Guerrilla Marketing- Second and Third Order Thinking

Example- Canadian Taxpayers Federation

The Canadian Taxpayers Federation put 82 lawn signs (pig figures, one for each member presumably) on the lawn outside the Alberta Legislature to protest against the 'obscene' increases in Alberta politicians' pay. The cost for this stunt is about five bucks a lawn sign. They get national exposure for their story, as a result.



Example- Taco Bell Corporation

In addition to the brilliant coup of floating a target in the South Pacific for Mir to hit (www.tacobell.com), Taco Bell's NYSE symbol is 'YUM'. This is more guerrilla marketing. Most companies would perhaps have used 'TBC' for Taco Bell Corporation. Yum is so much better for a food company, don't you think?

What is guerrilla marketing? Essentially it is where you substitute brains for simply spending more marketing dollars. Calling Taco Bell 'YUM' on the NYSE doesn't cost anymore but it is smart marketing.

One of the students asked: "Can they do that?" This is probably the hardest thing for new entrepreneurs to learn- you make up your own rules (subject, of course, to the rule of law).

Taco Bell also scored another world wide coup by stationing a floating rubber target off the coast of Australia which, if any pieces of the decommissioned Mir Space Station were to hit it, would entitle everyone in continental USA to a free Taco. (Taco Bell took out insurance on this, by the way.) A phot of their floating target was carried by major news outlets across the planet.

Example- Intel, American Express

Many companies have entered into litigation with holders of the acmecompanysucks.com domain name registrants. The automatic knee-jerk response is that the (insert your company name here)sucks.com holder is infringing on your company trade mark right? The www.sucks.com people (Dan Parisi) have maintained that these sites are places and spaces where people can go to vent their sometimes legitimate complaints- that the right to freedom of expression will, in effect, outrank the right of the trademark holder, a rather persuasive argument.

Other companies like Intel and American Express are a lot smarter- rather than sue, they say the sites are o.k. They provide management with feedback that they probably couldn't get any other way. Middle mamangers usually aren't as forthcoming as, say, an irate customer. It is a form of inexpensive, independent product research- guerrilla marketing research, if you will.

Example- CIRA, Canadian Internet Registration Authority

Example- Les Ailes de la Mode

This upscale fashion retailer came out of nowhere to create a sensation in its industry. They were the first to issue a credit card, which thanks to a microchip in it, allowed the retialer to give each of its 80,000 card holders an electronic $10 coupon every month, no questions asked.

Example- Leveraging your Assets (Turning cost centres into 'profit' centres- seeing assets where before there were only liabilities!)

Roger has a small real estate company in Ottawa. He is budgeting $50,000 for marketing in this calendar year. His accountant, Bill, notes that the ads that Roger's company is running often mention partners; people like home builders, framers, landscapers, lawyers, well drillers, other clients and customers. Bill goes on to point out: "This is like the 'mini-office' concept applied to our newspaper ads and our on-site signage too. Roger, you have seized the 'high' ground- we now 'own' very valuable space at the bottom of the Business to Business Classified section every Wednesday and you have bought it at a 'wholesale' price. Perhaps you can lay off some of our costs on our clients and partners so that we acquire space at a reduced cost.This is Guerrilla Marketing 101! Regards, Bill."

It is thinking like this, which is at a micro scale that, when applied enterprise-wide (i.e., at a macro level), can make a huge difference to the profitbility of the business. It requires creativity and attention to detail. You can become more creative by training yourself to look at problems with a view to spotting opportunities where before you saw only the negatives. You must force yourself to look, and look again and again- creativity requires focus and time; time to let your subconcious work on the problem too.

Student Note: Guerrilla marketing and leveraging your assets are important tools for entrepreneurs to use. Having said that, it is also important for the new entrepreneur to ensure that they respect the property, copyright, intellectual property and all of the laws, rules and regulations of their country of operation. In the case cited above, "Roger" should make sure that he brings in his partners and others in a co-op advertising program, which is a well accepted practice. He should ensure that he is not reselling or 'subletting' if you will the advertising space he has contracted for.

