Future of Brand Building conference report - The Wharton School of ...
Future of Brand Building conference report - The Wharton School of ...
Future of Brand Building conference report - The Wharton School of ...
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Conference Report<br />
<strong>Future</strong> <strong>of</strong> <strong>Brand</strong> <strong>Building</strong> and<br />
<strong>Brand</strong> Experience:<br />
<strong>The</strong> Blurring Boundaries between<br />
Advertising and Retailing<br />
Prepared by Stephanie Finnel
Jay H. Baker Retailing Center<br />
<strong>The</strong> <strong>Wharton</strong> <strong>School</strong><br />
University <strong>of</strong> Pennsylvania<br />
bakerretail.wharton.upenn.edu<br />
Baker Retailing Center Conference<br />
Reports are published by the<br />
Jay H. Baker Retailing Center<br />
at <strong>The</strong> <strong>Wharton</strong> <strong>School</strong>,<br />
University <strong>of</strong> Pennsylvania.<br />
<strong>The</strong>y are not to be reproduced or<br />
published, in any form or by any<br />
means, electronic or mechanical,<br />
without written permision.<br />
<strong>The</strong> views expressed here are<br />
those <strong>of</strong> the authors.<br />
© 2011 Baker Retailing Center<br />
All rights reserved<br />
Report Prepared by Stephanie Finnel<br />
Doctoral Candidate, Marketing Department, <strong>The</strong> <strong>Wharton</strong> <strong>School</strong><br />
Baker Retailing Center
Contents<br />
A Framework for Understanding the Relationship between Advertising and Retailing 3<br />
Barbara Kahn<br />
Patty and Jay H. Baker Pr<strong>of</strong>essor; Pr<strong>of</strong>essor <strong>of</strong> Marketing; Director, Baker Retailing Center, <strong>The</strong> <strong>Wharton</strong> <strong>School</strong><br />
A Need to Rethink and Move Away from Traditional Advertising 4<br />
Jerry Wind<br />
<strong>The</strong> Lauder Pr<strong>of</strong>essor; Pr<strong>of</strong>essor <strong>of</strong> Marketing; Director, SEI Center, <strong>The</strong> <strong>Wharton</strong> <strong>School</strong><br />
Leveraging Technology in an Age <strong>of</strong> Empowered Consumers 4<br />
Sean Sondreal<br />
Vice President <strong>of</strong> Strategic Marketing, Kohl’s Corp.<br />
Connecting the Touch Points 5<br />
Joe Feckzo<br />
Senior Vice President, Innovation, Integration, and Marketing, Macy’s, Inc.<br />
Understanding Consumers’ Decision Making Patterns and Modes 6<br />
Joel Rubinson<br />
President, Rubinson Partners, Inc.<br />
Bringing Marketing Academics and Practitioners Together to Study the Blurring 7<br />
Boundaries between Advertising and Retailing and Research on Online and Offline<br />
Word-<strong>of</strong>-Mouth<br />
Jonah Berger<br />
James G. Campbell, Jr. Memorial Assistant Pr<strong>of</strong>essor <strong>of</strong> Marketing, <strong>The</strong> <strong>Wharton</strong> <strong>School</strong><br />
Connecting the Online and Offline Shopping Experience 8<br />
Rob Goulding<br />
Head <strong>of</strong> Channel Solutions, Google Inc.<br />
Connecting the Touch Points to Appeal to a Specific Target Segment 9<br />
Tony Spring<br />
President and COO, Bloomingdale’s, Macy’s, Inc.<br />
Making the Most <strong>of</strong> Social Networking and Online Media 9<br />
Bob Kantor<br />
Chief Marketing and Business Development Officer, MDC Partners<br />
Using Multiple Touch Points to Tell a Compelling <strong>Brand</strong> Story 9<br />
Kurt Kostur<br />
Senior Vice President <strong>of</strong> Marketing, HSN, Inc.<br />
Creating Interaction between Customers and Retailers 10<br />
Carol Reindel<br />
Senior Director <strong>of</strong> Marketing, Daymon Worldwide<br />
Adding a Global Dimension to the Blurring Boundary between Advertising and Retailing 10<br />
Mainak Mazumdar<br />
Senior Vice President, Center for Innovation, <strong>The</strong> Nielsen Company<br />
