Deck 14: Global Marketing Communications Decisions II: Sales Promotion, Personal Selling, and Special Forms of Marketing Communication

Question 1

Briefly review how the main tools of sales promotion (e.g., sampling and couponing) can be used in global markets. What issues and problems can arise in different country markets?

Answer 1

Sampling is expected to result like the real test of the manufactured goods in worldwide markets.
For example, customers in country C are unwilling to purchase untested, inexperience's; trade in goods at greater prices, Thus P G dispenses free samples of its products like detergents and shampoo.
In the same way, couponing is extensively prevalent in the countries B and UK. Though, diverse nations do not have similar regulations regarding coupon advertisings.
Following are the issues and problems with markets in different countries:
However, Coupons faces some cultural problems in country A. Couponing is not extensively prevalent in this country as saving face is much more essential; a number of Asians are unwilling to practice coupons individuals or their families' ma have to face humiliation in doing so.

Question 2

What potential environmental challenges must be taken into account by a company that uses personal selling as a promotional tool outside the home country?

Answer 2

Following are the environmental issues and challenges surface in implementing a personal selling strategy as a promotional tool in foreign country:
• Political risks : Unbalanced or dishonest managements can adjust the procedures for the sales team.
• Regulatory hurdles: Several nations set up tariffs, quotas, and unpredictable rules that disturb an overseas sales force.
• Currency fluctuations : A sales determination can be disrupted due to variation and fluctuation in exchange values.
• Market Unknowns : Lack of familiarity of marketplace conditions and environment, the acknowledged way of undertaking a business, or the market standing of its in-country players distress the strategy of selling.

Question 3

How does management's orientation (e.g., ethnocentric, polycentric, or regiocentric) correlate with decisions about sales force nationality? What other factors affect sales force composition?

Answer 3

A business with an ethnocentric approach favors tax exile and implements a standardized methodology. The business with Polycentric approach prefers to trade in in industrialized and technological advanced countries and practices tax exile for luxurious products.
The sales force of the host-nation is exploited for the average products. Comprehensive range of sales force ethnic groups are found in companies with region centric approach.
Factors that disturb the composition of sales force comprises of the growth and expansion level of the nation and the category of goods that are sold.
In countries that are less developed, the nationals of the host-country must be used for luxurious goods. In the same way native agents must be used for average or lower category goods.

Question 4

As mentioned earlier in this chapter, P G has a "Golden Store" program in Mexico and other emerging markets. P G's representatives visit participating stores to tidy display areas and arrange promotional material in prominent places. At first, P G used its own sales force; now it relies on independent agents who buy inventory (paying in advance) and then resell the items to shopkeepers. Is this approach in line with the chapter's discussion?

Question 5

What role does direct marketing have in a global company's promotion mix? Name three companies that have successfully used direct mail or other forms of direct- response advertising.

Question 6

Why are infomercials, sponsorship, and product placement growing in importance for global marketers?

Question 7

Milan Expo 2015
Do you agree with Slow Food's objections about McDonald's sponsorship participation in Milan Expo 2015?

Question 8

Milan Expo 2015
Do you think Milan Expo 2015 will be "game changer" that has an impact on problems such as global hunger and sustainable food supplies?

Question 9

Milan Expo 2015
Do you think the corporate and national pavilions at Milan Expo 2015 represent money well spent in terms of return on investment?

