Advertising and Integrated Marketing Communications [1 ed.] 9781259026058, 1259026051

Table of contents :
Title
Contents
Part One Understanding Integrated Marketing Communication
1. An Introduction to Integrated Marketing Communications
1.1 Understanding Marketing
1.2 Understanding Marketing Communication
1.3 Integrated Marketing Communication
Summary
Exercise
Suggested Class Projects
Critical Thinking Questions
Case Study: Marketing the Jan Lokpal Bill
Annexure 1.1: India Against Corruption Movement – Code of Conduct
Annexure 1.2: IAC Guides Citizens in Organizing Public Meetings
Annexure 1.3: History of Advertising in India
Endnotes
2. IMC as an Integral Part of Marketing
2.1 The Marketing Strategy
2.2 The Marketing Mix Strategies
Summary
Exercise
Suggested Class Projects
Critical Thinking Questions
Endnotes
Part Two The IMC Programme Situational Analysis
3. Understanding Consumer Behaviour
3.2 The Buying Decision Process
3.3 Alternative Buying Decision Processes
Summary
Exercise
Suggested Class Projects
Critical Thinking Questions
Case Study: Tata Nano: Did it Read the Consumer Right?
Endnotes
4. Understanding the Communications Process
4.1 What is Communication?
4.2 Communication Response Hierarchy
4.3 Consumer Involvement
4.4 Processing Communications Cognitively
Summary
Exercise
Suggested Class Projects
Critical Thinking Questions
Case Study: Hero Motocorp takes a forward leap with ‘Hum mein hai Hero’
Annexure 4.1: Lyrics of the ‘Hum mein hai Hero’ song
Endnotes
5. The World of Marketing Communication Agencies
5.1 Introduction to Marketing Communication Agencies
5.2 Players in the Communication World
5.3 Advertising Agencies
5.4 Specialized Services
Summary
Exercise
Suggested Class Project
Critical Thinking Questions
Case Study: Hummingbird Advertising Agency
Endnotes
Part Three Advertising
6. Advertising Research and Strategy
6.1 Fundamentals of an Advertising Campaign
6.2 The Research Process
6.3 Common Errors in Research
6.4 Spelling Out the Strategy
6.5 Choice of Strategic Approaches
Summary
Exercise
Suggested Class Projects
Critical Thinking Questions
Case Study: Tata Salt
Endnotes
7. Finding the Big Idea
7.1 What is a ‘Big Idea’?
7.2 Getting Creative to Find the Big Idea
7.3 Brainstorming for Creative Ideas
7.4 Some More Creative Techniques
Summary
Exercise
Suggested Class Projects
Critical Thinking Question
Case Study: Tata Salt (Part II)
Endnotes
8. Creative Execution in Advertising
8.1 Creative Execution of the Big Idea
8.2 Bringing Creativity in Ad Execution
8.3 Preparing a Creative Brief
8.4 Creative Execution Elements
Summary
Exercise
Suggested Class Projects
Critical Thinking Questions
Case Study: Tata Salt (Part III) (…Continued from Chapter 7)
Annexure 8.1: Celebrity Support in Execution: Make Hay while the Stars Shine
Endnotes
9. Creative Execution and Design in Print
9.1 The Print Medium
9.2 Elements of Print Advertising
9.3. Understanding Design in Print
Summary
Exercise
Suggested Class Projects
Critical Thinking Questions
Case Study: Marico Attracts Talent with its Corporate Campaign
Endnotes
10. Creative Execution in Broadcast Media
10.1 An Introduction to Radio
10.2 The Pen is the Mightiest
10.3 Scriptwriting for Radio
10.4 Producing Radio Commercials
10.5 The ABCs of Writing and Producing Radio Spots
10.6 An Introduction to Television
10.7 Elements of Television
10.8 Making a Television Commercial
10.9 Some Guidelines
Summary
Exercise
Suggested Class Projects
Critical Thinking Questions
Case Study: ‘Har Ek Friend’ Campaign Creates Magic for Airtel
Annexure: Airtel ‘Har ek friend’ lyrics
Endnotes
Part-
11. Sales Promotion
11.1 An Introduction to Sales Promotion
11.2 Strengths and Limitations of Sales Promotion
11.3 Push and Pull Strategies
11.4 Popular Sales Promotion Tools
11.5 Planning a Sales Promotion Programme
Summary
Exercise
Suggested Class Projects
Critical Thinking Questions
Case Study: Hav Mor Funn with Ice Creams
Annexure: Terms & Conditions for the Contest
Endnotes
Part Four Other Promotion Tools
12. Direct Marketing
12.1 An Introduction to Direct Marketing
12.2 The Quintessential Elements of Direct Marketing
12.3 Direct Marketing Media
12.4 Ethics in Direct Marketing
Summary
Exercise
Suggested Class Projects
Critical Thinking Questions
Endnotes
13. Public Relations and Publicity
13.1 An Introduction to Public Relations
13.2 Strengths and Weaknesses of Public Relations
13.3 Types of Public Relations
13.4 Tools of Public Relations
13.5 Planning the Public Relations Programme
13.6 Publicity
Summary
Exercise
Class Projects
Critical Thinking Questions
Case Study: Ahmedabad Red Cross: Topping the Nation in Blood Donation
Endnotes
14. Communication in the New Age: Online and Mobile Media
14.1 The Internet as a Communication Medium
14.2 Traditional Tools of Online Communication
14.3 Social Media: Changing the Rules of Communication
14.5 Mobile Marketing
Summary
Exercise
Suggested Class Projects
Critical Thinking Questions
Case Study: Building Brand Loyalty: Just Do It Online
Endnotes
Part Five Media Planning and Strategy
15. Print and Support Media
15.1 The Mass Media
15.2 The Print Media
15.3 The Outdoor Media
Summary
Exercise
Suggested Class Projects
Critical Thinking Questions
Case Study: Divya Bhaskar Rocks the Gujarat Newspaper Market with its Launch
Endnotes
16. Broadcast Media
16.1 The Broadcast Media
16.2 Television
16.3 Alternative Film Media
16.4 Radio
Summary
Exercise
Suggested Class Projects
Critical Thinking Questions
Jassi Jaissi Koi Nahin
Endnotes
17. Developing the Media Plan
17.1 An Introduction to Media Planning
17.2 Preparing a Media Plan
Summary
Exercise
Quick Qs
Suggested Class Project
Critical Thinking Questions
Case Study: Market Expansion of Chamkeela Toothpaste
Endnotes
Part Six Budgets, Objectives and Evaluation
18. Promotion Objectives and Budget Determination
18.1 Setting Communication Objectives
18.2 Sales- versus Communication-Oriented Objectives
18.3 The DAGMAR Approach to Setting Objectives and Measuring Advertising Effectiveness
18.4 Budgeting for Marketing Communication
18.5 Arriving at the Marketing Communication Budget
18.6 Allocating the Marketing Communication Budget
Summary
Exercise
Suggested Class Projects
Critical Thinking Questions
Endnotes
19. Measuring IMC Performance
19.1 Measuring Communication Effectiveness
19.2 Conducting Research to Measure Communication Effectiveness
19.3 The Advertising Testing Process
19.4 Testing Other Promotional Tools
19.5 Evaluating Unconventional Promotional Tools and IMC
Summary
Exercise
Suggested Class Projects
Critical Thinking Questions
Endnotes
20. The Legal and Ethical Environments of Promotions
20.1 Legislation Affecting Advertising
20.2 Self-regulatory Codes of Conduct in Advertising
20.3 Legal and Ethical Concepts and Issues in Advertising
20.4 Regulations Governing Sales Promotions
20.5 Regulations Governing Packaging and Labelling
20.6 Regulations Governing Direct Marketing
20.7 Regulations Governing Internet Marketing
Summary
Exercise
Suggested Class Projects
Critical Thinking Questions
Case Study: Soap Opera Features the Dirty War of Whitening Detergents
Endnotes
Integrated Case: ‘The Complete Man’ of Raymond Gets a New Avatar
Appendix 1: Presenting Promotion Ideas
Index

Citation preview

ADVERTISING AND

INTEGRATED MARKETING COMMUNICATIONS

About the Author

K

ruti Shah is a young freelance marketing communications professional with diverse experience for her years. In the past ten years, her work has encompassed market research, product launches, brand management, project management, marketing communication, and business development. Kruti has worked as a marketing coordinator for Fibre-Craft Materials Corporation, USA and as a business development manager for Pidilite Industries. She has also worked and consulted with Zydus Cadila Healthcare, Educational Initiatives, Publicis Worldwide, and the American Red Cross of Greater Chicago. Thinking Ink. She is also a visiting faculty of marketing and communications at the Mudra Institute of Communications Ahmedabad, Institute of Management – Nirma University, Ahmedabad Management Association, Symbiosis Institute of Media & Communication, and Jagran Institute of Communications Management. Her areas of professional interest lie in enhancing the quality of advertising for small and medium enterprises, exploring Internet marketing, and devising new teaching materials and methodologies in marketing communications. She is the co-author of a book entitled Advertising & Promotions: An IMC Perspective (2008). The title has sold more than 10,000 copies till date and is included as a textbook in several post-graduate marketing and communication courses all over India. Kruti is an MS in Marketing Communications from Stuart Graduate School of Business, IIT, Chicago and an MBA (gold medalist) from Institute of Management – Nirma University. She has co-edited the book Inspirational Gems to Empower your Life winning wide acclaim. Kruti devotes her leisure time to reading and travelling, and expresses her creativity in Bharatnatyam and Kuchipudi dances.

ADVERTISING AND

INTEGRATED MARKETING COMMUNICATIONS

Kruti Shah Visiting Faculty, Mudra Institute of Communications, Ahmedabad (MICA) and Founder, Thinking Ink

McGraw Hill Education (India) Private Limited NEW DELHI

New Delhi New York St Louis San Francisco Auckland Bogotá Caracas Kuala Lumpur Lisbon London Madrid Mexico City Milan Montreal San Juan Santiago Singapore Sydney Tokyo Toronto

Published by McGraw Hill Education (India) Private Limited, P-24, Green Park Extension, New Delhi 110 016. Advertising and Integrated Marketing Communications Copyright © 2014, McGraw Hill Education (India) Private Limited. No part of this publication may be reproduced or distributed in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise or stored in a database or retrieval system without the prior written permission of the publishers. The program listings (if any) may be entered, stored and executed in a computer system, but they may not be reproduced for publication. This edition can be exported from India only by the publishers, McGraw Hill Education (India) Private Limited. ISBN (13): 978-1-25-902605-8 ISBN (10): 1-25-902605-1 Managing Director: Kaushik Bellani Head—Higher Education Publishing and Marketing: Vibha Mahajan Senior Publishing Manager—B&E/HSSL: Tapas K Maji Manager (Sponsoring): Surabhi Khare Assistant Sponsoring Editor: Shalini Negi Manager (Editorial Services): Hema Razdan Production System Manager: Manohar Lal Junior Production Manager: Atul Gupta Assistant General Manager—Higher Education Marketing: Vijay Sarathi Product Specialist: Megha Mehra Senior Graphic Designer (Cover Design): Meenu Raghav General Manager—Production: Rajender P Ghansela Manager—Production: Reji Kumar Cover Image: Saumil Shah Information contained in this work has been obtained by McGraw Hill Education (India), from sources believed to be reliable. However, neither McGraw Hill Education (India) nor its authors guarantee the accuracy or completeness of any information published herein, and neither McGraw Hill Education (India) nor its authors shall be responsible for any errors, omissions, or damages arising out of use of this information. This work is published with the understanding that McGraw Hill Education (India) and its authors are supplying information but are not attempting to render engineering or other professional services. If such services are required, the assistance of an appropriate professional should be sought. Typeset at Script Makers, 19, A1-B, DDA Market, Paschim Vihar, New Delhi 110 063, and printed at

Cover Printer:

To the newest arrival in our family, my daughter Aparna — Kruti Shah

Foreword “The need to strive for greater integration is considered inevitable by many, although the means by which such integration may be achieved is uncertain.” Integrated Marketing Communications is a term that emerged in the late 20th century regarding application of consistent brand messaging across myriad marketing channels. It promises a surround experience by communicating through various consumer touch points. For the student, academician, or practitioner interested in the marketing communication area, there are still many unanswered questions and that is one of the reasons that makes this subject so challenging. Besides this, it is also important for marketers to create differentiation through communication, achieve top-of-the-mind awareness, and break the clutter in their own category in a world where there is an overdose of communication. With the advent of new media it has become Communication tools. This book authored by Ms. Kruti Shah on Advertising and Integrated Marketing Communications gives an overall view on the subject with contemporary examples. It has well researched examples and case studies, which readers can relate with. It emphasizes that no tool of marketing communication is a substitute of the other, but is instead complementary. Ms. Kruti Shah, a seasoned academician and a lucid writer, has made sure that this book addresses Her hands-on experience and a knack of observing the latest trends in the market have given an I am sure this book will help the students and the young aspirants of marketing communication and advertising to adapt these practices in their professional life. It will serve as a very strong reference for them and help them stay on track when they deviate from achieving communication objectives. Happy Reading!!! Sanjay Chakraborty Associate Vice-President: Brand Services Triton Communications

Preface “The truth isn’t the truth until people believe you, and they can’t believe you if they don’t know what you’re saying, and they can’t know what you’re saying if they don’t listen to you, and they won’t listen to you if you’re not interesting, and you won’t be interesting unless you say things imaginatively, originally, freshly.” —William Bernbach the legendary American advertiser and former CEO, DDB Needham

With products attaining parity, communication remains the only major differentiation tool for a

that today a large part of it is neither creative, nor strategically sound. Least of all, it is socially responsible. This makes us wonder… what is going wrong? One reason is the haphazard, hit-andmiss approach towards the subject. Creativity that is not leashed by sound strategic roots, or strategy We have seen this happen umpteen number of times, and recurring yet again. Examples abound, such as the NDA government’s brilliant ‘India Shining’ campaign that bombed and saw the Congress returning to power even after an ad spend of Rs. 500 crore and a focus on India’s improving economic conditions. Or take the cases of the failed relaunch of the Onida devil – the green-horned popular ad persona of the 1980s and 1990s, the disastrous sinking-without-trace of Vanilla Coke that had done well in blind tests, or the disappointing Pepsi TV campaign that generated immense interest through a teaser campaign. Why is it only analysis-at-hindsight that revealed that the feel-good factor of the ‘India Shining’ campaign failed to connect with the masses (as pointed out by the Aam aadmi ko kya mila Onida the Sonys and Panasonics were ruling the roost with their sheer foreignness and technological prowess? Or that even a Wakaw can be “wrong positioning,” “irrelevant advertising,” or “removed from the Coca-Cola mother brand”? Finally, no excuse can be allowed for a creative from the house of Pepsi that fails to meet expectations and sustain interest even after the featuring of three popular Bollywood celebrities. While we are certainly making headway in international awards, the question that we need to answer is whether our communication is becoming more effective.

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Why This Book? A recent review reveals that the current books on the subject may be bifurcated into two major categories, viz., marketing communication textbooks and professional reference books. The former target students and have their foundations in theory. Undeniably, they provide practical examples, as the very subject of communications cannot be taught without examples. But there is none to very little hands-on, execution-oriented coverage. While the latter, professional reference books, primarily address the needs of practitioners with the spotlight on execution and functional nitty-gritty, giving this book.

For Whom? While writing this book, I consciously kept two distinct sets of students in mind – those who would be more interested in the managerial aspects of communication, and those who would be more interested in mastering the creative aspects. In that regard, MBA students who specialize in Marketing and choose an elective in IMC or Advertising form the prime target audience. This is because many of these students will go on to become creative campaign designers while others will grow to be managers in marketing communications or brand management. Apart from this, the book is also oriented towards the needs of students of those sectoral institutes and business schools that offer specialized courses in the areas of marketing communications. To take care of its management-inclined audiences, the book features sections and chapters on the conceptual understanding of IMC, objective-setting, media planning, budgeting, dealing with legal issues and the like, whereas sections on creative execution of advertising in various media, as well as coverage of other promotional tools cater more to the creatively inclined, i.e. those wishing to be involved in the actual making of an advertisement as well as students going into client servicing or account planning. To meet its objectives, this book addresses students with a textbook-like format. But it goes a step basic theory with practical examples, and then moves on to the real essence of communication. The text delves into important execution-related details, such as the art of brainstorming for creative ideas, rules of copywriting, designing print advertisements, making a television commercial, understanding camera moves, etc. And it does this without losing focus on the core curriculum of marketing and communication programmes. So why is this academic-cum-professional blend a better approach? From my own teaching experience, I have come to believe that an intense and vocational approach will interest and educate students better and have found that the serious student of the subject always wants to know about the how part – how is communication actually created or what happens behind the scenes. Thus, this book is written to serve the purpose, more so with a special emphasis on the Indian scenario. The book aims to serve as a comprehensive text for students and amateurs interested in marketing communications in general and advertising in particular.

Contents of the Book This text introduces students to the concept of integrated marketing communications, and its major tools, techniques and media, with a special focus on advertising. Admittedly, I am particularly inclined

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towards advertising, since it offers the highest opportunity for strategic and creative work. This is because advertising is the most used form of communication till today, and since any other form of communication almost always involves some advertising. Hence, an entire section of the book is dedicated to understanding the creative strategy in advertising. Any “integrated” concept will be incomplete without discussing all the constituent elements in proper perspective. Consequently, I have also included other major promotional tools like sales promotion, public relations, direct marketing and unconventional media tied them all together through a consistent focus on integrated communication. The book begins by introducing students to marketing communications and proceeds to describe the marketing communications environment. The areas covered in the environment section also serve as a brief refresher on concepts of marketing management that are especially relevant from the viewpoint of communications. The book further progresses to discuss various promotional tools. In the section on advertising, the text explains the basic concepts of advertising strategy and big idea, and then outlines a medium-by-medium execution of creative. This is unlike other books that talk about strategy and then club all kinds of executions into one or two chapters. Next, the book explains media strategy and planning. In the closing section, the entire discussion is wrapped up with a focus on budgeting and evaluation. Following is a more detailed description of the sections included in the text: Section 1: Understanding Integrated Marketing Communication This section introduces students to integrated marketing communications, establishes it as a sub-discipline of marketing, and puts it in perspective in the management of a business. Chapter 1 discusses the functions and tools of marketing communication and the concept of integrated marketing communications. Chapter 2 reviews the marketing strategy environment and concepts related to marketing strategy from the perspective of communication specialists – segmenting markets, targeting the right audiences, and positioning products to suit the requirements of the market. Section 2: The IMC Programme Situational Analysis This section focuses on the internal and external environment facing marketing communication specialists. Chapter 3 explores the socio-cultural environment throwing light on consumer behaviour and purchase decision process. Chapter 4 discusses the theoretical foundations of communications. Chapter 5 reviews the organization structure of the promotions world and familiarizes students with its various players including ad agencies and regulatory bodies in India. Section 3: Advertising as can be done in a classroom. It aims to prepare them in conceptualizing and executing creative advertising in various media. Chapters 6-10 take students through the various stages of advertising – from research and conceptualization, to framing an advertising strategy, to important production tips are also given, although producing an advertisement can only be learnt through real-life work experience.

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Section 4: Other Promotion Tools Section 4 surveys the other areas of marketing communications – sales promotion (chapter 11), direct marketing (chapter 12), public relations and publicity (chapter 13), and communication in the new age (chapter 14). Principles related to strategy and creativity taught in the section on advertising can be extended to these other tools as well. Section 5: Media Planning and Strategy various communication tools mentioned earlier. Chapters 15-16 discuss the strengths and weaknesses of various media, estimating audiences in each of them, and the process of buying time or space in media. Chapter 17 puts it all together by laying out the steps to developing an effective media plan. Section 6: Budgets, Objectives and Evaluation through the process of evaluation. Chapter 20 exposes students to the legal, regulatory and ethical environments of marketing communication, prodding them once again to test their ideas before implementation. Appendix 1: This appendix coaches students in the art of effective presentation of their creative ideas. Integrated Case Study: An integrated case study ‘The Complete Man of Raymond Gets a New Avatar’ challenges students to put their integrated communication learning to the test of a real-life problem.

Distinctive Features The high spots of this text are the following salient features: Indian orientation: The biggest limitation of books by foreign authors is their exclusive use to them. Our communication environment, and its tools and techniques are unique to our country, which makes it necessary to have a special Indian focus. Academic-cum-professional blend: The text focuses on practical learning, key concepts and applications, as theory does not hold much relevance unless it can be shown how it can be put into practice. Unlike some other books that are text- and theory-heavy, this book encapsulates excess and repetitive theory succinctly, thereby allowing instructors and students to cover the basics better. It also focuses on the practical applications of theoretical concepts discussed in the text. Further, the section on advertising covers salient execution-oriented details. Current examples of various types of products and businesses: The wide spectrum of current examples taken from different product and business environments demonstrates to students how marketing communication concepts can be applied in real -life situations. The examples selected are both of success stories that talk of what went right, and of failed communication situations that help students diagnose problems and learn from others’ mistakes.

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Coverage of all major marketing communication tools: While the spotlight remains on advertising, due justice has been done to other major communication tools as well. New age media like the Internet, social media, and mobile communication have also been covered in satisfactory detail. Exclusive features: In addition to an entirely new section on ‘Creative Execution in Advertising,’ the text also has a unique appendix on presentation skills. A comprehensive learning system: This is provided by the exhaustive pedagogical features of the book such as in-depth explanation that handholds students through the chapters, practical examples that provide real-life insight, and chapter summaries that reinforce learning. In addition, the text challenges understanding and thinking with questions, tests application abilities with projects, and puts problem-solving skills to test through case studies. Superior text organization: The section-wise organization of the text has been given much thought to. Sections and chapters have been arranged roughly in the order that an instructor would like to follow for teaching. To fortify students’ learning and to stir them into action, the following pedagogical features have been added in the text: In Perspective: This opening feature introduces students to the concepts to be learnt in the chapter in a lucid and interesting manner, and in most cases, through a real-life example. Practical examples: Boxed examples, and features such as Case in Point are amply sprinkled throughout the text to give students classic and current insights into the real world. Almost all of them retain the Indian outlook. Summaries: End-of-chapter summaries help students to review the material quickly and recap important points of the chapter. Exercises: These quiz students on their understanding of the material discussed in the text and beyond. Suggested class projects: Individual and team projects require students to apply concepts learnt in the chapter in practical, real-life situations. They test students’ understanding of theory and require them to begin thinking and working as a marketing communications specialist. Critical thinking questions: Questions that do not have straightforward answers given in the text, but that tax students’ understanding and grip on the topic, and propel them into thinking and research, are asked. Case studies: Actual or likely business scenarios emphasizing aspects learnt in the chapter cultivate strategic thinking. Questions based on the case require students to spot problems, analyze facts, research information, apply concepts, and solve problems. Instructors’ website: As a teaching aid for instructors, the website www.mhhe.com/shah that includes PowerPoint slides of chapters, is set up. Discussion website: The dynamic website www.ThinkingInk.net/imcbook features articles and discussions by me, instructors, communication professionals and students alike on the latest happenings in the communication world. These help in an even better understanding of the concepts discussed in the text, as well as of emerging ideas, theories and practices.

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Acknowledgements My second authoring venture has been possible due to the contributions, permissions, inputs and efforts of many people. First and foremost, I am thankful to the entire team of McGraw Hill Education (India), not only for their dedicated efforts in all publishing duties but also for their immense enthusiasm in shaping this creative book. The hard work and constant partnering done by Maji Tapas, Surabhi Khare, Shalini Negi, Hema Razdan, Manohar Lal, and the entire editorial, production, and marketing teams are noteworthy. I am also thankful to all the reviewers of this book whose valuable inputs and comments have helped me take this text closer to perfection. Their belief in the quality of my work gave me the much-needed impetus in pitching this text in the crowded communications market. I express Communications for extending his support in the venture and penning the foreword. A large amount of the verbal and visual content of this book could not have been incorporated without the generous contributions and kind permissions of many of the industry professionals and corporations. For the textual content, my special thanks go to Anil Wanvari, Editor-in-Chief, IndianTelevision.com; Anurag Batra, Managing Director and Editor-in-Chief, Exchange4Media Group and Pitch magazine; Sreekant Khandekar, Founder and Chairman, Agencyfaqs! and Brand Reporter; and Jonathan Barnard of Zenith Optimedia, for allowing me to source content from their publications. and Saurav Bhattacharya, former Director of Branding – for contributing a case study on one of Raymond’s ad campaigns. And I appreciate the help of Shailen Sohoni, COO, RKSBBDO, in providing the creative work for the campaign. In addition, I am grateful to Colleen Fahey, Executive to interview her and feature excerpts of her inputs in the book. For the visual content, I wish to thank Anmol Dar, Managing Director, Superbrands India, for permission to reproduce from three Superbrands books images on several pages, as acknowledged in the text. I am also extremely grateful to Piyush Pandey, Executive Chairman and National Creative Director (India & South Asia), O&M, and his team; R. Balakrishnan, National Creative Director, Lowe; and Madhukar Kamath, Managing Director and CEO, Mudra, and the team at Mudra, for granting reprinting permissions for a lion’s share of the visuals featured in this text. I also extend my thanks to M. G. Parameswaran, Executive Director and CEO, DraftFCB Ulka; Colvyn Harris, CEO, CEO, One Advertising; Nitish Mukherjee, Managing Director, Leo Burnett; and Nakul Chopra, CEO and Managing Director, Publicis for securing reprinting permissions from their clients for the creative work featured in this book. In addition to acknowledging communication agencies, I would also like to express our gratitude to the organizations that directly gave us reproduction permissions for their advertisements. A special mention needs to be made of Hindustan Unilever Limited, Tata Motors, IndiGo Airlines, Bharti Airtel, Marico India, Cadbury India, Dabur India, Parle Products, Cancer Patients’ Aid Tata Chemicals, Hyundai Motors, Daikin Industries, Platinum Guild, MouthShut.com, Naukri.com

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Group, MakeMyTrip.com, J. K. Ansell, People Interactive, Hidesign, Chaya Garments, Tic Tac Movie Rental, NECC, and of the individuals in these organizations responsible for granting permissions. And although I need not formally thank these two individuals, who are more family than professionals, I would like to mention how much I value their involvement in this venture. Rishit Shroff, an Architect and Interior Designer, has sketched the impressive illustrations you see in this text. And Saumil Shah, CEO, Net-Square Solutions, and a hobbyist photographer, has lent some illustrative photographs from his diverse and striking album. And while I am on the note regarding family, I would like to deeply and sincerely thank my family that has been extremely patient and supportive towards this seemingly never-ending project. oversight caused in a state of ecstatic euphoria that I feel at the launch of this book. Kruti Shah

Visual Chapter 1 Chapter Objectives At the outset, these learning objectives tell students what to expect from the chapter, and what they are expected to know at the end of the chapter.

An Introduction to Integrated Marketing Communications Chapter Objectives After reading this chapter, you will be able to: Understand promotions as an element of marketing, and the rising importance of advertising and other promotional tools in a company’s marketing programme Recognize various promotional elements and their roles in a marketing communication programme Appreciate the concept of integrated marketing communications, its evolution and

In Perspective

Realize how various communication tools work together in a coordinated manner to communicate effectively Comprehend the IMC model and the various steps in planning an IMC programme

Incredible India Captures the World through Integrated Communications1

While stepping into the legendary red bus of London, Alex Bridgewater’s eyes meet the visuals of yoga practitioners effortlessly bending backwards and the accompanying tagline that advises, “Go back to 3000 BC and get a healthier life.” In the executive lounge of the Charles de Gaulle airport, Françoise Beaumont is reading the Conde Nest Traveller, when she chances upon an article that rates India as one of the top-ten tourism destinations of the world. And Tom Smith has taken his girlfriend to New York’s Times Square on the eve of Valentine’s when a huge LED display showcasing Taj Mahal mockingly stares him in the face, “And to think these days

Chapter 4

Chapter 4

Understanding the Communications Process

165

Understanding the Communications Process Chapter Objectives

In Perspective

After reading this chapter, you will be able to: Understand the concept of communication and the communication process. Learn about the traditional and alternative consumer response hierarchies observed when consumers respond to messages, and realize their importance in promotional planning. Comprehend the concept of consumer involvement, its importance in message processing by consumers, and the factors and models that help in gauging consumer involvement. Understand cognitive processing, how it occurs, and how it works towards shaping attitudes towards ads.

Tring! Tring! Hutch is now Vodafone1 On September 21, 2007, India’s fourth largest telecom operator Hutch was renamed Vodafone with the world’s second largest mobile communications company Vodafone acquiring a majority stake in Hutch. The brand change was

O&M and covering all the important media. The client’s brief was simple – to register the message in the shortest possible time, to the largest possible audience set, in a very memorable manner. While communication in the telecom sector was cluttered and full of technology speak, Vodafone spoke to the consumer in a language that they understood. The agency started off with a simple introduction message: ‘Change is good. Hutch is now Vodafone.’ The main thought was to convey that nothing had changed except for the name, and the change was to accelerate towards even better services and experiences. The ads were remarkably straightforward and unpretentious (Figures 4.1a-b), the most striking of them all being the television commercial of the iconic Hutch pug returning after a walk to discover a whole new home. In the new communication, Vodafone has retained the popular pug, a Hutch hallmark, initially symbolic of the Hutch network. Albeit the pug Chika has been replaced with Vodafone’s Spikey. Hutch’s animated boy-girl duo has been initially used as mascot

In Perspective This feature in the chapter opening introduces students to the concepts to be learnt in the chapter in the form of case studies, which are, in most cases, real-life examples.

Walkthrough Chapter 2

over one crore customers in a span of two years.32

IMC as an Integral Part of Marketing

87

MTS has added

The Management Focus feature below talks about how Rin renewed its advertising at various stages of its life cycle.

MANAGEMENT FOCUS

Advertising at Various Stages of Rin’s Life Cycle33

Launched in a bar form, Rin the challenge in those introductory years was to distinguish Rin detergent bar from

Management Focus These boxed examples (classic and current) provide students insights into the real world of advertising and promotions. Almost all of them retain the Indian outlook.

mere functional advantages to building an emotional bond with Indians. While the the advertising tone became more emotional. Television commercials showed non-Rin users getting jealous by Rin whiteness and visuals of off-white clothes being crossed over by Rin whiteness. The catchline, “Bhala uski kameez meri kameez se zyada safed executions for almost 10 years. Rin remained the market leader for nearly 20 years with practically no competition till about 1987. Then, modeling on Rin’s success, many low-priced detergent bars were launched, most prominent among them being Nirma. To meet with this new challenge, Rin introduced Super Power Rin focusing not only on whiteness but also on the power and economy of the detergent. To strengthen the value proposition of Rin in the wake of competition, the brand emphasized 3-pronged superiority: greater whiteness, lesser Zara sa Rin” by the Rin In the mid-1990s, with the market stagnating a bit, and with powder concentrate brands attacking the detergent bars, Rin launched Rin Supreme bar and Rin Shakti powder. The former promised less sogginess and more whiteness whereas the latter was positioned as an aspirational brand that plugged the gap between premium and massRin resorted to comparative advertising that established Rin’s superiority by demonstrating onscreen that Rin Shakti could wash out dirt even from clothes washed with ordinary bars. It launched a commercial featuring ‘Rin Rin whiteness

Chapter 2 User status

Case in Point These small examples are amply sprinkled throughout the text. They explain and illustrate the theory and concepts discussed and make last page.

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Non-user, ex-user, potential user, first-timer, regular user

Usage rate

Light user, medium user, heavy user

Product knowledge

Unaware, aware, informed, interested, desirous, intending to purchase, purchaser, rejecter

Loyalty status

Hard-core loyal, split loyal, shifting loyal, switcher

Attitude towards product

Enthusiastic, positive, indifferent, negative, hostile

Extent of involvement

Minimum effort, comparison, special effort

∑ Geographic segmentation: different regions exhibiting different needs, buying patterns, reactions to marketing strategies, etc. Many marketers have discovered that the Indian market is different from its global counterparts and hence have extensively “Indianized” their products, as illustrated by the Case in Point below.

CASE IN POINT Brands Indianize for the local market McDonald’s in India has segregated its vegetarian and non-vegetarian kitchens. Additionally, it has created products with a local

FIGURE 2.2 (a)

McDonald’s Indianizes itself through communication.

are localized to suit the Indian palette. It also discontinued mutton products after it realized that Indians did not prefer consuming mutton out of home. McDonald’s pricing is also designed to appeal to the large mass of Indian middle class. Introduction of the Rs. 7 Soft Serve Cone and the pullers.8 Its communication also has a distinct Indian appeal with an emphasis on attracting families, promoting attractively priced items, and celebrating Indian festivities (Figures 2.2a-b). It even introduced a new logo as part of celebrating 10 years of the company in India. The new logo had the well-known double arch stylized as a marigold garland with the Indian flag at the top, symbolizing the spirit of Indianization. This logo was around for a year. When Nokia introduced Nokia 1100 phone,

Bodycopy: Happy Holi

Courtesy: McDonald’s, Mudra. Reproduced with permission.

resistant cover, and of course the price. Contrary to western washing machines, Electrolux offers a cold-wash-only washing machine in Asian countries where electric power is expensive or scarce. And Pepsi has adapted its television commercials to

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MK, a premium brand of switches, was among the many switches available in the market.

Additional Boxes... The text is interspersed with small nuggets of information highlighted in boxes or screens.

and faced consumer indifference. Although MK enjoyed reasonable equity with the business market comprising of architects, electricians, etc., it had low awareness was witnessing heavy advertisements by many brands. An assessment of the situation revealed that brands were positioned on attributes such as safety (Anchor), aesthetics (Crabtree), reliability (MK of it being of good quality. Thus, MK too felt the need to have its share of voice, and gain The idea for its communication campaign was born out of the insight that consumers on the rhyming of the words MK MK.’ to further drive in the message. The communication seemed to have attained its purpose. A MK MK” has become an accepted phrase in common language. Through the campaign, the brand has also created excitement among the trade community.

Functional consequences

etc. Psychological consequences

, Metlife India Insurance

Bodycopy: Someday. Someday, I will be friends with dirt tracks, lost sheep and myself. study the art of Bonsai. Not balance sheets. Someday, someone will airlift me from this

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Advertising and Integrated Marketing Communications

various promotional tools to inform consumers about their products, prices and places of availability. Also, each of these marketing communication tools communicates to the consumers. Thus, marketing communication managers have to ensure that the messages received from all the mix elements are then can an integrated marketing communications programme achieve its objectives.

Summary This chapter takes a close look at the strategic tools of the marketing mix — product, price, place and promotions — and explains how the former three affect promotions, and in turn get affected objectives, strengths and weaknesses, current strategies, etc. Another important strategic decision is

and positions it to occupy a distinctive image in the minds of the consumers, using one of the several alternative positioning options. The promotional programme is developed using these strategies as a guide. strategies such that together they deliver a message that is cohesive with the communications message. Product decisions involve decisions regarding its quality, design, features, packaging, branding, life cycle strategies, etc. Distribution decisions relate to management of resellers, push and pull strategies, sales personnel, etc. Similarly, the range of price and the method chosen for its communication also have an impact on the image of a product. A promotional programme should take note of all these elements of the marketing mix to send a cohesive message. Only if all the elements speak with one voice, can the marketing objectives be realized with maximum impact.

Exercise 1. In the opening vignette, what are the tangible vs. intangible product characteristics of Archies? How do you see Archies packaging itself to tangibilize its brand experience? How is it positioned in the minds of the consumers? In the wake of a gigantic retail revolution spurring the growth of many niche brands in the country, what competitive threats do you see Archies facing? Do you think it is geared up to meet these challenges? 2. The chapter states, “VALS helps marketers analyze important behaviours like product purchase, usage patterns, trial, early adoption, etc. and segment consumers based on their motivations, decision-making style, communication style, media and channel use, consumption-based lifestyle, etc.” For a practical implementation of VALS, where do you think marketers get consumer data from? Find out if the Indian VALS model has been developed at the time of your course. If yes, study the classes in which Indian consumers have been categorized. Horlicks Foodles’ point of differentiation. Do you think its differentiation is vulnerable to competitive attacks? If yes, to what extent? Also explain why it is important to differentiate an offering given that quite a few me-too brands in the market have been surviving. 4. Tea industry experts are concerned that tea is losing its appeal among younger audiences owing to a number of reasons. A prominent one among those is that tea dominates in-home consumption

Summaries End-of-chapter summaries help students to review the material quickly and recap important points of the chapter.

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Advertising and Integrated Marketing Communications

various promotional tools to inform consumers about their products, prices and places of availability. Also, each of these marketing communication tools communicates to the consumers. Thus, marketing communication managers have to ensure that the messages received from all the mix elements are then can an integrated marketing communications programme achieve its objectives.

Summary This chapter takes a close look at the strategic tools of the marketing mix — product, price, place and promotions — and explains how the former three affect promotions, and in turn get affected objectives, strengths and weaknesses, current strategies, etc. Another important strategic decision is

and positions it to occupy a distinctive image in the minds of the consumers, using one of the several alternative positioning options. The promotional programme is developed using these strategies as a guide. strategies such that together they deliver a message that is cohesive with the communications message. Product decisions involve decisions regarding its quality, design, features, packaging, branding, life cycle strategies, etc. Distribution decisions relate to management of resellers, push and pull strategies, sales personnel, etc. Similarly, the range of price and the method chosen for its communication also have an impact on the image of a product. A promotional programme should take note of all these elements of the marketing mix to send a cohesive message. Only if all the elements speak with one voice, can the marketing objectives be realized with maximum impact.

Exercises their understanding of all that has been discussed in the text, and beyond.

Exercise 1. In the opening vignette, what are the tangible vs. intangible product characteristics of Archies? How do you see Archies packaging itself to tangibilize its brand experience? How is it positioned in the minds of the consumers? In the wake of a gigantic retail revolution spurring the growth of many niche brands in the country, what competitive threats do you see Archies facing? Do you think it is geared up to meet these challenges? 2. The chapter states, “VALS helps marketers analyze important behaviours like product purchase, usage patterns, trial, early adoption, etc. and segment consumers based on their motivations, decision-making style, communication style, media and channel use, consumption-based lifestyle, etc.” For a practical implementation of VALS, where do you think marketers get consumer data from? Find out if the Indian VALS model has been developed at the time of your course. If yes, study the classes in which Indian consumers have been categorized. Horlicks Foodles’ point of differentiation. Do you think its differentiation is vulnerable to competitive attacks? If yes, to what extent? Also explain why it is important to differentiate an offering given that quite a few me-too brands in the market have been surviving. 4. Tea industry experts are concerned that tea is losing its appeal among younger audiences owing to a number of reasons. A prominent one among those is that tea dominates in-home consumption

Suggested Class Projects Individual and team projects require students to apply the theory and concepts learnt in the chapter in practical, real-life situations. While testing students’ understanding of theory initiate them to begin thinking and working as marketing communications specialists.

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whereas a lot of people are on the move. In wake of this, do you think tea manufacturers need

Intel, Bank of Baroda and Dabur discussed in the chapter change is the corporate logo. What could be the reason for this? Do you think it is a mere cosmetic change? 6. What is a brand? Must all products be branded? In an age where products are attaining parity and purchase decisions are often based on price, how can companies achieve and maintain brand equity?

Suggested Class Projects 1. Analyze the marketing mix strategies followed by Coca-Cola and Pepsi for their cola drinks in India. What are the competitive advantages of each and what competitive strategies have they been following? What segments does each of them target and how have they positioned themselves? Do you perceive a meaningful differentiation between the 2 brands? What prime message is conveyed by their communication campaigns and how do their product, price and distribution strategies support the communication, and vice versa? Present a detailed analysis before the class. You may also choose 2 other closely competing brands from an industry of your choice for this project. 2. Visit the online job site www.monsterindia.com. How do you see the brand packaging its products? Comment on its distribution strategy and analyze the brand image that it portrays.

Critical Thinking Questions

strategies to align with the chosen image? Or is there an alternative approach to solving this chicken-or-egg problem? product symbolism is relevant for all product categories? Why or why not? advertising was the strongest in the later stages of the product life cycle, for market leaders, and for low cost products.” Reason why.

CASE STUDY Founded in August 2006 and owned by the Gurgaon-based InterGlobe Enterprises, the low-cost

serves Dubai, Bangkok, Singapore, Muscat and Kathmandu from New Delhi and Mumbai. With

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whereas a lot of people are on the move. In wake of this, do you think tea manufacturers need

Critical Thinking Questions These questions do not have straightforward answers that can be culled from the text; they test students’ understanding and grip on the topic, and propel them into thinking and research.

Intel, Bank of Baroda and Dabur discussed in the chapter change is the corporate logo. What could be the reason for this? Do you think it is a mere cosmetic change? 6. What is a brand? Must all products be branded? In an age where products are attaining parity and purchase decisions are often based on price, how can companies achieve and maintain brand equity?

Suggested Class Projects 1. Analyze the marketing mix strategies followed by Coca-Cola and Pepsi for their cola drinks in India. What are the competitive advantages of each and what competitive strategies have they been following? What segments does each of them target and how have they positioned themselves? Do you perceive a meaningful differentiation between the 2 brands? What prime message is conveyed by their communication campaigns and how do their product, price and distribution strategies support the communication, and vice versa? Present a detailed analysis before the class. You may also choose 2 other closely competing brands from an industry of your choice for this project. 2. Visit the online job site www.monsterindia.com. How do you see the brand packaging its products? Comment on its distribution strategy and analyze the brand image that it portrays.

Critical Thinking Questions

strategies to align with the chosen image? Or is there an alternative approach to solving this chicken-or-egg problem? product symbolism is relevant for all product categories? Why or why not? advertising was the strongest in the later stages of the product life cycle, for market leaders, and for low cost products.” Reason why.

CASE STUDY Founded in August 2006 and owned by the Gurgaon-based InterGlobe Enterprises, the low-cost

serves Dubai, Bangkok, Singapore, Muscat and Kathmandu from New Delhi and Mumbai. With

Chapter 2

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101

whereas a lot of people are on the move. In wake of this, do you think tea manufacturers need

Intel, Bank of Baroda and Dabur discussed in the chapter change is the corporate logo. What could be the reason for this? Do you think it is a mere cosmetic change? 6. What is a brand? Must all products be branded? In an age where products are attaining parity and purchase decisions are often based on price, how can companies achieve and maintain brand equity?

Suggested Class Projects 1. Analyze the marketing mix strategies followed by Coca-Cola and Pepsi for their cola drinks in India. What are the competitive advantages of each and what competitive strategies have they been following? What segments does each of them target and how have they positioned themselves? Do you perceive a meaningful differentiation between the 2 brands? What prime message is conveyed by their communication campaigns and how do their product, price and distribution strategies support the communication, and vice versa? Present a detailed analysis before the class. You may also choose 2 other closely competing brands from an industry of your choice for this project. 2. Visit the online job site www.monsterindia.com. How do you see the brand packaging its products? Comment on its distribution strategy and analyze the brand image that it portrays.

Critical Thinking Questions

strategies to align with the chosen image? Or is there an alternative approach to solving this chicken-or-egg problem? product symbolism is relevant for all product categories? Why or why not? advertising was the strongest in the later stages of the product life cycle, for market leaders, and for low cost products.” Reason why.

CASE STUDY Founded in August 2006 and owned by the Gurgaon-based InterGlobe Enterprises, the low-cost

serves Dubai, Bangkok, Singapore, Muscat and Kathmandu from New Delhi and Mumbai. With

Case Studies Actual or likely business scenarios that exemplify the contents of the chapter, and help cultivate strategic thinking. Questions based on the case require students to spot problems, analyse facts, research information, apply concepts and solve problems.

Contents Foreword Preface

vii ix

Part-1 Understanding Integrated Marketing Communication 1. An Introduction to Integrated Marketing Communications

3

1.1 Understanding Marketing 6 1.2 Understanding Marketing Communication 7 1.3 Integrated Marketing Communication 27 Summary 45 Exercise 46 Suggested Class Projects 46 Critical Thinking Questions 46 Case Study: Marketing the Jan Lokpal Bill 46 Annexure 1.1: India Against Corruption Movement – Code of Conduct Annexure 1.2: IAC Guides Citizens in Organizing Public Meetings 56 Annexure 1.3: History of Advertising in India 56 Endnotes 58

2. IMC as an Integral Part of Marketing 2.1 The Marketing Strategy 64 2.2 The Marketing Mix Strategies

82

Summary 100 Exercise 100 Suggested Class Projects 101 Critical Thinking Questions 101 Endnotes

112

55

61

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Contents

Part-2 The IMC Programme Situational Analysis 3. Understanding Consumer Behaviour 3.2 The Buying Decision Process 145 3.3 Alternative Buying Decision Processes

117

154

Summary 154 Exercise 155 Suggested Class Projects 155 Critical Thinking Questions 156 Case Study: Tata Nano: Did it Read the Consumer Right? Endnotes 163

156

4. Understanding the Communications Process 4.1 4.2 4.3 4.4

165

What is Communication? 167 Communication Response Hierarchy 170 Consumer Involvement 179 Processing Communications Cognitively 184 Summary 189 Exercise 190 Suggested Class Projects 190 Critical Thinking Questions 191 Case Study: Hero Motocorp takes a forward leap with ‘Hum mein hai Hero’ Annexure 4.1: Lyrics of the ‘Hum mein hai Hero’ song 193 Endnotes 194

5. The World of Marketing Communication Agencies 5.1 5.2 5.3 5.4

Introduction to Marketing Communication Agencies Players in the Communication World 199 Advertising Agencies 209 Specialized Services 216 Summary 219 Exercise 219 Suggested Class Project 220 Critical Thinking Questions 220 Case Study: Hummingbird Advertising Agency Endnotes 222

220

197

191

196

Contents

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Part-3 Advertising 6. Advertising Research and Strategy 6.1 6.2 6.3 6.4 6.5

Fundamentals of an Advertising Campaign The Research Process 236 Common Errors in Research 246 Spelling Out the Strategy 249 Choice of Strategic Approaches 251 Summary Exercise

229

255 255

Suggested Class Projects

255

Critical Thinking Questions Case Study: Tata Salt Endnotes

225

256

256

258

7. Finding the Big Idea 7.1 7.2 7.3 7.4

260

What is a ‘Big Idea’? 262 Getting Creative to Find the Big Idea 263 Brainstorming for Creative Ideas 266 Some More Creative Techniques 274 Summary Exercise

276 277

Suggested Class Projects Critical Thinking Question

277 277

Case Study: Tata Salt (Part II) Endnotes

...Continued from Chapter 6.

279

8. Creative Execution in Advertising 8.1 8.2 8.3 8.4

278

Creative Execution of the Big Idea 283 Bringing Creativity in Ad Execution 283 Preparing a Creative Brief 299 Creative Execution Elements 301 Summary 317 Exercise 317 Suggested Class Projects

318

280

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Contents

Critical Thinking Questions 318 Case Study: Tata Salt (Part III) (…Continued from Chapter 7) 319 Annexure 8.1: Celebrity Support in Execution: Make Hay while the Stars Shine Endnotes 327

9. Creative Execution and Design in Print

323

329

9.1 The Print Medium 333 9.2 Elements of Print Advertising 333 9.3. Understanding Design in Print 351 Summary 364 Exercise 365 Suggested Class Projects 365 Critical Thinking Questions 366 Case Study: Marico Attracts Talent with its Corporate Campaign Endnotes 371

366

10. Creative Execution in Broadcast Media 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9

372

An Introduction to Radio 376 The Pen is the Mightiest 377 Scriptwriting for Radio 379 Producing Radio Commercials 384 The ABCs of Writing and Producing Radio Spots An Introduction to Television 390 Elements of Television 390 Making a Television Commercial 391 Some Guidelines 403

384

Summary 407 Exercise 408 Suggested Class Projects 408 Critical Thinking Questions 408 Case Study: ‘Har Ek Friend’ Campaign Creates Magic for Airtel Annexure: Airtel ‘Har ek friend’ lyrics 413 Endnotes 414

408

Part-4 Other Promotion Tools 11. Sales Promotion 11.1 An Introduction to Sales Promotion 418 11.2 Strengths and Limitations of Sales Promotion 11.3 Push and Pull Strategies 423

417 421

Contents

11.4 Popular Sales Promotion Tools 424 11.5 Planning a Sales Promotion Programme

xxv

440

Summary 449 Exercise 450 Suggested Class Projects 450 Critical Thinking Questions 450 Case Study: Hav Mor Funn with Ice Creams 451 Annexure: Terms & Conditions for the Contest 455 Endnotes 456

12. Direct Marketing 12.1 12.2 12.3 12.4

457

An Introduction to Direct Marketing 458 The Quintessential Elements of Direct Marketing Direct Marketing Media 462 Ethics in Direct Marketing 465

461

Summary 465 Exercise 466 Suggested Class Projects 466 Critical Thinking Questions 466 Endnotes 466

13. Public Relations and Publicity 13.1 13.2 13.3 13.4 13.5 13.6

467

An Introduction to Public Relations 470 Strengths and Weaknesses of Public Relations 473 Types of Public Relations 475 Tools of Public Relations 484 Planning the Public Relations Programme 491 Publicity 496 Summary 497 Exercise 498 Class Projects 498 Critical Thinking Questions 498 Case Study: Ahmedabad Red Cross: Topping the Nation in Blood Donation Endnotes 501

14. Communication in the New Age: Online and Mobile Media 14.1 The Internet as a Communication Medium 506 14.2 Traditional Tools of Online Communication 507 14.3 Social Media: Changing the Rules of Communication 14.5 Mobile Marketing

545

521

498

503

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Summary 554 Exercise 555 Suggested Class Projects 555 Critical Thinking Questions 556 Case Study: Building Brand Loyalty: Just Do It Online Endnotes 562

556

Part-5 Media Planning and Strategy 15. Print and Support Media

567

15.1 The Mass Media 568 15.2 The Print Media 569 15.3 The Outdoor Media 603 Summary 612 Exercise 612 Suggested Class Projects 613 Critical Thinking Questions 613 Case Study: Divya Bhaskar Rocks the Gujarat Newspaper Market with its Launch 614 Endnotes 617

16. Broadcast Media 16.1 16.2 16.3 16.4

618

The Broadcast Media 619 Television 620 Alternative Film Media 645 Radio 647 Summary 662 Exercise 663 Suggested Class Projects 663 Critical Thinking Questions 663 Jassi Jaissi Koi Nahin 663 Endnotes 666

17. Developing the Media Plan 17.1 An Introduction to Media Planning 17.2 Preparing a Media Plan 676 Summary 714 Exercise 714 Quick Qs 714

669 670

Contents

Suggested Class Project 716 Critical Thinking Questions 716 Case Study: Market Expansion of Chamkeela Toothpaste Endnotes 730

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716

Part-6 Budgets, Objectives and Evaluation 18. Promotion Objectives and Budget Determination

735

18.1 Setting Communication Objectives 737 18.2 Sales- versus Communication-Oriented Objectives 738 18.3 The DAGMAR Approach to Setting Objectives and Measuring Advertising Effectiveness 742 18.4 Budgeting for Marketing Communication 745 18.5 Arriving at the Marketing Communication Budget 746 18.6 Allocating the Marketing Communication Budget 757 Summary 760 Exercise 760 Suggested Class Projects 760 Critical Thinking Questions 761 Endnotes 761

19. Measuring IMC Performance 19.1 19.2 19.3 19.4 19.5

Measuring Communication Effectiveness 764 Conducting Research to Measure Communication Effectiveness The Advertising Testing Process 778 Testing Other Promotional Tools 800 Evaluating Unconventional Promotional Tools and IMC 810 Summary 813 Exercise 814 Suggested Class Projects 814 Critical Thinking Questions 814 Endnotes 815

20. The Legal and Ethical Environments of Promotions 20.1 20.2 20.3 20.4 20.5 20.6

Legislation Affecting Advertising 819 Self-regulatory Codes of Conduct in Advertising 828 Legal and Ethical Concepts and Issues in Advertising 842 Regulations Governing Sales Promotions 852 Regulations Governing Packaging and Labelling 855 Regulations Governing Direct Marketing 857

763 768

817

Contents

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20.7 Regulations Governing Internet Marketing

859

Summary 861 Exercise 862 Suggested Class Projects 862 Critical Thinking Questions 863 Case Study: Soap Opera Features the Dirty War of Whitening Detergents Endnotes 866

865

Integrated Case: ‘The Complete Man’ of Raymond Gets a New Avatar

868

Appendix 1: Presenting Promotion Ideas

877

Index

882

Part One Understanding Integrated Marketing Communication This section introduces integrated marketing communication, establishes it as a sub-discipline of marketing, and puts it in perspective in the management of a business. Chapter 1 discusses the functions and tools of marketing communication and the concept of IMC. Chapter 2 reviews the marketing strategy environment.

Chapter 1 An Introduction to Integrated Marketing Communications Chapter Objectives After reading this chapter, you will be able to: Understand promotions as an element of marketing, and the rising importance of advertising and other promotional tools in a company’s marketing programme Recognize various promotional elements and their roles in a marketing communication programme Appreciate the concept of integrated marketing communications, its evolution and

In Perspective

Realize how various communication tools work together in a coordinated manner to communicate effectively Comprehend the IMC model and the various steps in planning an IMC programme

Incredible India Captures the World through Integrated Communications1

While stepping into the legendary red bus of London, Alex Bridgewater’s eyes meet the visuals of yoga practitioners effortlessly bending backwards and the accompanying tagline that advises, “Go back to 3000 BC and get a healthier life.” In the executive lounge of the Charles de Gaulle airport, Françoise Beaumont is reading the Conde Nest Traveller, when she chances upon an article that rates India as one of the top-ten tourism destinations of the world. And Tom Smith has taken his girlfriend to New York’s Times Square on the eve of Valentine’s when a huge LED display showcasing Taj Mahal mockingly stares him in the face, “And to think these days

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Advertising and Integrated Marketing Communications

These eye-catching promotions visible at airports, on buses and in busy streets in international locations such as London, New York, Paris, Zurich, Amsterdam, Dubai and Singapore are part of the Incredible India campaign launched by the Ministry of Tourism, Government of India, in a bid to take advantage of the vast untapped potential of India as a tourist destination. The campaign was initiated in 2002, post September 11, 2001 when the worldwide travel industry went into a slump. Historically, India has been one of the less-preferred international destinations with neighbouring Southeast Asian countries like Malaysia, Thailand and Singapore attracting far more tourists. The unorganized and mottled promotions by state-run tourism boards, Indian delegates, and local tour The Incredible India campaign aims to address this problem and differentiate India from

by projecting India’s spiritual, cultural and geographic diversity. The campaign in its various phases has focused on the Himalayas, wildlife, yoga, ayurveda, festivals as well as spiritual therapy that uniquely identify brand India and have proved to be an attractive proposition for foreign travellers. The campaign is promoted through numerous promotional media like print, television, travel and niche interest publications, mostly magazines and some newspapers, have carried “kitsch-looking” versions of Incredible India ads. Similarly, prominent Europeanlanguage television channels such as BBC, National Geographic, CNN, as well as some of the world’s most popular websites have featured the Incredible India campaign. Even translations. The interactive website supports the campaign with up-to-date information, campaign images, links to partner websites, etc. For instance, campaign partners Visa and American Express offer their cardholders exclusive offers if they plan their vacations with Incredible India packages. Additionally, realizing the need for a consistent approach, the Department of Tourism has brought together under one umbrella, various tourism organizations, hospitality and carrier sectors, travel agents, and allied services. The Department ensures collective participation in several national and international tourism events. For example, in contrast to fragmented marketing efforts by various industry members in the past, today India puts up a cohesive show with one voice and one theme by setting up ‘India Pavilions’ at fairs and marts. At the ‘Incredible India@NYC’, different dance forms of India were performed, and the programme was sponsored by leading Indian corporates. The government hosted were held at the Indian Pavilion.2 It even carried on an extensive public relations exercise been backed by a sound National Tourism Policy and various other infrastructural and marketing initiatives. The results of the campaign have been incredible too. The campaign successfully established India as a high-end tourist destination, generating a 16 per cent increase

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5

performance is much better compared to its global counterpart. Foreign Tourist Arrivals

foreign exchange earnings in 2010, which is also a positive trend.3 Various promotional

The opening vignette illustrates how communication takes place in the modern world. Earlier, brochures to promote brand India. The promotional efforts by various other sources were also stray and unorganized. However, that approach does not work in the modern days. Hence, the Ministry of Tourism took initiative and united various travel and tourism agencies under one banner. It then initiated a professional 360-degree advertising campaign that was further amalgamated with other promotional tools like direct marketing, public relations, special events, Internet marketing, and such. A three-pronged strategy was devised to (a) defend markets such as UK, France and Italy that were regularly sending tourists to India, (b) invest in lukewarm markets such as Germany, Netherlands, Spain, US, Canada, etc., and (c) identify and seed new markets such as Japan, China, Korea and Russia. While advertising served the primary purpose of generating awareness about India as a tourist as safety. Special events such as Incredible India road shows built up excitement, whereas participation in industry fairs helped reach business consumers with the Incredible India message. Direct marketing including print, electronic and audio-video mailers encouraged prospects to seek more information. Online marketing put up banner ads encouraging website visits, and the website provided details of travel and booking options, in-depth information on India, information about campaign partners, etc. tools were combined with each other for an integrated marketing communications approach that reached various audiences with a consistent message. In spite of consistency, communication themes under the Incredible India banner have been refreshed almost every year. For instance, in 2008, the campaign was based on the experiences of those who came to visit India as tourists and stayed back to make India their home. In 2009, the campaign was extended to cover the domestic tourism sector as well. USD 12 million out of a total budget of USD 200 million was allocated for the purpose of promoting domestic tourism. image of the country. Additionally, the government has backed the new priorities and initiatives with a sound National Tourism Policy and various other infrastructural and marketing initiatives. For example, it has launched subordinate campaigns like Atithi Devo Bhavah, endorsed by the actor Aamir Khan, to sensitize industry members towards tourists through a process of training and orientation; National Tourism Awards have been instituted for various segments of the travel and tourism industry to drive up their performance; and many other plans are also on the anvil.

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Advertising and Integrated Marketing Communications

In addition to the need for integration in communication, the vignette also illustrates how new forms of communication like the Internet are becoming vital in an organization’s communication mix. Furthermore, environmental changes such as the growth of international marketing, increasing competition and need for a brand identity, explosion of media choices, higher consumer control on communication, etc. are revolutionizing the way companies communicate with their consumers. This chapter discusses how advertising and other promotional tools play an important role in an organization’s marketing programme, and how they are evolving to be increasingly responsive to changing environmental needs.

1.1 UNDERSTANDING MARKETING Before we begin discussing marketing communications, we must take a moment to understand its a hawker pricing his wares is marketing, a hotel manager taking customer feedback is marketing, a barber placing a big hoarding announcing his services is marketing, a movie theatre distributing cinema tickets through the Internet is marketing, and a salesman selling a refrigerator to an Eskimo is also marketing. Most people misunderstand marketing as selling and advertising. But these functions are only the tip of the marketing iceberg. In reality, marketing is a composite of many activities related (for example, pricing was left to accountancy, demand estimation to economics, communication to advertising, supply chain to production, and so on) or were simply not explored (for example, consumer behaviour, management of distribution partners, relationship management, etc.). It was only in the early 1900s when the relatively young discipline of marketing was born that these activities were brought under one roof to improve the relationships between buyers and sellers and to create ‘sell more’. However, towards the mid 1900s, several factors like increasing competition and greater consumer awareness led companies to mend their old selling ways and focus more on consumer satisfaction and long-term relationships. This led to the development of the “marketing concept” that placed the customer at the centre of all business activities. All functions from production to selling how. In essence, marketing is customer-centred and products are often developed to meet the needs

them, such as marketing research, new product development, distribution management, pricing, marketing as the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives.5 For marketing to be effective, it requires successful coordination of all these activities at different levels in an organization. Marketing is not limited to the exchange of tangible goods, but can be for various types of entities – goods, services, people, places, events, properties, organizations, information, experiences and ideas. What do you think is being marketed at the fun park Essel World? Not physical goods like merry-go-rounds or Ferris wheels, but an entertaining experience! And what is marketed when the

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7

government runs a campaign advising people to not have more than two children? The idea of family planning! Think about what public service organizations get in exchange when you give them or to the society a small family.

1.1.1 The Marketing Mix A marketer’s job is to build a marketing program to achieve a company’s objectives. For this, he general categories viz. product, price, place (distribution) and promotion, which are popularly known as the 4 Ps of marketing or the marketing mix. A marketer has to take various decisions regarding these four tools to pursue his marketing objectives. The activities performed under each of these Ps ∑ Product: This includes all activities related to the conception and planning of the actual design, features, sizes, varieties, brand name, warranty, guarantee and other services. ∑ Price: This area deals with activities related to setting the price for a product. Decisions regarding retail and wholesale prices, margins of channel members, discounts and allowances, credit terms, payment period, etc. are part of the ‘pricing’ function of the marketing mix. ∑ Place: Placement or distribution refers to all activities involved in getting the product to locations, inventory, transportation, etc. ∑ Promotion: Promotion refers to all activities concerned with informing consumers about an organization’s offering, persuading them to buy it, and reminding them about it from time to time. Activities like advertising, sales promotion, direct marketing, public relations, personal selling and other unconventional media comprise the ‘P’ of promotion. Therefore, it is pertinent to have a basic understanding of each ‘P’ before we zero in on one, viz. promotion. Otherwise, even if a marketer promotes his product through high-decibel advertising and promotions, it can fail if its quality is poor, price is not right or distribution is not adequate.

1.2 UNDERSTANDING MARKETING COMMUNICATION As discussed in the previous section, marketing communication is an important P (also called promotion) of marketing. It involves all activities concerned with effectively communicating product information to selected target audiences. A target audience is the group of consumers to whom marketing communication messages are directed. A company cannot succeed when it targets everybody in its marketing programme. There will be some people who might have a greater need of and interest in the product, ability to buy at the quoted price, access to the company’s distribution channel and the potential to receive and respond to messages. These people should be chosen as part of the company’s target audience. All marketing communication is done with a purpose. The prime purpose of communication is to seek a cognitive, affective or behavioural response, whatever that desired response may be. In other words, the communicator might want to imprint something into the consumer’s mind (cognitive

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Advertising and Integrated Marketing Communications

response), change an attitude (affective response) or get the consumer to act (behavioural response). For example, through promotions you could generate inquiries about your product, announce an offer, educate the market, lead a consumer to a retail outlet, trigger sales instantly, build a brand image, rectify a misconception about your product, advance a positive image of the company or do all of the above. Together, these help a company in selling a product and staying in business. The Box on ‘The Growth of Advertising and Promotion.’

The Growth of Advertising and Promotion Together, advertising and promotion form the crucial communication system for businesses and consumers. By communicating product information to target audiences, they play a key role in the marketing programmes of organizations. The increasing growth

advertising and media has fared in the years gone by (Table 1.1). TABLE 1.1 Year

Advertising Growth in India Advertising expenditure

Percentage growth over

(Rs. crores)

last year

2007

17,690

22

2008

20,717

17

2009

18,670

–10

2010

23,646

27

2011

25,594

8

Source: Pitch-Madison Advertising Outlook, Pitch, Feb 2011, pp. 6-7 www.pitchonnet.com

The surveys are harbingers of good times for the advertising industry, which had

2011 is not quite impressive and calls for a vigilant watch on the industry, which may be witnessing maturity in the traditional media. In India, Fast Moving Consumer Goods (FMCG) companies are amongst the highest spenders of advertising and sales promotion. FMCG categories like toilet soaps, shampoos, toothpastes, aerated soft drinks, washing powders/liquids, milk beverages, biscuits and tea are almost always among the top advertisers. Even so, recently FMCG companies are tightening their purse strings by controlling advertising spends and other marketing expenses to maintain their margins, as high raw material prices continue to pose a serious challenge to costs. For instance, two of the biggest spenders on advertising, Hindustan Unilever Limited (HUL) and Procter & Gamble (P&G) have marginally reduced their advertising and promotional expenses. In the last quarter of

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TABLE 1.2

9

Table 1.2

Top 10 Advertising Categories (Share in %)7

Category

From Q3 09 to Q2 10

From Q3 08 to Q2 09

Services

8.59

8.38

Food and Beverages

6.62

6.69

Personal Care

6.16

5.58

Banking and Financial Investment

6.08

5.64

Education

5.26

5.90

Auto

5.04

5.30

Personal accessories

3.68

3.61

Telecom/Internet Service Providers

3.47

3.82

Retail

3.23

3.28

Durables

3.18

3.04

The advertising and promotions scenario worldwide is also heartening. 2010 was the year of recovery for the advertising industry as indicated by Table 1.3 depicting actual ad spend and Table 1.4 depicting percentage growth over last year. Strong performance

Cup spending propelled the advertising industry back into positive territory. Marketers look at downturns as time to expand market shares. The acceleration in future global expenditure will be the result of Japan’s recovery from the effects of the Football Championship and the US Presidential and other elections that will provide a reliable boost to the global ad market. TABLE 1.3

Worldwide Advertising Expenditure (Major media: newspapers, magazines, television, radio, cinema, outdoor, Internet) US$ million, current prices. Currency conversion at 2010 average rates

North America Western Europe

2009

2010

2011

2012 (estimate)

2013 (estimate)

157,475

161,707

165,699

171,772

178,076

97,127

102,901

105,252

108,473

111,926

104,724

114,832

121,111

129,878

139,277

Central & Eastern Europe

21,993

23,576

25,686

28,540

31,725

Latin America

27,063

31,316

32,841

35,504

38,804

Asia Pacific

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Advertising and Integrated Marketing Communications

Middle East & North Africa

4,589

4,945

4,242

4,328

4,428

Rest of world

9,380

10,668

11,463

12,629

13,955

422,351

449,944

466,293

491,124

518,190

World

Source: ZenithOptimedia

TABLE 1.4

Year-on-year change (%) in Worldwide Advertising Expenditure (Major media: newspapers, magazines, television, radio, cinema, outdoor, Internet) 2009 v 08

2010 v 09

2011 v 10

2012 vs 11 (estimate)

2013 vs 12 (estimate)

North America

–12.6

2.7

2.5

3.7

3.7

of which USA

–12.9

2.3

2.2

3.5

3.5

Western Europe

–11.0

5.9

2.3

3.1

3.2

–5.4

9.7

5.5

7.2

7.2

excluding Japan

0.6

17.5

10.3

9.7

10.2

Central & Eastern Europe

–17.9

7.2

8.9

11.1

11.2

Latin America

2.0

15.7

4.9

8.1

9.3

Middle East & North Africa

–19.5

7.7

–14.2

2.0

2.3

5.7

13.7

7.5

10.2

10.5

–9.7

6.5

3.6

5.3

5.5

Asia Pacific

Rest of world World Source: ZenithOptimedia

Most of the largest contributors to advertising growth are emerging markets. China, Russia, Brazil, India and Indonesia, are all top-ten contributors of new ad dollars, as can be seen in Table 1.5. TABLE 1.5

The Ten Largest Contributors to Global Ad Spend Growth (2013 vs 2010)

US$ million, current prices. Currency conversion at 2010 average rates. Ad spend growth 1

USA

14,312

2

China

12,732

3

Russia

4,725

4

Brazil

2,871

5

India

2,639

6

Indonesia

2,531

7

Canada

2,057

8

South Africa

1,827

9

Germany

1,638

10

UK

1,570

Source: ZenithOptimedia

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1.2.1 The Marketing Communication Mix Just as marketing mix is the set of all tools to market a product, marketing communications mix is the set of all tools to promote a product. A marketing communications manager can choose from various tools such as advertising, sales promotion, public relations, personal selling, direct marketing, special events, etc. While these are the more commonly used tools, in reality, tens and hundreds of communication activities can inform and persuade a consumer. We can divide these activities or the marketing communication mix into high- and low-control messages, as well as above- and belowthe-line activities. High-control messages are those elements of the communications mix over which an organization has greater control since they can be explicitly planned, executed and delivered to consumers. Advertising, sales promotion, direct marketing, special events, etc. are high-control activities. On the other hand, low-control messages are spontaneous, and not designed formally. For example, an organization’s crisis management, shareholder interaction, employee behaviour and gossip, consumer word-of-mouth, etc. may not be directly controlled by the communications manager. However, they do deliver tacit messages to consumers, which in fact make a stronger impression by the virtue of being more honest. For example, a bank may be advertising about its professionalism, but if its manager does not resolve complaints in due time or if its staff frequently bungles up account information, the customer is not likely to buy the claim of “professionalism.” Since all types entire organization in the communications process and strive to gain more control over low-control messages, otherwise the impact of the promotions programme can be seriously hampered. Figure 1.1 FIGURE 1.1

High- and low-control messages.

High-control messages

Advertising, SP, DM, Special events

Low-control messages

Publicity, PR, Crisis management

Employee behaviour, consumer word-of-mouth

‘above-the-line’ (ATL) or ‘below-the-line’ (BTL). The promotional activities carried out through mass media like television, radio, newspaper, etc. typically qualify as ATL, whereas BTL refers to forms of non-media communication, including non-media advertising. BTL also involves some extent of interaction with

focused on delivering a ‘message’, BTL is commonly used for delivering an ‘experience’, and especially used for ‘touch-and-feel’ products. For instance, when Sunsilk had launched a new variant of its shampoo, it had given free hair washes to consumers at booths set up outside malls. The share of BTL in brands’ promotion mixes is on the rise, especially in industries with intense competition, saturated markets, small markets, industries dominated by small players, or new/experimental products. The FICCI–PricewaterhouseCoopers Annual Report 2007 pegs the current BTL spend in India at Rs. 9 billion; projected size of the industry by 2010 is Rs. 19 billion, at a Compound Annual Growth Rate (CAGR) of 16 per cent.

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Advertising and Integrated Marketing Communications

‘Through-the-line’ (TTL) refers to an advertising strategy involving both ATL and BTL communications in which one form of promotion alludes to another, thereby crossing the ‘line’. For instance, a newspaper ad (ATL) may direct people to a local sampling event or contest (BTL) organised by a brand.

1.2.1.1 Advertising In order to comprehend advertising in its entirety, we need to look at its origin. The word ‘advertising’ is derived from its Latin root ad verter, which means ‘to turn towards’ or ‘to attract attention to’. In this broad sense, it comprises all acts that are directed towards drawing attention. However, as is advertising is “any paid form of non-personal presentation and

∑ The fact that it is ‘a paid form’ of presentation emphasizes that advertising space or time must be purchased, ∑ Its ‘non-personal’ nature emphasizes the fact that it is not a direct or personalized presentation to one individual but to the masses, ∑ ∑ ‘Promotion’ indicates the objective of advertising and ∑ communicating Annexure 1.3 become an integral part of our social and economic structures. An increasing number of companies are spending millions of dollars on advertising in India every year. India’s largest advertiser, HUL 8

Advertising objectives can be categorized based on whether their goal is to inform, persuade, remind or reinforce. ∑ Inform: Let people know what the product is, where it would be available, what problem it would solve, etc. Informative advertising is most rampant in the introductory stage of the product or product category because maximum information has to be given when something is new. Words, such as “presents” and “latest” allude to new introductions. ∑ Persuade: Induce people to buy. This becomes more important as the product grows or faces increasing competition. The advertiser now needs to give more reasons or enticements to lure consumers. One way of establishing superiority is by comparative advertising, where you evaluate your brand vis-à-vis a competitor’s brand directly or indirectly. The better-thancompetitor claim can be made subtly by telling consumer precisely how your brand addresses her need and convincing her that no other brand does that in the same fashion. For example, a Pepsodent toothpastes. A television commercial for Captain Cook persuaded consumers by depicting how Tata salt.

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∑ Remind: This kind of advertising is widespread with mature products – products that are well past their introduction and rapid growth phases. Everyone knows about them – what many new consumers that can be persuaded. Hence, all an advertiser typically needs to do is remind the consumer that it exists and is there when she needs it. The advertiser should keep reinforcing the central message and get more creative in ad execution to translate that into product liking. Amul butter is a brilliant example that illustrates the point. With its witty, well-timed and creative print ads on current topics, it stays on top-of-the-mind. ∑ Reinforce: Reinforcement advertising seeks to convince current consumers that they have brand an advertiser can reassure current consumers that they have indeed spent their money well. In Figure 1.2, JK Tyre’s ad is reassuring given the company’s claim that the best cars use Ultima. Advertising’s near-omnipresence in most organization’s communication mixes is thanks to its several standardized offering. Aren’t you more likely to buy an advertised product than an unadvertised one available for the same price? Large-scale advertising speaks positively about the advertiser’s size, power or success. Advertising also permits FIGURE 1.2 JK Tyre’s ad reassures existing customers the seller to repeat a message multiple with its claim. times to large audiences and provides an opportunity to dramatize the product or exaggerate the message. For example, in a print ad Sil chilly sauce dramatizes and exaggerates the hotness of its sauce by depicting that the ice in a refrigerator has melted owing to the hotness of the sauce. Similarly, in Figure 1.3, HP Cruise exaggerates the noise-cutting power of its car engine oil, without having to worry about misleading readers. Advertising’s glamour also lies in its ability to build larger-than-life brand images through stories, words and visuals, charismatic brand ambassadors, gripping emotions and even symbols. When product differentiation narrows or functional attributes pale, creative advertising can act as a powerful brand differentiator. For example, by showing the Hutch puppy follow the user wherever he went, Hutch could very subtly talk about its intense network coverage. The puppy symbolized network coverage and helped the Hutch campaign win multiple gold and silver Abby awards. Courtesy: Superbrands, Volume I, 2004. Reproduced with permission.

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Advertising and Integrated Marketing Communications

Advertising can be used to build long-term image of a product (such as brands like Fevicol or Thums Up have) or occasionally trigger sales in the short run (such as is done by a supermarket ad for a Diwali sale). Moreover, advertising can be very cost-effective in communicating to large audiences. For instance, today advertising on even regional cable channels has the collective potential to reach 83.6 per cent of viewers in cable and satellite homes, according to a study by TAM Media Research.9 FIGURE 1.3

Advertising gives the license to exaggerate reasonably without worrying about misleading consumers.

Courtesy: HPCL, Mudra. Reproduced with permission.

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While we are discussing ‘what advertising does’, let’s also understand ‘what advertising doesn’t do.’ Remember that advertising is not a magic wand that will enchant consumers to purchase even a lousy product, just as advertising guru David Ogilvy says, “The consumer is no moron… she is your wife.” Too often, marketers expect advertising to do the entire selling job, whereas the fact is that advertising hardly works in isolation. In reality, with the exception of direct-response advertising, advertising almost never directly sells goods. A sale is completed in a store or a showroom. Product quality, pricing, store displays, salesmen, availability and a lot of other factors affect the effectiveness of a promotional programme. Many good campaigns fail because managers put the entire burden is just a small component of the entire marketing ballgame.

∑ The most common and visible of all is brand-building advertising that focuses on creating product awareness and building brand image. It is strategic and hence relatively long term in nature. For example, till today viewers remember the ‘cricket stadium’ ad of Cadbury’s Dairy Milk with the jingle, ‘Kya swaad hai zindagi ka…’ which talked about the spontaneous, carefree Cadbury moments that even adults could enjoy. Similarly, the ‘Hamara Bajaj’ campaign launched wonders in strengthening the brand value of Bajaj. ∑ Compared to brand-building advertising which is relatively long-term, tactical advertising is through communications. For example, tactical advertising is done to inform consumers of a limited time offer, announce a price change, rectify a misconception, etc. Often, tactical advertising induces consumers to buy a product at a particular time or from a particular place. A type of tactical advertising is direct response advertising, which is aimed at stimulating a sale directly. It is delivered straight to the consumer and generally includes an offer. For example, a direct mail received from Reader’s Digest persuading you to subscribe for 3 years straight for a 25 per cent discount. ∑ Advertising done at a national level or in most parts of the country is called national advertising. It is done when the product is available nationally. National advertising is usually done through media that has good nationwide coverage like Doordarshan, popular private television channels like Sony, nationally read newspapers like The Times of India, etc. or popular regional media with wide territorial coverage. ∑ On the other hand, retail advertising is done by retailers on a local scale. It is aimed at triggering sales in the short run (direct response). Retail advertising is more informational, giving details about the outlet and its offerings. For example, your local merchant might put up a small note on his blackboard that home delivery will be provided free of cost. ∑ Public service advertising reasons by associations or organizations to create public awareness. For example, to inculcate One of the ads showed the visual of a smashed egg and read, “Wear helmet,” whereas the other showed a tyre on a gravestone and read, “Drive carefully.” In order to reduce the

16

Advertising and Integrated Marketing Communications

unpleasantness of the message, visual metaphors were used — the smashed egg stood for a broken head and the tyre for a wreath, both symbolizing the aftermath of irresponsible driving. Family planning messages by the Family Planning Department or anti-smoking messages by non-government organizations (NGOs) are also examples of public service advertising. Figures 1.4a-b depict Cancer Patients’ Aid Association and Stori subtly giving such messages. FIGURE 1.4 (a)

CPAA and Stori subtly deliver public awareness messages.

Headline: Second hand smoke kills

Courtesy: Cancer Patients’ Aid Association

∑ Corporate advertising focuses on establishing a corporate identity. The product is the company brand and advertising is usually brand building in nature. For example, as shown in the box below, the advertisement is not about the product Tata Steel, but about the company Tata Steel. By focusing on its production process, prices, and the like, the ad aspires to build an image of an environment-, market-, and customer-friendly organization. Similarly, in one of its ads, Coca-Cola informs that the company employs deaf and dumb people as bottlers and has a dedicated restoration team for heritage monuments. The ad aspires to connect with consumers at a level higher than that of mere ‘taste’ and ‘fun’.

FIGURE 1.4 (b)

CPAA and Stori subtly deliver public awareness messages.

Headline: The only other men’s wear we recommend for pure pleasure. Subhead: Issued in the interest of AIDS prevention.

Courtesy: Stori, 1 pointsize

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Headline:

Bodycopy: bulk production to value-added premium products at globally competitive prices, optimising raw material consumption, managing environment by streamlining operations and leveraging information technology for greater market agility. All this is to serve our customers even better.

∑ In advocacy advertising, a company advocates for or against an issue by taking a stand, as illustrated by the Hutch commercial. The Mobile Manners campaign was a pioneering stance taken by Hutch that urged consumers to use their mobile phones responsibly. A television commercial for Hutch (Figure 1.5) depicted a father playing with his little son. The father then fetched out his mobile to take a picture of the baby. But the annoyed kid seized the mobile and threw it away. The next shot showed a Super on the screen that read, “Bina izazat photo na kheechein.” And the commercial closed with the Hutch logo.

∑ Primary-demand advertising intends to build demand for an entire product category or industry through its generic nature or by concept selling. For example, when Fair & Lovely the category of fairness creams by depicting the positive effects of fair complexion – better marital prospects, greater job opportunities, social appreciation, etc. As we will discuss in chapter 6, brands like Livon, Rasna, Tata, etc. that are category creators or market leaders them the most. Many a time, industry associations also build up primary-demand for product categories. FIGURE 1.5

The ‘Mobile Manners’ campaign by Hutch advocated a sensible use of mobile phones.

18

Advertising and Integrated Marketing Communications

Courtesy: Superbrands, Volume II, 2006. Reproduced with permission

The National Egg Coordination Committee (NECC) regularly undertakes intensive promotion campaigns on press, radio, television and electronic media for increasing egg consumption. The advertisements aim to increase the frequency of egg consumption in households consuming eggs, gain entry into households not consuming eggs, and educate the masses about the nutritive value of eggs. For example, in Figure 1.6, and comparing it with a multi-vitamin capsule. Conventional media promotion is further vans, unique schemes of providing egg carts to unemployed youths, nutritional booklets, mother and child care booklets, recipe booklets, exhibitions, poultry seminars and sponsorships of sport and cultural events.10

their individual brands. ∑ On the other hand, selective-demand advertising aims at building demand for a differentiating their individual brands through selective-demand advertising. For example, the later entrants in the fairness cream category stressed more on product differentiation and reasons for purchasing their brands – chemical free natural contents, longer-lasting fairness, sun protection, glowing complexion, fairness-cum-blemish-removal, etc. ∑ Business-to-Business (B2B) advertising is directed at those who are not the end-consumers, but institutional customers who do not buy for self-consumption. Industrial goods can be raw-materials (cotton, iron ore), manufactured materials (pumps, motors), capital equipment (cotton weaving machines, elevators) or business supplies and services (stationery, computers, advertising consultancy services). The following advertisement (see the Box on next page) shows Blue Star deep freezers being advertised to ice-cream parlor owners. Note that the deep Additionally, like most B2B advertising, the ad is quite technical in tone. ∑ As opposed to retail advertising, which is done by retailers or other channel members, trade advertising is targeted to channel members like distributors, wholesalers, retailers,

Chapter 1 FIGURE 1.6

An Introduction to Integrated Marketing Communications

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NECC communicates to build primary demand for eggs.

An egg is the most exciting way to get your daily dose of essential vitamins. It's rich in Vitamin A to build your resistance. The Vitamin B Group for good digestion. And Vitamin D for strong bones. Eggs are packed with the highest quality protein. To repair your worn-out tissues. And boost your children's growth.

They're rich in iron and phosphorous, essential for healthy blood and an active mind. Pop in an egg every morning. It's the one vitamin capsule you'll love.

Courtesy: NECC, Enterprise Nexus. Reproduced with permission

Trade advertising is designed with this objective in mind. It informs channel members about the product, encourages them to stock and even to advocate the product to consumers.

20

Advertising and Integrated Marketing Communications

associations. Subhead: Store ice cream in a Blue Star deep freezer and it’s sure to melt. But only in your mouth. Bodycopy: For ice cream to taste its best, it needs to have just the right amount Thanks to Blue Star deep freezers you needn’t worry about the latter. Because they ensure that the optimal temperature and uniform chilling are maintained at all times. Even during a power cut. In fact, our freezers are designed to keep ice cream frozen to 70 per cent on power bills. Now you know why most ice-cream parlour owners keep their cool at all times. Baseline: Breathe easy

1.2.1.2 Sales Promotion Another important element of the promotion mix is sales promotion. It is a collection of tools that stimulate quicker or greater purchase of products by consumers or trade in the short run. Sales promotion changes the price-value relationship of a product by lowering the price, increasing the value or both. For example, when a brand offers 10 per cent discount off its maximum retail price (MRP), it lowers the price keeping the value constant. When it gives a bonus 3-for-2 offer, it increases value, keeping the price constant. Sales promotion can be consumer- or trade-oriented. Consumer sales promotion is directed to the end-user of a product and includes various tools like price discounts, coupons, sampling, rebates, contests, sweepstakes, point-of-purchase materials, etc. For example, during the festive season of Diwali, LG had introduced a Mangal Hi Mangal consumer promotion that promised assured gifts on every purchase of an LG product, along with extended warranty on select products. Trade sales promotion is directed to resellers like distributors, wholesalers or retailers to motivate them to provide special support for the organization’s product and to market it aggressively. For example, to garner special merchandizing support from retailers, control inventory to match seasonal variations, get easy opening with new intermediaries, get participation in cooperative advertising, generate excitement about the product among resellers, etc. Trade sales promotion includes tools like allowances, sales contests, price deals, trade shows, etc. and personal selling in the marketing communication mix. But today, sales promotion is a huge business in the western countries, and its importance in India too is rapidly increasing. As of 2005, the sales promotional industry in the US was over $500 billion, as opposed to $98 billion in 2001. In India 11 Reasons for its increasing popularity include its ability to produce immediate sales, increased customer preference for deals and declining real product differentiation. Also, trade members often press for promotional deals without which they may not stock new, low margin or low turnover products.

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growth of a brand. Too much sales promotion can erode brand equity and make people deal prone. According to a study of 300 working and non-working Indian housewives conducted by Preeta Vyas, 72 per cent of the total was found to be “deal-prone.” Additionally, deal proneness existed across all income categories, household sizes, occupations and age groups.12 Moreover, while sales promotion

1.2.1.3 Direct Marketing Direct marketing is a one-to-one approach that uses advertising media to produce an inquiry, a transaction and some other immediate response. In direct marketing, the marketer and the prospect interact directly, without the presence of any intermediary like a wholesaler, retailer, etc. Direct mail, direct-response television or radio, mail-order catalogues, direct email, Internet, telemarketing, etc. are various vehicles of direct marketing. The growing importance of direct marketing has prompted marketers to include it in their promotion mixes. In India, Amway, Tupperware and Readers’ Digest introduce direct marketing. They did not have any distribution channels but their own independent representatives to sell the products directly to customers. Direct marketing targets prospects on the basis of a database – a storehouse of prospect/customer information. A database has details like name, address and other contact information, geographic and demographic details and even behavioral or psychological information. Information can be collected from customer receipts, guestbook signatures, customers’ response to an offer, other company lists, by calling up customers, etc. based on a database, allows them to personalize their messages or customize their offerings for each individual prospect, and helps them in measuring responses. Through direct marketing, marketers can send not only product information, but also small product samples, colourful catalogues, product information CDs and such. Direct marketing is great for reaching small and niche audiences. Also, it offers a means for customer feedback and self-selection. To customers, direct marketing offers the convenience of receiving products directly at their doorsteps – whether by placing an order on the Internet or over the phone. Although in India people are still wary of online transactions, increased security mechanisms and alternative payment mechanisms are helping direct marketing to catch up.

1.2.1.4 Publicity/Public Relations Publicity: Publicity comprises non-personal communication by third-party sources regarding an organization’s products. It includes activities to provide newsworthy information to reporting sources like the media to build a favourable image of the organization and its products. In other words, when third parties communicate about an organization’s products, the result is publicity for the said product. Most publicity is obtained in the form of media coverage or consumer word-of-mouth. A basic tool of publicity is press releases, which are stories submitted to papers or broadcast media about a product or product-related activities. These releases are often customized to match the needs and nature of the particular media vehicle. An organization can also arrange for press conferences to make important announcements to representatives of the press. The press also gets an opportunity to interview people at the helm of affairs. An organization may also provide reporters with a press kit, which is a collection of supporting materials like photographs, articles, copies of speeches, timetables,

22

Advertising and Integrated Marketing Communications

etc. Other techniques to distribute information include telephone or video press conferences, openhouse sessions, factory tours for media, Internet releases, weblog write-ups, etc. However, newsworthy information does not naturally occur; sometimes publicists have to create it. The key to getting noticed is doing the right thing at the right time, such that it piques the audience’s interest. Organizations can prepare a publicity plan to obtain favourable coverage by creating their own news through various activities like contests, special events, celebrity hosting, public addresses publicity’s mother discipline, viz. public relations, discussed below. Public relations events conducted for getting publicity should be well connected to the product so that they do not get passed off as mere publicity stunts. A prime advantage of publicity is its low cost since an organization doesn’t have to directly pay for it. The expenses for maintaining publicists, developing publicity material, “gifting reporters,” etc., are audiences because it is believed to be unbiased reporting by third party sources, not sponsored by the organization. For example, we often base our choice of movies or restaurants on the ratings they get in local newspapers. However, publicity is a double-edged sword. An organization has very little control about what will be published or spoken about it and many a time publicity can even be unfavourable, as in the Coca-Cola case below. Moreover, very few releases published by an organization actually get taken up by the media.

a study that a “cocktail of pesticide residues” were contained in the soft drink brands belonging to Coca-Cola, the Indian consumer got alarmed. There were negative stories in the media and widespread protests by consumer and political action groups. Before the stories went public, Coca-Cola had posted strong double-digit growth in several consecutive quarters. However, in the quarter that the stories were released, the company’s unit case volume declined, even as the company’s global revenues registered a 21 per cent increase.13

Public relations: Public relations is the managerial activity that is concerned with gathering public organization so as to earn public appreciation and acceptance. In other words, public relations is a and build goodwill for the organization and its products. Many people confuse public relations with publicity, but the former is a much broader concept and the latter, one of the tools of achieving distributing newsworthy information through the media, public relations does much more than that, like participation in community affairs, fund-raising, sponsorship of events, publishing of special publications or even advertising. The result of public relations activities may be publicity.

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The publics of public relations include media, community, customers, shareholders, employees, government, etc. The types of public relations activities that build positive image or publicity for products are called marketing public relations, an area that marketing communication managers have to deal with the most. Often an organization employs public relations specialists to handle specialized functions such as managing relations with various publics, managing crisis, representing special interest groups, planning political campaigns, motivating employees, etc. These specialists must understand the concerns of each audience group, maintain congenial relations with them and feed the media representatives with positive stories about the organization. They are also responsible for conducting programmes to keep up contact with various publics, writing reports and news stories, making audio-visual presentations, setting up speaking engagements, arranging conventions and charity walks, etc. Thus, they do more than merely telling the organization’s story. The following Case in Point serves as an example.

CASE IN POINT Gillette’s Shave India Movement—A PR-Led Campaign14 Problems: Low-category involvement with razors, low Gillette equity, shaving considered a chore, and social acceptability of facial hair. Insight: Women play an important role in men’s grooming products. They can act as Objectives: Highlight the preference for a clean-shaven look and announce the affordable new Gillette Mach3 Media: ∑ Phase 1: Launch of the group Women Against Lazy Stubble (WALS) to pass on the message of a clean-shaven look. Actresses partner to support the movement. ∑ Phase 2: Exclusive feature stories in leading media channels and print publications. Social media inviting women to write in their grievances of unshaven men in their lives. Initiatives like celebrity panel discussions and debates on television, WALS commercials at gyms and malls, and consumer engagement via radio add to the excitement. ∑ Phase 3: Mass Shaveathon movement called ‘Shave India’ launched to create same time. Women shaved men at malls and outdoor locations. Results: ∑ Scripted history in the Limca Book of Records and Guinness Book of World Records for Gillette ∑ 300 minutes of airtime in broadcast media. Coverage in 300 print publications, 60 electronic channels, and over 130 online and radio exposures in target cities. ∑

∑ cent.

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Public relations is increasingly gaining importance because of its many advantages and its ability

government representatives, higher income groups, etc. These people may not be paying much attention to traditional communication forms like advertising or sales promotion, but do devote time to news, events, personal meetings or public opinion discussions. Also, like publicity, public relations has more credibility because of its non-commercial nature. It is also relatively cost-effective and less cluttered than other communication tools.

1.2.1.5 Internet/Interactive Marketing The Internet is the ultimate direct marketing medium and the fastest growing advertising medium. Internet advertising grew by 50 per cent in 2010 in India and touched Rs. 680 crore.15 While its share in total advertising expenditure in India was only 0.9 per cent in 2005,16 it reached 2.9 per cent 18 by 2010.17 to 10 per cent in 2008, and is expected to reach 13.6 per cent in 2011, which is indicative of trends to come in India.19 In 2011, Internet is expected to post 35 per cent growth, garnering Rs. 917 crore or 3.3 per cent share of the advertising expenditure in India.20 Throughout its twenty plus years of existence, the Internet has brought about many changes in the way organizations and people communicate. Tools like emails, weblogs, online discussion forums, websites, etc. have changed the language, presentation and delivery of messages. Internet communication is more personal, informal, up-to-date, interactive, targeted, less intrusive, less commercial, and non-linear in nature. After all, the Internet was designed as a communication medium and a powerful one at that! Not only communication, Internet can aid other marketing activities also such as marketing research, distribution of services or digital products, payment collection, etc. Today, an organization may be communicating through all traditional media, but if it does not have an Internet presence, viz. a website or an email to get in touch with, its image receives a setback. Hence, Internet is not an option. Also, the convergence of various media has led to the information, visit a third-party website to compare various brands and place a telephonic order through the ordering number provided on your website. Most importantly, the humungous growth of this medium in India has been driven by faster growth in the Internet user-base that has more than doubled to 121 million in 201121 from 50.6 million in 2005,22 cheaper broadband and PCs and the speedy growth of e-commerce. Communicating, informing and entertaining through websites is just the tip of the Internet iceberg. Many marketers even advertise their products through other websites, by sponsoring links in Internet search engines like Google, by placing banner advertisements or by sending emails and newsletters. Any which way, there are ample opportunities and unconventional ways to promote products. These days, marketing through blogs (short for weblog – online journals maintained by individuals or corporate teams) or egroups (electronic discussion forums for communities with a common interest – pottery, business, health, etc.) or social networking sites has become very popular. Unlike a website, these media are more dynamic where marketers establish a dialogue with readers

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and share news, views, opinions and knowledge that meet the needs of the audience in an informal While Internet remains the most powerful digital medium to affect communications, there are other interactive media also that allow for active participation from or interactivity with the recipient. Interactive media allow two-way communication between an organization and its audiences. These include mobile telephony, computer games, kiosk-based terminals, interactive television, electronic storage media, etc. Often organizations indulge in interactive advertising with the use of interactive media to promote products in the virtual and real world. Interactive advertising communicates in a the help of interactive media like emails, web links, text and audio-video clips, instant messages, chat forums, etc. It is effective at initiating viral marketing – self-replicating communication through social networks where information gets passed from person to person. Needless to say, with their many pros, digital media are becoming a popular IMC component.

1.2.1.6 Personal Selling Personal selling is a personal presentation by a representative of an organization with the purpose direct marketing, in personal selling too there is direct contact between the buyer and seller. However, the key difference is that direct marketing uses non-personal media like postal mail, television, radio, catalogues, etc. to generate a response whereas personal selling involves one-to-one communication through more personal media like face-to-face meeting, person-to-person telephonic conversation, personal online chat, or person-to-person video conference. The reason why personal selling is included as a promotional tool is that the objective of selling is not always to get a consumer to purchase a product. Often, it is intended to create awareness, deliver information and persuade a consumer – all of which are functions of communication. While other forms of communication like advertising, sales promotion, publicity, etc. take the consumer closer to the exchange process, it is personal selling that attempts to close the sale. Since one of the objectives into personal selling and non-personal selling (advertising, sales promotion, direct marketing, etc.). One of the biggest advantages of personal selling is that it involves personal contact, which provides and interactive. Sales people can customize their messages to suit the needs of individual customers and react promptly to customer questions and concerns. Also it is possible to receive immediate feedback and measure effectiveness. Above all, personal interaction provides an opportunity to build high in value, complex, requiring high deliberation, having large order sizes, or where customers cannot be easily reached through other communication tools as in business markets. Eureka Forbes promoted their sales representatives as the friendly, professional guys who would assist customers in companies’ communication mixes, primarily because of its prohibitive costs and inability to reach large audiences.

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1.2.1.7 Unconventional Media There are many other marketing communications tools that defy traditional categorization or may be ∑ Packaging: Packaging is the last marketing message a consumer sees before making a and promotional purposes – to contain and protect a product, provide handling convenience, promote the product and inform the consumers. For example, the new Surf Excel Automatic packaging allows convenience and accuracy of dosage for getting good results in a washing machine. The packet is a handy stand-up box with sachets inside, and a pullout opening at the bottom for individual sachets. Every wash load requires two sachets to complete the wash cycle (Figure 1.7). ∑ Point-of-purchase (POP) or merchandize materials: POP materials are called so because they are located in-store or at the point of purchase. A lot of purchase decisions are made in the store, and many of them are impulse decisions. A prime objective of POP is to capitalize stationed at retail outlets and include fancy product dispensers with visuals and brand logo, posters, danglers, in-store coupons and the like. ∑ Advertising specialties: These refer to items that are imprinted with company or brand promote the company name. Calendars, tableclocks, diaries, pens, t-shirts, magnets, drinkware, etc. are popular specialty items. ∑ Sponsorships: Sponsorship refers to a company’s support for an event, activity, person or organization – sports, arts, a charitable cause,

FIGURE 1.7

Surf Excel Automatic projects its functional packing in its communication.

of the company’s products. Sponsorships can augur well on a company’s image, generate publicity and build brand association with a particular cause. For example, Lakme is associated with Lakme Fashion Week, Femina sponsors Femina Miss India beauty contest, and Sahara India Parivar is associated with sports like cricket, all brands strengthening their equity in the beauty, fashion and sports industry respectively. Additionally, sponsors may also get advertising time or space for taking up the responsibility of supporting an event. ∑ Event marketing: Special events combine many IMC tools like advertising, sales promotion, public relations, etc. in linking the arrange special events themselves or participate

Courtesy: Superbrands, Volume I, 2004. Reproduced with permission.

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in events organized by other parties to create exciting product-related experiences for their consumers. Special events are different from sponsorships where the company’s association ∑ Trade shows and exhibits: Trade shows or fairs are exhibitions where companies in a in specially designed booths. They are attended by members of the industry, suppliers and buyers, media, and at times by the general public during certain hours. The primary objectives are to provide information to highly targeted audiences and get visibility. ∑ Customer service: The services that customers receive from organizations during and after the purchase process, also go on to communicate about the organization’s ethos. Services include after-sales services like home delivery, installation, warranties and guarantees, etc. and other services in managing customer relations like answering queries, assisting selection, troubleshooting, etc. The ‘no questions asked’ return policies of many US companies communicate about their commitment to quality and customer satisfaction. When Tide wanted to convey the value proposition of its product without using mass media, it used unconventional media. To illustrate that a little amount of Tide can hanging on it and the Tide branding dotting it intermittently. The clothesline put up on the pleasantly shocked people, much like the ‘chaunk gaye?’ whiteness advertisements of the brand, known for shocking people. The clothesline put up by the brand’s parent P&G as part of an integrated marketing programme designed by Arc Worldwide, went down in the ‘Limca Book of Records’ as India’s longest clothesline. The idea sprung from a consumer research study that gave the insight that a homemaker’s primary concern was her family’s well-being; she believed that one of the ways she could contribute to the family was by making the most of her budget. The clothesline struck a chord with the population of Hyderabad, becoming one of the top conversation points with people, and generating a lot of media buzz across the city over the weekend. In addition, photos taken by passersby were uploaded on various Internet sites.23

1.3 INTEGRATED MARKETING COMMUNICATION Perform this simple exercise: Get a group of about 10 people in one room and ask them to shout their favourite colours at the count of three. What do you hear? Cacophony? Now pick a colour of your choice and ask the group to shout it at the count of three. Do one voice!

Integrated Marketing Communications (IMC) has become a very popular trend in the recent times. It is a management concept that brings together all tools of marketing communication to send consistent messages to target audiences. Instead of dividing communications into several overlapping

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integrated marketing communications as, “a concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines – for example, general advertising, direct response, sales promotion, and public relations – and combines these disciplines to provide clarity, consistency, and maximum impact.” Pioneered by Don E. Schultz of Northwestern University’s Medill School of Journalism, integrated marketing communications has been implemented in Fortune 500 companies and other businesses worldwide. Called new advertising, one-to-one marketing, whole egg, orchestration, 360 branding, total branding, etc., IMC goes by many names.25

TABLE 1.6 Strengths and Weaknesses of Major IMC Tools

Tools

Strengths

Weaknesses

Advertising

Informs, persuades, reminds and reinforces mass audiences about a product; builds brand identity

Expensive, and cluttered media with high noise level

Sales promotion

Leads to immediate results, has a direct impact on sales and is measurable, helps clear excess inventory, helps nullify competitive promotions, generates excitement, gets trade and sales force support, is relatively less expensive than advertising

Has short-term results, makes consumers deal-prone, can erode brand equity and loyalty, is gradually getting cluttered and expensive

Direct marketing

Highly targeted, measurable, customization and personalization possible, suitable for certain product types, possibility for two-way communication and building long-term relationships

Expensive, not suitable for reaching large audiences

Publicity/Public relations

Can create goodwill; has high credibility; is low in cost; reaches many audiences, especially difficult-to-reach audiences

Organization has little control over what gets publicized, often has hidden costs, results are difficult to measure, does not have a direct impact on sales

Internet/Interactive marketing

Is direct, low in cost, interactive and two-directional, personalized, up-todate, targeted, less intrusive and less commercial

Smaller audiences, unsuitable for non-savvy audiences, some forms like spam emails or pop-ups can be quite intrusive

Personal selling

Highly targeted, interactive and bidirectional, flexible, message and presentation can be customized and personalized, measurable, offers immediate feedback, takes the consumer closer to sales, effective in building relationships, suitable for certain product types and niche audiences

Expensive, unsuitable for large audiences

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Weaknesses

Packaging

Makes the final impression, catches consumers in the ‘ready to buy’ stage

Placed in a competitive environment, reaches small audiences

Point-of-purchase

High impact as it is one of the last reminder messages, makes a powerful visual statement, catches the impulse buyer

Reaches a small audience, low life cycle as no guarantee of continuous retail display/support

Specialties

Personalized and highly targeted

Reach a small audience, relatively expensive

Sponsorship

Earns goodwill, builds brand association with a particular cause, brings dedicated audience in a clutter-free environment, helps get publicity

May be expensive, reaches a small audience, is not measurable and has no direct impact on sales

Event marketing

Creates excitement, builds brand association with a particular event/cause, brings dedicated audience in a clutterfree environment, helps get publicity, possibility for more interaction with consumers

May be expensive, reaches a small audience, may not be measurable, has no direct impact on sales

Trade show

Dissipates information to targeted audiences, gets visibility and media coverage, can promote interactivity, provides an opportunity for competitive survey

Reaches small audiences, relatively expensive, exposes exhibits to competition

Customer service

Delights customers, creates differentiation at the time of purchase

Directly adds to the cost of the product, have to monitor quality

As a concept, integration is not revolutionarily new, for it can be amply observed in the world around us. A Bharatnatyam dancer that synchronizes each body movement and mudra to depict a central idea is demonstrating integration. An orchestra performance where each instrument is playing

separate clues to solve a murder mystery is also practicing integration. Similarly, integrated marketing communication is a common-sense approach of looking at communication tools – not as isolated elements that communicate different things to a consumer but as inter-related parts that jointly go to solving communications problems. That is because consumers perceive various communication messages as information about a single brand from different sources. In effect, the principle of integration holds that all communications originating from a single strategic platform, where all the tools cooperate with one another, will create greater impact and synergy than when the tools work individually by themselves. The box below illustrates how the kids’ toothpaste Pepsodent addressed a problem by making different promotional tools work with an integrated theme. the need for a strategic integration of their promotional tools, instead of keeping them in separate silos.26 Communications specialists Michael Hammer and James Champy note, “Companies today

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consist of functional silos, or stovepipes, vertical structures built on narrow pieces of processes.”27 Communication originating from these watertight compartments overlapped, managers competed internally for resources and the common goal of the organization was sidelined in a bid to secure maximum resources for individual activities. However, when this fragmented communication approach did not meet the required results, the concept of IMC was born. Integration realigned various communication departments to emerge from their wells and look at the common organizational goal, to cooperate rather than compete with each other and hence be more agile in dealing with external challenges.

CASE IN POINT Pepsodent increases recall and consumption with integrated communications Problem: Maturing sales Insight: Research indicated that while mothers wanted their kids to brush regularly at night, kids often avoided it Objective: Promote the habit of brushing one’s teeth at night among kids Media: ∑ A television commercial introduced Bhoot Police (Pepsodent Bhoot (germs); Another commercial followed with mothers singing an aarti to God to get their children to brush at night, and the latter half of the commercial showing that the Pepsodent Bhoot Police answers mothers’ prayers ∑ Groups of parents, teachers and even dabbawalas were invited to sing the jingle in a live chorus on popular radio stations in a plea to children to brush their teeth at night ∑ A contest for parents to pen their own lyrics to the aarti tune and the ones with the best or most funny lyrics got the chance to sing the aarti on air; children were also invited to sing their version of the jingle on air ∑ Radio One’s ‘The Midday Show’ made the jingle its signature tune ∑ A contest for kids to become the Bhoot Police ∑ actually brushed their teeth with Pepsodent at night ∑ at night Results: ∑ Pepsodent at night ∑ Campaign won a gold award as the Best Media Innovation (radio category) for the Emvies 2006

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Organizations started coordinating various promotional activities within the company. To match this organizational change, gradually agencies too started shifting towards being ‘communications’

was built by either acquiring or partnering with direct marketing, sales promotion and PR agencies. Soon, traditional advertising agencies were transformed into a one-stop shop for all communications needs.28 For example, O&M which was initially founded as an advertising agency in India in 1928, has several business units today that offer 360 degree communication options to clients – Ogilvy Activation for out-of-home communication, Ogilvy Interactive for online marketing, Ogilvy Live for events and promotions, Ogilvy PR for public relations, Ogilvy One for one-to-one marketing, Ogilvy Signscapes for retail design solutions, and so on. Thus, IMC established a permanent foothold in the industry. The integrated lead-generation programme at Wipro Technologies is a case in point. Wipro has incorporated a web-based, fully integrated campaign management system that view, their systems are in reality loaded with contrasting and duplicating databases. Thus, when communication to prospects is from different sources in the company and through several channels, it becomes highly inconsistent. While some prospects receive duplicate messages, others get out rightly ignored. To solve this problem, Wipro merged and purged its databases and created a single information database that provided a complete view of all interactions with prospects as

senior management contacts in all.” It supports Wipro’s various marketing efforts like telesales, direct mail, and industry-based newsletters. In fact, this up-to-date in house database has completely eliminated the need to buy any external databases. It also assists marketing teams to prepare sub-lists for targeted communication, update or add better. As a result, communication has become easier to manage, more effective and less expensive. With higher personalization and focus possible due to the intelligent database, Wipro a higher return on marketing investment. Even the six- to nine-month sales cycle has been shortened to 30 days in some cases.

Promotion managers practicing integration understand the functions, strengths and weaknesses of each tool and use them to strengthen or add to the work done by other tools. For example, if advertising is used to build brand preferences and inform large audiences for a new product, sales promotion is used to generate trials, build excitement and encourage stocking at the retail level. Public relations is used in a way to get maximum publicity for the new product, build credibility and reach audiences other than consumers. POP merchandising can be used to convey ad messages in-store and remind consumers at the point of purchase. Thus, each tool serves a different purpose, but achieves a

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common goal of promoting the new product. Instead of making the tools compete with one another, if they are planned and used jointly, they can achieve maximum communications impact. The advocates of IMC take an even broader perspective of IMC and argue that an organization should integrate all marketing activities so that its entire mix of product, price, distribution and communication strategies sends consistent messages. That is because a consumer experiences a brand through various “contact points”.30 A contact point could be a friendly product salesmen calling on the consumer, a price-tag which announces the price, the brand website that consumers surf for information or the brand’s ad hoarding that consumers chance upon at a crossroad. Each of these touch points will deliver some message to the consumer. And each consumer will come in contact with the brand through a unique mix of contact points. If each of these contact points delivers a consistent message, the message will be reinforced in the consumer’s mind, as illustrated by Titan below. But if each contact point sings a different song, the consumer will be left with discordant messages. Titan conveys the image of being India’s leading manufacturer of premium watches through its various marketing contact points. The product speaks of individuality through solid gold and precious stones, or shaped by award-winning designers. Titan’s designer from brush to glossy, personalized story cards, etc. also complements the choice of watch. The watches are only distributed through exclusive ‘World of Titan’ showrooms displaying classy and unconventional layout formats and offering value-added services like gift vouchers and gift packing. Titan’s customers get excellent personal service. Titan’s after-sales service network extends worldwide and offers services like a standby watch, home-delivery, extended maintenance guarantee, etc. Even these watch-care centres experiment with new retailing formats. Titan’s advertising and music score too have gone down India’s hall of fame for their uniqueness and popularity. To further add exclusivity, Titan has roped in Aamir Khan as its brand ambassador, who doesn’t do advertisements in droves like other celebrities.

Tom Duncan and Sandra Moriarty identify 10 drivers to measure the extent of marketing integration in an organization. Factors like focusing on stakeholders rather than just customers, twoway interactivity with various stakeholders, zero-based planning approach, building and managing of databases to retain customers, focus on customer relationships rather than transactions, etc. can bring about integrated marketing.31 Experts opine that the IMC concept can be broadened even further to consider not just the impact of marketing messages, but also of corporate messages, since everything that a company does eventually affects its image. In other words, integration is important not just in communication or marketing, but also in overall business management. “Recent surveys reveal that customers are

32

In India, the annual syndicated study ‘Nielsen Corporate Image Monitor’ conducted by the Nielsen companies by important elements that drive corporate reputation such as customer service, product

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talent pool. In 2011, some of India’s most prominent companies like Tata Steel, Tata Motors, Aditya past actions, experiences of stakeholders, as well as the communication, in the eyes of the internal and external stakeholders.33 Consistency at the corporate level is essential because stakeholders do not distinguish between messages intended for them and those intended for other audiences. An organization’s employee may also be its investor, and its media reporter also its customer. Imagine the confusion and distrust that would result if a single individual received inconsistent messages about the brand or company in various capacities. Hence, today an increasing number of companies are adopting the concept of IMC. But not everyone is likely to be as successful. In a research conducted of 1000 Australian companies, Mike Reid establishes that “organizations that have a customer-centric notion; systems for linking the organization to the market and customer; and processes, systems, and mental models that link various functional areas of the organization; are better equipped to adopt IMC.” The vision and commitment of top management is also an important factor driving the IMC process. Instead of separately planning and managing independent communications activities, organizations today use IMC to coordinate and manage the entire marketing communications, marketing and corporate programs to deliver consistent messages not only to their customers, but also to other stakeholders in the company. This proves that IMC is an enduring concept that would add substantial value to marketers’ activities and also negates any doubts about IMC being just a passing management fad.

1.3.1 The Case for IMC is not unwarranted as can be seen from the below-mentioned factors, which build the case for IMC. The prime factor in favour of IMC is its ability to add value to a company’s marketing communication contact with an organization or its products through various touch points and in various capacities. If each communication tool operates autonomously and delivers incompatible messages, the stakeholder becomes confused and distrusting. For example, a company may be telling its investors and community about its concern for the environment and environment-friendly technologies on the one hand, while on the other, it may be packaging its products in low-grade plastic bags without putting an effective recycling mechanism in place. When an investor of that company buys its product, do you think he gets a consistent message about the company’s commitment to environment? On the other hand, when communication emanates from a single strategic platform as in an IMC organization, inconsistencies and duplication can be avoided and return on communication investment can be maximized. For example, if a cosmetic manufacturer that targets elite audiences communicates about prices at a premium, hardly goes on discounts, and opts for selective distribution in chic malls or lifestyle stores, it sends a consistent message of being an upscale, quality brand. Moreover, repeating the same message in a variety of ways through a number of tools makes it more impactful and memorable. In addition, IMC is the most cost-effective way of communicating because it avoids duplication, selects the best suitable tools for a particular communication task and produces a greater return on communication investment by making a bigger impact.

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Apart from IMC’s effectiveness, there are a number of environmental factors that are compelling companies to adapt, and adopt integration as a communications concept. Following are some major ∑ Decreasing impact of traditional advertising: For a number of reasons, consumers are responding lesser than ever to traditional advertising, which has become more costly and less cost-effective than before, i.e., advertising is able to reach fewer consumers even with the same or higher spends. With the proliferation of umpteen new brands, real product differentiation the brand personalities of the past. Besides, the bar has just risen higher for advertising and consumers are not easily impressed by a concoction of words, visuals and sound put together for advertising’s sake. In addition, the budget allocated to consumer and trade sales promotion has increased as a result of growing price-competition, increasing clout of large retailers, dealproneness of consumers, and the pressure for immediate results. This has spoiled the habits of even loyal consumers who have now become more deal-prone. In effect, much of the advertising budget has got diverted to sales promotion, and other below-the-line activities. ∑ Proliferation of new ways to reach consumers: The shift to IMC has been brought about by the increase in traditional media vehicles as well as the addition of new and advanced communications options. For example, media like online communication, sponsorships, product demonstrations, special events, in-programme product placements, etc. are gaining ground because of their cost-effectiveness, ability to target niche audiences and measure performance. Amongst the new media, Internet and mobile advertising are worth taking note of. An increasing number of companies today have an online presence through the website, put up banner advertisements, sponsor Internet and mobile games, create blogs and send text message ads or brand-jingle ring-tones to consumers. This sudden spurt in the number of low-cost, more targeted, niche options of reaching consumers has made a dent in the large audience coverage that traditional media once offered. Moreover, as consumers achieve increasing control over what they want to see, hear and read, they are rejecting advertising messages. Hence, marketers are looking at out-of-the-box ways of communicating to their audiences, as illustrated by the following example of rural marketing. HUL, one of the pioneers of rural marketing, overcomes the limitation of traditional communication channels by innovatively using unconventional media like wall paintings, cinema vans, weekly markets (haats), fairs and festivals to communicate with the rural folks. Given the rural consumer’s fascination for cinema, HUL’s cinema vans show popular movies, interspersed with products advertisements. HUL achieves direct consumer contact through weekly markets, fairs and festivals, which give the company an opportunity to address consumers, spread over many tiny villages, at one location.

in rural India.

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While there is the media proliferation problem to manage on one hand, on the other, there is the mind-boggling media convergence to take note of. For example, a consumer can watch a television ad of a promotional offer, cut a coupon from a newspaper ad, call the brand’s telephonic helpline for more offer details, and log on to the brand’s website to place an order. With heightened technological advances and media options, IMC has to ensure proper compatibility and coordination amongst these various channels. ∑ Demand for greater accountability: After managers succeeded in measuring the return from manufacturing, logistics and the like, organizations demanded that marketing and communications also face the same extent of accountability as other investments. Organizations want to develop systems and processes to know which elements of their marketing and communications plan worked and how well. For this, they have been using more and more analytic and accountability tools like Return on Objectives (ROO) and Return on Investment (ROI). While ROO measures marketplace response against predetermined communication objectives, ROI is more severe because it weighs communication cost relative to the returns generated, usually in terms of sales. Traditionally, ROI was used only for measuring direct marketing returns. However, modern day technology is making it possible to capture and analyze complex variables for measuring ROI for even advertising, which may not give immediate results. ROI can be maximized only when newer, less expensive, more effective and measurable tools are used. In addition, techniques like marketing and media mix modelling, which compare patterns in advertising and marketing to patterns in sales and accredit increment in sales to the attributes that drive it, are increasing the pressure on communications even more. IMC is essential because it centralizes message generation, avoids duplication and synergizes efforts. ∑ Growth of database marketing: In the recent times, companies have been able to gather observational devices and store them in the form of a computerized database. This helps them understand individual consumer preferences, segment and target consumers more effectively, and customize communication programmes for individuals or small groups instead of spending large amounts on mass communication. The modern-day consumer has also become more demanding who wants customized, interactive and permission-based communication, rather than mass-scale advertising or generalized sales promotion offers. IMC is relevant because it is more than the coordination of a company’s outgoing messages and the consistency among them. It is a strategic communication plan that captures and uses customer information to sharpen its marketing efforts. Additionally, with the increase in turnover of brand-management personnel, there is a substantial loss of learning and knowledge regarding consistent promotional strategy and market experience. This further necessitates a well-managed database and knowledge system that records all important stakeholder interactions and helps in monitoring contacts. ∑ Growth of international marketing: With companies doing more business globally, they are faced with the challenge of marketing their products not just in a region or country, but throughout different markets. This is a tricky situation because the objective is to deliver a consistent image and message in spite of having different departments and diverse cultural settings. P&G’s Camay soap failed in the Indian market because P&G reduced its price to

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move match with the international image of Camay as a premium, upmarket soap. Thus, it is the task of IMC to coordinate functions across departments and countries. Another challenge while maintaining a consistent image worldwide is to localize certain communication elements taking into account cultural differences. ∑ Emphasis on relationship marketing: Relationship marketing is a marketing practice that aims at building long-lasting relationships with various stakeholders of the company, including its customers. Relationship marketers look at the lifetime value of a customer rather than at individual transactions, identify high value customers, and create a relationship with them through personal treatment. They build databases that house important information about customers and use them to better their communication with customers. They believe that any marketing interaction with customers is not an isolated event, but a small step towards relationship building that culminates into a unique personal bond with them. Central to relationship marketing is the concept of customer retention since all interactions have the prime goal of increasing the lifetime value of customers. Relationship marketing makes customers loyal, more resilient to price increases, competitive promotions and such. Several studies have shown that the cost of retaining an existing customer is only about 10 per cent of the cost of acquiring a new customer. Reichheld and Sasser claim that a 5 per cent improvement terms of net present value) depending on the industry.36 Relationship marketing requires communication to be integrated because only in a synergistic system a customer’s various contacts with a brand can be monitored. IMC has to coordinate all communications to customers and also make the process transparent, so that managers in all departments are aware of a particular customer’s various contacts and experiences with the brand. ∑ Changing compensation structure of agencies: Increasingly greater demand is placed on marketing communication agencies these days to become brand custodians rather than simply transaction-based suppliers of communication services. Also, many clients are placing increased emphasis on measuring marketing ROI and are linking the compensation of agencies share, increase in brand awareness, etc. Hence, agencies can ill-afford to focus on a few isolated communication tools but need to concentrate on the entire gamut of communication activities. They also need to explore tools that are less expensive, more interactive and more measurable than traditional advertising. Hence, traditional advertising agencies are no longer offering only advertising services but are turning into ‘brand marketing agencies’ offering an entire communications solution with tools that are best suited to particular clients’ needs. In a bid to get more business from clients, many multinational agencies in the recent years have gone into a buying spree, acquiring regional and “below-the-line” agencies to become “fullservice” agencies, thus expanding their services and networks. ∑ Need for a single brand custodian: Integration helps develop a single brand custodian rather than separate stewards for multiple specializations. Different integration mechanisms need to be experimented with. For instance, nowadays, various agencies working on a single project of a client are creating a multifaceted work model that removes barriers between them, creates aggregated resources for mining consumer insights, and makes possible the measurement and analysis of campaigns. Similarly, there can be cross-functional specialists who may purely focus on consumer and brand planning.

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team leader for major global clients like HSBC, Samsung, etc. and for categories within resource for Leo Burnett, Starcom MediaVest, Arc and Digitas.

The need for integration is also felt as working in functional silos has robbed people of a holistic conceptual understanding, much as the four blind men decoding the elephant. For instance, earlier media people used to sit around the table and contribute to the creative process. However, with media having gone out of creative, many agency personnel are not able to understand the fundamentals of implementation or arrive at media-driven strategies. Although an ideal situation, such intra- or inter-agency integration can only work if there is an attitude shift in the industry. Agencies would have to operate in a matrix of horizontal and vertical accountability. Agencies will have to bear in mind that although they have different specializations, there is only one brand and one consumer. Hence, the need for a single voice. Need for creating brand identity: IMC plays an important part in the process of branding, or brand identity creation, and building brand equity. As we will discuss in the next chapter, a brand is a collection of images and ideas regarding a product or company. More particularly, it refers to the concrete symbols such as a brand name, logo, slogans, signs, symbols, and design scheme. Brand recognition is the result of awareness regarding a brand in the marketplace and is created media coverage, word-of-mouth and such. A brand serves to create certain associations that come to consumers’ minds when they think about it (e.g. design, symbols and sounds, values of the producer, and even personality). IMC is responsible for creating and managing consistent brand associations. Brand identity refers to the sum total of all identity marks that help recognize a brand (e.g. name, logo, design, etc.), the experiences a consumer has with the brand at various points of contact, the various associations regarding the brand, and more. Again, through its various communication tools and contact points, IMC is responsible for managing these identity marks, experiences and brand messages so that various consumers coming in contact with the brand through different touch points form a consistent identity of the brand. The better job it does at building a brand’s identity, the better will be its brand equity. Brand equity is the power and value of a brand in the marketplace. It is based on brand loyalty, brand awareness, perceived quality, strong brand associations, patents, trademarks, etc. For a brand with good equity, consumers will be willing to pay more, travel greater distances to obtain it, be more loyal to it, etc. Thus, integration and synergy in communications go a long way in building and strengthening a brand. Table 1.7 lists the top 10 global brands and their values. The box below illustrates how the cartoon series Tom and Jerry, featured on Cartoon Network, recreated its brand experience.

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TABLE 1.7

Rank

Brand

2011 Brand Value in Million USD

1

Coca-Cola

71,861

2

IBM

69,905

3

Microsoft

59,087

4

Google

55,317

5

GE

42,808

6

McDonalds

35,593

7

Intel

35,217

8

Apple

33,492

9

Disney

29,018

10

HP

28,479

Source: Interbrand report 2011

CASE IN POINT TOM and JERRY– Staying relevant 70 years after inception38 Problem: With a plethora of new television shows, there was a need to strengthen the legendary Tom and Jerry (TJ) cartoon series as a successfully running top rater on Cartoon Network. Insight: Even after 70 years, TJ provides great entertainment, both to adults who have grown up watching the show, and to kids who are newly introduced to it. However, it is lost amongst other shows. Objective: To reiterate the magic of the timeless tales of Tom and Jerry, broadcast Media: A mix of several media was used to maximise the visibility and create a huge buzz in key metros. Phase 1: January 2010 Chor Police’. There were celebrity interviews and feature stories about TJ in leading newspapers to pique people’s interest ahead of BTL activities. Phase 2: February 2010

frames, etc. were given to people in T and J rows. for kids.

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2-week campaign was conducted in Mumbai. Phase 3: March 2010 TJ Express train with TJ branding ran for a month in Mumbai and did

along with their kids in the three cities of Chandigarh, Mumbai and Ahmedabad. The birthday parties were themed to exude the TJ look-and-feel and featured tattoo artists, celebrities, photo kiosks and game parlours. th

birthday of Tom and Jerry. Event was attended by celebrities who performed acts in the TJ style.

Results: magic of Tom and Jerry. media. th

birthday celebrations.

It is important to note that in spite of its several advantages, integration faces many hurdles such as poorly structured organizations where individual managers plan communications with their individual budgets, IMC planning left to tactical specialists rather than included at the strategic level, bias of agencies towards particular communication media, lack of information sharing, etc.

1.3.2 The IMC Model The model given in Fig.1.8

out marketing messages, which is not the responsibility of communications alone, as can be seen

strategy framed on the basis of the integrated marketing strategy. IMC coordinates the high-control messages to bring consistency and synergy, and tries to increase control over low-control messages.

1.3.3 The IMC Planning Process As discussed earlier, marketing communication is one of the four tools of the marketing mix. Hence, it is based on the strategies laid down in the marketing plan, which in turn is derived from the overall marketing functions and then of its marketing communications functions. Strategic planning is the

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FIGURE 1.8

A first-level graphic view of the IMC model.

process of devising a plan of action for meeting an organization’s goals with its limited resources, and in the wake of varying market conditions. Strategies allow an organization to focus its limited sustainable competitive advantage. Competitive advantage, explained in detail in the next chapter, is an area of operation where a company performs better than competitors. There are 3 primary

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∑ Objectives: What the company wants to achieve. Objectives dictate the course of action to be taken. For example, penetrate 20 per cent of the company’s rural target audience ∑ Strategy: A long-term plan of action designed to achieve the objectives. For example, launch smaller pack sizes with reduced prices, intensify rural distribution, etc. ∑ Tactics: Immediate actions with resources at hand; short-term isolated events to take advantage of opportunities at hand. For example, pack products in plastic pouches of 25 gm. priced at Rs. 5, appoint 3 new distributors to handle target audience territories, etc. Figure 1.9 outlines the IMC planning process. Basic steps involved in the marketing plan are shown whereas the IMC plan is delineated in greater detail. FIGURE 1.9

The IMC planning process. Corporate Plan (Corporate objectives and strategies)

Marketing Plan (Marketing objectives and strategies) Steps involved in the marketing plan 1. Situational analysis 2. Set marketing objectives 3. Devise marketing strategies 4. Frame implementation tactics 5. Monitor and evaluate performance IMC Plan (IMC objectives and strategies) Steps involved in the IMC plan 1. Situational analysis 2. Determine a problem or opportunity 3. Determine the communication objectives 4. Determine the budget 5. Develop IMC strategies a. Select target audience b. Arrive at the communications mix c. Design message strategies d. Determine media strategies 6. Implement the strategies and monitor activities 7. Evaluate the planning process

1.3.3.1 The IMC Plan The marketing communication plan originates from the marketing plan and is an integral part of the latter. Marketing communication managers utilize details from the marketing plan that are relevant goals. The IMC plan selects the right communication tools, integrates them, plans accompanying media and messages, and also allocates the communication budget to various tools. In addition, IMC is also responsible for managing how other tools of marketing, viz. product, price and distribution, communicate to audiences.

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1. Situational analysis: Like the marketing plan, the promotional plan also begins with an analysis of factors that are relevant to the promotions situation. Following are some common Past promotional situation strategies, tools, media and budget Product situation availability, features, unique selling points, etc. Audience situation

Competitive situation their positioning, strengths and weaknesses, budget spends, etc. Regulatory situation rules and regulations prescribed In addition, a SWOT analysis, analysis of Strengths, Weaknesses, Opportunities and Threats from the communications perspective, can also be done. The organization can review the structure of its promotional organization and its communication capabilities, list down resources at hand, note down promotional strengths and weaknesses vis-à-vis competition et al. SWOT and situational analyses are done by experienced communications managers based on their past experiences and research inputs. For example, based on a research, Marico learnt and black hair. Hence, through its communication, it positioned Shanti Amla as the recipe for ‘Kaale Zindadil Baal.’ 39 The tobacco giant ITC used to sponsor tournaments as a brand promotion activity Gold Flake brand, golf and horse racing for Classic, and cricket for Wills. But when the Union Cabinet banned all tobacco advertising in the country since 2001, ITC had to pull out of these sponsorships. However, ITC was fast to adapt to the change in the regulatory environment. In only 3 years, the group made a comeback in sports sponsorship with the launch of ‘Sunfeast ever women’s tennis event in South Asia.

2. Determine a problem or opportunity: The situational analysis done in step 1 helps a company identify problems or opportunities concerning communications. IMC plans can solve problems like lack of awareness or knowledge, negative attitudes, misconception about the product, poor image, lack of motivation to act, inadequate coverage of audience through communication, etc. It can also aid other tools of marketing, viz. product, price and distribution, by focusing attention on or away from them, or by justifying them. For example, communication can highlight the reduced price of the product or take attention away from the high price by focusing on the superior features of the product.

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In McDonald’s early years of entry into the Indian market, an analysis of its product portfolio revealed a number of products, which weren’t doing well. The problem was that they didn’t suit the Indian palate. A subsequent ‘Indianization’ of the menu and a shift in the communication strategy helped increase the number of footfalls. The communication transformed McDonald’s image from the one ‘offering bland western food’ to the one offering ‘less oily, less spicy, crispy and tasty food.’

3. Determine the communication objectives: objectives. Whereas marketing objectives refer to the overall marketing programme and are

awareness to be created, knowledge to be given, attitude and behaviour to be changed, image to be built, etc. as indicated by the example below. Godrej No.1 soap’s marketing objective was to gain sizeable market-share in the stagnant personal wash segment by courting the value-conscious consumer. However, the challenge was to do this without getting the ‘low price, cheap soap’ image. Hence, the marketing communication objectives emphasized establishing the soap as a ‘Grade affordable soap category did not possess). The idea was to create dissonance among non-users by establishing Grade 1 as the quality benchmark in soaps and doing this without the usual technicalities and jargons associated with quality parameters.

4. Determine the budget: After setting the communication objectives, a company has to estimate how much it is willing to spend on the promotional programme. The company has to consider various issues like how much the programme will cost, how much it can afford, how much competitors are spending, etc. There are several methods to estimate and arrive at the budget, which we shall discuss in later chapters. The allocation of budget amongst various communication tools and amongst various media vehicles within those tools is done at a later stage in plan development. Although an ideal situation would be where budget does not act as a constraint in the planning process, this is rarely the case and strategies have to be worked around it. 5. Develop IMC strategies: This is the most thorough and demanding step of the entire planning process that requires a number of key decisions to be taken. One fundamental decision is regarding the selection of the target audience – who is it that the company wants to communicate to? In the marketing plan, target markets – the groups of people to whom a

Although both terms sound confusingly similar, there is a notable difference between the two. For example, the target market for pet foods is that of pets like dogs and cats. However, the target audience for the purpose of communication comprises pet owners, animal welfare agencies, veterinarians and the like. Similarly, the target market for Saffola oil is primarily busy

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working men over 30 years of age, but the target audience in communication is their wives who take responsibility for the health of their husbands. Arriving at the right target audience is no mean task. For example, for a television set, whom

the manager has detailed information about the product and market, appropriate target not limited to consumer audiences alone. When a new product or promotion is launched,

so on. In general, a consistent common message should be delivered to various audiences. Another key strategic decision is regarding the marketing communications mix. The mix has to be decided keeping in view various factors like objectives of the program, target audiences to be reached, promotional budget, type of product, etc. In addition, as discussed earlier, each tool has some general strengths and weaknesses (Table 1.6). For example, advertising is good for building the brand, public relations for building credibility, sales promotion for spurring sales instantly, personal selling for maintaining a more personalized touch, and so on. Also, more than one tool can serve the same function. While the communications mix works to achieve IMC objectives, each individual tool also has its own set of objectives, budget and strategies. Once the mix of tools is selected, communication managers start working on the individual tools. Next, message strategies need to be worked out. This is an important decision because situational analysis. The messages delivered by each tool should be consistent with the overall IMC message being sent. Media strategy, another crucial strategic decision, involves determining the communication channels that would be used to deliver the messages. Each promotional tool has a set of media vehicles or message delivery options to choose from. For example, one can advertise on television, on radio, in print, etc. Similarly, direct marketing can be done through direct mails, emails, Internet websites, etc. Media options are selected after careful evaluation of their costs, advantages and limitations, target audience reach and appeal, message strategy, and the like. For example, if teenagers are to be reached, radio or youth television is a better alternative than newspaper advertising, whereas if cost is the concern, television might be an expensive alternative. 6. Implement the strategies and monitor activities: Successful implementation calls for breaking up the plan into micro-level activities, timing and scheduling them, assigning them to people-in-charge, coordinating their efforts and monitoring the execution process. For example, to execute a bonus-pack sales promotion programme, communications department will have to get the offer-announcing sales materials printed, sales representatives will have to convince retailers to display promotional posters and danglers, logistics department will have to oversee that bonus-packs reach the stores on time and that there is enough stock to last the offer period, and so on. It is possible that at the implementation stage the company

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realizes that many retailers are unwilling to stock the bonus-packs because they don’t have enough shelf-space for the larger packs. Marketing communicators should anticipate as many implementation-time hurdles as they can and provide ample lead time for all the activities to be executed as per schedule. Finally, the manager must monitor the execution to ensure that all activities were implemented appropriately. 7. Evaluate the planning process: Evaluation of an IMC plan is not easy because often

evaluation possible. These standards are communication objectives in terms of image creation among percentage of people, attitude formation, information dissipation, or sometimes, sales enhancement. Next, the managers have to measure actual performance, either through performance with set standards and evaluate if they met, failed or exceeded the standards. step helps the planner in later promotional plans.

Summary

cohesive programme to solve marketing problems. Promotion or marketing communication is the process of effectively communicating product information or ideas to target audiences. There are various planned and unplanned tools of marketing communication. Traditionally, advertising, sales promotion, public relations, personal selling and direct marketing have been included in the promotions mix. Among these, advertising for many years got the highest share in the promotions budget of an organization. Today, an increasing number of less conventional tools like sponsorships, packaging, specialties, licensing, etc. are also incorporated in communications mixes. Integrated marketing communication is the practice of unifying an organization’s various marketing communications tools and other marketing activities that communicate with target to a number of factors like increase in the number of communication tools, decreasing impact of traditional advertising, growth of relationship marketing, increasing need for building a consistent brand image, fragmentation of media markets, etc. Hence, many marketers, ad agencies and promotional organizations have moved towards IMC. To plan an IMC programme, an organization begins by the strategic planning of its business, next of its marketing functions and then of its marketing communications functions. An IMC programme is planned to achieve communication-related objectives. It requires promotion managers to analyze the strengths and weaknesses of various tools and use the right ones to give consistent messages. The model given in Figure 1.9 indicates the steps involved in planning, marketing and communication programmes.

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Exercise 1. Select a brand of your choice and spell out the elements of its marketing mix. Describe the features of the product, its packing, services, various price points, channels of distribution, various promotional tools that it uses, etc. 2. Why do communications managers attach so much importance to integrated marketing communications? Choose a well-known brand and discuss how it uses IMC to give consistent messages. 3. Discuss the role of public relations as an IMC tool. Give example of a company that has integrated public relations in its communications strategy. Was the company able to achieve desired results? haats as innovative media used by marketers like HUL. What other such unconventional media are used in India? Make a list of such media and evaluate their strengths and weaknesses. Do you think they have advantages over traditional advertising? 5. Critics argue that Internet in India as a communications medium will not be able to yield the same results as in developed countries due to poor PC and Internet penetration. How far do you think the argument holds water?

Suggested Class Projects 1. Form groups of 5 to 6 students and contact a local communications agency. Interview a couple of key people in the agency regarding how they use integrated marketing in practice. 2. Find an example for each of the common types of advertisements discussed in the chapter. What purpose do they serve?

Critical Thinking Questions 1. Research indicates that IMC is more used in companies that encounter a high level of competition. Do you think this is true? Give reasons and examples to support your claim. 2. Which of the following types of organizations do you think is more equipped to implement IMC? Why? a. Large vs. small organizations b. Goods vs. service organizations

CASE STUDY Marketing the Jan Lokpal Bill India’s war against corruption had been silently brewing for more than 60 years since independence. So it was not surprising that in October 2010 it caught more wind. In the past year, the country will to tackle corruption and tardy response rate created a feeling of deceit. Finally, the Shunglu Committee’s investigation of the Commonwealth Games scam was just the last straw on the camel’s back to fuel the outrage. It led to a press conference by eminent public personalities to highlight the assembled at the Parliament Street Police Station to register a complaint regarding corruption in the Commonwealth Games. On December 1, another press conference was held in New Delhi, in which

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a comprehensive anti-corruption bill – the Jan Lokpal Bill, was released. And the anti-corruption movement, packaged in the form of the Jan Lokpal Bill, got rolling with full momentum. Like the peeling of an onion, it uncovered various other issues, such as the 2G scam and the Bofors scam that epitomised corruption-at-work. And thus was born ‘India Against Corruption’– a citizen’s movement to demand reforms of anti-corruption laws and systems in India.

India Against Corruption (IAC) The IAC is a strictly voluntary organisation where several eminent anti-corruption activists have come together to force the Government to enact an effective Lokpal Bill. Amongst the core committee Anna Hazare

Kiran Bedi

Arvind Kejriwal

Justice Santosh Hegde

Shanti Bhushan

Prashant Bhushan

Medha Patkar

Arch Bishop of Delhi Vincent M Concessao

Mayank Gandhi

Manish Sisodia

Dinesh Vaghela

Sanjay Singh

Kumar Vishwas

Prithvi Reddy

Chandramohan– Representative of Chennai Team

Akhil Gogoi

Darshak Hathi– Representative of Art of Living

PV Rajagopal

Swati Maliwal

Arvind Gaur

Devinder Sharma

Sunita Godara

Naveen Jaihind

Gopal Rai

Rajinder Singh

Maulana Shamoon Qasmi

IAC’s core committee, propelled by the organisational skills of Arvind Kejriwal and the leadership of Anna Hazare, is instrumental in channelizing collective public outrage against corruption. The movement is also supported by other notable personalities like Baba Ramdev, Sri Sri Ravishankar, Swami Agnivesh, Mallika Sarabhai, etc. IAC invites volunteers from all religions, castes and crosssections of the society to join the movement and lend their time and talent to the cause. Through information given on IAC’s website, interested citizens can contact volunteers in their city to register with IAC, or can directly register through the website. IAC’s participants are bound by its code of conduct (Annexure 1.2). IAC’s source of revenue is through donations, and being a transparent citizen’s organization, its receipts and expense statements are available for public view on its website. The receipt statement even mentions the 100 rupees received from JK Industries by cheque in 2011–12.

The Jan Lokpal Bill (JLB) While several Lokpal Bills were introduced by the Government since 1968, none was ever passed by the Indian Parliament. And the latest version of the Lokpal Bill drafted by the Government IAC. Hence, IAC members came up with a citizen’s version of the Lokpal Bill, popularly known as the Jan Lokpal Bill. It demanded a strong, independent Lokpal that could investigate ministers, the entire wish list acceptable. Table 1.8 lists the major differences between JLB and the Government’s version of the Lokpal Bill. To drum up support for JLB, public awareness drives and protest marches were carried out by IAC. But the ultimate move by IAC came in April 2011, when the civil activist

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and well-known Gandhian Anna Hazare went on a Satyagraha – a non-violent protest through an citizens noted their support of JLB, which also attracted huge attention of media. TABLE 1.8

Differences between Jan Lokpal Bill and Draft Bill 201044

Jan Lokpal Bill (Citizen’s Ombudsman Bill)

Draft Lokpal Bill (2010)

Lokpal will have powers to initiate suo moto action or receive complaints of corruption from the general public.

Lokpal will have no such powers. It can only probe complaints forwarded by the Speaker of the Lok Sabha or the Chairman of the Rajya Sabha.

Lokpal will have the power to initiate prosecution of anyone found guilty.

Lokpal will only be an Advisory Body with a role limited to forwarding reports to a ‘Competent Authority’.

Lokpal will have police powers as well as the ability to register FIRs.

Lokpal will have no such powers and won’t be able to proceed with criminal investigations.

Lokpal and the anti corruption wing of the CBI will be one independent body.

The CBI and Lokpal will be unconnected.

Punishments will be a minimum of 10 years and a maximum of up to life imprisonment.

Punishment for corruption will be a minimum of six months and a maximum of up to seven years.

Marketing the JLB common man. IAC has effectively projected ‘corruption’ as an issue that would concern every citizen. Merely talking about the 2G scam, Bofors scam or scams worth hundreds of crores of rupees does not apparently affect the common man. IAC has realized that presenting people with purely a macro view of corruption or debating it on news channels would not stir emotions. For successful marketing of the citizen’s version of the Lokpal Bill, it would have to make it relevant to the ordinary Indian. Hence, IAC says, “Whether it be routine transactions that involve the Government, or services and harassment, delays, poor quality, absent infrastructure and unequal access.” This has struck a chord with the ordinary Indian. He can relate to it with the bribe that was given to cops last night, the court case that has been pending for years, or the manhole in the road that got his car damaged. And it is only after bringing before him a picture of ‘what is’ that the IAC tells him about ‘what can be’ and ‘how’. The IAC projects Jan Lokpal as an effective and independent institutional mechanism for tackling the malaise of corruption in India, and people’s contribution as an important step in getting the JLB passed. The image of a ‘corruption-free India’ has found its appeal among the young and aspiring Indians. In a country where more than 50 per cent of the Indians are below 26 years of age, and less than 1 per cent of the people are super-rich, IAC’s targeting of the young, educated and middle-income Indians Rang De Basanti and Lage Raho Munnabhai. It wants to contribute to nation building, which is also considered ‘cool’, but does not know how. It is educated, and uses mobile phones and social media to express its opinions, and can be the early adopter of a powerful idea.

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FIGURE 1.10

Even people who cannot make fulltime commitment but have some time to spare are requested to be a part of the JLB movement. IAC realizes that the success of the JLB campaign depends entirely on its volunteers. Hence, through various media it appeals to people from all across the world to lend their time and talents to free India of corruption. Volunteers can choose their level of involvement based on the time commitment they wish to make. IAC encourages people to educate themselves about the to a better drafting of the Bill. People are made to realize the importance of this through messages

of the nation.” Through a JLB video and communication material posted on the IAC website, citizens are persuaded to understand what JLB is and how it would help curb corruption. IAC then invites people’s feedback via emails and opinion polls. A viral effect is created by requesting people to share the results of their poll on their Facebook status. IAC further motivates those who have educated themselves about the Bill to spread the word by holding public meetings (Annexure 1.2) or sending emails to contacts. IAC’s website (indiaagainstcorruption.org) is also well-maintained and replete with information about the campaign, event updates, volunteer registration, publicity material and a lot more. IAC for discussions. Thus, through ‘crowd sourcing’, youngsters are designing the communication and becoming the voice of the campaign. By exchanging status messages 2-3 times a day or posting updates from the campaign on their Facebook page, youngsters are becoming the brand advocators. For those who wish to participate more actively, or beyond the social media, IAC provides several opportunities. For instance, to commemorate the birth anniversary of martyr Bhagat Singh, over 150 people visited the Parliament Street Police Station for the ‘Say No to Bribe’ campaign. People and with stickers which said ‘Bhrashtachaar Nishedh’ (Corruption Banned).

Anna Hazare: The Brand Ambassador of JLB today as the man who moved a nation in revolting against corruption. Anna is respected for his contribution to the development of the village Ralegan Siddhi in the drought prone Ahmednagar district of Maharashtra. The erstwhile barren village was metamorphosed into a unique model of

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rural development due to its effective water conservation methods, which made the villagers selfalcoholism, poverty and forced migration to urban slums. Ralegan Siddhi became a model village for which Hazare was awarded the Padma Bhushan by the Government of India in 1992. And Anna Hazare is now synonymous with rural development in India. He was also on the forefront for pushing for the Right to Information (RTI) Act. Hazare likens himself to a fakir who has no family, no property and no bank balance. With his Satyagraha, he is also regarded as Mahatma Gandhi of the modern times. Whether a fakir or a Mahatma, Anna Hazare’s image is spotless, and he has become the biggest brand of the Jan Lokpal campaign, much In April 2011, when he gave a call to the nation to compel the government for the enactment of in hundreds of cities and villages all across the country. The fast ended on 9th April after 98 hours, when the Government accepted most of the demands due to public pressure. The fast also led to the Government agreeing to setting up a Joint Drafting Committee, which would complete its work by June 2011. However, the committee failed to agree on the terms of a compromise bill and the Government introduced its own version of the Bill in the Parliament in August 2011. fasts or relay-fasts, besides rallies and dharnas in their areas. People’s mass movement took the form of various local activities in remote corners of India as well as in foreign cities. However, hours were taken into custody by the Indian police and detained at the Tihar Jail. This prompted massive outrage amongst people, who gathered near the jail and came out on the streets of their homes and protested. A series of spontaneous demonstrations were organized across the country in ‘Annaji’s’ support. Finally, the UPA Government was compelled to agree to release Hazare in 12 hours of arrest by succumbing to public pressure. However, Hazare refused to leave Tihar till a solution was reached at the fast venue. Supporters gathered outside prison, whereas Hazare continued to fast from jail. Finally, he was permitted to fast at Ramlila Maidan, after which he left the jail. Fasting continued for 12 days till the Government agreed to send Hazare’s three demands to the standing committee on Lokpal Bill. On 27 August 2011, an all-exclusive session of Parliament was conducted and a resolution was unanimously passed after deliberations in both the Houses of Parliament, in which agreement was reached in principle on three important issues. Hazare termed this as a battle ‘half won’ while ending the protest. Hazare’s detention was perceived by people as the arrest of a guiltless and respectable man through the use of power, which further strengthened people’s support for the JLB movement. Taking the anti-corruption campaign to the next level, Hazare has announced that he would tour across the entire country from October 2011 to educate people about JLB. The latest protest was held on 11 December 2011, when Hazare sat on a day long fast at Jantar Mantar in New Delhi protesting against the proposals of the Parliamentary Standing Committee on anti-graft measures. This time, the debate regarding the Bill. Further, amid indications that the Government may not be able to get the Bill passed by December 22, 2011, Hazare has threatened that he would begin the next round of ‘Jail Bharo Andolan’ (Fill Jail Movement) and protest outside the homes of MPs from January 1, 2012 if the Bill is not passed in the winter session

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of the Parliament. In wake of this, the Government has also decided to fast track the Bill and is showing signs of urgency. An open debate on JLB was also held at Jantar Mantar where Hazare and IAC discussed various contentious issues related to the Bill with the public.

Brand Symbols and Merchandise With people’s support for Hazare and his FIGURE 1.11 Anna merchandise making their rising popularity, it is no wonder that the social way to the market, sparking a buying frenzy activist, together with his white dhoti-kurta and Gandhi topi, has become the icon of the anti-graft movement and the perfect magnet for the young generation. Even the tagline of the campaign launched by IAC is ‘I am Anna Hazare,’ which is impactful and actionoriented. Igniting a spirit of activism, various Anna merchandise have made their way to the market, sparking a buying frenzy (Figure 1.11). From caps, T-shirts and 3D masks to stickers, magnets and badges, Hazare imprinted goods are all the rage among supporters. And the youth are sporting him on their sleeves, as it is a fashion statement to don an Anna T-shirt or sport a Gandhi cap with the ‘I am Anna’ slogan printed across it. Rama, a street trader who moved to Delhi from her village on the outskirts of Haryana, “I have specially come to sell Anna caps. His fast has boosted my business tenfold so I almost make 3,000 rupees a day.” It is not local vendors alone, but even established brands that are sailing high on the anti-graft bandwagon. The cult-brand Tantra too has recently launched a line of T-shirts imprinted with anti-corruption slogans. According to IAC, in Pune alone, they had sold more than 1,500 demand for Anna merchandise reached a new high, many manufacturers resorted to hiking the prices by almost three times and forcing labourers to work overnight to meet demand. With the nationalist Not just caps and T-shirts, but books written by Hazare or on him, were also running out of stock. Opportunistic entrepreneurs too were coming out on busy streets to give an ‘Anna haircut’ or paint Anna Hazare has also captured the imagination of several brand managers who are cashing in on his popularity. Nokia is now promoting its smart phones with an operating system called Simbian Anna, actor Saif Ali Khan is seen at a peaceful rally in an ad for Lays, and Anna is also featured in advertisements of Amul Butter and the pesticide brand Hit. Posters of Lage Raho Munna Bhai and Dabang with Anna are also a common sight.50 In addition to being featured in the merchandise, Anna Hazare became the key icon used in the promotion and publicity of the JLB campaign. Images of Hazare meditating at Rajghat or of him lying down at Ramlila ground and clapping along to the bhajans being sung were widely portrayed by the media. At the same time, care was taken by IAC that the communication for the Bill was neutral and global in nature, so as not to entice any religious feelings or regionalism. In fact, when

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Hazare broke his fast, he took water from a Dalit girl and a Muslim girl. And the backdrop depicting him at public places comprised a large photograph of Mahatma Gandhi, likening the frail elderly

Competition While IAC’s campaign against corruption seemed to be gaining widespread popularity, its competitor, the Government, seemed to be laying one wrong card after another. First, the Government refused to accept the need for an anti-corruption law, giving the impression that it was evading and stalling an effort to cleanse the country of corruption. Days after Anna’s 16 August fast, newspapers were screaming with Prime Minister Manmohan Singh’s denial that Lokpal as an institution would solve the problem of corruption and his statement that there was “no magic wand to remove corruption.”51 The Government’s handling of the media and communication after its electoral victory in 2009, act on multiple fronts to eradicate corruption, while harping on his statement about there being ‘no magic wand’ to remove dishonesty. Through its silence and inept communication with media, the Government let the champions of JLB drive the debate. Even the arrest of Anna Hazare was illadvised and revealed that the Government had badly misread public sentiments. Hazare’s protest had been a peaceful demonstration and Government’s use of power in taking him to custody did not go down well with his supporters. On top of it, he was detained at the Tihar Jail, which is infamous for imprisoning some of the most notorious criminals of the country.

The Social Revolution IAC’s social revolution is spurred by its team of under-30, young and enthusiastic volunteers, some a committed team of IT experts from the Public Cause Research Foundation (PCRF), which acts as a secretariat for IAC. They also track television channels and post videos on YouTube to create a worldwide buzz. IAC further promptly caters to people’s eagerness regarding Anna Hazare by posting the latest information about him on social networking sites like Facebook (www.facebook. com/IndiACor) and Twitter (@janlokpal). Additionally, Anna’s daily quotes on IAC’s website help him directly convey his viewpoints to people, generating hundreds of responses from all over the country. Hazare’s video recorded in Tihar had 1.6 lakh views on YouTube.52 On Independence Day, Anna had over 500,000 mentions through status updates and comments across top social networking sites, including Facebook and Twitter. Two days later, the number had shot up to 9 million, according to Vangal Software and Services, a company that analyses trends on social networking sites. Facebook 53 Anna was also among the ‘top 10 most-searched terms’ on Bollywood superstar Shahrukh Khan. people. To mobilise the mobile phone owning population of India, team Anna ran a drive requesting people to give a missed call to a Mumbai number to show their support for the anti-corruption movement. The aim was to receive 25 lakh missed calls. When a caller called the number, it automatically got disconnected after a few rings. A record of the callers’ numbers was maintained and checked to

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ensure that there was no duplication of numbers in the database. Citizens came out in full support of the movement, spreading the word through SMSes and emails. An average of 2,000 calls were received per day, and by September 6, 2.5 crore missed calls had been received.55 soared since the protest started. On 23rd August, an SMS asking everybody to protest outside the houses of MPs and ministers was sent to over 56 million mobile users through Site2Sms.Com, a free SMS site.56 Similarly, over 10 lakh people had cast their vote in an online campaign ‘Against Corruption is more than the population of 78 countries! This unprecedented display of online activism, without much publicity of the survey in media, was a clear indication that the protest was spontaneous.57 IAC has even launched android mobile applications with the objectives of dispersing information and collecting reviews and reports regarding corruption from all over India. One of the mobile apps, the Jan Lokpal Bill Android Mobile App, allows users to connect with each other and get their queries answered by team Anna. They can also learn the latest on the Bill, get information about IAC events, see related videos, and register with IAC as a volunteer through the application. The application also has a feature, which allows users to make a missed call from within the application interface to show their support.58 Marketers, advertisers and game developers too have gone topical, catapulting the Anna Hazare campaign into a global phenomenon. For instance, one of the games developed by an independent developer and available for free download, requires players to help Anna acquire the Lokpal Bill, but before that they have to get past politicians like Sonia Gandhi, Manmohan Singh, P. Chidambaram, etc. who create hurdles for them.59 There are other free online games too like Angry Anna (on lines of Angry Birds) and Yes Prime Minister (Figure 1.10) that allow people to punish those who are responsible for corruption.

Media Coverage and Publicity The prime interest point for the media was that the campaign had phenomenal ‘news value’. People looked forward to nibbling on daily updates of the campaign along with their morning tea and breakfast. In addition, the campaign was timed perfectly to grab media attention. Launched between spokespersons of IAC, such as Arvind Kejriwal, Prashant Bhushan and Kiran Bedi, were highly vocal and communicative with the media. Although Anna Hazare himself gave few interviews, he addressed the public and media several times at the Ramlila Maidan. Hazare was extensively covered by media during his Tihar arrest and fast. To give him more airtime, many news channels decreased their entertainment-related content or cut down on their advertising news events on television (Table 1.9) of national news channels. Even viewership increased for most news channels. For instance, the viewership of Star News rose by 15 per cent – from 26 million viewers to 31 million. The genre share of Hindi news channels rose from 5.9 per cent in the week ended August 13, to 11.02 per cent in the week ended August 20, according to TAM. And the time spent on news channels doubled in just a week, with the average daily time spent on Hindi news channels rising from 8.5 to 16.9 minutes. Newspapers too covered the agitation extensively, taking a pro-Hazare stance and agreeing to the need for tackling the malaise of corruption.60 The anti-corruption movement has been named among the top 10 news stories in the world for the year 2011 by Time magazine.61

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Advertising and Integrated Marketing Communications TABLE 1.9

Top-viewed News Events on TV Event

% of audience

Period

Anna campaign

12.41

Week 34, 2011

Babri demolition case

11.54

Week 40, 2010

YSR chopper crash

12.31

Week 36, 2009

26/11

17.81

Week 48, 2008

Mumbai train blasts

11.78

Week 30, 2006

9.71

Week 31, 2005

Mumbai floods Tsunami

10.35

Week 1, 2005

Lok Sabha polls 2004

10.22

Week 20, 2004

7.56

Week 38, 2001

9/11 Source: TAM

Many prominent people from government agencies, corporate houses, industry associations, etc. came out in support of the movement, speaking, writing or protesting for the cause, which added more publicity value to the agitation. Bollywood celebrities, such as Aamir Khan, Priyanka Chopra, Tom Alter, Anupam Kher, Farah Khan and A. R. Rahman also publicly pledged their support for the campaign, and expressed their backing through sites like Twitter. The late Indian artist M. F. Hussain showed his endorsement by drawing a cartoon of Hazare. Kapil Dev, former captain of the Indian National Cricket team, wrote a letter to the Prime Minister urging him to adopt JLB. Even political parties like BJP and CPI (M) lent their accord to the movement, but IAC and the protesters were Various opinion polls and surveys have been conducted by different agencies to gauge people’s sentiments regarding JLB. In one such survey conducted by IAC, it showed that 85 per cent of the participants were opposed to the Government’s version of the Bill. The team especially cited the results from the Chandni Chowk constituency, the constituency of Telecom Minister Kapil Sibal, who is a fervent voice for the Government’s version of the Bill.62 According to another survey conducted by STAR News and Nielsen, 87 per cent of the 8900 respondents of the survey supported JLB. The knowledge about the Lokpal Bill; awareness about Anna’s campaign; and perceived problems with JLB.63

The Agitation Continues As of December 2011, the movement against corruption is far from over. However, the public support that the agitation has garnered so far, especially without any professional help, is astonishing. Through large-scale participation of the youth, clear and effective messaging, and right use of social media and other low-key tools of marketing communication, the propaganda for Jan Lokpal Bill has reached a crescendo. However, what remains to be seen is whether the movement can be sustained

Questions 1. According to you, what are the marketing communication objectives, strategy and tactics of the JLB movement?

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2. Given that communication regarding the JLB originates from several sources and is largely through low-control messages, do you think it is integrated in nature? 3. What marketing communication tools are used in the JLB campaign and what are their individual objectives? Which tool plays the biggest part in garnering popular support? How do you think it is integrated with the other tools? Facebook can help achieve IAC’s objectives? Is the social revolution helpful in getting the Bill passed or is it merely an armchair revolution? Also evaluate how ‘engagement’ is created on the social media. 5. Do an Internet research regarding the current state of the movement and evaluate whether it is achieving its marketing objectives or not.

Annexure 1.1 INDIA AGAINST CORRUPTION MOVEMENT – CODE OF CONDUCT64 1. The movement is completely NONVIOLENT & PEACEFUL. 2. It is INCLUSIVE & NON-DISCRIMINATORY. Encouraging every community regardless of religion, caste, language, region, culture, sex, age, profession, economic strata, etc. to be part of the movement and be treated equally. 3. The movement is completely SECULAR. Communalism is more dangerous than corruption. Also, the problems of this country cannot be solved without people from all faiths and religions coming together. realising a strong Jan Lokpal Act for the country without expecting money, name, fame, recognition, etc. for oneself. 5. India Against Corruption is not a Sangathan or an NGO or any institution. It is a people’s seeking a better future. Therefore, the movement cannot have any branches. Rather than an

with a burning desire to do something for the country. No person is a representative of Anna Hazare or in any other position. 6. FRATERNITY & UNITY. People should work with a feeling of brotherhood and avoid stay united if we have to win over them.

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Annexure 1.2 IAC GUIDES CITIZENS IN ORGANIZING PUBLIC MEETINGS65 If you can organize a public consultation on Jan Lokpal in your area, do let us know!

B. Write to us at [email protected] or call us at 9718500606 and we will send the DVD through post. material or by calling us at 9718500606.

unable to answer, request the person to call us. Get feedback forms. Click here to download if possible at our email. We will upload the same on the Facebook page.

Annexure 1.3 HISTORY OF ADVERTISING IN INDIA Primitive history of advertising can be dated to the beginning of civilization with word-of-mouth advertising by hawkers announcing their articles for sale, merchants roaming from town to town spreading awareness of exotic goods, artists glorifying rulers in frescos, messengers proclaiming

printing, advertising grew to include handbills as well. Advertising as we know today, began in the Bengal Gazette and published only weekly. Initially, advertisements were imported from studios in England. But later, indigenous ad development commenced in India with the establishment of local newspaper studios.

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major clientele for these studios. Retailers advertised their latest imported merchandise in the form of lists. The success of this advertising format led to the growth of mail-order advertising in which retailers published thick catalogues of their products, also carrying promotional offers and information. Advertising progress was gradual till the twentieth century when B. Dattaram & Co. set up in 1905. Today it remains the oldest functioning Indian agency. Subsequently, the 1900s saw the setting of more agencies, both national and foreign. Many agencies were set up to exclusively service large multinational clients like General Motors, Levers or certain American advertisers. While so far advertising agencies were not full-service agencies with some of them being just brokers for advertising

more organized and the forming of media syndicates. With India becoming a noteworthy market for

had member-representations from media organizations, marketing companies, advertising agencies and associated professional bodies. The 1960s saw an upsurge of creativity inspired by a transformation of advertising at the international promoted the concept of “positioning” or “Unique Selling Proposition.” In India, ITC made records with its 1963 slogan “Made for Each Other” for Wills cigarettes. Even today, the evergreen tagline Tandurusti ki raksha campaign of Lifebuoy, still remains India’s most successful. In 1967, Amul hit the jackpot with its hoarding campaign featuring the polka-dot-skirted moppet that entertained viewers

Bharti. The 1970s got a further boost with the availability of initial advertising research. For example, data on consumers’ reading habits was made available through National Readership Studies. Further, new beginning was made. However, the decade that truly revolutionized the Indian advertising scene was that of the 1980s. Coinciding with the Asiad games of 1982, Doordarshan, the State owned commercial. In 1983, celebrity endorsement by sports stars got a shot in the arm with the featuring of Kapil Dev admitting, “Palmolive da jawab nahin!” Then in 1985 the Liril ad portraying Karen Lunel skipping under a waterfall in a lime green bikini, made history. Ads of Vimal sarees, Rasna soft drink concentrate, Onida television, ECE bulbs, Maggi noodles, Glucon-D, Pan Parag, Vicco Turmeric cream, Woodwards gripe water, Tata salt, Dabur Chyawanprash, Colgate toothpaste, etc. were also “Mile sur mera tumhara,” campaigns from family planning to literacy too got an inspiration. But the campaign that walked into the Indian hall of fame was that of “Apna Surf ” advocated by the hardheaded bargain-hunter Lalitaji. In addition to memorable ads, the popularity of Indian television itself saw a rise with the telecast

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of mega soap operas like Hum Log, Yeh Jo Hai Zindagi and Buniyaad. By the late 1980s, advertising was a growing industry. The 1990s were marked by media explosion – cable and satellite television grew, print media became niche and the Internet set foot in India. Entire corporations, which operated solely on advertising revenue, were set up. Agencies with virtual media divisions were set up and media planning received a huge stimulus. In addition, several events like the government opting for professional-quality private advertising, corporations going for identity makeover, emergence of software television producers seeking advertising talent, reappearance of the cinema, and the rising penetration of Internet, increased the importance of advertising in marketing. The ad fraternity too got greater encouragement as more awards like A&M awards, Abby awards, AdWorks Trophy, rd

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International Advertising Festival, Cannes. Today, advertising is once again on the crossroads. Innovations like guerilla marketing are underway, which include interactive advertising where the viewer can interact with the advertiser and respond to messages, staged encounters of products in public places, narrowcast of ads on Direct-to-Home television screens, transmission of messages on the small screens of handheld devices, and more. While its form may change, advertising is here to stay.

Endnotes 1. www.incredibleindia.org; G. S. Dhar, “India’s tourism rides high,” Dec. 10, 2003, www.pib.nic.in; www. ogilvyindia.com; “Tourism ministry sells ‘Incredible India’ with generous dose of spirituality,” Oct. 28, 2003, www.indiantelevision.com for Grey,” November 15, 2006, www.agencyfaqs.com; Rachit Vats, “‘Incredible India’ short-listed for www.agencyfaqs.com; “Incredible India’s global campaign assigned to Ashok Creatives,” September 22, 2006, www.agencyfaqs.com its way to Times Square,” February 15, 2006, www.agencyfaqs.com; Dhaleta Surender Kumar, “Open House,” The Brand Reporter, January, 2008 2. Dhaleta Surender Kumar, “Open House,” The Brand Reporter, January, 2008 3. Ministry of Tourism www.agencyfaqs.com Marketing News, March 1, 1985, p. 1. Business Standard, June 20, 2011 Indiantelevision.com, Oct 30, 2010 The Financial Express, May 26, 2010 “Channel Reach,” TAM Media Research, Period 16th March – 15th April 2007, www.scatmag.com www.e2necc.com “A white paper by Kidstuff Promos & Events,” Brand Equity, October 11, 2006 Preeta H. Vyas, “Measuring consumer preferences for sales promotion schemes through conjoint design in FMCG sector,” Indian Institute of Management, Ahmedabad, Sep 8 2005, www.iimahd.ernet.in, pp. 7 13. “Coke, Pepsi contain cocktail of pesticide residues, claims CSE,” www.domain-b.com, Aug 6, 2003; P. T. Jyothi Datta, “Coke admits pesticide drag on India Q3 performance,” The Hindu Business Line, Oct 16, 2003, New Delhi afaqs.com; “Cutting edge ideas,” Pitch, January 2011, pp. 51 6. 7. 8. 9. 10. 11. 12.

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15. Pitch, February 2011, pp. 93 16. Review 2005, Pitch, January 2006, pp. 28–29 17. Pitch, February 2011, pp. 93 18. “World Cup to boost adspend growth in 2006 Internet to sustain momentum to 2008,” Press Release, Advertising Expenditure Forecasts, April 2006, Zenith Optimedia, www.zenithoptimedia.com 19. “Worldwide Internet Advertising Spending to Surpass $106 Billion in 2011,” June 25, 2008, www. marketingcharts.com 20. Pitch, February 2011, pp. 93 21 can ride on this?,” The Economic Times, Dec 15, 2011 22. Review 2005, Pitch, January 2006, pp. 28-29 23. www.agencyfaqs.com Marketing News, January 18, 1993, p. 17. 25.