Accounting for Gender Differences in the Use <strong>of</strong> New Technology 10<br />
Anne Hunter<br />
Project Manager for Ad Effectiveness, comScore, Inc.<br />
Conference Report<br />
1
Overview<br />
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Observations and Questions about the Blurring Boundary between<br />
Advertising and Retailing<br />
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2 Baker Retailing Center
A Framework for<br />
Understanding the Relationship<br />
between Advertising<br />
and Retailing<br />
Barbara Kahn<br />
Patty and Jay H. Baker Pr<strong>of</strong>essor;<br />
Pr<strong>of</strong>essor <strong>of</strong> Marketing; Director, Baker<br />
Retailing Center, <strong>The</strong> <strong>Wharton</strong> <strong>School</strong><br />
<strong>Brand</strong> <strong>Building</strong> Through Customer<br />
Experience<br />
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An Organizing Framework<br />
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Decision Making Stages<br />
Search Consideration Purchase Usage Disposal Repurchase<br />
Decision Making<br />
Inputs<br />
Sensory<br />
Rational<br />
Emotional<br />
Behavioral<br />
Social<br />
Conference Report<br />
3
A Need to Rethink and<br />
Move Away from Traditional<br />
Advertising<br />
Jerry Wind<br />
<strong>The</strong> Lauder Pr<strong>of</strong>essor; Pr<strong>of</strong>essor <strong>of</strong> Marketing;<br />
Director, SEI Center, <strong>The</strong> <strong>Wharton</strong> <strong>School</strong><br />
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the various touch points<br />
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integrated at these various touch points<br />
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linked to each other<br />
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Leveraging Technology in an<br />
Age <strong>of</strong> Empowered Consumers<br />
Sean Sondreal<br />
Vice President <strong>of</strong> Strategic Marketing,<br />
Kohl’s Corp.<br />
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4 Baker Retailing Center
Connecting the Touch Points<br />
Joe Feckzo<br />
Senior Vice President, Innovation, Integration,<br />
and Marketing, Macy’s, Inc.<br />
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Conference Report<br />
5
Understanding Consumers’<br />
Decision Making Patterns<br />
and Modes<br />
Joel Rubinson<br />
President, Rubinson Partners, Inc.<br />
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6 Baker Retailing Center
Bringing Marketing Academics<br />
and Practitioners Together to<br />
Study the Blurring Boundaries<br />
between Advertising and<br />
Retailing and Research on Online<br />
and Offline Word-<strong>of</strong>-Mouth<br />
Jonah Berger<br />
James G. Campbell, Jr. Memorial Assistant<br />
Pr<strong>of</strong>essor <strong>of</strong> Marketing, <strong>The</strong> <strong>Wharton</strong> <strong>School</strong><br />
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Conference Report<br />
7
Connecting the Online and<br />
Offline Shopping Experience<br />
Rob Goulding<br />
Head <strong>of</strong> Channel Solutions, Google Inc.<br />
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8 Baker Retailing Center
Connecting the Touch Points<br />
to Appeal to a Specific Target<br />
Segment<br />
Tony Spring<br />
President and COO, Bloomingdale’s,<br />
Macy’s, Inc.<br />
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Making the Most <strong>of</strong> Social<br />
Networking and Online Media<br />
Bob Kantor<br />
Chief Marketing and Business Development<br />
Officer, MDC Partners<br />
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and the Customer in the Store.<br />
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Using Multiple Touch Points to<br />
Tell a Compelling <strong>Brand</strong> Story<br />
Kurt Kostur<br />
Senior Vice President <strong>of</strong> Marketing, HSN, Inc.<br />