Question 10

Red Bull
Dietrich Mateschitz, Red Bull's creator, trusted his entrepreneurial instincts instead of relying on traditional marketing research. As Mateschitz recalls, "When we first started, we said that there is not an existing market for Red Bull, but Red Bull will create it. And this is what finally became true." In other words, Mateschitz succeeded at accomplishing one of the most basic goals in marketing: He discovered a market segment with needs that weren't being met by any existing product. Today, Red Bull's blue-and-silver cans emblazoned with the iconic charging bulls logo are recognized around the globe. Mateschitz's marketing instincts have made him a wealthy man; in 2005, for example, he was featured in Forbes magazine's cover story on billionaires.
With typical entrepreneurial flair, Mateschitz pursues alternatives to orthodox advertising strategies and tactics. "We were always looking for a different, more creative point of view," he says. For example, Red Bull utilizes a communication tool known as marketer-produced media. The Red Bulletin is a monthly magazine produced by Red Bull Media House. Red Bull distributes more than 3 million copies of each issue through newsstand sales, subscriptions, and as a free iPad app. The magazine is available in Austria, Germany, Great Britain, Kuwait, New Zealand, Poland, and South Africa. In 2011, The Red Bulletin was launched in the United States; 1.2 million free copies were distributed in major newspapers such as The Los Angeles Times, The Chicago Tribune, and The New York Daily News. The first U.S. issue featured San Francisco Giants pitcher Tim Lincecum, one of hundreds of athletes who are sponsored by Red Bull. As publisher Raymond Roker put it, "We are entering a new age of media in terms of what consumers of content want and expect."
Since 1998, Red Bull has been involved in another high-profile initiative. The Red Bull Music Academy is a series of concerts, workshops, art installations, and other cultural events that rotate from year to year among different international cities. Red Bull Music Academy also sponsors stages at international music festivals such as Montreaux Jazz; RBMA Radio is a Web resource where listeners can access new music, live concerts, interviews, and other content. Despite the name, Red Bull plays down its participation in the Academy; according to the Web site, "The Red Bull Music Academy is not a sponsored event, but a long-term music initiative, commit[t]ed to fostering creative exchange amongst those who have made and continue to make a difference in the world of sound." Needless to say, the Red Bull logo is visible everywhere, and coolers filled with the drink are placed in strategic locations.
In its first two years of existence, the Academy was held in Berlin; subsequent host cities have included Dublin, Rome, London, Cape Town, and New York City. Songwriters, DJs, producers, and musicians are invited to apply to the Academy; out of thousands of applicants, 62 people are selected to participate each year. The participants attend workshops and lectures during the day; in the evenings, they break into teams to write and record music. Red Bull makes no ownership claims on any music that is produced at the Academy. As Torsten Schmidt, one of the Academy's founders, explains, "That's part of the opening speech: there is no catch. We are going to offer you nothing in the end but inspiration and this chance of being here together."
In 2013, the Red Bull Music Academy returned to New York City for the first time since 2001. Many of the workshops and lectures were open to the public; for example, a panel discussion featuring veteran music producers Nile Rodgers, Tony Visconti, and Ken Scott was devoted to David Bowie's studio recordings. There were presentations and performances by industry legends such as ambient music pioneer Brian Eno and Giorgio Moroder, who was Donna Summer's producer.
One enthusiastic alumnus of the Academy explained its impact and importance this way: "The people behind the academy, they're not just 'suits'; they are really special people who are passionate about artists. Above them they have some 'suits' to deal with, but I've never dealt with them." Still, there are some dissenting voices. Matthew Herbert is a British electronic musican whose recordings include "One Pig," an album cataloging the life (and death) of, well, one pig. He has participated in the Red Bull Music Academy in the past, but has no plans to do so in the future. "My overriding impression of any music industry Red Bull tie-in is that the brand is always louder than the art. I don't think one would come away from any interaction with them thinking that they were interested in anything else other than selling caffeinated sugary drinks," he said.
Nirmalya Kumar, a marketing professor at the London Business School, has written a case study on Red Bull titled "The Anti-Brand Brand." Kumar gives Red Bull high marks for its nontraditional marketing communication strategy. As Kumar explains, "Part of being a great brand is conveying what you stand for in an authentic manner so consumers find it believeable. The music academy and the [Baumgartner] air show have given Red Bull a lot of that."
What is the critical thinking issue raised by the case?