),” Jerry G. Kliatchko, Ph. D., 26. George E. Belch & Michael E. Belch, Advertising and Promotion: An Integrated Marketing Communications Perspective, 6th ed. (TMH ed, New Delhi, 2003), p. 9 27. Hammer and Champy, Reengineering the Corporation, 28. 28. “Do your ads need a super agency?” Fortune, April 27, 1991, pp. 81–85; Faye Rice, “A cure for what ails advertising?” Fortune, Dec 16, 1991, pp. 119–22 29. www.itsma.com 30. John Burnett & Sandra Moriarty, Introduction to Marketing Communications: An Integrated Approach, (Prentice Hall, NJ, 1998), pp. 5 31. Tom Duncan and Sandra Moriarty, Stakeholder Relationships, McGraw-Hill, New York, 1997 32. “Beyond Integrated Marketing,” Bergen, John D. 5; p. 62 (1 page) 33. www.tatasteel.com “Performance auditing of integrated marketing communication (IMC) actions and outcomes,” Mike Reid, 35. “Creating markets,” www.hll.com 36. Harvard Business Review, Sept–Oct, 1990, pp 105–11 37. N. Shatrujeet and Ravi Balakrishnan, “Will rebundling work?,” Brand Equity, January 16, 2008 38. “Tom and Jerry celebrating 70 years of fun,” www.afaqs.com 39. “Interview of Arvind Mediratta, Head-Marketing, Marico Industries Ltd,” BrandSpeak, April 17, 2003, www.domain-b.com “Godrej No.1 Jaisa Koi Nahin,” Mudra Works, www.mudra.com, Feb 10, 2006 “Performance auditing of integrated marketing communication (IMC) actions and outcomes,” Mike Reid, www.indiaagainstcorruption.org The Times of India, April 7, 2011 www.indiaagainstcorruption.org

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50. 51. 52. 53.

The Times of India, April 7, 2011 www.wikipedia.org Divya Dugar, “Anna merchandise sparks buying frenzy,” August 31, 2011, www.cnngo.com Khan, “Brand Anna catches on with youth,” Mid-Day, Pune, August 22, 2011 “Anna Hazare – brand of the season,” Aug 27, 2011, www.bemoneyaware.com www.indiacolumns.com www.mslgroupasia.com www.wikipedia.org

superstar Shahrukh Khan in Google search results,” The Economic Times, Aug 22, 2011 55. Prasad Kulkarni, “Support Hazare? Give a missed call OR 6.6L missed calls recorded to support Hazare,” The Times of India, April 7, 2011; www.indiaagainstcorruption.org 56. “Anna Hazare – brand of the season,” Aug 27, 2011, www.bemoneyaware.com 57. “Massive popular support to Anna – Two crore hits and still counting,” August 25, 2011, www. telugudesam.org 58. www.hacktik.com 59. Arun Prabhudesai, “Play The Anna Hazare Game, get Jan Lokpal Bill,” August 20, 2011, www.trak.in 60. www.mslgroupasia.com; Shephali Bhatt, “Report on JLB www. campaignindia.in 61. Ishaan Tharoor, “The Top 10 Everything of 2011,” Dec 7, 2011, www.time.com 62. www.ndtv.com 63. com www.indiaagainstcorruption.org 65. www.indiaagainstcorruption.org 66. www.magindia.com

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IMC as an Integral Part of Marketing Chapter Objectives After reading this chapter, you will be able to: Understand the various components of a marketing strategy, their impact on communications, and vice versa

In Perspective

and their impact on communication Learn how markets can be segmented and targeted, and how differentiation and positioning can be created for a product Comprehend some of the marketing mix decisions related to product, price and distribution and study how they are intertwined with promotional decisions

Archies Captures Emotions through its Integrated Marketing Strategies1

Born in 1979 as a mail-order store selling posters and songbooks, today Archies is the market leader in the social expression industry in the country. The pioneer of the category, Archies is a well-known retail brand that deals in the business of emotions, selling gifts and greeting cards for every occasion. Through its novel ideas and products, it has brought about a paradigm shift in the way Indians greet and gift each other. Initially targeted at teens and youngsters in their early 20s, today Archies has become a family brand and a generic in its category, with the core audience comprising of teens to people in their late 1930s. Archies category, which was virtually non-existent or served solely by unorganized players. It an upbeat ambience, and an array of cards and gifts for all occasions. It currently has 85 company-owned stores and plans to take this number to 230 by March 2010. It is also

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cashing in on the new retail revolution sweeping the country. The company has bought prime retail space in most new malls and hi-streets coming up in the country for opening large format stores displaying its wide range of products and for maintaining a consistent feel of the brand across the country. It has also launched a new store brand Stupid Cupid for fashion accessories and premium gifts. Archies customer feedback. Additionally, its in-store research helps it to understand consumer Archies also promotes and sells its products through its consumer website Archiesonline. com. In its nascent years, Archies restricted to mail order advertising. However, since the ‘90s, the brand has evolved with the times and has successfully used mass media to strengthen its association with feelings, sentiments and emotions. The Archies Best of Both Worlds radio programme that ran on FM for two years, was one of the most popular song dedication programmes of its times. A Dil Se promotion campaign that focused on the friendship theme achieved top-of-the-mind recall among its target audience. Further, movie merchandising and association with blockbuster Bollywood and Hollywood movies like Hum Aap ke Hain Kaun, Devdas, Speed, etc. made the brand a happening property amongst the youth. Archies’ promotion is largely seasonal, with major spurts during festivals and occasions. Archies Archies supports celebrating the birth of the girl child. Figure 2.1a-b shows its print advertisements encouraging celebrating human emotions with an Archies . Archies’ extensive market penetration and wide presence in traditional marketplaces, hi-streets and malls has led to high brand recall. Its continued product innovation helps it to come up with a variety of products that support its brand proposition, and appeal to pockets of all sizes. It has been adding new greeting card designs and gifts in its portfolio every year. Lately, it is focusing on exclusive gifting concepts for corporate gifting. It has also tied up with many international companies to source gifts, such as with American Greetings for paper products and stationery, Russberrie for soft toys, etc. Thus, by ushering an extensive greeting and gifting revolution, the brand has inculcated a habit of sharing emotions among Indians, and in the process, associated itself with every possible occasion and feeling.

The opening vignette throws light on the integrated marketing strategies adopted by Archies to develop and promote its brand. A highly differentiated brand experience created through a unique retail environment, novel products, and offbeat promotion (which is often word-of-mouth owing to its socially active target audience), give Archies its competitive edge. The company maintains its leadership position through constant product innovation, consumer research, increased reach, and reinforces top-of-the-mind recall among consumers. This chapter introduces us to the prominent marketing strategies and marketing mix decisions that a marketer needs to integrate for a consistent brand image.

Chapter 2 FIGURE 2.1 (a)

IMC as an Integral Part of Marketing

Ads strengthening brand association through the use of emotions.

FIGURE 2.1 (b)

Courtesy: Superbrands, Volume I, 2004. Reproduced with permission.

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2.1 THE MARKETING STRATEGY We discussed in the previous chapter that a marketing strategy evaluates the various ways and options for achieving marketing objectives and selects the right way to accomplish those objectives. In this chapter, we’ll look at the strategic tools of the marketing mix – product, price, place and promotions, – understand how the former three affect promotions, and in turn get affected by it. We’ve established that for the success of a communications programme, not only all communication elements should be integrated, but also the marketing strategies should be aligned towards the same goal. Only if all the elements speak with one voice, can the marketing objectives be realized with maximum impact. We begin by analyzing the various components of a marketing strategy and their impact on communications.

2.1.1 Competitive Strategies devises its marketing strategies. Competitors are companies that satisfy the same or similar consumer includes direct brand competition but also indirect competition such as product substitutes. For instance, movie theatres do not just compete with other theatres, but with all entertainment options in general, which include amusement parks, museums and science exhibitions, video game parlours, discotheques, restaurants, cultural performances, art exhibitions, and even parties and social events! That explains why theatres register low sales even on weekends during peak marriage season or Navratri festival. Quite often a company is more likely to be hurt by emerging competitors or new technologies than by current competitors. For example, pager manufacturers died at the hands of mobile phones, not at those of other pager companies, whereas VCR manufacturers received a bigger jolt from CD and DVD players than from direct competitors. At the broadest level of competition, everything boils down to competing for consumers’ time and money. A marketing manager should identify the right set of competitors it competes with and out on reacting to moves of those that may have an impact on its business. On the other hand, if and reacting to remote or uncontrollable competitors. Coca-Cola states that its ultimate goal is to compete with water, in other words, get consumers to prefer Coca-Cola rather than water at various use occasions. How realistic and achievable do you think this goal is? Once a company identifies its competition, it must identify its objectives, strengths and weaknesses, current strategies, etc. in order to frame its own competitive strategies. Most importantly, it must identify its area of competitive advantage. Competitive advantage is a company’s ability to perform in one or more ways that are superior to the competitors’ and difficult to copy or emulate. This advantage may spring from people, processes, products, etc. For example, distribution stronghold that gives greater reach, efficient manufacturing that drives costs lower, high quality that fetches premium price, a unique and patented product feature that customers value, impressive advertising that builds a strong brand image, superior customer service that increases customer loyalty, etc. can be various sources of competitive advantage for

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companies. In India, given the vast and diverse terrain of the country, an important source of competitive advantage for successful companies has been their intense distribution network that helps them to reach where competitors cannot.

CASE IN POINT Distribution Network can be a competitive advantage A major source of competitive advantage for Maruti is its intense network of service centres across the country. Maruti the centres with specialized tools and a service manual detailing the troubleshooting and repair process in a step-by-step manner. A distinguishing factor of these service industry. Nearly 1 out of 7 customers report that they receive their vehicles back within three hours. Thus, for the seventh consecutive year, Maruti Suzuki ranks highest in customer satisfaction with authorized dealership service, according to the despite competition, Maruti is still the No.1 passenger car company in India with Hyundai. 2 of about 7,000 redistribution stockists covering about one million retail outlets. Apart directly covers about 50,000 villages, reaching about 250 million consumers, through Project Shakti, HUL is able to deliver at rural doorsteps in partnership with Self Help Groups of rural women. HUL services each type of channel member with a tailor-made mix of services. It has also implemented an IT-empowered system to supply stocks to redistribution stockists on a continuous manner.3

The cigarette manufacturer ITC too has the highest market share because of its excellent distribution network that services almost everyday panwallas and wayside cigarette selling shops run by poor people who cannot afford to stock more. Similarly, Apple’s competitive advantage lies in its design, Maggi’s in its taste, Lux’s in its glamourous ‘celebrity’ image, and BSNL’s in its extensive remote area network coverage. Can you think of brands for which advertising has been a source copy?

discover and promote new product uses, encourage more product usage, offer price discounts, innovative products, improved services, intensify its advertising campaign, etc. At the time of reactions.

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Pureit entered the market in 2008, it challenged the likes of Aquaguard and Kent with product innovation and competitive pricing, which helped and that it could get rid of one crore viruses at a lesser price, thanks to its longer lasting battery. It even threw in a Rs. one crore safety challenge, promising to offer the money Pureit’s safety criteria. The challenge is still unclaimed, and within two years of its national launch, Pureit claims to be used by more than 1.5 crore people. Above all, this strategy has gotten consumers to try and buy the brand, the new-entrant Pureit’s primary goal.

Taking note of competitors has become even more relevant in marketing because of increased competition due to globalization and privatization on the one hand, and relaxation of regulatory controls on competition on the other. In India, competition laws have become relatively lax after the abolishing of the Monopolies and Restrictive Trade Practices Act, thereby encouraging healthy market-driven competition.

2.1.2 Market Segmentation, Targeting and Positioning 2.1.2.1 Segmenting the Market In a large product market, consumers are quite diverse in their needs and buying requirements. A company cannot serve all consumers in such a market or develop marketing strategies for them all. Segmentation divides a large market into smaller and more manageable submarkets in order to identify homogeneous markets (consumer groups) that (a) are similar in their needs and reactions to a company’s marketing activities, and (b) are considerably different from other such groups in the market. A market segment is thus a group of consumers in a market who have similar needs. For example, not everybody who buys a car has the same needs and wants. Some consumers want small and economical cars that are city slickers, others want mid-size cars that can seat larger families, still others want small utility vehicles that can transport goods, top company executives want luxurious sports enthusiasts want cars that can reach top speeds in races. Even within these broad need segments, people can have different fuel and mileage requirements, different design and feature preferences, etc. Clearly, a single car cannot have all the elements to satisfy the needs and wants of all consumer segments. Hence, a manufacturer needs to identify various broad market segments that have similar needs and wants, and then pick the segments for which it would develop tailored products and marketing strategies. For example, The Incredible India campaigns have strategically tailored their messages according to different markets. For instance, in Berlin in March 2007, vivid images of a warm, sunny India were shown against the backdrop of the city’s wintry grey streets. The same campaign was also used in Scandinavia where there is no sunlight for months. On the contrary, in West Asia, the focus was on the monsoons as there is a lack of rainfall in that area.4 It is important to note that marketers cannot create segments; these segments pre-exist in a product market. Marketers only identify the existing segments and their varying requirements, and decide which ones to ‘target’.

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The converse of segment marketing is mass marketing, which is the practice of selling the same product with the same marketing actions to all consumers in a market. It is a standardization strategy that saves the company money and makes coordination easy, but products, price, communication or reduces the waste in trying to cater to the entire market and gives the company a better understanding of the competitive, socio-cultural, and general environment of that segment.

CASE IN POINT Segmentation Rules! Many multinational companies entered India attracted by its mass middleclass, not realizing that this mass had many cultural and socioeconomic idiosyncrasies, and

would be interested in the product. The top of the middleclass could afford a maid and

households, the housewife would be doing the cleaning and hence would care for a and lifestyle characteristics.5

went through its lowest phase in its 200-year history. Yet again, in a couple of years, it went into renaissance with the emergence of a new super-premium segment, where it returned as a fashion product as compared to the comfort platform that it donned earlier. or retro jeans, denim was able to revive itself. Brands like Gucci at over US$ 3,000 or Levi Strauss business. Segment marketing with tailored strategies thus saved a dying mass-marketed product.

In order to check the meaningfulness and effectiveness of segmentation, segments should be evaluated against various criteria. Firstly, segments should be measurable so that marketers can estimate their purchasing power, audience size, etc. Secondly, segments should be of a substantial size and be profitable enough to serve. For example, hairdryers, computer mouse, cameras or scissors for the left-handed may not be very profitable. Thirdly, segments should be physically (or virtually in case of e-products) accessible for serving. For example, people in some of the Northeast mountainous regions of India have no media access, and hence cannot be reached with a tailored communications programme. Many a time, there are no developed distribution networks either. Fourthly, all the segments of a product market should be differentiable with different needs and responses to marketing activities. For example, if men and women buy paintbrushes in the same manner, they do not form separate segments. Lastly, segments should be actionable, i.e., it should be possible for marketers to develop different products or use different marketing strategies for them.

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The question that follows next is, ‘how can markets be segmented’ or ‘how can segments be discovered?’ Most markets are segmented by looking at the characteristics of its consumers. To segment consumer markets, consumers are characterized on 4 primary bases — demographic, geographic, psychographic or behavioural characteristics of consumers. Industrial markets are segmented by the type of industry, company size, product end use, purchasing method, size of purchase, buyer characteristics, etc. Table 2.1 enumerates the different variables commonly used for segmentation. A similar exercise can be done for various characteristics of business markets. TABLE 2.1

Major Bases for Consumer Market Segmentation7

Geographic Region

Northeast, South Central, etc.

City size

Under 10,000, 10,000–19,999, 20,000–39,999, etc.

Density

Rural, suburban, urban

Climate

Mountainous, coastal, etc.

Demographic Age

Under 6 yrs, 6-11 yrs, 12-19 yrs, etc.

Gender

Male, female

Income

Under Rs. 12,000, 12,000–60,000, 60,000–100,000, etc.

Occupation

Professional, businessman, government employee, student, housewife, etc.

Family size

1, 2, 3-4, 5+

Family life cycle

Young, single; young, married, no children; young, married, youngest child under 6; young, married, youngest child 6 or older; older, married, with children; older, married, no children under 18; older, single; other

Education

Primary or less, some high school, high school graduate, some college, college graduate, postgraduate, doctorate

Religion

Hindu, Muslim, Christian, etc.

Nationality

Indian, British, German, Japanese, etc.

Marital status

Unmarried, married, separated/divorced, widowed

Psychographic Lifestyle

Health-oriented, culture-oriented, busy professional, active outdoorenthusiast, etc.

Personality

Ambitious, introverted, extroverted, social, studious, etc.

Values (VALS)

Actualizers, fulfillers, achievers, experiencers, believers, strivers, makers, strugglers

Behavioural Purchase/Use occasions

Regular, special

Benefits

Speed, service, economy, quality, warranty, etc.

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User status

Non-user, ex-user, potential user, first-timer, regular user

Usage rate

Light user, medium user, heavy user

Product knowledge

Unaware, aware, informed, interested, desirous, intending to purchase, purchaser, rejecter

Loyalty status

Hard-core loyal, split loyal, shifting loyal, switcher

Attitude towards product

Enthusiastic, positive, indifferent, negative, hostile

Extent of involvement

Minimum effort, comparison, special effort

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∑ Geographic segmentation: different regions exhibiting different needs, buying patterns, reactions to marketing strategies, etc. Many marketers have discovered that the Indian market is different from its global counterparts and hence have extensively “Indianized” their products, as illustrated by the Case in Point below.

CASE IN POINT Brands Indianize for the local market McDonald’s in India has segregated its vegetarian and non-vegetarian kitchens. Additionally, it has created products with a local

FIGURE 2.2 (a)

McDonald’s Indianizes itself through communication.

are localized to suit the Indian palette. It also discontinued mutton products after it realized that Indians did not prefer consuming mutton out of home. McDonald’s pricing is also designed to appeal to the large mass of Indian middle class. Introduction of the Rs. 7 Soft Serve Cone and the pullers.8 Its communication also has a distinct Indian appeal with an emphasis on attracting families, promoting attractively priced items, and celebrating Indian festivities (Figures 2.2a-b). It even introduced a new logo as part of celebrating 10 years of the company in India. The new logo had the well-known double arch stylized as a marigold garland with the Indian flag at the top, symbolizing the spirit of Indianization. This logo was around for a year. When Nokia introduced Nokia 1100 phone,

Bodycopy: Happy Holi

Courtesy: McDonald’s, Mudra. Reproduced with permission.

resistant cover, and of course the price. Contrary to western washing machines, Electrolux offers a cold-wash-only washing machine in Asian countries where electric power is expensive or scarce. And Pepsi has adapted its television commercials to

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relate to the American singer Michael Jackson. FIGURE 2.2 (b)

As we see a Bengali couple on screen, the VO plays: “Aaj kal bees rupaiye mein milta kya hai beta?”

The bedridden husband tells his wife, “Jee machal raha hai!” As the wife offers some “jal” to her...

...ailing husband, he on the other hand asks “Gangajal”. The doctor comes, checks the man...

...and leaves. VO: “Kyon bees rupaiye mein full dhamaal chahiye?” On an affirmative reply, they...

...are suggested to go to McDonald’s. As we see the couple now in McDonald’s, the VO continues, “toh McDonald’s ka...

...happy price menu try karo. Chicken McGrill! Paisa vasool!” The ad ends on the husband declaring, “I am loving it!”

Courtesy: McDonald’s, Mudra. Reproduced with permission.

∑ Demographic segmentation: This is the most commonly used segmentation in which the market is divided on the basis of population characteristics as listed in Table 2.1.

Hero Honda introduced its maiden scooter Hero Honda Pleasure option makes it a comfortable ride for women; even the colour palette is customized insight that women are dependent on the male family member for moving around, which 9

Similarly, in late 2010, Hero Honda repositioned its bike Splendor NXG to target them. A new campaign called Yaari ki gaadi was launched to shift Splendor NXG’s

and symbolize relationships, such as old friendships. Ads for the brand were based on additional psychographic insights that young men in the 21 to 24 year age group

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building their own identity, and by virtue of their life stage, closer to their friends than their parents. Hence, Hero Honda’s focus more on personal relationships. The television commercial for the bike depicted the story of three close friends, who part ways as children to pursue their own ambitions children and riding their Hero Honda Splendor bikes on the same streets as adults.10

∑ Psychographic segmentation: to their attitudes, aspirations, values, lifestyle, personality traits, interests, and such other psychographic characteristics. Among these, lifestyle and values are the most frequently used with extensive research done to group consumers by these characteristics. Segmentation by lifestyles is usually based on the activities, interests and opinions (AIOs) of consumers. Psychographic segmentation has become easy to use with the values and lifestyles (VALS) model developed by the US-based SRI International. VALS 2 segments American consumers into 8 categories on the basis of their personality and motivations. The model is based on the assumption that people with same demographics can have different motivations and personalities, which will drive their purchases. For example, out of 2 consumers of the same age, sex and education, one may be an ‘innovator’, viz. an active consumer whose purchases helps marketers analyze important behaviours like product purchase, usage patterns, trial, early adoption, etc. and segment consumers based on their motivations, decision-making style, communication style, media and channel use, consumption-based lifestyle, etc. VALS decisions pertaining to product and advertising strategy like targeting, brand positioning, identifying new market opportunities, etc. A VALS model exclusive for the Indian market is under development by SRI in collaboration with CyberMedia Research.11

CASE IN POINT Brands Segment Psychographically The lifestyle brand Levi’s segments its market by lifestyle groups, and not just demographics. Levi’s

who lives a rugged lifestyle; is intense, inward and passionately pursues what he believes

British rock band Pink Floyd, as a close second to any religious literature. Levi’s offers him the Levi’s 501 Jeans timeless and appeals to each new generation of youth belonging to this sub-culture. and partying, is up with the trends, knowledgeable about the latest lifestyle happenings, an opinion-leader of sorts, in control of life, and not shy of expressing emotions in public.

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Levi’s offers to this sub-culture the Levi’s Red Loop that showcases real-time international and a sports buff. Levi’s presents to him/her Levi’s Engineered Jeans and Levi’s Sykes, which specialize in non-denim street-wear solutions.12 For its premium mid-size car Ikon, designed especially for India, Ford also used psychographic and lifestyle segmentation to segment the upper-middle and higher-class segments of the chosen customer groups. In car clinics organized by Ford, consumers had opined that Ikon was a sprightly and attractive car. Based on these insights, Ford selected for Ikon aggressive lifestyle. It then designed its communication around the enthusiasm theme. The car was called The Josh machine with Josh meaning passion in Urdu. The campaign was successful since it matched with the emotions of the target market and instead of promoting the car on the basis of its features, it innovatively focused on the lifestyle and aspirations of its user group.13

When segmentation is based on consumer personalities, marketers try to endow their products with a brand personality that matches the actual or desired personality of their target consumers. For example, a brand may appear ‘sincere’ (BBC, Aqua Guard), ‘sophisticated’ (Chevrolet Optra, Longines), ‘exciting’ (MTV, Radio Mirchi), ‘competent’ (Whirlpool, Ariel) or ‘rugged’ (Ruff-’n-Tuff, Thums Up). ∑ Behavioural segmentation: Consumers are divided on the basis of various behavioural characteristics as mentioned in Table 2.1. For example, the Indian hair colour market can be divided into 2 distinct behavioural segments based on use occasion – the professional colouring service offered by salons and the at-home colouring segment. L’Oreal Professionnel, Schwarzkopf and Wella are products directed at the former segment whereas ColorStay and Laboratoires Garnier products target the latter segment. Similarly, many retail outlets distinguish between their heavy and light users based on the membership card data. Heavy users are usually 20 per cent of the consumers who account for about 80 per cent of the sales volume. Marketers often direct preferential promotional strategies to this segment, such as, disbursement of movie tickets to preferential customers, invitation to an exclusive opening prior to a sale event, higher rewards on points used, more frequent direct mail reminders, etc. Continuity programmes are an excellent way of rewarding heavy users. Many watch, jewellery, gift card, around Valentine’s Day, they come up with special designs and promotional offers for giftbuyers and lovebirds. ∑ seek from the same product. For example, while air conditioners are primarily bought for

halt, business visit, clandestine deals, or economy.

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∑ Hybrid segmentation: Instead of considering only one set of segmentation variables, marketers may combine one or two segmentation styles and arrive at a hybrid segmentation class. Table 2.2 depicts an example. TABLE 2.2

Hybrid Segmentation Variables for Deodorants

Segments

Demographic Primary benefit traits sought

Psychographics

Behavioural characteristics

Brands favoured

Bold teenage girls

Teenage girls, economy segment

Fragrance, freshness

Carefree, rebellious, bold

Regular users but not too loyal; try new variants all the while

Elle 18

Feminine women

Women, 25+

Fragrance, freshness

Feminine

Regular, medium users

Ponds

Unisex appeal

Men and women, value-formoney segment

24-hour protection from body odour

Sociable, active

Regular, medium users

Rexona

Fragrance that seduces the fairer sex

Cultish, with a goget-it attitude

Regular, loyal, medium to heavy users

Axe

premium segment Middle-aged men

Long-lasting fragrance

Modern, masculine, casual, sophisticated, sensitive

Regular, loyal, medium to heavy users

Denim

Cultish young men Middle-aged masculine men

The segmentation process considers these various bases, either singly or in combination. Marketers may then carry out a number of alternative segmentation strategies and perform an in depth analysis the best strategies to market to the chosen segments. Taking segmentation one-step further is niche marketing, the process of sub-dividing segments targeted to gay audiences, vintage car enthusiasts, philatelists, bird watchers, etc. are increasing in . Although small in size, of segmentation can be seen in one-on-one marketing wherein products or marketing strategies are credit cards and even retail stores are among the early adopters of one-on-one marketing. For promotion of its Children’s Growth Bond, ICICI in reputed schools as the prime target audience. However, the challenge was in getting they would pay heed. For collecting the database, ICICI worked out an innovative strategy. It organized a painting competition of kids in prestigious colleges of Mumbai

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kids participated and submitted their entries along with their names, contact information ICICI then sent a personalized direct mail package to parents,

individualized touch, the campaign received more than 20 per cent response.14

2.1.2.2 Selecting a Target Market target segment, and 2) decide how many and which segments to target. The potential of each segment etc. and internal factors like a company’s marketing goals, resources, and strategies. go for undifferentiated or mass marketing wherein it offers the same product with the same marketing strategies to all the segments in the market by ignoring the differences among segments, such as paracetamol drugs, cola drinks, salt, LPG cylinders, etc. On the other hand, in differentiated marketing, different marketing strategies for selected segments. For example, HUL segments consumers into various groups and markets different deodorant brands like Denim, Rexona, Ponds, Elle 18 and Axe, concentrated marketing segment’s needs, specializes in its product offering and marketing strategies and thereby gains a large share of this segment. For example, for many years, Johnson & Johnson has concentrated only on the segment of babies and achieved the recognition of being a specialist in that area. For a long time, Blackberry had targeted the corporate world for its smart phone. However, recently it has successfully managed to step out of the black suit and boardroom image and become a mainstream choice. The brand is pursuing younger and fastest growing consumer base in India. Moreover, this segment loves to be socially connected, making Blackberry Messenger a handy tool to stay in touch with their friends across the world at no cost. To expand its reach, Blackberry has slashed the price of its entry-level model Blackberry Curve 8520, making a Blackberry handset available for the first time at a price below Rs. 10,000. After the popular Vodafone Blackberry Boys campaign, it has launched Airtel Blackberry Messenger BBM to communicate at night. However, this has come at the cost of diluting its premium image as the corporate world is already looking beyond Blackberry. Its shift in targeting in India.15

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2.1.2.3 Differentiating and Positioning the Offering Regardless of whether marketers follow a mass marketing or segmented approach, they must differentiate their product offerings from those of the competitors, otherwise consumers might just as well choose competitors’ products instead of theirs. The process of creating a meaningful and valuable difference in the minds of the consumers for a firm’s product compared to its competitors’ products is called differentiation. For instance, Saffola Arise differentiates itself as a healthier rice variant that is diabetic-friendly and has up to 20 per cent lower carbohydrates and calories. It targets people who avoid rice for fear of weight gain or getting sluggish. Products can be differentiated based on various parameters –product characteristics (form, features, size, colour, performance, durability, design, reliability, etc.), service characteristics (delivery mechanism, after sales services, maintenance and repair, ordering ease, etc.), personnel characteristics (competence and courtesy of sales people, credibility, communication skills, etc.), distribution characteristics (coverage area, availability, etc.), or image characteristics (media, message, symbolisms, credibility of communication, etc.). However, certain differentiation is more lasting than other. For example, differentiation across tangible aspects such as a product’s colour, durability, design, etc. can be relatively easily copied or improved upon. On the other hand, service or image differentiation is more enduring. For instance, competitors may be able to replicate the taste of Amul Butter, but matching its imagery prowess is another thing. Hence, marketers should build intangible and enduring differences that cannot be easily replicated by competitors. Advertising and branding play an important role in this aspect. Many marketers have discovered that with products attaining parity, communication and other intangibles are the only true differentiators. Horlicks Foodles, launched in 2009, has successfully established itself as a challenger brand to Maggi who shy away from noodles as being an unhealthy option, Foodles is positioned as Foodles’ target audience includes mothers seeking a healthier snacking option for their kids. The positioning and differentiation are well-timed Foodles has chosen to ride on the strength of Horlicks earlier avoiding noodles. On the product front, Foodles is strongly differentiated with its mix of healthy ingredients like ragi, rice, wheat and corn, which has even forced Maggi to come up with a multigrain variant. In addition, Foodles has nine essential vitamins To communicate its proposition in an engaging and clutter-breaking manner, Foodles gave birth to little scientist Bhaskar, who presents the balance of taste and science in Foodles. The scientist Bhaskar page on Facebook has already garnered over 30,000 fans, and has managed to create a buzz and brand recall through the campaign. Above all, in a short time, Foodles has captured a 3 per cent share of the market in the instant noodles category.

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of products and less importance attached to image-building, it is still possible to differentiate on the basis of service, personnel and distribution intangibles such as speed of delivery, reliability, repairs and maintenance, warranty, selling procedures, ordering ease, etc. After adding meaningful and valuable differentiation to its product offering, a company has to decide what product image to project to the consumers relative to the images projected by other competitors, in other words, decide on the positioning of the product. Positioning is the act of designing and projecting an image of the company’s offering such that the image occupies a distinctive place in the minds of the target market. Products that have a strong value proposition and meaningful differences from the competition hold a distinctive position in consumers’ minds. For example, Maggi is positioned as ‘a tasty, 2-minute snack,’ Nescafe is positioned as ‘a great-tasting coffee that gets you started-up’ (Start the day with Nescafe?), Lifebuoy is positioned as a ‘family hygiene soap,’ Dettol as a ‘germ-killing, anti-bacterial soap,’ Whirlpool as ‘an elite, women-oriented consumer-durables brand,’ Promise as ‘a toothpaste with clove-oil,’ Vicks Vaporub as ‘a rub for colds,’ Castrol as ‘a liquid service-agent for vehicles’ and not just oil, and so on. Positioning of competitive brands is often indicated through a positioning map, which indicates the relative placement of brands in consumers’

In 2000-2001, a brand diagnostics study conducted of Boro brands indicated the following positioning of the brands along the characteristics of grooming and protection (Figure 2.3). This mapping exercise indicated that while BoroSoft was clearly perceived as high on the cosmetic characteristic of grooming, its association with the functional characteristic of protection was low. This needed to be remedied as the category was largely functional,

FIGURE 2.3

Positioning of Boro brands.

communication strategy was to position BoroSoft

cosmetic imagery, which would provide a reason to buy. A television commercial (Figure 2.4) that ran in the winter months of November to February helped the brand achieve its objective.17

Chapter 2 FIGURE 2.4

IMC as an Integral Part of Marketing

Commercial establishes BoroSoft as a dry skin specialist. The Dry Skin Specialist-35 secs

Film opens to girl (main character) stating that her sister’s heart has been stolen by a heart specialist.

On being asked who will steal her heart, she goes into daydream mode to express her desire.

Before she can finish, a friend interrupts her, points to her dry skin & suggests that her ‘dream man’ would probably be a ‘dry skin specialist’

Product window: V/O: “Introducing ‘Glycerine Enriched’ BoroSoft that is ideal for skin dryness…

Courtesy: BoroSoft, Mudra. Reproduced with permission.

…resulting in soft & glowing skin.”

Friend who had earlier commented on her dry skin, notices and appreciates her beautiful complexion.

Friend introduces her brother to the BoroSoft girl. Girl, tongue-in-cheek, enquires whether her brother is a specialist.

Packshot.

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Positioning gurus Al Ries and Jack Trout note that, “Positioning is not what you do to the product. Positioning is what you do to the mind of the prospect.”18 A position is not created unless consumers perceive that image of the product. Most marketers advocate promoting only one central image or as to what the brand is really about. The real skill of the marketer therefore lies in summing up images – into one positioning idea. The question that arises next is, ‘How do you arrive at a particular positioning for a product?’ Following are some alternative positioning options. ∑ Nokia is positioned as ‘a leading, user-friendly cell-phone,’ KamaSutra condom brand is positioned as ‘a sexual pleasure enhancer’ with its tagline “For the pleasure of making love,” Odomos is positioned as ‘a mosquito repellant,’ and Baygon is positioned as ‘an instant insect-killer.’ ∑ Attribute positioning: The product can be positioned on the basis of a key attribute such as design, automatic operation, non-corrosive material, years of experience, number of awards, etc. For example, Figures 2.5a-b depict how Parle’s Monaco tries to position itself on the attribute of ‘lightness’ through the use of visual metaphors. FIGURE 2.5 (a) and (b)

Monaco tries to position on the attribute of ‘lightness’.

Courtesy: Parle, Everest. Reproduced with permission.

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∑ Use or application positioning: For example, at a time when MNCs dominated the rubs and balms market in India and were positioned as multipurpose products, Moov positioned itself as a backache reliever specialist for and that women were more prone to, and almost perpetually suffered from, lower backache.

life with the tagline ‘Kuch meetha ho jaye,’ Cadbury Dairy Milk used the occasion of

Cadbury strengthened its positioning through the ‘Pappu pass ho gaya’ ad campaign. The brand also tied up with Reliance Infocomm and gave results to students who Reliance. For all those who passed, the marks came with an accompanying message, ‘Pappu pass ho gaya’ and persuaded the students to have some meetha in terms of Cadbury Dairy Milk. This creative use of communication Cadbury’s positioning.19

∑ User positioning: The product can claim to be made for, or associate itself with, a particular user group. For example, Elle 18 cosmetics is the ‘teenage girls’’ brand, Johnson & Johnson is for ‘babies and mothers,’ Parker Boss pen is for ‘top corporate honchos,’ and Femina is for the ‘modern, educated urban woman.’ ∑ Quality or price positioning: The product claims to be offering the best value, either in terms of price or quality. For example, Nirma and Surf have battled it out in the detergent market based on their price and quality positioning respectively. Similarly, Parle biscuits achieve their large sales volume through their value-for-money positioning, whereas Sunfeast biscuits are positioned as a quality product offering variety and promising contentment and pleasure. ∑ Product class positioning: The product is represented as the leader in a certain product class or category that is different from its traditional product category. Instead of competing with individual brands, the product bypasses competition by positioning itself into another product category.

In order to bypass competitors, Castrol India Ltd., the market leader in the retail automotive lubricant segment, has relaunched the Castrol master brand with a range of Castrol expects that this new theme will position itself as an expert in the area of lubrication. the brand and build a more emotional connection with the consumers. The technology expertise of Castrol Castrol EDGE that manages the damaging effects of the engine environment, controlling dirt, neutralizing and tear. Similarly, Castrol CRB Plus Castrol Magnatec

CRB Turbo

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formula, and so on. In short, the entire product range is upgraded to incorporate the latest developments in engine and lubricant technology. Castrol feels that with its technological prowess that increases protection and boosts performance in vehicles, 20

∑ Competitor positioning: The product pitches itself against a named or apparent competitor and claims to be better in some way than the competitor. For example, Captain Cook positioned Tata Salt , whereas Savlon positioned itself as a no-burn, no-smell antiseptic compared to the stingy, smelly Dettol.

The table margarine brand Nutralite, has positioned itself against the butter category in general. Zydus Cadila Nutralite negligible, whereas that of butter was huge, dominated by Amul with a 90 per cent share. However, Nutralite has a distinct advantage over butter—it contains 0 per cent cholesterol, negligible transfat, low saturated fat and more vitamins, as opposed to of Nutralite, it was positioned as an upgrade to butter, rather than as a substitute. The their husbands from consuming butter in breakfast. Nutralite came to their rescue by allowing husbands to indulge. The advertisements clearly proclaimed that Nutralite (Figure 2.6) and explanations were given in the media as to how Nutralite scored over butter. The brand captured 10 per cent market share of the butter and margarine categories combined, and emanated reactions from competition that tried to disprove the claims through press statements and comparative advertising. The positioning was well established.21 FIGURE 2.6

Nutralite positions by pitching itself against butter.

Courtesy: Mudra. Reproduced with permission.

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∑ Image or personality positioning: The brand tries to associate itself with a strong image or personality. For example, Lux is best known for its ‘celebrity’ image, Thums Up for its ‘rugged, macho’ image, Axe deodorant for its ‘sensational, women-attracting’ image, etc. The above positioning options suggest that a single product may have the choice of multiple positioning strategies. The selection of these strategies depends on many factors – what image or attributes would customers value the most, what positioning do competitors follow, what are their strengths, where do the company’s greatest strengths lie, what resources are available, what positioning can be lucrative and sustainable, etc. When KamaSutra condoms were launched in the 1990s, condoms were synonymous with anti-pleasure, something that the government had been promoting as a prophylactic, family-planning tool. In order to break free from this image, KamaSutra positioned the condoms as pleasure-enhancing, sensuous products. While this unusual positioning worked out great for KamaSutra and easy one, and may include some subjective judgements.

Once a company has chosen a position, it should then communicate the positioning clearly through all elements of the marketing mix. Whether or not consumers come to accept the positioning in the same way as the company intended, largely depends on how well a company communicates it positioning, among other factors. Positioning is not static or one-time but can change or evolve over time for several reasons – change in customer preferences, emergence of new and stronger competitors, change in company’s objectives and resources, advent of new technology, etc. If a company’s chosen position does not remain relevant any longer, it can reposition Milkmaid, originally launched as a milk substitute, later went on to reposition itself as ‘a recipe enhancer’. It showed a variety of recipes in its ads, product booklets and on packaging to give ideas to consumers Intel changed its ‘Intel Inside’ logo and got a new logo and tagline, ‘Intel. Leap ahead.’ Intel. No longer did the company want to be seen as only a microprocessor manufacturer but wanted to signify its evolution to a market-driving platform solutions company whose areas of operation included the microprocessor, chipset and software in four different market segments of mobile, digital home, enterprise and health.22 However, repositioning a brand is not always easy because consumer perceptions are old one.

CASE IN POINT NEW WINE, NEW BOTTLE In the wake of rising competitive pressure from private banks and the public sector, the stodgy, nearly 100-year old Bank of Baroda

One of the repositioning measures was the change of logo that was too cluttered. The

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old blue and yellow logo is now replaced with a vibrant orange sun. The logo change

addition, the bank has re-oriented the organization totally. It has made intangible service elements tangible with 8-to-8 banking and nine 24-hour operations that are actually made presentations to 40,000 employees, instead of to union leaders alone, to create a culture of change. Employees are convinced and voted for the change, after which they have been trained to convey the message.23 For many years Dabur was perceived as an Ayurvedic medicine manufacturer by

the meaning of healthcare was undergoing a change. Hence, in the early 2000s, Dabur decided to go for an extensive image-change exercise and reposition itself as ‘a herbal and more contemporary. The company went for extensive organizational restructuring, divided its pharmaceutical business, brought in consultants like McKinsey and Accenture, and hired more professionals. A newer, more colourful and younger banyan tree logo trunk replacing the dark brown colour stands for a warm and energetic youthful brand. The company also introduced new product offerings and new contemporary packaging. While initially the Dabur mother brand was all pervasive with Chyawanprash leading the way, now the brand architecture was rehashed and smaller brands like Real, Hajmola, Anmol and Vatika were given due prominence with individual branding. The company also expanded to cover key international markets and pay more attention to the South Indian market where its image was weak. Additionally, with its new advertising push and brand ambassador Amitabh Bachchan, along with sports celebrities for certain products, Dabur went in for a complete makeover without losing its core essence of leadership and trust.

2.2 THE MARKETING MIX STRATEGIES Once a company analyzes its market and competition, selects and targets segments whose needs it wants to satisfy, differentiates its offering from competitors’, and arrives at a suitable positioning strategy, it is now ready to bring together the tools of its marketing mix and form an integrated the previous chapter, a company’s marketing mix mainly includes 4 elements, viz. product, price, place and promotion. Various decisions have to be taken regarding each of these mix areas. In the following

2.2.1 Product Decisions Marketing a product is the very reason why a company devises various strategies. Not to be mistaken as a physical good alone, a product is anything that can be offered to the market for satisfying needs and

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wants. A product can be a good (soap, shampoo), a service (banking, legal consultancy), an experience hacking conference), a person (Sachin Tendulkar, a job-seeker), a place (Kerala, Rajasthan)… or just about anything else. Most marketing programmes have goods and services as the main product elements. Goods are tangible products , whereas services are intangible products often produced and delivered by people. Usually, every product has both tangible and intangible characteristics. For example, the tangible aspect of the offering ‘watch’ is the watch itself whereas the intangibles are the repair service, and the guarantee or warrantee that one buys along with the watch. A good has more tangible elements whereas a service has more intangible elements. What do you think is the product of a restaurant—a good in the form of food and beverages, or a service that brings you food and beverages in a pleasing ambience? that satisfy consumers’ needs. Some tangible and intangible elements satisfy functional needs, whereas Levi’s jeans satisfy a teenager’s functional need of comfortable, long-lasting clothing, whereas the jeans’ styling, packaging in the form of the shopping environment, and the reputed Levi’s brand give the teenager the psychological satisfaction of wearing a “cool” and trendy jeans. Levi’s is not merely selling comfort or fashion; it is selling an image – something that consumers are willing to pay a premium designer clothes and ‘uplifting one’s social status’ is the key reason behind the splurging.” 24 This brings us to the concept of product symbolism – ‘the sum total of what a product or brand means Marketing Association. In fact, many consumers value the symbolic or psychological characteristics of a brand much more than its functional or tangible elements. How else do you think could celebrity Armani perfume if it came without the name and in a regular tin spray-jar? The honest answer is, “certainly not.” So how is it that products create such symbolism? The Case in Point below gives a clue.

CASE IN POINT Dior Symbolizes Fashion Dior, the French fashion house, has established its watch collection as a vital fashion Dior making expertise, combined with creative and innovative designs by top designers like seduction, femininity and creativity, which are aptly portrayed, in its bold, profuse and . Dior has also made a conscious attempt to not indigenize the product to India because it stands for Swiss watch making and wants to retain its image Apart from its creative and original product range, Dior status from its excellent product presentation and retail skills. Before the watch brand was

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launched in India, Dior set up a retail environment in terms of shops and point-of-sale personnel involved. It also set up its after-sales service before the launches to ensure that it could offer an integrated package to consumers. In addition, Dior has chosen as its brand ambassador, Yana Gupta, one of the best and most popular faces in the Indian Yana Gupta, with her known passion for fashion, turned to be the right envoy for Dior. To add exclusivity to the product, many product launches are thematic in nature based on appealing fashion themes. For example, the Dior Summer 2004 collection designed by John Galliano drew inspiration from the seductive and ravishing German Hollywood No wonder then that Christian Dior is the second most popular designer brand amongst Indians, followed by Gucci, according to a global online survey conducted by AC Nielsen.27

Hence, it is not just the design, features and quality of a product, but also other facts like the service accompaniments, warranties and guarantees, brand name and image, style, package design, etc. that are important in product planning. Consumers evaluate all these product-related elements and form perceptions about the product. The role of advertising and communications is to portray a product as more than just a bundle of tangible elements that lend themselves to direct comparison with competition. In fact, the real skill of marketing communicators lies in animating intangible features. tamarind, cinnamon, lime and lemon, aniseed, nutmeg, preservatives and acid. However, these and wellness. Communication focusing on messages like “energy boosting health drink,” “salts and vitamin replenisher,” “body cleanser,” “muscle toner,” etc. gives consumers the information that they are really concerned about and fascinated by. In recent times, as competition gets stiffer and the demand for customization stronger, marketers have started co-creating products with consumers. Communication plays an important role in this by inviting consumers to co-create, engaging them, generating a buzz and launching the co-created product with fanfare. For instance, in 2010, Frito Lays Lay’s chips. The

winner. The winner took home Rs. 50 lakh and 1 per cent of the sales turnover of the 28

2.2.1.1 Product Life Cycle (PLC) Stage Strategies Products do not live for time immemorial, and like people they also pass through different stages from birth to death. A product life cycle is divided into four stages although all products may not pass

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through all the stages. Each stage in a product’s life cycle presents the seller with different problems and opportunities. Marketing communication too needs to adapt as products transit from one stage ∑ Introduction: If products are category creators (e.g. iPod

very long if competitors can quickly plunge in with their versions. In this phase, marketing communication should aim to build product awareness and acceptance among end-consumers and trade channels. Usually, heavy mass advertising (or personal selling for certain product types) is used to generate mass awareness, and extensive sales promotions like sampling, introductory discounts, trade offers, etc. are used to stimulate consumer trial and counter trade resistance. The new entrant in the frozen dessert market, Cocoberry, is trying to create a space for healthy frozen yogurt in the lives of 12–35 year olds, especially female consumers. One of its main challenges is the lack of consumer awareness for frozen yogurt, although the Indian palate has become savvier and the younger consumer is ready to experiment with new products, especially low-calorie and low-fat options. Hence, in 2011 alone, Cocoberry degree approach. It plans to focus on both conventional and new media, particularly print and BTL campaigns. To connect with consumers on an emotional level as well as to get their feedback, it will be using social media extensively. In terms of promotions, it currently offers online loyalty cards, special discounts to consumers and free sampling at all its outlets. It is also looking at association with sports, such as golf and football, with Save the Children organisation.29

∑ Growth: In the growth phase, communication expense may increase marginally. The objective of advertising shifts from building awareness to persuading more consumers, garnering repeat attractive appeals. Sales promotion may be reduced to take advantage of heavy consumer demand. In India, the instant noodles category is growing at a rate of 20 per cent per annum owing to the changing lifestyle and food habits of younger generation. Although till now Maggi enjoys a market share of over 70 per cent, new brands, such as Horlicks Foodles, Sunfeast Yippee, Tasty Treat, Ching’s Secret, etc. have started entering the from Maggi; whereas earlier the communication focused on product delivery and positioned noodles as a convenience food, marketers are now focusing on consumer engagement and positioning on the platforms of meal replacement, health and taste.

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taken in the store. Some newer brands are exploring social media, gaming and mobile, whereas established brands like Maggi have upped their advertising spends.30

∑ Maturity: This is a stage when the product is close to reaching market potential and hence there is a slowdown in sales, or sales increase rate. The competition becomes very intense now. Advertising should thus stress brand differences and advantages, and serve as a reminder for the product. Sales promotion is increased as retailers are wooed by competitors for shelf important since most products are similar and sales are largely a function of what brand is stocked at the retail points. As products start attaining parity, communication becomes the prime differentiator.

The toothpaste brand Colgate has always been known for its endorsement by dentists. Taking this association further in the overcrowded toothpaste category, Colgate has recently launched a campaign that aims to increase consumer engagement on oral

dentist educates consumers about prevention of tooth decay and Colgate’s importance in protecting teeth. A toll-free number and the website askthedentist.co.in have been misconceptions about tooth decay. It is also an interesting way to remind about the brand and yet again strengthen its association with dental practitioners.31

∑ Decline: Most marketers discontinue communication or make it more sales promotional in resurrect dying products through feature, quality or design improvements, change of market, new communication strategy, etc., but more often than not, they have to begin the cycle with new product introductions.

Reliance Communication, and others like Tata Teleservices and BSNL TeleSystems (MTS) of lack of intense competition, MTS is forging new alliances and introducing new offers. Further, to inculcate a clearer brand perception, it has revamped its look and launched

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over one crore customers in a span of two years.32

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MTS has added

The Management Focus feature below talks about how Rin renewed its advertising at various stages of its life cycle.

MANAGEMENT FOCUS

Advertising at Various Stages of Rin’s Life Cycle33

Launched in a bar form, Rin the challenge in those introductory years was to distinguish Rin detergent bar from

mere functional advantages to building an emotional bond with Indians. While the the advertising tone became more emotional. Television commercials showed non-Rin users getting jealous by Rin whiteness and visuals of off-white clothes being crossed over by Rin whiteness. The catchline, “Bhala uski kameez meri kameez se zyada safed executions for almost 10 years. Rin remained the market leader for nearly 20 years with practically no competition till about 1987. Then, modeling on Rin’s success, many low-priced detergent bars were launched, most prominent among them being Nirma. To meet with this new challenge, Rin introduced Super Power Rin focusing not only on whiteness but also on the power and economy of the detergent. To strengthen the value proposition of Rin in the wake of competition, the brand emphasized 3-pronged superiority: greater whiteness, lesser Zara sa Rin” by the Rin In the mid-1990s, with the market stagnating a bit, and with powder concentrate brands attacking the detergent bars, Rin launched Rin Supreme bar and Rin Shakti powder. The former promised less sogginess and more whiteness whereas the latter was positioned as an aspirational brand that plugged the gap between premium and massRin resorted to comparative advertising that established Rin’s superiority by demonstrating onscreen that Rin Shakti could wash out dirt even from clothes washed with ordinary bars. It launched a commercial featuring ‘Rin Rin whiteness

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Competition remained intense through those years and Rin launched more variants of its product. A research conducted by HLL, the company behind the Rin brand, indicated that more than 25 per cent consumers rated detergents based on their ability to deliver whiteness. Another survey on habits and attitudes of consumers also revealed that maintaining whiteness of clothes was the second most important consumer problem. Thus, realizing the importance of whiteness to Indian housewives, HLL launched an improved version of Rin powder that gave double the whiteness.34 The path-breaking innovation did not contain any mud-like ingredients, unlike other detergents. Hence, it thoroughly dissolved in water and brought enhanced whiteness. Tide slashed its prices to half, Rin decided not to compete on the price platform and stayed put with the whiteness proposition. However, Tide Tide’s offensive, Rin decided to launch Rin Advance and establish that only Rin whiteness was true whiteness. To score a notch above Tide Amitabh Bachchan. A television commercial showed Amitabh as a school principal, Yeh naya rang kaunsa hai?,” thus harping on theme, a ‘Safedi ka Shahenshah’ promotion was also launched in May 2005. Also, a re-launch of the Rin Shakti powder revived and reinforced the brand mnemonic of the lightning. The communication strengthened the power of the mnemonic by alluding to it even in the audio and the tagline ‘Bijli giri!’ Recently, Rin has partnered with the television channel Star Plus and launched ‘Rin talented children to showcase their potential. Over the years, Rin has also won a number of accolades, the most recent being getting voted as the ‘Most Preferred Detergent Brand in India’ Questions 1. In this caselet, what different stages of Rin’s life cycle are depicted? In what stage of Rin currently placed? 2. What product and communication strategies has Rin 3. While advertisements of Rin detergent have changed in these 35 years, what central 4. What action has Rin 5. Check out the communication of Nirma and Tide through their launches and state how Rin has been different from them both.

2.2.1.2 Product Attributes Often product attributes like product quality, features and design can drive a marketing communications programme. Many companies have turned quality-related aspects like reliability, durability, accuracy, etc. into a potent marketing weapon. For example, the car battery manufacturer Amara Raja’s Unique Selling Proposition (USP) for Amaron batteries has been ‘zero maintenance, longer life batteries’ (Figure 2.7).

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the VRLA technology to the Indian battery market. The company has effectively communicated its higher quality with its unique communication campaign. Product features, such as the size, shape, weight, dimensions, colour, etc. can also be a competitive tool for differentiating a company’s offering from that of competitors. For example, the features of a mobile

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FIGURE 2.7

Amaron communicates about its product quality.

camera, integrated FM radio, Bluetooth, WiFi and email options, hands-free speaker, Multimedia Messaging Service, voice dial, swap game card (MMC) slot, etc. Unique features are often the focus of marketing communications programmes. Generally, features are communicators should analyze what features mean and communicate to customers, and should translate can understand. For example, the Bluetooth feature in a mobile means interoperability between the phone and other products supporting Bluetooth wireless technology, like the computer. Thus, a user can back up the phone’s contacts list on a computer. Or a swap game card (MMC) slot means the mobile user can play games on the phone that are not included in the mobile,

Headline: A battery that lasts so long, even its 3-year warranty lasts 6 years. Bodycopy: While a third anniversary might not amount to much for most people, for those of us who launched India’s first battery with a 36-month warranty, it marks the day we made good our promise. And what better way to celebrate the occasion than with an extended 36-month warranty to all those who bought an Amaron within 36 days of its launch (between Jan 5th, 2000 and Feb 9th, 2000)? So, drop in at any Amaron Pitstop with your warranty card and discover how long your Amaron can really last. Baseline: Lasts long. Really long.

boring waiting time a lot more fun. In addition to communicating the unique features of a product, another relation between product features and promotion can be found in deciding the Amara Raja, O&M. Reproduced with communication tool according to the complexity of Courtesy: permission. product features. For instance, industrial products with complex features are best promoted through personal selling or direct marketing. Personal selling may also be the right tool for services, large home appliances, etc. since their tangible as well as intangible features can be quite complex. For example, sales representatives of Eureka Forbes Aquaguard. They

the other hand, when product features are very simple to understand, as in the case of FMCG goods, marketers may add interest in communication with the help of stories, symbolisms, image advertising, etc. For example, a commercial of Lakme Peach Milk Moisturizer showed shots of rich cream being poured over a bowl of peaches and a couplet being recited in praise of a beautiful model shown in alternating shots. Only in the end the product shot of the moisturizer is shown to reveal the secret of the model’s beauty. Lakme communicated in a very indirect way that the moisturizer was made of peach and helped the skin become smooth and supple.

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Product design is another important product attribute that marketing communicators may decide to emphasize. Contrary to style, which simply describes the appearance of a product, design refers not only to a product’s ‘looks’ but also to its ‘functionality.’ Good design can attract attention, improve product performance, and above all, give the product a strong competitive advantage. For example, a racing car’s front and rear wings as well as the chassis are designed to generate downward pressure to keep it on the road and avoid somersaults at tremendously high speeds. Such a design also generates better cornering speeds. Racing car wings are designed to achieve the reverse of airfoils in planes. And the car is designed lightweight to give it greater acceleration with lesser force. For instance, a Formula One car may weigh just 600 kilograms, almost half the weight of a regular streetcar, a design feature that may be advantageously advertised. Crocs is unconventional, spunky and colourful, helping it stand out in the Indian footwear market. Crocs’ clogs feature innovative designs with functionality and comfort. Crocs Crocs claims to be an experiential brand catering to all age groups, and promotes its products accordingly. The brand made its debut at the Goa Fest 2008 to promote the range, and Crocs uses public relations to inform consumers about the product design by being present in relevant publications and electronic media. It launches various events to create an experiential platform, and has an online presence for communication as well as online purchase. The brand has a pan-India presence at more than 300 wholesale stores and 17 concept stores, where it regularly offers promotional incentives. The pricing is slightly up-end to emphasize marketing strategies, Crocs among the youth.

2.2.1.3 Packaging While traditionally a package is viewed as a container that holds and protects the product, it performs other functions too besides containing and protecting. For instance, it lends convenience and safety in handling products, and clubs them in certain assortments, which may also be the focus of a communication strategy. For example, the new Surf Excel Automatic packaging, a handy stand-up box with sachets inside, allows convenience and accuracy of dosage for using the detergent in a washing machine (Figure 1.7). McDowell’s launched its No.1 Celebration Rum, which was available in only glass bottles earlier, in 180 ml tetra pack to offer convenience to consumers at a lower price. once the pack is torn open it cannot be sealed again. Layers of aluminum and polythene

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protect the rum from light, dust and bacteria and help maintain the product in its original easy to open the pack by tearing along the perforation on the side, and pour with a pout. The pack is lower in price compared to any brand of 180 ml bottle in the regular rum segment, and is prominently promoted and displayed by the company.37 The company also has a McDowell’s Signature Rare Whisky Mobile Bar pack that is easy to carry and has space for the whisky bottle as well as a glass.

In India, the immense popularity of sachets and blister packs of FMCG products and medicines is owing to the convenience it gives consumers in buying products in small quantities and odd with safety-lids, recyclable soft drink bottles, microwaveable noodle packs, festival bundle packs of chocolates, gusseted grain pouches, detergent boxes with handles and measuring spoons, squeeze tubes of toothpastes, etc. are all examples of functionality in packaging that can be marketed. For example, Ranbaxy’s Sotret capsule won the prestigious ‘Indiastar’ award for its child resistant card pack. Besides serving these functional purposes, a package can also directly serve as a communications tool by delivering important selling messages at the point of purchase. A package can inform consumers (ingredient information on a bottle of Nile shampoo), attract attention (a bottle-shaped small sachet pack of Parachute Mini hair oil sold at a price of Re. 1), persuade consumers (environmentfriendly cereal box with make-your-own-mask perforation), demonstrate use (preparation directions on an instant food mix), describe the product (“popping candy that explodes in your mouth”), carry an offer (packs with bonus offer, attached coupons, free gifts inside, etc.), or communicate the corporate brand (all Himalaya products sport transparent bottles and an orange band, the distinctive usage of teal green caps and logo, and the brand name Himalaya placed identically across all product labels). Quite often, we make product judgements based on its package. The size, shape, colour and design of a packaging may very well determine whether or not it is bought by consumers. Hence, a lying on the retail shelf. In fact, a lot of consumer purchases are unplanned where innovative packaging can give a company competitive edge. On the other hand, packaging can also be a matter of concern for marketers since consumers are wary of packaging that harms environment, is not safe for kids, is wastefully over-done, etc. Remember that a package is not the same as packaging. When we speak of packaging, we refer to all the activities of conceptualizing, designing and producing the container for a product that may serve functional, informational and persuasive objectives. Packaging is so crucial in FMCG products that American marketers call these goods ‘packaged goods.’ Although we tend to think of good when we talk of packaging, a service product can also be “packaged” for presentation to a consumer.

The Orchid processes for solid waste management, energy and water conservation, etc. It packages itself consistently so by communicating about its ecotel status to consumers. It uses eco-friendly articles in rooms, with each room having a scenic view; delivers items in

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cloth bags instead of plastic bags; allows guests to participate in eco-friendly projects encouraging guests to reduce air-conditioning in their rooms; celebrates eco-days with eco talks, skits and programmes; etc.38

2.2.1.4 Branding A brand it as belonging to a particular marketer and differentiates it from other products. For example, HUL brands its lime soap as Liril to differentiate it from other soaps in general and lime soaps in particular. The brand Liril helps identify the soap as a product of HUL that promises lime freshness. However, a brand is not just a brand name comprising of words, letters or numbers. It may also include a brand mark, which can be in the form of a logo, design, symbol, character, picture, colour, sound, lettering style or anything else that distinguishes the product. Hence, the 2 yellow arches spelling the M of McDonald’s, the swoosh of Nike, the Maharaja of Air India, the popular ad jingle of Titan watches, the pink colour and the pug puppy of Hutch, the Amul butter moppet, or the distinctive Spencerian script of Coca-Cola are all examples of a brand mark. A brand Marks (CGPDTM) becomes a trademark. mark. At a higher level, it becomes the promise or assurance of a seller to deliver consistent quality buy a pack of salt with the brand name Tata, they are assured of a certain level of purity, whiteness and overall quality that the brand Tata delivers with each pack of salt. The activity of branding a product, i.e., investing a product with the desired attributes of a brand, is an important function for marketers. The branding strategy of a product comprises taking various decisions related to a brand like the selection of an appropriate brand name, determination of brand ownership, deciding on the number of products to be included under the brand, positioning the brand, and planning the supporting communication campaign. Branding strategy is important in determining the power, value and goodwill of a brand in the market, i.e., in creating and maintaining brand equity extent of loyalty of its customers, the premium the brand is able to charge for its products, the acceptance of the brand at trade levels, the strength of the image consumers have in their minds for the brand, etc. Brand equity can be measured by the additional sales a company is able to make and the premium it is able to charge on its price with the brand name than it could without it. The equity of a brand is a worthwhile intangible asset for a company. One important role of advertising and communications is in maintaining, reinforcing and increasing the brand equity. The following input illustrates how the jewellery brand Tanishq uses marketing and communication in building its brand.

MANAGEMENT FOCUS Tanishq

Tanishq Brands a Commodity39 Tatas, has successfully

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fragmented and unorganized commodity market in India dominated by family businesses. This status of an aspirational jewellery brand has been made possible by creating 2 main Tata parentage, the brand Tanishq is incontrovertible in an industry that is plagued by a number of unethical practices Tanishq has to measure the exact purity of gold jewellery, in an age when transactions were only governed by individual trust. In addition, Tanishq studio of India by award-winning jewellery designers. Experts from UK, Germany and Switzerland work for Tanishq to develop new collections for the ever-evolving Indian consumer. Tanishq than the former. For example, Aria is a line of diamond jewellery inspired by the traditional Collection-G is a range of everyday-wear 9-to-5 jewellery for the working woman, whereas Aarka, inspired by the energy of the sun, is a collection of fusion jewellery in gold. Tanishq reinforces its brand promise through various targeted marketing activities. The Tanishq provide a professional retail atmosphere and a differentiated shopping experience. The stores have a traditional ambience with and promise consumers Indian hospitality, privacy, leisurely browsing, transparent transactions, and professional after-sales services. The localized Tanishq outlets keep Golden Harvest Savings Scheme that enables customers to invest their money safely through monthly payments and buy jewellery at the end of the chosen redemption period. Such activities give Tanishq its edge over traditional family jewellers. Its advertising and promotion programmes also convey the same ethos that Tanishq stands for. For instance, Tanishq inundated the market with facts about widespread impurity in jewellery across India. And in the summer of 2002, it ran the hugely popular jewellery using a karatmeter and if the jewellery fell short of the claimed karatage, they could exchange it for Tanishq’s 22-karat jewellery.40 Tanishq’s launches of its collections have also been amidst much fanfare. For instance, Tanishq unveiled its Paheli Collection, a tribute to Rajasthani Kundan and Meenakari Paheli, a on reviving rich Indian jewellery art forms from across the country.41 Similarly, on the occasion of the launch of Tanishq’s lightweight colour collection (Figures 2.8a and 2.8b), artist Sudip Roy was called to unveil his painting that showcased the various colours used by Tanishq in that collection.42 And to promote Collection-G, Tanishq made presentations lifestyle stores, and ran joint promotions with brands such as L’Oreal and Wills Lifestyle, which appeal to a similar set of consumers.43 Tanishq’s advertising too communicates

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the classy and contemporary image of the brand (Figures 2.9a-c). All in all, Tanishq uses various communication media like advertising, sales promotion, public relations, in-store events and a host of direct marketing tools to strengthen its brand name. FIGURE 2.8 (a - b)

Tanishq’s advertising communicates the classy and contemporary image of the

brand.

Courtesy: Lowe Lintas. Reproduced with permission.

All this has resulted in Tanishq 44

FIGURE 2.9 (a - b)

Tanishq’s advertising communicates the classy and contemporary image of the

brand.

Headline:

Subhead: The energy of the sun. Captured in fusion. Bodycopy: Sabyasachi. New radiant forms of Baseline:

Courtesy: Lowe Lintas. Reproduced with permission.

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FIGURE 2.9 (c)

Subhead: Worn best with smiles, joy and laughter. Bodycopy: Tanishq captures the joy of feeling young. In a resplendence of traditional and modern jewellery. Created by award winning designers. At prices so reasonable. For the woman who will always stay young. Baseline: Pure jewellery. Pure joy.

Courtesy: Lowe Lintas. Reproduced with permission.

Questions 1. What is the promise of the brand Tanishq? Tanishq’s brand promise? 3. How do you compare Tanishq’s stores? Undertake a research to evaluate Tanishq’s prominent jewellery brands.

2.2.2 Distribution Channel Decisions An important function of marketing is to make products available to consumers at the right place and at the right time. Responsible for this function are marketing channels or distribution channels that include all interconnected organizations, individuals and processes that make a product available from the manufacturer to the end user. Distribution can be through a system of distributors, intermediaries are collectively called resellers who make sure that the product is delivered and serviced. Usually, traditional indirect channels like wholesalers and retailers provide the primary

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means for purchasing most products. Alternative to the reseller strategy is the direct marketing strategy where the manufacturer itself distributes products directly to consumers, without the help of any intermediaries. In an integrated marketing programme, marketers have to pay attention to their distribution channel to evaluate what message it conveys and whether the message conveyed is consistent with the communications strategy. In the above example of Tanishq, its classy boutique and concept stores match the image created by the brand and its communication. Various factors such as a retailer’s communication of sales personnel, store ambience, and location determine the outlet’s image. The type and number of channels selected also go to build the image of a product. Exclusive or selective distribution, and channels such as malls and departmental stores lend the product an image of distinctiveness, whereas intense or mass distribution, and distribution at all corner retail outlets give the brand an image of being a value-for-money, economical or mass-audience brand. A communications manager must ensure that marketer must choose channels that match the image of the product. Channels and product image are even more related in a direct marketing strategy because here the communication and distribution activity are one and the same. For example, a Eureka Forbes sales person is not only the distributor of vacuum cleaners, but also the communicator, who with his presentation skills can both inform and convince families regarding the need of vacuum cleaners. Similarly, the colourful catalogues of exercise equipment manufacturers or the persuasive direct mails of Reader’s Digest are supposed to bring in more orders and subscriptions respectively. Many companies are gradually also accepting orders via the Net as it lends the product an image of modernity and being techno savvy. What do you think about the image created by telemarketers for the products they market? Is it a pleasant one or irksome? Why?

2.2.2.1 Developing Push or Pull Promotional Strategies While we mainly understand communication activities as those directed to end-consumers, a large motivate and persuade channel members so that they may carry, merchandise, promote, and sell an organization’s products in an advantageous manner. Such strategy of directing promotions to channel members is called a promotional push strategy since the product is pushed through the channels to the consumers. The underlying assumption is that consumers will buy a product if resellers stock it. Special offers or promotional programmes may be designed for the traders to reduce their resistance in accepting a new product and in giving it enough shelf-space. An assurance that the product is also simultaneously promoted to consumers also helps in countering reseller resistance. In addition, channel members may also be educated about the new product to help them promote it to consumers. Cooperative advertising, a practice in which a manufacturer supports its reseller’s The push strategy is appropriate when there is low brand loyalty in a category, brand choice is made in the store, retailer’s recommendations are highly valued by consumers, and the product is an impulse purchase item. For marketers, it is appropriate when they have favourable channel relationships but lower promotional budget.

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An alternative promotion strategy is the pull strategy wherein the manufacturer uses advertising and promotion to induce consumers to ask for the product and pull it through the distribution channel. The objective of this strategy is to counter reseller resistance by building demand among end-users who are encouraged to request the product from the retailer. This strategy is appropriate and is superior to competing brands, and when people make the purchase decision before they go to the store. In the late ‘90s, business for Prestige pressure cookers, a trusted name in the Indian

offering. Besides, consumers were ignorant of the new product line of Prestige and largely perceived it to be a pressure cooker brand. The company then switched to a pull strategy, which, coupled with a new product range, brought a turnaround in its fortunes. Prestige kitchen shopping an enlivening experience as opposed to a boring housewife-ish chore. The company launched a series of 5 commercials, each highlighting a different feature and product, positioning Prestige as a kitchenware brand for the contemporary and smart urban woman. One of the commercials even showed a husband and wife purchasing a pressure cooker at a Prestige outlet. With a new product range, a wellknown brand name and a more interactive kitchen shopping experience, consumers started seeking the Prestige brand.45

Which of the 2 strategies – push or pull – to use, depends on the needs of the situation, and various internal and external factors. Quite often, both strategies are used simultaneously in different proportions from time to time.

2.2.3 Price Decisions The price of a product refers to what a consumer has to ‘pay’ or ‘give up’ in order to obtain a product. Consumers purchase products to derive value out of them. The value of a product refers consumer costs. While most people tend to think of price as only the monetary cost of a product, it also includes a consumer’s time, energy and psychic costs in procuring the product. Hence, if two similar products cost the same, a consumer is more likely to choose the one that can be obtained more easily because the time and effort spent in obtaining the product is also the non-monetary price she has to pay for it. A marketing manager must consider various internal and external factors like cost, competition, demand, perceived value, government policies, company policies, etc. in determining oriented a manner or setting it independently of the other elements of the marketing mix. However, price should also take note of factors such as product quality, distribution strength, and advertising

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and communications. This is because price too communicates about the virtues of a product and helps shape attitudes towards it. Often consumers use price as a cue to gauge product quality. The higher the price, the higher they assume the quality and vice versa. Image pricing, where price serves as an indicator of quality, is quite effective with lifestyle products like expensive handbags, perfumes, etc. that build on a consumer’s ego. Premium image products that go on sale too often face the risk of losing the ‘high quality and exclusivity’ perception.

When Reebok entered India in a joint venture with Phoenix shoes, there were no sports shoes that sold for more than Rs. 1,000, whereas a pair of Reebok could easily cost Rs. 2,500. Initially the company was embarrassed about its high prices but later it turned the same into a marketing weapon to lend the shoes an air of exclusivity. And the premium upwards of Rs. 5,000, the product sold like hot cakes and exhausted its supply.

Some companies price the same product at two different levels based on image differences. For instance, perfume manufacturers may sell the same perfume in two different bottles, accompanied by different advertising levels and approaches, at two different prices. This is possible because when alternative information about true quality is not available, price acts as a signal of quality. For communications to be effective, the product’s price and promotions should be consistent with each other and convey the same message. Farris and Reibstein examined the relationships among of Marketing Strategies (PIMS) project of the Strategic Planning Institute, and derived the following ∑ Brands with average relative quality but high relative advertising budgets were able to charge premium prices. ∑ Brands with high relative quality and high relative advertising were able to charge the highest prices. ∑ Brands with low quality and low advertising charged the lowest prices. ∑ Consumers were willing to pay higher for known products than for unknown products. ∑ The positive relationship between high prices and high advertising was the strongest in the later stages of the product life cycle, for market leaders, and for low cost products.46 The results of the study lend support to the idea that price and communications should be consistent and should convey the same message. Moreover, often times price drives marketing communication when a company has advantageous pricing. Low or value-for-money prices can be a great motivator to propel people into the buying action. When price is the main message in an advertisement, it is called price copy advertising. Price messages can also be delivered on packages, point-of-purchase material, direct mailers, coupons, contest forms, etc.

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For many years, the market leader in the soft-drink concentrate segment, Rasna, had based its communication strategy on its competitive pricing. It knew that price always topped the factor list of consumers while buying many beverages. Hence, Rasna tapped on this mentality and advertised the lowest price tag of 50 paise per glass (Figure 2.10).47 Thanks to its aggressive pricing, it has been able to reach out to the masses. FIGURE 2.10

Rasna communicates its aggressive pricing to attract the masses.

It's so simple, even a child could do the trick. All you do is mix Rasna with sugar and water, and It's ready in minutes 2 bottles of syrup to make 32 glasses of delicious soft drink, Just compare that with any syrup/squash and you'll fine Rasna works out to less than half cost.

Courtesy: Pioma Industries, Mudra. Reproduced with permission.

2.2.4 Integrating IMC in the Marketing Mix It is now clear that marketing communication plays a vital role in the marketing mix by interacting with all the other Ps of marketing. Communication can be driven by product, price or distribution decisions, and it can focus on one or some of these elements in combination. Marketers use the

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various promotional tools to inform consumers about their products, prices and places of availability. Also, each of these marketing communication tools communicates to the consumers. Thus, marketing communication managers have to ensure that the messages received from all the mix elements are then can an integrated marketing communications programme achieve its objectives.

Summary This chapter takes a close look at the strategic tools of the marketing mix — product, price, place and promotions — and explains how the former three affect promotions, and in turn get affected objectives, strengths and weaknesses, current strategies, etc. Another important strategic decision is

and positions it to occupy a distinctive image in the minds of the consumers, using one of the several alternative positioning options. The promotional programme is developed using these strategies as a guide. strategies such that together they deliver a message that is cohesive with the communications message. Product decisions involve decisions regarding its quality, design, features, packaging, branding, life cycle strategies, etc. Distribution decisions relate to management of resellers, push and pull strategies, sales personnel, etc. Similarly, the range of price and the method chosen for its communication also have an impact on the image of a product. A promotional programme should take note of all these elements of the marketing mix to send a cohesive message. Only if all the elements speak with one voice, can the marketing objectives be realized with maximum impact.

Exercise 1. In the opening vignette, what are the tangible vs. intangible product characteristics of Archies? How do you see Archies packaging itself to tangibilize its brand experience? How is it positioned in the minds of the consumers? In the wake of a gigantic retail revolution spurring the growth of many niche brands in the country, what competitive threats do you see Archies facing? Do you think it is geared up to meet these challenges? 2. The chapter states, “VALS helps marketers analyze important behaviours like product purchase, usage patterns, trial, early adoption, etc. and segment consumers based on their motivations, decision-making style, communication style, media and channel use, consumption-based lifestyle, etc.” For a practical implementation of VALS, where do you think marketers get consumer data from? Find out if the Indian VALS model has been developed at the time of your course. If yes, study the classes in which Indian consumers have been categorized. Horlicks Foodles’ point of differentiation. Do you think its differentiation is vulnerable to competitive attacks? If yes, to what extent? Also explain why it is important to differentiate an offering given that quite a few me-too brands in the market have been surviving. 4. Tea industry experts are concerned that tea is losing its appeal among younger audiences owing to a number of reasons. A prominent one among those is that tea dominates in-home consumption

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whereas a lot of people are on the move. In wake of this, do you think tea manufacturers need

Intel, Bank of Baroda and Dabur discussed in the chapter change is the corporate logo. What could be the reason for this? Do you think it is a mere cosmetic change? 6. What is a brand? Must all products be branded? In an age where products are attaining parity and purchase decisions are often based on price, how can companies achieve and maintain brand equity?

Suggested Class Projects 1. Analyze the marketing mix strategies followed by Coca-Cola and Pepsi for their cola drinks in India. What are the competitive advantages of each and what competitive strategies have they been following? What segments does each of them target and how have they positioned themselves? Do you perceive a meaningful differentiation between the 2 brands? What prime message is conveyed by their communication campaigns and how do their product, price and distribution strategies support the communication, and vice versa? Present a detailed analysis before the class. You may also choose 2 other closely competing brands from an industry of your choice for this project. 2. Visit the online job site www.monsterindia.com. How do you see the brand packaging its products? Comment on its distribution strategy and analyze the brand image that it portrays.

Critical Thinking Questions

strategies to align with the chosen image? Or is there an alternative approach to solving this chicken-or-egg problem? product symbolism is relevant for all product categories? Why or why not? advertising was the strongest in the later stages of the product life cycle, for market leaders, and for low cost products.” Reason why.

CASE STUDY Founded in August 2006 and owned by the Gurgaon-based InterGlobe Enterprises, the low-cost

serves Dubai, Bangkok, Singapore, Muscat and Kathmandu from New Delhi and Mumbai. With

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a market share of 19.6 per cent, it is the largest budget airline in India and next only to the market leader Jet Airways that enjoys a 24.8 per cent share of the aviation industry. IndiGo’s success saga is all the more praiseworthy given that it was a late entrant in an airline market already dominated Red and Jet Lite. However, taking several challenges in its stride, IndiGo has evolved to become the brand that it is today.

The liberalization of the Indian aviation sector in the mid-nineties by the Government of India had ended the monopoly of the nationalized airlines Air India and Indian Airlines (renamed Indian), and resulted in the entry of private players like Jet Airways, Air Sahara, Modiluft, Damania Airways, operations and strategies, such as Jet Airways and Air Sahara, had survived. The next turning point

it was positioned on the higher end of the price spectrum as an ‘all business class’ airline, and has already ceased operations.48 In favour of the new airlines, the air travel market expanded due to several factors like increased mobility of people, a growing middle-class with higher disposable income, attractive low fares offered by these low cost carriers, the overall growth of domestic tourism in India, and increasing outbound

competition. On top of it, the recession that hit in 2008, has not helped any. In spite of this, the aviation industry has stayed resilient to the adversities and is back on the growth track since the past in Jan–Oct 2011 from the same period a year ago to 49.6 million passengers. However, individual players are still smarting from the recent blows to business from high jet fuel costs, and compounded with an inability to raise fares in a cut-throat market, some of them could

losses (Table 2.4a )

49

with state-run Air India alone likely to account for more than half of it.

Airlines and ModiLuft), and others have entered into mergers and acquisitions (e.g., Air Deccan has off as a low-key budget carrier that people hardly noticed, IndiGo has emerged as a serious challenger Table 2.3 gives the market share of domestic carriers as on October 2011 while Tables 2.4 and Charts 2.1 to 2.4 show a comparison of some of the major airlines for the months of January 2011 and October 2011.

Chapter 2 TABLE 2.3

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Market Share of Indian carriers as on October 2011 in the Domestic Aviation Market Airline/Company

Market Share (%)

Jet Airways (includes JetLite)

24.8

IndiGo

19.6

Kingfisher

16.7

NACIL (includes Air India and Indian)

16.6

SpiceJet

16.1

GoAir

5.3

Source: Directorate General of Civil Aviation

Amongst domestic airlines, Jet Airways is the largest player. It commenced operations in India

private airline in the sector. However, after the entry of several low-cost carriers, the full service Jet Airways felt the need to offer services at lower price points. Hence, in 2007, it acquired Sahara Airlines that was rebranded as JetLite. JetLite is a wholly owned subsidiary of Jet Airways India Ltd. 2008, Jet Airways laid off 1,900 of its employees, resulting in the largest lay-off in the history of Indian aviation. However, the employees were later asked to return to work after the management

cent or less load factor with the aim of increasing it to 70 per cent and above.

or SpiceJet. Unlike the low-cost carriers, it offered full service at value prices. Voted as the ‘Best

low-cost business. It has also slipped in market share (Table 2.3) to third position in October 2011,

low-cost carrier brand. traditional hospitality and service. The National Aviation Company of India Limited, later renamed as Air India Limited, was formed by the Government of India to oversee the merger of these two airlines. In 2007, both state-owned airlines were merged together with their subsidiaries—Air India with its subsidiary Air India Express and Indian with Alliance Air—to form one primary airline, Air India. The new Air India has two subsidiary carriers (Air India Express and Air India Regional) providing regional and low-cost, point-to-point services and a third subsidiary for cargo operations.

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February 2011. Air India has the fourth largest share in India’s domestic air travel market, but is facing stiff competition from private carriers. Air India had been infamous for mismanagement, lack of professionalism and bad leadership. And following its merger with Indian, it has faced even more and discontent among employees, which even resulted in a strike by a section of its pilots. and internationally to Kathmandu and Colombo. It is a reincarnation of ModiLuft. With a mission to deliver the lowest air fares with the highest consumer value to price sensitive consumers, SpiceJet’s primary competition is with Indian Railways for its passengers travelling in air-conditioned coaches. Ever since its inception, its services have been riddled by delays. As per Directorate of Civil Aviation July 2011 alone. and recessionary cycles, IndiGo’s resilient performance can be partly attributed to its low-cost pricing model. When the recession was at its rock bottom, many travellers migrated from full service airlines,

industry. Despite having to operate in the same environment of high fuel costs and airport charges, fewer cities and keeping a tighter rein on costs. Since it does not provide a hot meal service, the aircraft has neither the equipment required to keep the food hot, nor any heavy cutlery. A lightened load results in less burning of fuel and a straight saving in cost. IndiGo also has a high aircraft utilisation smaller airports, that help in cutting turnaround times. Its no-frills model allows it to cut down on

Pure low-cost airlines also use their aircraft space better. On an average, a low cost airline can seat IndiGo has the highest load factor (measure of a carrier’s passenger carrying capacity) at 89.4 per cent as of May market challenges.

It was an uphill task to segment the air-traveller market at a time when most airlines were catering to the limited number of existing air travellers. Like SpiceJet, Indigo too decided to offer affordable services, but with a difference. Although it targeted train travellers looking to upgrade to air travel as well as business travellers, it focused on travellers who saw a service bias attached to the budget airlines. Two years into operation, IndiGo had to face the global recession, which hit all industry sectors. It

operations. So while other budget airlines drove home the advantage of low-cost as their USP, Indigo hassle-free, yet affordable airline.’

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One of the prime differentiators that IndiGo harped on, was its on-time performance. As can be seen from Chart 2.4, IndiGo has an above-average on-time performance (more than 90 per cent). At a time when budget airlines like SpiceJet, and even a full service carrier like Jet, were plagued with delays, IndiGo focused on its timeliness. In April 2011, IndiGo’s on-time performance was 94.6 per cent, and the best in the industry. IndiGo’s on-time performance is measured without human intervention, using sophisticated Aircraft Communications Addressing and Reporting System (ACARS) technology, thereby ensuring accuracy.

lower operating costs in the future as well, the airline has also signed an MoU for an additional 180

2 annually per aircraft. Above all, it also leads to reduced engine noise. The new aircrafts are expected to allow IndiGo to take full advantage of the predicted growth in Indian air travel. In order to minimise the cost, time and tension of air travel, IndiGo also incorporates the best hardware, software, interface design and personnel from around the world. IndiGo is the only Indian carrier to provide passenger convenience in the form of step-less

check-in, offering these small luxuries at a value-for-money price. The airline has also enabled speedy check-in facilities through hand-held devices for printing boarding passes to avoid chaos at counters. Called Q-busters, these devices help in issuing boarding passes to passengers anywhere within the at a compelling price, IndiGo also serves the widest range of food and beverage items amongst any domestic airline in India. In order to ensure quick delivery of arrival baggage, IndiGo measures the

convenience of mobile booking in India. Customers with General Packet Radio Service (GPRS)capable mobile phones or mobile personal digital assistants (PDAs) are able to use this simple way

and beverage menus, etc. In 2008, just after two years of the company beginning its operations, Indigo Airlines was honoured with the title of ‘the Best Domestic Low Cost Carrier’ in India. It has continued winning several more awards for its excellent service coupled with low fares in 2009 and 2010 as well, including awards by South Asia Travel and Tourism Exchange (SATTE— India’s leading B2B travel & tourism event), Indian Travel Mart, Air Passengers Association of India, Travel Agents Association of India, CMO Asia, TravelWorld Exhibitions, etc. Recently in 2011, IndiGo won the ‘Best Overall Performer’ award at the Assocham Civil Aviation Centenary Awards and the Skytrax World Airline Award as the ‘Best Low Cost Airline in Central Asia’ at the Paris Air show.60 The Skytrax awards are the passengers’ choice awards with more than 17.9 million air travellers from over 100 different nationalities taking part in the 10-month survey from July 2009 to April 2010. Operating for over 12 years, the survey 61

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Expanding its product portfolio beyond air-travel services alone, IndiGo has recently launched Get Packing—an exclusive packaged holiday offering for its customers. Get Packing is a simple idea designed for people looking for a high quality travel experience at low prices, and without any hassles and waste of time. It allows IndiGo passengers to book holiday and business packages in one go, either on the Get Packing website or at the IndiGo call centre. The offer addresses all facets of a

business and leisure packages. For the frequent business travellers, business packages with same-day return options are also offered. In addition, travellers can customize trips to suit their convenience and budget. Leading chains like the Accor Group, Fortune, Sarovar, The Pride and Lemontree have tied-up with IndiGo for this initiative, along with a host of smaller chains and individual hotels. IndiGo hopes to save its customers the cumber of travel planning, the frustration of long lines, and the hurdle of high prices.62

After its initial success in the Indian market, IndiGo is all set to clone its tried-and-tested domestic model on international routes. It has kept its promise of providing low fares on international routes, unnerving even bigger rivals. In a bid to replicate its Indian success story, the airline is offering a

promotion, IndiGo tickets are expected to cost around Rs.14,000, the average rate of fares offered on these routes. That will be a testing time for the airline, as it will have to differentiate itself from the rest of the pack. However, since it will be servicing routes like Dubai, Bangkok and Singapore that countries will also have the option of paying in their currency of choice. services, all the salient features of the domestic model will be followed for the international operations. The no-frills model will continue but with a wide variety of food and alcoholic beverages. There will IndiGo plans to offer several innovations to improve services on board, and it has invested heavily in training its staff, particularly the cabin crew and pilots. The airline is also on a recruitment spree and has roped in 200 pilots, 900 cabin crew and nearly 600 engineers over 18 months to set off its international operations. market is not going to be a cakewalk. The global market is an uncontrolled environment with different procedures, regulations and cultures. Besides, IndiGo will be competing with established international

the best airlines of the world—Singapore Airlines, and other low-cost rivals, such as Air Asia and Tiger Airways. Domestic competitors too are gearing up to take on the international market. Soon

countries in 2011. GoAir has also ordered 72 planes and is likely to start international operations of fares. For instance, Air India has sharply reduced airfares even below budget carriers on select domestic routes after the recent pilot strike.

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Distribution would also be a key challenge in the new market, especially because IndiGo currently depends solely on a web-based distribution system, overlooking the so-called global distribution system, a reservation system that travel agents use. In contrast, full-service carriers have a vastly superior distribution network. And many are part of airline alliances like Star Alliance and One World, through which they cooperate in route sharing, price sharing and distribution. IndiGo’s performance will also depend on the timings allotted to it because its routes are stopover destinations where

The prime objective of IndiGo’s marketing communication campaigns has been to build a unique brand identity, as the category of low cost airlines, till even two years ago, was completely commoditized. A low-cost airline was characterized as one with cheap fares, undercutting its competitors. As a key differentiator, IndiGo decided to highlight its superior on-time performance, a prime determinant in the selection of airlines, to set it apart from other budget airlines. Another brand promise depicted through the communication was the simplicity and hassle-free nature of IndiGo’s services. Over time, IndiGo has been breaking away from the ignominy attached to low-cost carriers, and is positioning itself as a ‘no-frills chic’ airline, as opposed to a ‘cheap’ or ‘low-cost’ airline. Hence, its communication has been all about the IndiGo experience. To maintain the image of a cool, youthful airline, a contemporary tone has been adopted in the communication too. Its advertising campaigns have crisp, entertaining content and a character that is unlike any of the staid and typical airline advertising campaigns. IndiGo has also given customized, creative touches at various touchstrengthen the ‘coolness factor.’ Tongue-in-cheek messages can be seen on its unique food packaging, sandwiches are branded as ‘airwiches’. IndiGo’s logo depicts the image of a ‘dotted airline,’ which is symbolic of a cool, youthful and aspirations of the masses, and is poised to cater to India’s large potential market. Its communication has also been quite different from that of its competitors. While most airlines depict lush aircraft interiors, inviting food selection, smiling air hostesses and relaxed passengers, IndiGo has rarely shown its aircraft interiors. In fact, it has never shown the aircraft in any of its print or outdoor ads till now. IndiGo effectively uses different media to build its brand. It uses print and broadcast media to build a brand image, electronic media for service support and promotional offers and outdoor media reach out to business audiences. IndiGo has also entered into partnership with various travel portals that help increase its reach in the electronic media. In addition to ATL and BTL brand building activities, IndiGo relies heavily on word-of-mouth, publicity and repeat customers. Online reviews on websites like Mouthshut.com or consumer blogs are monitored to check if consumers’ brand experiences are in sync with the brand perception that IndiGo aspires to build.

reaches the airport late but wants to reach his destination at the earliest, has lots of luggage, etc. The how, despite the endless chaos associated with Indian travel, IndiGo runs smooth operations. The commercial ends with the voiceover, “Indigo, designed for the Indian traveller.”

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The next TVC aired in 2010, resonated IndiGo’s core value of ‘on-time’ performance in an entertaining manner. It showed a behind-the-scenes story of how the entire workforce of IndiGo synchronized to deliver on-time performance, thereby enabling IndiGo’s patrons to be punctual, which in turn would improve the overall productivity of the economy. Featuring its engineers, on time, providing hospitable service on time, serving delicious food on time and putting its best foot forward to ensure that people reached their destinations on time. According to the airline’s agency Wieden+Kennedy, the idea behind this ad was to portray IndiGo as an airline that respected Ghosh, President of IndiGo, “At IndiGo, low cost and low fares don’t mean low quality.” The stylish execution drove home the point that Indigo is chic, not cheap. The commercial was aired at a time ‘on-time’ carrier. The emphasis on improving the overall productivity of the economy was with the objective of riding on the prevalent optimistic wave in the country where the young Indians value business, news, movie, general entertainment, sports, travel, lifestyle and regional channels. Although the main thrust was on television, the campaign was also supported with collateral, online and direct messages.64 Announcing its international operations in a Broadway style musical, the latest television

captain and supported by the star cast of co-pilots, ground force personnel and cabin crew. Feedback from the advertising fraternity about the new commercial is that it is a fresh idea stylishly executed with deft dance performances and foot-stomping music, but the jingle is too fast and anglicized,

The message is catchy, clear and crisp. And a ‘no-graphic’ approach draws attention to the brand logo, which further reinforces brand recall. The ad bagged IndiGo ‘Best LCC Print Advertisement’ award at (Figure 2.11). On FIGURE 2.11

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109

Other print ads touting ‘We are so predictable’ and ‘Late is a four letter word’ highlight IndiGo’s punctuality in a very catchy manner. Even outdoor ads that are primarily used to announce new routes have a witty touch to them. Sample the following ads that only have large text lettering on an Indigo background, with no other graphic element save the airline’s logo. Phoren Return

Sheikh it, baby

Daily flights to Bangkok + Dubai.

Daily flights direct to Dubai.

Welcome abroad!

Welcome abroad!

Kem Cho?

Bong voyage

Meet and greet daily with a new non-stop flight to Ahmedabad. Go now!

Now flying three times daily to Kolkata from 7th and 8th Nov. Book now!

IndiGo also regularly sends emailers to its subscribers announcing new routes and new initiatives, such as a rehashed designer uniform, Q-busters, mobile booking, etc. One of its emailers to corporate said, ‘Let the bad times roll,’ a not-so-

FIGURE 2.12

(Figure 2.12). However, jibes and jeers are not new in had made a veiled dig at low cost carriers, with an obvious reference to IndiGo. Augmenting the IndiGo oomph further, celebrity fashion designer Rajesh Pratap Singh and stylist Ambika Pillai have given the crew a stylish, modern feel that customers and partners associate the airline with. Deep blue tunics and Indigo blue hats have been designed for the cabin crew to give them an international look. The bi-colour tunic, navy with a highlight of indigo on the belt, is supposed to be functional and elegant, whereas a dapper hat has been “no nonsense,” in line with the spirit of the airline, and incorporates style lines keeping in mind comfort and ease of movement. It is a single garment, without multiple layers, and light and easy, to meet on-job requirements. The uniform’s design been given a new global look with a set short hairstyle for girls. The make-up is a subtle pink with brick red colour on the lips and nails, and the eyes are nude with a pullout liner, making a remarkable style statement.66 Celebrating Children’s Day in November 2010, IndiGo has also launched its ‘Good Karma’ campaign, in partnership with an NGO called ‘Save the Children.’ In this special initiative for lesser

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privileged children, IndiGo passengers will have the opportunity to contribute to the children’s welfare and collectively help them get good basic necessities of life including quality education, food, and health. Travellers can voluntarily contribute Rs. 10 while making a booking on IndiGo’s website.67

Many airlines have come and gone since the Indian skies were opened two decades ago. Indigo has emerged as an airline with the right focus and strategy, in spite of being a late entrant. From day one, it has been the ‘no-frills chic’ airline. As per industry estimates, the aviation industry in India will continue to grow by around 16–17 per cent p.a. and budget airlines would be the propeller for this growth.68 This brings both challenges and opportunities for IndiGo, especially with its foray into international operations. How well the airline understands the international market and how it

1. Perform a SWOT analysis of IndiGo’s key competitors. What is IndiGo’s prime source of competitive advantage? 2. Do you think that IndiGo’s points of differentiation, such as ‘low cost’ or ‘hassle-free services’ are sustainable? Why or why not? global market? Comment. 4. Comment on IndiGo’s positioning strategy. Do the product, price, promotion and distribution strategies complement its positioning? Table 2.4: Low Cost is Beautiful Kingfisher

Number of aircraft Flights day

Market share*

Air India (including Air India Express and Alliance)

Jet Airways (including Jetconnect and Jet Lita)

157

117

300

Over 400

1,528

-

18.8

August 2011 Source:* Directorate-General of Civil Aviation

Indigo

Spice Jet

34* 272

202

-

759

-

-

240

17.4

187

13.4

3,122

Chapter 2 CHART 2.1: On-time Performance

CHART 2.2: Passenger Complaints

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CHART 2.3: Flight Cancellations

CHART 2.4: Seat Factor

Endnotes 1. Interview with Pramod Arora, Executive Director, Archies Limited, Brand Speak, July 2007, www. exchange4media.com; www.archiesonline.com; ‘Archies,’ Superbrands 2. “Maruti Suzuki Ranks Highest in Customer Satisfaction in India for a Seventh Consecutive Year,” October 26, 2006, www.marutiudyog.com www.hll.com 4. Dhaleta Surender Kumar, “Open House,” The Brand Reporter, January, 2008 Why India now?, Aruna Chandra, John K Ryans Jr.

Chapter 2

6. 7. 8. 9. 10. 11. 12.

14. 16. 17. 18. 19. 20. 21. 22.

24.

26. 27. 28. 29.

40. 41. 42. 44.

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Nandini Raghavendra, “Jean Splicing,” Brand Equity, February 22, 2006 Philip Kotler, “Marketing Management,” 11th Vikram Bakshi, “We pre-empt the consumer,” Pitch, October 2006, pp. 22-28 Indira Bisht “ Everyone wants to have fun,” Pitch, February 2006, pp. 26. Ashwini Gangal, “Hero Honda repositions Splendor NXG as ‘The Friendship Bike’,” Nov 18, 2010, www.afaqs.com www.cybermediaresearch.co.in Shumone Chatterjee, “Building brands among sub-cultures,” Pitch Why India now?, Aruna Chandra, John K Ryans Jr. General Management Review www.etgmr.co.in www.agencyfaqs.com “The Dilemma,” Pitch “The Right Formula,” Pitch, May 2011, pp. 28–29 www.mudra.com Al Ries and Jack Trout, Positioning: The Battle for your Mind, New York, Warner Books, 1982 Speech by Sam Balsara, “Time to rethink media approach,” Pitch, May 2006, pp. 76 “Castrol introduces ‘Liquid Engineering,’” Press Release, BusinessWire India www.uniindia.com “Nutralite,” Mudra Works!, March 1, 2007, www.magindia.net Rajiv Banerjee and Ravi Balakrishnan, “The Identity Crisis,” Brand Equity, February 22, 2006; “Intel www.channeltimes.com Rajiv Banerjee and Ravi Balakrishnan, “The Identity Crisis,” Brand Equity, February 22, 2006 “Gucci the most popular designer brand amongst Indians, sunglasses are the most sought after designer www.acnielsen.co.in www.marketingpower.com Interview of Shantanu Mukerji, Brand Manager, Dior Watches, Brand Speak, www.exchange4media. com “Gucci the most popular designer brand amongst Indians, sunglasses are the most sought after designer www.acnielsen.co.in “The Flavour Queen,” Pitch, January 2011, pp. 47 Ruchika Kumar, “A taste drive,” Pitch, April 2011, pp. 40-41 Ashish Jha, “A twisted tale,” Pitch, April 2011, pp. 22-24 “Healthy habits,” Pitch, April 2011, pp. 10–11 Ruchika Kumar, “Defying all odds,” Pitch, April 2011, pp. 28–29 “Whiter than white,” Pitch Superbrands, Volume I, 2004, pp. 160-61 www.domain-b.com “Race car design,” www.discoverychannelasia.com Ruchika Kumar, “Light-footed,” Pitch, October 2011, pp. 28 www.theubgroup.com www.orchidhotel.com “Tanishq as a Brand,” www.tanishq.in www.titanworld.com; www.tata. com “Tanishq launches exchange scheme,” May 14, 2002, The Hindu Business Line www.titanworld.com www.hindustantimes.com Interview, Harish Bhatt, VP- Retailing, BrandSpeak www.exchange4media.com “Tanishq – corporate profile,” www.titanworld.com Rajiv Banerjee, “Under Pressure,” Brand Equity, July 28, 2006

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46.

Harvard

Business Review 47. Vinita Sudhir, “A juicy, juicy story,” Pitch, May 2006, pp. 66-67 48. www.info.shine.com; www.researchandmarkets.com 49. The Hindu Business Line, Nov 16, 2011 www.thehansindia.info Aviation ministry reports for the months of January 2011 and October 2011 www.jetairways.com Rajiv Pratap Rudy, “Maharaja in chains,” Business Today, May 29, 2011; Anupama Katakam, “Merger pain,” Front Line, Sindhu Bhattacharya, “SpiceJet passengers hit most by cancellations,” DNA, Sep 1, 2011 The Hindu Business Line, Nov 16, 2011 www.goindigo.in www.goindigo. in www.goindigo.in 60. Dubai, Bangkok and Singapore,” June 14, 2011, www.goindigo.in 61. www.worldairlineawards.com 62. www.goindigo.in Binoy Prabhakar, “Can India’s budget airline ‘IndiGo’ emerge as a winner in International market?,” The Economic Times, June 26, 2011 64. Antara Ghosal, “On the dot with IndiGo,” May 21, 2010, www.goindigo.in 2011, www.goindigo.in 66. “Celebrity fashion designer Rajesh Pratap Singh and stylist Ambika Pillai pump up the IndiGo oomph!” www.goindigo.in 67. www.goindigo.in 68. Ashish Jha, “IndiGo – Flying High,” Pitch

Part Two The IMC Programme Situational Analysis This section focuses on the internal and external environment facing communication specialists. Chapter 3 explores the sociocultural environment throwing light on consumer behaviour and purchase decision process. Chapter 4 discusses the theoretical foundations of communications. Chapter 5 reviews the organization structure of the communication world and familiarizes students with various players including ad agencies and regulatory bodies in India.

Chapter 3 Understanding Consumer Behaviour Chapter Objectives After reading this chapter, you will be able to: Understand the concept of consumer behaviour and its importance in the planning of promotional programmes Identify and learn about the various cultural, social, personal and psychological factors that

In Perspective

these processes

Dell Sells Well Mahesh was in his second year at the Nima Institute of Management when he realized that a laptop would be an excellent aid to his studies. There was a strain on the institute’s computer lab with the number of students doubling

needed. However, that did not deter the faculty from insisting on their project reports being submitted as typed copies. Even most of the research work had to be done online. The institute’s management had gotten away by providing Internet access in student’s dorm rooms, but laptops had to be the students’. The saving grace was Mahesh’s roommate Hari who used to lend Mahesh his Dell Inspiron 600m after he was done with his work. But with exams barely a month away, Mahesh started researching on the laptop brands available in the market. He knew that laptops were more expensive than desktops, but he could not compromise on the portability afforded by the former. Besides, every time he had worked on Hari’s laptop, processing time, Internet speed, and ease of working had been phenomenal compared to the Compaq desktop he had used at his home. Mahesh started off by listing down his preferences in terms of product features – memory, hard disk capacity, processing speed, peripheral

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three parameters was more important to Mahesh than that on the others. Last in the list he even included colour and look preference, in the probability that he could get them On inquiring with his classmates, Mahesh learnt that Dell, Toshiba and IBM were the more popular brands on the campus, primarily because of their standard features, affordable prices, and availability of service options in India. He even consulted consumer opinion sites such as Mouthshut.com and blogs of online writers to get an understanding Dell and Toshiba Dell owing to his prior experience with Hari’s Inspiron. It seemed to him that he had started noticing more laptop ads of late, and Dell seemed to stand out among the lot. He felt that while the functional features were almost the same for Dell and Toshiba (Dell models had better processing speed whereas Toshiba models had more memory), Dell models were thinner, lighter and better looking than the latter. Hari had told him about a servicing problem that he had once faced when Inspiron had crashed without notice, but Mahesh had found out a Dell repair centre in their city itself. Besides, every other student’s laptop had given some problem within a year of purchase, so there was nothing to be overly concerned about. When he was through with his research, Mahesh spoke to his dad about his decision. His father immediately agreed, on the condition that Mahesh made the best use of the laptop. He wired the sum to Mahesh’s account on the campus and within a week Mahesh had placed his order online. Even a year after Mahesh had made the purchase, he couldn’t stop reading articles and opinions on Dell’s models. He even found himself recommending the brand to his younger sister about to leave for the US for a graduate course in Law.

Dell

their communication strategies.

3.1 FACTORS INFLUENCING BUYER BEHAVIOUR

Chapter 3

Understanding Consumer Behaviour

Consumer behaviour

the online retailer Amazon 1

Figure 3.1.2 FIGURE 3.1 Marketing stimuli Product Price

Model of buyer behaviour. Other stimuli Economic Technological

Buyer's characteristics Cultural Social

Buyer's decision process

Buyer's decisions

Problem Recognition Information search

Product choice Brand choice

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3.1.1 Cultural Factors Culture

Each culture also consists of smaller subcultures

Orchid

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121

CASE IN POINT Himalaya Appeals to the Herbal-ites Himalaya Herbal Healthcare has positioned itself in the ayurvedic and natural products space to create general health and pharmaceutical products. Its products made from believe in wellness and longevity. The company undertakes research to develop products using ayurvedic principles. The Himalaya as to the mainstream consumer. While its pharmaceutical products are marketed ethically, the personal care and consumer health products are advertised, albeit strategically. There professionals. Advertising has focused on the modern, urban consumer, who wants herbal products, but also needs assurance that these products are thoroughly researched. Hence, Himalaya’s Himalaya makes it a point to talk about its natural ingredients like grapes, tomato, aloe vera, etc. to highlight its ‘natural’ composition. Television, outdoor and glossy magazines (advertisements and advertorials) are the chosen media for its various products. In view of its international foray, the company has even redesigned its packaging to make it attractive but not overly glamourous, and such Himalaya Herbals stands for.

FIGURE 3.2 (a)

Himalaya highlights its natural ingredients to position in the natural products space.

Courtesy: The Himalaya Drug Company, Contract. Reproduced with permission.

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FIGURE 3.2 (b)

Himalaya highlights its natural ingredients to position in the natural products space

Courtesy: The Himalaya Drug Company, Reproduced with permission.

FIGURE 3.2 (c)

Redesigned packaging gives the brand a slick look.

Courtesy: The Himalaya Drug Company. Reproduced with permission.

Chapter 3

Understanding Consumer Behaviour

social classes

varnas

Brahmins, Kshatriyas, Vaishyas

Kshudras

Figures 3.3a-b. 4

FIGURE 3.3

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As illustrated in Figures 3.4a-b, Hidesign, a niche global brand of Indian origin, targets the upper social classes with its elegant print ads. The advertisements’ monochromatic colour scheme, choice of lettering, claim of exclusivity in the copy, and artistic photography all point to the class of consumers it targets. Hidesign’s ideal customer is successful,

a strong commitment to nature and ecology. Hidesign’s uniqueness can be attributed to its concept of crafting leather in the traditional and almost forgotten way of vegetable

rubbed with oils and allowed to age before being polished with stone rollers. Stylishly designed stores and innovative products refreshed twice a year add to the classy image of the brand.5 FIGURE 3.4 (a, b)

Hidesign targets the upper social class with its elegant advertising.

Subhead: We still make leather bags using the same process Italians abandoned years ago. Quitters. Bodycopy: Not everyone’s as obsessed with leather. Not everyone cares enough to knot each stiched end. Because not everyone cares whether a bag keeps its shape for years. That’s why, we encourage you to take your time before deciding which Hidesign bag you’d like to buy. After all, it’s taken us long enough to put it on the shelf. Baseline: Years behind its time

Courtesy: Hidesign, Contract. Reproduced with permission.

Subhead: For once, skin that’ll actually look better with age. Makes you hate it. Doesn’t it.? Bodycopy: The secret lies in the centuries old process of vegetable tanning. Of soaking the hides for 40 days in wooden drums, in bark and seeds from Africa. But with leather this good, there’s one problem. Soon, the bag on your shoulder could look better than you. Baseline: Years behind its time

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CASE IN POINT Marketing Through Reference Groups As part of its ‘Lifebuoy Swasthya Chetna’ spreading awareness about rural health and hygiene in India. It uses referral group

of washing hands with soap, it reaches out to schoolchildren, who being initiators of engaging. HUL’s communication focuses on fun using stories, games, songs and quizzes. To establish the presence of germs even on clean hands, a ‘glow germ demo kit’ has been developed, which can make even unseen germs visible. The main message delivered through this activity is “Visibly clean is not really clean.” HUL teams also meet with the Panchayat Lifebuoy Swasthya Chetna’ programme has made its mark as the single largest private hygiene education project in the world. Similarly, Tupperware party method of distribution since it believes that its products require more demonstration and explanation than is obvious to the consumer’s eye. Tupperware’s sales force goes out to consumers and starts talking about the typical household problems that they have in storing foodstuff. They organize Tupperware parties, wherein the consumer invites her friends. The party method works because the company has captive consumers who work as each other’s referrals. In addition to demonstration, salespeople also give useful tips regarding food and storage issues. While this method does not have an exponential recall. Many of the consumers get converted to salespeople/distributors and get more 6

3.1.2 Social Factors

Pokemons

reference groups

(aspirational groups) (dissociative groups).

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Lifebuoy

Tupperware Opinion leaders,

family

Table 3.1.7

Maruti Esteem

Sitting in her dad’s car a little girl checks out the power windows and asks, “Dadda, you

repeated “no” does not stop the little girl from questioning her father again. This time inspecting the backseat central armrest, she buzzes, “Haan nahin baba”. Tired of her father breaks into a laughter. Voice Over: “Maruti Suzuki Esteem car.” Super: “Big on mileage. Big on savings.” As the car stops at her school, the little girl grabs the car keys from her “dadda” and announces, “my daddy’s big car!” leaving her father smiling on the other side of the car.

TABLE 3.1 Initiator Influencer Decider Buyer User

Buying Roles The person who first suggests the idea of buying the product or service. The person whose view or advice influences the decision. The person who decides on any component of a buying decision: whether to buy, what to buy, how to buy, or where to buy. The person who makes the actual purchase. The person who consumes or uses the product or service.

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127

Figure 3.5 LG Kathak

FIGURE 3.5

Products formerly within the domain of the housewife are now often targeted to the urban male, reflecting a shift in buying roles.

3.5 A television commercial for LG Courtesy: Superbrands, Volume II, 2006. Reproduced with permission.

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a structured online questionnaire sent to them over email. The study revealed an increased homogeneity in the attitudes of children across the

APac respondents felt that their children decided their purchases based on what their

cent. While in India kids have an important role to play in the buying decision process, and hold the purse strings. Hence, any communication targeting kids cannot ignore or alienate parents. The study also indicated a lesser propensity of Indian kids to save for future purchases compared to APac kids in general. A difference in the purchasing pattern was also seen with Indian kids’ buying preference skewed towards toys and eatables, compared to APac kids’ preference for computer games, cassettes, CDs and audience and to utilize peer groups as a marketing channel. The results of the study also give insights regarding the design of promotions for kids.

role and status Figure 3.6, Parker Manikchand gutkha

3.1.3 Personal Factors

‘Unche log, unchi pasand,’

Saffola

Chapter 3 FIGURE 3.6

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129

Parker targets individuals fitting a certain role and status.

Fortune 500 company."

Courtesy: Lintas, Lowe. Reproduced with permission.

Communication for crack relief creams in India has almost always centred on the social embarrassment factor. The ‘chehre se raajrani, pairon se naukrani’ ad for Krack was Krack become the market leader in the foot care Vaseline Crack Relief also played up the poor image that women suffer from cracked heels by indicating that dirty (Exhibit 3.10).

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Vaseline’s ad agency

while doing housework, and hence common among women who could not afford a maid out how to give a strong and blatant message in a product category that was all about context since no woman would like to admit that she can’t afford help in the house.9

3.1.4 Psychological Factors

3.1.4.1 Motivation A motive

motivation

FIGURE 3.7

Maslow’s hierarchy of needs.

Source: Motivation and Personality, 2nd ed., by A. H. Maslow (Upper Saddle River, New Jersey: Prentice Hall, 1970).

Chapter 3

Understanding Consumer Behaviour

right time.

Maslow’s Hierarchy of Needs Theory:10

(Figure 3.7).

mothers. In Figure 3.8, Fisher-Price

FIGURE 3.8

By focusing on different needs, Fisher-Price motivates mothers to purchase.

Headline: The perfect toy is like mother’s love… Helps your baby learn and grow happily... Keeping him safe through it all. Bodycopy: For over 70 years, Fisher-Price has helped mothers develop their babies’ skills. Creating the right range of toys for each stage of baby’s growth till he is 4 years old. Tested in our Research Centre by toy experts. Thus giving your little baby the safest, most innovative, non-toxic toys as he grows. Making Fisher-Price toys the most trusted friends he has. Baseline: Toys you can trust.

Courtesy: Fisher-Price, O&M. Reproduced with permission.

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132

Herzberg’s Motivator-Hygiene Theory 11

Figure 3.8 nature of Fisher-Price

Freud’s Psychoanalytic Theory:12

motivation research

Hero Honda Pleasure

∑ ∑ ∑ ∑ 13

Chapter 3

Understanding Consumer Behaviour

3.1.4.2 Perception FIGURE 3.9 (a)

at Figures 3.9a-c

Vase or Faces.

Figure 3.9a

Figures 3.9b-c perception 14

As

Source: www.library.thinkquest.org

FIGURE 3.9 (b-c)

Are the colours moving or stationary?

Courtesy: Sony. Reproduced with permission.

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∑ The physical characteristics of the stimuli

∑ The context in which the stimuli is perceived social occasions. ∑ The individual perceiving the stimuli

phones, Nokia conducted a consumer research to understand people’s perception regarding the product category. The research revealed that Indians perceived CDMA CDMA phones initially rolled out in the market. Thus, people considered CDMA phones to be very basic and unimpressive. Nokia’s communication attempted to change this perception through a television commercial that positioned Nokia 1255 and Nokia 2255 Nokia CDMA phones were ‘dikhaane wali cheez’ was delivered in a loud and colourful Bollywood style. Based on the consumer insight that people consider mobile phones as an indicator of their status Nokia told the story of its phones being shown off through transparent pockets.15

∑ Selective attention:

selective attention.

Chapter 3

Understanding Consumer Behaviour

∑ Selective comprehension:

Nike’s

Mentos Mentos

FIGURE 3.10 (a)

An objective ad with an uncomplicated message by Boroline.

Courtesy: Superbrands, Volume I, 2004. Reproduced with permission.

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Boroline (Figure 3.10a)

FIGURE 3.10 (b)

Subjective ads that are left to a reader’s independent interpretation.

Safal, Safal’s

(Figure 3.10b). ∑ Selective retention: Information that is

Courtesy: Safal, Interact Vision. Reproduced with permission.

3.1.4.3 Learning Learning 17

behavioural Cognitive

Behavioural Learning Theories

18

stimulus-response orientation

Chapter 3

drive

Understanding Consumer Behaviour

137

cue

response respond Brilliant Brilliant’s success

positive reinforcement

Generalization Brilliant home. Discrimination

similar ones. Classical Conditioning:

unconditioned stimulus

unconditioned

response

conditioned stimulus

conditioned response.

contiguity repetition

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Case in Point

CASE IN POINT Jingles Help Evoke Positive Reactions of Titan According to the brand’s agency O&M, “Titan’s jingle is one of the strongest aspects of the the brand promises.” In fact, the jingle (unconditioned stimulus) has come to represent the brand (conditioned stimulus) itself such that both of them evoke the same feelings of pleasure and celebration (unconditioned and conditioned response) as a result of their Titan’s connection, in the ‘gifting’ commercials, the music only begins to play at the moment the daughter, parent or wife receiving the gift realizes that he or she has been gifted a Titan. To further strengthen the association, when Titan Titan showrooms or called in radio stations and hummed the tune, won a watch. Titan also refreshes and contemporizes its jingle with Watch commercials. Other advertisers have also contemporized jingles for old brands such as Nerolac Paints, Bajaj and Nirma in order to give new life to their ads while not shedding the popular lyrics and tunes that people are so well acquainted with, and that are the soul of the brands.19

Operant conditioning: reinforcement

operate

Marie 3.11b Rexona

Figure 3.11a, Digestive Figure

Chapter 3

for continuous reinforcement

Understanding Consumer Behaviour

FIGURE 3.11 (a) Digestive Marie encourages a response of switching to the brand by talking about its benefits.

partial or intermittent reinforcement

shaping

Courtesy: Parle, Everest. Reproduced with permission.

FIGURE 3.11 (b)

Communication shows the negative consequences of not using the product.

Courtesy: HUL, Lintas Lowe. Reproduced with permission.

Evaluation of Behavioural Learning Theories

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Cognitive Learning Theory

Cognitivism

20

3.1.4.4 Beliefs and Attitudes belief Maruti 800

Attitudes 21

The cognitive component Maruti 800

Maruti 800. The affective component

Chapter 3

Understanding Consumer Behaviour

khadi khadi behavioural component

khadi

in Figure 3.12a Dove in Figure 3.12b Surf Excel FIGURE 3.12 (a)

Dove offers incentives to influence behaviour.

Headline: Every woman can have beautiful hair as long as it’s damage-free Bodycopy: Now experience a complimentary Dove hairwash at a mall* near you. Get photographed and you are sure to be a part of the Dove Beautiful Hair Gallery. A select few will stand a chance to be featured in our communication**. For more information log on to www. dovebeautifulhair.com

Courtesy: HUL, O&M. Reproduced with permission.

(daag)

141

142

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Surf Excel influences people’s attitude

towards stains.

to Surf Excel

such as the characteristics of the target

22

The Multiattribute Attitude Model Courtesy: Lintas Lowe. Reproduced with permission.

others. The multiattribute attitude model

Maruti Zen

n

A =

 Bi ¥ E i i=1

A Bi Ei n

Strategies to Change Consumer Attitudes

i i

Chapter 3

Understanding Consumer Behaviour

∑ Changing consumers’ perceptions on the importance of an attribute:

Figure 3.13 Dove

FIGURE 3.13

Dove tries to increase the importance of the mildness of soaps.

Headline: “I treat my skin harshly, Bodycopy: they told me. Nonsense, I replied. I ‘ve been using this soap all my life. We’ll prove it’s harsh, they said, with a smile. I took out my soap. They took out a pH paper. In front of my eyes, the pH paper turned blue. I of course turned red. (You see the pH paper turns blue only when it touches a harsh soap.) They then tested Dove. The colour surprisingly didn’t change. Not one to give up easily, defiantly I told them, my skin is super smooth. They just smiled and said, try Dove, you’ll know the difference.” -Aditi Puri, after taking the Dove Mildness Test.

Courtesy: Dove, O&M. Reproduced with permission.

∑ Adding a new attribute to the attitude formation process: Samsung

∑ Changing or increasing the rating of a belief regarding an important attribute:

Dettol

Dettol

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its communication current. In a television

FIGURE 3.14 (a)

Comparison can be outright....

Dettol clever

∑ Changing or decreasing the rating of a belief regarding an attribute for a competing brand:

(Figure 3.14a) Thums Up Pepsi in Figure 3.14b. Thumps Up not name Pepsi Pepsi logo

Courtesy: Superbrands, Volume I, 2004. Reproduced with permission.

FIGURE 3.14 (b)

... or it can be subtle.

Courtesy: Thums up, Leo Burnett. Reproduced with permission.

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145

3.2 THE BUYING DECISION PROCESS

Makers Ltd., marketer of Medimix and other brands, launched operation Marketstorm result of the study. The most surprising result was that soaps were not consumed less, one brand while trying to spread the risk on a wider basket of brands. The study also revealed a shift in the consumption pattern of soaps with many consumers switching to brands in the economy segment such as Breeze, Godrej No.1, Nima, etc. It was also speculated that consumers were directing these savings, at the cost of cosmetics and

by opting for cheaper substitutes. Another reason for soap purchases coming down was the offering of soaps by marketers as freebies with other products, or as bonus packs with soaps themselves, in order to avoid consumers switching to other economy brands. With consumers not having to pay for soaps and with companies accounting a year.

(Figure 3.15-a). A

Figure 3.15-a serves as a useful

Figure 3.15-b

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FIGURE 3.15 (a-b)

A basic model of consumer decision-making.

a. Stages in the Consumer Decision-Making Process Problem recognition

Information search

Alternative evaluation

Purchase decision

Post-purchase evaluation

Integration

Learning

b. Relevant Internal Psychological Processes Motivation

Perception

Attitude formation

3.2.1 Problem Recognition need want

De Beers

Jeevansathi. com in Figure 3.16(a) FIGURE 3.16 (a)

Jeevansathi.com activates problem recognition through a banner ad.

Courtesy: Jeevansathi.com. Reproduced with permission.

Chapter 3 FIGURE 3.16 (b)

Understanding Consumer Behaviour

147

A click on the banner gives more reasons to choose the website.

Courtesy: Jeevansathi.com. Reproduced with permission.

Figure 3.16b Figure 3.17, Milton

Figure 3.18 Euroclean

the latest fashion.

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FIGURE 3.17 Milton suggests that its products can also be used for corporate gifting.

FIGURE 3.18

Euroclean helps consumers see a problem through scientific reasoning.

Courtesy: Superbrands, Volume II, 2006. Reproduced with permission.

Courtesy: Superbrands, Volume II, 2006. Reproduced with permission.

3.2.2 Information Search

internal search, alternatives.24

external search personal sources

commercial sources public sources

personal experience

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149

intentions and current major concerns of consumers across the globe. The ACNielsen

∑

electronic gadgets, brand reputation acts as a deciding factor. This is in contrast

∑ deciding factor in brand choice as consumers have little or no experience with many products and brands. This is in contrast with the US, where previous experience

∑ fashion, with the global average at 47 per cent. People rely strongly on visual presentation when selecting fashion and lifestyle products such as jewellery and watches. This suggests that these purchases are less likely to be researched and more likely to be spontaneous. Advertising and brand were the second and third

3.2.3 Evaluation of Alternatives

evoked set. top-of-the-mind awareness among consumers.

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MK, a premium brand of switches, was among the many switches available in the market. and faced consumer indifference. Although MK enjoyed reasonable equity with the business market comprising of architects, electricians, etc., it had low awareness was witnessing heavy advertisements by many brands. An assessment of the situation revealed that brands were positioned on attributes such as safety (Anchor), aesthetics (Crabtree), reliability (MK of it being of good quality. Thus, MK too felt the need to have its share of voice, and gain The idea for its communication campaign was born out of the insight that consumers on the rhyming of the words MK MK.’ to further drive in the message. The communication seemed to have attained its purpose. A MK MK” has become an accepted phrase in common language. Through the campaign, the brand has also created excitement among the trade community.

Functional consequences

etc. Psychological consequences

, Metlife India Insurance

Bodycopy: Someday. Someday, I will be friends with dirt tracks, lost sheep and myself. study the art of Bonsai. Not balance sheets. Someday, someone will airlift me from this

Chapter 3

Understanding Consumer Behaviour

Baseline:

MouthShut.com .

Integration Processes Figure 3.15 a-b

27

decision rules

heuristics

The affect heuristic

151

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28

Coca-Cola’s ‘Sir utha ke piyo,’ Raymond’s Surf ’s ‘Daag achche hai,’ consumers.

3.2.4 Purchase Decision

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Understanding Consumer Behaviour

153

3.2.5 Post-Purchase Behaviour

delighted

disappointed.

JK Tyre

months of ownership. The overall tyre performance, on the basis of importance, was point scale, JK Tyre received the highest ranking in India with an overall satisfaction The study found that among customers not reporting a problem, more than half say they would recommend their tyre brand to others.

cognitive dissonance or post-purchase dissonance.

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to.30

Wrigley’s

3.3 ALTERNATIVE BUYING DECISION PROCESSES

Summary

strategies. Figure 3.1

Chapter 3

Understanding Consumer Behaviour

affect its evaluation.

Exercise Dell Dell

Suggested Class Projects

155

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Critical Thinking Questions

CASE STUDY Tata Nano: Did it Read the Consumer Right?31 The Vision of a Dreamer

The Car of a Million Dreams Nano Nano

Nano

The Nano Volkswagen Beetle Nano’s

Chapter 3

Understanding Consumer Behaviour

Small Car, Big Expectations Nano The Financial Times Nano Nano

Nano Nano Nano Maruti 800s, Nano’s Nano Nano Nanos. Nano

Google Nano’s Tata Nano on Google Nano

Bumps Along the Way Nano Nano Nanos

Yahoo! Facebook

Orkut

157

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Nano

Nano Nano Nano

Nano

Nano Nano Maruti Alto Nano. Nano Nano Nano

Nano

Nano’s Nano Nano Nano that Nano

car such as the Alto Nano Nano

Chapter 3

Understanding Consumer Behaviour

Nano

Nano to raise

Nano Nano

Nano Nano

159

Nano Nano

Nano chatrooms on the Facebook Orkut

‘Khushiyon ki chaabi’

Nano Maruti Suzuki Alto Alto

Nano

Corrective measures

the car. The ‘Khushiyon ki chaabi’ Nano’s Nano Nano, ‘Khushiyon ki chaabi.’ Nano Nano Nano into

Nano her kajal ‘khushiyan’

Nano Nano their Nano “Tata Nano, aap ki khushiyon ki chaabi.”

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Nano Nano Nano for Nano’s

Nano

Facebook

Nano’s

Nano Nano Nano that even though Nano

Nano’s

Nano

Tata Nano

Nano Nano

Nano Nano

Nano Nano The 2012 Tata Nano Nano Nano featuring the Nano

Chapter 3

Nano

Understanding Consumer Behaviour

161

(Figure 3.19)

Nano

Nano

YouTube,

The Road Ahead Nano

Nano are

Questions Nano. Tata Nano Nano Nano ‘Kushiyon ki chaabi’ Nano Nano Nano

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FIGURE 3.19

Chapter 3

Understanding Consumer Behaviour

163

Endnotes Pitch Marketing Management

th

3. Economic and Political Weekly, Brand Speak, Marketing Management

th

com Motivation and Personality Work and the Nature of Man Handbook of Work and Organizational Psychology Journal of Advertising Research The Secret of Motivational Research in Global Marketing

Marketing Management

The Naked Consumer:

m

th

Consumer Behaviour

th

Introduction to Marketing Communications: An Integrated Approach The Hindu Business Line

Introduction to Marketing Communications: An Integrated Approach

Public Opinion Quarterly

Journal of Marketing,

m

164

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Advances in Consumer Research

Journal of Behavioral Decision Making n Brand Equity, Pitch The New York Times, The Hindu,

Chapter 4

Chapter 4

Understanding the Communications Process

165

Understanding the Communications Process Chapter Objectives

In Perspective

After reading this chapter, you will be able to: Understand the concept of communication and the communication process. Learn about the traditional and alternative consumer response hierarchies observed when consumers respond to messages, and realize their importance in promotional planning. Comprehend the concept of consumer involvement, its importance in message processing by consumers, and the factors and models that help in gauging consumer involvement. Understand cognitive processing, how it occurs, and how it works towards shaping attitudes towards ads.

Tring! Tring! Hutch is now Vodafone1 On September 21, 2007, India’s fourth largest telecom operator Hutch was renamed Vodafone with the world’s second largest mobile communications company Vodafone acquiring a majority stake in Hutch. The brand change was

O&M and covering all the important media. The client’s brief was simple – to register the message in the shortest possible time, to the largest possible audience set, in a very memorable manner. While communication in the telecom sector was cluttered and full of technology speak, Vodafone spoke to the consumer in a language that they understood. The agency started off with a simple introduction message: ‘Change is good. Hutch is now Vodafone.’ The main thought was to convey that nothing had changed except for the name, and the change was to accelerate towards even better services and experiences. The ads were remarkably straightforward and unpretentious (Figures 4.1a-b), the most striking of them all being the television commercial of the iconic Hutch pug returning after a walk to discover a whole new home. In the new communication, Vodafone has retained the popular pug, a Hutch hallmark, initially symbolic of the Hutch network. Albeit the pug Chika has been replaced with Vodafone’s Spikey. Hutch’s animated boy-girl duo has been initially used as mascot

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to introduce Vodafone to consumers, but plans are to replace it with a more contemporary boy-girl duo in subsequent campaigns. According to the agency, the Hutch duo is too symbolic of the old brand and hence the need for change. Hutch’s tagline, ‘Wherever you go, our network follows,’ will be retained by Vodafone for those commercials that are based around the network premise. Simultaneously, Vodafone’s global corporate thought, ‘Make the most of now’, is likely to be imported into India soon, although the idea used will be completely Indian, and not an adaptation of a foreign creative. Also, Hutch’s signature tune ‘You and I’ has been given a more energetic and chirpier beat for the Vodafone communication. The communication has also acquired a new colour and the background has changed from Hutch’s pink to Vodafone’s deep red.2 Other than the cosmetic changes, Vodafone has not gone for any image change, although its global image is rather energetic, dynamic and up-market compared to Hutch’s understated, mass-market image. Vodafone introduction ads were everywhere – as a customized ad addressed to each recipient and disguised as a false cover page on Businessworld magazine,3 in 24-hour exclusive monopolized advertising on STAR India Network channels from 9 pm to 9 pm,4 by integrating ads into content of television serials and shows, on billboards at busy locations, at over 370 Hutch dealer shops, on Internet and popular radio stations, and on Hutch cell phones. Through repetition, in as uncluttered a media environment as

FIGURE 4.1 (a) and (b)

Hutch communicates name change through simple and unpretentious ads.

For years you have have come to expect good things from Hutch, And now that we are Vodafone, with over 200 million customers in 25 countries, we will bring in a host of exciting products, thoughtful services and relevant solutions. And as always we'll do our best to live up to your expectations. www.vodafone.in

| 98200 98200

(a) Headline: Hutch is now Vodafone Bodycopy: For years you have come to expect good things from Hutch. And now that we are Vodafone, with over 200 million customers in 25 countries, we will bring in a host of exciting products, thoughtful services and relevant solutions. And as always we’ll do our best to live up to your expectations. www.vodafone.in

The film opens on a pug coming out of a pink kennel.

Running through forests and green fields it reaches a red kennel.

After a little inspection the pug gets into it from one side and comes out...

Chapter 4

...of the other. Super: Change is good.

Understanding the Communications Process

Super: Hutch is now Vodafone.

167

The ad ends as we see the pug settled comfortably in its new home.

(b) Courtesy: Hutch/Vodafone, O&M. Reproduced with permission.

The opening vignette illustrates that communication planning is a complex process although it may

4.1 WHAT IS COMMUNICATION? Communication

FIGURE 4.2

The Communication Process

Message

Sender/ Source Credibility Attractiveness Power Communication skills Culture Social system

Content, structure, format, tone

Encoding

Channel

Noise/Entropy

Feedback

Decoding

Message

Receiver

Comprehension skills Attitude Demographic profile Knowledge Culture Social system

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communication

Figure 4.2 process

message what Figure 2.8a-b

how Tanishq’s the what

how sender or source

receiver Figures 4.3a-b

Lead India campaign

The Times of India

Lead India

FIGURE 4.3 (a) and (b)

Popular celebrities serve as youth icons in the Lead India campaign.

4.3(a) Headline: You know, I have realised something... We Indians are obsessed about tomorrow. Why is it always, tomorrow will be a brighter day? Someday we will eradicate poverty? in the future we will be global superpower? I wonder what’s wrong with now? Why not today? If you think about it, perhaps the future of our country lies in each one of us realising one simple thing. Subhead: Maybe tomorrow actually begins today... Baseline: Seeking India’s future Leaders 4.3(b) Headline: Domination starts with DO.

Courtesy: Times of India, J.W.T. Reproduced with permission.

how

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encoding Figures 3.18c Bournvita

As discussed in the opening vignette, in the case of Hutch, the encoding of the message was kept quite simple. The ads were not laboured with any peripheral content but only a singular message of name change was given. Often, identifying the relevant message In addition to simplifying the message for Vodafone, the right symbols were borrowed from the old brand to lend continuity. Hutch’s trademark pug was initially symbolic of mobile network to signify that the Hutch network followed the mobile user wherever she went. Later, the pug metamorphosed into the face of the brand, a quintessential in all its communication. It remained the face of the brand when the company changed names, and stayed the face of the brand when the company changed hands and names in short order. Marketers believe that the pug has been a common factor between Hutch and Vodafone that are quite diverse in style and culture, and has helped in uniting them for the consumer. According to agency sources, the idea was to ensure that people don’t forget the old brand, but welcome the new one as an improvement over the old. The popular pug helped in serving the purpose.5 Similarly, Hutch’s boy-girl duo has been retained for the initial communications, the tag line has been maintained for network-oriented ads, tempo. However, Hutch’s pink colour has given way to Vodafone’s red. Since Hutch was a well-loved brand, Vodafone has continued to project all things which the customer found endearing.

channel

Vodafone Decoding Mumbai

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noise or

Vodafone tried limiting noise factors by targeting maximum singular attention in media. For instance, its deal with STAR India ensured no other commercials were aired, barring in-channel promos, on the group’s channels for 24 hours.6 The personalized ad in Businessworld also had the subscriber’s name (say X) printed on the false cover page so that it stated “Hello X, ...”, and went on to explain the transition and what was in store for the subscriber looking forward.7 Such tailored and prominently placed messages are likely to receive more attention than regular advertisements.

Feedback

4.2 COMMUNICATION RESPONSE HIERARCHY

Figure 4.4.

4.2.1 Traditional Consumer Response Hierarchy Models

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171

Traditional Consumer Response Hierarchy Models8.

Stages

AIDA model

Hierarchy of effects model

Innovation adoption model

Information processing model

Cognitive stage

Attention

Awareness Knowledge

Awareness

Presentation Attention Comprehension

Affective stage

Interest Desire

Liking Preference Conviction

Interest Evaluation

Yielding Retention

Behavioural stage

Action

Purchase

Trial Adoption

Behaviour

The AIDA response: ∑ Awareness

Hutch’s

∑ Interest:

presenting

Vodafone

FIGURE 4.5 Tyres made more interesting through the use of celebrities in communication.

entertaining Courtesy: Superbrands, Volume I, 2004. Reproduced with permission.

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JK Tyre Figure 4.5 ∑ Desire

Aquaguard 4.6a-b FIGURE 4.6 (a-b)

Rexona

Figures

Ads giving concrete reasons for use of the product in order to generate a purchase

desire.

Headline: You never know when the hand of fate will lead you to Mr. Right. Bodycopy: Don’t risk body odour. Use new Rexona Deo Roll On daily. It controls underarm sweat and gives you true all-day protection against body odour. Baseline: Rexona. It won’t let you down.

Courtesy: Lintas Lowe. Reproduced with permission.

Courtesy: Superbrands Volume, 2004 Reproduced with permission.

∑ Action:

Figure 4.7,

encourages

Chapter 4 FIGURE 4.7

Understanding the Communications Process

Surf Excel encourages purchase through a promotional offer.

Courtesy: Lintas Lowe. Reproduced with permission.

The hierarchy of effects model

The innovation adoption model,

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The information-processing model

∑ Inert Stage:

∑ Acquirement Stage:

∑ Decision Stage:

4.2.1.1 Evaluating the Traditional Consumer Response Hierarchy Models

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4.2.2 Alternative Response Hierarchies

Figure 4.8 FIGURE 4.8

Alternative models of information processing. Involvement with product High (Learning model) Cognitive High

Low (Low-involvement model) Cognitive

Affective Perceived product differentiation

Conative Conative (Dissonance/attribution model) Conative Low Affective

Cognitive

Affective

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∑ The Standard Learning Hierarchy:

Understanding that high-involvement products like consumer durables need to provide guidance and assurance to a consumer, Croma was launched in 2006 with an idea to provide just that. At that time, most of the multi-brand shops in the consumer durables and IT segments operated in the unorganized sector. Croma targeted people who were electronically aware, but were looking for retailers who could understand their requirements, simplify technology jargons and assist them with the right product. This was encapsulated in the brand’s philosophy, ‘We help you buy.’ Croma’s key differentiator customer. Today Croma has an average footfall of 10 lakh everyday across all stores, and a conversion rate of 22 per cent. It is further expecting a growth of 50 per cent in 2011, which can be largely credited to its understanding the changing needs of consumers in that segment.14

∑ The Dissonance/Attribution Hierarchy:

cognitive or post purchase dissonance

Figures 4.9a-b, Cummins

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India

consumers

FIGURE 4.9 (a-b)

Companies try to reduce post-purchase dissonance through their communication.

Headline: The best service isn’t just a phonecall away. Subhead: We answer before you call. That’s why we’ve won the award. Bodycopy: While other companies stop at call centres, Cummins India Limited, the largest manufacturer of diesel engines, goes further. Providing service even before you can make a call. That’s why Cummins Diesel Sales and Service (India) Limited (CDS&S), was awarded the Rajiv Gandhi National Quality Award, 1998 by the Bureau of Indian Standards Awards for Service Excellence. Through CDS&S, your service needs are addressed before you realise them. Before you see a problem, you have solutions waiting for you. Before you think up a question, there are answers. Now see the marriage of proactive service and the greatest power solutions on the planet at Power Solutions – The Exhibition. At the Air Force Ground, Subroto Park, New Delhi. A preview of the power technologies that will shape tomorrow. Empowering your business.

Courtesy: FCB-Ulka. Reproduced with permission.

∑

prospects

Headline: Quality is not an act, it is a habit. Bodycopy: Quality first. It’s strict adherence to this principle that has led to our exports multiplying. Our products are now exported to 101 countries accounting for 7.7% of India’s export revenue. Today, all our businesses are engaged in exports, catering to a consistently expanding customer base across Europe, Asia, USA and South America. Our exports worth $5.8 billion amount to 35% of our sales turnover of $16.7 billion. When you have innate consciousness for quality in everything you do, it figures. Baseline: Growth is Life.

Courtesy: Reliance Industries Ltd. Reproduced with permission.

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Mentos

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4.2.2.1 Evaluating the Alternative Response Hierarchies

4.3 CONSUMER INVOLVEMENT

Figure 4.10

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FIGURE 4.10

The concept of involvement Possible results of involvement

Antecedents of involvement Consumer factors - Needs - Interests - Importance - Values

Evoking counterarguments to ads

Involvement with:

Product or message factors - Product differentiation - Communication source - Content of communication

- Advertisements - Products - Purchase decisions

Situational factors - Purchase/use occasion

Ad effectiveness to induce purchase Relative importance of product class Perceived differences in product attributes Preference for a particular brand Influence of price on choice Amount of information search Time spent on evaluating alternatives Type of decision rule used in choice

4.3.1 The Foote, Cone and Belding (FCB) Model17 Figure 4.11

Chapter 4 FIGURE 4.11

Understanding the Communications Process

The FCB grid

THINKING H I G H

I N V O L V E M E N T

L I ON WV O L V E M E N T

FEELING

1. INFORMATIVE (THINKER)

2. AFFECTIVE (FEELER)

CAR-HOUSE-FURNISHINGS NEW PRODUCTS MODEL : LEARN-FEEL-DO (Economic?) Possible Implications

JEWELLERY-COSMETICSFASHION APPAREL-MOTORCYCLES MODEL : FEEL-LEARN-DO (Psychological?) Possible Implication

TEST:

TEST

MEDIA:

Recall Diagnostics Long Copy Format Reflective Vehicles

MEDIA:

Attitude Change Emotion Arousal Large Space Image Specials

CREATIVE: Specific Information Demonstration

CREATIVE: Executional Impact

3. HABIT FORMATION (DOERY)

4. SELF-SATISFACTION (REACTOR)

FOOD-HOUSEHOLD ITEMS MODEL: DO-LEARN-FEEL (Responsive?) Possible Implications

CIGARETTES-LIQUOR-CANDY DO-FEEL-LEARN MODEL: (Social?) Possible Implications

TEST:

Sales

TEST:

Sales

MEDIA:

Small Space Ads 10 Second I.D.'s Radio; POS

MEDIA:

Billboards Newspapers POS

CREATIVE: Reminder

CREATIVE: Attention

informative strategy

affective strategy

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The habit formation strategy

In the current times, cellular services have also become a relatively low-involvement, thinking-oriented product. Product differentiation is also low – all mobile service operators have more or less the same plans and offer the same services with the same add-ons. These brands have high awareness, not equity, which is why brand loyalty is low and mobile service operators are forced to lock customers in with contracts. Unlike with cellular handsets, with mobile services, consumers do not get involved in the purchase concerned with is where to pay the bill or buy the next prepaid card. Network connectivity, except for extremely remote locations, is almost the same for all brands, with individual strong and weak pockets. Thus brand names do not matter as yet. Hutch, now Vodafone, spent heavily on advertising and communication, but it still had a relatively shallow brand image. However, Vodafone had been wise to retain in the initial period, certain accumulated properties of Hutch such as its pug or signature tune. In view of the nature of the product, Vodafone’s decision to quickly migrate Hutch customers to its name was wise. All it needed to do at this stage was spend enough to create mass awareness through repetition. And consumers were automatically migrated

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with the next bill. Conventional wisdom also says that in the case of service products, post-sales service activities, such as billing, customer care, and consumer experience are more important than the brand name. Thus, Hutch’s suggestion that only the name has changed and the change would lead to even better services, serves as a reassurance for existing consumers so as not to create any post-purchase dissonance.

4.3.2 The Kim-Lord Model18

Figure 4.12

Figure 4.13

Odomos Odomos Odomos

FIGURE 4.12

The Kim-Lord Grid Affective involvement (Feeling) Low High

High

Computer Camera Cooking oil

Car Skin lotion Perfume

Detergent Salt Candles

Greeting card Burger Cigarettes

Cognitive involvement (Thinking) Low

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FIGURE 4.13

Communication for products that are high on cognitive and affective counts.

Courtesy: Superbrands Volume 1, 2004. Reproduced with permission.

4.4 PROCESSING COMMUNICATIONS COGNITIVELY

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185

cognitive responses –

Figure 4.14

FIGURE 4.14

A model of cognitive response Cognitive responses Product/ message thoughts

Exposure to advertisement

Attitude

Brand attitudes

Source-oriented thoughts

Ad execution thoughts

Purchase intention

Purchase intention

Attitude towards the advertisement

∑ Product/Message Thoughts: Counterarguments are

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support arguments are thoughts that assert the claims in

∑ Source-Oriented Thoughts:

source derogations source bolsters Lead India campaign in Figures 4.3a-b

∑ Ad-Execution Thoughts:

attitude towards an ad

4.4.1 The Elaboration Likelihood Model (ELM)23

(Figure 4.15)

Chapter 4

FIGURE 4.15

Understanding the Communications Process

The ELM Model.

Persuasive Communication Temporary Attitude Shift Motivated to Process? Issue involvement, relevance, commitment, dissonance arousal need for cognition, etc.

No

Yes Peripheral Cues present? Attractive source, music, hum or visuals, etc.

Yes No Ability to Process? Distraction, message comprehensibility, issue familiarity, appropriate schema, fear arousal, etc. Yes

Yes

Nature of Active Cognitive Processing: (Initial attitude, argument quality, etc.) Favourable Thoughts Predominate

Unfavourable Neither or Neutral Thoughts Predominate Predominate

Cognitive Structure Change: Are new cognitions adopted and stored in memory? Are different responses made salient than previously?

Yes Enduring Positive Attitude Change (Persuasion)

Retain or Regain Initial Attitude No

Yes Enduring Negative Attitude Change (Boomerang)

motivation

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The central route to persuasion

peripheral route to persuasion

Figure 4.16 FIGURE 4.16

Find out the peripheral cues in this ad.

Headline: Skindulgence Bodycopy: Indulge your skin with New Lux Chocolate Seduction Soap. Rich with real cocoa and strawberry vitamins, it nourishes your skin and leaves it looking deliciously gorgeous. Chocolate Seduction is a special offering from Lux, a part of our Celebration Range to mark 75 years of stardom. Baseline: 75 years of stardom

Courtesy: Lux, JWT. Reproduced with permission.

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Lux

4.4.2 Evaluation of the ELM Model

Odomos

Exhibit Chapter

9

Headline: There are better ways to project your child from Dengue and Chikungunya. Subhead: Introducing Advanced Odomos. Bodycopy: We all know that mosquito bites can result in deadly diseases like Dengue, Chikungunya and Malaria. These diseases are caused by either the Aedes or Anopheles mosquitoes, which can bite you anytime, day or night. In fact, the risk of mosquito bites during the day is very high, especially when you are out of home. Advanced Odomos is

Applied on exposed skin, Odomos forms a protective shield around you which prevents on skin. It also comes in a non-sticky format with a pleasant fragrance. Get the new Odomos for your family and enjoy life without any fear.

Summary

Figure 4.2 illustrates

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Exercise

services such as Vodafone

Hutch Vodafone

Suggested Class Projects

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Critical Thinking Questions

CASE STUDY Hero Motocorp takes a forward leap with ‘Hum mein hai Hero’

A New Brand Identity

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Hum Mein Hai Hero Annexure 4.1

Hero

Har Hindustani mein ek Hero hai, aur aaj iss desh ki dhadkan ka ek naya naam hai. Aapka Hero Honda ab hai Hero Motocorp Desh ki dhadkan

Hum Mein Hai Hero

The Journey Ahead

Questions Figure 4.2 Hum mein hai Hero

Chapter 4

Understanding the Communications Process

Hum mein hai Hero

Annexure 4.1 LYRICS OF THE ‘Hum mein hai Hero’ SONG Hone ko hai aaghaaz

O.. Khwabon se aage jaana hai Humi se toh ummeedein hain Hami pe hain nigaahe bhi Hami pe to bharosa hai Hum mein hai Hero Hum Mein hai Hero

Hum mein hai hero Hum mein hai hero...

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Endnotes

com

com

th

Diffusion of Innovations and Management Science in Marketing

Research, th

of Consumer Research

Chapter 4

change,

in

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Chapter 5 The World of Marketing Communication Agencies Chapter Objectives

In Perspective

After reading this chapter, you will be able to: Understand the origin and role of marketing communication agencies Learn about the various players in the communication world Comprehend the dynamics of an advertising agency

Kohinoor Advertising Agency

Kohinoor advertising agency was amongst the top ten marketing communication agencies with a client list comprising the who’s who in the industry. However, its recent assignment with Nutraworld Pharmaceuticals (NP) was proving to be quite a challenge. The project comprised promoting a protein powder to active and health-conscious consumers. The client servicing department had played a key role in building relations with NP and gaining the project after a full-blooded IMC pitch. The assignment was secured on 15% commission, which was at par with industry standards. Kohinoor’s account planner had also done excellent work in understanding consumers’ perceptions on protein additives. But it was the creative production house. Film production rates were abysmally high and the client’s budget not large enough to accommodate them. Finally, it was decided to do away with television media and use only print and outdoor. Kohinoor outsourced the product photography

presented to the client, NP’s Vice President (Marketing) was all praise for it. However, given that the nutraceutical market was in a nascent stage, Kohinoor and NP decided to run the campaign with ASCI and ensure that they were in the clear of any legal/technical issues.

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The opening vignette illustrates the dynamics of the marketing communication agency world. In this chapter, we shall learn more about the environment surrounding communication agencies.

5.1 INTRODUCTION TO MARKETING COMMUNICATION AGENCIES Marketing communication has become a big business today – both in terms of complexity and

communication campaigns. Communication agencies are the answers to communication related challenges faced by businesses in their day-to-day operations. The communication agency is an entity an access to a pool of creative professionals for preparing communication campaigns, a sound knowledge of executing communication programmes, the right contacts for securing placement in media, and several other skills vital to bringing value to their client organizations. Whether it is a sole entrepreneur who wants to place ads in the media, or a large business house that wants to create an and services of professional communication agencies. Most of them were just agents for procuring advertising space in newspapers. However, the burning the knowhow for preparing ads, shied away from advertising. Eventually, agencies started to provide Taylor in 1786. But the roots of the modern day advertising agency, as we know it, were established large amounts of space in various newspapers at discounted rates, and then resold it at higher rates to advertisers. The actual ad was still prepared by the organization advertising its product. In the late

In India, as we have seen in Annexure 1.3

advertising then took off with India becoming a noteworthy market for products and media becoming

or launched subsidiaries specializing in public relations, sales promotions, event management, etc. On one hand, agencies grew their portfolio of service offerings and started gaining business

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specialized agencies to complement their own offering. The global communication agency landscape saw sweeping changes in terms of consolidation of agencies through the formation of holding groups. Holding companies control many agencies as subsidiaries under their wing. Today, there are four major international groups – WPP, Omnicom, Publicis Groupe, and Interpublic – each of whom controls a large number of different agency brands across the globe. Holding groups are not much involved with the day-to-day running of the agencies, but mainly concern themselves with devising

and Hakuhodo DY. Table 5.1 lists some of the agencies controlled by the top holding groups, which etc.1 TABLE 5.1

Major Holding Companies in the World

Holding Group

Agencies Controlled by the Group

WPP: British marketing giant that overtook longtime rival Omnicom for the first time in 2008 to become the world's biggest and most profitable marketing group.

WPP now owns four of the world's largest advertising agencies namely JWT, Ogilvy & Mather, Young & Rubicam and Grey. These are partnered by the four global media networks – Mindshare, MEC, Mediacom and Maxus, under the overall banner of Group M. WPP also controls a substantial portfolio of market research, PR, direct marketing, design and consultancy subsidiaries.

Omnicom: Pushed to the second position by WPP but has seen a lot of organic growth from its investments.

Omnicom, the world's second largest marketing services group, is led by the global advertising networks of BBDO, DDB and TBWA, media buying network OMD Worldwide, and marketing services companies including PR giant Fleishman-Hillard, digital and direct marketer Rapp, and branding agencies Interbrand and Wolff Olins.

Publicis Groupe: French holding group that is especially strong in digital marketing.

Publicis made a series of acquisitions including Saatchi & Saatchi, Leo Burnett, creative networks Bartle Bogle Hegarty and Fallon, digital agencies Digitas and Razorfish, etc. Its Starcom MediaVest media arm is the world's biggest planner and buyer, partnered by Zenith Optimedia. Till 2012, the group also had a strategic alliance with Dentsu, which gave it a strong position in the US and Japanese markets.

Interpublic (IPG): A group that has struggled since the 2000s with a series of challenges in its portfolio, but still remains among the top four.

IPG's lead advertising network is McCann Worldgroup, one of the original pioneers in modern global marketing, supported by integrated network Draftfcb, and a diverse collection of other shops that include creative agencies Lowe & Deutsch, PR giant Weber Shandwick, and digital specialist R/GA. Its media networks include UM and Initiative.

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5.2 PLAYERS IN THE COMMUNICATION WORLD 5.2.1 The Advertiser/Communicator/Client The person or organization that has a product to advertise, the funds to pay for it, and that kicks off the communication process is called an advertiser. The advertiser can be more appropriately called the communicator employed. When a communicator takes help of an outside agency to create and execute campaigns, it becomes a client or an account of the agency – a term popularly used to refer to advertisers. The client is responsible for deciding the purpose of communication, the markets to reach, the communicator may have an internal promotions department that may either substitute for an outside agency, or work alongside it.

largest advertisers in India spending liberally through various public service campaigns. Its spend of 2

Thus, the communicator is the source of business for an agency.

5.2.2 The Agency Marketing communication agencies are in the business of creating, producing, placing, and managing communication campaigns for their clients. Being independent from the client, they can provide unprejudiced view to a communication problem, and an objective and dispassionate view of the product and market conditions. In addition, it is for their professionalism, expertise and competence ∑ Full-service Agencies: Full-scale agencies typically have creative and strategic expertise, research services, media planning capabilities, and production capabilities. In addition to advertising services, full service agencies may also offer other services such as strategic market research and planning, sales promotion, direct marketing, public relations, digital marketing, event management, etc. Companies see several advantages in retaining full-service agencies. Since media planning is integrated with creative design work, media personnel also participate in the creative thinking process and the agency is able to arrive at media-driven strategies. Similarly, with the integration of production functions, creative personnel are able to understand production possibilities and limitations, and better able to schedule processes. When non-advertising communication functions are integrated in the agency, the client gets

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communication networks, comprises several agencies in a decentralized format, and offers a range of communication solutions catering to varied needs of their clients. The company has

∑ Specialized/A La Carte Agencies: Specialized agencies, on the other hand, are vertical agencies, i.e. they do not offer the expanse of services offered by a full-service agency, but specialize in certain functions, audiences, or industries. In-house agencies and freelancers fall under this category. Industry-focused agencies have a lot of expertise and knowledge regarding the how – information technology, healthcare, agriculture, etc. For instance, the DDB Mudra of the healthcare business, consumers and doctors, as well as channel insight. agencies are scarce in India, but in the U.S., agencies that concentrate on ethnic groups like the

branding, packaging, etc. There are of course a few

that exclusively service

and other services, whereas the agency Group M has specialized cells for its clients Unilever of Mudra, provides services such as communication globalization, translation, and localization across markets and languages. We will discuss more on specialized agencies offering non∑ Creative Boutiques: These are specialized agencies that focus on the creative elements of advertising, and offer only creative services. They are handed their strategic brief by larger or full-service agencies hard-pressed for time, or by advertisers directly who may want only the

Sajit Surendran started as an art director at Mudra and had worked for several years on mega brands like Rasna, Vimal, Dhara clients such as Jade Blue, an apparel retailer, have followed him to the new agency.

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∑ Media Buying Agencies: These are also a kind of specialized function agencies that focus on the planning and purchase of media real estate for their clients. They are adept in the analysis and buying of radio and television time, newspaper space, etc. Their expertise lies in negotiating optimal price and placement to secure the best value for their clients. They may generally carried out by the media department of an advertising agency. However, many fullservice agencies have separated media from creative in a bid to reorganize all their departments

Many full-service agencies have discovered that by clubbing media purchases for several get superior results. The growing complexity of media decisions and purchase procedures has also greatly increased the importance of media agencies. Group M, Zenith Media, Madison Media, Carat, Starcom, Optimum Media Solutions, etc. are some of the large media buying agencies. Currently, some of the fastest growing agencies are the ones that have been focusing on the entertainment media. ∑ In-House Agencies: In-house agencies are set up and operated by the advertising organization. Companies that need tighter control over communication or have mammoth promotion name for advertising or communication departments, but others can be big enough to handle

Vimal brand being its than outside agencies. Having an in-house agency substantially reduces costs by saving on agency commission payments. In-house agencies particularly make sense for communicators whose promotion work is large enough to give them the size-related economies realized by an independent agency serving numerous clients. Further, ownership of an in-house agency rests with the communicator, allowing for greater control over the assignment of personnel, scheduling and coordinating of tasks, etc. than with an independent agency serving several clients. Besides, communicators have better knowledge about their own industry and

house agencies also retain external agencies for additional support. The professionalism of specialized communication agencies, their creative or media expertise, their objectivity some advantages that make them indispensible by in-house agencies at times. One of the biggest challenges faced by in-house agencies is attracting and retaining creative personnel as effectively as an independent agency. Thus, the decision to retain an outside agency should

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when it is not.

CASE IN POINT Vertical Integration is on the Rise3 house advertising agencies is on the rise, primarily due to considerations of cost and control. With widespread abandonment of commission-based agency compensation and the unbundling of agency services, barriers that once discouraged the establishment of inhouse agencies have long since fallen away. A recent study by Harvard Business School professor emeritus Alvin J. Silk and colleagues found that almost half of U.S. advertisers operated some form of in-house advertising unit in the 1990s, a trend apparently on the increase. In the current decade, Procter & Gamble, Google, and Condé Nast Media Group have all introduced internal advertising units. Another study by The Association large national advertisers) have established some form of internal advertising units, or limited functions, such as those related to producing marketing collateral (97%), internal communications (82%), internal videos (69%), brand identity (66%), direct mail (65%) and Website development (65%), and still consulted external agencies for full-

spots. While the ANA survey shows that in-house agencies are used for limited jobs, observations by some industry professionals point to a change in this trend. Many multinationals have brands that are huge with massive worldwide presence. In order to better control and integrate communication for such brands, these companies are forming in-house agencies that have in excess of 150 dedicated in-house professionals working across all marketing functions. They have departments such as SEO, social networks, analytics, PR, and every other function of marketing with all content being produced in house by extensive teams of creative people too. Some of these agencies also have talent moving in from independent communication agencies.

∑ Marketing Service Agencies: This term is used to refer to almost anything other than advertising in the media and communications arena, and often includes allied marketing functions offered by agencies. In that sense, it is a rather hazy term, which may refer to anything from marketing research to customer relationship management to below-the-line communication. Sometimes, marketing service agencies may also offer advertising, replicating the full-service agency model. However, traditionally, they are largely execution-based, i.e. a large client would employ an advertising agency to come up with its main advertising concept, and would then hire the appropriate marketing services agency to carry out that concept in other forms. However, the lines between these different disciplines have become blurred, especially with the emergence of the Internet as a major advertising medium. Nevertheless, the

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key difference between advertising and marketing service agencies is that the latter specialize

the marketing service agencies may be doing customer or product research that advertising/ communication agencies might need for formulating strategies, conducting events at a point of purchase, executing sales promotional marketing, sending direct mailers, specializing in website development, etc. They may be offering one or more of these services packaged

5.2.3 The Media Media comprises the channels or vehicles that carry messages from the communicator to the consumer. To the consumers, media sellers provide information or entertainment, whereas to the communicators they provide an environment and audience for promotion of products by selling them space or time. Mass media reaches several consumers at the same time and includes print, television, radio, outdoor, etc. Today there are also several other niche or personal media that reach more select audiences such as direct mail, the Internet, special events, personal selling, etc. With the burgeoning of mass and niche media, communicators are faced with problems of plenty – fragmented audiences,

schedule space or time, and the like in the most optimum manner for their clients. On their part, media sellers provide useful research information that helps buyers in making editorial or programming content, etc. on the basis of which they pitch their medium to the client. mechanical movable type which later came to be century. Books, newspapers, periodicals and pamphlets started becoming popular thanks to advances in printmaking technology. Print media was the dawn of mass communication. Recorded audio century. The recording and reproduction of moving pictures was next. Cinema emerged as a third The next decade heralded the age of broadcast media with the invention of radio transmissions television. Over the next few decades, radio and TV programming became extremely popular and started dominating a very popular form of mass media with an attentive audience. Today, most radio programmes are

Internet

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means of multimedia document distribution. The Web laid the foundations for Internet advertising which today fuels Internet giants like Google and Facebook. If the Internet has provided a unique, interactive and inexpensive delivery platform to the world of advertising, it is in fact advertising that has supported and catalysed the growth of the Internet itself! The Internet would be largely ineffective without free services such as web-based e-mail, search engines and social networks. The titans of the Internet – the likes of Yahoo, Hotmail, Google and Facebook grow and thrive purely from revenue generated by advertising. The Web and Advertising are truly two symbiotic forces.

The turn of the millennium brought about yet another digital revolution – mobile phones.

screens being Cinema, TV and the Internet powered Desktop Computer respectively. Seven mass media rule our society today – print, recordings, movies, radio, TV, Internet and mobile purpose. Traditionally advertising agencies used to encompass a wide variety of mass media. However,

There are several dimensions and factors to be understood about the various media types. Previously, all mass media was unilateral – one-way dissemination of information. The Internet interactivity and portability to the next level. Interactivity is now seen and recognized as a game the way of the dinosaur. The 2012 state legislative assembly elections in Gujarat saw a totally new style in election campaigning. The two largest contestants – the BJP and the Congress party went all out on all media fronts. Strategically placed Internet advertising emerged as one of the strongest campaigning mechanisms even though paradoxically it is said that and TV audiences. The effectiveness of Internet advertising was thanks to the vast penetration of smart phones. Today, free mobile apps largely rely on an ad-supported revenue, backed by the same Internet advertisers that were once limited to only desktop screens.

with very little cost.

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Korean Pop singer PSY released a video single on YouTube on July 15 2012. The of the Internet to be viewed more than a billion times. On January 1 2013, Gangnam Style had over 1.1 billion views on YouTube.4 Gangnam Style has demonstrated the power of the Internet to reach audiences worldwide transcending geography, language, culture and politics. Once again, the point has been proved that what eventually matters is content. Content is what makes campaigns go “viral” on the Internet.

Measuring the effectiveness of mass media is in itself a sub-industry within the marketing communications ecosystem. Media representatives and media analysis companies are engaged in compiling and providing statistical information about media consumption and performance. Metrics

5.2.4 The Freelancers Freelancers are consultants or self-employed professionals that assist advertisers, agencies, or the

they may be part of a network of other freelancers with whom they partner on need basis. Freelancers are hired for their specialized expertise and for the fresh perspective they bring as outsiders. They

5.2.5 The Third Parties Some third parties bridging the divide among advertisers, agencies, and media have also spawned in the recent times. For example, in an age when client-agency relationship has strained due to

recent times advertisers and media both have become more receptive to audits, thus bringing more long partnerships, and enables performance-based remunerations to agencies.

5.2.6 The Audience The target audience comprises the intended consumers of advertising. They are at the base of any

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purchasers, users and the like. It is important to know the consumer and create advertising that speaks

5.2.7 The Regulators Every industry needs its watchdogs to function justly and honourably. The communication industry, however, is not very tightly governed and much of the policing is in the form of self-regulation. The to be struck on creative freedom and walking into offensive territory. Self-regulation has its merits and demerits. However, every now and then, a campaign pushes the envelope too far and creates controversy and negative impact, prompting for an independent regulatory agency. The paradoxical

Controversial Publicity? “There’s no such thing called ‘bad publicity’ and ‘good publicity’. There’s only publicity.”, remarked a friend of mine who works in an electronic marketing agency in the United States. He was being sarcastic of course. While everyone likes masala and tamasha, in the long run, scandals and controversies are never fruitful. They do generate a left a positive impact. Deliberate controversies and scandals can quickly get out of hand and in today’s times can also invite a lot of legal pressure. Controversy is a strange game. To quote a line from one of my favourite movies, War Games, “The only winning move is not to play”.

1. The Ministry of Information and Broadcasting of the Govt. of India

5.2.7.1 Role of the Ministry of Information and Broadcasting The Ministry of Information and Broadcasting is the nodal government body controlling several

and marketing campaigns should not violate the laws of the land. For example, the ministry has made it illegal to advertise alcohol and tobacco products, including paan masala, in India, which may not be the case in other countries. The Government of India has created the Prasar Bharati Corporation which comprises Doordarshan talk about content that is not permitted, advertising that may lead to

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violence or hate crimes, advertising that is derogatory to the nation and the Indian Constitution, advertising that promotes intoxicants, preservation of the dignity of women, prevention of racial discrimination, misrepresentation of products or services, ensure that advertising remains free of towards advertising targeted at children. The code also states that all entities engaged in advertising are strongly recommended to familiarize ∑ ∑ ∑ ∑ ∑ ∑ ∑ ∑ ∑ ∑ ∑ ∑ ∑ ∑ Code of Standards in relation to the advertising of medicine and treatments. ∑

5.2.7.2 Role of the Indian Newspaper Society (INS) The origins of the Indian Newspaper Society can be traced back to 1927 when it was formed in concerns itself with the interests of the print media, with its primary objective to ensure proper and timely payments to the publications as per the release orders through a system called the Monthly 6

∑ To act as a central organization of the Press of India. ∑ To promote and safeguard such business interests of members as are affected or are likely to

∑ ∑ ∑ ∑

bodies and associations or organizations commercial or formed for any other purpose and to take such steps as may seem desirable to that end. To make rules to govern the conduct of its members, to provide penalties for the infringement thereof, and to provide means of determining whether there has been such infringement. To collect information upon all topics having a practical interest for members and to communicate the same to them. To promote co-operation in all matters affecting the common interests of members. To hold periodic conferences of its members to discuss and determine action on matters of common interest.

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5.2.7.3 Role of the Indian Broadcasting Federation (IBF) does for print media. The IBF came together in 1999 and today consists of broadcasters representing 7

∑ Cable Networks ∑ ∑ ∑ ∑ IBF also provides uplinking and downlinking guidelines from India, and appropriate applicability of

5.2.7.4 Role of the Advertising Standards Council of India (ASCI)

effort by advertisers, agencies, media, public relations agencies, market research agencies and others.

violation of which results in a breach of the rules of the Government of India.

of 21 members, 12 of which are eminent personalities not associated with the advertising industry and 9 are professionals belonging to the advertising industry. with the following objectives8 ∑ ensure that claims made through advertisements are truthful and honest, ∑ safeguard consumers against misleading advertising, ∑ ensure that advertising remains non-offensive and falls within accepted norms of public decency, ∑ safeguard against the advertising of products or services that are detrimental and dangerous to society or individuals, ∑ advertisers and advertisements observe fairness in competition and fall within the limits of acceptable competitive behaviour.

addressed by the council.

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standards a part of a legal advertising code framework.

5.3 ADVERTISING AGENCIES Since the advertising agency is the oldest and the most developed agency format of all communication agencies, we shall review some of the aspects related to it in greater detail. The formats of other

5.3.1 Agency Pitches pitch is thus an effort to sell or endorse an agency to a prospective client, often while competing with other agencies in the fray, in order to win the business to promote a product. In other words, it describes the proposals of an advertising agency to promote demonstrate that an agency can use the marketing budget effectively to create greater value for a brand. Pitches are typically called for by clients and agencies are invited to participate. The pitching agencies usually go through the process of sending a written proposal and following up with a presentation to the client. Clients may even ask their existing agencies to make a pitch when their account comes up for review. Making pitches is an expensive and time-consuming process, and has some risks associated with them. It is not uncommon to see that in spite of clients promising never to use ideas presented during pitches by losing agencies, somehow the really good ideas eventually end up being used at some stage – either by design or inadvertently. Usually agencies have to bear the pitching costs themselves, but sometimes some clients might compensate the participating agencies for expenses. ∑ Agency credentials pitch: When clients are looking for agencies with particular knowledge and expertise for their business sector, they may just want to review the reputation, client list, creative work, creative talent, and case histories of shortlisted agencies. This is an agency

contract. ∑ Strategy pitch:

∑ Creative pitch: In a creative pitch, an agency has to present its version of the creative when a company wants an agency to demonstrate that it is creative, innovative, and the best

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group to promote its product. Creative campaigns include presentation of ideas, designs, media, and the rationale behind it all. It may include artwork for different media – print, broadcast, online, social, outdoor, etc. Preparing creative pitches can be very time-consuming

of changing agencies, but is only scouting for fresh ideas. For the agency, it may only be a

not participating in pitches. ∑ IMC pitch: This is a full-scale pitch that includes the development of the strategy as well as the creative, and maybe even a media strategy. IMC pitches may include many other activation, etc.