Example- Reducing Your Costs

Ottawa-Carleton Transpo (OC Transpo) is caught in a cost squeeze. Costs of operating their bus transit system are up and ridership is down. To make matters worse, in January 2001, the city and its environs are merged by the provincial governement (Ontario) into a new super city to be called simply the "new City of Ottawa". The old Regional Municipality of Ottawa-Carleton ceases to exist and, hence, their name 'OC Transpo' must change. This means repainting hundreds of buses, a cost they can't afford. Instead, OC Transpo management run a rename-the-company contest with one interesting proviso: the new name must use the old 'OC' initials. The result is the eminently practical new name for the bus company: "OC Transpo" short for Ottawa Canada Transpo.

Example- Sharing Costs (More Leveraging)

A young entrepreneur in the security business (they photo ID homeowner and commercial possessions using encrypted CD ROMs) writes to his B. School Prof:

"Here is something that happened today that I am pleased about.

Guerilla marketing is the topic.

There are two trade shows that are coming up in the next two months. They are the Spring Home Show in Ottawa and the Ontario Camping Association (OCA) show. In regards to the OCA show, I had a good response last year and I made some money from this niche. So I am thinking, the booth costs $500, I think I should go but I need to rethink all my strategies that I have used in the last year. During the night, when I was awake, I thought of an idea. I made a very good contact with the head insurance broker for all the camps across Canada. I emailed her this morning suggesting we share a booth. As we both have something in common. She sells insurance, I sell a service that can help during an insurance claim. She emailed me back a few hours later say she thought that was a fine idea. I think this was good, all Camp Directors will talk to Nancy and I will be there right beside her.

So after a long story, thank you about making me aware of guerrilla marketing. I pay for half a booth and I get to build a stronger relationship with Nancy.

Regards, Al"

Example- Attack Web Site

A large company is stuck with a huge environmental hearing and implaccable enemies. It creates a web site sponsored by its suppliers, customers and others in the community to create third party support for the Company's expansion plan. The expansion is reasoned, well planned and well studied.

The opponnents (anti-globalist fanatics) al;ready have web sites that serve to attack this company and others. Their sites are money makers really- they attack high profile companies to generate media coverage- this drives people to their web sites and once there, they make contributions.

They are not registered with the IRS; they are simply money machines.

The company creates this third party sponsored web site which simply expresses support for their workers. By pinging the site, emails are generated automatically that go to the enemies list. Used to having it all their own way, the enemies react explosively and email the site laying out their entire strategy in advance of the hearing. The attack site acts as a one way mirror with information flowing one way.

In war and business, this can be a distinct advantage.

The web site cost less than $10,000 to set up.

Example- Faces Count

In cyberspace, the metaverse, in mainstream media, faces count. People will pass over hundred thousand dollar, full page spreads showing, for example, fancy cars but they will look at your teensy ad showing a face. It can be your face (remember when Loblaw President's Choice used to use Dave Nichol's face everywhere?) or your nephew or niece- an image for your company that personalizes your product. People buy from people they like (and trust). I suggest to people on the web, use faces! Put a photo of your team on your web site. Even in the stateless world of the metaverse, faces count.

Example: Mazda Miata

Over a urinal at Carleton University in Ottawa, Canada, there is a poster of a fine automobile- the Mazda Miata. The byline is "Miata Here." pronounced: "Me ... A ... Outta Here!" Now that has to appeal to students in their last year.

The Mazda.ca web site allows you to select english or french. They don't just use "Enter" or "Click Here". Instead they say: "Move me in English." For a car company, that is pretty cool- a triple meaning.

Example- Truely Guerrilla Marketing 1

A local high tech company doesn't have the marketing budget to put inserts into the local newspaper for distribution to their target market. Early one morning, the founders go out with abundant pocket change and they open the paper boxes and insert their marketing brochure; then close up the boxes and wait for the phone to ring.

Student note: this is probably illegal. Don't do this but it is an example of clever thinking nonetheless.