Question 11

Red Bull
Dietrich Mateschitz, Red Bull's creator, trusted his entrepreneurial instincts instead of relying on traditional marketing research. As Mateschitz recalls, "When we first started, we said that there is not an existing market for Red Bull, but Red Bull will create it. And this is what finally became true." In other words, Mateschitz succeeded at accomplishing one of the most basic goals in marketing: He discovered a market segment with needs that weren't being met by any existing product. Today, Red Bull's blue-and-silver cans emblazoned with the iconic charging bulls logo are recognized around the globe. Mateschitz's marketing instincts have made him a wealthy man; in 2005, for example, he was featured in Forbes magazine's cover story on billionaires.
With typical entrepreneurial flair, Mateschitz pursues alternatives to orthodox advertising strategies and tactics. "We were always looking for a different, more creative point of view," he says. For example, Red Bull utilizes a communication tool known as marketer-produced media. The Red Bulletin is a monthly magazine produced by Red Bull Media House. Red Bull distributes more than 3 million copies of each issue through newsstand sales, subscriptions, and as a free iPad app. The magazine is available in Austria, Germany, Great Britain, Kuwait, New Zealand, Poland, and South Africa. In 2011, The Red Bulletin was launched in the United States; 1.2 million free copies were distributed in major newspapers such as The Los Angeles Times, The Chicago Tribune, and The New York Daily News. The first U.S. issue featured San Francisco Giants pitcher Tim Lincecum, one of hundreds of athletes who are sponsored by Red Bull. As publisher Raymond Roker put it, "We are entering a new age of media in terms of what consumers of content want and expect."
Since 1998, Red Bull has been involved in another high-profile initiative. The Red Bull Music Academy is a series of concerts, workshops, art installations, and other cultural events that rotate from year to year among different international cities. Red Bull Music Academy also sponsors stages at international music festivals such as Montreaux Jazz; RBMA Radio is a Web resource where listeners can access new music, live concerts, interviews, and other content. Despite the name, Red Bull plays down its participation in the Academy; according to the Web site, "The Red Bull Music Academy is not a sponsored event, but a long-term music initiative, commit[t]ed to fostering creative exchange amongst those who have made and continue to make a difference in the world of sound." Needless to say, the Red Bull logo is visible everywhere, and coolers filled with the drink are placed in strategic locations.
In its first two years of existence, the Academy was held in Berlin; subsequent host cities have included Dublin, Rome, London, Cape Town, and New York City. Songwriters, DJs, producers, and musicians are invited to apply to the Academy; out of thousands of applicants, 62 people are selected to participate each year. The participants attend workshops and lectures during the day; in the evenings, they break into teams to write and record music. Red Bull makes no ownership claims on any music that is produced at the Academy. As Torsten Schmidt, one of the Academy's founders, explains, "That's part of the opening speech: there is no catch. We are going to offer you nothing in the end but inspiration and this chance of being here together."
In 2013, the Red Bull Music Academy returned to New York City for the first time since 2001. Many of the workshops and lectures were open to the public; for example, a panel discussion featuring veteran music producers Nile Rodgers, Tony Visconti, and Ken Scott was devoted to David Bowie's studio recordings. There were presentations and performances by industry legends such as ambient music pioneer Brian Eno and Giorgio Moroder, who was Donna Summer's producer.
One enthusiastic alumnus of the Academy explained its impact and importance this way: "The people behind the academy, they're not just 'suits'; they are really special people who are passionate about artists. Above them they have some 'suits' to deal with, but I've never dealt with them." Still, there are some dissenting voices. Matthew Herbert is a British electronic musican whose recordings include "One Pig," an album cataloging the life (and death) of, well, one pig. He has participated in the Red Bull Music Academy in the past, but has no plans to do so in the future. "My overriding impression of any music industry Red Bull tie-in is that the brand is always louder than the art. I don't think one would come away from any interaction with them thinking that they were interested in anything else other than selling caffeinated sugary drinks," he said.
Nirmalya Kumar, a marketing professor at the London Business School, has written a case study on Red Bull titled "The Anti-Brand Brand." Kumar gives Red Bull high marks for its nontraditional marketing communication strategy. As Kumar explains, "Part of being a great brand is conveying what you stand for in an authentic manner so consumers find it believeable. The music academy and the [Baumgartner] air show have given Red Bull a lot of that."
Summarize the different types of marketing communications that Red Bull uses. Are these "traditional" or "nontraditional"?

