According to BtoB Magazine:

An overwhelming majority (89.2%) of marketers surveyed said they are getting “more value” out of their current events compared with three years ago, and 85.5% said they are implementing the same number of events or more than they were three years ago.

More than a third (36.5%) cited experiential marketing as the most effective vehicle for developing a bond between a company and customer, besting, in order, advertising, direct marketing, sales promotion, online and public relations.

Maybe that’s why Kraft Foods, a $500 billion juggernaut, is announcing that it will…:

…forgo at least some of its profit growth the next two years to spend more on marketing. Her overall goal is to increase marketing as a share of sales from its current 6.9% to between 8% and 9% by 2009. That amounts to a total increase of between $370 million to $750 million in marketing spending over the next two years.

But that won’t all be in traditional media, or in what will be counted as advertising spending as opposed to promotion and other kinds of marketing, she said, promising an unspecified nontraditional effort behind this year’s rollout of DiGiorno Ultimate.

And if we’re still unconvinced, check out this, this and this.

One comment

  1. I think Kraft has a long way to go in figuring out how to legitimize its planned-for marketing expenditures. Those costs in the grocery business usually involve price cuts and other promotions; the branding expenditure is supposed to allow the brands to stand above those nasty fist-fights, only the efficacy of those spends has been declining over the past few years (and if there were any good way to measure them anyway, altho Kraft’s stinky financial results are probably one good indication). Experience matters, not image, and just like apparel retailers all selling the same clothes and colors, I think Kraft has to figure out not WHAT it is going to spend, but rather HOW it will spend it. More bad ads aren’t going to do anything other than force all those packaged goods marketers to find new jobs, don’t you think?

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