Harnessing consumer-generated marketing: When the food company H,J. Heinz recently invited consumers to submit homemade ads for its ketchup brand on YouTube, it received more than 8,000 entries—some very good but most only so-so or even downright dreadful.

commercial content over the past few years would easily beat out any single advertising agency's offering.

Today, as in our cola fountain story, not only do everyday people make the videos that earn that oh-so-coveted water-cooler buzz, they also reign supreme as distributors of content of all kinds. YouTube's explosion glopped a big new pile of distractions into an already cluttered communications world, which means that if you want anybody to see your ad, you'd better hope people are frenetically e-mailing links to it.

Here are just a few examples of consumer-generated marketing content. Two moonlighting comedians threw together video of themselves amateurishly rapping about Chicken McNuggets and slapped it on the Internet— McDonald's used the video in a popular New York-area commercial. Apple discovered an amateur video produced by a British teenager on YouTube. With the teen's permission, Apple recreated the ad for TV. MasterCard invited customers to help create a new "Priceless" commercial, received 100,000 submissions, and showed the winning ad on regular TV. The credit card giant's site is now loaded with good consumer video.

And then there's the Super Bowl—the championship game of American football. Long a showcase for ad agencies' finest productions, the 2007 ad spectacular was invaded successfully by the unwashed masses. Snack food giant Frito-Lay solicited 30-second ads for its Doritos brand chips and ran the best two during the game. One of the ads, which showed a supermarket checkout girl getting frisky with a shopper, was judged in one poll as 67 percent more effective than the average

Super Bowl ad in improving viewer opinion of the advertised product. The other Doritos ad, showing a young driver flirting with a pretty girl, cost only $12.79 to produce (the cost of four bags of chips) but was judged 45 percent more effective. The ads were extremely popular with viewers, both during and after the big game. "What this means is: You've got some kid with a video camera and he's playing on the same field as everyone else," says one ad agency veteran. Frito-Lay followed up in 2008 by inviting consumers to submit original songs at—its Second Life-inspired Doritos Web environment. Frito-Lay then gave winner Kina Grannis the stage of a lifetime by airing a 60-second music video featuring her winning song on the Super Bowl.

Does the new wave of consumer-generated marketing mean the end of the big ad agency as we know it? Not likely. But the fact that an amateur could turn out a winning Doritos ad for $12.79, versus the $1 million or more that many large agencies spent crafting more spectacular but less effective ads, suggests that there are some lessons to be learned. As one ad agency creative executive suggests, "It's gonna keep professional idea makers on their toes." Marketers now "perk up when you talk about this stuff," he says. .

The big question is how to harness consumer-generated creativity—so unpolished and unaccountable—and deploy it in the service of a brand. There's a big potential downside to putting your brand in the hands of consumers. For every Diet Coke & Mentos clip that's grown into a viral craze,

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neai Marketing 1.2 Continued there are several marketer-led disasters. For example, General Motors' Chevy Tahoe off-roaded into the consumer-content arena and, to its shock, found that some people aren't so crazy about the gas-guzzling SUV. At Chevy's invitation, consumers created some very creative ads, but many of the ads centered on the big vehicle's poor gas mileage and negative environmental impact.

Harnessing consumer-generated content can be time consuming and costly, and companies may find it difficult to glean even a little gold from all the garbage. The food-products company H.J. Heinz recently Invited consumers to submit homemade ads for its ketchup brand on its YouTube page, offering a $57,000 top prize and the promise of airing the winning ad on primetime TV. Heinz sifted through more than 8,000 entries, of which nearly 4,000 are posted on YouTube. Some of the amateur ads are very good—entertaining and potentially effective. Most, however, are so-so at best, and others are downright dreadful. In one ad, a contestant chugs ketchup straight from the bottle. In another, a teen contestant rubs ketchup over his face like acne cream, then puts pickles on his eyes.

In still another, the would-be filmmaker brushes his teeth, washes his hair, and shaves his face with Heinz's product.