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Conference Report<br />
9
Creating Interaction between<br />
Customers and Retailers<br />
Carol Reindel<br />
Senior Director <strong>of</strong> Marketing,<br />
Daymon Worldwide<br />
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Adding a Global Dimension to the<br />
Blurring Boundary between Advertising<br />
and Retailing<br />
Mainak Mazumdar<br />
Senior Vice President, Center for Innovation,<br />
<strong>The</strong> Nielsen Company<br />
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Accounting for Gender Differences<br />
in the Use <strong>of</strong> New Technology<br />
Anne Hunter<br />
Project Manager for Ad Effectiveness, com-<br />
Score, Inc.<br />
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10 Baker Retailing Center
Summary and Conclusions<br />
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Conference Report<br />
11
12 Baker Retailing Center
Appendix<br />
A Framework for Understanding the Relationship between Advertising and Retailing 14<br />
Barbara Kahn<br />
Patty and Jay H. Baker Pr<strong>of</strong>essor; Pr<strong>of</strong>essor <strong>of</strong> Marketing; Director, Baker Retailing Center, <strong>The</strong> <strong>Wharton</strong> <strong>School</strong><br />
Leveraging Technology in an Age <strong>of</strong> Empowered Consumers 17<br />
Sean Sondreal<br />
Vice President <strong>of</strong> Strategic Marketing, Kohl’s Corp.<br />
Understanding Consumers’ Decision Making Patterns and Modes 21<br />
Joel Rubinson<br />
President, Rubinson Partners, Inc.<br />
Bringing Marketing Academics and Practitioners Together to Study the Blurring 23<br />
Boundaries between Advertising and Retailing and Research on Online and Offline<br />
Word-<strong>of</strong>-Mouth<br />
Jonah Berger<br />
James G. Campbell, Jr. Memorial Assistant Pr<strong>of</strong>essor <strong>of</strong> Marketing, <strong>The</strong> <strong>Wharton</strong> <strong>School</strong><br />
Connecting the Online and Offline Shopping Experience 25<br />
Rob Goulding<br />
Head <strong>of</strong> Channel Solutions, Google Inc.<br />
Connecting the Touch Points to Appeal to a Specific Target Segment 26<br />
Tony Spring<br />
President and COO, Bloomingdale’s, Macy’s, Inc.<br />
Using Multiple Touch Points to Tell a Compelling <strong>Brand</strong> Story 30<br />
Kurt Kostur<br />
Senior Vice President <strong>of</strong> Marketing, HSN, Inc.<br />
Conference Report<br />
13
A Framework for Understanding the Relationship between Advertising and Retailing<br />
Barbara Kahn<br />
Patty and Jay H. Baker Pr<strong>of</strong>essor; Pr<strong>of</strong>essor <strong>of</strong> Marketing; Director, Baker Retailing Center, <strong>The</strong> <strong>Wharton</strong> <strong>School</strong><br />
Seller’s Market<br />
Buyer’s Market<br />
Connected<br />
Community<br />
Economic<br />
Uncertainty<br />
(Mad<strong>of</strong>f)<br />
THE CHANGE IN MARKETING<br />
Production: Focus on Company<br />
Marketing: Focus on Customer<br />
and Competition<br />
Experience: Focus deeper on<br />
customer experiential value; consumer is<br />
media/channel agnostic; giving up control<br />
Trust: Focus on genuine<br />
customer value—RESET,<br />
Discipline, flexibility<br />
Interactive /Social Marketing<br />
• 2009: 12% <strong>of</strong> advertising/branding spend<br />
• 2014: (est) 21% <strong>of</strong> spend<br />
• Characteristics <strong>of</strong> interactive marketing<br />
<br />
Transparency<br />
Two (multi)-way dialogue<br />
Need to be willing to lose some control for your<br />
brand<br />
Social/Interactive Marketing<br />
1996<br />
• Metaphor: Flock <strong>of</strong><br />
birds flying<br />
• Don’t know who is<br />
leading or where they<br />
are going!<br />
What is an Experience<br />
• Experiences are processes that occur as a<br />
result <strong>of</strong> encountering, undergoing or living<br />
