Street Level Marketing

Dr Stephen Dann and Associate Professor Susan Dann

Introduction

Street level marketing (SLM) represents a new movement in the application of marketing

theory. Much of contemporary marketing theory focuses on top down implementation of

marketing strategies, aided and guided by intrusive observational marketing research

technique which endeavor to capture a single snapshot of a marketing environment that

can be translated into long term marketing strategies. SLM operates from a different

perspective in that it uses a bottom up marketing focus whereby the marketing is driven

by membership, rather than observation, of a market niche. It focuses on intra-niche

marketing where the objective of the organisation or individual is to meet needs and

wants of the niche which are also experienced by the marketer as a member of that niche.

This does not preclude street level marketers from developing business strategies for

extra-niche markets, however, the focus of SLM is on the marketing within the producer's

"home" market niche.

The primary application of SLM is to aid the development and marketing of niche

specific innovations that are developed by niche members to fill a perceived need in their

market niche. The focus on developing niche based marketing strategies gives SLM an

opportunity to utilize some of the tools of ethnography in conjunction with a marketing

orientation and the market advantage of street level credibility. However, SLM is not

without it's weaknesses - whilst market immersion offers an advantages, it does not

replace the need for good business practices to be used in conjunction with street level

marketing.

Street Level Marketing Defined

Street Level Marketing is defined as marketing activities undertaken by a member of a

psychographic niche to further the adoption of a idea, good or service, developed within

the niche to meets the specific needs or wants of the niche. The nature of the street level

marketing's intra-niche focus gives it an apparent exclusivity in that the marketer is a

member of their own target market. This is recognised explicitly as a point of

differentiation between SLM and other marketing strategies - street level marketers and

SLM campaigns exist within the niche and are not imposed upon the niche by

"outsiders". In particular, unlike traditional market segmentation which is an intrusive

process adapting products and communications message to identify with the market, the

SLM strategies are developed from within, offering greater opportunity for marketer and

marketed to share a common understanding as to the value of the product offering.

SLM consists of a series of sub-component elements which expand and operationalise the

street level marketing concept. At the most basic level is the notion of market

orientation, which is the core of the SLM concept. Without a market orientation, and the

use of the marketing philosophy, street level marketing does not exist, even if producers

are engaged the use of some of the marketing tool kit in their intra-niche business

activities. In addition to marketing philosophy is the concept of market immersion,

which represents the street level marketer's involvement in the niche to which they are

marketing their business activity. As with the market orientation, immersion is a critical

element - without actual membership of the niche, marketing activities towards a specific

niche are not street level marketing. At best, these activities may be guerilla marketing,

traditional market segment approaches or relationship marketing, but they do not

represent the intra-niche oriented SLM concept. The third element of SLM is the notion

of credibility, which is subdivided between street credibility, representing the marketer's

reputation outside of the commercial transaction, and the classical notion of source

credibility. The final element relates to the concept of "aidmheil" I'm-th'ell] which is the

SLM marketer's faith or conviction in their product service or idea.

Marketing Orientation

Marketing Activities.

One of the key determinants of street level marketing is that the organisation or

individual must actively engage in activities identified with the marketing concept, and/or

possess a market orientation. As marketing is regarded as a total business concept, it is

not necessary for street level marketers to have clearly defined organisational structures

which are responsible for the firm's marketing (Doyle & Wong, 1998). However, the

organisation must focus on determining needs and wants of the target customers rather

than having a production orientation. In addition, the use of the marketing concept

encourages a focus on long term profitability achieved through maintain a market focus

(Gray et al, 1998). For street level marketing, the advantage of the intra niche target

focus is that the organisation is developing products for people who are similar in nature

to the producers. However, this does not negate the need for customer, rather than

producer, focus in the development of goods and services to service the market niche.

.

Market orientation requires the organization to exhibit an appreciation and understanding

of the needs of current and potential customers; the systematic gathering of marketing

intelligence and an organisation wide response to changes in customer needs (Hunt &

Morgan, 1995; Kohlit & Jaworski, 1990 and Narver & Slater, 1990 in Morgan and Strong

1998). Part of the requirements of market orientation is the generation of market

intelligence pertaining to current and future customer needs (Gray et al, 1998).

Marketing intelligence

Wright and Ashill (1998) in their work on a contingency model of marketing information

looked as marketing intelligence as the scanning and analyzing of the marketing

environment, including the monitoring of competitive activities and changing customer

needs. In the development of the contingency model of marketing intelligence, Wright

and Ashill (1998) outline a three step approach to determining the method of intelligence

gathering.

The key application for SLM is that the contingency model moves away from the

automatic assumption of complex market research surveys as been the default market

intelligence gathering tools. The value of this approach for SLM is that the model allows

non traditional marketing research instruments to be considered as viable tools for

intelligence gathering.

