Contemporary Marketing 16th Edition by Louis Boone,David Kurtz

Exercise 14

Undertaking marketing research to find out what background color works best in online ads is just one way Procter Gamble (P G) is ramping up its digital marketing campaign. These efforts aren't breaking the company's advertising budget either. P G wants to gradually reduce its advertising expenditures, saving as much as $1 billion, partly by emphasizing cost-efficient digital over pricey television ads and increasing digital's share of the company's overall marketing budget. The idea is to use social media, in particular, to build relationships with customers, so when they're making product choices in the store, they'll select P G as the brand they're most comfortable with, even if it isn't always the cheapest one.
As technology and its marketing strategy both evolve, the company is making what it sees as a natural transition from search ads to banner ads and on to social media. For example, P G recently noticed online chatter about Pepto Bismol on weekend mornings, most likely from people who had overeaten the night before. After it launched a Facebook campaign touting the indigestion reliever whose sales had been relatively flat for several years, market share grew 11 percent.
Another motivator for P G's move to digital is that members of its primary target audience, women 25 to 45, spend 14 percent more time on Facebook than other users-that usage added up to almost 500 minutes per person in one recent month. P G also works through Twitter and YouTube, creates product blogs, and has Facebook pages for all its major products, plus online advocacy campaigns on topics inspired by customer focus groups. The company's Facebook presence for its Secret deodorant, for example, addresses bullying among teen girls and helped launch the online "Mean Stinks" anti-bullying campaign, featuring Amber Riley of the TV hit Glee. Marketing for Secret has gone entirely digital, in fact. "These days, social media is an integral part of brand building," says the company's head of e-business.
And what color works best on Facebook? P G discovered that orange "can have a dramatic impact on purchase intent," says its marketing director.
QUESTIONS FOR CRITICAL THINKING
1. Do you agree with P G that online marketing will save money without hurting its brands in the marketplace? Why or why not?
2. What non-financial advantages of online marketing can P G try to achieve? How will these benefits help it increase market share?