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A Strategy Document on  The New Marketing Paradigm Holistic Marketing ● Lateral Marketing ● High-tech Marketing by PHILIP KOTLER Documentation Sponsored by Canon
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Kotler On Marketing How To Create, Win, and Dominate Markets ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Two Challenges Facing  Indian Companies ,[object Object],[object Object],Printed on CANON
Can Indian Companies  Defend the Domestic Market? ,[object Object],[object Object],Printed on CANON
But India Needs  Stronger Marketing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Marketing is More Important  than Production! ,[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
The Strategic Trajectory  for India ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Ranbaxy Pharmaceuticals (India) ,[object Object],[object Object],[object Object],[object Object],Printed on CANON
The Case of Haier ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Five C’s Favoring India ,[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
A Quiz: Who Said This? ,[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
My Message ,[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Facing the Increasing Pressure for Marketing Accountability ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Needed: Holistic Marketing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
HOLISTIC RELATIONSHIP MARKETING FRAMEWORK Printed on CANON MARKET SPACE POTENTIAL OPPORTUNITIES BUSINESS INVESTMENT CUSTOMERS CORPORATION COLLABORATORS CUSTOMER  FOCUS CORE  COMPETENCIES COLLABORATIVE  NETWORK 2) How can we define relevant market space? 3) What are the potential opportunities emerging from the market space? 4) What business capabilities and infrastructure  required? 1) Who is involved?
4 COMPETITIVE PLATFORMS Printed on CANON Market Offerings COGNITIVE SPACE CUSTOMER VALUE BUSINESS  DOMAIN COMPETENCY SPACE Business Architecture BUSINESS  PARTNERS CRM  ERP RESOURCE  SPACE SCM Marketing Activities Operational System Creating  Value Delivering Value Customer  Focus Core  Competencies Collaborative  Network Exploring  Value
Responding to Low Margins and  the Economic Slowdown ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Improving Marketing  Efficiency and Effectiveness ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Responding to the  Economic Slowdown ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Marketing Strategies Are Showing  Diminishing Returns ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Strategies for Firms in Different Market Positions Printed on CANON Jagdish Sheth,  Singapore Marketer,  2002
Five Winning Strategies ,[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Dual Strategies ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Printed on CANON In many markets, the growing number of competitors in mature markets leads companies to target niches of low profitability. Market Size Number of competitors Average profitability of all competitors or players Y O G U R T S  M A R K E T  Time
Some Vertical Marketing Methods ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Printed on CANON Lateral Marketing Process The case of Cereal Bars into Cereals for breakfast market Cereal varieties New category Vertical Marketing Process STREETS =
Printed on CANON Baby dolls market Doll varieties New category Lateral Marketing Process Vertical Marketing Process To feel as... = Teenager The case of Barbie
Other Examples of Lateral Marketing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Check Where You Stand ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Building Brand Equity Printed on CANON
1. How Important is Branding? ,[object Object],[object Object],[object Object],Printed on CANON
A Strong Brand Improves  Demand and Supply ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Names are Important in Branding ,[object Object],[object Object],[object Object],[object Object],Printed on CANON
A Brand Must be More  Than a Name ,[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Your Company’s Brand ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
2. How Do You Develop  a Brand Concept? ,[object Object],[object Object],Printed on CANON
Branding Components ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Brand Slogans ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
There is No Such Thing as a Commodity: Differentiate by Segments  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
3. How Do You Promote a Brand? ,[object Object],[object Object],Printed on CANON
Don’t Overuse Advertising  to Build a Brand ,[object Object],[object Object],[object Object],[object Object],Printed on CANON
Tools for Building Brands ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
4. What Makes a Strong Brand? ,[object Object],[object Object],Printed on CANON
THE Y&R MODEL OF BRAND STRENGTH ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Characteristics of Strong Brands ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Strong Brands Supply Use Value  as Well as Purchase Value ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
When Do You Stretch  a Brand Name? ,[object Object],[object Object],Printed on CANON
How Do You Revitalize a Brand? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
How Do You Rationalize  Your Product Line? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
What Are the Most Frequent Causes of Brand Failure? ,[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Building Customer Equity ,[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Achieving Outcomes in Market Space ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Achieving  Deep Customer Focus ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Building Customer Equity ,[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Components of Customer Equity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Transaction Marketing vs. Customer Relationship Marketing ,[object Object],[object Object],[object Object],[object Object],Printed on CANON
