U2: Music Marketing Tweaked for a Hypercompetitive Digital World, While Still Appealing to Emotion

Clever use of the four P’s of marketing is only the beginning to a successful marketing plan in a business world that is becoming more hypercompetitive due to corporate partnerships, the growth of the internet, and the consolidation of companies and brands. Amid these challenges, marketers are well advised to draft multi channel marketing plans that use the best digital technology and corporate sponsorships to reach their target market.

For example, a rock band may want to allow people to upload fan photos and videos to their web-site with the hopes of connecting with the emotions of fans who have experienced the bands show, or even something different than that – a Blackberry sponsorship. This drives traffic and sales on the band’s web-site by appealing to the inclusion emotion. Yet, a multi channel plan would also see the band partnering with Apple iTunes to sell individual songs and digital albums, but not DVDs, t-shirts, and other fan merchandise that would be found on the band’s web-site, and also sold at retail outlets like Target and Best Buy.

Also, the band’s web-site is well advised to offer a free downloadable music video as a promotion to buy a concert DVD, or in the case of U2, a complete concert posted free on YouTube – the promotion. The case of U2 is interesting because they were trying to fill the online marketing space in their target market with the hopes of promoting a major tour, several records, DVDs, and importantly pushing other musical brands out of the media spotlight. They were promoting the enterprise of U2 at a significant cost because many people may not buy the U2 DVD that was offered for free on YouTube. Yet many more people are aware of the U2 brand because of their free YouTube show. Note a smaller band could not get away with U2’s marketing plan because they do not have the catalogue of cds, DVDs, and merchandise that U2 has. U2 is in the maturity phase of the product life cycle and uses the above business partnerships to reduce their costs.

Jeremy Swenson, MBA – 2010, is an experienced marketer, marketing manager, sales person, and business analyst/academic. He has extensive product experience with mortgages, loan/lines, checking accounts, savings accounts, money markets accounts, pay day loans, CDs, property and causality insurance, playing jazz, and even some basic experience auditing employee benefit programs. Additionally, his background includes federal work experience as a Rural Associate Carrier with the U.S.P.S. and as an Enumerator with the U.S. Census Bureau (Dept. of Commerce) in 2000. You can reach Jeremy at jer.swenson@live.com.

Alphabet Games

By Dave Folkens
Anyone that’s spent any time studying marketing at all has heard of the four P’s: Product, Price, Place, and Promotion. Those simple letters set the foundation for marketing and differentiating products and services of all kinds. However, as we enter 2010, are consumers shifting to a new model that marketers must adopt in order to succeed?

With social media all the rage right now (via Facebook, Twitter, YouTube and more) are consumers forever making the shift to a different set of expectations of brands? There are four new points that are making a great impact on the dynamic between corporate brands and consumers.

• Influence - What type of reach does a brand have and how can it influence purchasing decisions. Think of top brands in social media like Zappos on Twitter or Dell which seeks influence in a variety of social media channels.
• Interaction - Consumers are now expecting attention from the brands they love in real-time. Not via email in a day or two, not by waiting for a customer service call but actual interaction to get their questions answered or problems addressed. And, if you’re not responding, they’ll let everyone know about it.
• Identification - Can customers identify with your brand online? Does your online personality feel like it’s something they can personally support? Are you fun or totally stuffy and corporate? Would your brand be the kind of “friend” they’d really want to know?
• Individuality - While consumers are seeking to identify with your company; they don’t want you to be just like other companies either. Those that carve out an identity that provides some type of value add while doing so in a style that’s unique do well.

So, in the end, will social media and the four I’s replace long-standing marketing tactics and sales approaches that have been established to date? Absolutely not. Online engagement is a great new addition to the arsenal for companies and those that lead them, but social media should not be the singular focus of any organization.

If you run off to chase the latest technology out of fear for being viewed as “behind the times” or “missing the boat” and ignore your core competencies, you may lose customers that have brought you this far and risk tremendous damage to your brand. But you can’t deny the impact that online engagement has either. You need to be looking to add opportunities for consumers to get to know your brand and feel connected as well.

What’s the answer? A well-rounded strategy that is based on fundamentals with social media as a tool to enhance your brand…not replace it.

Dave Folkens is currently the Director of Communications for the Minnesota AIDS Project. He has previous experience with both small and large corporations as well as on the agency side of the PR business. He can be followed via Twitter @dfolkens.