5.3.2 Functions of Ad Agencies core and ancillary, or non-core, functions. Figure 5.1 a typical ad agency, which we shall discuss in detail. FIGURE 5.1

Functions of advertising agency. Client servicing account planning Core functions

Creative (Art and Copy) Media (Planning and Buying)

Ad agency

Studio operations Production (Print, TV, Radio, Outdoor) Ancillary functions HR Finance legal administration

5.3.2.1 Client Servicing / Account Planning “If the customer wants vanilla, give them vanilla.” completion, account management is a vital function of an ad agency. Client servicing begins by obtaining a brief from the customer. The client servicing representative interfacing with the client has to understand their marketing strategy and interpret it into a suitable advertising campaign strategy. ideas back and forth between the two parties.

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excessive shuttling of ideas tends to cause both parties to lose focus and stray away from coming to a conclusive and cohesive advertising strategy. To keep things moving towards a common objective, ad account planning. advertising campaign. Many ad agencies have opted for a distinct account planning function, along with client servicing. Individuals who have more of a research-oriented mindset make for better account planners, while those with good interpersonal communication skills and marketing acumen are better tuned to client servicing.

5.3.2.2 Creative (Art and Copy) In the minds of people, the most common conception of an ad agency are a bunch of creative artists produces all the content – billboards, print ads, TV commercials, radio jingles–that is eventually disseminated to the intended target audience.

individuals responsible for visual elements and written matter. Copywriters work on generating all the written matter, whereas art persons come up with all the visual elements. However, nothing can be stereotyped when it comes to creativity. There have been many instances where good headlines have originated from art directors and stunning visual ideas have sprung from copywriters! and written copywriting skills. Creative directors, or CDs in the ad world parlance, have the ability not only to guide the copy and art streams but also to single-handedly visualise and write ad campaigns.

5.3.2.3 Media (Planning and Buying) It is the activity of the media department that brings the commercial focus into an ad agency. The There are two key individuals at work in a media department. Media planners prepare a media from the media, through a balance of strong relationships and tough negotiations. With a plethora of media options opening up and media rates changing dynamically, it often happens that media

a VP media or a media director, with media planners and media buyers reporting to them. Media management has become so competitive that many media departments have spun off as their own businesses as independent media houses. In India, Group M. Madison Media, Carat, Starcom and Optimum Media Solutions are such examples.

5.3.2.4 Ancillary Functions ∑ Studio Operations: the output of the creative department into a print or broadcast ready format. Today, studio

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software has made it very easy to transform the creative material into media ready formats. ∑ Production (Print/TV/Radio/Outdoor): Media production is usually an outsourced function. department works mainly in co-ordinating production tasks with external suppliers. ∑ HR: performance appraisal and compensation. In an increasingly competitive industry, it is the individuals who make the vital difference. Spotting and retaining talent is a very challenging function. ∑ Finance/Legal Administration: The importance of this oft overlooked function comes to light during times of adversity. Clients who default payments, legal issues brought forth by regulators or consumer complaints, and other money and regulatory matters are handled by

5.3.3 Centralized vs. Decentralized Agencies

decentralized approach in handling their business. In a centralized approach, most of the core functions such as the media and creative departments approach calls for having full service teams located all their key branch locations. There are no set guidelines on whether to follow one approach or another. The two factors that Does the management like to retain key functions at the centre, or does the management feel comfortable in choosing and assigning employees with an entrepreneurial bent of mind to run branch

when deciding a centralized approach over a decentralized one, or vice versa.

5.3.4 Agency Compensation them. Some agencies have even charged commissions on the jobs outsourced by them – photography, media buys for their clients. The commission system is still prevalent in many agencies today, but

maintain a rate card for the various services they provide. Table 5.2 shows the rate card for one such startup advertising agency. Flat fees may also be in the form of a monthly retainer or a project-based

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prevalent. In this system, a percentage of the fees is reliant on the achievement of objectives set by the client and agency. TABLE 5.2

Rate Card

CAMPAIGN & STRATEGY CAMPAIGN–Only Schemes & Promotions

Amount in Rupees 20,000 to 45,000

CAMPAIGN–Brand Launch/ Annual campaign/ Seasonal campaign

40,000 to 1,50,000

Strategy Presentation

40,000 to 1,50,000

Press Advertisements (Standalone Tactical Ads) Minimum Design Charges

2,500

Design / Copy Adaptation

1,000

Translation charges

750

Press Advertisements (F.D. Ads / Appointment / Tender Notice / Chairman’s Speech, etc. Only Layout and Type Settings) Minimum Charges

1,000

Design / Copy Adaptation

500

Translation charges

500

Press Advertisements (Strategic Advertisements) Single Ad Print Campaign

2,500–5,000 10,000–15,000

Stationery Logo Design All Stationery Items (Letterhead, Envelopes, Visiting, Cards & Invoices) Corporate Identity

7,500 to 10,000 7,500 20,000 to 50,000

Packing (Product) 1. Box

7,500 to 20,000

2. Label

2,000 to 10,000

3. Pouch

2,000 to 10,000

4. Foil

1,500 to 8,000

Dummy making charges Rs. 750–2500 extra Folder/Leaflet/Brochure (Concept Charge (For Leaflet & Folder) 1. Leaflet (2 sides) Leaflet (One side)

4,000 2,000

2. Folder (4 Pages)

8,500

3. Folder (6 Pages)

11,000

4. Brochure (8 Pages)

16,000

5. Brochure (16 Pages)

28,000

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6. Brochure (32 Pages)

45,000

7. Greeting Card

5,500

8. Wall Calendar (6 Sheeter)

50,000

9. Desk Calender

22,500

10.Trophies

10,000

11.Certificate

3,500

12.Tabletop Reminders

3,500

Annual Report Title page

6,500

Inside page with Photograph ( per page )

1,000

Dummy making charges

1,500

Graphs / Charts ( per page )

1,500

Illustration / Spray Artwork / Quarter Tone / Translation / Art Letterings / Hand Letterings Sharptone Prints / Sharpline Prints Illustration minimum charges

2,500 per illustration

Finishing & retouching the image minimum

1,500 (per image)

Hand Lettering : English & Indian languages. For first 5 words Rs. 750/- & each additional work Rs. 125/Translation English copy material in any of Indian language and vice versa: Per unit of 100 words or a part thereof

1,000

Minimum cost

1,000

POP MATERIALS 1. Poster 2. Danglers 3. Hoarding Design 4. Digital Banner/Panel Size: 3 ft ¥ 1.5 ft

ORIGINAL

ADAPTATION

5,500 6,500

3,000

14,000

2,500 per size

4,000

2,500

Visual-Aids Spiral

1,000 per page

Back to Back

2,000 per page

Stock images

200 per image

TP Pictures Scan

250 per scan

Visitng Cards–New Design

500 to 2,000

Adaptation Die Cut Promotional Tools Exhibition Stall Design (Floor Plan)

350 2,500 to 15,000 10,000 to 25,000

Website Static Web Design & Copy (10 Pages) Dynamic Web with Programming Modules

3,000

20,000 3.5 Lacs–15 Lacs

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Note: 1. Urgent jobs done on overtime will be charged 50 % extra. 2. Two layouts will be submitted for approval, i.e. will be charged at the rate manually agreed upon before execution of the job. 3. Copy changes on final artwork will be charged extra. 4. Any other major change on final artwork will be charged extra. 5. All rates are subject to revision yearly. 6. Outstation travel costs on actuals but agency personnel will be charged on daily basis: managers and above at Rs. 2500/and non-managers at Rs. 1000/-. 7. Photography, courier service, freight, fax, postage and other out-of-pocket expenses done by Tendril Communication on behalf of its clients will billed at Actuals.

5.3.5 Agency Ranking

such popular survey conducted every year by The Economic Times. It ranks agencies on the basis of their creative abilities, client servicing skills, innovation and thought leadership, etc. Table 5.3 shows TABLE 5.3

1 2 3 4 5 6 7 8 11 12 13 14 15

India’s best advertising and media agencies

Mindshare Madison World Lodestar Universal Lintas Media Group Percept Media Starcom Carat Dentsu Media Zenith Optimedia Mudra Max MediaCom OMD TME Media Planning Group

Media

Ogilvy JWT Lowa Lintus Mudra India McCann Erickson DDB Mudra Leo Burnett Draftfeb Ulka Dentsu Taproot Contract Grey Worldwide Percept/H Creativeland Asia RK Swamy BBDO BBDO India Rediffusion YR Euro RSCG M&C Saatchi TBWA India

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Creative

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surveys are more holistic and even include parameters such as investment in employees, relationship with clients, account planning skills, etc.

5.4 SPECIALIZED SERVICES

much later, with the advent of multinational companies, these agencies started providing specialized communication services such as sales promotions, direct marketing, public relations, etc. Some advertising agencies rendered these services through separate divisions under the same agency banner, thereby providing integrated marketing solutions to their clients, whereas others developed as marketing research services, etc. For instance, Web Chutney and Hungama are specialized interactive

5.4.1 Direct Response Agencies Montgomery Ward, decided to market products directly to the consumer by distributing product responses from the consumer. advertising is generally viewed upon as mass communication, whereas direct response marketing takes a one-on-one approach. Typically, the potential customer is presented with a crisp, clear and

process. Today, the Internet has come to be a major game-changer in direct response marketing with companies like Snapdeal.com who started out with an instant deals-of-the-day strategy.

∑ Creating a sharp, attractive offer message that showcases the product or service clearly and succinctly. ∑ websites and SMS are popular means of closing the feedback loop with the customer.

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∑ situations. ∑ also to target the proper demographic. Many mainstream advertising agencies have created in-house divisions to cater to direct response

Wunderman’s Wonders It was Lester Wunderman who coined the term “direct marketing” in 1967 that led him to be considered as the father of direct marketing. A lesser known fact is that Wunderman was also instrumental behind the creation of the 1-800 toll free phone service! He also created various loyalty programmes, rewards programmes and the concept of

5.4.2 Public Relations Firms

on maintaining press relations, i.e. ensuring good media coverage for their clients and their brands. cultivated over time so that they would look upon carrying articles in a favourable way for the company involved. This involves bringing the right media representatives to cover the event, preparing the

prepare a dossier for their clients to help track effectiveness of the messaging. Secondary objectives

Spin Doctors “Spin” has come to be an often-used term in the world of PR. While traditional public relations rely on creative presentation of facts, the world of spin falls under the realm of deceptive propaganda. History has shown us how wars were won by effective manipulation of public opinion by clever propaganda. Spin tactics involve techniques like “cherry picking” (selectively choosing facts that support one’s position), non-committal short any games that can be played with wits and words. And behind all the word play sit the masterminds who are quick on their feet in times of adversity – the Spin Doctors.9

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5.4.3 Sales Promotion Agencies

budgets shrink, a lot of companies in India FIGURE 5.3 Areas covered by activation agencies. are turning towards specialist sales promotion agencies for improving their marketing effectiveness. Events

5.4.4 Activation Agencies The latest to join the bandwagon of specialized

activities that involve greater direct interaction with consumers. Figure 5.3 shows the kinds of services that such agencies may offer.

Direct

Promotions

Activation Retail display

CRM

Digital

Outdoor

5.4.5 Interactive/Online Marketing Agencies

its client ICICI Bank Frenchie email campaign with tracking of open rates and click-through rates. Today, there are even superspecialized online agencies such as social media agencies that create, understand and manage online

5.4.6 Market Research Agencies With the increasing importance of market research, many agencies offer specialized services in that tracking, brand tracking, customer satisfaction surveys, and ad metrics tracking. Clients can even

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Typical Service Menu of Interactive Service Agencies

Campaign

Email marketing

Web development

Experiential marketing

Search marketing

Marketing strategy, media planning & buying, ad serving

Emails, sweepstakes, e-coupons, landing pages, contests, survey & polls, customer profiling

Strategic planning using tools like digital springboard, analytics & benchmarking, Information architecture, Content management & technology solutions, E-commerce, Intranet/extranet, Portals & verticals

Interactive ads Brand sites Flash games Viral marketing Screen mates Application skins Mobile, CD & touch-screen kiosks

Search marketing strategy including identifying relevant keywords Search engine optimization using technology & analytics Paid inclusions

is one such research agency that provides research material on Indian urbanites, mobile phone users, employee opinions, etc. Ogilvy Discovery, on the other hand, understands deeper motivations and culture that drive human behaviour. Some of its research tools include cultural analysis of popular media, photo diaries, scrapbooks, interviews with observers of change, discussions with sociologists,

Summary Communication agencies are the answer to communication related challenges faced by businesses in their day-to-day operations. Whereas typical communication agencies started off as advertising comprises of clients who are the bread givers, regulators that monitor communication campaigns, functions such as client servicing, account planning, creative, production, etc. These agencies may be centralized or decentralized in their operations. Direct response agencies, interactive agencies, in the communication space.

Exercise 1. Distinguish between full-service and specialized agencies. 2. Explain the role of various regulators in the agency world.

provide.

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Suggested Class Project 1. Visit a local marketing communication agency in your town. Prepare a brief note on the job functions of different people in the organization.

Critical Thinking Questions 1. In-house agencies are more reliable than external communication agencies. Comment. 2. The art director is the most important person in an advertising agency, and hence is in the right position to head it.

CASE STUDY Hummingbird Advertising Agency

he had managed to attract a pool of talented people to work for his agency. In turn, Hummingbird had secured several reputed clients from a wide range of industries, building a rich portfolio for the

Jay: Team: Jay:

challenge for us to please this client. Robert (Creative Director): especially after they have bid adieu to the number one agency OM for disagreement over the creative strategy. Phew! Jay: new direction and a fresh look. Mahima (Sr. Account Executive): problem that the brand has been facing of late – appealing to the new generation. It is clear from

Mansi (Account Planner):

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Mahima: You might need to do some primary research as well regarding the current perceptions that Mansi: Robert: Mahima: working against tight deadlines here. The basic campaign idea, replete with all roughs of preliminary artwork, has to be presented in a month from now. Robert:

Mansi: Sure! Mahima:

Robert: to go for a brand like this. But more on that in our next meeting. Jay: Ashok (Media Planner):

to the youngsters. Events could be a possibility, if we can manage the budget for them. But I would Jay: Robert: commission. Mahima: for delivering work on schedule. Robert: Jay:

strategy in place based on the research inputs from Mansi, do run it by me. In between, you can call for a brainstorming session if you need more ideas. Mahima: Robert: Mahima: goes well, I should be able to hand you the creative brief by the Monday after. Robert: Sounds good. Jay: Team:

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Questions project.

Endnotes 1. www.adbrands.net

htm 6. www.indiannewspapersociety.org/objective.htm

Part Three Advertising This section takes students through various stages of advertising— from research and conceptualization to execution. Chapters 6-7 lay the foundations for coming up with advertising ideas and strategy whereas Chapters 8-10 discuss how ad execution takes place in various media.

Chapter 6 Advertising Research and Strategy Chapter Objectives

In Perspective

After reading this chapter, you will be able to: Understand the concepts of advertising research, strategy, big idea and creative execution Learn the process of conducting marketing research with the help of basic tools and techniques of research Recognise the common errors that should be avoided in research Learn the process of devising an advertising strategy for a brand with the help of strategy statement formats Identify the approaches available with an advertiser in choosing a strategic direction

Saffola Gold Hits on the Right Strategy to Build on the ‘Healthy Heart’ Proposition1

In 2004, the ‘healthy-heart’ oil brand Saffola launched a new variant Saffola Gold, a premium edible oil priced 25 per cent higher than its closest competitor, in order to reposition itself from being a curative brand to a preventive one, and to differentiate itself from other me-too brands. While Saffola was perceived to be a brand for the heart patients, Saffola Gold wanted to reach larger audiences. It targeted edible oil users in SECs A and B in the metros in the age group of 25-45 years. While the intended consumer was primarily male, the communication was addressed to the woman in the family. The agency McCann Erickson hit on the insight that most men It built on the research that in the age group of thirties, consumers are not normally heart patients but are prone to the disease if they tread carelessly. The ‘Kal Se’ campaign (Figure 6.1a) showed a husband procrastinating every time it came to exercising and avoiding calorie-rich foods. The campaign then suggested switching to Saffola Gold to

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only it helped in the reduction of cholesterol but also absorbed less in the food. It was planned to project the brand as an authority on heart-care, and also as an empathetic and approachable friend of the wife. As a sequel to the ‘Kal Se’ campaign, the agency decided to urge wives further to change their cooking oils because husbands will, come what may, indulge. Saffola Gold kind was in a constant state of denial of his poor health whereas the second kind was in a complete indulgence mode, but was stricken by guilt whenever he indulged. For the ‘denial’ type, the ‘Abhi Toh Yeh Jawaan Hain’ commercial was launched to highlight ‘Prayaschit’ campaign (Figure 6.1b) was rolled out, based on the research that today’s consumers are more conscious of their eating habits and look for ways to work off any extra food intake. The latest campaign (Figure 6.1c) is also based on the insight that men are becoming maintaining a healthy lifestyle, testimony to which is the growing number of men’s gyms, spas, etc. Hence, the new commercial shifts the focus from denial to acceptance, and from the wife to the couple, by showing the husband participating in the purchasing process and being more accountable for his actions. Saffola Gold’s campaigns, based on extensive research on the general consumer psyche, sound strategy and real life incidents, have led to 50 per cent increase in volumes for the brand. They have also gone down well with the audiences and won many awards including the EFFIES and the EMVIES.

The opening vignette illustrates that research and sound strategic planning are essential for the market with the ‘healthy-heart’ proposition, Saffola Gold succeeded in creating differentiation by any apparent problem, adopting an empathetic personality, and identifying with the plight of worried wives of indulgent husbands. Depicting real-life instances in its commercials helped it in connecting with consumers and in breaking the initial purchase resistance sprouting from the belief that ‘it can’t happen to me.’ The rewards depicted with shots of a healthy and happy family, as well as the humorous tone of the commercials, kept the message on a positive note. This chapter talks about the foundations of an advertising campaign rooted in research and strategic planning. It introduces you to some basic advertising concepts, the understanding of which is necessary in the making of a campaign.

Chapter 6 FIGURE 6.1 (a-c)

Advertising Research and Strategy

Saffola Gold differentiates itself in the healthy hearts space.

(CONTD..)

227

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(CONTD..)

FIGURE 6.1 (b)

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229

FIGURE 6.1 (c)

Courtesy: Marico. Reproduced with permission.

6.1. FUNDAMENTALS OF AN ADVERTISING CAMPAIGN An advertising campaign is a series of ads of a brand that are related because they all have the same central idea and are run during the same time period. Before we begin, we need to understand some related and intertwined concepts fundamental in devising FIGURE 6.2 Concepts of an advertising compaign. the advertising campaign. Fundamentals of an ad campaign Imagine the advertising process as a pyramidal structure as shown Creative in Figure 6.2. At the very base Ad 1 Ad 2 execution of the pyramid is advertising Ad research. Before an agency campaign Big idea begins formulating an advertising campaign, it needs to collect Ad 4 Ad 3 raw material for it by digging Advertising strategy for facts, data, information and knowledge. In-depth research can unearth important nuggets about Advertising research the target audience, spot new trends, uncover new product uses, discover competitor’s weaknesses, etc. Research is also useful because there are likely to be a lot of

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by its client. Once an agency has collated available information and knowledge on a product to start with, it begins to plan its advertising strategy. In advertising parlance, ‘strategy’ is a game plan it is the ‘message’ that the advertiser gives to solve a communications-related problem. In other words, it outlines what the advertiser proposes to say or do to solve the communications-related problem. advertising strategy could be to communicate about the user-friendliness of a product, to position it as an all-natural product, to solve a misconception about its costliness, etc. Note the emphasis on what. Advertising strategy is not about how you do something – that falls within the purview of the ‘big idea’ and ‘creative execution’; advertising strategy only outlines what needs to be communicated, giving reasons why. The big idea is the idea that advertisers select for communicating the strategic message in a creative way – it is a link between strategy and creative execution. In other words, it is a creative concept to execute the advertising strategy and serves as an umbrella or a central theme for a series of

the hunt begins for the big idea and then follows its creative execution. Creative execution deals with the physical form of an advertisement – story, script, copy, art, music, words and phrases, colour, production, etc. It is during the process of execution that advertisers actually begin making the ad based on the big idea, which is based on the strategy. Finally, advertising tactics are the short-term The Times of India, or a 15-second television spot on Gemini channel in Tamilnadu, are tactical decisions that are short-term in nature. Let’s understand the above concepts with the help of an example. If you’ve followed the advertising of the soft-drink brand Thums Up, you can infer that its advertising strategy (or message) has been to position itself as a ‘strong-tasting cola for today’s young adult males.’ This positioning strategy stems from the product per se. Thums Up has unusually high carbonation, the highest in any cola, which has gone down very well with Indian taste buds. A Thums Up consumer would settle for nothing less than a Thums Up. Hence, the strategic direction for its communication is to focus on the drink’s ‘strong taste’. But to merely talk of ‘strong taste’ would make a boring ad, wouldn’t it? Hence, based on Thums Up’s strategic direction, the big idea show brawny or macho celebrities performing challenging or adventurous sports. This big idea of showing machoism is supposed to convey the message of Thums Up’s strong taste for strong people. In other words, the message of ‘strong taste for young males’ is metamorphosed into the big idea of showing ‘macho adventure sports.’ The creative executions of this adventure tack have run the gamut from bungee jumping to sky diving, and from jet-skiing to train-top escapades with masculine celebrities like Salman Khan, Suneil Shetty and Akshay Kumar. Further, creative elements like the tagline urging ‘Taste the thunder’ and the new logo sporting strong streaks of blue speed-lines are meant to add powerful elements of speed and adventure to the brand imagery. The tactics involve decisions like spending high in television advertising; promoting more in the core markets of Thums Up like Andhra Pradesh, Maharashtra, Gujarat, Uttar Pradesh, West Bengal and Karnataka; etc.

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Thus, a good advertisement is primarily a combination of three things – a meaningful and creative execution. If any of these elements is not in order, the message will be trashed just as soon as it is seen, read or heard. Table 6.1 gives more examples that segregate the communication strategy, big idea and execution elements for some selected brands to further clarify the concepts discussed here. TABLE 6.1 Brand

Strategy

Big Idea

Execution Elements

Dhara Health

Demonstrate that Dhara keeps consumers’ hearts & health strong

Kids are proud of fathers who are healthy and strong (due to Dhara)

Creative tagline, elements of wit and humour, selection of right characters, gripping stories, etc. (Figures 6.3a-d)

Mentos

Communicate that Mentos refreshes consumers

Mentos gives ‘fresh ideas’ in our otherwise mundane lives

Creative tagline, elements of wit and humour, selection of right characters, gripping stories, apt sound effects, etc. (Figure 6.4)

Axe Deodorant

Create a sensual appeal

Talk of the ‘Axe effect,’ i.e. how women are magnetically attracted towards men using Axe

Creative tagline, elements of wit and humour, gripping stories, apt sound effects, etc. (Figures 6.5a-c)

Fevicol

Reinforce Fevicol’s leadership position as the ultimate adhesive

Show the bonding power of the brand in a metaphoric way

Creative tagline, elements of wit and humour, selection of right characters, gripping stories, apt sound effects, etc. (Figures 6.6a-b)

FIGURE 6.3 (a-d)

Dhara kids are proud of healthy and strong fathers.

(a)

(b) My Daddy Strongest

My Daddy Strongest

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My Daddy strongest - 40 secs.

Film opens on middle-aged people and a question is asked in the Voice Over on the quality of good dads. VO, "How can you say who is a good Daddy?"

“New Dhara Health is refined and light. The refining process removes all traces of stickiness and less oil is retained in the food.”

"He is our biggest supports".

"Because of lesser oil, one feels light and more energetic".

(c)

"A good batsman". Product window

"Doesn't tire easily".

Close up of food shots. Quality of the new Dhara health being mentioned in the Voice Over.

Courtesy: Dhara, Mudra. Reproduced with permission

FIGURE 6.4

Mentos is so refreshing, it gives people ideas.

Courtesy: Mentos, O&M. Reproduced with permission

Housewife endorsing the quality of oil VO " Better life, stronger Dads".

VO of child testifying, "My Daddy Strongest".

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Axe creates a sensual appeal by portraying ‘the Axe’ effect.

(a)

(b)

Subhead: After-shave Position 99 Bodycopy: Feel the temptation overcoming her body as she clutches your face, rubbing her cheek against the smoothness of your jaw, planting tiny bites along the way that feel like a thousand goose bumps. Baseline: The Axe Effect

FIGURE 6.5 (c)

Subhead: After-shave Position 26 Bodycopy: The man’s cheek is positioned to tantalize his partners. The desire to rake fingers along the cheek will be intense. Watch their passion reach a new high as the smoothness of your face meets the softness of their skin. Baseline: The Axe Effect

Axe creates a sensual appeal by portraying ‘the Axe effect’.

A man plays some haunting melody on his flute which attract hundreds and hundreds of mice and they...

...jump into the sea to their deaths as if they can't help it. The pied piper looks at this mass hara kiri.

His work done, the pied piper walks towards the town hall to meet...

(CONTD..)

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(CONTD..) ...the town's mayor, who looks at him with a wicked gleam in his eyes...

...and with a mocking laugh hands him a dollar instead of the brief case full of dollars that was promised.

His cohorts and his shapely secretary also make fun of the man who had freed them of the mice.

But our piper is not the one to give up easily. He reaches inside his jacket.

The others in the room are alarmed and the bodyguard reaches for his gun.

But instead of a weapon, the piper takes out a can of Axe body spray and sprays some of it on himself and some towards the secretary.

The amusing looks soon fade as the fragrance has an unusual effect on the secretary. She loosens her hair and follows the piper out of the room.

She's is not the only one, soon she is joined by all the bold and the beautiful young women of the town.

The mayor's bodyguard puckers his lips, a gesture that says that his boss' fun days are over...

..as the entire town becomes empty of young women. The piper can't believe his 'windfall'.

Courtesy: Axe, Lintas Lowe. Reproduced with permission.

That's not all, there are some sexy aliens too who are attracted by the fragrance of Axe.

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Fevicol metaphorises the bonding power in its creative executions.

(a)

(CONTD..)

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(CONTD..)

(b) Courtesy: Fevicol, O&M, Reproduced with permission.

6.2 THE RESEARCH PROCESS Let us take a look at the broad steps in conducting advertising research. The purpose of this section in itself, but to provide you with basics that will help you look for, or obtain from experts, the information you seek.

6.2.1 Define the Problem and Research Objectives Before a researcher begins his/her work, the agency needs to agree on the problem that needs to be solved. Does it want to know who could be the likely consumer for the client’s product, what they expect from the product, or how the client’s product is different from the competition? A wisely Let us say that an agency’s client wants to promote its newly refurbished luxury hotel Carnations

too broadly. Why should it care about all types of hotel guests and their satisfaction levels? Is not the

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answered as follows:

3. What kind of new guests will choose our hotel because of the refurbishing? What are their demographic and psychographic characteristics? What are their price expectations? This type of research is exploratory in nature. However, not all exploratory research programmes may have precise or explicit objectives. Sometimes the objective may be to gather preliminary agency might want to gather preliminary information about the various available options for the refurbished luxury hotel: (a) targeting business customers and increasing fares, (b) keeping prices constant but targeting more consumer groups for a higher occupancy rate or (c) introducing more package deals at different price ranges. Some research may be descriptive—it describes things, such as the market potential for a product, the competitive scenario, the demographics and attitudes of consumers, the political and legal environment, etc. Thus, the agency might want to undertake a descriptive situational analysis to decide if the conditions are conducive to the introduction of new services and facilities. Lastly, research could be causal in nature, where the idea

precise of all.

6.2.2 Check Secondary Sources Once an agency knows what it is looking for, it should begin by reviewing information that already exists. This is called secondary research, which uses information that has been collected previously primary research, which ∑ Client records: For example, information collected about customers from registration forms, membership cards, consumer surveys, dealer surveys, sales and order database, product’s technical reports compiled by engineers, annual reports, public relations compilations, etc. ∑ Trade publications: For example, Bombay Chamber Bulletin Cost Accounting in Commercial Banking Industry IT in the Economy of India ∑ Government publications: For example, RBI Bulletin published by the Reserve Bank of India, National Accounts Statistics Unorganized Service Sector and Consumer Expenditure by National Sample Survey Organisation, Indian Livestock Survey by the Ministry of Agriculture, etc. ∑ Commercial sources: Macro Track databases, etc. ∑ Agency research: Many times advertising and marketing agencies also conduct researches and commission studies to understand trends, values, cultures, etc. prevailing in the society.

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They may publish the results of these studies, which too can be a good reference to understand the scenario prevailing in the society, and use as a basis for brand communication. A study entitled ‘Mother India’ was undertaken by the advertising agency JWT in eight

spanned mothers in SEC AB categories, with children between 8 and 16 years. It examined the payoffs that mothers want from their children and vice versa, which have been uncovered through Brand Chakras by applying the 2,000-year old Chakra system, as laid out by Patanjali, to consumers and brands. The study indicated that motherhood strategies instead focus on emotional elasticity, adult-like conversations, retaining locus of control while appearing to be democratic, tough love and the like. Children, in return, are conscious of the contribution that their mothers make in their lives, and look up to them to give them courage and inspiration to achieve their goals. The study categorised mothers in three main types. The Lifeline Seeker is one who has given up hopes of the husband improving her life, and does everything for the child with a view to depending on him/her in the future. The Coronation Seeker looks forward to her child’s achievements to revel in their glory and use them to make a statement about herself. The Independence Seeker strives to excel in mother’s role in order to foster independence and self-reliance in her child, so that she will have the freedom and space for her own pursuits. While the study focuses on mothers, it has revealed three types of fathers, too, as sketched by the mothers. The study implies that brands must child both.2

∑ Websites, magazines and general publications: These days the Internet and other websites, be wary of the authenticity and timeliness of the information published.

6.2.3 Carry out Primary Research When an agency needs information that is not available elsewhere, or is not reliable, it has to conduct primary research. Although collecting primary data is more time- and money-consuming than collecting secondary data, it is more relevant, reliable and up-to-date. Designing a primary research plan calls for decisions regarding the four areas mentioned in Table 6.2. TABLE 6.2 Decisions in Primary Research Design a. Research approaches

b. Contact methods

c. Sampling plan

d. Research instruments

Firsthand experience

Mail

Sampling unit

Questionnaires

Observation

Telephone

Sample size

Psychological tools

Survey

Personal interview

Sampling procedure

Mechanical devices

Experiment

Computer

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a. Research Approaches ∑ Firsthand experience: with all their senses. They must touch, taste, smell, hear, see and experience a product before conducting any other research. In the Carnations hotel research, agency personnel must stay at the hotel themselves (and of course ask the client to sponsor the stay). They may call up

and restaurants, etc. This would give them the opportunity to note their client’s strengths and weaknesses. generalising his/her experiences as that of the masses. Researchers are always coloured by their product- and communication-related knowledge and may be overly critical. Also, they may not be a part of the target market. Hence, this approach should be used as only a starter and never as a substitute for consumer opinions. ∑ Observation: Observe the ambience, the layout and the hotel guests. Pay attention to the kind of people that visit the pool or the billiards room, what they do at the hotel’s restaurants, how much time they spend in the gym and the kind of shopping bags they bring back to the hotel. Find out how and how soon receptionists check guests in and out. Visit the guest lounges and hear what people talk about. Observing people in their natural environments is one of the best ways to learn about their behaviour. Researchers can gather a lot of primary information by observing people, products and situations. Observation can be done by human observers as well as mechanical observation tools like video cameras, eye cameras, people meters, etc. in store scanners, credit card usage, catalogue purchases, customer databases, etc. Observational research is great for obtaining information that people are unwilling or unable to provide, and for observing behaviours or actions that cannot be narrated. For example, it is However, washing machine producers can observe her using the machine to get insights into often more dependable than statements they make to researchers. For example, men will never accept that they buy fairness creams but the truth is that they not only buy but also use such beauty products. Similarly, people do not always buy popular brands as they may tell you, or high-income people do not necessarily buy more expensive brands, and low-income people often buy upscale products. There are, however, limitations to what can be observed. Feelings, attitudes, thinking processes, tastes and preferences, or private behaviour are beyond the ambit of observation. ∑ Survey: What cannot be observed can be surveyed. Surveys can be conducted with the help research methods. For example, a researcher can ask regular hotel guests as to why they chose Carnations, whether they like its rooms and restaurants, what they opine about its ambience and services, etc.

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∑ Experiment: to different treatments, controlling unrelated factors and checking for differences in group responses. They are good for capturing cause–effect relationships. For example, the agency might choose two similar groups of regular guests of Carnations (those who visit the hotel approximately same number of times in a year; belong to the same geographical, income and age groups; etc.) and communicate to them differently about the refurbished hotel. Its communication to one group may focus on the added comforts and services available within the room, whereas communication to the other group may focus on the improved ambience, and additional food and entertainment services. Depending on whether group one prefers the new hotel more or group two does, the agency can make inferences about what is a more here is that of ceteris paribus, meaning all other variables are controlled and both groups are similar. If group one was naturally more inclined to stay in the hotel or if it had other reasons (like non-availability of rooms in similar hotels in the city) for choosing Carnations, the agency’s inferences will not hold true.

b. Contact Methods ∑ Mail: Mail contact is useful for survey-based research. Respondents tend to give more honest Also, the cost-per-respondent is lower than in most other contact methods, except than in

cannot be adapted based on previous answers. Mail surveys have lower response rates as few people bother to answer and mail back. Finally, the researcher cannot control who answers the daughter. ∑ Telephone: Telephone interviewing helps gather information speedily, provides respondents

the cost per respondent is higher too. People despise receiving telemarketing calls and dislike too personal. There are also chances of interviewer bias , i.e., the colouring of results based on ∑ Personal: Personal interviews could be individual or group interviews. Individual interviews

attention span and can even get higher response rates. Individual interviews can be pre-arranged by taking an appointment with the respondent or be interceptive, i.e., randomly stopping Group interviewing means interviewing a group of

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group interviews, it is possible to show props, products, packages, advertisements, or the like and observe reactions and behaviours. However, the time and cost factors are higher than in other contact methods and there are chances of interviewer bias. Group interviews can also be in the form of focus group discussions. In this method, six to ten people are invited to spend a few hours discussing the client’s product, communication, etc. The discussion is conducted by a trained moderator whose task is to monitor the course of the discussion, to prompt and encourage everyone to speak, and to handle group dynamics. A participants to say what’s on their minds. In the research regarding Carnations, the moderator of services in the current hotel?” and move to discussion regarding hotel’s facilities, ambience, staff, cleanliness, food, etc. Participants are seated in informal surroundings, normally paid a token sum for attending, and often given complimentary gifts of the company’s products. Their comments, with their permission, can be recorded through written notes or on videotapes that are studied later. Focus groups often lead to cross-fertilisation of ideas among participants. They tend to give deep insights into consumers’ beliefs and attitudes. However, agencies should not generalise without caution the revelations of a focus group as they represent the views and opinions of only a few. Focus groups are best used to complement other survey methods. ∑ Computer: screen computers, fancy graphics and recorded voice response mechanisms can make

participants, who can answer from their own computers at their convenience. Usually, the lure online spying methods like tracking clicks or capturing data with the help of cookies to learn about consumer behaviour. How ethical or effective these methods are, however, is an issue open to debate.

c. Sampling Plan A sample is a segment of the population selected for research to represent the population as a whole. As a survey of the entire population may sometimes be infeasible, costly or time-consuming, researchers often study a representative sample of the total population to draw conclusions about the entire group of consumers. The following are some of the decisions to be made regarding the selection of a sample: ∑ Sampling unit: Who should be surveyed? An ideal sample should be a good representative of the larger population. However, selecting a sample is not always an easy task. In the Carnations example, should the researcher interview regular guests, likely prospects, competitor’s loyalists, travel agents or a mix of all of these? Should these guests be business or vacation travellers to possess it.

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∑ Sample size: How many people should be surveyed? Larger samples give more reliable results as they iron out effects of the extremes. On the other hand, smaller samples save both time and money. However, large versus small sample is not such a big dilemma. If samples results. ∑ Sampling procedure: How should the sample be chosen? Researchers have a choice of probabilistic or non-probabilistic sampling methods. In probability-based sampling, each population member has a predetermined and known chance of being selected in the sample.

nights in a year. In non-probability sampling, chance of being selected in the sample is unknown and sampling error cannot be measured. Some popular probability and nonprobability sampling methods have been discussed in Table 6.3. TABLE 6.3 Common Sampling Methods Probability Sample Simple random sample

A sample is chosen randomly. Every member of the population has a known and equal chance of selection.

Stratified random sample

The population is divided into mutually exclusive groups based on factors like type of guest (business/holiday traveller), age group, income category, etc. and random samples are drawn in a certain proportion from each group.

Non-Probability Sample Convenience sample

The research selects the population members that are most convenient to access.

Judgement sample

The researcher uses his/her judgement to determine which prospects are likely to give substantial or accurate information.

d. Research Instruments ∑ Questionnaire: too. Questions can be closed- or open-ended. Closed-ended questions are those that include all the possible answers and respondents choose one or more relevant answers from among the choices given. Open-ended questions do not furnish respondents with choices and allow them to answer in their own words. Some common forms of closed- and openTable 6.4 how a respondent thinks as the respondent is not limited in his/her answers. Open-ended answering.

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TABLE 6.4 Common Types of Closed- and Open-ended Questions Closed-ended Question

Description

Example

Dichotomous

A question with two answer choices

Have you stayed at Carnations before? Yes No

Multiple choice

A question with more than two answer choices

Which of the following facilities did you use in the hotel? (Tick all that apply) Swimming pool Spa centre Laundry Room service Gymnasium

Likert scale

A question to indicate the extent of liking, importance, etc. regarding something

What do you think about the new look of the hotel? (Tick one) Like a lot _____ Like somewhat ______ Neutral ______ Dislike somewhat ______ Dislike a lot ________

Ranking scale

A question to rank various attributes in the order of the respondent’s preference, importance, liking, etc.

Rank the following attributes from 1 to 4 in the order of importance (1 being most important, 4 being least important) for deciding on a luxury hotel. Price _____ Quality of service _____ Size of room _____ Location _____

Semantic differential

A scale connecting two bipolar or opposite words to indicate the direction and intensity of the respondent’s feelings

What do you think about the restaurants at Carnations? (Tick where appropriate) Varied menu __ __ __ Limited choice Tasty food __ __ __ Insipid food Prompt service __ __ __ Slow service

Completely unstructured

Respondents can answer the question in any way they like

What is your opinion regarding the new look of Carnations?

Word association

Respondents mention the first word/feeling that comes to their minds when they read the given word

What is the first word that comes to your mind when you read the following? Luxury hotel: _____ Spa facilities: ________

Sentence completion

Respondents complete incomplete sentences

I like to stay in a luxury hotel because __________.

Story completion

Respondents complete an incomplete story, which relates to a real-life situation

Complete the following story: Last month I stayed at the Carnations hotel where I stay regularly. I noticed that it was refurbished, and many services and facilities had been added. Let me describe to you the services they offered and what I felt about them…

(Contd.)

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TABLE 6.4

(Contd.)

Picture completion

A picture of some characters with dialogue balloons is given and respondents are asked to complete the conversation. Alternatively, researchers can make respondents sketch drawings

Fill in the empty dialogue balloon. OR Draw the standard room of Carnations luxury hotel.

Thematic Apperception Tests (TAT)

A picture is presented and respondents are asked to write their interpretation of what they think is going on in the picture

Make up a story about what you see.

Brand personification test

Respondents are asked to match If you were to imagine Carnations the product or brand with animals, luxury hotel as a celebrity, which colours, places or types of music celebrity would it be? to understand their subconscious feelings

∑ Psychological/Psychographic tools: Psychological tools are used for psychological research to probe deeper into a prospect’s beliefs, feelings, attitudes and motivations. Often advertising agencies have their customised versions of psychological tools. A popular psychological instrument is the Zaltman Metaphoric Elicitation Technique (ZMET), which asks respondents to provide metaphors or associations for feelings, attitudes, etc. that cannot be expressed verbally. In the laddering technique researcher thinks he/she has reached the deeper reason. It is similar to peeling an onion, layer by layer, till one reaches the core. For example, a researcher may ask a business traveller as to why he/she chose Carnations

and I want my clients to acknowledge my worth by giving me superior accommodation and facilities.” Similarly, through articulate interviewing respondents are made to talk about broad topics such as their various roles in life, daily activities, core beliefs, etc. This broad format enables the researcher to extract relevant information, and understand the social and psychological interviewing, a researcher can do consumer prototyping and may arrive at the following Carnations’ business traveller guest: He is a top-management executive of age 40+ who sports a Parker and wears a Rolex watch. He travels across the country for business for 10–15 days in a month. It is important to him that his company and clients appreciate his worth and make his journey comfortable. While at the hotel, he is likely to work on his laptop and watch drama/thriller movies. His drink is hard liquor and food preference is primarily continental. consumers’ homes and shoot videos of them using the product, talking about it, etc. These videos can then be used to analyse consumer behaviour. Note however, that despite their usefulness, psychological tools are costly and time-consuming compared to other instruments.

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like the famous Values and Lifestyle (VALS) analysis framework developed by the US-based segments consumers into eight categories on the basis of their personality and motivations. It aims to understand consumer behaviour so that the right products and messages can be matched to the right people. The model is based on the assumption that people with same demographics can have different motivations and personalities, which drive their purchases. A VALS model exclusive for the Indian market is under development by SRI in collaboration 3

∑ Mechanical tools: Mechanical or laboratory tools are observational devices that are not very prominently used in India, but in many Western countries. Some mechanical devices are used to measure respondents’ physical responses. For example, Galvanic Skin Response is to check the level of arousal caused by an advertisement. It is performed with a psychogalvanometer that measures changes in the activity of the sweat glands via electrodes attached to suction in the subject’s hands. It thus, senses the small amount of sweating that accompanies emotional arousal and records points in an ad when the respondent’s interest and emotions were stimulated. The tachitoscope is an instrument for exposing material for controlled periods seconds. After each exposure, respondents describe what they recall. This helps understand areas of selective attention and the minimum time needed to register details. The eye movement camera how long they linger on a given item and so on. On the other hand, the eye observation camera pupilometrics, a method of advertising research in which a study is conducted on the relationship between a viewer’s pupil dilation and the interest factor of visual stimuli. We shall discuss more at length about some of these There are other mechanical tools as well that measure respondents’ behaviour. For instance, an audiometer is a device that is attached to TV sets in selected homes and records when the TV set is on and to which channel it is tuned. Similarly, a peoplemeter is also a device that is attached to TV sets in a panel of participating homes and records, which family member watches what television channels and programmes, which can be used by advertisers to select the most effective channels and programmes for their product and target audience. Checkout scanners, primarily useful for inventory management, are also used for measuring consumers’ product preferences. Now becoming popular in India with the organised retail revolution, scanners record a consumer’s purchase data against his/her membership card and number. This helps marketers know that a particular consumer buys a certain brand of dandruff shampoo twice a month, which helps to target them. The results of mechanical devices should be applied with caution. Often the respondents feel intimidated by these devices and their responses turn out to be different from normal responses. Moreover, there is also uncertainty over what the devices actually measure. For instance, an eye-observation camera measures pupil dilation, but it may not necessarily be indicative of an ad’s effectiveness.

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6.2.4 Interpret the Results of data into manageable information for the client. Instead of overwhelming the client with numbers averages and summaries should be interpreted to understand why things are the way they are. Negative opinion need not always be interpreted unfavourably. For example, a study might reveal that consumers like the competitor’s packaging better than the client’s. However, companies need will be willing to pay extra for the new and fancy packaging. In all probability, they might be buying the client’s product because of its cheaper price, and would rather do with a simple, functional pack than face a price rise.

6.3 COMMON ERRORS IN RESEARCH Although research yields insightful information for formulating the advertising strategy, it is prone to errors that could prove costly if not attended to. The following are some common mistakes to avoid: ∑ Getting obsessed with research: Sometimes problems can be so simply tackled or solved with one’s gut feeling that it is wasteful to spend hordes after a fully commissioned research study. promotional gift they would like to receive when they shop at the retail outlet Pantaloons during Diwali. Pantaloons can either check its inventory for clothing that it could sell at a discount or have scratch cards with multiple gift options. Besides, sometimes customers themselves do not know what they need. How many of us had actually asked for walkmans, faxes or mobile phones? If it had not been for anticipative marketers who did not confuse consumers with any research, we would never have got these gadgets.

their point of view, whereas advertisers need to experiment with ideas outside a common person’s frame of reference. Research only tells how things are, and rarely how things should be. That is where advertisers’ logic and creativity take over. Thus, research should be applied with caution, because advertising that tries to accommodate too many consumer opinions and concerns tend to be predictable and boring. ∑ Asking the wrong questions: A company that was steadily losing its share in the category of household cleaning products to a competitor found that women preferred the competitor’s brand because it ‘smelled better’. It then developed a fragrance, which clearly won over the competition in blind tests. But in spite of the new fragranced cleaner, the sales continued downward. On further research, the company found that women indeed liked the smell of

4

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may also produce wrong answers. For all you know, they may like black. ∑ Taking answers at face value: Often consumer response is taken too literally. The difference between what they say and what they mean should be understood because research works only when it is interpreted correctly. A researcher needs to get a handle on consumer psychology to understand the real reason why people buy the product they do. Sometimes consumers themselves do not know the real reason, which might be a need, want or desire in their subconscious minds, and at other times, they may not be able to express it correctly. For example, when a consumer asks for an ‘inexpensive’ car, is she asking for a car whose purchase price is low or whose operating cost is low? When mothers demand a wholesome energy drink, is it only to make their children physically strong or is it also to help them excel in academics? Why do milk powder commercials show children surpassing in academics, sports and extracurriculars? Because they have understood a mother’s real need and inner desire of helping her children stand out in the society. ∑ Using the wrong research method: Although it is a well-known fact, most men will never admit that they use fairness creams or beauty soaps because these are perceived to be girlie products. Hence, personal interviews or focus-group discussions that ask a straight forward

more honest answers. It was this discovery that men are a large portion of its users that led Lux to portray Shah Rukh Khan in its commercial (Figure 6.7) commemorating 75 years of its existence. FIGURE 6.7

Lux targets its secret male users through the commercial.

The ad film opens on Shahrukh Khan in a bath tub with rose petals taking a bath.

“Aaj main aapko batane waala hoon meri khoobsoorti ka raaz” tells us the actor.

Revealing Lux as his beauty secret, the actor applies the soap over his body.

(CONTD..)

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Advertising and Integrated Marketing Communications (CONTD..) Shahrukh now concludes by saying “Ab bataiye aapka favourite Lux star kaun hai?” Super: to be continued...

Ad continued: “Dream Girl Hema.”

“Beautiful Juhi.”

“Stylish Kareena.”

“Sensuous Sri Devi.”

The actor reveals all four of them as his choice. To mark the 75th anniversary of Lux, he says, the brand...

...needed a superstar to which he replied “Main hoon na.” Listening to this, the four ladies push him into the bathtub.

Courtesy: JWT, HUL. Reproduced with permission.

∑ Biasing research results: A research can be called reliable when one gets similar results each time, regardless of the researcher and the sample chosen. However, various biases can affect the results of a research and reduce its reliability. Interviewer bias happens when the researcher, approving/disapproving tone of voice, etc.) regarding his/her personal preference and implies that one answer is better than the other. Sample bias happens when the sample chosen is not a good representative of the population. Non-response bias occurs when respondents source bias occurs when the source of Taaza of the following is your favourite tea? a) Taaza b) Lipton c) Tiger”, respondents are likely to indicate their preference for Taaza because they do not want to displease the interviewer. Or they may refrain from giving negative reviews about Taaza. Hence, most researchers do not identify themselves as representatives of a particular company or agency, but as independent researchers, academicians or students. Thus, while research is important to capture knowledge and insights regarding a product, one needs to keep in mind that research should not be used as a panacea for all ills. Information is relevant only when it is interpreted correctly and applied in the right context; otherwise even an expensive, thorough research can lead to a product’s demise.

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6.4 SPELLING OUT THE STRATEGY How do advertisers arrive at a strategy? Or how do they know what is the right thing to say about strategy statement is a document that contains details about the product to be advertised—its target audience, the competitive scenario, the problem that the advertiser is facing and the possible solution(s) to that problem. In other words, it is an instrument that helps advertisers do a brief analysis of the situation and propose one or more alternative strategies to adopt for advertising. If alternative strategies have most popular formats for composing a strategy statement:

6.4.1 The Marketing Communication Work Plan Format arriving at the advertising strategy. Given with the model is an imaginary example of Kodak EasyShare Digital Camera in italics to clarify the format. 1. Product description: Kodak EasyShare is a range of 8 point-and-shoot digicams for the amateur photographer. EasyShare is not just a digital camera but a simple way to shoot, share digital pictures and create amazing prints. It features Kodak’s colour science technology, high-quality lenses and its award winning, easy-to-use design. From powerful, but easy-to-use digital cameras and a new camera dock, to a complete line of accessories and new EasyShare software, one can get high quality prints at the touch of a button. The EasyShare system provides three simple ways to create beautiful prints with the quality expected from traditional photography: ∑ From home using Kodak inkjet papers and your printer ∑ ∑ At stores that have a Kodak Picture Maker digital kiosk Priced between and Rs. 10,000 and Rs. 15,000, it comes bundled with EasyShare camera dock, telephoto and wide angle lenses, memory cards, rechargeable battery packs, carrying case, EasyShare software and much through Kodak’s website is also possible. 2. Prospects: demographics and psychographics. The Young and Yuppie Age: 25–40 years Sex: Both men and women in the ratio of 70:30 Family income: Rs. 15 lakh+ p.a. Education: Graduate; quite often would have received formal technical education Family size: Couples with or without children with two members of the family earning Lifestyle: Consumers have an upper-middle to upscale lifestyle. Target consumers value work and vacation alike. They are fun-loving and some of the best moments of their lives are those spent with family. Young,

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vibrant and enthusiastic, they are socially active in clubs, parties, picnics, etc. They also actively communicate with their network of friends and family over the Net. Personality: Their personality traits include an openness to try new things and be an opinion leader of sorts. They have a fresh outlook towards life, and value creativity and excitement. They are independent and do not think twice before making what seems to them a valuable investment. Hobbies: They love to travel nationally and internationally and work with the digital technology. They are social animals that love organising facts and trivia about family and friends. They may have used software like CorelDraw or Photoshop for amateur artists. 3. Product personality: What human traits would describe the product? In other words, how would the product be if it were living and breathing? EasyShare is bubbly, fun loving, excitement seeking and creative. It loves to draw cartoon sketches of its old stick-in-the-mud science teacher and the grim-faced neighbour Mr. Sharma. It is down-to-earth, helpful and easy to be friends with. It spends a lot of time with family, loves theme parks, hiking trips and emailing latest make-up man around. 4. Reward: What positive feelings will customers have from using the product? Rewards can be functional (e.g. no need of special photographic skills due to camera’s auto-function modes), sensory (e.g. accurate colour reproduction), emotional (e.g. ability to capture memories) or expressive (e.g. feeling of pride and satisfaction while using the camera in social circles). The best reward is the one that considers consumer needs and motivations, and brand strengths. Also, reward is something that people should be able to derive easily from the communication. with ease. 5. Competition: Whom will this product take business away from? How are we different from competition? Competition comes from the medium-priced digicams that are targeted at beginners or amateurs and featured as easy-to-use. The behavior that Kodak anticipates to change is that of making people view digicams as a functional appliance rather than as a technology. Kodak’s key differentiation point is that its features are easier to use and understand compared to other digital cameras. 6. Obstacle to sale: Why might prospects resist buying? People may not choose Kodak when they can buy a superior camera with some more investment. Also, prospects may resist buying this product because of their non-familiarity with technology. 7. Message objective: What action do you want prospects to take? What do you want prospects to believe? Harp on ‘fun’ to create a unique position and on ‘ease-of-use’ to give people a serious reason to buy. The message should also convince prospects that working with Kodak digicams is as easy as some of the software they have used. The action that prospects should take is that of visiting Kodak showrooms and kiosks so that they can explore the unlimited creative potential of Kodak digicams and their interest is aroused. While many advertising agencies have their own formats for spelling out the advertising strategy, statements are based on long and hard research, they are condensed to present the gist of the research

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and state the advertising strategy in a few lines. Ideally, they should not be more than a page or two long. At times it is possible that what a strategy statement states might be too simple and obvious or something that the brand has always stood for. But then, why challenge a position if it is indeed the best one to take? After all, the brand may only need a creative facelift.

6.5 CHOICE OF STRATEGIC APPROACHES Strategic options can be broadly divided into product- or prospect- centred approaches. Productmade through before-and-after comparisons, demonstrations, testimonials, etc. For example, some of Levi’s ‘the Detachables’, ‘the Loose Fit’ and ‘the Low Rise – Dangerously Low’ have reinforced Levi’s as a product innovator with the ability to interpret fashion in an interesting manner. On the other hand, prospect-centred options focus on the needs and wants of consumers and are projected through various emotional and rational appeals. Following are the popular strategic options that can be chosen depending on the brand’s internal and external environment conditions as well as its goals:5 1. Generic approach: This approach is usually taken by market leaders, monopolists or category creators. A brand ignores the competition in the category and advertises as if it is the only brand. Amul Butter, which claims to represent ‘The Taste of India’ or Coca-Cola which swanks ‘Thanda Matlab Coca-Cola’ are examples of this approach. Also consider erstwhile advertising by Bajaj scooters, VIP suitcases, Vadilal ice cream, etc. They were the monopolists of their times and followed a generic approach. Many times market leaders or followers of generic approach have seen their brand names get synonymous with the product names. For example, Xerox stands for photocopiers, Cadbury’s for milk chocolates, Dalda for vegetable ghee, Aspirin for all acetylsalicylic acid drugs, and so on. Generic approach is also followed by brands that rush to create a category before competitors follow suit. However, in today’s age and time, with the onslaught of competition. 2. Unique selling proposition: A brand may have a true and distinctive competitive advantage called the Unique Selling Proposition (USP) that is both valuable to the brand’s customers and unexploited by its competitors (since they do not possess that feature). Advertisers should take advantage of it. However, the USP strategy is rather a rarity since most brands have started attaining parity. Paras Pharmaceutical’s prickly heat powder Dermicool had only one advantage over the market veteran Nycil research had shown that consumers too valued a cooling sensation to allay the feeling of burning and pricking caused by prickly heat. Hence, Dermicool’s ad agency Mudra, which had partnered with Paras from the product formulation stage and given the idea of ‘menthol and coolness’, exploited this advantage for a creative campaign that made the brand an instant hit. Remember the USP-enforcing tagline ‘Thanda Thanda Cool Cool’?6

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3. Brand image: in marketing communication. In this approach, advertisers try to establish a difference based on factors that are extrinsic to the product. For instance, in Figure 6.8 Maruti Suzuki SX4 can be seen creating a strong masculine brand image for the car. To media-blind and culturally-impoverished non-users, Elle 18 cosmetics are like any other cosmetics, with a few colour variants here and a few design variants there. But it’s not the product alone that sells. Elle 18 wears a rebellious and carefree attitude that is a hit with teenage girls. One of its commercials shows a college campus where, in spite of a notice to the contrary, teenage girls smuggle in lipsticks as colour tubes in an art class. When an uncompromising teacher gets mad on seeing a bunch of lipstickclad girls, the latter give a sharp-witted answer that what they have worn is not lipstick pranks on neighbours, teachers and the people around. Clearly, the lipsticks don’t have

4. Competitive positioning: While all strategies do recourse to positioning to a certain extent, this strategy is purely about positioning the product in the consumer’s mind relative to competition. Note the emphasis. While brand image strategy is about creating an image for a brand, positioning strategy goes a step further and creates a brand image ‘relative to competitors.’ The emphasis is on establishing the difference or superiority of the brand through a direct or indirect comparison. This strategy is particularly adopted by new entrants in a crowded market or by brands that would like to challenge the market leader. For example, Thums Up is clearly positioned as the stronger cola while Pepsi is positioned as slightly milder and for a younger FIGURE 6.8

Maruti Suzuki SX4 creates a strong macho image of the car.

Courtesy: Lintas Lowe. Reproduced with permission.

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audience. Thums Up’s compared to other colas, whereas Pepsi a touch of satiric humour to its stories. Similarly, when Captain Cook salt was launched, it Tata Salt. Positioning is not static or one-time but can change or evolve over time. The gospel behind the right positioning is that in order to make waves in the marketplace a product must live up to its positioning promise. Advertising guru David Ogilvy puts it in a 5. Pre-emptive claim:

Almost all Indian ice creams are vegetarian, but Vadilal cent vegetarian ice cream’. Similarly, Anchor competitors. Instead, it asserted that it was a ‘100 per cent vegetarian toothpaste.’ For all those customers steering clear of a mouthful of chemicals at the start of the day, the peril that they may be gargling on something non-vegetarian too was a suicidal thought. Thus, with one pre-emptive claim, Anchor arrived. Also, Amul ice cream’s claim that its products are made with ‘real milk’ makes one suddenly question the ingredients that competitors use.

6. Resonance: Another strategy best suited for products with little or no differentiation. This strategy links the product with an experience or occasion (birthday, marriage, Diwali, picnic, this strategy. In fact, they went a step further and even created occasions to increase product usage – friendship day, mother’s day, father’s day, peace day, etc. In 2010, Select Citywalk, an up market mall in South Delhi, spent around Rs. 80 lakh on marketing during Christmas, thanks to which it witnessed record-breaking footfall of 1,25,000 on Christmas.7 Even Big Bazaar, the mega retail outlet, made a connection with shoppers by inviting them to the store for ‘shopping for a wedding.’ Weddings in India are elaborate affairs and shopping is an integral part of the Indian wedding experience. So Mudra, the agency behind the campaign, felt that the idea of friends and family from across the country shopping for a newly wed couple was a great way to showcase vastness, range and great prices.8 Another example of Big Bazaar encashing Republic Day every year since 2009. The footfalls in its stores during that time in 2010 were as high as 60 lakh, and the retailer’s revenues shot up to Rs. 240 crore. Not only that, additional Rs. 16 crore of sales were generated through standalone Food Bazaar outlets too. The initiative has been so successful that the company extended it to four initiative around Independence Day.9

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7. Affective: This strategy uses emotional appeal to surf through product’s indifference. It is most effective when competitors are playing it straight. Visa uses the emotional card in one of its commercials showing a foreigner (Richard Gere) touring around a rustic Indian village. In the marketplace, a villager points to birds in a cage and explains to Gere, “If you free birds, you give good luck. More birds, more luck.” Just then a young girl comes to a bird-shop and says, “Bhaiya pardes jaa raha hai, uski bhalai ke liye paanch panchi chhodne hain.” But the seller informs her that with her money she could buy only one. Dejectedly, she buys one. Just as she is about to the warm and humourous note that Richard Gere has played the nice guy with his Visa power, but he feigns innocence when the bewildered girl looks at him. Although on a markets, Visa has touched the emotional chord suggesting how its power could be used for good deeds. The gesture of gifting birds reverberates with a strong sense of giving and generosity. According to BBDO, the agency for the campaign, the concept of giving is well received by all cardholders and hence the overall concept of the commercial was which reinforces the Visa brand and highlights the central theme of empowerment.10

8. Price claim: When price is an advantage, brands may base their communication on it. Nirma, Rasna, Parle G biscuits, etc. have been followers of this strategy for long. Figure 6.9 features one such ad by Rasna. FIGURE 6.9

Rasna communicates its aggressive pricing to attract the masses.

It's so simple, even a child could do the trick. All you do is mix Rasna with sugar and water, and It's ready in minutes 2 bottles of syrup to make 32 glasses of delicious soft drink, Just compare that with any syrup/squash and you'll fine Rasna works out to less than half cost.

Courtesy: Pioma Industries, Mudra. Reproduced with permission.

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The above-mentioned strategies are not mutually exclusive. While choosing a particular strategic taste. Also check what strategy the competition is using and what they might have missed. Go for

Summary The foundations of an advertising campaign are rooted in research and strategic planning. Research can unearth important nuggets about the target audience, spot new trends, uncover new product uses, should begin by reviewing information that already exists. This is called secondary research, which is Designing a primary research plan calls for decisions as outlined in Table 6.1. To ensure valid results, value, using the wrong research method, biasing research results, etc. should be avoided. Advertising strategy is the ‘message’ that advertisers give to solve a communications-related problem. A strategy statement is a document that does a brief analysis of the situation and then proposes one or more alternative strategies to adopt for advertising. It contains details about the product to be advertised, its target audience, the competitive scenario, the problem that an advertiser is facing and the possible solution(s) to that problem. Strategic options can broadly be divided into product- or prospect- centred approaches. Productcentred strategic options focus on product features and product image whereas prospect-centred options focus on the needs and wants of consumers and are projected through various emotional and rational appeals. These strategies are not mutually exclusive and what strategy to choose depends on the need of the hour.

Exercise 1. How do you think would the results of the ‘Mother India’ study mentioned in the chapter impact the communication of products like school stationery, children’s milk powder and primary schools? What lessons does the study have for the advertiser of these products? selling original collections of various artists, what could be your research objectives? What research approaches would you use? How and why? How would these serve your objectives? 3. What could be the limitations of the psychological approach to researching? In what situations would the approach be useful? 4. What are the pros and cons of using a generic strategic approach? What kind of brands can use this approach? 5. In the opening vignette, what was Saffola Gold’s advertising strategy? Use the marketing communication work plan format to arrive at the strategy.

Suggested Class Projects in the report? What information can be useful in promotion design? How?

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does the product/brand face? What communication objectives would help solve that problem? Perform a thorough research on that product/brand that might be useful in designing the campaign. the succeeding chapters. 3. For the product selected above, write a strategy using the marketing communication work plan format. The strategy should not be created in void, but should be based on existing market and competitive situation for that product category. considered weak.

Critical Thinking Questions line between what needs to be researched and what needs not? substituted with mechanical tools? Argue your point. 3. With the Indian audience, the affective approach can be successfully used for almost any kind of product. Argue for or against, substantiating your argument with real-life examples.

CASE STUDY Tata Salt

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Continuing Case

Namak ho Tata ka, Tata Namak! Tata Salt in

Tata Salt delineated the standards and attributes that consumers now demand in the product – hygienic production, purity, nutrition, and iodine content. Thus, was born a new category in the food additives segment. Over the years, Tata Salt’s business has grown from strength to strength. It has become a household name with top-of-the-mind brand recall and has garnered 41 per cent share of India’s branded-salt And thanks to the purity and reliability of the brand, the preference for it spans all segments of the market: housewives; restaurateurs; industry; manufacturers of packaged snacks, colas and namkeens; and even the Indian government. The Tata Salt brand has many accolades to its credit, which stem from its association with trust, Tata creed of business. Its jingle ‘Namak ho Tata ka, Tata namak,’ an audio mnemonic for the brand, speaks volumes of its headship in the salt market.

Competition Post Tata Salt’s entry, as consumer acceptance of branded salt grew, the category became more appealing to potential manufacturers. Also, with extremely low entry barriers, the next two decades

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Captain Cook that positioned Captain Cook’s to branded salt and they started shifting from non-branded or local products to the national brands. Tata survived the Captain Cook onslaught owing to its innate superiority, strong distribution network and the overall category expansion that resulted from Captain Cook’s entry. In 1996, another national salt brand Annapurna, was launched by HLL. It was positioned on the and consumers did not perceive it as a differentiator,13 with aggressive marketing Annapurna soon nd largest player with 35 per cent market share (behind Tata, by now at 37 per cent).14 conducted a market research study in 1998 to understand the consumer psyche. The results placed Tata Salt thought of Tata Salt as the ‘saltier salt’. Tata encashed this positioning in its next commercial starring the well-known chef Sanjeev Kapoor approving Tata salt for these attributes.15 the branded salt market. Their aggressive marketing tactics, colourful and attractive packaging, and posted a healthy growth rate of 4 per cent as consumers migrated from the non-branded segment. However, the overall category growth (branded and unbranded) was a mere 1 per cent since it was non-users who could be converted. Therefore, most of the growth had to come from the unbrandedto-branded category conversion.

Advertising Strategy Looking at these factors, Tata devised its new advertising strategy. It took the competition head-on Tata Salt was re-introduced with a new campaign that touted its purity, a core virtue of the brand. This positioning as the ‘pure salt’ was rooted in the fact that Tata Salt was

more chemicals. For the consumer, the proof of purity lay in their experience of a distinctly ‘saltier Tata name. The packaging was also changed to a more premium-looking pack, a response to consumer feedback. All of this translated into a better value proposition for the consumer and a dominant market share for the brand. strategy. The results revealed that Tata Salt’s competition. But the marketing strategy study revealed that in spite of the strong brand awareness, the differences between the players were getting murky.16 This made Tata set new objectives as follows: ∑ To break free from clutter in the category caused by the recent entrants ∑ cent17

Revised Advertising Strategy In view of the above objectives, Tata decided that the best way to differentiate was to connect with the consumer at an emotional level, since competitors were focusing on the functional properties

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of salt. So, while Tata Salt had thus far been positioned on the rational aspects of ‘purity’, its new positioning would carry this proposition forward but within the larger context of the consumer’s life, encompassing both rational and emotional manifestations of ‘purity’. In addition, being the market leader, Tata wanted to grow the market by increasing the user-base. Tata Salt by elevating the brand to the status of a national icon, it could not only expand the user-base but also break free from the clutter. Tata Salt’s greatest strength as a brand was derived from its association with trust. Its parent, would be highlighted in the next campaign. Thus, the advertising strategy was aimed at rendering the twin messages of (a) purity (rational and emotional expressions) of the brand and (b) its leadership position. This advertising strategy then planted the seeds of the ‘Desh ka namak’ campaign, which we will discuss in the next two chapters. Case continued in the succeeding chapters…

Questions: 1. Spell out the strategy of Tata Salt through the marketing communication work plan format. Tata followed in its ‘Desh ka namak’ campaign? Do you think this approach would have helped Tata in meeting with its objectives? Why? 3. Do you think Tata’s ‘Desh ka namak’ advertising strategy addressed the objectives that it had laid out? www.tata.com, and view print and television ads of Tata Salt at com ‘Desh ka namak’ strategy since it was launched.

Endnotes 1. com; com; com;

www. ;

3. www.cybermediaresearch.co.in 4. www.indiainfoline.com 5. Journal of Advertising 6. www.mudra.com 7. Day Marketing: Open your wallets day,” Pitch 8. www.mudra.com 9. Day Marketing: Open your wallets day,” Pitch

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www.tata.com image, company plans ad campaign,” The Economic Times, www.superbrandsindia.com www.superbrandsindia.com

13. 14. 15. 16. 17.

www.tata.com The Economic Times, www.tata.com www.tata.com www.tata.com

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Chapter 7

Finding the Big Idea Chapter Objectives After reading this chapter, you will be able to: Grasp the concept of a BIG idea in advertising the bill Learn some creative techniques that help advertisers arrive at that one BIG idea that is the central theme of all advertisements or campaigns for a brand

Creativity is an advertising agency’s most valuable asset, because it is the rarest. – Jeff I Richards not mean there cannot be fun in business.

In Perspective

– Leo Burnett

Happydent White’s Idea Bulb1 Review the Happydent White TV storyboard (Figure 7.1) where a cameraman with a thick moustache, a red bow and an antiquated camera shoots pictures of

Happydent White. Happydent White of teeth whitening on chewing was launched by Perfetti India Ltd in June 2001. The gum was tested in the University of Zurich, and it was ascertained that its regular consumption could reduce dental plaque.2 For Perfetti, launching a new gum in an already crowded Indian confectionary market was not an easy task. It entrusted the Happydent contract to the McCann-Erickson agency and the team got thinking about ideas to promote a niche and medicinal, problem-solver kind of chewing gum, which contradicted with the very nature of a gum which is primarily

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a fun thing. Further, in a country like India where people are not overly conscious of oral hygiene, the advertising message had to be anything but therapeutic. The ideas for an ad revolved around the theme of what sparkling diamond-like teeth can do. The agency considered various ideas: attract the opposite sex (a worn-out idea), attract the same sex (a politically dangerous idea), improve dental health (a boring idea), and so on… and then struck the thunderbolt in the form of an extremely eccentric idea. How about teeth This winner idea struck Prasoon Joshi, Regional Creative Director, South & South East Asia, McCann-Erickson, during the shoot of another commercial. The idea was eccentric, with the likelihood of working for youth, who were the prime target for the gum. Thanks to the idiosyncrasy of the idea, it got instant approval from the client. And in just two days, absurdity could surface well. The ad stayed away from clichéd urban scenery and instead chose to depict a rustic studio, a typical village belle, a comical photographer and his sidekick with dazzling teeth. It was loaded with Indian metaphor and the grammar of youth’s language. Even the cutouts of Bollywood actors and the entire setting of the ad was very Indian and youthful. In other words, the ad spot for a regular confectionery Thanks to the quirky idea, Happydent White’s brand positioning is different from its contemporaries, to say the least. And thanks to the abstract humour, the brand succeeded in breaking from the clutter and also being included in the 87th edition of the Shots Show Reel, a quarterly showcase of the best commercials from around the world.3 To further strengthen the positioning, the brand initiated the ‘Happydent Miss Beautiful Smile’ award at the Femina Miss India Contest. All this paid off and the company achieved a sales growth of 105 per cent.4 FIGURE 7.1

Quirky humour helps Happydent White break free from clutter.

Setting up his camera, a man gets ready to take a photograph

The photo session continues with the lady posing in different styles

A model takes her pose before it as the cameraman shouts ‘‘esmile’’.

Finally tired, she requests the photographer, ‘‘ab bas ji ’’

(CONTD)

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(CONTD)

Begging her for one more, he tilts the face of a man standing beside him

As the photographer shouts ‘‘esmile’’, for the next shot, the man gives a bright smile, making up for a flash

The man immediately puts something inside his mouth and starts chewing

MVO: ‘‘Happydent White. Smile please’’. Super: ‘‘The teeth whitening gum’’

Illustrations: Rishit Shroff

The opening vignette points out that advertisers are always in a quest for ideas that serve as central ideas, story themes, points of differentiation, etc. for their ads. While these ideas can occur at any random moment in time, they can also be sparked through various creative techniques. Also, while some people are better at generating ideas, all of us can foster our creative skills through a systematic learning approach. This chapter introduces us to the big idea in advertising, and creativity and creative techniques that advertisers use to exercise their grey cells.

7.1 WHAT IS A ‘BIG IDEA’? In the previous chapter, we talked about the linkages between strategy, big idea and creative execution. To recap, the big idea is a creative concept to execute the advertising strategy and communicate the brand message, and serves a central theme for a series of ads in a campaign. Once the strategic In Chapter 6 (Table 6.1), we also looked at examples of big ideas used for executing advertisements of some popular brands. A big idea involves all—the head, the heart and the gut feeling. To come up with a big idea, a creative leap needs to be taken. The advertiser needs to distance himself from the shelter of the strategy statement and plunge into the alien creative arena. While there are no outlined steps for arriving at the big idea, advertisers usually begin by reviewing the advertising strategy and the researched information to get into the heart of the problem they are trying to solve. Then begins the creative process of generating various alternative ideas for the problem in question. Next, the ideas are evaluated for a reality check—whether they are really good, whether they would solve the problem, and whether they are in alignment with the strategy or not. If answer to any of these questions is in the negative, the idea is rejected. Finally, the one best idea is selected for execution while the other ideas are retained as backup or support ideas.

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7.2 GETTING CREATIVE TO FIND THE BIG IDEA Hitting on an idea that communicates the strategic message in an artistic, imaginative and exciting way is not an easy task. Advertisers need to lubricate their grey cells and put on their creative thinking caps for best results.

7.2.1 What is Creativity Creativity is about giving birth to something that did not exist before. It is the application of past experiences or ideas in a novel and unexpected way. It is being innovative, imaginative, original and different. Creativity is both an art and a science that can be acquired with practice. The upcoming sections tell you how.

7.2.2 Traits of Creative Minds expressiveness and openness to change. These skills may be genetic, acquired or situational. Additionally, the following traits signal the presence of creativity. ∑ A questioning attitude: Have you ever noticed why a child learns the fastest? Or why things seen or heard in childhood remain etched in memory? That’s because a child has an insatiable urge to learn or know. As an infant, it tries to absorb the surroundings through its various senses. When it learns to talk, it can’t stop asking. ‘How do ants talk? Why do cars have four wheels and I only two legs? Why can’t I walk on water?’ That is grassroots thinking. But unfortunately, we are taught to accept things as they are and to kowtow. Asking too many questions is considered pester-some. Creativity calls for breaking from this conformity and reasoning things out. ∑ The courage to take risks: We are all taught to tread the beaten path. Risks are only for the adventurous ones. But the truth is that it is those who take risks that succeed. Creative people do not care much about the consequences of a certain action or what others will think of them. The following few lines of this anonymous poem beautifully sum up the message: To love is to risk not being loved in return. To live is to risk dying. To hope is to risk despair. To try is to risk failure. But risks must be taken, Because the greatest hazard in life is to risk nothing. The person who risks nothing, Does nothing, has nothing, and is nothing. They may avoid suffering and sorrow, But they cannot learn, feel, change, grow, love or live. Chained by their attitudes, they are slaves, They have forfeited their freedom. Only a person who risks is free!

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∑ A sense of humour: Humour is an indicator that the creative system is at work. To be funny health. Laughing releases chemicals called endorphins that relieve pain and stress and put one in a better shape for divergent thinking. Although a sense of humour is a trait that some people are born with, it can also be cultivated by learning to laugh at one’s idiosyncrasies and follies. Don’t carry the undue baggage of grumps and grumbles, worries and stress. Don’t ∑ The habit of observation: Tax your memory for a few minutes and answer the following questions: 1. What items were placed on your dinner table last night? How full was the ketchup bottle? 2. What did each of your family members or people you interacted with wear yesterday? 3. What do the labels on your T-shirts say?

used? If you’ve not been able to answer most questions satisfactorily, don’t worry. You are like most people who are too preoccupied to observe. But observation skills can be developed, and they needs to be, for creative people have a highly developed observation sense. They are alert and watchful, and often reach conclusions through instinct than through reasoning. ∑ The ability to visualise: Creative people have a good visual imagination although they can be quite verbal. They don’t think of a monster called Shrek, they can see it in their imaginations— green and ugly and big. They remember their shopping lists by visualising the items kept in the ‘to-buy shelves’ of their minds. They organise numbers in visual ‘spaces’ in their minds. They think not only in words, but also in pictures. They are good at describing the looks, sounds, smells, tastes and feel of things either verbally or visually. ∑ Openness to new experiences: How many times did you taste the new dish on the menu instead of your usual favourite? Did you ever hang out with a bunch of people you weren’t very familiar with? Do you always take the same road to work or try to explore newer routes? Creative people are open to new and unknown experiences. New experiences are not so much risk-bearing as they are different. “New experiences give a novelist more characters to write about, a painter more scenes to paint, and the creative team more angles from which to tackle an advertising problem.”5 ∑ A positive mindset: From the ancient Indian literature to the modern inspirational texts, many a book has said that a man becomes what he thinks. You can trace this thought in the

performed in a school in San Francisco. The principal had called in three teachers and said, are going to give you 90 selected high IQ students to teach. We’ll test how much they learnt at the end of the year.” The principal told a similar thing to the selected students as well. By the end of the school year, those students had achieved 20-30 per cent more than other students in the entire city. However, the truth was that the chosen teachers and students were

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just run-of-the-mill teachers and students, selected at random by drawing names out of a hat. How then, did they perform at such an exceptional level for the entire year? The answer can be found in their attitudes. They had an attitude of positive expectations; they believed in themselves and one another and that attracted positive results.6

7.2.3 Tips on Stimulating Creativity If creativity is not necessarily inborn, how do you foster it? Here are a few tips suggested by various experts: ∑ Meditate on your goal: Don’t lose sight of your dream. If you want to take up photography as a career, start noting photographic situations and settings, taking pictures with a beginner’s camera, making a paper-box camera, trying out different compositions, visiting photography exhibitions, talking to experts, reading photography-related magazines, etc. Think of the rewards you would get when your goal is accomplished. Basking in the glory of achievements is a great impetus to working hard. Create an atmosphere around you that constantly reminds you of your goals. ∑ Meditate on your self: By meditation, we mean sitting in silence. In the modern day, we are constantly bombarded with inputs from the media, other people, etc. Hence, we never spend time in silence with ourselves. As long as our mind is full of thoughts, we can’t touch base creative ideas come to us. ∑ Journal your thoughts: past your conscious thoughts. In her book, The Artist’s Way Morning Pages Journal, author Julia Cameron advises to by then you’ll have gotten past most of your conscious thoughts. It’s best to try this technique earlier in the day, when you are not too full with the events of the day. Don’t censor yourself, don’t let your pen stop and don’t use a computer.7 When the mind gets purged of routine thoughts, creative ideas take deeper roots. ∑ Sleep on problems: Sleep kindles lateral thinking. During sleep, our brain reorganises our episodic memories, which store information about places, people, exchanges and experiences. when the powers of the subconscious brain can be utilised. When you sleep, brief your subconscious mind of the problem you are mulling over and command it to come up with creative suggestions. ∑ Take some time out for yourself: To think. To read. To take a vacation. To watch a play. To indulge in a hobby. To take a leisurely walk in a park. To purge your brain free of all the garbage it keeps receiving everyday. It’s important to revel in the simple pleasures of life. Also, a garbage bin and keep your television and mobile turned off. The stock market is not going to do any better if you follow it. And nor are the Lok Sabha or the ruling party. ∑ Nurture hobbies: interesting. Hobbies lubricate your creative machines and prevent you from rotting from the daily rut. They provide a vent for self-expression. They foster creativity. Also engage in creative activities that catch your fancy. Sketch cartoons, visit an art gallery, attend a musical

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symphony, watch the latest hit movie, read a wacky novel, hang out in places brimming with youngsters, and the like. Apart from aiding the creative process, they offer a change of activity from the trite routine and kick-start the thinking process. ∑ Watch your company: People are known by the company they keep. And they get affected by it. If the company you keep is creative, positive-minded and vivacious, you will be too. ∑ Have fun: All work and no play make Jack a dull boy. Do you remember at what stage of life you have been the most creative? At childhood. You made clay vessels using the mud broken bicycles, you tried to write secret messages in an unknown language, you tried to stage puppet shows from behind your grandfather’s chair, you made weird objects from paper, you discovered hidden treasures from your school campus, and you fantasised animals while looking at the shape of clouds in the sky. It is no coincidence that childhood is also the stage at which you play and have the most fun. Playing and having fun recharge your mind, exercise ∑ Speed up: mind. Hence, to circumvent your conscious mind and tap into the creative power of your subconscious mind, go fast. You can start this with journaling and brainstorming (discussed below) without pausing, and can gradually bring the speed to other areas of your thought process.

7.3 BRAINSTORMING FOR CREATIVE IDEAS One very useful technique for generating alternative ideas is brainstorming. Brainstorming is the process of coming up with creative ideas in a group. In the words of Alex Osborn, the father of

participants put social inhibitions and rules aside and temporarily suspend their judgement with the aim of generating maximum new ideas, regardless of their worth.8 The rule is that no one should the link will be broken. Brainstorming is also an effort to bring out those imaginative ideas that were locked away because you thought that the budget might be tight or the boss might not like it. ‘Think before you speak,’ or ‘Look before you leap,’ are quotes that do not apply to brainstorming. In this process, there is no premeditation. When you hit on an idea, you spit the idea. Often brainstorming sessions are arbitrated by an expert who keeps the tempo up and ensures that the group stays on course. During the session, ideas are recorded by a designated person. After the session, good ideas are sifted out from the rest. The quantity of ideas is often more important than the quality because it is often the 51st idea that becomes the breakthrough concept. Also, bad ideas can many a time serve as catalysts for good ideas.

7.3.1 Preparing for Brainstorming Although brainstorming is a group activity, preparations for it can begin individually before the

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of creative ads, interesting quotes and phrases, interesting names and product descriptions, visuals, photographs, etc. The objective of this exercise is not to copy other advertisers’ creative, but to use these ideas as a springboard for new ideas. They also keep a diary or notebook handy as an idea log because ideas can come at the most unexpected moment. They note these ideas in the idea log at the To prepare for group brainstorming, review the strategy and research material compiled by your account planner, walk yourself through the ad production process, visit the store, and try the product. Further, brainstorm alone for 20-30 minutes. Write down ideas very fast. Focus not on the quality but on the quantity. Also, don’t jump on any one idea in a hurry. Keep going till you have sapped your brain dry. The entire idea-noting process could take from days to weeks. Give yourself a reasonable timeframe. Finally, don’t edit ideas but bring them all with you to the group brainstorming session. the walls. These would also help kick-start the brainstorming.

7.3.2 The Art of Brainstorming advertising but to think in terms of ideas. Create an environment of collaboration and comfort for ideas to spawn. Ideally, the brainstorming room should be spacious, with a large, long table in the centre, and a facility for pinning large pieces of paper to the wall. Summaries of preparatory work displayed around in the room can serve as sources of inspiration. There should also be a large roll of paper and coloured markers on the table for people to jot down any random thoughts. Often, agencies also include representatives of the client in the brainstorming session. While there is no standard outlined process of coming up with ideas big and small, following are some variables on which you could discuss. However, note that while you review the examples given below, focus more on the creative idea behind the ad, and not just on the execution. 1. Strategy: You can begin by reviewing the strategy statement discussed in the previous chapter. When you begin by thinking about a strategy, it checks you from going astray. an organisation, its customers, the message to be conveyed, etc. The strategy for Air India Express was to establish itself as a budget airline that the ideas chosen was of showcasing India to the world using the plane’s exterior as a canvass. The agency hoped that his would also portray the airline as the cultural ambassador of India. Each plane’s tail thus had different designs on each side ranging from the festivals of India to Indian motifs to musical instruments to camels and elephants. The chosen designs, look and feel were to give the airline a distinctively Indian and yet a contemporary look. The designs got the designer the ‘Best Graphic Designer Award’.9

2. Target audience: The member of your audience is not a mere statistic (17, single, middle personality, think lifestyle, think behaviour. What does your potential customer do, like, eat,

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wear, drive, speak, watch, etc? Jot down words and visuals that come to your mind when you think of your potential customer. Dark, loves pink, is independent, plays with friends in the evening, always on the go, loves movies, watches Tom & Jerry, etc. However, it is unlikely that all members of your target audience will match all the characteristics you described. You can

Many years back Surf housewife who demanded her money’s worth. She paid heed not only to cost but also to cost-effectiveness. In other words, she bought not a cheap detergent, but a value-for-money detergent. She was intelligent and vociferous and did not shy

of the target audience helped Surf give birth to the onscreen character ‘Lalitaji’ (Figure 7.2) who went down the advertising hall of fame for her persuasive power. FIGURE 7.2 Symbolic of Surf’s typical consumer, Lalitaji went down the Advertising Hall of Fame.

product. Will you call mobile yogurt gogurt? calls its dental product ‘dental cream’ instead of toothpaste. Livon calls itself ‘silky potion’ instead of hair conditioner. Come up with names that are catchy, tell you something about the product, intrigue the audience, are easily pronounced and do not have similar sounding competitor brands. 4. Media: A lot of times the characteristics of the media you advertise in will serve as the springboard for ideas. Often it is about the right media: in-store communications, advertising, promotion, events, direct response, the web, public relations, etc. And then think about the idea and how it applies. Don’t get stuck thinking that the world exists on a vertical page or a Courtesy: Superbrands, Volume I, 2004. Reproduced with 30-second block of commercial time. permission. Think of some unconventional media that you could use to promote your product. For example, some 10 years back a few clever media planners discovered the value of animated moving logos on television during critical moments in cricket matches. Today it is Indian cricket’s most expensive property.10 Similarly, to arouse the sensitivity regarding bad body odour, Rexona deodorant stuck life size stickers of people on automatic sliding doors of departmental stores. When someone approached, it

Chapter 7 FIGURE 7.3

Unconventional media as a springboard for ideas.

Courtesy: www.oacasia.org, Reproduced with permission.

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FIGURE 7.4

Courtesy: www.oacasia.org. Reproduced with permission.

looked like people moved away from the nearing person owing to body odour. The entering person found the brand message inside (Figure 7.3). Biotique used a light pole to convey the split-end preventing properties of its shampoo (Figure 7.4). The Tide Levis Sykes detachable lift, Reliance Life Insurance lifeline and AIS Glass Stronglass train stopper also use media in a novel way to convey their messages (Figures 7.5).11 5. Situation: Think what the situation will be like when consumers will come across your ad. Think where the billboard will be put up, what route will the bus you advertise in take, where would people be listening to the radio at nine in the morning, etc. Answers to questions like where and when a customer will see your message, in what condition, etc. can spur a lot of creative ideas. For example, the billboard of an apartment home scheme read, ‘If you were FIGURE 7.5 (a)

FIGURE 7.5 (b)

Courtesy: www.oacasia.org. Reproduced with permission.

Courtesy: www.oacasia.org. Reproduced with permission.

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FIGURE 7.5 (c)

FIGURE 7.5 (d)

Courtesy: www.oacasia.org. Reproduced with permission.

Courtesy: www.oacasia.org. Reproduced with permission.

living here, you would be home.’ Or a radio ad that was broadcast in the evening rush hours urged listeners on their way back from work to turn their cars towards a shopping mall for 6. Current affairs: Current events quickly occupy people’s minds and catch attention. Consider if something noteworthy happened in the news or if an issue has been hotly debated about. For example, Amul, a forerunner of such ads, has always kept its promotions up-to-date with current events and issues (Figures 7.6). While this tactical approach always keeps the communication fresh with new and changing ads, it is an expensive one and not recommended if a given ad is intended to be in use for a long time. FIGURE 7.6 (a–d)

Amul keeps its communication up-to-date with current issues.

Indian Cricket Coach Mr. Greg Chappell resigns after debacle in ICC World Cup 2007 and bitter feud with players - April ‘07

Bollywood romantic comedy film CHEENI KUM (A Sugar Free Romance) in which superstar Amitabh Bachchan shares time with little girl, suffering from leukaemia, wise beyond her years -June ‘07.

Chapter 7

On the popular movie ‘Harry Potter and the Order of the Phoenix’ with Harry Potter and other characters at Hogwarts School of Witchcraft & Wizardry. June ‘07

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On Congress-led United Progressive Alliance (UPA) and Left Party’s nominee Ms Pratibha Patil for Presidential election-June’07.

Courtesy: Amul, Reproduced with permission.

7. Competition: Often competition can be a source of creative ideas that can be used at a tactical level, if not a strategic one. Review Figures 7.7a-c. Figure 7.7b shows how capitalised on Jet’s advertising right on the next day the latter put up its billboard and how on the third day GoAir (Figures 7.8 a-b). 8. Shortcomings: of trying to veil the obvious, accept it gracefully and even cash it to your advantage. Perhaps it’s not such a big deal as people are making it out to be, or perhaps you have something else that makes up for the inadequacy. For example, Avis, a US-based car-rental company humbly accepts, “We are #2. We try harder.” A local clothing store proclaimed, “We don’t have mauves, lilacs, fuchsias or tangerines. We have price deals.” Similarly, turned around a

inimitable FIGURE 7.7 (a-c)

style (Figure 7.8).12 Subtle to direct comparisons are regularly made by organisations.

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FIGURE 7.7 (b)

FIGURE 7.7 (c)

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FIGURE 7.8 SimplyMarry.com gets inspired by newspaper matrimonial classification.

FIGURE 7.9 Pepsi turns around a missed opportunity into a winning campaign.

Courtesy: SimplyMarry.com, Mudra. Reproduced with permission.

Courtesy: Superbrands, Volume I, 2004. Reproduced with permission.

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9. Correlations: Does your product look, feel or behave like someone or something? Garnier Wrinkle Control cream compared wrinkles with the skin of a bulldog. A shoe company put up Internet banners that showed parts of its shoes that looked like a woman’s body parts. Only when the user saw the full picture on clicking on the banner, did he realize that the picture was that of a shoe! Quite a creative way to depict the sex appeal of a footwear brand. How would your product be if it were a living and breathing person or Pillsbury Atta dough and dressed like a chef.

Big Babool chewing-gum man

are powerful because they can communicate at many subterranean levels effortlessly. You could even personify your product’s enemies to make them look harmful, ferocious and calling for urgent solution, viz. your product. For example, the sales of an agricultural pest killer increased manifold when the pest in question, which was invisible to the naked eye, was shown in an enlarged version as a horned, evil-looking and notorious crop destroyer. The ad for Etiquette Serviettes in Figure 7.10 also hopes to accomplish the same.

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11. Popular culture: Films, music, books, sports, FIGURE 7.10 Personification of germs may arts, etc. are often the inspiration behind help realise the need for tissues. many ads, like the Amul Butter ads in Figures 7.6(a-d). An ad of Eveready batteries showed Amitabh Bachchan in the Sarkar movie style setting, telling the story of an unfortunate man who didn’t use Eveready advertisements around cricket during the time of cricket series or the World Cup. Popular culture is often the best way of establishing fast connections with audiences. 12. Colours: Think colour. Can it be your product or communication differentiator? Print ads as well as television commercials of EverYuth’s Orange Skin Vitalizer are orange whereas those of its Cucumber Clear Skin Mask are green. Everything from the models’ dress and accessories to background items are colour coordinated with the product colour. Eveready batteries go to the extreme of claiming, “If you aren’t red, you are dead.” There is no other creative differentiator for this product other than its distinguishing Courtesy: Lintas Lowe. Reproduced with permission. red colour that stands for liveliness and long life of the battery. 13. Shapes: Shapes too can be used imaginatively. Absolut Vodka uses the shape of its bottle to signify something different in each ad. For example, in an ‘Absolut Jaipur’ ad, the bottle shape could be seen carved in the jharookha of a haveli. Review the ads of that arrange pipes in the shapes of an old man, an injured person, etc. to depict problems like ageing, leaking and cracking (Figures 7.11a-c). 14. Visuals: Can iconic visuals be used to communicate the central idea of your product? Consider communicating the message with just pictures, like the ad of Tide detergent that showed three

7.4 SOME MORE CREATIVE TECHNIQUES analogies is the simplest of them. An analogy is comparison of two unrelated things, through which it is derived that something is like something else in some respects but not in others. For example, a Lamborghini is like a cheetah in that they both race at super fast speeds, can travel for long distances, can take sharp turns, have sleek bodies, and can sense where they are going; but they are unlike in that they have different means of propulsion, work in different terrains, etc. Comparison can help dramatize and describe a product through an instant connection with a commonly known thing. For example, Jergens lotion says that dry skin is like the scaled skin of an alligator; Garnier anti-wrinkle cream compares wrinkles with the loose skin on a bulldog’s face; etc.

Chapter 7 FIGURE 7.11 (a-c)

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Shapes can often be the source of advertising ideas.

Courtesy: Relpipe, Mudra. Reproduced with permission.

In a technique similar to analogy, called free association, you think of a word and then list everything that comes to mind when you think of that word. For example, the idea ‘blue’ does not blues, blue whale, deep blue seas, rare blue eyes, blue berries, blue-blooded people, blue-chip stocks, blue bruise, everything in the commercial painted blue, etc. Associative thinking can also be visual, i.e. you can start with a picture or an idea. For instance KamaSutra ads associate the act of ‘having sex’ with the unscrewing of a cork, a billiard ball bobbing near the hole of the table, the opening and closing of the lid of a pen, etc. A free association idea involves a ‘mind shift.’ Instead of seeing the obvious, it looks at something from a different angle. Advocate of another technique is called divergent or lateral thinking, Edward de Bono, says that in real life, we assume certain perceptions, concepts and limits before solving a problem. However, in lateral thinking, we seek to rethink, challenge or change these very perceptions. We search for new ways of looking at things, relax rigid controls on thinking and encourage ideas whose probability seems low. This is also popularly known as out-of-the-box thinking. For example, consider this lateral thinking puzzle by Lewis Carroll: John gave his brother James a box: About it there were many locks. James woke and said it gave him pain; So gave it back to John again. The box was not with lid supplied Yet caused two lids to open wide: And all these locks had never a key What kind of box, then, could it be?

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have mulled enough over the riddle, and before you begin to read further, you can take a look at the answer at the end of this chapter. “The human brain makes sense of the world by building up patterns based on experience. These patterns allow us to see the world in a particular way, and, in so doing, we reinforce the patterns. But the patterns also contain an inevitable drawback – unless we learn to escape from the obvious way of looking at things, we cannot develop new ideas. De Bono christened the escape process ‘lateral by logic. For example, one of the techniques is that of making a nonsensical statement and then examining it to see where it leads. This method was applied in recent years in the insurance industry by Ron Barbaro, a man who has since become president of Prudential Insurance in America. Searching die.” From this, he derived the much less absurd and ultimately usable concept that in case of lifethreatening diseases, insurance companies should make an advance payment to the living insured. And that has since been widely adopted.”13 The technique of right-brain thinking focuses on emotional, perceptive and nonverbal thinking, contrary to left-brain thinking, which is rational and controls speech and writing. Right-brain thinking calls for expressing ideas in terms of visuals and emotions. Thus, problems may be solved by drawing Before we close, here’s the answer to Lewis Carroll’s lateral thinking puzzle: As curly haired James was sleeping in bed, His brother John gave him a blow on the head. James opened his eyelids, and spying his brother, This kind of a box then is not so rare, The lids are the eyelids, the locks are the hair.

Summary The big idea is the idea that an advertiser selects for communicating the brand’s strategic message in a creative way. To generate the best ideas, advertisers must get creative and bring to life something that didn’t exist before. a questioning attitude, the courage to take risks, the habit of observation, etc. Creativity is not necessarily inborn, but can be fostered by being aware of one’s dreams, regularly spending time with oneself, nurturing good hobbies, and the like. A useful technique for generating alternative ideas is brainstorming, which is the process of coming up with creative ideas in a group. Participants put social inhibitions and rules aside and temporarily suspend their judgement with the aim of generating maximum new ideas, regardless of their worth. Among other common creative techniques is that of generating analogies by drawing comparisons between two unrelated things and dramatizing them. Another technique is of free association wherein

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one thinks of a word and then lists everything that comes to mind on thinking that word. In the technique of lateral thinking, one seeks to rethink, challenge or change the perceptions of a problem and think out-of-the-box, as ideas whose probability seems low may sometimes turn out to be the best solution. Finally, right-brain thinking focuses on emotional, perceptive and nonverbal thinking contrary to left-brain thinking, which is rational and controls speech and writing. Often ideas are expressed in terms of visuals and emotions.

Exercise 1. Is creativity genetic or can it be developed? What are some ways of fostering creativity? 2. What is brainstorming? In what situations is it useful? Can any person be skilled at the art? 3. Can lateral thinking be practiced? If yes, how? If no, why not?

Suggested Class Projects 1. Divide your class into groups of 8-10. Now brainstorm on how you can improve the ranking of your institute. What is the target audience you are trying to woo? How will you attract smarter different from other institutes? What will your prospectus look like? How can you improve on the infrastructure? Try to think of unconventional ideas. Choose one teammate to write down all the ideas you come up with on a board so that they are visible to all. Give yourselves 30 minutes for the discussion. Now select the ideas that you think can be implemented and present them to the other teams. Compile ideas of all teams and present them to your institute’s board, management committee or the director. 2. Arrive at the big idea for the product that you chose for launch in the ‘suggested class project’

in case you realize that one of them has a better potential, strategically and creatively, than the idea you chose as the big idea.

places, etc.) that are like these things in some way. Try to freely associate the word ‘bathroom’ with related words and pictures. Do these spark any advertising ideas?

Critical Thinking Question The beginning of the chapter quotes Jeff I Richards, “Creativity is an advertising agency’s most valuable asset, because it is the rarest.” If creativity is so important and can be cultivated with practice,

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CASE STUDY Tata Salt (Part II)

14

...Continued from Chapter 6

The ‘Desh ka Namak’ Idea 2002, Tata Chemicals conducted a consumer research which revealed that consumers were feeling a deep and underlying unrest over the weakening social framework and corruption that was eating into India’s values. The research pointed to a hidden sentiment of patriotism and loyalty that could be drawn on in the new campaign. Grabbing this idea at a time when brand differentiation among competing salt brands, consumer loyalty and expenditure were diminishing, Tata Salt connected itself with a universal and emotional theme that consumers could easily relate to: remaining true to one’s salt and to one’s country.15 The agency Bates hit on the campaign idea from a consumer insight based on the idiomatic usage of the word ‘salt.’ In India, salt is closely associated with the sense of integrity—a connection that predates even the entry of Tata Salt. The adjective namak halaal stands for allegiance of the highest order. Even the concept of being ‘worth one’s salt’ is deep-rooted in Indian traditions. Salt represents agency saw an inherent romance in salt that could become a campaignable idea. According to Rajeev Raja, Executive Creative Director, Bates India, “Salt is a very basic necessity; a little bit can change the complexion of food.” The agency took this concept to a subterranean level and decided to draw a parallel between ‘salt’ and ‘small acts of integrity and loyalty that could collectively, change the nation.’ This simple creative idea was worded as desh ka namak khaana—akin to repaying the nation for its favours. Thus the idea desh ka namak was tied in with Tata Salt, representing both – the brand’s leadership, and purity or integrity of character.16 The new idea corresponded with the erstwhile campaigns of Tata Salt that played upon the ‘purity’ of its offering. Keeping the earlier idea of ‘purity’ intact, its proposition was simply enlarged to encompass emotional nuances of the word. Along with the purity of the brand, the campaign moved on to stress the purity of thought and action. And to depict this, the agency decided to portray the common people of India, who, through their little acts of honesty, could be seen as no less than heroes of the nation.

(Case continued in Chapter 8…) Questions 1. Brainstorm in your group and generate some more ideas around salt, purity and leadership. 2. Try to draw analogies of salt with other unrelated things. What associations come to your mind when you think of the word ‘salt’? 3. How will you visually or verbally depict situations to convey the idea of loyalty to one’s nation? Or show how commoners are heroes in everyday lives? 4. Do you think the idea desh ka namak it an idea worth enough to be the BIG idea for Tata Salt? Why or why not?

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Endnotes 1. ‘Happydent White: Guaranteeing a 1,000 watt smile,’ Sumita Vaid Dixit, www.agencyfaqs.com, January 4, 2005 2. ‘Perfetti India begins test-marketing Center Shock,’ www.thehindubusinessline.com, October 11, 2001 makes it to shots show reel,” February 16, 2005, www.agencyfaqs.com Saffola fetches a Gold and 2005, www.agencyfaqs.com , 5th ed., p. 299 (Inspirations Unlimited: 1999), p. 56 7. Julia Cameron, The Artist’s Way Morning Pages Journal, (Tarcher: 1997) 8. www.brainstorming.co.uk 9. www.mudra.com 10. Sam Balsara, “Time to rethink media approach,” Pitch 11. www.oacasia.org 12. “Pepsi,” , Volume I, 2004, pp. 148-49. 13. www.edwdebono.com 14. www.tatachemicals.net; “Tata Salt expands ‘purity’ proposition with campaign,” August 19, 2002, www.agencyfaqs.com 15. www.tatachemicals.net 16. “Tata Salt expands ‘purity’ proposition with campaign,” August 19, 2002, www. agencyfaqs.com

Chapter 8 Creative Execution in Advertising Chapter Objectives

The facts are not enough. Don’t forget that Shakespeare used some pretty hackneyed plots, yet his message came through with great execution. – William Bernbach The secret of all effective originality in advertising is not the creation of new and tricky words and pictures, but one of putting familiar words and pictures into new relationships. – Leo Burnett

In Perspective

I am the one who believes that one of the greatest dangers of advertising is not that of misleading people, but that of boring them to death. – Leo Burnett

Naukri.com Delivers a Punch with Hari Sadu1 Employment opportunities in India had started brightening up since the early 2000s and by 2005-06, had reached the zenith. Naukri.com, India’s number one

2

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Based on this insight, FCB Ulka created the ‘Hari Sadu’ commercial, the third in the

(Figure 8.1). The commercial gave the message that every employee had a right to make Naukri Naukri.com target audience.3 FIGURE 8.1 commercial.

Naukri.com delivers a punch through the creatively executed Hari Sadu

The film opens on an employee submitting his job reports to his boss. Without even...

...looking at these submissions, the boss throws them on his junior’s face.

...call the angry boss books a table Unable to understand this name, for two at poolside and tells his the person on the other side name as Hari Sadu. requests him to repeat. Offering help, the junior takes the...

The flabbergasted boss looks on as the Super plays, “Guess who’s just heard from us? naukri.com. India’s No.1 Job Site.”

Just then his secretary comes with a phone call from hotel reservation desk. Taking the...

...call and spells it for his boss. “Yes write down. Hari Sadu. H for Hitler, A for arrogant, R for rascal, I for idiot.”

As the junior says, “Now write down Sadu. S for,” his colleague completes “shameless”, leaving the boss totally astonished.

Courtesy: Naukri.com, FCB Ulka. Reproduced with permission.

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4

5

Google search to assure that no such real person 6 While the commercial 7

Ideas that Work event. It also bagged the ‘National Trophy’ in the consumer services category and 8

a pesky boss. Naukri resorts to the name’s popularity even in its Internet advertising (Figure 8.2). FIGURE 8.2

Naukri.com cashes in on the popularity of Hari Sadu on the Net.

The ‘Hari Sadu’ commercial illustrates how an original advertising idea was executed effectively through a humorous and dramatic storyline. It points to some important execution-related elements that help transform an advertising strategy and big idea into a real commercial. The humour in the advertisement helped in building recall value and in entertaining the audience. The bringing up of the brand name only towards the end of the commercial added to the impact and created a punch

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and a better boss’ – was a compelling proposition to drive them to try the services of Naukri. The witty script was an example of words used intelligently in a commercial. These and some more are the execution-related elements that we shall discuss in this chapter.

8.1 CREATIVE EXECUTION OF THE BIG IDEA The effect of a message is governed by not only what is said, but also by how it is said. The advertiser has now to turn the big idea into a real ad that will capture the audience’s attention and interest. An advertiser can say the right thing about a product and nobody will listen unless he says it in a way that people can feel it in their insides. This is where execution becomes important. Creative execution deals with the physical form of an advertisement – story, script, copy, art, music, words and phrases, colour, style, tone, reproduction, etc. It is now that the creative team in advertising actually begins making an ad based on the big idea, which is based on the advertising strategy. In this chapter, we’ll media-wise execution details are dealt with in the succeeding chapters.

8.2 BRINGING CREATIVITY IN AD EXECUTION In the previous chapter, we discussed what creativity is and how it can be stimulated. So how can the concept of creativity be expressed in advertising parlance? Advertising luminaries are of the opinion that creativity in advertising is about delivering a relevant selling message in an unexpected manner, such that it catches the attention of the target audiences, establishes a connection with them and makes them want to read, listen or view on. The agency DDB Needham aptly summarises this concept of creativity in advertising through its ROI Springboard, launched in 1996 and one of the central tools for effective communication: an idea is considered creative when it is relevant, original and impactful (ROI).9 Note the word ‘relevant’. Creativity should be in line with the advertising strategy and marketing objective. Creativity that ignores the aptness or purpose of a message fails in bringing desired results, as indicated by the illustrations below.

CASE IN POINT

Does Creativity without Relevance Matter?

Ericsson launched the smallest mobile phone in India, its ‘One black attractive lady in her early 30s, sitting alone in an open-air restaurant. A middle-aged

Ericsson mobile

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Ericsson or apt to its purpose.

‘Original’ means unique or one of a kind. Original ideas are those that only one person thinks of. Commercials that convert Bollywood songs into jingles, soap ads that tritely present delectable models bathing with their brands, television commercials that use corny song-dance sequences, are all examples of unoriginality in advertising. After the success of the fairness cream Fair & Lovely, there were a slew of brands that all emphasised the same thing in their commercials – ‘Fairness will get you appreciation, better opportunities in life or enhance marital prospects.’ Let alone the message, even their creatives looked the same with dollops of pink colour symbolising fairness. Similarly, compare the print ads of some diamond advertisers. Do you think the ads are original? While originality brings creativity, note that it comes at the cost of risk. One has to shed one’s level of comfort of following the trodden path by being different. Further, it is pertinent to check that what is original is also relevant and called for. When Vodafone launched Zoozoos during the Indian Premier League (IPL) season to promote its value-added services, it undertook a huge risk in

FIGURE 8.3

Vodaphone’s Zoozoo advertisement – a symbol of originality.

bodies and egg-shaped heads (Figure 8.3

Neither any mobile service provider nor any other advertiser had anything close to Zoozoos. They could have been a hit or

the amusing short stories told in the 30+ television commercials. The campaign received 10

The

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Creating an ‘impact’ means creating communication that is effective and that gets a particular result – public appreciation and award, increase in sales, enhancement of brand equity, etc. Impact is about the way an ad communicates. A dull ad will deliver the message but will not catch audience’s attention or achieve the desired result. Ever since its launch, Coca-Cola

Thanda Matlab Coca-Cola.’ To even suggest Coca-Cola ‘Thanda’

Thanda’

Tapori, . Thanda

Coca-Cola. The interesting storylines, the creative

indicated that Coca-Cola Coca-Cola beat arch rival Pepsi and the brand improved its stake in key markets (Punjab, Delhi, UP). It became the most 11

So what is it that creates impact in an ad? Is it creativity, award, humour, uniqueness, believability, persuasiveness, relevance, intrusiveness, entertainment value, or conformance to strategy that makes an ad effective? All these are important, but what makes an ad truly effective is its ability to help realise the advertiser’s goals. An ad that successfully achieves its objectives is said to have impact. This is not to decry the value of originality or uniqueness, but to emphasize that originality by itself does not lead to strong advertising. Imagination that merely runs riot is not creativity. Similarly, creativity leads to entertainment but it should not be used for amusement’s sake alone. Creative messages should translate into accomplishment of objective – be it sales or awareness creation – otherwise it is love’s labour lost. An advertisement may have a good blend of humour, wit and puns along with a multitude of jazzy photographs but most importantly, it needs to be focused on its objectives, which can often be achieved through a simple execution. An overly intelligent copy or a highly laced script can overshadow the subject of the ad itself. Sometimes, doing nothing much is as good as doing a lot. As a noted philosopher once remarked, “Besides the noble art of getting things done, there is the equally noble art of leaving things undone. The wisdom in life consists in the elimination of non-essentials.”

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Some years back, ANZ Grindlays Bank had unleashed a revolutionary ad campaign

Grindlays the product.12

Check out the Stori print ad in Figures 8.4. Stori makes readers pause and think to discover that America’s Ila Deys is Iraq’s Syed Ali (read right to left) and ‘Dog’ read in Arabic style is ‘God.’ Similarly, a print ad of Victorinox Swiss Army Knives showed the picture of the Indian Goddess Kali with her many hands holding her gears, and a visual of a Victorinox Swiss Army Knife below it. The headline read, “Destroyer of all obstacles.” And the baseline said, “You never know when you will need it.” The striking ad reinforced the multi-utility positioning of the brand. Find out more information about the results of these ads or the campaigns they featured in. How did they fare on the criteria of relevance, originality and impact-creation? FIGURE 8.4

Creative ad by Stori that compels a reader to pause and think.

Headline: Every stroy has two sides. For the Arabic version, read from right to left. Bodycopy: SYED ALI: GOD ILA DEYS : DOG A TALE OF IRAQ’S HERO AND AMERICA’S VILLAIN. Baseline: Clothes with a twist

Courtesy: Stori, 1 pointsize. Reproduced with permission.

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8.2.1 Tips on Creating Creative Ads Here are some tips to come up with creative ads: 1. Be a constant learner: In advertising, ideas can come from anywhere. You may be working on a liquor brand but the idea you develop could be based on your knowledge of animal behaviour. Similarly, subjects like anthropology, world heritage, photography, quantum physics, child psychology, botany, astronomy, astrology, music and more could be sources of ideas for totally unrelated products. For example, to come up with a headline like, ‘Only dead Stanza apparel, the copywriter wider and deeper your hobbies and interests, the better your advertising. Advertising insight may come through powers of observation, personal experience or past learning. For example, Whisper sanitary napkins worked on the insight that mother-daughter for managing the process. It projected the napkin as an opportunity for the mother to provide modern sanitary protection for her daughter, in a country where the primary means of protection was cloth, and enable the young girl to achieve success in her education and career. 2. Indulge with your product: “Sleep Coca-Cola, eat Coca-Cola, drink Coca-Cola” – if that’s the product you are working on. It is important to see, touch, feel, hear, read and experience your product to understand it fully. How does it look like? How do you use it? What is it made

buffaloes, called wholesome diet, considered children’s drink, loved by mothers and hated by children, an important ingredient for many recipes, almost always consumed in some form by everyone, not consumed by naturopaths and lactose-intolerants, always boiled before consumption in India (even if pasteurised), often mixed with water by milkmen, etc. 3. Understand your audience: Identify with it. A creative professional needs to put herself in the audience’s shoes. She ought to know how the audience thinks and feels, what it values and what makes it tick. For example, an advertiser of sweets might want to try out how his consumer feels if she does not have sweets for days. Even interacting with consumers and involving them in the brand development process can lead to newer ideas.

consumers to help strategically plan its clients’ communications. In a research called Faces of India

attitudes. Mrs. Gharelu

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HomePride Parachute Oil

Fair & Lovely maa Mrs. Hasmukh Popular

13

4. Know the rules before you break them: There are no sacrosanct rules in advertising and often the most creative ads have been the ones that have been bold enough to break rules. However, advertisers need to be aware of what usually works and what might be a risky bet.

Hutch’s simple visuals and negligible copy. Hutch lengths to idolize their drink, Sprite’s (Figure 8.5). Also, the condom brand Yahi hai sahi!

“Dost, aaj sirf baatein. Jo khayal rakhte hain woh jaante hain yehi hai sahi. Condoms. Hamesha.” FIGURE 8.5

Sprite commercials are popular because of their wacky unusual twists.

A guy takes a break after a jog.

He takes out a Sprite and enjoys it.

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Suddenly he hears a voice calling him, “Suno hero” and finds a...

...frog addressing him, “Chalo mujhe kiss karo, main rajkumari ban jaoongi.”

Ignoring her he walks off, but she stops him, “Main rajkumari ban jaoongi to tumhari lottery lag jayegi.”

He picks her up, but does not kiss her and she angrily asks, “Kya hua, kiss karna nahin aata?”

Putting her inside his bag, he explains, “Paisa, rajkumarian to bahut milengi par bolne wala mendak, dubara...

...nahin milega.” MVO: “Refreshing Sprite, clear hai.” Super: ‘Refreshing Sprite, clear hai.’

Courtesy: Sprite, O&M. Reproduced with permission.

5. Base creativity on strategy: One of the biggest advertising mistakes is to come up with lexicon of advertising, strategy comes before execution. A creative execution that strays

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away from the strategy will lose its relevance. While creativity should not be at the cost of a sound strategy, if creative ideas lead you to newer and better strategies, don’t shy away from embracing the best solution. When Dhara

Dhara Dhara decided to relaunch Dhara Health to give it a distinct identity and Dhara Health

that Dhara Health ’ her dad’s health and strength. The brand even ran special Father’s Day promotions and Figures 6.3 a-d and 8.6 a-b

Dhara

Health strongest’ seeped into local parlance.

FIGURE 8.6 (a)

Tactical ads on Father’s Day further strengthened the brand’s connection with ‘strong

fathers’.

Courtesy: Dhara, Mudra. Reproduced with permission.

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FIGURE 8.6 (b)

Courtesy: Dhara, Mudra. Reproduced with permission.

6. Learn to work without USPs: Not all products have Unique Selling Propositions, though brand managers may tell you otherwise. Petroleum is petroleum, be it of Bharat Petroleum or Shell. Research has convincingly proven that consumers cannot accurately differentiate between two colas but nonetheless, they prefer one over the other. Creativity lies in how you present products in ads – that’s what makes all the difference. Peter England subject to a cumbersome search process every time he bought a shirt. On the economical

Peter England

Peter England – The honest shirt. The creative campaign (Figures 8.7 a-c) Peter England

The Strategist Quarterly in 1998. Through a unique campaign, 14

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FIGURE 8.7 (a - c) The honest shirt created a selling proposition, where there was none substantial, through its communication.

Launch poster

(a)

Launch ad

(c) Courtesy: Peter England, Mudra. Reproduced with permission.

(b)

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7. Arouse audience’s interest: Remember that most ads are viewed as an intrusion to the activity that people are doing – reading, viewing or listening. Thus, advertisements not only have to deliver the message but also have to capture the audience’s fancy; in other words, entertain them. For instance, the Sprite commercial (Figure 8.5) does both—deliver the message and entertain viewers. However, while you attempt generating interest, also remember that what you are most concerned about is attracting the attention of your “target audience” and not of any passerby to draw the attention of a serious buyer through a simple ad than to use a clever ad and pull 8. Break free from stereotypes: Average advertising always sticks to stereotypes, but good advertising breaks those stereotypes and creates a spark. For example, the ‘perfect housewife and the ever present adoring husband’ routine adopted by Whirlpool washing machines is now getting boring. It’s time consumers got to see something more interesting, and also something that they can relate to. Norman W. Brown, who formerly headed Foote, Cone and Belding, once said, “Many ads aren’t creative because many companies want comfort, not creativity.” Leo Burnett once said, “The greatest sales strategy in the world is: Don’t tell me how good you make it; tell me how good it makes me when I use it.” Women don’t buy cosmetics, they buy beauty. People don’t buy insurance, they 10. Use numbers with caution: Advertisers are often obsessed with punching numbers into their ad messages with a view to add seriousness to the product. Numbers can add to the credibility, offer a competitive advantage, or prove to be meaningful when they are put into context. For instance, in the case of Britannia cheese, which says one slice is equal to two glasses of milk, or Maggi, which claims to be a two-minute noodle. Or even for categories like computers or cars where tangible results are required to be shown. But often, numbers paanch ayurvedic tatva, etc. Also, if the product fails to deliver on the promise, numbers can lead to a quicker doom. Hence, they should not be used for their sake alone.15 11. KISS: Keep It Simple and Stupid. Make the point clearly. Simple messages are effective, but not easy to come up with.

In India, Nestle Kit Kat

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12. Keep the communication current: While a brand’s value proposition may remain the same, its message strategy may periodically adapt itself to the times. Creative executions should be refreshed even more frequently as fresh executions recreate the interest in an otherwise old brand. The following example illustrates the point.

CASE IN POINT Cadbury builds a bond with Indians16 Since its launch in India, Cadbury’s Dairy Milk through its best-tasting chocolate. Through years, Dairy Milk

Cadbury Cadbury’s Dairy Milk in various situations (Figures 8.8a-b), Cadbury

(Figure 8.9a) Dairy Milk Again, in the late 1990s, Cadbury’s discovered that although adults had started consuming its chocolate, its campaign had made a mark only on the metro audiences Khane walon ko khane ka bahana chahiye’ Dairy Milk Dairy Milk (Figures 8.8c-d).

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FIGURE 8.8 (a-b)

Cadbury promoted impulsive consumption by depicting spontaneous moments when the brand could be consumed.

Courtesy: Superbrand, Volume I, 2004. Reproduced with permission.

FIGURE 8.8 (c-d)

Cadbury depicted that people will eat it under any pretext.

Cyrus Broacha offers three kids Dairy milk chocolates. They all chorus 'Daba-dadi, nana-nani, saas-bahu aur pote-nati sabko khane ka bahana chaiye '.

Cyrus and kids sneak up on the grandfather Cyrus approaches a young man who is who is secretly eating Dairy Milk behind a working out with a Dairy Milk pack in his hand, newspaper. The grandfather's excuse: who says,"Mein to isse muscle banata hoon." 'Sweet dish samajke khata hoon '.

A girl is putting her grandmother to sleep, offering her Dairy Milk. The grandmother reasons: 'Is se mithe-mithe sapne ate hain'.

The entire family is watching a quiz program The entire family celebrates, singing in an on TV. A teenage girls bites into a Dairy Milk encore. They pose for a family photograph and says, 'Sare sawal hal ho jatein hain'. with Cyrus. 'Kya swad hein zindagi mein.'

Courtesy: Cadbury. Reproduced with permission.

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In the early 2000s, Cadbury

FIGURE 8.8 (d)

Cadbury

brand, Dairy Milk Dairy Milk every need (Figure 8.8e). Then came Cadbury’s ‘Kuch Meetha Ho Jaaye’ campaign (Figure 8.9f) associated Dairy Milk ‘Pappu Pass Ho Gaya’ got accepted into common language.

in the Consumer Products category at the

FIGURE 8.8 (e)

Courtesy: Superbrands, Volume I, 2004. Reproduced with permission.

Cadbury has launched a Dairy Milk for every need.

Courtesy: Superbrand, Volume I & II, 2004, 2006. Reproduced with permission.

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The ‘Pappu’ campaign associated Dairy Milk with the celebratory occasion of passing

in exams.

Courtesy: Cadbury. Reproduced with permission.

Cadbury ‘Shubh Aarambh’

‘Kuch Meetha Ho Jaaye’ campaign

Dairy Milk as Meetha, the ‘Shubh Aarambh’

Mithai, i.e., Dairy Milk. For instance, Cadbury ‘Shubh Aarambh’ Cadbury “Suhane safar ka shubh aarambh.” nd Today, India is the 2 Cadbury’s Dairy Milk

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Questions

Cadbury’s Dairy Milk

jaaye?”

‘Pappu pass ho gaya’ commercial (either on television or Internet “Kuchh meetha ho Cadbury’s

13. Stay away from the obvious: and may be only one will come up with an unobvious answer like ‘a rotten tomato.’ That’s because few people will think differently. If you want to create creative advertising, you will have to avoid the common and the obvious. Axe deodorant takes the unusual course of thinking from a pervert’s angle in its commercial depicting two men in a sauna (Figure 8.9). FIGURE 8.9

Axe gets creative by thinking from a pervert’s angle.

Courtesy: Lintas Lowe. Reproduced with permission.

The box below gives some more tips on creativity as practiced by the advertising professional Colleen Fahey in her real life.

Tips from an Expert17 Publicis Dialog, Seattle. She believes that being creative is about changing one’s entire

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“1. Sharing and comparing:

2. Retail details:

3. Benchmarking:

4. Nosiness:

insights. 5. Trend tracking: Fuelling your creative mind takes a lot of time, none of which is billable to the clients. It has therefore to be part of how you live and enjoy yourself.”

8.3 PREPARING A CREATIVE BRIEF The creative brief is a document that spells out the advertising strategy and key execution details. account manager or planner prepares a creative brief to give some direction and inspiration to the creative team. It is a tailored adaptation of the strategy statement and every agency has its own version. While a strategy statement helps at arriving at the advertising strategy, a creative brief guides the creative team in executing an individual advertisement or an entire campaign. It provides short and snappy information on the product, target audience, problem to be solved, objective of advertising, key message or big idea, reason why audience should believe the idea, intended brand personality, media to be used, mandatory creative elements (like company logo, product shot, etc.), tone of the ad and other execution-related considerations. The following is one of the formats for writing a creative brief.

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8.3.1 McCann-Erickson’s Role-Playing Approach18 The McCann-Erickson agency suggests that the creative team should step into the shoes of the voice. This helps think and reason from the consumer’s perspective. The example given below is of Swaroop that claims to reduce hairfall. 1. Who is our target? “I’m a woman over 35. I’ve always been proud of my hair, but lately, I’m a bit worried about it. When I brush my hair, a lot stays on the brush. And a lot gets broken. When I shower, I notice that some hair has fallen out. I wonder if my hair is getting thinner. I wonder if people can see that my hair isn’t as full as it used to be.”

3.

4.

5. 6.

7. 8.

“I’ve never heard of Swaroop conditioner.” How does our competition fare in the mind of the target? “I know there are lots of conditioners out there. I don’t usually use one. Some of them make my hair feel greasy. I don’t really know what they are for. I suppose people use a conditioner to make themselves look more glamorous, but they never do that for me.” What is the ideal positioning we seek with the target? “I use Swaroop almost as if it were a medicine. I want to stop this problem I have right now and I’ll try Swaroop for a while and see if it works.” What is our consumer promise, the ‘big idea’? “Swaroop with ‘gelatin’ reduces hair loss.” What is our supporting evidence for the ‘big idea’? ∑ “I know that some women use gelatin on their nails to make them stronger. May be the same stuff will work on my hair as well. ∑ They have done lab tests that say Swaroop reduces breakage by 65 per cent. That’s not perfect but it sounds like it must really work.” What is the tone of the advertisement? Non-glamorous, straightforward, problem-solving, almost medical in nature. What mandatory elements should be included in the advertisement? Product shot, company logo.

8.3.2 The Creative Brief Checklist In addition to the above formats, consider the following checklist to make sure you have answered all questions pertinent to executing an advertisement. ∑ What is being advertised? ∑ What is the key task this campaign is designed to accomplish? ∑ ∑ What do you know about your audience? ∑ What do you want them to do?

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∑ What can you say or what reward can you associate with the action that will get them to do that? ∑ Who are your major competitors? ∑ How do they advertise? ∑ What is the main reason consumers should choose you over your competitors? ∑ What is your ‘big idea’ or key message? ∑ How will you know it worked? ∑ What is your tone and style of voice? ∑ What personality do you want to convey? ∑ Where and when would the audience be most receptive to the communication? ∑ What is the key insight in this strategy? ∑ What are the mandatory creative elements (like company logo, product shot, etc.) that need to be included in the ad? Remember that the creative brief is only a springboard for plunging into actual execution. There will be a point where it will become less important than the ideas, plans and stories that are created. That is the moment that agencies should work towards. As a Zen saying goes, “Once you catch the

8.4 CREATIVE EXECUTION ELEMENTS Creative execution elements are the message appeals, message structure, execution styles, tone, and Together they affect the relevance, originality and impact of an ad.

8.4.1 Message Appeals: Rational vs. Emotional Rational appeals of the brain. Messages focusing on quality, price, value-for-money, performance, etc. are examples of rational appeal. Emotional appeals tend to rouse positive or negative emotions (humour, fear, pride, guilt, shame, sex, pleasure, affection, status, etc.) in a bid to drive purchase. Consumer behaviour analysts say that some purchasing decisions are based more on reason while others are based more on emotions. Similarly, some decisions call for much forethought while others require none or very little of it. How do advertisers know what appeal to use for a certain product? The FCB grid that we discussed in Chapter 4 gives some clues. While there are no rules per se, the type of product can guide in choosing the right mix. If the product assumes high importance in a consumer’s life and involves a decision that cannot be easily reversed, there would be high amount of deliberation before it is bought. Also, the consumer would require extensive information regarding it. Products such as cars, homes, loans, insurances, furniture, large consumer durables, computers, etc. fall under this category. demonstration, etc. are required to inform and assure a consumer. There are also products which carry much importance in a consumer’s life but for their purchase,

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individuals rely more on feelings and attitudes about the products than on hard data or information. They are related more to a consumer’s image. Popularly known as image products, they include fashion apparel, jewellery, fragrances, hotels and holiday destinations, etc. Eyecatching visuals and emotionally appealing statements work better than pure logic in their case. Check out the ad of Reid & Taylor (Figure 8.10). What kind of feelings and emotions does it evoke? Had it been appealing to

FIGURE 8.10

Reid & Taylor focuses on the emotional aspects of the brand.

durability, wrinkle-free material, colours or such. However, keeping the communication focused on Amitabh and fashion goes to prove that the brand is working hard on building an attitude. At the other end of the spectrum are products that do not have much importance in a consumer’s life, a single purchase does not constitute a large chunk of the disposable budget, and purchase decisions are not irreversible. For example, grocery items, provisions, inexpensive alcoholic beverages, etc. Purchases of such products do not require much thought or deliberation. These low-involvement products usually require reminder advertising to stay on top of the consumer’s mind, as a cross between emotional and rational appeals. Courtesy: Superbrands, Volume I, 2004. Remember that none of the products fall in any Reproduced with permission. sacrosanct appeal categories. The kind of appeal to use in an ad depends on many other factors such as the importance of a product in a consumer’s life, the extent of consumer’s involvement with the product, stage of product in its life cycle, competitive advertisements, etc. For example, even in the high-involvement categories of insurance and mutual fund, in order to differentiate and create a friendlier image, many companies have used emotional appeals. Babies in diapers, brides with sindoor, big colourful umbrellas, a famous cricketer… these are hardly the images you would associate with advertising for mundane mutual funds or insipid the situational factors.

8.4.1.1 Types of Emotional Appeals Indian advertising is replete with Navarasas, the nine principal sentiments or moods of our life—Sringara (amour), Hasya (humour), Karuna (sadness), Raudra (fury), Vira (heroism), Bhayanaka (frightful), Bibhatsa (repulsive), Adbhutha (amazement) and Shanta (tranquility). The following are some frequently used emotional appeals, which are only illustrative, not exhaustive. a. Fear Appeal: “You’ll lose your hair if you don’t use this oil.” “Your children won’t have good education if you don’t provide for it now.” Fear appeal is essentially a negative appeal that

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cautions consumers against a risk or talks about the ills of not using a product. A print ad for a public cause campaign advocating the use of seat belts showed a petrol pump cleaner wiping away a bloody windscreen. The message on his T-shirt reads, “Don’t make a bloody mess. Fasten your seatbelts.” Proponents of consumer behaviour say that strong fear appeals tend to be less effective than mild fear appeals. This is because when the appeal is very strong, people tend to rebuff the undesirable information. For example, when an insurance company very powerfully illustrates the ills of not buying a policy, it might be easier to believe that your life or property would be immune to disaster (“it can’t happen to me”) than to form the habit of saving. Hence, many life insurance policies have taken the non-standard route of advertising, and show pleasant images in their commercials. Instead of using fear appeal, they talk about security and partnership for life. Fear appeals work better when the credibility of the brand or endorser is high and when the communication promises to alleviate the fear it stirs up. For UNICEF’s Pulse Polio Immunisation programme, commercials starred credible and

promised parents that do boond

. As a

19

b. Humour appeal: One of the most frequently used tools of creativity in India is humour. Tickling the funny bone is a gambit advertisers are using to get consumers more involved, even in categories that have traditionally not used humour to make a point. Research says that younger, higher class, better educated and working professional people are more amenable to humorous messages. Even kids prefer humorous commercials to any other and with their increasing say in purchase decisions, this is a point to note. Humour can get consumers interested in a dull purchase thing like a car battery or make an unfriendly product seem more approachable. For instance, how many car owners actually look under their bonnets to check what battery runs their car? But the humour in Amara Raja’s Amaron Hi-Life Battery made the battery an integral part of new generation cars. Amara Raja had realised that if it had to stand out as a small player with no experience and make a mark against the established players, it had to be innovative in its communication. Recently, new entrants in the confectionary category like Mentos, Chlor-mint, Center Shock, Alpenlibe, Happydent White, and the like have successfully used humour to gain rapid brand awareness. Center Shock needed to ‘Hila ke rakh de’

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(Figure 8.11)

20

FIGURE 8.11

Center shock gained rapid brand awareness on its launch through the use of humour.

Courtesy: Center Shock, O&M. Reproduced with permission.

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Nonetheless, humour should be used strategically. It attracts attention and can increase liking for a product, but it does not increase its acceptance, persuasiveness, credibility, or sale-worthiness. Experts believe that humour can diminish comprehension, wear out its effect fast and take the limelight away from the product. It is more apt for low-involvement products where decisions are based more on emotions than for high-involvement products which require much deliberation. Humour that is relevant to the product is better than that which is not. Wit, an evolved form of humour, communicates at a higher level because it goes beyond explaining the ABCs of the product and the category, and appeals to the intellect. For example, the cold-drink brand Sprite has been a champion at producing witty commercials conveying the message that the advising, “Dikhavon pe na jao. Apni akal lagao. Sprite bujhaye only pyaas... baaki sab bakwaas”, Sprite has consistently charmed the intellect. Wit has helped the brand stay away from clichés – colas promising be used at a stage when the brand has been established and is seeking to build a connection with the consumer – in other words, for established products than for new products. It is a great form of using brevity to communicate long stories or messages. One of the nuances of humour is dark humour. Dark humour usually has to do with the loss of life or dignity. It is on the ascent in Indian advertising. However, dark humour produces polarised opinions. While some people are all praise for the humour, there are others who feel that it is indurate and insensitive. Consider the following television commercial of Fevicol that shows a man committing suicide. Do you think the humour is in good taste?

Fevicol nahi lagaayo toh saale ka kaam nahi hoyo.

elderly bystander retorts, “Fevicol nahi lagaayo toh saale ka kaam ho gayo.

Consider the following guidelines on the art of using humour in advertising: (a) Avoid humour at the expense of others, such as competitors, consumers or ethnic groups (b) Consider humour, which has repeat value, not jokes that cease to be funny the second time round (c) Retain the product’s importance over humour’s, ensuring that the brand is not forgotten after the laughs (d) Test if your humour is comprehensible and funny to the audience in question (e) Use self-disparaging humour cautiously

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c. Sex appeal: Projection of sex appeal in advertising ranges from explicitly nude or sensuous scenes to sexual innuendos to scenes so subtle that only the trained eye would recognize them. Sexual appeal does not necessarily guarantee the success of an ad. It does attract attention, but can also prove either damaging or ineffective. Consider the hue and cry raised over the age-old Tuff shoes ad that showed models Milind Soman and Madhu Sapre almost stark naked, but for a python covering the essentials. It gave the brand more anti-publicity than anything else and many a family were drawn away from the brand. Sexual appeal, apart from evoking negative feelings for a product, can also offend consumers, usually women consumers. Also, as more sex will be used in advertising, the lesser will be its appeal. If sex appeal is not relevant to the product advertised, it fails in casting an impression on the audience. For instance, a ‘hot’ ice cream commercial may melt away the simple pleasure of eating an ice cream. either the brand or the idea, and when it is executed tastefully and aesthetically. Also, when sex is relevant to the product, it can be a tremendously compelling theme because it can arouse subconscious desires that constitute the underlying reason for the purchase of the product. used in advertising lifestyle and image goods like cosmetics and fragrance. In the early 1990s, MR Coffee

MANAGEMENT FOCUS

KamaSutra: Sex and Sensuality

KamaSutra

KamaSutra’s

(Figures 8.13a-b). Kohinoor

advertising steamier.21 KamaSutra

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(Figure 8.12a). In another spot, a man (Figure 8.12b)

reads, ‘KamaSutra FIGURE 8.12 (a-c)

(a)

(Figure 8.12c). KamaSutra associates these with the act of making love.

(b)

(c)

Courtesy: KamaSutra, Ambience. Reproduced with permission.

Questions 1. Do you agree that ‘KamaSutra’ is able to pursue a tongue-in-cheek strategy because 2. What communication problem is KamaSutra

d. Agony appeal: We all have seen ads that depict in great detail the abrasive area of allergic skin, the effects of gastric trouble, congested sinus clefts, migraine-like headaches, itching of strategic body parts, cracked feet, etc. Repulsive and displeasing as they may seem, they are a potent tool most-of-all for pharmaceutical companies, who can quickly connect with an audience suffering from these ailments. The audience feels that the advertiser can empathize with its suffering and hence, the advertiser’s credibility gets quickly established.

Itch Guard (Figures 8.13) by Paras Itch Guard’s ability to B-Tex, Nycil

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22

FIGURE 8.13

Itch Guard successfully used agony appeal to portray the suffering caused by sweat-itch.

Courtesy: Itch Guard, Mudra. Reproduced with permission.

e. Pleasant appeal: It would be a deplorable sin for an advertiser to show a model wear the advertised shoes and not look happy. Or how can you not smile after brushing with Shine’n-Smile toothpaste? A print ad depicts a girl smiling away to glory while eating Mother Dairy’s Choco-Treat ice cream. Bite-and-smile commercials are not the legacy of food advertisers alone. Pleasant appeals show people being happy with the product advertised. f. Moral appeal: Moral appeal is aimed at the audience’s sense of right and wrong. “Don’t you think it is your duty to buy this and help us do that?” Usually adopted for social causes by . It rests on the assumption that it will give people the satisfaction of doing something for a good cause by just buying a product. Even consumers of packaged or durable goods can be reminded of their societal duties. A Surf Excel Quick Wash .

impact creating voiceover says, “Agar apke pass Surf Excel Quick Wash hai to aap bhi rozana do bucket pani bachaa sakte hain. Zara sochiye, sare Hindustan mein kitna pani bachega?”

case.

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8.4.2 Message Formats Message formats are a template for determining how the advertising story will be told – as a piece story is then written in the form of a script or copy, which we shall discuss in the subsequent mediawise execution chapters. Following are some of the standard message formats or execution styles that advertisers can choose from. Note that these formats are not mutually exclusive and a single advertisement could be a combination of many of these styles. ∑ Factual/News: An information-rich message format that conveys in a straightforward manner the facts to be dissipated through the ad. It is usually devoid of any emotional appeals, special effects, gimmicks or anything that distracts the audience from the main message content (Figures 8.14). FIGURE 8.14 (a-b)

In factual ads delivery of news or information is the prime purpose.

Headline: It takes 56 sleepless days to produce one ounce of platinum. About the same time it took you to decide about him. Bodycopy: One of the rarest metals on earth. There’s nothing more special than sliding your finger through a Platinum ring.

Courtesy: Platinum. Reproduced with permission.

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∑ Comparison: In comparison format, features or functions of two or more brands are compared through which the advertiser’s brand comes out superior. Direct comparison formats straightaway mention the brand that they compare with. For example, ads of cars or electronic equipment frequently compare the features of their brands with those of competitors’ by clearly naming them. Similarly, in Figure 8.15, Shaw Wallace’s Vladivar also directly compares itself with Pepsi. Indirect comparison formats either give indirect hint about the competitor brand that is not mentioned explicitly, or label it as any other brand such as the Thums Up commercial in Figure 3.14b that alludes to Pepsi by showing a blurred logo. Similarly, in a print ad, Priyagold Don biscuits indirectly refers to Tiger biscuits by saying, “Jungle ka raja sher hota hai, tiger nahi, aur shehar ka raja Don.” Also, without naming the competitor, the brand claims that the world’s largest selling glucose biscuits (inferred to be Tiger) do not have glucose at all. In indirect comparison, brands may also label competitive brands as ‘any other brand’. In India, direct comparisons are restricted in certain media like television. FIGURE 8.15

Products often use direct comparison to establish their superiority.

Bodycopy:

Courtesy: Lintas Lowe. Reproduced with permission.

∑ Demonstration: This format is especially useful when consumers are not likely to learn easily how to use the product or what to do with it, or for comparing the advertiser’s product with the competitor’s. Television is one of the best media for demonstration, though at times print can also be used effectively. Demonstration ads can be: (a) Product-in-use: Most washing detergent ads show the product being used and the grease or stain getting washed away. A Harpic Flushmatic commercial showed how the product should An ad for Kissan Jam demonstrates the use of the jam in an innovative recipe (Figure 8.16). (b) Before-and-after: In a television commercial for Fair & Lovely Anti-Marks Cream, a pockmarked

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girl visits a beauty parlour. As she is admiring FIGURE 8.16 Kissan Jam demonstrates the posters of some beautiful women, the the use of the product in its copy. expert arrives and suggests her to use Fair & Lovely Anti-Marks Cream. The girl uses the cream and some time later, shows up looking stunning. The beautician points to the blank picture frames, which she now wants to replace with the girl’s photos. (c) Side-by-side: A television commercial for Mortein mosquito mats showed the working of Mortein and an ordinary mosquito mat side-by-side on a split screen, depicting through clock movements that while the ordinary mat worked for only 8 hours, Mortein said, “Hamara challenge hai ki subah tak khidki kholke bhi so jayen to bhi machchar bhatak na payen.” ∑ Problem solution/problem avoidance: In the problem solution format, the ad begins with a problem and the product, which is portrayed as a hero, provides the solution. Alternatively, the product is shown to avoid a problem. Ads Courtesy: Lintas Lowe. Reproduced with that show hair oils curbing hair loss, fairness permission. creams enhancing complexion, sunscreens protecting from tanning, cough drops curing cough, are all examples of this format. ∑ Slice-of-life: This style shows one or more typical people buying, using or preferring the a milk powder or a housewife getting appreciation from her husband because she makes his ∑ Drama format: This format is a variant of slice-of-life, with the difference being that reallife situations are exaggerated or dramatised to heighten impact. Dramas are like mini movies which can be built around characters and the characters usually speak to each other, not to the audience, as in the Mentos commercial in Chapter 6. Viewers make inferences from these advertising dramas and pick up messages, which are reinforced in the closing. Stories can be very engaging, but people rarely like to watch the same story again. Hence, drama ads have a short span of life and need to be refreshed often. However, ones that are told interestingly or have a twist have a longer than usual lifespan. ∑ Teasers: Teasers are mystery ads that don’t name the product or don’t reveal much information but keep the audience guessing by creating an air of suspense. They intrigue the audience to know further and make easy their next task of dissipating information. They can lead to quicker awareness once the suspense is revealed. Remember that teaser campaigns are like miniskirts. They attract attention, are brief, yet cover the essentials. But if they are made any longer than they are supposed to be, the audience quickly loses interest.

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Frooti’s 2001 Frooti

Frooti drink. The campaign evoked enormous public interest and sales started picking up. But recall value and soon Frooti lost its hold on the market.23

∑ Spokespersons/Endorsers: Celebrities, created characters or experts whose advice we may seek or whose opinions we may trust, are chosen to deliver the message. When a dentist comes on screen and advises you to brush with Colgate, there’s a rare chance that you won’t believe the claims she makes. Or who would know better about Kenstar’s microwave ovens or Saffola Gold cooking oil than the master chef endorser Sanjeev Kapoor? When spokespersons are used in television or radio commercials, they often address the audience directly, instead of playing a character. ∑ Personality symbol: This style creates a character, animated or real, that represents the product. The character can personify the product, represent the typical audience member, or just serve as a spokesperson. The white-’n-soft dough-like Pillsbury Doughboy, the pink and stretchable bubblicious Babool-man, the Marlboro man, the 7-Up Fido Dido, etc. all represent the product. ∑ Product as star: The entire focus is on the product alone. No theme or story is involved, lest it robs the product of the spotlight. An ad for Promise Anti-Cavity toothpaste showed the product from various angles while an off-screen announcer directed an off-screen cameraman, “Thoda right, thoda left, thoda aage, thoda pichhe” and then clicked a picture of the product. A commercial for Jet Airways showed shots of a cordial and smiling airhostess, big airplanes cruising down, gourmet cuisine, and a well-groomed crew smiling – components that go to make the product that is air-travel. ∑ Vignette: A vignette is a series of short incidents that are tied together and make the same point. In this format popular for television and radio commercials, different characters, locations and stories may be used for different incidents. Kodak camera ads with the ‘Kodak moments’ tagline showed vignettes of friends and family members getting together for a Kodak moment of memorable pictures—one family taking pictures of their vacation, another of their grandpa’s 75th birthday, college friends taking snaps of their reunion, and so on—all incidents pointing to the claim that Kodak moments are special moments. ∑ Testimonial: This format features real experiences of real people, backed by evidence. conviction. In an ad for Baazee.com based in Pune, addresses the camera and says, “I just bought a cell phone on Baazee.com

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for a great price. Actually I was scared of buying on the Net, until I heard about Baazee. Because it was delivered home, I checked if it worked and only then paid for it.” Aren’t you likely to give Baazee a chance after listening to the testimonials? Testimonials for services such as that offered by VLCC (Figure 8.17) are particularly effective in generating credibility for the brand.

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FIGURE 8.17

Testimonials generate credibility for a weight reduction clinic.

∑ Lifestyle: This format portrays aspects of the target audience’s lifestyle – how she works and plays, what she eats and wears, what she drives and reads, etc. – and of life. For example, an EverYuth facewash ad shows a aerobics, endorsing natural products, travelling in a car and generally having a busy lifestyle, indicating that the product is for the modern active woman who cares for health and beauty. This style is so often used by fashion and status products that they are often called lifestyle Courtesy: Superbrands, Volume I, 2004. Reproduced with permission. products. ∑ Musical: Show one or more people or animated characters singing a song about the product. For example, a husband and kids rave about Maruti oil and sing a song about the goodies that the wife has cooked. ∑ Image: This style builds a mood or image around the product – sincere, competent, artistic, rough-’n-tough, exciting, etc. For example, many bike ads portray a distinctly macho image by depicting brawny riders, rough terrains, riders zooming by at high speeds, close-up shots of the bike, and such other imagery. ∑ with proof a claim that the brand is making. It works best for high-involvement products or products using a rational appeal. For instance, a commercial of TVS bike showed the engineers working in a lab and performing various tests on the bike. One of the tests was the horsepower

8.4.3 Message Tone funny, serious, advisory, silly, provocative, etc. Ads can adopt various tones of voices owing to their conversational nature. The choice of tone affects the way advertising copy or script is written, the way people feel about an ad, and the relationship that the ad creates with consumers. Many ads are written as if an anonymous announcer is addressing the audience. However, despite anonymity, the tone of Polio Nivaran campaign ad, Amitabh Bachchan presents the message in an irate tone, “Sharam aani chahiye, ye polio waale bewakuf nahi hai ke baar baar wapas aa rahe hai. Inka kaam hai desh ke ek ek bachche ko dava pilana, aur agar ek bhi bacha chhut gaya to bimari jad se nahi jaayegi…”

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8.4.4 Message Structure The structure of a message depends on various factors mentioned below: 1. Verbal vs Non-verbal: When we think of delivering a message, we can either use words (verbal) or visuals (non-verbal) or both. While words and visuals complement each other to present the complete creative concept, they perform different functions and produce diverse effects. Different people also perceive them differently. For example, some people are more right-brained and remember visuals or think in images better. Others are highly left-brained and are more verbal in thinking, remembering and communicating.

the headline and lastly are lured into the copy. Even in television, which is a highly visual medium, images are remembered better than words. Radio, which is otherwise devoid of pictorial elements, evokes mental pictures through descriptive language, sound-effects or imagery transfer of television. Also, while visuals are absorbed all at once, verbal messages have to be deciphered word by word and line by line. Hence, a strong and intriguing visual is more likely to be an attention-getter than the written word. And the larger a visual, the higher is its stopping power. Look at the ads of Ponds Blackhead Removal Strips and Nestle Curd (Figures 8.18a-b) that say it all with just the visuals. This is not to say that words are redundant, for FIGURE 8.18 (a-b)

Some advertisements can convey the message with visuals alone.

Courtesy: HUL. Reproduced with permission.

Courtesy: Nestle, Mudra. Reproduced with permission.

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in advertising, there are no sacred rules. Powerful words too can make people laugh, cry or Nanhi Kali, an orphanage says, “This is 3 year old Shreya. Her parents abandoned her and vanished. If you turn the page, you’ll do the same.” Thus, both words and visuals have their own standing in advertising and the needs of a situation dictate which one would be the ruling element. In general: Words rule when… ∑ A message is complicated and demands detailed description or the need to be reread ∑ information ∑ etc.) Visuals rule when… ∑ Attention needs to be gotten quickly or message needs to be communicated fast ∑ The advertiser wants to have a lasting impression ∑ A demonstration has to be made ∑ Advertising is into the brand-building or reinforcement stage ∑ Undifferentiated products need to be differentiated 2. Readability: Readability concerns the verbal elements of a message. It depends on factors like arrangement of words in a message, word frequency, sentence length, number of ideas in a single message, etc. Too long sentences or paragraphs, cluttered and small font text, unfamiliar slangs or jargons, too many ideas put forth in a single ad, improper grammar, etc. can make a message less readable. For example, although very important to read, have you off by the small fonts, the page-long text and the heavy language? 3. Ordering effect: Ordering refers to the timing of presentation of key ideas in a message – beginning, middle or end of the message. One option for the advertiser is to get his side of the primacy effect. Since people are usually more attentive towards the beginning of an ad, the earlier the key points are presented, the better they are remembered. The other option is to ‘have the last word.’ Known as the recency effect, its objective is to let the message remain with the consumer in the end. This is useful when the advertisement ends with an unexpected twist or when the information presented in the end is so compelling as to strongly negate the contradictory information presented earlier. For instance, in the world famous Volkswagen Beetle ad, the brand depicted a picture of one of its cars and labelled it as ‘Lemon.’ Underneath, the copy read: “This Volkswagen missed the boat. The chrome strip on the glove compartment is blemished and must be replaced. Chances are you wouldn’t have noticed it; Inspector Kurt Kroner did. There are 3,389 men of our Wolfsburg factory with only one job; to inspect more inspectors than cars.) Every shock absorber is tested (spot checking won’t do), every windshield is scanned. VWs have been rejected for surface scratches barely visible to the eye. Final inspection is really something! VW inspectors run each car off the line onto the

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Funktionsprüfstand (car test stand), tote up 189 check points, gun ahead to the automatic VW lasts longer and requires less maintenance, by and large, than other cars. (It also means a used VW depreciates less than any other car.) We pluck the lemons; you get the plums.” The take-away of this ad was obvious. If this was Volkswagen’s idea of a lemon, the Beetle must be a well-built car. Studies suggest that people with high involvement in the product exhibit primacy signs, while impression is the last impression’ and typically favour the primacy effect: ∑ When contradictory information is presented in a single message, disclaimers at the end of the message usually tend to be ineffective. Hence, the tiny ‘smoking hazard’ warning at the end of a cigarette ad or a ‘performance non-guarantee’ disclaimer in a mutual fund ad mostly go ignored. ∑ When people already feel a strong need for the product or are in a ready-to-buy stage, ∑ information should be placed at the end. and which have recency effect. 4. Repetition: Repeating a point within a single message increases its memorability and that the brand tries harder than their bigger rival. “Avis is only No. 2 in rent a cars. So why go with us? We try harder. (When you’re not the biggest you have to). We just can’t afford dirty ashtrays or half-empty gas tanks, or worn wipers, or unwashed cars, or low tyres, or anything else than seat-adjusters that adjust, heaters that heat and defrosters that defrost. Obviously, the thing we try hardest for is just to be nice. To start you out right with a new car, like a lively, Supertorque Ford, and a pleasant smile. To know, say, where you get a good pastrami sandwich in Duluth. Why? Because we can’t afford to take you for granted. Go with us next time. The line at our counter is shorter.” 5. Arguing and counter-arguing: A message can be one-sided or two-sided. In the former, advertisers only present their own argument or the product’s positives without mentioning counter-arguments are presented by other organisations, or when advertisers don’t want to confuse the audience. For example, cold drink advertisers talk only about the drink’s taste and fun, and not about the bucket-loads of calories that consumers glug along with. On the other hand, a two-sided message includes counter-arguments. It is useful when advertising to educated and informed audiences who also use other means of gathering information about the product through which they are likely to learn about the counterarguments. Hence, when the negatives come directly from advertisers, they view the advertisement as more objective and honest. Also, if the audience-member has multiple opinions about the subject, counter-arguments improve persuasibility. For instance, in the following example, Buckley’s presents an honest two-sided picture of the cough-and-cold medicine.

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Buckley’s

‘Buckley’s

8.4.5 Production and Design Decisions Production and design decisions are also part of the creative execution elements. They include decisions on aspects such as colour, design, layout, type selection, sound, lighting, casting, location and staging, and all such rudiments that give a distinguishing look-and-feel to an ad. We’ll deal with these decisions in the individual chapters for print and broadcast advertising.

Summary After an advertising strategy is framed, an ad goes through creative execution, which deals with how a message is conveyed, viz. the physical form of an advertisement – story, script, copy, art, music, words and phrases, colour, style, tone, reproduction, etc. A big idea is said to be creatively executed when it is relevant, original and effective. Creative messages should translate into accomplishment of objective—be it sales or awareness creation. In order to come up with creative ads that leave an impact, the agency must undergo an arduous exercise like indulging with the product, understanding the needs of the target audience, breaking free from stereotypes, etc. To aid the creative execution process, the strategic team in an agency prepares a document called the creative brief. It spells out the creative strategy and key execution details like information on the product, target audience, objective of advertising, big idea, tone of the ad, and other execution Message appeals can be rational or emotional. Message formats are various execution styles that depends on the use of words vs. visuals, readability, order of presentation, repetition and one- or two-sided arguments. Production and design decisions include decisions on aspects such as colour, layout, type selection, sound, lighting, casting, location, etc. that give a distinguishing look to an ad.

Exercise 1. What is creativity? What parameters can be used to gauge creativity? Or can any parameters be used at all? any class of people? What is the tone of the commercial? Prepare a creative brief on the basis of which this commercial could have been prepared. Gather any missing information required through additional research. 3. Review the description of the following ad of Femina, check out a copy of the ad on Afaqs.com, and answer the given questions:

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Visual 1: Visual 2: Copy: Headline: Bodycopy:

Baseline: Believe

∑ ∑ ∑ ∑ ∑ ∑ ∑ ∑

Do you think the ad is creative? Why? What must be the brief given to the agency for this ad? What mix of appeals does the ad use? What is the message format? What is the tone of this ad? What is more important in this ad—words or visual? Why? Comment on the readability and ordering effect of this ad. Do you think the model Tusharaa Chandrasekhar helps in the creative execution of the ad? If yes, how?

Suggested Class Projects 1. Find examples of creative ads that you think a) break free from a stereotype, b) arouse your

format of your choice. 3. Find examples of advertisements for each of the message appeals and formats that we discussed. Try changing the appeal and format of some of these advertisements and check if they have more impact. 4. For the product of your choice, come up with two execution ideas that use (a) only visuals, no verbal elements, and (b) only verbal elements.

Critical Thinking Questions 1. Creativity in advertising should not be curtailed within bounds of any parameters like awards, sales, brand building, etc. It is like a painting which is a form of expression for an artist’s inner feelings. Argue. Argue.

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CASE STUDY Tata Salt (Part III)

(…Continued from Chapter 7)

Creative Execution As discussed in the previous two chapters, the creative assignment for the agency Bates was to execute the campaign idea of ‘desh ka namak’ making heroes of commoners by portraying their allegiance to the nation. The execution requirement was of highlighting simple and silent acts of service and honesty of ordinary people-on-the-streets in a manner that instantly and emotionally connected with consumers.

leadership and the values inherent in Tata Salt (Figures 8.19a-b). A series of commercials pay homage or taken for granted. For example, one ad depicts a railway linesman who, while sheltering himself down an invitation to a warm cup of tea from a colleague, as he goes about his job. Another one shows a lady doctor who, at the end of a tiring day, decides to see that ‘one more patient’ even though it’s well past her consultation time. Yet another features an elderly taxi driver graciously turning down policeman who refuses a bribe from the driver of a car taken to task for some offence. Another one shows a passerby taking the extra effort to shut a leaky roadside tap. Such real-life situations in the ads Indian. The lyrics in the background number brought more passion and sentiment in the ads, almost like an anthem: “De de, de de, khud ko de de, desh ke naam pe de Farz apna tu nibha le, poore jee-jaan se de Katra-katra desh ke kaam aayega Jitna tu dega, tujhko phir se yeh mil jaayega De de, de de, khud ko de de, desh ko vaada de Yaad rahe, namak desh ka khaaya hai” The voiceover at the end of the commercials, “Tata Namak, aisa khara namak, jiska khara pan desh ke karoron logo mein jhalakta hai,” further connected the values depicted with the brand. Finally, the commercials ended with the consumer stating in simple words, “Maine desh ka namak khaya hai.” The executions subtly mirrored the small acts of patriotism found in the everyday lives of Indians. Moreover, although there is no overt claim by the brand of being ‘Desh ka namak’, it is able to carry off this implied non-verbalised claim by virtue of being the market leader in the Indian salt market. Result The campaign, aired on the eve of the Independence Day, conquered the hearts of Indians and rejuvenated the brand. Consumers rated the entire series of commercials high on persuasion, lack of clutter, integrity and nationalism. The efforts also saw the Tata Salt brand winning many an accolade to its credit. Tata Salt was ranked ‘India’s most trusted brand’ (ahead of MNC brands Coca-Cola and Pepsi and by The Economic Times , and

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ranked 18th

Figure 8.20a). It was also

Figure 8.20b).

This success is worth taking note of given

that salt has all along been a commodity.

Questions does it possess? emotional rendering? 3. Based on the brand information given in the three parts of the case, prepare a mock creative 4. What message formats are used for the storyboard and the print ad? Comment on the message tone and structure of the storyboard. 5. Although salt is a low-importance, low-thinking product, Tata Salt has used emotional appeal in its ‘desh ka namak’ campaign. What do you think could be the reasons? Do you think it was a wise move?

FIGURE 8.19 (a-b)

Tata Salt pitches itself as Desh ka namak.

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Courtesy: Tata Salt. Reproduced with permission.

FIGURE 8.19 (b)

Headline: Bodycopy: Baseline:

Courtesy: Tata Salt. Reproduced with permission.

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FIGURE 8.20 (a)

Tata Salt pitches itself as Desh ka namak.

Courtesy: Superbrands, Volume I, 2004. Reproduced with permission.

FIGURE 8.20 (b)

Courtesy: Superbrands, Volume I, 2004. Reproduced with permission.

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Annexure 8.1 CELEBRITY SUPPORT IN EXECUTION: MAKE HAY WHILE THE STARS SHINE Using celebrities to promote products was once a creative concept. Today, it has become commonplace. Why is it then that advertisers continue to woo celebrities? One of the prime reasons is that India is a celebrity-worshipping nation and people are constantly looking for a role model or an icon. There are also other advantages.

A8.1.1 Advantages of Celebrity Advertising ∑ Familiarity: Celebrities are popular and likeable. Known names offer reassurance to brands, easily connect with youth and quickly deliver the message. They lend the product instant awareness and immediate attention. For example, Amitabh’s endorsement of Emami’s Fast Relief Navratna Tel And Bachchan’s endorsement of Reid & Taylor cities, as consumers and retailers identify with him more than the brand’s previous endorser Pierce Brosnan. Similarly, when Karisma Kapoor endorsed Rasna per cent. A Synovate survey pointed out that 47 per cent of the respondents are more likely to buy a brand endorsed by their favourite celebrity. The survey also points out that celebrity endorsement is most likely to work with teenagers and students, and is more effective in the West zone of India, possibly due to the strong Bollywood presence in Mumbai.31 Often, when a product’s life cycle is short, (say, an audio album, or fashion or fad items), it is a good strategy to sail on the celebrity wave, make a quick buck and exit. Many a time, the advertiser is lucky to get publicity and media coverage for free. Indeed, endorsement breeds endorsement. Qualities like a celebrity’s attractiveness, pleasing personality, humour, subject-expertise, etc. can make the product he/she endorses more attractive. ∑ Credibility: Celebrities are a credible name, face or voice and the adulation that they receive Bachhan, Aishwarya Rai and Sachin Tendulkar plead parents to get their kids vaccinated against polio, their advice is taken seriously. Celebrities can even help in reinforcing the consumer experience post purchase. For example, Amitabh was featured in the Cadbury’s ‘purity-seal’ ad after the worm controversy because of the high credibility and trustworthiness associated with his personality (Figure 1.24), whereas Aamir Khan did a similar exercise for Coca-Cola after the pesticide controversy. Both actors’ endorsements helped in the counteractive brand image restoration processes. ∑ Gestalt Perception: The principle of Gestalt Perception says that the operational principle of the brain is holistic. Hence, people judge others by their entire personalities rather than

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they like are ugly or otherwise. Is Amitabh Bachchan handsome or is he not? Are Shahrukh Khan and Rahul Dravid liked for their looks? Thus, the looks of popular personalities cease to matter. ∑ Differentiation: promoted through various media, celebrities can provide the much-needed stopping power needed to break through the muddle of ads. They can be one with the masses, yet tower above them. Hence, when there is nothing special about Ganga soap to get it noticed, Govinda is signed for endorsing and popularising it. ∑ Relevance: When there is a link between the endorser and the product, i.e., when the celebrity clicks with the audience. For example, when Sachin Tendulkar, Virendra Sehwag, Leander Paes and Mahesh Bhupati endorse Adidas shoes, the stars’ sports-related expertise gets transferred to the product and the message seems more credible. Celebrities can also help lend their images to the products they endorse. For example, Preity Zinta’s bubbly personality has established Perk as a youthful product.

A8.1.2 Disadvantages of Celebrity Advertising If celebrities are so advantageous, why is it then that every other advertiser does not leverage their power? Well, in today’s world, using a Sachin or Shahrukh is not going to guarantee success for a brand. Coca-Cola and Pepsi have already made models out of most of them and squeezed dry the goose that laid golden eggs. So advertisers have got to use every other trick they can think of, to get their brands noticed. Some other shortcomings are as follows: ∑ Short life cycle: The shine of most stars is short-lived. Their rise to and fall from stardom It is possible that after an advertiser draws a contract with the hottest celebrity of the time and before the release of the ad or before the optimum consumption of the campaign, the celebrity’s aura starts dimming. Similarly, a celebrity signed as a brand ambassador may prove to have a shorter lifespan than the brand itself, as was the case with cricketer Parthiv Patel who endorsed brands like Britannia Little Hearts and Avon cycles. Hence, celebrities are more ∑ Bad press: Celebrities are like double-edged swords. Scams, scandals or negative press about celebrities can harm the products they endorse. For example, many advertisers pulled back from their contracts with Fardeen Khan when he was nabbed for drugging. Even Salman Khan was replaced as Thums Up’s ambassador by Akshay Kumar after the blackbuck case, the feud with Aishwarya Rai, his rash driving and a series of court cases against him. In the US, some insurance companies offer ‘death, disablement and disgrace’ insurance to cover the failings and idiosyncrasies of celebrity endorsers. ∑ Expensive: Celebrities cost a fortune. For instance, the word is that Sachin Tendulkar charges above Rs. 6.5 crore per deal, whereas Amitabh Bachchan has a Rs. 8-crore deal with Dabur, and a Rs. 5-crore deal with Parker pens. Airtel 33 whereas Aamir Khan made waves when he signed a Rs. 6-crore deal with Coca-Cola An ad campaign has to run for a long duration before it can recover the celebrity costs. Hence, only those with deep pockets can afford celebrities.

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∑ Price fallacy: The general perception is that products endorsed by celebrities are premium priced, unless explicitly mentioned to the contrary. Hence, celebrities may not always be a ∑ Celebrity tantrums: Be ready to put up with their crabbiness when you hire them. They are more likely than regular models to arrive late on sets, change dates, make unreasonable ∑ Multiple endorsements: A single celebrity can be endorsing so many products at the same

together the top 11 sportspeople of India endorsed 89 brands. Even a star of yester years 34 A consumer research pointed out that of the many products that Aishwarya Rai endorses, she is most strongly associated (66 per cent recall value) with Nakshatra diamond jewellery. This is not a very good piece of news for Lakme, Coca-Cola or Polio Nivaran Sanstha, which also have Ms. Rai as their model. Similarly, Sachin Tendulkar’s highest recall association is with Pepsi Coca-Cola (78 per cent), Shah Rukh Khan’s with Santro (43 per cent), and so on.35 ∑ Lack of credibility: Multiple endorsements and over-use of celebrities can dilute their brand equity and reduce their trustworthiness. Besides, a lot of people think that superstars endorse only for the sake of money and may not even be using the product in reality. For example, a commercial of Club HP starring tennis sensation Sania Mirza does a poor job at connecting the celebrity and the product. It leaves people wondering if Sania is the right authority to endorse fuel or if HP is only piggy-riding on Sania’s popularity. To lessen doubts about stars not using the products they endorse, a lot of companies have an additional clause in the contract that mandates stars to wear, drink or drive the product they are endorsing in public. For example, Zakir Hussain, Taj Tea’s brand ambassador, was required to write ‘Wah Taj!’ at the bottom of his autograph, whenever he gave one. ∑ Shifting loyalties: Do not be under the misconception that signing a celebrity is going to Khan and Aishwarya Rai, once Pepsi endorsers, are today campaigning for Coca-Cola. Shahrukh Khan too has shifted loyalty from Omega to Tag Heuer watches. ∑ Vampiring: Celebrities can become bigger than the brands themselves. People have asked for ‘Sunil Gavaskar wala kapda’, not Dinesh Suitings. Hritik Roshan is a popular star, but who remembers the Tamarind shirts that he once endorsed? Often consumers focus their attention solely on the star and do not notice the product being endorsed. Besides, celebrities can carry that attention to another brand when they switch loyalties. A way to get around vampiring is by constantly changing celebrities. Lux, Omega, LG, Reid & Taylor, etc. have been using this strategy. Hence, Lux is known as ‘Filmi-sitaron ka saundarya sabun’

A8.1.3 Tips on Celebrity Endorsement ∑ Catch them young: Celebrities cost much less when they have just begun climbing the popularity charts, but have not reached the zenith. The knack or gamble lies in identifying which star will make it big and which one will lose it in the process. Action shoes’ bet on Sachin

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rose up the ranks. ∑ Ensure sustainable strategy: Celebrity or not, a brand can only survive if the strategy is strong and sustainable. Sometimes even the biggest names have failed to produce results. For example, Amitabh and Abhishek Bachchan’s power-combination did not work for Maruti Versa and neither did Madhuri Dixit’s presence for Emami’s range of products.36 Do not expect celebrities to do magic or be able to sell weak products.

Vanilla Coke, Coca-Cola’s greatest innovation since Diet Coke

on an old Lamby scooter screaming ‘Wakaw’ (Figures 8.21a-b)

marketing strategy.37 FIGURE 8.21 (a-b) bombing.

Even a then hot celebrity like Vivek Oberoi could not salvage Vanilla Coke from

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∑ Choose the right celebrity and wisely: Not only should the celebrity chosen be apt for the example, Reid & Taylor used a huge, long cut-out of Amitabh with the headline ‘The height of fashion’ for a billboard ad. The same Amitabh loses his elegance in Dabur’s Glucon D ad where The long and short of the celebrity story is that advertisers should not use famous personalities as a substitute for good creative execution or strategy, but only to enhance the message or appeal of the product. 1. Find an example of an ad where a celebrity has been used. Do you think the said celebrity lent credibility to the brand? Was he/she relevant to the brand endorsed? Why or why not? What were some of the issues associated with the celebrity endorsement of this brand? Do you think another celebrity could have been a better choice?