Treat Different Customers Differently  ,[object Object],[object Object],[object Object],[object Object],Printed on CANON
Needed: Technology-Enabled Marketing ,[object Object],Printed on CANON
A 5 Step Model for  Database Marketing ,[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Database Marketing is Expensive! ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Does Every Business Need CRM?   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Printed on CANON Introduction Growth Mature Decline Database Management &  Warehousing Historical Database Analytics Database-Driven Marketing Performance Dashboards Marketing Mix Modeling  / Marketing Management Work-Flow Solutions  Marketing Resource Management Campaign Management Yield-Based Pricing Optimum Tools Marketing Technology Platforms  on the Market Development Curve  Source: Gary Morris, Adapted from Marketing Advocate, Inc . Predictive analytics
Precision Marketing ,[object Object],[object Object],[object Object],Printed on CANON
SALES AUTOMATION ,[object Object],Printed on CANON
Marketing Automation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Marketing Decision Models  and Marketing Mix Response Models  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Marketing Dashboards ,[object Object],[object Object],[object Object],Printed on CANON
Marketing Work-Flow Process Tools ,[object Object],[object Object],[object Object],[object Object],Printed on CANON
Exploit the Internet! ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Is New Technology Enough? ,[object Object],[object Object],Printed on CANON
Technology-Enabled Marketing: Examples ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
10 Earmarks of the New Marketing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
1. P&G Recognizes  the New Consumer ,[object Object],[object Object],Printed on CANON
Do-It-Yourself Marketing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
The Evolution of Marketing Printed on CANON Adapted from Prahalad and Ramaswamy 2004 Transactional Marketing Relationship Marketing Collaborative Marketing Time frame 1950s 1980s Beyond 2000 View of value The company offering in an exchange The customer relationship in the long run Co-created experiences View of market Place where value is exchanged Market is where various offerings appear Market is a forum where value is co-created through dialogue Role of customer Passive buyers to be targeted with offerings Portfolio of relationships to be cultivated Prosumers-active participants in value co-creation Role of firm Define and create value for consumers Attract, develop and retain profitable customers Engage customers in defining and co-creating unique value Nature of customer interaction Survey customers to elicit needs and solicit feedback Observe customers and learn adaptively Active dialogue with customers and communities
2. Develop a Focused Offering  to the Target Market ,[object Object],[object Object],[object Object],[object Object],Printed on CANON
Choose to Serve a Unique Set of Customer Values  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
3. Design the Marketing  From the Customer-Back ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
4. Focus on Delivering Outcomes,  Not Products. Printed on CANON Company Product focus Solutions focus Akzo Nobel Gallons of paint Painted cars BP Nutrition-Hendrix Animal feed Animal weight gain Cummings Diesel engines Uninterruptible power ICI Explosives Explosives Broken rock Scania Trucks Guaranteed uptime WW Grainger MRO items Indirect materials mgt. Source: Kumar
Visualize a Larger Market ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
5.  Draw in the Customer  to Co-create Value: Two Approaches ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Examples of Collaborative Marketing ,[object Object],[object Object],[object Object],[object Object],Printed on CANON
6. Use Newer Ways to Reach the Customer with Relevant Messages ,[object Object],[object Object],[object Object],[object Object],Printed on CANON
Newer Ways to Reach Customers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Creating Buzz on the Streets ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
7. Develop Metrics and ROI Measurement Printed on CANON Products Brands Channels Customer Segments Markets Relative product quality Brand awareness Channel penetration Customer satisfaction Market penetration Perceived product quality Brand esteem Channel trust Average transaction size Market share Percentage of sales from new products Brand loyalty Channel efficiency Customer complaints Sales growth Product profitability Brand profitability Market share in each channel Customer acquisition costs Market profitability Channel profitability Customer retention rate Source: Kumar Customer profitability
8. Develop High-Tech Marketing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
9. Focus on Building  Long-Run Marketing Assets. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
10. View Marketing Holistically ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Two Models of Management ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON Source: Frederick Reichheld, The Loyalty Effect
Conclusions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Printed on CANON
Printed on CANON “ This time like all times is a good one, if we but know what to do with it.” Ralph Waldo Emerson THANK YOU!

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Philip Koteler Los 10 Principios Del Nuevo Marketing 1225017881114107 9

  • 1. A Strategy Document on The New Marketing Paradigm Holistic Marketing ● Lateral Marketing ● High-tech Marketing by PHILIP KOTLER Documentation Sponsored by Canon
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  • 16. HOLISTIC RELATIONSHIP MARKETING FRAMEWORK Printed on CANON MARKET SPACE POTENTIAL OPPORTUNITIES BUSINESS INVESTMENT CUSTOMERS CORPORATION COLLABORATORS CUSTOMER FOCUS CORE COMPETENCIES COLLABORATIVE NETWORK 2) How can we define relevant market space? 3) What are the potential opportunities emerging from the market space? 4) What business capabilities and infrastructure required? 1) Who is involved?
