MSc in Management
Marketing and Strategy
The Case Report: Changing Nature of Marketing Communications
ID: 4601933 Suwapach Thamavitkul
ID: i7634469 Warin Phonphaisan
TABLE OF CONTENTS Title
Question and Answer
This report will be mainly focused on the changes in the use of marketing
communications based on the IBM report ‘the End of advertising as we know it’. This IBM report will illustrate scenarios of how marketing communications, in particular advertising, were predicted to change from 20072012. According to the case report, IBM surveyed approximately 2,400 consumers and another 80 for advertising executives worldwide. From the result, they can see four change drivers: attention, creativity, measurement, and inventories. The result of the survey also shows increasingly empowered consumers, higher selfcontained advertisers and gradually developed technologies are redefining how advertising is created, sold and consumed. However, the next five years from 2012, the traditional advertising marketers have to consider new interaction formats that can help them on consumer behaviour, business model and design innovation. The IBM case is used to investigate the changing nature of marketing communications as a real contemporary topic.
QUESTION 1 Summarise what the report’s authors considered would happen to the strategic use of marketing communications (particularly in advertising) after 2007 and to what extent you think what they predicted has actually happened in seven years 20072014?
According to IBM report; “The End of Advertising as We Know It” (Berman 2007), stated that the strategic use of marketing communication especially in advertising area will shift to the point that can be explained into 4 topics; attention, creativity, measurement, and
Firstly, Attention; in the report of IBM Institute for Business Value (Berman 2007) stated that consumers spend less time on TV and gain more control of how they view and react to advertisements which results in the decline of traditional advertising such as TV commercial. Consumers tend to shift from traditional television to new content sources such as online video sites, YouTube, Myspace, and Facebook. The report also predicts that advertisers will shift trends from traditional TV to search, mobile, IPTV and online video ads.
In order to prove that this prediction has actually happened, Forbes (2011) states that marketers uses Facebook to be one of the channels of advertising. Facebook using power of
“word of mouth” as the tool for advertising. When people "Like" a brand that endorsement, it spreads to every of their friends’ news feed. For Example, Mars Chocolate North America using Facebook to promote their product ; M&M’s Pretzel by offering samples to their 40,000 fans on Facebook and each fan could Spread the offer to their friends, resulting in over
120,0000 samples were released in 48 hours.
Creativity; In the report (Berman 2007) indicates that user generated content (UGC) such as YouTube, Current TV will be more popular because of its cost effectiveness because anybody can contribute the content due to an inexpensive image and video editing tools. To prove this prediction, in 2009 according to New Media Age (2009) Sony launched a