Endnotes 1. “Hari Sadu wins the Campaign of the Year award at the Advertising Club Kolkata, Consumer Connect

www.techtree.com; Tuhina Anand, “Payback time says naukri.com,” February

agencyfaqs.com 4. “Hari Sadu wins the Campaign of the Year award at the Advertising Club Kolkata, Consumer Connect

edge.in thebrandreporter.com; 8. “Hari Sadu wins the Campaign of the Year award at the Advertising Club Kolkata, Consumer Connect 9. www.ddb.com; www.answers.com Express Buzz 11. “Thanda matlab com 13. 14. 15. 16.

Pitch www.mudra.com Shuchi Vyas, “Number Punching,” Brand Equity, www.cadburyindia.com; Presentation by O&M, www.ficci.com/ficci/media-room/speeches-

17. Personal interview Creative Strategy in Advertising, 7th

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19. “Thanda matlab com Thanda matlab com Jet Wings Advanc’edge MBA, Desh Ka Namak agencyfaqs.com

Desh ka namak Brand Equity, The Financial Express, April 18, 31. Exercise and Endorsement in India,” Synovate/Blackstone Market Facts Survey, www.mrweb.com Vinod Mahanta and Bhanu Pande, “Cheaper by the dozen,” Brand Equity, 33. Sulekha Nair & Somashukla Sinha Walunjkar, “Celeb Advantage,” The Financial Express, April 18, 34. Vinod Mahanta and Bhanu Pande, “Cheaper by the dozen,” Brand Equity, 35. “Exercise and Endorsement in India,” Synovate/Blackstone Market Facts Survey, www.mrweb.com 36. Vinod Mahanta and Bhanu Pande, “Cheaper by the dozen,” Brand Equity, www.marketingpractice.blogspot.com

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Creative Execution and Design in Print I don’t know the rules of grammar… if you’re trying to persuade people to do something, or buy something, it seems to me you should use their language, the language they use everyday, the language in which they think. We try to write in the vernacular. – David Ogilvy It is the insight into human nature that is the key to the communicator’s skill. For whereas the writer is concerned with what he puts into his writings, the communicator is concerned with what the reader gets out of it. He, therefore, becomes a student of how people read or listen. – William Bernbach Chapter Objectives

In Perspective

After reading this chapter, you will be able to: Understand print as a creative medium Identify the various elements of print such as headlines, copy, display copy, and visuals, and learn how to enhance the effectiveness of these components Recognise the role of design in print and comprehend its functions Understand some of the basic principles of design and learn to work with various elements of design such as layout, colour and typography

KarmaLabs Creates a Print Ad KarmaLabs is an Ahmedabad-based incubation and entrepreneurship institute set up in 2004 by Karma Education Foundation, which runs many postgraduatelevel educational programmes under its auspices. KarmaLabs has been established with the objective of nurturing talented individuals in their pursuit of technology-based ventures. After a two-year grooming programme that includes both practical and theoretical sessions, as well as industry interactions, KarmaLabs provides to its trainees seed funding and help in making their ventures a viable proposition.

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KarmaLabs is now a well-known B-grade institute in the country that has met with reasonable success with its three batches of trainees and plans on admitting the fourth. For the purpose, it has given an advertorial in popular business magazines describing the institute, its various courses, previous batches, the projects they spawned, etc. Along with, KarmaLabs wants to run a print advertisement for inviting applications for interviews and group discussions in 11 major cities of the country. However, because of a last minute decision, the institute has only a day to get FIGURE 9.1 (a) A rough layout of Karmalabs’ the ad executed to be ready for printing in print ad. newspapers. This, coupled with a low budget, does not permit KarmaLabs to assign the account to a professional advertising agency, but to a team of freelancing copywriter and artist. Based on the brief, the duo come up with the ad idea—prepare an intelligent, text heavy ad since (a) they have neither the time nor the software for fancy graphics, and (b) the target audience is more interested in details than in art. Although inexpensive, the ad should portray KarmaLabs as a topquality professional organisation to match the image created by the institute through its advertorials. In the brainstorming process, they hit upon the story of the commercialisation of the light bulb and decide to use that as a parallel for the incubation process. The execution begins with the artist sketching a quick layout (Figure 9.1a). Next, copy (Figure 9.1b), which she then edits as per the artist’s suggestions. The headline is Illustration: Rishit Shroff, Architect and Interior Designer straightforward and factual, and the copy tone serious and informative to match the persona of the educational institute. The graphic is a simple light bulb, which the artist ad elements. He picks Typewriter font for the headlines and sets them in 16 pixels, violating the rule of large size display copy, since the headlines are intended to be just an opening of the story told in the copy. However, he emboldens the headlines to highlight them. The copy is in Garamond font, also at 16 pixels. In less than three hours, the ad is ready to be sent to the printer’s (Figure 9.1c).

KarmaLabs

Chapter 9

KarmaLabs

FIGURE 9.1 (b)

First draft of the ad copy.

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FIGURE 9.1 (c)

KarmaLabs’ ad ready for printing.

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9.1 THE PRINT MEDIUM

medium.

9.2 ELEMENTS OF PRINT ADVERTISING

at a time.

9.2.1 Layout A layout

KarmaLabs

Figure 9.1a

9.2.2 Headlines “On the average, 5 times as many people read the headlines as read the body copy. It follows that, unless your headline sells your product, you have wasted 90 per cent of your money.” – David Ogilvy

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A headline

9.2.2.1 Functions of Headlines 1. Grab readers’ attention: History Channel’s “Oops, Marilyn has lost her dress!” UNICEF’s Children’s Fund ‘What would you like to be when you grow up? “Alive!” 2. Summarize the selling proposition: Anne French ‘A soft, silky smooth pair of legs. The perfect Anne French Hair Remover Anne French

. 3. Select the prime prospect:

‘Got pimples?’ Timesmatri.com ‘Your search for an ideal life partner ends here.’ ‘Single?’

Amaron

5. Emphasize the brand: Energizer Bunny,

Duracell’s

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‘Give your mind four wheels to race on. Introducing the Accent Viva.’ 6. Encourage readership of body copy:

‘What the opposite sex wants’ their audiences. 7. Synergize with a visual: Proline ‘Are your friends seeing more of you than ever before?’ Tic Tac Movie Rentals FIGURE 9.2 (a-d)

Figures 9.2a-d). Visuals create headlines in Tic Tac ads.

Courtesy: Tic Tac Movie Rentals, 1 pointsize

8. Strike an emotional chord:

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Amba The headline read, ‘For God’s sake, save the tiger.’ An anti-smoking association made a powerful connection with the following headline. ‘Made for each other. Smoking and cancer.’

9.2.2.2 Types of Headlines

Garnier Pure ‘Sudden pimples? Zap them in just 24 hours.’

2. News: new introducing, presenting, now, improved, etc. the nows and news one hour. Only with Jet Airways.’ 3. Factual: Inox Best actor. Best actress. Best writer. Best director. Sholay won none of these. Psycho scared everyone including its cast. For instance, Janet Leigh never took another shower. Inox. National Geographic’s can make cameras melt and hair evaporate. National Geographic

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9.2.2.3 Guidelines on Pepping up a Headline

1. Repetition: Odomos mosquito mosquito mosquito mosquito mosquito mosquito mosquito 2. Parallel structure: 13 rock albums. 7 operas. 52 ghazals. 16 instrumentals. 5 waltzes. 1 battery. Duracell 3. Wordplay and puns:

andheri. raat mein. diya tere haath mein. Chalomumbai.com ‘One on the rocks!’ McDowell’s ‘We dye to live’ Colorex India) ‘Unable to handle a slow Lopez?’ Dishnet Dial breakfastservebreakfastpacklunchpackkidsofftoschoolboothusband towork.Bliss.’ Sitagita.com Sitagita.com) 4. Familiar and strange:

‘Sir salamat to pagri pachaas.’

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charkha

5. An unexpected twist:

is Harsha Bhogle. Magiccricket.com)

Sunsilk 6. Similes, metaphors, and analogies: Cholamandalam General Insurance

Well almost.’

remembered. That’s life. Life Insurance Corporation (LIC)

7. Rhyme: Curry in a hurry. ) Nineteen apples lie side by side. One of them has chosen to hide. What is it that’s needed more, To make a delicious score? Kitchens of India

To change the way you look Just change the way you cook. 8. Alliteration:

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Go Green. ) Butter se Better (Nutralite) 9. Word length: Colgate Dental Cream’s ‘32-36-24-36’ Colgate Nokia 6820 SOS Help! I need to get off this island so please save me. If you see this message, send for help or come rescue me yourself. And call my wife, let her know where I am. Her number is…

Headlines Today Desist from constructing large natural elevations of the Earth’s surface with the family Talpidae. Or Do not make mountains out of molehills.

9.2.3 Other Display Copy Subheads

captions

Taglines or slogans

1. Make it memorable: Amul Butter’s ‘Utterly butterly delicious’

Complan’s Complan

growing power’ ‘Hungry kya?’

Domino’s Pizza.

‘For extra

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2. Include the brand name: ‘Kelvinator. The coolest one.’ Or ‘The Axe effect.’ ‘Beauty at its best.’ ‘Advancement with technology.’

McDonald’s

Pepsi Tata

‘Eat healthy, think better’ & ‘Britannia khao tan man jagao’ Britannia) ‘Incredibly fast’ ) ‘Lasts long. Really long.’ Amaron car battery) ‘Rajasthan’s No. 1 newspaper’

4. Differentiate your brand: Lux ‘75 years of stardom’ ‘Years behind its time’

Duracell says ‘Lasts up to 6 times longer’ Hidesign

Titan ‘Be yourself’ Elle 18 ‘Expand your life’ LG Lakme).

‘Centre of attention’ ‘On top of the world’

5. Convey the brand personality: Thums Up car’ and ‘Forever sports’

Santro

‘Taste the thunder’ ‘The sunshine ‘Impossible is nothing’

Adidas

6. Communicate the business strategy: Kamasutra’s Times’ Amul’s Kotak’s Xerox’s

Economic Nokia’s

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Creative Execution and Design in Print

Amul of India’

7. Watch the word length:

8. Try the rule of three: ‘Shines, nourishes and protects’ by Kiwi shoe polish. Or Fill it. Shut it. Forget it.’ by Hero Honda. 9. Check for meaning:

‘Growth is life’ Reliance Industries) SHIFT_the future

Nissan X-Trail)

9.2.4 Body Copy The body copy

9.2.4.1 Copywriting Approaches 1. The customary approach:

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‘The Taste

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Modiguard

Headline: Black-spotless mirrors? Yes! from Modiguard. Bodycopy: black-spotless performance for years. The secret is in the specially formulated used in ordinary mirrors, which gets corroded by moisture and atmospheric chemicals exposing the silver to oxidation, resulting in black spots. That’s not

and forget blackspots developing in your mirror. Enjoy clear, distortion free image for years.

2. The story approach:

Stori Daer papa, my taecher says wriet one stori to papa. I remebmer you uesd to say, teling lice no papa, so I wil tel onlee turth. that day you got mee choclaet no, on that day, I met one unkel. veri nyce unkel. he hav long wihte hiar. at frist I dint undrestnad whaht he say. he ask mee name. I tel my naem snow white. he tel mee hiss naem shaykspeer. he tel mee he nose maagic. I laaf. he assk mee waht you waant. I tel icekreem. he gaev mee one biiiiiiig cone icekreem. I lick it veri mucch. I ask hym whare your hoem. he tel ingland. I ask, how faar from my skool. he say veri faar. befour saying tata byebye, he aask me waht gift I waant. I tel hym Iyam veri baad at sepelling. he smyled. toled mee wehn you want to sepell rihgt, juss saay shaykspeer twise. I say ok. he suddnnly plaay hyde an seek. I search four him. He nott their. I tol teecher about unkel. she laaf at me. that iss my stori. You bileave me no papa. I no my sepelling stil badd. May b I wil do what unkel said. Saay shaykspeer. shaykspeer. I have said Shakespeare twice. I don’t know whether my spelling has improved. My teacher wants to read my story papa. So I have to say, THE END, now. Huggies and kisses, Snow White

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FIGURE 9.3

Sometimes the dialogue format is also used in print advertising.

Every child has a tale to tell. Time you listened to yours. Issued for busy papas on Children’s

Gili

Clothes with a twist Figure 9.9

3. The dialogue approach:

Dove

4. The bulleted approach: Bodycopy: “Do I make you nervous?” she asked. I laughed. A weak, nervous laugh. “Do you bite?” I responded bravely. She smiled. “I’m a vegetarian

now,” she said. Baseline: Are you woman enough?

Canon’s

Courtesy: Platinum. Reproduced with permission.

LiDE

Call Canon at 1600 33 33 66 or visit us at www.canon.co.in. 5. The poetic approach: Stori 1. A guy who was smooth as cheese Stopped by when a girl said, “Please Help me with my umbrella O handsome young fella.” Then they discussed the birds and the bees.

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2. There was this lady who wanted tips On how to come to grips With the desert thirst From a hunk named Hearst She got her answer when he wet her lips ‘Clothes with a twist’

Stori’s

9.2.4.2 Tips for Aspiring Copywriters

1. Be clear before clever:

Harvest Gold bread. Laloo called me. Said “See how I have swung election Ab ki baari who can stop Rabri ki selection?” I said “Hold your horses. You have been smug lately With Uma on the scene, things will be hot in Bihar I believe your candidate list is like roll-call from Tihar Bihar poll will be dirty sir. It will not be nice It is not clean and healthy like Harvest Gold di slice.

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3. Simplify: Mitsubishi Lancer

bars

Mitsubishi is 4. Be succinct:

5. Study the media and competition:

6. Stick to the present and active:

7. Think visually:

8. Make your copy express your love for the product:

Matrix the entire ad.

Figure 9.4

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FIGURE 9.4

Matrix’s copy packs passion in the writing.

Courtesy: Lintas Lowe. Reproduced with permission.

9. Keep one theme per copy: Santro zipPlus Automatic. You’re at heart a simple man. You love hearing the sound of a pebble breaking the stillness of water. You like playing ‘catch me’ with the tide, and losing. To you, a child licking the cream off a biscuit is a trip down memory lane. Happiness to you is surprising your wife with a paan after dinner, Your motto has always been simpler the better. There’s no reason why you shouldn’t stay that way. The simplest car to drive. Santro zipPlus Automatic.

10. Be precise:

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11. Talk to the individual: have, give, take, get, keep, do, make, know, you, yours, we, ours, Breakthrough AIDS Awareness Campaign

Headline: Do you really care for me? Bodycopy: You seem to think about everyone else...but me. You buy a new bottle of medicine for your arthritic mother before the old one runs out. You insist on replacing your father’s spectacles with new ones even if they are slightly bent. asks for it. It’s nice to know that you care so much for everyone... But I sometimes wish that you’d be as bothered about me as you are about them. Just because you want to be sure nothing ever harms me. Even by chance. Even by accident. Today in India, 20 lakh women are infected with HIV/AIDS mostly because their husbands are the kind of men who don’t think it’s important to wear a condom. What kind of man are you?

12. Curtail bragging:

ONGC We We We We We We We

are ONGC. are India’s Most Valuable Corporate. produce 1 million barrels of oil and gas everyday. are about unearthing prosperity. are about powering movement. are about global enterprise. are ONGC.

13. Chuck clichés:

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14. Use colourful language:

‘MasterCard

MasterCard uses the

The Park Hotel Chairs in which you simply want to sit on a decision. Tables on which the only agenda is a Himalayan apple. Space. You need yours. Try ours. …Where the mind is at rest.

9.2.5 Visuals A visual

9.2.5.1 Types of Visuals

1. Snapshot of the product:

Absolut Vodka’s advertising is celebrated the world over for its stylish, ingenious, humorous and innovative use of the Absolut bottle as a visual. Readers tear out the advertisements and hang them on their walls, librarians have to guard their magazines from being de-Absoluted, college students collect and trade ads, artists paint their own

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interpretations of the Absolut bottle and antique shops sell razored copies of old Absolut ads.1 Each new Absolut ad evokes the curiosity of its readers who try to decipher how or where to look for the bottle or its shape in the ad and interpret what the ad conveys.

Allen Solly Porsche 4. The kind of person who needs the product the most:

Omega Constellation

Elle Clean & Clear Casper Pampers

McDonald’s 6. The ills of not using the product:

FIGURE 9.5

ItchGuard Figure 9.5

Itch Guard depicts the ills of not using the product.

Courtesy: Itch Guard and Mudra. Reproduced with permission.

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Revive 8. A metaphor for the product: Ozone Figures

Awareness Campaign 9.6 (a) and (b) Strepsils FIGURE 9.6 (a-c)

Strepsils illustrates sore throat irritation through the use of metaphors.

Courtesy: Superbrands, Volume II, 2006. Reproduced with permission

9. Comparison with competition:

10. Visual goes alone: Big Bazaar Big Bazaar’s Women’s Day.

9.2.5.2 Putting It All Together: The Page Personality

page personality

Chapter 9

Pears FIGURE 9.7 (a-b)

Pears Junior

Creative Execution and Design in Print

Figures 9.7a-b

Consistency of all print elements creates a page personality for the ads.

Here's to 365 days of happy mornings. Mornings where bath tantrums surrender to a splash of strawberry fun. Mornings that are awash with love, And drenched with goodness: the goodness of olive oil, New Pears Junior gently moisturises and nourishes even the most delicate skin. Sou you can be sure that when it comes to skin care, your junior gets nothing but the best.

Courtesy: HUL. Reproduced with permission.

Courtesy: HUL. Reproduced with permission.

9.3. UNDERSTANDING DESIGN IN PRINT design

9.3.1 Functions of Design clearly quickly and effectively

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A Johnnie Walker golden Johnnie Walker character blithely walking along a golden line and overcoming a series of obstacles. The copy intermittently advises, ‘keep walking.’ The execution of the campaign in magazines ran over a number of pages, which only depicted the character walking along the line on otherwise blank black pages. The minimalist campaign intrigued the reader and compelled him to follow Mr. Walker along the pages till he mystery. With his top hat, waistcoat, cane and boots, the dapper striding man magically climbed ladders, leapt from one rooftop to another, walked tight ropes, sidestepped pits, negotiated barbed wire, and avoided rain clouds. Not only did the design get the reader created for the striding man. An extension of the same campaign substituted the blank black pages with other visuals, but was also successful in creating an impact.

9.3.2 Design Elements 9.3.2.1 Layout

Figure 9.8

Chapter 9 FIGURE 9.8

Popular layout styles illustrated for a zoo ad.

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Illustrations: Rishit Shroff, Architect and Interior Designer.

1. Picture Window:

2. Silhouette: 3. Frame:

LIC LIC.

4. Comic Strip: Gili 5. Rebus: 6. Copy Heavy:

7. Type Specimen: 8. Circus:

Malaysia Airlines Figure 9.10 9. Mondrian:

Figure 9.9

Chapter 9 FIGURE 9.9

Creative Execution and Design in Print

Gili follows the story approach in copywriting and a comic strip layout format.

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FIGURE 9.10

An ad in the circus format.

10. Grid

FIGURE 9.11

Ezee 9.11). 11. Axial:

Ezee uses the grid format.

Figure

12. Nonlinear:

Layout Design Principles

Figure 9.12

Courtesy: Superbrands, Volume II, 2006. Reproduced with permission.

Chapter 9 FIGURE 9.12

Layout design principles.

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Illustrations: Rishit Shroff, Architect and Interior Designer.

Order of elements:

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a Chevrolet Visual path:

Consider what can happen to a message if the visual path is reversed. An ad for a showed a worn-out man wading through a desert and the sun smiling bitterly at him. The middle visual showed him drinking the soft drink. The third visual (on the right) showed the man quite refreshed and the sun donning a pleasant smile. Unfortunately, this ad was released in the Middle East where people read from right to left!

Negative or white space:

Platinum Figure 9.13

FIGURE 9.13

Platinum uses white space to create exclusivity.

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Courtesy: Platinum

Contrast: FIGURE 9.14

Harmony makes all print elements look cohesive.

Unity of elements:

Harmony ad Figure 9.14 Gestalt principles: Courtesy: Harmony and Mudra. Reproduced with permission.

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1. Closure:

2. Similarity: Figure 9.12 3. Proximity: Figure 9.12.

4. Figure and ground: Figure 9.12, 5. Continuity: Figure 9.12

Focal point:

Balance:

1. Symmetric or formal balance:

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2. Asymmetric or informal balance:

Figure 9.12

3. Radial balance:

Proportion:

Rhythm:

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9.3.2.2 Other Design Elements: Colours and Type In nature, light creates colour. In pictures, colour creates light. – Hans Hofmann

McDonald’s

EverYuth Orange Skin Vitalizer

Coca-Cola’s

EverYuth Clear Skin Mask

Table 9.1

serif

roman

sans serif

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TABLE 9.1

Font Families

Summary

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Exercise

Suggested Class Projects KarmaLabs

a. Product: Samsung N500 Headline: Copy: The new Samsung N500

InstaSMS Key

b. Product: Asian Paints Headline: Copy

Product:

Target audience: Price: Competition: Challenge: Message strategy:

Asian Paints

Pogo

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Critical Thinking Questions

CASE STUDY Marico Attracts Talent with its Corporate Campaign2 The Company Marico Marico’s

Parachute, Saffola, Sweekar, Hair & Care, Shanti, Mediker, Oil of Malabar, Aromatic, Fiancee, HairCode, Mealmaker, Sil, Revive, Kaya, Sundari, etc. Marico

Marico Marico

Problems and Opportunities Marico’s Marico’s

Marico Marico

Marico Marico’s Marico Colgate and Gilette Marico’s Parachute

Saffola.

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The Strategy and the Idea Marico Marico’s brand

Marico’s

Marico’s

Marico

Creative Execution in Print they poisoned. How did they die?

Marico Figures 9.15a-f

Marico’s Marico’s Marico

Results Marico Marico Marico

Marico

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6

FIGURE 9.15 (a-f)

Marico’s ‘Uncommon Sense’ corporate campaign uses puzzles to execute the

message effectively.

(a)

(b)

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(c)

(d)

Headline: 38 > 15 Bodycopy: Elementary mathematics. Big deal. Well, actually it is. And here’s why. In the first quarter of 2006, the FMCG industry was busy celebrating its growth rate of around 15%. Until everyone realised that Marico had grown 38% during the same period. The numbers are easy to understand. The hard part is understanding how we’ve stayed ahead of the industry for the last 4 years. A long time ago, we came to an important realisation. That a company can only ever grow as fast as its people do. And talented people grow faster at Marico than anywhere else. Because we give them the space and responsibility they need to grow their ideas into viable and successful brands and services. It’s all part of a culture we call ‘uncommon sense’. And

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(e)

(f)

Courtesy: Marico. Reproduced with permission.

Chapter 9

Creative Execution and Design in Print

Questions Marico’s Marico’s

Marico’s

Endnotes

Business Standard

Business Standard Business Standard Business Standard

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Chapter 10 Creative Execution in Broadcast Media Chapter Objectives

Identify the elements of radio commercials and understand how they can promote

Understand the process of conceptualising and producing radio and television

In Perspective

When executing advertising, it’s best to think of yourself as an uninvited guest in the living room of a prospect who has the magical power to make you disappear instantly. – John O’Toole The difference between a good commercial and a great commercial lies in how enjoyable the details are. – Arvind Sharma

Titan Shifts Consumer Mindset through Advertising1 The Indian watch-maker Titan’s growth in the early 2000s was stunted since new

4 pairs of shoes, changed their mobile phones every year, or upgraded their wardrobes every few months, they exhibited a ‘Brahmanical restraint’ when it

good news for Titan since foreign watch brands were wooing the consumers with

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options but as the market was not expanding fast enough, Titan’s To remedy this situation, Titan embarked on the Herculean task of changing people’s

quotient of its watches and encouraging people to match their watches with their look,

(Figure 10.1a).

each pair, and thus ended up exhausting his entire watch collection for only a 2-day

in the background was the all-famous Titan Titan chords that were

Titan commercial was set in the contemporary setting of an artistically done bedroom with a

more hip look for the Titan Gold & Steel collection (Figure 10.1b), another with a new Titan Wallstreet corporate collection (Figure 10.1c)

growth of high-end watches and helped Titan

FIGURE 10.1 (a-c)

Titan’s ‘Whats your style’ Campaign changes people’s mindset.

Aamir is packing up

Jeeves looks at him and asks... Sir... poora box le chaloon!

Aamir says... nahi nahi, sab nahi...

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FIGURE 10.1 (a)

Contd.

He continues... Sirf do din ke liye ja rahe hain bhai

Jeeves looks at the box, a bit confused Toh...kaun si!

Aamir says... Main dekhta hoon. He starts humming the Titan tune and picks two watches to match his clothes

The Titan tune also starts playing in the background

But as Jeeves turns around, Aamir stops him, tempted to try the others

And takes out some more watches

Still not satisfied, he reaches for the wardrobe

And picks up some more clothes

Aamir keeps on matching each watch to his clothes

Till he finally tries all the watches

He turns to Jeeves after finishing up

Courtesy: Titan, O&M. Reproduced with permission.

Jeeves has to finally put the whole box for packing MVO: Titan. What's your style?

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FIGURE 10.1 (b)

Humming the Titan jingle, Aamir is dressing up when his assistant walks in.

"Naya style." Aamir explains his new hairstyle to his secretary who with a gruffy, "Hmm." asks if they can leave.

The actor stops him and asks, "...yeh kya pehna hai ?" The old man tells him, "Sone ki ghadi hai sir, shaadi...

...pe ja rahe hain na." But the star dismisses it, saying, "Purana style" and takes out his own collection.

MVO: "Titan presents the new Gold and Steel collection."

Wearing the star's watch, the assistant asks, "Ab to theek hai na sir?"

But the creative artist is not convinced that everything is perfect.

Taking a false moustache, Aamir sticks it on him, saying, "Ab theek hai"

The puzzled assistant looks on.

MVO: "Titan. What's your style?" Courtesy: Titan, O&M. Reproduced with permission.

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FIGURE 10.1 (c)

The film opens on a cheerless Aamir Khan with his assistant. He says, “maa ne kaha tha beta pad lo MBA...

...kar lo. Nahin suni, ab baithe hain yahan pe.” The assistant questions, “par aap naukri kyon dhoond rahe ho?”

Showing a watch, the actor replies, “yeh dekh rahe ho? Titan Wall Street. Titan ka naya corporate collection...

...office jaane waalon ke liye," Hearing this the assistant advises him to convert their vacant room to an office.

VO: “Titan presents Wall Street. The new work code.” Cut to Aamir entering his new office with the assistant. The office staff greets...

...him with “Good morning, sir!” As he settles down he sees his assistant hanging something on the wall. “Yeh kya hai ?” he asks.

The assistant replies, “MBA ki degree sir!” Aamir gets embarrassed...

...for his assistant’s funny act. Super: “Titan. What’s your style”

Courtesy: Titan, O&M. Reproduced with permission.

The opening vignette talks about some of the elements that go into the making of a television commercial. In this chapter, we’ll discuss how radio and television commercials (TVC) can be

in the broadcast media.

10.1 AN INTRODUCTION TO RADIO advanced brethren like the television and the Internet. In India, it is facing a revival of sorts with

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radio. Radio has a number of unique characteristics that have ensured its existence even in the midst of new media.

and stations and tends to stick with few. For example, there have been diehard fans of Binaca Sangeet Mala and Vividhbharti morning programme

2

Radio is also

generate a lot of interest. People tend to sing with radio’s songs, visualise its verbal descriptions, lend

of the larger media mix. This is because creating effective radio advertising is tough. There are no

bare basics – the idea and its aural execution. The problem has been further compounded after the

be comprehension and recall issues. Yet, radio ads that are designed to cut through this inattention

10.2 THE PEN IS THE MIGHTIEST

without requiring a budget to build sets, create costumes or go to exotic locations. Radio is thus about

voice of an agitator, etc. The right sounds and voices can save words and help dramatise situations.

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through voices add more soul to the script and entertain the listener. For example, a spot for a burglar he was watching the listeners. The manner in which it was delivered sent shivers down the spine of the audience.

silence. Commercials can be built around sounds. For example, various kinds of laughter along with of Coca-Cola

‘Thande ka Tadka’ TVS Scooty’s

4

Radio Today, spot for Bajaj KB 125 5

who can forget the classic AIR FM radio jingle, ‘AIR FM radio – all the time’? Or the popular jingles of Vicco Vajradanti or Close Up Bajaj Caliber 115 songs are also often twisted to deliver the advertiser’s message.

gets the message.

10.2.1 Imagery Transfer evoke pictures and create scenes that can transport people to wherever the scriptwriter wants them

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visualise scenes and characters from their personal experiences. Radio is thus called the theatre of the mind.

does. Imagery transfer

10.3 SCRIPTWRITING FOR RADIO commercial. It guides the artists, directors and others involved in the recording of the commercial.

is music, sound effects or voices. The right portion has a description of the actual sound effects,

instructions), like the audio descriptors on the left and the directions and descriptions on the right

them from voices.

10.3.1 Popular Structures of Radio Commercials told – through one voice, in a dialogue format, as an interview or vignette, etc. We discussed message

one. The important thing to note is that whatever the structure be, it should be kept consistent in all commercials for a radio campaign so that people can link it to the advertised product.

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1. One voice: The entire commercial is a monologue. The announcer could speak to the listener or to herself making it seem like the listeners are listening to her private thoughts. Choose Lexi pens chose a

Lexi Lexi

2. Dialogue: below. Ad 1

Franklin Templeton Investment ads

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Franklin India Mutual Fund Franklin India Mutual Fund

Ad 2

Franklin India Mutual Fund Franklin India Mutual Fund

The FTI

the scene whereas the announcer did the selling. FTI’s

announcer do the selling.

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AMP Sanmar Assurance Company portrayed a scenario where AMP’s life insurance and even gave phone numbers!

3. Multivoice: When more than one voice is used for a single commercial, make sure that one

Femina Generation W

been told apart. 4. Celebrity: whose voice their brand can get linked. The following ad for Pulse Polio

5. Continuing character: example, the character with a nasal tone asking ‘Kya aap Close Up karte hain?’ had made Close Up

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had become an insipid category that addressed mothers, used dentists in lab-coats, and perk up the Close Up brand, HUL pitched the toothpaste on the freshness proposition with the simple message that Close Up creatively executed using an old-fashioned song ‘Kya Aap Close Up Karte Hain’ that talked about the cons of not using Close Up a nasal tone to resemble the Bollywood music style of yesteryears, was pleasant to hear

and the Close Up

6. Audio demonstration: of voices and sounds alone. Castrol CRB Plus Castrol engine oil to demonstrate the working of its oil. 7. Sounds and Music:

commercial. Navbharat Times

‘Didi tera dewar deewana,’

the message that language matters a lot. Thus, the newspaper in which advertisers place their advertisements matters too.

Navbharat Times

8. Interviews: In this format, an interviewer interviews an individual or a group of people and

ad.

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9. Vignette:

does not look like a bad editing job. The following is a small portion of a commercial for an

10. Case history: Personal Point’s Weight Reduction Center presented Personal Point.

10.4 PRODUCING RADIO COMMERCIALS

individual local stations.

10.5 THE ABCs OF WRITING AND PRODUCING RADIO SPOTS

effects, and other elements, radio commercials can turn out to be quite effective. While there are not can help in creating effective radio spots.

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1. Start with a bang: since there are no visual boundaries or break points between 2 commercials or between a program and a commercial, it is important to use production techniques, sounds, voices,

2. Make one point: would not be able to keep up. 3. Identify the brand:

and that the brand name doesn’t get lost in melodious music or dramatic scenes. Amul cheese’s radio jingle weaves ‘Amul 4. Simplicity counts:

Radio One, commercials shouldn’t make listeners refer back to things said earlier or ask them to remember too much. 5. Keep away from numbers:

phone numbers, advertisers’ names, addresses, etc. is limited. Ahmedabad AIDS Control Society’s public awareness campaign weaves a simple number in its ad jingle and mentions it thrice in a

6. Make it personal:

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promote products. Because of the intimate nature of radio as a medium, commercials should shun marketese laced scripts and work on building listeners’ trust. 7. Be conversational:

various media. Coca-Cola’s ‘Thanda matlab Coca-Cola’ tapori of the campaign. 8. Use sound effects and music discreetly:

the right voice and in the right tone can work wonders, not to mention stand apart from the 9. Choose the spot-length wisely:

works better to set up a scene, deliver dialogues with emotions and intonations, use varied studies have established that in general, spots of 45 seconds or more are effective. select the one that works best for a particular situation. 10. Get the timing right:

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without much affecting the meaning, articulateness or impact of the commercial. 11. Ask for action:

12. Unify a radio campaign: radio commercials to create a consistent campaign. You can fuse all campaign commercials Polio Nivaran spots keep it consistent throughout the campaign. Electrolux Kelvinator’s Washy Talky, Allianz Bajaj Life Insurance used different kinds of ‘Haske jeeyo yaro’ campaign. Polo mints used humour and

brand advertised, like the Franklin Templeton Mutual Funds ads. Close Up and similar piece of music. the campaign. 13. Exploit the timeliness of radio: Radio deals in the current – news and information. 14. Use humour prudently:

disposed towards a brand can also aid in brand recall. For example, consider the following commercial for Lifebuoy.

Lifebuoy of Lifebuoy

HP Cruise Engine Oil In an HP Cruise Engine Oil

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HP Engine Oil, which “Aap doctor hai ya hajaam?” “Main doctor ka driver hoon,”

15. Be daring: cover in terms of innovative concepts. The overriding practice is to spoof movie characters

Amaron belle.

Amaron Amaron, Amaron

Close Up used ‘Kya Aap Close Up Karte Hain’ Radio One. It launched ‘Close Up Mornings’ Pepsodent

Radio One in

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16. Refresh the spots: If possible, write and produce multiple spots for one radio campaign.

have three variants of the same theme as different spots with the same theme deliver the message without causing repetition. For instance, Yankee Doodle ice cream once came up with 8

also be done with caution as there is evidence which states that simultaneous airing of more 17. Customise: person will read the ad. In radio ads, the timing is precise and even the place can be guessed

from work. Radio ads are also more localised. With these advantages, advertisers can tailor

food and movies on weekends. For example, McDonald’s nearest McDonald’s outlet. Its ‘Aao Match Kare’ contest was aired on radio as well as the outlets 18. Present the commercial to the client: Radio commercials are best understood and appreciated when heard. Presenting a written script does not give the client a fair idea of all

19. Try going live: prerecorded commercials. Parachute Therapie 45-Day Hair Fall Solution The brand’s consumer studies had revealed that most consumers were concerned promote the brand on radio in order to exploit its power as a word-of-mouth medium, and Radio City and launched the ‘Parachute Therapie Parachute Therapie

11

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10.6 AN INTRODUCTION TO TELEVISION

10.7 ELEMENTS OF TELEVISION

a message. Though TVCs talk, sing and make sounds, it’s what we see that we remember the most.

or the like.

the brand itself. For example, Nestle coffee’s or Titan hummable Close Up jingle ‘Kya Aap Close Up Karte Hain’ often linger in our minds long after we see the ads. Or the ‘ting ting ti ting... Britannia.

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In addition to video and audio, the written word can also be a part of the television commercial. Print or ‘supers’ can be superimposed on images or plain backgrounds when a message needs to be Naukri.com (Figure 8.1), the super ‘Guess who’s just heard from us?’

happened.

10.8 MAKING A TELEVISION COMMERCIAL

processes. Through the steps, we’ll discuss Daikin understand how it could have been created. FIGURE 10.2

Daikin curtails noise levels of its air conditioners.

Source: www.daikinindia.com Courtesy: Daikin. Reproduced with permission.

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CASE IN POINT Daikin: Complete Silence The Japanese air conditioner manufacturer Daikin

market leader LG Electronics’

was also in consonance with the brand’s superior performance in curtailing the machines’ noise-levels (Figure 10.2). Daikin was ranked number 1 in 12

10.8.1 The Process 1. Review the creative brief: understand the communication background, and the objective of the television campaign.

to deliver more than the single central message. For example, Daikin air conditioners used Daikin insects, which cannot be heard in the normal hullabaloo (in fact, which cannot be heard at all), can be heard when it’s Daikin 2. Think pictures:

like a radio commercial with some images thrown in. Thinking in pictures might seem a bit

Daikin

3. Use narrative:

at the second sleeping man on hearing loud snores. But he then gulps down his irritation and

Daikin air conditioners.

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4. Write a script:

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script is a blueprint comprising of dialogues, sounds, acting instructions,

begins with the name of the brand, and the length and name of the commercial, which are instructions are written in capitals whereas the spoken part (dialogues and voiceovers) are

from dialogues or voiceovers. Voiceover, abbreviated as VO, is an audio feature in which an

Daikin script given in Table 10.1, write that we’ll discuss in a later section. audience. The closing should reinforce the main idea and the product should be featured in

TABLE 10.1

Daikin Air Conditioners: 30 TV “Spider”

1.

LS TWO MEN RELAXING ON COUCH.

2.

MS ONE MAN TURNING WITH A DISGUSTED FACE TOWARDS HIS COMPANION.

3.

MS THE OTHER MAN SLEEPING SOUNDLY.

4.

LS FIRST MAN SETTLING BACK.

5.

CUT TO LS FIRST MAN WAKING UP AND SURPRISED TO SEE THE SECOND MAN AWAKE AND READING A MAGAZINE.

6.

LS FIRST MAN LOOKS AT A WALL FROM WHERE THE SOUND SEEMS TO BE COMING.

7.

CUT TO THE SHOT OF A SPIDER SLITHERING ACROSS ITS WEB.

8.

CUT TO THE SHOT OF A DAIKIN AIR CONDITIONER WITH BRAND LOGO, SUPER ‘COMPLETE SILENCE’ AND SYMBOL OF ‘MUTE SOUND’.

SFX: LOUD AND CONTINUOUS SNORING THROUGHOUT. NO OTHER SOUNDS.

SFX: SNORING STILL CONTINUES.

ANNCR (MVO): Daikin Air Conditioners. Complete silence.

snoring sound, making the viewers curious about what will happen next. The closing shots,

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5. Prepare a storyboard: storyboard does it through selected illustrations or images. It is a graphic organiser of a series of actions, (Figure 10.3).

FIGURE 10.3

A hand drawn storyboard for the Daikin commercial.

Illustrations: Rishit Shroff, Architect and Interior Designer.

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on the right or the images on the top and the directions underneath them. Written directions

out important actions, changeovers or essential moments. mood board for that frame. For example, if the opening scene of a commercial is to show a couple visiting various landmarks of Rajasthan, prepare a mood board for that frame with cuttings of various landmarks of Rajasthan and a couple somewhere in the picture. The director will

contains more detailed production information to guide the director and others involved in photo board of the commercial, with snaps from the for the production staff, but for documentation purposes. Check out the photo boards for the Daikin ads in Figures 10.4a-c. FIGURE 10.4 (a-c)

Photoboards of Daikin commercials that communicate the proposition of ‘Complete Silence’.

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FIGURE 10.4 (a)

Contd.

FIGURE 10.4 (b)

FIGURE 10.4 (c)

(Contd.)

Chapter 10 FIGURE 10.4 (c)

(Contd.)

Courtesy: Daikin. Reproduced with permission.

6. Get the commercial produced:

∑ Number of scenes and shots:

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that are taken from varied angles. The number of scenes in a commercial determines its Daikin scene showing 2 people on a couch. ∑ Setting:

Vodafone ads, the sets were made larger than life to make the characters look small as the producers could not take children due to the odd schedule of shooting. ∑ Length:

∑ Casting: Casting decisions involve designating the right actor for each role in the

Domino’s

Agencyfaqs! Raymond commercial showed pups running towards the male model as they would to a mother, to represent the softer side of the macho Raymond

pups were able to open their eyes only after four weeks, after which they were trained

over, and nestled in his arm, were selected for the more emotional moments (Refer to the Raymond case in the book).13

∑ Costumes and make-up:

of Vivek Oberoi in the Vanilla Coke ad was created to establish a retro positioning for the brand.

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Their thin limbs, contrasted with big bellies and a bulbous head, all added

was made of rubber and pasted on the actors to cut down on the time and cost for The animation effect was achieved by a variety of methods including choosing the right material for the body suits to ensure that there were no wrinkles when the the footage at lower frame rates, keeping backgrounds simple in terms of details, and 14

∑ Props:

Vanilla Coke Vanilla Coke bottle and can, as some of the props. ∑ Art decisions: for determining the look of a commercial. Various factors go into shaping this look – dominant colour scheme, design of objects used in the commercial like furniture and that appear on screen, etc. The advent of computer graphics and special effects has increased the number of options at hand. ∑ Lighting:

Naukri.com ∑ Pacing: The pace of an action describes how slow or fast it happens on screen. For

washes, deodorants, etc. show short clips of actors engaged in different activities, setting the commercial at a fast pace. The number of frames per second also determines the pace, Vodafone

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∑ Camera shots, moves and transitions: jargon. TABLE 10.2

Some Film Production Jargons.

Camera shots Long shot (LS)

As the name implies, in this shot the distance from camera to the image is extensive. It gives a broad coverage of the area indicating the location of a scene – in a garden, in the study, in a lab, etc. Commercials opening with LS tell viewers where the scene is taking place. For example, it is clear in the ‘Hari Sadu’ commercial that the action is happening in the boss’ chamber. Sometimes, directors can purposefully hide the location until later for an element of surprise.

Medium shot (MS)

While in MS it is possible to identify the location to a certain extent, the purpose is not to give viewers a placement or directional sense but to focus on the image with a little background shown around it. For example, the ‘Fly’ commercial of Daikin (see Figure 10.4b) shows MS of a lady preening before a mirror.

Close-up (CU)

In this shot, only one image fills the scene – the close-up of a face or a product. It is a good shot to show product and package details or emphasise facial expressions because there are no background intrusions. The focus is on only one image and more on emotions than on action.

Extreme Closeup (ECU)

Here you get as close as you can without blurring the image. ECU is used to show specific details like parts of a face, marks or logo on a product, etc. For example, a Kwality Walls commercial shows ECU of a man’s mouth biting into the ice-cream with a view to tempt the viewers.

Camera movements Zoom in or out

Zooming in indicates moving towards the image making it seem closer and larger, while zooming out indicates moving away from the image making it seem farther and smaller. The lens on the camera manoeuvres this change in distance, with wide lens helping to zoom out and tele lens helping to zoom in.

Dolly in or out

Dolly in or out, like zoom in or out, also involves moving towards and away from an image. However, in this case the camera, and not the lens, wheels forward or backward. While through zooming only the image gets closer or farther, through dollying one can get the feeling of walking towards or away from the image.

Pan right or left

In this shot, the camera, while physically remaining at one place, turns to the right or left to follow the action.

Truck right or left

The camera does not change angle but moves right or left to follow the action.

Tilt up or down

The camera does not move from its place like in a pan, but looks up or down at the action.

Boom or crane shot

In this move, the entire camera lunges upward or downward over a scene. It would feel like going up in a hot air balloon while keeping your gaze fixated at a farmer working in a field. As the balloon rises, the farmer becomes smaller and the background becomes more visible. You see more fields and more farmers, and then the entire city at a time, establishing the smallness or inconsequence of the farmer in the world. Alternatively, a camera may show an aerial shot of a town, swoop closer to a castle by the river, and go yet closer to zoom in on one dark room in the castle where a princess has been taken prisoner. You can almost hear the accompanying audio translation, “Once upon a time in a far away land, was a castle by the river. In the castle, was a dark dungeon where a beautiful princess was imprisoned.”

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Shot transitions Cut

A cut is an abrupt transition from one shot to another. A cut, like other shot transitions, can carry the story from one action to another in no time. However, it is pertinent that the 2 adjacent shots make visual sense together.

Dissolve

In this softer transition move, one image fades to black while the other image emerges and takes over the original one. A lap dissolve is a slow dissolve in which the fading in and fading out images overlap. Dissolve is not just soft on the eye but can also help go fast forward in time. For example, a commercial can begin by showing an actor eating from a plate full of food and then dissolve to show his plate scraped clean. It can then show a CU of the advertiser’s digestive pill being plopped in water.

Wipe

In this move, one image inches across the screen as a bar and pushes the other one off. The wipe is not a very popular way of showing shot transitions since it distracts the eye.

Camera point of view Objective

Camera records action from the viewer’s point of view who is not involved in the action and witnesses the scene as an invisible entity. Characters do not look directly into the lens.

Subjective

Camera takes the point of view of a character in the scene. For instance, hands would jut out from the sides of the camera and grab the villain by the neck. Next, the camera would receive a punch in the eye, leading to a blackout.

Action maneuvering Freeze frame

A scene is stopped in mid-action so that the audience can have a proper look at something special that is being shown. For example, Tom plants a bomb for Jerry, who discovers it and hides it underneath Tom’s bottom in a Tom & Jerry cartoon. In the next shot, the bomb explodes and a burnt-out Tom is shown frozen in time for about 2-3 seconds till the next shot cuts to Jerry fleeing at top speed.

Stop motion

It refers to frame-by-frame shooting by which static objects appear to move. The object is moved by very small amounts between individually photographed frames, producing the effect of motion when the series of frames is played back at normal speed. Stop motion is also used to film animation, where each frame is recorded one at a time and passed before the eye speedily to create a sense of motion.

Slow motion

It increases the number of frames used to record a movement, thereby slowing down an action. Ever wondered how hero-heroines are shown running in slow motion towards each other in Hindi movie songs?

Fast motion

The reverse of slow motion. The number of frames used to record an action is reduced, thereby speeding up things. This manoeuvring is popular for showing slow phenomena happening in nature within the time-frame of a few seconds. For example, a caterpillar changing into a butterfly, a lotus blooming, dark clouds enveloping a city with clear skies, etc. can be shown in fast motion within the short span of a commercial. Shots may be taken in a piecemeal manner over a long period of time.

Reverse motion

The picture is run backwards through the projector.

Camera angle Eye-level

Camera presents the action from the eye-level of the lens. Hence, viewers see it as they would from their physical heights.

High-angle shot

Camera looks down on the action allowing audience a bird’s eye view of the scene, putting the action in perspective of its environment, and lending a degree of smallness to it.

Low-angle shot

Camera looks up at an action giving it more focus and importance.

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7. Post-production work/Editing:

selects the best shots and brings them together to create a scene. In the next step, the scenes

Brahmastra, cut to him shooting the Brahmastra, dissolve to depict the arrow in mid air, cut

forward into time to show a dream. For example, in the movie Bourne ultimatum

∑ Compilation editing:

∑ Continuity editing:

∑ Crosscutting: the camera cuts from one action to another in an alternating fashion to show some

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attending a board meeting, going to a health club, looking fresh in the evening for a date) or different actions at one time in one place (shot of a man running towards a train about

10.9 SOME GUIDELINES Following are some tips to bear in mind while executing television advertising. 1. Use movie language:

interest. The closing shot is a good candidate for showing product image and logo to reinforce the product. D’Cold Total wanted to portray that although common cold is not socially acknowledged as a serious ailment, it can make the sufferer feel low, lethargic and depressed, and that it would be impossible to get a good day’s work done when

of his iconic movie Pyaasa (Figure 10.5) 16

FIGURE 10.5

D’ Cold Total commercial delivers the message in a truly filmy style.

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Courtesy: D’ Cold, Mudra. Reproduced with permission.

2. Balance video, audio and words: In television advertising, images are more important than enough on the screen to ensure their complete understanding. Images that move too fast, are should also be on the screen long enough to ensure their appreciation, whereas the time of

3. Strategy over technology:

don’t. 4. Product over story:

Bharat Gas GulabJamun to one of her sons, who was slightly less irate, and the other came following

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Dabur Chyawanprash (Figure 10.6), which also uses

should care for the product. FIGURE 10.6

Dabur Chyawanprash relates its ad story to the product.

A couple of kids alight from their school bus and walk the rest of the way home in the downpour. The girl's umbrella...

...gets tattered in the strong wind. Her companion looks on and graciously lends her his umbrella.

On reaching home, he declares to his waiting mother that he's lost his umbrella. FVO: "Baarish, bachhe aur sardi zukham. Isiliye...

...is mausam mein bhi deti hoon Dabur Chyawanprash. Iske amla aur gunkaari tatv zukham ko rakhe door." She towels him dry...

...and fixes him an after-school snack as the doorbell rings. The girl is back to return the borrowed umbrella. As his mother...

...gives him a mock stare, he grins sheepishly and goes back to his meal. MVO: "Dabur Chyawanprash. Banaaye andar se strong."

Courtesy: Dabur, Leo Burnett. Reproduced with permission.

Listerine ad focuses on the Listerine kills bad breath and gives freshness of the mouth through an interesting

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Listerine Listerine 6. Make it intimate:

but also the sound of its engine.

Summary

commercial taped, mixed and copied. In order to be effective, radio commercials should be simple,

Television advertising, with its sight, sound, motion, emotion and progression, is one of the most principal elements that make a TVC. For making a television commercial, advertisers then need to the images. These are then pieced together as a narrative, which is then translated into a script that

requires taking decisions regarding number of scenes and shots, length of the commercial, its setting,

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Exercise

4. What is the role of the various people involved in the conceptualisation and production of a commercial?

Suggested Class Projects

or sound alone?

process and compare it with the overview given in this chapter.

Critical Thinking Questions or verbal medium? 2. Can a mute commercial work on television? In what situations might it be suitable?

CASE STUDY ‘Har Ek Friend’ Campaign Creates Magic for Airtel17 Airtel was in dire need of a creative breakthrough. Its campaigns Vodafone’s Idea’s ‘What an Airtel’s

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Airtel ad – the results were nothing spectacular. Those campaigns did have a high

It was in the wake of this situation that the ‘Har ek friend zaroori hota hai’ campaign was born.

The Idea Given that Airtel

Airtel has earnest plans to give a major share of business Airtel also feels that it is too much of

target group. create a campaign that retained the core of the Airtel brand and struck a chord across age groups, even

The actual creative idea for the friendship theme was arrived after exhaustive brainstorming ad was built on the insight that in this Facebook

‘Har Ek Friend Zaroori Hota Hai’ (see Annexure). as Virgin Mobile and Tata Docomo, Airtel frivolous fun, and based its new theme of ‘friendship’ on the idea that Airtel ‘human relationships.’

About the Ad

chai ke liye toast hota hai…” har ek friend zaroori hota hai.”

Jaise Waise

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punch line ‘Har friend zaroori hai, yaar’ rakhe – Airtel. Dil jo chahe paas laye.” The closing visual is of Airtel’s logo.

“Aur har friend se connected

to. Figure 10.7 shows selective images from the commercial. Its full video on Youtube runs for about FIGURE 10.7

Airtel ‘Har Ek Friend’ Photoboard.

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Youtube Airtel’s previous campaigns – from

it. Overall, the new treatment that is what Airtel attempts to do with the new campaign – progress from being the ‘admired brand’

it doesn’t alienate the older generation of Airtel users, as the theme of friendship and the need for

lips and on status messages on social networks. The music of the ad has also been quite innovative.

The ad has been shot

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Facebook Airtel a follow up to the Facebook contest, Airtel Facebook. These categories include bhukkad friend, chipkoo friend, status update friend, vasooli friend, and activist friend, among others. Figures 10.8-10.9 show two such videos on kanjoos FIGURE 10.8

FIGURE 10.9

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laavni, bhangra, Airtel’s spontaneous celebration of friendship has struck a chord with its target audiences. consumers have commented online that the advertisement has evoked wonderful memories of friendship for them.

Questions

comment on production details like casting, setting, art decisions, etc. of the commercial.

team?

Annexure AIRTEL ‘HAR EK FRIEND’ LYRICS Chai ke liye jaise toast hota hai, Vaise har ek friend zaroori hota hai. Aise har ek friend zaroori hota hai. Koi subah paanch baje neend se jagaye, Koi raat ko teen baje jaan bachaye, Ek teri kadki mein sharing kare, Aur ek tere budget mein sneak in kare, Koi nature se guest koi host hota hai, Par har ek friend zaroori hota hai. Ek ghadi ghadi kaam aaye par kabhi kabhi call kare, Ek kabhi kabhi kaam aaye aur ghadi ghadi call kare, Gossip ka koi ghoomta phirta satellite, Koi sath rahe toh kar de sab alright, Koi effortless, koi forced hota hai, Lekin har ek friend zaroori hota hai.

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Chat room friend, koi classroom friend, Koi bike pe race wala vroom vroom friend, Shopping mall wala shopping friend, Koi exam hall wala copying friend, Movie buddy, groovy buddy, Hi buddy, bye buddy, Joke buddy, poke buddy, Gaana buddy, shaana buddy, Chaddi buddy, yaar buddy, Kutte, kamine, everybody–sab buddy, A to Z. Gin gin ke naam bheja roast hota hai, Par har ek friend zaroori hota hai. Lekin har ek friend zaroori hota hai.

Endnotes com www.indiantelevision.com

www.exchange4media.com www.indiantelevision.com www.exchange4media.com www.indiantelevision.com www.us.indiantelevision. com Hindustan Times Hindustan Times

campaign,” The Economic Times www.afaqs.com com

www.afaqs.

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Part Four Other Promotion Tools

This section introduces students to some of the other fundamental promotional tools that can be integrated in a communication campaign—sales promotion (chapter 11), direct marketing (chapter 12), public relations, publicity and corporate advertising (chapter 13) and communication in the new age other unconventional promotional media (chapter 14).

Chapter 11 Sales Promotion

In Perspective

Chapter Objectives

Consumer Durables Woo Amardeep With Promotions Amardeep Appliance Store was a newly set up consumer durables shop in the heavily populated Borivali suburb of Mumbai. However, in an industry where only 30-40% of consumers decide on a brand before purchase, the store discovered

models each to choose from. Finally, Mr. Amar, the storeowner, cast his vote in favour of LG’s Mr. Amar then purchased one of Whirlpool’s Haier’s Haier also had a mystery shopper scheme

Moreover, Haier come out with a Diwali promotion Haier Bhagyalakshmi, a scratch card offer for end-users Haier Samsung

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Samsung

LG products and consumer durable LG Diwali to advertise in popular dailies at one-tenth the cost. And no wonder, soon after the ad LG Diwali. Soon after its mystery shopper scheme, Haier had offered

Haier Diwali, Amardeep ran a special scratch-’n-win promotion on Haier casseroles, toasters, etc. While only two Haier footfalls in the store certainly increased due to the promotion, and Mr. Amar found many Whirlpool or Samsung Haier.

The opening vignette illustrates the importance of sales promotion in promoting goods at the trade and consumer level. Some industries such as consumer durables heavily rely on promotional schemes to differentiate their offering and spur sales. In this chapter we give a primer on sales promotion, the importance of which is growing remarkably in the current times.

11.1 AN INTRODUCTION TO SALES PROMOTION times, little did marketing managers know that they had hit on a promotion tool that would grow exponentially with times. Today, sales promotion is no longer only a powerful marketing tool, but an services industry includes about 8,000 companies with combined annual revenue of about $12 billion.1 In India it’s a Rs. 5,000-crore plus industry, and growing.2 Of course, the industry size is hugely underrated because a large part of it is unorganized and unaccounted for. However, the importance of sales promotion can be gauged from the following facts: ∑ In many consumer packaged goods companies, sales promotion accounts for 65–75% of the combined advertising and sales promotion budget. ∑ Sales promotion accounts for nearly 74% of all marketing expenditure in an average consumer ∑ Share of sales promotion advertising in print media (one of the most popular media used for sales promotions) in India was 15% in 2009, which represents an 8% growth over 2008 (Figure 11.1).3

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Sales Promotion in Indian Print Media in 2009

Sales Promotion 15% Others 2%

Share of Sales Promotion ads 1% 1% 3% 3% 3% 9% 31%

Brand Promotion 83%

23%

26% Discount Promotions Add on Promotion Tariff Offers Combination Promotion Volume Promotion

Multiple Promotion Contest Promotion Exchange Promotion Finance Schemes

4 ∑ 5 ∑ ∑ Emergence of sales promotion as an industry is best explained by companies that deal in only institutional sales of gifts. They have become an integral part of sales promotion industry and quite often carry out a thorough research on the kind of gift that would suit the product vying for consumer attention.6 In essence, sales promotion has grown dramatically in the recent years for four main reasons. First, with increasing product parity, consumers are exhibiting a growing indifference towards brands. Thus, in addition to the imagery created by advertising, the discerning consumer also accepts sales promotion as part of her buying decision criteria. She may thus prefer buying a brand that offers an incentive. This is especially so in certain product categories such as the consumer durables category (e.g. washing machines) where the differential point between brands is quite clouded. In such a situation, it then remains to be seen what the distribution strength is, what the dealer strength and

consumer expectations, and the desire for quick bottom-line results, businesses are focusing more on short-term sales results than on building long-term relationships with consumers. Brand managers in a short time. Thirdly, an increase in the size and power of retailers has also boosted the use of sales promotion. Earlier, marketers held the control with mass advertising and stores could not afford to ignore heavily

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advertised brands. But now organized retailers wield enough power to demand compensation to stock and display competing brands. Finally, computer technology has enabled manufacturers to better of large territories were not easy to manage before. But now, they can get rapid feedback from the trade as well as keep a tight control over the deals offered. This documentation is vital for planning not only sales promotion but also advertising strategies in different territories.

Redefining the Role of Sales Promotion In Chapter 1 we discussed that sales promotion is an important element of the promotion mix that run, by changing the price-value relationship of the product in their favour. However, this explanation of sales promotion is not fully accurate as it implies that sales promotion is only a tactical tool that serves the sole objective of pushing sales in the short term. It does not state how promotions work and how they affect the brand in a strategic way. We have seen in Chapter 3, which discusses the consumer-buying process, that a consumer goes These stages are: problem recognition, information gathering, pre-purchase evaluation, decisionmaking, purchase and post-purchase evaluation. Except in the case of very low-involvement, lowpriced, or impulse items, most consumers don’t make an impetuous decision about what products to buy. Hence, different marketing tools and activities are used to impact different stages of this buying at a direct behavioural level. This is why it does not usually have long-term effectiveness, and strives for more immediate results. For example, when a product is offered at 25% discount, it may not much affect the consumer’s general attitude towards the product, but it may bring him to purchase it, which he may not have done without the inducement. So how is sales promotion able to affect behaviour directly? As we know, every product has some perceived price or value and sales promotion changes this accepted price-value relationship by lowering the price, increasing the value, or both. For example, through tools like price reduction, coupons, rebate, etc. sales promotion can lower the price of the product, whereas through other tools like price-packs, premiums, sweepstakes, etc. it can add something of value to the product. Thus, a better deal offers consumers a reason to purchase and the time-bound nature of the deal propels the consumers to purchase the product at the earliest. However, because ‘getting consumers to purchase a product immediately’ is such an impelling

elements of marketing or communications mix, and have been degraded to the status of a “necessary evil” that nobody really likes, but everybody usually uses. However, such a myopic attitude towards sales promotion can have a very detrimental effect on the overall integrated marketing communications plan of an organization. To be fully effective, sales promotion has to give due importance to factors like the positioning and personality of a brand, its a more appropriate

that recognizes its role in the overall brand-

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building process is: “Sales promotion is a marketing and communications activity that changes the price-value relationship of a product or service perceived by the target, thereby (a) generating immediate sales, and (b) altering long-term brand value.”7 ∑ Sales promotion leads to immediate sales by either lowering the price or adding value. ∑ ∑ What matters is the change in “perceived value”, not just the tangible attributes and actual price. ∑ While sales promotion does have a short-term and immediate effect, it can also have a residual value or a positive long-term effect on the brand franchise. It is important to note the last point. The ‘residual value’ of sales promotion could be in the form of consumers’ positive attitude or preference towards the brand, their better understanding of new regular users who may otherwise not have tried the brand, its relative immunity to competitive promotions, etc. Such long-term effects are usually ignored by the brand managers of FMCG products, which is why exactly opposite results are observed – too much promotion leading to brand erosion, consumers and retailers becoming deal-prone, etc. This chapter therefore examines how sales promotion can be used both as a strategic and tactical tool, depending on the objectives and demands of the situation. We will discuss this issue further in Section 11.5. Table 11.1 lists some of the popular objectives of any sales promotion campaign. TABLE 11.1

Objectives of Sales Promotion

Sales promotion tools have very specific objectives, most of which impact sales instantly. It is also an additional plus if along with short-term results, they positively affect the long-term value of the brand. This happens when the promotion is not only a tactical move but has a strategic foundation. Following is an illustrative and not exhaustive list of the objectives for carrying out sales promotion activities: ∑ ∑ ∑ ∑ ∑ ∑ ∑ ∑ ∑ ∑

To build product trial To encourage purchase of larger-size units To attract switchers To reward loyal customers To adjust to short-term variations in demand-supply, e.g. to use excess capacity To offset competitor promotions To stall or prevent competitor entry To motivate channel-members to advocate the marketer’s brand To persuade channel members to carry new items and stock higher levels of inventory To encourage off-season buying

11.2 STRENGTHS AND LIMITATIONS OF SALES PROMOTION Sales promotion techniques yield results that many other marketing communication tools cannot achieve. For example, they can turn around a sales trend in the short run, help introduce a new product by encouraging retail and consumer acceptance, reinforce messages driven by other communication-

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∑ Sales promotion – to try, buy, buy more, or buy more often. It can lead to trial, generate excitement, encourage repeat purchase, attract switchers, etc. Because it produces almost guaranteed spike in sales, marketers who are under increased pressure attractive. ∑ Because sales promotion incentives are time-bound, they produce

can start pouring in within weeks, days or hours. ∑ Not only are the results immediate, but also

. While

. Rupee-for-rupee measures can

of communication since sales promotion results in quick and strong sales. Therefore, it is ∑ Sales promotion techniques directed at channel members or sales force can and involvement and help “push” the product. It helps getting shelf-space or new contacts, etc. ∑ Sales promotion is comparatively . It is possible to precisely calculate costs, effect on product sales and sometimes even on competitor sales. Thus companies can move sales promotion design and implementation to lower rungs in the management, such as sales supervisors, assistant brand managers, or promotion agencies. ∑ Sales promotion is compared to many other tools of communication. It does not require large budgets normally required in an ad campaign for the creative or media. It is also easier to plan and execute locally. Hence, even small players are able to use sales promotion effectively. Moreover, on a cost-versus-results basis too it is more effective. In spite of its many advantages, there are certain tasks that sales promotion cannot achieve like changing negative perceptions about a product, building brand image, reversing a long-term sales decline, etc. Moreover, although sales promotion can create immediate short-term results, it cannot be a cure for a bad product or a poor marketing strategy. A consumer may buy a product once due to the offer, but will not go for repeat purchase if the product itself is lacking. Following are some serious cons: ∑ Most sales promotion is used for . Such excessive use can shift focus on short-term marketing planning that acts only at the behavioural stage. ∑ Generally when a brand is price-promoted too often, only as a tactical move, consumers tend to devalue it and purchase only when it is offered on sale. Thus, undue use of sales promotion can turning the brand into a commodity. ∑ In a bid to outperform their competitors, companies keep on discounting more than ever, which can severely their . It can also decrease the perceived value of the product and increase consumer price-sensitivity, thus adversely affecting the long-term loyalty of consumers. Besides, in mature markets, sales promotions don’t do much in attracting new consumers, but only switchers who are deal-prone.

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∑ Both consumers and trade can engage in , i.e. stocking up. They can pre-pone their purchases to time them in the deal period and purchase less during the post-deal period, thereby not affecting overall sales. ∑ Some techniques by consumers and trade. For example, on-pack premiums get stolen, people redeem coupons for products they haven’t purchased, retailers sell premiums separate from the product, etc.

11.3 PUSH AND PULL STRATEGIES Sales promotion strategies can be differentiated as push or pull strategies depending on whether their focus is on trade or consumers. In a , promotion efforts are directed at the end consumer. The objective is to get him to the retail outlet and ask for the product through the use of incentives such as price discounts, premiums, coupons, etc. and get him to “pull” the product from the distribution channel. This strategy usually requires advertising support to inform consumers about the deal.

Alto, WagonR, Omni, Swift, A-star and Ritz Facebook and Orkut 8

On the other hand, a is focused on channel members and/or sales force. Its objective is to get the channel members to stock and display the product, make selling efforts like recommending or demonstrating the product to consumers, run their own advertisements for the product, etc. as illustrated in the opening vignette on Amardeep store. To the sales force, it gives an impetus to increase their selling effort and push the product down the trade channels. With the increasing power of retailers, trade promotions have become very popular, and are often a larger part of the marketing expense than consumer promotions, especially in industries like consumer durables. already aware about and positively disposed towards the product, and when product differentiation exists. It is also effective with certain audiences like children, who are easily enticed by attractive premiums or prizes. A push strategy is more useful when the product is new or complex because trade advocacy or assurance always helps in such cases. Even when there are many substitutes or little push strategy can be helpful. Finally, when budget is a constraint, this strategy can be used, since pull strategies are much more expensive. Rarely do marketers use push or pull strategies separately. They usually recourse to a combination of both, because most products need retail acceptance and support, and also consumer preference, from industry to industry.

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11.4 POPULAR SALES PROMOTION TOOLS There are several promotional tools that can produce impressive immediate results in the manner that marketers desire. We segregate these tools based on whether they are generally used for consumer, trade, or sales force.

11.4.1 Consumer Promotion Tools Consumer promotions are directed at the consumer to induce them to purchase more, buy immediately, try a new product, or even to build brand awareness or equity. Following are some popular tools. Price discounts or price-offs are probably the easiest to administer and the most commonly used sales promotion tool. As can be seen in Figure 11.1, they had a 31% share of overall sales promotion ad campaigns used in print media in 2009. They offer a marked discount on the retail price, and are advertised either as a percentage reduction (40% off) or as a straight price deduction (Rs. 10/- off). They are also very commonly used for economy segment products as their consumers tend to be quite price sensitive and prefer discounts more than added value. They can be availed of by the consumers immediately at the point of purchase, without requiring them to do anything. A variant of price-off is where price of a product is reduced in exchange of an old product. at the point of purchase. Price sensitive consumers notice such discounts readily and usually favour discounted brands over competing products. However, price-offs are not used only for economy products. For instance, Nivea for Men range launched in 2012 is a new entrant in the Indian market that is concentrating on generating trials at the top end. Hence, they have initiated introductory pricing manufacturers who can lower the price of a product for a limited period, in a limited geographical period of 2009, TataSky+ had announced an ultra-low price offer during Diwali of 2009, offering the product at Rs. 4,999 as opposed to its regular retail price of Rs. 8,999. Discounts can help counter competitive threats (such as price reduction, packaging changes, heavier advertising, etc. by competition) by persuading consumers to purchase the marked down brand. And unlike some other promotional tools, the cost of promotion can be predicted upfront based on sales estimates. Discounts are often offered by retailers as well – most commonly to clear their excess inventory. Retailers that keep changing their merchandise frequently, such as clothing stores, are most likely to offer such discounts. They may also offer price-offs to create an overall low price image for themselves. For instance, grocery stores or supermarkets may offer certain products as “loss leaders” to bring more consumers into their stores. Retail chains like Reliance Fresh even have their own newspaper supplements tagged along with dailies to advertise the products or brands offered at a discount. However, price discounts are the least creative of all sales promotion tools and do not do anything to boost the brand image. Few new sales are likely to be made after the brand goes back to its regular price. If used too frequently, price-offs downgrade the image of the brand and may create a ‘low quality’ perception among consumers. Further, they do not distinguish between different categories

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Domino’s Promotional Coupons

switcher as to a loyal consumer. Couponing is the most popular sales promotion technique in countries like coupons to save 4.6 billion dollars on their purchases of consumer packaged goods9) and is fast catching up in India as well. Domino’s, for instance, has been doing print coupons in India for nearly 10 years now (Figure 11.2). to some sort of incentive on the purchase of of a price discount, but it can also be a free gift, a free sample, or anything else. The offer and its accompanying conditions are printed on the coupon. Coupons are distributed through newspapers, magazines, direct mail, email, online sites, mobile phones, etc. or offered at the retail outlet itself, either by the manufacturer or the retailer. Coupons offer many of the advantages of price discounts. Besides, unlike price discounts, coupons help in discriminating between price sensitive and insensitive consumers. Only the former are more likely to clip, preserve and redeem coupons, whereas the latter continue buying at regular prices. Typically, coupon users are consumers who are not too hard pressed for time, who consider themselves as savvy shoppers, or who have high grocery bills. They are more likely to be retired people, college goers or women. Coupons tend to be an expensive way of promoting products, primarily because the redemption rates are very low. For instance, a report from Juniper Research has found that the global redemption rate of mobile coupons will average at over 8% by 2016 – an eightfold increase over the best paper coupons campaigns.10 This redemption rate is still not enough to offset the cost of printing and distributing paper coupons. And the use of mobile or online coupons, while picking up, has not gained enough traction in India. Redemption rates of print coupons are also low because they require consumers to cut, preserve, and remember to use them when they go shopping. For instance, when Pidilite had hand-delivered coupons to motor mechanics for one of its auto maintenance products, most of the coupons had gotten washed off with their greasy t-shirts and were never redeemed. Further, excessive couponing can make consumers deal-prone, erode brand loyalty, and encourage switching behaviour. Sometimes it can also complicate production and distribution issues as manufacturers don’t know how much to produce and retailers, how much to stock. Moreover, coupons are sometimes used by consumers who would have purchased the product at full price anyway. Hence, in order to target price sensitive consumers or competitive users only, companies often use direct mail or electronic distribution methods. Coupons can also be targeted regionally.

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Refunds return to the consumers the total amount paid for the purchase, whereas rebates return a part of the purchase price some time after consumers have purchased the product. Many times, the words ‘refunds’ and ‘rebates’ are used interchangeably. They can be

common type where a consumer can mail to the marketer a coupon, purchase receipt or barcode to claim his refund, which usually arrives in the form of a cheque. The turnaround time is typically between four and twelve weeks. There are clearing houses that process rebate applications and send payments. Some promotional programmes offer instant rebate where the rebate is in the form of a prepaid card or coupon, which can be spent immediately at the store. Rebates are often used when marketers want to raise prices without causing adverse consumer reactions. Rebates can provide a temporary discount and help maintaining the current price point. items, and hence quite attractive to consumers, despite most rebates not being available instantly. Refund offers work very well in guaranteeing the trial of a product since there is no risk involved for the consumer because of the promise of total refund of the purchase amount. Some marketers introductory period. In India too, Taj Mahal tea guaranteed its taste by openly announcing to the public, “Agar chai pasand nahi aaie, toh poore paise vaapas!” In 2009, the Chinese consumer electronics brand Haier Appliances out with a Diwali promotion Haier Bhagyalakshmi, a scratch card offer that assured a cash back of up to 100% discount on the purchase of any Haier refrigerators, washing machines, air conditioners or colour televisions. The information given in rebate and refund data forms is also useful for building databases, especially in current times of “do not call” registries where regulators require marketers to prove existing business relationships with customers before calling. Refunds and rebates are also a good way for companies to earn interest on that amount during the turnaround time. Besides, while customers do get drawn in by attractive refund/rebate offers, many of them often forget to claim the amount, are too busy to send back claim forms, miss the claim deadline, or forget to encash the claim cheque. Such unclaimed amount is a bonus for the company as the sale is made without having to consumers. One of the biggest hassles with refunds and rebates is the paperwork involved – both for the them, and cashing in the refund/rebate cheques. The manufacturer too has to employ clearing houses for processing these sums, and engage in data mining from the forms received. It also has to estimate how many claims will be made in order to provide for adequate funds. If the discounts are Finally, rising postal costs have also made mail-in rebates less attractive. These are special packs or price packs where a consumer is normally given more of the same product, or another product by the same company, for the same or lower price. In a bonus pack, an additional quantity of the product is offered by attaching it to the standard pack of the product. A banded offer is one where the marketer develops special packs of the product containing more quantity (Figure 11.3). For instance, toilet soap packs that say, “buy three

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get one free,” and ketchup bottles that tout, “33% FIGURE 11.3 A Branded offer by Marie extra,” are examples of bonus and banded packs respectively. In the case of the toilet soaps, the fourth free bar is packed together with the other three bars, whereas the ketchup bottle is likely to be of a larger size. Bonus and banded packs are common for fast moving products where additional product is seen as a desirable reward. Often a slow moving product or a newly launched product sample of the company is attached with the fast moving product. A variant of these specialty packs are that package a number of brands of a company into an attractive pack for festivals or special occasions. FMCG marketers like Cadbury, PepsiCo, Dabur, Britannia, Parle Agro, etc. have been at the forefront of such packaging innovations. Bonus and banded packs are often used to reward and retain current customers and to take them out of the market (by loading them with extra product) when competitors are expected to be promoting. For instance, when a brand’s consumer has stocked up on four bars of soap, she is not likely to purchase any more soaps for a few weeks, thus remaining immune to the competitor’s offer during that period. These special packs are easier to budget as manufacturers know in advance how many they resistance since retailers have to provide for extra shelf-space for the special pack. Special packs are also not very appealing to a brand’s non-users, as they wouldn’t want more of a product they don’t use rubber band that can be taken apart easily, the extra product may be sold separately by unscrupulous retailers. These are special gifts – toys, household utility items, collectibles, or other attractive items – that are given free (or at a lower cost) with a product. Premiums can also be other items sold by the manufacturer or another partner, as they can provide a sampling vehicle for the new product. Very rarely, manufacturers may require consumers to submit proofs of purchase, such as barcodes, to receive premiums (typically through post) after purchasing the product. Premiums can be inpack, on-pack, near-pack, or sometimes received after purchase through mail. In-pack premiums are placed inside the pack, such as surprise toys inside cereal boxes, whereas on-pack premiums are banded to the pack with a paper tape, rubber band, blister pack, etc. Sometimes the pack itself can be a premium, such as reusable plastic containers for ice cream packs or milk powders. Near-pack premiums are offered at the point-of-purchase, such as a complementary breadbasket with an order of soup or a free nail-polish-of-choice with a purchase of three lipsticks. And in-mail premiums are mailed later because they may require a proof of purchase. free gift), but occasionally marketers may charge a small price to cover the cost of executing the

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promotion. For instance, in 2003, Cadbury ran a scheme where it offered to its customer a badminton racket for an additional price of Rs. 7 per kilogram of Bournvita, in the nourishment drink segment. The scheme was withdrawn in less than a week because all the badminton rackets were exhausted. Perhaps the company did not anticipate this kind of frenzy from its youthful consumers.11 Premiums give consumers a sense of being rewarded for buying a product. Carefully chosen premiums can increase the value of a product, generate interest in a dull product category, and boost sales. Premiums in the form of toys are very popular with children and can be the prime reason for the sale of a product, as illustrated by the following Case in Point.

CASE IN POINT Kids are ‘Loving it’ with Happy Meal Toys12 World over, McDonald’s McDonald’s McDonald’s McDonald’s

McDonald’s as their favourite fast-food McDonald’s McDonald’s from the Barbie collection, boys have been able to race away in Alpha-assault, Formul8trHot Wheels toy collection. There have been Happy Meal toys for the movies Ice Age, Madagascar, and Avatar too. McDonald’s

McDonald’s earns about 2% of its revenues from Happy Meals. McDonald’s has partnered with the Nickelodeon channel for the

promotion will be introduced in 30 cities across all McDonald’s outlets for a period of four Nickelodeon, McDonald’s For the second tie-up, Nickelodeon the Happy Meal at a press conference in Mumbai (Figure 11.4).

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Launch of Happy Meals in Mumbai

Premiums like small recipe books with masala mixes, or mugs with Bournvita packs increase or facilitate product usage, or serve as brand reminders. Like bonus packs, the cost of premiums can be pre-budgeted. Additionally, unlike bonus packs, they may also appeal to a brand’s non-users if distribute. And there can be retailer resistance if the premium takes up too much shelf space. There can also be product pilferage by retailers. For instance, when Surf was offering Rangeela water colours manufactured by Pidilite Industries along with its detergent pack, many retailers sold the colours separately. Sometimes Surf consumers themselves declined the colours because they had no schoolgoing child in the family. Thus, if a premium increases the price of a product, a consumer who does not want the premium may not buy the product at all. Continuity or loyalty programmes reward and encourage loyal consumers programme introduced by American Airlines in 1981. Since then, they are very popular in retailing and certain service sectors such as travel, hospitality, oil and petrol pumps, etc. Consumers who frequently buy from a retail outlet can become its members and are typically given a loyalty card, membership card, or club card, which accumulates points for the customer each time she purchases from the outlet. When the consumer has enough points on the card, she can claim a discount on the purchase or redeem points for rewards offered by the provider. Continuity programmes are useful in encouraging brand loyalty among consumers, especially in categories where there is little product differentiation or switching is common. For instance, a Jet Airways is likely to prefer the airline over, say Emirates Airline on a route that is served by both the airlines,

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even if the latter is offering a slightly lower fare. This is because his ‘JetPrivilege’ membership would earn him points for the trip taken, which can be redeemed for cheaper or free tickets, discounts at consumers who may become brand advocates too. Further, loyalty programmes can take consumers out of the market for competitive products. They also provide a complete view of a customer. This includes their interaction with the company and other online behaviour such as on the social media. Organizations can build databases of their consumers and track their purchasing pattern. For instance, every time a Westside ‘ClubWest’ member purchases using his membership card, his purchase information is recorded in the retailer’s database. Westside can then send him a customized offer on home décor products if it notices that the consumer consistently purchases these items from its stores, thereby reinforcing his loyalty.

Shoppers’ Stop outlet in Mumbai, the company realized that

Shoppers’ Stop noted an increase of Rs. 2 crore in sales from

they must run for a long period of time to be effective. A similar commitment is required from the consumers as well, and if they don’t receive any rewards for too long, they may become impatient and forsake their membership. Continuity programmes are thus not very effective for inexpensive or infrequently purchased products. In India, the entire process of loyalty programmes is so complicated use them. According to industry sources, only 25-30% of shoppers in India actually opt for a loyalty programme, and even among those that do, only 15% actively use them. Besides, consumers do not want to carry a dozen separate cards every time they go shopping.14 However, tie-up for loyalty point exchange and redemption, or coalition loyalty programmes are seen as a big innovation that would change the fortune of loyalty cards in India.

Pantaloons, Big Bazaar, Food Bazaar, Central HomeTown, eZone, Brand Factory and Future Bazaar

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And for Pantaloons

There are also long-term management and administration costs attached to these programmes. their rewards and when. Hence, to reduce the permanent liability of redeeming rewards, sometimes organizations set an expiration date to the points. It is also debated whether continuity programmes are the best way to create brand loyalty, as often times the loyalty is to the reward, not to the brand. Further, as competitors start offering similar programmes, consumers get used to them, making it nearly impossible for marketers to discontinue them. For instance, today almost every international affair, especially when consumers have started taking them for granted. Burdened with this pressure,

Also called FIGURE 11.5 A Recipe Contest Announcement by Amul , sweepstakes are a game of chance that give the participants a chance to win a prize by submitting an entry. Instant-win sweepstakes allow consumers to scratch or peel off a covering on a game piece to discover if they have won a prize. On the other hand, contests are games of skill (such as writing a poem, completing a crossword, submitting a photograph, etc.) that also give the participants a chance to win a prize by submitting an entry. Amul, for instance, has regularly organized recipe contests requiring the use of its products (Figure 11.5). Typically, contests that offer prizes require product purchase and the marketer may call for proof of purchase such as part of the product pack with the barcode. For instance, product purchase was necessary for the ‘Britannia Khao, World Cup Jao’ contest (see Case in Point below). Sweepstakes and contests can generate a lot of excitement amongst target audiences. Many times they are tied-in with other events and activities, and hence have a lot of media and publicity value (see

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Havmor case at the end of the chapter). The game-like nature of these activities is also very popular sweepstakes is easier (as no skill is required), they attract larger audiences than contests. Sweepstakes also usually offer larger, more attractive prizes. However, contests usually attract people who have some interest in the product being promoted. Besides, sometimes they help in solving a marketing problem. For instance, contests that ask consumers to arrive at a new tagline, send their photos for a new commercial, etc. help in both – generating excitement and making the marketing team’s task easier (refer Havmor case). Sweepstakes and contests are great tools for building a consumer or prospect database. Further, the database generated through a contest is likely to be of people who are entries from women who like to cook, pet photo contests receive participation from pet owners, etc. Thus if strategically used, sweepstakes and contests can generate excitement, boost sales, as well as Case in Point below.

CASE IN POINT Britannia Cashes on World Cup Fever16 The Challenge:

Britannia Industries Limited Britannia

The Idea: The Objective: The Strategy: Britannia’s The Promotion: ‘Britannia Khao, World Cup Jao’ was launched as a three-month Britannia. The company rolled out Britannia Khao, World Cup Jao’ on its

had won a prize.

trip to London. Salient features: ∑ The scheme was launched one month prior to other promotions in a relatively clutterfree period.

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∑ Britannia’s ∑

The Budget: and other brands such as Pepsi, LG, Philips, Hero Honda, ICICI Pepsi LG Samsung The Results: ∑ ∑ Britannia that period. ∑ participated in Britannia’s

∑

Britannia’s Forbes Global and The Economic Times

Britannia

∑

Thus, Britannia’s strategy reversed a declining sales trend and instilled life into its products. It was able to avoid wastage of funds by avoiding clutter and in spite of a relatively low budget, was able to get In spite of their advantages, it is not easy to plan and manage lucky draws or contests. Most importantly, there are a lot of legal regulations to comply with (such as clearly stating the terms and conditions for participation, arranging for evaluation, and notifying winners) and it is best to follow professional legal counsel. If contests and sweepstakes are not well linked to the brand, the game itself might become the focus, and the brand, secondary. Moreover, sweepstakes and contests are relatively expensive to execute and usually require substantial advertising or event support to elicit participation. Although more people enter in sweepstakes, their involvement level is very low. It is the most direct method of putting a product straight into a consumer’s hands. A small portion or pack of the product is given as a free sample to consumers so that they can try Sunsilk booths outside

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prominent supermarkets in metros where consumers were given a free shampoo service. Similarly, food manufacturers offer small food packets outside malls or movie halls, car dealers offer test drives to prospective consumers, etc. Samples can be distributed through direct mail, door-to-door distribution, newspapers and magazines, websites, packages of other products, or through central locations such as retail outlets, shopping malls, cinema theatres, etc. The type of the product, cost of distribution through a particular method, type of target audiences, etc. will decide which distribution method is used. In cases where samples are distributed through people stationed at central locations, a product demonstration may also be made to explain its features. Sampling provides a risk-free way for consumers to try a marketer’s product without having to deviate from a product that they already buy. It is very effective as it has a high trial rate. And if the sample is distributed to the right target audience and has a distinct point of advantage over competition, the conversion rates can be quite high too.

FIGURE 11.6

respondents in 2008 by Arbitron and Edison Media Research, it

Propensity to Consume a product after sampling

100% 85%

considerable results in both brand 75%

surveyed reported that they would

60% 50%

new to the sampled product;

47%

25%

heard of the product but had never who had previously purchased the product. Their propensity to purchase is shown in Figure 11.6.

0% Retention Acquisition Conversion (never heard (Bought product (Heard, of the product) but never bought) before)

Sampling works well for products that can’t be described very well in advertising and need some demonstration, for products that have low awareness or market share, for crowded categories where brand loyalty is high, and for categories where new users constantly enter the market (e.g. baby diapers). Often, people have never purchased a number of products in certain categories, and they can be persuaded to change their future purchasing habits through sampling. While advertising takes some time to work, sampling can quickly convince consumers to buy a particular product. It is frequently used for promoting ‘newness’ – to stimulate trial for new and improved products, to

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encourage new uses of an established brand, to attract a new segment of target audience, to draw attention to a new and functional package, etc. Like all promotional programmes, sampling too works A major disadvantage of sampling is that it is expensive. It requires packaging the product into small trial containers and distributing them at prominent locations to the right audiences. Besides, not all products lend themselves to sampling. Products that cater to very niche audiences, are very expensive, cannot be divided into small samples, are one of a kind, are purchased quite infrequently,

that requires several weeks of usage, a month-long tour to Europe, a drama at a local auditorium, opportunities before product purchase, wherever possible. For instance, clothes and footwear can be tried before purchase; digital cameras, laptops, or vacuum cleaners can be operated before buying; washing machines can be demonstrated; furniture can be displayed in showrooms; trailers can be watched before buying movie tickets; etc. Strictly speaking, joint sales promotion is not a new kind of promotional tool, but an innovative form of sales promotion that is run by more than one company and/or brand. Fair & Lovely free with its Lux soap as an intra-company Kwality Walls tied up with Cadbury’s to give free 5 Star with the purchase of Kwality ice cream, it is an instance of inter-company joint sales promotion. Joint promotions are one of the oldest marketing tools that companies employ to push sales. For example, sales promotions during 1978 and 1979.18 Joint sales promotions typically take the form of premiums, as shown in Table 11.2. Joint promotions are most popularly used when there is target market commonality (e.g. Nestle’s baby food brand Cerelac tying up with Johnson & Johnson’s baby soap), or when a company wants to target a new market segment (e.g. promotion of Tata tea with Saffola oil to reach the segment of health-conscious consumers). They may also be used when there is commonality of need due to timing of product usage (e.g. biscuits promoted with tea), a slow moving brand needs to be pushed by an established brand, when two brands share a seasonality pattern (e.g. Kelvinator refrigerator and VIP suitcases were jointly promoted during summer), etc.19 TABLE 11.2

Classification of Joint Sales Promotions Based on Nature of Pomotion

Sr.No.

Nature

1.

Premium (free Gift)

2.

Discounts

Frequency

Percentage

120

61.9

28

14.4

3.

Coupons

1

.5

4.

Contests

15

7.7

5.

Lottery

24

12.4

6.

Combo Total

6

3.1

194

100.0

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students a chance to win HCL ME U1 Tabs and HCL ME Gaming consoles. With a

20

When joint sales promotions are intra-company, the participating companies can pool in their

implement such schemes as coordinated planning from two different marketers is required. Terms there should be willingness to share information before, during and after a promotion. It is also possible that the negative equity of the smaller brand rubs on to the bigger brand, making a dent in its image. Hence, partner selection should be done with great care.

11.4.2 Trade Promotion Tools Trade promotions are extended to the trade channel – retailers, wholesalers, distributors – to encourage such as price discounts, premiums, contests, etc. are often used to promote products to the trade channel as well. Only their form may be different. In a long trade channel, trade promotions are developed by the manufacturer and offered to the distributor, who may or may not pass them on to manufacturers may offer them through their own sales force. Among the accepted trade promotion tools, trade discounts are the most frequently used. Discounts are offered to channel members in a number of ways. Following is a brief description of some prevalent tools. As the name suggests, buying allowance is a trade discount on the purchase of a brand at a certain time. For instance, a buying discount of Rs. 100/- per ten cases of biscuits, where each case of biscuits is Rs. 100/- each. Buying allowances are often tied to the number of pre-festival season). When there is a minimum purchase requirement, it is more aptly referred to as it is called . Off-invoice allowance is deducted from the invoice whereas quantity discount may even be offered as a credit. Buying allowance is the easiest to institute and handle by the marketer. Quite often, its prime objective is to retain distribution. It can be used to ward is the most popular allowance, it does not result in much action by the trade, which usually absorbs the allowance as extra margin on the product. Besides, they may even stockpile the product to avail the reduced price, but may not make any additional selling effort.

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In this offer, instead of a monetary discount the manufacturer offers free goods with the purchase of a minimum quantity. For instance, one case free on the purchase of ten cases. These ten cases usually have to be purchased at the same time, although sometimes manufacturers may consider the manufacturer because the only cost is the product being offered. For instance, consider in the above example that instead of Rs. 100/- buying allowance on ten cases, the manufacturer gives the wholesaler one case free. The manufacturer’s cost for this case is likely to be less than Rs. 100, and so he passes on a lesser percentage discount, whereas to the wholesaler, the monetary value of the offer remains the same. Manufacturers also prefer giving free goods because they can load retailers with their product, and encourage them to sell more. However, a free goods offer is not always attractive to trade, especially if the product is a slow-moving item. Here the retailer is given a discount for performing a promotional function, such as advertising the manufacturer’s products or providing greater shelf space for their display. Advertising usually involves purchase of time or space on some local media, such as newspapers, billboards, local cable television, etc. and may quite often be done by a group of retailers. If so, it is known as . For instance, retailers of a few nearby towns may advertise reduced price on the manufacturer’s product at their stores in a joint newspaper ad. Display involves in-store presentation of the product. Retailers may put up special notices announcing availability of the product, give it greater shelf space, etc. Manufacturers may have a verbal or written contract with retailers about how the advertisement of display should be done. Advertising or display allowance is typically given after the promotional task is performed, either in the form of credit towards the next purchase, or cash rebate (discussed below). A proof of performance, such as clipping or tear sheet of a newspaper ad, or photos of the special display might have to be submitted to the manufacturer to claim the discount. There are several variations to how advertising and display allowances are executed. However, the prime objective is to encourage retailers to actively promote the product, either in media or in their stores. Such allowances help in gaining retailer support and countering competitive promotional activities. It is a discount given to a retailer in the form of cash after a certain agreed upon task is performed by him. Rebates can be given for advertising or in-store display as discussed above, for displaying a manufacturer’s entire product line, for stocking the product, for executing a sampling programme, etc. Proofs of performance may be called upon by the manufacturer before payment. The biggest advantage of cash rebates is that retailers must perform before receiving payment. However, if the task to be performed requires a sizeable investment or is spread over a long period of time, retailers may urge manufacturers to give the rebate in advance, or half-way through performance. These are one-time fees that retailers charge for introducing a new product, new have to incur a considerable expense in incorporating it into their merchandise. They have to make room for the product in their warehouse, build it into their inventory systems, provide a room or “slot” for it on the display shelves, and reprogramme their computers or cash registers. Given that and effort in carrying out these tasks. Thus powerful, large retailers often charge slotting fees to manufacturers to cover their administrative costs. According to retailers, these fees help allocate

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fees are typically waived off by small retailers, for big name brands, or for products that have a huge consumer pull. An alternative to slotting fees are failure fees that are popular in developed retail markets abroad. Manufacturers have to pay these fees if their products do not succeed at retail and have to be removed from store shelves because of poor sales. Thus, these fees compel marketers to introduce only those Manufacturers often provide big retailers with point-of-purchase (POP) material etc. to attractively display and store their products. For instance, cold drink manufacturers such as Coca-Cola and Pepsi provide branded glass refrigerators for product storage and display, ice cream manufacturers such as Havmor and Vadilal offer branded refrigerators, Amul provides refrigerators for stocking and displaying its product range, Cadbury’s offers glass displays for prominent placement near cash registers, Airtel has advertising stands with mobile charging facility at its stores and airports, etc. In addition to such regular displays, there are several limited time displays offered by brands, such as exclusive attractive displays by Fair & Lovely when it introduces a new variant. POPs are generally used to launch a new product or increase sales during festive times. They provide sales support to a retailer. Custom POP material helps in catching a consumer’s eye at the the difference between a sale or not. When displays stocking a product are located at prominent places such as store entrances, checkout counters, or end of aisles, they are in a competition-free environment and may spur impulse purchases. While POPs do help retailers in increasing sales of the promoted product, they may still face retailer resistance because a retailer has to make space available for the display. Besides, quite often they do not increase the total sale of the retailer as consumers danglers or displays given to retailers are taken off just a few hours after setting them up. Or that a retailer is stocking competitive products in a manufacturer’s branded refrigerator or dispenser. stores. Manufacturers agree to reimburse part of full of the coupon discount to the retailers. They coupons may be distributed by retailers through local newspapers, door-to-door distribution, instore distribution (especially when coupons are valid on next purchase), etc. The biggest advantage of these coupons to a manufacturer is the assurance that the discount offered to retailers is passed on to consumers. Moreover, it is paid only on actual sales, although there might be misredemption by retailers. In unusual cases, manufacturers may ask for scanner data or accompanying billing information along with coupon redemptions before making payments. Trade coupons help retailers from competitors. Many retailers eliminate the need for presenting coupons and give a straight not help differentiate between price sensitive and insensitive customers. Also, manufacturers have keep track of how many units were purchased.

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Although it is not strictly a form of trade allowance, installment purchase is still a kind of discount given to the trade channel for purchasing a manufacturer’s product. A trade member can purchase costly products at a point in time, but the payment can be made in trade member’s purchase by charging a zero interest rate on the installments. Also called , installment purchases are typically allowed on high-priced, slow-moving or seasonal items such as specialized appliances. Dating helps a manufacturer in ensuring sales and saving on warehousing This is a promotion to motivate salespeople at the retail level to endorse the manufacturer’s product. The promotion is announced to the retailers in advance, whereby, if a retailer’s salesperson is found recommending the manufacturer’s product during a visit by the manufacturer’s representative, he can win a prize. The manufacturer’s representative is usually an actor hired for mystery shopping, or a sales person in disguise. The objective of this promotion is to encourage retail sales force to familiarize themselves with the manufacturer’s product and then promote it to consumers. It is particularly useful for products such as electronics or home appliances

are disapproved by many retailers who think that the credibility of their sales force would be affected them over a wide distribution network. Manufacturers sometimes run contests for the trade force where they are required to perform certain tasks to win a prize. Prizes can be given for the best display, highest sales during a period, best sampling execution, etc. The mystery shopper programme can also be designed in the form of a contest where the retailers that offer the best endorsement to consumers or answer brand-related questions correctly win a prize. Alternatively, manufacturers may run a lucky draw scheme where all trade members can participate for winning a prize. Contests and sweepstakes are a way to build better relationships with trade channels and seek their participation in performing promotional tasks. Prizes are quite attractive such as a trip to a foreign location, gold coins, etc. These are free gifts given to the trade, usually on a certain minimum purchase. For instance, Pidilite used to offer gifts like buckets and utensils to its hardware retailers that displayed its products worth a certain minimal value for at least a month. While premiums may compel wholesalers or retailers to purchase in bulk, they may not necessarily sell more of the product, but indulge in only forward buying. However, a loaded trade force is more averse to accepting competitive products, and hence premiums can be used strategically by marketers. Manufacturers of high-value and specialized products such as washing machines, home theatre systems, etc. may sometimes offer training and sales literature to the trade force to market their products. In yet another attempt at building trade relations, manufacturers of high-value and specialized products such as eye examination equipment, civil work supplies, etc. sponsor dealer meets at exotic locations. The meets feature meetings, training, awards for exceptional performance, games, etc. with a lot of sightseeing and tourism features thrown in. All travel expenses are usually taken care of by the manufacturer.

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Manufacturers sometimes sponsor their star retailers for participating in trade shows on their behalf. They also provide them with the necessary display material, sales aid tools, free samples, etc.

11.4.3 Sales Force Promotion Tools Sales force promotions are directed towards a company’s internal sales force to encourage them to push for higher sales, increase distribution, promote new or seasonal products, train them in sales skills, and build their morale and enthusiasm. Following are the popular sales promotion tools. In most companies sales meetings are a regular affair where sales people from one or more territories get together. In these meets, sales targets are assigned to individual sales people, performances are reviewed and rewarded, education on new products is imparted, etc. Quite often these sales meets are organized at fun locations so that business and pleasure can be a part of the mix. Prizes, food, games, casual interaction with senior management, etc. are quite an attraction for the sales force. A motivated and well-disposed sales force is then better prepared for the selling effort. most useful to sales people in enhancing their sales performance. Some companies also have house journals that report about company programmes, new products, research activities, new polices, practitioners. Contests challenge the sales force for a better performance. Lucrative rewards can be given to star performers for getting the most number of bookings, securing the highest number of new resellers, selling the maximum quantity of a new product, signing up maximum resellers for a display promotion, etc. Rewards may be further publicized during a company’s annual event where even employees’ families are invited, or by acknowledging winners in in-house journals.

are often in the form of a cash bonus or commission. Companies sometimes allocate promotional allowance and authorize their key sales people to run special schemes in their territories. With the allowance, sales people can advertise locally, run special offers for select resellers, prepare their customized POPs, etc. Sales people are in the best know of their territories and hence local promotional offers designed by them are the most appropriate for their particular market.

11.5 PLANNING A SALES PROMOTION PROGRAMME Like any other marketing communication activity, sales promotion needs to be planned thoroughly sole purpose of altering sales in the short-run, but marketers should make sales promotion a part of an integrated marketing plan and use it in conjunction with other tools such that it is not seen as a standalone price-off offer.

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11.5.1 Using Sales Promotion as a Strategic/IMC Tool Since sales promotion has the magical ability to affect behaviour in the short run, most promotions are used for quick results alone. However, a prudent manager must pay attention to the long-term impact of promotions on the value of a brand. Sales promotion that is in sync with the overall longterm marketing and communications strategies of a brand is said to be used strategically. Communications managers should understand how the sales promotion strategy relates to the overall marketing communications strategy and should synthesize promotion with other types of marketing communication. For example, trade promotions can push a newly introduced product through the channels while advertising creates consumer pull; sales promotion can create valuable databases that can be exploited for direct marketing; etc. In an empirical study of 28 toilet soap promotions, it was revealed that unless the brand to be promoted is in the consideration set of the consumer, sales promotion by itself is unlikely to have any major impact.21 Thus, managers need to invest into brand building exercise so that their brands appear in the consideration set of the target consumers, before embarking on the behavioural objectives of sales promotion. It has also been found through several studies that sales promotions that are advertised in mass media receive better response from consumers and trade than those that are not. Thus, in a strategic plan, sales promotion is never planned in isolation. Following are some ways in which sales promotion can have a long-term impact on sales or have a residual value for the brand. These must be kept in mind while establishing objectives and evaluating a promotions programme. ∑ Sales promotion as a brand builder: Contrary to the criticism that sales promotion shrinks brand equity, strategically used sales promotion can actually help enhance brand franchise. For instance, some years back Horlicks had run a contest that involved matching statements on why different types of consumers preferred the brand. The contest reinforced its brand values, and was in sync with the positioning and personality of the brand. Besides the thrill of the contest, this kind of sales promotion is also helpful in reassuring the consumers about their choice of the brand and can prevent consumers from switching over to a competing brand. Similarly, sampling can convince target audiences of a brand’s merits and lead to attitude change, thereby winning long-term customers for a brand. Sometimes even high-value coupons or refunds can make consumers try a brand they have never tried before, and if convinced of the brand’s value, these consumers can stick with it for long. Continuity programmes too can help retain consumers’ loyalty for a longer period and prevent them from frequent switching. Brand managers can make every promotion work for both sales and communication jobs. A promotion is also one of brand’s many expressions and it can build brand awareness and preference if it says the right thing, as discussed in the chapter-end case on Havmor. ∑ Sales promotion to introduce a new product: Although advertising plays a larger role towards awareness creation and attitude formation, sales promotion can also be used in conjunction to make new product launch easier and more effective. For instance, advertising can make people aware about the ‘goodness’ of a herbal toothpaste but people may be unsure about the taste or unwilling to break their habitual behaviour of buying a particular brand. In this case, sales promotion can come to the rescue. Product samples can be distributed to allow people to try the toothpaste without having to pay for it, a reduced introductory price can be offered,

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or a free sample can be given as a premium with another oral care brand of the company. This would ensure that the product reaches consumers’ homes at least once. From then on, it will sail or sink depending on its product quality and price-value balance. If consumers are convinced of the value, they will demand the product in their frequented retail outlets and create a ‘pull’ for the product. Similarly, along with creating product awareness, it is also necessary to ensure that retailers stock the product and make it available. An initial ‘push’ might be necessary to induce retailers to carry the toothpaste in an overcrowded product category. While trade and consumer advertising can convince retailers that the product has the potential of moving off the shelves, trade sales promotions like point-of-purchase displays, advertising allowances or price discounts can help gain the scarce-to-come-by shelf space. ∑ Sales promotion as a habit changer: Occasionally consumers may get used to buying a larger pack size introduced during a promotional period. If that amount is easily consumed, they may continue buying larger packs even after the promotion is over. At times, people also change their behaviour because of a promotion and then stay with that brand out of inertia. Thus, long-term value is created because consumers continue to buy the product without further promotion. ∑ Sales promotion as a long-term brand reminder: Sales promotions can remind a consumer about a brand even after the promotion is over. For instance, an attractive premium with a brand’s logo and message will serve as a brand reminder in an uncluttered, uncompetitive environment. Similarly, prizes won by consumers during a brand contest or sweepstakes will also serve as reminders. They are also likely to result in improved customer feeling about the brand. A product that came free to a consumer after a refund is also likely to get talked about by ‘savvy’ consumers. These consumers are also likely to develop positive feelings for their smart purchase. ∑ Sales promotion as a marketing tool: Promotions often perform small marketing tasks, which turn sensitivity of different groups of buyers by sending out coupons with different price values to different groups. Price insensitive consumers often keep purchasing a brand without a coupon even during the promotional period. Some tools of sales promotion can even help build a database by collecting customers’ demographic or other details. For example, mail-in coupons or contest forms may require consumers to submit their name, address, etc. This database information is very useful for practicing direct marketing. ∑ Nipping competitors in the bud: Although using sales promotion to react to competitive threats is a tactical move, sometimes it can have a long-term impact on a brand’s business. For instance, when a new formidable competitor arrives in the market, companies often use sales promotions to take their consumers off the market or give them better deals. They even use up retailing space and resources to serve their own products. In such a scenario, a competitor that does not have deep pockets or who cannot withstand a long payout period is forced to withdraw from the market for good. ∑ Curtailing adverse effects of sales promotions: Limit sales promotions only to the times when they are having the need for stock clearance) is not a good reason to offer a promotion. If a brand is

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always on deal, consumers may wonder what is wrong with it. Limiting sales promotion also ensures that consumers do not rush towards the brand only when a promotion is announced. Besides, sometimes consumers can be made to pay for a promotion to understand its value. For instance, the retailer Shoppers’ Stop, which has 2.6 million members attached to its ‘First Citizen’ loyalty programme, charges a marginal fee to the customer to own a loyalty card. This gives the consumer a choice to own or not own a card, and ensures that they use it to get the best return on their initial investment.22 Following are the steps in planning and executing a sales promotion programme.

11.5.1.1 Determine the objectives to evaluate a promotion, a company may end up wasting money in promotional marketing. As we have seen in Section 11.1 and Table 11.1, there can be several objectives of sales promotion – both clear, unambiguous terms. Typical objectives of a sales promotion campaign could be: To increase sales of brand A by 20% during the festive months of Oct-Nov To get product acceptance among 10% of retailers in region A within a month of product launch To get 25% of target audience to try the newly launched brand within a month of product launch.

11.5.1.2 Set the budget Although a budget is best arrived at after a communication plan is framed, often marketers have determine how much funds an organization can spare for a campaign. Typically, funds are allocated out of a larger IMC budget to various marketing communication tools, sales promotion being one allocating budget among various IMC tools is discussed in detail in Chapter 18.

11.5.1.3 Choose the target audiences

sales promotion manager may want to target? Since sales promotion is a behaviour-impacting tool, its target audiences are typically categorized by their buying behaviours. For instance, Jet Airways travel plans.23

24

a.

These are consumers who usually, but not necessarily always, buy a particular brand on a consistent basis. With increasing competition, product parity and marketing by or less loyal to a brand due to several reasons – they truly believe that their preferred brand

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is the best, they may be buying that brand out of habit, their brand may be the only one understand the reasons for the loyalty of their consumers and then take measures to reinforce their behaviour. Otherwise, even the most loyal of consumers can be won over by competition with a change in price, a successful marketing campaign, the breaking of a habit, etc. b. These are consumers who use a marketer’s product category, but usually buy a particular competing brand. Again, these consumers may be loyal to a competitor’s brand for the same reasons as brand loyals – they may believe it is the best brand, they may be looking for a unique feature, they may be buying it out of habit, etc. Determining the reason for the loyalty of a competitive loyal helps in analyzing their susceptibility to a marketer’s promotional efforts. c. These consumers purchase from a variety of brands in a particular product category. Reasons for this behaviour may be many – retailers in their locality may be constantly changing their selection, their favourite product may not be readily available at retail, they may be evaluating the price/value relationship of brands on each shopping trip and selecting the best buy, they may be enjoying variety for its own sake, they may be using different brands on different occasions (such as Basmati rice when entertaining guests, Kamod for regular use, Jeerasar for preparing Khichadi each time, they are akin to brand loyals. Even among switchers, there are consumers who occasionally switch to a marketer’s product, and those who keep switching between competing

d.

These are the most price-sensitive consumers who select brands merely on the basis of price. If there is a consistent least expensive brand, they may buy that on every visit; if not they may keep switching. The reasons for their increased price sensitivity could be low incomes or budget for a particular category, large family size, little concern for differences between brands, or even heavy use of a category that might be compelling them to economize (such as students studying outside hometowns who have to eat out everyday). e. These are consumers who do not use any product in a particular product category either because they don’t need it, can’t afford it, or don’t see value in it. For instance, a teetotaler will have no use for liquor products, whereas a lower income class consumer will not be able to invest in real estate. Thus, consumers can be divided into various categories based on their purchasing behaviour. A sales promotional campaign may decide to target one or more of these categories. However, this compartmentalization is not watertight as consumers may move in and out of categories. For instance, a non-user of diapers may become a brand loyal on attaining motherhood. Moreover, what is especially important is not the behaviour of one individual, but the behaviour pattern of a user appropriate promotional programme.

11.5.1.4 Select the right promotion tools While most sales promotional tools lead to immediate results, it is important to realize that not all promotional tools work in the same way, or for all target audiences. For instance, if an organization’s

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objective is to create excitement for the brand, a contest or sweepstakes would be a better way to spend its money than through a discount offer. Similarly, some tools may be effective at changing the behaviour of one type of consumer group, but may do nothing for the other kind. Because the objective of a sales promotion programme and the type of target audience chosen have a great bearing on the promotional tool, we’ll discuss what tools work for what user groups and when. Note that the tools mentioned are only illustrative and should not be taken as an absolute guide because an appropriate selection depends on many dynamic factors. Further, we’ll restrict our current discussion to consumer user groups, but the same logic applies for trade and sales forces as well. a. When brand loyal customers are the target, sales promotion managers want to reinforce their existing purchase behaviour, increase their consumption, or get them to as they reward loyal users with each additional purchase. They also prevent loyals from being easily swayed by competitive brands. POPs are also useful in reinforcing loyalty. A good way to increase sales among loyal users is of increasing their product usage. This can be done by offering bonus or banded packs for a deal, such as an extra large packet of biscuits. Often consumers will form a habit of consuming more of that product. Even at times when they don’t consume more, such as in the case of toilet cleaners, they are taken out of the market for a while or their purchase timing is altered. Similarly, while price promotions are of limited use in reinforcing behaviour of brand loyals (in fact over use can hurt the brand image), they are useful in shifting the purchase timing. This may be a promotional goal in case of goals, etc. Premiums also enhance the perceived value of a product and make consumers feel that it is a good bargain. Coupons and bonus packs are useful to cross-sell a company’s other products. b. alone. However, how effectively they can be won over depends on their reason for being loyal to a competitive brand. When competitive loyals truly believe their brand to be the best, they are usually immune to sales promotion activities. However, in rare cases, sampling may help change this perception. Of course, the marketer’s brand will have to be truly superior in quality with perceptible product differences. On the other hand, if these consumers are buying a competitive brand out of habit, their resistance in trying other products needs to be shaken with other tools like advertising or PR. This can then be followed up with sampling efforts as the proof of the pudding is in the eating. Sometimes, attractive sweepstakes and premiums can also help in getting a habit-bound consumer to try a marketer’s product. An attractive shelf display and POP support at the retail level would go well with this strategy. c. As switchers are prone to buying a variety of brands, they are unlikely to stick to a particular brand after a promotional programme is over. Most switchers are variety seekers as they are easily bored with a single brand. Sales promotions can provide incentives that have the capacity to excite these consumers so that they purchase the marketer’s brand at least some of the times or at times desired by the marketer. Most well-designed sales promotion tools work well to attract variety seekers, albeit for a limited period. Of course, continuity programmes won’t work because variety seekers may not like being tied to a particular brand. Sampling may not work either because these consumers are not necessarily shopping for the best brand.

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Switchers who keep buying brands that appear to be the best deal at a particular time can be attracted by lowering prices with price-offs, rebates or refunds, or by increasing value with specialty packs and premiums. If consumers are switching brands because of availability issue, then the solution is primarily a distribution concern rather than a sales promotion concern. However, trade sales promotion can help lower retailer resistance in stocking products. At such times, offers like bonus packs and premiums that create logistics hassles for retailers, should be avoided. On the other hand, tools like contests and sweepstakes, sampling, or coupons may help in creating the necessary consumer pull that can compel retailers to stock the marketer’s brand. d. These consumers can be attracted through promotions that lower the price of a product, such as price discounts, refunds/rebates, coupons or deals offered by retailers. strategy of a sales promotion manager. e. Most non-users are resistant to sales promotion activities because they have no need for a particular product or have negative attitudes about the category as a whole. Hence, whether a marketer wants to create a need for a product or change attitudes, other tools of communication, such as advertising, personal selling, public relations, etc. are likely to be more effective. Some people may also be non-users because they do not see value in a particular product category. However, sampling may help them change their minds. Sampling can then be followed by a period of incentives so that they keep purchasing the product until they are habituated with it. For instance, many Indian women were happy using soaps on their faces until Dove, the moisturizing cleanser, convinced them otherwise with free samples and trials. Once they were habituated to using Dove, they found it hard to return to the soaps that were relatively harsher for their gentle facial skin.

11.5.1.5 Execute the plan Executing a sales promotion programme is often more complex than executing an advertising campaign, as a lot of logistical issues have to be worked out. For instance, if a sampling programme is to be executed at retail locations, retailers’ permissions have to be obtained, sample distribution staff has to be trained and appointed, demonstrations might need to be given at the distribution counter, etc. For a couponing programme, ads issuing coupons need to be released in newspapers, retailers need to be informed about the scheme, they need to be compensated for the coupons redeemed, misredemptions need to be tracked and accounted for, etc. If premiums are offered, they need to be sourced from a supplier and packed along with the product, retailers need to be convinced for extra shelf-space, etc. In any sales promotion programme, the following three elements need to be planned and executed: a. Offer and Creative: An offer refers to the incentive that is being given to consumers as part what incentive would have the most value for the target audience. Not all incentives that cost inspire people. For example, at a time when the prices of onions had sky-rocketed, retailers who offered a kilogram of onions free with products sold better than those offering pricereduction for the same value.

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Fair & Lovely

Fair & Lovely Cream cream for better results.

TABLE 11.3

Segment-wise incentive (outlay)/price ratio Brand

Premium

Popular

Incentive/Price

Pears

.26

Mysore Sandal

.15

Pears

.26

Mysore Sandal Gold

.60

Emami

.71

Denim

.23

Palmolive Natural

.17

Dove

.35

Nivea

.48

Dove

.51

Dettol

.89

Dettol

.57

Mysore Sandal Bath Tablet

.64

Lux

.28

Lux

.25

Cinthol International

.33

Fair & Lovely

1.00

Godrej All care

.33

Fa

.33

Savlon

.21

Cinthol Popular

.55

Medimix

.33

Imperial Leather

.17

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Economy

Ponds

.20

Ponds

.50

Breeze

.27

Lux with Honey

.38

Nirma

.50

The creative for a sales promotion programme is much like an advertising creative, only more elaborate. It has to communicate the offer or message in an appealing and straightforward manner, along with all the terms and conditions of the promotion. If it is a sweepstake or contest that is to be executed, the terms and conditions can be quite complex and may call for professional legal counsel. It is also the job of the creative to generate excitement among consumers about the offer and create a sense of urgency to prod them into action. For instance, in the Havmor case discussed at the end of the Chapter, attractive images of the bumper prizes are a key to enticing people, whereas the detailed terms and conditions of the b. Timing: Another key executional element that needs to be decided is the timing of a promotional For instance, how can a marketer decide whether the redemption period on a coupon should be two months or one year? A lot depends on the type of the product and the couponing objective. Frequently purchased products can have shorter redemption periods as opposed to infrequently purchased products. A short redemption period will also help a company limit its

usually attracts more price-sensitive consumers as opposed to regular product users. On the other hand, if the redemption time is too short, many target audience members may not have enough time to use coupons. Thus a company may miss out on an opportunity to convert people who are likely to be loyal for long. In addition to deciding the length of a promotional programme, marketers also need to decide when to run a programme. A sales promotion, whose objective is to remove loyal consumers from the market before an imminent competitive activity, will have to run some time before the competitor’s promotion such that loyal users have had an opportunity to replenish their stocks during that period. A sales promotion with the objective of clearing off inventory is usually run before an accounting period or before fresh inventory purchase. Similarly, a sales promotion programme to meet annual sales goals is run before year-end. Festival time promotions are all too common as well, but a marketer has to also take into account the number and kind of competitive promotions running during that time. c. Distribution: Marketers need to decide how to distribute information about their promotion and the incentive. For instance, coupons can be distributed through newspapers, direct mail, magazines, retail outlets, etc. While direct mail offers high selectivity in targeting desired audiences, newspapers can reach broad cross-sections of people. Distribution at the retail outlet needs retailers’ willingness for execution, but is useful in drawing attention to brands where there is lack of much product differentiation. Similarly, with specialty packs also, extra

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product or free gift can be distributed on-pack, in-pack or near-pack as discussed earlier. However, with in-packs and on-packs, retailers have to be convinced for extra shelf-space whereas near-packs may not be displayed properly or may be pilfered by retailers’ employees. In the case of sampling too, the distribution venue and method will decide what target audience will be reached. To reach teenagers, manual distribution outside college campuses works well whereas business people can be best reached with direct mail sampling. Thus, each distribution method has its advantages and costs, which have to be accounted for by the marketer.

11.5.1.6 Evaluate the campaign Although evaluation of a sales promotion campaign is discussed in greater detail in Chapter 19, some because of the paucity of time in planning and executing a campaign. Testing is sometimes done during the programme, and almost always, after the execution. Both behaviour- and communicationrelated measures need to be evaluated. Thus, sales promotion managers may measure success through behavioural measures such as number of coupons redeemed, number of participants in a contest, data collected through sweepstakes, extent of sales in discount period, repeat purchases post a bonus-pack scheme, number of customers who purchased a certain amount or quantity on their membership cards, number of trials generated or inquiries received in response to a sampling scheme, etc. Care should be taken while measuring sales levels before and after a programme, because often sales promotion can prepone or postpone sales of a period. Thus, the net result of a promotion may be nil, because people stocked up during the promotional quarter, which affected their purchases later. This may be acceptable if the objective is purely to shift the purchase timing of consumers to distract them from a competitive promotion. The message, source and media elements of sales promotion such as copy, visuals, endorser, delivery tools, etc. can be tested to evaluate their impact on recognition, recall, comprehension, attitude and brand preference, etc. An additional parameter, which is popularly tested in sales promotion, is the perceived value of an offer, as discussed in Chapter 19. Evaluation of a campaign should also be value of a sales promotion campaign can be gauged by measures such as brand awareness, return on investment, incremental sales, response rates, redemption rates, media impressions, retention rates, trade sell-in, etc.

Summary Sales promotion is a marketing and communications activity that changes the price-value relationship of a product or service perceived by the target, thereby (a) generating immediate sales, and (b) altering long-term brand value. Thus, it can be used both as a strategic and tactical tool. The share of sales promotion in the communication mix of organizations has increased due to several reasons such as increasing product parity, rising competitive pressures, consumer expectations, desire for quick bottom-line results, surge in the size and power of retailers, etc. Sales promotion is advantageous because it stimulates people to act immediately, its results are measurable, it can help in gaining channel support for a product, and it is relatively easy to design and implement. However, excessive use of sales promotion only for short-term results can erode the brand equity of a product as well as an organization’s bottom lines.

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Sales promotion strategies can be pull or push, depending on whether they are directed at the end consumer or at the channel members respectively. Often, an organization’s own sales force is also the target of a sales promotion campaign. Several sales promotion tools such as price discounts, coupons, specialty packs, premiums, contests and sweepstakes, refunds, etc. are used for passing on incentives to consumers. While some of these tools are also used for trade channels, different kinds of trade allowances that encourage resellers to stock more, display a product prominently, etc. are more popular. Sales force promotions encourage sales representatives to push for higher sales, increase distribution, promote new or seasonal products, etc. Each tool has its advantages and disadvantages, and not all tools are appropriate for a given situation. Hence, a sales promotion plan that sets the right objectives, uses the appropriate tools, and reaches the right target audience is of vital importance.

Exercise 1. Give real-life instances of why the importance of sales promotion has increased in organizations. 2. Do you think that mobile couponing as a sales promotion tool will pick up in India? Why or why not? 3. Refer the Case in Point on McDonald’s. Do you think its sales promotion technique is easy to replicate for competitors? Give reasons for your answer. What challenges do you see with this kind of promotion? Find out if there have been any problems in executing the promotions worldwide. 4. Why is trade promotion becoming popular? Find out what percentages of their promotional allowances some organizations use for promoting to the trade.

Suggested Class Projects 1. Take a product of your choice. Identify a problem with it that requires a sales promotion solution. Prepare a detailed plan of executing the campaign, stating the objectives, possible budget, target audiences chosen, sales promotion tools used, and methods of evaluation. 2. Visit an organization of your choice and interview its marketing communication manager to learn about the various sales promotion campaigns they have planned and executed. Find out their objectives, audiences they targeted, tools they used, and the results. Present a summary of the same before your class.

Critical Thinking Questions 1. No matter what academicians say, sales promotion cannot positively affect a brand in a strategic way. Agree or disagree. 2. As consumers and trade forces become savvier, they will constantly keep switching between marketers. Give your opinion.

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CASE STUDY HAV MOR FUNN WITH ICE CREAMS26 Havmor Group of Companies Headquartered in Ahmedabad, Western India’s blue-chip ice cream brand Havmor owns 35% market share in Gujarat, with a rapidly growing presence in Rajasthan, Maharashtra and Madhya Pradesh. Today it has over 100 company owned and franchised outlets, more than 25,000 dealers across the four states, and lakhs of customers, making it one of the highest selling ice cream brands around with a turnover in excess of Rs. 260 crores and a manufacturing capacity of two lakh litres of ice cream per day. However, fortune hadn’t served prosperity to the company on a silver platter; in fact Havmor’s beginnings had been quite humble. Founded by Mr. Satish Chona in 1944 in Karachi, undivided India, Havmor ice cream had become a popular local brand there. But in the wake of the partition in 1947, Ahmedabad. From then on, what began as a venture on a handcart at the Ahmedabad railway station, slowly and steadily grew into a serious ice cream business. In the last ten years itself, the company has seen a ten-fold increase in its turnover. Spearheaded by the second and third generations of Chonas, Mr. Pradeep and Mr. Ankit Chona, Havmor having a presence in restaurant and catering business as well. The company operates several multicuisine Havmor restaurants, HavFunn eatery parlours serving snacks and ice creams, and HavFunn ice cream parlours. It is all set to cover the whole of India by 2015. The company has also been acknowledged as one of the ‘Power Brands of India’ by Rising Stars, 2012-13, and has been awarded for being one of the fastest growing companies of India. Havmor has a range of products for all ages, demographics and occasions, ranging from cups and candies to tubs and sundaes, and sugarless ice creams. The company has always worked on the simple principles of ‘Achchai, Sachchai, Safai,’ (Goodness, Truthfulness, Cleanliness), and its commitment to hygiene and purity can be perceived through its premium products and state-of-the-art machinery used for their making. Its more than 160 ice creams are made from fresh milk, cream, and the purest of ingredients. They are totally vegetarian, and the company does not make any frozen desserts, which Havmor has literally been a neologism for ‘Have More’, which means that the customer gets more value for his money and more taste to relish from his ice creams, which is why he does not mind paying a little extra for the brand’s superior quality. Havmor has continuously been at the forefront of innovation, Havmor has always had something new

The Indian Ice Cream Industry: An Overview27 The lucrative nature of business, rise of buyers in the impulse segment, strengthening of distribution networks, increase in disposable incomes, and low per capita consumption of ice creams in India (300 ml), have poised the Indian ice cream industry for immense growth in the coming years. India’s ice-cream market, estimated at Rs. 2,500 crores in 2012, is growing at an annual rate of 18%. Of this, about Rs. 1,500 crores is controlled by organized players like Amul that is the market leader with annual ice cream sales close to Rs. 400 crores, and Vadilal, which comes second with Rs. 300 crores of revenues. While Amul’s share has come down from 38% in 2007, Vadilal’s has grown from the 12%

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in 2007. Both these players are based out of Gujarat, and are undertaking several initiatives to pump up their manufacturing capacity, distribution network, and marketing. low quality ingredients. Small capital requirements make it easy for these players to prosper. Besides, to 50%. The ice cream industry has been quite active of late posting several new trends such as the rise in frozen yoghurt, creation of exclusive stores, entry of eatery players, surge of promotional offers, alternative products such as frozen desserts and gelatos, and introduction of new variants. Innovative products and promotional offers are helping to somewhat even out the seasonal nature of the industry, which peaks from April to June and dips from November to February, with as much Havmor is still a force to reckon with in Western India. In Gujarat, it comes a close second to Amul, which has a share of 42% owing to its wide distribution network. And Havmor is growing at a rate of 25-30%, which is about one and a half times the national average to meet its target turnover of Rs. 550 crores by 2017. Moreover, the Chonas have set off a series of changes at the company in technology, quality and hygiene standards, management, HRD, and the overall corporate environment. This reengineering has been complemented by capacity in competitive times. The company will be manufacturing over three crore litres of ice cream in growth path, Havmor is refraining from expanding at the cost of quality, which is why it can boast of a loyal following of customers that vouch by its superior taste and ingredients over regional and national competitors.

Promotions at Havmor Print and outdoor advertising have been Havmor’s staple media for marketing communication. promotions, Havmor has liberally resorted to using print and outdoor. Its public relations department also has been proactive in communicating with the media, employees and consumers alike. Moreover, from time to time the company has been actively offering incentives on its products, such as priceoffs, combination and bonus packs, novelty packs, free sampling at its parlours, etc. One of the oldest and most prominent of Havmor’s promotions is the Dhanteras free container scheme that it has been offering for more than 30 years. What began as a favour to a trader, who pleaded to Mr. Satish Chona to purchase 500 boxes, has become of the longest-run ice cream schemes that is ardently awaited by customers each year and envied by competitors. In a bid to give back to its consumers once a year on the auspicious day of Dhanteras, which is also the company’s birthday, Havmor buys these containers in bulk and includes them in the cost of the ice cream, many a time losing money on the scheme. Yet, it continues with the tradition, year after year. The consumer response is phenomenal. There are long queues at Havmor parlours to avail of the promotion, and quite often the boxes are sold within 2-3 hours of launch. Many a competitor has tried aping this promotion by offering their own containers, sometimes even 10 days ahead of Dhanteras. However, Havmor’s containers, ice creams, and value-for-money pricing, combined with the auspicious timing of Dhanteras (during Diwali) have given the competitors a hard time, compelling them to discontinue their promotions.

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Havmor’s Mera Flavour Contest Among the recent promotions that have received phenomenal response is Havmor’s Mera Flavour Contest that the company has resolved to run every alternate year. In view of the fact that millions of loyal consumers look forward to Havmor’s do things a lit more interestingly and differently. With the tagline, “Aap bataye, hum banaye,” it launched a contest urging the brand’s patrons to “think Havmor held in Ahmedabad in 2010, the latest contest ran in August-September 2012. It was operational Havmor’s menu. The company has offered a Honda Brio car as the grand prize for the contest, whereas the second and third prizes have been an HP Ultrabook laptop and a Blue Star air conditioner respectively, in addition in the Annexure. The contest ran from the 23rd of August to the 10th of September 2012 at all HavFunn outlets days were reserved for promotion of the contest, and shortlisting, manufacturing and sampling of Table 11.4 available at Havmor HavFunn outlets, by logging on to a dedicated website for the contest (www.

available for free sampling at all HavFunn outlets. Consumers sampling the ice cream were asked to

Havmor’s restaurants, and prizes were given in the presence of the press. TABLE 11.4

Event Calendar for the Contest

23rd–24th Aug

Radio Mirchi teaser campaign

25th–30th Aug

Flavour suggestion by consumers

31st Aug–3rd Sep

Making and shortlisting of flavours by the company

4th–5th Sep

Transporting selected five flavours to all HavFunn outlets

6th–8th Sep

Public voting

9th Sep

Vote counting

10th Sep

Press conference to announce results and launch winning flavours

Havmor had meticulously planned the execution of the campaign. The company struck a partnership with Radio Mirchi to run a teaser campaign to announce the return of the contest. Outdoor hoardings (Figure 11.7) were put up at several strategic locations and print ads were given in popular dailies to advance of the contest. The marketing person at each outlet was briefed with lectures and brochures

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FIGURE 11.7

Havmor’s Contest Announcement

to organize the contest, and dealers and franchisees were duly motivated to make the contest a success.

for the ice creams was paid particular attention to. For instance, for a coffee ice cream, the recipe was tried with different brands of coffee and the best-tasting one was chosen for the making. Similarly, the sample for a particular ingredient was specially ordered from Germany by air. 1200 to 1500 four-litre bulks and pink spoons for tasting were sent from the factory to the outlets two days before

by the company, was between Rs. 50 and 60 lakh, plus the cost of the ice creams. Out of this, the partnership with Radio Mirchi was negotiated at Rs. 15 lakh. The contest turned out to be a win-win proposition for both – the company and its consumers. HavFunn outlets and bought tons of ice cream. A lakh and odd visited the outlets to sample free

by the media has further boosted brand recognition. Havmor also ended up building a huge database of loyal consumers, whom it keeps informed about upcoming promotions through emails and SMSes. The logo of the contest has been registered as a trademark as the company intends to run the contest every alternate year.

Questions 1. Evaluate the strategic and tactical value of Havmor’s Mera Flavour Contest.

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2. Review the current competitive scenario facing Havmor, supplementing facts of the case with your own research. Do you think competition would be able to emulate the contest? as it does with Havmor? 3. What were the objectives for Havmor’s contest? Who was the target audience? What kind How would you evaluate the success of the promotion? 4. Suggest other sales promotion tools that the company could use in future, giving reasons for your suggestions.

Annexure TERMS & CONDITIONS FOR THE CONTEST Minors participating in the contest need to have consent of their guardians. All participants will have to provide identity proof on demand. The Company reserves the rights to terminate the contest without assigning any reasons or to alter the terms and conditions. All disputes are under the jurisdiction of Ahmedabad city. The content of the contest belongs to Havmor and cannot be used by anyone without prior written permission. The suggestions received by Havmor will become the property of Havmor. Havmor reserves the right to use it in any form. Havmor is not responsible for any force majeure, which may hamper, delay or affect the contest. Radio Mirchi is only a communication partner in this contest. All the Prizes are subject to availability. No selection is allowed. In case of more than one winner, prizes will be decided by draw of lots. All the prizes will be given to the prize winner (after scrutinizing identity proof) as per the rules and no cash reward will be given in exchange of any prizes. TDS, VAT, RTO, insurance, transport, Govt. levies etc. if any will be borne by the winner only. Company is not responsible for the defect or non-functioning of any prizes. The Company reserves the right to withdraw this contest at any time without assigning any reasons. The Company reserves the right to use the photograph of winners of this event in any form whatsoever on their product packaging.

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Endnotes www.hoovers.com 2. Subhash Mohanti, “Sales promotion, a powerful marketing tool,” The Economic Times, June 15, 2003 3. AdEx Analysis, www.exchange4media.com 5. “Consumers receive $4.6 Billion Coupon Savings in 2011,” JPS Coupon Trend Reports, www.santella. com 6. Subhash Mohanti, “Sales promotion, a powerful marketing tool,” The Economic Times, June 15, 2003 7. Sales Promotion Essentials, Don E. Schultz, William A. Robinson, Lisa A. Petrison, third edition, pp. 7 8. “Festive Marketing: The Mad World of Festive Marketing,” Pitch, Sep 3, 2009 9. “NCH Annual Coupon Facts Report, 2012”, NCH Marketing Services, Inc. 10. “Press Release: Mobile Coupon Redemption Rates to Reach 8% Globally by 2016 as North American www.juniperresearch.com 11. Subhash Mohanti, “Sales promotion, a powerful marketing tool,” The Economic Times, June 15, 2003 12. www.wikipedia.org; Domenick Celentano, “McDonalds Happy Meals – Kids Like the Toys... Moms Like the other Options,” www.foodbeverage.about.com; “Nickelodeon & McDonald’s launch the SpongeBob SquarePants Happy Meal in India,” Apr 4, 2012, www.afaqs.com; Suraj Ramnath, “Nickelodeon & McDonald’s bring back SpongeBob Happy Meal,” Apr 6, 2012, www.exchange4media.com; Rahul Sharma, “Do toys in meal combos lead to marketing malpractices?,” Dec 22, 2010, www.tehelka.com 13. “The rewards of loyalty,” The Strategist, Business Standard, Oct 22, 2012 14. “The rewards of loyalty,” The Strategist, Business Standard, Oct 22, 2012 15. “The rewards of loyalty,” The Strategist, Business Standard, Oct 22, 2012 16. www.britannia.co.in; Chandan Dubey, “Britannia to score 20% jump in sales through cricket promos,” The Financial Express, May 7, 2000; Britannia campaign hopes to cash in on World Cup fever, The Hindu Business Line, Oct 8, 2002; Mohini Bhatnagar, “Cashing in on cricket,” Dec 21, 2002, www.domain-b. com; Ratna Bhushan, “Britannia gains most from World Cup promos,” The Hindu Business Line, Apr 16, 2003; Astha Bansal, “Case Review: Britannia Khao, World Cup Jao,” www.scribd.com 17. “Product Sampling Boosts Awareness, Sales, Purchase Propensity – ASAP,” Arbitron, Sep 30, 2008, www.marketingcharts.com 18. Abbot. C. Martin, “Two Could Be Mightier- Than Just One in Promotions”, Advertising Age, 1980, 51 (May 5), S-21, S-23 19. Sonal Kureshi, Dr. Preeta Vyas, “Joint Sales Promotion: Prospects & Issues,” 2001, www.iimahd.ernet. in 20. “HCL casts a new show in DT Cinemas for students,” Pitch, June 14, 2012 21. Sonal Kureshi, Preeta Vyas, “An Exploratory Study of Sales Promotion Activities in Toilet Soap Category: An Insight into Consumer and Retailer Perceptions,” www.iimahd.ernet.in 22. “The rewards of loyalty,” The Strategist, Business Standard, Oct 22, 2012 23. “The rewards of loyalty,” The Strategist, Business Standard, Oct 22, 2012 24. Don E. Schultz, William A. Robinson, Lisa A. Petrison, “Sales Promotion Essentials,” 3rd edition, NTC/ Contemporary Publishing Group, 1998 25. Sonal Kureshi, Preeta Vyas, “An Exploratory Study of Sales Promotion Activities in Toilet Soap Category: An Insight into Consumer and Retailer Perceptions,” www.iimahd.ernet.in 26. Based on a personal interview with Mr. Pradeep Chona and the marketing team at Havmor 27. Rutam Vora & Kalpesh Damor, “India’s No.2 ice cream maker heads north,” Business Standard, May 30, 2012; www.marketresearchreports.in; “KIT: Ice-Cream Market in India,” Business Standard, Jan 9, 2012; Ankur Parikh, “Recession will not melt ice cream sales,” DNA, April 6, 2009; “Havmor goes slow on overseas expansion plans,” Business Standard, Mar 16, 2011

Chapter 12 Direct Marketing Chapter Objectives

In Perspective

After reading this chapter, you will be able to: Understand direct marketing, differentiate it from mass marketing, and choose the right product categories for direct marketing Comprehend the elements of direct marketing Learn about the various types of direct marketing media Appreciate ethical principles in direct marketing

Marketing EssetPro Knowledge Initiatives (KI) is an organization that conducts an objective-type, multiple-choice test for school students, called ESSET (Evaluation of Scholastic Skills through Educational Testing). ESSET is a diagnostic skill-based test designed by EI for students of classes 3–9 that helps parents, schools and

from the school curriculum, and are able to apply in practice. After the test, students are provided with feedback about their strengths and weaknesses. Currently conducted in English, for 3 subjects (English, Math and Science), the test was taken by more than 50,000 students from 300+ schools all over India in 2012. In 2013, In response to the growing “What after ESSET?” question from parents and schools, the EI team put together EssetPro. It is a self-learning programme aimed to help children acquire the skills underlying ESSET. It is a collection of activities, worksheets, manipulatives and games in the form of subscription-based skill development kits for children of classes 3 to 9. The kits address common errors and weaknesses in the three subjects of English, Mathematics and Science. At the moment, EssetPro is being with understanding, through a series of activities that force the child to think and apply home. AssetPlus is currently priced in a “subscription” mode at an introductory price of

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The kits are marketed through a direct-marketing initiative. Presentations are made at schools that have taken the ESSET test and the EssetPro brochure is distributed selectively to school management and students. A letter to parents and a subscription form are also sent along with the ESSET test scores. As of end 2012, close to 550 students have subscribed to EssetPro. The only effort made to promote it so far was through a direct mail brochure that was sent to students via their respective schools. Of the 20,000 brochures distributed to schools in March 2004, only about 50% actually reached the students. The rest were handed out to school management and such other intermediaries. The effective response rate is thus 400/10,000, or 4%, which is quite high for direct mail, but not very satisfactory, looking at the potential of EssetPro. This indicates that the latent demand for EssetPro is very high, but the distribution needs to be strengthened. The management is planning to reach the 2,000 subscription mark in 2013 by a) making more presentations to schools and parents, b) sending direct emails to ESSET students, c) offering prizes to subscribers who rope in contacts and d) enhancing its website.

The opening vignette brings to light the challenges and dynamics of direct marketing, a popular tool of marketing communication. In this chapter, we shall discuss about the tools and techniques of direct marketing that can help marketers of select products.

12.1 AN INTRODUCTION TO DIRECT MARKETING The decade old organized direct selling industry in India has come around from nowhere to clock a turnover of Rs. 4,120 crore in 2010–11, selling various products from plastics to nutrients. Further, the direct selling business in India is expected to reach a size of Rs. 10,843 crore by 2014–15 on the back of increased consumer spending, according to a report by the Indian Direct Selling Association (IDSA). Exclusive direct selling brands like Amway, Herbalife, Tupperware, etc. are riding the wave and base of the direct selling business in India in 2010–11 was 39.62 lakh people.1 While this growth has been driven by a monstrous demand for health, nutrition and lifestyle products, it is projected that the direct marketing of services will be the next big growth area.2 According to the Direct Marketing Association of USA, direct marketing “is an interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location.”3 advertising media to produce an inquiry, a transaction or some other immediate response. Here the marketer and the prospect interact directly, without the presence of any intermediary. Direct mail, of direct marketing. While the objective of mass advertising is to build brand awareness or to generate sales eventually, direct marketing aims to sell in the present. Exigency is the one of the key differentiators. Direct marketing hence focuses more on offers than on products alone and uses deadlines to prompt speedy responses. Direct marketing thus has both communication and behavioural objectives, i.e. to promote

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a product and to lead consumers to purchase it as well. Some of the salient characteristics of direct marketing are as follows: ∑ Interactive: building. ∑ Response-mechanism: Direct marketing always provides a way for consumers to respond

∑ Direct channel: on an intermediary. In other words, it is direct – without the involvement of channel members. Location is not an issue. Usually orders are placed in person, over the net, via mail or on telephone, and delivery is direct to the consumer’s home. ∑ Database: Direct marketing targets prospects on the basis of a database – a storehouse of prospect/customer information. A database is at the heart of direct marketing. It has details like name, address and other contact information, geographic and demographic details and type format. Information can be collected from internal or external sources and directly or to an offer, other company lists, etc. are all sources of data. On the basis of a database, a direct marketer can understand consumers better, target viable prospects, service customers, personalize offers, etc. It also serves as a vehicle for recording, storing, and measuring results of advertising or purchase performances. A lot of valuable analysis can be done on the basis of the information recorded. Databases are hence, as powerful as the information they

12.1.1 Strengths and Weaknesses of Direct Marketing Among the many strengths of direct marketing are: ∑ Quicker sales: Since a lot of distribution intermediaries are bypassed, sales can be made faster than through traditional channels. ∑ Better targeting: It allows segmenting and targeting customers based on a database. A psychographic, lifestyle and behavioral variables. Distribution is hence more controlled and resources are better utilized. ∑ Tailored messages: When greater prospect information is available, it is possible to personalize certain message elements in order to enhance effectiveness. ∑ Measurable response: One of the prime advantages of direct marketing is its ability to measure response. A direct marketer can send communications to a measurable number of prospects in the database and also determine the number of sale conversions on the basis of orders placed. This allows her to calculate the costs of producing a response and the resulting income and expense calculations. In a mass advertising campaign, marketers never know how many prospects actually consumed their advertisement.

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∑ Relationship building: Since marketers have a direct and personal contact with individual customers, the opportunities for relationship building are naturally aplenty. ∑ lost in the channel. However, as against this advantage, they also need to bear in mind what distribution contributes to their product. A distribution channel allows consumers to see the product, feel it, compare it with competitors, ask questions, switch to an alternate item, trade up or down, come back the next day, get reassured, get a guarantee, or return the product. ∑ Predictable investment and return: Direct marketing products are usually manufactured based on an order. Hence, investment and returns are more predictable and less left to gamble. For example, Dell ∑ Less competition: Direct marketing competes only with other messages in the mail, calls from other sales agents, or other companies advertising directly. This number is much smaller than that of mass media advertisements. There is less clutter than on television, radio, or in print. ∑ Aide in market research: Direct marketing vehicles can also be used for market research. Questionnaires can be enclosed in direct mails or delivered in person and attractive prizes offered for responses. Even without undertaking a formal market research study, marketers can get a lot of information about customers by just interacting with them personally. As against the many advantages of direct marketing, it should be borne in mind that it is an expensive medium and not suitable for reaching large audiences.

12.1.2 Choosing the Right Product Category Not all products are suitable for direct marketing. How many of us will want to purchase a chewing gum through a mail order catalog or the Internet? Better results are produced for products that have the following characteristics: ∑ Products that are not readily available in stores or novelty products ∑ Complex products with unusual features that require explanation e.g. insurance policies ∑ ∑ Products with a high worth of individual sale e.g. banking products ∑ Service oriented products that require personal interaction with the consumer, customization or personalization, and customer relationship management ∑ ∑ Products that have greater customer involvement ∑ Products that have a large need for information or products with an opportunity for market research ∑ Products that a customer might want to buy privately without public knowledge

12.1.3 Direct Marketing: A Tough Nut to Crack With all its advantages, converting a prospect into a customer can still be a challenging task in direct marketing. The prime objective of direct marketing is to generate a behavioral response.

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Direct marketing hence faces the hardest of all objectives, which goes beyond generating awareness, interest and preference – even beyond a decision to buy. It goes all the way to spurring action, where marketers are asking for a donation, a purchase, a subscription, or a membership. Generating an marketers need to provide a response mechanism.

12.2 THE QUINTESSENTIAL ELEMENTS OF DIRECT MARKETING There are three elements that lie at the heart of direct marketing and are a must for its success. In the order of their importance, they are the list, the offer, and the message. It is their quality that determines the effectiveness of a direct marketing campaign.

12.2.1 The List A list is a roll of prospects who would be targeted in a campaign. It is prepared on the basis of the database. It is the most important element of a direct campaign because choosing the right prospect for a product is more important than anything else. As a marketer of wedding rings, you may have the right offer and message, but if you are targeting a retired couple, your offer and message are not going to yield any results. On the other hand, if a marketer is targeting the right prospect, sometimes he tightened to include the prime prospects for the product as the cost of communicating to prospects is the largest expense in direct marketing. The arrival of computers has allowed the development of extensive databases. This is a great common characteristics that predict that the prospect will be a good consumer. They can “merge (combine lists) and purge (delete repeat entries)” lists from a number of databases, buy and sell names with other companies, combine from public lists and compile to get an ideal list for their product. Direct marketing advertisers are continuously seeking data to make additions to their prospect list. Hence, when you join a health club, you start getting mails on the newly opened diet restaurant in

a new local repair shop. Direct marketers are continuously seeking new means and ways to enhance their lists. Lists can be of any of the following three types: 1. House list: This is the list of a direct marketer’s own customers. It is the most valuable list for it has the information regarding customers who have actually purchased. An individual may become a part of the house list when she signs the guest book of a restaurant with her contact information. 2. Response list: This is the list of people who have responded to a direct marketer’s offer that list is akin to an advertiser’s target audience.

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3. Compiled list: This is a list that is rented or purchased from a direct marketing list broker. Magazines rent their subscribers’ list, clubs rent their member records, email sites rent their account users’ list, etc. Compiled lists are the least reliable of all lists as there is no certainty

12.2.2 The Offer An offer is the value for money that the direct campaign offers. What is it that customers are getting in lieu of their money? In many cases, the offer is more than just the product. All the variables that are projected to satisfy the needs of the consumer are regarded as part of the offer. These could be acceptance of credit, time and quantity limits, free gift, guarantee or warrantee, etc. It is a way to tell consumers that their patronage is valued. An offer could be for a limited time to speed up responses – a coupon offering reduced prices if you buy before an expiration date, a limited time chance to participate in a lucky draw, a contest entry, a free gift, etc. The more number of times an offer is

12.2.3 The Message The message is the piece with which marketers grab the attention of their prospects. The purpose of the message is to lure the prospect and get him to read or learn about the offer. Copywriters have only

Some Truisms of Direct Marketing element of direct marketing. 2. Second order is the key. A person who buys twice is more than twice as likely to buy again. 3. The option of payment through credit card boosts both response and size. 4. Time-bound offers increase response. 5. Free gifts are more effective than discounts for most products. 6. The longer the customers read a mail, the more likely they are to respond.

12.3 DIRECT MARKETING MEDIA Direct marketing uses all mass marketing media as well as some unconventional media such as the telephone or personal visits. More than one medium can also be used in combination. Following are some of the most popular media:

12.3.1 Direct Mail Direct mail is one of the most popular forms of direct marketing. It is an advertising message that

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samples, etc. Direct mail allows marketers to tell a story or describe something in detail. There are no space limitations, unlike in a magazine or newspaper. As mentioned earlier, there is less competition in direct mail. Hence, it has greater opportunity to grab and hold a reader’s attention. It is possible to personalize direct mail with a number of consumer variables like name, last purchase, amount spent, etc. A feedback form can be attached to obtain information about consumers’ views and opinions. In this regard, it is a good market research tool. the CPM (cost per thousand) is higher than mass media. However, due to tighter targeting, there is less wastage. Another factor adding to cost is the creation and maintenance of a database. Moreover, get discarded as junk mail without even getting opened. Further, some people see direct mails as an intrusion into their privacy. Few like receiving unsolicited mails with their names and addresses on it. Typical response rates are as low as 2–3%. However, the larger and tighter a list, and the better an offer and message, the greater the chances of increasing the response rate. Marketers often use response mechanisms that increase response rates. For example, coupons or contest entry forms are more effective than a simple phone number, fax number, or website address. The design of a direct mail is a critical factor in determining its power to grab attention. If the type of visuals and the personality of graphics are in sync with the character of the product, the weight of the message can be enhanced. Direct mail can have any contents and any desired look. Yet, the conventional format serves as a checklist. The package usually comprises of an envelope, a personal should state a summarized version of the offer on the outside and ignite curiosity because the most critical decision of whether to read the mail or not, is made by looking at the outer envelope. It is advisable to not leave the back entirely blank, though it gets the lowest readership. Marketers should at least include a logo, an accompanying tagline, contact information or summary of the inside message.

12.3.2 Catalogues A catalogue is a direct mail publication that shows the products to be sold. It usually has all the information that one needs to place an order. Also, a catalogue marketer must make sure that the ordering process is easy and convenient. While a direct mail attempts at selling one or two products, a catalogue sells multiples of them at a time. In other words, it is used when a manufacturer has an entire merchandise to display. Sometimes, catalogues become so popular that people have to order them and pay for them like they do for magazines. They are also available online. Some of the advantages of online catalogues are that there are not very tight space restrictions (marketer can display as many product pages as their server space allows), changes can be made easily, and cost is less. Catalogues should list or display products in a striking setting and according to some order – least to most expensive, products of a category, products in order of size, etc. As many details and features of the product as possible should be shown. Many catalogues are in colour and product information is accompanied by product pictures. Readers usually scan catalogues by looking at the pictures. If the accompanying pictures includes details like product size, colour, pricing, and other relevant features.

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Some catalogues are image building, like those of retailers Westside and Pantaloons or fashion designers, and come in attractive colours, unusual sizes and illustrative styles. Other catalogues, like those of and their prices.

12.3.3 The Internet The Internet is one of the most convenient and advantageous direct marketing media. No wonder direct marketers plunged on to it immediately, unlike mass marketers. Online ordering, though not credit card transfers and greater Internet and PC penetration. Websites offer a virtual store and make direct marketing easy. Online catalogues can trim down are the virtual counterpart of postal direct mails. Besides, Internet provides an easy way to gather consumer information and build on a database. It makes it possible for consumers to communicate back instantly and give feedback, making customization, personalization and problem solving easy. Consumers can be greeted by their name on a personalized page, view their account information, communicate with the marketer, etc. Internet can even allow consumers to generate their own

mass advertising on the Net, with the only difference that consumers can also buy online.

12.3.4 Telemarketing Though not very popular in India, tightly targeted telemarketing may yield results. Ads delivered through phone calls fuse personal contact with mass marketing and lead to relationship building. However, the important thing to keep in mind is that telephone is a highly personal medium and most people do not like receiving unsolicited phone calls trying to sell them something. More importantly, they may get put off by such intrusiveness and get negatively discharged towards the product being telemarketed. Now the regulations governing the telemarketing industry have also been tightened and a ‘Do Not Call’ list has been announced. We’ll discuss more about these regulations in Chapter 20, list. Sooner than later, this list may spell the doom of the telemarketing industry. Hence, telemarketing has to be used with caution. For instance, in cases where consumers have a real need for the product a direct marketer is selling, for products that satisfy an important business need, or where marketers are exploiting a personal contact so that the call does not seem like a customary business call. While telemarketing isn’t as effective as a personal sales visit, it is much less costly. Telemarketing can be inbound or outbound. Inbound calls originate from the customer. They could be to get more product information, place an order, or solve a problem. Advertisers are likely to get such a spurt of calls after they have recently advertised. Inbound calls are usually more effective as the customer herself has shown interest in the offer. Unless it is a big company receiving hundreds of customer calls every day, it is not wise to bug customers with an Interactive Voice Recording (IVR). People like it better to talk to a human agent. Outbound calls are made by the company’s sales

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representatives, a hired call center, or a telemarketing agency. They are likely to generate the most resistance. The biggest advantage of telemarketing is that it is personal. Human voice is the most convincing

their sales representatives are cordial over the phone, patient with customers, and well informed to answer unexpected questions. The message to be telemarketed should also be simple so as to be delivered over the phone. Complex messages that involve calculation, detailed information dissipation, present the product as a solution to a problem. Marketers do not necessarily have to sell the product over the phone. They can even deliver product display invitations like an invitation for a test drive of a car or a jewellery exhibition. The message should be brief, as people do not like to be held for more than 2–3 minutes.

12.4 ETHICS IN DIRECT MARKETING In a bid to become one of the most personalized and customized marketing media, direct marketing causes an unparalleled attack on consumer privacy. Not only do direct marketers keep a record of consumers’ personal information like name, age, contact address, etc., but they try all means and ways to acquire more behavioral, psychographic and lifestyle information about them – which store did they visit last, what sport do they play, what car do they own, when do they take a vacation, what cuisine do they like, etc. Quite a lot of this information can be obtained without consumer knowledge or permission. There could be cookies on their computer, tracking of their Internet usage, or analysis of their credit card information. With increasing organized retail and store membership, the checkout scanner is another tool to capture and learn about consumers from information like name, products purchased, frequency and quantity of purchase, amount paid, etc. A direct marketer needs to decide how much information to acquire and where to draw the line.

Summary transaction or some other immediate response. Here the marketer and the prospect interact directly, without the presence of any intermediary. Direct marketing is interactive, provides a way to respond to the offer made by a marketer, works without the involvement of distribution channel members, and targets prospects on the basis of a database – a storehouse of prospect/customer information. Direct marketing has several strengths such as achieving quicker sales than mass marketing, allowing better targeting and segmenting of customers, ability to tailor messages, potential to measure response, etc. However, it is an expensive medium and not suitable for reaching large audiences. There are three elements that lie at the heart of direct marketing – the list, the offer, and the message. the Internet, etc. are the various vehicles of direct marketing. In spite of its increasing use, direct marketers need to bear in mind that direct marketing causes an unparalleled attack on consumer privacy. Hence, regulation to govern the use of direct marketing is increasing.

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Exercise 1. Refer the example of EssetPro in the opening vignette. Do you think it is a product suitable for direct marketing? Why or why not? Make a note of the possible lists (house, response and compiled lists) that you could use in order to expand EssetPro’s roll of subscribers. 2. Compare and contrast direct marketing with mass marketing. 3. Write a brief note on the future of telemarketing in India.

Suggested Class Projects

beginners. How will you seek these smokers or what list will you use? Compose an innovative direct Pay attention to the message, content and design of the letter. 2. Prepare a direct marketing campaign for a product of your choice. What direct marketing media will you choose? Justify their selection. Make a presentation before your class.

Critical Thinking Questions 1. Any product can be marketed directly to consumers without the support of distribution channels. Agree or disagree giving examples supporting your stand. 2. It is unethical to collect consumer information without their knowledge. Argue for or against.

Endnotes 1. “ Times Pitch 3. Advertising Principles and Practice, Wells, Burnett, Moriarty, 5th

The Economic

Chapter 13 Public Relations and Publicity Chapter Objectives

In Perspective

After reading this chapter, you will be able to: Understand the meaning and importance of public relations and publicity Learn about the public relations industry in India Comprehend the strengths and weaknesses of, and differences between public relations and publicity Discover the various types of public relations disciplines targeting different audiences Recognize the tools of public relations Comprehend how to plan a public relations programme

Cadbury Overcomes a Crisis1 Cadbury India Ltd, the market leader in Indian confectionary segment, encountered the worst-ever crisis in its 56 years of operations in India in October 2003. In eight outlets across Maharashtra, worms were found in some bars of Cadbury Dairy Milk, Cadbury’s bread-and-butter brand selling 1 million bars a day and an icon of ‘chocolate’ in India. Inquiry was instituted by the Food

extensively graphic media coverage led people to believe that every bar could be contaminated. Consequently, sales volume plummeted, retailer cooperation lessened and employee morale dwindled. All in all, the company’s credibility suffered extensive damage. After a thorough investigation of the entire supply chain, it was found that the problem originated at the distribution end. Apparently, at the retail outlets the infested bars were placed next to open unpacked items susceptible to worms. However, although the problem was not of its own making, Cadbury did take responsibility for the slack in educating retailers on storage and hygiene.

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electronic media, to regain its lost credibility and almost reestablish the category. It decided to convey that the root of the problem was at the distribution end, that any food item could face similar infestation, and yet Cadbury would take initiatives to check the Project Vishwas, a three-pronged programme that following measures: ∑ A retail monitoring and education program was launched that performed quality checks at over 50,000 retail outlets and educated 190,000 wholesalers and retailers regarding storage requirements. A press ad regarding ‘Facts about Cadbury’ was also published nationally in 55 trade publications informing channel members about were also distributed to retailers, encouraging them to share them with consumers. Cadbury also linked the trade with a response cell through a toll-free number and an email id to let them directly contact the company. ∑ media was also explained the company’s point-of-view, given updates about actions initiated by the company, and encouraged to share them with consumers. consumers that Cadbury was safe to eat, but that consumers must exercise the usual care in purchasing a chocolate that they exercise in purchasing a food item. Furthermore, it also promised to implement packaging changes within two months to insure against poor storage. Cadbury’s MD and key spokespersons had one-on-one sessions with 31 media editors as part of an Outreach program initiated in November 2003. ∑ Employees were also briefed about actions taken through meetings with senior managers and email updates from the MD. FIGURE 13.1

Cadbury’s new purity seal

launched a new double packaging packaging reassured consumers of product quality. (Figure13.1) that wrapped even the smallest 13 gm chocolate in an aluminium foil, heatsealed for complete protection from all sides

in India, cost the company a fortune, but consumers. Cadbury also roped in Amitabh Bachchan as its brand ambassador since the celebrity was hugely popular and reputed for his integrity, qualities that Cadbury needed to re-associate with the brand.

Courtesy: Superbrands, Volume I, 2004. Reproduced with permission.

much fanfare in a media conference. Amongst the material distributed in the conference were a comparison kit allowing evaluation of old and new packs and a video news

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among sales people and to motivate them, another audio-visual with a message from the ambassador Bachchan was shown in a string of sales conferences. A rationally and emotionally connecting television commercial, again starring the Cadbury factory, assuring people about the quality of the chocolate (Figure13.2). In another version of the ad, he also emphasized the safety of the product for children. As a result of the integrated campaign, Cadbury won over the invincible media and got extensive media coverage that highlighted the company’s perspective instead of an increase in their likelihood to buy. Further, not only did Cadbury’s sales recover from the crisis plunge, but also grew by 20% in 2005. FIGURE 13.2

Cadbury’s brand ambassador Amitabh Bachchan reinstated public confidence in the

product.

Courtesy: Cadbury. Reproduced with permission.

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The above feature demonstrates the role that public relations can play in an integrated marketing campaign. Through timely and consistent marketing communications Cadbury succeeded in solving a daunting business crisis. With a 360-degree communications approach that targeted various audiences, Cadbury could quickly control and offset the negative word-of-mouth it had received. By integrating a variety of tools like press releases and conferences, consumer advertising, trade advertising, pointof-purchase communications, packaging initiatives, email communications and the like, all focusing on the same problem, Cadbury the efforts it had taken to minimize instances of future occurrences. In this chapter, we’ll talk more about the role of public relations in mitigating a crisis. We’ll also discuss the increasing importance of public relations and how it integrates with the other tools of communication to foster relationships with various audiences.

13.1 AN INTRODUCTION TO PUBLIC RELATIONS As organizations grow in size and scope, their urge to communicate with the public grows too. They realize that they need to reach out to many different “publics” besides consumers, as several groups suppliers, shareholders, employees, government, local community, etc. Unless a friendship bridge is built with these various audiences, an organization’s most sincere efforts to market the best of its products can go awry. And hence is born the discipline of public relations (PR), which, as the name implies, is all about maintaining relations with an organization’s various publics. Thus, PR assumes the widest scope and role of all marketing communication tools. As discussed in Chapter 1, public relations is the managerial activity that is concerned with action to earn public appreciation and acceptance. In other words, public relations is a planned effort goodwill for an organization and its products. Thus, it is clear that: ∑ products, ∑ It is a planned activity that analyzes and shapes public opinions, ∑ We have discussed in Chapter 1 that there are several low-control messages in an organization that are not formally designed, but which make a stronger impression on various audiences by the virtue of being more honest. For example, an organization’s crisis management, shareholder interaction, employee behaviour and gossip, consumer word-of-mouth, etc. may not be directly controlled by the of a company. Now most companies are unwilling to leave their corporate image to chance. Hence, PR is an organized effort to evaluate these low-control messages, and carry out activities to create goodwill, change attitudes, and control spontaneous messages. And in doing so, it may use the same media used by other communication tools, such as a corporate website, advertisements, events and sponsorships, direct mailers, etc. Thus, PR takes on a much broader scope than advertising or other

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products or affecting behaviours, but of promoting an organization as a whole. relations activities that build positive image or publicity for products are called marketing public relations (MPR), an area that marketing communication managers have to deal with the most. creates news and publicity for a product, etc. Thus, it is quite integrated into the overall marketing communication mix and is overseen by the marketing or communications manager. For instance, PR is used as a supplement along with advertising to form an effective communication strategy. This is only helps in communicating advertising messages but also in generating favourable responses. We discuss more about MPR in Section 13.3.4.

13.1.1 The Importance of PR In an age of media fragmentation and consumer-driven media, companies are quickly losing control over their communications. Sample this: On February 5, 2010, a bunch of young Twitter enthusiasts gathered at a Café Coffee Day a snack bill of over Rs. 1,000. But they got rubbed the wrong way when they were ordered to pay up a ‘service charge’ by the store manager who thought that the bill

blogs. And there wasn’t much that the company could do to intervene and control this negative publicity.2

The world is getting radically transparent. Today there are more than 500 million mobile users and about 80 million Internet users in India. Nearly 70% of Web users are on some social network. Their trust in newspapers, television news, and business magazines is down sharply: 35-40% less than two young, connected folks demand the best from companies, think of information as their right, and are eager to speak their minds – one way or the other. Today’s consumers are more empowered and will not stand for any nonsense. And in sectors like aviation, telecom and hospitality, due to the sheer number of customers and customer touch points, one can almost expect a crisis a day. Therefore companies must treat each complaint as an issue, before it becomes a crisis. Further, every consumer is a broadcaster and publisher. Companies cannot hope that their tapes, the media can’t always suppress a story. One blogger can pick up negative press, which has, for instance, been ‘blocked’ on The Times of India and within seconds it can be all over the world.3 This happened in 2008 when the American blogger and hacker Mike Walker allegedly discovered a cached Excel spreadsheet on Google, which showed that China’s Olympic gymnasts were underage, and

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had faked their dates of birth in their passports. Although they were later cleared of the allegations, the point to be noted is that the Internet never forgets and that negative publicity can be dug out from its deepest grave. Thus, the Indian industry cannot remain smug as before, treating PR as a minor cost centre organizations for a more assertive and connected consumer base. And it is not for crisis management several audiences with whom good relations need to be fostered. For the more goodwill a company builds over time, the more it can afford to lose in the event of negative press.

13.1.2 PR in India4 In India, PR as a discipline owes its roots to the multinationals. At the time of independence, there were only a few multinationals, which had professional public relations. After independence, it was realized that PR is especially necessary to create a bridge between corporates and the government. Sometimes, it was used to foster media relations too. However, it did not have a very large role to play in most organizations. PR began to grow in India in the early 1990s when the government opened the economy and multinational corporations began to enter the country. However, in its early days, PR was equated with media relations only. It was only natural that the entrepreneurs who began these

hold press conferences in. For many, PR was about planting admirable stories about their clients and blocking negative publicity. Many PR agencies in the ’90s were an offshoot of advertising agencies, such as Ogilvy PR. Some others, such as Adfactors PR, were a derivative of IPO agencies. Agencies with a core focus on PR, such as Perfect Relations, Genesis, etc. were few in the early days. The new century saw a new breed of agencies being born with a new approach to PR. For instance, there have been PR verticals, such as i9 Communications that caters only to the healthcare industry and Text100 that serves only IT companies, as well as boutique agencies that offer very niche services. PR verticals and niche agencies often spring as a result of some industry crisis. For instance, the PR verticals in the region. This phenomenon is likely to be replicated soon in India. PR professionals with niche experience are viewed as experts because they’ve built up experience and made important The line between PR, advertising and digital communication is also starting to blur. As the industry, need and appreciation for PR have grown, dedicated public relations agencies have emerged the spate of international PR agencies rushing to Indian and Chinese markets after the economic slowdown in the Western world. According to the 2007 report on ‘The State of the Public Relations Industry,’ the western growth of PR has almost plateaued at a stable range of 9% to 11%, with the growth geographies being India and China growing at four times the Western pace.5 International agencies are bringing in a theoretical, empirical and data-driven approach to managing PR. In the foreign brands. However, some others such as Vaishnavi and Adfactors have held on, and they are no weak competitors for their multinational counterparts but the revenue leaders in the industry.

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An Assocham report predicts the size of the Indian PR industry to reach USD 10.6 billion by the end of 2012 from the current USD 6 billion. According to estimates, the Indian PR industry comprises of 1000-2000 agencies with manpower strength between 30,000 and 40,000, and a booming business. The demand for PR professionals is rising, which is likely to push the growth rate to 32% from the sector; however, the public sector, environment, and corporate social responsibility (CSR) are all emerging as growth areas for PR. Thus, with multinationals coming in India and global PR agencies keen on extracting their share of growth from the Indian market, the future of PR in India looks bright. Nonetheless, the overriding concern of the industry is skills shortage. Almost all agencies are hiring, a trend indicative of growth, and some are looking outside the PR industry to bring in new skills. But an average PR agency’s normal retainer fee is between Rs. 2.5 and Rs. 10 lakh, which is still a pittance compared to companies’ marketing or advertising budgets. Hence, the PR function is still highly undervalued and the coming years are likely to see a lot of transmutation. To promote the recognition of PR as a profession and to establish it as a strategic management function, the Public Relations Society of India (PRSI) was formed in 1958 with headquarters in Mumbai. It is the national association of PR practitioners of India from the multinational, Government, public and private sectors. The society is recognized as the national PR organization by the International Public Relations Association (IPRA), whose International Code of Ethics has been adopted by PRSI. PRSI is also one of the founder members of the Global Alliance of Public Relations and Communications Management, which has been established with a mission to enhance the public relations profession and its practitioners throughout the world. In order to promote PR as a discipline, the society regularly organizes conferences, seminars, lectures and discussions on various facets of public relations, runs professional programmes in collaboration with universities and colleges, and celebrates April 21st as the National Public Relations Day. It also presents national crisis communication, event management, social media for PR and branding, corporate social responsibility, etc. Another such body is the Public Relations Council of India (PRCI), which is a non-political and services. It promotes the practice of PR at local, national and international levels and even offers accreditation to professionals. Born in 2004, it has over 18 active chapters across India, with plans for 10 more chapters and an international presence in the near future.6

13.2 STRENGTHS AND WEAKNESSES OF PUBLIC RELATIONS One of the biggest strengths of PR is the credibility relatively impartial nature. Audiences are more likely to believe news articles, television reporting, awards given to a company, etc. than say, an advertisement or a direct mailer of a company. This is because the former are usually third party generated, whereas the latter are presented by an organization in its own favour and hence are viewed more skeptically. For instance, have we not been to a movie after reading positive newspaper reviews or picked up a book based on its back cover endorsements by leading media? Of course, with consumers becoming more savvy, they have

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started realizing that often third party coverage is paid for directly or indirectly by an organization. For instance, consumers are not naïve to fail to notice the extensive media coverage on say, the 3 nutraceutical. As discussed in Chapter 4, an individual’s acceptance of information and ideas is Several studies have indicated that the credibility of news media is on the decline. One such survey by the Pew Research Center for the People and the Press, conducted in July 2012 among 1,001 US adults, revealed that nearly two-thirds of Americans think that the news stories they read, hear and watch are frequently inaccurate. The falloff in credibility affects news organizations in most sectors: national newspapers, cable news outlets and broadcast television networks. Table 13.1 gives the commercialization of media, people are turning to consumer-driven media to gauge the credibility other tools of marketing communication. And a lot depends on the trustworthiness of the source in which a PR message appears. TABLE 13.1

News Organizations’ Believability Ratings Decline

Average rating across 13 news organizations (based on those who can rate each outlet)...