  • 17. 4 COMPETITIVE PLATFORMS Printed on CANON Market Offerings COGNITIVE SPACE CUSTOMER VALUE BUSINESS DOMAIN COMPETENCY SPACE Business Architecture BUSINESS PARTNERS CRM ERP RESOURCE SPACE SCM Marketing Activities Operational System Creating Value Delivering Value Customer Focus Core Competencies Collaborative Network Exploring Value
  • 18.
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  • 22. Strategies for Firms in Different Market Positions Printed on CANON Jagdish Sheth, Singapore Marketer, 2002
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  • 25. Printed on CANON In many markets, the growing number of competitors in mature markets leads companies to target niches of low profitability. Market Size Number of competitors Average profitability of all competitors or players Y O G U R T S M A R K E T Time
  • 26.
  • 27. Printed on CANON Lateral Marketing Process The case of Cereal Bars into Cereals for breakfast market Cereal varieties New category Vertical Marketing Process STREETS =
  • 28. Printed on CANON Baby dolls market Doll varieties New category Lateral Marketing Process Vertical Marketing Process To feel as... = Teenager The case of Barbie
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  • 63. Printed on CANON Introduction Growth Mature Decline Database Management & Warehousing Historical Database Analytics Database-Driven Marketing Performance Dashboards Marketing Mix Modeling / Marketing Management Work-Flow Solutions Marketing Resource Management Campaign Management Yield-Based Pricing Optimum Tools Marketing Technology Platforms on the Market Development Curve Source: Gary Morris, Adapted from Marketing Advocate, Inc . Predictive analytics
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  • 76. The Evolution of Marketing Printed on CANON Adapted from Prahalad and Ramaswamy 2004 Transactional Marketing Relationship Marketing Collaborative Marketing Time frame 1950s 1980s Beyond 2000 View of value The company offering in an exchange The customer relationship in the long run Co-created experiences View of market Place where value is exchanged Market is where various offerings appear Market is a forum where value is co-created through dialogue Role of customer Passive buyers to be targeted with offerings Portfolio of relationships to be cultivated Prosumers-active participants in value co-creation Role of firm Define and create value for consumers Attract, develop and retain profitable customers Engage customers in defining and co-creating unique value Nature of customer interaction Survey customers to elicit needs and solicit feedback Observe customers and learn adaptively Active dialogue with customers and communities
  • 77.
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  • 79.
  • 80. 4. Focus on Delivering Outcomes, Not Products. Printed on CANON Company Product focus Solutions focus Akzo Nobel Gallons of paint Painted cars BP Nutrition-Hendrix Animal feed Animal weight gain Cummings Diesel engines Uninterruptible power ICI Explosives Explosives Broken rock Scania Trucks Guaranteed uptime WW Grainger MRO items Indirect materials mgt. Source: Kumar
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  • 87. 7. Develop Metrics and ROI Measurement Printed on CANON Products Brands Channels Customer Segments Markets Relative product quality Brand awareness Channel penetration Customer satisfaction Market penetration Perceived product quality Brand esteem Channel trust Average transaction size Market share Percentage of sales from new products Brand loyalty Channel efficiency Customer complaints Sales growth Product profitability Brand profitability Market share in each channel Customer acquisition costs Market profitability Channel profitability Customer retention rate Source: Kumar Customer profitability
  • 88.
  • 89.
  • 90.
  • 91.
  • 92.
  • 93. Printed on CANON “ This time like all times is a good one, if we but know what to do with it.” Ralph Waldo Emerson THANK YOU!

Notas del editor

  1. Welcome. I appreciate being invited to speak in India. I spent 9 months in India many years ago and have made several re-visits since then. This is not to lay claim that I am an expert. Nobody is an expert on India. On past visits, I described India as a caged tiger. Today the cage door is open and you are coming out. In an article by Jeffrey Sachs entitled “Welcome to the Asian Century,” he estimates that by 2050 China and India will each overtake the U.S economy in size. China’s GNP has grown about 10% a year since the 1970s and India’s about 6% while U.S. economic growth as run around 3.5%. Both countries are relatively well managed politically and economically and are attracting foreign investment and developing high tech capabilities. In fact, we are seeing the rise of an integrated Asian economy linking Southeast Asia and southern Asia and Northeastern Asia. This news is both good and bad for the U.S. The concept that the U.S. is the world’s sole superpower and manager—the new Rome--will have to be abandoned. The good news is that world prices will be held down. We will also see more scientific and technological advances coming from Asia. Already many of the best scientists and engineers in the U.S. are from India. I am going to describe what India needs to know to grow and prosper.
