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The Case For Relationship Marketing

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  • SPAMSPAMSPAMSPAM

    THE CASE FORRELATIONSHIP

    MARKETING

    Spam 1.64 Euro 11/10/05 14:14 Page 1

  • SPAM SPAM SPAM SPAM 1

    SPAM SPAM SPAM SPAMMarie arrives home from work.She checks her email on her laptop. She has twelve offers for sexual potency pills, three frommusic download companies and fifty-eight offers fromonline casinos.Spam thinks Marie.She checks her mobile. On it are three texts offering hera free holiday, discount ringtones and a pizza.Spam thinks Marie.Her home phone rings. Someone wants to sell her newdoors and windows. Spam thinks Marie.On her doormat are five letters offering her credit cards,loans and a hair coloring treatment.Spam thinks Marie.She looks out of the window. Outside are eightbillboards talking about credit cards and loans. Spam thinks Marie.

    The emailable version of this document is at emea.wunderman.com/spam.pdf

    Spam 1.64 Euro 11/10/05 14:14 Page 2

  • SPAM SPAM SPAM SPAM 1

    SPAM SPAM SPAM SPAMMarie arrives home from work.She checks her email on her laptop. She has twelve offers for sexual potency pills, three frommusic download companies and fifty-eight offers fromonline casinos.Spam thinks Marie.She checks her mobile. On it are three texts offering hera free holiday, discount ringtones and a pizza.Spam thinks Marie.Her home phone rings. Someone wants to sell her newdoors and windows. Spam thinks Marie.On her doormat are five letters offering her credit cards,loans and a hair coloring treatment.Spam thinks Marie.She looks out of the window. Outside are eightbillboards talking about credit cards and loans. Spam thinks Marie.

    The emailable version of this document is at emea.wunderman.com/spam.pdf

    Spam 1.64 Euro 11/10/05 14:14 Page 2

  • WUNDERMAN

    She switches on the TV. There are three ads forringtones, followed by one for loans. Then comes theshow sponsored by an insurance company.Marie realizes that the TV is spamming her too.

    Marie is being bombarded by more commercialmessages than any human being ever

    before.And like most mammals insuch a situation, shes

    developed a def e n s emechanism.

    A laboratory rat forced to livenext to a constantly ringing bell

    learns to switch the sound off in itshead. After a while, its brain just

    doesnt register it.Faced with so many messages, Marie

    too has reached overload. And she toohas learnt to switch off the noise in her

    head.

    But not quite all of itBut Marie doesnt ignore quite all the

    communications being flung at her.She replies to the offer of a pizza.

    She also reads the offer about the new hair coloringtreatment.

    Spam 1.64 Euro 11/10/05 14:14 Page 2

  • WUNDERMAN

    She switches on the TV. There are three ads forringtones, followed by one for loans. Then comes theshow sponsored by an insurance company.Marie realizes that the TV is spamming her too.

    Marie is being bombarded by more commercialmessages than any human being ever

    before.And like most mammals insuch a situation, shes

    developed a def e n s emechanism.

    A laboratory rat forced to livenext to a constantly ringing bell

    learns to switch the sound off in itshead. After a while, its brain just

    doesnt register it.Faced with so many messages, Marie

    too has reached overload. And she toohas learnt to switch off the noise in her

    head.

    But not quite all of itBut Marie doesnt ignore quite all the

    communications being flung at her.She replies to the offer of a pizza.

    She also reads the offer about the new hair coloringtreatment.

    Spam 1.64 Euro 11/10/05 14:14 Page 2

  • SPAM SPAM SPAM SPAM 5

    their wares, how much they scream is no longer thedecisive factor.Today, its not what the consumer knows, but who theyknow that matters.

    In 2004, the averageUS consumer wasexposed to 3000commercialmessages a day,compared with 650in 1985. SOURCE: EPIPHANY/LEHANE

    4 WUNDERMAN

    And she looks at one ofthe emails about musicdownloads as well.

    Why does she doso?She responds to theoffer of the pizzabecause it came fromher m u m, whom shehasnt seen for twoweeks.She looks through thehair-coloring offerbecause its from herfavorite hair salon, andshe wants to know whather stylist Pierre hasplanned for her.And she looks at the email about the music downloads,because it was from iTunes, and she is in love with heriPod.

    Whats the common link?In each case, Marie registers and reads the messagebecause she has an existing relationship with the sender.The existing relationship makes the message stand outto her like a light in gloom.It lets messages get through that otherwise wouldnt -no matter how many times they are repeated.In a world where companies scream all the time about

    Today, no taxi door, parkingmeter or soap opera is free

    from the constant assault ofcommercial messaging.