Believability rating on 1-4 scale.... Positive (3 or 4)

Negative (1 or 2)

%

%

2012

56

44

2010

62

38

2008

64

36

2006

61

38

2004

63

37

2002

71

30

PEW Research Center July 19–22, 2012. Ratings for each news organization base only on those who could rate it. Identical list of 13 news organizations for each year since 2004; In 2002, 12 organizations were included. New York Times was first asked in 2004.

Effective PR helps in building a positive image of an organization, presenting it as a good citizen,

to listen to its side of the story. PR also has the amazing ability to reach several audiences at a time, not have time to watch ads or respond to sales promotions, but they are likely to read newspapers, groups for products or information that appeal to very small market segments, in which case advertising or other communication would be a wasted effort. For instance, a better way to reach investors is through annual reports or corporate brochures, and not through advertisements. PR is further helpful in avoiding the clutter typically faced by advertising or sales promotion. News stories, corporate mail, lectures and seminars, stakeholder meetings, etc. usually receive dedicated attention from its target audiences. For instance, as discussed in Chapter 1, Gillette’s Shave India Movement received coverage in 300 print publications, 60 electronic channels, and over 130

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online and radio exposures in target cities. This earned it an overwhelming awareness of 32% and a huge increase in sales during the campaign period. PR that is well executed is among the most cost effective tools of marketing communication, suitable even for small businesses and in situations of economic downturn. Not only the relative, but also the absolute costs of PR are low. It helps in reaching several audiences without huge mass media budgets, and in a relatively clutter-free environment that ensures greater attention. Free publicity and word-of-mouth are often the added of time and administrative costs. PR also offers more latitude to communication managers in terms of the information that can be given because the laws governing public relations are not as stringent as those regulating advertising or sales promotion. little control over what gets publicized. News stories released to the press may not be published in the intended manner because, among other things, the press has access to other sources of information as well. Moreover, editors and broadcasters decide the newsworthiness of any event based on what is likely to appeal to their audiences. Hence, sometimes an organization’s stories may not be covered at all as other important events may take up news space or time. Another weakness of PR is that results . Organizations may monitor the media coverage a story generates, but sometimes the impact may simply be on the consumer attitude, public opinion, or relationship with meets the axe in terms of budget allocations. Further, PR does not have a direct impact on sales, which is the overriding concern of most marketing managers. In view of short-term gains, not many organizations pay attention to the long-term commitment and investment that PR requires. Therefore, it often takes a lower priority compared to other communication tools.

13.3 TYPES OF PUBLIC RELATIONS We discussed that there are several audiences of public relations. These audiences, in effect, give rise to different kinds of PR disciplines, which we explore below. Note that the below list is only illustrative, not exhaustive.

13.3.1 Media Relations Media relations involve establishing an ongoing relationship with the media and informing them relations is to maximize positive publicity for an organization and minimize negative coverage. Because not all stories of an organization will be of interest to the media, media relations experts need to become familiar with the “beats” given to reporters and their areas of interest, and then pitch them stories that have newsworthiness. They need to be familiar with the kind of news issues that are covered by various media organizations, including online media; develop story ideas; pitch stories and online) to create feature placement opportunities; track interview opportunities; give interviews and handle media questions; etc. Sometimes they may also need to train other company executives

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organizations have very little control over media, media experts need to continuously keep the communication channels open. Their work calls for trustworthiness, presence of mind, respect for

Blue Star and an annual turnover of Rs. 2700 crores. Family owned but professionally managed, it caters to a large number of corporate, commercial and residential customers. However, in its early years, as Blue Star of the consumer air conditioning market and was not taken much note of. Nonetheless, with its wide range of sleek and contemporary room air conditioners, the company was keen on pursuing the residential market. Hence, the company decided to use government and the general public. strengths of Blue Star, brand’s quality, competitiveness, reliability and exceptional after-sales service. It prepared a well-planned media programme involving press meets, facility visits, and one-on-one interviews with prominent mainline, industry and trade media. Media stories hotels) handled by Blue Star

result of this organized endeavour, Blue Star is a household name in the country even though consumer products form a very small fraction of its overall sales. In 2012 it is targeting a 9% share in room air conditioning from the current 7% share. It estimates

leadership position in central air conditioning in the face of strong competition and has been able to increase market share in most segments. It is regarded as one of the analyst following.7

13.3.2 Corporate Public Relations corporate PR team comprising of the company’s senior management determines the concerns and expectations of the organization’s publics, and is responsible for shaping the organization’s image. One of its tasks, called issue management, is to determine how the company will respond to important issues. An effective corporate PR strategy is to ride an existing debate or topic. Corporate expert insights on the topic. Press releases, news articles, corporate blogs, Facebook pages, etc. are useful tools to voice opinions and spur debates. The credentials of the company and its spokesperson should be such that the advice or opinion offered is taken note of.

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The corporate PR team is also in charge of managing corporate advertising, which, as discussed in Chapter 1, is a tool to build positive attitudes and goodwill towards the company as a whole. not to sell a product, but to enhance the image of the organization. The examples of Tata Steel and Coca-Cola discussed in Chapter 1 illustrate this point. Even in the Government sector, PR advertorials are the most impacting mode of reaching out to the masses in inculcating and promoting attitudinal changes, educating them, and encouraging their participation. Corporate advertising can have many Marico’s corporate campaign discussed in Chapter 9 is an example of this type of corporate advertising.

cricket teams, etc. are of this kind. Linking with a social cause is called cause related marketing, and is becoming increasingly popular in Western countries due to narrowing product differentiation. Typically, a company donates part of its revenues to a charitable organization, and brand-neutral consumers end up choosing brands that donate over those that don’t. It gives them a feeling of doing surrogate charity. For instance, every time a consumer buys a large pack of Ariel, Tide, Vicks, Whisper, Pantene, Gillette Mach 3, Head & Shoulders, Duracell, Oral B or Pampers during the months of April-July, P&G donates a part of the proceeds to its NGO partners (such as Child Rights & You (CRY), Navy the country. As discussed in Chapter 1, advocacy advertising, which expresses a viewpoint on a given issue or takes a stand on a social, political or other debatable issue, is also a type of corporate advertising that is handled by the corporate PR team. Advocacy advertising usually positions an organization as a leader in its industry or area of expertise, and as one who serves as an upholder of a point of view. Anti-smoking, AIDS prevention, equality of women, seat belt usage, etc. are issues that are often the organization in good light or supporting the organization’s interests. For instance, the diamond trading company DeBeers has published advocacy ads encouraging proper working conditions as well as advancing respect for the environment.

13.3.3 Crisis Management organization’s reputation, well being, or survival, or the interests of its stakeholders. Crises typically give organizations very short time to react and respond. Use of pesticides, pollution of nearby farms examples of crises faced by several large organizations. It is almost a given that at some point in an organization’s life there would some event that would be perceived negatively by the public. It is the responsibility of the crisis management team, whether internal or externally appointed by an organization, to manage communication during such events. The team designates spokespersons to describe the damage accurately, give interviews to media and government, answer questions from communities and investors, etc.

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Erika Hayes James, an organizational psychologist at the University of Virginia, and Lynn Perry Wooten, associate professor at the University of Michigan, identify two primary types of organizational crises: sudden crises that occur without warning and are beyond an organization’s control, and

crisis leadership competencies to tackle the situation. For example, the goal of crisis containment survival. Crisis handlers work diligently to bring the crisis to an end as quickly as possible to limit the negative publicity to the organization, and move into the business recovery phase, where the concern is returning the organization back to “business as usual.” The authors identify six competencies that help handling the crisis: building an environment of trust, reforming an organization’s mindset, identifying obvious and obscure vulnerabilities with an open mind, making wise and rapid decisions, taking courageous action, and learning from crisis to effect change. James and Wooten continue to and affecting reform accordingly.8 A crisis does not always mean that an organization will get a perennial blemish on its image.

crash in 2007. Of course, he was doing his duty, but at the same time his actions embodied Virgin’s customer care, and were favourably viewed by stakeholders. Management that owns up responsibility transparency with its stakeholders, and takes concrete measures to resolve the issue is often able to tide over the waves of trouble, as illustrated in the In Perspective feature on Cadbury. As opposed to this, a company that does not own up to its blunders could face severe consequences, as in the case of Bridgestone. Since 1998 the US company had begun receiving complaints about its Firestone tyres’ treads to separate, often resulting in accidents. But it refused to accept that there

accepted blame and announced the recall of 6.5 million tyres – the second largest recall in US history. by the faulty tyres. And thus this turned out to be one of the biggest PR disasters of the decade.9 Compare this with Mattel, which managed a crisis of a similar magnitude in 2007 when faced with safety concerns about its toys. It announced an immediate recall and its chief executive Robert Eckert devoted weeks to communicating the steps the company was taking to address the issue. As a consequence, its brand remains strong.10 Similarly, PR campaigns should never be misconstrued as a cure for bad management or unethical business practices because stakeholders can easily see through hogwash.

of Orissa ignoring the rights of the Dongria Kondhi tribe, the natives of those sacred

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mountains, and blatantly disregarding the environment. In recent years, the company and its ethics have been criticized by the Norwegian and British Governments, the

spending millions of dollars trying to change attitudes and convince the world that it is working in the interests of local communities. Due to the mounting tribal protests and

Film Competition.’ In addition, there were several print and outdoor advertisements, a YouTube campaign, and interviews given to news and online media by the company

violating several laws regarding mining and environment protection, providing false information

Thus, how a company handles a crisis determines whether or not it will emerge with its reputation intact. While most companies focus on PR and communications as a reactive strategy, some large organizations anticipate the kind of crisis they could face, prepare a contingency plan, designate crisis management teams with their responsibilities chalked out, and sometimes even conduct drills to handle a mock crisis situation.

13.3.4 Marketing Public Relations (MPR)

It is especially useful for the launch of new products as they need to establish credibility amongst target audiences and may need to provide more elaborate product details than advertising can afford. News articles can raise awareness; endorsements by opinion leaders can build trustworthiness; ads that have the potential to create publicity can generate hype and discussions; grand product launch events can dramatize products, generate excitement and publicity; etc. MPR is a highly targeted and planned discipline that can also overcome consumer resistance to typical promotional messages, break through the clutter, achieve credibility, support advertising efforts, etc. – and all in a cost-effective manner. Of course, like most PR, the control over MPR is much less compared to regular promotional activities.

Dabur tap the huge potential of the honey market in India and to emerge as the market leader

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fresh news around the category of honey. It decided to target the Indian housewife focus of the PR campaign was to raise a debate on the ‘sugar versus honey’ issue in was linked to the brand Dabur Honey with special features and television tie-ups in national and regional media on the use

titled, was the brand ambassador of Dabur Honey scale use of advocates gave immense credibility to the campaign. market place for Dabur Honey year, leading to an increase in the brand revenue by Rs. 200 million from the previous

“Best campaign across the in a category 12

13.3.5 Employee Relations Jim Goodnight, the CEO of SAS once said, “75-80% of our greatest assets walk out the door every single night, and we want to make sure they come back the next morning.” Employees are the human capital that is responsible for the productivity and success of an organization. Although managing this personnel wealth is a function of the human resources department, the PR department too has an important role to play. Whereas the HR department is concerned with tasks such as recruitment, training, payroll management, handling grievances, developing HR policies and procedures, etc., PR is responsible for maintaining communications with employees in special and routine situations. Employee relations is a branch of PR that focuses on communication and programmes that build positive relations and goodwill with employees – the internal public of an organization. As discussed in Chapter 1, employee conversations and behaviour are a low-control communication generated by openly grumble about a company, untrained customer service personnel whose behaviour betrays the values advertised by a company, uninformed staff members who are as perplexed as consumers in the face of a crisis, etc. all send out negative messages that have a greater impact than any big budget advertising campaign conducted by a company. In the In Perspective feature above, we saw that Cadbury its senior management through regular meetings and email updates. But for this effort, the employees would have been confused, their faith in the company would have been shaken, and they would have communicated contradictory messages to the other publics.

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Employee relations are not important in the wake of a crisis alone. Attracting, motivating, developing, rewarding and mobilizing employees are top priorities for an organization – not only is the image of an organization as a great place to work in the minds of current and prospective employees and key stakeholders in the external market. Again, the case on Marico’s corporate campaign used in the early 1990s to denote an organisation’s reputation as an employer. Since then, it has become a buzzword among global managers. The scope of employer brand management could go beyond communications to incorporate every aspect of the employment experience, including people management processes that shape the perceptions of employees. Since they already have the brand 13

PR must ensure the presence of an ongoing communication channel with its employees. In-house magazines and newsletters, bulletin boards, email messages, video programmes, employee meetings and get-togethers, award functions, etc. are tools to communicate with its people. Successful employee relations give employees a feeling of security, participation, recognition, respect, and opportunity that ultimately improve employee morale, motivation and productivity.

13.3.6 Financial Relations Financial relations is a strategic management responsibility where PR plays an important role in and other constituencies such as the Government. Financial relations experts reach out to investors,

community. For instance, annual reports are a means to inform investors why a company performed or did not perform well, how any recent crisis is being solved, etc.

presentations to its investors that include details such as its sales milestones, awards and recognitions, short-term and long-term plans, vision and mission, strategies to

Figure 13.3 shows one such part of its investor presentation.

changes in management or internal structure, downward spiral in share prices, product liability issues, factual in tone; be cautious in making promises; focus on long-term rather than immediate future, and balance sheet strength as opposed to short-term earnings growth; refute rumors and answer concerns of investors; coordinate media relations and investor communications; etc.15 One of the tasks of

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FIGURE 13.3

Pharma Player with Global Footprints

~60 years

$ 1 bn+

> 6% of sales

Operational experience

Global Revenues

Spent on R&D annuallly

20+ mfg. sites

~ 23% CAGR

300+ products

Producing > 12 bn pills annually

In Sales and net profits (FY‘ 07 - FY‘ 12)

Registered annually for US, EU, Japan and emerging mkts

15,000+ employees

~ 25% CAGR

~ 7 NCE Programs

Across the globe, with 1050+ for R&D

In Net Worth (FY ‘ 07 - FY ‘ 12)

In pipeline, at various stages of clinical trials

Among top 5

20 brands

19 Biosimilars

Pharmaceutical companies in India

Among top 300 brands in India

In pipeline, including 2 novel biologics

10th largest

~ $ 3 bn

800+ patents

Generic co. in US in terms of prescriptions

Market Cap

Filed globally

price and demand.

13.3.7 Community Relations One of the prime responsibilities of PR is to build relations with an organization’s community behind this is that accepting one’s civic responsibilities as a corporate citizen earns the loyalty, trust and support of surrounding communities, which are so very important in the successful running of a business. Accepting one’s corporate social responsibility (CSR), the overarching discipline

as observed in the example of Vedanta Resources in the section on crisis management, antagonizing one’s community can spell the doom of business. Community relations generally take the form of activities that enhance the well being of the local

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sponsorships calling for local participation such as children’s activities, performing arts programmes, charity walks, religious gatherings, etc. In India, several organizations have contributed their bit in making the country a better place to live in. Foremost among these are the Tata and Birla Groups that have been imbibing the case for social good in their operations for decades – long before community relations or CSR become a popular cause. And yet, the practice of CSR is still very nascent in India, limited to a few large public and private companies, especially ones with presence in other countries. However, this scenario is fast changing as companies are realizing that ‘doing social good’ and is fast becoming a ‘business necessity.’

13.3.8 Government Relations at local, regional and national levels, in an advocacy effort known as lobbying. Lobbying is often spoken of with contempt, when the implication is that organizations with inordinate socioeconomic power are twisting the laws to suit their own interests. Not many of us know that the debate we see on the television or the articles we read in favour of foreign companies are often supported with lobbying money. But those patronizing lobbying argue that it serves many fair causes such the industry to the Government. Deciding whether lobbying is “fair” or “unfair” depends on the cleverness with which lobbyists can defend their cause. The Box below indicates that with the opening up of world markets, cross-country lobbying has picked up in the recent years.

Lobbying is gaining strength in India with several multinational companies and their Governments spending crores of rupees to seek an entry into India or make business conditions favourable. For instance, Wal-Mart Stores, which has been trying to set up multi-brand shops in India for a long time, spent nearly $1.5 million in the quarter matters “related to FDI in India.” Besides Wal-Mart, the coffee shop giant Starbucks has been lobbying in India seeking 100% FDI in single brand retail. As per a disclosure

the company’s efforts have borne fruits. Finally, the Government has approved 100% FDI in single-brand retail. After FDI, the issue of proposed tax amendments in India months. Other multinationals such as Prudential Financial Inc. services market access and equity ownership issues.” Financial services companies have already gained with the approval granted to 100% FDI in single-brand retail. Honeywell International is lobbying on “issues related to engine upgrades for Indian military aircraft,” and Medtronic lobbied on matters “relating to improving medical device regulation in India.” A host of Indian companies, as also the Indian government, have also been lobbying instance, Mukesh Ambani-led Reliance Industries Ltd.

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Nasscom lobbyists $ 1 lakh for lobbying on issues like international technology, immigration, highskilled visa, workforce and personnel mobility, whereas the Indian government paid $

and business houses have formed association and federations, such as FICCI and CII, which are primarily engaged in lobbying with the Government.16

With the maturing of PR, multinationals are also bringing in more sophisticated ways than intense lobbying to manage relations with the Government. For instance, the old way of doing business was

local grocers out of business, reduce prices, and lead to more choices for the customer. And foreign

advocating a cause and contributing to debates.17

13.4 TOOLS OF PUBLIC RELATIONS PR uses tools from all areas and disciplines of business – be it corporate publications, television advertisements, direct mailers, websites or online videos. All of them serve the end goal of “managing relationships.” Following is a sample of some of the popular tools used by PR practitioners.

13.4.1 Publications Publications range from brochures and posters to internal magazines, newsletters, and annual reports. They are published by an organization at regular intervals and for a variety of audiences – both internal and external – to maintain a communication channel with them. For instance, sports and entertainment clubs publish magazines for their members informing them of past activities and upcoming programmes, changes in fee structures, awards and recognitions to members, policy decisions taken in committee meetings, etc. Several publications have also gone online now as they afford a wider reach and lower costs of distribution. For instance, mobile service operators inform their subscribers about new plans and schemes through online newsletters.

13.4.2 Videos and Films are training, safety demonstration, corporate promotion, investor information, recording corporate events,

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product presentation, webcasting, etc. Corporate promotional videos are often broadcast in cinema halls, in corporate-owned retail stores, over company websites or other sites like YouTube, etc. or shown to clients or investors before meetings. Businesses may even send them to television news stations as and mission, production processes, clients and markets, awards and recognitions, etc. In that sense, it is an audio-visual version of a company’s corporate brochure. It is usually professionally produced by

In online brand building formats, videos are the new wave. In India, more than 70% of the population is watching videos. In 2011, the top brand video was shared more than four million times globally. According to a leading digital report, in 2011, many brand campaigns have crossed the 10-million ‘viewed’ mark. Videos are particularly advantageous because they have an unlimited shelf life and consumers share them on their own for free. Moreover, they can be interactive, entertaining and non-intrusive, unlike advertising. In categories where information seeking is an integral part of delivering complex information in an effective manner. Even in categories like insurance where the videos are costly to produce and marketing them online is a science too. There is also a threshold seeding, easy sharing ability, social integration, user promotions, etc. to make it successful. However, not all of these efforts cost much money, but they do require diligent planning by PR practitioners.18 Another type of video-based PR can be done through product placement. It is both – a little bit of advertising and a little bit of PR where branded products are embedded in the programming content of movies, music videos, television serials, reality shows, or even news programmes. For example, reality shows like Bigg Boss, Perfect Bride, Indian Idol, Rakhi Ka Swayamvar, etc. have all had their share of placements. At present in India, product placements during shows are generally limited to branding coffee mugs, laptops, or show premises. In the instance of Bigg Boss 3, title sponsor of the show Vodafone placed the logo inside the pool or the storeroom in the Bigg Boss house. However, gradually marketers have started integrating products with programme storylines as well. This has been done by brands like Tetra Pak, Maggi, Kit Kat, etc. where the placement was seamless and didn’t look commercial at all.19 Similarly, Audi’s Q7 was strategically featured in the Salman Khan and Bodyguard, landing it plenty of screen time alongside the stars. Audi’s India PR team had gone to extensive lengths to arrange the placement. The company even promoted the placement by tweeting, “Don’t forget the catch the Audi Q7 starring alongside Salman Khan in Bodyguard.”

13.4.3 News Releases and Press Conferences Organizations are interested in providing their stories to news media because they generate publicity, which has higher believability than an organization’s own communication. However, for a story to appear in a print or broadcast media, it has to have “news value.” Before Kalyan Jewellers, one of the th store in Ahmedabad in September 2012, it had been issuing ads about the store opening in newspapers and outdoor media. The ads and some press releases announced the arrival of Amitabh Bachchan for the inauguration. Thousands

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of fans had gathered on the narrow streets outside the showroom on the day of the opening to catch a glimpse of the Bollywood superstar. The hype and popularity of the event was so high that most leading local media extensively covered the inauguration. Thus, news value or newsworthiness determines the extent of prominence a news story is given by media and the attention it is given by are out of the ordinary, are relevant to the target audience served by the media, are concerned with celebrities or global powers, have an element of drama, are controversial, are concerned with some currently discussed issue, can be covered logistically, can be researched and included quickly, etc. are more likely to be covered. News releases deliver an organization’s story to the news media – scheduled events, personnel promotions, awards, new products, branch openings, sales accomplishments, etc. – in a format that is acceptable to the print or broadcast media for which it is intended. Note that news releases for print and broadcast media are prepared somewhat differently. In addition to adhering to a customary style, news releases also have to ensure that they have newsworthy content. If a release is sent to a single media outlet, it is called an exclusive. An exclusive may be offered if a medium reaches a large part of an organization’s target audience. It also increases the chances of acceptance of a news story. Alternatively, multiple copies can be mailed to a list of reporters or posted on a news wire service that charges businesses to distribute their news, such as Thomson Reuters, Associated Press, India PRwire, Indo-Asian News Service, etc. For a news release to become news, an effective distribution plan is a must. First, determine who your target audience is – what readers, listeners, viewers do you want to reach? While a story in The Times of India is great, if your release is about the launch of an Ahmedabad-based avant-garde beauty parlour, then Ahmedabad Mirror would be a better choice. Websites and blogs also give the news a on YouTube, or put up on online news distribution sites. When a news release is sent out, the media should be informed why it’s relevant to them, how it impacts people in their area, and where to go for more information. The following Box gives some tips on the content and style of preparing a news release.

Tips for Preparing a News Release 1. Be concise, direct and accurate. Reporters are usually hard-pressed for time and want to get straight to the details. 2. Learn about the targeted news medium or organization. Provide it with content that would have news value for it and its audiences. 3. Find stories that demonstrate the organization’s expertise, competitiveness, uniqueness, achievements, efforts to improve customer experience, etc. 5. Make the most of statistics, trends, industry news, and quantitative customer research to package product stories. customers or dealers who have said something good about you.

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7. Include expert comments. Investment advisors, company’s senior management, celebrities, senior regulators, etc. can be quoted to demonstrate your industry experience. reporters. 9. Print press releases on a company letterhead that includes the company logo. If above the title in all capitals. 10. Include a headline that accurately and interestingly captures the gist of the release present tense and larger font size than the rest of the copy. Editors and newspaper readers are skimmers and have no time for elaborate introductions.

13. Prefabricate your story making it ready for release. A story that is marginal in news terms but written and available may also be selected ahead of a much more newsworthy story that must be researched and written from the ground up.

15. At the end of the release, include a brief write up on the organization to establish “boilerplate.”

There are certain standard formats for writing a press release. The Box below indicates one such Temptations. The press release does both – impart information about the outlet as well as create excitement about its products. Try improving the existing release by rewriting it.

[Company Logo] Contact

;

FOR IMMEDIATE RELEASE

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GIVE IN TO TEMPTATIONS – GUILT FREE! Ahmedabad, November 16, 2012:

is a

50 toppings like nuts, fruits, brownies or even a dash of chocolate syrup – and you’ve got yourself a heady lip-smacking combination.” According to the Asian Food Research Association, yogurt is packed with tons of natural goodness, which improves colon health, boosts immunity, and aids in digestion.

in a pleasant and comfortable ambience doing things you like best – slurping a softy,

of healthy and appetizing desserts. ### Note: Photographs of our products and consumers at the store can be found on the Temptations website and are available upon request.

Like a press release, a media advisory is its abbreviated form often in a bulleted format, sent before an event, and inviting members of the media to attend the event that may not be public. It reminds the media of the event by providing basic facts, but the actual news is released only during the event. The event could be a news conference, a product launch, a trade show, a lecture by an important company representative, etc. Unlike press releases, media advisories aren’t meant for public eyes. A news conference or press conference is a media event where organizations invite media representatives to listen to their announcement. Journalists and reporters may also be allowed to

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ask questions or interview important people. If news could be obtained from a press release alone, then a press conference need not be arranged. It is generally for an opportunity to ask questions or interview newsmakers that media is interested in press conferences. A media event at which no statements are made, and no questions allowed, is called a photo opportunity. News conferences is newsworthy and who values free publicity. They may be also called at a short notice in the event of a crisis where it is important to give accurate and immediate information to the media. Many times, a collection of supporting material such as photographs, press releases, copies of speeches, timetables, company literature, etc. is given to reporters to make their task of news coverage easier. This collection is called a press kit.

13.4.4 Special Events and Social Activities Companies may organize various types of special events to foster relations with their various publics. Universities, for instance, are known to organize open house sessions where a presentation can be given about their programmes, parents’ and students’ queries can be answered, and a campus tour can be arranged. Similarly, many companies arrange training sessions and factory visits for their new social activities such as talent nights, picnics and holiday parties for employees; holiday tours for dealers and retailers; charity walks for donors; etc. are all PR tools that create a pleasant atmosphere and convey the message that the management is interested in these audiences. Increased interaction with internal and external audiences puts them in a friendly disposition, increases their morale and

13.4.5 Company Sponsorships/Events

Pariwar has had sponsorship rights for the Indian Cricket Team since 2001, Avon Foundation for Women has sponsored the cause of breast cancer throughout the world, Aviva had sponsored a mega book donation drive called ‘The Aviva Great Wall of Education’ for underprivileged children, etc. Sponsorship of sports, arts, education, social causes, etc. has a lot of PR value because of the goodwill and media coverage it can generate. Sponsorship also links an organization to an event and vice versa, and triggers brand-related associations when thinking about an event. The women’s magazine Femina, for example, is always remembered when thinking about the Miss India beauty pageant. Deciding on sponsorships is often a lengthy process that consists of researching opportunities, creating tailored

generate publicity. For instance, a sales promotional event such as a mega contest, or a charity walk organized by a company are also likely to earn it good media coverage.

13.4.6 Social Appearances Celebrities, politicians, corporate senior management, etc. often make social appearances to audiences, or get media coverage. Many business heads attend convocation ceremonies of universities

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candidates. Bollywood celebrities often make appearances at Navratri functions, opening ceremonies of businesses, or even on reality shows on television in a bid to enlarge their fan following or promote their upcoming releases. An appearance may even be clubbed with an interview opportunity for media personnel.

13.4.7 Online Media Tools The online media offers some wonderful tools for disbursing PR-related information, or even conducting PR activities. A corporate website is one of the most versatile tools that can be used for reaching several audiences. Most fully developed company websites have information for

for their employees – posting news, publications, meeting and social event announcements, etc. Information about a company’s community development efforts, product-related messages and FAQs for consumers, etc. is also posted online. In addition to a website, social media tools may also be used, such as a Facebook regular posts and consumer interaction, Twitter feeds for short and quick announcements, YouTube for broadcasting corporate or product videos (as discussed in Section 13.4.2), LinkedIn pages created by employees to share their professional news, etc. Many senior management personnel also have their own blogs or contribute to corporate blogs with articles, information, links, photos, news, views and opinions. For instance, Anand Mahindra, MD, Mahindra & Mahindra, is one of the most visible Indian CEOs on Twitter with nearly two lakh followers. He uses Twitter to address issues ranging from consumer complaints to employee messages, making his account one of the most valuable tools in his company’s perceptions armoury.20 Implementing a social engagement strategy is now fundamental to a PR campaign. Social media campaigns might focus explicitly on connecting companies directly to as mentioned in the IPL examples below.

a highly engaged community with regular content created by team players, experts and fans. Consequently, the RCB community has more than 5,00,000 fans across channels.21 In the recent past, three scandals have rocked the IPL. A television sting operation showed cricketers agreeing to play sloppily for money; Bollywood superstar-cumallegedly drunk; and Australian player Luke Pomersbach was arrested on charges of grand makeover for cricket is now suffering an image crisis of its own. In view of this, IPL PR practitioners have been frantically reaching out to the social media using tools like blogs, Facebook, etc. in order to curtail the negative word-of-mouth that can spread

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information that can be accessed on demand at the click of a button. Of course, an organization has to undertake extensive marketing to ensure that its audiences retrieve the information posted by it. In addition to the tools mentioned above there are many others, limited only by the creativity of an organization – lobbying, fund raising, meetings, social activities, etc.

13.5 PLANNING THE PUBLIC RELATIONS PROGRAMME Like any marketing communication plan, a PR plan also begins with situational analysis or research, and measurement of campaign success. Given below are the steps to follow:

13.5.1 Conduct PR Research it currently holds amongst its audiences. Research can help recognize the attitudes and perceptions people have about the organization, outline problem areas that can potentially develop into a crisis, identify the opinion leaders among different groups, characterize them, pinpoint media consumed by these groups, etc. PR research studies answer questions like: how do consumers perceive our company, what are the gaps between company’s employee policies and actual practices, is the local community aware of our community development efforts, etc. Research should distinguish between reality and the desired image. Companies should be analyzed from an internal point of view (management’s image/ perception of company by employees) as well as an external one. Image research can be both primary as well as secondary. A company with more time and resources at hand can reach out to stakeholders and ask them questions on various “perception-related” issues, eavesdrop on employee conversations, etc. Alternatively, secondary research can be done by monitoring consumer blogs and social media, key publications and broadcast media, etc. The example below talks about an image monitoring tool developed by a communications consultancy.

allows CEOs to spot where the gaps lie, and then suggests actions to remedy these gaps because in a fast changing world, most CEOs are no longer in touch with every around the world (Figure 13.2a), which lead to 10 basic practices that companies have. CEOs can invite as many as 50 employees or stakeholders to participate (Figure13. 2b). Litmosi can then map how a CEO perceives the metrics vis-à-vis other stakeholders (Figure 13.2c), and give some generalized suggestions on closing the gap.22

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FIGURE 13.4 (a-c)

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13.5.2 Set the Objectives to be reached. A single PR campaign usually does not aim at covering all of its publics because each

and plan separately for each group. For instance, in the Cadbury crisis mentioned at the opening of the chapter, retailers needed to be educated to monitor the safety of the product; media, and in turn consumers, needed to be reassured that Cadbury was taking steps to solve the problem and that the product was safe to eat; whereas employees needed to be kept in the loop regarding all of the company’s crisis management actions. Usually the prime purpose of PR is to affect or change public attitudes. However, as public perceptions are not so easy to assess and measure, and take a long time to manifest, this is not such

n number of people to attend an event, attaining coverage in x company is a good corporate citizen, the following questions can be researched: ∑ ∑

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∑ Do they perceive the CSR work favourably? (Can be measured on a Likert scale) ∑ Are they more likely to purchase the company’s products because of its CSR work?, etc. “Within a year’s time, generate awareness of the company’s CSR projects among 40% of the consumers in a way that at least 25% of those consumers favourably view the initiatives and indicate their likelihood to purchase the company’s products.”

Again, ‘intention to buy’ is a rather speculative estimate for a sales forecast. Hence, such targets should be restricted to marketing PR activities alone. In the above example, sales impact is included

While some PR professionals will argue that PR activities have to be conducted on an ongoing

13.5.3 Determine the Budget Estimating the costs of a PR programme is not an easy task because there are several activities that do not have an apparent price tag to them. For instance, placement of news stories in media does not require payment of any fees. However, ‘creating news stories’ or ‘getting reporters to attend an event’ do have a price tag. There have also been several reported instances of organizations “buying” media space or time, but we shall talk about ‘budgeting in an ethical world.’ To determine the PR budget, a company can review the funds it can spare for PR activities,

PR at different budget levels. These budgeting methods are discussed in detail in Chapter 18. The most popular method is the ‘affordable method’ where budgets are set based on what a company can spare. Sometimes budgets are dictated by what PR agencies charge as a retainer. However, the most

amount as the budget.

13.5.4 Implement the Plan

strategy will maximize an organization’s budget by using the right tools and techniques. For instance, in order to support a new product launch of a herbal tea, a company can host an event inviting

price tags to them. Implementation of a PR plan calls for key decisions related to the selection of PR

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tools and activities, the message strategy, and time of message delivery, as indicated by the example below. Together, these impact the budget.

IndiaProperty.com, an online site offering information on buying, selling and renting out properties in India was launched in 2005, one of its key challenges was to Magicbricks.com, 99Acres.com, Makaan.com, etc. In order to differentiate itself, it decided to position the portal as a complete solution on all things real estate, especially for the NRI community that looked forward to investing in India. As part of its PR strategy, IndiaProperty.com organized a property exhibition in Dubai on the investment opportunities in India, targeting in Dubai are Malayalees, IndiaProperty.com tried to leverage the emotional connection between them and investing their hard earned money in their own native place in

focused on highlighting the progressive growth trend of Kerala with an increasing level consumers and media. For the consumers, in addition to the property show in Dubai, agents’ meets and builders’ meets were organized where they were briefed on real estate trends, advantages of online listing, role of IndiaProperty.com in penetrating the the IndiaProperty.com spokespersons as thought leaders of the real estate industry were supplied to the media, thereby gaining extensive coverage for the website.23

The above example illustrates some of the decisions to be made while executing PR plans. For instance, the tool of property show was chosen because it performed the key task of registering the brand name and helping the target market of Kerala sustain the growth pattern for a longer period. The timing of implementation of PR activities and the target audience of the activities have also to be chosen strategically. Consider the Vedanta Resources example given earlier in the chapter. competition at a time when the atmosphere was still rife with rage against Vedanta’s treatment to the tribals. So when instead of pacifying the tribal community by taking steps to allay their fears and concerns, Vedanta launched a hi-decibel PR campaign targeting the rest of the world and creating an

13.5.5 Evaluate the Results term and rarely on behaviour. Yet, with sophisticated techniques efforts are made to give some insights into the performance of PR campaigns. PR can thus measure shifts in awareness, behaviour related to purchases, corporate reputation, employee engagement, public policy and investment

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decisions. Quantitative measures such as benchmark-and-tracking surveys are used along with some qualitative methods. Such research can identify the change in purchasing, purchase preference, or attitude shifts resulting from PR initiatives. In general, the effectiveness of PR is measured through three key parameters, which are discussed in depth in Chapter 19. An overview of these parameters is presented here. ∑ Measurement of exposures: Number of exposures is the easiest parameter to measure. Criteria such as total column inches of press coverage received, number of publications in which coverage was received, estimated cost of buying space or time that was received for free, number of public relations events held, audience size at these events, etc. are popular measures of exposure. However, while measuring exposures such as media coverage, one has to take ∑ Measurement of communication impact: Measuring the number of mentions in print or on the air is generally meaningless, unless it also involves audience impressions, quality of the media coverage (tone, credibility and relevance of the medium to the audience, message delivery, etc.). Measures such as product awareness, interest, message comprehension, recall, attitude change, etc. are the communication-related effects of PR. Organizations can test as to how many people recall the message idea, how many are positively disposed towards the product after consuming the message, how many repeated the message to someone else, etc. through survey-based techniques such as interviews or focus group discussions. Similarly, content analysis of media coverage can reveal what is being covered, to whom, when, where, to how many people, etc. Opinion polls can be conducted to monitor public opinion over time. ∑ Measurement of impact on behaviour: Consumer conversion is a behavioural measure of public relations that can be measured through benchmarking (e.g. how many employees could a direct impact on behaviour, at least not in the short-term. But with increasing pressures on communication planners to quantify results, sophisticated analytical tools are being developed that can isolate and tag the impact of PR activities on measures such as sales. In the Dabur Honey campaign mentioned earlier in the chapter, impact of PR on market share, sales and brand revenue have been measured.

13.6 PUBLICITY As discussed in Chapter 1, publicity refers to the generation of news about an organization, its products, a person, etc. by third party sources. Publicity is often a result of PR activities such as supplying a press release to media, organizing a product launch, hosting a lunch meeting for investors, achieving lobbying success with the Government, announcing the results of an opinion poll, delivering a lecture at an important occasion, etc. Such activities generate conversations (a.k.a. etc. However, PR practitioners have to ensure that their efforts should not get branded merely as “publicity stunts,” which are viewed rather negatively. Thus, publicity is a subset of public relations. However, there are some key differences between

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of its new product (controlled PR effort). However, the media may do its own research and may also publish the product’s harmful effects (negative publicity that cannot be controlled). Another difference is that PR is usually a long-term and ongoing effort, whereas publicity is typically shortterm – it lasts only as long as another important news piece does not take its place. Publicity is an immensely powerful form of communication that can make or break a product. In Chapter 3 we discussed the case on Nano where negative publicity due to several events tanked the sales of the car in its early years. This is because publicity has a lot more credibility than a company’s advantage of publicity is its low cost compared to other communication tools since an organization doesn’t have to directly pay for it. The expenses for maintaining publicists, developing publicity

Summary As organizations grow in size and scope, they need to reach out to many different “publics” besides could be the media, community, suppliers, shareholders, employees, government, local community, etc. The managerial activity concerned with gathering opinion and analyzing attitudes of these acceptance is called public relations. The importance of PR has grown as media has become more fragmented and consumers are in better control of information. The Indian PR industry is also on an ongoing basis. The biggest strength of PR is its credibility because of its relatively impartial nature. It also helps in building a positive image of the organization, generating goodwill, reaching several audiences at a time, avoiding the typical marketing communication clutter, etc. PR is also amongst the most cost effective tools of communication. However, organizations have little control over what gets different audiences of PR give rise to its varied disciplines, such as media relations, corporate PR, crisis management, marketing PR, employee relations, etc. Each of these is concerned with managing

damage an organization’s reputation or survival and usually communicates with several audiences at a time. PR specialists use several tools for achieving their goals – publications, videos, online tools, corporate advertising, lobbying, press releases, interviews, sponsorships, special events, etc. Like any marketing communication plan, a PR plan also begins with situational analysis or research, and is measurement of campaign success. A result of PR activities is publicity, which generates third party conversations around an organization, celebrity, event, etc. Although publicity is a very powerful tool of communication with

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to ensure that it will always be positive.

Exercise 1. Refer the In Perspective feature at the beginning of the chapter and evaluate the role of public relations in the worm crisis faced by Cadbury 2. Compare and contrast PR with other tools of marketing communication. 3. The Indian industry is discovering new verticals. Healthcare, for instance, is a Rs. 1,62,000 crore industry today, and is growing at a rate of 15%. It is likely to be a Rs. 12,60,000 crore industry by 2022. Explain if this is an area of opportunity for PR. If yes, how? 4. What is a smouldering crisis? What steps can an organization take to plan for and minimize the instances of such crisis? Explain with an example. 5. Describe how online media tools can be useful in conducting PR activities.

Class Projects 1. Write a press release for Kalyan Jewellers that recently launched its 38th store in Ahmedabad, which was inaugurated by Amitabh Bachchan. Describe who the target audience of the release 2. Prepare a detailed PR plan for a product/organization of your choice. Describe the problem to execute the plan, and the metrics for evaluating results.

Critical Thinking Questions 1. Is MPR different from advertising, special events or other marketing communication tools? Explain. 2. Intense lobbying should be banned because it places corporates with inordinate power in a position to twist regulations to suit their own interests. Argue for or against.

CASE STUDY Ahmedabad Red Cross: Topping the Nation in Blood Donation Saga of an Amazing Turnaround

collection of only around 4,000 blood units at the Red Cross Blood Bank, the organization was in dire disorder. The team needed to take up the baton of reinstating the past glory of the organization.

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And on 14th June, 2012, after an eventful tenure of over 11 years when the same team decided to hand over the baton to their successors, they successfully did so with a modern, state-of-the-art infrastructure and resources of over Rs. 8 crore and a healthy Red Cross Blood Grid collecting annually over 90,000 blood units and catering to the needs of around 1,50,000 patients requiring blood and its components. This saga of the amazing turnaround of the Ahmedabad Red Cross (ARC) and its meteoric rise and recognition as ‘India’s Single Largest Blood Programme’ can well be digested as a case study of motivational communication and as a sterling example of what vision for a mission can achieve. Ahmedabad is today rated by the National Aids Control Society (NACO) as the No.1 Indian city, with

The New Team’s Vision for a Mission The new team comprising of President Mr. Mukesh Patel, Vice President Mrs. Shakuntala Mavalankar, Hon. Secretary Mr. Mahesh Trivedi and Hon. Treasurer Mr. Shreyas Pandya, who took charge at the Ahmedabad Red Cross (ARC) in 2001 were inspired by the vision and foresight of the pioneers of Vani, with whom they had the privilege of closely working for over two decades. The team resolved come to be acknowledged as ‘Topping the Nation in Blood Donation.’ In this direction, Team ARC took up the challenge of mobilizing resources for the creation of strong infrastructure and amenities for 24 hour blood banking. But even more important than the hardware was the software… the creation of a true feeling of commitment, pride and dedication social workers of the Red Cross, but amongst the entire fraternity of blood donors and the people of several initiatives that soon became trailblazers of success.

Instilling the Pride Factor – Launch of ‘Sherdil’ Amongst many of its unique and imaginative contributions to energize the Voluntary Blood remembered for instilling the pride factor in the coined the term Sherdil as a title for a blood donor. However, it is prouder of its people who are ‘Lion Hearted!’ When we refer to a generous person, we call him ‘Lion Hearted.’ From this thought emerged Sherdil,” says Mukesh Patel. Sherdil not the philanthropic spirit of its people! Thus Sherdil Blood Programme and it soon became a popular character with a colourful display of its interesting messages (Figures13.3a-c).

FIGURE 13.5 (a-c)

Interestingg Messages Issued by ARC

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Donor Recognition – Key to Donor Motivation Realizing that Blood Donor Recognition can act as the greatest stimulation by way of motivation for regular blood donation, ARC has focused its attention on organizing Annual Blood Donation Award Functions to felicitate Star Blood Donor Institutions and Veteran Blood Donors. The active involvement of State leaders such as H.E. the Governor, the Chief Minister, Health Minister, Mayor and eminent Celebrities from different walks of life has made the largely attended award functions truly memorable. The ARC Centurion Blood Donors’ Club, comprising of over 75 Amdavadi blood donors who have scored more than a century of their blood donations, the ARC Handicapped Blood Donors’ Club of over 25 blood donors, and ARC Women Blood Donors’ Club of over 50 veteran blood donors from the respective groups are the three unique Blood Donor Clubs, which are actively engaged in campaigning of the Blood Donation Programme. The club members provide a model of leadership by example. Centurion Blood Donors of Ahmedabad hail from all strata of the society a Religious Saint, to an ordinary Auto-Rikshaw Driver and a Physically Handicapped Worker, as also a First Lady Centurion and a First Negative Blood Centurion. ARC has the rare distinction of having within its fold more than 1,500 Veteran Blood Donors, who have donated their blood for over 25, 50, 75 and 100 times. Innovative ‘Mission 25/25’ of ARC aims at inspiring youth to start donating blood at 18 and with 3 to 4 regular donations each year, achieve 25 donations at the age of 25.

Where Blood Donation is a Way of Life ARC has spread the message that be it a Birthday Party or a Wedding Celebration or even a Death donation. Patriotic fervour reaches its pinnacle during the festive mood of the Independence and Republic Days, with thousands of units of blood being collected in over dozens of camps being organized by ARC on a single day. Foundation Day Celebrations of Institutions are marked with

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blood donation drives. Disciples have paid their respects to Gurus by offering a unique tribute through ‘Rakt Tula’ (weighing their Guru with equivalent weight of units of blood donated by them). Blood collection, even at outdoor camps, under the aegis of the ARC Blood Programme knows no limitation of time, day or night, and happens even round the clock at times. Mega Blood Donation seen the longest running Blood Donation Camp over days together at a stretch. These mind-boggling feats have gone in Record Books in letters of red and gold! The historic achievements of Blood Donors and ARC have been regularly covered by various local print media as well (Figure 13.4) Blood Donation is a Way of Life’, ARC also has a melodious audio and video in its fold singing the FIGURE 13.6

Press coverage garnered by ARC

Questions 1. Who were the publics of ARC? What were the various PR messages sent to these audiences?

Endnotes 1. “Cadbury Crisis Management”, www.prcai.org; “Cadbury ropes in Big B as brand envoy,” The Hindu Business Line, Thursday, Jan 7, 2004; Mohini Bhatnagar, “Worm turns for Cadbury,” www.domain-b. com, Nov 28, 2003; T R Vivek, “Cadbury makes a sweet comeback,” www.rediff.com, Oct 30, 2004 2. Robin Dharmakumar, “Public Relation in India is Taking the Flack,” Forbes India, Jan 25, 2011 3. Robin Dharmakumar, “Public Relation in India is Taking the Flack,” Forbes India, Jan 25, 2011 4. Robin Dharmakumar, “Public Relation in India is Taking the Flack,” Forbes India, Jan 25, 2011; www. prsi.co.in; www.wikipedia.org; www.assocham.org

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5. www.huntsworth.co.uk; www.holmesreport.com 6. www.prci.in 7. www.bluestarindia.com; www.pressmanpr.com; “Current Scenario of Central AC Market,” Feb 6, 2011, www.bms.co.in; “Blue Star to aggressively focus on room AC segment,” PTI, Jan 25, 2012, www. economictimes.com 8. Erika Hayes James and Lynn Perry Wooten, “Leadership as (Un)usual: How to Display Competence In Times of Crisis,” Organizational Dynamics, Elsevier, Inc, Vol. 34, No.2, pp. 141-152, 2005 9. Bianca Male, “The 15 Biggest PR Disasters of the Decade,” Dec 17, 2009, www.businessinsider.com 10. Jonathan Hemus, “Accelerating towards crisis: a PR view of Toyota’s recall,” Feb 9, 2010, www.guardian. co.uk www. bloomberg.com www. indigenousissuesinasia.wordpress.com; “David v. Goliath: Indian tribe in ‘stunning’ victory over mining giant,” Aug 24, 2010, www.survivalinternational.org www.indiaprwire. com; “Dabur Honey gets a new look,” Oct 8, 2009, www.campaignindia.in 13. “Understanding the Public Relation Industry in India,” The Business Standard, June 2, 2012 14. www.zyduscadila.com 15. “Bear market – is it different?,” Oct 6, 2008, www.ircafe.com 16. “Wal-Mart, others seek US govt help on India plans,” The Times of India, July 29, 2012; “RIL halts US lobbying for 3rd straight quarter,” The Times of India, July 22, 2012; “Corporate lobbying gaining strength in India,” Dec 7, 2011, www.devinder-sharma.blogspot.in 17. Robin Dharmakumar, “Public Relation in India is Taking the Flack,” Forbes India, Jan 25, 2011 18. Manish Dubey, “Online videos boost brand equity,” The Strategist, Business Standard, Oct 15, 2012 19. Jagadeesh Krishnamurthy, “All About: TV Product Placement,” Mar 10, 2011, www.campaignindia.in 20. Robin Dharmakumar, “Public Relation in India is Taking the Flack,” Forbes India, Jan 25, 2011 21. “Understanding the Public Relation Industry in India,” The Business Standard, June 2, 2012 22. www.litmosi.com; “Chlorophyll launches brand alignment tool, Litmosi,” Aug 17, 2009, www.afaqs. com; “Litmosi™ is the World’s First Online Corporate Brand Alignment Tool,” Aug 25, 2010, www. prweb.com 23. www.goodrelations.co.in

Chapter 14 Communication in the New Age: Online and Mobile Media Chapter Objectives After reading this chapter, you will be able to: Understand Internet as a communication medium. Learn about the traditional tools of online communication and discover principles to improve their effectiveness. Discover the wonderful world of Web 2.0, particularly social media and gaming. Find out how marketers can effectively communicate using these new media. Appreciate the importance of mobile marketing and learn about some of its popular tools.

In Perspective

“Tell me and I’ll forget; show me and I may remember; involve me and I’ll understand.” A Chinese proverb “In the last twelve months, customers around the world have ordered more than US$1 billion of products from Amazon using a mobile device.” – Jeff Bezos, founder and CEO of Amazon.com (July 2010)

All is Well with Bollywood 1 In 2009, Indian cinema hit an all-time low as advertising on the medium dipped to a dismal low. 3 Idiots proved to be a silver lining for the industry by

of Bollywood that successfully used unconventional media such as outdoor, activation, marketing alliances, merchandize, and digital media. Whether it be 10,000 rickshaws announcing, ‘Capacity: 3 Idiots,’ ladies toilets in multiplexes reprimanding, “You are the fourth idiot!,” Aamir Khan doodles transforming into designer t-shirts marketed through Pantaloons, Reliance Life Insurance billboards assuring ‘All is well,’ or hip-shaped chairs placed at multiplexes becoming the brand

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managed to explore multiple touch points and reach out effectively through online and experiential marketing techniques. website called idiotsacademy.com (Figure 14.1) was launched, which added to the buzz around the movie. It took visitors to different virtual rooms of the Academy – the Director’s

“virus” in their lives in a chat forum, whereas the canteen offered wallpapers, ringtones, pictures and videos for download as part of its menu. An interactive Alternate Reality lead actors in the movie, went missing and played a unique hide-and-seek game with the at undisclosed locations in the country. Participants of the game got two weeks to track him down and there were seven clues to trace Aamir before the release of the movie on on the site which revealed that Aamir would spend a night at his mother’s doorsteps. had videos of Aamir taking a boat ride and an auto ride in the city incognito, spending time different disguises in places such as weaving houses of the famous Chanderi sarees in Followers were also kept updated about the hunt through Twitter and Facebook groups. 3 Idiots’

On Facebook and updated entirely by Aamir (Figure 14.2). It became a talking point because it was the

and more than four lakh fans. It also featured Aamir’s doodle t-shirt, which friends could send to one another as a gift through the ‘Pucca Idiot’ Facebook page. While Khan was in the middle of his hide-‘n-seek game and excitement was at a peak, “Aamir Khan, the Pucca Idiot” decided to hold a Facebook live chat with fans. Khan was on video, and fans could type in from Twitter, Facebook, and Youstream. More than 1 lakh users 300,000 status updates were shared that day, according to Facebook’s international communications team. On Twitter, #AamirKhanLive was the sixth most buzzed keyword in the world. Music of the movie was also released online, instead of at any grand location, and the music launch was broadcast on idiotsacademy.com. Fans visiting the site on that day were invited for a video chat with the cast and crew of the movie. A number of online videos of trailers, promotions, interviews about the movie, etc. were released on YouTube 3 Idiots

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of all time. FIGURE 14.1

Website of 3 Idiots generates buzz for the movie

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Amir Khan’s Facebook profile for 3 Idiots

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The potential of the Internet is phenomenal. And the opening vignette illustrates that when online media has strong “content,” it can become a juggernaut of viral and wordof-mouth communication. In 3 Idiots’ case, entertaining content primarily came from Aamir Khan’s disappearing act and the suspense created around the theme of the movie. The idea for Khan’s nationwide journey had come from the story of the film, where his friends go in search of him. The difference here was that media and fans were trying to spot Khan. It was the first time that an ARG had been used in promoting a Bollywood film. Participants in ARGs interact directly with characters in the game, work with other participants to solve challenges, analyze the story, and stay connected on email or social networking sites. Aamir’s journey and the game were also captured by many news and entertainment channels, giving the film abundant secondary publicity. An online communication well integrated with traditional or other media, increases the power of a marketing campaign manifold. After the 3 Idiots, many a Bollywood movie has tapped into the promise of the Internet, the latest being the 2011 science fiction superhero film RA.One. Its budget of Rs. 15 crore for online promotion was the highest ever for a Bollywood film. 2 The film’s promotion incorporated many firsts for a Hindi film, one of them being the official customized Ra.One channel of the film on YouTube where several songs, theatrical promos, and videos of the film’s making and uncut footage were released to the public. The channel also hosted games, including the first social game from India – RA.One Genesis, and contests where participants could create promos from clips, music and dialogues of the film. The game reached the number one position on the iTunes store within 24 hours of its launch, becoming the first ever Bollywood movie app to be top-featured on iPhone and iPad.3 It was launched across platforms like mobiles, tablet PCs, and social networking sites like Facebook. There were also multiple live chats conducted on Google Plus, a medium that Shah Rukh Khan (the film’s key actor) was the first Indian film personality to utilize. In short, there are a plethora of options to communicate online. However, designing communication for the Internet is a different ballgame with an increasingly aware and impatient audience, growing competition, and rising costs. This chapter takes us through the basic online communication tools and gives pointers on effectively utilizing each of them.

14.1 THE INTERNET AS A COMMUNICATION MEDIUM The Internet is the ultimate direct marketing medium, allowing precision targeting, two-way communication, and measurable ROI (Return on Investment). And although it is direct, it is scalable – allowing global reach – at costs lower than traditional media. In the recent years, it has become so powerful that its existence simply cannot be ignored. An organization may be communicating through all traditional media, but if it does not have an Internet presence, viz. a website or an email to get in touch with, its image receives a setback. Hence, Internet is not an option. Also, the convergence of various media has led to the spread of Internet. People may read your ad in the newspaper, log and place a telephonic order through the ordering number provided on your site. Internet further brings together various media through its capacity for multimedia content that includes not only text

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and graphics, but also audio, video and various interactive features. This provides for high impact advertising. And with growing user-generated content and “crowd sourcing,” the Net can encourage, engage, and recruit consumers to create viral communication. What is then advertising on the Internet or online advertising? Is it just annoying banner ads, silly pop-ups, or spam emails that one receives? Yes, it is these and more. Any communication that is sent by a brand to its target audiences through the online media can be termed as online advertising or promotion – be it for the purpose of informing, persuading or reminding prospects about the brand promise. Most Internet communication is informational. However, today people are more

the things that they care about, at their convenience. Hence, the design and development of Internet communication takes importance and becomes the focus of this chapter. According to the Pitch-Madison Media Advertising Survey 2011, in India, the Internet has come of age since 2010 with ad revenues reaching Rs. 680 crore, growing at 50 per cent over 2009. And in 2011, Internet advertising was projected to clock a total revenue of `917 crore, at a growth rate of 35 per cent. Although online medium currently accounts for just 3 per cent of the total advertising spends, it is the fastest growing medium of all.4

14.2 TRADITIONAL TOOLS OF ONLINE COMMUNICATION Below are some of the oldest tools of online communication that are almost a staple diet of most conventional online marketing plans.

14.2.1 Websites An organization or a product’s website is one of the most basic and potent tools of marketing communication. A website can integrate various communication tools at the same time. It acts as

– consumers, employees, media, investors, government, etc. It acts as a sales promotions tool by communicating about and distributing promotional offers. For example, coupons can be printed from product websites and redeemed at retail outlets. Through promotional videos and articles that resemble advertorials, a website can also advertise to its audiences. In addition, links from the company’s banner ads on other sites, consumer blogs, community websites, etc., can all lead to the main website. A website is also the ultimate direct marketing medium that can customize offers and information and transact with consumers in real time. and objectives. For example, if the purpose of a website is to build brand awareness rather than lead to transactions like sales, it can even entertain consumers with innovative features like stories, online games, downloads, contests, promotions, discussion forums, etc. Individual brand websites, called microsites, with such features are quite common now. Many brands like Axe, Sunsilk, GM, HSBC, Whisper, etc. have rolled out their own community sites, for their target audiences. For example, www.beinggirl.co.in is an interactive online community site by Whisper for teen girls to

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share their growing-up joys and concerns. Others such as Sunsilk (www.sunsilkgangofgirls.com), Lays (www.whatstheprogram.com), Cadbury (www.meethamoments.com), Itch Guard (www.itchguard. com), Kellogg’s (www.chocos.co.in for building their brands in a fun and educative way. While this phenomenon is only picking up in India, it is already a rage in many countries. In 2008-09, Idea Cellular Abhishek Bachchan to celebrate champion ideas, which had the power to bring about people. With growing reach of digital media, a microsite, MyIdea.co.in, was developed to help Idea subscribers voice their ideas FIGURE 14.3 Online Initiatives for an Idea and participate in building opinions. Cellular compaign Within three weeks of the launch of the campaign, it had registered more than 2,200 MyIdeas (moderated) and Launch TVC with 5 Special Website A series of social relevance for each idea television commercials were launched around several powerful ideas, which conveyed socially relevant messages Social Media involving the use of mobile telephony to Extensive online Idea’s target audiences. Ideas such as campaign ‘walk when you talk,’ ‘use mobile, save Online contests, paper,’ ‘oongli cricket,’ ‘a world without games, caste,’ ‘education for all,’ etc. were downloads presented by the brand. Each idea was introduced with a television commercial Mobile media and then microsites were created for games, downloads each of them to boost online engagement (Figure 14.3). For example, sites such as walkwhenyoutalk.in, usemobilesavepaper.in, ideaoonglicricket.com, etc.

Website design and copywriting is an art and science that determines the performance of a website – how many visitors the website receives, how long they stay on the site, how many page views communication managers make is rehashing content created for other media and posting it on the Net. Copy created for the Net should have content and style that are both created for the Net

present only one idea per paragraph, etc. Writing copy for the online media is a lot different than writing conventional copy because people don’t read but scan for information on the Net by catching individual words or sentences. For instance, compare news given on NDTV’s website www.ndtv. com with a regular print newspaper and mark how content for both differs in style and organization. Internet copy is not meant for leisure reading. Its prime purpose is to dissipate information.

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Many marketing communication agencies have developed a separate online communication division that specializes in website design and copywriting. Smaller companies typically develop sites in-house with the help of a designer or website design software, and a content writer. In Chapter 19, we’ll learn more about measuring website performance and tracking results.

14.2.2 Search Engine Marketing When web surfers are not aware of your website or domain name, what is the most logical way Search Engine Marketing (SEM) is thus a set of strategies and tactics designed to increase the visibility of a website on Search Engine Result Pages (SERP) so that more users would visit the website. In other words, it is a way of marketing to search engines so that your website gets good ranking in the result listings of a particular search term. Getting priority listing in search engines is a matter of concern because the higher the listing on the SERP, the more clicks websites are likely to get. According to a click-through analysis of AOL data, the number 1 position received 42.3 per cent of all click-throughs, 4 times more than the number 2 position which got only 11.92 per cent of all click-throughs. By the time users reached the tenth listing, the number of click-throughs came down to 2.97 per cent. And on the next page, the eleventh position got an abysmal 0.66 per cent.6 Following is a brief discussion of some techniques for SEM:

14.2.2.1 Search Engine Optimization Search Engine Optimization (SEO) is the process of making a website more visible in search engines in an organic manner, i.e. by making the website more relevant to the searched keywords. It involves making changes to a site’s content, structure, coding and presentation. It is best to do SEO while the site is in its design stage rather than having to make complicated changes later on. A popular technique of optimizing a website for search engines is of using the right keywords in the content of your web pages. This is because one of the ways in which a search engine determines whether or not your web page is relevant to the keywords searched by users, is by matching those keywords with the web page content. Hence, a web marketer needs to understand his audience and target the correct search words and phrases on his web page in order to optimize the page. An idea of the popular keywords used by your target audience can be obtained by using specialized software that analyzes various related search terms for their popularity. For example, as can be seen in Figure 14.4, Google AdWords Keyword Tool not only helps in generating keywords but also reports their Google statistics, including search performance and seasonal trends. A popular technique used by Google for analyzing the content of websites is ‘Page Analysis’ through which Google analyzes the pages of all website in its content network. As it scans each page, Google picks out words it thinks are most relevant to the content on the page. It can tell headlines from footers and can pick on words concepts and related concepts roll up into entire categories. It is these concepts and keywords to categories is the product of years of development using leading machine learning computer science technology and it is continuously undergoing improvement.

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FIGURE 14.4

Excerpts of Google Keyword Tool results

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When communication managers have optimized their websites for search engines, they may submit websites through links on other sites.

14.2.2.2 Paid Inclusion two months, communication managers might want to get listed faster through a paid and guaranteed inclusion called PFI (Pay For Inclusion) or PPI (Pay Per Inclusion) being separated from the spam web pages that get submitted daily, getting search engines to display the current changes made to your website, not having to resubmit the web pages as long as you pay, etc. However, a paid inclusion does not necessarily guarantee a better ranking. And some popular search engines like Google do not even accept paid inclusions. Hence, SEO is still relevant.

14.2.2.3 Pay Per Click (PPC) Advertising PPC is a form of advertising in which your website’s listing will appear in a search engine’s result page for all the keywords searched for which you have bidden and in an order determined by how much you have bidden. For example, for your Mumbai real estate website, you may bid for keywords like Mumbai real estate, Mumbai properties, Mumbai apartments, Mumbai residences, Mumbai homes, etc. You bid a certain amount for each keyword. Whenever any user searches any of these keywords, your website listing will appear. All those advertisers who have bid higher than you will get a higher ranking and those who have bid lower, lower ranking. Payment is to be made only when users click on the link. The PPC advertising option can be tailored to any advertising budget and allows targeting prospects better. Advertisers can even choose a particular region for advertising, say, 25 kilometers of their engines are working on a mechanism to detect and avoid such frauds.

14.2.2.4 Web Networking Web networking exchange links. The more links that you have pointing to your website, the more visitors you will attract. Links to your websites can be from articles, directories, or related websites. For example, a blog on the Indian real estate market or a home loan website can provide links to your website on Mumbai real estate. And just how do you get people to link to your site? The most important

could be websites of property consultants, Vastu and contractors, local municipality websites, Mumbai community sites, etc. Another way is making submissions to web directories like Yahoo! Or Open Directory Project that list websites by categories and sub-categories after reviewing the websites for quality. Communication specialists can also write articles or blogs about real estate trends and developments and allow other sites to carry the articles for free if they include a link to the home site. Other methods of interlacing with online communities include making tagging and bookmarking easy, adding RSS (Really Simple Syndication) feeds on the website or adding a link to “Digg” the

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website. RSS is a feed reader format that aggregates “feeds” of news, blogs, articles, etc. from various sites that a user chooses and brings them all onto a single reader, much like Outlook Express mail reader. Providing your website’s content in feed reader friendly formats makes it easy for users to get your current website content periodically on their feed readers. Digg is popular community-based website where online users submit and vote content like news, videos, podcasts, etc. and act as third-party promoters. Content on Digg can be bookmarked, blogged, syndicated and shared. Social networking can also be done through websites that share photos and videos like Flickr and YouTube respectively.

14.2.3 Banners and Pop-Ups As in the real world where a banner is a strip of fabric used for out-of-home advertising, in the virtual world, a banner is a strip of web page space for onscreen ads. Banners vary in size and appearance but small rectangular advertisements on the top of web pages are the most common format. Most banner ads perform one basic function: if viewers click on them, the Internet browser takes users to the advertiser’s website. Banner advertisements have a number of advantages. Although clicks on a banner are few and although banners are not the best tool for branding, banners do provide online visibility and help in getting at least the brand name and message registered among viewers, more so when the banners are placed on relevant websites and locations. Many online brands like Classmates.com, Shaadi.com, etc. have built their brands mainly through banner advertising. Banners can also offer global reach. Unlike static outdoor banners, online banners can direct customers to a desired location – at a website or a virtual store, thus bringing them closer to transaction completion. Banners also offer good selectivity of target audiences. Advertisers can strategically place banners by choosing relevant websites based on the content of the site and the statistics of visitors visiting those sites. Further, like direct marketing, banners allow tracking of ad effectiveness.

and measure results in objective terms and in real-time. Although e-gurus have been proclaiming the death of banners for sometime now, well-designed banners do work. Consider the following example. Bluffmaster!, the Bollywood portal IndiaFM.com ran a banner on it. No matter how a surfer played, the banner informed each player of winning

IndiaFM.com revealing that the game prize was a bluff. A link in the email took the user to the Bluffmaster! page which had the option of playing this bluff on the user’s friends. A total of 30,000 participants interacted with this campaign and sent it to another 78,000 people.7

Banners can be made attractive by using rich media audio, video, or Java and Shockwave programming, or even interactive features like the following example of Domino’s Pizza banner.

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Domino’s introduced an interactive dynamic banner for its ‘Pay what you think’ offer that

and pay that sum which the viewer thought. Needless to say, the answer always turned out to be 150, the offer price for a meal for two from Domino’s interactivity of the banner added to the fun in the promotion.

highly annoying to viewers since they distract attention from the primary content and eat up bandwidth. Many online users are becoming banner servers can also block banners, pop-ups and images. Another disadvantage is the extremely low clickthrough rates (CTR) of banners, measuring less than 1per cent. A report by Google report pegged 2010 average U.S. banner CTR at 0.09 per cent compared to 0.1 per cent in 2009.8 However, the study also found that the format of the banner ad could increase effectiveness. For instance, Flash banners or half-page banners had higher CTR than image-based or vertical banners. In spite of the decreased effectiveness, the clutter in banner advertising is increasing as more and more marketers are placing multimedia banners to catch attention of online users. Finally, due to limited banner area, messages have to be short and full details cannot be given unless viewers click on banners. There are three main options to publishing banners: 1. Banner exchange programme:

not have large budgets for banner advertising campaigns. And for many content marketers, accepting banner advertisements on their websites is a great way of earning from their content. Although advantageous, banner exchange programmes make marketers give up control regarding what ads are posted on their site and where their banner gets posted. Also, some exchange programmes may require a marketer to post proportionately more number of banners on his site for every single posting of the marketer’s banner on partner sites. 2. Individual paid publishing: Marketers can rent real estate on individual websites for posting banners. While this method gives marketers a lot of control, it is highly time-consuming. Figure 14.5 shows the process of banner advertising on Amazon.com. FIGURE 14.5

The process of banner advertising on Amazon.com

Upload your product catalog and set your budget

Customers see your ads on Amazon.com

Customers click to product pages on your website

You are charged a Cost-Per-Click

Customers purchase products from your website

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3. Banner network paid publishing: Marketers can pay to banner networks like DoubleClick or Flycast that post banners on a number of publishing sites. The placement of a banner has a big impact on its visibility and hence, effectiveness. Two issues need to be considered while placing a banner: 1. Selection of the right websites: Banners should be placed on websites whose content and audience travel website and a banner cross-sells travel insurance, it is not changing the visitor’s train of thought but making the offer blend in. This is called contextual advertising – a system that scans websites for keywords and returns ads whose content matches the keywords. high relevance. Targeted banner placement can also be done on search engines that do not specialize in any particular type of content. Major search engines offer banner advertising targeted by keywords. Advertisers can buy keywords on search engines so that their ads are displayed when a user performs a particular search. Targeting helps increase the clicks on a banner since 2. Selection of the right positions on a web page: The cheapest position option is run-of-site (ROS) in which ads appear on any page or location of the target site. However, one of the best positions to situate a banner is at the top of the page, referred to as the top-fold of the web page, as the viewer is more likely to notice the banner while the page is downloading. Positions are also prime locations. There are several ad formats that are similar to banners, pop-ups being the oldest of them all. Pop-ups requested. Pop-up ad windows usually open in a scaled down size and only have maximize, minimize and close buttons. Pop-ups disturb a user’s browsing experience, have to be clicked individually to close the window, and at times overload a browser’s capacity. Hence, they should only be used in exceptional cases. Pop-unders are a slightly less irritating format since the new advertising window pops under the content window. Some web pages trigger pop-unders when users leave that page. Modern day browsers and software allow users to block all pop-up advertising. A special type of pop-up advertisement is the hover ad, a combination of pop-up and banner ads that does not scroll with the web page, but hovers over the page, either by obscuring it completely or by being translucent. Hover ads are superimposed over the web page becoming a part of the page itself and are often in a translucent layer. Interstitials are “in between” pages that appear on or between web pages before redirecting the user to the actual content page he has requested. They appear between two content pages and hence are also known as transition ads or intermercial ads. Interstitials are an intrusive way of displaying advertisements by interrupting sequential content and forcing the user to view them for about 10 seconds before the page is redirected. Most interstitials are in a rich media format, often played as Flash movies, and hence are as close to television advertising as Internet advertising has ever gotten. However, they are less annoying than traditional pop-ups. Always include a skip button on your interstitials so that users can avoid them if they want to. Interstitials are best used in between searches

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or downloads. For example, a message that says, “While we carry out the search you requested, please view this ad from our sponsor,” is likely to be less annoying than pop-ups that pop without notice. Like interstitials, a superstitial is also a similar ad format that runs in a different browser window in the dead time between web pages. It loads invisibly into a browser and plays when it is triggered by a downloading, it does not play. We’ll learn more about measuring banner and pop-up performance, and tracking results in Chapter 19.

14.2.4 Text Links A text link is the non-glamorous version of the banner. As the name suggests, it contains only a few words or a phrase as an advertisement and is devoid of other graphics and visuals. This “textual advertisement” appears as a link, which when clicked, directs the web surfer to the advertiser’s website or web page. Being only textual, a text link looks less like an advertisement and merges better with the content of the website it is advertised on. Hence, Internet users are less wary and more approving Text links can be placed on banner locations, embedded within an article, or even within an email. For example, in her email mailer on ‘Magic recipes with honey,’ Tarla Dalal might include a referenced link on the advertiser Dabur Honey. Such links better prepare web surfers for the merchant website interest in mind, thus increasing the likelihood of purchase. The key to designing effective text links is to keep them short, simple and informative, so that web surfers can immediately decide whether it pertains to their needs or not. Think of text links as captions or headlines of web copy that should quickly summarize what information they are going to reveal. Including company or product brand names in text links is usually not a good idea, unless a brand is sought primarily for the nametag it carries. For example, the text links of a marketer selling hotel rooms could look like the following: Group hotels, vacation resorts, etc.

14.2.5 Internet Direct Mail Internet direct mail refers to direct mail that can be delivered over the Net, more commonly over email. However, it is not just a simple digitization of a company’s physical direct mail. Internet direct mail has all the advantages of the online medium – it’s fast, interactive, easy to produce and use, less costly, and uniquely personal. However, the biggest disadvantage is that of clutter. How many junk emails do you receive in a day and how many of them do you delete without even opening? Hence, them, otherwise they had better not be sent.

14.2.6 Using Lists for Emailing Prospects As in any direct mail campaign, web marketers need email lists of prospects. Getting e-lists, which is the company’s house list. Many marketers are devising tactics to capture email addresses of their customers into their databases such as, providing online login accounts, encouraging customers to

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sign for email newsletters, etc. In FIGURE 14.6 An email list provided by Opt In Inc addition, there are e-list brokers Health and Fitness and other e-marketing service Opt-in Email List

Health and Fitness

For example, Opt In Inc is one such list provider that makes available lists by subscription source, hobbies and occupations. For example, there are 18,41,902 email addresses for a list on health and fitness enthusiasts (Figure 14.6). This list can be further segmented by the selects mentioned like gender, age, lifestyle, etc. Similarly, the Indian corporate database provider Dataguru makes available contact information of executives by region, industry sector, category function, job level, company revenue, number of employees, etc. (Figure 14.7). Before renting from any e-list provider, it is important to do a quick quality check regarding the provider. Find out what is the source of the list provider’s database. Response lists wherein users have responded to an email sent to them, registered at a particular website, or bought something, are better than compiled lists Similarly, opt-in lists (like those of Opt In Inc) wherein users actively check the option indicating they want to receive email information, are better than opt-out lists wherein users have to actively indicate their disinterest and uncheck the option indicating they want to receive email information. Some people may forget to opt-out and hence get automatically subscribed, although they may not have a serious interest in receiving the email. Hence, it is best to avoid compiled and opt-out lists altogether. Another check worth performing is regarding the recency, frequency and monetary value of the names on the list. Names on the list that have subscribed recently, performed an action like placing an order more frequently, and spent more money are considered to be better prospects than others. Further check if the list providers frequently update their lists by adding new names, updating old email addresses, cleaning bounce-back addresses, etc. Look for sellers who give a guarantee of mail delivery, upper-limit of bounce-back, or response rate. Some list providers replace email addresses that bounce back with newer ones when they have given a guarantee.

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Email list service by Dataguru.in

List providers do not usually reveal their lists to clients but send the clients’ emails themselves. This is to ensure that the lists are not abused, privacy of subscribers is protected and that they receive only “email address data appending service” in which they can add email addresses to prospects’ names and postal addresses. Other value-added services provided by e-list providers include personalization, graphic and multi-media enhancements, split-run tests, click-through reports, etc.

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While it is easy to send emails to a large group of prospects, people do not like to receive unsolicited email messages called spam, which are sent out in bulk to various recipients. More than 100 billion emails are sent every day. Unfortunately, only three out of a 100 emails are legitimate.9 Junk email has become an important part of the digital economy.10 Although tempting for many e-marketers, spamming is a risky affair. For one, the irritation against spamming has become so rampant that anti-spammers are a strong association that can launch technological or social retaliation against spamming marketers. For example, anti-spammers can launch email bombs or huge email messages that can clog or crash Internet servers, or heavily badmouth the e-marketer on online user groups and forums. In addition, Internet service providers can block emails from spamming marketers so that no emails from them would be delivered to any customers. And these days reporting spam messages for users has become as easy as hitting the ‘This is spam’ button on their email inboxes. Because people get irritated by the zillions of marketing messages they receive in their inboxes everyday, it is important to practice responsive marketing and to create promotions that do not violate Internet etiquette. Following are some tips to prevent recipient irritation: ∑ Only send email messages to people who have opted to receive them ∑ When collecting email addresses inform users of the marketing purposes for which their email addresses will be used ∑ Let people know how and where from you received their email addresses ∑ Make it easy for people to unsubscribe ∑ Honour all requests for removal of subscription diligently and immediately ∑ Get into customers’ whitelist – the opposite of blacklist – by asking them to put your email ID in their list of safe email senders. Use the same IP address every time to send emails. Refraining from spamming falls under the philosophy of permission marketing, a term marketers should not intrude into prospective customers’ private space but should ask for consent before they send out advertisements to prospects. Advocates of this concept believe that permission marketing

Sometimes marketers offer incentives to prospects to seek their permission. In effect, they are paying prospects for obtaining the right to communicate with them.

14.2.7 Creating Internet Direct Mailer As most Internet direct mails either land into prospects’ spam folders or are deleted as quickly as they are received, it is important to pay attention to their design. Creative for an Internet mail needs to take account of issues like message design and format, message size, copy of the advertising piece, delivery mechanism, response mechanism by the prospect, etc. All the copywriting rules for writing Headlines, subheads, bullet points, etc. can also be used to get attention. Copy should also include a “call to action” that should clearly state what the marketer wants the reader to do and how. Many readers decide whether or not to read an email based on the ‘from’ and ‘subject’ lines. The ‘from’ line should straightaway give the name of the sender organization rather than a cryptic name, whereas the ‘subject’ line should be attention grabbing and should quickly summarize the contents of the email. For example, “Air India offers bonus miles on Europe routes,” “HSBC Bank statement for Jan

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2012,” “50 new marketing jobs at Naukri.com,” etc. It is prudent to begin by stating the objective of the campaign so that copywriters can focus on the purpose and write accordingly. However, trying

Note the email sent to its opt-in Mileage Plus Account subscribers by United Airlines (Figure 14.8)

information or want to check their miles status, a link takes them to a customized web page. contact information and the unsubscribe option are given at the end of the email. Finally, the email is only 8KB in size. FIGURE 14.8

An emailer sent by United Airlines to its subscribers

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14.2.8 Distributing the Email Before going for a full rollout of the email campaign, it is always a good idea to test certain elements like the list, message, copy, offer, response mechanism, etc. For example, when a marketer is faced with choices of several lists, it is always a good idea to test a small sample and check which ones generate the maximum pull. Similarly, split-run tests offered by list providers can help test different versions of copy, offer, etc. Along with copy and design tests, it is also a good idea to do a small test or an online portal like SpamAssassin. Once your email is ready, the next task is to distribute to predetermined lists. One way to do this is to broadcast emails through a software programme called list server. A list server is a programme that handles subscription requests for a mailing list and distributes new messages, newsletters, or other postings from the list’s members to the entire list of subscribers as scheduled. Through list button, or delete themselves by clicking on a link or sending a standard reply email. List servers also automatically delete bad addresses from the list. In addition, they can send automated messages to users when they subscribe, unsubscribe, respond to an offer, etc. The campaign manager has to only monitor these activities through password-protected access. There are also email-marketing services such as those offered by Mail Chimp that can design email campaigns, share them on social networks, integrate with other web services, manage subscribers, and track results. Alternatively, the entire email broadcasting process can be outsourced to the list brokers from whom e-lists are rented. Companies can still direct user responses to their inboxes. If organizations are mailing repeatedly to their mailing lists, they should ideally space out the mailings at a fortnightly or monthly frequency. Although there are no established theories to support

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it, some marketers have found middle of the week to be the best period to email their prospects. This they are keen to dispose of emails fast. When creating and distributing emails, remember that a series of emails is always better than a one-time approach, since the former creates more closeness and bonding with subscribers. Note in Figure 14.9 Tarla Dalal’s typically spaced out at fortnightly intervals, and include strong offers in terms of links with free recipes, free Nirali Kadhai regular mailings Tarla Dalal reaches out to her subscribers with offers for membership, addressing of the letter, and the easy option to unsubscribe at the end of the letter. For Tarla Dalal’s e-list.

One of the biggest advantages of online mailings is that responses can be measured in real time. We’ll learn more about measuring prospect responses and gauging the performance of e-lists in Chapter 19. FIGURE 14.9

Tarla Dalal’s emailer to her subscribers

14.3 SOCIAL MEDIA: CHANGING THE RULES OF COMMUNICATION The rules of communication are changing with the advent of the social web – an online place where people with common interests can gather to share information, thoughts, views and opinions.

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Social media is a new world of mostly unpaid media created by individuals or enterprises on the Net using the technologies of Web 2.0, to facilitate interactive dialogue, and allow the creation and exchange of user-generated content. In other words, social media is sociology plus technology that connects interactive, conversational and participatory users online. Web 2.0 includes web applications that enable dialogue, socialization and content-creation by consumers in a virtual world, such as blogs, wikis, social networking sites, photo- and video-sharing sites, instant messaging, social bookmarking, etc. While the age of Web 1.0 was an online publishing era, which provided web pages with hyperlinks, the Web 2.0 era is one of participation, allowing consumers of the Net to be also co-creators of content. Web 2.0 is a revolution that is bringing together the small contributions of millions of people and making them matter. The importance of user-generated content is so high in social media that in 2006 TIME magazine named their person of the year as “You.” TIME wrote in its cover story, “…for seizing the reins of the global media, for founding and framing the new digital democracy, for working for nothing and beating the pros at their own game, TIME’s Person of the Year for 2006 is YOU.”11 According to Kaplan and Haenlein there are six different types of social media: collaborative projects (e.g. Wikipedia), blogs and microblogs (e.g. Twitter), content communities (e.g. YouTube), social networking sites (e.g. Facebook), virtual game worlds (e.g. World of Warcraft) and virtual social worlds (e.g. Second Life).12 These platforms provide the ability to monitor and analyze social conversations, while creating effective response and content management mechanisms to increase customer engagement, and ultimately sales. Figure 14.10 shows the most widely used social marketing platforms by brands in 2011.13 FIGURE 14.10 Top Social Platforms for Brands 88% 6%

Facebook Twitter

83% 8%

Linkedln

76% 10%

Blogs

57%

YouTube

28% 66%

Forums

29%

Flickr

19%

30% 11%

SlideShare

22% 16%

Foursquare

23%

Tumblr

18%

Currently using Not currently using, but plan to in 2012 n=319

10%

15% 10% 0

20

40

60

80

100

Source: The State of Social Media Marketing, Awareness Inc., January 2012

Being ubiquitously accessible and scalable, social media has dramatically changed the way organizations, communities, and individuals communicate. Marketers will also have to learn new ways of communicating with their audiences in a digital environment. Early Web advertisers saw

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the medium as just another advertising channel, treating it like a magazine ad equipped with sound television was not simply radio with pictures, the digital media is not just a newspaper or television with interactive features.14 Instead of broadcasting messages to consumers who are no longer passive listeners, marketers will have to nurture communities by participating in social networks, and by organizing, engaging, and encouraging them. Instead of talking to customers, they will need to talk with them. Marketers, who merely see the social media as an extension of the traditional media on a digital platform, will be shocked at how quickly their audiences abandon them. Table 14.1 lists some of the key differences between traditional and social media. TABLE 14.1

Traditional vs. Social Media

Salient characteristics Communication messages Communication style Audience

Traditional Media Pushed Broadcast Content readers/listeners/viewers

Content Advertiser control

Professional High due to autocracy

Audience segmentation Spontaneity Key factor for success Measure of brand equity

Primarily by demographics Typically long lead times Brand reception Brand recall

Social Media Pulled Interactive Readers/listeners/viewers + publishers Professional + user-generated Low due to democracy, transparency, and consumer participation Primarily by behaviour Instantaneous, almost real-time Brand engagement Brand recommendation

In spite of the differences between traditional and social media, they are not either-or choices, but can be leveraged together to get more out of the advertising rupee. Among the many advantages of exploiting social media, marketers are discovering that social media can give longevity to their traditional media campaigns. When the ‘big idea’ of a campaign is engaging, action-oriented, has a social context, or can provoke debates, rumours, jokes, etc., it can be extended online for years after its birth, as illustrated by the Dove Evolution campaign below. The example also illustrates that the advertising business is driven by ideas, not media. If an idea is strong, it can exist in many different media.

CASE IN POINT Dove Gets Nine Lives with Social Media15 In 2003, Unilever had launched the ‘Dove Campaign for Real Beauty’ for its health and beauty products brand Dove, to celebrate the normal physical variations in women and campaign had been hugely successful generating more than 30 times the paid-for media

of the task of ‘Evolution’ was to spread awareness about the self-esteem workshops that Dove was holding across Canada.

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At the centre of the campaign was a 75-second viral video produced by the agency O&M in Canada. how a pretty but ordinary girl was transformed into a strikingly beautiful billboard model (Figure 14.11). makeup, hairstyling, and photoshopping covering the

video ended with the punch line, “No wonder our perception of beauty is distorted,” and

was uploaded to YouTube, MySpace and Google Video, and was later broadcast as a Middle East.

such as The Viral Chart. Dove’s and news networks, with most of them expressing support for the campaign’s message of “real beauty.” ‘Evolution’ was particularly popular with critics in the ad industry and Dove’s self-esteem workshops and over workshops. Following ‘Evolution’s’ release, Dove’s overall sales in the period rose by 5.8 clocking hits on YouTube one more life to an already existing ‘big idea’ of ‘real beauty,’ but on non-traditional media. impact of viral advertising surpassed the power of traditional media for Dove. FIGURE 14.11

A shot of the viral video ‘Evolution’ by Dove

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In India too, brands have been using the social media to extend their traditional media campaigns. In 2008, Tata Tea’s campaign to stir up the youth began with a simple idea. ‘We need

‘social awakening.’ And thus, the ‘Jaago Re’ campaign was born, which communicated that merely waking up was not enough. “Har subah sirf utho mat. Jaago Re!” ‘Jaago Re’ has taken up various causes one after the other – supporting football, a sport neglected

the big idea through television and then take it online for spurring social interaction. For

the 35 target cities) to locate the visitor’s house address on his city map through a successful in getting over six lakh Indians to sign online.

14.3.1 Social Media: An Enabler of Viral Marketing As indicated by the example of Dove, social media is great for generating viral advertising. Like traditional viral marketing, Internet virals also rely on spreading the buzz online. Viral advertising refers to people passing on interesting and entertaining promotional content, generally sponsored by a brand to create awareness, build equity or get publicity. Viral advertisements can be in the form of funny video clips, advergames FIGURE 14.12 A viral by MakeMyTrip.com (discussed later), text links, images, email messages, blog messages, messenger messages, etc. that have highly entertaining or interesting content. Such “virals” can be found on brand websites, popular social networking sites, online banners, etc. and from there they get passed on from user to user. Virals are popular because of their low cost (mostly only in creating the viral), fast and immediate response, user involvement and good targeting. Virals rely on a word-of-mouth strategy, and encourage users to spread them by “telling their friends” as in Figure 14.12. Thus, they do not require constant control by the marketer. Virals are especially useful for short-term promotions.

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MakeMyTrip.com has successfully used virals for establishing the brand as providing the lowest airfares and promoting short-term offers. Using mythological characters from Ramayan and popular folklore characters like village dacoits, it had created four viral video campaigns that entertained and humoured the viewers. forwarded to over 100,000 people and strongly established the brand’s promise of lowest airfares. Its ‘Chalo Lanka’ viral generated 500 queries and sold 75 packages to 17 Another of its ‘Dussera’ viral, was 2 per cent.18 Further, MakeMyTrip.com’s ‘Chidiya udi’ Gold for Interactive Digital Marketing Innovation.

‘Ravana’

14.3.2 The Coming of Social Media With 50+ million active social media users in India, it is hardly a medium that marketers can ignore. According to ComScore, a research agency tracking global Internet activities, in India, more than 68 per cent of the online population visits social networking sites and the average number of visits per visitor per month is 13.19 According to Nielsen, Indians spend more time on social media than on any other activity on the Internet. In fact, 80 per cent spend more than 15 minutes per day on social media every day. And social media usage on mobile phones is expected to exceed those accessing similar sites on personal computers in 2012.20 Search and social networking sites attracted the maximum visitors in 2010 (Figure 14.13).21 Of the total revenue share of Internet advertising, social networking sites contribute to over 5 per cent. However, only about 25 per cent marketers are spending over 10 per cent of their marketing budget on social media.22 Globally, social marketing is entering a stage of maturity and smart businesses are embracing it as part of their companies’ DNA. Companies have learnt that a siloed approach to social marketing does not work, and that new organizational structures, processes and technology are essential in meeting the needs of audiences. Hence, the trailblazers in their respective areas are budgeting for strong social media management platforms and incorporating them into their overall business and marketing plans. However, monetary resources for social media are not easily obtained. 57 per cent of marketers are relying solely on human resources to execute social media campaigns according to a State of Social Marketing survey conducted by Awareness Inc., a popular social marketing software company. The survey comprised of 320 marketers, of which 50 per cent were from B2B companies. From the same survey, Figure 14.14 depicts the top areas of social marketing investment for 2012, whereas Figure 14.15 are facing in advancing their social media campaigns.23

14.3.3 The Social Media Roadmap Transition from traditional media to new media requires a fundamental shift in the marketing mindset. The following steps broadly outline how enterprises can execute social media campaigns. 1. Enroll community members: Social media is all about building a dialogue with your brands’ community. However, the right community for your brand may not be readily found on the

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527

528

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FIGURE 14.14

Top areas of social marketing investment for 2012

80

70

60

Increased presence across social media platforms Increased frequency of content publishing

70%

More robust social marketing management

59%

More robust social media monitoring

50% 50 45%

More social media presence n = 319 Others

40 33% 30

20

10

6%

0 Source: The State of Social Media Marketing, Awareness Inc., January 2012

FIGURE 14.15

Challenges faced by social media marketers 77%

Lack of sufficient resources

Measuring ROI

58%

Managing and growing social presence

42%

Integrating social with lead gen and sales

37%

Integrating social with the rest of our marketing

34%

Monitoring social media

33%

Managing publishing of social content across platforms

31%

Social media training

22% 0

10

20

30

n=319 40

50

60

70

80

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Net, but will have to be created by recruiting and shaping Netizens. Organizations need to observe the social web and look for who are talking, what they are talking about, where they hang out, etc. Next, marketers need to enlist a core group of people who can be a part of the brand’s community, promote the brand, provide feedback, etc. Not all Netizens are alike; they differ in their behaviours and motives for going online – meeting people, has arrived at the Social Technographics Ladder, which divides the social ecosystem into six kinds of consumers (Figure 14.16). An understanding of these groups helps guide marketers in directing their recruitment efforts and planning their communication strategies. This is important because marketers cannot simply build an online presence such as a corporate blog, Facebook page or Twitter account and wait for customers to come. Many businesses think that if they have created and published the links to their social sites, then people will come. However, this is not true. Marketers will need to qualify prospects, and “send them invitations” to visit their social site, much as they do in the physical world. Recruitment is often done through FIGURE 14.16 The Social TechnographicsTM Ladder

Taken together, these groups make up the ecosystem that forms the groundswell By examining how they are represented in any subgroup. strategists can determine which sorts of strategies make sense to reach their customers.

Croators

Critics

Collectors

Joiners

Spectators

Inactives

Publish a blog Publish your own Web pages Upload video you created Upload audio/music you created Write articles or stories and post them Post ratings/reviews of products/services Comment on someone else's blog Contribute to online forums Contribute to edit articles in a wiki Use RSS feeds Add "tags" to Web pages or photos "Vote" for Web sites online Maintain profile on a social networking site Visit social networking sites Read blogs Watch video from other users Listen to podcasts Read online forums Read customer ratings/reviews None of the above FORRESTER Groups include people participating in at least one of the activities monthly

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banner announcements, email invites, popular blogs, or purely traditional media such as a TVC. The end-of-chapter case study on Nike+ discusses how Nike brought runners on the Web for online interaction through the creation of a new sports kit. 2. Evaluate social media tools: Social media tools or platforms come in various shapes and sizes. these key tools are discussed in the succeeding section. Marketers need not use all these tools just because they are readily available and everyone’s using them, but need to identify which ones will be relevant based on their brand’s objectives, consumer characteristics and features offered by each tool. Is your audience more interested in listening to things than reading? Does it have a lot of questions and answers? Kietzmann et al present a honeycomb framework blocks (identity, conversations, sharing, presence, relationships, reputation, and groups). These building blocks help understand the engagement needs of the social media audience. For instance, LinkedIn users care mostly about identity, reputation and relationships, whereas YouTube’s primary building blocks are sharing, conversations, groups and reputation.24 Many companies devise their private social services that use these seven functional building blocks in varying degrees for their brands, instead of using existing social media containers such as Facebook or Google+. The new Web is also “fragmenting”25 and moving beyond desktop computers due to the widespread use of portable Web-ready devices, such as mobile phones. 3. Engage communities: After a well-planned enrollment drive, consumers are likely to visit a community, they will be disappointed and will move on. People aren’t impressed with ghost sites; they want interaction, useful information, and entertainment from these sites. In India, presence on social media sites is still largely campaign dependent, whereas it has to be thought through as a 24x7 approach. Real relationship with a brand is built when communities engage with it. When there is relevant content that can get people coming, talking, questioning, sharing, promoting, etc. engagement or participation automatically happens. For instance, in the case of Dove’s garnered but for its great content. Engagement is typically determined by how a consumer interacts on the brand page: visiting, downloading and using an app on a page; sharing, commenting and “liking” updates; etc. In a study conducted by Nielsen, it was found that company interaction and brand aspiration were the two most important drivers of social media engagement. Other key factors of engagement success included offering free giveaways, posting lively discussions and updates about the brand, having a “hip” brand, and being “liked” by friends.26 Hence, engagement is not about pushing irrelevant links or loud advertising, but about adding value to your network. For instance, Apple Inc. is extremely strong in creating an ongoing conversation around its brands, especially regarding product enhancement and user experience. Do you want the user experience to be faster? Do you want to watch television shows on iPhone? Apple is constantly spurring dialogues with its users.

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CASE IN POINT BharatMatrimony “Engages” Bachelors BharatMatrimony, India’s number one online matrimonial site with over 20 million registered users worldwide, has launched a quirky new engagement campaign called ‘Biwi Ho Toh Aisi’ where users who visit the website (www.biwihotohaisi.com) can choose a virtual wife, who will then interact with them over the phone through the day to make it bachelors, and create awareness and preference for BharatMatrimony. Youngsters in site has decided to give these confused bachelors some virtual clarity. Men can choose

give such as ‘wake up calls,’ ‘something important call’ in the afternoon, or even a call when he wants the calls. Once he’s sampled all his virtual wives, the user could also

BharatMatrimony has launched a new app for Facebook, which allows users to play matchmaker for their friends as well. Instead of checking their own matches, users can choose to enable the Matrimony Master app through which they can choose to have a Facebook friend receive suggested matches, or even go over the choices themselves to BharatMatrimony also has its own Twitter Twitter the person they are about to connect with. ‘Biwi Ho Toh Aisi’ campaign has received thousands of “forwards” and a lot of buzz on multiple platforms worldwide, including Korean forums. It has been featured in several print and electronic publications. BharatMatrimony has also been declared winner of the 27

Adding a cool tool to your community may be fun, but it’s not the tool that matters. If you don’t give users the value they want, it doesn’t matter whether you add a wiki, blog or new content, they will spread the word and the critical mass necessary for social media momentum will be reached. Critical mass is the key to social media success. The true power of Twitter doesn’t truly reveal itself until you have 100 to 200 followers.28 It is also important to note that in the social world, communication is not only about creating engaging content, but also about creating compelling environments to which people are attracted. 4. Measure involvement: To determine if a brand’s community is involved enough, marketers need to review the brand objectives that they started with. Why is the brand using social media? To generate awareness, generate leads, maximize reach, build relations with digital

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media, improve customer relationships, induce product trial, or increase brand preference? Objectives help determine what the most relevant metrics are. For instance, if the objective is awareness generation, marketers may want to measure time spent on the site; if the objective is lead generation, conversion rates are a good metric; if a brand wants to maximize reach, measuring unique visitors in a period is a good idea; and if enhancing digital media relations is the goal, quantity and quality of online coverage should be measured. Globally, the top measures of social media success are associated with social presence and reach, as depicted in Figure 14.17. Fewer brands track social media in terms of new leads (38 per cent) and sales (26 per cent) for the enterprise, but those numbers are likely to grow in the coming year, according to Awareness.29 Social media give marketers an opportunity for aggregate such as network structure, and the location and time of shared posts. This helps them better understand consumer behaviour and social perceptions about events of interest. However, as with traditional media, marketers’ problems don’t end by determining what to measure. How to measure and how to interpret results are even bigger challenges. We’ll learn more about measurement in Chapter 19. FIGURE 14.17 Top Social Marketing ROI Metrics Social presence: number of followers and fans

76% 67%

Traffic to website Social mentions across platforms

53% 40%

Share of social conversations

38%

Lead Generation 26%

Sales 8%

Other 0

10

n=297 20

30

40

50

60

70

80

Source: The State of Social Media Marketing, Awareness Inc., January 2012

14.3.4 Popular Tools of Social Media 14.3.4.1 Blogs and Community Forums In chapter one we discussed how blogs and community forums like e-groups are used as informal media to promote (or demote) products. Blog, short for web log, “is a personal journal published on the World Wide Web consisting of discrete entries called ‘posts,’ typically displayed in reverse 30 Blogs can be privately created and maintained by a single individual or a group of people who want to share their thoughts, and

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are often based on a single theme or subject. Blogs can also be created for business purposes. Corporate blogs are used internally to enhance the communication in a corporation or externally for marketing, branding or public relations purposes. For instance, the Google blog presents insights from “Googlers” into its products, technology and the Google as Amitabh Bachchan, Aamir Khan, Shobhaa De, LK Advani, etc., have also started their own blogs, interacting with their fans, and using blogs as a publicity tool. In the US Presidential elections of 2004, blogs played an important role in campaigning. Most good quality blogs are updated frequently and are interactive, allowing visitors to leave comments and messages. The ability of readers to leave comments in an interactive format is an important characteristic of blogs. Thus, unlike a website, blogs are more dynamic where marketers establish a dialogue with readers and share news, views, opinions and knowledge in a multimedia format, and in an informal way. In India alone, it is estimated that there are 20 lakh active blogs, growing exponentially as this is being written.31 Blogs are also a place where companies can expect customers to open their hearts and give honest reviews.32 Through blogs, companies can learn what consumers have to say about their products, test new products, and even build internal brands. For example, Microsoft tests its products through blogs created by its employees, ING-Vysya allows customers to choose their insurance agents through its blog, whereas CNN-IBN connects with its news channel viewers through blogs wherein employees talk about various issues ranging from politics to daily life.33 blogs has also given rise to “fake blogs” where blogs are created merely as a marketing tool to promote a product, and a majority of the posts are “sponsored.” Consumer-generated advertising, i.e. sponsored content on consumer-generated media such as blogs or forums, is also a relatively new and controversial development, and many skeptics believe that any form of commercial activity on blogs will destroy the blogosphere’s credibility. E-groups are electronic discussion forums for communities with a common interest – pottery, business, health, etc. that hold immense potential for marketing products. The key to remember while communicating on blogs, e-groups, etc. is to keep the discussions casual, honest, short and in a vernacular language. Also, frequent updates are a must to keep the momentum going. The following Management Focus feature illustrates the growing popularity of blogs and e-groups in marketing communication.

MANAGEMENT FOCUS

Communicating Through Communities www.shopastrology.com (name

in a public e-group. Blogs and e-groups are becoming excellent communication tools for due to their non-commercial nature and the freedom for censor-less personal publishing.

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offer, distribute a savings coupon and much more. For example, Nokia photography community and asked them to use its 3650 Camera Cell Phone went ahead as blog authors did write about the phone’s features. Not only can communication experts promote products themselves, but can also get occasionally lucky to be endorsed by customers. And positive accounts from customers lend much more credibility than a company’s own advertisements. According to a opinions a powerful advertising tool.35 Besides, online communities reach extremely focused target audiences. And because of the interactive nature of their communication, marketers can get critical product reviews and feedback. For instance, MouthShut.com is a public information exchange where visitors post reviews about anything – from a restaurant menu to an MP3 player. Mouthshut.com gets 80,000 browsers everyday and 15 million page views per month. Check out how on Mouthshut.com users vent out their dissatisfaction for various service and how, thanks to the negative publicity that garners for the service provider, immediate action is taken. Although monitoring communities can Above all, e-group promotions have a low to minimal cost component attached. All that marketers need to do is post candid and timely information about their products on related e-groups from time to time and listen to the conversations on these groups. And emails. Only willing members post and read, which means promoters reach an audience that’s enthusiastic and in the ready-to-act stage. Another advantage is that community discussions can be used to measure responses to online ads and monitor ROI. Finally, online communities can be a great place to test market a product with a limited audience. Marketers are more likely to get valuable information since dedicated communities are “Brands such as Weight Watchers, Lego, Apple, TiVo and Harley Davidson have their own dedicated blogs, created not by their brand builders, but by their fans.”37 is the ultimate in blogging since such blogs have more credibility than corporate blogs. reviews or break it with negative write-ups. in active blogging while 39per cent are barely aware of it.” And only a quarter of these bloggers are female. But the silver lining is that with 90per cent bloggers spending up to 5 hours a week blogging, online media will be increasingly incorporated into guerrilla and viral marketing campaigns.38

14.3.4.2 Micro-Blogs A new development in the area of blogging is micro-blogging – broadcasting short messages through a service to other subscribers of that service. Micro-blogging, which allows one-to-many broadcast, has revolutionized the way information is created and consumed – in the form of snippets that are updated frequently. Multimedia can be used and photos, audio clips, video links, etc. can

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be published, either to be viewed by anyone or by the blogger’s chosen group. There are alternative ways of publishing entries besides the web-based interface, such as through text messaging, instant messaging, email, or digital audio. Commercial microblogs also exist, to promote websites, products, etc. and to enhance interactivity within an organization. Companies have discovered numerous ways in which micro-blogging can add value to their businesses – from customer service to prospecting to branding and awareness generation. The most popular micro-blogging service provider is Twitter, which enables its subscribers to send and read other users’ updates known as “tweets,” which are text-based posts of up to 140 characters in length. Twitter is also being used for a wide range of purposes, from simple networking to community building to running weekly contests to alerting deal-prone consumers about new promotional offers. According to a MarketingProfs survey conducted in 2009, when companies use Twitter, they engage in branding and awareness activities 84per cent of the times, whereas they use it for selling only 20per cent of the times.39 Twitter into their business operations. Marketers everywhere sat up and took notice in December 2008 when Dell Outlet (@delloutlet on Twitter) announced that it had generated more than US$ 3 million in revenue by posting e-commerce links to its Twitter feed, as described in the Case in Point below.

CASE IN POINT Twitter Hikes Up Revenues for Dell40 Dell Outlet, Dell, carried refurbished equipment and other inventory that it needed to sell quickly. For Dell Outlet,

of communication or an ad campaign weren’t an option. Instead, the outlet relied on online communication tools such as email marketing, paid search results, search-engine In 2007, one of the company employees discovered Twitter and realized that it could prove to be a new cost-effective way to reach people for the Dell unit. Dell Outlet initially

instead of using Twitter it to interact with customers and raise awareness about the brand. Although Dell Outlet did post offers, and sometimes deals that were exclusive to Twitter, it also engaged in a lot of brand building activities. It tweeted only a few times a week so as not to spam its followers, tweeted information that was relevant and interesting to its target audience, easy feat given that Dell Twitter. Ever since, Dell has been using Twitter for the following activities: ∑ Coupon Disbursement: Dell’s deal announcements on Twitter are very popular, and the coupons get re-tweeted by followers and reposted by coupon sites, which in turn spread the brand name and also drive sales.

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∑ Customer Service: Dell answers questions and solves problems by engaging with its audience. It has more than 80 Dell-branded Twitter accounts, such as @dellhomeoffers for new system deals. It also encourages employees to tweet, Dell engages in customer service exchanges on its private channel on Twitter. In this case, a distinct advantage of Twitter over Dell’s corporate website is that most customers do not visit the website regularly, but keep getting regular updates and answers from Dell when they follow it on Twitter. ∑ Crowdsourcing: Dell “crowdsources” its Twitter network for ideas on products, services, processes, customer satisfaction, etc. ∑ Networking: Dell seamlessly integrates its network of Twitter followers with its Facebook fans for its Facebook company page. It converts many Twitter followers to Facebook fans and vice versa. ∑ Brand Communication: Dell also uses Twitter search to reach out to people who are twittering about Dell. Its research also shows that thanks to Twitter, the awareness of Dell Outlet has grown manifold. Using these strategies and its Twitter posts, Dell Outlet million in revenue in 2008 alone, making it one of the earliest success stories in the history of micro-blogging.

Even a classic soda brand such as Pepsi has been able to successfully use Twitter to collaborate and build relationships with customers. For instance, after the Spring 2009 launch of Pepsi Throwback in the US, an initiative that involved packaging with a retro look and real-sugar sweeteners, the company was able to collect quick reactions on Twitter. Pepsi also found that asking questions worked well on Twitter. Even a simple question such as “How many Pepsis do you drink a day?” generated a lot of Pepsi in the US during the 1980s, died suddenly in June 2009, the company immediately posted a tribute to the star on Twitter, thereby engaging with Jackson and Pepsi’s fans. In India too, companies are realizing the importance of micro-blogging. Recently, Tata Sky Actve Twitter interaction in a banner format. It created a six-hour roadblock on the leading portal MSN India, and launched its new mascot, the puppet. The Actve puppet helped the consumer cook, teach, play and shop through interactive services. Anyone who visited the MSN site in those hours could tweet with Actve through the banner itself. In the six-hour period, Actve received three tweets per minute and interacted with several users. There were 1,500 tweets exchanged during the period. Total impressions of the banner crossed 13 lakh and the landing page received over 15,000 views. It helped Tata Sky realize that there was a potential for Actve to have a constant presence on social media.41 However, micro-blogging is still in its nascent stage. According to a study conducted by Sysomos Inc., a leading social media analytics company, 5 per cent of Twitter users account for 75 per cent of all activity and 85 per cent of all Twitter users post less than one update per day. However, the medium is extremely popular with social media marketers. The Sysomos study shows that the group of marketers on Twitter is much more active than general user population, with 15 per cent following

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more than 2,000 people. This is in sharp contrast to only 0.29 per cent of overall Twitter users who follow more than 2,000 people.42

14.3.4.3 Social Networking Sites Social networks are places where people with common interests or objectives come together to interact, express themselves, share experiences, and build relationships. Most social networks require offered by the network. As members, they can add other users as friends, exchange messages, share games, join interest groups, or integrate deeper into the social experience by building or using “apps.” The content of Social Networking Sites (SNSs) is mainly user-generated rather than produced by professionals. Today, there are hundreds of SNSs, with various technological functionalities, supporting a wide range of interests and practices. Some of the popular social networks are Facebook, MySpace, Orkut, YouTube, Flickr, LinkedIn, Google+, etc. Facebook is the most popular of them all, as indicated by Figure 14.10. As of September 2011, Facebook had more than 800 million active users.43 It tops Google for 44 Most social networks are open to businesses to build their presence, promote their products, interact with their customers, and create an engaging community. For instance, Huggies, a brand of baby diapers from Kimberly-Clark, has teamed up with ‘Circle of Moms,’ a large community of moms on Facebook, with an active membership of nearly 1.5 million users. The integration brings Huggies’ ‘Enjoy the Ride’ program to members of ‘Circle of Moms,’ with special rewards codes, contests, expert advice, doctor Companies are also extensively using social networks to hire the right people, target prospects with particular characteristics, spur word-of-mouth or viral marketing, improve workplace collaboration, Figure 14.18a shows the kind of targeting possible using Facebook’s display advertising feature for a nutraceutical company. The mock display ad in Figure 14.18b would be displayed on the Facebook Even websites can be integrated with branded SNS applications that can become viral and drive engagement. For instance, as shown in Figure 14.19, Levi’s has integrated Facebook’s “like” button on its website enabling it to reach its users’ friends. When users “like” a jeans on Levi’s site, their preference is shared on their Facebook stream, acting as word-of-mouth recommendation for their friends. The emergence of SNSs may very well spell the doom of websites in the near future. There was a time when having a website address was critical to a brand, and its URL was promoted in all marketing efforts. But with the emergence of the social web and opportunities to engage with fans or customers elsewhere, the scenario is changing, at least globally. Business cards endorsing Twitter usernames as opposed to domain names, bands promoting their MySpace even ad campaigns directing people to social sites rather than branded websites are commonplace. Although there are a few risks of building a campaign that directs users to a social media site versus That is because SNSs have an audience that keeps coming back to them. On the other hand, what’s the last memorable corporate website you visited more than once?45

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FIGURE 14.18 (a-b)

Advertising through Facebook

Buy 100% Pure Fiber Prods

Healthy life Nutraceutics offers fiber for weight management blah blah blah Chris likes this ad. Like FIGURE 14.19

Integrating Levi’s website with a Facebook application

Although advertising through social networks has received a lot of attention lately, it is a tough nut to crack because of increasing clutter, growing audience fragmentation, and decreasing attention span of consumers. However, that is not to say that innovative ad campaigns do not work. The example of Volkswagen is a Case in Point.

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CASE IN POINT Volkswagen Personalizes for the Social Web46 In 2009, Volkswagen USA

of owning a Volkswagen Facebook where they experienced information and messaging surrounding the campaign and other brand initiatives. When interested people visited VW’s Facebook VW for them (Figure 14.20) vehicles from the stable of available Volkswagens and Bus – characters from VW’s

Max VW matches.

VW model had been set up by fans to share photos, videos, comments, and stories of their VWs with one on VW’s seamless user experience. It also generated a lot of viral buzz by encouraging visitors to pass along their results to friends and prod them into trying the app themselves. VW automatically tailored the application to each individual user, making it more relevant to VW got enthusiasts and current owners to VW also extended the campaign by doing a similar personalization using Twitter. It scanned the Twitter feeds of interested users and made a VW recommendation based banner and also advertised on branded communities within Facebook, Pandora, YouTube and Xbox Live. FIGURE 14.20

A novel Facebook application by Volkswagen

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Advertising and Integrated Marketing Communications

14.4. ADVERTISING THROUGH ONLINE GAMES AND VIRTUAL WORLDS The industry of video games that are played on the Internet is thriving. Called online games or browser games (since they use a web browser platform), these games have highly involved and loyal audiences. Keen advertisers haven’t failed to take note of them. With adblock programmes that

product, a practice known as advergaming. Marketers have also started incorporating advertisements into games not created specially for their brands either through a display in the background, as breaktime commercials shown when a game loads, or by integrating them deeply within the game so that the advertised product is necessary to complete a part of the game. Brand advertisement done in-game advertising, whereas the practice of deeply integrating advertised products within the game play in a non-advertising format, is known as product placement. Product placement in online games is most commonly found in sports titles and simulation games. Whatever the creative format used, brand communication can be done with online games through virtual billboards in a virtual sports stadium, through conversations between game characters, as branded game tools, or as brand-related information that appears as the game story progresses. The core idea of online video games is that when consumers interact with a brand in an entertaining mode, they are less likely to get distressed by the commercial message. With the growth of the Internet, online games have proliferated, and are becoming an integral part of media planning. Due to broadening of game topics and interest in gaming, gamers are not just teenage males, but users of all ages, backgrounds, and interests. As long as a game delivers a fun gamers don’t mind in-game ads as long as they’re relevant and conveniently placed.47 Although the effectiveness of such advertising is debated by some scholars, it has been found through several brand-impact studies that associating a brand with the fun of gaming is known to lift brand metrics such as brand awareness, message association, and purchase intent (Table 14.2). After playing a game, brand attributes with it.48 One of the reasons for this is that consumers are more engaged and less likely to multitask when playing games, as opposed to consuming ads in traditional media. For TABLE 14.2

Online gaming can lift brand metrics

Key Metric

% Increase

Brand Familiarity

+64%

Brand Rating

+37%

Purchase Consideration

+41%

Ad Recall

+41%

Ad Rating

+69%

Source: Nielsen Entertainment executed study for Massive in January 2007. Data from surveys with 600+ gamers in North America who played Need for Speed Carbon on Xbox 360 & PC platforms. Game published by Electronic Arts.

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instance, the kids’ toothpaste brand Pepsodent presents three interactive games on its Facebook page (Figure 14.21) as well as website to drive home the message that Pepsodent Facebook page featuring the games is “liked” by more than 3.5 lakh fans. Similarly, Virgin Mobile’s ‘Indian Panga League’ campaign leveraged from the IPL frenzy in the country by creating an online game to connect with the Indian youth and highlight its value proposition of STD at 20p/min. FIGURE 14.21

Facebook games offered by Pepsodent

on to users’ friends virally. Targeted user information continues to emerge about who plays games, can also generate a consumer database by requiring registration for playing games and entering into contests. Game advertising also provides an opportunity to align a product’s brand image with the image of the game. Over the last few years, gaming in India has taken a front seat in the entertainment space. According to the FICCI- KPMG India Media and Entertainment Industry Report 2010, the size of the Indian gaming industry is estimated to be around Rs. 790 crore in 2009 as compared to Rs. 650 crore in 2008. The report states that the Indian media and entertainment industry is expected to grow at a CAGR of 32 per cent between 2009 and 2014 to reach Rs. 3,190 crore by 2014. Of this growth, mobile gaming is estimated to touch 50.7 per cent growth, followed by PC and online gaming at 37.8 per cent, and console gaming at 18.8 per cent. The growing population of the youth, rising incomes, and increasing PC and wireless usage, are some of the factors that are believed to lead to this growth. Gamers

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are said to constitute 41.2 per cent of the total active Internet users in India, which is a whopping 89 per cent increase from 2007. Globally, as per the Online Gaming Association, in 2010-11 the online gaming market was worth more than US$ 15 billion, with a total of 40 million users who had registered PlayStation Network accounts. 20 million players have spent 17 billion hours on Xbox Live, which is more than 2 hours for every person on the planet. In the US alone, PC gamers have spent 6.6 hours every week playing games. Online gaming is more or less equally divided between genders, at 58 per cent male players and 42 per cent female players.49 In India, advergaming is the most popular gaming model, whereas in-game advertising and game-related product placement are still rare. However, brands from sectors like FMCG, insurance, banking, and telecom are already making regular appearances in online games these days, as their target audiences are usually teenagers and youth.50

com to market its new Axe deodorant variant Axe Googly. Axe Googly’s advergame took forth its big idea of women-magnetism to the digital world, giving a complete spin acquired suggestive connotations in the digital ads on the gaming site. For instance, one of the opponents in the game says, “I am a compulsive hooker. Oops, let me put it ‘Axe Angels.’ Players could distract the women by virtually spraying Axe on them and winning the game. With every batswoman bowled out, the site instantly rewarded

fever among 15-25 year olds and even extended the idea to mobiles by launching an Axe Googly over 17 lakh fans on Facebook crack its whip on obscene deodorant advertisements. Despite cultural constraints and regulatory hiccups, Axe has been rolling out one game after another for its expanding portfolio.51

Going a step beyond online games, virtual worlds (such as Second Life) use simulation to present realworld and imaginary environments that encourage online users to interact with one another and carry on various activities that resemble real life. The degree of simulation can be so realistic that users may experience some extent of “telepresence.” However, it is a make-believe world where rules may draw from fantasy worlds, and members may take the form of “avatars” that catch their fancy, roam about in simulated areas, engage in virtual activities that they may only dream of, or deal in virtual currency. Virtual worlds typically incorporate features of online gaming and social networking. Virtual worlds that are only gaming-oriented are called Massively Multiplayer Online Role-Playing Games (MMORPG), which are online video games capable of supporting hundreds or thousands of players simultaneously. In-game advertising and product placements also appear in virtual worlds. Branding opportunities in virtual worlds mirror those available in the real world, as shown in the example below.

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Second Life, one of the most popular virtual worlds online, has 21.3 million registered members as of November 2010. While it allows players to socialize, it is most known for its economy. Players can make, sell, or buy products, or develop real estate with Linden presents numerous opportunities to marketers also to promote their products. Realworld fashion designers, architects, wedding planners, and tattooists, among others, have set up shop in Second Life. are also television and radio stations that broadcast ads, much as in real life. A number of companies have built distributed advertising systems in Second Life, so marketers can pay by location and time to have their ads displayed. In addition, there are more innovative ways to establish a brand’s presence in Second Life. For instance, Intel has organized technical talks that the site’s “residents” can attend for a virtual fee, whereas companies like Vodaphone and Weather Channel or experience that marketers are trying to promote, they can script ways for people to interact with the Second Life version of their products. For example, while avatars don’t need to eat or drink, if a brand’s product was a soft drink, it could provide a script that had people laugh and dance around whenever they took a “virtual” drink. conversations, offer coupons, etc. For instance, the Nesquik Bunny avatar had entered Second Life and attended a variety of events.52

Taking a cue from the interactivity provided by third-party virtual worlds, many businesses with a wide product or service portfolio have started creating their own virtual worlds where users can interact with their brands, as indicated by the example below.

Godrej (Figure 14.22). It aims to create an online community where individuals can interact with one another, make new friends, experience new activities, and use their creativity in developing their avatars to look GoJiyo Beta version was launched in March Godrej brand and its different regions that offer mini online games and social networking. Each region comes with a unique set of activities, in line with the themes of the regions. For instance, the

Godrej brand and some of its products are incorporated into GoJiyo to facilitate consumer engagement with the company’s Godrej showroom where users can explore

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various products such as Interio furniture, household appliances such as fridges, and other consumer products. ‘Noom’ has a products lab where users can explore new product developments from Godrej a swarm of insects and they can use Godrej Good Knight spray to defend themselves. GoJiyo also includes popular features of a social networking site, such as avatar

rewarding, GoJiyo allows users to earn points, both for the in-world and the real world. Users’ in-world activities reward them with the GoJiyo currencies ‘Mios’ and ‘Jios.’ Mios are the medium of exchange in GoJiyo, whereas Jios is a kind of Karma Index of the user that can even be redeemed for real-world rewards such as makeovers and adventure holidays with GoJiyo and a live chat facility through which a live GoJiyo Guide avatar comes to help during Gojiyo resulting in the acquisition of about four lakh registered users.53 FIGURE 14.22

Godrej’s GoJiyo.com – the first Indian virtual world

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Advertising in online games and virtual worlds works best when the ads or product placement add to the game-play quality. Marketers should look for opportunities to promote action, spur interactivity, and unleash their creative genius, for successfully marketing through this new medium.

14.5 MOBILE MARKETING The third screen after television and computer that marketers need to reckon with is the mobile phone. Mobile marketing is the latest revolution brought about by mobile communication devices such as mobile phones, Personal Digital Assistants (PDAs), etc. Mobile marketing marketing that communicates and engages with consumers to provide them with time- and locationsensitive, personalized information through the use of interactive mobile devices and typically, the radio frequencies of mobile networks. So whether you are using text messages to notify customers of special deals, allowing cell-phone users connected to the Internet to download your mobile video, placing banner ads on WAP sites, sending a multimedia message with a ‘save 10per cent’ coupon, using in-app ads, or availing location-based services, you are marketing to the mobile user. While all this mobile communication is wireless, all wireless communication is not necessarily mobile. For instance, signals carried over a satellite network are part of wireless communication that does not use mobile technology.

14.5.1 Mobile Marketing: A Flash in the Pan or Formidable Future? According to TRAI, as of December 2011, there are 88.4 crore mobile subscribers in India, which is 73 per cent of the total population.54 Moreover, with about three crore mobile Internet users in India, the mobile marketing industry is poised to see a robust growth.55 Even globally, according to the International Telecommunication Union, as of December 2011, there are 590 crore mobile subscriptions, which is equivalent to 87 per cent of the world population. Total number of mobile Web users worldwide is 120 crore.56 The mobile phone is becoming a primary means of communication, not only for voice but also for digital services like email, digital photos, navigation, social networking, etc. In developed countries, mobile media adoption has continued to grow, as consumers are increasingly turning to their mobiles for uses beyond just talking or texting. For instance, according to a study by ComScore, in 2010, 47 per cent of the total US mobile subscribers accessed mobile media (browsed, accessed applications, downloaded content, or accessed the mobile Internet).57 Indian mobile users are expected to that enhances user experience, large screens for improved content interaction, video recording capabilities, hardware and software-based QWERTY keyboards, touch screens, and devices with full web browsing capabilities supporting HTML in addition to legacy mobile standards such as WAP. Today consumers are able to book cinema tickets using mobile devices, pay their utility bills, convert rupees to dollars on their phone wallets, and receive information from car service centres for repairs needed to their cars. So far most of the mobile advertising in India has been promotional: text-’n-win promotions and text-based coupons have gained a considerable currency. With the growth of mobile Internet and mobile television, the possibilities become much broader, with the ability to put banner ads on WAP

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Advertising and Integrated Marketing Communications

sites or to run video ads. In addition, the landscape of mobile communications is rapidly changing with the advent of Mobile 2.0 – the next generation of mobile Internet services that leverage the social web or Web 2.0. Mobile 2.0 includes SNSs, wikis, applications, etc. that emphasize collaboration and sharing amongst users. Its services, which are personal, localized, always-on and ever-present, are appearing on wireless devices such as Smartphones (high-end mobile phones with advanced computing ability and features – high-resolution touch screens, advanced web browsers, high speed data access, etc.) and multimedia feature phones that are capable of delivering rich, interactive content with the full range of mobile consumer touch points including talking, texting, capturing, sending, listening and viewing. Thanks to the invasion of Smartphones, advertising is literally ‘coming to life’ on screens. Users are touching, emoting, engaging, interacting and spending more time exploring video and rich media ads that appear within Apps or within the Mobile Web. Many brands have focused on Smartphone features to create unique campaigns that integrate social media with the overall brand experience. They have realized that with more fans and customers “sharing” branded content, brand visibility in the social space will also be increased. Although mobile-marketing budgets still remain pale in comparison with television, print, and online spends, advertisers are opening up their checkbooks as they see a bright future for the third screen. Worldwide mobile advertising revenue is estimated at US$ 3.3 billion in 2011, and is expected to skyrocket to US$ 20.6 billion in 2015, more than doubling each year.58 Although still in its infancy, mobile marketing will pick up pace in the coming years, as more users demand content on the go. Hence, it is imperative for marketers to understand how consumers use mobile devices, and also what differences exist between the PC-Internet screen and the mobile media screen. They will need to think beyond current mobile handsets and infrastructure and expand the scope of mobile marketing from sending short-term promotional messages to including more brand-building activities. Among the key advantages of mobile marketing, is the omnipresence of mobile devices. While mobile device is with him for about 70 per cent of his waking hours. This makes the target group reachable almost all the time and anywhere. Mobile devices also carry the promise of location and as a marketer can virtually control where and when a message will be read, and by whom. A movie theatre can send a message to teenagers pumping up a big release around the time most people are making their Saturday-night plans. Or a restaurant can send a discount offer to executives just before lunchtime. In addition, the mobile phone is a two-way marketing medium

offers a promising opportunity. With mobiles being also an entertainment medium, idle cell-phone users can be encouraged to text message, answer trivia questions, download ring tones, play branded games, or enter sweepstakes. Not only do consumers get a convenient way to interact with brands of their choice, but also a way to kill some free time. Hence, it is mostly used in environments where one has to wait – at airports, train stations, doctors’ waiting rooms, etc. According to several researches, mobile advertising has proven to have higher response rates than online banner or email advertising. For instance, according to the Direct Marketing Association’s 2010 Response Rate Trend Report, the average CTR for text messaging is 14.06 per cent, while the average conversion rate is 8.22 per cent. Email brings in an average CTR of 6.64 per cent and an average conversion rate of about 1.73 per cent, and Internet display doesn’t

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even hit the radar with an average CTR of 0.76 per cent and average conversion rate of 4.43 per cent.59 Apart from cell-phones being almost omnipresent on users’ persons, employing idle time of users, and being extremely personal, they have only a few links to choose from – whether in an SMS or on a typical mobile web page. Hence, if one of them is an ad, it is more likely to get clicked than the same ad on the Internet. Being a form of direct marketing, mobile advertisements can be measured, tracked and made accountable unlike most other mass marketing media. For example, one can track how many text messages were sent vs. how many responses were received. Interactivity in mobile campaigns is also increasing with the advent of more advanced phones and rising consumer comfort in mobile usage. Advertising is also likely to be more permission-based with stringent rules laid out by TRAI.

14.5.1.1 Tools of Mobile Media Marketers have several tools at their disposal for practicing mobile marketing, some of which are discussed below. ∑ SMS or Short Message Service is one of the earliest forms of mobile communication through which text messages, typically 160 characters in length, can be sent to mobile devices. Already, according to the Yankee Group, over 350 billion text messages are exchanged across the world’s mobile networks every month, with over 15 per cent of these messages being 60 In India, promotional campaigns that urge consumers to enter a contest by SMSing a keyword code to a certain number when they purchase a product, have been quite commonplace. Although primitive, promotions like these tap into the immediacy of mobile, encouraging people to enter the competition and engage with the brand. Response rates on most campaigns are good, costs are modest, and offering consumers something of value in return goes down well at a time when brand loyalty is at a premium. Often SMS codes are integrated in traditional and online media campaigns, promoting its new three series convertible on a website, BMW allowed users in US cities to learn more by texting ‘BMW’ and an airport code, i.e., ‘BMWLAX’ or ‘BMWMIA’, to an SMS number. While earlier SMS marketing was mainly practiced only by mobile service providers to communicate with their customers, with the easy availability of mobile phone owners’ database, spam messages through SMS became common. However, the incidences of spam are likely to reduce and commercial SMSes expected to become more expensive, with fresh regulations of the Telecom Regulatory Authority of India (TRAI) on unsolicited telemarketing calls and SMS brought into force from September 2011. All those subscribers who have registered with the ‘National Customer Preference Registry’ (NCPR), earlier known as ‘Do Not Call Registry,’ will get relief from all commercial communications. Consumers can now stop SMS advertisements by sending a simple SMS or calling 1909. Already, over 13-crore people have registered their numbers with the NCPR.61 However, under the new regulations, subscribers can either opt for the ‘Fully Blocked’ or ‘Partially Blocked’ category. In the latter, they can receive commercial SMSes as per their choice. Hence, if text messages are sent to relevant target audiences with their desired information, they will have little reason to discontinue receiving a brand’s communication, as explained in the example below.

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Advertising and Integrated Marketing Communications

Text4Baby and child health by providing pregnant women and new moms with valuable information for them and their babies. Women can register online or through their mobiles to receive free text messages on topics like prenatal care, baby health, parenting, etc. throughout a broad range of topics. Text4Baby is supported by Johnson & Johnson, which serves as the founding sponsor that has helped create and promote the service. More than Text4Baby to their subscribers Text4Baby subscribers and sent over 25 million evidence-based tips to keep mothers and their babies healthy.

Over the past few years, mobile short codes have become a popular technique to communicate regular mobile numbers (usually 10 digits), which are used for SMS, MMS (see below) and Interactive Voice Services. Short codes make numbers easy to remember. For example: Indiatimes has the short code 5-8888 in India, while Star India has 5-7825 (i.e. 5-STAR on a keypad). Messages sent to a short code can be toll free or more expensive than a regular SMS, as in most cases. This is because short codes have to be bought by brands from their mobile operators at a premium. ∑ MMS or Multimedia Message Service allows text, images, audio and video in a message. Most new mobile phones have capabilities for sending and receiving rich media messages. This increasing availability of multimedia content is opening a large opportunity for sophisticated forms of mobile advertising. For instance, advertising incorporated in mobile programming, much like ads in-between a television serial, are making their way to mobile handsets. ∑ Mobile Gaming is a practice where brands deliver promotional messages through games made for mobile phones. This could be in the form of mobile advergames, mobile in-games, or mobile game-related product placements. Creating a branded game is an expensive affair, so sometimes marketers insert their brand or message by tying up with an existing game. Adfunded gaming is also becoming popular where games are free but users have to download ads along with the game. Games are typically downloaded through the Internet. Sometimes they may be built into the handset. Distribution is the key to the success of mobile games. Therefore key tie-ups with social networkers, as well as harnessing of user opt-in database are essential. Advergaming is usually a part of brand-building programmes rather than shortterm promotional programmes. Hooking the user into loyal, opt-in, repeat interaction with the brand through gaming can increase brand awareness exponentially. In spite of its several advantages, mobile gaming is still a small portion of the overall mobile content sector, mainly due to its prohibitive pricing. However, their use in many mature markets is rising. For instance, the advergaming industry had revenues in excess of US$ 3 billion on mobile, iPhone, and social networks platforms in the US. Facebook games based around advertising now achieve over one million monthly active users, with many of these coming through mobile usage.63 Games are also currently the largest application content category in the US.64

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gaming industry and offer a high quality gaming experience to the end user. However, multiplayer games will still take sometime to rollout in India. Considering the price model, 3G is more likely to reach out to the higher-end audiences.65 ∑ Mobile Web Marketing is advertising on web pages that can be accessed by mobile devices. Increasingly, mobile phones allow users to access Internet over the phone network. Marketing on the mobile web can be in the form of setting up a mobile-compatible website, placing banner ads on other mobile properties, showing up in mobile search results, having a presence on SNSs accessed on mobiles, etc. For example, in 2010, Kerala Tourism tourism board to connect with inbound travelers via a mobile platform. The campaign cleverly used the region’s popular tagline ‘God’s Own Country’ in an interactive video interstitial ad to introduce Kerala as a must visit destination to travelers around the world. The ad also incorporated social connectivity through action buttons that linked to Kerala Tourism’s YouTube, Facebook and Twitter pages. Brands are also increasingly using the mobile web to reach local consumers with the rise of local market targeting, as illustrated by the example below. Fast food giant McDonald’s mobile ad campaign that aims to spur its Hot McCafe iPhone application. When consumers tap on these mobile ads, they are redirected to a mobile-optimized landing page that promotes the company’s hot beverages and features the nearest McDonald’s to their mobiles, and learn more about McDonald’s hot beverages. Adding social media features, McDonald’s also allows ad viewers to let their friends know about its beverages through Facebook or Twitter.

In many developing nations, the majority of mobile Web users are mobile-only, i.e. they do not, or very rarely also use a desktop, laptop or tablet to access the Web. The highest among these are Egypt at 70 per cent and India at 59 per cent. But 79 per cent of large online advertisers still do not have a mobile optimized site, according to Google/Kelsey 2010.67 Two ways for mobile media users to access online content are to browse through the mobile web or access content through applications. Browsing on mobile is similar to browsing websites on a personal computer, expect that a mobile phone’s screen size is only a fraction of what is on a computer, and bandwidth is far less. Hence, many websites for mobile phones are specially designed using the Wireless Application Protocol (WAP). WAP is a popular mobile mobile devices. WAP sites are tiny and more basic compared to Internet sites. However, most modern mobile handsets such as Android handsets, Blackberry devices, etc. support full HTML, and do not use any kind of WAP markup. For instance, the Apple iPhone helped introduce Internet browsing to mass markets, with full web browsing made easy with its large screen and touch-screen technology. Whatever the technology, the experience of accessing Internet available mobile applications or “apps” to enhance user experience. Mobile apps are pieces of software usually designed to run on smartphones and tablet computers. They may offer

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Advertising and Integrated Marketing Communications

emailing, calendar services, banking, order tracking, games, news, location-based services such as mapping, social networking, etc. Even though applications have received more attention by the media, application usage is still second to browser usage on the mobile web.68 But they are certainly becoming highly avant-garde, as indicated by the example below.

CASE IN POINT Mobile Phones can Catch Bottle-Tops Generations of Coca-Cola consumers have pried opened its bottle caps, anxious to discover if a prize was printed inside. Inspired by recent advances like 3D television and motion-control gaming, in 2011, Coca-Cola the campaign integrated Coca-Cola’s Coca-Cola commercial broadcast on television or in cinema halls. Users were encouraged to download the Chok app, which turned their mobile devices into a remote control when a Coca-Cola Coke

technology in the mobiles was used to assess the motion of the user’s mobile phone to catch the bottle tops virtually. Users could then enter a sweepstakes by collecting digital bottle caps and win prizes, discounts, mobile games, and exclusive virtual collectibles.

requests. And not surprisingly, online social chatter was up 218 per cent. Coca-Cola was also the Gold Global Winner in the ‘Branding’ category at the MMA Global Mobile Marketing Awards, 2011.

The following example illustrates the use of specialized apps for brand building, and eventually sales. Realizing that mobile shopping can be tricky because people can’t try on what they are Converse that has created a new way for Converse customers to shop using their iPhones. After browsing the collections and picking their favorite model, users can try on Converse classics and other collections virtually through “augmented reality.” All they need to do is position their mobile cameras towards their left or right foot and scale the shoe image a picture and add it to their gallery or share it with friends on Facebook and get their

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reactions. When they reach a decision, they can buy the pair directly from the app.

has also won Converse Mobile Marketing Awards, 2011.70

With mobile social networking on the rise, many companies are also increasing their presence on SNSs for marketing purposes. According to comScore research, one in nine users accesses a social network from their mobile phone, and for smart phone owners, the percentage increases to three in ten users.71 to the research agency Visiongain, revenue from mobile social networking and user-generated content in the US will grow to around US$ 60 billion in 2012.72 Yet, the potential of social networks and user-generated content on mobiles is largely unexplored. ∑ Marketing with mobile tags is another advancement in mobile technology that is opening up possibilities of sharing content with consumers. Mobile tagging is the process of providing content through two-dimensional matrix barcodes that can be scanned or read using a tag reader on a camera-enabled Smartphone or equivalent mobile device. Once scanned, these tags or codes can link to digital content on the Web (Figure 14.23). Currently there are about 70 different types of barcodes. For instance, QR or Quick Response Codes are among the most popular tags. Anyone with a Smartphone equipped with a QR Code reader application can scan and read QR Codes with the click of a camera. While barcodes used by retailers are linear, one-dimensional codes that can only hold up to 20 numerical digits, QR Codes are alphanumeric characters of information, and can take a mobile device to a Web location in one click. The reason why they are more useful than a standard barcode is that they can store and present much more data, including URL links, geo coordinates, and text. The other key feature of QR Codes is that instead of requiring a bulky hand-held scanner to scan them, many modern cell phones can scan them. FIGURE 14.23

The process of Mobile tagging

POINT ON A CODE

TAKE A PICTURE

DECODING

WEBSITE

may provide QR Codes in magazine ads, on billboards, on web pages, on business cards, in restaurant menus, on ticket stubs, on delivery vans, etc. Figure 14.24 shows a public library in the US using QR Codes for assisting visitors with helpful advice. Once scanned by a cell

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Advertising and Integrated Marketing Communications

phone, QR Codes can take consumers to the landing page of a movie trailer, share an entire eBook, or even share multiple pieces of content that have a common link. Moreover, QR Codes can compose an email or text message, link to blog posts and SNSs, give free mp3 downloads, provide customer feedback forms at hotels, etc. Major airlines in many countries are now issuing QR Codes as mobile boarding passes. FIGURE 14.24

A public library using QR Codes

In May 2011, Starbucks, helped the popular singer Lady Gaga, a Starbucks fan, to promote her new album by inviting customers to go on a two-week digital scavenger Codes on Starbucks were then instructed to decode messages from the Starbucks blog and follow the hunt.

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advertisement campaign using Lego on Lego, one of the company’s leading products, with an innovative campaign, and to lead people to the toy store’s website where Lego brick boxes were sold. Lego sets were

unique designs – a spacecraft hovering above an alien colony, a wizard in front of a scanned the Codes with their mobiles and were led to a landing page that promoted Lego aroused people’s playfulness, much like the imaginative world of Lego through the campaign, and compared to the company’s previous campaigns, twice as many Lego the 2009 Cannes Lions International Advertising Festival.73

There are other software companies that have created 2D Codes that work much like QR Codes, such as Microsoft’s MS tags. QR Codes are one step ahead of hyperlinks, “hardlinking” (or “object linking”) objects from the physical world, and their potential for marketers is limitless. QR Codes may also be linked to a location to track where a code has been scanned. It is possible that the next generation of QR Codes may completely dispense with the Internet and the content may be embedded in the code itself. ∑ Leveraging the virtues of mobile phones to transfer advertising content to consumers right at the place where they are making up their minds, is the concept of proximity marketing. Proximity marketing is location-based marketing that involves the localized wireless distribution of advertising content through infrared or Bluetooth broadcasting equipment, the latter being more popular because of its longer range. In Bluetooth marketing, messages can be transmitted using a short-range wireless hardware device, which locates consumers carrying Bluetooth-enabled devices in its geographic area, and received by users when their Bluetooth feature is switched on. Bluetooth is a proprietary open wireless technology standard for exchanging data over short distances using short wavelength radio transmissions, through which two-way communication is possible. While personal Bluetooth-enabled devices have an approximately 10-metre range for receiving and exchanging data, high-powered Bluetooth transmitters used for marketing campaigns have a wider range of about 100 metres, although long-range Bluetooth “dongles” are now available. Through Bluetooth, marketers can send text, pictures, videos, music clips, ringtones, mobile games, wallpapers, business cards, and more in indoor or outdoor environments. As opposed to an SMS or MMS, sending and receiving a Bluetooth message is absolutely free, making it a cost-effective way to target customers when marketing budgets are shrinking. Also, unlike an SMS or MMS, with Bluetooth, it is possible to recognize the location details of a user, and send location-based information. Besides, it does not require a database of prospects’ mobile numbers for sending messages. Bluetooth transmission devices transmit messages to all consumers whose mobile devices within a geographical range are Bluetooth-enabled.

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Today, most of the latest handsets are well equipped with Bluetooth technology. Bluetooth marketing is permission-based, giving consumers an option to accept or decline messages from a brand. A consumer who has accepted brand messages can even spread the message further to his contacts, lending a virality to messages that are informative and engaging. With Bluetooth, message content can be of any multimedia type and marketers can frequently change the message. Besides, content is delivered over a secure connection, and is tractable i.e. it is possible to have a count of the number of consumers reached, those who have accepted or rejected messages, etc. A Bluetooth connection is also more secure than any other wireless technology. Since it uses adaptive frequency hopping, there is limited interference from other frequencies. Moreover, it also has built-in security in the form of encryption and PIN code authentication. The downside of Bluetooth, however, is that unlike SMS and MMS, it only can operate within a limited range. Proximity marketing is popularly used at malls, multiplexes, sport stadiums, exhibition halls, airports, clubs, sightseeing locations, etc. It is highly popular for point-of-sale promotions. For instance, people walking across a store with their Bluetooth-enabled devices can get special offer messages from the store, enticing them to enter the store. Restaurants located in shopping malls are using proximity marketing to send daily menus to visitors loitering in the mall, and allowing them to even place orders using their mobiles. Companies have used Bluetooth to provide public information services, conduct voting and market research, send product information within a large store without the aid of a sales person, provide a quick map to their store from a nearby multiplex theatre, etc. Bluetooth can also be used to interact with consumers in their spare time. For instance, a branded game can be sent to consumers waiting at a bus shelter, or informational messages sent to consumers killing time at an airport. The promotion for Bluetooth is often done using traditional media that can inform people to switch on their Bluetooth devices, as discussed in the example below. The crux of a successful proximity marketing campaign is to catch consumers at the right place, at the right time.74 TELiBrahma, a Bangalore-based company specializing in mobile advertising, used Bluetooth advertising to distribute IPL-related

and real-time match-linked information. Upon activating their devices, the audience received forecasts of the match, pitch report, team composition, video clips, trivia and updates at every turn of events at the match. Marketers were given an opportunity to brand some of this match-related content. During this entire campaign lasting over seven 27per cent were match-related updates, 38 per cent were product ads, and 35 per cent were messages related to contests and events sponsored by Britannia and Blackberry.75

Summary The Internet is the ultimate direct marketing medium and has phenomenal potential for communication in the recent times. Any communication that is sent by a brand to its target audiences through the

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online media can be termed as online advertising or promotion. It includes various traditional and newer tools like websites, banners, emails, blogs, viral videos, Social Networking Sites (SNS), online games, etc. User interaction, engagement, and fragmented control are key differentiating factors of online communication, which is more permission-based than intrusive. Websites establish a brand’s presence online and integrate various marketing communication tools. To enhance visits to a website, Search Engine Marketing (SEM) tactics should be followed. SEM is a set of strategies designed to increase the visibility of a website on search engine result pages. Although banners are becoming old, annoying, costly and less effective, they can be successful if to a website, deliver brand impressions, announce offers, etc. Text links perform similar functions as banners, except that they are shorn of graphics, audio, etc. Internet direct email refers to emails sent for promotional purposes. Emails delivered to opt-in subscribers can cross the spam hurdle and be effective. Social media is a new world of mostly unpaid media created by individuals or enterprises on the Net using the technologies of Web 2.0, to facilitate interactive dialogue, and allow the creation and exchange of user-generated content. It is making marketing communication more participative, promoting virality, and delivering brand engagement. Blogs, microblogs and e-groups are informal media to promote products. They also enable companies to learn what consumers have to say about their products. SNSs allow businesses to interact with their customers and create an engaging also effective in capturing consumers’ attention and driving brand messages, without seeming intrusive. Virtual worlds go a step beyond gaming and create fantasy places, which provide branding opportunities that mirror those available in the real world. Mobile marketing provides consumers with time- and location-sensitive, personalized information through the use of interactive mobile devices. Various tools like SMS, MMS, mobile gaming, mobile web, Bluetooth, etc. can be used to communicate with consumers using mobiles. The key to communication online or through mobiles is delivering information and entertainment at the same time.

Exercise communication. 2. How is social media changing the rules of communication for modern marketers? What marketing skills will still be relevant? 3. What are the shortcomings of modern mobile technologies like tagging and Bluetooth? For what kind of campaigns are they best suited?

Suggested Class Projects 1. EasyPay is a website that allows consumers to pay their bills for household utilities (electricity, gas, etc.), mobile phones, credit cards, etc. online. Recommend what SEM strategies it should use to promote its website. If it makes a banner ad, where should it place it?

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2. Give suggestions for an electronic direct mail campaign for the movie channel HBO to get users to watch its programmes. What kind of lists would you use? Consider including a fortnightly schedule or highlights of the best programmes. 3. Start a blog of your own on any marketing communication tool of your choice. You could host it for free on websites like TypePad.com, Blogger.com, WordPress.org, etc. Post reviews, ratings, feedback, and visitors. Link back to popular sites and note if that increases the visits to your blog. Run this blog for at least the duration of this course and learn as you go along. 4. Become an interloper and join an online community/e-group of your choice. Indulge in discussions with the community for at least a month. Summarize your observations. Do they seem to be endorsing any products? Try promoting a relevant product yourself. What is their response? 5. For the product for which you prepared ads in various media like print, radio, etc. create a roadmap for communicating using social media and mobile phones. Present the plan before your class.

Critical Thinking Questions 1. With an increasing number of viral videos doing the round on sites like YouTube, the novelty will wear off and companies will have to try harder to woo customers. Comment. 2. Since anyone can publish on the Internet, the credibility of communication is always an issue. For for their competitors, etc. How can marketers overcome this hindrance?

CASE STUDY Building Brand Loyalty: Just Do It Online76 Nike Marries Apple Nike Inc. is not only the world’s leading supplier of athletic footwear, apparel, and equipment, but also a brand that understands its target audience inside out. When Mark Parker took over as the CEO of Nike in mid-2000s, he called up Apple Inc.’s founder and CEO Steve Jobs with an idea designed to eliminate the loneliness of the long distance runner. Parker wanted Nike’s running shoes to communicate performance data to runners in real time. It didn’t take long for Jobs to realize the magnitude of the opportunity present to him, knowing that 50 per cent of the 50 million people who had become iPod owners last year used the device during a workout. He leaped at the prospect and a revolutionary idea that took music and sport to a new level was born through a marriage of Apple and Nike technologies. their core markets by lifestyle – Nike’s Apple’s as the “creativity culture.” The overlapping of sport and creative interests laid the foundation of a partnership with a shared passion for creating meaningful consumer product experiences through design and innovation. They embarked on developing an integrated lifestyle management solution driven by digital convergence. In simpler words, a package of shoes, data, music, and apparel designed for a core audience dedicated to an active workout regimen. Among the key objectives underlying the partnership was the idea to “develop long-term goodwill and consumer loyalty by continuously

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cultivating the brand-lifestyle relationship with core enthusiast communities.” The new product was also envisaged to develop new markets, and enhance the extent of consumer interactivity with the brand, primarily through a digital platform.

The Birth of Nike+: A Product for the Digitally Active After 18 months of collaborative development with Apple, Nike set a benchmark for how brands will live in a digitally enabled world through its Nike+ system launched in May 2006. Nike+ is a technology that works in tandem with the products of Apple Inc., and is designed to sell more running shoes. The ‘Nike+ iPod Sports Kit’ is a device, which measures and records the distance and pace of a walk or run (Figure 14.25). The $29 sports kit includes a small sensor or transmitter that can be embedded in special Nike sensor. The sensor tracks a runner’s performance data for every run in three axes (space, temperature, direction), and sends it to a Nike or Apple product – a Nike+ SportBand, a Nike+ SportWatch, an iPod Nano, an iPod Touch, or an iPhone – using Bluetooth or an external receiver. The kit is able to store information such as the elapsed time of the workout, distance travelled, pace, or calories burnt, and display it on the screen of an iPod or iPhone, or broadcast it through the headphones. The data, which includes details such as the number of steps run, number of steps walked, number of hours the device has been on, etc., is very revealing of a user’s exercise habits and life in general, and combining the Like a treadmill, the Nike+ sports kit offers runners various custom workout shortcuts on a menu. Nike-created sport music. To give runners added motivation to reach their goals, Nike+ allows them to select a “PowerSong” that they can play at the click of a button. As people run, selected music plays in their ears, their shoes measure their workout statistics, and their iPods or iPhones display or broadcast feedback on their the user’s choice of male or female voice. In addition to the in-workout audio feedback, there are prerecorded congratulations by celebrities like Lance Armstrong, Tiger Woods, Joan Benoit Samuelson, and Paula Radcliffe whenever a user achieves a personal best (such as the fastest mile, fastest 5K, longest run yet, etc.) or reaches certain long-term milestones (such as 250 miles).

Consumer Reports magazine tested the device and found it accurate as long as users kept an even pace. In workouts with varied pace, accuracy was sometimes less than 90 per cent.

Nike Introduces its “Social Self” “Consumers want to be part of a community, […] they want to be part of something.” Charlie Denson, President, Nike At Nike, the focus has never been on the product alone, but also on how that product connects an individual to others who also own or enjoy that product. Nike’s community enables its members to create meaningful relationships. Applying this principle to Nike+, Nike created an online brand platform that connected runners to an online community where they could record, track, and share their running data to measure progress over time. iPod Nano, iPod Touch, or iPhone to their computer, and their workout data automatically syncs to NikePlus.

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com. The website is highly interactive and using an intuitive graphical interface allows members to (Figure 14.26). To encourage people to continuously push their limits, there are forums called “talk some trash” where users can meet and challenge other runners, and a challenge gallery where all user created challenges are viewable. Members can connect and compete as teams, or individually with up to 50 runners at a time from anywhere in the world. The website also has additional features such as the ability to name the route taken when running or walking, a distance club to view everyone’s total distance traveled, milestones for fastest 5000, etc. In a bid to affect some commerce as well, the site offers shoe suggestions based on an online questionnaire. Nike has also merged its NikeRunning.com community site with NikePlus.com to enhance the social infrastructure of the latter. After the overhaul, members are able to share their run statistics on their existing social networks, Facebook and Twitter. Like those services, Nike has a “friend” system that also suggests potential runner friends.

Nike+ Innovations Several new features have been added to Nike+ since its launch. For instance, in 2008, the SportBand kit consisting of a wristwatch-like device was unveiled at $59 for runners who didn’t want to listen to music. It allowed them to store, display and transfer run information online without the iPod Nano. In the same year, ‘Nike+iPod for the Gym’ was launched, allowing users to record their cardio workouts directly to their iPods. No sport kit or shoe sensor was required; all that was needed was a compatible iPod and an enabled piece of cardio equipment, such as a treadmill, stationary bicycle, stair climber, etc. Soon after the launch of this new kit, the seven largest commercial equipment providers data at NikePlus.com was possible. To allow comparison between users, the common currency of “CardioMiles” was evolved. It tracked each workout based on the number of calories burnt. The calories were converted to “CardioMiles” at a ratio of 100:1, allowing cardio users to engage in challenges with other runners. In 2010, Nike released the ‘Nike+ GPS App’ (Figure 14.27), which used a tracking engine that did not require the separate shoe sensor. The application worked using the accelerometer and GPS of the iPhone and the accelerometer of the iPod Touch. Again in the same year, in order to further enhance its users’ training experience by providing them heart rate based training, Nike+ tied up with Polar, and introduced Polar WearLink+, a heart rate transmitter that worked with Nike+. Users needed to wear the WearLink+ chest strap, which delivered heart rate information directly to iPod Nano, Nike+ SportBand, other compatible Nike+ see their beats per minute while they ran with their Nike+ SportBand, or hear feedback of their BPM on their iPod. At NikePlus.com, users could analyze their heart rate progress over time, thereby enabling them to train at the right intensity to achieve their goals. The Polar WearLink+ is currently available in USA, Canada and major EU countries. Nike brought several more transformations in its apparel line as well. For instance, the Nike running t-shirt was designed with a snug pocket for holding iPod Nano. Apple too wasn’t far behind in designing products or services around Nike+. Its iPod Nano, for instance, was a model resistant to harm from shaking. Apple also introduced a voice command mechanism and a gesture interface that used movements to select songs or adjust volume. Another unique feature was the capability to change

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the tempo of music based on the pace of the listener’s activity. Apple’s iTunes Music Store also featured a ‘sport music’ section with mixes timed to synchronize with the listener’s workout. “Coaching Mixes” featured world-class athletes taking listeners through personal workouts for activities like training for distance, treadmill running, or even yoga.

Promoting Nike+ In May of 2006, the partnership between the two iconic, global brands was unveiled at a New York marathon world record holder Paula Radcliffe. What followed over the rest of the year was 360-degree marketing communication that went full blast in promoting Nike+. There were promotions galore at various branches of Nike’s sportswear store NikeTown, celebrity endorsements at special events, Apple promoted events and concerts, announcements on Nike and Apple’s main websites, and direct emailers that were sent to existing customers. Even the rewards offered as part of Nike’s promotional activities were unique. For instance, as a reward for the ‘Nike Free Run+ 2 City Pack’ series, customers could sync their runs to create a custom data painting that was provided as a high resolution print for them to take home. The Innovation Lab at Nike laser etched the runner’s name, the distance he ran, and his run path onto a custom fabricated shoe box, which contained a pair of the ‘City Pack’ shoes from his city of origin. Print and television were amongst the traditional media used. In April 2007, Nike pan-European television commercial ‘Addicted,’ to feature Nike+ technology. ‘Addicted’ was timed to release a day before a marathon being held in London. This new commercial, in which viewers could experience Nike+ through the eyes and thoughts of a runner, became very well acclaimed for its innovative delivery. In the words of Rick Condos, Creative Director for Wieden + Kennedy, “To introduce something as radically different as Nike+ perspective that Nike never had before – from inside the head of a runner. […] they tell a story about running that is as understandable to the novice runner as it is to the expert.” The objective of the ad was very clear: to drive runners online to learn about Nike+. The campaign was also supported with print and digital advertising. While Nike+ fostered an online community, Nike ‘Run Faster,’ with integrated forums. In addition, Nike incorporated widgets and created several video virals for sites like YouTube to spread the word about Nike+. Thanks to its multi-pronged and creative campaign, Nike+ generated secondary publicity, such as through videos on the Net or local television coverage. For instance, the popular television news channel CNBC ran a video on how Nike+ worked.

Bumps Along the Way The revolutionary Nike+ wasn’t without its share of problems. When launched, the NikePlus.com site was not up to speed with emerging Internet trends around social networking. It offered few features for sharing content, made a heavy use of Flash that took a toll on speed, etc. Nike also suffered embarrassment for its SportBand, which malfunctioned when it got wet. However, these problems didn’t deter Nike, which made sweeping changes to NikePlus.com to better integrate social services, allow sharing and openness, and enable faster loading of content. The new site had a simpler interface, copious sharing options, and additional community content. Nike is also gradually opening up NikePlus.com to existing Web services, competing tracking technologies, and non-Nike developers to build apps using the data.

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Nike+ Sees Success While most companies have tried to create virtual communities through a build-it-and-they-will-come approach centered on a brand, Nike created Nike+ to bring and engage consumers online so as to place where runners have collectively logged 100 million miles – enough for more than 400 roundtrips to the moon. In the two years since it launched Nike+, Nike has built a legion of fans. In 2008, over one million runners logged on and signed up to run a 10K race sponsored by Nike simultaneously in 25 cities, from Chicago to São Paulo. Nike+ is not simply a clever way to combine music and running, but a new kind of marketing that begins with product development and goes all the way to building brand loyalty. Although the focus was never on converting some percentage of runners to buy Nike shoes, sales was a huge byproduct of the marketing effort. By 2008, Nike had sold 1.3 million Nike+ iPod Sport Kits, according to SportsOneSource, and 500,000 Nike+ SportBands. It is little coincidence that Nike steadily increased its running shoe market share from 48 per cent in 2006 to 61 per cent in 2008. While sales from these products total $56 million, that’s just a rounding error at a company that posted $18.63 billion in sales in 2008. Nike+ has also met its objective of reaching out to newer markets. According to a survey, 35per cent of the Nike+ members are new to using Nike. Nike further claims to have received positive qualitative feedback from the users of Nike+. For most users, the Nike+ experience has changed the way they approach running. According to Brent Scrimshaw, Vice President of EMEA Marketing, “Whether it’s the instant performance feedback they hear over the music or the ability to set goals and challenge friends on NikePlus.com, Nike+ is encouraging people who never ran to run, and motivating people who run to run more.” After the success of Nike+, the company is now testing a social network to promote its basketball shoes. The Nike+ campaign has also been applauded for its creativity. In 2007, Nike+ won top honors at six separate shows, including Titanium and Cyber Grand Prix awards at the Cannes Lions International Advertising Festival for grabbing attention through community-building, and encouraging runners to compare their statistics and compete against each other. In 2009, Adweek named Nike+ the “Digital Campaign of the Decade,” Campaign named it the “Number One Digital Ad of the Noughties,” and Advertising Age named it one of the “Best Non-TV Campaigns of the Decade.” To sum up, Nike+ has been a trailblazer for brands that want to make it in the digital world. What makes the Nike+ campaign worth considering as a best practice is that Nike didn’t really invent anything new. It simply extended a behavior that has existed in the running community for years and mapped it onto a digital platform. What once use to happen in a local running club is now happening online, and the world of running enthusiasts has become a bit smaller as result.

Questions 1. What do you think was the objective of launching Nike+? 2. Was Nike+ successful in bringing consumers online? How was engagement created on Nike+? 3. Besides building brand engagement, what other marketing functions did Nike+ perform? Nike+ campaign.

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FIGURE 14.25

The ‘Nike + iPod Sports Kit’

FIGURE 14.26

NikePlus.com allows members to track their run statistics

561

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FIGURE 14.27

The ‘Nike + GPS App’

Endnotes 1. www.idiotsacademy.zapak.com; www.wikipedia.org; “India’s Top 50 Marketers Awards 2010: Marketing Innovators,” Pitch, Nov 5, 2010; Aminah Sheikh, “3 Idiots makes smart moves on marketing,” Business Standard, Dec 21, 2009; Rohit Nautiyal, “3 Idiots: Exploring innovative marketing,” Dec 24, 2009, www. afaqs.com; Elizabeth Flock, “How Aamir sold 3 Idiots,” Feb 6, 2010, www.ibnlive.in.com 2. Varada Bhat, “Bollywood’s longest promotion,” Business Standard, Sep 19, 2011; “Ra.One gets Rs 52-cr promotional push,” Oct 14, 2011, www.ibnlive.in.com 3. Anish KS, “Ra.One game no.1 on iPhone appstore,” Oct 14, 2011, www.technicstoday.com 4. “PMMAO 2011 Internet Review: In the Fast Lane,” Pitch, Feb 1, 2011; “PMMAO 2011 Internet Outlook: High Bandwidth,” Pitch, Feb 1, 2011 5. Esha Madhavan, “Idea Cellular campaign: Web takes over from where TV left off,” April 4, 2009, www. exchange4media.com 6. Richard Hearne, “Click-through Analysis of AOL-data.tgz - Want to Know How Many Clicks The #1 Google Position Gets?,” August 12, 2006, www.redcardinal.ie 7. “IndiaFM launches viral marketing campaign for ‘Bluffmaster’,” Dec 21, 2005, www.agencyfaqs.com 8. Todd Wasserman, “Google: Click-Through Rates Fell in 2010 [STUDY],” Aug 20, 2011, www.mashable. com 9. Saumil Shah, “Cyberwatch: The Junk in your Inbox,” The Times of India, Sep 1, 2008 10. Saumil Shah, “Cyberwatch: Keep your Inbox Junk Free,” The Times of India, Sep 7, 2008 11. Lev Grossman, “You — Yes, You — Are TIME’s Person of the Year,” TIME, Dec. 25, 2006 Social Media,” 2010 13. “Blogs Top List of Social Media Investments for 2012,” Jan 26, 2012, www.marketingprofs.com 14. Larry Weber, “Marketing to the Social Web,” John Wiley & Sons, Inc., 2007 15. Jane Simms, “Real or insincere?,” Oct 16, 2007, www.brandrepublic.com; “‘Dove Evolution’ Goes Viral, www.marketingvox.com; “Ready for their

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16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31.

34. 35. 36. 37. 38. 39. 40.

41. 42. 43. 44. 45. 46.

47. 48. 49. 50.

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Close-Up,” Aug 31, 2007, www.canada.com; Jonathan Kolstad (2006), “Unilever PLC: Campaign for Real Beauty campaign,” Encyclopedia of Major Marketing Campaigns, Vol 2., Thomson Gale, pp. 1679–1683; Delshad Irani, Amit Bapna, “Give your campaign 9 lives,” Brand Equity, Jan 18, 2012 Delshad Irani, Amit Bapna, “Give your campaign 9 lives,” Brand Equity, Jan 18, 2012 Tarana Khan, “Stealing the limelight: Online advertising comes of age,” www.newmedia.agencyfaqs. com “Makemytrip.com: spreading the wanderlust viral,” www.newmedia.agencyfaqs.com Robin Thomas, “Pitch Internet Report 2010 – The Virtual Family,” Pitch, May 2010 “Connecting and Engaging with Digital Indian Consumers,” www.blog.nielsen.com, Nov 15, 2011 “PMMAO 2011 Internet Review: In the Fast Lane,” Pitch, Feb 1, 2011 Robin Thomas, “Pitch Internet Report 2010 – The Virtual Family,” Pitch, May 2010 “Blogs Top List of Social Media Investments for 2012,” Jan 26, 2012, www.marketingprofs.com Jan H Kietzmann, Kris Hermkens, Ian P. McCarthy, and Bruno S. Silvestre (2011), “Social media? Get Business Horizons 54 (3): 241–251 Darcy DiNucci, “Fragmented Future,” January 1999 “Connecting and Engaging with Digital Indian Consumers,” www.blog.nielsen.com, Nov 15, 2011 Gopal Sathe, “BharatMatrimony makes marriage virtual to groom one for the real deal,” Jan 19, 2011, www.exchange4media.com; www.webchutney.org “Twitter Success Stories,” www.marketingprofs.com “Blogs Top List of Social Media Investments for 2012,” Jan 26, 2012, www.marketingprofs.com www.wikipedia.org MSN Live Survey Pitch, January 2006, pp. 22-24 Pitch, January 2006, pp. 22-24 Ajay Naqvi, “Don’t tie down the bloggers,” Oct 3, 2006, www.agencyfaqs.com Chumki Sen, “Small Wonders,” The Brand Reporter, January 2008, pp. 6 Priyanka Jayshankar, “Blog spots and all,” Feb 23, 2006, Hindu Business Line Ajay Naqvi, “Don’t tie down the bloggers,” Oct 3, 2006, www.agencyfaqs.com “Blogging in India: A Survey,” Nov 27, 2006, www.techtree.com “Twitter Success Stories,” www.marketingprofs.com “How To Use Twitter For Business: 5 More Incredibly Interesting Case Studies ,” Jan 20, 2010, www. jeffbullas.com; “Twitter ROI Case Study: Dell Generates $3 Million in Sales Utilizing Twitter,” June 13, 2009, www.innerarchitect.com Ashish Jha, “A happy bunch,” Pitch, May 2010, pp. 69 “An In-Depth Look Inside the Twitter World,” Sysmos, June 2009 “Facebook F8: Redesigning and hitting 800 million users,” L.A. Times, Sep 22, 2011 Erik Qualman, “39 Social Media Statistics to Start 2012,” Jan 4, 2012, www.socialnomics.net Adam Ostrow, “Is Social Media Making Corporate Websites Irrelevant?,” May 25, 2009, www.mashable. com Cory O’Brien, “Volkswagen Lets You Meet the Volkswagens on Facebook,” www.thefutureofads.com; Anita Windisman, “Volkswagen Personalizes Ads Using Feeds from Your Twitter Account,” July 27, 2009, www.blogs.oneofakindpublishing.com Parks Associates, “Electronic Gaming in the Digital Home: Game Advertising” June 28, 2007; IAB In-game Advertising Survey July 2007; RealNetworks “Casual Gamer Survey” Feb 8, 2008 www.wikipedia.org www.onlinegamingassociation.com Robin Thomas, “Plug and Play,” Pitch, May 2010, pp. 46-48 Pitch, July 2011

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52. www.wiki.secondlife.com 53. www.wikipedia.org; www.gojiyo.com; Ruchika Kumar, “PMMAO 2011 Internet Review: In the Fast Lane,” Pitch, Feb 2011 54. “Global mobile statistics 2012,” www.mobithinking.com 55. “PMMAO 2011 Internet Outlook: High Bandwidth,” Pitch, Feb 1, 2011 56. “Global mobile statistics 2012,” www.mobithinking.com 57. “The comScore 2010 Mobile Year in Review,” comScore, February 2011 58. “Global mobile statistics 2012,” www.mobithinking.com 59. Erica Swallow, “Top 5 Mobile Advertising Trends to Watch,” Aug 20, 2010, www.mashable.com 60. Mobile Marketing Association, www.mmaglobal.com 61. Sandeep Joshi, “Pesky calls, SMS a history now,” The Hindu, Sep 27, 2011 62. www.mobithinking.com, www.text4baby.org 63. “Mobile Advergaming and Ad-Funded Gaming Report 2010-2015,” www.visiongain.com 64. “The comScore 2010 Mobile Year in Review,” comScore, February 2011 65. Robin Thomas, “Plug and Play,” Pitch, May 2010, pp. 46-48 Mobile Commerce Daily, Dec 28, 2011 67. “Global mobile statistics 2012,” www.mobithinking.com 68. “The comScore 2010 Mobile Year in Review,” comScore, February 2011 69. www.mobithinking.com; Julie Ask, “Coca-Cola Leverages Context to Create Engaging Mobile “Chok” Campaign in Hong Kong,” Dec 1, 2011, www.blogs.forrester.com; Rimma Kats, “Coca-Cola tests NFCenabled vending machines to bolster mcommerce presence,” Mobile Commerce Daily, Nov 11, 2011 70. www.mobithinking.com 71. Heidi Cohen, “7 Mobile Web Marketing Tactics,” Sep 10, 2010, www.heidicohen.com 72. “Mobile Social Networking and User Generated Content Market Insight 2009-2014,” May 15, 2009, www.visiongain.com 73. Roger, “Lego QR Code Campaign,” June 24, 2009, www.2d-code.co.uk; “Lego Germany Promotes Products with Creative QR Code Campaign,” www.beqrious.com 74. Priyanka Rawal, “Proximity Advertising: Location-based Marketing Engaging Customers,” Advertising Express, July 2009, pp. 12-17 75. Ruchi Jain, Ekta Kapoor, “Promotional tools during recession,” Advertising Express, July 2009 76. www.nikeplus.com; www.wikipedia.org; Brian Morrissey, “Digital Agency of the Decade,” Adweek, Dec 14, 2009; Igor Beuker, “Nike+: Smart Social Media Marketing Strategy,” July 15, 2008, www.viralblog. com; “Advertising in the Noughties - Top 10 digital ads,” Dec 10, 2009, www.campaignlive.co.uk; AnnChristine Diaz, “Book of Tens: Best Non-TV Campaigns of the Decade,” Dec 14, 2009, www.adage. com; Harvey Kraft, “The Nike+ iPod Partnering Strategy: Develop Unique Lifestyle Relationships,” June 20, 2006, www.marketingprofs.com; Brian Morrissey, “Nike Plus starts to open up to Web,” July 20, 2009, www.adweek.com; Rachel Botsman, “Collaborative Thinking: The business of sharing and cooperation,” Feb 9, 2011, www.londonbusinessforum.com May 7, 2008, www.blog.philswinney.com; “Nike+ Motivates Athletes to ‘Run Like You’ve Never Run Before’ in New Commercial,” PR Newswire, Apr 20, 2007; Julie, “Polar and Nike+ Introduce the Polar WearLink,” June 9, 2010, www.the-gadgeteer.com

Part Five Media Planning And Strategy This section dwells on the peculiarities of media for the various communication tools discussed earlier. Chapters 15 and 16 discuss the strengths and weaknesses of various media including Broadcast Media (Chapter 16), audience estimation, and the process of buying time or space. Chapter 17 puts it all together by laying out the steps in developing an effective media plan.