  2. Drucker, Yogi Berra, A Chinese Proverb, William Davidow, David Packard
  3. Wal-Mart Strategy Objective : Win by owning lowest price end of the market. Strategy : Find ways to lower all important costs of doing business. Tactics : Build the stores at the lowest cost by causing landowners and towns to compete by giveaways Maintain the lowest inventories by developing a real time information system to order only for restocking Pay low wages by offering other benefits to attract workers and keep out unions Carry fewer brands and extract best deals from these brands based on volume; after a brand depends on us, press them for reduced prices. Don’t spend money in expensive advertising Southwest Airlines Objective : Win by charging the lowest prices in order to attract not only passengers of other airlines but also car drivers Strategy : Bring down all critical costs Tactics : Develop short-distance routes connecting high traffic inter-cities Use only one airplane type to simplify training and inventory Don’t serve food and therefore reduce cabin crew size Don’t use travel agents; sell tickets directly Don’t offer to transfer luggage Don’t offer higher classes of service Southwest Airlines - Activity System (Porter) Ikea Objective : Win by offering good quality furniture at the lowest price Strategy 1 : Reduce all the important costs of doing business Tactics: Reduce shipping costs by developing knock-down furniture Get customers to locate and load their own purchases Get customers to carry home their purchases Don’t advertise Strategy 2 : Make the store an attractive destination Tactics: Add a good value restaurant Add a day-care center Strategy 3 : Create a membership program Tactics: Send regular catalogs to members Set up discounts below normal price for members Nike Objective : Win by creating the largest volume and deepest profit margin Strategy 1 : Create the most exciting shoes Tactics: Hire famous name athletes and design shoes around them Design and test shoes for highest performance Strategy 2 : Create exciting retailing Tactics: Niketown Strategy 3 : Produce shoes at lowest cost Tactics: Outsource production in the Far East Harley-Davidson Objective : Become a cult product Strategy : Win by creating a community as well as a legendary product Tactics : Develop a membership program (HOGS) with many benefits Sponsor many events for owners to congregate and travel together Keep production volume low so that customers have to wait for the motorcycle Enterprise Rent-a-Car Objective : Grow volume by renting cars at the lowest cost Strategy: Reduce the costs of running a car rental firm Tactics: Stay away from high rentals in airports Open in low cost areas near automobile dealers and good traffic Get close to car repair companies
  4. In the mid-1990s, the RBC decided to restructure into a customer-centric enterprise. The Bank asked these questions: How long would it take for the system to be operational? How much will it cost? How much will the incremental revenue be per year? The bank invested and developed a centralized customer database that could project: customer lifetime values customer “growability” to offers customer vulnerability in order to take preventive action. Halifax: As tellers conduct customer transactions, their system suggests relevant products based on PA. Teller tells about offer and if customer accepts brochure, he/she is contacted later.
  5. Consumer expectations are changing. Consumers used to “lean back” – as passive recipients of one-way broadcast messages. Today, they “lean forward.” Consumers want a conversation, to dialogue, to participate, to be more in control. Consumers expect more personal attention – communication, products and services that are tailored to their wants and needs. Consumers will expect customization, so products and services reflect their unique wants and needs. Marketing is being redefined. We’re going from one-dimensional, product-myopic marketing to three-dimensional marketing – that offers better solutions – product and/or service solutions – more delightful experiences – shopping, usage, total brand experiences…and the opportunity for on-going relationships – meaningful relationships between an individual and his or her brand. Alan Lafley, CEO, P&G
  6. Sponsorships . Companies have put their names on stadiums, whole teams and on individual athletes in gain attention. Mentions on talk shows . David Letterman during his evening show sent a camera crew out to get Snickers candy bars and ended up talking about it on three subsequent occasions. Product placement . James Bond in Die Another Day drove an Aston Martin, used a Sony cellphone, and prominently featured an Omega wristwatch. Street-level promotion . Companies have hired actors and actresses to walk in busy areas and ask passerbyers to take a picture of them using their new camera phone. Celebrity endorsements . Michael Jordan gave a boost to Nike shoes, McDonald’s, Hanes underwear, and Rayovac batteries. Body advertising . College kids agreed to paste Dunkin’ Donuts logos on their foreheads during an NCAA basketball tournament. Mobile billboards.