Reaching the smokers

Philip Morris, maker of Marlboro, the world's best-selling packaged product, spends more than $2 billion a year on advertising. “We have to be creative in reaching out to our adult consumers,” says Kati Otto, manager of media affairs at Philip Morris USA.

The company's “Marlboro Ranch” parties, often held in bars in big cities, have become a common part of American nightlife. They are heavily advertised. Competitions at these 15 parties send winners to a five-day ranch holiday in “Marlboro Country”, mountainous western states such as Montana and Arizona.

Guests also take home various prizes: cameras, sunglasses, jackets and bags - all in Marlboro colours. “The Marlboro Ranch parties increase brand value, and reinforce loyalty to the brand,” Ms Otto says. “It is truly a once-in-a-lifetime experience, and people often come back as loyal Marlboro smokers.”

“This kind of advertising is almost on a one-to-one basis,” according to David Adelman, a tobacco analyst for Morgan Stanley Dean Witter. “People often smoke the cigarettes their friends smoke. It is very hard to get people to try a new brand because it is about loyalty, image and taste.”

By Rebecca Knight

From the Financial Times

1. Imagine that each paragraph in the article has a heading. Choose the best heading for each paragraph from the list below and number them in the correct order.

a) Why promotions such as ranch parties are necessary in cigarette advertising

b) Philip Morris's advertising budget and philosophy Marlboro Ranch parties - competitions for five-day c) ranch holidays

d) Marlboro Ranch parties - other prizes

2. Match 1-6 with a)-f) to form expressions from the article.

1. reach out to a) parties

2. hold b) loyality

3. take home c) consumers

4. reinforce d) a new force

5. smoke e) prizes

6. try f) cigarettes

Over to you

What events with consumer participation would you organise to promote these products?

• running shoes

• four-wheel drive vehicles such as Jeeps and Land Rovers

• camping equipment

• soft drinks

Unit 14 Marketing

Fun Marketing.

Level of difficulty **

Before you read

Do you usually think of computers as exciting things to look at? Why or why not?

Reading

Read this article from the Financial Times and answer the questions.

Computers as a colour experience

Companies in many industries are turning away from their traditional marketing practices that concentrate on features and benefits. “Experience” marketing focusses on customers' sensory, emotional and intellectual experiences when they use a product, shop for it, browse the web or participate in any other marketing-related activity. Consider Apple Computer. For a long time its shares did badly on the US stock market. But now Apple is back.

This success was not achieved with better products in a functional sense. While other computer makers continued to compete on speed, memory and hard disc space, Apple made its products different from the competition by introducing colour into the world of grey computers.

Products such as the iMac, the iBook and the G4 appeared in five different bright colours. Rather than presenting a boring list of features and benefits, Apple commercials persuaded consumers with 1960s music themes. Computers have become playful: “Collect all five”, said one advertisement.

Bernd Schmitt

From the Financial Times

1. True or false?

a) The features of a product are what it looks like, the special things it does, etc.

b) The benefits of a product are the disadvantages that it has for users.

c) “Experience” marketing is about informing consumers of product features and benefits.

d) There was a period when Apple was not successful.

e) Apple tried to show that its products were technically better than those of competitors.

f) Apple advertisements are serious when they say that you should buy five computers.

2. Put these product descriptions into two groups:

A) ordinary features-and-benefits marketing or

B) “experience” marketing.

a) This notebook computer has 10 megabytes of hard disk space.

b) These computers are available in a fabulous range of colours.

c) This car is fun to drive.

d) This car has five doors.

e) This interactive internet site is a pleasure to look at and use.

f) This internet site gives you up-to-the-minute share prices of 500 companies.

Over to you

What are the traditional colours for these products? What colours do you suggest to make them more interesting and attractive?

• washing machines

• hi-fi equipment

• business suits

• bathroom equipment

Unit 15 Planning

Time management.

Level of difficulty ***

Before you read

Do you manage your time well? What techniques do you use?

Reading

Read this extract and answer the questions