Street Level Market Research

Whilst traditional market research is not excluded from SLM, it is not the only source of

valuable marketing intelligence. Street level marketing's intra niche focus allows for the

use of ethnographic research techniques to be applied as part of data gathering for market

intelligence. However, unlike traditional ethnography which requires the participant

observer to intrude into a society, then attempt to gain acceptance and understanding, the

SLM marketer is already a member of the society. They have the understanding of the

niche culture, and have membership of the society they wish to study. On the downside,

their level of immersion often makes it difficult for the SLM marketer to maintain a level

of objectivity, or detachment from their research.

The use of the marketing concept and market orientation is required to focus the SLM

organisation to still maintain a business focus whilst providing goods and services that

meets the needs of the market niche. Whilst the advantage of street level marketing is

that it is marketing of goods and services by members of a niche to address needs of that

niche, it needs the objectivity and client focus of the traditional marketing concept and

the business discipline of market orientation. Ifive brands, the developers of Penguin

Mints, a caffeinated peppermint confectionery developed their product on the strength of

their belief in an intra niche need for a product that meet three of their personal needs,

caffeine, convenience and fresh breath (www.peppermints.com). In addition to the

inherent belief in the value of the product to the market niche (urban professionals with

high work levels and strong caffeine needs), the developers of penguin mints

supplemented their intra niche experience and perceptions with classical market research.

Whilst market immersion had been sufficient to aid the development of the new product,

the use of street level marketing research through both personal observational techniques

and classical formal marketing research was needed for the success of the organisation.

Market Immersion,

One of the oft quoted questions of marketing is "What business are we in?". In SLM, the

question becomes one of "What business am I?" when street level marketers are

developing based on their own needs and wants, which are needs and wants shared by

their communities. Market immersion relates to the degree to which the street level

marketer is part of the niche that they are attempting to address with their products or

services. The greater the involvement with the niche, the higher the understanding of the

needs and wants of the niche which in turn leads to greater opportunities for niche

specific product development. Involvement in the niche relates also to the degree to

which the producer of the goods is perceived by the niche to be "one of them". The

advantage of the level of immersion are twofold. First, market immersion is valuable for

the developing the understanding of the needs of the market by being part of the market,

and through the ethnographic observational techniques. Second, in markets related to

specialist sports goods, such as skateboarding or snowboarding, immersion and market

membership increase the inherent credibility of the manufacturer or producer.

Airwalk shoes (www.airwalk.com) was developed in 1986 to service the sport shoe needs

of the skateboarding, snowboarding, surfing and BMX market segments. Designers were

recruited from within the ranks of users of the intended end products so that skateboard

riders where used to develop shoes that they would use for skateboarding. The intra

niche focus allowed for the recruitment of niche members to assist in developing

products that would be used by other niche members. In addition, selective intra niche

recruitment also lends greater source and street credibility to organisation by association,

and low level celebrity style endorsement of the organisation. The greater involvement in

the activities of the niche as a member of the niche, the greater the likelihood of the SLM

marketer have a higher level of street credibility and source credibility than an "outsider".

Credibility

Credibility is often seen in the marketing literature as an element of relationship

marketing to be developed over transactional histories, with clinically planned

"credibility" moments to develop an artificial relationship structure. Credibility in

relationship marketing is seen as the inherent believability of the intention of a company

at a given point in time (Herbig & Milewicz, 1995a, 1995b). SLM is concerned with

two forms of credibility, source credibility and street credibility. Source credibility is the

classical reputation and source credibility of relationship marketing. In contrast, street

credibility relates not so much to credibility by endorsement, but credibility by

membership of the market niche. Source credibility relates to the reputation established

by the actions of the individual or organisation within the business exchange context -

issues of trust, believability and reputation as established in relationship marketing.

Street credibility is the reputation developed within the niche by active membership of

the niche.

Source Credibility, Business Reputation And Street Level Relationship Marketing

Street level marketing does not claim to have exclusivity over the operations of an intra

niche focused marketing orientated business. SLM is related to the development of

marketing focus amongst intra niche focused organisations who serve small and specific

target groups. Consequently, marketing issues such as relationship marketing also have

an inherent value in SLM. Through adaptation and adoption of marketing techniques

associated with larger extra-niche marketing orientated organisations, SLM organisations

can also gain the benefits from these concepts. In particular, SLM is heavily dependent

on the maintenance and transfer of credibility from personal endeavor (street credibility)

into corporate credibility. From a brief review of the relationship marketing literature

(Garbarino & Johnson, 1999; Selnes, 1998; Doneg & Cannon, 1997; Herbig & Milewicz,

1995a & 1995b), three areas of relationship marketing are of concern for SLM marketers,

reputation, trust and credibility. Business reputation is seen as an estimation of reliability

and consistency over time in regards to the performance, and repeat performance of a

promised activity (Herbig and Milewicz 1995a). Trust related is the perceived credibility

and benevolence of the organisation, and the degree to which the individual rely on the

exchange partner with the confidence that the partner will act in a fair manner (Selnes,

1998; Doney & Cannon, 1997). Finally, credibility, in the context of trust, relates to

objective credibility which is the believability of the entity's intention to perform the

promised action (Herbig & Milewicz, 1995a; Doney & Cannon, 1997).