Question 12

Red Bull
Dietrich Mateschitz, Red Bull's creator, trusted his entrepreneurial instincts instead of relying on traditional marketing research. As Mateschitz recalls, "When we first started, we said that there is not an existing market for Red Bull, but Red Bull will create it. And this is what finally became true." In other words, Mateschitz succeeded at accomplishing one of the most basic goals in marketing: He discovered a market segment with needs that weren't being met by any existing product. Today, Red Bull's blue-and-silver cans emblazoned with the iconic charging bulls logo are recognized around the globe. Mateschitz's marketing instincts have made him a wealthy man; in 2005, for example, he was featured in Forbes magazine's cover story on billionaires.
With typical entrepreneurial flair, Mateschitz pursues alternatives to orthodox advertising strategies and tactics. "We were always looking for a different, more creative point of view," he says. For example, Red Bull utilizes a communication tool known as marketer-produced media. The Red Bulletin is a monthly magazine produced by Red Bull Media House. Red Bull distributes more than 3 million copies of each issue through newsstand sales, subscriptions, and as a free iPad app. The magazine is available in Austria, Germany, Great Britain, Kuwait, New Zealand, Poland, and South Africa. In 2011, The Red Bulletin was launched in the United States; 1.2 million free copies were distributed in major newspapers such as The Los Angeles Times, The Chicago Tribune, and The New York Daily News. The first U.S. issue featured San Francisco Giants pitcher Tim Lincecum, one of hundreds of athletes who are sponsored by Red Bull. As publisher Raymond Roker put it, "We are entering a new age of media in terms of what consumers of content want and expect."
Since 1998, Red Bull has been involved in another high-profile initiative. The Red Bull Music Academy is a series of concerts, workshops, art installations, and other cultural events that rotate from year to year among different international cities. Red Bull Music Academy also sponsors stages at international music festivals such as Montreaux Jazz; RBMA Radio is a Web resource where listeners can access new music, live concerts, interviews, and other content. Despite the name, Red Bull plays down its participation in the Academy; according to the Web site, "The Red Bull Music Academy is not a sponsored event, but a long-term music initiative, commit[t]ed to fostering creative exchange amongst those who have made and continue to make a difference in the world of sound." Needless to say, the Red Bull logo is visible everywhere, and coolers filled with the drink are placed in strategic locations.
In its first two years of existence, the Academy was held in Berlin; subsequent host cities have included Dublin, Rome, London, Cape Town, and New York City. Songwriters, DJs, producers, and musicians are invited to apply to the Academy; out of thousands of applicants, 62 people are selected to participate each year. The participants attend workshops and lectures during the day; in the evenings, they break into teams to write and record music. Red Bull makes no ownership claims on any music that is produced at the Academy. As Torsten Schmidt, one of the Academy's founders, explains, "That's part of the opening speech: there is no catch. We are going to offer you nothing in the end but inspiration and this chance of being here together."
In 2013, the Red Bull Music Academy returned to New York City for the first time since 2001. Many of the workshops and lectures were open to the public; for example, a panel discussion featuring veteran music producers Nile Rodgers, Tony Visconti, and Ken Scott was devoted to David Bowie's studio recordings. There were presentations and performances by industry legends such as ambient music pioneer Brian Eno and Giorgio Moroder, who was Donna Summer's producer.
One enthusiastic alumnus of the Academy explained its impact and importance this way: "The people behind the academy, they're not just 'suits'; they are really special people who are passionate about artists. Above them they have some 'suits' to deal with, but I've never dealt with them." Still, there are some dissenting voices. Matthew Herbert is a British electronic musican whose recordings include "One Pig," an album cataloging the life (and death) of, well, one pig. He has participated in the Red Bull Music Academy in the past, but has no plans to do so in the future. "My overriding impression of any music industry Red Bull tie-in is that the brand is always louder than the art. I don't think one would come away from any interaction with them thinking that they were interested in anything else other than selling caffeinated sugary drinks," he said.
Nirmalya Kumar, a marketing professor at the London Business School, has written a case study on Red Bull titled "The Anti-Brand Brand." Kumar gives Red Bull high marks for its nontraditional marketing communication strategy. As Kumar explains, "Part of being a great brand is conveying what you stand for in an authentic manner so consumers find it believeable. The music academy and the [Baumgartner] air show have given Red Bull a lot of that."
What communication goal does each of Red Bull's marketing communication tools accomplish? Are you familiar with any additional brand touch points that aren't mentioned in the case?