through situations.<br />
• Triggered stimulations to the senses, heart<br />
and mind.<br />
• <strong>The</strong>y connect the company and the brand to<br />
the customer’s lifestyle and place individual<br />
customer actions and purchase occasions in<br />
a broader social context.<br />
Connecting Experience to the <strong>Brand</strong><br />
• Experiential <strong>Brand</strong> Positioning<br />
What does the brand stand for<br />
Should be a multisensory strategy<br />
Should be different in some real and valuable<br />
way from all competitors<br />
• Experiential <strong>Brand</strong> Value Promise<br />
Describes what customers gets in experiential<br />
terms<br />
• Sense Feel Think Act Relate<br />
• Embrace all channels (experientially)<br />
14 Baker Retailing Center
A Framework for Understanding the Relationship between Advertising and Retailing<br />
Barbara Kahn<br />
Patty and Jay H. Baker Pr<strong>of</strong>essor; Pr<strong>of</strong>essor <strong>of</strong> Marketing; Director, Baker Retailing Center, <strong>The</strong> <strong>Wharton</strong> <strong>School</strong><br />
Sociocultural/Business Context<br />
Usage context<br />
Product Category experience<br />
Product<br />
experience<br />
<br />
<br />
<br />
• design, music, fragrance, type<br />
<strong>of</strong> salespeople.<br />
<br />
<br />
Search<br />
Consideration<br />
Purchase<br />
Usage<br />
Disposal<br />
Repurchase<br />
Store within a store; you may ask yourself,<br />
am I still in Target<br />
Conference Report<br />
15
A Framework for Understanding the Relationship between Advertising and Retailing<br />
Barbara Kahn<br />
Patty and Jay H. Baker Pr<strong>of</strong>essor; Pr<strong>of</strong>essor <strong>of</strong> Marketing; Director, Baker Retailing Center, <strong>The</strong> <strong>Wharton</strong> <strong>School</strong><br />
<br />
Search<br />
Consideration<br />
Purchase<br />
Usage<br />
Disposal<br />
Repurchase<br />
Sensory<br />
Sensory<br />
Rational<br />
Rational<br />
Emotional<br />
Emotional<br />
Behavioral<br />
Behavioral<br />
Social<br />
Social<br />
16 Baker Retailing Center
Leveraging Technology in an Age <strong>of</strong> Empowered Consumers<br />
Sean Sondreal<br />
Vice President <strong>of</strong> Strategic Marketing, Kohl’s Corp.<br />
<br />
Whatkeepsyouupat<br />
night<br />
Yes–all<strong>of</strong>these<strong>of</strong>course.Andmany<strong>of</strong>themhaveforyears.<br />
But,morerecently,mysleepislost<br />
recently my lost<br />
toawave<strong>of</strong>newtechnologythat<br />
hasgeneratedmoreopportunities<br />
(andmissedopportunities).<br />
Wehavetoembracethisnewera<strong>of</strong>marketing<br />
whilenotlosingfocusontheareasdrivingour<br />
corebusinesstoday.<br />
Print Circulars InStoreExperience<br />
Email TV CRM<br />
Radio Display Search<br />
Flash Sales<br />
NFC<br />
Pop-up<br />
Stores<br />
<strong>The</strong> Cloud<br />
Loyalty Retention,<br />
Event Strategy,<br />
Media Mix<br />
Tablet Optimized Web Experiences<br />
Geo-Fencing<br />
Virtual Stores<br />
Real time<br />
inventory<br />
Service<br />
Automation<br />
Mobile POS<br />
Wireless Connectivity In-Store<br />
Google Wallet<br />
Conference Report<br />
17
Leveraging Technology in an Age <strong>of</strong> Empowered Consumers<br />
Sean Sondreal<br />
Vice President <strong>of</strong> Strategic Marketing, Kohl’s Corp.<br />
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18 Baker Retailing Center
Leveraging Technology in an Age <strong>of</strong> Empowered Consumers<br />
Sean Sondreal<br />
Vice President <strong>of</strong> Strategic Marketing, Kohl’s Corp.<br />
Whatisadditivetoourcurrent<br />
strategy<br />
Whatmaywedetract<br />
Howdoweadapttoanewera<br />
wherestrategyguidesour<br />
technologyinvestmentBut<br />
remainsnimbleenoughtograspnimble enough grasp<br />
technologythatcanimproveour<br />
strategyinwaysnotyet<br />
envisioned.<br />