    Here, in the toilet block of IkeaMoscow, you cant even poo in

    peace.

    Spam 1.64 Euro 11/10/05 14:14 Page 4

  • SPAM SPAM SPAM SPAM 5

    their wares, how much they scream is no longer thedecisive factor.Today, its not what the consumer knows, but who theyknow that matters.

    In 2004, the averageUS consumer wasexposed to 3000commercialmessages a day,compared with 650in 1985. SOURCE: EPIPHANY/LEHANE

    4 WUNDERMAN

    And she looks at one ofthe emails about musicdownloads as well.

    Why does she doso?She responds to theoffer of the pizzabecause it came fromher m u m, whom shehasnt seen for twoweeks.She looks through thehair-coloring offerbecause its from herfavorite hair salon, andshe wants to know whather stylist Pierre hasplanned for her.And she looks at the email about the music downloads,because it was from iTunes, and she is in love with heriPod.

    Whats the common link?In each case, Marie registers and reads the messagebecause she has an existing relationship with the sender.The existing relationship makes the message stand outto her like a light in gloom.It lets messages get through that otherwise wouldnt -no matter how many times they are repeated.In a world where companies scream all the time about

    Today, no taxi door, parkingmeter or soap opera is free

    from the constant assault ofcommercial messaging.

    Here, in the toilet block of IkeaMoscow, you cant even poo in

    peace.

    Spam 1.64 Euro 11/10/05 14:14 Page 4

  • SPAM SPAM SPAM SPAM 7

    The first principle in the Art of War said ancient Chinese general Sun Tzu is toconcentrate your forces. Conventional marketing doesnt do this much.Relationship marketing does it par excellence.

    Relationships are a powerful answer to the incessantnoise of modern marketing. They allow messages to get through when theyotherwise wouldnt.But they are also a much more efficient way to marketthan spamming (or classical marketing as its advocatesprefer to call it).

    Classical marketing isnt efficientClassical marketing uses the blunt instruments of massmedia. Its not that easy to target a specific group of people withthem.If youre looking for women aged 18-30, your TVcommercial, however carefully targeted, is going to hitmillions of people who arent in that group.Indeed in some countries, TV stations will only sell youone broad audience anyway like housewives 18 to49.The end result is money down the drain.

    MARKETING WITHOUT WASTE

    Spam 1.64 Euro 11/10/05 14:14 Page 6

  • SPAM SPAM SPAM SPAM 7

    The first principle in the Art of War said ancient Chinese general Sun Tzu is toconcentrate your forces. Conventional marketing doesnt do this much.Relationship marketing does it par excellence.

    Relationships are a powerful answer to the incessantnoise of modern marketing. They allow messages to get through when theyotherwise wouldnt.But they are also a much more efficient way to marketthan spamming (or classical marketing as its advocatesprefer to call it).

    Classical marketing isnt efficientClassical marketing uses the blunt instruments of massmedia. Its not that easy to target a specific group of people withthem.If youre looking for women aged 18-30, your TVcommercial, however carefully targeted, is going to hitmillions of people who arent in that group.Indeed in some countries, TV stations will only sell youone broad audience anyway like housewives 18 to49.The end result is money down the drain.

    MARKETING WITHOUT WASTE

    Spam 1.64 Euro 11/10/05 14:14 Page 6

  • 8 WUNDERMAN

    You spend ten million euros on advertising to womenaged 18-30, and nine million of those euros hit men,and women who arent aged 18-30. Only one millioneuros hit home.If you are targeting a smaller part of the population,things get worse.If youre targeting say the five percent of people whobuy premium skincare products, then as much as ninety-five percent of your advertising goes to people whodont ever buy premium skincare, and only five percenthit home.And if you are targeting a very small audience, say theone percent of a citys population that fly frequently onbusiness, as much as n i n e t y - n i n e percent of youradvertising impressions are wasted, and only o n epercent hit home.

    Compare that with relationship marketingCompare that with marketing within a moderncomputer-powered relationship: Supermarkets now have efficient loyalty schemes

    that combine customer address details with acomplete record of every item that their customerhas ever put into their basket in their store. So that supermarket can promote a new product tothe five percent of their customers who already buypremium skincare products easily, and to thosepeople alone.

    The better airlines possess an intimate picture oftheir customers travel habits, as computers processeverything from bookings to seat preferences to

    So is relationship marketing anti TV?Not