Question 13

Red Bull
Dietrich Mateschitz, Red Bull's creator, trusted his entrepreneurial instincts instead of relying on traditional marketing research. As Mateschitz recalls, "When we first started, we said that there is not an existing market for Red Bull, but Red Bull will create it. And this is what finally became true." In other words, Mateschitz succeeded at accomplishing one of the most basic goals in marketing: He discovered a market segment with needs that weren't being met by any existing product. Today, Red Bull's blue-and-silver cans emblazoned with the iconic charging bulls logo are recognized around the globe. Mateschitz's marketing instincts have made him a wealthy man; in 2005, for example, he was featured in Forbes magazine's cover story on billionaires.
With typical entrepreneurial flair, Mateschitz pursues alternatives to orthodox advertising strategies and tactics. "We were always looking for a different, more creative point of view," he says. For example, Red Bull utilizes a communication tool known as marketer-produced media. The Red Bulletin is a monthly magazine produced by Red Bull Media House. Red Bull distributes more than 3 million copies of each issue through newsstand sales, subscriptions, and as a free iPad app. The magazine is available in Austria, Germany, Great Britain, Kuwait, New Zealand, Poland, and South Africa. In 2011, The Red Bulletin was launched in the United States; 1.2 million free copies were distributed in major newspapers such as The Los Angeles Times, The Chicago Tribune, and The New York Daily News. The first U.S. issue featured San Francisco Giants pitcher Tim Lincecum, one of hundreds of athletes who are sponsored by Red Bull. As publisher Raymond Roker put it, "We are entering a new age of media in terms of what consumers of content want and expect."
Since 1998, Red Bull has been involved in another high-profile initiative. The Red Bull Music Academy is a series of concerts, workshops, art installations, and other cultural events that rotate from year to year among different international cities. Red Bull Music Academy also sponsors stages at international music festivals such as Montreaux Jazz; RBMA Radio is a Web resource where listeners can access new music, live concerts, interviews, and other content. Despite the name, Red Bull plays down its participation in the Academy; according to the Web site, "The Red Bull Music Academy is not a sponsored event, but a long-term music initiative, commit[t]ed to fostering creative exchange amongst those who have made and continue to make a difference in the world of sound." Needless to say, the Red Bull logo is visible everywhere, and coolers filled with the drink are placed in strategic locations.
In its first two years of existence, the Academy was held in Berlin; subsequent host cities have included Dublin, Rome, London, Cape Town, and New York City. Songwriters, DJs, producers, and musicians are invited to apply to the Academy; out of thousands of applicants, 62 people are selected to participate each year. The participants attend workshops and lectures during the day; in the evenings, they break into teams to write and record music. Red Bull makes no ownership claims on any music that is produced at the Academy. As Torsten Schmidt, one of the Academy's founders, explains, "That's part of the opening speech: there is no catch. We are going to offer you nothing in the end but inspiration and this chance of being here together."
In 2013, the Red Bull Music Academy returned to New York City for the first time since 2001. Many of the workshops and lectures were open to the public; for example, a panel discussion featuring veteran music producers Nile Rodgers, Tony Visconti, and Ken Scott was devoted to David Bowie's studio recordings. There were presentations and performances by industry legends such as ambient music pioneer Brian Eno and Giorgio Moroder, who was Donna Summer's producer.
One enthusiastic alumnus of the Academy explained its impact and importance this way: "The people behind the academy, they're not just 'suits'; they are really special people who are passionate about artists. Above them they have some 'suits' to deal with, but I've never dealt with them." Still, there are some dissenting voices. Matthew Herbert is a British electronic musican whose recordings include "One Pig," an album cataloging the life (and death) of, well, one pig. He has participated in the Red Bull Music Academy in the past, but has no plans to do so in the future. "My overriding impression of any music industry Red Bull tie-in is that the brand is always louder than the art. I don't think one would come away from any interaction with them thinking that they were interested in anything else other than selling caffeinated sugary drinks," he said.
Nirmalya Kumar, a marketing professor at the London Business School, has written a case study on Red Bull titled "The Anti-Brand Brand." Kumar gives Red Bull high marks for its nontraditional marketing communication strategy. As Kumar explains, "Part of being a great brand is conveying what you stand for in an authentic manner so consumers find it believeable. The music academy and the [Baumgartner] air show have given Red Bull a lot of that."
What is the risk of sponsoring a special event such as Felix Baumgartner's historic skydive?