Chapter 15 Print and Support Media

In Perspective

Chapter Objectives

Sheetal Heats up the Air Cooler Market with Print Media Promotion The distributors of Sheetal air coolers were inundated with orders starting the

quality – Sheetal

Sheetal Sheetal Sheetal

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Sheetal

Sheetal Sheetal Sheetal’s Sheetal

The opening vignette illustrates certain qualities of print media, which make it a favourite with advertisers even in this age of newer, more interactive media. Through widely read newspapers Sheetal could quickly reach its extensive regional market, gain the trust of people, and establish its credentials as a quality brand. Newspapers proved to be a great medium for announcing a short-term offer at a short notice. Once the problem at hand was well tackled, magazines provided the opportunity of reaching focused audiences and publishing brand building advertising. In this chapter, we’ll discuss the peculiarities of various print and outdoor media available to a communications manager. Once we get a basic understanding regarding the strengths and limitations of various media, their audiences and purchase procedures, etc. we will deal with media planning, which pertains to setting media objectives and strategies for a promotional programme.

15.1 THE MASS MEDIA A medium is a means or vehicle for dissemination of message. The effectiveness of a marketing communication programme greatly relies on the appropriateness of the media used to transmit the message. A suitable medium enhances the message and reaches the right target audience at the right time. The task of media selection becomes a complex one because there are various media options

selected for a particular promotional programme is known as the media mix. Most marketing communications employ mass media for message delivery. Mass media is a term used to denote media that can reach a very large audience such as the population of a city, region, nation or world. The term mass media was coined in the 1920s with the advent of nationwide radio networks and mass-circulation newspapers and magazines. Hence it typically refers to various print, are generally called “mainstream mass media,” new-age media such as the Internet, mobile phones, etc. have also gradually grown to assume the proportions of mass media and be included in its programmes keeping in mind various considerations like the characteristics of various media, type

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569

of message and target audience, budget availability, communication objectives, media availability, etc. They have to then analyze these alternatives as part of their integrated marketing communication programmes. The popular Indian mass media, their advertising revenues, percentage shares and growth rates are depicted in Table 15.1. TABLE 15.1

Advertising spends, shares and growth rates of leading mass media

Media

2008 Ad revenue (Rs. crore)

Share in ad expenditure (in %)

2009 Growth Ad revrate enue (in %) (Rs. crore)

2010

Share in ad expenditure (in %)

Growth rate (in %)

Ad revenue (Rs. crore)

Share in ad expenditure (in %)

2011 Growth Ad rate rev(in %) enue (Rs. crore)

Share in ad expenditure (in %)

Growth rate (in %)

13

Press

9825

47

16

7608

41

(-21)

9992

42

28

11291

43

TV

8319

40

17

8492

46

2

10530

45

24

11478

44

9

Outdoor

1419

7

11

1135

6

(-20)

1441

6

27

1297

5

(-10)

Radio

662

3

38

681

4

3

885

4

30

903

3

2

Internet

363

2

45

453

2

25

680

3

50

985

4

45

Cinema Total

129 20717

1

24

103

100

17

18472

1

(-20)

118

0.5

15

140

0.5

18

100

(-11)

23646

100

28

26094

100

10

Source: Pitch, Feb 2012; Pitch, Mar 2012

15.2 THE PRINT MEDIA One of the oldest and the most highly regarded media of advertising, print has survived the onslaught Internet or mobile phones have, it still has its inherent strengths that have enabled it to come a full as a credible pillar of democracy and the freedom it enjoys, have contributed to the continued growth of the print media. It is the print media, which can be well preserved and that leave a longer lasting imaginatively to new changes and challenges brought forth by the advancement of technology. Thus, despite stiff competition from other media, print is an important communication vehicle for both consumers and marketing communicators. The Government also uses print media extensively to secure wide coverage of messages through various newspapers and journals. Up until 2008, print used to garner the highest share of the advertising pie, year after year. It medium have seen a healthy growth, save in 2009, which turned out to be a bad year for all media in general, thanks to economic slowdown. However, the overall growth of print can be attributed to increasing disposable incomes and literacy rate (effective literacy rate – literacy rate considering people aged 7 and above – is pegged at more than 74 according to the 2011 census) that are adding a number of consumers to the print media fold. Also, the increase in the number of news channels is

and home improvement, social/Government sector, etc. that are the major spenders in this medium.

570

Advertising and Integrated Marketing Communications

in 2011.1 20.4 per cent of the Indian population, with 35.8 per cent in urban areas and 13.2 per cent in rural areas. Hence, contrary to the popular belief that print is dead, print is very much alive and predicted to be so in the near future. TABLE 15.2

Print ad revenue size (in Rs. crore) and growth rate (in per cent)

Year

Ad revenue

Growth rate

Source: Pitch, Jan 2006; Pitch, Jan 2007; Pitch; Feb 2012; Pitch, March 2012

However, in the same breath, it is important to mention that while print still has a future in India

decline was the greatest in North America, where newspapers lost 11 per cent of circulation year2

collapsed since the mid-2000s (Figure 15.1), and the situation is similar worldwide. The decline is FIGURE 15.1

Print advertising revenues during 1950-–2011 Print newspaper advertising revenue adjusted for inflation, 1950 to 2011 $70,000

Millions of 2011 Dollars

$60,000 $50,000 $40,000 $30,000 $20,000 $10,000 1950

1960

Source: Newspaper Association of America

1970

1980

1990

2000

2010 mjperry.blogspot.com

Chapter 15

stunning

Print and Support Media

571

3

the increase in online ad revenues of newspapers has not been proportionate to the decline in their print ad revenues (Table 15.2). In 2011, American newspapers lost $10 of print advertising revenue for every $1 they gained in online ad revenue. This is because non-newspaper sites are doing a better job online of reaching the news media’s audiences.4 It is time for Indian newspapers to get more proactive before the print media crisis hits home. Traditional print primarily comprises of newspapers and magazines. In addition to newspapers and magazines, there are various other print-based advertising media like yellow pages, brochures newspapers and magazines in detail.

15.2.1 Newspapers on public news. In India and the world over, newspapers have played an important role in shaping

Through coverage of diverse topics such as business, politics, sports, arts and culture, science and technology, social issues, entertainment, advertising, etc., they document the changes taking place in a society over time.

Bengal Gazette, that is still being published is the Gujarati daily Mumbai Samachar that commenced operations from Bengal Gazette. Later, advertising started

and the major advertisers were British retail houses, whose catalogues provided an early example created a new breed of advertising professionals like artists, illustrators, copywriters, visualizers, photographers, etc.5 Today, the majority of newspapers are dailies serving the local populace. More than two centuries after their birth, newspapers still play the traditional role of delivering prompt, comprehensive coverage of news and special interest features. However, there have been radical changes in their form, presentation styles, offerings, appearance and marketing to keep pace with the times. They extensively use four-colour printing, eye-catching visuals, charts, a variety of supplements, and the like. Also, they are changing the way they deliver news. Online editions of most newspapers can be accessed on the Internet or emailed to customers’ inboxes. Archives of previous news articles can be searched and accessed. Individuals can even customize the selection of news articles they’d like to view or receive online.

world’s leading association for newspaper and media publishing, per cent of the ad spend among all the print media.7 The total number of registered newspapers as

572

Advertising and Integrated Marketing Communications

on 31st March 2011 was 82,222, according to the Registrar of Newspapers for India (RNI).8 Table 15.3 increasing literacy in Tier-II towns. Table 15.4 shows the top 10 newspapers and their circulations TABLE 15.3

Top 5 Languages in Terms of Ad Revenue Share (All figures in per cent)

Language

2010

2011

English

49

46

Hindi

27

30

Marathi

8

7

Telugu

4

4

Gujarati

3

2

Tamil

3

3

Source: Pitch, Feb 2011; Pitch, Mar 2012

TABLE 15.4

Top 10 newspapers and their circulations according to IRS Q4 2011

Publication

Language

Periodicity

2011Q3

2011Q4

Dainik Jagran

Hin

D

16458

16410

Dainik Bhaskar

Hin

D

14876

14602

Hindustan

Hin

D

12033

12045

Malayala Manorama

Mal

D

9912

9937

Amar Ujala

Hin

D

8836

8842

The Times of india

Eng

D

7467

7616

Lokmat

Mar

D

7438

7562

Daily Thanthi

Tam

D

7447

7503

Rajasthan Patrika

Hin

D

6918

6847

Mathrubhumi

Mal

D

6630

6666

(AIR numbers; All figures in ‘000)

15.2.1.1 Newspaper Classification Newspapers are usually categorized based on their geographical distribution, language, frequency of

categories.

∑ Dailies: Dailies are newspapers issued every day, although some may not be published on

general-interest content like political events, business, crime, social issues, entertainment, etc.

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573

syndicated material, discussions by experts on various topics, and some news. Dailies tend to cover larger areas and hence have higher circulation. ∑ because there is not enough news for a daily publication, or because they do not get enough

Gujarat Samachar The Sunday Times

∑

The Times of India and not a weekly.

Newspapers that circulate in the entire country are called national newspapers, for example, The Times of India, The Indian Express, Dainik Jagran, Dainik Bhaskar, etc. National newspapers usually have general-interest content, are published daily, and hence have large circulation. In order to cater to local audiences, national newspapers may also have supplements and editions carrying local news and features.

∑ , Gujarat Samachar and Malayala Manorama ∑

Although few in number, international newspapers such as The Stageman International Weekly, The International Herald Tribune, etc. cover news and events on a global scale. Other newspapers offer a few pages of international news that are likely to interest their readers or have international editions.

∑ Chronicle Pharmabiz is a weekly publication for the pharmaceutical, biotechnology and healthcare sectors, whereas Brand Reporter is a fortnightly publication on advertising and media. Many The Economic Times offers a media and advertising supplement called Brand Equity printing, supplements help advertisers get the reach of newspapers coupled with the colour and reproduction of magazines.

∑

Broadsheets are the largest of all newspaper formats measuring more than ¥ However, they are folded in half vertically to form four pages – one front cover, two inside pages and one back cover. The spread is called a full broadsheet whereas a single sheet with only a front and a back is called a half broadsheet. The large size of broadsheets makes them newspapers based on the number of their pages. Thus the pages enlarged to accommodate

Advertising and Integrated Marketing Communications

574

more news and save on tax. To contain these large papers in retail stores, on newsstands and on delivery vehicles, the papers are folded horizontally along a page. In a typical broadsheet newspaper, there are about 4 to 5 full broadsheets, one inside the other, broadsheets have been the most popular format for newspapers, today they are being increasingly replaced by compact, more contemporary formats like the tabloid or Berliner. The Times of India, ∑

¥ 14¾ inches per spread, making it much smaller than the broadsheet and thus easier to read and handle, especially while travelling. “Tabs,” as they are colloquially called, have about 5 columns per page. Not only the size, but also the journalism is condensed, simpler and less exhaustive than that of broadsheets. In fact, in a compressed form. The phrase tabloid press is used to refer to newspapers focusing on less serious content like gossip about celebrities, sports, crime, fashion and entertainment, sensational scandals, highly opinionated political coverage, local news, scandalous pictures, and even fabricated stories. Advertising in such tabloids is usually local and at times of

circulated for free, thus earning their revenues through advertising alone. In spite of a tabloid’s negative connotation, which is gradually undergoing a change, in the recent years some mainstream newspapers have begun printing in the tabloid format. Afternoon Despatch & Courier is Mumbai’s most sought-after evening tabloid. ∑ A third major format for newspapers is the Berliner or midi, which is sized between the tabloid and the broadsheet. Its spread normally measures about 12.4 inches in width and more functionality as sections can be separated and read by different people; the dimensions of the page make it easier to handle than a broadsheet, especially for reading while travelling; the format allows for a good display of photos; and the dimensions are in a visually appealing Mint by HT Media is also unconventionally designed in the Berliner format. (Figures 15.2)

∑ Small: Newspapers with a circulation of up to 25,000 copies per publishing day are considered

problems such as the inability to market themselves, over-reliance on government advertising, lack of funds to employ modern technology that can bring down costs in the long run, and weak content due to lack of journalistic talent. However, their forte lies in the exhaustive due to the representations made by their associations. Most small newspapers are members Medium Newspapers.

Chapter 15 FIGURE 15.2 (a)

FIGURE 15.2 (b)

Print and Support Media

Mint is unconventionally designed in the Berliner format

575

Advertising and Integrated Marketing Communications

576

∑

Newspapers with a circulation more than 25,000 and up to 75,000 copies per publishing day are considered medium. Most medium newspapers are members of the Indian

∑

Newspapers with a circulation more than 75,000 copies per publishing day are considered large. Large newspapers usually have a few geographical pockets of their stronghold. They are relatively less expensive to advertise in since their expenses are spread over a larger number of large Indian newspapers have become large media conglomerates acquiring interest in other media besides print.

These are newspapers that are circulated for a charge. Their editorial content is perceived to be more serious. ∑ They are distributed for free and earn their revenues solely from advertising. Their content is usually snappy and less serious. ∑

15.2.1.2 Types of Newspaper Advertising ∑

This is a form of advertising that, more often than not, contains graphic information over and above text, such as logos, images, illustrations, and such other art work. Display advertising is available in many different sizes and is spread throughout the newspaper. It allows the opportunity to create differentiation with creative messages and headings, visuals and colour. As Figure 15.3 indicates, display’s share within newspaper ad revenues has gone up from 78 per cent in 2004 to 80 per cent in 2005, thanks to sectors such horizontally in columns and vertically in inches.

FIGURE 15.3

Display advertising has the maximum share of newspaper ad revenue.

Share of Advertising within Newspaper Ad Types 2004

Display 78.4%

Tender and notice 6.9% Advertisements 8.4% Classified 6.3% 2005

Newspaper Ad Rev: Rs 48 Billion

Display 79.5%

Tender and notice 7.1% Advertisements 7.7% Classified 5.7%

Newspaper Ad Rev: Rs 56 Billion Courtesy: AdEx, www.agencyfaqs.com. Reproduced with permission.

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Print and Support Media

577

∑

the type of product being sold and a telephone number or contact information. Others may provide more detail, such as name of the advertiser, a detailed description of the product, price, etc. (Figure 15.4). FIGURE 15.4

Newspaper classifieds subsist, but under intense competitive threat.

Advertising and Integrated Marketing Communications

578

advertising. Although they have a smaller share compared to display ads, the margins for newspaper publishers can be as high as 25 per cent, making them more lucrative than display ads.9 television, and particularly Internet as illustrated by the Box below. Online classifieds Monster. com, Naukri.com Shaadi.com, Bharatmatrimony.com (Indiaproperty.com, Magicbricks.com

∑ categorized advertisements with graphical details like illustrations, colours, etc. can be found ∑ parties sharing their achievements, giving notices, advocating an issue, promoting a candidate, by organizations as special advertisements (Figure 15.5). Many newspapers also carry additional ad materials such as that are preprinted advertising messages, which are not bound but inserted into print media like newspapers. Ads are preprinted on a roll of paper that is fed into the presses. Advertisers prepare and print these inserts and send the quality reproduction advantages of a magazine.

15.2.1.3 Strengths of Newspapers Newspapers have been a

for many consumers garam chai even before breakfast and many people can’t begin their morning routines without the staple diet of the daily newspaper. They are a popular medium for advertising products, publicizing products, giving public relations

Chapter 15 FIGURE 15.5

Print and Support Media

579

Special ad in a newspaper.

information and delivering sales promotion news. Notably, newspapers have broad acceptance and consumers even seek them out for news, information and entertainment. Newspaper is one of the sought for the advertisements and promotional announcements featured in them.

580

Advertising and Integrated Marketing Communications

Another prime advantage is the

or market coverage of newspapers.

25 per cent, making newspapers the biggest contributor for the growth in the print media. The newspaper publishing industry boasts of more than 180 million readers (AIR – Average Issue Readership) in 2010 as compared to 173 million (AIR) in 2009, registering a growth of 5 per cent.11 Most importantly, unlike the plethora of magazine or TV choices available to consumers, most families read from among the 3-4 popular dailies in that particular region. Hence by placing an ad in the top 2-3 publications, advertisers can reach a relatively large mass audience with a single exposure. Also, since dailies are read on the same day, newspapers deliver to 100 per cent of their audience usually within the same day, which is quite advantageous for communicating limited-time offers. . Lead time is the amount of time between ad submission and its actual publishing. Newspapers have a very short lead time for ad material submission; for most dailies the closing time is only 24-48 hours before the The Telegraph allows advertisers to submit their material up to lead time allows advertisers to capture current events in their communication, make last-minute changes, or present instantaneous information. not only the general market of masses, but also special-interest niche groups through their added supplements. The wide array of editorial environments via different supplement sections (society, masses. Newspapers also offer

to advertisers. Apart from the standard

coupons, business-reply cards, tear-out cards, etc. Newspapers can accommodate unique ad space

The Times of India were introduced to Volkswagen – Volkswagen

Volkswagen Google India Volkswagen

Chapter 15

Print and Support Media

581

Newspapers are a medium and the primary source of local advertising. Newspaper advertising lets marketers feature products on a market-by-market basis, tailor campaigns dailies offer zoned editions for certain local areas within a state. Newspapers also provide a . A single copy of newspaper can reach university staff rooms, etc. Another advantage of newspapers is that they require lower advertising production large audiences with a single exposure. Hence, they are a popular choice for advertising new products that are being experimented in selected markets. like the opportunity for long copy exposition to communicate lengthy, complex, or detailed information and descriptions. It also lets readers control the amount of exposure to a given ad. They can spend as much or as little time with an ad as they like.

15.2.1.4 Limitations of Newspapers The biggest limitation of newspapers is

due to a large number of advertisements. There are

with ads. Advertisers try various gimmicks for getting around clutter – large size ads, use of colour, ad placement within editorial content (called island ads), ads running on multiple pages, etc. However, these additives do not come without an extra cost. Another serious weakness is its on inexpensive, rough-surfaced and porous paper pulp or waste paper called newsprint, which

and other lifestyle marketers thus do not patronize this medium. , usually only of a day. Also, repeat exposure is highly unlikely as most people read the paper in one go. Additionally, readers spend very little time reading of it, there is a clutter of ads that distract readers’ attention. However, this problem can be tackled in a limited way by advertising more frequently in the paper and choosing a section which would attract more targeted readers who are likely to have a greater interest in your product. Newspapers any other

reach people who have no interest in photography. It would be more prudent to advertise in a niche magazine like Photography and talk to people who are already photography enthusiasts.

15.2.1.5 The Newspaper Industry and its Audience of

582

Advertising and Integrated Marketing Communications

distributed by a newspaper in a day. Newspaper copies The number of sold copies is called newsstand sales and copies distributed for free. In addition to circulation, advertisers are frequently the reach of a newspaper. More often than not, the number of people who read a newspaper is not primary subscriber or purchaser of a newspaper “passes off ” the newspaper to another person in the family or when the publication is read in public places by many people, like in airport lounges, or of a Total audience = readers per copy (total primary + pass-along readers) ¥ circulation and 2.9 pass-along readers per copy = 3.9 readers per copy ¥ 50 lakh = 195 lakh readership Remember that newspaper reach can be determined either on basis of its circulation or readership, latter to the number of people reading them. The main source of information about the newspaper industry is the , established in 1948 as a voluntary effort by national advertisers, advertising agencies and newspaper publishers in their common interest to measure

either sold directly to and paid for by the reader, or sold by the publisher through distributors at a commission not exceeding 40 per cent of the published or cover price. In other words, the actual

newspapers and periodicals, covering distribution data of copies in various states and major cities,

periods, information of single copy subscription sales, copies distributed at discounted rates, free Figures 15.6a and 15.6b Hindu for distribution, etc.14

example, Figure 15.7 shows an ad by Anandabazar Patrika Another source of information is the

established

industry statistics, in addition to performing many other statutory and non-statutory functions. 15

Chapter 15 FIGURE 15.6 (a-b)

FIGURE 15.7

Print and Support Media

583

ABC certificate of The Hindu in 2005.

Anandabazar Patrika quotes ABC certified circulation to indicate its large audience size.

Courtesy: Superbrands, Volume II, 2006. Reproduced with permission.

584

Advertising and Integrated Marketing Communications

In addition, independent readership surveys of publications are conducted, which also provide valuable information regarding newspaper circulations, literacy and readership rates, readership patterns, and the like. The notable among these surveys are the and for demographics, media habits and product/brand usage across a representative sample of towns and villages in India.17 18

The newly merged 19

newspapers in becoming more responsive to the needs and interests of their readers. It is also useful to the marketing communications strategist in determining the nature and size of the audience reached by a newspaper and considering whether it would be the right choice for her product.

education, occupation, income, location, etc. of its users. Figures 15.8a-c depict Anandabazar Patrika Pitch magazine, Mathrubhumi issued a series of ads that compared the newspaper’s reach among various audience groups (such as age 20-30, MHI 10K+, MHI 20K+, female readers, post-graduate professionals, etc.) with its nearest competitor to indicate its superior reach. This lets the media planner match the characteristics of her target audience with that of the readers of a newspaper.

medium of education, type of home and cooking habits, mode of travel used for travelling to work, etc.

that provide syndicated research studies on lifestyles, retail behaviour, media consumption patterns and behaviour, product/brand preferences and the like, and also include some information on newspapers. These studies are helpful for comparing newspapers with other media choices. In some of their print adsDainik Bhaskar and Malayala Manorama state the consumer durables consumption of their audiences to attract advertisers of consumer durables and related products to the paper. In addition, there are local and national newspaper associations that

bodies that represent newspapers to consumers, advertisers, advertising agencies and the government.

Chapter 15 FIGURE 15.8 (a-c)

Print and Support Media

585

Anandabazar Patrika indicates its reach among various audience groups.

Courtesy: Superbrands, Volume II, 2006. Reproduced with permission.

society acts as the central organisation of the press in India and promotes and safeguards the business 20

Besides representing a large

are also mandated to screen the advertisements they accept and ensure that they are legal, truthful and appropriate for consumption by the society.

15.2.1.6 Buying Newspaper Space and that received from advertising. In India, advertising accounts for up to 80 per cent of the revenues publishing.21 The volume of space devoted to advertisements and news varies from newspaper to newspaper and also from time to time depending mainly on the availability of advertisements and news items. The cost of newspaper space depends on a number of factors like the number of markets bought and the newspaper’s circulation, type of newspaper, selection of colour or black-and-white ad, cost

586

Advertising and Integrated Marketing Communications

recovering from the economic downturn and successful expansion in new geographical areas, many players have increased their advertisement rates. In earlier times, the unit of advertising rates was an agate line. An is a measure of space, usually one column wide and 1/14 Today, newspaper rates are also quoted in or . However, since the columns of different newspapers are of varying width, there are variations in the number of columns. In fact, the number and size of columns sometimes vary from page to page and even on the same page for the same newspaper. The column size varies on a need basis considering factors like availability of advertisements, their sizes, news content, etc. This make matters worse for advertisers

constituted by the Ministry of Information and Broadcasting recommended that for rate purposes, publish their rates in rupees per square centimeter, a majority of vernacular language papers still The Indian Express and in The Times of India (Figures 15.9 and 15.10) show rates being published in rupees per square centimeter. The Indian Express rate card shows package rates for buying space in multiple editions. Although newspapers allow advertisers to buy space per square centimeter, they may require ad materials to column, they may be treated as a column wide. FIGURE 15.9

Popular newspapers quote rates in rupees per sq. cm.

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Print and Support Media

587

FIGURE 15.10

Many newspapers that have adopted international dimensions for publishing have switched to column width at 21/ columns wide, and with 1/8 inch gutter between columns. This has led to a reduction in page width by pages, allowing a single ad to be used in many places without resizing. The 57 standard units or Figure 15.11.22 Advertising rates for local advertisers are usually based on the column inch, which is 1 column wide by 1 inch deep. Media planners can calculate total costs by multiplying a) rates per column inch by the number of column inches,

588

Advertising and Integrated Marketing Communications

FIGURE 15.11

ROP Standard Advertising Unit System.

1 Column 2-1/16" 5 Columns 10 -13/16" (There are four suggested 13 x FD*

2 Columns 4 -1/4" 6 Columns 13" double truck sizes) 13 x 18

3 Columns 6 -7/16" Double Truck 26 - 3/4"

4 Columns 8 -5/8"

13 x 14

13 x 10.5

*FD (Full Depth): can be 21" or deeper. Depths for each broadsheet newspaper are indicated in the SRDS. All broadsheet newspapers can accept 21" ads, and may float them if their depth is greater then 21". Tabloids: size 5 column inches x 14" is a full page tabloid for long cut-off papers. Mid cut-off papers can handle this size with minimal reduction. The N size, measuring 9-3/8" x 14", represents the full page size for tabloids and other short, cut-off newspapers. The five 13" deep sizes are for tabloids printed on 55" wide presses. Source: www.echo-media.com

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Print and Support Media

589

Newspapers print their rates in a document called a that contains prices and descriptions for the various ad placement options. They offer different rate structures, which , i.e. standard advertising rates with no discounts whatsoever. Most others have an wherein they allow various types and levels of discounts based on frequency, volume, desire City Times supplements by The Times of India (Figure 15.12) varies with the number of insertions and the size of the advertisement. FIGURE 15.12

Rates vary with ad size, number of insertions, and use of colour.

590

Advertising and Integrated Marketing Communications

Media planners, who purchase more insertions and more advertising space, get proportionately lower rates. are lower than open rates and are offered to advertisers who plan to run a series extent of space purchase within a year. If less than contracted space is purchased in a year, a that is higher than the contract rate is charged. If more space is bought, a rebate is provided. Many advertisers also buy newspaper space based on – single discounted rates for space buys in multiple publications offered by publishers who own many newspapers in a number of markets, although each publication is likely to have different rates. rates, which allow publishers to position the advertisement on any page. Alternatively, advertisers can request placement at a certain location, for example in the business The Telegraph charges positions as indicated in Figure 15.13. for which a higher is charged. The Box below further illustrates how certain positions get more preference over others. FIGURE 15.13

Newspapers charge premium for special ads and positions.

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Print and Support Media

591

Positions in Newspaper Advertising

newspapers charge only 15-30 per cent extra for multi-colour advertisements on their card rates. As charge an extra amount of 50 per cent or more for colour advertisements.23 In addition, there are

instance, when national advertisers place advertisements, they usually do so through advertising agencies which get about 15 per cent commission.24 Advertising agencies also get better rates due to

individual newspaper publishers. This rate structure is about 40 per cent of the commercial card/

25

continues to account for 10 to 15 per cent in terms of volume of the print players.

∑ Members shall not favour direct advertisers by giving them lower rates, discounts, longer credit periods, preferential positions, etc. ∑ Members shall not allow a commission more than 10 per cent to agencies that are not

Advertising and Integrated Marketing Communications

592

∑ Members shall either retain commission granted by media owners or charge the clients a service fee not less than 15 per cent of the client’s gross expenditure. They shall not accept discount or commission, other than the regular agency commission allowed by the publishers without the client’s knowledge and consent. They shall also make their best efforts to obtain for their clients the lowest rates to which such clients are entitled. ∑ Agencies shall not waive off any portion of the standard rate of commission for their work, procure advertising space or facilities for free or at reduced rates, supply advertising material for free or at reduced rates, settle the salary of any employee of the advertiser, or grant discounts to advertisers. However, agencies can share commissions with their overseas counterparts.

15.2.2 Magazines Magazine is a specialized and prestigious medium that is keenly considered in many media planners’ mixes. However, in India, they are quite an underexploited advertising category since 80 per cent of the magazine advertising revenue goes to only 17 per cent of the magazines according to the Indian meager 3.5 per cent of print ad revenues as of 2011)27, they are still a favourite with advertisers of cent to the total print advertising space (TAM Media Research). Like newspapers, magazines too are facing tough times from various broadcast, virtual and support media. There has been a downward

magazines have witnessed a 7 per cent decline in overall readership since 2009. However, since a lot of new niche titles are not even accounted for by the readership study, the decline in reach is estimated the rise. Niche titles are improving the quality of their editorial content, bringing in more original content that readers may not get elsewhere.

15.2.2.1 Magazine Classification which they are directed and the frequency with which they are published. On the basis of the 1. directed at the masses and are supposed to interest everyone. Their editorial is hence a mix of political, business, social, crime and entertainment related news and information. Many reputed general interest magazines conduct independent surveys and feature research articles India Today, Outlook, Reader’s Digest, The Week, etc. 2. groups on the basis of age, gender, hobbies, interests or the like (fashion, men, women, Femina, Women’s Era, Savvy,

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Cosmopolitan, New Woman, Elle, etc.; hobby or interest magazines such as Auto India, Overdrive, TopGear, Outlook Traveller, Capital Market, Living Digital, Photography, Auto India, Competition Success Review, Voyage, etc.; computer magazines such as Computers Today, PC World, PC Quest, etc. The number of special interest magazines in India has steadily grown and today there are magazines on various subjects ranging from travel, interiors, housekeeping, auto, health, art and even weddings and bridal fashion. By targeting people with similar interests, special interest magazines allow advertisers to reach focused audiences and closely connect with them. Also, most advertisements of these magazines are in sync with their editorial environment. Advertising has a very important in products related to health, lifestyle, travel, etc. led to a similar rise of health, lifestyle and travel magazines. Niche magazines are characterized by relatively lower readership but higher margins than general interest magazines. On the basis of the 1. India Today, Outlook, Reader’s Digest, The Week, etc. are popular general interest consumer magazines. Most magazines in the industry are targeted to consumers. 2. Business magazines target channel members like retailers, wholesalers and distributors; manufacturers and service providers; or specialized professional groups like relevant information regarding the industry, careers and the like, offering a focused and Advertising Age, Harvard Business Review, Indian Trade Journal, Journal of Institute of Engineers, British Medical Journal, Indian Journal of Pharmacology, etc. Till date business magazines were mostly subscription-based, but now they are also going for increased visibility through newsstand sales due to increasing competition and entry of foreign publishing houses. . Monthly magazines are the largest category. The others are fortnightly, weekly or quarterly.

15.2.2.2 Strengths of Magazines This

in terms of extremely focused readers allows advertisers to connect better with

advertised and the kind of magazine or audience reading it, there is already a built-in interest in and working women avidly read Good Housekeeping, making it a prudent choice for advertisers of home décor products and such. Magazines also segment audiences on characteristics other than Femina and Good Housekeeping are predominantly read by women, Playboy, Cricket Today and Sportstar to its advertisers. Magazines also offer geographic selectivity with regional magazines or regionalChitralekha and Stree target Gujarati audiences, Malayalabhumi and Deepika reach Malayali audiences whereas Saras Salil and Grihshobha draw high percentage of North Indian readers.

594

Advertising and Integrated Marketing Communications

Another noteworthy strength of magazines is their which gives newspapers a run for their money. Magazines have led the way in graphic facsimile. The

which are quite useful for brand image advertising that relies heavily on colours and visuals. Moreover, modern-day computer software further enhances visual reproduction through special editing, formatting styles, stock photo collection, etc. Magazines are also advantageous for their that broadcast media or even newspapers do not possess. Many special interest magazines are leisurely read in multiple sessions and many times preserved for their interesting articles. Thus, magazines offer greater frequency of exposure through a possible second reading and readers spend more time with magazine ads, which are more likely to be of their interest. And as mentioned earlier, general time spent reading by Indians has increased, which rubs off well on magazines as well. Additionally, there is a as Magazines also present advertisers with a number of for advertising in terms of graphics and positioning, available at an extra cost. They are also willing to bend rules to help Twinkle Beauty Parlour TV serial was given The Brand Reporter, of the magazine was underneath this extra cover, ensuring an exclusive clutter-free exposure for the Pitch magazine carried a similar advertisement for Dainik Jagran newspaper (Figure 15.14). FIGURE 15.14 (a-b)

Dainik Jagran tries the creative option of advertising on an extra cover of Pitch magazine.

Chapter 15

Among other creative options, magazines provide

and

Print and Support Media

595

that are special folds

inwards with parallel folds and meeting in the centre of the page without overlapping. They help place the ad immediately behind the split front cover. (Figure 15.15a) Gatefolds are in the form of the right or the left edge of a cover or inside page folding inwards to reveal an extra page (Figure 15.15b). Advertisements enclosed in split covers and gatefolds weave a surprise element around them and like India Today and Reader’s Digest carry gatefolds. Another creative option is of , where advertisements can extend beyond the normal margin of the page, to the edge of the page, with no white space around them (Figure 15.15c). Try thumbing through some magazines which have bleed prominent, more colourful? Magazines also accommodate novel creative executions – holograms, die-cut pop-ups that jump (as seen in Figure 15.14)special DataQuest used quarter and full page ads on consecutive pages of magazines mentioning a different Various can also be used like attached inquiry boosters such as coupons, business-reply cards, tear-out cards, product samples and other kinds of outside material attached in the magazine. card manufacturers have used singing inserts to promote their cards. Another special type of ad is the (combination of advertisement and editorial) which is actually an advertisement written in the tone of an editorial. It reads like a legitimate news story

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FIGURE 15.15 (a-c)

Creative media usage options for magazine advertisers. Front cover behind these flaps

ADVERTISEMENT

(a) Page 1 of ad behind Front cover this page behind this page

ADVERTISEMENT

PAGE 1 OF MAGAZINE

(b) Physical page size

Regular ad within defined print area

Bleed ad

White space (c)

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but is actually a special promotional feature that is paid for by the advertiser. Unlike advertisements

Inserts and special ads are not sold separately by magazines but the marketing communication manager can create and negotiate them. Another creative way of advertising in magazines is through Not very popular in India, these are special magazines published by the advertisers themselves with the main objective of exclusively or selectively promoting their products. They also

of admazines. Magazines also accord

to the advertised product. The positive image of

of advertising in trendy and upscale magazines like Femina and Elle. Another advantage offered by magazines is that of . Readers are known to read magazines with avid interest.

magazine readers are less likely to view their ads as an intrusion because they are in greater control of the ads. They can view them as much or as little as they please. Moreover, magazine ads are more likely to be relevant to their content than that of any other media. These factors make readers more receptive to magazine advertising than advertising in other media. Additionally, like other print media, magazines too allow i.e. a detailed write up to promote the product, a great Magazines also aid by providing services like split runs. Advertisers can test two or more versions of an advertisement, which can be printed in alternate copies of the same issue. Through inquiry boosters and coupons attached to the ad, advertisers can track as to which version of the ad generated more response.

15.2.2.3 Limitations of Magazines The primary limitation of magazines is the . They cannot offer the reach and frequency of other media. By advertising in a single magazine, an advertiser can three magazines is less than one crore, which is not even 1 per cent of the total population of India. As seen in Table 15.5 Vanitha) has readership over 25 lakh. Most top magazines in India have lost readership share. The readership of the top 10 magazines (by AIR) dipped by around 9 per cent losing almost 1.5 million readers.28 . Thus, high reach cannot be built by advertising in any single magazine. Also, building high year. And adding more magazines to the media mix increases both management time and cost. of magazines are quite high, single page colour insertion in the popular women’s magazine Femina may cost as much as Rs. 84,000 as seen in its rate card in Figure 15.16

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Advertising and Integrated Marketing Communications

cent more, i.e. up to Rs. 1,34,400. Obviously, absolute costs of magazines need to be weighed against relative costs, which are lower for niche magazines. TABLE 15.5

The readership figures of top 10 magazines

Publication

Language

Periodicity

2011Q3

2011Q4

Vanitha

Mal

F

2590

2516

Pratiyogita Darpan

Hin

M

2025

2001

Saras Salil

Hin

F

1941

1768

Samanya Gyan Darpan*

Hin

M

NA

1678

India Today

Eng

W

1636

1611

Meri Saheli

Hin

M

1209

1213

Malayala Manorama

Mal

W

1307

1206

Cricket Samrat

Hin

M

1159

1154

General Knowledge Today

Eng

M

1087

1092

Karmakshetra

Ben

W

1047

1090

* New introduction in IRS (AIR numbers; All figures in ‘000)

FIGURE 15.16

Advertising in popular magazines is an expensive affair.

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Also, magazines demand a sometimes up to 90 days in advance, for placing an ad. This means that an ad for the December issue might have to be submitted by a closing date in October. This requires advance planning and purchase of ad space by media buyers. Moreover, because of this limitation, short-notice announcement ads cannot be featured in magazines. Like most other mass media, magazines too are bogged by advertising although not with the same intensity of broadcast media. Additionally, in special interest magazines the competing advertising content is also quite similar in nature, compounding the problem of clutter. but over time depending on when the magazine gets read. Hence, information that requires acting upon in time is not suitable for publishing in magazines.

15.2.2.4 Magazines and their Audiences The total number of copies sold to subscribers and through newsstands is called the primary or total circulation issue, some magazines may specify a guaranteed circulation rate that comes with the guarantee that the

from the

Like in the case of newspapers, information about magazines also comes Net Paid Circulation of

valuable because they provide other important information like magazine distribution by state or region, percentage of newsstand vs. subscription circulation, circulation sold at less than full value, Like in the case of newspapers, magazines too have pass-along readership. Advertisers are frequently interested in this pass-along, secondary or out-of-home or Total audience = readers per copy (total primary + pass-along readers) ¥ circulation

One of the ways of selecting an appropriate magazine for advertising is by

audience. In addition, individual publications make available information regarding the characteristics

that provide syndicated research studies on lifestyles, retail behaviour, media consumption patterns

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and behaviour, product/brand preferences and the like, and also include some information on magazines. These studies are helpful for comparing magazines with other media choices. Tehelka

Median Age

37 years 90 per cent Rs. 70,000 p.m. 73 per cent

Top Management (Source: Tehelka’s print advertisement)

In addition, there are local and national magazine associations that work to (AIM) is one such body that represents magazines to consumers, advertisers, advertising agencies and the government. It also undertakes research from time to time to promote the growth of magazines.

15.2.2.5 Buying Magazine Space Like in the case of newspapers, the 2 primary sources of revenue for magazines are the amount received through circulation and that received from advertising. According to the magazine industry, around 70 per cent of a magazine’s revenue comes from advertising. The amount received through circulation can be from newsstand sales or subscription. Newsstand copies are charged higher and offer greater visibility, which is especially important for magazines that are an impulse purchase product. On the

of magazine space while making purchases.

various units as depicted in Figure 15.17. positioning, special mechanical or production requirements like tear out cards or bleed ads, national in space volume purchased. As indicated in Figure 15.16

by editorial matter), checkerboard, etc. can also be negotiated with publishers at an extra cost. Most magazine advertisers select the medium for its ability to reproduce high-quality colour images and give ads in colour, which adds to their cost. Ads can be placed in black-and-white; black-andwhite plus one, two or three colours; or four colours – the most expensive of them all. Nowadays with

Chapter 15 FIGURE 15.17

Print and Support Media

601

The Indian Express Group quotes rates for its various magazines.

can be worked out to avail volume discounts for the total space purchased in various magazines of India Today, Business Today, Computers Today, Teens Today, Cosmopolitan, etc. Advertisers can purchase ad space in a mix of these magazines to avail of certain package rates. Magazine rates also depend on the placement of the ad. The equivalent of newspapers’ Runfor magazines, which allows publishers to place the ad anywhere in the magazine. It is the cheapest option. The four cover positions (front cover, back example, in the case of Femina and Filmfare, the inside covers cost 35 per cent more than the standard 15 per cent more (Figure 15.16). more than regular ads. National buys in national magazines are proportionately less expensive than placement in selective geographic editions alone. However, regional or geographic editions present small advertisers with the opportunity of advertising in prestigious national magazines.

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Buying media space depends on a number of factors ranging from circulation and readership Box below on Saras Salil illustrates how circulation alone cannot entice advertisers.

Saras Salil Gets a Facelift29 Saras Salil,

Delhi Press Patra Prakashan st

Saras Salil

Saras Salil Saras Salil Saras Salil Saras Salil the realization that it needed to go

∑ Design changes:

∑ Content changes:

Saras Salil’s

Saras Salil Manch,

Saras Salil’s target Saras Salil’s

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non-bleed ads vary from publication to publication, although there are a few standard sizes. Advertisers also need to remember important dates related to a magazine. A publication’s is the last date for acceptance of advertising material for an issue. The refers to the date mentioned on its cover. There are various formats for indicating the cover date, for example May of the magazine, i.e. a magazine with the cover date of May’07 may actually start selling from 15th April, 2007. In some instances the difference between the cover and on-sale dates is supposed to indicate the shelf-life of the magazine or the time period till which newsstands should display the magazine. The difference between the closing date and date of sale is called the that magazines need to collate the editorial matter and advertisements. Although traditionally the lead times in magazines are as long as 2 to 3 months, computer processing, electronic composition of pages, and satellite transmission to printers are shortening the lead times.

15.3 THE OUTDOOR MEDIA Outdoor advertising or out-of-home (OOH) advertising, as it is now called, is believed to date back to them on public roadways. Also signs were used outside merchantile establishments to identify them and give them a distinct identity. Modern outdoor advertising has evolved over time and with the onset of modern technology is beginning to gain its rightful place in the media plans of marketers today. Hitherto, in India, outdoor advertising has been largely dominated by the unorganized sector. There have been very few national players but a large number of local players. Hence not much attention was given to this medium so far. However, all that is beginning to change with the entry of large multinational players in this sector. The consists of all advertising media that is consumed outside the home environment. They include hoardings; retail signages; transit media such as advertising on airplanes, trains, buses, taxis, etc.; point-of-purchase material such as posters, banners, streamers, product crowners, etc. Unlike other forms of media, the outdoor medium has very little editorial matter or programming. Hence innovative design solutions become extremely important for this medium. Overall, the outdoor medium is growing at a very fast pace in the country, fuelled by the retail revolution that is taking place. However, there have been periods of slump in 2009 and 2011, when there has been a de-growth of 20 per cent and 10 per cent respectively, due to economic slowdown.

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Advertising and Integrated Marketing Communications

But the rate of growth is expected to stabilize and increase in the coming years with the growing Air Deccan had started a new trend when it made available its aircrafts for advertising. Also, improving highways are encouraging more and more people to take to the road for holidays, thus increasing the amount of time being spent outdoors. This will naturally encourage advertisers to spend more money on outdoor advertising.

Amul, Air India, etc. have been traditionally making very effective use of the medium. Today some of the large outdoor advertisers include print publications, airlines, retail stores, etc. a haphazard system of setting up sites where one pleases to the development of proper street

spaces and transport systems, outdoor advertising has suddenly begun to look very attractive and appealing. It is estimated that every human being spends one third of his life outdoors. Hence there is a 33 per cent chance of his being exposed to the outdoor medium. However, the manner in which the outdoor medium is consumed is very different from the way the other media such as print, television and the Internet are consumed. An understanding of this process is important to determine how to use the medium. The foremost difference in this medium is that the choice of exposure to this medium is usually not determined by the consumer, unlike say print or television, where the consumer buys the newspaper to read or puts on the television set to view a programme, and thus gets exposed to medium. The medium gets exposed when the consumer is in motion or the medium is in motion, message therefore has to be crisp, intrusive, and eye catching. Long copy matter is out, since the consumer rarely has the time to stand and read. Long copy matter is also constrained by advertising important difference between outdoor media and the other media is that the consumer does not have to pay for exposure to this media, unlike say print, television or cinema. The outdoor medium is largely dominated by the unorganized sector. There are some large nationally. However, most of the operators are local and small scale. Today, with the advent of bigger multinational players in this medium, outdoor solutions have moved from merely the sale of place in the media budgets of advertisers. The modern outdoor advertising agency is organized very differently from what it used to be sites, today’s advertising agency is expected to do much more. It is expected to function more or less

from advertisers for accountability of advertising spends, new methods are being explored for determining the effectiveness of outdoor advertising.

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15.3.1 Types of Outdoor Media The earliest form of outdoor advertising has been billboard advertising. The origin of the name on wooden boards and placed outside theatres to announce various performances. Later on, the idea

prominent types of outdoor media used today. Hoardings are structures put up in public spaces such as streets, bus stands, railway stations, airports, etc. They are fabricated out of strong material such as steel or iron vary from location to location. The hoarding may be painted with the advertising message or it could be a large format paper or vinyl print. They may be lit or unlit. Hoardings can be lit from the front as in the case of those that are painted or they can be lit from behind as in signals so that passersby can have a better chance of seeing them, while they wait for the Many companies have their own hoarding sites whereas some merely trade sites. Having one’s own sites offers better leverage in terms of negotiations for the supplier. The kind of impact that a hoarding will give depends not only on its location, but also on its size, its view from the street, its lighting, the attractiveness of the advertising message, etc. Today the advertising effectiveness of a hoarding is enhanced using cutouts, moving images, etc.

products are sold largely through pan gallas. The company has chosen certain premium outlets in this category to design the shop fronts. In the rural areas, fertilizer companies use this which are also retained by companies to display their products for a fee. being designed with advertising in mind. These shelters are far more attractive than the ones used earlier and compare with the best in the world. material as it is often called, takes several forms such as posters, stickers, banners, streamers, product of the shop. These have a very small shelf life, given the number of companies that vie for that space. Also many retailers dissuade salesmen from sticking posters in the shops as this the company salesman has with the retailer normally determines the space that will be made

and buntings are strung in the shop in a prominent place and act as a good reminder to customers who come into the shop. These kind of promotions are good for low involvement products as they prompt a sale at the point of purchase.

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Advertising and Integrated Marketing Communications

Display stands come in very innovative shapes and sizes. Maggi noodles introduced attractive nylon net baskets in the market, where the product packs were stored and dispensed. Cadbury’s is another company that provides glass dispensers for displaying its products near cash thus help promote the company’s products. In many cases the cost of such heavy equipment is borne by the retailer as part of the agreement with the supplying company. products on the streets. They are provided with the company’s t-shirts and often they stand at important road junctions with the company’s banner. They also sometimes distribute promotional literature. This is a form of outdoor promotion, which can be used as a reminder for the company’s brand. These are usually very large in size and can go up to several hundred feet. The advantage here is that by virtue of its location it can be noticed from a great distance. the air. This helps noticeability because of the lack of clutter, unlike other outdoor media. These form a very attractive outdoor medium. They are electronically controlled and offer several creative possibilities. However, they are impactful only at night and therefore not of much use during the day. Also given the poor power situation in the country today, there could be blackouts during power cuts. of a building is covered with outdoor signage. This form of outdoor is normally found at railway stations, airport terminals, and bus stands. As the very name suggests transit media refers to all media that is in transit or in motion. This includes primarily public transportation such as buses, taxis, railway trains, aircrafts, etc. The history of transit media dates back to the mid-nineteenth century, when ads were displayed outside streetcars. Today, literally any automated vehicle, including twowheelers, is used to advertise. As of today, advertising through transit media happens both inside as well as outside the vehicle. Buses carry panels on the back and the sides of the bus. There are ads inside the buses as well. As can be appreciated the ads inside the bus will be seen by the bus commuters only. This is a very limited audience compared to those who have a chance to see ads displayed outside the bus. However, the audience inside the bus gets to spend more time with the ads at a time when they have nothing better to do. Trains are another good medium, particularly the short distance local trains. Mumbai locals carry several thousand passengers every day and run through several stations along the way. Advertising on the outside of the trains is a good way of reaching the daily commuters. Of

the general compartments.

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Bingo Bingo

Bingo Chips Bingo, Bingo Bingo

Taxis, auto rickshaws and two-wheelers that are privately owned also form good transit media. very little. The movie 3 Idiots 3 Idiots.” In the case of the two-wheelers, the cover of the spare tyre at the back of the vehicle is very often used as an advertising surface. Air Deccan pioneered the concept of advertising on the aircraft. However advertising within the Incredible India campaigns are also effectively advertised on London cabs and other transit media in foreign countries.

15.3.2 Advantages and Disadvantages of Outdoor Media There are certain advantages of the outdoor media, which are enumerated below. ∑ Outdoor gives to the message. It is presumed here that the outdoor medium is visible during the night as well through proper lighting. ∑ Outdoor offers . Unlike the other media such as print or television the outdoor message remains in one position as long as required, thus increasing the opportunity to see. ∑ It offers , in that one can choose the exact location where the message needs to be beamed. Thus a retailer who wishes to target a particular locality can place an ad on a hoarding site that caters to that locality. ∑ It offers , in that a sale advertisement can be carried just before the sale and terminated on the last day of the sale. The outdoor site can also be used for carrying other ads of the same company at relatively low negotiated cost. ∑ It can other media.

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Advertising and Integrated Marketing Communications

∑ It can be used as a to guide consumers to a particular location. ∑ It offers scope for , in terms of size, colour, shape, audio-video, and 3-D display. ∑ It can , given that most people take the same road to work, college, etc. everyday. ∑ It provides to consumers who are in a hurry. In these jetpaced times this assumes particular importance. There are certain disadvantages of the outdoor media, which are listed below. ∑ The outdoor is a , as the consumer is hardly stationary at a location to read the message leisurely. ∑ The outdoor medium is often of the consumer. This is because the consumer has not bought the advertising along with the medium, unlike in print or on television. ∑ The outdoor medium does lend itself to . Hence it is unsuitable as a primary medium, wherever there is need for a detailed explanation to the consumer. ∑ It gets exposed to all and sundry and it is very . ∑ It becomes a medium when large audiences need to be reached. A national campaign on Outdoor would be far more expensive for the same reach than print or television. ∑ It is as one has to rely on the supplier to ensure that the ads appear on time and stay there during the campaign period. ∑ There are no good measures for ascertaining reach and effectiveness of the medium as there is that is available for this medium unlike for print or television. There could be that might hamper campaign planning.

CASE IN POINT Amul – The Taste of India30

Amul and Dhara Amul

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610

Advertising and Integrated Marketing Communications

Amul’s Amul Butter

Amul Butter

Amul Butter Amul Polson

Amul the Amul

15.3.3 Buying Outdoor Media As we have seen in the earlier paragraphs, there are several types of outdoor media that are available to advertisers and each one poses its own challenge in terms of media buying. Besides, with the growing importance of the outdoor media, there is a demand from advertisers to ensure that there is adequate accountability for the money spent on this medium. required of the local municipal corporations before a hoarding site can be set up. The authorities

advertising, they normally follow a process of inviting bids through a “tendering process.” In the case of static sites, rates are normally charged on a weekly, monthly or annual basis. In the case of transit media rates are normally negotiated for a period of three months or more.

negotiations become extremely subjective. In such cases, the more powerful negotiator holds sway. One of the early attempts in the direction of measuring outdoor effectiveness was the development

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advertising agency Ogilvy and the outdoor agency Aaren. The study was carried out to evaluate the hoarding sites in Mumbai and develop a weighted index based on criteria such as visibility, height and Another important aspect of buying outdoor media is the ability to ascertain whether the ad appears consistently as planned. Very often it is seen that the vendors of outdoor sites often slip up in ensuring that ads appear on their sites on time and remain there during the contracted period. Due to various reasons such as natural calamities, vandalism, unauthorized constructions, etc. sites get damaged or are removed, with the advertiser being none the wiser. Many advertisers therefore set up their own monitoring mechanisms for doing this, either by hiring the services of an outside agency or establishing a system through their own sales force if they have one large enough to do the job well and cost effectively.

paper and then getting it pasted is involved, it is important to have some knowledge of the process and technology. Also when printing on vinyl sheets is involved it is important to know how it is done. without any cost or sometimes one needs to pay. The rates depend on the location and retail outlet. It is also important for the buyer not only to have knowledge of the prevailing rates, but also some knowledge of the material employed. Normally the preparation of the material is left to the production people, but the buyer must recognize that this has implications on the cost of the outdoor campaign.

15.3.4 Regulatory Mechanisms in Outdoor Media In most places it is the local municipal bodies that govern and regulate the outdoor advertising Unfortunately sometimes clashes arise between the various regulatory bodies because of a lack of clarity. Hence sometimes one could have a situation where the railway authorities permit sites on their premises, which are objected by the municipal authorities, and sometimes when the sites are

intervene as happened in Delhi where the courts opined that if the hoardings were haphazard and

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Advertising and Integrated Marketing Communications

Summary (43 per cent) in India, after television (44 per cent). Newspapers and magazines are two major forms of print media. categorized based on their geographical distribution, frequency of publishing, physical size, coverage, circulation, etc. Newspapers are a trusted and sought-after source of information with extensive market penetration. They also offer long lead times and geographic segmentation. However, they are bogged down with clutter, poor reproduction quality and short lives. They also lack selectivity in

etc. Newspaper rates are quoted usually in terms of square centimeters or column inches. specialization, the type of audience, and the frequency of publishing. Magazines offer excellent visual reproduction quality, a long lifespan of ads and multifarious creative options. However, because of

is usually sold on the basis of pages or column inches. Although their reach is declining, new niche titles are on the rise. Outdoor advertising is gaining in importance in the country today. However some of the problems are that outdoor continues to be an unorganized business and there is very little data available about its effectiveness. Outdoor media are of various types, including stationary, transit and point-offollowed and approval obtained from local government authorities. Outdoor advertising has a great future and as more research is done in this area, it will help understand the various aspects of this medium.

Exercise The Telegraph (Figure 15.13) as limiting factors for advertisers? How?

Figure 15.16

Table 15.6 and answer the questions below.

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TABLE 15.6 1998

2006

Indian residents

10%

67%

Female readers

7%

13%

21-40 year olds

77%

Spent at least 15 minutes in reading

79%

Professionals from IT, education and media

48%

Readers who accessed archival material

47%

Readers who accessed matrimonial ads section

2.5%

Source: “Indian online newspaper readers have outstripped NRI readers: Survey,” (Online study conducted by the Department of Communication & Journalism, University of Pune,) Nov 29, 2006, www.exchange4media.com

India? they be most interested in? and revenue earning tool? readership is dominated by youngsters?

Suggested Class Projects

factors are responsible for this?

Critical Thinking Questions

2. As an advertiser of sports gear, which of the following magazines would you choose for advertising, given that all other factors like target audience, circulation, ad rates, etc. are the same for both? Debate the pros and cons of both. a. Magazine A with 90 per cent of circulation revenue from subscriptions b. Magazine B with 90 per cent of circulation revenue from newsstand sales

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Advertising and Integrated Marketing Communications

CASE STUDY The following case study throws light on various issues related to the Indian newspaper market and industry, illustrating the dynamics of the print medium. Answer the discussion questions related to the case at the end.

Divya Bhaskar Rocks the Gujarat Newspaper Market with its Launch31 The Rs. 1700 crore business conglomerate Bhaskar Group has a strong presence in the print media Dainik Bhaskar has 20 editions across various states of India. The group’s national daily Dainik Jagran has the maximum readership in the country whereas Dainik Bhaskar Divya Bhaskar from Ahmedabad and penetrated into Gujarat within 18 months of its inception.

The Need for a New Paper As part of its pre-launch exercise, in March 2003, the Bhaskar Group conducted a large consumer survey with individual and focus group interviews of 12 lakh households in and around Ahmedabad. the current papers were average or not very close to reality. According to observers of the Gujarati market, the content of existing papers was skewed towards sensationalism. Although news coverage common in existing papers.32 newspaper. The research gave wings to Bhaskar’s plans and it geared up for launching Divya Bhaskar in Gujarat.

The Challenge Hindi market was uphill. The Gujarat and Gujarati newspaper market was dominated by two old-time bigwigs – Gujarat Samachar and Sandesh – whose circulations were huge at 10.47 lakhs and 7.58 lakhs

where Divya Bhaskar new readers to be targeted and growth was only possible through a) duplication, i.e. getting people to buy Divya Bhaskar as a second or third newspaper, b) switching to Divya Bhaskar from current newspaper, or c) targeting lower income households that did not purchase newspapers but mostly relied on borrowing. Besides, the real challenge was not in getting people to try the product – that was easy given the Bhaskar Group’s promotional clout – but to uphold readers. Thus, the group set a modest goal of entering the market at the third position. However, given people’s dissatisfaction with existing newspapers, overcoming the competition seemed possible for Divya Bhaskar. Apart from Ahmedabad, the rest of Gujarat market was also crowded with the presence of citycentric players like Gujarat Mitr Phulchhab and Saanz Samachar from Rajkot, Saurashtra Samachar from Bhavnagar, etc.

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Divya Bhaskar’s Launch in A’bad Divya Bhaskar in Ahmedabad. The paper comprised of 28-30 pages including supplements and was priced at Rs. 2 for newsstands Divya Bhaskar targeted the entire family, positioned itself as an unprejudiced, people-friendly newspaper, and emphasized the use of colours to get readers more interested. It even set up a printing facility at Mehsana which enabled lost in transportation.33 By August 2003, Divya Bhaskar’s circulation had surpassed that of Gujarat Samachar and Sandesh, position in Ahmedabad, advertisers too rushed to the newspaper which started booking more column centimeters of advertising space compared to Gujarat Samachar and Sandesh.

Gujarat Samachar and Sandesh Spruce Up Gujarat Samachar and Sandesh also started putting their acts together. The family-held Gujarat Samachar adopted a more professional stance in its management and became more sensitive to the needs of readers, advertisers the newspaper, doubling the number of its supplements to 14 and making them more youthful, upgrading its technology and launching a plethora of promotional schemes, despite the risks that the a coupon scheme that assured a gift on the deposit of certain number of coupons, the market value of which was more than the cost of newspapers. To increase its appeal among younger consumers, aimed at shifting the battleground to a different medium with the launch of a 24-hour news channel – Gujarat Samachar Television Sandesh also followed suit by improving its layout, increasing the number of colour pages and bringing its price down to Rs. 1.50 and launching a similar coupon scheme as Gujarat Samachar. In addition, it also organized monthly lotteries which gave away attractive prizes like electronic equipments, home appliances, scooters and cars.

Divya Bhaskar’s Launch in Other Cities Not the one to be cowed down by competitor activities and buoyed by the overwhelming success of its paper in Ahmedabad, Divya Bhaskar readied to take the other cities by storm. In March 2004, the This time too, Divya Bhaskar had undertaken a pre-launch consumer survey to study and understand Divya Bhaskar covered 70 per cent of the Gujarat market.34 over Saurashtra Samachar offer media planners a package for the whole of Gujarat.35

Divya Bhaskar was able to

Other Marketing Strategies of Divya Bhaskar In addition to a barrage of launches on the heels of one another, Divya Bhaskar also kicked off initiatives to attract advertisers. In preparation for the festive seasons of Navratri and Diwali in the

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Advertising and Integrated Marketing Communications

year of its launch, the paper dropped its colour ad rates in Ahmedabad even lower than the blackand-white rates of its rivals Gujarat Samachar and Sandesh, thereby minimizing the difference between its own colour and black-and-white rates. The idea behind the strategy was to make the paper an affordable option to advertisers, apart from increasing colour advertisements, especially since the paper had 10 colour pages. Divya Bhaskar also organized special events such as Education Mela in Ahmedabad to promote growth in retail advertising.

The Result In just two years after its launch, Divya Bhaskar covered the entire state of Gujarat with 51 lakh readers 37

Figure 15.18 Divya Bhaskar to indicate its leadership position in Gujarat. The newspaper not only increased its tally in terms of readership and circulation, but also grew in advertising revenues. In fact, after its launch in 2003, the print advertising 38

Today, Divya Bhaskar comes with 15 supplements on different subjects such as career lifestyle,

FIGURE 15.18

Divya Bhaskar published comparative NRS figures in an ad to indicate its leadership in Gujarat. National Readership Survey 2005 Newspaper

Ahmedabad

Baroda

Surat

Divya Bhaskar

1292

546

757

Gujarat Samachar

1090

346

544

Sandesh

636

328

336

Questions 1. Discuss the role of market research in Divya Bhaskar’s success in Gujarat. Do you think the Divya Bhaskar in becoming the number one newspaper? 2. In what ways did Divya Bhaskar differentiate its newspaper from other major competitors? Divya Bhaskar seem to possess? appeal of Divya Bhaskar?

Divya Bhaskar go for a phased launch as opposed to a one-time statelevel launch? 7. Get a few copies of Divya Bhaskar, Gujarat Samachar and Sandesh. coverage, types of advertisers, number of advertisements, colour vs. black-and-white Divya Bhaskar, Gujarat Samachar and Sandesh. Also obtain the rate cards of these newspapers and comment on their rate structures.

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Endnotes Pitch, Mar 5, 2012 www.theatlantic.com The Economist, Mar 20, 2012 5. www.magindia.com www.newswatch.in 7. HT Media Ltd., Aug 4, 2005, www.indiainfoline.com Pitch, Mar 5, 2012 8. www.rni.nic.in www.businessworld.in www.businessworld.in

13. www.mudra.com

The Brand Reporter, Pitch www.indiainfoline.com

15. www.rni.nic.in www.davp.nic.in 2003, www.indiantelevision.com www.agencyfaqs.com www.exchange4media.com; 22, 2011, www.exchange4media.com 20. www.ins.org.in www.newswatch.in 22. 23. 24. 25.

www.echo-media.com www.davp.nic.in www.davp.nic.in www.davp.nic.in Pitch, Mar 5, 2012

Pitch,

The Brand Reporter, www.amul.com; Outdoor Advertising,

31. “Gujarat high on Bhaskar’s agenda,” May 2, 2003, www.agencyfaqs.com; “Divya Bhaskar to consolidate position in north Gujarat,” Aug 28, 2003, www.agencyfaqs.com; “Divya Bhaskar to launch its Baroda edition soon,” Aug 12, 2004, www.agencyfaqs.com; “Rajkot is the next destination for Divya Bhaskar,” www.agencyfaqs.com; “Divya Bhaskar reduces colour ad rates for festive season in Ahmedabad,” Aug 17, 2004, www.agencyfaqs.com; www.divyabhaskar.co.in; “Dhainik Bhaskar to www.indiantelevision.com 32. “Gujarat high on Bhaskar’s agenda,” May 2, 2003, www.agencyfaqs.com 33. “Divya Bhaskar to consolidate position in north Gujarat,” Aug 28, 2003, www.agencyfaqs.com 34. “Divya Bhaskar to launch its Baroda edition soon,” Aug 12, 2004, www.agencyfaqs.com www.agencyfaqs.com www. agencyfaqs.com 37. www.divyabhaskar.co.in www.indiantelevision.com

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Chapter 16

Broadcast Media Chapter Objectives After reading this chapter, you will be able to: Understand the concept of broadcast media and the popular broadcast media used by advertisers. Learn about players in the television industry, television’s strengths and weaknesses, and the processes of buying television time and measuring television audiences.

In Perspective

Learn about players in the radio industry, radio’s strengths and weaknesses, and the processes of buying radio time and measuring radio audiences.

Rasoi Creates a Gastronomic Appeal through Broadcast Media Promotion

Rasoi Food Corporation was launching a chain of 35 Mom’s Delight (MD) restaurants across 11 key cities of India on January 26, 2008. MD’s key differentiating point was its quality with food prepared in kitchens observing international standards of hygiene; staff being cordial and well trained; and a unique ambience matching the architectural style of each city, and designed by well-known architects. To clearly demonstrate the distinguishing features of MD, media planners suggested concentrating primarily on television, and secondarily on radio. MD on local cable television. It felt that cable would be advantageous because of its ability to reach focused target markets, prove to be a cheaper television advertising option, and would not need to be preplanned too much in advance. MD chose channels like Discovery Travel & Living, which targets the upscale SEC AB audience between the age group 18-45 years, with an international outlook. It also purchased crawler ads on local movie cables. In order to conserve on budget, it even negotiated a barter arrangement with few cable operators, through which it agreed to supply them free MD lunches for

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purchased on a spot basis, MD’s commercials could not secure the best placement, but were broadcast between station breaks by cable stations. Nevertheless, MD could still choose the primetime day part and hence managed to reach a sizeable audience. Also, it added to the reach. MD’s television advertising was supplemented by a similar radio campaign, which recalled shots of mouthwatering pizzas, clean kitchens and ornate ambiences when the radio ads were played. Radio buys were also made on a local spot basis although cumbersome negotiations with individual stations had to be undertaken. Spots were purchased in the evening primetime band on private networks when people are likely to think about dinner while driving back home after work. As a result of the campaign, pre-launch curiosity was created among local audiences appreciation and consistent quality helped MD sustain and grow its business.

The opening vignette illustrates how the broadcast media can be successfully used even for a local or regional service-based product. The enormous ability of the television to make an impact, give wide market coverage, aid recall and build quick frequency, combined with the power of radio as a local and cost-effective medium were key to the post-launch success of Mom’s Delight. This chapter introduces you to the strengths and weaknesses of key broadcast media, and the options and methods of buying airtime.

16.1 THE BROADCAST MEDIA Broadcasting is the distribution of audio or video signals to a number of listeners or viewers. Historically, the term broadcast media referred to television and radio since they were broadcast over the air. This was done by coding programming signals that came over the air from a single radio or television broadcast station and having decoding equipments such as antenna and receiver in homes. The term broadcast network refers to networks that broadcast an over-the-air television signal that can be received using a television antenna. While traditionally over-the-air broadcast was the only way to transmit television and radio programmes, today there are many alternate physical means through which transmission of audio-video programmes is possible: broadcast, or “overthe-air” television, cable television, direct broadcast satellite television (or direct to home), Internet Protocol Television (IPTV), and mobile television (television content viewed on handheld mobile devices). Hence, the technically correct term for conventional television and radio in the current times is electronic media named. In this chapter, we will use the traditional term ‘broadcast’ for our discussion while keeping in mind that newer technology is also used to distribute content of these media. Thus, when we talk of broadcast television and broadcast radio we will also include in their scope programming of cable and/or satellite networks. For instance, according to The Prasar Bharati (Broadcasting Corporation of India) Act, 1990,

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“broadcasting means the dissemination of any form of communication like signs, signals, writing, pictures, images and sounds of all kinds by transmission of electro-magnetic waves through space or through cables intended to be received by the general public either directly or indirectly through the medium of relay stations, and all its grammatical variations and cognate expressions shall be construed accordingly.”1 Broadcasting forms a very large segment of the mass media. Broadcasting to a very narrow range of audience is called narrowcasting. A broadcasting organization may broadcast several programs at the same time through different channels (frequencies). On the other hand, two or more of programmes to stations or networks may be through physical media, such as analogue or digital

16.2 TELEVISION In all but a few small parts of India, television is at least a quarter-century old. Over this period, the uncommon even in poorer homes in urban slums and rural households. The television is the topmost source of product information for 42% of Indians, ranking highest among all media choices.2 India now has over 500 television channels covering all the main languages spoken in the nation. At 44.8% in 2011, television had garnered the largest share of the Indian advertising pie, a milestone that it gained by overtaking print in 2009. Although less than 50% of advertising budget is spent on television, the medium is so highly consumed and visible that most people are of the belief that the vast majority of advertising is on television. As an advertising medium, television has grown phenomenally. From the days when only Doordarshan used to be broadcast, it has matured into a multichannel spewing machine. Table 16.1 shows the ad revenues and growth of television over the years. TABLE 16.1

Television ad revenue size (in Rs. crore) and growth rate (in %) Year

Ad revenue

2002

3908

2003

4104

Growth rate 5.0

2004

4350

6.0

2005

5003

15.0

2006

6,000

19.9

2007

7,110

19.0

2008

8,319

17.0

2009

8,492

2.0

2010

10,530

24.0

2011

11,478

9.0

Source: “Media spends soar,” Pitch, January 2007, pp. 43; “Mixed trends seen,” Pitch, January 2007, pp. 62; “Advertising spend takes off,” Pitch, February 2008, pp. 38-44; Noor Fathima Warsia, “PMMAO 2012: TV Review: Sorry for Interruption,” Pitch, February 27, 2011

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16.2.1 Players in the Television Industry 16.2.1.1 Networks and Local Stations A television network is a distribution network for television content whereby a central company provides programming for many television stations. Until the mid-1980s, television programming in most countries was dominated by a small number of broadcast networks. A network is also usually understood as a program service with 150 or more hours of primetime programming. For example, the is a popular Hindi and regional language network that claims to offer more than 80,000 hours of original programming.3 Networks can be regional in that they example, ESPN, Cartoon Network, Gemini, etc. are regional networks. On the other hand, a television station is a broadcast station that transmits both audio and video signals to television receivers in a particular area. Traditionally, television stations made their broadcasts by sending specially encoded radio signals over the air, called terrestrial television. Individual television stations are usually granted licenses by a government agency (Prasar Bharti in India) to use a particular section of the radio spectrum (a channel) through which they send their signals. Local television stations can be either former’s programming for which they pay the stations compensation. The local stations then become . The forte of networks lies not in content production, but in its distribution. Hence, most networks hardly produce indigenous programming content. They instead buy programs from individual production companies such as or UTV and distribute the programmes through their

the network. This is a win-win situation for both – networks get additional local ad revenue from 100% of network programming, because if they do not carry enough, chances are that they may lose In countries where most networks broadcast identical, centrally originated content from all their stations, individual stations are nothing more than large repeater stations. Hence the terms ‘television network’ and ‘television station’ have become interchangeable in everyday language.

16.2.1.2 Cable and Satellite (C&S) Television Operators Cable television operators or cable companies distribute a bouquet of television channels (including free-to-air, satellite, and pay channels) collected at a central location (such as a shared antenna) to

positioned in a high location to which multiple households could have their televisions connected via cable. This was designed to provide access to television signals in areas where reception was traditionally poor due to signal disruption caused by obstacles like tall buildings, mountains, etc. , or to distribute programming of networks that were available only through cable. Today, most cable-only networks get picked up by satellite rather than by antenna.

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As shown in Figure 16.1, as per the TAM Universe Update 2012, the number of cable and satellite HHs is 126 million, registering a 9% growth over 2011, whereas the number of digital HHs is 42 million, registering a 63% growth. The cable and satellite industry is highly fragmented in India with about 50,000+ last mile cable operators (LCOs), 7,000+ multi system operators (MSOs, e.g. cable television. An MSO is an operator of multiple systems, and typically a company that owns a large number of cable systems, further distributing content to LCOs. FIGURE 16.1

TAM Universe Update 2012

India at a Glane NCS 26 Mn

Growth%

NCS 21 Mn Digital 26 Mn

Digital 42 Mn

C&S HHlds 116 Mn

C&S HHlds 126 Mn

TV Owning Households 142 Mn

TV Owning Households 148 Mn

Total Households 231 Mn

Total Households 231 Mn

+63% +9% +4%

2011

2012

All India Household figures in millions

All India Household figures in millions fueling media insights that drive businesses

M

MEDIA RESEARCH

Cable operators collect subscription fees from subscribers, either monthly or as a one-time payper-view charge, and pay a percentage of the per-subscriber fees to the networks. While India is the second-largest C&S market in the world, surpassed only by China, the industry earns just INR 192 billion in subscription revenue. The average revenue per user (ARPU) is only Rs. 160 per month, also characterised by high under-reporting of as much as 85% of the subscribers.4 In addition, cable operators may also earn advertising revenue, and carriage fees for carrying or transmitting channels over cables. Cable television is normally regarded as a natural monopoly, and most areas are served largest cable distribution system in India, has joint ventures with more than 6,000 cable operators across the country to distribute television channel signals received from various satellites through an aerial network of approximately 8,000 km of coaxial plant.5 Currently, cable transmission in India happens in both analog and digital formats. However, the Information and Broadcasting Ministry has set the deadline of March 31, 2015 for shifting from

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analog to digital systems, albeit in a phase-wise manner. The cable industry is still dominated by analogue distribution with pockets of digitization, which has not been a success. As of 2011, there are 90 million C&S analog homes and 26 million C&S digital homes. Table 16.2 shows the GRP share of analog and digital television. In digital transmission, signals are encrypted and viewers need to buy a set-top box (STB) to receive and decrypt the signals to watch pay channels. Of course, no transmitting television channels through an STB is called Conditional Access System (CAS). TABLE 16.2

GRP share of analog and digital television in India GRP Contribution

Large Network All TV

GRPs 3565.0

Analog

Digital

89%

11%

Star India Network

554.4

85%

15%

Zee Network

493.9

69%

16%

SunTV Network

490.6

85%

14%

Sony Network

352.8

77%

23%

Viacom & TV 18 & IBN Network

292.3

86%

14%

ETV Network

107.5

92%

10%

04.2

68%

7%

Turner Turner Entertainment

73.9

61%

6%

Disney

70.6

89%

11%

UTV

67.2

70%

10%

Asianet Communications Ltd.

53.8

92%

8%

Maa Television Network

40.3

45%

3%

Sahara One Entertainment

37.0

58%

9%

Nimbus Communications Limited

37.0

64%

3%

TV9

33.6

92%

8%

Source: TAM | Market: All India | TG : CS4+

The idea of CAS was mooted in 2001, due to a furor over price hikes by channels, and subsequently by cable operators. Poor reception of certain channels, arbitrary pricing and increase in prices, underdeclaration of subscribers by cable operators, bundling of channels, poor service delivery, monopolies in each area, lack of regulatory framework and redress avenues, are some of the issues that will be addressed by implementation of CAS. In the CAS regime, the STB will be used as a decoder, which will enable consumers to select and pay for only those pay channels viewed. Consumers will also in the broadcaster-operator-subscriber relationship and viewers will have control over the visual content with a lower monthly subscription. With the digitization of cable transmission, operators will also be able to provide new services such as broadband Internet access, voice over IP, videoon-demand, electronic programme guide, and games apart from the standard television channels. Of course, this will require the installation of advanced networking equipment at the end of cable specialized content channels aimed at very select audience, allowing targeted advertising. Advertisers

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will also have more information about viewing audiences. The cable networks of India are governed by the Cable Television Networks (Regulation) Acts of 1995 and 2002. A broadcasting system that is becoming even more popular than cable television is satellite transmission (for both FTA and pay channels), thanks to a better viewing experience, the shortcomings of cable operators, and the additional costs involved in purchasing digital STBs for the implementation programming directly to subscribers’ homes anywhere in the country. For the reception of satellite

35 million subscribers.6 television, print and direct marketing onto a single platform. to access their favourite programs by using generators or invertors. It also remains a premier way to access rural audience vis-à-vis cable due to the reach of the satellite. In fact, a growth of 64% in the 7

picture and sound quality, and value-added features, it has a cost disadvantage. Thus, despite a brisk between 75% and 70% up to 2014.8 With the coming of cable and satellite television, the number of local channels and programme total number of channels to 623 by year end 2011. 9 By expanding the number of viewing options, cable and satellite television has led to considerable audience fragmentation.

16.2.1.3 Public Television Public Television is a government-owned network that is broadcast nationally for free. In India, Doordarshan, popularly known as DD, is a public television network. It broadcasts national events, educational and informational programs, regional language programs and entertainment programs, audiences. Doordarshan has a three-tier programme service – national, regional and local. The emphasis in the national programmes is on events and issues of interest to the entire nation like news and current affair programmes, magazine programmes and documentaries on science, art and culture, beamed on DD National to the interests of a particular state, in the language and idiom of that region. Local programmes are News and current affair programmes are largely produced in-house whereas DD sponsors programmes on adult education, issues related to women, tribal affairs, soaps and public services,

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commissions the Public Service Broadcasting Trust (PSBT) to source quality documentaries on various issues of concern to the public. DD has achieved phenomenal growth in a span of 16 years – from covering 25% of the population in 1980, to covering 91.2% of the population by 2006. DD also covers 79% of the country’s area through its transmission. In order to advertise on Doordarshan, advertisers have to follow stringent rules and guidelines as laid down in the ‘Code for Commercial Advertising on Doordarshan’ discussed in Chapter 20.

Television Syndicators In television industry, syndication is the sale of the ‘right to broadcast’ programmes by production companies to multiple stations, without going through a broadcast network. Syndication as a practice is very popular in the United States, although in India its use is rare. Syndication can be of the following types: ∑ First-run syndication ∑ Off-network syndication: Syndication of the rerun of a programme that initially ran on a network The Box below talks about the increasing syndication trend seen in the recent times.

Syndication is Catching Up10 A trend that is increasingly noted these days is the moving of programmes from one channel or network to another or ‘syndication’ in other words. Some network programmes go for off-network syndication too. Similarly, at times initially syndicated programmes that have become popular are sold to networks as well. A number of reasons explain the emergence of this trend: ∑ Since most Indian families have a single TV set in their houses, most of the programming has a secondary target. Old programmes of one channel are fresh programmes for consumers of other channels. For example, classic properties of Doordarshan like Dekh Bhai Dekh and Chandrakanta have found themselves on Sony whereas Shriman Shrimati and Alif Laila have moved to SAB. ∑ Getting programmes from other channels is cheaper than producing fresh shows. Hence STAR Utsav, which is a free-to-air channel, is populated with the best programming from the STAR library. Additionally, most of the people who watch STAR Utsav strategy works well for STAR. ∑ For example, POGO has been showcasing programmes like Chuppa Rustam and Khichdi, earlier telecast on STAR Plus. Although POGO is primarily a kids’ channel, these shows are scheduled post 8 pm, a part of the day targeted at coviewing with family members. ∑ Programmes are able to reach larger and diverse audiences through syndication. For example, Disney’s 30-minute animation block called Disney Jadoo and Cartoon Network’s one-hour programming called Cartoon Network Duniya got syndicated on Doordarshan

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Advertising and Integrated Marketing Communications

16.2.2 Strengths of Television With its sight, sound, motion and emotion, television engages its audience’s multiple senses, and leaves an impact like no other medium. The ability to use audio, video and emotions gives advertisers the use of moods and emotions, it can get people to laugh, cry, believe, be surprised, be entertained, etc. and can add life to even dull, uninteresting products. This also aids recall and people remember once-watched television commercials more than advertisements in other media.

Frooti rolled giant-sized mangoes behind unsuspecting people. Hidden cameras captured the reactions of people and followed them as they made a dash for their lives. This was aired as the TVC for the brand. Even with no script or seasoned actors the ad managed to engage the common man put on the spot as well as the viewers, thanks to its element of surprise.

Television is also a suitable medium for demonstrating products. Print advertisements can explain the features of an exercise machine, radio ads can talk about them, but a television advertisement can actually show-’n-tell how it works. Television is also advantageous because of its wide market coverage, reaching all age groups and a large number of households at the same time. People of diverse demographic characteristics and geographic locations consume television regularly. Public television like DD reaches more than 90% of the country whereas popular private networks like Zee, Sony, etc. are also watched in most C&S homes. Table 17.26 Q4, 2010, which shows that television has an overall reach of 57%, whereas satellite television has a reach of 44%. If mobile television is successful, it will further increase the reach, albeit on a small screen. Figure 16.1 also gives the reach in terms of household penetration. Table 16.3 shows the reach in terms of penetration of some of the C&S channels, as researched by TAM Media Research. Because of its wide reach, television is also cost-effective for reaching most audience types, since high absolute costs get shared by large audiences, bringing down the relative cost (such as cost per thousand members). This makes television a suitable medium for marketers of mass-consumption products whose target audiences are huge. Thus, television still continues to be the lead medium for various large advertisers, as it is still the most cost effective medium in India. FMCG categories and advertisers are the highest spenders on television. In 2011, FMCG contributed 52.8% to television’s ad pie, as compared to 55.4% in 2010. The telecom sector, with bid budget spenders like Vodafone and Airtel, was another major spender that contributed 11.5% in 2011.11 Furthermore, television also has enormous ability to create belief and attention. Because of their predisposition towards television, many people tend to trust products that are advertised on television and consider television commercials as a reliable source of product information (Figure 16.2)12. Since television commercials are advertiser driven and intrusive, viewers get to see ads without even seeking them. Although they have the option of avoiding commercials by swapping channels, recording programmes on VCRs and zipping or zapping them, as we will discuss later, quite a few viewers still enjoy watching television commercials. Further, advertisers can increase attention

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

0.21 11.97 55.39 14.09 68.60 0.84 27.32 0.46 0.44

11301 67.47 6.85 36.63

20.65 0.54

17530 0.58 8.12 33.43 0.05 54.51 0.27 0.79 14.02 0.29 0.68

Universe (000's)

24 Ghanta TV 9X 9X M A2Z News Aaj Tak Aakaash (Bangla) Aasirvatham Aastha Aastha Bhajan ABN Andhra Jyothi ACV (only for Ker 10L + ) Adithya TV Amrita TV Angel TV Animal Planet Animax Aradana TV Telugu Arihant ARY Digital Asianet Asianet Middle East Asianet News Asianet Plus ATN Bangla ATV Telugu Australia Network AXN Azad News B4U Movies B4U Music 0.16 0.93 4.53 0.19 4.86 24.23 3.16 15.46 20.91

0.62 1.39 0.50 0.53 26.04 0.41 33.13 42.70

8.02

11.22

0.38 2.28 19.32 1.67 31.10 38.11

14.04 0.17 1.03 0.89

18.48 1.09

34.58 0.11

20.15 3.06 0.23

0.74

0.07

0.62 1.37

38.58 65.96

16557

Kolkata Reach %

Mumbai Reach %

Channel Name

Delhi Reach %

1.45

0.35 29.50 0.07 2.69 7.79

1.65 1.90

1.19 1.75 0.62 5.31 0.21

22.52

6.14 5.61 0.91 38.08 3.40 4.77

33.91

13.03 0.04 1.62

1.16 2.23

34.50 14.08 47.59

0.22 0.41

30.12

31.82 3.84 24.63

0.16 0.87

63.43

44.32 1.05

2.67 7.52 28.27 1.77 44.87 3.52 0.45 19.82 0.84 5.18 0.42 7.10 3.87 0.05 18.75 3.51 0.72 0.12 0.04 11.18 1.32 2.92 3.53 0.37 1.93 1.25 19.22 1.08 24.26 26.70

0.82 3.26 17.42

0.31 3.68 3.67 26.23

112898

6696

6847

8.62 24.49 42.83 2.27 41.57 6.92 0.85 15.35 0.74 5.83

1.27 2.37 22.67 3.61 8.81 22.28

7.98 0.32 3.55 3.51

11.20 6.67 1.22 29.23 9.56 0.23 0.45

8870

6.05 7.34 29.43 2.42 45.12 6.53 1.16 20.13 0.64 5.81 0.26 8.22 2.95 0.21 20.65 1.57 1.55 0.10 0.03 13.37 0.86 2.12 2.66 0.52 2.59 1.92 21.09 1.08 22.51 26.27

Digital 6 Metros

179264

Bengaluru Hyderabad Rest of India Total Market Reach % Reach % Reach % Reach %

Period 16th November 2010 to 15th December 2010

14.90

83.14 1.56 3.28 8.30 1.15

0.18

2.47 0.28 19.37 16.53

0.22 3.46

7435

Chennai Reach %

CHANNEL REACH

Reach in terms of penetration of some of the C&S channels (researched by TAM Media Research)

Target Group : Number of Viewers in C & S Homes

TABLE 16.3

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and believability through simple repetition, interesting storylines, powerful endorsers and catchy jingles. FIGURE 16.2

TV is the prime source of information for Indian youth.

Media: Topmost source of product information Figures in % 35

Magazine

16

13

TV 35

pi

ne

s

ia ilip

Ph

al ay s

ng a Si

22

M

po re

21

an

ng Ko

Ta iw

di a

16

on g

8 5

Newspaper

3 7 17

3 4

H

Internet

20

19

5

42

52 72

78

17

In

42

47

Source: Synovate's Young' Asians' report Courtsey: Pitch, Reproduced with permission.

Although television does not offer the selectivity of magazines or Internet, it is still able to reach focused audiences. Through a full array of channels and programme types – comedy, drama, news, message. For example, MTV pan masala, zarda and gutka categories advertised the most during crime shows on news channels followed by car/jeeps and cellular service providers. Thriller shows, on the other hand, had aerated soft drinks right on the top, followed by cars/jeeps and two-wheelers.13 times or geographic coverage. For example, housewives are more likely to watch afternoon soap slots, working men are more likely to watch late night slots, whereas kids are more likely to watch Sunday morning slots. Hence, cereal and stationery manufacturers are more probable to advertise on Sunday mornings whereas home appliance manufacturers in afternoon slots. Product categories prominently present in the 11.00 pm to midnight time band include two-wheelers and four-wheelers, pan masala, zarda, gutka, cellular service providers and suitings. While television has always had commercial breaks, brands are now stepping out from ad breaks and invading programming space. Crawlers on cable channels, brands being used by anchors or characters on television shows, branding and sponsorship elements during sport events, are all examples of soft advertising, also known as in-programme brand placement, product placement, non-television commercial advertising, etc. In addition, television is a quick frequency builder because it can deliver a message at any time during a 24-hour period and many times during a single day on the same channel or various channels. For example, many new products go into advertising spurts during popular sport events like cricket or soccer world cups.

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16.2.3 Weaknesses of Television One of the biggest limitations of television that deters many communicators from choosing it, is its high absolute cost. Although relatively television is cost-effective, the absolute or out-ofpocket costs are huge. For example, according to STAR India, a 30-second prime time slot on STAR Plus costs Rs 10-12 lakh.14 On leading channels, primetime rates can be as high as Rs. 4 lakh per 10 seconds for a standalone spot devoid of any bonus. Not only the airing of commercials, but television advertising. Producing a commercial requires spending for sets and locations, models and production casts, cameras and other shooting equipments, technological gadgets and editing be broadly estimated at around Rs. 20-50 lakh but the fact is that big budgets are becoming the order of the day. According to recent estimates, in term of production costs, some of the most expensive 30 second ads since 2004 are: Nakshatra ad costing Rs. 3 crore, Pepsi’s ‘bubbly’ commercial at Rs. 1.8 to 2 crore, and Bajaj Discover ad at Rs. 1.6 crore, among a horde of other celebrity-led ads. Even internationally, budgets can be sky high like that of an expensive television campaign showing George Bush consoling a teenager whose mother had died in the 9/11 attack, which carried an exorbitant price tag of $14.2 million.15 Another serious limitation is the of television ads due to very short message length. Few commercials are as long as 60 seconds. Most of them last only 30 seconds or less and cannot be played back or referred again like a print ad. With the increase in production and broadcasting costs and with limited airtime, commercials are becoming shorter and shorter. For example, in 2005, the average ad duration of FMCG products dropped to 19 seconds from 19.1 seconds in 2004.16 And the average ad duration of all television commercials came down to 22.2 seconds in 2006, according to a survey by AdEx India. Marketing communicators think that with limited media budget, shorter commercials can help them get more frequency to add force to the message or reach a larger audience. Hence, many marketers are also experimenting with one-second 17

with the rise in ad clutter. According to data available with TAM Media Research, the number of brands advertised on television rose from 3,832 in 1994 to 11,963 in 2005. According to a new survey by AdEx India, a division of TAM, there is an 82% rise in the number of brands advertised on television during 2008 compared to 1999.18 Apart from advertisers’ commercials, clutter is also caused by other non-programming material such as programme promos (like networks running promotional lead to interruption in programme viewing. In India, average ad durations per hour are well within limits of the international norms. As indicated by Table 16.4a, it amounts to only 192 seconds of pure advertising time per hour for the year of 2003. That is a meager 3 minutes of advertising time per hour of programming – almost one-third the International norms set at the 9 to 10 minute mark! Even when the above averages are split by prime time versus non-prime, the clutter levels are well within the international standards, as indicated by Table 16.4b.

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Advertising and Integrated Marketing Communications

TABLE 16.4 (a)

Average advertising time per hour

Channels have 192 secs of Pure Advertising Time for Every Hour of Programming Average Secs/Hour

Type of Channel Doordarshan

102

Free-to-air

219

Pay

208

All Channels

192

Courtesy: TV AdEx Jan-Dec 2003

Note: FTA = Free-to-air channels

TABLE 16.4 (b)

Average advertising time according to primetime vs. non-primetime

DD, Pay as well as FTA Channels have more Advertising Duration in the Prime Time Average Secs/Hour Type of Channel

Non Prime Time

Prime Time

Doordarshan

98

124

Free-to-air

186

414

Pay

177

384

All Channels

165

347

Courtesy: TV AdEx Jan-Dec 2003 Prime Time: 20:00 to 23:30 Hours Non Prime Time : Rest Hours

According to another research, globally India ranks 32nd at a clutter level of 311, i.e. in 2005, the average adult saw 311 television advertisements every week.20 However, more than the actual commercials, the problem of clutter is accentuated by programme promos. At present, there are about 30,000 commercial spots on television and about 45,000 promo spots every day. As much

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as 55% of the non-programming time and Rs. 6,700 crore worth of airtime is used by channels to promote themselves and their shows.21 Among other things, clutter in advertising is a function of the seasonal demand increase of commercial time. For example, the demand for commercial time in the soft drinks category maximizes during the summer season. So does the demand for commercial time for tea, coffee and winter-wear in winters. While most FMCGs are present throughout the year, the advertising of white goods, personal accessories, textiles and jewellery see an increased demand during the festive season, both from consumers and advertisers. Table 16.5 is a summary of non-programming time (minutes per hour) during the primetime band on popular channels. As can be seen, the number of commercials aired in prime time increases during the festive season, with the increase being as much as 29% during October-November.22 TABLE 16.5

Minutes of non-programming material per hour

Month

Star Plus

Sony TV

Zee TV

Average

June

6.0

11.0

5.9

7.6

July

4.4

10.3

8.7

7.8

August

6.0

9.7

10.0

8.6

September

6.2

9.7

9.8

8.6

October

7.4

10.6

13.8

10.6

November

7.8

10.2

13.9

10.6

December

6.6

10.6

10.7

9.3

With the increase in clutter and the number of channels, people are increasingly paying less attention to television commercials. There were a total of 623 channels in 2011 in comparison to 552 in 2010. Similarly, The expected ad spend just between ICC Cricket World Cup and IPL 4 was marked at Rs 1,500– Rs 1,600 crore according to some industry sources, signifying intense clutter during key events.23 or zap channels. Zapping refers to changing channels to escape commercials. With the advent of remote controls, and 24-hour continuous programming on some music and sport channels, zapping has become even easier and more tempting. Often when alternative programmes are found more interesting, consumers leave the original programme. However, if viewers do return, they are likely to do so nearing the end of the commercial break. Hence, zappers do watch a few commercials placed near the end of the commercial break. A TAM study indicated that 30% of viewers spent less than younger audiences are less tolerant of commercials and more likely to zap than older audiences.24 In a study, TAM SGroup plots minute-by-minute audience movement between Max and Star Plus during the India-Kenya day/night match on 7th March 2003 (Figure 16.3). The blue line indicates audience movement from Star Plus to Max, and the pink line indicates audience movement from Max to Star Plus. It clearly shows that during breaks on Star Plus there is a visible shift of viewers from Star Plus to Max. On the other hand when Max has breaks there is a similar shift of audiences to Star Plus.25 Networks are trying to control zapping to some extent by timing their commercial breaks to coincide. Also, attention-grabbing previews of succeeding scenes of a show may reduce the time a consumer remains away from the original show.

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FIGURE 16.3

Channel zapping is common to avoid ads during breaks. Audience Flow Between Star Plus and MAX as India Starts Batting Against Kenya From Star Plus to Max

From Max to Star Plus

3.5 Khullja Sim Sim

Khullja Sim Sim Break on Star Plus 23:25-23:27 Hrs

3

Break on Star Plus 22:12-22:14 hrs

2.5

Break on Star Plus 23:00-23:10 Hrs Break on Star Plus 23:17-23:20 Hrs

Break on Star Plus 22:02-22:04 Hrs

2

Break on Star Plus 22:43-22:47 Hrs

Break on MAX 23:26-23:30 Hrs

Break on Star Plus 22:50-23:02 Hrs Break on MAX 23:11-23:20 Hrs

1.5 Break on Star Plus 22:23-22:25 Hrs

Break on MAX 22:47-22:48 Hrs

Break on MAX 23:41-23:11 Hrs

Break on MAX 23:41-23:02 Hrs

1 Break on MAX 22:24-22:25 Hrs

Break on MAX 22:33-22:34 Hrs

0.5

23.00

22.88

22.84

22.86

22.80

22.82

22.76

22.78

22.72

22.74

22.68

22.70

22.64

22.66

22.60

22.62

22.56

22.58

22.52

22.54

22.50

22.46

22.48

22.44

22.40

22.42

22.38

22.34

22.36

22.32

22.30

22.26

22.28

22.22

22.24

22.20

22.18

22.14

22.16

22.10

22.12

22.08

22.06

22.02

22.04

22.00

0.0

Zipping is another problem that can also reduce viewers’ attention to commercials. Zipping refers to fast-forwarding of commercials in previously recorded programmes. As viewers begin to record their favourite programmes on VCRs and TiVo recorders, they start zipping through commercials when they channels, advertising is almost completely blocked, as these channels do not air any commercials. Furthermore, although we discussed that television offers some selectivity, advertisers seeking lacking in selectivity. For

Finally, television commercials are disliked because they are intrusive and forced on to a passive audience. Viewers have little control over them. Unlike with print ads, they can’t turn the ad page and continue reading. Although they can zap channels, viewers still have to wait till the programme they were watching begins after the commercial break.

16.2.4 Buying Television Time Television presents media buyers with a number of options regarding the market area that can be covered through television, buying method, and programme formats and time periods.

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16.2.4.1 Network vs. Spot Buy Television advertising falls into 3 main categories: network, national spot and local spot. A network buy refers to buying commercial time for the entire geographical market covered by a network, say Zee TV. Network buy is best for mass or national coverage, as it helps reach lakhs or crores of people simultaneously. Also, networks are more popularly consumed, especially during primetime, and have higher quality programming than that offered by individual television stations. In addition, get nationwide coverage. As against these advantages, network buys have high absolute costs, limiting niche, local or focused audiences. Further, because of networks’ popularity, network airtime is a scarce resource and has to be booked well in advance, which requires a lot of pre-planning. In spite of the prohibitive costs of networks and the requirement of early buys for primetime, small and medium advertisers with limited funds or limited market coverage can recourse to two alternatives to buy networks. One, they can go for a regional network buy, which is a somewhat customized regional coverage by a national network. The fees of course are proportionately higher than for a national network buy because the national network is required to split its feed for the regional advertiser. And two, advertisers can buy airtime on smaller networks and cable television networks, which are cheaper and more focused, but also command good credibility. For example, small advertisers can buy airtime on STAR’s Tamil feed or its Tamil channel STAR Vijay TV. The options discussed so far were variations of a network buy. In addition, a media buyer can also go for spot buys. Spot advertising refers to airtime purchased directly from local television stations. Spot advertising can be national or local. When national advertisers buy airtime from television stations, it is called national spot advertising etc. buy such airtime, it is called local (spot) advertising. Often retailers, franchisees, dealers, etc. are seen purchasing local spots. For instance, Oceanic Ford Centre, a Ford car dealer of Ahmedabad may buy local spot advertising because the Ahmedabad district market is its primary target audience. Spot buys are often bought by national advertisers too to supplement their national coverage and focus more on certain strong or weak markets; or even to test market new products. The crucial decision for most advertisers is about combining network and spot advertising to obtain the advantages of both. In spite of its many advantages, spot advertising does not come without its drawbacks. It may be surprising to note that spot advertising faces more clutter and a number of restrictions in terms of placement of spot ad slots. This is because networks often compel television stations to sell spot commercial time only after network advertisers have bought all the commercial time on a programme. Also spot slots are unattractively placed where viewership is the least. For instance, local stations normally cannot sell advertising in the middle of network programmes, but only during station breaks between network programmes or during programmes by local stations. This is the time when viewership is the least because people may leave the room, zap channels or stop watching. Among other disadvantages, spot advertising is proportionately more expensive then network advertising, and negotiating spot deals with individual television station representatives is a cumbersome process. Cable buy is a type of network and/or spot buy that is purchased from a different source, rather than from network operators or television stations. Cable buys can be made by negotiating rates with independent cable system operators on a market-by-market basis, or by buying time from

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broadcasting stations that make their signals available to cable operators via satellite. The latter system usually offers wider coverage than the former. For example, airtime can be bought on MTV, HBO or ESPN from cable operators or broadcasting stations without having to purchase time on other programmes or networks carried by them. Cable buys are becoming popular because of their several advantages. Firstly, cable subscribers cheapest television advertising option available. And cable buys do not need to be as preplanned as network buys because of relatively fewer advertisers. Also, the number of viewers covered by any one cable operator or cable broadcasting station is small. Thus, many stations must be contacted to reach sizeable audiences, making the purchase process cumbersome. In addition, not much research information is available regarding the audience characteristics, ratings and such for cable stations. Finally, cable still lacks total penetration. According to IRS Q4 2010 data, the all-India penetration of cable and satellite television was 45.5%. In urban areas it was 73.2% and in rural areas 32.6%, indicating that more than 50% of the country is still terrestrial television.26

16.2.4.2 Methods of Buying Time A method of buying time that was popular in the earlier days of television advertising, and where the level of commitment by an advertiser is the highest, is that of sponsorship. Sponsors of a programme not only pay for all the available airtime on that programme, but often also get involved in its production and marketing. Sometimes when companies spot programmes that might be in sync with their image and/or target audience, they sponsor or co-sponsor the programme, which may be Rin detergent exclusively sponsors on STAR Plus Rin Mera Star Super Star, a programme for kids 5-14 years to stage their talents. Sponsorships are advantageous because sponsors have more control over their commercials. Within their stipulated airtime, they may air as many or as long commercials as they wish. Sponsors may also choose to accept other advertisers’ commercials, in which case they can control their number and placement. They are particularly useful for new products that want uninterrupted, longer airtime. Honda favourably gains from the popularity of However, sponsorships are expensive, and may be similar to putting too many eggs in one basket. A new format of sponsorship that is quite popular in the West but only emerging in India is the Advertiser Funded Programme (AFP) format. Here the sponsor pays to place its message in the television programme itself, rather than just buying advertising space around it. HUL had initiated an AFP programme called Wheel Smart Shrimati in association with other marketers. The television programme was a weekly quiz show Chausar Mahabharat times. The programme was an ode to Indian housewives who typically have limited their husbands. The programme was promoted in rural and metro towns through road

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shows, events and theme-based advertising. The programme had been highly popular Doordarshan. Above all, the programme increased recall value, brand imagery and brand associations for its promoter brand Wheel. HUL also created more media verticals like Smart Shrimati comic strip, board game, radio show, etc. around the programme.27

Participation is a more affordable and hence more popular airtime purchase format. Several advertisers can participate in a particular programme by buying commercial time or spots. They are not involved in programme production, and do not get to lend their names to the programme. At best, they may buy entire airtime exclusively or as part of split participation during a particular portion of a programme, such as a movie or a sport event, and get their names featured in an announcement Participation allows advertisers to buy airtime in accordance with the size of their pockets, and spread their budgets over a number of programmes. Thus, they can reach larger and more Moreover, advertisers do not need to have a long-term association with any one programme and can of airtime availability or prime placement within a commercial break. A third option, as discussed earlier, is that of spot announcements. National spot announcements can be purchased from local television stations and appear between station breaks or during programmes by local stations. barter – exchange of goods or services for airtime, for free or at a reduced cost. Barter has long been a feature of television and ad production. For instance, sometimes advertisers may contract to supply their products to local television stations in exchange of airtime. Another and more formal format is barter by syndication. In this case, a syndicator may provide his programming to a local station at no cost. In exchange, the station may agree to give some airtime on the show to the syndicator, who can either retain it for promoting his own programme or get other advertisers

from free airtime.

Selecting Times and Programmes Selecting the right time zones and appropriate programmes is important in order to reach the right target audiences and control the marketing communication budget. This is because audience characteristics for different time periods and programmes differ, as also rates charged by networks or stations. TV time periods are divided into dayparts differ from station to station. The most common dayparts are: early morning/ morning, daytime, early fringe, primetime access, primetime and late night. However there is no universal agreement about the exact times for all these dayparts. Table 16.6a weekday whereas Table 16.6b shows DD’s categorization of television time into dayparts.

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TABLE 16.6 (a)

Common television dayparts

Morning

7 a.m. – 9 a.m.

Monday through Friday

Daytime

9 a.m. – 4:30 p.m.

Monday through Friday

Early Fringe

4:30 p.m. – 7:30 p.m.

Monday through Friday

Primetime Access

7:30 p.m. – 8 p.m.

Monday through Friday

Primetime

8 p.m. – 11 p.m. 7 p.m. – 11 p.m.

Monday through Friday Sunday

Late News

11 p.m. – 11:30 p.m.

Monday through Friday

Late Fringe

11:30 p.m. – 1 a.m.

Monday through Friday

TABLE 16.6 (b)

Categorization of Dayparts by DD28

National Network (DD-1) Prime Time Mid Prime Time

(i) 8:00 PM to 11:00 PM (Monday to Sunday) (ii) 9:00 AM to 1:00 PM (Sunday) (i) 12:00 Noon to 2:00 PM (Monday to Friday) (ii) 1.00 PM to 2.30 PM (Sunday)

Non-Prime Time

(i) 6:00 AM to 7:00 AM (Sunday) (ii) 6:00 AM to 12:00 Noon (except Sunday) (iii) 6:00 AM to 6:30 PM (Saturday)(iv) 2:30 PM to 4:00 PM (Sunday) (iv) 2:30 PM to 4:00 PM (Sunday) (v) 11:00 PM onwards till 12:30 AM

Note: Each time band of Doordarshan will have a basic benchmark for TRP ratings, which will be utilized for monitoring the TRPs and continuance of slotted programmes. The TRP of all TV homes and SEC ABC 15+ females will be monitored for this purpose. According to the analysis, benchmark for the different time slots on DD-1 will be as follows: Prime Time : ratings between 6 and above Mid Prime Time : between 3 – 6 Time slot generating ratings below 3 Early morning till 11.00 AM and late night slots after 11.00 PM

Since each time period attracts audiences of different characteristics and sizes, their advertising rates vary accordingly depending on their popularity and ratings. For example, primetime is the most expensive since it has the largest audience and represents the family whereas late news is more focused since it usually represents working males. Tables 16.7a and Table 16.7b 29 depict the rate card of DD1 and NDTV Imagine channels that show the difference in rates according to dayparts.

Chapter 16 TABLE 16.7 (a)

Broadcast Media

Rate Card of DD1 Channel

DD-I Rate Card Spot Buy Rate per 10 seconds (SBR) (in Rs)

Category

Sponsorship Fee (in Rs)

Free Commercial Time (FCT) (in secs)

I.

Outside Produced

a)

Prime Time

i)

9.00 PM – 11.00 PM (All days)

60,000/-

3,50,000/-

150

ii)

9.00 AM – 1.00 PM (Sunday)

60,000/-

3,50,000/-

150

b)

Mid Prime Time

i)

Afternoon Soaps 12.00 Noon – 2.00 PM

15,000/-

1,00,000/-

150

c)

Non- Prime Time

15,000/-

50,000/-

150

II.

In-House, Doordarshan Produced, Commissioned, Royalty Programmes

a)

Prime Time

60,000/-

3,50,000/-

150

b)

Mid-Prime Time

15,000/-

1,00,000/-

150

c)

Non-Prime Time

15,000/-

50,000/-

150

TABLE 16.7(b)

Rate Card of NDTV Imagine

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Even different programmes attract different audience types. Situational comedies and soaps attract families, cartoon shows attract kids, and sports analysis attracts men. Table 16.8 lists programming genres according to viewership shares. TABLE 16.8

Programming genres according to viewership (% share)30 % Share of Viewership

Broad Genre

Hindi

Vernacular

Entertainment

29

24

Movie

11

2

News

4

3

Multi Feed

English 0

53

0

1

14

0

Others

Total

0

7

Cable

6

0

6

Kids

0

6

0

0

6

0

1

4

Others

0

2

0

Music

0

2

2

Sports

1

Terrestrial

1

1

1

0

3

0

0

0

10

3

1

100

2

Lifestyle 46

40

4

1 1

Infotainment Total

0

1

To schedule purchases of television programmes, media buyers look at Television Rating Points (TVRs, sometimes also abbreviated as TRPs) that indicate viewership of various programmes.

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16.2.4.3 Purchasing Procedures Network time can be bought in three stages. The up-front market is a time period before the main airtime purchase season commences. Big national advertisers usually make their purchases at this time, especially for primetime and other popular dayparts or programmes, where airtime inventory is limited. The scatter market represents purchase period that runs through the television season. While most of the purchases are already made in the up-front market, scattered spots remain in the scatter market, which also proves to be relatively expensive because of the smaller number of spots. The last of the lot is the opportunistic market that comprises of leftover spots that remained unsold because of their unattractive spot locations or last-minute cancellations. Purchases in this market can be made as late as a week in advance, although the price then shoots up. indicates a costliest. A preemptible spot, more. However, the original advertiser is served enough notice so that another arrangement can be worked out. The immediately preemptible spot, which is the cheapest, is similar to the ROP in print; a television station can move the spot as it desires.

16.2.5 Measuring Television Audiences An audience measurement system guides television advertising by estimating the number or percentage, as well as the characteristics of target audience members exposed to a television programme or ad spot. Measuring television audiences is of interest to advertisers who want to reach the right audiences and optimize their ad budgets. Audience measures are also of interest to networks and stations that determine their advertising rates, schedules, and program content based on estimates of audience number of viewers, but also by the viewers’ demographics, like age, gender, income levels, location, etc. Television ratings and audience measures can be an excellent guide in determining advertising and programming in an industry where lakhs of rupees are at stake everyday.

16.2.5.1 Audience Measures The source of television audience measurement in India is Television Audience Measurement (TAM) Media Research, a joint venture between AC Nielsen Research Services (Nielsen) and Kantar Market Its panel has the largest sample in the world comprising of 36,000 individuals from across 165 cities and towns covering 8150 television homes from class I towns (all towns and cities with a population of 1 lakh+) and semi-rural towns (less than 1 lakh population) from the state of Maharashtra. TAM provides various types of information that can be used to evaluate and measure a station’s audience. In 2004, a rival ratings service called Audience Measurement Analytics Limited (aMap) was launched. Although initially it faced a cautious uptake from clients, the TAM monopoly was broken. What differentiates aMap is that its ratings are available within one day as compared to TAM’s timeline of one week. It provides ratings for even customized audiences like housewives with washing machines, businessmen in SEC A B, college students with car at home, ratings for target groups Research Council (BARC) seeks to set up an almost real-time audience metrics system. Indian

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Broadcasting Foundation (IBF), the Indian Society of Advertisers (ISA) and the Advertising Agencies Association of India (AAAI) have announced the setting up of BARC, which will commission and oversee the next generation of broadcast audience research in India. Doordarshan has its own ratings that still measures audience metrics in rural India. Some important measures on which information is provided by measurement agencies are as follows: ∑ Television Households: The number of households in a market that own a television households, which comprise only about 61% of the total households in the country.31 ∑ Programme Rating: Rating indicates the percentage of a given population group consuming television during a given time period. Rating is calculated by dividing the number of unique viewers or households by the total number of estimated television viewers or households. Table16.9 gives the ratings of the top 14 programmes telecast on Colors TV, as measured by TAM. TAM television ratings provide an estimate of the audience for just about every programme seen on television. For example, if 4.4 million households nationwide watched Balika Vadhu, the rating for that programme would be: Rating = (Households watching a particular programme/ Total television households) ¥ 100 = (4.4 million/142 million) ¥ 100 = 3.1 TABLE 16.9

Ratings of the top 14 programmes telecast on Colors TV (measured by TAM)

Serial No.

Rank

Date

Day

Start Time

Programme

TVR

1

7

24/02/2012

Fri

20:01

Balika Vadhu

3.09

2

11

21/02/2012

Tue

22:01

Uttaran

2.82

3

13

22/02/2012

Wed

21:29

Parichay

2.55

4

22

20/02/2012

Mon

19:29

Sasural Simar Ka

2.06

5

28

20/02/2012

Mon

22:30

Na Bole Tum Na Maine Kuchh Kaha

1.8

6

30

23/02/2012

Thu

20:30

Veer Shivaji

1.78

7

31

25/02/2012

Sat

22:00

Zindagi ki Haqeeqat se Aamna Saamna

1.73

8

40

21/02/2012

Tue

20:59

Phulwa

1.49

9

60

19/02/2012

Sun

20:57

HFF Thank You

1.07

10

69

23/20/2012

Thu

12:59

Na Aana Is Des Laado

0.91

11

82

25/02/2012

Sat

18:59

Chhote Miyan Chapter-3

0.8

12

87

25/02/2012

Sat

16:31

Colors Golden Petal Awards

0.75

13

88

21/02/2012

Tue

18:59

Havan

0.73

14

90

25/02/2012

Sat

14:00

18 th Annual Colors Screen Awards

0.72

Target Group: CS 4+ Yrs (All India) For the 08 week of 19/02/2012 to 25/02/2012 Source: TAM peoplemeter system

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In its simplest form, one rating point is equivalent to one per cent of a given population. Hence, if a programme gets a rating of 3.1, it means it reaches 3.1% of the population, or 4.4 million households every week. Ratings are used extensively by media planners and buyers to evaluate alternative programmes or combination of programmes that can achieve advertising goals. Networks and stations also sometimes charge advertisers depending on a programme’s rating points. This explains why programmes are constantly promoted by networks and stations. Note that the rating numbers are the average audience ratings, or the per cent tuned to a particular program during the average minute. Not all people view an entire television programme. They tune-in and tune-out as they switch channels. Hence media researchers calculate an average rating that the programme produces during an average minute. Nowadays the problem of zapping impacts the viewership of channels, as a rating is a measure that is a combined component of the number of people watching a programme and also the time that they spend on that programme. Also note that because ratings are based on samples, it is possible for shows to get 0 rating, despite having an audience. We’ll learn more about ratings in the next chapter. ∑ Households Using Television (HUT): The percentage of households tuned-in to television at a given time is called households using television. Also referred to as sets in use, is always expressed as a percentage. For example, if 100 million households are tuned in to ¥ 100). of the week and time of the day. ∑ Share of Audience: Share of audience is the percentage of television sets in use tuned to a has managed to capture. In other words, it is a percentage of HUT. This measure takes into percentage of only those households that have their television turned on. Audience share is calculated as follows: Share = (HH tuned to a programme/ HUT) ¥ 100 Hence, for example, if 100 million households had their television sets on at 8:00 p.m. on Friday night when Balika Vadhu is shown, and out of them if 4.4 million watched the programme, the share of audience would be 4.4 as per the following calculations: Share = (4.4 million/100 million) ¥ 100 = 4.4 Rating and share numbers are usually reported as rating points/share. For example, TAM may report Balika Vadhu receiving 3.1/4.4 during its broadcast, meaning 3.1% of television households on average were tuned in at any given moment. Additionally, 4.4% of all televisions in use at the time were tuned into this programme. While programme rating

are particularly useful to measure a programme’s relative popularity during timeslots when viewing drops substantially, such as for late night programmes. ∑ Total Audience:

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16.2.5.2 Methods of Measuring Audience Unlike a newspaper or a magazine where the publisher can count how many copies are sold, there is no simple way to know exactly how many people are watching any given program. TAM and other researches estimate the audience by drawing a sample and then counting the number of viewers in the sample. There are a few basic methods of measuring audiences and each method yields different results. One method uses an electronic recorder known as an audimeter. In a specially selected sample of homes, the A. C. Nielsen company, which uses this technique, installs metering equipment on TV sets, VCRs, cable boxes, and even satellite dishes. Nielsen TV meters automatically keep track of the timings when the sets are on and the programmes that the sets are tuned to. These meters are connected to a central black box, which is a small computer and modem. Information from the meters is collected by the black box, and in the middle of the night all the black boxes send their information to Nielsen’s central computers. diary method Viewing information is gathered using television diaries, booklets in which samples of viewers record their television viewing during a measurement week. Sample households are recruited in a diary panel in exchange of an incentive, and sent diaries in which each member records his/her viewing information – the stations and programmes watched, their viewing times and duration. Once the into its computers in order to calculate ratings. A third technique is the telephone coincidence. This is a simple survey-based method in which an interviewer calls selected or random households and asks which programme is being watched. This is a quick indicator of programme ratings and other basic viewership data, and there are no problems of memory loss. However, there is a limitation in covering certain days or time periods such as late night slots. The fourth method called roster recall is a variation of the telephone coincidence. Here too quick ‘day-before recall’ data is collected. Several door-to-door interviews of selected households are conducted. The interviewer carries a roster of programmes broadcast the day before and people look at the roster while answering questions. Additionally, demographic information can also be collected during the interviews. A more sophisticated method than the above four records viewing history with the help of an electronic measuring device called the peoplemeter (Figure 16.4)32. The peoplemeter is a small box, which can be placed on or near each TV set. It is similar to the audimeter, but has additional features that record not only what is being watched, but also by whom. The peoplemeter has buttons and lights, which are assigned to each person who lives in the household. When a viewer begins watching he pushes his button again and the indicator changes back to red. There is also a remote control to the information in the peoplemeter is accurate. Additionally, a sonar sensor reminder in the device prompts viewers to log in or log out of the meter while entering or exiting the room. Information from the peoplemeters is combined with set tuning information and relayed to the research agency each night.

Chapter 16 FIGURE 16.4

Broadcast Media

643

Peoplemeter – an electronic device for measuring television viewership

A peoplemeter calculates ratings through two methods. First is frequency monitoring, in which it continuously records data about the channel watched by the family members. It reads the frequencies of channels, which are later decoded into the name of the channels. But there is a drawback in the technique, as cable operators frequently change the frequencies of the different channels before sending signals to the homes. It may be very misleading to read a channel according to a particular frequency even if the downlinking frequency is same all over India. Second technique is more reliable and relatively new to India. In the picture matching technique, a peoplemeter continuously records from sample homes is later matched with the main data bank to interpret the channel name. This is how national ratings are produced. Information such as which household member is watching television, what channels, and for how long, can be recorded using peoplemeters. Additionally, the demographic information of the viewers can also be fed into the system, which helps in better analysis of viewership preferences. In western countries, rating agencies have even incorporated household consumption data for various FMCGs. For example, households that watch programme X buy a higher than average volume of conditioners and diet foods.

16.2.5.3 Criticism of Ratings Systems it. Critics have expressed concern over the diary system, which is believed to be overstating the size of some key demographic audiences. Audience counts gathered by the self-reporting diary methodology are sometimes higher than those gathered by the electronic meters, which provide less opportunity for response bias. Also, since viewers are aware of being part of the TAM sample, it can lead to bias in recording and viewing habits. However, this criticism is common to any survey research. Also, daytime viewing and late night viewing tend to be under-reported by the diary methodology.

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Further, fewer people are willing to cooperate in the diary method, and often reporting is incomplete, incorrect or inaccurate. The diary system requires that every 15 minutes viewers write down channel numbers, station call letters, programmes and who is watching. With the explosion of channels it is problem has been adequately resolved since the ratings industry has smoothly migrated from the diary method to the peoplemeter method. While the peoplemeter is seen as an improvement over the diary method, it too is not free from its share of criticism. Here too viewers are required to press buttons and numbers on the box or the remote control. Sometimes they forget, sometimes they lax off, thus impacting the results. Also, with the current measurement devices it is not possible to ascertain the level of involvement or attention of the viewer in the programme that he or she was watching. There are some viewers who are more connected with certain programmes, more attentive to advertising messages shown during the shows, and more likely to engage in behaviours such as purchasing brands associated with the show. The current devices are criticized for their lack of ability to measure viewer involvement and attitudes. Another criticism of the peoplemeter system is its lack of a method for measuring television audiences in environments outside the home, such as transport terminals, restaurants, waiting rooms and other public places where television is frequently viewed by a large number of people in a common setting. A survey carried out by Intellect, the research arm of Lintas Media, showed that 1.30-3.30 pm slot, when it’s the lowest for home viewing. In addition, the audience measurement agency TAM is under attack for the limited size of its of external auditing of TAM processes, the inadequate distribution of its peoplemeters, inadequate measuring of niche channels that get zero ratings, lack of adequate coverage of the Hindi heartland, Doordarshan’s reach because of TAM’s absence from rural India. TAM has been battling with the accusations against its measuring systems and is exploring drive, bringing in digital meters, going into small towns and creating elite panel homes. It is also

Internet with its latest digitized peoplemeters called TVM5. Not only viewing, they can also capture other aspects like gaming. Finally, TAM is already in the process of signing an external agency to audit its ratings.33 An alternative to TAM research is the overnight audience ratings service aMap. aMap too has peoplemeters installed as a measuring device in towns with a population of 10 lakh plus. It offers an online system where the server dials up the homes on the panel and automatically collects data from the meters everyday between 2 am and 4 am. aMap can measure all television including video far from adequate. Many new technological developments are taking place in countries around the world to measure

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etc. One such service in the US called TargetTV in increments of 5 seconds. Another device is the portable people meter (PPM) that tracks channels and programmes viewed by picking up inaudible codes embedded in the audio signal of a TV programme. Research is also underway to measure audiences for commercials, and not just for programmes.

16.3 ALTERNATIVE FILM MEDIA development of alternative avenues where too sight, sound, motion and emotions can be combined. On the medium of television itself, the development of longer format commercials in certain inexpensive time-slots is a case in point. While standard television commercials are of 10-, 15-, 30- or at the most 60-second lengths, infomercials of 2, 5 or even 30 minutes are developed for products that need more detailing and demonstration. As the name implies, infomercials provide more information about the product – what it is, how it works, where it is available, testimonials of known to commonly resort to the infomercial format.

16.3.1 Cinema Advertising Cinema is a very important advertising medium in India and the sixth most popular medium in terms of advertising expenditure. Organized cinema advertising in India began since the 1950s with onscreen advertising mainly purchased by local shops and retailers. Over the next couple of years, some national advertisers like HUL, Nirma, Colgate, etc. also started using the medium. By the late ’70s and ’80s, the medium slumped with television going colour and the spread of VCRs and libraries renting video cassettes for home viewing. Recently, the medium is back in business with the advent of multiplexes and the rising multiplex culture; increase in footfall due to a good number demonstration formats; growing promotional activities such as lead-generation and data-collection activities in cinema halls; and the relatively uncluttered nature of cinema compared to the growing clutter in other media. Star power is the major reason for the pull of advertisers to theatres. The Table 16.10 depicts the growing ad revenue and growth rate of cinema advertising.34 TABLE 16.10 Year

Cinema ad revenue size (in Rs. crores) and growth rate (in %) Ad revenue

Growth rate

2002

17.0

2003

19.0

11.8

-

2004

23.0

21.1

2005

32.0

39.1

2006

55.0

71.8

2007

104.5

90.0

2008

129.0

24.0

646

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103.0

(-20.0)

2010

118.0

15.0

2011

140.0

18.0

Source: “Media spends soar,” Pitch, January 2007, pp. 43; “Mixed trends seen,” Pitch, January 2007, pp. 62; “Advertising spend takes off!”, Pitch, February 2008, pp. 38-44; Neha Goel, “PMMAO 2012: Cinema Review: Rockstar,” Pitch, March 12, 2012

Cinema advertising can take many forms. The traditional slideshows, stationary clips of video accompanied with a voiceover, are popular with smalltime local retailers. On the other hand, there are ad trailers, television-like audio-video advertising aired in cinema houses. Trailers are longer than standard commercials; they are usually 45 seconds, 1 minute or even 2 minutes in length. Consumer durables, consumer electronics and FMCG manufacturers are the major spenders on trailers. Ads of Nirma washing detergent and Samrat Namkeen snacks have featured in theatres for decades now. toilet soap campaigns featuring movie stars have also found the cinema particularly suitable. Over the last couple of years, mid-level companies who can neither afford ad trailers nor want to waste money on rudimentary slideshows, are using a novel concept of – a series of slides weaved together with a voiceover. Filmlets club together still pictures and sound effects, may throw in some and World Space are

of the hall as the brand’s touch point. Product placements, i.e. the placement of brands within movies or other such entertainment, are also increasing by the day. Although they are not strictly a form of cinema advertising, the growing endorsements as cinema advertising like with Shah Rukh Khan in Ra.One and Don 2 or Salman Khan based ads with Bodyguard. Multinationals like Gap, Swatch, Nike, Pepsi, Coca-Cola, etc. have tied up with big banner movies targeting teenagers to include their products as props. A small exposure of a product such as its appearance on a store shelf, its use by an actor or its verbal mention can cost a inclined to buy it. The movie Kabhie Khushi Kabhie Gam was almost like a two-hour long advertisement of Coca-Cola. Brands get coloured by the character using them and the context in which they are shown in a movie. For example, if a villain were shown wearing a Swatch watch, the brand would get visibility but perhaps not a positive mindshare. Cinema advertising catches audiences in a greater attentive mode – they are more captive as they are eagerly waiting for the movie, they cannot switch channels and lastly, they do not leave the hall. Additionally, watching larger-than-life images in a dark environment is a pseudo-movie experience high. According to a study conducted by A. C. Nielsen in 2004, the recall rate for cinema is 80% as compared to 22% for television.35 Finally, cinema is becoming ever more useful in reaching teenagers advertisers is that they can target prospects based on certain demographic and psychographic factors.

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and number of theatres in which to run their ads. Although currently there is not much information available regarding cinema ad viewership, there is a start towards aggregating ‘metrics’ for cinema advertising.

16.4 RADIO Against its more glamorous broadcast advertising counterpart, television, radio to most people is a rather lackluster medium, shorn of the glamour and thrill that surround television. However, radio Afterwards with the advent of television it was fast reduced to a local advertising medium. Even today, the top advertisers on most radio stations are local advertisers and independent retailers accounting for 75% spends. However, stations with large networks and a strong presence in metros and big towns state that national advertisers have a larger share in their revenue pie. For instance, for Radio Mirchi, which commands a 35% share in the private FM business, the percentage of local players is 45% and that of national players is 55%.36 by many a mile in terms of the share of the advertising monies – while worldwide radio garners 7-12% of the advertising monies, in India, radio manages just about 3.5% (Table 16.11) with only Rs. 903 crore of advertising revenue as of 2011. TABLE 16.11

Advertising spends, shares and growth rates of leading mass media

Media

2008

2009

2010

2011

Ad Share Growth Ad Share Growth Ad Share Growth Ad Share Growth revenue in ad rate (in revenue in ad rate (in revenue in ad rate (in revenue in ad rate (in (Rs. expen%) (Rs. expen%) (Rs. expen%) (Rs. expen%) crores) diture crores) diture crores) diture crores) diture (in %) (in %) (in %) (in %) Press

9,825

47

16

7,608

41

Television

8,319

40

17

8,492

46

Outdoor

(-21) 2

42

28

11,291

43

13

10,530

45

24

11,478

44

9

1,419

7

11

1,135

6

1,441

6

27

1,279

5

Radio

662

3

38

681

4

3

885

4

30

903

3

2

Internet

363

2

45

453

2

25

680

3

50

985

4

45

1

24

103

1

(-20)

118

100.0

17

18,472

Cinema Total

129 20,717

100.0

(-20)

9,992

(-11) 23,646

0.5

15

140

100.00

28

26,094

(-10)

0.5

18

100.00

10

Source: Pitch, February 2012; March 2012, pp 38-44

According to IRS Q4 2010, the reach or listenership (calculated as listening at least once a week) of radio is just 17.6% nationally, whereas it is 15.9% in rural areas and 21.2% in urban areas. This poor reach is despite All India Radio’s (AIR) huge network of 141 medium wave, 54 short wave, and 130 FM transmitters – one of the largest in the world that covers 99.2% of India’s populace and reaches 91.9% of the total area!37 Also, radio still has housewives and retired people among its top listeners (Figure 16.5).

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FIGURE 16.5

The unemployed, retired and housewives are the prime listeners of radio. Composition of Radio Listening Universe by Occupation Numbers in '000

Officers/Executives–Middle/Senior Officers/Executives–Junior Self-employed professionals-Junior Businessmen/Industrialist 10+ Businessmen/Industrialist 1-9 Businessmen/Industrialist None Retired/Housewife Not working Student Supervisory level Clerical/Salesmen Shopowner 0

500

1000

1500

2000

2500

Source: AC Nielsen ORG-MARG Radio Review.

Bengaluru and Kolkata.38Also, despite adversities, radio is coming back a full circle with marketers realizing its importance, who are gradually paying the medium the due respect that it deserves. Increasing FM-enabled mobile phones are driving radio growth in India. Although penetration of with the availability of mobile handsets with FM radio.39 India is the fastest growing mobile market in the world. Hence, mobile radio penetration has increased from 59% in 2007 to 77% in 2011 in the 40

The growth rate of radio’s advertising revenues is indicated by Table 16.12.41 TABLE 16.12

Radio ad revenue size (in Rs. crores) and growth rate (in %)

Year

Ad revenue

Growth rate

2002

112

2003

125

11.6

2004

150

20.0

2005

200

33.3

2006

285

42.5

2007

480

68.0

2008

662

38.0

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2009

681

3.0

2010

885

30.0

2011

903

2.0

649

Source: “Media spends soar,” Pitch, January 2007, pp. 43; “Mixed trends seen,” Pitch, January 2007, pp. 62; “Advertising spend takes off!”, Pitch, February 2008, pp. 38-44; Neha Goel, “PMMAO 2012: Radio Review: Not a Happy Tune,” Pitch, March 6, 2012

Although radio is primarily a local medium, it is also a favourite with television channels who frequently advertise their programmes on radio. Tables 16.13 and 16.14 indicate the product categories that frequently use radio, as well as the top 10 advertisers.42 TABLE 16.13

Top 10 advertising categories on radio (2010)

Sr. no.

Advertising category

1

Property/real estate

Rank-2009 5

2

Cellular phone service

2

3

TV channel promotions

1

4

Independent retailers

4

5

Social advertsements

6

Cellular phones

7

Jewellery

8

Educational institutes

9

Corporate/brand image

New

10

Automobiles

New

3 New 10 6

Source: RAM, Adex

TABLE 16.14

Top advertiser spends by category on radio (2010)

Rank

Advertiser

1

Vodafone Essar Ltd.

Rank-2009 2

2

Bharti Airtel Ltd

10

3

Star TV Network

6

4

Pantaloons Retail India Ltd

5

5

Nokia Corporation

New

6

Tata Teleservices

3

7

Ministry of Health & Family Welfare

9

8

Coca Cola India Ltd

New

9

Idea Cellular Ltd

New

10

Hindustan Unilever Ltd

1

Source: Adex 2009, 2010

Interestingly, though radio in India is rarely used as a standalone medium and usually complements other media, there are many FMCG, consumer durables and service brands like Rexona Roll On, Pears Oil Control Facewash, IDBI Bank Fixed Deposit, Sony Ericsson J230i, etc. that have exclusively advertised on radio, which indicates the increasing weight of the medium.43

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16.4.1 Players in the Radio Industry 16.4.1.1 Networks and Stations A radio network is a network system, which simultaneously distributes programming to multiple stations in order to reach areas beyond the limits of a single broadcast signal. In addition to programme distribution, most radio networks also engage in production of much of their programming. Radio networks may own some or all of the radio stations that broadcast the network’s programming. For example, Radio Mirchi is a nationwide network of private FM radio stations in India, owned by the Entertainment Network India Ltd. (ENIL), a subsidiary of the Times Group. Akashwani, is the public radio network or broadcaster of India and a division of Prasar Bharti (Broadcasting Corporation of India), an autonomous corporation of the Ministry of Information and Broadcasting, Government of India. AIR is the sister service of Prasar Bharati’s Doordarshan. It is one of the largest radio networks in the world and still the most popular media in India, considering the fact that it is accessible even in the remotest parts of the country where any other media like television or newspapers cannot reach. As mentioned earlier, AIR covers 99.2% of India’s populace and reaches 91.9% of the total area. The AIR network comprises of the national channel, regional stations, local radio stations, Vividh Bharati centres, FM stereo service, external services and Northeastern services. It maintains more than 200 broadcasting centres around the country and transmits in 24 different languages. Social responsibility and public service broadcasting continue to be hallmark of AIR. However, with the tough competition from upcoming private channels, AIR has introduced new channels to offer options to listeners like music, news, drama, sports, etc. In addition, it has also started offering music on demand, news on phone, 24-hour live service on the Internet, etc. to keep pace with the changing times.44 In addition to the public network of AIR, there are many private networks like Radio Mirchi, Red FM, Radio City, Go FM, radio companies were given licenses to open over 260 FM stations across 91 cities. As of now, nearly 200 FM stations are operational. This resulted in a huge growth in the FM radio industry. However, many cities still remained uncovered by the private FM radio broadcasting. With a total of 839 new FM radio channels in 294 cities, Phase-III policy will result in coverage of all cities with a population of one lakh and above with private FM radio channels. In developed countries, student-operated community radios are also popular. In India, community radio introduced in 2004 in the Anna University campus, Chennai did not pick up well, because of, among other factors, restrictions on advertising and news. However, the trend is slowly changing. Stations are realizing that community radio is a cost-effective way to connect with their audience and strengthen brand value. For example, the NGO-supported community radio in Mumbai, 90.8 FM Jago Mumbai has been able to attract some advertisers. With celebrities like Aamir Khan, Vidhu has taken off well. The government is also trying to boost community radio. Presently, its ad rate has up a committee to revise these rates. There were 82 operational community radio stations in India in 2010.45 A radio station is an audio broadcasting service that traditionally broadcasts radio waves through the air to an antenna and receiving device (radio) in the listener’s location. In many countries

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today, stations also broadcast via cable FM, local wire networks, satellite and the Internet, and companies (sometimes network companies themselves) and stations are located in many different markets. Radio stations may purchase programming from a variety of networks, and in that sense a station may belong to more than one network, each providing specialized programming to complete the station’s schedule. The two main types of radio stations are AM and FM stations. AM refers to amplitude modulation, a mode of broadcasting radio waves by varying the amplitude of the carrier signal in response to the amplitude of the signal to be transmitted. They were the earliest broadcasting stations to be developed. One of the advantages of AM is that its primitive signal can be detected and turned into sound with simple equipment. Also, it can travel up to 1100+ miles. However, AM radio has some serious shortcomings. The signal is subject to interference from electromagnetic radiation such as electrical storms, lightening, etc., and there can be an acute loss of AM signal at night. Hence, FM radio was invented in the 1930s for the particular purpose of overcoming the electromagnetic interference problem of AM radio. FM refers to frequency modulation. Although further apart. Unlike AM signals, FM signals do not need expensive transmission towers. In developed radio markets worldwide, radio has survived the onslaught of commercial television with the help of FM. FM radio enables a great degree of localization and hence brings along interactivity with a almost all new radios included both AM and FM tuners. FM became the popular medium in cities its greater range. Radio syndication is a process whereby individual radio stations may obtain programming from a centralized distributor, similar to television syndication. Syndicated radio shows are yet not as popular in India as in the mature markets. In addition to the public radio network AIR and other private networks, another player that was the harbinger of the evolution of radio services, was the satellite or subscription radio provider WorldSpace, the only player/ex-player in the sector. A satellite radio is a digital radio that receives signals broadcast by a communications satellite, which covers a much wider geographical range than terrestrial radio signals. Satellite radio services like WorldSpace, known for high quality of channels including those for weather, sports and several music channels. WorldSpace required a subscription from end users to access its channels and also necessitated proprietary hardware for decoding and playback. WorldSpace had about 47,000 subscribers in India (globally, it had around 1.15 lakh subscribers).46 However, the catch for advertisers was that WorldSpace was a completely WorldSpace went off air disappointing its subscribers who had invested in radio sets and premium subscriptions. However, the WorldSpace brand license has been acquired by a Bangalore-based startup called Timbre Media, and it is scheduled to make a comeback by re-launching its services for mobile users in India. WorldSpace premium content.47

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16.4.2 Strengths of Radio In spite of the dawn of newer and richer media, radio has survived and prospered as an advertising medium because of its many advantages. One of the main advantages of radio is its low cost. Both production and broadcast costs are very reasonable compared to other media. Unlike television commercials, radio ad production requires only a script of the commercial, which can be prerecorded at low costs or read live by the radio announcer. Even airing a commercial on a radio network is cheaper than other media. Consider this: For a one-time insertion in The Times of India, Mumbai edition, the cost is Rs 1,600 per cc. A 52-cc ad works out to Rs 83,200. And television rates are astronomical. According to STAR India, a 30-second prime time slot on STAR Plus costs Rs. 1012 lakhs. As opposed to that, a 10-second slot on a station like Red FM in Mumbai, is likely to cost in reality. And unlike a print ad, a radio ad is not lost in a maze of other advertisements by being the only one at a particular point in programming – the same crucial advantage that television has.48 Thus radio proves to be relatively cost effective. While an advertiser can have just one ad among many in a newspaper, on the radio it can have 5 to 6 exposures of 30 seconds over a week. Hence, even with a limited budget, radio can help get the message across more powerfully, and afford more reach and frequency.

In a Radio Multiplier Study the Radio Advertising Bureau, UK and USA, pinpoint advertising awareness. The study tracked perceptions among consumers aged 16-44 years for 17 brands advertised in two media-comparable areas, Coventry and Derby. For each brand, one town had radio advertising but the other did not, while television advertising was the same in both towns. Across the 17 brands, the average awareness as effective as television. However, television costs were roughly 7 times that of radio costs. The bottom line learning is that if one reallocates 10% of television budgets to 49 While the numbers cannot be taken as a thumb rule as there will be wide variance between various markets, the study does make a strong case for advertisers to divert a small portion of their television budget to radio.

Secondly, in many developed countries radio offers ample audience selectivity owing to the increasing number and kinds of stations. Radio offers a wide array of formats to complement on a radio station. For example, music radio, all-news radio, sports radio, talk radio and weather radio are the different genres of radio formats and each format can often be sub-divided into many specialty formats. However, currently in India exclusive radio formats are still not extensively used and a mix of many formats is provided by a single radio. Broadly, most of the stations have identical programming and are thus attracting audiences that are very similar. Stations have not been able to carve out a niche for themselves, in any of the markets. But with more private radio networks coming up, specialized content is expected to rise as stations will be left with no option but to go niche. For

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example, Big 92.7 FM is primarily targeted at young adults in the 18-35-year age bracket, with the positioning of the station being ‘young and contemporary’. The station claims to cater to the human emotions of the listeners and has 40% of unduplicated music.50 With increasing formats, radio will be able to localize advertising money by targeting special markets, especially rural and remote. Thirdly, radio is a very that can accommodate short closing periods as well as integration with other media such as the Web, television, telephone, and so on. Radio can be booked relatively late and be produced at short notice. The convenience of being able to change their messages almost up until the last minute allows advertisers to make their ads more up-to-date. This immediacy of radio makes it a great medium for news-like or informational messages, e.g. the announcement of a local seasonal sale. Fourthly, if creatively used, radio can lead to greater involvement and mental imagery. The absence of a visual element in radio prompts consumers to create their own picture of the scenes and characters portrayed on radio. Also, through a technique called imagery transfer, radio may underpin television commercials. Imagery transfer is the process by which visual elements of a television commercial are transmitted into the listener’s mind by using a similar audio track in its radio equivalent. and on top-of-the-mind. Every time a listener hears a radio commercial, she tends to draw upon the visuals seen on television and get a more multi-sensory impact. A study by Statistical research Inc. shows that three out of four consumers who watch a television spot “replay” the visual image mentally when they hear a radio commercial for the same brand.51 Imagery transfer strategy is often Fifthly, radio provides excellent support to other media by working in a complementary way with them. With television, if there is good synergy, apart from leading to mental imagery, it can also weeks when there is no television activity, or to include additional information. Radio can put several different messages as an overlay to a core television campaign, as multiple executions in radio are quite inexpensive as compared to television. To press, radio adds intrusiveness, because levels of ad avoidance with print are high. And local radio events are also becoming popular with the increasing fan following of radio jockeys. Finally, radio has many other advantages like its broad appeal and mass use. In spite of recent penetration by other media such as cable television, AIR remains the most common means of gaining access to information and entertainment, as radio receivers are relatively cheap and affordable. Moreover, working professionals, college-goers and teenagers, who elude other media, can be reached more easily with radio. Samsung uses radio to promote its audio products, the primary target for which is the youth. Light television viewers and younger consumers whose reading habits are poor usually spend considerable time with radio. Also, radio is a good medium to reach people in the early part of the day, until mid-afternoon, when television viewing is less. Hence, JK Tyres has struck a 12-month deal with Radio City, under which it will advertise regularly between 7am and 11am and it will be the only tyre company on air during that time. Neeraj Bhatia, marketing manager, JK Tyres says, “Our target audience is the guy in his car and he is the one who listens to FM. We catch him in the 52

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Most people listen to radio when they are doing something else, allowing advertisers to reach them with a message related to the task they are engaged in while listening. For example, the car company Hyundai uses radio to target people on the move and to reinforce its message. The closer an advertising message is to the point of purchase, the higher is the impact. Also, radio is an intrusive medium. Listeners cannot avert commercials without switching stations, which is more 53

Further, radio provides many integrated marketing opportunities to its advertisers. Radio can be effectively used in conjunction with the Internet, event marketing promotions and road shows, etc. Indian users are also early adopters of mobile phone-related technologies and the phenomenon of listening to radio on mobile phones has already been tried and is on the rise in the country. Research has indicated that Indians are responsive to promotion-oriented advertising. For example, when Radio City, Bengaluru ran a contest asking listeners for their favourite tunes, callers jammed its phone lines with more than 20,000 entries in just 3 days. And the prize was just a new radio!54 Radio is also undergoing several innovations as players explore avenues to increase revenues and reach. Radio Mirchi entered into a tie-up with Bharti Airtel to permeate its reach further with the launch of a value-added service application Mirchi Mobile. Airtel customers can now avail of 12 different Radio Mirchi stations on their mobile by subscribing to the service. These customers were earlier able to listen to radio stations operating only in their city. The pricing of these services has also been kept attractively low. For example, as per Airtel’s scheme, subscribers can avail 100 minutes of radio listening for Rs. 10 per week.55 Mirchi Mobile has an estimated 8-10 million subscribers, with 50% active users who pay about Rs. 10 per week for 100 hours of listening.56

Finally, radio reaches a mobile target and has a A Madison India study in the early 2000s indicated that 70% people listen to FM at home, 32% while driving, 9% at public places, and 57 Hence Pepsi home. “Radio offers a unique combination of being the most live and local medium. By completely listenership. Radio has been key in the 360-degree activations initiated by PepsiCo for most of its product launches and promotions,” says a company spokesperson.58 Radio is also a valuable medium advertising, who are looking for something more than what print offers.

16.4.3 Weaknesses of Radio The primary weakness of radio is that it is a background medium that people listen to when they

preprogrammed their car radio, they may quickly change stations during commercial breaks. In India,

59

Because of various reasons, radio may not command people’s full attention and is often ignored. This necessitates more ad frequency to combat non-attentiveness, thereby increasing out-of-pocket cost.

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Another major drawback is the creative limitation of radio. Radio can be pretty drab because there is no picture, no playback and no motion. No demonstration is possible and no visual appeal can be created. Hence, radio is much less attention grabbing than television. Moreover, radio programming Radio One says, “Two things marketers complain about are: one, all radio stations sound the same; and two, all of them are catering to lower SECs and therefore sound dumb to an educated audience.”60 Sporadically, stations announce contests, game shows, tambolas and celebrity interviews, but the staple fare remains (63%), followed by Hindi pop (40%), remixes (37%) and English pop (33%).61 However, with the used. For instance, Radio Mirchi Satyajit Ray adding sound effects and background music.62 Hence, radio ads are beginning to sound original and not like the soundtracks of television commercials. Radio Mirchi Kaan awards for creativity in radio advertising, which is likely to increase experimentation.63 Additionally, the absence of picture, playback and motion on radio can sometimes lead to recall and comprehension problems. For example, listeners can neither recall any phone numbers, dates or complicated addresses, nor can they play the commercial again. A radio commercial is therefore a It does not always allow the listener to take action (like calling an inquiry number or writing down address) depending on the location of listening. Owing to these limitations, radio is often ignored in a media planner’s plan and agencies frequently allot juniors to develop radio commercials. However, studies have indicated that most radio ads can be recalled more or less as easily as television ads if they are not too complex. In the 1980s the Pre-Testing Company tested the immediate effect of recall for both television and radio ads. It was found that radio ads were remembered 70% as well as the television ads. This study repeated over several years has yielded similar results. In 1987, Capital Radio in the UK conducted a telephone recall study of about 200 ads that ran over television and radio channels, where only if the respondent recalled details of an execution, the recall was counted. Average for television was 31-34% and radio was 27%. Hence radio was about 80% as effective as television in triggering ad recall. A 1997 study in Canada by Radio Marketing Bureau found that aided recall for radio ads was 83% that of television.64 Furthermore, radio is not suitable for certain products to be demonstrated. For example, microwave ovens, medicines, fashion garments, etc. Also clutter on radio is high as on other media. Across the four metros, on an average, radio advertising rate is estimated at 9 minutes per hour during the morning daypart, commonly referred to as SPT or super prime time slot for radio. The clutter was observed to be much less during the afternoons but peaked again to about 8 minutes per hour during the second SPT slot, which is early evening.65 Some stations like Radio Mirchi have about 10 minutes of commercials per hour, which goes up to 12 minutes during festive seasons. Hence, advertisers must make commercials that break through the clutter or use heavy advertising frequency to ensure that their messages reach listeners.66 Another problem plaguing radio is the availability of limited research data and measurement devices compared to other media because both the radio stations and advertisers are small or local businesses that neither care much for research, nor have funds for extensive studies. Hence, radio is still not the most sought after medium by media planners and advertisers. “Our ad rates are not based on response, neither do we have listenership scores. All that we have is day of recall studies

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which measures the most heard station the previous day and that is not enough,” says Apurva Purohit, CEO of Radio City.67 Also, it entails a cumbersome purchase process to buy radio at a national level because contracting has to be done with a large number of stations. Although packages are often offered by radio networks and syndicated programmes, it diminishes the total inventory of programmes to choose from. Yet another limitation is that currently technology is limiting the reach of radio. AIR’s impressive reach is through AM transmitters, while FM has a lesser reach – around 75 kilometers in range. Hence, reach of local stations and non-standardized rate structures that compound the purchasing problem.

16.4.4 Buying Radio Time 16.4.4.1 Purchasing Options Radio time may be bought on a network, a group of stations, or on an individual station. Advertising on radio can be purchased using a national or regional, public or private network. Network radio Radio networks and syndicated programmes also offer a bouquet of several stations, thus lessening the purchasing problems of negotiating with individual stations and increasing radio’s appeal to largescale advertisers. In India, radio ownership is concentrated in a few hands, most with cross-media holdings. These network players also offer cross-media packages to subsidize their new medium of radio, effectively targeting existing clients. Spot radio refers to buying individual spot ads on a station-by-station basis. Spot radio is great to message for local audiences than in a network buy. It can also be used to support a national campaign in certain strong or weak markets. The major disadvantages of spot radio are the cumbersome purchase process in having to deal with many different stations, and the non-standardized rate structures. Like in a television spot buy, spot radio purchase can also be either as national spot advertising or local advertising. Local or retail advertisers or small advertisers who cannot afford print advertising may be attracted to radio. The top advertisers on radio are local advertisers and independent retailers accounting for 75% spends. Retailers, auto dealers, restaurants, etc. are among the heaviest users of local radio advertising.

16.4.4.2 Advertising Rates Factors such as the choice of a particular daypart and programme for advertising, audience composition for the station and programme, etc. affect radio advertising rates. The size of the listening audience varies widely across dayparts. Usually radio listening peaks during morning and evening hours when people are driving to and from work, as indicated in Figures 16.6a-b. The major dayparts are as indicated in Table 16.15. can be expected to be between 8.00 am and 10.00 am, 1.30 pm and 3.00 pm, and 6.00 pm and 8.00 pm.68 Radio is a concentrated medium as it reaches 83% of its audience by 10 am, whereas television is a fragmented medium that observes gradual buildup since afternoon.69 expensive slots since they represent transition times during which the population is moving around and is least likely to consume television. In fact, according to a RAM study of 2009, out of home

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70

In tune with the listenership pattern, radio advertising also has seen a similar trend over time as maximum increase in commercial time has been during drive time. FIGURE 16.6 (a-b) TVR (000's)

Audience composition for the radio and TV programmes during mornings and evenings

Radio clearly dominates its presence in morning; TV takes its position post afternoon

12000 TV

RADIO

Average Audience by dayparts-TV vs. Radio

10000

Dominates Radio acts as a Frequency Building Platform in evenings 7326

RADIO 8000

Dominates Radio acts as a Reach Building Platform in mornings

6000

10500 TV

5484 4982 4076 3859

4000 2807

3423

3348

2493

2050

2000 322 0

Early Morning 5 am - 7 am

Morning 7 am - 10 am

Mid Morning 10 am - 1 pm

Afternoon 1 pm - 5 pm

Evening 5 pm - 9 pm

Late Evening 9 pm - midnight

Source: RAM 12+/TAM PPM cs 10+

advertisers have to pay a premium. Table 16.16a depicts the daypart-wise rates for the FM channels of AIR whereas Table 16.16b depicts the daypart-wise spot-buy rates for private FM stations.71 However, note that card rates are hardly indicative of the real rates that stations will charge during personal negotiation with their clients. Usually rates are quoted per 10 seconds, and minimum buys rounding done to the nearest higher multiple. There may be exceptions, as in the case of Radio Mirchi 72

TABLE 16.15

Radio Dayparts

Morning drive time

6 a.m. – 10 a.m.

Midday

10 a.m. – 3 p.m.

Afternoon/evening drive time

3 p.m. – 7 p.m.

Evening/nighttime

7 p.m. – Midnight

Late night

Midnight – 6 a.m.

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TABLE 16.16 (a)

All India Radio FM Rainbow Rates

Spot Buy Rates for 10 Seconds (In Rupees) Name of Stations

Time Category 1

Time Category 2

Time Category 3

0700 – 1100

1100 – 1500

1500 – 1800

1800 – 2100

2100 – 2200

2200 – 0700

Delhi

1000

700

400

Mumbai

800

600

400

Chennai/Kolkata/ Bangalore/ Hyderabad Kodaikanal

700

500

300

Lucknow / Kanpur/ Kochi

500

400

250

Panaji/Jallandhar/Cuttack Vijayawada/Vishakhapatnam/ Tiruchirapally/ Coimbatore/ Puducherry

400

300

200

Note: ∑ Spot Buy Rate for more than 10 seconds will be calculated on pro-rata basis. ∑ Time check of 7 seconds duration allowed, but will be charged as 10 seconds ordinary spot. ∑ 25% extra for fixed time spot.

Private FM - Spot Buy Rate for 10 Seconds (in Rs.) as on 31.01.2006 Koimbatore

Tiruchirapally

Chennai

Verdha

Mumbai

600 700

1,500 1,600 1,000 2,000 2,900 3,500 2,100 3,000

513 372

440 330

440 440

900 600 350 900 600 350

Delhi

Kolkata

Mumbai

Suryan

Aamar Powar Vishaka

Kolkata

5,000 5,000 2,200 2,200 1,700 1,700 900 1,700 1,700 2,100 Morning Prime 6,500 8,500 2,600 2,600 2,150 2,150 1,000 2,000 2,000 2,500 Afternoon 2,500 2,600 1,450 1,450 1,300 1,300 600 1,800 1,800 2,200

Go

Kolkata

Early Morning

Red

Lucknow

Bangalore

Mumbai

Indore

Pune

Ahmadabad

Kolkata

Chennai

Delhi

Kolkata

Markets/ Timbands

Radio City

Radio Mirchi

Radio Stations

Delhi

TABLE 16.16 (b)

650

2,200 2,800 1,800 1,000

372

330

250

400 900 225

700 700

2,900 3,500 2,100 1,000 2,900 3,500 2,100 2,625

513

440

400

900 600 350

4,000 5,500 2,200 2,200 1,700 1,700

600 2,000 2,000 2,500 900 2,000 2,000 2,500

372

330

400

900 600 350

2,500 2,600 1,450 1,450 1,300 1,300

600 1,800 1,800 2,200

650

1,900 2,000 1,500

372

330

250

400 350 225

Evening

2,500 2,600 1,450 1,450 1,300 1,300

Night Prime Late Night

875

Note: The rates are for weekdays. The classification is not as defined by radio stations

Radio rates also vary according to the placement of spots. Time slots adjacent to weather and

listening area also determine the rate charged. Studies show that the unemployed, the retired and the homebound are the major listeners of FM radio, as also indicated by Figure 16.5.73 Figure 16.7 study.74 Moreover, volume purchases are cheaper than purchase of individual sporadic spots. Stations may offer several packages of an assortment of time periods, which prove cost-effective. Finally, the available commercial inventory and its demand, as well as the ratings of an individual station also affect rates in a local market.

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Rate information is provided by stations in their rate cards. In spite of published rate information, rates are usually negotiable and depend mainly on availability, number of spots purchased at a time, and the time period of purchase. FIGURE 16.7

Typical profile of the radio listener Audience Profile - Radio

100% 90% 80%

SEC DE 28 All 35+ 42

All 35+ 43

SEC DE 30

70% 60% 50% 40% 30% 20% 10%

All 25-34 24

All 25-34 24

All 20-24 14

All 20-24 14

All 12-19 20

All 12-19 19

SEC C 22

SEC C 22

SEC B 24

SEC B 24

SEC A 26

Female 45

Female 46

Male 55

Male 54

SEC A 24

0%

16.4.5 Measuring Radio Audiences 16.4.5.1 Audience Information and Measures dedicated radio research agencies that provide many ratings, it has not matured to the extent of television audience measurement. In India, there is no uniform system of rating for either individual programmes or overall listenership. The reasons are many. Because radio stations are small and local, and their audiences fragmented, they cannot support the expense of exhaustive audience measurement. Moreover, radio being a background medium, listenership data is hard to calculate. Finally, radio has been the stepchild of media planners, who have ignored it since the advent of television and failed to harness its potential. Consequently, in the absence of a programme-based rating system, a series of independent readership-based, programme-recall-based and brand-recallguide on radio listenership. Such indicative and dipstick surveys are being conducted and published periodically by research agencies and advertising agencies. Among the various studies are: Indian Listenership Track (ILT): ILT has been commissioned by MRUC (Media Research with ACNielson ORG-MARG as a

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study in India that provided a comprehensive planning tool for media buying and planning 75 medium. Table 16.17 The study measures radio listenership by quarter hour dayparts, checks penetration and availability of radio sets with AM/FM availability, determines the time, place and frequency of listening to radio, assesses the listenership of different radio stations, measures the weekly reach of

of radio listeners, etc. Although the most comprehensive radio study in India, the major measure programme-based listenership/ratings. TABLE 16.17

Indian Listenership Track 2006 Wave 3 Fieldwork period: 4th Dec 2006 - 10th Feb 2007

Scope of the Study 1.

Coverage

Mumbai, Delhi & Kolkata

2.

Audience

All Adults, 12 + years across SECs

3.

Sample Size

4500 listing in each metro in each wave

4.

Efffective Coverage

2000 YDL boosters

5.

Fieldwork

10 weeks in each wave

6.

Reporting & Formats

Quarterly reports on advanced planning software

Listenership by Radio Stations Growth in per cent (Yesterday listeners) 2006 Wave 3 Mumbai Per cent

2006 Wave 2

Delhi Per cent

Kolkata Per cent

AIR FM1 107.1

7.37

6.09

AIR FM2 100.7

12.91

23.06

3.48

2.86

1.22

1.69 33.65

AIR Primary

9.63

Big FM 92.7

18.7

11.28

Radio City 91.1

31.37

27.74

Radio Mirchi 98.3

44.98

60.68

Radio One 94.3

13.03

6.51

Red FM 93.5

29.21

31.18

16.87

Vividh Bharati

8.76

2.86

1.43

Fever 104 Hit 95

60.34

6.93 10.54

Aamar FM 106.2

13.04

Power FM 107.8

7.53

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This study provides 24 ¥7 monitoring data and analysis of advertising expenditures in radio across 4 metros covering 13 radio stations. Radio AdEx has been launched by AdEx India, a division of TAM Media Research in technical collaboration with AirCheck, a wholly-owned subsidiary of RCS Inc., USA. RCS Inc. has been the world’s leading provider of radio ad monitoring technologies and services used by more than 8,000 radio stations worldwide for the last 25 years. Radio Audience Measurement (RAM): RAM is an independent division of TAM Media Bengaluru and Kolkata, and has now added nine more cities to its universe. It is the only continuous (weekly) measurement study in India that tracks radio audience behaviour 365 days ¥ 24 hours. It is a focused radio listenership research that tracks all SECs based on yesterday’s listeners. It provides all day listening from the same respondent, indicating listenership trends over a period of time. RAM measures radio listenership anywhere (in listener is a panel member who listens to any particular radio station for at least eight minutes continuous or discontinuous in any given quarter hour. RAM universe comprises of all people 12+ years, owning an FM device. It uses diary system to measure radio listenership. By providing data regarding cumulative audience, audience share, time spent listening, and exclusive audience, the continuous study proves useful to gauge sensitivity of listenership to stimuli like programming changes, promotions, etc. The study also provides micro level data with regard to radio listenership in terms of dayparts. Research suggests that with the launch of RAM, a positive change has been brought about in radio advertising, thanks to the availability of audience information. For instance, between 2007 and 2011, the advertising duration volume has grown by 87%, in addition to new advertisers entering the four RAM markets, which resulted in an increase of 42% in the advertiser base. Also, the number of brands participating in radio advertising has grown by 45%. Also, FM listenership in the four metros where RAM is available has crossed 60%.76

Indian Readership Survey (IRS): IRS, governed by MRUC, is essentially a readership measurement study, in fact the largest continuous readership survey of the world with an annual sample size exceeding 2.4 lakh respondents. However on the media front, it also captures information on television and cinema viewership, radio listenership and Internet trends are lost. The IRS collects data from houses, and hence does not account for listeners who are not in the house and listen to radio while travelling to work, which is emerging as a sizeable segment. Development and Research Services (DRS) studies: to assess the actual listenership of different programmes as against brand recall of various listenership, and that on an average 70% of listeners of a particular programme are not able to associate it with the right FM channel.

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Advertising and Integrated Marketing Communications

Sections, Pullouts & Attitudinal Readership Research (SPARR) study: In this readership study by MRUC, SPARR dedicates some research to radio listenership in a sub-section called to indicate radio listening preferences of readers. Independent Studies by Private Stations: Many stations have commissioned their own research to get data inputs. For example, My FM obtains research by Ormax Media, whereas Radio City has panels in four cities, reaching about 400 to 500 people per city. 77 In addition, there are many other independent, dipstick studies like the Initiative Radio Track by Initiative Media, Wave V report by ORG-Marg, and sundry studies by Madison Media, Zenith Media, FICCI, etc. that mainly measure penetration, brand-awareness and listenership data. Authentic research information is useful to the media buyer to make informed purchase decisions based on target audience coverage, rates, time schedules, and availability. This information helps optimize the radio media budget. It remains to be seen if Phase III will bring about better measurement tools.

Summary Broadcasting is the distribution of audio or video signals to a number of people. The television industry comprises of television networks that procure and distribute programming, and television stations that broadcast programming. Doordarshan is the public broadcaster of India and there are many private networks that broadcast their individual programming. Cable television operators also distribute a number of television channels to subscribers by means of a network of cables. Satellite operators provide services to access satellite channels direct-to-home. Television is known for its creative capabilities, multi-sensory impact, wide market-coverage, intrusive nature, etc. Television time can be purchased on a national, regional or local basis, through sponsorship, participation, or spot announcements. In India TAM measures television viewership

infomercials, ad trailers or cinema advertising, product placements, etc. are also available to media planners. Till recently, the radio industry suffered from low advertising revenues, poor listenership and inadequate FM penetration. Also, the licensing and operational costs were huge. However, the privatization of FM radio promises to improve content quality and bring more advertising revenues. Radio networks produce and distribute programming, and stations serve as the audio broadcasting service. AIR is the public broadcaster of India with more than 99% population coverage. Many private networks also operate in multiple cities. background medium, has creative limitations, and inhibits recall. Radio is also plagued by increasing clutter, limited research data and a cumbersome purchase process. Advertising on radio can be purchased on a network or spot basis. Advertising rates are mainly affected by dayparts, number and type of spots, and listener demographics. In India, there is no uniform system of measuring radio audiences but several independent studies provide data.

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Exercise 1. In the opening vignette, what do you think about the choice of media made by MD? How do you think the selection helped or hindered its promotion? 2. The chapter mentions that the direct reception of satellite TV broadcasting by the public will change the landscape of the television industry in the years to come. Explain the changes that will take place or have taken place, and how they will affect or have affected the business of cable network operators. 3. What are the strengths and limitations of advertising on radio? Would you consider using the medium for advertising a cellular service? A sports car? Why or why not? 4. What radio measurement study would you use for radio advertising in the top 10 metros of the country? Why? What limitations would you face? 5. What are the problems dogging the Indian radio industry? Evaluate the current scenario of the industry in light of recent legislative changes. What do you think is the industry’s future?

Suggested Class Projects 1. Research what type of television programming various audience groups are interested in watching. Can you observe any trends? Now discuss in class how the increasing number of channels is affecting the television viewing audience. 2. Visit a television or radio broadcasting station and document the processes they follow in selling commercial time. What are some of the rules and regulations they have to adhere to?

Critical Thinking Questions guide for determining advertising rates? Why or why not? 2. Why do you think there is not much programme differentiation on different radio channels as in television channels? How does it affect radio advertising?

CASE STUDY SET Boosts Viewership with Innovative Marketing of Jassi Jaissi Koi Nahin Since mid-2000, Sony Entertainment Television (SET), Star Plus, with its original programming from 7:30 pm to 11:30 pm, had been successfully funneling audiences from one show to another and creating a strong loyal base of viewers. Star Plus Star Plus’ loyal viewer base, SET had more of “appointment viewing” wherein viewers came in for a select show and tuned out. Up until mid 2002, SET controlled the 9-10 pm band, with two of its leading shows, Kkusum and Kutumb. But soon after, four daily shows of Star Plus took over. In addition, there were many other competitors like Zee, Sahara and SAB in the already crowded Hindi general entertainment category, which garnered a major share of television programming and stimulated the television growth rate. SET’s share in the primetime band

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Advertising and Integrated Marketing Communications

continued to erode. As against Star Plus’ average TRP of 13.2, SET got a paltry 1.3. Above all, SET was now perceived as a “me-too” to Star Plus, lacking any original programming.78 However, not the one to resign to fate, SET went into a programme design mode to stage a

in view of the fact that most Indian households are single television households. Hence, amongst its primary target audience of women, SET commissioned an eight-city research to understand the contemporary woman. It found that today’s woman wants a successful life and is aspirational; she is a strategist with solutions in her grasp; she’s educated and competitive; and she’s looking for an alternative to kitchen politics on television shows.79 programming that could break free from the clichéd family dramas produced with factory-like with a new serial entitled Jassi Jaissi Koi Nahin, adapted from a hit Colombian series that was a rage than ordinary-looking, nearly ugly, 20-something Punjabi girl with spectacles and braces. She was intelligent and talented and most of all, desirous making a positive change among the middle class she represented. In the serial she joined a fashion house and worked her way up the corporate ladder, Jassi was directed at audiences in the 25-34 age group across SECs A, B and C and slotted for the 9.30 pm timeslot. With Jassi, SET intended to drive sampling for the time slot and build reach in the shortest possible time, grow channel share in terms of average TVRs as well as audience preference indexes, and enter the top-ranked shows on Indian television. To achieve its objectives, SET didn’t make any compromises on Jassi. It spent Rs 1.5 crore on the sets alone, and experts estimate that each episode must have cost over Rs 10 lakh.80 Thus, in addition to riveting content based on viewer insight, SET decided to follow an aggressive and distinct marketing approach to promote the show.

Promoting Jassi through Integrated Marketing Marketing activity began a month before the actual launch of the programme on 31st August 2003. On-

was essentially an introduction to the mainline campaign running in the other two media. In addition, a multitude of unconventional media like SMS, phone-in messages, email marketing, van activities,

PR was used as a strategic tool to get the media to write about the show. At the media launch the

media, on the channel’s hit list were industry representatives, advertisers and planners. To address these communities, SET Shaher Shaher Mein Charcha campaign, which featured people across all walks of life voicing their opinion about Jassi.