Finally,howdoweinthisroom<br />
becomecomfortablewiththe<br />
customernowbeingincontrol<br />
i <strong>of</strong>herjourney– whetherwelike<br />
itornot<br />
2yearsago,wouldyouever<br />
haveenvisionedhowmuch<br />
technologywasinfluencing<br />
i<br />
today'sloyaltydynamic<br />
Let’splayanoverlysimplistictoday<br />
scenario…<br />
Let’ssayyouhave:<br />
AVisaDebitCard<br />
Astoreloyaltycard<br />
AnAT&TenablediPhone<br />
AtCheckout<br />
Backend<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<strong>The</strong>followingscenarioisallpossibletoday…<br />
Conference Report<br />
19
Leveraging Technology in an Age <strong>of</strong> Empowered Consumers<br />
Sean Sondreal<br />
Vice President <strong>of</strong> Strategic Marketing, Kohl’s Corp.<br />
<br />
<br />
<br />
<br />
<br />
20 Baker Retailing Center
Understanding Consumers’ Decision Making Patterns and Modes<br />
Joel Rubinson<br />
President, Rubinson Partners, Inc.<br />
<br />
Estimated in store brand decison rate<br />
(Average across categories)<br />
Meyers Research Center (on behalf <strong>of</strong> POPAI), 1995 : 70%<br />
Jay H. Baker Retailing Center & the <strong>Future</strong> <strong>of</strong> Advertising Project – SEI Center<br />
for Advanced Studies in Management<br />
Session: <strong>Brand</strong> <strong>Building</strong> and the <strong>Brand</strong> Experience: <strong>The</strong> Blurring Boundaries<br />
Between Advertising and Retail<br />
Ogilvy Action, 2008 : 40%<br />
Synovate, 2009 : 50%<br />
Date: April 21, 2011<br />
Rubinson Partners, Inc.<br />
Twitter: @joelrubinson<br />
E-mail: joelrubinson@gmail.com<br />
Blog.joelrubinson.net<br />
Source: Synovate 2010<br />
s buying category<br />
% <strong>of</strong> Chain IDs<br />
20%<br />
18%<br />
16%<br />
14%<br />
12%<br />
10%<br />
8%<br />
6%<br />
4%<br />
2%<br />
0%<br />
Surprisingly low share <strong>of</strong> requirements for preferred brands<br />
0-
Understanding Consumers’ Decision Making Patterns and Modes<br />
Joel Rubinson<br />
President, Rubinson Partners, Inc.<br />
<br />
<br />
<br />
<br />
<br />
22 Baker Retailing Center
Bringing Marketing Academics and Practitioners Together to Study the Blurring<br />
Boundaries between Advertising and Retailing and Research on Online and Offline<br />
Word-<strong>of</strong>-Mouth<br />
Jonah Berger<br />
James G. Campbell, Jr. Memorial Assistant Pr<strong>of</strong>essor <strong>of</strong> Marketing, <strong>The</strong> <strong>Wharton</strong> <strong>School</strong><br />
Why docertainproductsgetmore<br />
word<strong>of</strong>mouththanothers<br />
<br />
<br />
JonahBerger<br />
<strong>The</strong><strong>Wharton</strong><strong>School</strong><br />
OldModel<br />
NewModel<br />
Advertiser/companycentric<br />
Networkcentric<br />
Lots<strong>of</strong>interestaroundsocialmediaand<br />
word<strong>of</strong>mouth<br />
WOMboostssales!!!!<br />
Let’sjumponthebandwagon<br />
th Butthesearetechnologies,notstrategies.<br />
Whyarecertain products,brands,orideas<br />
talkedaboutandsharedmorethanothers<br />
FundamentalRule<strong>of</strong>WOM:<br />
Productsneedtobeinterestingto<br />
betalkedabout<br />
“nobodytalksaboutboringcompanies,<br />
boringproducts,orboringads”<br />
(Sernovitz2006;Hughes2005;Rosen2008;Knox2010)<br />
Providessocialcurrency<br />
Conference Report<br />
23
Bringing Marketing Academics and Practitioners Together to Study the Blurring<br />
Boundaries between Advertising and Retailing and Research on Online and Offline<br />
Word-<strong>of</strong>-Mouth<br />
Jonah Berger<br />
James G. Campbell, Jr. Memorial Assistant Pr<strong>of</strong>essor <strong>of</strong> Marketing, <strong>The</strong> <strong>Wharton</strong> <strong>School</strong><br />
Dothey<br />
Analternateperspective…<br />
Whyissomeonlinecontentmoreviral<br />
WOMislessaboutmotivatedtransmission<br />
andmoreaboutwhatistop<strong>of</strong>mind<br />
hti t i d<br />