Question 14

Red Bull
Dietrich Mateschitz, Red Bull's creator, trusted his entrepreneurial instincts instead of relying on traditional marketing research. As Mateschitz recalls, "When we first started, we said that there is not an existing market for Red Bull, but Red Bull will create it. And this is what finally became true." In other words, Mateschitz succeeded at accomplishing one of the most basic goals in marketing: He discovered a market segment with needs that weren't being met by any existing product. Today, Red Bull's blue-and-silver cans emblazoned with the iconic charging bulls logo are recognized around the globe. Mateschitz's marketing instincts have made him a wealthy man; in 2005, for example, he was featured in Forbes magazine's cover story on billionaires.
With typical entrepreneurial flair, Mateschitz pursues alternatives to orthodox advertising strategies and tactics. "We were always looking for a different, more creative point of view," he says. For example, Red Bull utilizes a communication tool known as marketer-produced media. The Red Bulletin is a monthly magazine produced by Red Bull Media House. Red Bull distributes more than 3 million copies of each issue through newsstand sales, subscriptions, and as a free iPad app. The magazine is available in Austria, Germany, Great Britain, Kuwait, New Zealand, Poland, and South Africa. In 2011, The Red Bulletin was launched in the United States; 1.2 million free copies were distributed in major newspapers such as The Los Angeles Times, The Chicago Tribune, and The New York Daily News. The first U.S. issue featured San Francisco Giants pitcher Tim Lincecum, one of hundreds of athletes who are sponsored by Red Bull. As publisher Raymond Roker put it, "We are entering a new age of media in terms of what consumers of content want and expect."
Since 1998, Red Bull has been involved in another high-profile initiative. The Red Bull Music Academy is a series of concerts, workshops, art installations, and other cultural events that rotate from year to year among different international cities. Red Bull Music Academy also sponsors stages at international music festivals such as Montreaux Jazz; RBMA Radio is a Web resource where listeners can access new music, live concerts, interviews, and other content. Despite the name, Red Bull plays down its participation in the Academy; according to the Web site, "The Red Bull Music Academy is not a sponsored event, but a long-term music initiative, commit[t]ed to fostering creative exchange amongst those who have made and continue to make a difference in the world of sound." Needless to say, the Red Bull logo is visible everywhere, and coolers filled with the drink are placed in strategic locations.
In its first two years of existence, the Academy was held in Berlin; subsequent host cities have included Dublin, Rome, London, Cape Town, and New York City. Songwriters, DJs, producers, and musicians are invited to apply to the Academy; out of thousands of applicants, 62 people are selected to participate each year. The participants attend workshops and lectures during the day; in the evenings, they break into teams to write and record music. Red Bull makes no ownership claims on any music that is produced at the Academy. As Torsten Schmidt, one of the Academy's founders, explains, "That's part of the opening speech: there is no catch. We are going to offer you nothing in the end but inspiration and this chance of being here together."
In 2013, the Red Bull Music Academy returned to New York City for the first time since 2001. Many of the workshops and lectures were open to the public; for example, a panel discussion featuring veteran music producers Nile Rodgers, Tony Visconti, and Ken Scott was devoted to David Bowie's studio recordings. There were presentations and performances by industry legends such as ambient music pioneer Brian Eno and Giorgio Moroder, who was Donna Summer's producer.
One enthusiastic alumnus of the Academy explained its impact and importance this way: "The people behind the academy, they're not just 'suits'; they are really special people who are passionate about artists. Above them they have some 'suits' to deal with, but I've never dealt with them." Still, there are some dissenting voices. Matthew Herbert is a British electronic musican whose recordings include "One Pig," an album cataloging the life (and death) of, well, one pig. He has participated in the Red Bull Music Academy in the past, but has no plans to do so in the future. "My overriding impression of any music industry Red Bull tie-in is that the brand is always louder than the art. I don't think one would come away from any interaction with them thinking that they were interested in anything else other than selling caffeinated sugary drinks," he said.
Nirmalya Kumar, a marketing professor at the London Business School, has written a case study on Red Bull titled "The Anti-Brand Brand." Kumar gives Red Bull high marks for its nontraditional marketing communication strategy. As Kumar explains, "Part of being a great brand is conveying what you stand for in an authentic manner so consumers find it believeable. The music academy and the [Baumgartner] air show have given Red Bull a lot of that."
Red Bull and other energy drinks have generated negative publicity regarding possible health hazards. Discuss.