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go up the ladder but lacked the required social etiquettes and grace. Although directed at men and women in the 25-34 age group across SECs A, B and C, Jassi stoked up interest in various other age groups as well.

maintained. To sustain the buzz post launch, on SET India’s website, a Jassi Pal Club was started The Times of India

live interviews in studios of radio channels. Jassi merchandize like ring tones and mobile phone games were made available as well. The 360 degree integrated marketing approach saw Jassi receiving many a marketing award. For successful initiative in media and bagged the top prize in the category of New Brand Launch of the Year.81

Results The uniquely marketed show served its objectives right from day one by opening with an average TRP SET’s traditional favourite Kkusum, which garnered a TRP of 3.1 in the same week.82 Jassi moved from strength to strength as the serial gave the channel 9th to 12th week, SET’s average slot share (primetime 9.30 to 10 pm when Jassi was aired) zoomed to 31% from the 8.2% pre-Jassi. Simultaneously, competitor Star Plus saw a sharp dip in average slot 83 share from 81.8% in pre-Jassi The Jassi time slot also saw an increase in viewership by 250% in SET’s core audience group, while reach or sampling increased by 70% within the same group. Audience share also increased from 3% to 12%.84 Jassi was scoring a TRP of 8.2 close on the heels of its competitors like Kasauti on Star Plus that ranked at 10.1 in the same week.85 The show further boosted the channel’s ratings by 270% in the 9:30 p.m. timeslot and garnered ratings of 6.3 and 5.0 in the key 86 Six months after the serial was launched, SET’s TRP ratings in the general entertainment category rose from 8.5% to 26% and Jassi was the top rated show on SET. 87 A year into the show, Jassi fetched SET four million new viewers in the general entertainment category, while the slot sampling and TVRs both grew by 300%.88 In addition to the boost in ratings, the Jassi slot reach grew close to three times within 10 weeks of launch. The advertiser response was so overwhelming that it drove the slot rates up by 50%. The show today also garnered a full house of 12 sponsors as against the single one when it was launched.89 With Jassi’s popularity, product placements of brands like Kaya Clinic and Pantene were also done in the soap.90 Furthermore, Jassi reached new heights of audience popularity with its unique marketing. Over Jassi ring tone resulted in over 300,000 downloads. And a single burst e-mail campaign to 46,000 viewers to enroll for the Jassi Pals Club yielded a conversion rate of 8.7%.91

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Let alone awards, ratings and popularity, Jassi got an honour that only the likes of Mahatma Gandhi

and hard work convey a positive message.”92

Questions 1. Was Jassi able to achieve its objectives? How and why? SET do to sustain TRPs after the completion of the Jassi programme? 3. What are the various indicators used in the case that point to the success of Jassi? Which of these indicators affect advertising rates?

Endnotes 1. Chapter 1, The Prasar Bharati (Broadcasting Corporation of India) Act, 1990, www.ddindia.gov.in 2. Synovate’s Young Asians Report, “Asian youth becomes smarter with choices,” Pitch 3. www.zeetelevision.com 5. www.zeetelevision.com www.wikipedia.org

9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24.

www. voicendata.ciol.com Noor Fathima Warsia, “PMMAO 2012: TV Review: Sorry for Interruption,” Pitch, February 27, 2011 Ruchika Kumar, “Flitting Shows,” The Brand Reporter Noor Fathima Warsia, “PMMAO 2012: TV Review: Sorry for Interruption,” Pitch, February 27, 2011 “Asian youth becomes smarter with choices,” Pitch Viveat Susan Pinto, “Hooked to the TV ghoul,” FE Insight, Thursday, May 25, 2006, com Sabil Francis, “Will radio cut into print?,” May 27, 2002, agencyfaqs!, www.newswatch.in “The Bigger Picture”, Brand Equity, The Economic Times, April 20, 2005 AdEx India, Thursday, April 13, 2006, www.tamindia.com Amrita Nair-Ghaswalla, “Short and smart is new ad mantra,” The Times of India, 2007 “TAM survey: 82% rise in the number of brands advertised on TV,” May 13, 2009, www.mediamughals. com “Indian TV stations follow International norms on ad clutter levels: An AdEx India Analysis,” May 6, 2004, www.indiantelevision.com Sonali Krishna & Haresh Soneji, “TV ad clutter triples in India but not everyone’s watching,” The Economic Times, Mumbai, 2006 “TV promos see a spurt, touch 45 K spots per day,” The Financial Express, March 25, 2006 Carat-India team, “Breaking through the advertising clutter,” Media Opinion, www.agencyfaqs.com Noor Fathima Warsia, “PMMAO 2012: TV Review: Sorry for Interruption,” Pitch, February 27, 2011 L.V.Krishnan, Trevor Sharot, Sharan Sharma, Akash Chawla, “Reincarnating TAM panelists to www.tamindia.com

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25. “A TAM SGroup analysis for the fourth week of the World Cup 2003 using TAM viewership data and TAM AdEx,” March 19, 2003, www.indiantelevision.com 26. IRS Q4 2010 27. Ravi Balakrishnan, “Programmed to Click,” Brand Equity, October 11, 2006 28. “National Rate Card,” www.ddindia.com 29. “National Rate Card,” www.ddindia.com 30. TAM, All C&S 4+, March 2011 31. Media and Entertainment, www.ibef.org 32. www.nielsenmedia.com 33. Noor Fathima Warsia, “The raging eyeballs debate,” Pitch, September 2005, pp. 17 34. “Cinema: Wins Audience Back,” Pitch 35. Gaurav Pai, “It’s showtime, folks,” Brand Equity 36. Neha Goel, “PMMAO 2012: Radio Review: Not a Happy Tune,” Pitch, March 6, 2012 37. www.allindiaradio.org 38. www.tamindia.com 39. Tapan Pal, Media Opinions, www.agencyfaqs.com 40. Radio Establishment Survey - Universe Update 2011 (RAM) 41. “Radio Goes Gaga!,” Pitch Airwaves, www.agencyfaqs.com 44. “All India Radio,” Ministry of Information and Broadcasting, www.mib.nic.in 45. “Radio alive and kicking,” IAMAI in news, April 2006, www.iamai.in; “India Entertainment and Media 46. “Radio alive and kicking,” IAMAI in news, April 2006, www.iamai.in www.afaqs.com 48. Sabil Francis, “Will radio cut into print?,” May 27, 2002, agencyfaqs!, www.newswatch.in 49. “Radio ga ga!!! FM – the road ahead,” Media Matters 50. Sapna Nair, “Adlabs Radio: It’s ‘Big’, young and contemporary,” Mumbai, Sep 5, 2006, www.agencyfaqs. com 51. “Radio trends in India & abroad: A Madison India study,” www.exchange4media.com “War on the airwaves,” May 03, 2003, www.rediff.com 53. www.tamindia.com 54. Sabil Francis, “Will radio cut into print?,” May 27, 2002, agencyfaqs!, www.newswatch.in

57. 58. 59. 60. 61.

www.afaqs.com “Radio trends in India & abroad: A Madison India study,” www.exchange4media.com “Moulding medium to message,” Business News, 10 Aug 2006, www.samachar.com “Radio alive and kicking,” IAMAI in news, April 2006, www.iamai.in Neha Goel, “PMMAO 2012: Radio Review: Not a Happy Tune,” Pitch, March 6, 2012 “Radio trends in India & abroad: A Madison India study,” www.exchange4media.com

64. 65. 66. 67. 68.

www.indiantelevision.com “Radio ga ga!!! FM – the road ahead,” Media Matters “AdEx to monitor radio ads,” 16 Nov 2004, www.indiantelevision.com www.enil.co.in “Moulding medium to message,” Business News, 10 Aug 2006, www.samachar.com Tapan Pal, Media Opinions, www.agencyfaqs.com

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69. 70. 71. 72.

www.tamindia.com www.tamindia.com “Radio: The Lintas Media Guide 2006,” Airwaves, www.agencyfaqs.com “Radio Mirchi switches to one-second ad rate pulse,” Sep 16, 2004, www.exchange4media.com www.indiantelevision.com 74. www.tamindia.com 75. Airwaves, www.agencyfaqs.com www.afaqs.com

Aug 2004, www.estrategicmarketing.com www.indiantelevision.com www. rediff.com www.sify.com Sep 16, 2003, www.agencyfaqs.com all TAM markets minus the south, base population C&S 4-plus age group 83. “SET hits jackpot with Jassi,” Marketing Review www.domain-b.com Sep 16, 2003, www.agencyfaqs.com Femina www.worldscreen.com Feb 10, 2004, www.thehoot.org www.indiantelevision.com Aug 2004, www.estrategicmarketing.com 90. “Branded entertainment, the new buzz in the small screen world,” April 1, 2005, www.screenindia.com Aug 2004, www.estrategicmarketing.com 2004, www.indiantelevision.com Feb 10, 2004, www.thehoot.org

Chapter 17 Developing the Media Plan

In Perspective

Chapter Objectives

The Grand Launch of Temptations Frozen Yogurt Temptationz is a newly launched Ahmedabad-based chain of company-owned and franchisee outlets for a range of premium non-fat frozen yogurts. Frozen yogurt is an indulgence that is known all over the world for its taste and health

Temptationz has self-service parlours with 4-5 softy vending machines imported

Ahmedabad. Temptationz primary competition is from a Delhi-based frozen-yogurt chain ChocoCherry that has shops. Temptationz who like socializing. In the words of the copywriter of Temptationz

670

Advertising and Integrated Marketing Communications

Temptationz is just the place for you.” Temptationz

Amul is the market leader in India with Havmor

Temptationz

media agency 12Tender has designed a creative campaign that focuses on promoting fun involved in making one’s own customized dessert. The agency plans to reach at

Temptationz also has a Facebook Temptationz is as given in Table 17.1, whereas Figure 17.1 depicts the share of various media in expenses every month.

The opening vignette gives a primer on the nitty-gritty involved in planning media for a product. It gives an idea on the kind of information required to do media planning and the type of media decisions to be made. In this chapter, we’ll study these concepts in more detail, as no communication plan, however creative, is likely to succeed without sound media planning.

17.1 AN INTRODUCTION TO MEDIA PLANNING A great communication message stands little or no chance of making an impact on consumers if it is not delivered at the right time, through the right channel. On the contrary, a powerful creative carried by highly effective media vehicles will give a product the best chance of success. However, choosing the right media is more complex than placing a commercial for a food product in between

30

4

45000

No. of ins

Total Cost

255

4

382500

427500

Cost/Sq. cm

No. of ins

Total Cost

Total Print Cost

20

30

36000

Slot size sec

No of slots

Total Cost

20

30

15000

Slot size sec

No of slots

Total Cost

45

20

30

27000

Rate/sec Rs.

Slot size sec

No of slots

Total Cost

My FM

25

Rate/sec Rs.

RED FM

60

Rate/sec Rs.

Radio Mirchi

RADIO

375

SIZE in sq. cm.

Ahd. Times (OTS)

375

Cost/sq cm

Sep-11

SIZE in sq. cm.

Ahd Mirror(Max Impact)

PRINT

TABLE 17.1

18000

20

20

45

10000

20

20

25

24000

20

20

60

427500

382500

4

255

375

45000

4

30

375

Oct-11

18000

20

20

45

10000

20

20

25

24000

20

20

60

427500

382500

4

255

375

45000

4

30

375

Nov-11

9000

10

20

45

5000

10

20

25

12000

10

20

60

213750

191250

2

255

375

22500

2

30

375

Dec-11

9000

10

20

45

5000

10

20

25

12000

10

20

60

213750

191250

2

255

375

22500

2

30

375

Jan-12

9000

10

20

45

5000

10

20

25

12000

10

20

60

320625

286875

3

255

375

33750

3

30

375

Feb-12

27000

30

20

45

15000

30

20

25

36000

30

20

60

320625

286875

3

255

375

33750

3

30

375

Mar-12

27000

30

20

45

15000

30

20

25

36000

30

20

60

427500

382500

4

255

375

45000

4

30

375

Apr-12

27000

30

20

45

15000

30

20

25

36000

30

20

60

534375

478125

5

255

375

56250

5

30

375

May-12

18000

20

20

45

10000

20

20

25

24000

20

20

60

534375

478125

5

255

375

56250

5

30

375

Jun-12

18000

20

20

45

10000

20

20

25

24000

20

20

60

438750

382500

4

255

375

56250

5

30

375

Jul-12

9000

10

20

45

5000

10

20

25

12000

10

20

60

427500

382500

4

255

375

45000

4

30

375

Aug-12

Developing the Media Plan (Contd.)

216000

120000

288000

4713750

4207500

506250

Total Cost

Chapter 17 671

20

30

16800

94800

No of slots

Total Cost

Total Radio Cost

40X20 ft

125000

30X15 ft

Rate

Size

80000

30X15

Size

450000

200000

Total Outdoor Cost

Special Events

Grand Total

95000

Lookwalker Rates

450000

95000 450000

95000

Khushi Advertis- (People Holding Banners) ing

80000

Law Gardern Thakorbhai Hall

Rate

80000

Front Lit

Area

125000

Type

Chitra Advertising

Vijay CrossRoads

Area

125000

Frontlit

Type

Sambaav Advertising

150000

Size

150000

CG Road Swastik CrossRoads

Rate

150000

Lit

63200

11200

20

20

28

Nov-11

Area

63200

11200

20

20

28

Oct-11

Type

JK Advertising

HOARDINGS

28

Slot size sec

Sep-11

(Contd.)

Rate/sec Rs.

Radio City

TABLE 17.1

450000

95000

80000

125000

150000

31600

5600

10

20

28

Dec-11

450000

95000

80000

125000

150000

31600

5600

10

20

28

Jan-12

450000

95000

80000

125000

150000

31600

5600

10

20

28

Feb-12

450000

95000

80000

125000

150000

94800

16800

30

20

28

Mar-12

450000

95000

80000

125000

150000

94800

16800

30

20

28

Apr-12

450000

95000

80000

125000

150000

94800

16800

30

20

28

May-12

450000

95000

80000

125000

150000

63200

11200

20

20

28

Jun-12

450000

95000

80000

125000

150000

63200

11200

20

20

28

Jul-12

450000

95000

80000

125000

150000

31600

5600

10

20

28

Aug-12

11072150

200000

5400000

1140000

960000

1500000

1800000

758400

134400

Total Cost

672 Advertising and Integrated Marketing Communications

Chapter 17

Developing the Media Plan

673

FIGURE 17.1 Month-wise Ad Spend of Temptationz Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep 0

200000

400000

600000

800000

1000000 1200000

1400000

a television programme regarding cooking. In planning the media for a campaign, a media planner ∑ Who to advertise to? ∑ Where to advertise? ∑ When to advertise? ∑ Through what media to advertise? ∑ How much to advertise? ∑ How much to spend on media? In answering these questions the media planner arrives at an optimum media plan that enables him to achieve the client’s objectives. Targeting the communication message to the right audience, through the right medium, with the right strength, is as important as the development of the message itself. Hence, media planning is essentially a science and an art that helps determine the most effective manner of spending the marketer’s money across media so as to generate the best and for a brand. A concern for “return on investment” alone will help produce the lowest costper-person or the highest amount of audience delivery, but it will not necessarily produce the most effective communication effort. On the other hand, a parallel concern for “value” will ensure that a

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Advertising and Integrated Marketing Communications

the message itself, and reach the consumer at her highest point of receptivity. media platforms for a client’s brand. But some advertisers prefer to do the media planning in-house, through the media planners they employ. Whatever the route, most large advertisers today have realized the crucial importance of media planning, since the outlays through media are huge. The job of a media planner involves several areas of expertise to determine the best combination of media to achieve the client’s marketing communication campaign objectives. His role may include analyzing target audiences, keeping abreast of media developments, obtaining media costs, discovering market trends, and understanding motivations of consumers. Thus media planning requires an analysis of both quantitative and qualitative information. A media buyer’s role begins from where a media planner’s ends. A media buyer is primarily concerned with the procurement of media real estate at optimal placement and price. This involves a lot of negotiation for the best rates, advertising time and space. When planning what to buy, they must evaluate factors based on vehicle formats, rates, availability, etc. While media planners are concerned media vehicle channel, Yahoo website, etc. In today’s competitive and media fragmented world, media buying goes hand-in-hand with media planning. In fact it is often seen that the media buy determines the media plan. Gone are the days when there was little negotiation possible and the media planner held sway. Today media plans are determined by media clout, which in turn is a function of capacity to buy time or space. The general rule that applies is that greater the volume the better the rate one is able to get. Hence the larger advertising agencies and media companies seem to have an edge by virtue of their buying power. Another concept that has emerged in the Indian media context is that of Agency of Record (AOR). Typically, hitherto, most advertising agencies that did the strategy and creative work for clients also handled the media business. Not any more. Now there could well be a situation where the creative business is handled by one agency and the media business by another. The agency that handles the media business is termed as the AOR agency, which would handle the media planning and buying for the client. Normally if the client works on a 15% commission basis, the creative agency gets 12.5% commission, whereas the AOR Agency gets 2.5 %.

17.1.1 The Challenges of Media Planning in the New Age Media planning is becoming an increasingly challenging task with the proliferation of new ways to reach consumers, as discussed in Chapter 1. The addition of new and user-generated communication results, etc. There is also a basic realization that a one-way communication model is giving way to two-way communication, thanks to the Internet. Marketing communication is taking the form of conversations with consumers, and co-creation of messages is the name of the game. Most advertisers, advertising agencies and media companies are still coming to grips with understanding the new technologies and the changing consumers. A recent study was conducted in the US by the Association of National Advertisers, the Interactive Advertising Bureau, the American Association of Advertising Agencies, and Booze Allen Hamilton.1 This study entitled Marketing and Media

Chapter 17

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change in the face of convergence of media and technology, which is happening simultaneously with the fragmentation and personalization of media. With technology enhancing consumer insight, and

accessibility have made mathematics an integral part of media planning. The challenge is to translate insight into foresight. Further, with the fragmentation of media, a planner has to spread his budget across several media to reach the same number of people that could be reached earlier with traditional mass media. In tandem with media fragmentation, is the exact opposite problem of media convergence. Because an online banner ad may be viewed by consumers on their mobile phones, or a television commercial on , planners need to evolve new rules for scheduling media, and new metrics for measurement of results. Those that refuse to learn changing rules of the trade are a sitting duck for extinction. Additionally, the challenge is to juggle all the new and traditional media while keeping an eye on integration. IMC has to ensure proper compatibility and coordination amongst various channels.

with the media people sitting around the table and contributing to the creative development. Today, with the separation of media planning and buying from most ad agencies, many creative people are not able to understand media implementation or arrive at media-driven strategies; and many media personnel are not able to understand the qualitative aspects of message delivery. On top of it, the move to digital media necessitates a higher level of collaboration across all players in the ecosystem. The strategic, creative and media capabilities need to be rebundled, which is a challenge. Further, gone are the days of standard rate cards. Today one can negotiate rates based on the amount of advertising revenues one is able to guarantee the media. Thus media buying has become as important as media planning, if not more. Financial clout is becoming more and more important in the media game and the emergence of large media houses bears testimony to this fact. The new age is also the information age where copious amounts of research is available regarding and linking these to media consumption, etc. While more information leads to more informed planning, the amount of data can befuddle the inexperienced media planner. Besides, while there is a great deal of information about markets and media, the data is either too expensive or not consistent. For instance, radio listenership studies are conducted only periodically, readership data differ based on whether they come from IRS or NRS, television audiences may be measured through actual reach (brand penetration), whereas Facebook audiences may be measured through the number of “likes” (brand preference), etc. Compounding all these problems are the demands made on media planning in the new age. Advertisers are now seeking greater accountability of the advertising rupee. They are no longer

ROI at the cost of effectiveness of message delivery. Most senior marketing executives recognize the importance of a digitally focused culture in media planning, but believe that their organizations are currently unprepared for it. It is also not clear as

676

Advertising and Integrated Marketing Communications

of now as to what kind of an agency will emerge in the future, or whether the creative and media functions will merge again. All in all, marketing communication managers need to give a lot of respect to the new-age media planner and buyer as they operate in a dynamic and demanding environment that requires a lot of skills.

17.2 PREPARING A MEDIA PLAN A media plan is a blueprint that maps out the best channels to send a marketing communication message to the target audience at the right time, at the right place, in the right intensity, and for the right cost. It is based on the marketing communication plan, which is derived from the marketing

1. Performing a Situational Analysis 2. Setting Media Objectives 4. Formulating Media Tactics

17.2.1 Performing a Situational Analysis Just as in the marketing and communication plans, a situational analysis, albeit from a media perspective, is carried out before designing a media plan. Planners should also review internal and external factors that are likely to affect a brand’s media decisions. Internal factors such as a company’s promotional capabilities, nature of the product, media budget, etc. can affect plans. For instance, television might be the best media to use for promoting a soft drink, but the company may not have the budget to create commercials or buy television time. Similarly, external factors such as decisions. For example, a baby food manufacturer may want to advertise through mass media, but regulations in India would forbid him from doing so. Many a time the kind of media employed also depends on the kinds of creatives being planned. For example, it is recognized that food advertising in print has better impact if it is in color. This information needs to be noted by the media planner, as this would have an impact on budgets. As part of the situational analysis, media planners should also review the client’s marketing brief and the agency’s advertising brief, as insights drawn from these briefs will have a bearing on the media plan. The advertising brief outlines the brand’s advertising objectives, which emanate from the client’s marketing objectives. Very often clients do not differentiate between marketing objectives, sales objectives and advertising objectives. Understanding the differences between these objectives is very important to be able to judge advertising’s effectiveness. It is also important for the media planner to understand the marketing environment in which the brand operates. This usually implies accessing databases related to population and economy estimates, and market estimates. There are some popular sources of information as far as population and

Chapter 17

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677

popular sources of information as far as market estimates are concerned are AC Nielson-ORGMARG Retail Audits and IMRB’s Household Purchase Panels.

17.2.2 Setting Media Objectives Media objectives outline the goals to be achieved through the advertising media. They are based realistic, and time-bound. For instance, a marketing communication objective that states… category within three months of product launch”

the average consumer will be exposed to a minimum of four advertising messages.” and frequency, discussed later), and assumes that the target audience and geographic market remain Where? When? How? And how much?

17.2.2.1 Who to advertise to? now it has to be translated into a format appropriate for a media plan. A communication manager or macho man, who comes from an upper middle-income family of India, and loves sky-diving and

indeed talks to one person at a time, and the ad message for the bike will seem more personal. men, i.e. how can they be sought using media parameters? What media channels would these men be consuming? What sources of information do they have to target this audience? Besides, media audience information is available only for While creative strategists are concerned about understanding those for whom they will create match the intended audience. So while there won’t be exclusive media that will reach only “24 year old adventurous, macho men,” media planners can select media that will lead to minimum wastage (i.e. avoid media that reach a high proportion of people outside the target audience). For this, media strategists need information that will allow them to pinpoint the most effective means for delivering characteristics of the target audience to particular media. While marketers usually classify their audiences using demographic, geographic, psychographic and behavioural characteristics, media

Advertising and Integrated Marketing Communications

678

A new

system has been arrived at by the Media Research Users’ Council

∑ ∑ items, ranging from electricity connection and agricultural land to cars, ceiling fans, and air conditioners. . These 12 groups are applicable to both urban and rural India as the new system uses a common graduate would fall into the A2 category. The IRS database has been used as the key foundation of was based on the education and occupation of the chief wage earner of a household. However, the

FIGURE 17.2

The new SEC classification system Chief Earner: Education (Q2)

Illiterate

Literate but no formal schooling/ School upto 4 years

School-5 to 9 years

SSC/HSC

1

2

3

4

5

6

7

None

E3

E2

E2

E2

E2

E1

D2

1

E2

E1

E1

E1

D2

D2

D2

2

E1

E1

D2

D2

D1

D1

D1

3

D2

D2

D1

D1

C2

C2

C2

4

D1

C2

C2

C1

C1

B2

B2

5

C2

C1

C1

B2

B1

B1

B1

6

C1

B2

B2

B1

A3

A3

A3

7

C1

B1

B1

A3

A3

A2

A2

8

B1 B1

A3 A3

A3 A3

A3 A2

A2 A2

A2

A2

A1

A1

No. of Durables (Transfer from Q1)

9+

quick insights to media planner

Some college (incl a Diploma but not Graduate

Graduate/ Graduate/ Post Post Graduate: Graduate: ProfessionGeneral al

Chapter 17

Developing the Media Plan

679

2

FIGURE 17.3

Household dispersion as per SEC 18.4 15.4

14.7 11.4

4.3

3.2 0.4 A1

7.5

7.9

C1

C2

9.7

5.3

1.8 A2

A3

B1

B2

D1

D2

E1

E2

E3

A media planner also needs to pay attention to how the target audience wants to receive information also give some clue about this. As discussed in Chapters 15 and 16,

can

media is shown based on a study done by the Ministry of Health and Family Welfare.3 FIGURE 17.4

Viewer profile of the ICC Cricket World Cup 2007 Gender

37

Age Group

34

41

21 63

Viewers Male

Universe

28

24

23

26

27

22

22

Universe

Viewers

20

23

15 Universe

27 44

66 24

SEC

Viewers

Female

4-14

15-24

25-34

SEC A

SEC B

SEC C

SEC D/E

35+

76.9 41.4 21.9 34.6 56.2 78.3

35.6 34.3

21.8 28.0 36.6 45.7

24.9 31.7 35.9 38.9 40.0

34.7

31.6

Wealth index Lowest Second Middle Fourth Highest

Total age 15-24

Total age 25-49 47.9

51.9

17.8 32.8 49.2 68.9 83.6

50.7 53.3

34.2 35.3

Radio

Age 15-19 20-24 Residence Urban Rural Education No education 100

Market represents good sales potential.

CDI < 100

Market should be watched for declining sales.

CDI >100

The product category has potential, and there is room for growth for the brand. However, the situation may not always call for additional advertising weight, because factors other than a lack of advertising could be hampering growth (e.g. lack of distribution).

CDI < 100

This may not be a good market for advertising as both the product category and the brand are doing poorly.

represents two extreme cases and two moderate cases. At the one extreme, in a

their advertising monies there due to the low concentration of potential consumption. represents another way of analyzing the indexes. Whether to spend advertising budget in a weak market to improve its potential or in a strong market to sustain its potential depends on the company’s desired objectives.

to attain a geographic pattern of sales that matches that of the category. On the other hand, they wants to grow sales among current customers.

Chapter 17

Developing the Media Plan

703

Yet another way of using the two indexes for analysis is to arrive at the Growth Potential Index (GPI) sales for the market) and brand sales (current sales) to measure of the growth potential of a brand in a market. Thus, Market X’s CDI GPI = ¥ 100 Market X’s BDI

market before allocating resources to assess the true possibilities for growth. However, when a brand sells in many markets, the GPI can facilitate the selection of markets for additional spot advertising spending.

17.2.4.2 Media Mix Decisions A media mix refers to the combination of various media that a media planner chooses to incorporate in the media plan. Following key decisions have to be made regarding the exact mix.

Media Concentration vs. Media Dispersion Before selecting individual media, a media planner also has to consider whether to go for a media concentration approach or a media dispersion approach. The uses fewer media and allocates greater spending per medium. This gives the media planner more frequency with the same audience. This strategy is useful when marketers want a high share of voice within at least one medium. Share of voice is the percentage of spending by one brand in a given medium relative to the total spending by all brands that are advertising in that medium. High share of voice gives dominance in the chosen channel. Thus, the media concentration approach is often preferred by brands that have a small or moderate media budget but intend to make a great impact. Besides, a lot of other costs such as preparing creative material for diverse media, managing campaign schedules in different media, etc. can be brought down with the concentration approach. While campaign management hassles are low in this strategy, it is also a risky approach that puts all eggs in one basket. If a particular ad is not well received or the chosen medium only reaches a fraction of the intended target audience, then it will perform poorly. In contrast, many people believe that an important objective of the media plan is to deliver the message to as many consumers as possible. The places the message in as many different media as possible to avoid duplicating the audience. In this strategy, reach has priority over frequency. For instance, in a concentrated approach that only uses online advertising, people who do not use the Net won’t be reached. However, a dispersed approach that uses newspapers and Internet is likely to reach a wider range of audience. Media planners also like the dispersion approach for the reinforcement that it brings – consumers who see multiple ads in multiple media for a given brand may be more likely to buy. illustrates the media concentration and media dispersion approaches for three hypothetical brands of cough syrup. Advertisers of have taken a media dispersion approach

704

Advertising and Integrated Marketing Communications

by allocating the budget relatively evenly across all four media categories, while advertisers of and Stordal have taken a media concentration approach by spending the budget in one or two media to

and Stordal both have a dominant share of voice on television and Internet Stordal is able to dominate the Internet with an overall budget that is almost half of . In contrast, dominates only in the direct mail category where none of the other two players are present. However, it is likely to reach a wider audience due to the variety of media in its mix. to their media strategies, as each medium has its own distinct advantages. It is believed that a media schedule using both print and television delivers audiences better than using television alone. Print

the message can get missed. Print helps in correcting that. In section on strengths of radio, we have seen how the multiplier effect kicks in when radio is added to a television schedule. Also sometimes, there is need for an inexpensive, localized medium to act as a reminder. In such cases outdoor can help. TABLE 17.17

Hypothetical Media Mix (in lakh of Rs.) and Share of Voice

Competing Brand

Television

Magazine

Direct Mail

Internet

Total Spend by Brand

Glycowell

40

25

20

30

115

Adusy

60

25

0

0

85

Stordal

0

Total Spend by Category 100

0

0

60

60

50

20

90

260

Brands’ Share of Voice in Each Category Glycowell

40%

50%

100%

33%

44%

Adusy

60%

50%

0%

0%

33%

Stordal

0%

0%

0%

67%

23%

Total %

100%

100%

100%

100%

100%

17.2.4.3 Media Category and Mix Decisions A wide spectrum of media is at the media planner’s disposal, albeit making the media mix decision a wee bit more complicated. Media planners should begin by determining the personal media network of a typical consumer

8 pm. Thinking of this typical media consumption pattern can help a media planner determine what media to purchase and when. The media planner should also consider choosing the media category that will best suit his planner wants to create mass awareness or remind the largest possible number of consumers about

Chapter 17

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705

a brand, then he picks mass media such as television, radio, newspaper, magazine, etc. If the target audience is smaller, requires personal interaction, product is of high value, marketer wants to build a relationship with a customer, or encourage an immediate sales response, then direct response media such as direct mail, Internet, or mobile phone are good choices. Point-of-purchase media such as sampling, coupons, discounts, etc. are useful when planners want to prompt response in a short time, or convert shoppers into buyers. An integrated campaign might use multiple categories of media objectives at different times or in different markets. Within a media category too, individual media have to be selected. Planners need to look at the entire array of media options, including online advertising, sweepstakes, sponsorships, product placements, mobile phones, blogs, podcasts, etc. and not just at traditional media like television, radio and print. For instance, product placements blend product information with the content itself whereas advertising insertions are separate from the content and inserted in between the content. In today’s day and age, media planners have to see their role not just as media disseminators, but as brand contact managers. Brand contact is any planned and unplanned form of exposure to and interaction with a product. The role of media planners has expanded as they have moved beyond planned messages to take advantage of unplanned messages as well. For example, a local pub chain how media planning works in the advertising process.11 Factors such as the objectives of the media plan, characteristics of the product, size of the budget, creative opportunities available in each media, competitive environment, availability of a medium medium. For instance, when a promotion has to be advertised to a large audience at a short notice, newspapers work best because of their wide reach and short lead-time. Television offers visual impact that interweaves sight and sound, often within a narrative storyline. Rich media ads on the Internet can combine the best of television-style ads with interactive response. Similarly, radio is a highly effective medium when budget is a constraint. Media planners need to consider which media will provide the most impact for their particular brand. A sound media combination can optimize reach, frequency and message impact, and achieve communication goals better.

17.2.4.4 Media Schedule Decisions Media planners need to consider when to advertise. While ideally they would like to advertise at all acts as a constraint. Scheduling refers to the pattern of advertising timing, represented as plots on a and pulsing. according to various scheduling techniques. Continuity scheduling spreads media spending evenly across a given time period – months, weeks or days. Typically for non-seasonal products, or products which are purchased regularly, advertising runs steadily with little variation over the campaign period. Thus this pattern of advertising is prevalent in service and FMCG goods that require continuous reinforcement for top of mind recollection at point of purchase. Continuity scheduling may even be employed for products that face a lot of competition. Following this pattern requires a large media budget, because spreading too thin on a small budget would reduce the impact of advertising in all

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Advertising and Integrated Marketing Communications

FIGURE 17.12 (a-c) Continuity Scheduling

6

Budget (Rs. Lakhs)

5 4 3 2 1 0

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Sep

Oct

Nov

Dec

Sep

Oct

Nov

Dec

Plight Scheduling 14

Budget (Rs. Lakhs)

12 10 8 6 4 2 0

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Pulse Scheduling 7

Budget (Rs. Lakhs)

6 5 4 3 2 1 0

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Chapter 17

Developing the Media Plan

707

discounts and positioning advantages within media. Best suitable for seasonal product categories, involves intermittent and irregular periods of advertising, alternating with shorter periods of no advertising at all. Quite often, small advertisers buy heavier weight than larger competitors for a relatively shorter period of time. Advertisers then hope that the impact of advertising in the previous month can last into the following month. Pulse scheduling maintains a low level of advertising across all months but spends more in peak selling months. The and mitigates their weaknesses. However, not all marketers should use pulsing. Product categories that are sold year round but experience a surge in sales at intermittent periods, such as stationery products (surge during school reopening), deodorants (peak during summer), and airlines (peak during holidays), etc. are good candidates for pulsing. schedule their promotional efforts with the highest potential buying times. The buying times, and cycle, and consumers’ interval between decision-making and consumption. Media planners can use a a guide for the allocation. The product purchase cycle is the interval between two purchases. FMCG products require continuous weekly advertising in a competitive market to constantly reinforce brand as carpet cleaners or travel packages may only need advertising a few times a year. More recently, Philip Jones found that one exposure generates the highest proportion of sales and that additional 12

“recency planning” and suggested that one exposure within a purchase cycle should be set as close to the actual purchase moment as possible. The idea behind recency planning is that when is more important than how many, i.e. advertising will be most effective if it is timed to when a consumer is in the market to buy the product. In the short-term, therefore, additional exposures are likely to be wasteful because audience members are not in the buying mode.13 In some cases, advertisers know when consumers are in the market, such as in the case of travel agencies who know that consumers start planning for summer vacation a month or two before the actual summer holidays. scheduling. For instance, consumers may start planning for their summer vacation trips well before the summer months. Travel services therefore start advertising around the time of decision-making, and continue through the purchase period. In addition, several expected or unexpected events in a brand’s life may call for heavier advertising weights, such as brand introduction, crisis management,

17.2.5 Formulating Media Tactics While the tasks of establishing media objectives and developing media strategies are primarily carried out by media planners, media tactics usually fall within the ambit of media buyers’ role. Tactics are based on media objectives and strategies spelled out earlier in the media plan. Following are the key tactical decisions to be made.

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17.2.5.1 Reach and Frequency Considerations high reach is the goal, then mass media are a better choice than direct response media. However, within mass media also, the media mix as well as the choice of individual media vehicles affects reach. For instance, spreading GRPs over television and print will give a better reach than using either medium alone. Similarly, within television or print media, the choice of vehicles should be such that their cross-media duplication is low. One way to maximize reach is to analyze the audience composition of media vehicles by using syndicated media research. When audience data is not available for cross-vehicle comparisons, media strategists can select competing media vehicles in the same media category, because there is usually less duplication among them. For example, most people and ; few people read all three of them. Therefore, running a print ad in all the three news magazines would give a wide audience reach. Another tactic to maximize reach is called roadblock, wherein advertising is scheduled at precisely the same time of day across various broadcast media vehicles. For instance, if a media planner buys that a television viewer will be able to view only one of the four programmes. No matter which television channel an audience member tunes in at that time, he will have the opportunity to watch the

duplication is still likely to be very low. The roadblocking approach has become more expensive and less effective recently because of increasing fragmentation of television audience. The term has been extended to the online world, however, where it has been very effective. For instance, and both had roadblocked and AOL (different days for both brands), producing a very extensive reach.14 As opposed to reach, high levels of frequency can be achieved by increasing audience duplication amongst media and media vehicles. A smaller number of media should be chosen for higher frequency, and more insertions should be purchased within the same media vehicle or programme. India Today or advertising during the three commercial breaks of in higher message repetition than the same commercial that runs once in three different programs. Broadcast media have the advantage of building up frequency very quickly, as they usually enjoy a “vertical” audience, who tune in to a channel for more than one programme over a couple of hours. Programmes with low audience turnover are more effective for high levels of frequency.

17.2.5.2 Cost Considerations with the same GRPs can also have different costs. Promotional costs are usually categorized in two ways – absolute cost and relative cost. Absolute cost is the actual total cost required to place a message in a medium. Relative costs express the relationship between the actual cost of advertising in a medium, and the audience delivered by that medium. They are thus a measure of cost effectiveness, and used to compare media. With an increasing number of media options available, marketers want

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of other qualitative aspects of media, such as audience quality, editorial environment, etc. To compare relative costs of various media and media vehicles, two basic calculations are available. Cost-per-Thousand or CPM (sometimes abbreviated as CPT), with the M standing for mille delivered by a medium, and is used as a benchmark to calculate the relative cost of an advertising campaign or an ad message in a given medium. Along with CPM, some agencies also use performancebased cost measures such as cost per sale or cost per acquisition (CPA). CPM can be calculated for any medium, any demographic group, and any total cost. It allows media buyers to compare the cost of one medium to another, or of one media schedule to another. CPM medium, i.e. it delivers more audience per rupee invested.

shows the CPM comparisons

media strategist is considering between choosing a full-page black-and-white ad in one magazine, or TABLE 17.18

CPM comparisons (Rs.)

Women 18+

Absolute Cost 1 page, B/W

Readers

CPM

Women 18-24 Readers

CPM

Magazine A

2,00,000

8,00,000

250

2,00,000

1000

Magazine B

3,00,000

15,00,000

200

10,00,000

300

(Rs.)

Women 18+

Absolute Cost :30 commercial Viewers

Women 18-24

CPM

Viewers

CPM

Programme A

3,00,000

13,00,000

231

6,00,000

500

Programme B

4,00,000

22,00,000

182

10,00,000

400

As shown in effective option. On the other hand, if his target audience is women 18-24, then Magazine B is the most economical choice with its skew towards younger women, and minimum wastage (delivery groups used for comparison. Hence, if television audiences are reported in households, the number factor. In spite of its usefulness, there are several challenges in using CPM or relative costs. Firstly, the unit of costing in various media is not the same. For instance, newspapers may report cost per square rating point, websites may report fortnightly rates for different banner sizes, etc. Media strategists Secondly, audiences are also report circulation, outdoor media report counts of the number of automotive vehicles that pass a particular poster location, Internet visitors report unique visitors or click-through audiences, coupon

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programmes may report number of coupons distributed as opposed to used by consumers, etc. Again note that these audience impression numbers can be best described as OTS because not every passerby on the road is going to notice or read the billboard, just as not every television viewer will stay in the room during an ad break. This requires some judgement on the part of media planners to arrive at the actual audience size of a medium before making cross-media comparisons. Thirdly Table , we concluded that Magazine B is the most cost-effective vehicle for reaching women 18-24. television commercial) is the same. There is no evidence, for example, that a one-page advertisement does not take into account the qualitative impact created by an ad owing to its creative style, message delivery, competitive environment, etc. This explains why sometimes advertisers are willing to pay a price premium for being on certain media platforms, even when they are not apparently costimpact and stature. Hence, CPM should only be used as a guide to cost-effectiveness of media. When two media vehicles are similar in major aspects, media buyers choose the less expensive media vehicle. Finally, CPM may over or underestimate the cost-effectiveness of a vehicle. For instance, in

lower than the CPM for women 18-24. Thus, the CPM for the latter is usually referred to as target CPM, which calculates CPM based on target audience, and not on overall audience. CPM may also by 2 lakh women 18-24, it might actually be read by more women 18-24. This is because magazines usually report circulation on the basis of sales, not on readership. However, in one household there might be two women 18-24 who might read the same magazine. Or in a library there will be several women in the target audience who would read from one copy. This is known as pass-along readership, which increases the reach numbers. Thus, if one copy of Magazine A is read by 2 women 18-24 on an average, readers in the can be subjective, and they should always be used with caution when estimating reach. The second cost term, which is based on the relationship of a medium’s advertising cost and its audience delivery, is Cost Per Point (CPP) or Cost Per Rating Point (CPRP). As is selfexplanatory from the name, it is the cost of purchasing one rating point, and is used primarily for broadcast media vehicles. Thus, CPP = Cost of an ad/ Rating of a programme or vehicle

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CPM. One difference between CPP and CPM is that CPM also contains the size of a vehicle audience. However, CPPs are used to estimate affordability, i.e. how many GRPs can be purchased within a media budget. The usefulness of converting CPP to CPM is to provide additional information for the media evaluation process, as illustrated in TABLE 17.19

CPP & CPM Comparisons

Budget = Rs. 12 lakh Market A CPP (known)

Market B

60,000

1,00,000

20

12

Affordable GRPs = Budget/CPP Population size (known)

50,00,000

1,00,00,000

Ad Cost = CPP x 100

60,00,000

1,00,00,000

Rs. 1200

Rs. 1000

CPM = (Ad Cost/Population) x 1000

Thus, although more GRPs can be bought in Market A, the market that delivers the greatest audience per rupee invested is Market B. This is because although the population size in Market B is twice as much as Market A, the CPP is not double. CPPs vary widely from one market to another, from one quarter to another, from programme to programme, etc. For instance, even if the rating of a morning news programme in Markets X and Y each is 4%, the CPP for the programme in Market Y may be twice that of Market X. Remember that CPP is cost per rating point and that one rating point produces different audience numbers in different population-size markets. Thus, the television households in Market Y could be twice as many as in Market X.

17.2.5.3 Media and Vehicle Quality Considerations To enhance the creativity of a message, it is important to select a medium and media vehicle that add to the impact of the message. Thus, if a message is highly emotional in its appeal, television may be better suited than print. For instance, has effectively used television to convey the message of heat resistance of the wires using the emotional theme of mother-and-son. On the other hand, has beautifully used the reproduction quality of magazines and whitespace to depict the exclusivity of platinum jewellery. There might also be certain vehicles that would be more appropriate for a particular message. For instance, general interest or movie channels would

. This is because certain media and vehicles have images that rub on the products advertised in them. characteristics. However, there are several qualitative characteristics of vehicles that are primarily judgmental, such as vehicle reputation, editorial environment, reproduction quality, and added values. For instance, readers of the magazine are likely to be more interested in a new operating

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Advertising and Integrated Marketing Communications

system for Macintosh computers than readers of

Similarly, added values like a special page

Often media buyers work with media sellers to invent creative forms of added values for advertisers. At times ad message requirements may also dictate media choice.

17.2.5.4 Planning Ad Insertions and budget has been allocated amongst them, the media buyer goes on to plan actual ad insertions within the campaign period. He is basically spreading the GRPs among shortlisted vehicles. There is no well-developed general knowledge about the ideal number of insertions, but decisions are made based on reach and frequency objectives, ad availability, competitive scenario, etc. – in short, based on the media objectives stated at the start of the plan. Media buyers have to schedule the number breaks or at the start/end of break on television, on front/back cover of magazine or in a corner, on a billboard in Area A or Area B, as top banner on website or side right banner, etc.). They have spots, one quarter-page colour insertion or one full-page black-and-white insertion, etc. There are several other special creative options to be taken into account (e.g. gatefolds in magazines, tickers on news channels, sponsoring run-out breaks during cricket matches, etc.) While experience and learnt a little more in detail about some of these tactical factors in the earlier chapters on print and broadcast media.

CASE IN POINT Buying Advertising at the Last Minute An online exchange that comes to the rescue of media buyers who haven’t had the luxury of purchasing advertising time or space during the seasonal purchase periods is LastMinuteInventory.com. It allows buyers to complement the existing buying system real-time media exchange dedicated to trading and monetizing unsold inventory.

17.2.5.5 Adding a Drop of Flexibility to the Plan There are so many variables that affect a media plan that rarely any factors will not change during execution. For instance, new market opportunities may arise, such as the surge of a new advertising medium that reaches the marketer’s target audience. Or there may be a threat from a competitor or a crisis situation that could need an urgent communication response. A media planner may have also planned for some preferred media vehicles but they may have raised their rates or may be sold out. Or there could be an unfactored event, such as a drop in programme ratings, or a national crisis that would require change in communication and media strategy. A plan that does not provide for some

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17.2.6 Plan Implementation Once the media plan is prepared, the media operations department takes over for the implementation of the media plan. This consists of preparing what are known as release orders for each media vehicle, be it press, television, radio, outdoor, etc. These release orders give complete details about the advertising campaign to be released in that particular medium along with the rates, number of insertions/spots, duration of the campaign, days on which the ads have to be released, etc. Accompanying these release orders is the appropriate material required for the campaign, be it a print ready ad or a commercial tape. Today much of this material is processed in digitized formats.

17.2.7 Evaluating the Effectiveness of a Media Plan After the campaign is released across the various media and the planning period is over, a post evaluation is done to understand how much of what was planned actually took place in the right

media, communication and marketing objectives to check to what extent they were achieved. Current assessment helps determine if the strategies employed were successful and whether they should be adopted in future. ads appear in the media vehicles in agreed-upon terms? Media buyers look at “tear-sheets” – copies several kinds of problems may take place at the implementation stage. Ads may not appear in the right medium at the right time. Sometimes the reproduction quality of the print ads is poor. Television ads may not have the proper audio or the visual quality may be bad. Then begins a round of haggling between the media and the agencies concerned. Normally if the claim is valid, media companies provide what is known as a “make good.” In other words the ad is released again on another day and due care is taken that the second time around the same mistake does not take place. For electronic media, media buyers examine the ratings of the programmes in which commercials were inserted to make sure the programmes delivered the promised ratings. Usually broadcasters make good for the difference in ratings when they are less, by running additional commercials at no extra charge. Another factor that planners evaluate is the media vehicle exposure. How many of the target audience were exposed to the media vehicles and to ads in those vehicles during a given period of time? If the measured level of exposure is near to or exceeds the planned reach and frequency, then whether the campaign has met the media objectives in terms of reach and frequency. Media strategists also need to evaluate if the communication objectives were achieved, i.e. did be assessed in terms of whether the message has gone home to the target audience and whether it has resulted in any behavioural change. This, of course, is dependant not only on the media strategy but also on the creative strategy. Communication results are both a function of advertising creative and media planning, and hence they are evaluated in entirety to make accurate assessment of the

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where one agency could be developing the creative product and another agency responsible for

Summary Media planning is a science and an art that helps determine the most effective manner of spending the marketer’s money across media so as to generate the best and for a brand.

advertise? How much to advertise? And how much to spend on media? Media planning is becoming an increasingly challenging task with the proliferation of new ways to reach consumers, fragmentation of media, media convergence, lack of standard rate cards, etc. The preparation of a media plan begins with a situational analysis of internal and external factors that may affect media. Then media objectives are set in terms of the target audience, target market, period of advertising, and reach and frequency goals. Reach is the number or percentage of whereas frequency is the number of times that the average household or person is exposed to an advertising message or media. Gross rating points are the product of reach and frequency, and

reach and frequency are inversely related. Also, there is a minimum threshold of GRPs below which advertising does not have much impact, and a saturation point, above which GRPs will not yield much consumer response. Several decisions such as those related to the media mix and media schedule are made while designing the actual media strategy. Actual media vehicle selection and planning of ad insertions happens while planning media tactics. Finally, all media decisions have to be viewed within the constraint of promotional budget. Measures such as CPM and CPP are used to evaluate the to measure and how to measure.

Exercise 1. Comment on the media plan of frozen yogurt given in the opening vignette. What changes would you like to make to this plan? Why? it is possible to determine effective frequency with certainty?

Quick Qs

of the stations?

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read A. If you schedule an ad in both magazines, how many ads will the average reader be exposed to?

group? to spend for this schedule? 5. Refer in the chapter. Based on this information,

condoms decides to

No. of ad units purchased

Television

Type of ad purchased

Cost per ad unit (Rs.)

Jan

Feb

Mar

GRPs

R/F from Jan-Mar

Total Cost from Jan-Mar

30-second spot

40,000

8

4

-

?

?

?

Radio

10-second spot

250

20

10

8

?

?

?

Wall painting/ Hoarding

20’ x 10’ hoarding

15,000

5

3

3

?

?

?

GRPs

?

?

?

?

Combined Reach

?

?

?

?

Average Frequency

?

?

?

?

TC =?

Fill in the missing information and calculate the total cost of this schedule. What is the CPM? If the media planner of believes that the audience that has the least exposure to media is the most vulnerable to unplanned pregnancies, and hence wants to reach out to these people given in ? 6. The four-week reaches and frequencies of two media plans are as follows. If the cost of both plans is the same, which one would you choose? Indicate your choice if the effective frequency exposures, which plan should he prefer? Why? Frequency of Exposure

Plan A’s Reach

Plan B’s Reach

1

24

20

2

16

15

3

9

12

4-5

6

13

6-8

5

10

9-12

5

4

13+

5

1

Average Frequency

4.0

3.6

Total Reach

?

?

Reach at 3+

?

?

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Suggested Class Project 1. Prepare a media plan for the product for which you have prepared a creative communication plan over the previous chapters. Present the plan before your class.

Critical Thinking Questions estimating its levels. Agree or disagree. 2. Seniority and experience are valuable assets of a media planner. explain.

CASE STUDY Market Expansion of Chamkeela Toothpaste15 Chamkeela Toothpaste toothpaste16 is an established brand of Ayurvedic toothpaste that has been catering to headquartered in Maharashtra and markets several Ayurvedic FMCG products in India.

is

the use of calcium-rich in its product, as opposed to dicalcium phospate or bone ash, which is animal-based and used by most toothpastes as a tartar control agent. promises protection against tooth decay and enhancement of the health of gums. Its target market is slightly older,

as well as in its home-ground Maharashtra, as these states have a strong sense of oral hygiene and a

has primarily relied on traditional advertising media, including television, cinema advertising, and some print.

The Toothpaste and Toothpowder Market Oral hygiene has assumed great importance in Indian households in the recent past and FMCG companies are arming themselves to the teeth to capture a large share of this fast growing market.

their gums with toothpowder was the best way to maintain oral hygiene and, hence used both

the toothpowder category has actually seen a de-growth of 2%. This upward trend of toothpaste 228.4 million currently 66% Indian HHs use toothpaste, 24% use toothpowder, while 18% are non-dentifrice users (those who use neither toothpaste nor toothpowder).

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Amongst the two, toothpastes are slowly becoming the preferred product for cleaning teeth. Globally, consumers are now embracing toothpastes. Yet there are those who swear by toothpowders, especially the senior citizens. One reason why toothpowders still exist in urban areas is the latest trend of using natural products, which toothpowders like or promise to have. TABLE 17.20

Number of Indian HHs

Category of HHs in India High-income HHs (Earning over Rs. 1.80 lakh p.a.)* Middle-income HHs (Earning between Rs. 45,000 and Rs. 1.80 lakh p.a.)* Low-income HHs (HHs earning less than Rs. 40,000 p.a.)* Total

Number of HHs (in millions) 46.7 140.7 41.0 228.4

* at 2001-02 prices Source: National Council of Applied Economic Research (NCAER) estimates on Earnings and Spendings at the end of 2009-10

While the overall toothpaste market is currently growing at 8%, the dentist-recommended

18

The growth in the urban market has been largely driven by the gel segment, which is growing at a rate much faster than the cream segment. However, toothpaste usage in India as compared to other countries

Competition by

is the clear leader in toothpastes, in both volume and value, with 42% share each, followed and

leads in Apart from these major players some regional and national players also operate in the toothpowder market. The toothpaste brands in the market offer two basic types – paste and gel. etc are examples of the former type, promising clean teeth and a safeguard against cavities. Gel toothpastes such as , etc. promise fresh breath. and combine gel and paste together. Many new entrants have entered the toothpaste category attracted by its market potential and steady growth rates. lists the pack sizes and prices of some of the popular brands.

Plans Ahead the period of next two years. It is considering converting toothpowder-using HHs as the concept of oral hygiene is already established in this segment. Historically also, it has been observed that people upgrade from (twig cleaners) to toothpowders, and from toothpowders to toothpastes. Table

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Advertising and Integrated Marketing Communications

in these states. From the IRS data an average, there are 3.8 individuals per HH. TABLE 17.21

Popular Toothpaste Brands

Brand Oral B Colgate

Total Gel Ultra Sensation Calciguard Germicheck 2-in-1

Pepsodent Aquafresh Close up

TABLE 17.22

managers have inferred that on

Product Paste + brush Paste Gel Whitening Paste Whitening Paste Paste Paste Paste+ Gel Paste + Gel Gel

Weight 100gm 100gm 100gm 150gm 150gm 100gm 200gm 150gm 100gm 100gm

Price (Rs.) 55.00 35.00 24.50 39.00 39.00 24.50 49.90 45.10 25.00 33.00

Market Situation in the Top 10 Toothpowder-using States of India in 2010

State Uttar Pradesh Maharashtra Madhya Pradesh Bihar Tamil Nadu Andhra Pradesh West Bengal Karnataka Rajasthan Jharkhand All India

Number of HHs using only Toothpowder (‘000) 8079 5360 4248 3678 3493 3152 1793 1554 1293 617 36544

Toothpaste CDI 85 110 90 70 120 110 100 105 90 80 100

Chamkeela’s BDI 88 112 80 65 122 100 90 115 90 70 100

The Rural Draw believes that there is a great opportunity for its brand in the rural segment, owing to consumers, as well as similar awareness and exposure levels because of the rapid spread of television. Further, the growth of rural infrastructure such as mobile and Internet connections continues to improve rapidly, making consumers more connected to marketing trends. This is making it easier for used a single brand in FMCGs. Today, not only multi-brands are used by many families, but also premium brands such as Dove soap are seen in many households. The rural youth has also become

there has been women’s empowerment through the 33% reservation of seats for women in have emerged as the new shoppers in recent years.

,

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While consumption and penetration levels of most FMCGs are much lower in rural areas, with present level of per capita urban consumption. This offers a huge opportunity for several categories including toothpastes. The shrinking dependence on agriculture is bringing in regularity and higher income through employment in the non-farm sector. The rapid wealth creation in small towns is also opening up new job opportunities for rural people who continue to live in their villages but work in nearby towns. This has resulted in substantially increased purchasing power as people earn town level salaries but spend for a rural lifestyle. Further, organized retail is also emerging as a new fancy in rural India, which would be a great plus to brands like marketing strategies to tap the huge potential of rural market. Organized players in rural areas are offering one-stop-solutions at lower prices than what is offered at nearby kirana shops. Increasing media exposure has made rural consumers familiar with national and international brands and rural retail chains are cashing on the rising aspirations of these price sensitive consumers by offering them variety and convenience. With increasing penetration of mobile phones, people who have immigrated behaviour of their families back home. Of course, MAB is aware that reaching out to the rural consumer comes with its own set of for any marketer because the very small off-take per location makes distribution ROI unviable. The communication with a fragmented population, which largely has to be direct, as people take personal However, utilizing the fact that mobile density in rural areas has gone up dramatically, some chains like Hariyali Kisaan establish communication with consumers through 15-second voice messages as rural consumers may not be comfortable reading SMSes. The other key challenge is affordability, which calls for small pack sizes like the sachets used for consumer goods. Further, storage capacity is less in rural households and the frequency of buying is more. So the challenge for retail chains is to bring customized packets.

Advertising and Promotions In wake of the opportunities in the sector, the toothpastes companies have been advertising on a heavy note, spending on an average about 6.15% of their sales on advertising and promotions. In

GlaxoSmithkline Consumer Healthcare is planning to invest around Rs. 25 crore on various marketing initiatives over the next one year to promote its newly launched global toothpaste brand Sensodyne.21 MAB too plans to up its advertising spend for from 5% of the toothpaste brand’s IndiMark has already been on the job of preparing a detailed media plan for the new campaign.

would like to explore opportunities in the rural segment as well, and that the latter should advise it on whether this would be a good decision. gives the population data for the rural and urban regions in various states, whereas

Population Data of India

91,347,736

84,665,533

72,597,565

25,540,196

12,548,926

Uttar Pradesh

Maharashtra

Bihar

West Bengal

Andhra Pradesh

Madhya Pradesh

Tamil Nadu

Rajasthan

Karnataka

Gujarat

Orissa

Kerala

Jharkhand

Assam

Punjab

Haryana

Chhattisgarh

Jammu and Kashmir

01

02

03

04

05

06

07

08

09

10

11

12

13

14

15

16

17

18

25,753,081

27,704,236

31,169,272

32,966,238

33,387,677

41,947,358

60,383,628

61,130,704

68,621,012

72,138,958

103,804,637

112,372,972

199,581,477

State or union territory

Rank

Population (2011 Census)

1.04%

2.11%

2.09%

2.30%

2.58%

2.72%

2.76%

3.47%

5%

5.05%

5.67%

5.96%

6.00%

7.00%

7.55%

8.58%

9.28%

16.49%

10,143,700

20,833,803

21,144,564

24,358,999

26,655,528

26,945,829

31,841,374

36,804,660

50,671,017

52,850,562

56,507,188

62,405,679

60,348,023

76,210,007

80,176,197

82,998,509

96,878,627

166,197,921

% of PopuPopulation lation (2001 Census)

0.99%

2.03%

2.06%

2.37%

2.59%

2.62%

3.10%

3.58%

4.93%

5.14%

5.49%

6.07%

5.87%

7.41%

7.79%

8.07%

9.42%

16.16%

% of Population (2001)

As per census data 2011, the total population of India is: 1,210,193,422.

TABLE 17.23

23.7%

22.6%

19.9%

13.7%

16.9%

22.3%

4.9%

14.0%

19.2%

15.7%

21.4%

15.6%

20.3%

11.1%

13.9%

25.1%

16.0%

20.1%

% Growth (2001– 2011)

9,134,820

19,603,658

16,531,493

17,316,800

26,780,526

25,036,946

17,445,506

34,951,234

34,670,817

37,552,529

51,540,236

37,189,229

52,537,899

56,311,788

62,213,676

92,075,028

61,545,441

155,111,022

Rural Pop.

3,414,106

5,936,538

8,821,588

10,387,436

4,388,756

7,929,292

15,932,171

6,996,124

25,712,811

23,578,175

17,080,776

34,949,729

20,059,666

28,353,745

29,134,060

11,729,609

50,827,531

44,470,455

Urban Pop.

222,236

135,191

44,212

50,362

78,438

79,714

38,863

155,707

196,024

191,791

342,239

130,058

308,245

275,045

88,752

94,163

307,713

240,928

Area km²

978

918

968

926

995

930

992

947

916

946

908

Sex ratio

883

991

877

893

954

947

(Contd.)

56

189

573

550

397

414

859 1,084

269

308

319

201

555

236

308

1029

1102

365

828

Density (per km²)

720 Advertising and Integrated Marketing Communications

1,457,723

1,382,611

1,054,686

379,944

342,853

242,911

Himachal Pradesh

Tripura

Meghalaya

Manipur

Nagaland

Goa

Arunachal Pradesh

Mizoram

Sikkim

Delhi

Pondicherry

Chandigarh

Andaman and Nicobar Islands

Dadra and Nagar Haveli

Daman and Diu

Lakshadweep

India

20

21

22

23

24

25

26

27

28

NCT

UT1

UT2

UT3

UT4

UT5

UT6

Total

100%

0.01%

0.02%

0.03%

0.03%

0.09%

0.10%

1.38%

0.05%

0.09%

0.11%

0.12%

0.16%

0.22%

0.24%

0.30%

0.57%

0.84%

1,028,737,436

60,650

158,204

220,490

356,152

900,635

974,345

13,850,507

540,851

888,573

1,097,968

1,347,668

1,990,036

2,293,896

2,318,822

3,199,203

6,077,900

8,489,349

% of PopuPopulation lation (2001 Census)

100%

0.01%

0.02%

0.02%

0.03%

0.09%

0.09%

1.35%

0.05%

0.09%

0.11%

0.13%

0.19%

0.22%

0.23%

0.31%

0.59%

0.83%

% of Population (2001)

17.64%

6.2%

53.5%

55.5%

6.7%

17.1%

27.7%

21%

12.4%

22.8%

25.9%

8.2%

-0.5%

18.7%

27.8%

14.7%

12.8%

19.2%

% Growth (2001– 2011)

50,308

182,580

159,829

135,533

1,025,682

850,123

16,333,916

151,726

561,997

313,446

906,309

573,741

822,132

595,036

960,981

688,704

3,091,169

Urban Pop.

833,087,662 377,105,760

14,121

60,331

183,024

244,411

29,004

394,341

419,319

455,962

529,037

1,069,165

551,414

1,406,861

1,899,624

2,368,971

2,710,051

6,167,805

7,025,583

Rural Pop.

3,287,240

32

112

491

8,249

114

479

11,297

7,096

21,081

83,743

3,702

16,579

22,327

22,429

10,486

55,673

53,483

Area km²

866

889

975

920

968

931

987

986

961

974

963

Sex ratio

368

2,013

2,169

698

46

9,252

940

946

618

775

878

818

2,598 1,038

9,340

86

52

17

394

119

122

132

350

123

189

Density (per km²)

Developing the Media Plan

1,210,193,422

64,429

1,244,464

16,753,235

607,688

1,091,014

1,980,602

2,721,756

2,964,007

3,671,032

6,856,509

10,116,752

Uttarakhand

19

Population (2011 Census)

State or union territory

Contd.

Rank

TABLE 17.23

Chapter 17 721

Advertising and Integrated Marketing Communications

722

TABLE 17.24

GDP Per Capita (in Rs.)

State/UT

2009-10

2010-11

% Growth

1

Andhra Pradesh

51025

60458

18.4

2

Arunachal Pradesh

51405

N/A

N/A

3

Assam

27197

30413

11.8

4

Bihar

16715

20069

20.0

5

Jharkhand

27132

29786

9.7

6

Goa

132719

N/A

N/A

7

Gujarat

63961

N/A

N/A

8

Haryana

78781

92327

17.1

9

Himachal Pradesh

50365

58493

16.1

10

Jammu & Kashmir

30582

33056

8.0

11

Karnataka

52097

59763

14.7

12

Kerala

59179

N/A

N/A

13

Madhya Pradesh

27250

N/A

N/A

14

Chhattisgarh

38059

44097

15.8

15

Maharashtra

74027

83471

12.7

16

Manipur

27332

29684

8.6

17

Meghalaya

43555

48383

11.0

18

Mizoram

45982

N/A

N/A

19

Nagaland

N/A

N/A

N/A

20

Orissa

33226

36923

11.1

21

Punjab

60746

67473

11.0

22

Rajasthan

34042

39967

17.4

23

Sikkim

68731

81159

18.0

24

Tamil Nadu

63547

72993

14.8

25

Tripura

35799

38493

7.5

26

Uttar Pradesh

23395

26051

11.3

27

Uttarakhand

59584

68292

14.6

28

West Bengal

41219

N/A

N/A

29

Andaman and Nicobar Islands

74340

N/A

N/A

30

Chandigarh

118136

128634

8.8

31

Delhi

116886

135814

16.1

32

Pondicherry

88158

98719

11.9

India (total)

46492

54835

17.9

Source: Press Information Bureau, Government of India, www.pib.nic.in

Chapter 17

Developing the Media Plan

723

gives the distribution of HHs, income and expenditure across quintiles of population, along with their rural-urban ratio. The data proves that the rural market is witnessing robust growth. About half of Q5 HHs are actually in rural India. Q4, which is a relatively poorer but fairly well off shows that improvement in rural infrastructure will impact consumption more than improvement in income. Q1, Q2, Q3 households are predominantly in rural areas.22 TABLE 17.25

Population Quintiles by Income

Population quintile arranged by income

% of HHs

Rural-Urban Split (%)

HH income (%)

HH expenditure (%)

6

9

Q1 (Lowest)

18

91-9

Q2

19

83-17

9

12

Q3

20

77-23

14

17

Q4

21

56-44

21

22

Q5 (Highest)

22

48-52

Total

100

51

40

100

100

Source: NCAER’s household surveys, 2005-06

Media Indimark has also obtained a list of the states of India ranked in order of percentage of people exposed to the media . This information was compiled from the third round of National survey conducted by the International Institute of Population Sciences (IIPS), Mumbai, designated by the Ministry of Health and Family Welfare, Government of India.23 TABLE 17.26 Media Reach

Urban%

Rural%

Total%

Press

35.8

13.2

20.4

TV

82.4

45.4

57.2

Satllite

73.2

32.6

45.5

Radio

21.2

15.9

17.6

Cinema

5.7

2.0

3.2

Internet

7.0

0.8

2.8

All Media

86.6

54.5

64.7

(Est. Ind. : 88.1 Cr. Uban: 27.9 Cr. Rural: 60.1 Cr.) Press: AIR, TV: at least once a week, Radio: at least once a week, Cinema: At least once a month

Indimark is exploring several media choices, one of them being cinema advertising. The rate card of Table . IndiMark has also requested a quotation from Ryder Promotion Services for outdoor mobile advertising, as shown in . In broadcast media, Indimark prefers to consider the National has found through TAM study that television and radio have the maximum audience duplication

Advertising and Integrated Marketing Communications

724

and

Table Further, information about television owning HHs is given in , whereas the FMCG penetration among television audiences is shown in . MAB is not very keen on using the print medium as it feels that the medium’s penetration among its target audience is likely to be poor. In rural areas, HH subscription to newspapers is low, but they are usually read at common gatherings, teashops, etc. Magazines are largely not read. TABLE 17.27

Ranking of Indian States by Media Exposure

State

Media Exposure Males (%)

Media Exposure Females (%)

Males’ Rank

Females’ Rank

Kerala

97

90

1

2

Manipur

95

90

2

2

Tamil Nadu

94

88

3

4

Goa

93

92

4

1

Andhra Pradesh

93

79

5

8

Mizoram

91

87

6

5

Karnataka

90

77

7

10

Punjab

90

84

7

6

Maharashtra

88

76

9

11

Himachal Pradesh

87

79

10

8

Jammu and Kashmir

87

82

10

7

Gujarat

84

71

12

15

Uttaranchal

83

73

13

13

Tripura

82

74

14

12

Whole India

80

65

15

17

Haryana

78

67

16

16

Assam

77

61

17

21

Sikkim

77

73

17

13

Uttar Pradesh

76

52

19

25

Nagaland

75

62

20

20

West Bengal

75

63

20

19

Orissa

74

61

22

21

Rajasthan

74

46

22

27

Arunachal Pradesh

72

64

24

18

Bihar

71

41

25

28

Chhattisgarh

68

52

26

25

Madhya Pradesh

68

53

26

24

Meghalaya

68

60

26

23

Jharkhand

57

39

29

29

Chapter 17 TABLE 17.28

Developing the Media Plan

Rates for Audio / Mono Slide Exhibition in MovieMasti Theaters Across India

Location

Theatre

Seating Slide Rate Capacity Per Month / Per Slide Mono

Audio

Rural

MovieMasti Rajhans Screens

115

3000

Semi-urban

MovieMasti Silver Screens

170

MovieMasti Gold Screens Urban

Metro

Format

Commercial Rate Per Month

9000

35 mm

18000

4500

12000

35 mm

24000

364

5500

15000

35 mm

30000

MovieMasti Silver Screens

212

6500

19500

35 mm

39000

MovieMasti Gold Screens

364

8300

24900

35 mm

49000

MovieMasti Diamond Screens

393

12000

26000

Digital

51500

MovieMasti Mini Screens

90

6500

19500

Digital

39000

MovieMasti Gold Screens

212

9000

25000

Digital

49000

MovieMasti Diamond Screens

393

14000

27900

Digital

52500

MovieMasti Platinum Screens

482

18500

30000

Digital

55000

TERMS: 1. There are at least two daily shows in each theatre on normal days. 3. All rates are subject to change without any prior notice. TABLE 17.29

Ryders Promotion Services Quotation for Hydraulic Mobile Van/Tricycle innovative hydraulic hoardings on mobile vans and tricycles.

Features ∑ ∑

Attractive in comparison to normal hoardings

725

Advertising and Integrated Marketing Communications

726

∑ ∑ ∑

Vans and tricycles can cover an entire city or village respectively in a day, and an entire state in a month Front lit and back lit lighting options Alternate use as road show canter or for sampling activity

Display Size Rates (in Rs.) Van

Tricycle

Front lit

Back lit

Front lit

Back lit

Daily rate (30 days)

3,500

4,000

2,000

2,500

Daily rate (15 days)

4,500

5,000

3,000

3,500

Terms and Conditions ∑ ∑

Hoardings will be available for a minimum of 15 days or its multiples.

Quotation of All India Radio24 TABLE 17.30 (a)

Rate for National News

S. No.

Time

Rate for 10 seconds spot (In Rs.)

1.

Before 0800 Hrs. Hindi news

6500

2.

Morning Mid News break-Hindi

13000

English

13000

Urdu

6500

3.

Afternoon news feature in English 1400-1430 hrs.

5200

4.

Afternoon news feature in Hindi 1430-1500 hrs.

5200

5.

Mid break in afternoon news feature English

10400

Hindi

10400

6.

Before evening Hindi news at 2045 hrs.

4500

7.

After English news at 2115 hrs.

4500

8.

Mid break in evening news Hindi

9000

English

9000

Note: 1. Time check of 7 seconds duration allowed and is to be charged as 10 seconds spot rate. 2. Rate for other duration will be calculated on pro-rata basis.

Chapter 17

TABLE 17.30 (b)

Developing the Media Plan

727

RATE FOR REGIONAL NEWS (FOR 10 SECONDS SPOT)

Name of the State

Rs.

Andhra Pradesh

1900

Arunachal Pradesh

600

Assam

1200

Bihar

1200

Chhattisgarh

700

Gujarat

1400

Haryana

500

Goa

350

Himachal Pradesh

700

Jammu & Kashmir

1000

Jharkhand

1200

Karnataka

2000

Kerala

1400

Madhya Pradesh

2200

Maharashtra

2200

Manipur

300

Meghalaya

600

Mizoram

350

Nagaland

350

Orissa

1350

Puducherry

200

Punjab

800

Rajasthan

2000

Sikkim

200

Tamilnadu

2200

Tripura

350

Uttar Pradesh

3000

Uttarakhand

500

West Bengal

1300

Delhi

700

Port Blair (A&N Islands)

300

NOTE: 1. Rate for other duration will be calculated on pro-rata basis. 2. Rate for mid break news will be 100% extra over and above these rates. 3. Time Check of 7 seconds duration allowed and is to be charged as 10 seconds spot rate. 4. Commercial time available (FCT) for various news bulletins will be as under:

728

Advertising and Integrated Marketing Communications

5 mins. News Bulletin:

Before & After: 60 seconds Mid-break: 30 seconds

10 mins. & longer duration

Before & After: 180 seconds Mid-break: 120 seconds

Categorisation of Programmes for Spot Buys and Sponsorship of in House Programmes/ Sponsored Programmes Category

Type of Programme

I

Film Music/listeners choice

II

Farm and Home, Women, Children & Youth Programmes, Health Programmes, Morning Information Programmes, Phone-in Programmes, Plays, Radio Report, Light/Folk Music, Talk & Discussions

III

All other programmes such as features, magazines, classical and western music

TABLE 17.30 (c)

State Hook-Up Rates for Spot Buys–10 Seconds Duration In Rupees

S.No.

Name of the State

Sport per 10 Seconds Prog. Cat.-I

Prog. Cat-2

Prog. Cat.-3

2400

1400

1.

Andhra Pradesh

3600

2.

Arunachal Pradesh

1100

800

400

3.

Assam

2100

1400

800

4.

Bihar

1400

950

500

5.

Chhatisgarh

1400

950

500

6.

Gujarat

1700

1400

850

7.

Haryana

1050

650

350

8.

Himachal Pradesh

750

520

300

9.

J&K

1600

1100

600

10.

Jhankhand

1330

900

510

11.

Kerala

2200

1375

830

12.

Karnataka

3800

2550

1450

13.

Maharashtra

6175

4175

2350

14.

Madhya Pradesh

4100

2700

1600

15.

Manipur

300

200

100

16.

Sikkim

17.

Meghalaya

300

200

100

1230

800

450

18.

Mizoram

475

330

170

19.

Nagaland

475

330

170

20.

Tripura

750

525

290

contd.

Developing the Media Plan

Chapter 17 TABLE 17.30 (c)

contd.

21.

Orissa

2750

1900

1050

22.

Punjab

950

600

360

23.

Rajasthan

4075

2800

1600

24.

Tamilnadu

3050

1950

1200

25.

Uttar Pradesh

4750

3000

1825

26.

Uttarakhand

475

330

170

27.

West Bengal

1700

1140

675

TABLE 17.31

Number of Television Owning HHs (in millions)25 2009

2010

TV Owning HHs

124

134

C&S HHs

90

103

Digital HHs

15

20

TABLE 17.32

Exposure to Television and FMCG Penetration26

Age 12-19

20-24

25-34

35-44

45+

18

14

25

19

24

E

Gender Male

Female

60

40

A

B

C

D

14

23

34

28

12-19

20-24

25-34

35-44

45+

17

14

20

25

24

Age

Gender Male

Female

42

58

A

B

C

DE

18

22

27

33

729

730

Advertising and Integrated Marketing Communications

Questions 1. Who should be the target audience for market expansion? What information is available regarding this chosen audience? 2. Identify the geographical markets that should expand into. What is the rationale for selecting these markets? 3. On behalf of IndiMark, prepare a full-scale media plan for . Specify the budget needed for this plan, and whether it matches the advertising spend goals set by the brand. State the reach and frequency goals, and the R/F levels generated by the plan. Feel free to make some assumptions where enough data is not available. Give rationale for the media mix chosen by you (from the media choices given), along with budget allocation to each media. Can you determine the GRPs, CPM, and CPP for this plan and for individual media? Now schedule the actual ad placements across media during the course of one year, as in the media plan. 4. If you could use media other than the ones shortlisted by IndiMark, what would they be? to use, and check the feasibility of their inclusion in the plan.

Endnotes 1. www.domain-b.com www.mrsi.in

(VALS 6. “Magazine Audience Accumulation Study Available To Subscribers,”

Mediamark Research

Awareness,” Association of National Advertisers, New York www.admedia.org www.admedia.org 11. www.admedia.org

14. www.admedia.org

The Economic Times,

Chapter 17

Developing the Media Plan

The Economic Times, 22. “Understanding Consumer India Better,” www.ramabijapurkar.com 23. www.nfhsindia.org

731

Part Six Budgets, Objectives and Evaluation This section does a reality check of communication. Chapters 18 and 19 put creative ideas to the test of fixed budgets and defined objectives through the process of evaluation. Chapter 20 discusses the regulatory, legal and ethical environment of communications. Thus prodding students once again to test their ideas before implementation and help them review various acts and codes that govern other areas of promotion.

Chapter 18 Promotion Objectives and Budget Determination Chapter Objectives After reading this chapter, you will be able to: Understand the importance of setting communication objectives for a promotional programme. Distinguish and choose between sales- versus communication-oriented objectives Learn the principles and importance of the DAGMAR approach to setting objectives and measuring advertising effectiveness. Comprehend the theoretical approaches to budget setting, factors affecting communication budgets, and the methods to estimate budgets. Realize that budgets may be allocated amongst various promotional tools, markets and time periods.

In Perspective

If a dynamic economy is to be preserved in this country, it is going to take advertising budgets that are geared to the market and to the opportunity, rather than to a historical formula or to a management guess. – Leo Burnett (1949) as cited by Broadbent

Odyssey’s odyssey through trying times in nascent years

Ms. Sheorey was the marketing communication manager of Odyssey men’s shaving cream launched in December 2006. A year after the launch, sales had not picked up as expected, which was a cause of concern for the brand’s marketing manager Mr. Dixit. A marketing research survey probing the situation indicated that while Odyssey’s awareness as one of the top three shaving brands was 70% among the target audience of middle-class, urban men, sales were slow owing to inertia in trying Odyssey and habitual buying of the market leader brand by the

736

Advertising and Integrated Marketing Communications

target audience. Ms. Sheorey and Mr. Dixit met up to discuss the situation. Ms. Sheorey explained that it was normal for communication of new brands to not lead to immediate sales, but the fact that 70% awareness had been achieved was proof that the launch campaign had done its job. But Mr. Dixit wasn’t fully convinced and announced that the second year’s market share target of 10% had to be achieved if the brand wanted to continue in the product line. Mr. Dixit had indicated that since Odyssey was not a star brand of the company, it had to feed itself. Hence, budget should be taken at 5% of the sales projections of each year, a standard employed by the industry. Ms. Sheorey, on the contrary, explained that low initial sales leading to low communication budget in the initial years would mar the brand’s growth. She suggested that beginning next year they use the payout plan method through which the brand would start feeding itself, i.e. recover its investment and start Table 18.1 convinced Mr. Dixit that the brand would breakeven in the third year and by end of year three earn a cumulative return of 20% on the total investment of both years. He thus agreed to a higher budget in the second year. TABLE 18.1

Payout Plan for Odyssey (Figures in Rs. Crore)* Year 2

Sales

10.00

Year 3 20.00

Total operational costs

4.00

6.00

Gross profit/(loss)

6.00

14.00

Marketing communication costs

8.00

6.00

Net profit/(loss)

(2.00)

8.00

Cumulative profit/(loss)

(2.00)

6.00

* Note: Calculations are made afresh from the second year of launch, as the payout method wasn’t used earlier.

Ms. Sheorey translated the second year’s marketing objective into two short-term 50% preference for Odyssey by highlighting the brand’s distinguishing ingredient Aloe She chose advertising to create preference and product sampling at key supermarkets to generate trials, dividing the budget equally between the two tools. It was decided to measure preference through mall intercept interviews by asking consumers to rank preference and trial rates were achieved, the second campaign was unfolded, with an objective to create consumer dissonance for the market leader brand by demonstrating the superiority of Odyssey, and thus capturing 10% market share. Television ads showing capturing 9% of the market at the end of year 2.

The opening vignette illustrates the nitty-gritties of issues faced by communication managers when setting communication objectives and determining communication budget for their brands.

Chapter 18

Promotion Objectives and Budget Determination

737

For instance, it illustrates the tug-of-war between sales- versus communication-related objectives, institutionalized versus logical budgeting methods, and between marketing/sales and communication objectives, but an undue pressure should not be created on promotion to result into sales from the very start. Also, budgets should support objectives rather than objectives being compromised to suit predetermined budgets. The chapter discusses in detail how promotion objectives and budgets can be determined.

18.1 SETTING COMMUNICATION OBJECTIVES In planning and developing a communication programme, marketing communication managers are faced with the responsibility of deciding the mission of promotion and the money to be spent on it. Determining communication objectives for a promotional programme is essential due to various reasons. First and foremost, it provides a direction to the various people working on the programme, and links them all through a common goal. The media planner might want to allocate time to the medium with the highest reach, the public relations manager might want to reserve maximum budget share for press coverage, the advertising manager might want to talk about quality than price, the copywriter might want to give the message through text instead of visuals, and so on. When they are all put together underneath the shared roof of common objectives, their individual goals are aligned towards achieving a common purpose. Coordination amongst various parties becomes easier and problems can be avoided if common objectives are arrived at for a single promotional programme. Further, setting communication objectives is an integral part of the planning process that affects several strategic and tactical decisions regarding the promotion design, the budget that is allocated to the communication programme, and the evaluation of promotional programmes. For instance, if a new product’s objective is to gain maximum awareness, communication managers might select media with greater reach; if immediate sales is an objective, sales promotion might be given more budgetary share than public relations; and so on. If communication objectives are not properly formulated or used as a guide for strategic planning, communication programmes can fail as indicated by the Box below. When Horlicks’ sales were showing a downward trend in 1976, the marketing objective set before the brand was to reverse the decline in sales. The brand used the annual football league tournament in Calcutta to promote itself as the event attracted obsessive interest and excitement among people. Promotion took form of football pools contest. Each week consumers were invited to forecast the results of selected matches and win prizes. Very attractive prizes ranging from Rs. 5,000 to Rs. 10,000 were offered. Yet the number of entries received from consumers was almost one quarter less than expected. Even consumer purchase of Horlicks showed no increase during the period of promotion. This was because the company lost sight of the fact that football fans were mainly men, who were not the correct target group for Horlicks. A promotion targeting children and housewives would have yielded better results.1

738

Advertising and Integrated Marketing Communications

Objectives also guide budget setting, and communication managers can allocate budgets based on the extent of utility they are likely to derive from their communication. For instance, it is foolish for a retailer to spend lakhs of rupees producing a television commercial for a Diwali sale if the objective is to reach only the local market and the sale is likely to generate only 10% extra sale for the season. In most cases, he cannot possibly sell enough merchandise to afford that kind of expenditure. And it is equally foolish to try to sell someone a Rs. 10 lakh car with a brochure that costs a few rupees per copy. Objectives also serve as a yardstick or standard against which results of a programme can be measured. Communication managers are interested in measuring performance because it tells them if their investment in promotions is generating any returns, and which communication alternatives are producing better results. Recall from Chapter 1 that IMC plans are based on marketing plans. Hence, communication

translated into secondary objectives related to product, price, distribution and promotion tasks.

sales/behavioural or communication effects as indicated in the examples below: for a trial run of our M6 model car within 6 months of its launch. (Sales/behavioural effect objective) – Within a year, convince 50% of brand X users that our brand Y gives twice as much brightness as brand X with the same quantity. (Communication effect objective) In addition to marketing objectives, factors such as characteristics of the product and target audience, competitive promotional activities, marketing mix strategy, positioning strategy, market

18.2 SALES- VERSUS COMMUNICATION-ORIENTED OBJECTIVES There is a raging debate about which of the two – sales- or communication-related objectives – are more appropriate goals for promotional programmes. In this section, we examine arguments for and against both types of objectives. Sales-oriented objectives are behavioural in nature. Goals can be set in terms of quantity purchased, inquiries generated, coupons redeemed, calls made, store visits made, etc. Objectives for promotional tools such as sales promotion, direct marketing or personal selling, are easier to set in terms of sales or behavioural results, than that for other tools. Advocates of sales-oriented objectives argue that when companies are increasingly spending huge sums on promotions every year, the expense measurable results. After all, the ultimate objective of all communication is to get a consumer to purchase the product. Often when expectations for sales are low, communication budgets are the

Chapter 18

Promotion Objectives and Budget Determination

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Although sales-oriented objectives are easier to set and measure, they may not be appropriate for many promotional tools including advertising. A sale is a result of many factors besides communication – product quality, distribution, price, competitive scenario, economic conditions, etc. Hence, communication cannot be solely made responsible for selling products. The process of To illustrate, let’s say a person reads a general interest magazine and comes across an advertisement out the restaurant the next time he chooses to eat out. Did the advertising sell him the restaurant? Wait a minute. He hasn’t yet visited the bistro or tried the food. He is, however, predisposed and attracted by the advertising and has cut out a 10% off coupon for the restaurant from another newspaper ad. The coming weekend he calls up one of his regularly visited restaurants to reserve a table for his wife’s birthday. But he is informed that the restaurant is booked for a party. Thus he and the price reasonable and decides to place an order. Is he sold yet? As he is reading the menu he notices a few non-vegetarian items and is put off. Just as he is about to walk away, the maître d’ inquires regarding his concern. The attendant assures him by stating that the restaurant has separate vegetarian and non-vegetarian kitchens. The consumer is reassured, places the order, eats the food he throws up and blames the food. So now he is no longer sold. He calls the doctor who tells him it was sunstroke… he is back to being sold. He reads a press release for the restaurant, which claims it’s become the hottest joint in the city. He again sees its commercial on his local cable and the next week he also takes his guests to the place. He is still sold. In the above example, sales is a combined result of a magazine ad, sales coupon, non-availability press release and commercial on the local cable. Any of these factors going wrong could have affected the consumer’s patronage of the restaurant. Also, it can be seen that the consumer does not immediately visit the Italian restaurant on reading the magazine ad. However, the ad creates awareness and brings him into a favourable predisposed stage so that he patronizes the restaurant when time comes. Thus, often communication can have a delayed impact on sales (also called carryover effect), which is another problem with having sales-oriented objectives. Finally, having objectives in terms of sales do not guide communication managers in terms of the strategies or actions they need to take for developing and implementing a communication programme. performance and increasing competition. With product life cycles getting shorter and competitive pressures increasing, companies are in a desperate urgency to turn around their communication investments quickly. Hence, as discussed in Chapter 1, in the current times even the compensation of communication agencies is linked to the performance of their communication campaigns in terms of generating sales. This is not to say that sales-oriented objectives are always inappropriate. For certain promotional tools such as sales promotion, direct marketing, retail advertising or personal selling, which often strive for short-term and immediate results, sales objectives are appropriate. For instance, sales promotion is often used at a stage when consumers already have awareness, interest and desire in the product and all they require is a slight nudge to propel them into buying. On the other hand,

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direct marketing and personal selling perform the tasks of awareness and interest generation quickly, and in much the same campaign, also ready the consumer for purchase. Thus the awareness-topurchase cycle found in consumer response hierarchies discussed earlier, is short when these tools are used and it is hence appropriate to delineate their objectives in terms of sales. For example, when the retail chain Shopper’s Stop did a 360-degree campaign using tools like advertising, out-of-home, direct marketing, point-of-purchase and public relations during the festive season of 2001, it set the following sales-oriented campaign objectives: ∑ To achieve the sales target of Rs. 80 crore during the promotion period of 19th October 2001 to 27th January 2002 ∑ To increase customer entry levels by 10% over last year’s customer entry target of 2 million ∑ To increase cash memo size by 5% over last year2 Sales-oriented objectives are also appropriate for certain mature products wherein communication managers have amassed enough promotional experience to be able to peg with reasonable certainty the communication-sales relationship. For instance, with experience they may be able to project with reasonable accuracy the level of promotional effort that can bring about a certain level of sales. For instance, as we will discuss later, a study done by John Philip Jones in 1989 revealed that if a brand has an 8% market share, it has to overspend by about 2% for its promotion to have any impact.3 Communication objectives are to be achieved, and are outlined in terms of awareness to be created, knowledge to be imparted, attitude and behaviour to be changed, image to be built, purchase intentions to be created, etc. They are based on the belief that the most important role of advertising and promotions is to communicate. Sales, as a function, is a byproduct of these objectives and is not expected to result immediately. On the contrary, marketers and communication managers recognize the step-by-step movement of consumers towards purchase as described in the alternative models of consumer response hierarchies described in Chapter 4 (Figure 4.4 ), where purchase results as a culmination of the entire communication sequence. Table 18.2 shows how marketing objectives for a herbal tea Ocha are translated into communication objectives at each stage of the consumer response hierarchy using the AIDA model. TABLE 18.2 (Time period: 1 year) Marketing objectives

AIDA consumer response stages

Marketing communication objectives

Useful communication tools

Launch Ocha in 95% of the tea drinking markets.

Awareness

Within 2 months reach 80% of the Advertising, teaser tea drinkers to get them to recall campaigns Ocha among the first 3 in top-ofthe-mind awareness.

Build a herbal image for the brand and get 80% of the retail outlets to start stocking at least 5 units of Ocha.

Interest

Within 4 months convince 60% tea drinkers that Ocha herbal tea has significantly a) less chemicals and b) more anti-oxidants than competitive tea brands available in the market.

Competitive advertising, informative and image-building advertising, retail advertising, publicity

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Capture 5% market share for the brand.

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Desire

Within 6 months get 50% of the tea drinkers to develop positive feelings for Ocha, and 30% to prefer Ocha versus other teas for regular drinking by highlighting its benefits for the price paid.

Image and priceoriented advertising, testimonials

Action

Within 8 months get 20% tea drinkers to try Ocha, and within a year get 5% to start using it regularly.

Sampling, coupons, POP material, price offers, retail advertising, informative and interactive website

It can be seen from the table that marketing objectives can be transformed into promotional objectives as a product moves through its life cycle. The AIDA model demonstrates that communication-related objectives gradually transform into sales-related objectives as consumers move through the response hierarchy. In the initial period, advertising and promotion only work to generate awareness and build a brand image, on the basis of which sales result. Each successive stage is harder to achieve than the former and dropouts occur as consumers move towards purchase. Marketing communication managers have to use their judgement and industry experience in determining the percentage levels of awareness, interest, preference, trial, etc. required for achieving the respective marketing objective. With experience, it is possible to convert marketing objectives into promotional objectives that can be executed by the marketing communications team. For instance, if the marketing objective is to increase sales by 10%, marketing communication objectives, based on marketing and IMC research, can be the following: ∑ Convince consumers that herbal tea is not bad tasting by generating brand trials. ∑ Show the linkage of anti-oxidants with good health and increase the number of consumers in the target market who associate Ocha with anti-oxidants. ∑ Clear the misconception that Ocha is expensive by giving price information. making a campaign successful, as indicated in the example below. The DAGMAR approach, popularly used in advertising planning and discussed in the next section, emphasizes on setting communicationrelated objectives for advertising.

CASE IN POINT Henko sets communication objectives to achieve results Henko Stain Champion Powder (HSCP) was launched in South India as a premium brand that was directly pitched against HUL’s Surf Wash Booster (today’s Surf Multi-Action The marketing objective set for the brand was: To achieve average tonnage of 650 tons/ month by May 2001 and 850 tons/month by Jan 2002 and to increase the segment HSCP was to get the consumer shake off inertia in trying out this new brand, especially given that they were using Surf more out of habit than out of conviction regarding the brand’s performance. In view of this, the communication objective was set to create dissonance in the Surf consumer’s mind

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by positioning HSCP as a better option as compared to Surf, which she has been using more out of habit. group 25-40 years, in SEC A, B, and C households, residing in metros and mini-metros, and currently using Surf. The communication strategy was based on the insight that today’s generation of young women want more contemporary solutions for traditional problems. The television commercial emphasized that the new detergent technology that was the choice of the young, savvy woman was so powerful that her mother also converted to it. There was an implied reference to Surf as old technology. The media strategy was focused on addressing Surf users’ media habits through their choice of channels and programmes. As a result of the campaign, the brand touched volumes 4

18.3 THE DAGMAR APPROACH TO SETTING OBJECTIVES AND MEASURING ADVERTISING EFFECTIVENESS5 (DAGMAR) is a model devised by Russell H. Colley in 1961 in which advertising objectives can be set in a way that the results of an ad campaign can be measured and quantitatively monitored. The key premise of the report is that advertising’s action. Hence, communication-related objectives are the valid basis for setting advertising goals, and it is against these objectives that the effectiveness of advertising should be measured. Colley has proposed that all commercial communication aimed at the ultimate objective of a sale should move a prospect through four levels of understanding: 1. Awareness: The prospect must be aware of the existence of the brand or company. 2. Comprehension: The prospect must understand what the product is and what it will do for him. 3. Conviction: The prospect must develop a mental disposition to buy the product. 4. Action: The prospect must stir himself into action, i.e. buy the product. Colley proposed that the communication-related goals for advertising should also be based on the above hierarchical model outlining the communication process. He argued that unlike marketing goals, which are almost exclusively concerned with achieving a desired action, the effectiveness of advertising should be judged based on the extent to which it moves the consumer upward on the hierarchy rather than solely on its ability to generate sales. This framework allowed marketing communication managers to analyze the long-term effects of advertising more strategically. While the four-step hierarchical model was proposed by Colley to outline the communications response and in leading to the ultimate objective of generating sales. In addition to proposing the communication hierarchy, which is similar to the hierarchical models of advertising effects, Colley also set standards for what can be termed as a good objective. According to Colley, objectives should have the following features:

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Concrete and measurable communication tasks: Colley proposed that communication objectives should precisely state the task to be achieved. For instance, clear misconception regarding price among non-users, get top-of-the-mind awareness in the top 3 slot, develop conviction among target audience that brand A has ingredient Y, etc. are precise or concrete tasks. An emphasis on movement advertising objectives, and to effectively measure progress towards them. For instance, the users of fairness soap were happy with its performance, but were unclear about its unique breakthrough ingredient Natural Oxy-G and how it worked. Non-users were still wary of the product being able to deliver on the promise of blemish-free fairness. To address this issue, the communication To explain the Natural Oxy-G process in a convincing and appealing manner.’6 The DAGMAR approach also requires that the objectives should be measurable and it should be possible to specify the measurement procedure. For instance, if the ad message communicates that brand X is the best on attribute Q, then a questionnaire may include the request, “rank the following brands on best Q attribute.” Measurement can be done by quantifying responses to mean percentage of audience who rated brand X as the best on attribute Q. When Kinetic Style was launched, its communication objective was to communicate its functional superiority with regards to space and power by pitching it against TVS Scooty. In order to measure its image perceptions post the campaign, the IMRB research ∑ Kinetic Style is more powerful and spacious than other scooterettes ∑ Kinetic Style can seat two people comfortably unlike other scooterettes ∑ Kinetic Style is a scooterette ‘Made for Two’7

communication based on the situation analysis for the product. If the target audience is not well Horlicks example in section 1. The characteristics. For example, users of a product may be further categorized as heavy, medium or light users. For instance, in the above example of audience as follows to explain the Natural Oxy-G process of its soap in a convincing and appealing manner:8 Users of beauty creams and soaps and fairness products. Young girls in the age group of 18+, who currently use products to enhance their complexion, are the main target. They are very rational in their choice of products and would try new products only if they are completely convinced about them. Similarly, the target audience for follows.9 ∑ Corporate Executive ∑ Self-Employed ∑ Businessman

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They were current Esteem/Cielo/B-segment owners, successful, male, 30+ and very focused about climbing upwards and pushing the envelope to its limit. To be in control or on top of things was a pre-requisite for them. Colley proposed that objectives should be based on a knowledge of the current status of response variables such as awareness, liking, attitude, purchase intention, etc. For instance, if it is known that currently only 10% of the prospects are aware about the presence of ingredient Y in brand A, it may be decided to increase this awareness level to 70%, which may be the required awareness level for a desired sales goal. If on the other hand, 70% or more prospects are already aware, the ad campaign need not focus on generating awareness. Thums Up knew that the preference for its drink over Pepsi was low in the 12-29 year age group, with only 53.9% of the contribution coming from this segment in 2001. After its campaign with the tagline ‘Grow up to Thums Up’ this contribution increased to 61%.10 Thus, based on the knowledge of current status, the degree of change required can be determined. The help of marketing research can be taken to determine existing levels of response hierarchy. Knowledge of current status is also useful in judging the effectiveness of campaigns, as indicated by the example in Table 18.3. In an absolute comparison of campaigns A & B for a product, campaign B appears more effective. However, when results are compared with pre-campaign levels, the interpretation might be different. TABLE 18.3

Comparison of two campaigns to determine effectiveness Pre-campaign awareness level

Post-campaign awareness level

Campaign A

10%

70%

Campaign B

65%

75%

In the case of new products, the current status of response variables is considered to be almost zero. Hence, preliminary research is not required. Pre-determined time period: Objectives should clearly specify the time period in which the results are to be achieved. Gaining 50% awareness in a year is not the same as gaining it in 2 months. Campaigns that keep on running endlessly till results are achieved are a drain on the company’s resources. Timings for most campaigns run from a few months to a year based on the communication consumers up through the response hierarchy. Hence, the time period required for achieving 90% awareness may be shorter than for achieving 10% sales. The DAGMAR approach has been successful in presenting the case for communications-related objectives as opposed to sales-related objectives. The criteria laid down by Colley for a good objective have also made it easier to measure the effectiveness of campaigns. However, the following limitations of and arguments against the approach have hampered its whole-hearted acceptance by everyone in ∑ No consideration for atypical response hierarchies: As we saw in Chapter 4, consumers do not always go through the awareness-comprehension-conviction-action hierarchy, and alternative response models do exist. However, DAGMAR MOD II does acknowledge this fact and proposes to identify the sequence of decision-making steps applicable in a given situation.11

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Although this is one of the favourite accusations of those in favour of sales-related objectives, it is baseless because Colley does recognize purchase action as an eventual goal of communication. ∑ It is argued that researching the current level of response variables is neither easy nor inexpensive. Disagreements over research method, measure, criteria, etc. are likely. For instance, to measure awareness, should brand recognition or top-of-the-mind awareness be considered? Should it be measured through a survey or through a quiz? Due to the practicalities, cost and time involved, it is argued that DAGMAR is meant only for large companies with deep pockets. ∑ Inhibits creativity: Critics argue that there is an over reliance on quantitative measures for judging variables such as brand name recall, conviction, etc. This diverts the attention of creative personnel from making a creative campaign to “passing the numbers test.” ∑

18.4 BUDGETING FOR MARKETING COMMUNICATION As we discussed in the IMC plan in Chapter 1, after setting its IMC objectives, a company has to estimate how much it is willing to spend on the promotional program. Although in an ideal situation, budget should be determined by the objectives laid out for the communication function, in constraining situations, often it is the budget, which leads to revising a company’s objectives. top management, in a bid to save costs. Maximizing the effectiveness of the promotional spending of a company is hence of prime importance, especially in times of spiraling media costs, increasing competition, consumer apathy towards promotions, and increased pressures on communication productivity. Budgets for a promotional programme are based on several internal and external issues and there are various methods to estimate and arrive at the budget. The allocation of IMC budget amongst various communication tools is also a key budgeting issue. A problem often encountered in budgeting practices is that the budgeting decision tends to become routine and institutionalized, and a standard operating procedure or rule develops based on how the decision was made last time. Especially when performance results are slow to come or unclear, an organization is likely to repeat decisions simply because it has made them before, and simple, easy-to-apply rules-of-thumb take the place of careful analysis.12 However, the good news is that most companies do not use these rules-of-thumb exclusively but use more than one approach to evaluate general levels of spending. Companies often have differing views regarding the treatment of IMC budgets. There are those that view marketing communication as a short-term expense. Budgets are set for a year, reviewed at year-end, and fresh allocations made the year after. In such a scenario where the communication

in adverse market conditions, in spite of evidence that promotional spending in lean conditions may help reverse the trend. On the other hand, in the integrated approach to budgeting, IMC appropriation is viewed as a long-term investment that pays off for many years. This approach recognizes that communication may take time to perform and does not expect immediate sales-related results on

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the basis of one ad. Campaigns have many sub-goals (usually based on communication-related objectives) that may be reviewed intermittently, and sales-related performance pressures are not immediate.

18.5 ARRIVING AT THE MARKETING COMMUNICATION BUDGET To spend or not to spend on promotion? What is the right amount to spend on a campaign or in a year? Companies infatuated with competition may invest irrationally bleeding the resources dry, which could, otherwise, have been utilized effectively. Overspending hence leads to a waste of resources but underspending too can lead to opportunity loss. Nonetheless, advertising budgets alone range from a lakh of rupees to even a crore and more, as illustrated by the Box below.

budgets are becoming the order of the day. According to recent estimates, some of Nakshatra diamond jewellery Pepsi’s ‘Bubbly’ commercial at Rs. 1.8 to 2 crore, and Bajaj Discover’s commercial at Rs. 1.6 crore, among a horde of other celebrity-led ads. Even internationally, budgets can be sky high like that of an expensive television campaign showing George Bush consoling a teenager whose mother had died in the 9/11 attack, which carried an exorbitant price tag of $14.2 million. Most of the times television ad budget is a function of the script. With graphic-centric ideas, the larger share of the money goes towards graphic creation, editing and other post-production work. Model-centric ads can end up costing a lot if hefty payouts are made to celebrities. However, the saving grace is that in most cases long-term contracts are negotiated with celebrities and their payment is not tied to a particular contract. However, ads don’t have to be ostentatious to make a mark. Ads with a strong executable idea, impact and creative execution can also be well remembered.

While the process of budget setting is not an exact science, there are ways and means of determining how much to spend on communicating about one’s products. And while there is no single best way to arriving at the budget, theoretical approaches to budgeting, situational factors, as well as methods to determine budgets serve as a useful guide.

18.5.1 Theoretical Approaches to Budget Setting budget decisions:14 1. Economies of scale: Is there some relevant range in which increments of advertising yield increasing returns? 2. Threshold effects: Is there some minimum level of exposure that must be exceeded for advertising to have a discernible effect?

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3. Interaction effects: Does advertising interact with each element of the marketing mix, especially personal selling, to produce effects that are greater than the sum of their separate effects? The answers to two of these questions can be found in the conceptual framework of the models discussed below. The logical process of arriving at the communication budget is inspired by the marginal analysis rooted in economics, and the relationship of communication expenditure with sales, with the latter taken as a function of the former. Most budgeting methods are based on one of these two concepts.

18.5.1.1 Marginal Analysis Marginal or incremental analysis is a concept of economics, widely used in business decision-making to allocate scarce resources such as IMC budgets, in order to maximize output produced, such as sales. Marginal analysis focuses on studying whether the communication budget should be increased by one Figure 18.1 as promotion expenditures which is the difference between gross margin and advertising or promotion expense, is maximum when marginal revenue is equal to the marginal cost (point A*). is the increase in gross revenue by the addition of one more unit of promotional expenditure, whereas cost is the increase in total cost with the addition of one more unit of promotional expenditure. When marginal revenue is higher than marginal costs, there is a scope for increasing promotional marginal revenues, promotional expenditure should be reduced. FIGURE 18.1

Marginal analysis. Sales ($) f (A) = Sales

A = Advertising/promotions expenditures Mf (A) = Gross margin

Fixed cost of advertising

A Advertising/ promotions ($) P = Mf (A) – A = Profit

While the analysis is perfectly logical, it suffers from the following limitations: ∑ As we discussed in the chapter earlier, communication has a delayed and indirect impact on sales, after affecting other variables such

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as awareness, conviction, purchase intention, etc. Also, the measurement of the impact of communication on sales is a nearly impossible task. Thus, it might be better to measure the impact of advertising and promotions on the other communication-related variables than on sales. ∑ As we also discussed earlier, sales are affected by other marketing mix elements besides promotions as well as various external factors. To tag their movement solely based on the communication budget is hence misleading. ∑ Estimating the exact rate at which function may differ from product to product. Because of these limitations, the use of marginal analysis is not popular in budget determination. However, a conceptual understanding of the model helps in comprehending how communication expenditure and its results are related, and in determining how budgeting can be planned.

18.5.1.2 Sales Response Models Most communication managers believe that sales and promotions are related in one of the following two manners: ∑ The concave-downward function: As shown in Figure 18.2a, as the amount of advertising and promotion increases, sales increases at a decreasing rate up to a certain point. In other words, each additional promotional rupee brings in lesser and lesser sales. This model is based on the principle of the law of diminishing returns in economics. The reason for sales following the concave-downward curve pattern is that when the initial communication expense is made, the most lucrative prospects and heavy users buy the product. The task of impact on the total sales. The model suggests that the highest response rate occurs after the closest to the purchase decision. ∑ The S-shaped response function: As shown in Figure 18.2b, the S-shaped curve is characterized by a slow start, followed by steep growth, and then a plateau. Initial advertising and promotion expenditure has little impact on sales in range A. In range B, additional communication expenditure brings in increased sales, up to a point. Again in range C, the Share-of-voice is the advertising weight of a brand/company as a percentage of the advertising weight of a rate and then at a diminishing rate. The optimum level of expenditure is at the point in range B where marginal revenue and marginal cost are equal. Money spent in range C does not have much noticeable impact on sales as the product may have already reached its market potential. These models also suffer from the same limitations as does the marginal analysis. However, they also further the theoretical understanding of the relationship between communication expenditure and its result variables. Also, a number of studies undertaken to understand the relationship of

Chapter 18 FIGURE 18.2 (a-b)

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Advertising sales/response functions. B. The S-Shaped Response Function

Incremental sales

Incremental sales

A. The Concave-Downward Response Curve

Range A Advertising expenditures

Range B

Range C

Advertising expenditures

advertising and sales give support to these curves. In a landmark 1995 study, John Philip Jones used single-source research to measure the short-term effects of advertising on sales. The study tracked both media exposure and purchases of a single sample. Jones measured each household’s reception household shortly after the advertising. The analysis concluded that one exposure generates the validating the concave downward advertising response model.15 The model’s practical application was of consumers who are ready to buy.16 The S-shaped response function has also been observed in real life, wherein it has been demonstrated that a minimum amount of communication expenditure needs to be incurred for a noticeable impact on sales.17 In other words, it suggests that advertising must reach a threshold level before it becomes effective. This was typically expressed by setting a communication goal of achieving 3+ frequency for advertising, which is deemed to be effective.

18.5.2 Factors Influencing Budget Setting Various factors have to be considered while setting the budget. Here are a few examples: a. Product: Various factors related to the product such as the product type, stage in the product life cycle, complexity of features, brand differentiation, etc. affect the need for promotion. For instance, a newly introduced product needs a larger budget to create awareness and generate trial. When ClickJobs.com, a rapidly growing premium job portal wanted to aggressively strengthen its brand equity among job seekers and employer community, it launched an ad months of the campaign. The ad campaign, which started with a teaser campaign, aired on television channels like CNN IBN, Head Lines Today, etc.18 On the other hand, reminder advertising for mature brands usually comes at a cheaper cost. Similarly, if the product is very complex it needs more explanation and frequent exposure. With the increase in frequency, expenditure increases as well. Also, products with both, little

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or more differentiation, can call for heavy advertising. If a product is a near commodity, it needs to advertise more if it wants to establish a distinct image. For example, Captain Cook salt established itself as the premium salt brand and differentiated itself from Tata salt through heavy advertising. The advertising helped in building an image and permitted it to charge Rs. 3/kg of salt; double of what Tata was priced at. On the other hand, if a product has differences. b. Competition: Needless to say, the larger the number of competitors and the stronger the competition, the more a brand has to spend to make even a small noise. Also, many companies determine their budgets based on what the competition is spending.

of 17%.19 battle with rival Procter & Gamble on claims and counter-claims about how its detergent 20

c. Market share: Advertisers’ investments in any category can be described with a statistical regression known as the (AIC). It states that small brands must over-advertise with their share-of-voice exceeding their share-of-market, whereas large brands can afford to under-advertise with their share-of-voice below their share-of-market. these limits will invariably lead to a loss in market share. A number of individual differences exist for different product categories, and external factors such as the use of promotions, in the individual markets. This can be validated based on a study of 1096 international brands by John Philip Jones in 1989. The results of the study are shown in Table 18.4 and Figure 18.3. It can be seen, for example, that if a brand has an 8% market share, it has to overspend by about 2%, whereas if it has 23% market share, it can get away by underspending by about 3%.21 TABLE 18.4

The advertising intensiveness relationship

Share of Market (SoM)(%) 1-3 4-6 7-9 10-12 13-15 16-18 19-21 22-24 25-27 28-30 Source: Buck, 2001, after Jones, 1992.

SoV-SoM (percentage points) +5 +4 +2 +4 +1 +2 0 –3 –5 –5

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FIGURE 18.3

Source: J.P. Jones: “Ad Spending: Maintaining Market Share, Harvard Business Review, January-February 1990, p. 41.

d. Market situation: its budget. For instance, budget requirements for a soft drink market are higher than that for a tyre market. Characteristics of the consumers as well as factors such as their attitudes

spending on communication, with budgets taking a dip during economic downturns. This is

The slowdown in 2001 after the events of 9/11 and the dotcom bust saw many Indian companies cutting their advertising and promotion budgets. For instance, IT product

cut by 50-60% during the year after. Similarly, although the e-business company Oracle had been in the process of repositioning itself, which generally calls for an extensive Even the consumer durables brand LG’s 1.5% of sales in 2001. Further, a lot of IT companies’ promotional and advertising budgets came out of their and regional headquarters squeezing budgets, the direct local spending also took a 22

FMCG companies are tightening their purse strings by controlling advertising spends and other marketing expenses to maintain their margins, as high raw material prices

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continue to pose a serious challenge. According to a report by Standard Chartered Equity Research on the Indian consumer sector, the FMCG segment maintained margins at 15.8% in 2010-11, despite rising raw material costs, by controlling ad spends and cutting margin, but operating margin was steady on the back of cut in ad spend and better operating leverage. Ad spend by several companies was down by 200 basis points in 2010-11.

e. Distribution system: Longer channels increase the number of consumers that a company has to reach through communication. For instance, FMCG products have to communicate to stockists, wholesalers and retailers, besides end-users. Hence, their communication budgets are larger than those of direct marketers who can eliminate communication costs for distribution channels. f. Sales decay rate: This is the rate at which consumers can forget a product or its advertising. with a clutter of competitive products, its sales decay rate is high and so is the need for advertising. g. Unexploited sales potential: We saw in the marginal analysis that an opportunity to tap Higher the available sales potential, higher the need for advertising to tap it. Pioneer brands tend to advertise heavily as they want to capture as much of the market share as they can before their rivals follow suit. According to a report by the industry chamber Assocham, FMCG companies hiked their advertising and promotional budget by 60% in 2011 to perk up demand and shore up revenues during the festive season of Diwali. Despite a slowdown new products during the festival season and back their marketing plans with aggressive advertising, discount offers and brand promotion, which is why they raised their a budget.24 These and many such environmental factors affect decisions regarding the amount to expend on advertising and promotion. Many marketers have built a number of advertising expenditure models that take these factors into account. Yet, the riders with using such statistical models are that a) the numerical values that should be attested to the independent variables, although sophisticated computer software using various statistical methods and mathematical models are now available to estimate functions, and b) many of the factors are purely judgemental.

18.5.3 Methods to Determine Budgets While the theoretical approaches and factors affecting budget decisions give an estimate regarding the size of the budget, the question deciding the exact amount to spend on communication still remains. method to crosscheck if their budgetary allocations are appropriate. While determining the IMC budget through any of the below-mentioned or other methods, an important decision that companies face is how much weightage promotion should receive vis-à-vis

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other product, price and distribution improvement strategies. Hence, communication budget is always a subset of the total marketing budget, which is arrived at in accordance with the overall marketing strategy. Among the methods discussed below, some of the methods are judgment oriented whereas others are data-oriented. Prominent judgment oriented methods are arbitrary method, affordable method, percentage of sales method, and unit of sales method. Prominent data-oriented methods are competitive parity method, objective-and-task method, and payout planning method.

18.5.3.1 Predetermined Budgetary Methods Predetermined budgetary methods are based on industry traditions and judgements, with no deepof affairs hand over budgets to the marketing communication manager without much input from the middle or operational levels. Following are some of the commonly used methods.

18.5.3.2 Affordable or All-You-Can-Afford Method promoting a brand. The company allocates money to marketing communication after all its other expenses are taken care of. Sometimes even large companies are seen adopting this method, especially in case of new or category-creator products, for which companies are not sure about the right amount to spend. Also, when managers want to tread on the side of caution, they may follow this method thinking that since company’s affordability is never exceeded, communication budgets would never get environmental factors. There are problems or over or under spending, and communication objectives

18.5.3.3 Percentage of Sales Method year, succeeding year, or average of few years. For instance, if average sales of the past 3 years are Rs. 50 lakhs, a company might take 7% of that average and allocate Rs. 3.5 lakhs to marketing communication. Table 18.5 shows the advertising spends of prominent FMCG companies as a TABLE 18.5

Seeking more mindshare Adspend in Rs. cr

Hindustan Lever

Apr-Jun '05

Apr-Jun '04

Adspend as % of sales Apr-Jun '05

Apr-Jun '04

286.6

258.6

10.1

9.9

Colgate Palmolive India

45.6

38.9

17.7

16.1

Dabur India

52.0

43.0

12.5

12.5

Godrej Consumer

12.2

10.0

7.4

7.4

Glaxosmithkline Consumer

31.5

22.4

12.9

10.7

Gillette India

16.9

10.7

15.1

10.7

9.4

1.0

11.2

3.9

29.1

24.3

10.7

9.9

Lotte India Marico Industries

Source: Aarati Krishnan, “FMCG cos’ ad budget goes up,” The Hindu Business Line, August 1, 2005, www.thehindubusinessline.com.

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an increase in sales volumes after a long lull, and new product launches planned for the quarter. For instance, Gillette India, which spent 10.7% of its sales on advertising and promotion in the April-June quarter in 2004, spent 15.1% in the same quarter of 2005.25 An advantage of this method is that communication expenditure is closely related to the movement of organizational sales and is always what a company can comfortably afford. Also, the method is simple as past sales are easily available and anticipated sales can be calculated using standard forecasting methods. communication is a result of sales, whereas in practice, it is a cause of sales. Here communication is treated as an expense rather than an investment, ignoring the fact that heavy advertising and promotion can generate greater sales revenues and vice versa. Also, this method does not consider that spending in ranges A and C of the S-shaped curve is wasteful. It leads to an appropriation based on the availability of funds rather than on the problems and opportunities. This can be a costly error as there are chances of underspending when the sales opportunities are high and overspending when the promise is low. For instance, newer and younger products with lower sales or no sales history but superior growth opportunities would languish if this method were used. Also, no long-term advertising planning and budgeting can be done as every year budget would be at the mercy of sales. Even the percentage chosen for arriving at the budget may not be the most logical one but could be determined by what has been done in the past or by what competitors spend.

18.5.3.4 Unit of Sales Method This method is a variation of the percentage of sales method. Here, instead of taking a predetermined sold, either in the past or in the future. For instance, it might be decided to allocate Rs. 10 per unit pros and cons of this method are the same as that of the percentage of sales method.

18.5.3.5 Industry Standards or Competitive Parity Method Many marketing communication managers match the industry average or spend what their competitors do, either absolutely in rupee terms or relatively on the basis of percentage of sales or market-share. For instance, if the industry average for annual communication expenditure for air-conditioners is 2.5%, air-conditioner brand A may also allocate 2.5% of its sales revenue. This method is advantageous because it creates parity with competition and ensures that a company is not far off from what its competitors are doing. Proponents of this method argue that competitors’ expenditures or industry averages represent the collective wisdom of the industry and about the same, they do not try to outspend each other and raise the bars for everyone else. This method is also easy to apply as competitive information is readily available through industry and research publications, government publications, etc. However, the method also suffers from serious limitations. The situation and communication tasks

oneself about one’s own product, opportunities, objectives, problems, resource et al. Moreover,

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the method ignores the effect of creative and media strategy. A powerful campaign or one using unconventional media intelligently may be able to achieve its objectives even with a lower budget. The assumption that a competitor’s allocations are correct is also misleading. Further, keeping budgets at par with competition is no guarantee that there will be no promotional battles. The cola wars where popular brands have tried to outspend one another go to refute this belief. Finally, although intends to spend in the future are rarely available publicly. Because of its numerous limitations, few whether their budgeting strategies are in line with the rest of the industry.

18.5.3.6 Strategy-Based Budgeting Approaches Strategy-based methods are rooted in a logical analysis of the problem situation. Budgets are based from the people responsible for the execution of the strategies, accompanied by calculations and documentation outlining the budget requirement.

18.5.3.7 Objective-and-Task Method communication objectives, b) outlining the tasks required to achieve these objectives, and c) pricing these tasks to arrive at the overall outlay. The example below outlines the logical thinking and calculation that needs to be done to determine budget under this method. 1. Establish objective Create product trial among 10% of the target audience through the new ad campaign for the product. 2. Ascertain tasks required to achieve objective a. Ascertain the trial audience: Suppose the total available target market size is of 100,000 people. To create product trial among 10% of the market, the ad campaign should stir 10,000 users into action. b. Find out the percentage of people to be reached by advertising: Now, if advertising wants to generate trial among 10,000 users, it will need to reach out to many more. This is because not everybody who will see the ads will try the product. Suppose it is known through experience that the trial rate is 20%, advertising needs to reach out to at least 50,000 people, or 50% of the target market, if it wants to get 10,000 to try the product. c. Determine the advertising frequency to achieve the trial rate: Suppose the advertiser knows that the ad will have to be shown at least 5 times to every 1% of the population before it can bring about a 20% trial rate. Then the advertising frequency is set at 5. d. Arrive at the number of Gross Rating Points (GRPs) to be purchased: Since the company wants to expose 50% of the population at least 5 times to the ad, the 3. Estimate the budget by pricing the task a. Estimate the budget on the basis of the average cost of buying a GRP: Suppose it is known that the average cost of buying one exposure to one percentage of the

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target population is Rs. 11,000. This cost would be available from media planning agencies or the media houses themselves and can be averaged or proportioned for a campaign’s particular mix of media. Since one GRP costs Rs. 11,000, the ad campaign’s cost for 250 GRPs can be pegged at Rs. 27,50,000.

The advantage of the objective-and-task method is that objectives are determined well in advance and then a budget is arrived at to achieve these objectives, which is logical. More often than not, if the objectives are reasonable, the budget arrived at by this method may approximate the budget suggested by other methods. A major limitation of this method is that the determination of the tasks required to achieve the objectives and the costs of these tasks is not easy. Should trial be generated solely through advertising or through a sampling programme as well? How much reach would be required to generate 10% trial? The determination of trial rates, advertising frequency and such, calls for certain assumptions and reliance on past or competitive data. Hence, the method is only as accurate as the data or the assumptions supporting it.

18.5.3.8 Payout Planning Method Payout plan refers to an estimation of costs and revenues for a future period, usually for the next 2 to 3 years. Marketing communication managers often prepare payout plans estimating the level of expenditures that need to be made, the expected returns in terms of sales, and the time period communication managers can also estimate how much promotional expenditure will be necessary to achieve that rate of return. This budgetary technique is sometimes used in conjunction with other strategy-based techniques to assess the returns on investment in marketing communication. Table 18.6 shows a payout plan for a retail chain. It can be seen that the promotional spending is the highest in year 1 and decreases in years 2 and 3. The company loses money in years 1 and 2, breaks even sometime in year 3, and by end of year 3 earns cumulative return of 23.16% on the total investment of all 3 years. As we discussed earlier, a good brand grows in the initial years and after reaching its peak market share, becomes stable. Hence, investment in the initial period is high and declines as the brand gathers wind. For instance, a sample survey of 645 companies of India depicts that the ratio of expenditure on advertising to net sales has been progressively declining. It dipped to 1.26% in 2004-05 from 1.36% in 2003-04, 1.41% in 2002-03 and 1.50% in 2000-01. One of the prime reasons of this decline is that the corporate sector has been generating higher sales on a lesser spend on advertisement. The FMCG sector has remained the biggest spending sector with a 6% ad spend to sales ratio in 2004-05, although the ratio has declined from 6.40% in 2003-04 and 7% in 2002-03.26 TABLE 18.6

Payout Plan for a Retail Chain (All figures in Rs. crore) Year 1

Year 2

Year 3

Sales

5.05

8.50

20.00

Total operational costs

3.03

4.25

9.00

Gross profit/(loss)

2.02

4.25

11.00

Marketing communication costs

5.00

2.75

1.75

Net profit/(loss)

(2.98)

1.50

9.25

Cumulative profit/(loss)

(2.98)

(1.48)

7.77

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An advantage of this method is that it recognizes marketing communication spending as an investment and allows for a performance period after which returns can be expected. Hence, it is often used for new products where commitment is required from the top management for substantial investments in the new product, especially in the initial years even though returns may be poor or nil. Like the objective-and-task method, the success of this method also depends on the accuracy of its forecasting, i.e. how well sales and cost projections have been made. Although the payout method serves as a useful planning tool, situational factors such as competition, new technologies, factors such as poor communication strategy or lack of product advantage can affect the revenue projections. Although the experience of marketing communication managers and the use of sophisticated statistical projection tools can help increase the accuracy of the plans, continuous monitoring needs to be done to determine if the plan is on course. In the case of large companies, a contingency budget may come in handy. Quantitative Models Budgets can also be arrived at using computer simulation models involving statistical and mathematical tools and techniques such as correlation, multiple regression, conjoint analysis, etc. These models can be used to test the impact of promotional tools on variables such as sales, awareness, preference, trial rates, etc. and determine their relationship. However, these models are complex, and involve timeconsuming and expensive analysis. Moreover, they have been borrowed from other disciplines and are yet not adapted to marketing communication. Their reliability and success rate are also not proven. Because of these serious limitations, these models are not popularly used in the industry. However, research is underway to evolve better and more sophisticated budgeting models. Experimental Method When none of the logical methods described above can be comfortably used, marketing communication managers resort to the experimental approach. Test marketing at different budget levels can be done in one or more test areas, keeping other promotional strategies same, and results can be used to to determine the point of optimum returns in the S-shaped curve discussed above. A major drawback of this method is that it is time-consuming and expensive. Moreover, competition becomes aware and differences in test markets is almost impossible. Hence, results have to be appropriated for these differences.

18.6 ALLOCATING THE MARKETING COMMUNICATION BUDGET Once the total marketing communication budget for a brand has been arrived at, the next task is to allocate it amongst various promotional tools, markets and time periods. Factors such as communication objectives, company policies, total communication budget, characteristics of the target market, nature of the industry, etc. affect how the communication budget is allocated among various tools and markets. For instance, when Whisper sanitary napkins were launched in India,

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the company used advertising through mass media to gain instant awareness and door-to-door sampling to increase trial of the new product. The budget was divided half and half.27 Similarly, the pharmaceutical industry, sample budget is quite high in many pharmaceutical companies. On an average for existing product, a medical representative in India gets about 800 – 2000 units of sample per month, depending on the product range. And 60% of the companies spend more than 5% of the sales on giving samples to doctors. Similarly, because of the low product differentiation in medicines, trade schemes are also used to woo stockists and retailers. For 40% of the companies, 5% or more of the budget goes in trade schemes.28

In the dotcom heydays, a lot of software companies had allocated their communication

audiences were corporates and that they essentially functioned in a B2B environment. Hence, their investments in mass media advertising declined. While earlier, on

redirected towards more result-oriented marketing activities, which could directly back sales, like direct marketing and below-the-line marketing. In trying times, companies not easily possible with advertising. Further, in the initial years of their establishment, software companies needed to create a brand image as well as awareness about their offerings. They found advertising suitable for this. However, as the Indian IT industry evolved to higher levels of maturity and moved up the value chain, the focus shifted from creating mind share to generating actual sales, which explains in change in allocation among IMC tools.29

As mentioned in Chapter 1, the share of below-the-line (BLT) tools in IMC such as sales promotion, Figure 18.4 also indicates the growth in sales promotion activities in 2007. For instance, currently, around 32-33% of the total promotional budget allocation goes for BLT promotions, whereas it was around lent by BLT promotions, one important reason for the popularity of BLT is a reduction in the total communication spending and ergo, budgets of companies. Hence, there are brands like Barista, Starbucks, and , which devote their entire communication budgets to BLT activities.30 Allocations to various local and regional markets are based on market potential. For instance, about 46% of Coca-Cola’s investment goes into India’s southern states because the company believes that that part of market has greater potential.31 IMC budgets also need to be appropriated to various seasons, events or time periods in the course of a budget cycle, usually a year. Many companies allocate a bulk of their communication budgets to a particular event, as illustrated by the Box below.

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FIGURE 18.4 Sales Promotion Campaign increased by 6% during Jan-Sept 07 107

Growth in Sales Promotion

Type of Sales Promotion 106

106 105

Indexed Growth

104

Index: Jan-Sept 06 = 100

7%

8%

103

1% 31%

14%

102 101

100

14%

100

20%

99 Price Promotion Multiple Promotion

Add on Promotion

98 97

Exchange Promotion

Combination Promotion

Jan-Sept 06

Jan-Sept 07

Contact Promotion

Volume Promotion

Source: AdEx India (A division of TAM Media Research) Note: Figures are based on Insertions

The incidence of budget-centric advertising around the time the Finance Minister presents the Annual Budget is on the rise, as companies have found it to be a good time to reach a large segment of the educated male audience. To illustrate, advertisers had spent Rs. 12 crore more than their daily ad spend on the day Mr Jaswant Singh presented

premium goods, automobiles, travel and tourism, airlines and writing instruments, etc., which typically target educated males in metros and semi-metro areas, were heavy more in 2004 to secure television time around the Budget presentation. Similarly, many companies have found cricket series an opportune time to spend a bulk of their communication budgets, especially with the number of cricket fans increasing by the day. For instance, in 2002, Hero Honda, one of the global sponsors of the World Cup, allocated 80% of its annual marketing budget, which runs into Rs. it launched a campaign called Win-the-Cup India too spent about 60% of its advertisement and promotion budget on cricket in 2002 and planned to move it up to 70% in the future. The Bharti group also planned to spend over 40% of its ad and promotion budget in 2002 on cricket, up from 25% in 2001. Many companies feel that buying airtime on cricket is the most cost-effective way to reach to audiences due to the tremendous viewership factor.

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Summary Communication objectives serve various purposes such as shaping strategic and tactical decisions, guiding budget setting, serving as a yardstick against which campaign results can be measured, etc. Communication objectives are based on marketing objectives and can be outlined in terms of salesor communication-related effects. Although sales-related objectives are result-oriented, they may not be appropriate for promotional tasks because of the delayed and indirect impact of promotion such as creating awareness, changing attitude, etc. The DAGMAR approach emphasizes on setting communication-related objectives for advertising such that the results of an ad campaign can be measured and quantitatively monitored. Budgeting follows the setting of objectives. A shortsighted view treats communication spending as expenditure whereas in the integrated approach, IMC appropriation is viewed as a long-term investment, taking off immediate performance pressures from it. While there is no single best way to arriving at the budget, theoretical approaches to budgeting, situational factors, as well as methods to determine budgets serve as a useful guide. The logical process of arriving at the communication budget is inspired by the marginal analysis rooted in economics, and the relationship of communication expenditure with sales. Various factors such as product, market situation, market share, competition, etc. affect the size of the communication budget. Methods to determine budget are either based percentage of sales, or competitive parity method, or on the objectives that need to be achieved method, etc. Once the total marketing communication budget for a brand has been arrived at, the next task is to allocate it amongst various promotional tools, markets and time periods.

Exercise 1. In the opening vignette, what is the budget value in rupee terms for the second and third year? Odyssey? a disruption in the communication plan? Why or why not? 2. In the opening vignette, do you agree with Ms. Sheorey’s viewpoints or Mr. Dixit’s? Why? 3. In what situations does an incompatibility arise between marketing and communication objectives? How can it be resolved? 4. What is DAGMAR? How is it useful in establishing objectives? 5. What is the relevance of theoretical approaches such as marginal analysis and sales response models in budget setting? Do you see a practical application of these concepts in the industry?

Suggested Class Projects 1. Visit 2-3 large companies located in your city. Find out what methods they use for setting their

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weak do you think is the impact of their promotion on sales? Why? 3. Provide examples of products that might follow the different sales response curves discussed in the chapter.

Critical Thinking Questions think that setting measurable objectives is always possible? Why or why not? 2. The treatment of communication expenditure as an investment has an adverse impact on the

Endnotes 1. Syeedun Nisa, “Brand: Managing and Developing Equity,” (Vol-2), e-Journal of Punjab College of Technical Education, www.pcte.edu.in www.agencyfaqs.com 3. Prof. Fleming Hansen and Lars Bech Chrisensen, “Long-term Advertising Effects and Optimal Budgeting,” Research Paper, Copenhagen Business School, 2004. 4. www.mudra.com 5. Russell H. Colley, (New York: Association of National Advertisers, 1961). 6. www.mudra.com www.agencyfaqs.com 8. www.mudra.com 9. www.mudra.com www.agencyfaqs.com 11. Aaker and Myers, 12. March, Sproull, and Tatnuz, 1989 13. “The Bigger Picture”, Brand Equity, The Economic Times, April 20, 2005 14. Charles Raymond, (New York: Association of National Advertisers, 1976) 15. John Philip Jones, (New York: Simon &. Schuster-Lexington, 1995) 16. Erwin Ephron, “Recency planning,” , Vol. 37, 1997 17. Paul B. Luchsinger, Vernan S. Mullen, and Paul T. Jannuzzo, “How many advertising dollars are enough?” 12 (1977), p. 59. 18. “ClickJobs.com launches ‘Happy Kumar’ Ad Campaign - Allocating Media Budget of 7 Crore,” January 22, 2007, www.IndiaPRwire.com 19. “HUL net down 2% to Rs 638 crore,” The Times of India, Jan 26, 2011 The Financial Express, Dec. 8, 2011 21. Prof. Fleming Hansen and Lars Bech Chrisensen, “Long-term Advertising Effects and Optimal Budgeting,” Research Paper, Copenhagen Business School, 2004. 22. “Focused ad spend set to rise as slowdown goes on,” Express Computer, December 17, 2001, www. exchange4media.com Business Standard, June 20, 2011 Business Standard, Sep 21, 2011

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25. Aarati Krishnan, “FMCG cos’ ad budget goes up,” The Hindu Business Line, August 1, 2005, www. thehindubusinessline.com 26. “More bang for the ad buck,” Business Standard, August 22, 2005, www.exchange4media.com 27. “3rd Panel Discussion: Is below-the-line a serious threat to mass media?,” Conclave 2003, www. exchange4media.com 28. R K Srivastava, “Benchmarking promotion budget,” Express Pharma Pulse, June 20, 2002, www. expresspharmaonline.com 29. “Focused ad spend set to rise as slowdown goes on,” Express Computer, December 17, 2001, www. exchange4media.com 30. “3rd Panel Discussion: Is below-the-line a serious threat to mass media?,” Conclave 2003, www. exchange4media.com 31. Ashok Dasgupta, Ratna Bhushan, “Long-term prospects in India are good,” The Hindu Business Line, January 1, 2003, www.thehindubusinessline.com 32. Nirmal Menon, “Media rakes it in with Budget day ad spend,” July 9, 2004, www.thehindubusinessline. com 33. Mohini Bhatnagar, “Cashing in on cricket news,” December 21, 2002, www.domain-b.com

Chapter 19 Measuring IMC Performance Chapter Objectives After reading this chapter, you will be able to: Understand the role and importance of evaluative research in communication. Answer questions related to what should be measured in communication, when, where and how. Learn about the various tools and techniques available to measure advertising and other promotional tools. Recognize the limitations of evaluative research and the work done to improve their

Half the money I spend on advertising is wasted; the trouble is, I don’t know which half. John Wanamaker, father of modern advertising

In Perspective

- Scott Bedbury, engineer of Nike and Starbucks campaigns

Coney Measures Communication Performance Through Research

Coney Ice Cream Company was determined to not make the same mistake twice. In the previous year a campaign for its Connetto range of ice creams had to be pulled back amidst much public furor. A visual in its television commercial showing the close up of a girl in a red bikini licking her lips after eating Connetto, was found offensive by many consumers. Also the voiceover “Whatcha got on your stick?” referring to the message imprinted on the ice cream stick was considered to have a sexual innuendo by the public. A focus group discussion regarding the campaign revealed that consumers of ice creams were mainly families that consumed them for fun and taste.

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Taking a cue from this insight, Connetto’s next commercial used pleasant appeal, as A pretest of the commercial through consumer interviews indicated that the celebrity’s endorsement of Connetto would augur well on the brand and his popularity and appeal would rub off on the brand too. To be doubly sure, Connetto performed ballot paper tests to test for consumers’ favourable or unfavourable reactions. Only after the commercial received a clean chit was it cleared for launch. A galvanic skin response test was also done, which indicated that the shots with the celebrity generated the highest degree of excitement among 85% of the consumers. Based on this feedback, the agency replaced two location shots with two shots of the ice cream being appreciated and eaten by the celebrity. One week after the campaign was launched, the company conducted further interviews of 500 consumers to test attitudes using rating, ranking and openended questions. In addition to attitudes, the company also tested measures such as ad recognition and recall, all of which yielded positive results. Most importantly, 59% consumers seemed to have remembered the prime sales point that Connetto ice cream is “total dhamaal.” Further, it was also found that the brand’s sales increased by 20% ten weeks after the commercial was released. Research tagged this increase to consumer attitude reversal and the brand’s association with the popular celebrity, as all other factors such as competitive activity and other marketing strategies remained largely unchanged. Thanks to the new campaign, the company also got outstanding coverage in a prominent English daily that described the brand as “masti that melts in the mouth.”

The opening vignette illustrates the importance of research in measuring the effectiveness of communication. A pretesting of Connetto’s new campaign ensured that it did not bomb in the company’s face. Post-testing also indicated that the use of a popular celebrity and an emphasis on of evaluative research, outlines tools and techniques to measure communication, and also cautions when results need to be interpreted with a pinch of salt.

19.1 MEASURING COMMUNICATION EFFECTIVENESS If you ask a communication manager about how his campaign is faring and get answers like, “All our people like it very much” or “It’s a bit early to tell, but we think it’s going to be very successful,” you should know that the answers are lame. The truth is that if communication managers are spending a fortune on promotion, they should be able to tell with a reasonable degree of accuracy what their campaigns are doing for them, or they shouldn’t be spending the money at all. That is why communication managers often need to set measurable parameters in their promotion objectives. Determining whether they are meeting their objectives or not is one of the most complex promotional problems faced by communication managers; we will discover in this chapter. Yet and still, it is a necessary evil that provides feedback to managers on various issues – whether the money they are

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spending is generating enough returns, whether consumers comprehend their messages, whether consumers act the way managers want them to, etc. You will recall that in Chapter 6 on advertising research, we discussed about the research process as a foundation on the basis of which advertising campaigns are created. In this chapter, we will focus on research as a means of evaluating the effectiveness of advertising and communication campaigns. While some of the tools and techniques used for both kinds of research may be the same, the objectives underlying both are different. While research used in the planning stage guides in framing advertising strategies, evaluative research helps assess the effects of those strategies. Although evaluative research can take place at various times throughout the marketing communication process, it is conducted for the prime purpose of assessing the effects of various strategies. While we will primarily focus on advertising research, since most of the evaluative work has been done in that communication tools.

remaining questions.

19.1.1 Should We Test? Testing the effectiveness of communication has several advantages. Firstly, with the cost of advertising

alternatives (such as alternative messages, IMC tools, media and vehicles, etc.) and choose the most effective ones. It can provide feedback regarding the performance of various strategic alternatives and provide a basis for future planning. For instance, the media agency Mindshare realized through research that alternative media can sometimes give much better results than conventional media, in spite of spending less on the former. For promoting the brand Kelloggs, Mindshare wanted to the brand would have cost the equivalent of at least half a million dollars. On the contrary, it spent the equivalent of $100,000 for being associated with the ATP Chennai Open. It did activities like offering product samples to kids, having the brand mascot meet the kids, etc. The activities were very well received and the Kelloggs mascot became more popular than the tournament mascot.1 Thirdly, evaluation increases the effectiveness of marketing communication by eliminating unproductive alternatives and/or adding productive alternatives. For instance, a study conducted by Millward Brown International from October 1999 to April 2000 in UK revealed that if 10% awareness increases on an average by 15%. While radio was 3/5th as effective as television, it was 1/7th (Figure 19.1).2 Also, studying the history of communication failures may generate some insight into the reason for those failures that may increase the opportunity for future success. As the old saying goes, “Those who do not study history are condemned to repeat it.”

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FIGURE 19.1

Calculation of the radio multiplier effect by Millward Brown International.

Calculation of the radio multiplier effect ORIGINAL TV-ONLY CAMPAIGN TV GRPs

267

TV Awareness Index

X

5

Total Awareness Score

=

1335

REVISED CAMPAIGN -10% of TV re-deployed to radio TV Component 10% less TV GRPs

240

TV Awareness Index

X

TV Awareness Score

5

=

1200

Radio Component 7 ¥ GRPs (cost factor)

189

Radio Awareness Index

X

3

Radio record down to take Radio Awareness account of audience coverage Score

X

0.6

=

340

Total Awareness Score

1540 Increase = 15.4 %

Poor research and half-baked communication were the cause of the demise of Savlon antiseptic liquid and soap in the consumer market. In the laboratory, Savlon had proved more effective against germs than Dettol. Hence, Savlon was launched in the household market in direct confrontation with Dettol. The campaign boasted, “The other antiseptic (Dettol) kills only the gram-positive germs while Savlon kills both grampositive and gram-negative germs”. Unfortunately, the advertiser did not realize that semi-clinical messages are not comprehensible by housewives. Also, they advertised that Savlon does not sting unlike other antiseptics nor does it have any conspicuous smell. The company also did not realize that Dettol’s stinging property, obtrusive smell and discolouring when mixed with water, were the very characteristics that made a consumer feel that the antiseptic was working. Thanks to poor research, Savlon failed miserably.3

Further, evaluative research helps ascertain if communication objectives are achieved. The product Search RePlay, launched by Komli Media, combines online search with display advertising to track Internet users who click on an advertiser’s search ad but do not convert into sales. It then follows up with such users to drive greater ROI for advertiser spends. Online travel booking portal Makemytrip.com utilized Search RePlay

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over a month and saw its conversion percentage rise six times over a standard display advertising campaign, through a period of 30 days. Click-through search with the help of Search RePlay increased by seven times, while the click-to-conversion ratio increased to 2.5% from 0.4% earlier. In effect, the evaluative tool helps measure if communication sales.4

assessing the effectiveness of communication is not easy. Firstly, extensive resources in terms of time and money are involved. Evaluation can take a long time, which may even delay its launch. Many

A second argument cited for not testing communication is that it is not easy to choose the best managers are also likely to get an understanding of which methods work for their products and under which situations. A third reason cited against evaluation is that testing instruments may not be adequate or proper, and that the interpretation of the results is often questionable. For instance, recall could be as a result of controversy created in the media regarding the product, and not because are often capable of accounting for such environmental factors.

subjected to the test of effectiveness, the proof called for is usually short-term. On the other hand, many communication tools such as advertising, public relations, etc. generate consequences such as brand equity or recall that have effects in the long-term period. Often the goodwill created through markets for positive responses to subsequent selling efforts. For instance, when ITC tested its whacky communication for Bingo snacks before their launch, the ads did not get a positive response from the test audience. Notwithstanding it, ITC went ahead with the communication as it felt that it would have a positive long-term effect.5 allocations, some of the most important contributions of communication get ignored. Even these arguments against conducting evaluative research are weak. Evaluation need not be quantitative or or nearly invisible effects of communication through qualitative evaluation. Often, communication effectiveness may carry over to sales and other behaviours and can be measured. different parameters of evaluation – marketing managers in sales, corporate managers in corporate image, communication managers in brand equity and recall, etc. When people fail to agree on deciding

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what to test, there may be no test at all. This is a lame argument because evaluative research can measure all or most of the relevant parameters. An argument further presented is that many IMC elements work together towards accomplishing

a consumer going to an Italian restaurant in section 2 of the previous chapter. Was it the magazine ad

are hard to isolate because all elements of communication merge with each other and with nonmarketing aspects of the message environment. This is another reason that communication managers it may not be always possible to totally isolate the effects of each individual element of promotion, communication managers are often interested in the composite results of a campaign. Because there is a central underlying message delivered by the campaign, and because all the promotional elements have jointly produced results, the success or failure of communication can rarely be attributed to a effectiveness. Finally, the creative divisions of some agencies are not keen on testing the communication because they feel their creativity gets smothered when put to a measuring test. They are of the opinion that communication, above all, is that which has the ability to help realize the advertiser’s goals. Thus, evaluation is required to guide communication managers regarding the soundness of their programmes, and almost all the arguments presented for not testing communication can be negated.

19.2 CONDUCTING RESEARCH TO MEASURE COMMUNICATION EFFECTIVENESS Once it is decided to evaluate communication for its effectiveness, managers need to answer the following four questions to design the research process.

19.2.1 What Should We Measure?

result’ should be measured. Inspired by the consumer response hierarchy models, there are four basic promotion recognition, i.e. whether a participant can recognize a promotion if consumed before. The second is recall persuasion, i.e. how much a promotional campaign can convince a participant to form favourable attitudes, develop purchase intentions, etc. Finally, the criterion of purchase behaviour is used to see if the promotional campaign has an effect on purchase behaviour or other desired action.

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results and communication-related results. While behavioural results (such as quantity purchased, coupons redeemed, calls made, store visits made, etc.) are owing to a change in behaviour, communication-related results (such as recall generated, attitude changed, goodwill created, etc.) are due to a change in consumers’ learning and emotions. For instance, a marketing objective for the online job site Timesjobs.com was to increase its revenues by 70%. For that, the objective set for the communication campaign was to double the number of resumes being posted on the site per day (behavioural result).6 Although behavioural results are suitable for measuring sales promotion, direct marketing or personal selling, they are not appropriate for evaluating advertising or public relations. This is because while sales promotion, direct marketing and personal selling provide a drive to act, experts are of the opinion that the short-term effect of advertising is on market share change, whereas the long-term impact can be measured in terms of brand strength, which can be gauged through indicators like greater penetration, increase in purchase frequency, an above-average consumer price and a fall in price elasticity of demand. previous chapters on creative execution that factors such as message, source, and media of delivery determine the impact of communication. We will examine the measurable factors of these elements in this section, and in the next section, discuss the methods through which to measure them.

19.2.1.1 Communication Factors Message elements: “I have seen one ad actually sell not twice as much, not 3 times as much but 19 and a half times as much as another. Both ads occupied same space and were run in the same publication. Both had photographic illustrations and carefully crafted copy. The difference was one used the right appeal and the other used a wrong one.” - John Caples in Tested Advertising Methods The above quote talks of the importance of message-related elements in communication and the need to measure them. We discussed in the previous chapters that a message has strategic and creative components. The strategic component consists of what is being said in the communication, i.e. its key idea. For instance, Fevicol talks about strong bonding, Maggi says that it is ready to eat in just 2-minutes, IndiGo primarily communicates about its on-time arrivals, etc. The creative components comprise of how a message is communicated and include the words, images, music, location, layout, logo, colours, etc. used in the communication. All these elements of a message need to be tested and different people in an agency are interested in the evaluation of different elements of the message. For instance, an art director is interested in knowing whether the visual left an impact, if the white colour in the background gave a classy look, etc. A copywriter is interested in knowing whether the message was considered witty, if a more emotional tone would have worked better, if people understood what was being said, if they read the copy at all, etc. A director is interested in knowing if people paid attention from the opening scene, if the pace of the commercial was alright, if people had enough time to look at the brand logo and sign-off, etc. Thus various message-related factors such as its memorability, comprehension, impact, etc. need to be tested. Also, it needs to be of a message in achieving communication objectives needs to be given more attention.

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Often, consumer discussion and opinion forums on the Internet provide a free medium to test Agencyfaqs!, consumers often provide frank and honest opinion regarding various advertisements posted on the website. One such discussion regarding the message elements of a Rexona print ad (refer Figure 3.11b) is shown in Figure 19.2. FIGURE 19.2

Consumer opinion on Agencyfaqs! regarding a Rexona ad.

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Opinions on this ad : 32

1|2|3|4|

Rexona Deo Roll On (Print) message is clear...the imagery is missing...impefect execution...looks like an ad which will be easily skipped.... George 2007-02-04 View Replies | Reply

Rexona Deo Roll On (Print) simple execution! can be understood easily. message delivered...G8 job! thumbs up!!!!

Acclaim, or blame, applaud, or blast. Say

Preet 2006-12-11 View Replies | Reply

what you want about new advertising on Second Opinion. You

Rexona Deo Roll On (Print) This Add clearly spreads the message across but still feel that much better outcome is expected from Lowe

can also check out our storyboards and

new campaigns .

Anant Gupta 2006-12-09 View Replies | Reply

Rexona Deo Roll On (Print) doesnt at all impress... lost in its self admiration

One or two?

Nikhil 2006-12-04 View Replies | Reply

(What is better for advertising - one major national award or two?) "The credibility of awards at national level is far more

Rexona Deo Roll On (Print) Not convinced.....can do soething batter!!! preet thakkar 2006-12-02 View Replies | Reply

than those at smaller levels." and more opinions on this topic.

Rexona Deo Roll On (Print) the concept s very creative.and delivers a great deal of messageand dat too very simply.........too good......... tamanna 2006-11-29 View Replies | Reply

Rexona Deo Roll On (Print) If one removes headline or product photo, nothing can be understand from creative. Preet Thakkar 2006-11-28 View Replies | Reply

Rexona Deo Roll On (Print) very obvious idea, needs more subtlity.

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Film Makers Hall Of Fame,’ accepted in an interview that one of the biggest mistakes his advertising team had made was not assessing the popularity of Hrithik Roshan before making fun of the Coca-Cola icon in a Pepsi ad. Hrithik had a huge fan following, and when Pepsi took a dig at him, there was a massive backlash from the consumers who loved Hrithik and couldn’t bear the idea of someone making fun of him. Pepsi had not calculated that and had to pay for its mistake.7 Similarly, in a US campaign for Nike starring the athlete Joanne Ernst, Nike tried to

Nike’s and training when they couldn’t afford spending time on them. Joanne’s urging women

the creator of the campaign. Since then, Nike and converted the idea into a tagline.8

19.2.1.2 Source elements The source of a message could be a celebrity, an actor, an animated character, a background voice, or the advertiser itself. When personal selling is employed, a salesperson becomes the source and the Factors such as a source’s likeability, power, trustworthiness, accord with the message, etc. can be tested through various research methods available. Often a source can become bigger than the evaluation.

19.2.1.3 Media elements The effectiveness of media planning should be measured with multiple indicators. One of the things to test is whether actual media execution happened as per scheduled media placements. Did

purposes. For electronic media, media buyers examine if the programmes in which advertising time the advertiser paid for, the media seller usually makes good for the difference by running additional commercials without charge. Another measure of the effectiveness of media planning is media vehicle exposure. If the measured level of exposure is near to or exceeds the planned reach and frequency, then the media plan is considered to be effective. In addition to measuring direct media-related elements, marketers also need to consider the measured results of brand awareness, comprehension, conviction and action in determining the effectiveness of media. This is because this hierarchical movement of the consumer is often a function of both advertising creative and media planning. Ineffective media planning may not generate anticipated cognitive, affective and conative responses even if the ads are

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highly creative and brilliant. Thus, these measures should be reviewed by both creative directors and media planners to make accurate assessments of the effectiveness of the media plan. Media elements are relatively easy to evaluate compared to message and source elements, since they are largely measured quantitatively. Different communication tools use different sets of media vehicles. Marketing communication managers are interested in knowing which channels to use, how to use them, when and how often to use them, etc. Advertising is usually delivered through mass media. Abundant research information is available that provides answers to various media-related questions – are newspapers more effective than television, how many more eyeballs do top-of-thepage Internet banners get, are right-hand pages more read in magazines, how many consumers can be reached on weekdays at primetime, do radio and television produce a multiplier effect when used etc. For instance, research indicates that the number of commercials seen every week by television viewers is on the wane, due to channel hopping, multi-tasking, etc. This is apparent from the fact that more than 53% of the programmes in 2001 delivered less than 5% of the television-viewing 9 This fragmentation is worth noting before including television in the media mix, especially with its spiraling cost. TAM recommends evaluating the television rating points for every programme on which time is bought, for every market, both pre and post an advertising campaign to compare the results. In addition to mass media, interpersonal channels, public communication systems, interactive channels, etc. can also be evaluated for their effectiveness. For instance, in public relations it can be researched as to how many media reporters attended the CEO’s speech, how many newspapers covered reports on the company’s latest communication campaign, how much footfall was received in a company fair, etc. Personal selling media can be evaluated by looking into the number of presentations a salesperson can make, average minutes that a consumer devotes to a marketing call, if female salespersons lead to more conversions than male salespersons, etc. Direct marketing and sales promotion messages can be delivered through mass media as well as personal media. Direct marketing managers can research regarding the speed of delivery of their postal mail, number of emails that did not get marked as spam, etc. whereas sales promotion managers can research regarding the number of coupons redeemed, size of attendees at a product demonstration at a movie hall, etc.

19.2.1.4 Behavioural Factors Behavioural communication factors motivate a person to spur into some sort of action – product inquiry, purchase, repurchase, etc. While they are more popularly used as objectives for sales promotion, direct marketing and personal selling, sometimes even advertising is faced with the responsibility of producing sales. For example, in the example of Timesjobs.com discussed above, the onus of doubling the number of resumes posted on the site was entrusted to advertising. In order to propel people into action, advertising gave the message that Timesjobs offered better paying jobs, 10

When Pantaloon Retail India Limited (PRIL) was choosing media agencies for its retail chain, it chose the agency Carat for its ability to evaluate the behavioural impact of communication and ROI through sophisticated response modeling. Carat’s modeling is

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able to distinguish between what the creative is delivering and what the media agency is delivering. The response model is able to link the advertising expenditure to the footfall and is able to say what works well and what doesn’t. By keeping the advertising creative as a constant factor, the model attributes the variations in footfalls to media activities. By such as festivals, during which footfall increases naturally. For a company like PRIL that spends Rs. 300 million on media, it is important to know what behavioural results its money generates.11

In a subsequent section we will discuss how these communication and behavioural factors can be measured. A valuable model to measure the behavioural impact of communication is data analytics that assimilates real time data from various business areas to present an integrated customization and distribution of information across the value chain. Through analytics, it is possible to get a fair idea of consumer perceptions and impact of a particular launch or event. It also allows measuring impact on sales, although it is a lagging indicator of communication performance. With the help of data analytics, even the sector of life insurance, which is plagued by lack of adequate data, has been able to measure a to a variable one.12

19. 2.2 When Should We Measure? Testing can be done before, during and/or after a campaign is implemented. Pretesting or evaluative research is measurement done before the campaign is implemented. It can occur anytime from advantageous because they can nip a bad campaign in the bud itself before more resources are allocated to it. They are also relatively inexpensive. They can even test alternative communication ideas. For instance, a company may want to test if people will respond better to a shampoo ad that talks about preventing hair fall by giving medical reasons or by depicting cosmetic advantages. It can

To target the large mass of consumers who did not feel the need to cover their grey hair, Godrej powder hair dye created a television commercial based on the consumer insight that even people who were beginning to reconcile to their grey hair felt compelled to dye them if they became a source of embarrassment to their family members. The commercial showed a father overhearing his son complaining to the mother that he didn’t want dad to attend a school function because his teacher referred to him as ‘Safed baal karein apno ko bhi pareshan,’ captures the son’s sentiments. This brings the father to dyeing his hair, looking younger, and making his son happier.

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The commercial was pretested using PubliTest, a post ad test model patented by any communication in the category, and an exceptional 99% purchase intention amongst month’s brand track, showing the highest sales in the year.13

Percept Picture Company, which creates concepts, content and scripts for the global entertainment industry, invites scripts from talented writers from across the country. It pretests most of its scripts in order to de-risk its business. The company spends at least 10% by industry) in order to ensure that its scripts are in tune with the audience’s sensibilities. It feels that researching the scripts gives it a better success rate at the box 14

storyboards that may not provide the mood, emotions or the music of the commercials. Thus there are chances of false positive or false negative errors, wherein consumers may positively respond to poor ideas and reject good ideas respectively in a pretest. For example, the world famous international Heineken, ‘Lemon’ by Volkswagen, and ‘No. 2’ by Avis (Figures 19.3a-b) FIGURE 19.3

Campaigns initially rejected in pretests that become a rage later on.

(a)

(b)

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Pretesting indicated that Heineken would fail because it did not show pubs and had no beer cues in it; ‘lemon’ was considered a negative term and not to be used for describing one’s product; and it wasn’t considered wise to openly admit that one’s brand was No. 2 in the market. In spite of the negative campaign for the National Egg Coordination Committee (‘ ho ya Monday, roz khao ande’) had got negative reviews in pretests but went on to become a popular national campaign.15 As illustrated in the box below, pretests are considered to provide a very narrow view of the communication situation, and many creative professionals are not in their favour. The conceiver of two extremely successful brand strategies, viz. Nike and Starbucks, Scott Bedbury believes that pretests need to be used extremely selectively because consumers cannot see brilliance in a raw idea. Consumers are not equipped to judge headlines, storyboards, typefaces, colours and such, and often make faulty judgements. He also admits that a lot of Nike advertising would not have seen the light of the day had it been put to housewives for pretesting. Nike never pretested any of its campaigns, and took full responsibility for its creative rather than passing the decision to the consumer. He has boldly stated that “Focus groups can be like expensive toilet paper – they cover your (agencies’) ass.” While Bedbury is not against research per se and has successfully used focus groups for Nike campaigns as well, he cautions that research should be used wisely. It should be used to get a sense of direction, but not to test tightly 16

R. Balakrishnan, executive creative director, Lowe Lintas & Partners, says, “Research can tell you what will work. It can tell you that you won’t get pasted. But it can never tell you the opportunity you have lost – of how much better it could have been.”17 In the not factor for growth of the communication idea. In focus groups, people react instantly Sholay, Pepsi’s ‘Mera number kab aayega’ and Kaun Banega Crorepati’s ‘Lock kiya jaaye’ didn’t sink 18

Finally, pretests can delay the implementation of the campaign, and are hence not suitable for products with a small window of opportunity. This is not to rule out pretests altogether, because they have a lot of merits if used wisely, but to warn against an over reliance on consumer judgement alone. Concurrent testing is conducted while a campaign is running in the marketplace. Its biggest advantage is its ability to measure the effects of communication in progress and make adjustments

the global market research organisation TNS by the media industry to explore the performance of print advertising both as standalone campaigns and in conjunction with

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other media. The project measured the actual in-market campaigns, which appeared across a portfolio of newspapers and magazines. A wide range of measurements were implemented in the study including campaign recall, impact on brand perception, as well as reader attitudes toward print media and advertising. While there was no shortage of depth of insight into advertising effects and how consumers interact with different media, 19

Post-testing occurs after the audience has been exposed to the communication campaign. It is designed to determine how far marketing communication objectives have been attained, and how this information should guide future planning. For instance, the Advertising Club, Calcutta, in association

yet robust, and factors in the response to the brand through market assessment of consumer attitude and behaviour, and the response to the advertising through stimulus assessment.20 A post-test survey conducted by ORG/Johns Hopkins University Centre in October-

behaviour. The survey, conducted approximately 10 months after the media campaign got under way, took a sample size of more than 7,000 in the key Hindi belt states. The survey indicated a reach of more than 50% of the target population by the campaign’s television spots. It was also found that the television spots had a substantial impact on people’s actions and intentions. 11% had already taken action as a result of the spots, and 40% intended to do so in the next six months. Actions included condom use (taken by approximately 25% of those who took action), the discussion of condom use for

seen for the campaign’s television show for the youth, Haath Se Haath Milaa, aimed at

spreads. The phenomenal success rate of the campaign can be attributed in part to its pretest surveys and concurrent surveys undertaken in the initial phase of the television spots, both of which had shown high level of acceptability.21 Post-test studies done by Sony Entertainment Television (SET) revealed that many viewers, at least in a sub-conscious way, highly relate to how a channel looks besides what it contains. It pegged this as one of the reasons of the channel’s troubled times indicated by falling revenues, channel share, and advertising time sold, and used it to guide future strategies. Thus, apart from repackaging the channel with new formats,

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new genres, and new shows, SET has also redesigned its look. The makeover has been executed by Belief, a Hollywood-based award-winning design house. The agency has created an international look with an Indian ethos, giving the design an overall feel of Sony’s audience of adults and families, of 18 to 35 year olds. The design team has also made changes in the channel’s form and colour. morning, light blue is used for the morning band, and purple, which the team felt was This strategy is designed to help the channel gain a No. 2 position.22

19.2.3 Where Should We Measure? Laboratory tests are tests done at locations, which are not the real-life locations where people consume the communication. In laboratory tests, the test audience is exposed to ads and other communication by bringing them to certain locations, such through various testing devices. An advantage as well as disadvantage of laboratory tests is that they provide a relatively noise-free environment in which viewers are not distracted by competitor ads,

of environmental factors, the disadvantage is also this lack of realism, because in a normal setting individuals rarely consume communication in that manner. The comfort of their homes, the chatter of their family members, etc. are very much a part of their regular consumption environment. Thus, are likely to inspect the communication more closely than they would routinely, thus leading to a testing bias music, story, characters, etc. Also, it is easier to test alternative versions of these elements in a lab setting in a much more cost-effective manner. Thus, the method is popularly used in communication research. Field tests malls, movie theatres, etc. – replete with the environmental distractions of the consumption places.

with certainty if a person did not understand an ad because the ad was incomprehensible to her or because of the constant banter of her daughters. There have also been instances when competitors of a sampling programme may not get the full results because of a purposeful and equivalent coupon Which method works best depends on what is more important to the researcher – realism or isolated measurement of communication effects.

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19.2.4 How Should We Measure?

in the next section. As we discussed in Chapter 6, experiments involve giving controlled exposures to sample groups of consumers by controlling unrelated factors in the best possible manner, and checking for group responses. For instance, an agency can expose two similar groups to two different sales promotion programmes (10% off coupon to one and 15% rebate to another) and check for difference in responses. In surveys, information is gathered by asking people questions, as in personal interviews or focus groups. Observation comprises of gathering information through human or mechanical surveillance. Physiological devices are the most common type of mechanical techniques that we will discuss later. While applying the testing techniques and approaches, certain criteria for evaluating ads and known as PACT (Positioning Advertising Copy Testing), which are aimed at improving the Copy testing is research undertaken to decide if advertising should run in the marketplace, and to judge media testing, and is in fact pretesting by another name and is particularly used for testing television commercials. Adherence to its principles can make copy testing scores. Report card measures are used to arrive at a valid, single-number statistic to capture the overall performance of the advertising creative. a brand message in their long-term memory, create persuasion, generate attention, and develop branding, were used to measure an ad’s effectiveness. Diagnostic measures are used to understand why attention, branding, motivation, etc. are high or low, and to help advertisers identify creative opportunities to improve executions. Non-verbal measures were developed to measure those elements of advertising, which could not be expressed in words or scaled through verbal rating statements. consciously. Moment-by-moment measures sprung from the belief that a commercial need not be rated to scene while viewing a commercial. The most popular of these was the dial-a-meter response, discussed later, which required respondents to turn a meter toward one end of a scale or another to 23

19.3 THE ADVERTISING TESTING PROCESS In section 2.4 we discussed how communication can be measured. In this section we shall examine advertising campaign. Testing of an ad campaign can occur (a) in its development phase (pretesting), (b) during its execution (concurrent testing), and/or (c) after its market-run (post-testing).

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19.3.1 Pretesting Tools and Techniques Concept testing research evaluates ad theme concepts and appeals, positioning concepts, copy or script concepts, visual and art concepts and the broad structure of advertisements. Concepts may be expressed in words, pictures or symbols. Ripomatics/stealomatics, which are very rough renditions of a commercial, and be prepared to represent the feel of the tested commercial. Alternative concepts are presented to test audiences through methods such as focus groups, interviews, observation techniques, etc., and

as animated storyboards, ripomatics/stealomatics/animatics/videomatics, and storyboards with a narrative tape.24

19.3.1.1 Focus groups In Chapter 6, we discussed about the use of focus groups in generating advertising ideas. In the context of measurement, focus groups are used to evaluate one or more ad concepts through in depth discussions on a topic. For instance, groups may be shown alternative ad concepts and asked, “Which because of their qualitative nature and ability to discover important issues through exhaustive group Chapter 6.

19.3.1.2 Individual interviews Test audiences may be interviewed individually either by taking prior appointments or by intercepting them at public locations such as shopping malls, cinema halls, etc. and opinions may be taken regarding alternative ad concepts, rough art, copy, etc. People may be asked if they think a particular its claims, if it would lead them to purchase the product, etc. While opinions are fast and easy to take, they should be sought and evaluated by experienced researchers who can adjust responses for speculation or wrong answers. These days the Internet is also a popular medium for conducting evaluative research, although responses received are usually few and far between.

19.3.1.3 Anteroom trailer Yet another method for testing opinions is the anteroom trailer or a mobile van, wherein a mobile passersby are chosen as interviewees and offered some incentive for participating. Prerecorded test commercials are shown interspersed with some programmes, and interviews are conducted and opinions taken after the viewing.

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19.3.1.4 Consumer juries Consumer or target market representatives are appointed as juries to evaluate the performance of a advertisements, and asked to rate or rank them. Consumers may be asked to either rank the ads from one to n based on the order of their preference, or compare all the ads in the test, two at a time, and mark the preferred one. The ad that wins the most times is declared the winner. suffers from serious limitations. Often when consumers are asked to evaluate ads in the position of an expert, they become overly critical and even comment on aspects that they would have otherwise halo effect, whereby the perception interpretations. Thus, if consumers like a print ad’s endorser, theme and colour, they may give high ratings to even its copy, which may be otherwise ordinary. Contrarily, the horns effect may also work, consumer preferences for particular types of ads – musical, emotional, visually appealing, witty, etc. – may lead them to prefer such ads over rational, copy-oriented ads, although the latter may be more effective in achieving communication objectives. In addition to consumer biases, there are physical limitations to the number of ads that can be tested through this method as the process of ranking or comparing two ads at a time can become tiresome or time-consuming as the number of ads increases.

19.3.1.5 Ethnography Ethnography is an observation research technique in which data is collected by observing consumer behaviour. Data can be collected in a number of ways – by having human researchers observe consumers in stores, work places, homes, etc.; by giving consumers a video camera to record their interactions with the target product; by having consumers record their behaviour in a diary; etc. behaviour and attitudes generated through communication.

19.3.1.6 Programme analysis

program analyzer that can monitor audience’s likes and dislikes throughout a broadcast programme or commercial. The test audience is seated in chairs equipped with left- and right-hand push buttons. They view or hear the programmes or commercials, and press the right-hand button when they like something and left-hand button when they dislike something. If neither button is pressed, evaluators assume that the subjects are indifferent. Each push button is electrically connected with a pen, which draws a continuous line on a moving paper tape positioned under it depending on which button is the programme, asking the cause for their likes and dislikes. Alternatively, they may ask the subjects

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mark their reactions on the ballot paper, which has corresponding places to indicate favourable or unfavourable reactions.

19.3.1.7 On-air testing either in place of the new commercial or at a new time period. Most commercials tested are in the commercial are interviewed to determine their recall levels, brand attitudes, brand knowledge, etc. On-air tests are mostly used for testing recall levels of various sales points of a commercial. Figure 19.4 method, a major limitation is that the evaluation of the commercial is affected by environmental factors such as adjacent programmes, the number and type of ads aired in a commercial break, the may not be possible, the test does provide for a realistic viewing environment. FIGURE 19.4

On-air test results for a cigarette commercial.

Contd.

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FIGURE 19.4

Contd.

Contd.

Chapter 19 FIGURE 19.4

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783

Contd.

Contd.

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FIGURE 19.4

Contd.

19.3.1.8 Theater test This laboratory method of pretesting broadcast commercials is popularly used in many western countries. This method tests the commercial in a movie hall in front of an audience of about programme shown to the audience. The entertainment programme is preceded by a lottery, in which people are asked to allocate a sum of money among different brands (including the one being tested). After the programme, there is another similar lottery. The measurement of the effectiveness of the tested commercial is determined by comparing the audience’s preference for the brand after the programme with their preference before the programme.

19.3.1.9 Portfolio test consumers are exposed to ‘test ads’ in a folder, which also contains a number of ‘control ads.’ After a brief time lapse, advertising performance is primarily evaluated using the criteria of recall – the percentage of participants who can recall brand and/or product, pictorial or copy aspects of the ad, sales points, etc. It may also involve rating the ads or products advertised. Portfolio tests are easy to administer and analyze. Also, the control ads provide a more realistic setting. Although portfolio tests are informative and popular, a serious limitation arises from the fact that they are mostly used for testing recall, which may not be the best test. Factors other than those related to an ad may affect recall, such as the audience’s interest in the product category. Finally, as with other laboratory methods, participants are bound to become more critical of ads when they consciously participate in a test.

