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You are here: Home > Internet and Businesses Online > Internet Marketing > Proctor & Gamble’s Mission to Solve the Internet Marketing Puzzle |
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Advice You - Proctor & Gamble’s Mission to Solve the Internet Marketing Puzzle
“I believe today’s marketing model is broken. We are applying antiquated thinking and work systems to a new world of possibilities…The traditional marketing model is obsolete.”– Jim Stengel, Global Marketing Officer, P & G, Association of National Advertisers, Oct 2004. The notion that marketing and advertising attitudes have to change is no longer a theory just banded about by According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product Internet marketers. Even the big boys and the major world players are now accepting that the mass marketing techniques, of the last 50 years, are no longer penetrating audiences like they used to. There is going to have to be a shift in the whole approach of advertising if it is going to maintain any relevancy with an increasingly cynical consumer. When discussing marketing it d ; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug. Examples of combination products may in esn’t get any bigger than Proctor & Gamble, one of the largest suppliers of household products in the world, and certainly one of the biggest advertisers. With brands like Ariel, Head and Shoulders, Pampers and Crest, they should be leading the way in utilising new methods to get their products into people’s homes. With the mega brand no longer revered as some sort of deity, P & lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together. are going to have to learn how to communicate with the influential consumer networks, and to persuade them to talk positively about their products. P & G has a long tradition of innovation and groundbreaking in the way they have broadcast their messages. They were the first to start advertising nationally, way back in 1880, and have taken the idea of product placement to anothe here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe level with their Soap Opera productions designed to hook female viewers onto their shows and shampoos. Recently, P & G enlisted an army of 600,000 ‘connectors’ to spread the message in their ‘Vocalpoint’ campaign (an extension of their earlier ‘Tremor’ scheme amongst teenagers). Their ‘connectors’ were provided with coupons to distribute to their colleagues, and free samples to d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations. Combination pro provoke conversations about P & G products. As Steve Knox, Vocalpoint CEO, recognised, “we know that the most important form of marketing is an advocacy message from a trusted friend.” With Vocalpoint, P & G are utilising the influence and relevancy of social networks to promote their products through interaction and trust. People might no longer listen to brands, but they will ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc lways listen to the advice of friends. The perception that change was on the horizon had already been identified by their former global marketing officer, Bob Weiliing. In a 2002 interview, Bob’s view was that the Internet might not replace the mass ‘push’ medium of TV, but instead can be tailored to the individual. An online environment can be used for when there is a personal easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi assion to learn more about a product or service. Gaining advice, direction and the latest product news are services not readily available on just a ‘push’ medium. TV is about the mass market message, whereas the internet is perfect for individual relationship building. Bob’s conclusion, on the future of P & G’s marketing success, lay in working out how to combine the two. They h nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically d to maintain the relevancy of the 30 second TV ad, whilst also utilising the extended attention and interaction available online. This also meant persuading the two warring marketing factions to work together to find a solution - to get the technophobes talking to the internet evangelists. It was been obvious in recent years that Bob’s successor, Jim Stengel, subscribes firmly t and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ o the latter camp. In 2005, P & G cut their TV ad spend by 8% to a mere $677.3 million, a bold move and a definitive shift onto non-traditional media. Earlier this year, they contacted digital and interactive agencies in the UK to put together its first digital agency roster for Western Europe, and to find innovative new ways of populating their brands online. We are now seeing ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi the rise of interactive websites designed to keep hold of eye balls and encourage return visits. Last year a music themed site for Old Spice was launched with free downloads and song samples to appeal to the 16-24 iTunes generation. Another notable example was the campaign for Pringles crisps during the FIFA World Cup. A website created where people could upload videos of themsel ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it. Following aspects would a es imitating the TV ad, mirroring the appeal of YouTube for a young internet savvy audience. Both content driven sites designed to develop the brand through interaction, relevancy and value. P & G have also learnt the lessons preached by legions of business bloggers. By providing information of value you develop trust and confidence; consequently, people will want a relationship dd to the challenges in developing combination products: Which markets to tap where the combination products can do fairly well? Which combination prod with your brand and become customers. Their Pampers website builds an affinity with its audience through the provision of advice and help. As a valuable resource for young mums, it enriches their association with the brand and will provoke a desirable response next time they go shopping for nappies. P & G’s Home Made Simple website is a flagship in online marketing, with its own cts are meaningful and rational? Which therapeutic categories to select? Which Combinations can address unmet needs of the patients? Do combin TV show and guides on good housekeeping. Instead of being blasted with product placement, the website simply develops relationships with its audience through its news and articles. Once your trust is gained you will inevitably sign up for the newsletter, with further promises of free samples, coupons, special offers and sweepstakes all pulling you into their trap of becoming a c tions increase the patient compliance? What would be the developing cost? How to tackle the risks encountered during combination product developmen nvert to their products. ‘Home Made Simple’ provides the perfect buying environment by developing trust, and the desire to have a relationship with their brand, what the new style of online marketing is all about. At the Association of National Advertisers Conference, earlier this month, Jim Stengal and P & G’s CEO, A.G. Lafley, outlined their mission to carry their brands into t? As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel he ‘pull’ age of relationship marketing. Lafley reinforced the views of Bob Weiling, they had to learn how to make connections with their audience through the various ‘touch points’. Their future lay in learning how to integrate their strategy across all the mediums available, rather than relying on the old one way ‘push’ bombardment of marketing messages. His key point was that ping new procedures for reviewing their safety, efficacy and quality. Professional from academic institutions, pharmaceutical industries, health care indust they had to learn how to “let go” as “the more in control we are the more out of touch we become.” P & G needed to move beyond thinking in terms of merely transactions, and instead focus on building relationships by being more responsive and receptive to what their audience, the ‘boss’, wanted. Jim Stengal opened his speech with a plea to his fellow marketers to “stop thinking a y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products bout consumers and start thinking about people.” He was suggesting a paradigm shift in how they approached marketing and advertising. Their customers were no longer just demographics, but individuals to be empathised and engaged with. They had to be able to listen to what people wanted from the brand instead of telling them what the brand should mean to them. A new level of under . As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de tanding needed to be created on why people should place trust in a relationship P & G’s brands rather than simply superficially appealing to their desires (a tactic that has served copywriters for generations). Many Internet marketers are eager to hammer the nails into TV’s coffin, whilst traditional advertising execs sit on their hands waiting for the ‘web 2.0′ bubble to elopment. They need to be wiser in analyzing the market trends and the regulatory requirements. Companies that provide selfless information through particip urst. P & G have, since the start of the decade, been steadily moving from a monolithic, lumbering marketing dinosaur into an Internet savvy, feedback focused livewire. By being an early adopter of the new ‘trust’ focused marketing philosophy, P & G should be on the right track to solving the puzzle of marketing online and maturing their brand’s message for the sceptical consumer tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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