Question 15

Red Bull
Dietrich Mateschitz, Red Bull's creator, trusted his entrepreneurial instincts instead of relying on traditional marketing research. As Mateschitz recalls, "When we first started, we said that there is not an existing market for Red Bull, but Red Bull will create it. And this is what finally became true." In other words, Mateschitz succeeded at accomplishing one of the most basic goals in marketing: He discovered a market segment with needs that weren't being met by any existing product. Today, Red Bull's blue-and-silver cans emblazoned with the iconic charging bulls logo are recognized around the globe. Mateschitz's marketing instincts have made him a wealthy man; in 2005, for example, he was featured in Forbes magazine's cover story on billionaires.
With typical entrepreneurial flair, Mateschitz pursues alternatives to orthodox advertising strategies and tactics. "We were always looking for a different, more creative point of view," he says. For example, Red Bull utilizes a communication tool known as marketer-produced media. The Red Bulletin is a monthly magazine produced by Red Bull Media House. Red Bull distributes more than 3 million copies of each issue through newsstand sales, subscriptions, and as a free iPad app. The magazine is available in Austria, Germany, Great Britain, Kuwait, New Zealand, Poland, and South Africa. In 2011, The Red Bulletin was launched in the United States; 1.2 million free copies were distributed in major newspapers such as The Los Angeles Times, The Chicago Tribune, and The New York Daily News. The first U.S. issue featured San Francisco Giants pitcher Tim Lincecum, one of hundreds of athletes who are sponsored by Red Bull. As publisher Raymond Roker put it, "We are entering a new age of media in terms of what consumers of content want and expect."
Since 1998, Red Bull has been involved in another high-profile initiative. The Red Bull Music Academy is a series of concerts, workshops, art installations, and other cultural events that rotate from year to year among different international cities. Red Bull Music Academy also sponsors stages at international music festivals such as Montreaux Jazz; RBMA Radio is a Web resource where listeners can access new music, live concerts, interviews, and other content. Despite the name, Red Bull plays down its participation in the Academy; according to the Web site, "The Red Bull Music Academy is not a sponsored event, but a long-term music initiative, commit[t]ed to fostering creative exchange amongst those who have made and continue to make a difference in the world of sound." Needless to say, the Red Bull logo is visible everywhere, and coolers filled with the drink are placed in strategic locations.
In its first two years of existence, the Academy was held in Berlin; subsequent host cities have included Dublin, Rome, London, Cape Town, and New York City. Songwriters, DJs, producers, and musicians are invited to apply to the Academy; out of thousands of applicants, 62 people are selected to participate each year. The participants attend workshops and lectures during the day; in the evenings, they break into teams to write and record music. Red Bull makes no ownership claims on any music that is produced at the Academy. As Torsten Schmidt, one of the Academy's founders, explains, "That's part of the opening speech: there is no catch. We are going to offer you nothing in the end but inspiration and this chance of being here together."
In 2013, the Red Bull Music Academy returned to New York City for the first time since 2001. Many of the workshops and lectures were open to the public; for example, a panel discussion featuring veteran music producers Nile Rodgers, Tony Visconti, and Ken Scott was devoted to David Bowie's studio recordings. There were presentations and performances by industry legends such as ambient music pioneer Brian Eno and Giorgio Moroder, who was Donna Summer's producer.
One enthusiastic alumnus of the Academy explained its impact and importance this way: "The people behind the academy, they're not just 'suits'; they are really special people who are passionate about artists. Above them they have some 'suits' to deal with, but I've never dealt with them." Still, there are some dissenting voices. Matthew Herbert is a British electronic musican whose recordings include "One Pig," an album cataloging the life (and death) of, well, one pig. He has participated in the Red Bull Music Academy in the past, but has no plans to do so in the future. "My overriding impression of any music industry Red Bull tie-in is that the brand is always louder than the art. I don't think one would come away from any interaction with them thinking that they were interested in anything else other than selling caffeinated sugary drinks," he said.
Nirmalya Kumar, a marketing professor at the London Business School, has written a case study on Red Bull titled "The Anti-Brand Brand." Kumar gives Red Bull high marks for its nontraditional marketing communication strategy. As Kumar explains, "Part of being a great brand is conveying what you stand for in an authentic manner so consumers find it believeable. The music academy and the [Baumgartner] air show have given Red Bull a lot of that."
What makes Red Bull, in Professor Kumar's words, an "antibrand brand"?

Question 16

Go to mymktlab.com for Auto-graded writing questions as well as the following Assisted-graded writing questions:
Identify the five steps in the strategic/consultative selling model and the outlined six- step presentation plan. Do these steps have global applicability, or can they be used only for selling in the home-country market? What special challenges face a sales representative outside his or her home country?

Question 17

Go to mymktlab.com for Auto-graded writing questions as well as the following Assisted-graded writing questions:
Some industry observers think that BP should not have spent money on print and TV ads to reassure the American public. Do you agree or disagree? Explain.