Engaging consumers through word of mouth marketing
Curriculum Topics • The marketing function • Promotional approaches • Word of mouth (WOM) • Evaluating promotional activities Red Bull Wings Team Red Bull Cliff Diving
In today’s society, consumers are bombarded with promotional messages from organisations. Consumers receive these messages when they listen to the radio, watch television, read a newspaper, commute to work or simply walk around a city centre. Effective promotion relies on the message reaching the consumer in an accurate and timely way. However, there are so many messages it can be difficult for a business to reach its target audience. Promotional messages can easily become simply noise. They crowd the marketplace and make everything more confusing for consumers. This creates a marketing problem. To address this problem, some marketers look for new ways to communicate with consumers. They seek to break the traditional rules of marketing by reaching consumers in innovative ways. Dietrich Mateschitz founded Red Bull in 1984 after discovering the widespread popularity of tonic drinks in the Far East. He developed the Red Bull Energy Drink, launching the product on the Austrian market in 1987. The Communication Process Noise Sender Encoding Message Message Channel Message Channel Decoding Message Receiver
Since then, Red Bull has launched a range of products, including Red Bull Cola in 2008 and Red Bull Energy Shots in 2009. Today Red Bull has annual sales of around 4 billion cans in 160 countries. It employs more than 7,700 people. Red Bull has a distinctive approach to marketing. It uses a progressive marketing strategy. This type of strategy aims to constantly evolve and develop the brand. This approach allows Red Bull to engage with consumers using new and exciting channels of communication. In recent years social media has become a vital marketing tool for many organisations. Its increasing popularity, predominantly with young audiences, has had a huge impact on modern marketing techniques. Digital and social media campaigns are integral to Red Bull’s marketing strategy. This case study illustrates how Red Bull, the manufacturer of the world’s best-selling energy drink, uses a range of innovative promotional techniques to improve the process of communication and drive consumer engagement and loyalty.
The role of the marketing function
To meet the needs of its customers, every organisation seeks a distinctive marketing mix. This is often referred to as the 4Ps. It involves focusing on: • product – the specific features and benefits of the product • place – where and how the product is sold • price – setting the right price in each market • promotion – using the most suitable form of promotion to reach customers.
Noise: Barrier or filter to communication between the sender and receiver of a message.
Innovative: Tending to devise and/or adopt novel or breakthrough ideas.
Marketing mix: The combination of product, price, promotion and distribution (place) used to generate profitable sales – often called the 4Ps.
Red Bull | Engaging consumers through word of mouth marketing
For example, the marketing mix for Red Bull Energy Drink is based around: • a distinctive product - the taste of the product is unlike any other, it also has a functional effect in comparison to other soft drinks • it is easy to obtain as it is sold in a variety of places - including retail outlets and food and drink establishments • Red Bull uses a premium pricing strategy. The product is priced above that of competitors’ products. Consumers will pay a premium for Red Bull due to the quality of the product and the product’s benefits. This is reflected in the fact that it is the world’s best-selling energy drink. However, perhaps the most interesting element of Red Bull’s marketing mix is its approach to...