Community marketing

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Community marketing is the jointly financed or operated perception of marketing measures by all companies in an industry . As a substantial part of the measures often in the form of advertising is provided, is often synonymous of Community Advertising spoken.

history

The invention of collective advertising goes back to the befriended entrepreneurs Otto Henkell and Ludwig Stollwerck . Both began using joint advertising around 1900. They organized in 1904 a contest "to drafts of illustrations for the purpose of propaganda for their brands of chocolate or cocoa and champagne". The "pictorial recommendations to use as newspaper advertisements, posters and illustrated postcards" should represent the use of both product groups together. A portrait format of 25 cm wide and 34 cm high was stipulated for all designs . A first prize of 2,000 marks (M.), two second prizes of 1,000 marks each, six third prizes of 500 marks each and ten fourth prizes of 200 marks each were offered 200 marks each . Emil Doepler d. J. from Berlin, Woldemar Friedrich from Berlin, Klaus Mayer from Düsseldorf, Bruno Schmitz from Berlin, Raffael Schuster-Woldan from Munich, Franz Skarbina from Berlin and Kommerzienrat Friedrich Wilhelm Georg Büxenstein from Berlin.

In the competition, Eugen Kirchner in Munich received the first prize (2,000 marks), the two second prizes (1,000 marks each) Julius Diez in Munich and Friedrich Stahl in Florence, and Albert the six third prizes (500 marks each) Klinger in Charlottenburg, Ludwig Hohlwein in Munich (two prizes), Fritz Klee in Munich, Bernhard Halbreiter in Munich and Elly Hirsch in Berlin, the fifteen 4th prizes (200 marks each) Anton Kerschbaumer in Munich, Johann Baptist Maier in Munich, Gg. v. Kürthy in Budapest, Fritz Helmuth Ehmke in Düsseldorf, Paul Leuteritz in Munich, Otto Kleinschmidt in Munich, Ulrich Hübner in Berlin, Anton Hoffmann in Munich, Otto Ludwig Naegele in Munich, Peter Würth in Würzburg, Fritz Klee in Munich, Ernst Oppler in Hamburg , A. Altschul in Berlin, Ant. Jos. Pepins in Dresden and August Geigenberger in Wasserburg am Inn.

In addition to the designs of the award winners, Ludwig Stollwerck bought 90 designs from other artists at a price of 200 marks each. He had a total of 114 drafts photographed and put together as reproductions in a selection book, in which he noted on the first cover page “For the assessment of all employees of the company [note: Stollwerck], and especially their women, since the Stollwerck reclame mainly addresses the female world has to judge and therefore has to impose a certain reserve. ”Among them, he gave ratings from 1 (well usable) to 4 (completely useless).

development

Community marketing is particularly suitable for products that offer few opportunities for differentiation. This applies, for example, to raw materials or processing materials (plaster of paris, concrete, steel, wool). The 400,000 or so farms are particularly exposed to the problem of low product differentiation. Therefore, since the 1970s, community marketing has become particularly popular as an agricultural marketing tool . As a result of the Sales Fund Act of 1969, the Centrale Marketing-Gesellschaft der deutschen Agrarwirtschaft mbH (CMA) was created as an independent institution for the joint marketing of German agricultural products. As part of community marketing, manufacturers and processors from various stages of the agribusiness value chain participate in the financing of the measures for individual product groups . In the early days of community marketing, community advertising represented a relevant part of total advertising spending.

Review: today's limits

Problems in community marketing today arise primarily in the following areas:

  • In the meantime, corporate brand advertising has expanded significantly compared to the 1960s, while the budget for community advertising has developed much less dynamically. In the ten years between 1986 and 1995, the share of community advertising in total advertising spending decreased from 56% to 28% for meat and from 25% to 9% for milk. This can create conflicts between branding and community advertising.
  • With increasing market saturation , collective advertising for individual agricultural products can possibly lead to the cannibalization of the individual products. Successful sales of one product are at the expense of another product, since the total sales of food cannot be increased at will.
  • As the international markets become increasingly interlinked, the problem of decreasing group profitability increases. The joint advertising of the CMA, for example, is increasingly benefiting foreign providers on the German market who do not participate in the domestic financing of the sales fund through special taxes .

Criticism: challenges

The challenges for community marketing for agricultural products lie in the following areas:

  • Financing: The financing of the sales fund , German wine fund and wood sales fund is based on a special levy, the future of which is uncertain. Experience with the mobilization of voluntary levies, however, shows that a "compulsory" collective levy is a necessary prerequisite for sustainable funding for community marketing measures.
  • Content design: The questionable effectiveness of generic advertising (milk, meat, butter, etc.) makes it necessary to redesign the marketing mix . It should be considered whether measures in the area of ​​public relations and the promotion of the sale of product groups are more appropriate.
  • Target groups : In view of the domestic market saturation, it seems worth considering shifting joint marketing for agricultural products and food primarily to foreign markets and thus to export marketing , since the cannibalization effect there is less likely to set in, and the market successes of domestic suppliers to the detriment of foreign market participants go, but not at the expense of other domestic co-financiers of the marketing measure.

Legal position

The Federal Administrative Court has ruled on the occasion of lawsuits Rhineland-Palatinate winemakers and wineries November 24, 2011 the last instance that the wine tax (the German wine fund raises them forcibly from all German wine growers and wine producers) is constitutional.

literature

  • Otto Strecker: Community marketing for food. In: Agriculture. 20th vol. (1971), pp. 281-285.
  • Otto Strecker, Josef Reichert, Paul Pottebaum: Marketing for food. DLG-Verlag, Frankfurt 1976, ISBN 3-7690-0285-4 .

Single receipts

  1. ↑ Otto Strecker, Josef Reichert, Paul Pottebaum: Marketing in the agricultural and food industry. DLG-Verlag, Frankfurt 1997.
  2. ↑ Different marketing schools and sources limit the term differently. Group marketing is sometimes used when not all members of the industry are involved in the system. In some cases, joint marketing for a pedestrian zone by a trade association is already understood as community marketing , e.g. E.g. R. Purtschert: Possibilities and Limits of Community Advertising. In: ZfB. 1988, pp. 521-534 and: Community advertising . In: Vahlen's large marketing lexicon. DTV, Munich 1994.
  3. ^ Karl Hofacker: Kunstgewerbeblatt. 15th year, Leipzig 1904.
  4. ^ Karl Hofacker: Kunstgewerbeblatt. 16th year, Leipzig 1905.
  5. ^ AG Stollwerck: Sample album with 114 reproductions of drafts for Stollwerck joint advertising with Henkell. Cologne 1905.
  6. ↑ A. Röhr, K. Schleyerbach, R. v. Alvensleben: Development and structure of advertising expenditure in the German dairy industry. In: The dairy newspaper, world of milk. 51, 1997, pp. 764-769.
  7. ↑ A. Röhr, K. Schleyerbach, R. v. Alvensleben: Development and structure of advertising expenditure in the German meat industry. In: Fleischwirtschaft. 1988, quoted from: Reimar von Alvensleben : Strategies for improving the image of agriculture, lecture at the 48th university conference of the Agricultural Faculty of the Christian-Albrechts-Universität zu Kiel on February 6, 1998 in Kiel.
  8. ↑ BVerwG, judgment of November 24, 2011, Az. 3 C 32.10, full text ; The Federal Administrative Court declares the charge to the German Wine Fund to be constitutional on Mittelstandcafe.de
  9. ↑ see above: BVerfG, decision of February 4, 1958, Az. 2 BvL 31, 33/56, BVerfGE 7, 244 - Badische Weinabgabe.