Analysis<strong>of</strong>335buzzmarketingcampaigns<br />
Anxiety(+1SD)<br />
Anger(+1SD)<br />
21%<br />
34%<br />
Summary<br />
16%<br />
Sadness(+1SD)<br />
Awe(+1SD)<br />
30%<br />
opinion.Focusonfact.<br />
Positivity(+1SD)<br />
13%<br />
Emotionality(+1SD)<br />
Interest(+1SD)<br />
Surprise(+1SD)<br />
PracticalValue(+1SD)<br />
14%<br />
18%<br />
25%<br />
30%<br />
beyondusingtechnologies.Focuson<br />
understandingbehavior.<br />
di bh i<br />
– What%<strong>of</strong>WOMisonline<br />
TimeatTop<strong>of</strong>Homepage(+1SD)<br />
20%<br />
40% 20% 0% 20% 40%<br />
%ChangeinFittedProbability<strong>of</strong>MakingtheList<br />
beyond“SpecialPeople.”<br />
contagiouscontent<br />
Berger and Milkman 2010 2011<br />
you.<br />
24 Baker Retailing Center
Connecting the Online and Offline Shopping Experience<br />
Rob Goulding<br />
Head <strong>of</strong> Channel Solutions, Google Inc.<br />
O2S is Already Large and Accelerating<br />
Today’s Shopping Experience<br />
100% = $5.0T $6.2T CAGR<br />
Online 8%<br />
15% 8%<br />
O2S 24%<br />
Media<br />
Consumption<br />
41% is online<br />
Purchase<br />
Process<br />
Non-linear<br />
Google<br />
Purchase<br />
Location<br />
93% <strong>of</strong> sales<br />
occur <strong>of</strong>fline<br />
64%<br />
12%<br />
(11-19%)<br />
Friends<br />
TV<br />
Traditional<br />
Channels to<br />
in-store<br />
68%<br />
Magazines<br />
21%<br />
-3%<br />
Websites<br />
2009 2019<br />
Price comparison<br />
*Source: Ipsos Reid “<strong>The</strong> Inter@ctive Reid Report”, March 2010, - Outdoor was not mentioned in the study results<br />
Sources: Forrester, Morgan Stanley, US Census<br />
Google Confidential and Proprietary<br />
*Spend data comes from Group M Report “this Year, Next Year”, 2009 data<br />
Google Confidential and Proprietary<br />
Online-to-Store North America Results<br />
Summary<br />
• 40 Completed Programs<br />
• 70% Big Box retailers have tested*<br />
• Return-on-Ad Spend: 3:1 – 15:1<br />
• Overall Store Lift: 1.6% – 2.5%<br />
Across Categories & Industries<br />
Apparel Home Improvement Toys<br />
Home Furnishings Jewelry Electronics<br />
Findings<br />
• Impressions and clicks can be<br />
strong proxies for <strong>of</strong>fline impact<br />
• Driving high share-<strong>of</strong>-voice is<br />
important to generate sufficient<br />
awareness<br />
• Urban markets with large store<br />
footprints perform better<br />
• Higher consideration items have<br />
strong sales performance<br />
• Running on non-brand terms can<br />
create additional demand for<br />
brand terms<br />
Retail<br />
Tech<br />
Commerce<br />
Consumer<br />
Packaged Goods<br />
Google Confidential and Proprietary 3<br />
* Based on 2010 Advertising Spend with Google<br />
Conference Report<br />
25
Connecting the Touch Points to Appeal to a Specific Target Segment<br />
Tony Spring<br />
President and COO, Bloomingdale’s, Macy’s, Inc.<br />
6/23/2011<br />
Bloomingdale’s Strength: A Powerful, Recognizable <strong>Brand</strong> Identity<br />
Our brand identity matches nearly perfectly with a customer who says they “want to look the age<br />
they feel, not the age they are.” Our customers have a palpable, committed relationship with our<br />
brand; they want to shop us more.<br />
<br />
<br />
CassandraH.,Age35,Chicago<br />
BLOOMINGDALE’S<br />
<br />
<br />
<br />
<br />
Tecresha S.,Age25,Miami<br />
<br />
<br />
<br />
Naz L.,Age30,LosAngeles<br />
Bloomingdale’s Marketing Objective<br />
To engage the customer with relevant and compelling content that builds a stronger relation with<br />
our <strong>Brand</strong> resulting in garnering a greater share <strong>of</strong> her wallet.<br />
Marketing communications must convey<br />
that Bloomingdale’s:<br />
• Understands the customer – their lifestyle, their<br />
tastes, their passions, their needs – and is<br />
authentically integrated in the community in<br />
both words and actions<br />