Heinz had to reject many of the submitted ads because they include copyrighted songs, displayed other brands, or "wouldn't be appropriate to show mom." But rejected submissions continue showing up on YouTube anyway. One of the most viewed Heinz videos, seen more than 12,800 times, ends with a close-up of a mouth with crooked, yellowed teeth—oops. Despite such problems, however, Heinz continues to invite consumers to submit their masterpieces. In all, the campaign has been very successful. Within only a few months, consumers had logged more than 2.3 million views of the spots on YouTube, and spent more than 80,000 hours watching them. The YouTube exposure gives the venerable old brand lots of contemporary attention.

Today, more and more big marketers are loosening up and turning at least a piece of their brand marketing over to consumers. At a recent Association of National Advertisers meeting, P&G's CEO, A. G. Lafley, urged companies to invite more customer interaction and to "let go" of their brands. Coming from the normally tightly controlling P&G, such a provocative statement deeply impacted the advertiser audience. The same could be said of Lafley showing an animated Pringles commercial made by a U.K. teen to the audience full of advertisers. And you know what? The clip was pretty good.

Sources: Portions adapted from Matthew Creamer, "John Doe Edges Out Jeff Goodby," Advertising Age, January 8, 2007, pp. S4-S5; with information from Frank Ahrens, "$2 Million Airtime, $13 Ad: In the YouTube Era, Even Super Bowl Advertisers Are Turning to Amateurs," Washington Post, January 31, 2007, accessed at; Elinor Mills, "Frito-Lay Turns to Netizens for Ad Creation," CNETNews, March 21, 2007, accessed at; Laura Petrecca, "Amateurs' Ad Ideas Come Up with Winners," USA Today, February 13, 2007, p. 2B; Gavin O'Malley, "Entries Pour in for Heinz Catsup Commercial Contest," August 13, 2007, accessed at; and "Fans Vote 22-Year-Old Singer/Songwriter Kina Grannis Winner in Doritos Crash the Super Bowl Challenge," PR Newswire, February 3, 2008.

components, the computer manufacturer, and the distributors, retailers, and others who sell the computers.

Through supply chain management, many companies today are strengthening their connections with partners all along the supply chain. They know that their fortunes rest not just on how well they perform. Success at building customer relationships also rests on how well their entire supply chain performs against competitors' supply chains. These companies don't just treat suppliers as vendors and distributors as customers. They treat both as partners in delivering customer value. On the one hand, for example, Lexus works closely with carefully selected suppliers to improve quality and operations efficiency. On the other hand, the luxury division of Japan's Toyota works with its franchise dealers to provide top-grade sales and service support that will bring customers in the door and keep them coming back.

Author I Check back to Figure 1.1. Comment | |n the f¡rst four steps of the marketing process, the company creates value for target customers and builds strong relationships with them. If It does that well, It can capture value from customers in return in the form of loyal customers who buy and continue to buy the company's brands.

Capturing Value from Customers (pp 45-48)

The first four steps in the marketing process outlined in Figure 1.1 involve building customer relationships by creating and delivering superior customer value. The final step involves capturing value in return in the form of current and future sales, market share, and profits. By creating superior customer value, the firm creates highly satisfied customers who stay loyal and buy more. This, in turn, means greater long-run returns for the firm. Here, we discuss the outcomes of creating customer value: customer loyalty and retention, share of market and share of customer, and customer equity.

Creating Customer Loyalty and Retention

Good customer relationship management creates customer delight. In turn, delighted customers remain loyal and talk favorably to others about the company and its products. Studies show big differences in the loyalty of customers who are less satisfied, somewhat

Terrific Tube Traffic

Terrific Tube Traffic

Target Your Customers By Engaging Them Through Video. Target MarketDemand: Any person who desires to build a large business. Product Description: Business is getting more and more competitive as the days go by. This viral video is the latest in internet business survival techniques by using video.

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