can even be damaging. So how do you know when to use it? “It is becoming more and more appealing in instances where traditional marketing is not consumed in the way that is expected,” says Abade. A key target market is of course, today’s youth market, which is always connected, and always looking for the next ‘in-thing’. “The youth market is currently consuming a different media which changes as quickly as it starts keeping up with that requires a cross section of influencing positions being able provide lead into new innovations. In this case the use of the influencer is key in being able to drive audiences to new ideas in digital space, based on their experience.On the more traditional side, a form of this is used for brands that have self or legislated regulations that preclude them from using traditional mass media. But throughout the centuries this has been applied successfully in brands with real niche targets as opposed to wide mass appeal like luxury brands,” says Abade. Still, word of mouth marketing has to also be carefully examined to ensure that the right campaign is used for the right target audience within each market. As Abade points out, in African markets, which are extremely complex, it is not possible to come up with a single guide that is assumed to work across the different markets. “The key is to identify what is ‘real influence’ against what is ‘presumed influence’; this is the crux of operating in these markets. And that question will be handled in detail at the African Experiential Marketing Summit…”

Carol will be presented a keynote speech on Influencing the Influencers at the African Experiential Marketing Summit on 3 September 2008, in Johannesburg.

Contributed by Marketing Mix

Experiential expert in SA

Founder and director of Columbia Business School’s Center on Global Brand Management, Bernd H. Schmitt brings his wealth of expertise to South Africa at the 2nd African Experiential Marketing Summit in September.

As Robert D.Calkins Professor of International Business at Columbia Business School in New York, Schmitt is also CEO of The EX Group, a consulting firm focusing on innovation and customer experience. He has co-authored seven books, which have been translated into 16 languages, including Experiential Marketing, Customer Experience Management and Big Think Strategy.

At the African Experiential Marketing Summit, which will take place on 3 September at Monte Casino in Johannesburg, Schmitt will present his theories on why an attractive customer experience is critical for differentiating one’s brand, and illustrate how leading brands such as iPod, Mini and Singapore Airlines utilise experiential marketing.

Marketers will learn the power of engaging consumers on a sensory level and why experiential marketing is vital in creating brand equity. Other topics that will be presented include creating brand connections, African communications and sponsorships, among others.

Other keynote speakers at the event include Liz Bigham, Director of Brand Marketing at Jack Morton (US); Kim Skildum-Reid (Australian), leading authority on sponsorship marketing; and local expert, Dr Jan Hofmeyr, Global Head of Insights at Synovate and brand commitment specialist.