Example- Truely Guerrilla Marketing 2

In the early days of a local business publication, they dress up an employee in an outrageous costume and he goes about town putting money into parking meters before the parking police can ticket the vehicle. They call up the local radio and TV stations and get blanket coverage. The Mayor denounces the practice but citizens feel good about the new good samariatan in town and the paper presumably too.

Example- Truely Guerrilla Marketing 3

A local tech company puts up hundreds of $2 placards along the main drag where techies tend to go advertising their web site and for recruitment purposes too. They put them up on a Friday night after the city workers go home and they remain up for five days before the City has the (illegal) signs removed. The campaign is cheap, cheerful and successful.

Example- Truely Guerrilla Marketing 4

A local Subway franchisee takes over a loser of a location. Every day at 10:30 am he sneaks over to the megamall parking lot and puts $1 off sub coupons under the windshield of 500 cars. He runs back to his shop and waits for the traffic to come in the door. He also visits every local office within three kilometres between 11:00 am and noon weekdays over an 18 month period. He brings in a huge platter of finely cut subs and a bunch of $1 off coupons. He talks his way past the recepitonists and gets into even highly secure buildings and hands out free food and coupons by the bucket load. Within two years that location alone is making over 100 grand for him and his family.

Example- Using Your Existing Assets

What type of car do you drive? If it is relatively new and if you keep it clean, then you could consider adding your corporate logo and web address to the passenger side, driver's side, rear and front (in mirror image). This is free advertising for you that works 7 days per week. But is has to be done well. DO NOT USE THOSE HORRIBLE RUBBER MAGNETIZED MATS THAT STICK TO THE CAR. This would be reverse marketing.

Bill Renaud, one of Ottawa's most successful real estate agents, uses his vehicles this way. If you do it, it has to be done well and depending on what type of business you are in, it can be done in an understated kind of way.

Example- How to Collect Email Addresses With the Permission of and Indeed the Willing Participation of Your Target Market (From Jeff Ward)

Here is an email that a lot of people have been getting from their friends. Not only does Labatt look good, direct people to the beer.com site, they get to collect e-mail and contact information, plus friends spam one another with
the email. All at almost no cost. Nice....

"Subject: Another Long Weekend!

Labatt Blue Light is petitioning the Ontario government for a new long weekend in June. This is serious...they're really
doing it.

The petition comes on the heels of a national survey that says about HALF of Canadians don't have enough free time
and that they have less free time than they did five years ago.

Make your voice heard now. Go to http://www.enlist.com/cgi-bin/re/freeyourtime and sign the petition. And pass this along!"

(Editor's Note: This is an example of guerrilla marketing by Labatt that uses a supposedly third party to promote Labatt Blue and it uses the power of the web for geometric growth.)

Example- Students Design Clinic, School of Architecture, Carleton University, Ottawa, Canada.

Example- Digital Guard

Digital Guard provides a secure, visual home inventory for insurance and estate purposes for $99. Who beneits? The insurance companies do. So DG should ask the insurance companies to: a) promote the service to their agents and brokers, b) offer $20 off coupons for purchase of the DG service (50% paid by DG and 50% paid by the insurance company) to their agents' and brokers' clients who purchase DG services (note that the insurance companies only pay (50%) for coupons that are actually used), c) give their clients who use the DG service a one time $99 off either their premiums or, even better, $99 off their first deductible claim (better because unless they make a claim, they don't get the $99.) Better yet, let Digital Guard evolve into a claims processing utility, reversing out the work to insurance company clients and customers in return for a percentage fee of all claims.

Example- Instant Web

Set up a booth in the local market. Sell people and SMEs on first time web sites. Your real business is web hosting- making money while "lying on a beach"- a scalable business that becomes independent of your hourly wage slave lifestyle.

Example- Selling a Commercial Building

The best place to find someone to buy your shopping plaza is by talking to your tenants. Instead of asking them to buy your building, which might frighten them, ask them if they want a build-to-suit next door on vacant land you own. Your downside is that they do, in which case you have sold a new piece of land and made a fee on managing their new construction. Your upside is that they conclude it is too expensive or difficult or takes too long but they enquire about buying their existing location.

Example- No Money Down Startups, Making Money on the Internet and Momentous.ca





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