Ten Trends for 1999
Last month we highlighted the first five of 10 trends that will have an impact on your business and your career in 1999 and into the future. This month we focus on the rest. In case you missed last month’s list, here’s a recap: 1. New business categories will invest heavily in promotion marketing; 2. Consolidation will drive marketing control into the hands of retailers; 3. The Internet will become a potent promotion tool; 4. The agency acquisition machine will continue to roll; and 5. Direct marketing and promotion will come closer together.
6. Technology will drive more promotions. Advances in computer technology and software will enable marketers to do the kinds of things that were fantasies only a few years ago. From smart cards to electronic kiosks and interactive technology, these advances will put pressure on companies offering “traditional” promotion vehicles to innovate or lose market share to those who can deliver results quicker and more efficiently.
7. Tie-ins and alliances will increase. Marketers will continue to explore strategic alliances and partnership deals. The McDonald’s-Disney decade deal was only the beginning. Universal Studios has signed similar deals with Coke and DaimlerChrysler. Look for other longer-term partnerships as marketers seek distribution opportunities and marketing platforms that enable longer planning cycles and leverage complementary communication and distribution assets.
8. Mass media will merge image with promotion. Network TV and consumer magazines will take steps to defend their franchises by building promotion strategies into their offerings. Several mass media vehicles are already becoming more promotion-minded, but look for the leaders to move their promotion capabilities from the value-added category to center stage as marketers demand more than passive eyeballs from their audiences.
9. Promotion agencies will become strategic partners. Client downsizing and new categories discovering promotion are two factors that will drive more business into America’s top 100 promotion agencies. More clients are leaning on their agencies to handle strategic planning, not just tactical execution. This has ramifications on how agencies position themselves to handle this new wave of business. Mid-size promotion agencies will struggle with how to satisfy the increasing demands of clients by investing heavily in infrastructure and expanded services. Lookfor the big to get bigger, the small to stay small, and the dozens of agencies in the middle to face the decision of which group they want to be in.
10. Branding will be the dominant marketing strategy. As never before, strong brand names will cut through the ever-growing din of claims and choices. Investments in brands will grow as marketers realize the inherent value that their strong marks have among consumers, retailers, and investors – at home and, increasingly, overseas. Marketers will continue to leverage their brands as platforms for new product introductions and forays into the Internet and elsewhere. Look for heavy investments in advertising and promotion by America’s leading brands as they attempt to protect and grow their market share worldwide.