• Is a destination for discovery – what’s new,<br />
what’s next in fashion and pop culture<br />
• Delivers an exciting/innovative shopping<br />
experience on a consistent basis – expect the<br />
unexpected<br />
Maximizing Media Mix in an Omni-Channel World<br />
Engaging and Inspiring the Customer through New Media Channels<br />
<strong>The</strong> Challenges:<br />
• Communication – Push and/or Pull Her Voice vs. Fashion Authority<br />
• Expanding Her Interaction with Our Advertising – Finding Hand Raisers<br />
• Staying Ahead <strong>of</strong> the Communication Curve While Not Leaving the Customer Behind<br />
Marketing 101 Reminder: Content is Still King!<br />
With the proliferation <strong>of</strong> channels to market messages it is more important than ever to get the<br />
content right.<br />
• Formatting Content to Fit the Medium – What Works in Print Doesn’t Necessarily Translate on<br />
a Smart Phone or Ipad.<br />
• Creative Challenge – We are Fighting for Her Attention and Time – How Do We Break through<br />
the Clutter<br />
• Disrupting Her Media/Shopping Experience with Relevant Content – What is Engaging vs.<br />
Annoying<br />
Testing and Learning<br />
Data Allows us to Step Back and Evaluate How New Media and Technology Engage Our<br />
Customer. We Are Currently Experimenting with:<br />
• QR Codes, Video, Texting, Social Engagement, User Generated Content<br />
• Using Digital Content to Help the Sales Pr<strong>of</strong>essional Sell<br />
4<br />
6<br />
Bringing Fashion Images to Life via Online Video<br />
March Fashion Campaign<br />
Testing New Media Distribution and Digital<br />
Forms <strong>of</strong> Engagements<br />
Created Multiple Videos to Provide Fashion Inspiration Across Channels<br />
26 Baker Retailing Center
Connecting the Touch Points to Appeal to a Specific Target Segment<br />
Tony Spring<br />
President and COO, Bloomingdale’s, Macy’s, Inc.<br />
6/23/2011<br />
Extending the Reach <strong>of</strong> Videos via QR Tags<br />
Bringing the Customer into the Conversation<br />
Magazine<br />
Bloomingdales.com<br />
Mobile<br />
Newspaper<br />
Catalog Insert<br />
Digital Advertising<br />
Out <strong>of</strong> Home<br />
Distribution <strong>of</strong> Video Content through Static Media<br />
Customers Were Invited to Share <strong>The</strong>ir Style in a Social Contest<br />
Style Contest Reach Extended In-Store<br />
Style Contest: Engaging Our Community<br />
Visual Display<br />
with Promotion<br />
Visual Display<br />
with QR Tag<br />
Contest Poster<br />
Bloomingdale’s Facebook Community Judged the Contestants<br />
Surprise and Delight Using Text Messaging<br />
Text to Win<br />
Using Mobile to Provide Animation and<br />
Engagement In-Store<br />
Window Display<br />
Poster<br />
Catalog<br />
Customers Were Invited to Text In-Store to Win Shopping Sprees<br />
Conference Report<br />
27
Connecting the Touch Points to Appeal to a Specific Target Segment<br />
Tony Spring<br />
President and COO, Bloomingdale’s, Macy’s, Inc.<br />
6/23/2011<br />
Creating Animation In-Store Using Mobile Devices<br />
Traditional Media is Still Part <strong>of</strong> the Media Mix<br />
<strong>The</strong> Challenge is to Reinterpret Through Color,<br />
Unique Positions and Repetition<br />
Customers Visited Daily to Text on the Selling Floor<br />
Newspaper<br />
Bookends<br />
New York Times<br />
Bergen Record<br />
Boston Globe<br />
Boston Herald<br />
Chicago Tribune<br />
Los Angeles Times<br />
Miami Herald<br />
Newark Star Ledger<br />
St. Paul Pioneer Press<br />
San Francisco Chronicle<br />
Washington Post<br />
Washington Suburban Press<br />
LAT & SFC Horizontal Strips<br />
15<br />
16<br />
NYT Towers<br />
17<br />
Taxi Toppers<br />
18<br />
28 Baker Retailing Center
Connecting the Touch Points to Appeal to a Specific Target Segment<br />
Tony Spring<br />
President and COO, Bloomingdale’s, Macy’s, Inc.<br />
6/23/2011<br />