Street level marketing relies on these concepts heavily in that the marketing organisation

is engaged in transaction with members of its own community and market niche. Levels

of trust associated with intra niche focused organizations are expect to be greater than

those associated with "outsider" organisations who enter the niche by intrusion and

imitation. Consequently, penalties for failure to deliver in business are also expected to

be much higher for SLM companies. Membership of the community gives a higher

initial credibility and trust level, however, business reputation, and the tools of the

relationship marketer, must are still applicable to convert this level of trust by association

into business goodwill.

Street Credibility, market immersion and Personal Reputation as branding

Street credibility is a nebulous concept positioned somewhere between reputation, brand

image and the personal reputation of the business owners. Street credibility has been

defined as a command of the styles associated with urban youngsters who are respected

by their contemporaries (Collins New English Dictionary, 1997). For the purpose of this

paper, street credibility exists in a broader context than merely that of "urban youth". It

represents an intra niche or intra industry reputation that is developed separately from the

business reputation. Street credibility is a mixture of personal and corporate reputation,

peer and target group respect and recognition, in conjunction with a recognised technical

expertise, market knowledge and understanding of the industry. It brings elements of

consumer focused measures such as market mavenism (Feick and Price, 1987), and

celebrity endorsement factors such as expertise, trustworthiness and target market

empathy (Andreasen, 1994; Walker, Langmeyer & Langmeyer, 1992). Street credibility

is also a form of developed reputation associated with expertise in the niche market,

either through experience, understanding or demonstrated predictive ability in

determining or assessing trends in the market place.

Street credibility is unlike corporate reputation or goodwill insofar as it cannot be

purchased or manufactured. Attempts to artificially construct "street cred" are often cited

as guerilla marketing. Guerrilla marketing focuses on grass roots campaigning, creating a

'street feel' for a corporate product within the target niche. The difference between

guerilla marketing and SLM is that guerrilla marketing is intrusion based marketing,

whereby the organisation enters the niche, mimics or 'borrows' imagery and icons

associated with the target market in an attempt to associate their product with the niche.

Whilst this approach may have certain levels of success, those campaigns that fail do so

because the target market feel manipulated, used, condescended to or offended by what

becomes, to them, a blatant attempt to buy street credibility. SLM differs in that it gains

the street credibility from being part of the grass roots movements targeted by guerilla

marketing.

Development of the product within the niche also lends credibility to produce through co-

production ownership, which whilst not always part of the SLM approach, is apparent in

industries where intra niche product testing and development are a major part of the

product development techniques (Wikström, 1996). In particular, software such as the

Quake franchise developed by ID software involved by street level marketing (gamers

developing gaming software) and market co-production (end users testing the product,

providing suggestions and in some cases, providing upgrade and solutions to problems in

the software). The sense of community and niche ownership of the product was also

enhanced by the street credibility of the company who had acquired a business and non

business reputation within the target market. However, street credibility alone was not

sufficient for the ID software Quake franchise to succeed insofar as the company was

also required to deliver on its promises in a business like fashion. By using the street

level marketing approach, of using marketing tools with an initial intra niche focus, ID

software were able to translate of street credibility and business credibility into brand

equity and into product sales.

"Aidmheil" (Faith In The Product.)

The final element of the street level marketing concept is often referred to in the

anecdotal evidence concerning entrepreneurship, new product development and non

traditional marketing applications such as social cause marketing. Aidmheil [pronounced

I'm-th'ell] is a Celtic term, relating to the notion of "faith", which has been adopted to

represent the street level marketing element of "faith in the product, good or idea". Faith

in this context is not associated with a religious or spiritual concepts, rather it looks at the

marketing organization's belief in their product, and the inherent potential for success

related to this product. Aidmheil also touches upon the notions passion and enthusiasm

for service, product or idea, which is infused into the product's branding and imagery by

the actions and statements of the supporting organisation. Michael Gudinski, founder of

Mushroom records, was described as having founded the recording label with "little more

than self-belief and passion" (Professional Marketing, 1999). Other SLM orientated

organisations, such as Airwalk, also make reference to the notions of passion and

enthusiasm, with their web site specifying that "somewhere at the core of every journey

there is passion, soul and heart" as being prerequisites for being considered for an

Airwalk sponsorship. In addition, in SLM, the focus of the aimdheil is often on the

market niche and the benefits that can be given back to the community and the niche in

conjunction with the personal success of the organisation.

Conclusion, Future research