Phone Kiosks<br />
Mall Kiosks<br />
Century City, Roosevelt Field, San Francisco, Santa Monica, & Short Hills<br />
19<br />
20<br />
Our Most Important Marketing Asset:<br />
<strong>The</strong> Bloomingdale’s Sales Pr<strong>of</strong>essional<br />
Mall Floor Decals<br />
Roosevelt Field & San Francisco<br />
21<br />
<strong>The</strong> Bloomingdale’s Sales Pr<strong>of</strong>essional<br />
Our Sales Pr<strong>of</strong>essionals continue to play a vital role in our marketing strategy.<br />
Sales Pr<strong>of</strong>essionals’ Marketing Role at Bloomingdale’s:<br />
• Marketing’s objective is to drive a greater response. <strong>The</strong> Ultimate “opt in” is when a<br />
customer says “yes” to having a relationship with a Sales Pr<strong>of</strong>essional.<br />
• <strong>The</strong> Sales Pr<strong>of</strong>essional has the ability to filter content for the customer based on what<br />
they learn throughout the relationship.<br />
• Authentic personal communication between the Sales Pr<strong>of</strong>essional and client yield more<br />
value than algorithmic message generation based solely on transaction history.<br />
Sales Pr<strong>of</strong>essionals’ Key Marketing Tool, b-connected<br />
Through Bloomingdale’s CRM System (b-connected) at POS our Sales Pr<strong>of</strong>essionals have<br />
the ability to:<br />
• Build individual marketing programs for his/her clients based on the customer’s personal<br />
life calendar.<br />
• View all <strong>of</strong> their clients’ transaction history (including purchases on bloomingdales.com)<br />
• Query their client book<br />
• Enter non-transactional information (birthday’s, special occasions, family members, etc)<br />
Where Do We Go From Here<br />
Continue to Evolve Our Omni-Channel Marketing Strategy<br />
• Incorporate New Digital Media Options – Social, Viral, Augmented Reality, RFID, Mobile<br />
• Update Traditional Alternatives – QR Codes, Photo Recognition Applications<br />
• Browse Data both Online and In-Store to Gain Greater Share <strong>of</strong> Wallet<br />
• Sales Pr<strong>of</strong>essional Cultivation <strong>of</strong> Customer Relationships<br />
• Tailor Our Communication Mix by Customer Segment<br />
• Help Our Vendor Partners and Internal Clients Migrate and Invest in New Alternatives<br />
Our Ultimate Goal:<br />
Leverage technology to engage the customer with more relevant content without losing the<br />
personal connection she has with our brand.<br />
Piloting Email<br />
• Email integration with b-connected to allow for personal communication between the<br />
Sales Pr<strong>of</strong>essional and the client with contact history and return on contact within the<br />
CRM System<br />
23<br />
24<br />
Conference Report<br />
29
Using Multiple Touch Points to Tell a Compelling <strong>Brand</strong> Story<br />
Kurt Kostur<br />
Senior Vice President <strong>of</strong> Marketing, HSN, Inc.<br />
“FUTURE OF BRAND BUILDING<br />
AND BRAND EXPERIENCE”<br />
<strong>The</strong> Blurring Boundaries<br />
Between Advertising and<br />
Retailing<br />
Access<br />
Empowerment<br />
Community<br />
2<br />
<strong>Brand</strong> Awareness<br />
Customer Trial<br />
<strong>Brand</strong> Experience<br />
Customer Engagement<br />
3<br />
BRAND EXPERIENCE: ESSENCE MUSIC FESTIVAL<br />
• Co-branded 2 story sensorium<br />
• Innovative Sampling<br />
• Product Pre-sell via Texting<br />
• Mary J Blige personal<br />
appearances<br />
• HSN “virtual community<br />
experience” via laptop station<br />
• Email capture<br />
• Pre-sell via Texting<br />
5<br />
30 Baker Retailing Center
Notes<br />
Conference Report<br />
31
Notes<br />
32 Baker Retailing Center
Jay H. Baker Retailing Center<br />
<strong>The</strong> <strong>Wharton</strong> <strong>School</strong><br />
University <strong>of</strong> Pennsylvania<br />
bakerretail.wharton.upenn.edu
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