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19.3.1.10 Dummy advertising vehicles In an improvement to portfolio tests, a cross section of consumers is given a dummy or test publication, containing a portfolio of about 15-20 ads along with regular editorial material, to be read at home. Participants might be intercepted at public places in test areas and often screened before giving the test publication. Alternatively, publications may be distributed in sample homes. The test ads are inserted in such a manner that the readers cannot distinguish them from the regular pages. Participants are instructed to read the publication in a normal manner. They are then interviewed on phone the next day to determine recall of the ads and sales points, overall ad impressions, etc. An advantage of this method is that it provides a more natural setting in the readers’ homes, and a more natural reading situation.

19.3.1.11 Readability tests These are formulaic procedures for evaluating the readability of text, which are used instead of conducting an actual survey of human readers. They measure the ease of reading copy in a print ad including comprehension, retention, reading speed, and reading persistence. One such test uses a score produced by the Flesch formula copy. The Flesch reading ease score rates text on a 100-point scale. Measuring the average sentence length and average number of syllables per 100 words, it puts the results into a formula. The higher 25

syllables per word words per sentence number of words per sentence on the chart (see Figure 19.5. Connect the two markings by drawing a straightedge of the chart. The intersection of the straightedge and the center column on the chart shows the readability score. Ê total words ˆ ÁË total sentences ˜¯

Ê total syllables ˆ ÁË total words ˜¯

The test suggests that copy is more readable when words and sentences are short, and more familiar to human interest level of the material, etc. While the test is advantageous owing to its simplicity and non-requirement of interviewees, its biggest limitation is also that human response is not available.

copy’s creativity and interest generated by it cannot be tested.

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FIGURE 19.5

Readability chart. Readability Chart How to use this chart Draw a straight line from your measured "words per sentence" to your measured "syllables per word." The intersection of this line with the center column shows your readability score. The minimum score for Plain English is 60.

Syllables per word 1.2

1.3

Readability Score 100

1.4

90 1.5 80 Words per sentence

70

5

1.6 60

10 50

1.7

15 40 20 30

1.8

25 20 1.9

30 10 35 0

2.0

19.3.1.12 Physiological measures These evaluate the performance of ads by measuring people’s physical reactions to ads in a laboratory setting. They measure participants’ involuntary physiological responses (over which they have no of the mechanical instruments used to measure physiological responses. In this chapter, we will focus ∑ Eye tracking: Eye tracking is used to measure eye positions as well as eye movements to evaluate aspects like which elements of an ad attract more attention, how long eyes linger on them, and in which sequence or path various ad elements are viewed. In other words, they track the movements of the user’s eyes and note what the pupils are doing while the user is looking at a particular feature. There are various methods for measuring eye movements.

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A popular technique uses video images from which the eye position is extracted. Another modern method uses a sensor to beam infrared light in the subject’s eyes. The sensor then and the centre of the eye’s pupil to arrive at the exact spot in the ad where the eye is focused. Television, print and Internet ads can be measured using these techniques. For instance, say a person is navigating a website to make an online purchase. With eye tracking, it is possible compares different items, and where she looks to navigate to the shopping cart or other areas of the site. Tracking eye movements is useful to advertisers in many ways. For instance, they can know if attractive models are distracting audience attention from the product, if bright visuals are adding to audience interest, etc. ∑ Pupil dilation: Advertisers also rely on abrupt changes in pupil diameter, which indicates current levels of mental effort put forth by the user. It is assumed that with increased interest and action, pupil becomes dilated, and when interest level is low, it contracts to conserve energy. This study of the relation between a viewer’s interest level in an ad and his pupil dilation is known as pupilometrics. The hand-held portable electronic instrument, which measures pupil size in reaction to a stimulus, is known as pupilometer. Pupilometrics is used by advertisers to measure interest levels in ads and packages. ∑ Galvanic skin response: electrodermal or skin conductance response (SCR), is a physiological testing technique in which the electrical conductivity or resistance of the skin is measured to check the level of arousal caused by an advertisement. It is performed with a psychogalvanometer that measures changes in the activity of the sweat glands via glands, resulting in lower electrical resistance. This is recorded on a revolving drum on the psychogalvanometer. It thus senses the small amount of sweating that accompanies emotional arousal and records points in an ad when the respondent’s interest and emotions were stimulated. In a car ad, was the respondent more excited when the car was zooming at fast pace, when a close-up shot of the chassis was on screen or when a pretty model was ∑ Brain waves: Electroencephalography is the neurophysiologic measurement of the electrical activity of the brain performed by recording electrical frequencies in the brain. or in the cerebral cortex. These are sometimes called brainwaves, although it is a misnomer because the brain does not broadcast electrical waves. By measuring the electrical activity in various parts of the brain, researchers can tell whether the subject is inactive or paying attention to a stimulus. For instance, alpha waves are low frequency waves observed in the brain during a state of relaxation or inactivity. A person in the alpha state is less likely to be hemispheres of the brain perform different functions. The right side of the brain is creatively inclined and processes visual and emotional stimuli, whereas the left side is rationally inclined and processes verbal and logical stimuli. Based on these hypotheses, researchers measure alpha activity in both hemispheres, a process known as hemispheric lateralization, to measure

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be treated carefully because it is observed that the brain does not always function laterally and popular lateralizations can often be distributed across both sides.26 Test marketing: Test markets are chosen representative sub-sections of the target market, in which communication can be tested in a few cities or test areas to evaluate certain elements of an ad, other communication elements, media mix, etc. Because the ads are run in a realistic environment before going for a nationwide or full-scale market launch, communication managers can determine the performance of their communication at lower costs. While earlier test-marketing was an expensive exercise, afforded only by companies with deep pockets, today pre-market tools are available that can generate simulated test market data. As indicated by the Box popular test markets mainly because they provide media isolation. Along with test markets, control markets may also be chosen wherein either no ads of the brand are run or old ads are continued. For instance, a pre-launch test was done by Yahoo! to evaluate the performance of graphical Internet ads on mobile phones and to gauge how the extension of ads from the Web to the wireless world affected corporate branding. The company delivered its Web-based graphical ads to subscribers of Yahoo!’s mobile web service. The key challenge lay in making the ads more relevant since cell phone screens have limited real estate.27 South India has become a popular choice with many marketers and communication managers in test marketing their products and strategies. The Southern states have been used to test market brands and products ranging from papads and pickles to soft drinks and candies. In interviews conducted by Agencyfaqs!, research and communication experts explain reasons for the South’s popularity as a testing ground. Mode, “The propensity index in the South is higher than in the North and the per capita consumption for many product categories is higher too. Also, SEC A and B households in the South have excellent cable and satellite penetration. This leads to vernacular isolation.” Another reason is that while test marketing is a costly affair, the & Marketing, Perfetti India Ltd, in cities such as Chennai or Bangalore, “advertising on a local channel turns out very cost-effective and makes the Southern market far more media-friendly. Compared to Star Plus which charges over Rs 50,000 for a 10-second slot, ad rates on, say, Sun TV hover around Rs 5,000-8,000 for 10 seconds.” Usha Kavan, Vice-President, TNS Mode also favours South India as a test market owing to lesser media fragmentation. She says, “A critical aspect of test marketing is using the media and assessing its reach. In the South, the reach of the media is most insular. It is, for example, possible to cover the entire Southern region with one Sun TV. For a brand’s target audience in, say, UP, one would not know what percentage of them watches Sony and what percentage watches Zee.”28

Test markets are advantageous owing to the realistic market conditions they offer. If properly conducted with appropriate controls, they can offer deep insights regarding the impact of

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in its implementation or modify their own strategies before the national launch. In addition, test marketing is costly and time-consuming.

19.3.2 Concurrent Testing Tools and Techniques

these methods can also be used for post-testing.

19.3.2.1 Coincidental surveys The coincidental methodology is a system of audience measurement primarily for the broadcast

∑ ∑ ∑ Advertisers can determine whether the target audience is consuming the message and to what extent the message is comprehended. Often the data collected for television from people is compared with peoplemeter data to get consistent results. An advantage of this technique is that it does not rely on memory, as the respondent is being asked to report on the current happening. This immediacy also each of the time intervals it aims to measure. It is also restricted in its scope since it cannot collect data from nighttime or early-morning audiences, or people on the move.29

19.3.2.2 Attitude tests

individuals regarding the message, tone, comprehension, spokesperson, wording, etc. of an ad and the results are used to indicate positive or negative attitudes. Tools like direct questions, rating scales, semantic differential, checklists and partially structured interviews are used to measure attitudes. If attitudes are heavily negative, the communication may be pulled off. It is important to survey attitudes because they indicate the audience’s favourable or unfavourable disposition towards the attitude does not always yield reliable results. Tests are conducted by Media2 india through its proprietary tool Ad Gauge, to quantify the attitudinal impact of an online banner advertisement. The test goes beyond clickthrough metrics and measures parameters like awareness, recall, memorability, and persuasion. Ad Gauge uses the pop-up serving technology to collect and analyze data from test groups and control groups, which are exposed to the ad. Based on the

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along with the click-through rate. This gives a holistic feedback on the performance of the ad campaign.30

19.3.2.3 Tracking studies of time. Depending on the speed of the purchase cycle in the product category, tracking can be done continuously (e.g. a few interviews every week) or in a pulsed manner, with interviews conducted in widely spaced waves (e.g. every three or six months). Tracking measures a campaign’s performance based on measures such as brand and advertising recall, awareness and interest; purchase intentions; product trial and usage; purchase frequency; target market characteristics; media habits; attitudes about the advertised brand versus competition; etc. Tracking can be done as concurrent testing as well as as post-testing, and both print and broadcast ads can be tracked, although tracking the latter is more popular. These days online tracking services are also available. Advertising agencies are likely to

∑ Wave analysis: Wave analysis measures the impact of advertising over time through multiple measures and a series of interviews, which give a wave-like pattern of communication performance when plotted on graphs. Personal, telephone, mail, Internet and intercept interviews are used to track campaign performance. A set of questions is periodically asked to a random sample of 250 to 500 participants. For instance, in a personal interview, respondents may be shown stills from a television or print ad and asked to recognize its sponsor and main message. The variations in answers in each interviewing phase help determine how communication impacts various measurement parameters such as recall, preference, sales, etc. Adjustments can be made in communication strategies based on the answers. This process is repeated and the same questions are asked to compare the latest wave with the previous ones. effects and performance. ∑ Consumer diaries: As discussed in Chapter 19 , in the diary method a panel of consumers is asked to maintain a diary in which they record their media usage, purchase patterns, brand usage, brand switches, exposure to competitive promotions, etc. while the campaign is in progress. The technique provides information regarding important parameters as directly reported by the panel members and can help in making changes in the campaign to improve its performance. The survey of course is limited by the number of participants and the extent of details recorded in the diary. ∑ Pantry checks: In this method primarily used during new product introductions, a researcher visits homes of consumers and inquires regarding the products used or purchased. Alternatively, he may do a physical count of the inventory of various brands stocked by the researcher tallies.

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∑ Single-source tracking: This method refers to the collection of data ranging from communication exposure to product purchase regarding a single family or group of consumers. Through single-source tracking, data can be collected regarding media habits, purchase behaviour, etc. by monitoring exposure to promotion efforts, and audience’s decision-making and purchase behaviour can be tracked through the entire communicationto-purchase cycle using sophisticated research methods and devices. This approach can also be used for pretesting or post-testing communication. BehaviourScan, ScanTrak, Info-Scan analyze data through peoplemeters, scanners, etc. and make them available to clients. In India, for instance, TAM AdEx is a monitoring service that acts as the provider of single-source information for broadcasters by capturing programme promotions and information collected through the loyalty programmes of retailers. The data generated by the retailer loyalty programmes enables retailers and their key partners to better understand consumers’ shopping behaviour and preferences. They can also develop targeted, loyalty building marketing and merchandising programmes and track their impact on shoppers over time.31 and agree to participate in the tracking, are recruited in the panel. They are given a card with scanning barcodes of products purchased by the users, scanners record the users’ purchase information in computerized store databases every time the card is presented at a retail counter. The panel members are split into matched groups and experiments are performed to measure communication effects on consumer behaviour. For instance, each group may receive a different advertisement for the same product, one group may receive an ad and the other may not, advertising timing or frequency may differ, etc. and differences in both group’s behaviours are observed. Additionally peoplemeters can be used to record television-viewing patterns by panel members. For instance, Elite, a division of TAM online peoplemeter panel to study television viewership habits of Elite consumers. In order to isolate single variables in test markets, other communication activities for the product are all controlled. advertising and sales. The joint use of various tools also provides more information than is just a sophisticated version of the old diary method, periodic interviewing, and the like. Other disadvantages like high cost of the data, inundation of data and their complexity, etc. are also slowing down the adoption of this method. Besides, the continuous use of scanner data for capturing long-term sales is required to measure the full impact of communication. Tracking studies are advantageous as they integrate a measure on many factors and provide a more

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results provide an accurate rear-view mirror look at the marketplace and how it was affected by the advertiser’s strategies.32 They also provide a measure of the combined effectiveness of advertising of the two factors separately. Tracking studies have been used to measure the differential impact of media vehicles, media schedule, recall of sales points, brand image, alternative communication messages, etc. For example, through tracking it can be found out if message A led to more sales or message B, how sales changed with increase in advertising budget, etc. Tracking provides important Tracking can also be useful in comparing the marketer’s sales and market shares resulting from communication with the competition’s, and for understanding reactions of the market to incremental known to offer a high degree of reliability and validity.33 Although tracking studies face the problem of inability to isolate environmental effects, they are a useful way of measuring the effectiveness of advertising campaigns.

19.3.3 Post-testing Tools and Techniques Post-testing is the most common of all testing procedures because it is only after a campaign has run its course that its full effects can be analyzed. While post-testing cannot improve the campaign

19.3.3.1 Recognition (Readership) Tests

his service, which is widely used to measure print advertisement recognition, is known as the Starch test. The test is used by many advertising agencies and advertisers to guide their advertising copy Group, a market research organization serving 90 countries.

responses, particularly if they saw certain ads in the issue. Participants are prescreened through personal interviews and are people who have previously read the publication, usually within ten days of its issue. Interviewers ask participants to indicate the ads they read and may question regarding the components they saw, such as headlines, visuals, logo, body copy, etc. For high-quality results, no single respondent is asked to view more than 100 ads. Starch Ad Readership Reports ∑ ∑ or advertiser; ∑ The results are written on notes (set of stickers) attached to the ad (Figure 19.6).

Chapter 19 FIGURE 19.6

Measuring IMC Performance

793

Starch Scores for a print ad in Life Magazine.

to advertisers how various elements of an ad are remembered by participants. They also point to depends on various factors such as audience involvement with the product class; size, color, position, copy and other creative elements of the ad; the editorial content of the media and competitive ads in it; etc. Thus, the tests also allow advertisers to compare ad performance across these dimensions – whether ad in publication A was recognized better than in publication B, whether larger ad got more recognition, etc. Performance can also be compared with other ads of the same size, product

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Advertising and Integrated Marketing Communications

be used to demonstrate the impact of print advertising on purchase behaviour. The research agency Starch once collected 110,000 interviews for two weekly magazines, publication of the two magazines. The interviews collected more than Starch’s traditional advertisement reading and noted research data. The data also contained the purchase levels of 73 packaged goods brands during that week prior to each interview. As a result, it was possible to relate brand purchase levels to the presence or absence of advertising for those brands measured. The research showed that a reader of an issue containing an advertisement for a measured brand was 19% more likely to have purchased that brand in those seven days prior to the interview. This was in contrast to those readers impact of magazine advertising on sales of repeat-purchase packaged goods. Since the interviews were carried out seven days after publication, the potential of exposure to an advertisement could be linked with a 19% increase in recent buying.34

involvement with the product category, editorial content and reproduction quality of a publication, it at all and can claim readership where none exists. They may also try to impress the interviewer or may not want to appear unknowledgeable, and may claim false recognition. False recognition may also arise because of confusion with prior advertising for the brand or interest in the product category. Further, participants’ anticipation of tests can also affect their recognition scores. In an experiment performed better on that test than subjects who expected a different measure or measures unrelated to retention.35 Moreover, ad recognition does not necessarily have a relationship with sales. The tests can also suffer from variances due to difference in the skill and sophistication of interviewers. Most

19.3.3.2 Recall tests Like recognition tests, recall tests also test audience’s memory in remembering advertisements. ads to participants, in unaided recall the audience is asked to recollect elements of ads without print ads and broadcast commercials. In recall tests of print ads, participants are asked to read test publications in their homes. The next day they are screened to determine if they have read the publication or not. Qualifying participants

participants receive cards in which all the products advertised in the test publication are listed.

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Participants mark the ads they have noticed, after which they are interviewed. Most researchers test ∑ publication closed; ∑ ∑ For testing recall of broadcast commercials, the Burke Day-After Recall test, developed by the Burke Day-after recall tests test consumers’ are aired, participants are screened to qualify those who have seen the commercials. As in print who have a high degree of involvement with the programmes watch ads and remember them too. More than 49% of such people watch television commercials without walking away during breaks; more than 30% of these people remember or recall the ads. What is therefore needed is a quality people’s involvement levels.36 remember various aspects of an advertisement, and also for comparing these measures with industry benchmarks. They also let advertisers experiment with copy and media elements in order to aid 37

On

the message, and rational messages are easier to verbalize than emotional messages.

19.3.3.3 Inquiry tests These are behavioural post-tests to check how much an ad campaign has succeeded in developing purchase intentions. Their objective is to generate the maximum number of inquiries in response to an advertising campaign. People are encouraged to inquire about the product through business reply cards, toll-free numbers, emails and websites, etc. In return, they may sometimes be offered incentives like product samples, information booklets, free trials, small gifts, etc. The additional cost of generating inquiries (such as cost of free gifts) may be added to the total communication cost. inquiries, can also be used as a performance indicator. Inquiry tests can be used to evaluate alternative communication strategies. For instance, a split run of two different versions of ads may be given in different editions of a newspaper and it can be checked as to which ad generates the maximum response, while providing for appropriate controls. Advertisers often use a different code in direct response ads to identify different media vehicles. For example, in one issue of Business Week, the reply card for subscribing to the magazine may have a code

assess the response rate of each media vehicle. Inquiry tests are popular because to marketers action

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(such as an inquiry initiated by a participant) is a much stronger indicator than recognition or recall. why a particular ad or campaign could generate action, whereas another could not. Also, generating inquiries is costly and time-consuming. All the inquiries may not come in together and it may be a few months before inquiries can be measured.

19.3.3.4 Sales tests These are behavioural post-tests to check how much an ad campaign has succeeded in generating actual sales. The most common approach is to compare sales pre and post campaign, or past sales with current sales. Inventory checks and scanner data can be used. Experimental sales tests can also be done, wherein different versions of ad can be run in different test markets to check which one generates maximum sales. While impact on sales is the ultimate factor of interest for all marketing starts impacting sales, and for how long. After a campaign is run, should sales be measured for that problems.

19.3.3.5 Comprehensive measures Most of the tests described so far provide independent indicators of advertising performance, such certain tests are useful for certain media only. Advertisers are often interested in understanding the performance of advertising on all the above-mentioned parameters and various media jointly because only a comprehensive analysis can tell how effective a campaign has been. For instance, an ad performing well on recognition may perform poorly on attitude and purchase intention. Comprehensive tests can spot out such anomalies so that performance can be improved through the versions of comprehensive tests. For instance, as indicated in the following Box, TAM S-Group has developed a comprehensive test model and method that lets them evaluate the effects of both on- and off-air promotions of television programmes, as well as the extent of impact they have on different types of viewers, in different dayparts, with different frequencies, and such other hypotheses. Television channels often promote their own programmes to increase the number of new viewers, win back lapsed audiences, and sustain loyalty. With a unique measurement model, TAM S-Group, a specialist strategy group within TAM Media Research, makes it easy for broadcasters to assess the effectiveness of their programme promotions. A Programme Health Indicator Grid (PHIG) (Figure 19.7a) analyzes the kind of walk-ins that have happened in a programme. It breaks the audiences of a particular programme into Loyalists, Flirts, Lapsed and Untouched Viewers. On the basis of size of these segments a broadcaster can accurately point out the problems with the programme and take remedial measures. Further, TAM S-Group also makes it possible for broadcasters to answer various questions like: How successful are the programme promotions? Is the promo creative working? What are the best slots to schedule the promo? Are some slots more effective

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than others? Is cross-media promotion working? Are fresh viewers walking into the programme? In order to answer these questions, TAM S-Group has split the universe of potential audiences of a promo plan into relevant and actionable clusters on a Promo Evaluator Grid (PEG) (Figure 19.7b). Like a report card, the construct indicates where the problem lies. It lets a broadcaster test various hypotheses by controlling input variables and tweaking them to evaluate the effect of those variables on PEG. Quadrant 1 indicates the effectiveness of a promo strategy. Quadrant 2 describes the shortcomings of the promo strategy. Together, both quadrants 1 and 2 indicate the reach of the entire promo plan. This can be a function of channel reach, promo scheduling, weight of the promo plan, etc. A strong indicator of promo effectiveness would be the conversion ratio (ratio of walk-ins to the programme to reach of the promo plan), which indicates the number of people who came to the programme and saw the promo as well. Quadrant 3 indicates the effect of off-air promotions in getting new viewers since it denotes the walk-ins who did not see television promos. Based on TAM’s experience with various programme promotions, this quadrant is usually very low indicating a fragmented television audience that needs more convincing to start viewing a programme. Quadrant 4 indicates the limited promotional resources, i.e. the number of television viewers who were not reached by the promotional plan. Viewers in this quadrant have to be moved into other quadrants through on-air and cross media promotions. For arriving at the dayparts, which are most effective for on-air promos, marketers rely on the theory of recency, i.e. exposures should be aligned closer to the purchase timing of a brand. Thus the dayparts that lie closer and before the programme airing time are believed to have a higher effect in terms of generating walk-ins. With the help of PEG, these hypotheses can in fact be validated and critical learning be drawn for future promo scheduling. PEG is also very useful for testing the effectiveness of cross media promotions. It is positioned as a strategic tool for broadcasters to test various media such as print, outdoor, etc. to determine their effectiveness. For instance, it answers questions such as which other media should be employed in addition to television, is outdoor working better than print, etc. It also gives answers to the performance of off-air promos in terms of generating entirely fresh viewers (viewers untouched by TV promos) and their effect in combination with on-air promos. Further, analyzing the respondent level data for a series of programme promotions has thrown interesting insights into the level of frequency that would be most effective. Thus, 39

One of the points of interest to advertising managers is to measure the effectiveness of different advertising media, especially when they are used jointly in an IMC situation. For the same, ZenithOptimedia has developed a specialized consumer insight tool called Touchpoints that helps to track the business effect of various communication media or touch points used by marketers. The tool allows the company to measure

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purchase. In this sense, it tracks both the communication and behavioural impact of promotional tools. Consumer interviews are one of the main methods in arriving at the clout factor. When the contact clout factor was measured on a scale of 0-100, 100 high at 70. On further segregating point-of-sale touch points, in-store TV ads were found to be less effective than in-store product demonstrations and gift coupons. The former ranked at 49 and the latter at over 80. While the scores should not be the sole measure of comparison among different media, since each medium’s communication objective is different, they do offer interesting insights into a tool’s ability to yield visible results and return on investment. Since 2004, ZenithOptimedia has used this tool to complete 277 projects with close to 3,000 interviews on 4,000 brands. This has further helped the agency to form standardized norms to reach the target audience for over 150 touch points.40

Another model to comprehensively measure the effectiveness of advertisements has syndicated research study tracks both – the popularity and the effectiveness of current Indian ads using 12 distinct parameters that determine the effectiveness of an ad (Figure 19.7c). across all SEC classes and income groups from more than 100 cities/towns of various provides two kinds of reports to its clients: TM

report is a monthly monitor of the most effective and successful ads among the urban consumers. It tells clients if their ads are standing out in the daily ad clutter and connecting with the consumers. 2. The Ad-MomentuxTM report is a quarterly tracking of consumer mass generated by the ad for the brand in the category. It tells clients if their ads are generating 41

19.3.4 Increasing the Effectiveness of Tests In order to get the most out of testing, researchers have to adhere to many dos and don’ts of measurement. Good research depends on sound objectives; hence the objectives should be clearly use both prestests and posttests to get a complete idea of audience feedback and performance of the campaign. Both tests complement each other. While pretests lay out the opportunity cost of a campaign and may prevent costly failures, posttests determine actual performance of the campaign. Further, a number of research methods should be used simultaneously to determine the full effect of advertising. While most tests focus on recognition, recall or sales, the impact of advertising can extend beyond these measures. Also, principles of good research design such as appropriate sample size, ample number of ad exposures, controlling extraneous factors, etc. should be practiced for best results.

Chapter 19 FIGURE 19.7 (a)

Measuring IMC Performance

A Programme Health Indication Grid by TAM to analyse walk-ins in a programme.

Program Health Indicator Grid [P.H.I.G] Program Viewed (this week)

Prog Viewed (any week)

Yes

No

Yes

Loyalists

Lapsed

No

Philanderers

Un-Touched

Courtesy: TAM

FIGURE 19.7 (b)

A Promo Evaluator Grid by TAM to analyse programme promotions.

Promo Evaluator Grid (P.E.G)

Promo Viewed

Program Viewed Yes No Yes

This cell represents promo effectiveness or 'Convertions'

This cell represents promo strategy shortcomings

1

2

Cross Media and Chanel Loyaists

‘Un reached’ Audiences

3

4

No

1+2+3+4 = Total Addressable Universe (eg. Males SEC AB 15+)

Courtesy: TAM

Problem!

Promo Promo Conversion Conversion

Problem!

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FIGURE 19.7 (c)

JuxtConsult’s model to track the popularity and effectiveness of ads.

JuxtConsult / Syndicated Research/India AdTrack The Ad - Consumer Interaction Points

The Measures

The Ad Effectiveness Criteria

Recall

Noticeability

Was the ad noticed?

Connectivity

Did the ad appeal?

Originality/istinctiveness Likeability Identification

Relatability

Was the ad understood?

Message comprehension Message believability

Was the message relevant

Message relevance

Relevance

Brand preference

Did it help build brand preference?

Brand Differentiation Brand Inclination Brand Empathy Impact on Brand Image Action triggered

Courtesy: JuxtConsult

19.4 TESTING OTHER PROMOTIONAL TOOLS Our discussion so far has focused on advertising alone because maximum research has been done

as well. It is especially important to evaluate all promotional elements because of their increasing While most of the methods for measuring performance of other tools are the same as those used for advertising, some variances exist.

19.4.1 Testing the Effectiveness of Sales Promotion are also used to enhance brand equity. Thus, measuring sales promotion is complex because often both communication and sales effects have to be tested. Many times, it requires customized methods to measure sales promotions.

19.4.1.1 Testing Behavioural Measures simple measures such as number of coupons redeemed, number of new members who subscribed

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to a points-based scheme, number of participants in a contest, data collected through sweepstakes, extent of sales in discount period, repeat purchases post a bonus-pack scheme, number of customers who purchase a certain amount or quantity on their membership cards, number of trials generated or inquiries received in response to a sampling scheme, etc. Many of the sales-based measurement techniques discussed in the section on advertising can be used. Advanced mathematical models such as regression, correlation, and conjoint analysis, available as computer software, are used for plotting and interpreting data, as illustrated in the example below.

Preeta Vyas of IIM-A conducted a study in the FMCG category to examine the tradeoffs or relative importance of different attributes evaluated by consumers while responding to a sales promotion offer using conjoint design. Conjoint analysis involves the measurement of psychological judgements (such as consumer preferences), similarities or differences between choice alternatives. It is the study of the joint effects of various factors, and a technique used to determine how consumers trade off different attributes of a product. Consumer preferences for four different attributes were tested: brand type (international, national, local), medium of awareness (mass media, POP, word of mouth), promotion type (price-off vs. value-added), and timing of incentive (immediate vs. delayed). A structured questionnaire was designed and pre-tested on a sample of 10 housewives. 9 combinations using the 4 different attributes were arrived at and cards describing each alternative were presented to respondents to rate on a 5-point scale. A survey of 300 working and non-working housewives was conducted to test these 9 alternatives. The alternatives, along with their ratings, are given in Table 19.1. It can be seen that alternative 9 was the most popular. In order to check whether the means for the 9 concepts were the same or not, one-way ANOVA tests (analysis of variance) were also done on the options.42

TABLE 19.1

Conjoint Analysis Results Evaluate Sales Promotion Offers

Concepts*

Mean

Ranks

Standard deviation

B1C1

2.91

8

1.16

B1C2

3.47

3

1.06

BIC3

3.56

2

1.03

BIC4

3.02

7

1.11

BIC5

3.18

6

1.21

BIC6

3.38

4

1.15

BIC7

2.7

9

1.23

BIC8

3.22

5

1.2

BIC9

3.87

1

1.01

*BIC1: National brand, announcing a value added (free gift offer) promotion with delayed incentive through mass media (TV, Newspaper etc). BIC2: International brand announcing a price-off promotion with immediate incentive through mass media BIC3: National brand announcing through word of mouth, a price off promotion with immediate incentive

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BIC4: Local brand, announcing through word of mouth, a price-off offer with delayed incentive BIC5: Local brand; awareness created through mass media; of a price off offer with immediate incentive BIC6: Local brand announcing through point of purchase, a value added (free gift offer) with immediate incentive BIC7: Local brand, announcing through word of mouth, a price-off offer with delayed incentive BIC8: International brand announcing through word of mouth, a value added (free gift) offer, with immediate incentive BIC9: National brand announcing through point of purchase, a price-off offer, with immediate incentive

Although pretesting is not very commonly used in sales promotion because of the limited window available for its implementation and because of the criticality of the implementation time, by testing different versions of promotional programmes in different test markets. Often, testing is done with resellers as well since many of the promotional measures are directed at them. For instance, two different trade schemes may be test marketed in two different but identical cities and results compared to determine their performance. Concurrent testing and post-testing of behavioural measures can be done by comparing sales or other measures (inquiry, trial, etc.) before and after the this regard. Care should be taken while measuring sales levels before and after a programme, because often sales promotion can prepone or postpone sales of a period. For instance, let’s say the average

to 600 units. This means that the net result of promotion is nil, because people stocked up during the in a period when they are anticipating a promotional offer. In such cases, sales promotion has only shifted the timing of purchase. This may be acceptable if the objective is purely to shift the purchase timing of consumers to distract them from a competitive promotion. Measurement should thus take into consideration sales increase due to factors such as brand switching, stockpiling, etc. while calculating the net impact of promotions. Tracking studies can also be used for posttest measurement of behavioural data.

19.4.1.2 Testing Communication Measures Communication effects of sales promotions can also be tested using some of the same methods used for measuring advertising. The message, source and media elements of sales promotion such as copy, visuals, endorser, delivery tools, etc. can be tested to evaluate their impact on recognition, recall, comprehension, attitude and brand preference, etc. An additional parameter, which is popularly tested in sales promotion, is the perceived value of an offer. It is the worth that consumers attest in their minds to the value addition or cost reduction offered by a promotional programme vis-à-vis the risks in accepting the offer. For instance, although a toaster and a blender offered in a premium scheme may have the same retail price, consumers may perceive the blender to be of higher value.

sure of the worth of promotions. Test marketing, personal interviews, mail and telephone interviews, intercept interviews, instore observations, portfolio tests, consumer juries, attitude tests, etc. can be used for pretesting

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or post-testing communication effects. For instance, an intercept interview can be conducted to test how many details of a sales promotion programme (type of scheme, endorser, closing date, etc.) consumers remember. In the ballot method, a printed ballot can be mailed to consumers to take their vote regarding preferred sales promotional tool, preference for free gift, time of sales promotion, etc. In-store observations are particularly useful for concurrent testing of promotions executed at retail locations, such as distribution of free samples, free trials, point-of-purchase displays, etc.

19.4.2 Testing the Effectiveness of Publicity and Public Relations

to tag their impact on communication with experience and with an increase in sophisticated IMC measurement techniques.

provide newsworthy information to sources such as media or opinion leaders. While publicity and public relations are two different communication tools, we discuss their measurement together because often publicity is a result of public relations and the impact of both is similar.

19.4.2.1 Measuring Exposures Number of exposures is the easiest parameter to measure for publicity and public relations. Criteria such as total column inches of press coverage received, number of publications in which coverage was received, headlines and photographs score, volume of coverage against competition (called share of voice – Figure 19.8), minutes of airtime in broadcast media, combined circulation of print publications in which coverage was received, size of broadcast audience reached, estimated cost of buying space or time that was received for free, etc. are popular measures of exposure. Of course, measurements are for positive coverage alone. In addition to these, public relations can also measure exposures with audiences other than media, such as number of public relations events held, etc. In the recent times, with in-programme placements in movies, television programmes, etc. becoming common, communication managers are striving for ways to measure the impact of such planned exposures as well. The TAM S-Group has developed techniques to measure the impact of in-programme placements. Measuring exposures has several limitations. Firstly, while exposure gives an idea of inroads

actually read an article regarding the company’s new product published by a newspaper. Estimating size is of interest to communication managers because the goal of publicity and public relations is regarding the tonality of exposure, such as in Table 19.2, needs to be done.

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FIGURE 19.8

A sample Share of Voice analysis to measure exposures. Co. H 7%

Co. E 1% Co. I 0%

Co. 9%

Co. B 37% Co. F 9%

Co. A 9%

Co. C 10% Co. D 18%

TABLE 19.2

Analyzing tonality of corporate exposure

Year

Company

Beneficial%

Factual %

Adverse %

2005

Company A

48

54

1

Company B

33

70

10

2006

Company A

34

57

7

Company B

29

65

5

2007

Company A

27

62

4

Company B

40

59

7

Finally, estimating mere audience reach also does not give an idea regarding the audience’s mentioned communication and behavioural parameters also need to be evaluated in addition to message exposure.

19.4.2.2 Testing Communication Measures Publicity and public relations’ true impact should be measured not in terms of exposure alone

the number and kind of speaking and writing engagements that a company has with various industry forums and publications, number of appropriate awards won by a company, employee initiatives

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initiatives taken by a company, number and type of customer complaints received during a crisis, etc. Measures such as product awareness, interest, message comprehension, recall, attitude change, etc. are the communication-related effects of publicity and public relations. For instance, organizations can test as to how many people recall the message idea, how many are positively disposed towards the product after consuming the message, how many repeated the message to someone else, etc. For instance, after a press campaign by a soft drink manufacturer, 59% of exposed target audience may focus group discussions are popularly used for measuring communication-related factors.

19.4.2.3 Testing Behavioural Measures As mentioned earlier, consumer conversion is a behavioural measure of publicity and public relations

measuring IMC performance, communication managers are faced with the task of evaluating publicity and public relations’ behavioural impact. Usually, it is only by experience and experimentation that communication managers are able to isolate sales effects. For instance, in one year a company may run an advertising and sales promotion campaign, and in the next year, it may run the same advertising and sales promotion campaign, along with an additional public relations campaign. The effect of public relations can be noted by measuring the difference in sales in these two periods. Alternatively, communication managers may know from past experience that public relations contribute 10% to the total sales. They may use this information to calculate the return on public relations investment.

predict as to for how long or short a period this impact can be observed. Yet, modern methods and

on communication- and sales-related factors. The need to measure the effectiveness of media relations and media coverage in Eikona PR Track, a specialized Media Measurement and Evaluation unit of TAM Media Research. Eikona PR Track focuses on media editorial, content measurement and analysis across television, newspapers, magazines, Internet and trade journals. The

and this applies all the more in public relations, especially in press relations, because a 43

Based on the belief that it is the key messages contained in a media story that shape public perception and decide the future of a brand/company’s identity and mindshare,

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Eikona analyzes the quality and tonality of editorial stories appearing on a brand/ company by looking for key messages in the editorial. It performs this specialized task journalism, advertising, and industry analysis, and a technical partnership with Media Measurement Limited (MML), UK.44 The partnership analyzes key messages very key messages, and can even consider in the analysis nitty-gritties like the position of the newspaper that the item has appeared on, the way a person’s photograph faces a magazine (a picture looking inside the magazine is considered much more effective), etc. Thus they arrive at a PR plot pattern.45 To monitor and analyze PR editorial content on television, Eikona has tied up with Esha News Monitoring Service, an agency that is said to track 90 channels in India. According to a TAM press release: “To provide a perspective of news channels alone, if one just looks at the 25 news channels currently in India, a corporate has to monitor 20,000 hours of news every month. This calls for a dedicated and a specialized service.”46 Eikona’s analysis will not only enable the advertiser to equate ROIs on the various media coverage led initiatives but also examine the effectiveness of PR efforts as a whole – whether at a national, regional or local level.47

19.4.3 Testing the Effectiveness of Direct Marketing Direct marketing is a relatively easier communication tool to measure since it has a direct impact on behaviour in the short-term. Also, direct marketing through mail, telephone, etc. is easier to control and monitor than mass marketing communication.

19.4.3.1 Testing Behavioural Measures Inquiries and sales are the two most popular behavioural parameters measured in direct marketing. of prospects contacted, measures sales performance. In direct marketing, a conversion rate of 2 to 4% is considered average. In addition to response rate, average purchase per respondent, time etc. are also used in evaluating performance. Direct marketers maintain a database of customers and

direct marketing software are also available for record, measurement and analysis of data. Further, pretesting can also be done through test marketing.

19.4.3.2 Testing Communication Measures A direct marketing campaign is only as good as the message and offer contained in it. Elements such as comprehension, recall, change in attitude, etc. regarding a message and offer can be tested through survey-based methods. Opinion can be taken through the ballot method as to which promotional offer would be most attractive, or would have the highest perceived value. A split-run of alternative messages or offers can also be done to check effectiveness.

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19.4.4 Testing the Effectiveness of Personal Selling In Chapter 1, we discussed why marketing communication managers are interested in personal selling. Although its main function is sales, personal selling also performs communication-related functions such as creating awareness, interest, persuasion, etc. Like direct marketing, personal selling is also easy to measure due to its direct impact on behaviour. In addition to evaluating the behavioural and communication impact of personal selling, measurement of sales force performance is also done.

19.4.4.1 Testing Behavioural Measures Analysis of sales by comparing it with that of previous period is the most common. Other measures transaction, etc. can also be measured. As in direct marketing, the presence of a database makes evaluation easy and systematic.

19.4.4.2 Testing Communication Measures gifts, etc. can be tested in the same manner as followed with other promotional tools. In addition, the effectiveness of the communication skills of the sales force and their appeal as a source of message also need to be tested, as discussed in the next section.

19.4.4.3 Testing the Salesperson Although it is mainly the prerogative of the sales manager, measurement of the effectiveness of the salesperson is important to the communications manager also since it has a bearing on the communication managers is required to share the results of the evaluation. Cooperation is also required post evaluation in training of salespeople for better performance. Measuring sales volume for an individual salesperson is the simplest of all measures. Average sales can be assessed per customer, per transaction, per product, etc. and compared with previous period’s performance or with that of other salespersons. Differences in types of territories, sales accounts, etc. need to be taken into consideration. Other sales-related measures such as number of sales closed, new accounts opened, complaints received, etc. can also be employed. It is important to look at the of the situation. For instance, salesperson A may have opened more new accounts, but salesperson B may have received more sales per new customer. Communication managers are also interested in measuring the communication skills of salespeople, their use of communication material, and their appeal as a source of message. These can be measured through surveys of salespeople or as feedback from customers, the latter being more reliable. For instance, while salespeople may have agreed to using sales material, it may be learnt from customer

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19.4.5 Testing the Effectiveness of Online Communication As discussed in Chapter 14, there are several tools of online communication. The metrics involved in measuring the performance of online communication are quite unique to the media, as a lot can be tracked in real time. We’ll primarily discuss the testing of behavioural measures of online tools, as the communication measures are similar to the ones tested for advertising effectiveness.

19.4.5.1 Tracking Results on Websites With Internet, you can evaluate your objectives against performance in real time. If your objective is to deliver maximum impressions, your measurement metrics could be the number of people who visit your website and the duration for which they stay on it. On the other hand, if your objective is sales, you can evaluate number of sales inquiries, orders per thousand impressions, size of orders, or marketers can also evaluate cost per other actions like number of subscriptions, sales inquiries, leads generated, etc. For a detailed performance report, ask your technical team to give you an analysis of through which visitors visit, search terms used by the visitors before arriving at the site, duration of the visit, purchases made, errors occurring on the website, etc.

19.4.5.2 Tracking Results for Banners Online banner response is primarily measured in terms of impressions and clicks. When the viewer clicks on a banner (and he gets transported to another page or site), it results in a click-through. A click-through rate (CTR) is obtained by dividing the number of users who clicked on an ad on a web page by the number of times the ad was displayed or delivered. For example, if a banner is cost per click (CPC), wherein an agreed amount is paid for each clickthrough on your banner. Alternatively, it could be based on the number of ‘page-views’ of the banner page, called cost per (thousand) impressions (CPM), when the purpose of a banner is to build brand identity and not immediately lead to any action such as sale, registration, etc. advertisement success, marketers can also consider as a measure page views of the website advertised on the banner during the period a banner campaign is run vs. during an earlier period. It is an indirect indication of the number of people who could have seen the banner ad and visited the website. Cost per sale, which indicates how much banner advertising money is spent on making one sale, can also be an indicator of effectiveness.

19.4.5.3 Measuring the Response of Direct Emails Online email response is also primarily measured in terms of impressions and clicks. Impressions are used as a measure for brand-building campaigns whereas clicks are a yardstick for transaction-based links on the web pages. Marketers can also measure particular actions like the number of response

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tracked in the database to improve performance of future mailings. Internet-only offers are known to can give details about the number of emails transmitted, click-through rates, bounce-backs, opt-outs,

compare them with other promotional media as well as competitor promotions to determine the success of Internet direct mail. Another important element to track is the performance of e-lists. This can be determined by the response rates, number of bounce-backs and opt-outs, etc. When the list is very large and multiple them can be tracked separately to determine which selections are giving best results. Based on this, marketers can optimize lists to mail only to those that are yielding good results.

19.4.5.4 Measuring the Effectiveness of Social Media Tools Comparing social metrics with other marketing channels is one of the biggest challenges for marketers because social media measurement is still in a nascent stage, serving very different objectives from traditional communication tools. According to a 2011 study on social media conducted by Awareness Networks (Figure 19.9), the top measures of social media success are associated with social presence brands track social media in terms of new leads and sales for the enterprise, but those numbers are FIGURE 19.9

Top Social Marketing ROI Metrics

Social presence number of followers and fans

76%

67%

Traffic to website Social mentions across platforms

53%

Share of social conversations

40%

Lead generation

38%

26%

Sales

8%

Other 0

n = 297 10

20 40 50 30 60 What metrics do you use for your business?

70

80

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The impact of social media can thus be divided into two main categories – (a) impact on the brand and (b) impact on sales. To measure the impact on brand, the key areas to evaluate are social media exposure can be calculated by determining the number of people you reached with your message. This is done by tracking the number of followers tools to measure exposure, reach and more such as Twitalyzer and Google Analytics. Engagement is a variable representing the number of people who did ‘something’ with your message. Actions such as retweets, comments, brand mentions, forwards, and @replies indicate the levels of engagement of a website’s community. For instance, on Twitter, you could track the number of times your links were clicked, your message was retweeted, and your hashtag was used, whereas on YouTube you could assess the number of comments on your video, the number of times it was rated, the number of times it was shared, and the number of new subscribers. There are several tools for measuring engagement on different platforms of social media. For instance, on Twitter, TweetEffect your Twitter updates made people follow or leave you. While there are more factors that make people come or go, this could be an interesting indicator of the effect your tweet could have had on the world. is a softer metric that measures users’ attitude towards your brand – whether people’s engagement has been positive, neutral or negative FIGURE 19.10 Categories of Social Media in sentiment. While this requires human judgement, Measurement49 buzz widgets like Social Mention can help. Social Mention monitors 100+ social media properties and Exposure allows you to easily track and measure what people Visits, views, fans, followers are saying about you, your company, a new product, or any other topic in real-time by aggregating user generated content from across the universe into a Engagement single stream of information. Brand mentions, comments, retweets, forwards Brand exposure, engagement and positive and then sales. The impact on sales is an essential part of evaluating social media performance. Web analytics tools help measure conversion rates, customer acquisition costs, retention rates, clickthrough rates, online purchases, per user revenue, etc. Figure 19.10 shows a synopsis of the impact of social media on brand and sales.

Influence Positive, negative or neutral attitude

Leads/Sales Conversion rates, retention rates, online purchase

19.5 EVALUATING UNCONVENTIONAL PROMOTIONAL TOOLS AND IMC The techniques mentioned for evaluating advertising and conventional promotional tools can also be used for measuring the non-traditional tools such as sponsorships, trade shows, event marketing, point-of-purchase, packaging, etc. For instance, events are popularly considered a part of public effectiveness of packaging and point-of-purchase material. As the area of measurement gains more

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promotional element.

conducted by Nielsen on Wal-Mart in-store TV advertising in 2006. The objective of the study was to understand viewing of in-store TV screens, recall of commercials telecast, and the likeability of the information provided on the screens. For the same, Nielsen took a sample of 3,851 store visitors across 56 different Wal-Mart stores and gauged average footfalls in a four week period across different dayparts. The methodology employed was of interviewing people at exit points to understand advertising impact while it was still fresh in the minds of consumers. The study revealed interesting insights, such as a direct relationship between informative content of the screens and the time spent viewing them. It also indicated to what extent this medium impacted people’s attitudes and behaviour. For instance, over 70% of the people agreed that TV screens were an easy way to learn about new products, 65% recalled the brands advertised, 62% were positively disposed towards the advertised had planned to buy.50

For a few years now, TAM has been working to measure soft brand advertising on television, such as product placements and in-programme brand exposures. Though a complex and cumbersome process, TAM has pioneered a unique system of tracking soft advertising through an in-depth reporting of various parameters to monitor the number, quality and duration of brand mentions or visibility. This information can also be fused with peoplemeter viewership data to generate reach and Table 19.3 shows TAM’s evaluation of three episodes of a 60-minute television programme related to health, called Morepen Tango on Star Plus. Morepen Labs is a noted pharmaceutical company in the country that had sponsored the show and featured a lot of examples of product placement within the show itself. TABLE 19.3

Soft Advertising by Morepen Labs in Morepen Tango

What was featured?

Frequency

Average frequency per episode

Non-TVC GRPs

9

3

30

Dr. Morepen logo or symbol

134

45

155

Popup of Dr. Morepen

39

13

-

Product pack

5

2

145

Voice of host/personality

30

10

50

3

1

10

220

73

Email address

Website that includes brand name Grand total Source: TAM AdEx, C&S 4+, April 9-11, 2003

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TAM fuses the soft advertising data with the peoplemeter data and reports how many people

TAM reports not only the frequency of exposure of brands, but also the duration of each exposure. Brands with higher duration per exposure are considered to have a greater impact. Further, the quality of each exposure is measured in terms of prominence levels. Prominence levels are determined by factors such as area occupied by the logo on television screen, angle of the exposed brand, focus on or off logo, etc. In Table 19.4, TAM depicts the evaluation of three banner placement locations on a cricket ground during one-day matches. It can be seen that sight-screen banners have the highest prominence rates, and hence might be a good position to invest in if the prices of all three banner positions are the same. The evaluation helps an advertiser to decide the property in which he should invest. TABLE 19.4

Exposures by Prominence Levels – One-Day Matches (in %)

Position

Not Prominent

Prominent

Very Prominent

Ground billboard

10

80

9

Pavilion banner

5

82

13

Sight-screen banner

0

68

32

This unique tracking of soft advertising by TAM has been possible by frame-by-frame capture of all branded elements during a programme. Currently, TAM monitors sporting events, game shows, personality or news anchor performance, brand endorsement in movies, etc. As brands come out of ad breaks and invade the programming space, this kind of research by TAM will prove to be very useful.51 A major lacuna that exists in the space of measurement is the lack of a single measure that can capture the effectiveness of all promotional elements. For instance, tracking studies can measure advertising and sales promotion, but cannot be applied for events or sponsorships. As integration in communication gains more grounds, the need for evaluating an entire promotional campaign jointly, as well as measuring the impact of individual promotional tools, will lead to more research in this area. While currently some tools are available for testing joint promotional impact, they are still in their nascent stage in terms of producing data to evaluate various tools independently and collectively.

The TAM S-Group, a specialist strategy group within TAM Media Research, looks at advanced measurement techniques within the realm of media and broadcast. Its primary role is to drive new ideas into this sector by taking up emerging sciences and developing analysis tools for better understanding of these concepts. Amongst the key breakthroughs that it has achieved in the last two years are in the areas of in-programme product placements, television planning optimizers, broadcast ROI, connectivity and distribution effects on television channels and programme promotions.52

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Another research tool, which measures the effectiveness of various contacts (media or touch points) in a category using a common method and a common unit, is the MCA™ (Market Contact Audit), developed by the company Integrated Marketing Communication to connect with consumers through two measures. It measures the effectiveness of

in the category and market based on how well consumers recall encountering various brands through a touch point. It performs this comparison based on the belief that some brands execute better than others. The use of this research tool helps marketing communication managers to understand which are the key contacts that drive the category, which contact points are working better for the brand, which communication channels have the highest impact on purchase decision, and which are the ones where money should be saved. Thus, communication and media spends can be optimized and prioritized. MCA is useful because it analyzes the entire communication portfolio in a of various activities and communication channels, and thus helps making promotion accountable. The company claims that more than 65% of the top 100 global brands are working, piloting or scoping MCA-based solutions.53 Yet another test is the PubliTestsm, an advertising evaluation system developed by Research International. The test does not use a single measure to predict an ad’s effectiveness as it is based on the premise that different measures will be relevant depending upon what the ad is trying to achieve. The test builds on standard measures such as memorability, communication of the brand message, likeability, etc. Then, using Cognitive Response Analysis (CRAsm), an integral component of PubliTestsm, the test looks at how consumers “process” the advertising message to determine its relevance to them. It can reveal the synergy between different elements in a mixed media campaign as well as the incremental effects of each medium on overall communication. The press, poster, etc. and has also been adapted to test quantitatively a series of different 54

Summary This chapter focuses on research as a means of evaluating the effectiveness of advertising and communication campaigns. In the debate on whether communication should be tested or not, on communication investment, provides feedback regarding the performance of various strategic alternatives, gives a basis for future planning, and helps ascertain if communication objectives are achieved. The effectiveness of various communication and behavioural factors of communication such as message, media, impact on purchase behaviour, etc. can be measured through research. Campaigns can be evaluated before their implementation through pretests, while they are running through concurrent tests, and after their implementation through posttests. Testing can be done

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techniques are developed to measure communication. tools and techniques are available to test measures such as recognition, recall, impact on attitude, comprehension, purchase behaviour, etc. Usually, behavioural measures are suitable for measuring sales promotion, direct marketing or personal selling, whereas communication measures are appropriate for evaluating advertising, publicity or public relations. Good research is a result of sound objectives, appropriate testing both before and after campaign implementation, use of a number of research methods, and adherence to principles of good research design. A major lacuna that exists in the space of measurement is the lack of a single measure that can capture the effectiveness of all promotional elements. While currently some tools are available for testing joint promotional impact, they are still in their nascent stage.

Exercise 2. To what extent do you think the physiological measures can be relied on for evaluating the

3. List all the evaluation tools and techniques discussed in this chapter and mark whether they can be used for measuring communication impact, behavioural impact, or both. Also indicate the tests (pretests, concurrent tests and posttests) for which these tools and techniques can be used.

Suggested Class Projects 1. Find out examples of campaigns that failed because of lack of pre-launch research. What went

their clients as a percentage of the total communication expense.

Critical Thinking Questions after their implementation. Does this suggest that research cannot be taken as a sacrosanct indicator

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Endnotes www.indiantelevision.com www.exchange4media.com 3. Muneer Muhamed, “Perfecting your new ad campaign,” June 20, 2000, www.indiainfoline.com www.exchange4media. com www. indiantelevision.com 6. www.mudra.com 7. Jasmeen Duggal, Interview of Prahlad Kakkar, CEO, Genesis, 2007, www.exchange4media.com 13, 2003, www.agencyfaqs.com www.indiantelevision.com 10. www.mudra.com 2005, www.indiantelevision.com www.indiantelevision.com 13. www.mudra.com Percept Picture Company, Leadership Series, April 21, 2006, www.indiantelevision.com www. agencyfaqs.com 13, 2003, www.agencyfaqs.com www. agencyfaqs.com www. agencyfaqs.com www.tns-global.co.kr The Times of India, December 7, 2003 www.indiantelevision.com www.agencyfaqs.com 23. Young, Charles E., The Advertising Research Handbook 24. www.research-int.co.zw 25. www.zeenews.com The Hindu Business Line, February 21, 2002, www.blonnet.com

Media2india launches Ad Gauge,” February 26, 2001, www.agencyfaqs.com 31. “AC Nielsen launches business unit for loyalty marketing,” July 31, 2006, www.agencyfaqs.com 32. Young, Charles E., The Advertising Research Handbook Journal of Advertising Research www.rediff.com

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experiments utilizing recall and recognition measures,” Marketing Letters, www.indiantelevision.com www. allbusiness.com Journal of Advertising Research, 22, (1) Media Opinion, www.agencyfaqs.com 2007, www.agencyfaqs.com 41. www.juxtconsult.com

Ahmedabad www.indiantelevision.com 44. www.tamindia.com www.indiantelevision.com 46. “TAM Media wing ties up with news monitoring agency,” The Hindu Business Line, May 4, 2005 www.televisionpoint.com www.awarenessnetworks.com 2010, www.socialmediaexaminer.com 2007, www.agencyfaqs.com including product placement and in-program brand exposures,” TAM 52. www.tamindia.com AudienceMatters, November 29, 2007 54. www.research-int.co.zw

Chapter 20 The Legal and Ethical Environments of Promotions Chapter Objectives

All advertising is inherently unethical. That’s how you sell things. – A New York Attorney

In Perspective

Advertising is a non-moral force, like electricity, which not only illuminates but also electrocutes. Its worth to civilization depends upon how it is used. – J. Walter Thompson Copies don’t invalidate either ad; they just dilute both. – Oliver Caporn

Who Owns the Term ‘Sugar Free’? Amul had launched Amul Sugar Free Probiotics Frozen Dessert on January 22, 2007. Soon after, on April 2, 2007, the pharmaceutical company Zydus Cadila the manufacturer of Amul Amul’s new product. Zydus, the brand leader in

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Advertising and Integrated Marketing Communications

Cadila Amul Zydus’ The Advertising Standards Council of India’s Code for Self-Regulation in Advertising

The Trade Marks Act, 1999

Cadila Ordinarily The Trademark Act

Cadila’s Cadila’s

1

Cadila

2

Amul’s

Advertising has been accused of many crimes – social, economic, and moral. By being a dream merchant it gives people hopes that might only be exaggerated, through promises and deals it promotes conspicuous consumption, and it even misleads people by causing them to believe what may not be true. Despite all its ills, the fact remains that advertising cannot be totally ‘wished away’, because it has many a positive facet too. However, it can be regulated to ensure that the ill effects are reduced to the minimum. While Western countries have many rigorous laws governing advertising, India too has adopted these provisions by making necessary changes. In India, the laws and regulations regarding advertising are governed by various acts, laws and statutes, as well as self-regulatory or ethical codes of conduct. Note that the various acts outline the legal framework within which the advertising industry is allowed to operate whereas the codes of conduct are only self-regulatory in nature and set an ethical backdrop that guide the industry in the way it is expected to operate. All those engaged in advertising should

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be familiar with the legislation affecting advertising in India, particularly the following acts and the rules framed under them, as well as the various self-regulatory codes. Further note that the acts and codes mentioned below are only illustrative and not exhaustive.

20.1 LEGISLATION AFFECTING ADVERTISING Following are some important acts that set the legal boundaries within which advertisers are allowed to operate. Violation of the acts or the rules thereof can lead to penalties mentioned in the acts.

20.1.1 The Indian Penal Code (IPC), 1860 ∑ Sections 292 and 293 of IPC prohibit the dissemination of any obscene matter. ∑ Article 377 of IPC declares anal and non-procreative sex “against the order of nature” and a crime even if undertaken in private by consenting adults. By implication, it cannot be represented in advertising. ∑ IPC also prohibits the publication of matters pertaining to unauthorized lotteries. ∑ It further forbids the publication of appeals using national symbols for furthering the prospects of a candidate at election. Thus political campaigns cannot use national symbols for advertising.

20.1.2 Drugs and Cosmetics Act, 1940 An Act to regulate the import, manufacture, distribution and sale of drugs and cosmetics: ∑ No drugs or cosmetics shall be misbranded by failing to label it in a prescribed manner or by making false or misleading claims on the packaging or advertising. ∑ Drugs or cosmetics shall not be spurious such as by branding them under the name of other drugs, by plain or conspicuous packaging that resembles that of other drugs, etc. ∑ Patent or propriety medicines must include in their labeling a list of active ingredients in the drug and their quantities. ∑ No drugs shall be imported unless they are packed and labeled under the rules of this Act.

20.1.3 Drugs Control Act, 1950 This Act lays down guidelines and rules for the control of sale, supply and distribution of the drugs.

20.1.4 The Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954 This is an Act to control the advertisements of drugs in certain cases, and to prohibit the advertisements for remedies alleged to possess magic qualities. The Act states that unless prescribed by registered medical practitioners or after consultation with the Drugs and Cosmetics Act, 1940, no advertiser shall publish any advertisement referring to any drug that is used for miscarriage in a woman, maintenance or improvement of sexual capacity, correction of menstrual disorder in women, and the diagnosis,

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Advertising and Integrated Marketing Communications

cure, mitigation, treatment or prevention of any disease. However, to what extent do you think this law is actually observed or enforced, especially in rural areas?

20.1.5 The Young Persons (Harmful Publications) Act, 1956 The Act prohibits distribution of publications that may be harmful to persons under the age of told portraying criminal offences, acts of violence or cruelty, incidents of repulsive or horrible nature, in such a way that the publication as a whole tends to corrupt a child into whose hands it might fall, whether by inciting or encouraging the child to commit offences or acts of violence or cruelty, or in any other manner. Advertising a harmful publication is punishable by up to six months’ imprisonment,

20.1.6 The Indecent Representation of Women (Prohibition) Act, 1986 This is an Act to prohibit indecent representation of women through advertisements or in publications, writings, paintings, photographs, or in any other manner. What constitutes “indecent representation” is of course subjective and to be determined based on the time period and culture of a place. However, the act prescribes general legislative action to check the growing commoditization of women and to see to it that a woman or her body is not represented in a derogatory manner.

20.1.7 The Emblems and Names (Prevention of Improper Use) Act, 1950 This Act forbids any private party or for commercial purposes the use of certain national names and emblems such as the Indian National Flag, government seals and coat-of-arms, certain government buildings, pictorial representation of Mahatma Gandhi, Chhatrapati Shivaji, the President and the Prime Minister, etc. For certain special cases, permission may be sought beforehand.

20.1.8 The Prevention of Insults to the National Honour Act, 1971 The Act forbids bringing into contempt the National Flag or the Constitution of India in any manner. On 23rd January 2004, the Supreme Court made an amendment to this act that allows Indians to respectful manner. This decision was thanks to a case contested and won by an industrialist Naveen Jindal.

20.1.9 The Prize Competitions Act, 1955 This Act controls and regulates prize competitions and prohibits the publication of matter with unauthorized prize competitions.

20.1.10 The Prize Chits and Money Circulation Schemes (Banning) Act, 1978 An Act to ban the promotion or conduct of prize chits and money circulation schemes, except for certain schemes offered by the government, banking companies, educational institutions, etc.

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20.1.11 The Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Act, 1992 This Act prohibits the promotion of infant milk substitutes, feeding bottles and infant foods, since the government has taken on itself the task of promoting and protecting breastfeeding, a practice that was slowly waning with the introduction of formula milk and related products. Promotion of infant foods has been banned on TV, radio, newspapers or any other form of mass media from January 1, 2004 to ensure that no impression is given that feeding of these products is equivalent to, or better than, breastfeeding. The government imposed this ban after it realized that more and more mothers babies. The Act has the following provisions: 1. It bans all advertisements of infant milk substitutes and feeding bottles. 2. It forbids display of posters in hospitals or other healthcare facilities. 3. It prohibits pictures of an infant or a woman on the product container or the label. 4. It makes it mandatory for every pack to include in capitals “MOTHER’S MILK IS BEST FOR YOUR BABY,” and that the tinned food should be used on the advice of a health practitioner. 5. No impression should be given that feeding of these products is equivalent to or better than breast milk. No words like “humanised” or “maternalised” can be used on the tin. inducements to healthcare professionals or sales agents for the purpose of promoting the use of these products.3

20.1.12 Indian Copyright Act, 1957 Copyright is a form of intellectual property, which gives the creator of an original work exclusive rights for a certain time period in relation to that work, including its publication, distribution and adaptation; after which time the work is said to enter the public domain. It is a right given by the law and sound recordings. In fact, it is a bundle of rights including, inter alia, rights of reproduction, communication to the public, adaptation and translation of the work. There could be slight variations in the composition of the rights depending on the work.4 Advertisements and other kinds of creative communication are also considered intellectual property, and hence protected under the Copyright Act. Copyrights in advertisements or photos taken for ads usually vest with the creative agencies till they are sold to the client, after which the rights get transferred to the latter. Copyright continues for 60 years from the beginning of the calendar year following the year in which the copyright holder dies. After this, the work comes into public domain and can be used and adapted as needed. Copyright registered in any design is valid till the design has been reproduced any other person. For a longer protection on designs, they should be registered under The Designs Act, 1911. Copyright is infringed if any person violates the rights of the copyright owner without license

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material without license or permission. However, subject to certain conditions, a fair use for research, study, criticism, review and news reporting, as well as use of works in library, schools and in the

20.1.13 Trade Marks Act, 1999 The Trade and Merchandise Marks Act, 1958 has been now repealed and replaced by the new Trade Marks Act, 1999, which is in force since 15th the mark of identity that can be protected by law; while a trademark means a mark capable of being represented graphically and which is capable of distinguishing the products of one person from those of others, the new Act now also covers the shape of goods, packaging and combination of product or container, or any other symbol used to identify and distinguish products. In addition to distinguishing and identifying products, trademarks are important brand marks that also help in promoting products. They are one of the prime tools for building brand identity. For example, the two yellow arches spelling the M of McDonald’s, the swoosh of Nike, the pink wavy triangles and the pug puppy of Hutch, or the Amul Butter moppet, are all examples of trademarks that build the identity and equity of the brands they serve. A trademark does not have to be registered for use but registration under the Trademarks Act confers exclusive rights on the owner to use the trademark and obtain relief in respect of infringement on trademark. A trademark does not give its holder uncontrolled monopoly on the word, phrase, shape or color as such. Only commercial use of the trademark for those classes of products can be restricted by the trademark holder. Non-commercial use of a trademark cannot be prevented under this Act, except if that use harms the trademark’s distinctiveness. Trademarks can be registered for 10 years that the law does not register marks which are not capable of differentiating the products of a seller, are manufacturing details or instructions on packs, have become customary in the current language or established practices of trade, are confusing or deceiving, may hurt religious sentiments, are obscene, are prohibited for use under The Emblems and Names (Prevention of Improper Use) Act, 1950, are similar to other trademarks registered earlier, etc. Further, marks that are purely descriptive words (such as those that describe the qualities of goods like superb, perfect, sharp, etc.), laudatory expressions, common surnames, geographical names, etc. do not make a formidable trademark, although in a benchmark judgement the court has recognized the celebrity status of Daler Mehndi’s personal name as having A trademark is said to be infringed when it is used by a person other than the proprietor on packaging, in advertising, on products, etc.; when a mark identical to the registered trademark is used and such use may cause confusion among people, give the unauthorized user an unfair advantage, or be detrimental to the distinctive character or repute of the registered trademark; etc. A registered trademark can also be infringed by any advertising of that trademark if such advertising: 1. takes unfair advantage of the trademark or violates professional standards of honesty, 2. is detrimental to the trademark’s distinctive character, or 3. is against the reputation of the trademark. A trademark is not just infringed by its visual representation but also by its spoken use or reference.

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Note that businesses do have some rights in respect of their trademarks even without registration. A case of ‘passing off ’ arises in trademark law when the rights of an unregistered trademark are misappropriated by any party. The principle of passing off states that no one is entitled to pass off his goods as those of another since it damages the goodwill of another. In a passing off action, the defendant’s goods need not be the same; it may be allied or even different.

Lacoste and Crocodile International Lacoste’s

Crocodile’s Crocodile

International Cartelo Lacoste Lacoste Lacoste Crocodile International

Search on the Internet and review the logo of a company that has a product called Crosswire, which is a Limewire agent for the Mac. Doesn’t it look deceptively similar to the logo of British Petroleum? Logo theft is indeed an international phenomenon.

20.1.14 The Pharmacy Act, 1948 The Pharmacy Act, 1948 is an Act to regulate the profession of pharmacy and prescribe the prescription medicines. The All India Radio code exhorts advertisers to be familiar with this Act, among others.

20.1.15 The Monopolies and Restrictive Trade Practices (MRTP) Act, 1984 The MRTP act served the dual purposes of a) preventing monopolistic and restrictive trade practices in the economy, and b) preventing unfair trade practices. ‘Unfair trade practices’ covered under their domain various practices and representations that could be effected by advertising and promotion, and termed unfair. However, the MRTP Act was later repealed and replaced by The Competition Act, 2002. Nonetheless, the latter was not burdened with the subject of ‘unfair trade practices,’ which was given effect under The Consumer Protection Act, 1986 (discussed below).

Maruti Udyog Ltd Hyundai Hyundai

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Hyundai Maruti

Kiwi Liquid Wax Polish Kiwi Cherry Blossom, another popular with Cherry Blossom

20.1.16 The Consumer Protection Act, 1986 This Act provides for the better protection of the interests of consumers and for the purpose establishes consumer councils for the settlement of consumers’ disputes. Under this Act, consumers, their representatives, voluntary consumer organizations, and the government can complain against unfair trade practices, defective or hazardous products, etc. Thus the Act serves two purposes; one, inexpensive and speedy remedy for redressal of grievances of consumers. It is important to note that the Act covers under its ambit ‘unfair trade practices,’ earlier a domain of the MRTP Act, which includes, among other things, the following activities pertaining to advertising and promotions: ∑ Making false or misleading representations about the standard, quality, quantity, grade, composition, model, etc. of a product; ∑ Representing old, rebuilt, secondhand goods as new; ∑ they do not have; ∑ Giving guarantee or warrantee that are not based on an adequate or proper tests, and that are not carried out as per the promises made; ∑ Misleading the public regarding the price of a product; ∑ Publishing advertisements regarding the sale of products which are not actually offered for sale at the mentioned bargain price, offer period, quantity, etc.; ∑ Misrepresenting the public regarding the offer of gifts, prizes, etc., or creating an impression that something is being given or offered for free when it is fully or partly covered by the amount charged in the transaction as a whole; ∑ Conducting any contest, lottery, game of chance or skill, for the purpose of promoting a product; ∑ with the results to be published prominently in the same newspapers in which the scheme was originally advertised; ∑ Giving false or misleading facts disparaging the products of another person.

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20.1.17 Broadcasting Services Regulation Bill, 2007 The Broadcasting Services Regulation Bill, 2006, which came to public notice in July of that year, was widely criticized for draconian provisions that gave sweeping powers to the government and its representatives to cripple the media through pre-censorship. The government then proposed the new Broadcasting Services Regulation Bill, 2007 along with an accompanying Content Code or Self-Regulation Guidelines for the broadcasting sector with a view to regulate the content of broadcasting services in India. Currently, the government has only issued guidelines for regulating public broadcasters like the AIR and Doordarshan. However, with the new Bill, the government will bring the entire broadcasting sector under its ambit. Under this Act, the government proposes to establish an independent authority known as the Broadcast Regulatory Authority of India for regulating broadcasting services. Also, the new Content Code, which when enacted, will provide for pre-censorship and categorization of advertising and programming content. In other words, the broadcasters are required to self-certify and approve all ads before airing them on their network. Thus, an ad that falls under the ‘A’ or ‘adult’ category of programming as per the Content Code, can be broadcast only from 11 pm to 4 am. Until the Advertising Code prescribed under the Cable Television Network Rules, 1994. Among other things, the Act states that the share of public service or social messaging through advertisements and other promotions shall not be less than 10% of the total commercial time of a channel broadcast every week.7 The media is still not in agreement with the 2007 Bill and has asked the Government to stall its passing, while the media bodies undertake to draft their own guidelines for self-regulation.

20.1.18 The Cable Television Networks (Regulation) Act, 1995 The Ministry of Information & Broadcasting, a government regulatory body, formulates various acts and rules for regulating commercial broadcasting, some of which concern advertising. The Cable Television Networks (Regulation) Act, 1995 was passed by the Centre with a view to regulating the operators of cable television networks, bringing uniformity in their operations, avoiding undesirable programmes and enhancing optimal exploitation of the cable technology. The Act was amended through the Cable Television Networks (Regulation) Amendment Act, 2002. Under the Act, the Central Government is entitled to make rules regarding the cable operator registration fee, the operator from transmitting any programme or channel if it is not in conformity with the prescribed Programme or Advertisement Codes of the Act. These Codes are similar to AIR and Doordarshan’s general Code for Commercial Broadcasting (discussed in the self-regulation section) in matters covering decency; morality; racial, religious and statutory decorum; honesty and factual representation; treatment of women; care regarding impact on children; prohibition on promotion of certain products like liquor, alcohol; etc. However, the Code provides that products that use the brand name or logo of prohibited products may be advertised in a restrictive manner. In addition, the Code also states that all advertisements should be clearly distinguishable from the programme and should not in any manner interfere with the programme viz., use of lower part of screen to carry captions, static or moving alongside the programme, should not overly hinder the viewing of the programme.

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20.1.19 Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 In India, advertising tobacco products is banned in public interest. This Act prohibits all direct and indirect advertisements that suggest or promote the use of tobacco products. Advertisements include transit ads, etc. However, display of tobacco products on packs, or in shops or warehouses selling or stocking tobacco products is allowed. The Act also forbids selling of tobacco products to minors or within a 100-yard radius of any educational institution. On the other hand, ads that rebuke the consumption of harmful tobacco are often issued in public interest by hospitals and healthcare providers. Figures 20.1a and 20.1b were issued to commemorate the World Anti-Tobacco Day. FIGURE 20.1 (a)

Public interest ads issued to commemorate the world Anti-Tobacco Day.

Courtesy: S.A.L. Reproduced with permission.

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FIGURE 20.1 (b)

Courtesy: Intas, One Advertising. Reproduced with permission.

20.1.20 Prevention of Cruelty to Animals Act, 1960 and Other Animal Welfare Acts There are several regulations in India and abroad to protect the rights and ensure the welfare of animals. Some of these Acts also have a bearing on advertising when ads make use of animals. The Prevention of Cruelty to Animals Act, 1960 lists various acts that tantamount to cruelty against animals. E.g. beating, kicking, over-riding, over-loading, torturing, causing unnecessary pain or suffering to animals, etc. Animals cannot be abused thus while using them as actors in ads. Further, advertisers

Board of India (AWBI), certifying that the said advertisement has been made in compliance with the Performing Animals (Registration) Rules, 2001 framed under The Prevention of Cruelty to Animals Act, 1960. animal performances. It is also directed that the performing animals should not be subjected to any cruelty, failing which the AWBI would initiate legal proceedings. The Performing Animals Rules, 1973 and The Performing Animals (Registration) Rules, 2001 restrict the exhibition and training of performing animals, unless the person interested in exhibiting and training the animal is registered in accordance

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with provisions of the Act. The Wild Life Protection Act of 1972 also prohibits the caging of birds, among other things. Several advertisers such as Vodafone and Alpenlibe have gotten into trouble for their use of animals in ads. Vodafone had received a show cause notice from the AWBI for being negligent towards the health of the pug in the ad where the pug is shown running behind a school bus in the ‘Happy to help’ campaign. On the other hand, an Alpenlibe ad, although it used an animated crocodile, showed the actress Kajol feeding the crocodile in captivity (zoo), an act forbidden under The Wild Life Protection Act, 1972. Axis Bank Wildlife (Protection) Act, 1972.

. Performing Animals (Registration) Rules, 2001.

20.2 SELF-REGULATORY CODES OF CONDUCT IN ADVERTISING Self-regulation refers to the advertising industry voluntarily regulating itself without intervention from external bodies or the law. The single most important self-regulatory body in India is the Advertising Standards Council of India (ASCI), which has adopted a code of conduct that guides advertisers in their commitment to honest advertising and fair competition in the marketplace. Self-regulation protects the interests of consumers and advertisers both; it enhances consumer belief in advertising by reducing the extent of false, misleading and offensive advertising, and saves advertisers from the hassles of costly litigation or opportunities lost. Self-regulation, when earnestly adopted, reduces the need for mandatory statutory regulations and procedures. Following are some self-regulatory Codes of Conduct adopted by various associations for guiding the conduct of their members.

20.2.1 The Advertising Standards Council of India (ASCI) Code for SelfRegulation in Advertising9 Set up in 1985, ASCI is the sole voluntary self-regulatory council of India sponsored by advertisers, Advertisers, The Advertising Agencies Association of India, and The Indian Newspapers Society came together and took the initiative to form ASCI. As discussed in Chapter 4, ASCI’s overarching of Conduct for self-regulation in advertising, which it propagates amongst advertisers, agencies,

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media and others involved in the creation and distribution of advertising. The Code applies to all these bodies and professionals. ASCI has based its Code on the Codes prepared and published by the International Chamber of Commerce (ICC), a world business organization that forms rules, standards and policies for self-regulation regarding various business issues. The ASCI Code covers the content of advertisements and packaging, Indian or foreign-made, which are directed to consumers in India. However, it does not regulate the sale of products, although the products themselves may be found offensive by some people. While this Code overrides all ethical standards in advertising laid down by individual organizations, ASCI does not formulate rules for organizations, applying to their own particular trade or industry. In the course of this chapter, we complements other laws and statues relating to promotions and does not replace them. ASCI encourages consumers and industry to complain against advertising which may be false, misleading, indecent, illegal, leading to unsafe practices, or unfair to competition, and consequently in contravention of the ASCI Code (Figure 20.2). ASCI’s Consumer Complaints Council (CCC) investigates complaints received from the general public and ASCI’s Board, and recommends action to be taken regarding the offending advertisement. By and large, the advertising fraternity respects the suggestions given by CCC in respect of advertisements upheld. Over 80% of such ads are either not carry such ads. On August 2, 2006, ASCI got legal recognition as the Ministry of Information and Broadcasting Code. The amendment made in the Cable Television Networks (Amendment) Rules, 2006, now states: “No advertisement which violates the Code for Self-Regulation in advertising, as adopted by the Advertising Standards Council of India (ASCI), Mumbai, for public exhibition in India, from time to time, shall be carried in the cable service.” While this is a positive step ahead, the powers of ASCI are nothing compared to those of similar bodies in developed countries, which adopt various modes to ensure compliance – pre-vetting of ads, advice, monitoring, issue of corrective ads, funding of self-regulatory mechanisms, imposition of sanctions, etc. For example, in UK, 25 categories of ads such as health-related ads, religious ads, alcohol ads, child voiceover ads, etc. are to be pre-vetted. And all television and radio ads are prevetted regardless of the category. In many countries, the self-regulatory body is authorized to initiate suo moto legal action against false and misleading ads. Thus sanctions can be imposed against erring advertisers in countries such as UK, Australia, France, Belgium, Germany, Greece, Hungary, Portugal, Slovenia, etc.10 As opposed to this, ASCI does not have as much teeth since its Code is only self-regulatory in suo moto but can complain to the Information and Broadcasting (I&B) Ministry, which in turn, would take legal action according to the Cable Television Networks Act. While this Act applies only to cable operators and broadcasters, nailing print and web offenders is still out-of-bounds for ASCI. Another deterrent is that the consumer movement is India is still in its nascent stage, which means few consumers complain, and by the time complaints are made by consumers, notices issued by ASCI, and action taken by advertisers, much of the damage already gets done. For example, according to

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FIGURE 20.2

ASCI encourages consumers and businesses to complain against advertising in contravention of its code.

Source: www.ascionline.org

ASCI, the entire process takes 9 to 11 weeks, enough time for a campaign to gain visibility. Thus to increase awareness of self-regulation in advertising, ASCI has run a print and audio-visual campaign that was created and carried free of charge by its member advertisers and media houses. Its television campaign titled ‘postman’ featured 3 ads that highlighted how letters from alert viewers could stop

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ads that incited kids into dangerous tricks, made false promises or were vulgar. Figure 20.3 shows a print ad by ASCI that warns consumers against ads that make false claims. As a result of this campaign, the number of complaints by consumers rose by 75%. Recently, ASCI has even boosted its presence on social media by creating a Facebook ASCI, invites consumer opinions on recent ads, and enables consumers to complain against erring ads. From 2007, ASCI became a member of the European Advertising Standards Alliance (EASA) regulation internationally. Inspired by EASA’s best practices, the ASCI Board has decided to launch a

wider advertising industry by avoiding complaints and promoting social and consumer responsibility. Advertisers, agencies and media are encouraged to seek copy advice, and ASCI would provide it to its members free of cost. Although it is non-binding to the advertiser, they are likely to rely on it when spending large amounts of money.11 The standards of conduct laid down by ASCI in the following four Chapters of its Code are the minimum standards of acceptability. FIGURE 20.3

A print ad by ASCI that warns consumers against ads that make false claims

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Advertising and Integrated Marketing Communications

Chapter I (Deals with truthfulness and honesty of representations and claims) 1 Advertisements must be truthful and honest. All objective information, claims and comparisons should be capable of substantiation.

Promise

Promise Promise

Promise

2. If claims are based on research, the source and date of this should be indicated in the advertisement. permission, if such a reference gives an undue advantage to the product or ridicules or disreputes the party. 4. Advertisers cannot mislead consumers by implications, omissions, ambiguity or exaggeration.

Inox

Inox

Inox

5. Advertisements shall not abuse the trust of consumers or exploit their lack of experience or knowledge. They cannot contain any claim so exaggerated as to lead to grave or widespread disappointment in the minds of consumers. For example: a. Products shall not be described as ‘free’ where there is any direct cost to the consumer other than the actual cost of any delivery, freight, or postage. If such costs are payable by the consumer, a clear statement about it shall be made in the advertisement. product offered for purchase with the advertised incentive should not be more than the prevalent price of the product without the advertised incentive.

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as Rs. Y,” are not acceptable if there is a likelihood of the consumer being misled either d. Special care and restraint has to be exercised in advertisements addressed to those suffering from weakness, any real or perceived inadequacy of any physical attributes such as height or bust development, obesity, illness, impotence, infertility, baldness and the like, to ensure that representations, directly or by implication, do not exceed generally accepted e. Advertisements inviting the public to invest money shall not contain misleading statements in respect of the security offered, rates of return, or terms of amortization. All conditions and assumptions must be clearly indicated in the advertisement. f. Advertisements inviting the public to take part in lotteries or prize competitions permitted under law, or which may give gifts, shall state clearly all conditions to give the consumer a true and fair view of their prospects in such activities. Further, advertisers shall make adequate provisions for judging such competitions, announcing and distributing gifts or prizes, according to the advertised terms and conditions within a reasonable period of time.

Zodiac Power Rings Power Rings, made out of Panchadhatu

“Zodiac

be withdrawn.12

Go Air th th

6. Obvious untruths or exaggerations intended to amuse or to catch the eye of the consumer are permissible provided that they are clearly to be seen as humorous or hyperbolic and not likely to be understood as making literal or misleading claims for the advertised product.

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case of mass manufactured and distributed products may not invalidate the advertisement in terms of this Code. Chapter II (Deals with decency of advertisements) Advertisements should contain nothing indecent, vulgar or repulsive, which is likely to cause grave or widespread offence in the light of generally prevailing standards of decency and propriety.

An Amul Macho dhobi ghat ‘Yeh to bada toing hai, toing hai…’ Amul Macho

Amul Macho

Amul

Neo Sports

(Exhibit 20.1) aired in

Exhibit 20.1 dhaba

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Chapter III (Deals with safeguarding against hazardous or harmful advertisements, particularly to minors) 1. No advertisement shall be permitted which: a. Promotes crime, violence, intolerance or disorder, b. Derides any race, caste, colour, creed or nationality, c. Presents criminality as desirable or incites minors, d. Adversely affects friendly relations with a foreign State. 2. Advertisements directed to minors should not cause their physical, mental or moral harm or exploit their vulnerability. For example, advertisements: a. Should not encourage minors to enter strange places or to converse with strangers to collect coupons, wrappers, labels or the like; b. Should not feature dangerous or hazardous acts which are likely to encourage minors to emulate them; substance; or playing with or using sharp knives, guns or mechanical or electrical appliances, the careless use of which could lead to cuts, burns, shocks or other injury; d. Should not feature minors for tobacco or alcohol-based products; which by law either require a health warning in their advertising or cannot be purchased by minors. Cadbury Fruity Gems Gems Fruity Gems

but only Cadbury Fruity Gems.

manifest a disregard for safety, or encourage negligence.

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Advertising and Integrated Marketing Communications

Hero Honda CBZ X-treme

4. Advertisements should contain nothing that is in breach of the law nor omit anything that the law requires. An ad of Playwin Lottery

Neo Sports

Child Labour (Prohibition & Registration Act) 1986, and the Convention on the Rights of the Child, UNICEF

5. Advertisements shall not propagate products, the use of which is banned under the law. 6. Advertisements for products whose advertising is restricted by law shall not circumvent restrictions by purporting to be advertisements of other products whose advertising is not restricted by law. However, the mere use of a brand name or company name that may also the advertisement objectionable provided, a) the unrestricted product has production and distribution that matches its advertising scale, and b) there are no direct or indirect cues which suggest to the consumer that the advertising is for the restricted product.

Aristocrat Whisky

Aristocrat Apple Juice

for McDowell’s No.1 Soda McDowell’s No.1, Mera No. 1

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Bagpiper “Hum, tum, aur mera Bagpiper,”

837

Club Soda featured

17

Royal Mist

Royal Mist

Chapter IV (Deals with fairness in competition) 1. Advertisements containing comparisons with competitors, including those where a competitor is named, are permissible in the interests of vigorous competition and public enlightenment, provided: a. It is clear what aspects of the advertiser’s product are being compared with what aspects of the competitor’s product, advantage upon the advertiser or so as to suggest that a better bargain is offered than is truly the case, c. The comparisons are factual, accurate and capable of substantiation, d. There is no likelihood of the consumer being misled as a result of the comparison, whether about the product advertised or that with which it is compared, e. The advertisement does not unfairly denigrate, attack or discredit other products, advertisers or advertisements directly or by implication. nor take unfair advantage of the goodwill attached to the trademark, symbol or product of 3. Advertisements shall not be similar to any other advertiser’s earlier run advertisements in general layout, copy, slogans, visual presentations, music, or sound effects, so as to suggest plagiarism. What do you think about Figures 20.4a and 20.4b in terms of the look and feel of both ads? 4. Plagiarism of advertisements released abroad lies outside the scope of the ASCI Code advertisements/campaign complained against, or b) the complainant provides substantiation regarding the claim of prior invention/usage abroad.

20.2.2 Standards of Practice for Advertising Agencies All advertising agencies shall adhere to the Standards of Practice for Advertising Agencies as prescribed by Advertising Agencies Association of India (AAAI), Mumbai, a national organization of advertising agencies formed to promote their interests. The Association has declared certain practices

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FIGURE 20.4 (a-b)

Do the two orange juice ads look similar?

to be unfair practices in the light of the obligation agencies have not only to their clients, but also to the media they employ, to the public and to each other. Following is a brief overview of the Standards prescribed by AAAI:

Obligations to Clients ∑ Every member of the association shall carry on his profession in a manner that upholds the dignity and interests of the association and must conform to the Standards of Service prescribed by AAAI. ∑ No member shall engage in unprofessional ways of canvassing to advertisers. No pitches (except a general pitch about the agency’s credentials) or speculative campaigns (unsolicited campaigns) can be made to advertisers unless so requested by the advertiser in writing. If a prospective advertiser makes any campaign query, the member agency should notify the secretary of the association who would circulate that information to all members. ∑ Members shall either retain commission granted by media owners or charge the clients a service fee not less than 15% of the client’s gross expenditure. They shall not accept discount or commission, other than the regular agency commission allowed by the publishers without the client’s knowledge and consent. They shall also make their best efforts to obtain for their clients the lowest rates to which such clients are entitled.

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∑ Agencies shall not waive off any portion of the standard rate of commission for their work, procure advertising space or facilities for free or at reduced rates, supply advertising material for free or at reduced rates, settle the salary of any employee of the advertiser, or grant discounts to advertisers. However, agencies can share commissions with their overseas counterparts. ∑ Any member relinquishing an account on the ground of slow payment, doubtful credit or bad debt, shall immediately notify the secretary of the association and such information shall be ∑ Agencies shall not employ brokers or agents for commission for introducing their services to an account. However, agencies can employ copywriters or production men at fees commensurate with the value of their work.

Obligation to Suppliers ∑ Obligations to Fellow Agencies ∑ Members are required to use fair methods of competition; they should not offer services without adequate remuneration, extension of credit facilities, or banking services. ∑ Members shall not:

or advertising that makes remedial or curative claims, directly or indirectly,

∑ If a member agency refuses to undertake unethical advertising for a client and proves this to the satisfaction of the executive committee of AAAI, no other member agency shall accept any business from that client.

20.2.3 Code for Commercial Broadcasting As discussed in Chapter 4, the Ministry of Information and Broadcasting (I&B) is the apex body for the formulation and administration of the rules and regulations relating to information and broadcasting over the print and audio-visual media. It is the government body that keeps an eye on the advertisements released by advertisers to safeguard public interest and the government policies in force at a point of time. In addition, the ministry also carries out advertisements and visual publicity on behalf of the Government of India. sector organizations (Figure 20.5) that formulate various acts and rules pertaining to advertising among other issues.19 Prominent among them is the Prasar Bharati Corporation, an autonomous body and the public service broadcaster of the country. Its objective of public service broadcasting is achieved though All India Radio (AIR) and Doordarshan, which earlier worked as independent

840

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media units under the Ministry of I&B. As public service broadcasting organisations, AIR and Doordarshan have responsibility to ensure that the advertisements either in terms of contents, tone or treatment, do not mislead the listeners and viewers or are not repugnant to good taste. FIGURE 20.5

Organisational Structure of the Ministry of I&B.

PHOTO DIVISION REGISTRAR OF NEWSPAPERS FOR INDIA RESEARCH REFERENCE AND TRAINING DIVISION PRESS INFORMATION BUREAU

INFORMATION WING

PUBLICATIONS DIVISION DIRECTORATE OF ADVERTISING AND VISUAL PUBLICITY DIRECTORATE OF FIELD PUBLICITY PRESS COUNCIL OF INDIA INDIAN INSTITUTE OF MASS COMMUNICATION SONG AND DRAMA DIVISION

MINISTRY OF INFORMATION AND BROADCASTING

BROADCASTING WING

PRASAR BHARATI (ALL INDIA RADIO AND DOORDARSHAN) BROADCASTING ENGINEERING CONSULTANTS (INDIA) LTD

FILMS DIVISION DIRECTORATE OF FILM FESTIVALS NATIONAL FILM ARCHIVES OF INDIA

FILM WING

FILM AND TELEVISION INSTITUTE OF INDIA SATYAJIT RAY FILM AND TELEVISION INSTITUTE NATIONAL FILM DEVELOPMENT CORPORATION CENTRAL BOARD OF FILM CERTIFICATION

Source: www.mib.nic.in

The general Code for Commercial Broadcasting, which is otherwise called the Programming Code for both AIR and Doordarshan, prohibits the following:

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a. b. c. d. e. f. g. h. i.

Criticism of friendly countries, Attack on religions or communities, Anything obscene or defamatory, Incitement to violence or anything against the maintenance of law and order, Anything amounting to contempt of court, Aspersions against the integrity of the President, Governors and Judiciary, Anything affecting the integrity of the nation and criticism by name of any person, Hostile criticism of any State or the Centre, Anything showing disrespect to the constitution or advocating change in the constitution by violent means. AIR and Doordarshan require that advertisers should not make false or misleading claims but should amply substantiate them, and not present anything factually incorrect or as a piece of news. Exaggerations that may lead to widespread disappointment are not allowed. Disparaging or derogatory references to other products should not be made and imitation of other advertiser’s trademark, packaging, copy, slogan, etc. should not be made. Further, advertising should not play on people’s superstition or ignorance. Doordarshan also requires that advertisers should not portray a derogatory, indecent or stereotypical image of women. Both broadcasters do not accept advertisements pertaining to tobacco, alcohol, intoxicants, unlicensed employment services, soothsayers, games of chance, “miraculous” products, etc. However, Doordarshan has now allowed the telecast of foreign products, jewellery items, mutual funds approved by SEBI, hair dyes, matrimonial agencies, and the like. AIR and Doordarshan additionally require that the picture and audible matter of the advertisement should not be so loud that it creates a jerk in between the programme and the advertisement. They laughter, and the like. The broadcasters also do not allow simulation of the voice of a personality unless such personality has given explicit permission. As regards the impact of advertising on children, both broadcasters require that advertisements should not: ∑ Lead children to feel inferior if they do not possess the advertised product, ∑ Lead children to feel that it is their duty to buy a product, ∑ Encourage unhealthy or unsafe practices such as playing in the middle of the road, leaning dangerously out of a window, playing which match boxes, etc., 20 ∑

20.2.4 Code of Standards in Relation to the Advertising of Medicines and Treatments ∑ Advertising of ethical drugs to the masses is prohibited. ∑ For over-the-counter drugs, no advertisement should claim to “cure” ill health. ∑ No advertisement should induce fear on part of the reader that without treatment he may suffer from an ailment. ∑ No advertisement should offer to diagnose or treat any disease by correspondence or hypnosis. ∑ No advertisement should contain any reference to doctors or hospitals, whether Indian or foreign, unless in exceptional situations.

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∑ No advertisement of products offered particularly to women should imply that the product can be effective in inducing miscarriage. ∑ No advertisement should offer miraculous products or treatments. ∑ Products treating sexual weaknesses, weight reduction, blindness, cancer, diabetes, infantile paralysis, insanity, tumors, heart diseases, small pox, etc. shall not be advertised.

20.3 LEGAL AND ETHICAL CONCEPTS AND ISSUES IN ADVERTISING Below are some concepts and issues that need to be understood in light of India’s legal and ethical environment.

20.3.1 Comparative Advertising offered by a competitor. Advertisers use comparative advertising primarily to promote their product

decisions, it is a cause of concern for competitors whose products are being compared since it may affect their reputation and goodwill. Further, such advertising may also infringe on the trademark of a competitor, resulting in confusion in the minds of consumers. In India, the subject of comparative advertising is dealt with by more than one Act. Initially, section 36A of the MRTP Act listed several actions to be ‘unfair trade practices.’ The provision pertaining to comparative representation was contained in Section 36A(1)(x) which reads as follows: ‘“unfair trade practice” means a trade practice which, for the purpose of promoting the sale, use or supply of any product, adopts any unfair or deceptive practice including any of the following practices, namely: … the practice of making any statement, whether orally or in writing or by visible representation, which gives false or misleading facts disparaging the products or trade of another person.’ Since the MRTP Act has been repealed, the Consumer Protection Act covers unfair trade practices and lists unmerited comparative advertising under unfair trade practices. However, one of its major limitations is that up by consumer associations, central government or state governments, and in that sense, it does not make good the repealing of the MRTP Act. Thus, under the existing law, a manufacturer whose goods are disparaged has no locus standi to seek a remedy. The only option is to bring it to the notice of a consumer association or represent the case to the Central or State government. Moreover, even

become unregulated. Section 30(1) of the Trademark Act, 1999, which is based on the UK Trademarks Act, 1994, permits comparative advertising with respect to trademarks by stating that the use of a registered trademark by any person with the purpose of identifying products as those of the proprietor is permitted provided the use:

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a. is in accordance with the honest practices in industrial or commercial matters, and b. is not such as to take unfair advantage of, or be detrimental to the distinctive character or repute of the trademark. The aforementioned provisions have been broadened to include unregistered trademarks, whereby the proprietor of an unregistered trademark can institute an action of ‘passing off ’ in case of comparative advertising disputes. In deciding about the extent of comparative advertising, courts have laid down various principles: ∑ A manufacturer is entitled to make exaggerations such as statements that his goods are the untrue, will not give a cause of action to other manufacturers of similar products, unless in doing so the manufacturer says that his competitor’s goods are bad, or disparages and defames them. ∑ Comparative advertising must compare products meeting the same needs or intended for the same purpose. ∑ Comparative advertising should explicitly or implicitly make clear what comparison is being made. ∑ with ‘another’ or ‘ordinary’ product that does not allude to a particular brand, cannot give rise to disparagement. ∑ For ‘disparagement’, a direct reference to the competitive product is not necessary. Even an indirect referencing that can identify a particular brand may lead to a case of ‘disparagement.’ Pepsi Co. Inc. v. Hindustan Coca-Cola Ltd, Pepsi Thums Up Pepsi Pepsi Pepsi

of Pepsi prefer Thums Up Pepsi held that Thums Up depicted Pepsi 21

∑ Comparative advertising should not mislead consumers about the competitor’s product with which comparison is being made. Disparagement of another’s products becomes an ‘unfair trade practice’ only if there is a use of ‘false or misleading facts.’ In other words, when a no relief can be given to the competitor.

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In Reckitt Benckiser (India) Limited Vs. Naga Limited and Ors., the defendant Naga

Dettol

rakshak

Dettol

22

20.3.2 Misleading Advertising Misleading advertising means any advertising, which in any way deceives or is likely to deceive consumers, and is likely to affect their economic behaviour, or injure a competitor. Thus, false or deceptive comparative advertising is also a type of misleading advertising. Advertising can mislead consumers regarding product price, quality, features, country of origin, sponsorships, sales promotion offers, newness of the product, comparison with other products, etc. The following practices also comprise misleading advertising: ∑ Bait-and-switch advertising when they are aware that they would be unable to supply reasonable quantities at that price for a reasonable period. Special offers are made to draw customers to a store when in fact they do not have a fair chance of buying the advertised product at the said price. Retailers use the increased consumer footfall as an opportunity to cross-sell standard-priced goods instead of the advertised special. ∑ Palming off occurs when a producer misrepresents his inferior products as superior products of another manufacturer with a view to gain commercial advantage. For example, deceptively similar looking packs of Fare & Lovely, Vicko Turmeric, Vikks, etc. are cases of unorganized manufacturers trying to palm off their fakes as originals. ∑ Disparagement occurs, as mentioned earlier, when an advertiser intentionally and light so as to establish the superiority of its products. In India, misleading advertisements are dealt with under the Consumer Protection Act and the selfregulatory ASCI Code as mentioned earlier. In various countries, misleading advertisements are treated similarly. In UK, for example, The Control of Misleading Advertisements Regulations, 1988 (as

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amended) provides the legislative backup to its self-regulatory system in respect of advertisements, which mislead or engage in unfair comparisons. In USA, the Federal Trade Commission (FTC) Act and the Lanham Act mainly deal with misleading advertisements. Under the FTC Act, the Commission is empowered, among other things, to issue regulations banning misleading advertisements, even if they are true; order corrective advertisements; and bar misleading advertisements if they have the possibility of deceiving consumers. Under the Lanham Act, advertising is condemned if it has the capacity of misleading 25% or more consumers. Here the onus lies on the consumers and competitors to prove that the advertisement was misleading. The following conditions have to be established for the same: 1. The advertiser made a false statement, 2. The false statement actually deceived or had the capacity to deceive 25% or more of the target audience, 3. The deception was material, 4. The falsely advertised product was sold in interstate commerce, and 5. The plaintiff was actually injured or was likely to be injured as a result of the deception.

20.3.3 Freedom of Speech in Advertising Article 19(1)(a) of the Constitution of India endows protection of certain rights regarding freedom of speech and expression, “(1) All citizens shall have the right: (a) to freedom of speech and expression.” While this freedom is granted for public speaking, radio, television, and press, the Constitution has imposed certain limitations. Article 19(2) permits the State to impose reasonable restrictions “in the interests of the sovereignty and integrity of India, the security of the State, friendly relations with foreign States, public order, decency or morality, or in relation to contempt of court, defamation or incitement to an offence.” In Hamdard Dawakhana v. Union of India case in 1960, the Supreme Court had to decide whether the Drug and Magic Remedies Act, which put restrictions on the advertisements of drugs in certain cases and prohibited advertisements of drugs having magical qualities for curing diseases, was valid as it curbed the freedom of speech and expression of a person by imposing restrictions on advertisements. The Supreme Court held that, an advertisement is no doubt a form of speech and expression but every advertisement is not a matter dealing with the expression of ideas and hence advertisement of a commercial nature cannot fall within the concept of Article 19(1)(a). However, in Tata Press Ltd. v. Mahanagar Telephone Nigam Ltd, the Supreme Court differed from the view expressed in the Dawakhana of Article 19(1)(a) as it aimed at the dissemination of information regarding the product. The Court maintained that ‘commercial speech’ couldn’t be denied the protection of Article 19(1)(a) merely commercial information was indispensable and that such information educated the public at large protected the rights of an individual to listen, read, and receive free speech. In fact, the recipient of commercial speech may have much deeper interest in the advertisement than the businessman issuing the advertisement.

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Thus the Court held that ‘commercial speech’ was a part of freedom of speech and expression guaranteed under Article 19(1)(a), subject to the restrictions under Article 19(2). In fact, following the one’s product.’ The Court, however, has made it clear that the government can regulate commercial advertisements, which are deceptive, unfair, misleading or untruthful.

20.3.4 Surrogate Advertising Surrogate advertising means substituting the brand image and advertising of one product to promote another product of the same brand, usually one that is forbidden from advertising. Surrogate advertising is commonly seen for liquor and tobacco products whose advertising is banned in many countries (Table 20.1). For example, ITC has come up with Gold Flake expression greeting cards and Wills has registered its sportswear as a new business entity. Similarly, packaged drinking water and Manikchand chai go a long way in respectively keeping the alcohol and tobacco brand names going. TABLE 20.1

Restrictions on alcohol advertising in various countries23

Country

Selfregulation

Statutory legislation

Combination

Banned

Some controls

No controls

India US UK Germany Switzerland Sweden Denmark Finland Norway Australia New Zealand China Singapore Japan Bangladesh Israel Ukraine Jordon

In India, ASCI’s self-regulatory code forbids surrogate advertising, as discussed earlier. However, using the brand name of a product restricted from advertising is allowed to be used by another, provided: a) the unrestricted product has production and distribution that matches its advertising

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scale, and b) there are no direct or indirect cues which suggest to the consumer that the advertising is for the restricted product. However, the new Tobacco Act bans surrogate advertisements of nontobacco products with the same brand name as tobacco products. th August 2006 for The Cable Television Networks (Regulation) Act, 1995, and The Cable Television Networks Rules, 1994, states: “Provided that a product that uses a brand name or logo, which is also used for cigarettes, tobacco products, wine, alcohol, liquor or other intoxicants, may be advertised on cable service subject to the following conditions: a. The story board or visual of the advertisement must depict only the product being advertised and not the prohibited products in any form or manner; b. The advertisement must not make any direct or indirect reference to the prohibited products; c. The advertisement must not contain any nuances or phrases promoting prohibited products; d. The advertisement must not use particular colours and layout or presentations associated with prohibited products; e. The advertisement must not use situations typical for promotion of prohibited products when advertising the other products;

retransmission.”

20.3.5 Puffery vs. Lies Puffery sales representations, which praise the item to be sold with subjective opinions, superlatives, or 24 Advertisers are creative professionals who have the liberty to embellish things a bit. Thus simple exaggerations that are not intended to be believed are an advertiser’s creative license, because the consumer is not gullible enough to fall for

deodorant will not drive women to them by the hordes. That’s puffery which advertisers can use to exemplify, in an exaggerated manner, particular qualities of their products, which consumers can distinguish from the truth. While advertisers can make simple exaggerations, they cannot puff objective facts or make uncorroborated claims about their products. Such distortion falls within the domain of false, misleading or deceptive advertising. For example, if advertisers say that their detergent cleans tea stains in 1 regular wash or if their energy drink gives 500 calories, a tea stain better be gone in one normal wash, and the ace sprinter drinking the booster better get the advertised 500 calories. A detergent powder that touted having lemon as an active ingredient, had to take back its claim and change the communication to say that it used lemon-concentrate. It is important to take note of these subtle differences because a lie repeated too often starts getting accepted as a truth.

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20.3.6 Advertising to Children It is not without reason that advertisers are pursuing children as target audiences. Children are advertisements’ most vulnerable audiences who enjoy ads, often believe them literally, and then use ‘pester power’ by forcing their parents to purchase the advertised products. Kids are a goldmine for marketers with their pocket expenditure increasing by the day and parents and grandparents doting on them more than ever before. Parents are willing to spend more on their kids than ever in the past. And kids are becoming far more judicious and well informed than those of the last few generations. in decisions for personal care products, consumer durables and the like. Most importantly, children they become. Thus, kids are increasingly being targeted by advertisements, in-school marketing, product placements, sales promotions, tie-ins, etc. However, advertisers ought to remember that kids are more susceptible to advertising claims than adults. Advertisements can set up role models, which kids may try to impersonate. After a kid emulated the bungee-jumping shown in Thums Up’s TVC, Thums Up had to show a cautionary note before the TVC that the feat was performed by experts. There had also been an instance where a kid threw his brother into the washing machine in order to clean him and make him whiter. And another instance where a kid ate a multinational company’s soap that claimed to contain “dudh aur malai” in it. buying decisions. Hence, an increasing number of products ranging from biscuits, bicycles and cold drinks, to mobile phones, sportswear and vacation destinations are targeted to children. Additionally, children are also used as surrogate endorsers in ads because of their “oh-so-cute” appeal, increasing disposable incomes and higher share in family decision-making. Thus the laws governing advertising to children are strict in many developed countries with bans on advertising to children, bans on advertising before or after children’s programmes, or regulations on the quantity of advertisements to children. Countries like Sweden, Norway, Finland, Denmark, and Greece have introduced several restrictions whereas UK and US have developed rules, which advertisers follow voluntarily. For example, Sweden does not permit advertising aimed at children under 12, does not allow programmes to be interrupted by advertising and does not permit advertising before or after children’s programmes. In Australia there is a ban on all advertising during pre-school children’s programmes. In the Netherlands there are limits on the volume of advertising during children’s programmes, and in Finland, McDonald’s cannot promote toys in its advertisements. In Denmark, Finland and the Netherlands, characters or presenters from children’s programmes cannot appear in advertisements. In the US, complaints can be made to the Federal Trade Commission, state regulators or self-regulatory bodies.25 As against these, in India, there are few laws that deal with child-related advertising. The selfregulatory ASCI Code sets the ethical norms for advertisers to follow when their ads are either viewed by children or use children as models. As discussed earlier, Chapter III of ASCI deals with safeguarding minors against hazardous or harmful advertisements such that it does not cause their physical, mental or moral harm or exploit their vulnerability. The general Code for Commercial Broadcasting laid down by Doordarshan and AIR as well as The Cable Television Networks (Regulation) Act, 1995 also have regulations, as discussed earlier, regarding advertisements that may affect children. The

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Young Persons (Harmful Publications) Act, 1956 also prohibits distribution of publications that may be harmful to persons under the age of twenty. The Information Technology Act, 2000 penalizes publication and transmission of material, which is obscene, lascivious or appeals to prurient interest, and it can be invoked in cases, which have the propensity to corrupt the minds of children. The Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003, bans advertising tobacco products by or to minors. Further, tobacco usage has also been banned in movies and on television. If programmes containing scenes with smoking situations or use of tobacco produced before this Act are screened, a mandatory and prominent scroll containing health warning has to be displayed. However, these laws and codes are not comprehensive and some of them are only self-regulatory in nature. For example, there are no laws in India, which lay down guidelines for the use of child models in advertisements or the promotion of junk food to children. Even the multinational junk food giants disregard responsibility in developing countries like India, which are emerging markets for their industry. In 2004, advertising by fast food outlets in India went up by 22% on television, according to TAM Media’s AdEx India.26 However, the same companies are obliged to behave in a more socially responsive way in the West where they are prone to attacks. Further, there are no bars on advertising in schools and many an FMCG company use schools as the launching pad for grabbing young consumers. In fact, Coca-Cola and Pepsi offer several sponsorships to schools, particularly for sporting activities. Also, in spite of the regulations, the truth remains that there are exceptions and ways to get around the law. However, despite these negatives, advertising law has come a long way in India and increased awareness of the issues concerning advertising to children is improving the situation. Apart from the law, there are also social forums like organizations of parents, psychologists, politicians, etc. While the law has limitations and slippages are likely to occur, it is the responsibility of advertisers to see that entertainment like sex, violence or horror does not reach children. Additionally, advertising should not inculcate bad habits like smoking, drinking, speaking lies, disrespecting elders, employ morals and ethics in judging if advertisements are child-safe.

20.3.7 Cultural, Religious and Racial Sensitivity in Advertising ASCI proposes in its Code that no advertisement shall be permitted which derides any race, caste, colour, creed or nationality. The general Code for Commercial Broadcasting for AIR and Doordarshan also prohibits attack on religions or communities. In the interest of ethical advertising, it is important that advertisers are sensitive to ethnic and cultural issues. They should capture people’s attention without offending them in the process. Toyota Pradox Toyota’s Toyota had to withdraw the Rin Advanced

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In today’s sensitive times, you need to be overly cautious as even an innocently composed creative can be construed as a sign of irreverence. Some of Mentos print ads depict Einstein, Newton and Archimedes endorsing Mentos and crediting the confectionary to be the source of their ideas. Do you think they could be offensive to any culture or group?

20.3.8 Matters of Questionable Taste A Mountain Dew ad shows a guy opening a cheetah’s mouth and rescuing a Mountain Dew can from it. Mountain Dew with them. Animal rights activists Levi’s reversible ad shows a war in progress and two soldiers dressed in black escaping from the enemy. They jump into a pit to escape the hail of bullets. Once inside the pit the female soldier starts taking her clothes off while seductively looking at her partner. As the atmosphere heats up, she takes her trousers off and turns them inside out revealing the grey colour inside. When the soldier realizes he’s been tricked and the female represents the enemy camp, he picks up his gun to shoot, but the woman is too smart for him and outperforms him. Or take these: small-town teenage girls get choices and opportunities only after they take a bubbly bath with a certain FairGlow only after they lighten their complexion with a Fair & Lovely fairness soap. Move aside dark beauties; India worships fairness and who wants to be politically correct, anyways? The ad world is getting rife with ads that smack disgust in your face. Television advertising for products for which consumers are more sensitive like female undergarments and sanitary products, tobacco, alcohol, contraceptive aids and the like are more likely to produce distaste than other product categories. Questionable ads become more offensive in the wrong media context and when viewed publicly. While they may fall under any of the laws governing advertising depending on the issue of distaste, they are more likely to lead to public furor than give effect to legislation.

20.3.9 Stereotyping The Code for Commercial Advertising on Doordarshan states, “no advertisement shall be permitted which… in its depiction of women violates the constitutional guarantees to all citizens such as equality of status and opportunity and dignity of the individual… Women must not be portrayed in a manner that emphasizes passive, submissive qualities and encourages them to play a subordinate, secondary role in the family and society. The portrayal of men and women should not encourage mutual disrespect.” Stereotyping is portraying people in a way that is devoid of individuality. Men will earn the bread, women will clean the kitchen. Pigeonholing genders or feeding questionable cultural issues regarding them can be disastrous. With women assuming diverse roles in the society, ads that show them preoccupied with household duties, beauty and motherhood are bound to receive criticism. Even body language and facial expressions can stereotype women who are often depicted as gentle, coy, dependent or helpless. On the other hand, men are shown to be dominant, powerful and commanding. HUL had to pull off a Fair & Lovely commercial that depicted a dark girl not being able to get married after it received consumer complaints. The new commercial showed a girl becoming Fair & Lovely. The challenge facing ad makers is to portray men and women more realistically without alienating any section of the society.

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20.3.10 Subliminal Advertising Subliminal messages are those that are transmitted so subtly that the receiver is not consciously aware of receiving them. They are below the threshold of normal perception. The ads or symbols embedded in ads are so faint or brief that they are not knowingly sensed. However, while they are not consciously perceived, they are still registered and processed by the brain and may affect purchase behaviour. For example, Coca-Cola was engulfed in a controversy when it was found to be showing split second Coca-Cola symbols embedded in a movie in a theatre. Its sales did increase along with that of popcorn because of the subconscious registration in people’s minds. Similarly, advertisers are sometimes known to implant sexual symbols in ads so skillfully that the average person does not observe them until they are pointed out. Research indicates that subliminal advertising can cause to use subliminal symbols in ads or not remains an ethical issue to ponder on.

20.3.11 Product Endorsements The practice of product endorsements by reputed and credible persons or organizations has been prevalent worldwide. However, problems arise when these people or organizations are those who which can hinder rational judgement. Advertisements and promotional strategies are based on impact is heightened when medical associations endorse brands. This is because consumers look for credible sources and opinions to help them make purchase decisions, and they are receptive to endorsements by health organizations. Thus, while celebrities can endorse most products in funds. Similarly, doctors cannot endorse any particular brand. Medical Council of India’s (MCI) 2002 regulations specify that a physician shall not give to any person, whether for compensation or to any drug, medicine or any commercial product for use in connection with his name, signature or photograph in any form or manner of advertising through any mode.

CASE IN POINT The Ethics of Endorsements by Medical Associations27

Dettol, Lizol, Aquaguard, Pampers, and Odomos, It had entered into a Quaker Oats

Tropicana

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Advertising and Integrated Marketing Communications

20.4 REGULATIONS GOVERNING SALES PROMOTIONS Sales promotions also get affected by some of the similar legislation and codes that govern advertising.

20.4.1 Contests and Sweepstakes These are among the most regulated sales promotion tools and marketers have to take note of a number of regulations while designing contests and sweepstakes. Firstly, marketers have to be careful that their contests, games or sweepstakes do not get categorized as lottery because the latter is considered a form of gambling and is highly regulated by some State and National Laws. For instance, IPC prohibits the publication of matters pertaining to unauthorized lotteries. The Prize Competitions Act, 1955 controls and regulates prize competitions and prohibits the publication of matter with unauthorized prize competitions. ‘Prize competition’ means any competition (whether called a crossword prize competition, a missing word prize competition, a picture prize competition or by any other name) in which prizes are offered for the solution of any puzzle based upon building sweepstakes are also governed by various State Laws such as the Mysore Lotteries and Prize Competitions Control and Tax Act, 1951. AIR and Doordarshan also do no accept advertisements pertaining to games of chance, i.e. lotteries and sweepstakes. and b) if the consumer is required to give some consideration for participation. Thus, sweepstakes have free participation and anyone meeting the requirements can win a prize without purchasing a ticket or offering any consideration. Similarly, while contests might require product purchase, or sending of barcode as proof of purchase for participation, they are a game of skill and not chance. Hence, Secondly, contests, sweepstakes, games, etc. must provide full disclosure of the promotion. The Consumer Protection Act, 1986 prohibits ‘unfair trade practices,’ which include:

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∑ misrepresenting the public regarding the offer of gifts, prizes, etc., or ∑ with the results published prominently in the same newspapers in which the scheme was originally advertised. The ASCI Code also proposes that all communication should be truthful and honest, and that advertisers cannot mislead consumers by implications, omissions, ambiguity or exaggeration. Further, advertisements inviting the public to take part in lotteries or prize competitions permitted under law, or which may give gifts, shall state clearly all conditions to give the consumer a true and fair view of their prospects in such activities. Moreover, advertisers shall make adequate provisions for judging such competitions, announcing and distributing gifts or prizes, according to the advertised terms and conditions within a reasonable period of time.

Wills had come up with a Made for Each Other Four Square Gold Four Square Gold

20.4.2 Premiums and Price Offs A customary deception regarding premiums and price offs is the misrepresentation of their value. The Consumer Protection Act, 1986 includes in its prohibited ‘unfair trade practices:’ ∑ publishing advertisements regarding the sale of products which are not actually offered for sale at the mentioned bargain price, offer period, quantity, etc., or ∑ creating an impression that something is being given or offered for free when it is fully or partly covered by the amount charged in the transaction as a whole. The ASCI Code also advocates: a. Products shall not be described as ‘free’ where there is any direct cost to the consumer other than the actual cost of any delivery, freight, or postage. If such costs are payable by the consumer, a clear statement about it shall be made in the advertisement. offered for purchase with the advertised incentive should not be more than the prevalent price of the product without the advertised incentive. Rs. Y,” are not acceptable if there is a likelihood of the consumer being misled either about Another problem with premiums is that they are often used as a bait or enticement for children,

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product for the premium. While premiums in kids’ products are not strictly illegal, marketers are advised to tone down the promotion of premiums to kids and give more importance to the main product.

20.4.3 Sampling While sampling is a perfectly legal sales promotion tool, its use is guided by certain industries and associations depending on the product being offered for sampling. For example, the Criteria for Medicinal Drug Promotion prepared by WHO in 1988 state that medical representatives should not offer inducements to prescribers and dispensers, and prescribers and dispensers should not solicit such inducements. The International Federation of Pharmaceutical Manufacturers Association’s (IFPMA) Code of Conduct, which went into effect worldwide on January 1, 2007, states that ‘samples may be given to prescribing professionals to familiarise them with the products, enable them to gain experience with the products in their practice, or on request.’ However, in India, often samples of old drugs are distributed, or sale packs are used as samples and these packs do not even contain the words ‘free sample.’ Many a time the giver or receiver of samples sells them, which is in violation of ethics since samples are not to be considered saleable. Free sampling is also prohibited for tobacco products. However, prior to the ban on tobacco promotion, many companies handed out free samples of cigarettes and even Gutkha sachets were given out for free near schools and colleges. In Mumbai, several discotheques and restaurants have witnessed regular Benson & Hedges promotional activities, including giving free samples.29 Similarly, although promoting infant foods is prohibited in some countries, a research study discovered that infant food samples were distributed to mothers in these countries.

20.4.4 Trade Promotions In India, trade promotions are a highly unregulated activity with most of the restraint arising from self-regulation on part of the marketers. Before its scrapping, the MRTP Act dealt with various activities for the prohibition of monopolistic and restrictive trade practices. Now the Competition Act, 2002 deals, with certain exceptions, with various restrictive trade practices, such as refusal to deal with particular resellers, tie-in agreements requiring resellers to purchase some other products as a condition of purchase, exclusive supply arrangement restricting resellers from dealing with other manufacturers, resale price maintenance forcing resellers to sell at the MRP or seller’s stipulated price, full line forcing requiring resellers to carry a manufacturer’s entire product line, price or quantity discrimination among select resellers, area restriction, predatory pricing and cutting prices below cost price, etc. In addition, there are some State Laws, which also govern promotions to trade. For example, various states prohibit trade allowances, with certain exceptions, on the purchase and sale of agricultural produce. The Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 also states that no person shall promote the use or consumption of any trademark or brand name of any tobacco product in exchange for a sponsorship, gift, prize or scholarship. However, in spite of regulations, a lot of underhand transactions happen between manufacturers and resellers wherein undisclosed gifts, display allowances, cooperative advertising sums, etc. are paid in a bid to outperform competition. For example, drug companies are often known to sponsor professional meetings, and at times even individuals. This is likely to create on medical practitioners

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their dealings with such sponsorships. Even regarding gifts the IFPMA Code states, “Promotional

20.5 REGULATIONS GOVERNING PACKAGING AND LABELLING Packaging and labeling are governed by various acts rather than a singular act. For example, as per The Indecent Representation of Women (Prohibition) Act, 1986, no packaging should represent women in an indecent or derogatory manner. Packaging regulations for drugs and food items are especially stringent. For example, The Drugs and Cosmetics Act, 1940 states that drugs and cosmetics must follow a proper packaging code. The packaging must include in its labeling a list of active ingredients in the drug and their quantities, and should not make false or misleading claims. The Prevention of Food Adulteration Act, 1954, in conjunction with The Prevention of Food Adulteration Rules, 1955, lays down, among other things, various guidelines for labeling and packaging of food products. Every package of food has to carry a label, which must include the following with a few restrictions and exceptions: ∑ the name, trade name or description of food contained in the package; ∑ the names of ingredients used in the product in descending order of their composition by weight or volume; ∑ the name and complete address of the manufacturer, packer, bottler, and/or importer, and the name of the country of origin if not manufactured in India; ∑ the net weight, measure, or volume of contents; ∑ batch number, code number or lot number; ∑ month and year of manufacture; ∑ date of expiry, not more than 3 years from the date of packaging; etc.

circle. Products containing eggs, gelatin, or extraneous colouring matter must declare them on the packaging. The Act also lays various rules regarding language on the pack, size of fonts, display area, guidelines for packaging infant foods, etc. For example, infant milk substitutes or food have to include the statement, “MOTHER’S MILK IS BEST FOR YOUR BABY,” in capital letters. The Food Safety and Standard Act, 2006, prohibits the selling of ‘misbranded foods,’ i.e. food items with false, misleading or deceptive claims on their packaging or advertisements. Not only the labelling but also the presentation of food, including its shape, appearance or packaging, the packaging materials used, the manner in which they are arranged, the setting in which they are displayed, and the information made available about them, should not mislead consumers. For instance, Aristocrat apple juice in a bottle shaped like Aristocrat whisky, underweight packages that do not match the net

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misleading packaging. However, genuine claims of goodness can be labelled and advertised. If the product is offered for sale for special dietary uses, its label should bear information concerning its vitamins, minerals or other dietary properties in order to inform its purchaser as to its value for such should include a declaratory label stating that fact.

CASE IN POINT Food Photography – A Tricky Affair30

Maggi

While the old Cigarettes Act, 1975, merely stipulated the statutory warning on cigarette packets, the new Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003, mandates: ∑ pictorial health warnings on tobacco packs depicting a skull and cross bones and any other warning as may be prescribed, on one of the largest panels of the pack; ∑ use of English or one or more Indian languages for health warnings; and ∑ a declaration of the content of ingredients such as tar and nicotine on each cigarette or other tobacco packs along with their maximum permissible limits.

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These warnings on the packs must be legible and prominent, conspicuous in size and colour, in bold, clear and contrast type compared to the background, and visible to a consumer before he opens the pack. According to the Standards of Weights & Measures Act, 1977, when commodities are sold or distributed in packaged form in the course of inter-State trade or commerce, it is essential that every package must have: ∑ A conspicuous declaration showing the identity of the commodity in the package, ∑ The net quantity in terms of the standard units of weights and measures (as per the metric system) and if in numbers, the accurate number therein, ∑ The unit sale price of the commodity and the sale price of that particular package of that commodity, etc. There are exceptions describing the kinds of packages to which these rules don’t apply, e.g. take home food packages packed at restaurants, introductory or promotional packs by companies (by panel on which this information should be mentioned, and how it should be grouped together.31 In view of increased environmental awareness, the Environment Protection Act, 1989, also has stipulations, inter alia the kind of bags or containers to use for food products.

20.6 REGULATIONS GOVERNING DIRECT MARKETING Direct marketing is governed by many of the acts that regulate advertising. In addition, the Indian imposes a prohibition on the transmission of injurious items, advertisements or material related to unauthorized lotteries, and obscene or offensive matter through post. The Customs Act, 1962, also provides for the detention and seizure of any obscene matter imported into the country. India also has the Indian Direct Selling Association (IDSA), formed in 1996, which is a selfregulatory body for the direct selling member companies in India. The IDSA has outlined a Code of Ethics for its members. The Code lays down guidelines for behaviour towards consumers and fellow direct sellers. In general, the Code: ∑ prohibits misleading, deceptive or unfair sales practices, product description, claims or illustrations, as well as unfair competitive advertising; ∑ requires all explanation and demonstration of the product to be accurate and complete in terms of price, credit terms, warranty and guarantee, return rights, after sales services, etc. ∑ requires direct sellers to only make verbal promises concerning the product which are authorized by the company; ∑ prohibits unauthorized, untrue, obsolete, unrelated to the offer, or misleading testimonials and endorsements; ∑ mandates direct sellers to respect consumers’ privacy, contact them in a reasonable manner during reasonable hours, and avoid intrusion; ∑ prohibits exploiting the lack of commercial experience, or abusing the trust of consumers; ∑ prohibits inducing consumers into referral selling.

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Another problem plaguing the direct marketing industry is that of unsolicited telephone calls companies, etc. The banking industry alone accounts for about 90% of the unsolicited calls, according to Telecom Regulatory Authority of India (TRAI) estimates. Many of these companies appoint direct sales agents who are neither covered by any rules and regulations nor have a license from any government authority. However, all this is set to change with the new regulations proposed by TRAI. 2010,” the provisions of which have come into force from 27th September 2011. Under the Act, all those subscribers who have registered with the ‘National Customer Preference Registry’ (NCPR), earlier known as ‘Do Not Call Registry,’ will get relief from all commercial communications. NCPR is a national database containing a list of the telephone numbers of all subscribers who have registered their preferences regarding receipt of commercial communications. As discussed in Chapter 14, consumers can now stop direct marketing advertisements by sending a simple SMS or calling 1909. Subscribers can either opt for the ‘Fully Blocked’ or ‘Partially Blocked’ category. In the latter, all commercial calls or SMSes, except SMSes from preferred categories, will be stopped. There are education, health, consumer goods and automobiles, communication/media/IT, and tourism. Hence, a consumer may choose to receive health and tourism related messages, but not other marketing messages by opting for partial blockage. If a customer receives Unsolicited Commercial Communication (UCC) even after seven days of registration with NCPR, he can register a complaint with his service provider within three days of receipt of such UCC by dialing or sending SMS to 1909. Customers will have to provide the telephone number or header of the message from where the call or message was received, short description of such call or message, and the date and time. The Act also mandates registration of telemarketers with TRAI. It is the responsibility of telemarketers to ensure that no calls or SMSes are made to numbers registered in the NCPR. Also, in order to control the possibility of SMS packages (those that allow sending a very large number of SMSes per day) to be used by the telemarketers for sending SMSes from a normal telephone number, a limit of 100 SMSes per day per SIM has been laid down under these regulations, except on blackout days. Further, all commercial calls or SMSes except transactional SMSes can be sent to customers only between 9 am and 9 pm.32 Further, it is proposed that the telephone numbers and other personal details of any subscriber shall not be disclosed by any marketer to another person or blacklisted and banned for two years.33 In addition to legislation against unsolicited tele-calling, the Indian Banks’ Association has also proposed a model code of conduct for its direct selling agents. The code proposes: ∑ A prospect is to be contacted for telemarketing only if: prospect, or is an existing customer of the bank who has given consent for accepting calls on other products of the bank; from one of the lists approved by the direct selling agent’s manager;

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∑ Telephonic contact must normally be limited between 9:30 am and 7:00 pm. Calls at any other time may be made only if the prospect so wishes. ∑ Direct selling agents should respect the prospect’s privacy and should not discuss the prospect’s interest to anyone not authorized by the prospect. ∑ If the prospect is not available, a brief message may be left indicating the purpose of the call. ∑ Telemarketing etiquettes must be maintained before, during and after the call, such as apologizing if denied permission, limiting the conversation to business matters, offering to call back on landline, talking in the language comfortable to the prospect, not interrupting or arguing, not calling customers regarding products already sold, etc. Similar etiquettes should also be maintained during personal visits.

20.7 REGULATIONS GOVERNING INTERNET MARKETING The rapid spread of Internet as a marketing and communication tool has made it necessary to regulate this new medium, although currently the regulation is in a nascent stage and there is no international jurisdiction for any of the laws. One of the main problems resulting from Internet marketing is the violation of an individual’s privacy, as in direct marketing. In India, a citizen’s right to privacy was recognized by the Supreme Court in the year 1991 as a part of right to life. In 2000, the Government passed the Information Technology Act intended to provide a comprehensive regulatory framework for e-commerce. The act governs electronic transactions and communications and prescribes penalties person, discloses these records to a third person without the consent of the second person. Yet, while the law does protect privacy of individuals, it does not adequately govern the processing of personal data and the free movement of data. In Internet-based service industries, the service Thus the service provider should be under a legal obligation to protect the privacy of its customers and clients. The European Union (EU) has passed a strict data protection directive which lists several rules that companies in the EU have to abide by while collecting and using someone’s personal information. Member companies are allowed to use the data collected for only those purposes that

further processing or transfer to third parties that would be incompatible with those purposes. Of late, the Indian government is also contemplating a dedicated data protection law for the country. Some incidents of theft of data by employees of a service provider have also added to the urgency. The law would also cover issues like hacking and unauthorized access to personal information, as well as privacy in telemarketing wherein customer data moves freely, thanks to direct selling companies.34 The online travel booking website MakeMyTrip.com publishes a privacy policy on its website assuring users that their data will be secure with the site (Figure 20.6). Another area where industry and consumer groups have requested for stricter enforcement of privacy laws is that of unsolicited or spam email. In countries like the US there is an exclusive law to govern spam emails called the CAN-SPAM Act of 2003 (Controlling the Assault of Non-Solicited Pornography and Marketing Act), which establishes requirements for those who send commercial email,

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FIGURE 20.6

Policy of Makemytrip.com to assure website users.

Courtesy: MakeMyTrip.com. Reproduced with permission.

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spells out penalties for spammers and companies whose products are advertised in spam if they violate the law, and gives consumers the right to ask e-marketers to stop spamming them. Among other things, the law bans false or misleading header information and deceptive subject lines, requires as an advertisement and include the sender’s valid physical postal address. Penalties up to $11,000 are prescribed for violation of these offences as well as for other offences like harvesting email addresses from websites, registering for multiple email accounts, etc. A reason why the privacy of individuals can be so easily violated on the Net is that it is relatively

companies are members of Network Advertising Initiative (NAI) and follow a self-regulatory code of conduct. In India, spam legislation is nearly non-existent. ITA 2000 does not discuss the issue of spamming at all. It only refers to punishment meted out to a person, who after having secured access to any electronic material without the consent of the person concerned, discloses such electronic material to any other person. The illegality of spamming is not considered. With the establishment of the Indian arm of the Coalition Against Unsolicited Commercial Emails (an International Organization against spam) some efforts are being made to combat the spam menace. However, in the absence of stringent laws and technical advancements, the proliferation of spam seems inevitable.

In addition to addressing the issue of privacy, in India, the Information Technology Act, 2000 also states penalties for publishers or transmitters of obscene or lascivious information if it is deemed to deprave or corrupt its consumers. This regulation is particularly useful in light of the fact that even minors are at the receiving end of Internet marketing. In the US, the Children’s Online Privacy Protection Act, 1998 (COPPA), places strict controls on collecting information from children via the Internet and on pages used for collecting information. As Internet marketing catches speed, the need for comprehensive Indian and International legislation will become stronger.

Summary Traditionally, advertising has been a self-regulating industry wherein members voluntarily regulate themselves without intervention from external bodies or the law. The single most important selfregulatory body in India is the ASCI, which has adopted a Code of Conduct that guides advertisers

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in their commitment to honest advertising and fair competition in the marketplace. In addition, Codes of Conduct are also outlined by agency associations like AAAI, and media and industry associations. The Central and State governments have also enacted various laws related to trade and commerce, which concern advertising and promotions. There are provisions to curb false, deceptive, misleading advertising and unfair comparative advertising. There are also laws regarding what can be broadcast on State broadcasters and products which are banned from promotions. In spite of a comprehensive legal structure in place, communicators have to also recourse to ethics when dealing with issues like surrogate and subliminal advertising; advertising to children; exaggeration, sex and violence in advertising; etc. Apart from the government, consumer and voluntary organizations also keep a watch on advertising. Besides advertising, there are legislations and self-regulatory codes governing other promotional tools as well. In sales promotions, contests, sweepstakes, games of chance, premiums and price offs, sampling, and trade promotions are the most regulated. The government has also outlined stringent restrictions for packaging of various products, particularly drugs, food, and harmful products such as tobacco. While direct marketing is mostly governed by a voluntary code of ethics, regulations to curb unsolicited marketing calls, protect consumer privacy, and prohibit deception or obscenity, are in place. Internet marketing is the most unregulated of all since its jurisdiction usually extends beyond one country. Currently, the IT Act stipulates protection of privacy of individuals and prohibits transmission of obscene matters, leaving many lacunal areas demanding regulation.

Exercise 1. In the opening vignette, do you think Zydus’ claim of Amul’s infringement of its trademark was 2. What is the difference between ‘palming off ’ and ‘passing off ’? Find out if unregistered trademarks have been granted protection and to what extent. If it is true that protection can be granted even to unregistered trademarks, why should businesses register their trademarks? 3. What do you think about the decency of the Amul Macho and Neo Sports ads discussed under Chapter II of ASCI? With whom does the responsibility for airing these commercials lie – the advertiser, ASCI, broadcaster, or government? 4. What role does the media play in self-regulation of advertising? Do you think it is effective in safeguarding the interests of consumers? 5. What aspects of Internet marketing are currently not governed by legislation? Compare the extent of regulation on Internet marketing in India and abroad.

Suggested Class Projects 1. Find out what organizations similar to ASCI exist in some of the Western countries and compare their powers with that of ASCI. 2. Find examples of 1-2 ads each that a) do not back a claim they make, b) use sex as a gimmick to attract attention, c) are on the edge of a sensitive cultural issue, d) are in questionable taste, e) can be misleading to children, f) use a gender stereotype, g) infringe on other’s trademark, and h) copy another advertiser’s creative. How could these ads have delivered their messages effectively without succumbing to any of the above enticements?

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3. Amul Butter has been frequently coming out with outdoor ads that are a spoof, take or spin on other advertisements, movies, current issues, etc. Find out instances of such ads and if Amul has ever got caught in cases of derogatory ads, unfair comparison, copying other’s creative, or infringement on copyrights or trademarks. If no major legal issues have arisen, what could be the reasons?

Critical Thinking Questions 1. Review Figures 20.7 a-c. Do you think it is a case of comparative advertising? If yes, is it a valid comparison or liable to be challenged under any Act? FIGURE 20.7 (a)

FIGURE 20.7 (b)

Subtle to direct comparisons are regularly made by organisations.

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FIGURE 20.7 (c)

2. Proponents of ban on advertising of alcohol and tobacco products argue that restricting advertising will lead to fewer sales and hence, lesser detrimental effects. Opponents of the ban counterargue that banning truthful and non-misleading advertising is unconstitutional and restriction of freedom. They say that it’s unfair to ban advertising, since the product itself is not banned. They also cite examples of countries where alcohol consumption has decreased despite an increase in advertising. Which view do you agree with? Also, while authorities have enforced bans and restrictions, companies have found ways to get around legalities. Argue about the ethical nature of such advertising. 3. Do you think that self-regulation is the answer to the many ills that plague the promotion industry or should more laws be enacted to curtail these practices? Comment on the pros and cons of selfregulation vs. legislation.

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CASE STUDY Soap Opera Features the Dirty War of Whitening Detergents36 In the highly competitive industry of FMCG products, one brand was under severe pressure from invasion into its monopolistic territory by another deep-pocketed competitor. The market share of a lot of its company’s brands had been on the decline in the past few years, and there was pressure on all price points. Advertising budgets had to be increased disproportionately to sales. In a situation In front of millions of viewers on primetime television, it landed a direct punch on rival P&G’s detergent Tide. In February 2010, its latest on-air commercial of the detergent brand Rin openly took on Tide Naturals, a cheaper variant of Tide with Rs. 10 and Rs. 20 packages, without the typical airbrushing or pixellation to hide the rival Indian television that was touted to break all rules of comparative advertising. The commercial opened on a shot of two mothers waiting at a bus stop for their children, both with a basket each containing their shopping of detergent powders. One basket contained Rin, and the other, Tide Naturals. As they peered into each other’s baskets, the woman with Tide praised her detergent saying it gave both – fragrance and whiteness. The Rin lady simply smiled. Soon the school bus arrived and two boys alighted from it. However, the Tide lady’s son was wearing a visibly dull shirt, whereas from behind him emerged the Rin boy with a spotless, white shirt. Needless to say, the Tide lady was left astounded. To make things cheekier, the Rin boy asks his mother, “Mummy, aunty chaunk kyun gayi?” The word “chaunk” reminded viewers of Tide’s punch line, “Chaunk gaye?” used in many of its commercials. In the next shot showing a side-by-side comparison of the two detergents washing clothes, a voiceover claims that Rin gives much better whiteness than Tide and at a “chaunkane wala” price of Rs. 25. The statement, “Tide se kahin behtar safedi de Rin” left nothing to imagination. The Super, ‘Issued in the interest of Rin users’ completed the commercial. Rin had made comparisons with competitors like Tide and Ariel. ASCI has cited a 2004 complaint against HUL, which it had upheld, in which HUL had showed a badly morphed photograph of Tide in a comparative advertisement. However, barring rare exceptions, until now, brands had stayed away from taking direct potshots at competition on television. HUL’s recent ad had set new standards. To top it, the commercial was strategically released on Friday to coincide with the long weekend of Eid-e-Milad on Saturday and Holi on Monday. And the media plan included primetime slots across all major GECs and news channels in an effort to deliver maximum impact over that period. So it wasn’t much use that the campaign landed up in court within a day of its going on air, because by the time the courts opened for justice, practically every primetime viewer had seen the ad. While P&G was aware of the “disparaging” ad against Tide Naturals, they had refrained from Tide was huge, which was quite encouraging for the company. In its defense, HUL claimed that the ad reinforced the promise to Rin consumers that Rin delivered superior whiteness, and that this claim was based on laboratory tests done through globally accepted protocols in independent third-party laboratories. However, it is speculated that the real reason for the brazen ad was that the company was worried that Tide was slowly neutralizing the “whiteness” USP of Rin. Whatever the reason, the issue still remains whether it was a fair trade practice. ASCI intervention and legal issues had the ad withdrawn from television, but not before it had done the damage. Some feel this was a smart move on the part of Rin, to counter Tide Naturals causing a dent in its sales. Others label it as desperate and distasteful, and would rather that a brand

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concentrated on its own positives than taking basal hits at competition. Experts feel that even if the it is a double-edged sword since it reminds the consumer about your competing brand. Further, there is a looming possibility that HUL’s move could well spark off a trend – release controversial, short-duration, high frequency advertising campaigns, which do their job by the time they are pulled off.

Questions 1. Comparative advertising is not bad provided it is substantiated. Failing this should call for high penalty. Argue for or against. 2. Review Chapter IV of ASCI. Does the HUL ad satisfy the conditions laid out by the organization for fairness in competition? 3. Do you think P&G has a valid case against HUL for disparagement, unfair trade practice, and trademark infringement? What Acts can be evoked in support of these claims?

Endnotes 1. Rohan George, “Amul loses its sugar-free market,” April 30, 2007, www.downtoearth.org.in; “Amul can't use ‘Sugar free’ tag, rules Delhi HC,” www.fnbnews.com 2. “‘Sugar-free’ can’t be used as TM: HC,” Pitch, December 2007, p. 8 3. Kamayani Bali Mahabal, “Infants have a right to be breastfed,” Express Healthcare Management, 1st-15th Jan, 2004 4. www.wikipedia.org 5. “Hyundai and Maruti in Legal Battle Over Competitive Advertising,” September 28, 2006, www. winning-edge.in 6. Reviewed in Reckitt and Coleman India Ltd. vs Jyothi Laboratories Ltd., Judgement of the MRTP Commission, November 18, 1998. Citation: 1999(34) CLA 46. 7. Suveen K. Sinha, “Govt puts strict controls on adult content,” Business Standard, Mumbai, June 6, 2007 8. www.ascionline.org 9. www.ascionline.org 10. “Fighting adversity,” May 30, 2007, www.newindpress.com 11. “ASCI launches Copy Advice service to nip problems in the bud,” April 18, 2008, www.exchange4media. com 12. www.ascionline.org 13. www.ascionline.org 14. Devina Joshi, “Crafted for controversies: Amul Macho TVC in a brush with ASCI,” May 23, 2007, www.agencyfaqs.com; Devina Joshi, “Amul Macho ad "not so obscene": ASCI,” June 5, 2007, www. agencyfaqs.com 15. www.ascionline.org 16. www.ascionline.org 17. Dr. P. Uma Sailaja, “Avenues amid advertising regulations for socially unacceptable products with special focus on alcohol,” International Marketing Conference on Marketing & Society, 8-10 April, 2007, IIMK 18. www.ascionline.org 19. www.mib.nic.in 20. “Code for Commercial Advertising on Doordarshan,” www.ddindia.gov.in; “All India Radio Code for Commercial Broadcasting,” www.allindiaradio.org

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21. Priya Bansal, “Use of Trademark in Comparative Advertising: Situation in India,” www.legalserviceindia. com 22. Priya Bansal, “Use of Trademark in Comparative Advertising: Situation in India,” www.legalserviceindia. com 23. Dr. P. Uma Sailaja, “Avenues Amid Advertising Regulations for socially Unacceptable products with special focus on alcohol,” International Marketing Conference on Marketing & Society, 8-10 April, 2007, IIMK 24. “The Image of Advertising,” Editor and Publisher, February 9, 1985 25. Prof. Chetan Chaudhari, Prof. Milind Marathe, “Marketing to Children – Issues & Remedies,” International Marketing Conference on Marketing & Society, 8-10 April, 2007, IIMK 26. “Fast food adspend up 22 pc,” The Times of India, Feb 16, 2005 27. “Endorsement for a fee: IMA should surely know better,” Business Standard, Nov 9, 2010; “IMA's move raises ethical concerns,” May 8, 2008, www.ibnlive.in.com; Arun Ram, “Watchdog outlaws IMA endorsements,” The Times of India, Nov 2, 2010; “Won't endorse products against MCI norms: IMA,” The Times of India, Aug 26, 2010; Anupama Sukhlecha, “Is brand endorsement by medical associations ethical?,” Indian Journal of Medical Ethics, July-Sep 2008 28. Bejon Misra, “Tobacco Advertising and Promotional Activities,” www.consumer-voice.org 29. Bejon Misra, “Tobacco Advertising and Promotional Activities,” www.consumer-voice.org 30. Elle Williams, “The Law on Fake Food Advertisements,” www.eHow.com; Mel Candea, “Legal Requirements of Food Photography,” www.eHow.com 31. www.mofpi.nic.in 32. www.nccptrai.gov.in 33. www.trai.gov.in 34. Apurva Rai, “India needs a data-protection law,” www.news.indlaw.com 35. Rahul Donde, www.legalservicesindia.com 36. Rachit Vats, “Rin ad goes against the Tide of convention,” Hindustan Times, Mar 2, 2010; “Comparative advertising: the debate is back,” Mar 1, 2010, www.bhatnaturally.com; Omkar Sapre & Rajiv Banerjee, “Rin washes rivalry linen with Tide in public through new TV ad,” The Economic Times, Mar 2, 2010; Anushree Bhattacharyya, Devina Joshi and Ashwini Gangal, “Rin vs Tide - Hit and run,” Feb 7, 2011, www.afaqs. com; Harish B, “Brand Update : Rin Vs. Tide,” March 1, 2010, www.marketingpractice.blogspot.in

Integrated Case ‘The Complete Man’ of 1 Raymond Gets a New Avatar Raymond – the Company and the Brand Raymond Limited, one of the leading players in the woollen textile business in India, was incorporated in the apparel market as well as is a dominant player in apparels and accessories through its strong brands – Raymond, Park Avenue, Parx, Color Plus, Manzoni, Notting Hill, Be:, ZAPP & GAS (Joint Raymond has over 8 decades of existence. Through the years, Raymond has established itself as a leading player in the woollen textile market and has become known for the quality and style of its textiles. As a brand, Raymond has been able to garner tremendous equity in the Indian market, so much so, that the name itself is enough for superior product and outstanding retail experience that serve as an industry benchmark. In addition, the company has also made a tremendous effort to build the Raymond brand and to ensure that it stays contemporary and fresh in the minds of consumers. Among other things, focused marketing and advertising efforts have played a major role in its success.

Brand Strategy The Raymond brand has always been linked with a discerning male who cares about looking good and sets his own personal standards of conduct. The target audience for the brand is hence an aspirational man who seeks status and lifestyle enhancement. The core brand values are that of

In order to distinguish itself from other players in the category, viz., fashion and attitude-centric brands, Raymond industry to shift focus from the product to an individual’s personality with the ‘The Complete Man’ advertising campaigns. The tagline alludes to a man who has many virtues and is sensitive to relationships, all of which have been skillfully portrayed in the brand’s communications. It started with the campaign revolving around the Chess piece King. In the late 1960s and 1970s a common man was portrayed who was seeking advice to look good.

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The Communication Problem With the setting in of the new millennium, there was a clear need to speak to a younger audience who had yet to gain the experience of the brand. It was also necessary to maintain continuity while building on the core foundation of ‘the Complete Man.’ Hence, the task for the communication was to talk to two different target audiences – the young, single adult, and the slightly more mature man who had arrived in life. In order to address the dual audiences, it was felt that the communication needed to highlight the emotional nuances of the brand as well focus on the product quality. The emphasis on the product Raymond was now speaking to a very young audience yet unfamiliar with the brand.

The Creative In order to address the dual issues of creating an image of the Raymond man and bringing out the Raymond.’ was added as a layer. This Raymond Raymond he was in. The Raymond ads beautifully created a busbar of emotions, which were perfectly captured through

instance, one of its television commercials shows the Raymond man coming home to play with his pups (Figure 1). The man leaps out of his SUV, runs up the stairs longingly, and looks for something outside the door. The next shot shows the pups running up to him as they would to a mother and Raymond’, which conveys the softness of the fabric that has been compared with FIGURE 1

Ads create a sensitive and respectful image of the Raymond man.

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the cuddly puppies. It also talks of the softer, compassionate and sensitive side of the Raymond man. The same emotional theme continues in another ad, which depicts a father-daughter pair with the father playing with his daughter (Figure 2). Throughout the campaign, Raymond demonstrates seemingly trivial, emotional moments in people’s lives. Taking common experiences and feelings, the brand conveys that the Raymond man is just like us. It aims to build a bond with the consumer and at the same time, create an aspirational value. This strategy has been followed thereafter addressing both target audiences through various media. All the same, the headlines and the tone of voice have been kept in character with the Raymond brand –

Integrated Case FIGURE 2

Ads create a caring and respectful image of the Raymond man.

Courtesy: Raymond. Reproduced with permission.

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Research Results According to a Hansa Research conducted in 2006, it was established that the Raymond man is perceived as a sophisticated, mature and sensitive individual. The core essence of the brand was recognized to be quality, heritage and trust. However the brand lacked youth and vibrancy and was considered to be conforming. This problem was addressed by the company with the launch of a unique marketing campaign in 2007.

The New Avatar of ‘The Complete Man’ Raymond, which needed to explore other situations to communicate the theme of ‘The Complete Man.’ The brief given to the brand’s advertising agency RK Swamy BBDO was to make the campaign youthful and romantic, and the agency took bold steps in that direction. With the intention of connecting with the young consumers, the story line for the new creative (Figure 3 friends had a surprise waiting for the lady. As the couple went inside, they were greeted with the song ‘Aaj kal tere mere pyar ke charche har zaban par,’ a Hindi classic epitomizing the depth of romance with that the erstwhile Raymond ads exuded was retained in the new commercial with the depiction of the piano and the grandeur of the banquet hall where the party took place. The creative tried to connect with younger audience by bringing in an element of romance, naughtiness and irreverence – the surprise being planned by the husband with his friends for his wife denoting naughtiness as well as romance, while the friends playing the saxophone with long hairdos bringing in the element of funky irreverence. At the same time the ad highlighted the conforming Raymond man who touched the feet of his parents and sought their blessings. Hence, the ad created an impact among the youth without moving away from its core consumers. FIGURE 3

Raymond sports a new avtaar of ‘The Complete Man’

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Courtesy: Raymond. Reproduced with permission.

out to be a major recall element for the consumer. Budding music directors Salim and Suleiman created a pulsating tune, which was lapped up by the audience. The tempo of the tune was increased with some racy beats and saxophone, and the campaign reached a crescendo when the tune on the saxophone integrated with the traditional piano tune of Raymond. The selection of an old Hindi classic song was also a departure from the traditional Raymond ads.

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Media Strategy The reach of the ad has increased with an innovative media strategy that was chosen to tap the younger audience. The television commercial was telecast more across the sports and news genre of channels. With cricket attracting the maximum attention, and coupled with ICC World Cup, the ad gained sizeable Gross Rating Points (GRP) during that time. While Raymond achieved a normalized GRP of 3550 during Jan-Sep 2007 when the ad was showcased, the nearest competitor achieved a normalized GRP of 1068 during the same period.* At the same time, to make an impact across a wider section of the audience, the ad was also featured in news channels. This mix was also carried forward in the print medium with the ads being featured both in the national and regional dailies.

Results Over the years the Raymond campaign has been consistent and noticeable by the target audience. With the new campaign in 2007, the brand achieved a growth rate of 7per cent in terms of sales, which is Raymond advertisements, it had many recall elements, such as the following: 1. The Complete Man 2. Heritage since 1925 a fusion with the traditional piano 5. Tradition, with the man touching the feet of his parents and seeking their approval, showing a deep sense of respect 6. Touching the fabric and admiring the material Table 1 Raymond’s Raymond among students and early jobbers respectively, the young target audience it was seeking. A high score of 9.4 was achieved among the core consumers. (Source: Nielsen Young Adult Study) Raymond

TABLE 1

Raymond: Just the name is enough…can buy blindly…” achiever…” “On wearing Raymond you feel controlled and mature…” “The fabric and the tailoring done by them is the best…” “Raymond has a very regal and highly premium image but it has range that is affordable to the middle class…” On the Raymond personality some of the things that consumers have to say are as follows: “It is a highly respected brand and worn by the established, he will be 35-45” * Normalized GRPs are calculated on the basis of normalized duration. While comparing GRPs across brands, normalized duration is the duration that is chosen as the base duration for considering other parameters of an ad like cost, TVR, etc.

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“He will not be arrogant” “There will be a heritage and legacy about him which comes from old money, this is not new money” “He will have good taste in his clothes, and will wear premium quality brands” “The Raymond men don’t believe in saying, they believe in doing.” “Classy man; he has a class of his own” “A business tycoon or a top class executive, he will not do the work himself, he will have people working for him” “Basically means a person who is not just a professional. One who not just does his work, when he moves in society he is humane and when he is home, he is with family and friends.” In terms of ad effectiveness, the results can be summarised as below: 1. Through innovative media mix the brand has achieved a Share of Voice (SOV) of 40 per cent. (Source: TAM data- Jan-Sep-07). The nearest competitor is at a SOV of 12 per cent. 2. In the suiting category the brand achieved a 49 per cent top-of-the-mind recall. The nearest competitor is at 12 per cent. Raymond has achieved an audience mindshare of 53 per cent. The nearest competitor has achieved a mindshare of 13 per cent. (Source: Juxt Consult)

Questions: 1. According to you, has Raymond been correct in continuing with an emotional theme for its suiting range now also targeted at the younger generation? Why or why not? In your opinion, how would youngsters perceive the new campaign? 2. What kind of new-age unconventional communication tools can Raymond use to reach its new target audience? 3. What were the communication objectives of the 2007 campaign? What tools did Raymond adopt to measure the performance of its communication? What other tools could have been used? 4. Comment on the media strategy of Raymond. What kind of alterations would you make to the plan? 5. What kind of regulatory issues would Raymond have had to take care of while shooting the commercial with puppies? What Acts and organizations would be involved, if any? 6. Is Raymond’s has undertaken recently, and whether these are in sync with its current image.

Endnotes 1. Courtesy: Mr. S. L. Pokharna, Vice President – Marketing & Commercial, Raymond Limited; Mr. Saurav Swamy BBDO

Appendix Presenting Promotion Ideas If a customer wants plain vanilla, give him plain vanilla. – Anonymous If you had a great promotion idea it would sell automatically, wouldn’t it? Perhaps not. It is also the art of presentation that determines whether your idea sails or sinks. Just as challenging as the task of coming up with a big idea is the task of convincing your client that the idea is indeed worthy of his money. The brilliance of an idea is subjective – what may appeal to one may not go well with the other. You have to explain to your client precisely why you think the idea will sell. If there are risks involved, the client might be apprehensive of them. If you are betting safe, the client may fear the ad would pass off as another clichéd one. Hence, it takes all the arrows in your quiver to sell a campaign to your client. Coming up with a great idea is only half the battle won. Convincing the client is the other half.

PREPARATIONS BEFORE A PRESENTATION If presenting a campaign is just as important as making it, how should you prepare for the presentation? The following guidelines give useful pointers: ∑ Set an objective for every meeting: And then stay on course. If the objective of the meeting is to discuss the roughs of your print ad, ask yourself if you have all the material on hand to show the client. Anticipate some of the questions related to the discussion and be prepared to answer them. ∑ Control the environment: Get acclimatised with the room you are going to present in. Visualise where you’ll be standing and how you’ll be presenting. Know the lighting – is it too bright to weaken the impact of your coloured slides? Check the equipment and layout.

scribble notes on? Do all you can to prevent interruptions. ∑ Know the audience: Identify which person in the audience has the hammer, whose votes count, what are the relationships between various audience members, what may be their prime concerns, etc. If you can, go a step further by learning what major corporate incident has just affected them.

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∑ Rehearse: No matter how experienced you are, you are never too old for rehearsing. It always enhances your performance. Pulling rabbits out of your hat may be your expertise, but never risk it when big money and others’ stakes are involved. Besides, most agency presentations involve team work. Never go into a group presentation without knowing what the others in the group are going to say. You neither want to repeat what others said already nor skip important points thinking someone else is going to cover it. When a group rehearsal is not possible, rehearse out loud yourself, perhaps before a mirror, and get briefed on others’ scripts. And remember, tech rehearsal is just as important as personal rehearsal. ∑ Keep props to a minimum: Remembering to get props, putting them in order of their appearance, making sure everyone gets to see them, ensuring you get them back and doing all ones that make a point or make the presentation interesting. ∑ Keep text to a minimum: with too much text. And never write verbatim what you are going to say, else the audience will read more and listen less. Remember that slides should not substitute the presenter, but only support his presentation. Ideally, never write more on a slide than you would on a t-shirt. Add more visuals as opposed to words. Visuals make the presentation more colourful and engaging and enhance the recall rates.

THE ART OF PRESENTATION Following are some guidelines on how a presentation should be made: ∑ Start with an agenda: Give your audience an idea of what you are going to cover in your presentation. Knowing what lies ahead makes people patient. ∑ Introduce people: It is not to be done for formality’s sake alone. Introduce your team such that the client knows why it should be believed in. Specify the respective roles of your interest in particular, the people they’ve worked for, the noteworthy clients they have on their roll, etc. However, stay brief. If the team talks more about itself rather the client, the latter will quickly tune out. ∑ Know where to begin: It is best to begin with a brief recapitulation of your assignment. This will jog your client’s memory and keep you both on the same track. You can also open your talk with some attention-getting statement or something that gets everyone thinking on the problem at hand. Then discuss various elements in varying degrees of elaboration – the marketing background for the product, the research that your team undertook, the strategy that you arrived at based on your research, a proposed media plan and the creative execution of your strategy. However, never show an execution without a strategy and always reserve it for the last. ∑ Dedicate time to explain your strategy: The strategy is a key component of your campaign. It is the logical part that underlies the seemingly illogical creative execution. Take time to tell your client what product group you’ll compete with, what audience are you targeting, where the product is currently positioned in the minds of the target, where you’d like it to

Appendix

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879

be, what might be some of the obstacles to sale, what message will you deliver, the rationale of choosing the strategy, etc. Talk from the consumer’s point of view, rather than the client’s or the agency’s. You might even want to show some competitor ads, decipher their strategies and show how yours is different from theirs. Above all, convince your client that your strategy addresses and answers the problem at hand. ∑ Present your big idea outstandingly: This is the central theme that runs through all executional elements. Your client has to get it right and like it too. Explain why the big idea is indeed the big idea. Explain how the theme relates to other crucial product elements like its positioning, brand image, etc. Don’t rush through this part in a bid to get to the creative faster. The big idea is the link between the strategy and the creative, and sets the stage for the execution. ∑ Present the execution prominently: Once you have discussed the strategy and the big idea, show the actual execution of the big idea. This includes the advertisements and other promotions in various media like print, broadcast, out-of-home, etc. Also show any ads. For example, in print, try to get a comprehensive stage output where all elements are in their balance, proportion, colour and sequence, and resemble the actual ad. Mount your ads on a board for all to see. Do not simply read out the body copy, but explain what it conveys and let the client read for himself. Make sure that the client is able to visualise the big idea computer-generated shots, still photographs, a demo tape with audio track, etc. Communicate how the big idea runs through all your executions, how it is related to the strategy and why the chosen execution is the perfect way to deliver the message. You might even show ideas that you discarded and the reasons for their rejection. Invite everyone’s review in the end. ∑ Make the audience participate: Involve everyone in the presentation by asking questions, seeking consent, etc. Audience participation will ensure at least two things – one, it will increase everyone’s involvement and check boredom, and two, it will make the whole idea seem like the result of a joint exercise. ∑ Sound convincing: Presentation is about conviction more than it is about facts. The most important message is your own belief in the idea and that belief cannot be faked. People can easily see how you feel and how strongly you subscribe to an idea. If the element that you are presenting has been okayed by your team by majority opinion and of which you were not in agreement, do not let that hamper your belief in it. Remember, you are trying to sell the team’s work, and not your part in it. ∑ Don’t contradict, but be honest: Do not contradict your client and avoid direct argument. All the same, do not compromise on creative standards to get the client’s business. There will always be a little give and take. So don’t be disturbed by interruptions, never snap back at the client and do not lose your temper. Remember, anger is just a ‘d’ short of danger… the danger of losing business. You ought to behave like a professional, even if you feel the client is unreasonable. Learn and understand the client’s concerns and if they are genuine, do not let your ego come in the way. Reconcile on the minor issues, but if you are thoroughly convinced about something and think that the client’s demands will kill the very essence of your work, do not concede. You’ll have to take a call on giving up the assignment or giving up the spirit

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client as well as the knowledge of his concerns. ∑ Lighten the presentation: Be aware of how it feels to be a listener. If your presentation is excessively long, lighten it up with a dash of humor. However, humour should be relevant and not forced. Nobody says at the end of a presentation, “There were no gags or anecdotes.” ∑ Create a stage personality: Even if there is no podium for you to stand on and no microphone or lights, you are still on stage. Do not let the presentation get too casual, otherwise you may

speaking from the diaphragm as it brings out a deeper voice that sounds more authoritative and causes less stress when speaking. You can video-shoot your presentation and watch it to analyse where you need to improve. Finally, remember you are still on stage even when others are talking. ∑ Make eye contact with everyone: Looking into the eye of a person makes her feel included. him, and spend more time making contact with the individual who is the key decision-maker. Brighter lights and less distance between the speaker and the audience help in establishing better eye contact. ∑ Overcome nervousness: Believe in yourself and tell yourself that you’ll do well. Imagine the rest of the audience knows zilch about what you are going to say and that will help boost ∑ Preview and summarise: In conclusion, sum up the presentation in a way that its essence is captured. Also outline the steps that need to be taken and the time-frame delegated for the same. ∑ Ask for the order: As part of the presentation itself, make an order request to the client, because getting hold of the key decision-maker later may prove elusive. If you cannot get a verdict then, agree on a date by which the client will get back.

WINDING DOWN: STEPS AFTER A PRESENTATION Your job does not end with the end of the presentation. Following key points need to be remembered before the meeting is dispersed: ∑ Open the forum for questions: Once you are done, be ready to answer everyone’s questions. Anticipate the likely questions and prepare for them in advance so that you are not caught unaware. When you don’t know the answer, let other teammates respond, or offer to come The client is wiser than you may think. ∑ Decide what to leave behind: However tempted you may feel to leave the client with your creative executions, do not do so. That is because when you are not there to explain your executions, they are just pieces of cardboard. You lose control of what gets shown, who sees

Appendix

∑ ∑

∑

∑

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881

it, or how it is explained. More importantly, you may lose a reason to get back in. Tell the client that you can produce the material once it is approved. Get everybody’s reading on what just happened: A preliminary feedback will give you a fair idea of what everyone felt about the presentation and your chances of getting the account. Set your next objective immediately: Outline the next steps before the client leaves, as it is not easy to get everyone together in one room. A face-to-face discussion leading to a consensus on the action plan is better than having to make half a dozen phone calls to get going. Consider a bounce-back: If the client did not like your plan, ask for another opportunity. It is possible that the client may not have given you all the details and certain concerns were pointed out only during the presentation. Often a client will agree given that a lot of time has already been invested in your agency. Report back to all contributors: The presentation team might have been only the front-end of your agency. Get back to the backend contributors with reports of the presentation and acknowledgements for their contributions.

Exercise 1. Present the advertising campaign that you designed in Section II of this book before your class following the tips given in this chapter. Judge others’ presentations and point out the positive points as well as the pitfalls.

Index 4 Ps of Marketing 7 Above-the-Line (ATL) Activities 11 Account Planning 210 Ad Execution creativity in 283 Ad-funded Gaming 548 Admazines 597 Advertiser 199 Advertising 12 codes of conduct (See also Self-regulatory Codes of Conduct in Advertising) cultural, religious and racial sensitivity 849 freedom of speech in 845 legal and ethical concepts and issues 842 legislations (see also Legislation Affecting Advertising) objectives 12-13 testing process (see also Advertising Testing Process) through online games and virtual worlds 540 Advertising Agencies 209 functions 210 Advertising Agencies Association of India (AAAI) 837 Advertising Campaign 229 fundamentals of 229 Advertising Intensiveness Curve (AIC) 750 Advertising Testing Process 778 concurrent testing tools and techniques 789 attitude tests 789 coincidental surveys 789 tracking studies 790 post-testing tools and techniques 792 comprehensive measures 796 inquiry tests 795

recall tests 794 recognition (readership) tests 792 sales tests 796 pre-testing tools and techniques 779 anteroom trailer 779 consumer juries 780 dummy advertising vehicles 785 ethnography 780 focus groups 779 individual interviews 779 on-air testing 781 physiological measures 786 portfolio test 784 programme analysis 780 readability tests 785 theater test 784 Advertising to children 848 Advertorial 595 Advocacy Advertising 17 Agency 199 Agency Compensation 212 Agency Pitches 209 Agency Ranking 215 Alternative Buying Decision Processes 154 Alternative Film Media 645 Alternative Response Hierarchies 175 evaluation of 179 Attitudes 140 Audience 205 Audimeter 642 Audit Bureau of Circulation (of India) 582 Banner 512 Behavioural Learning Theories evaluation of 139

136

Index Below-the-Line (BTL) Activities 11 Big Idea 230, 262 creative execution 283 Blog 532 Bluetooth Marketing 553 Brainstorming for Creative Ideas 266 art of 267 preparation 266 Brand 37, 92 Brand-building Advertising 15 Brand Development Index (BDI) 701 Brand Equity 37 Brand Identity 37 Brand Loyals 443 Brand Mark 92 Brand Name 92 Brand Recognition 37 Branding 92 Broadcast Media 619 Broadcast Network 619 Broadcasting 620 Budget Setting theoretical approaches 746 Budgets, Determining Methods 752 affordable or All-You-Can-Afford method 753 experimental method 757 industry standards or Competitive parity method 754 objective-and-Task method 755 payout planning method 756 percentage of sales method 753 predetermined budgetary methods 753 quantitative models 757 strategy-based budgeting approaches 755 unit of sales method 754 Business-to-Business (B2B) Advertising 18 Buyer Behaviour Buying Decision Process 145 evaluation of Alternatives 149 information Search 148 post-purchase behaviour 153 problem recognition 146 purchase decision 152 Cable Buy 633 Cash Rebate 437

883

Category Development Index (CDI) 701 Cause Related Marketing 477 Celebrity Advertising advantages 323 disadvantages 324 endorsement, tips 325 Centralized vs. Decentralized Agencies 212 Cinema Advertising 645 Click-through Rate (CTR) 808 Client 199 servicing 210 Closed-ended Questions 242 Cognitive Dissonance 153 Cognitive Learning Theory 140 Communication 167 cognitive processing 184 objectives 737 Communication Effectiveness, Measuring of 764 conducting research to measure communication effectiveness 768 Communication Response Hierarchy 170 Communication World players 199 regulators (in India) 206 Advertising Standards Council of India (ASCI) 208 Indian Broadcasting Federation (IBF) 208 Indian Newspaper Society (INS) 207 Ministry of Information and Broadcasting 206 tools, online (See also Online Communication Tools) Communicator 199 Community Radios 650 Comparative advertising 842 Competitive Advantage 64 Competitive Loyals 444 Competitive Strategies 64 Concentrated Marketing 74 Consumer Attitudes strategies to change 142 Consumer Behaviour 119 Consumer Involvement 179 Consumer Response Hierarchy Models 170 AIDA (Awareness-Interest-Desire-Action) model 171 hierarchy of effects model 173 iInformation-processing model 174 innovation adoption model 173

884

Index

Consumer Response Hierarchy Models, Traditional 170 evaluation of 174 Consumer Sales Promotion 20 Contact Methods 240 Contests and Sweepstakes 439 Contextual Advertising 514 Cooperative Advertising 96, 437 Copywriting Approaches 341 Corporate Advertising 16 Corporate Films 484 Cost per (thousand) Impressions (CPM) 808 Cost Per Click (CPC) 808 Cost per Sale 808 Creative Ads tips on creating 287 Creative Boutiques 200 Creative Brief 299 checklist 300 Creative Execution Elements 301 message appeals 301 message formats 309-313 message structure 314-316 message tone 313 production and design decisions 317 Creative Minds traits of 263 Creative Techniques 274 Creativity 263 Cultural Factors 120 Culture 120

ethics in 465 quintessential Elements 461 list 461 message 462 offer 462 strengths 459 weaknesses 459 Direct Marketing, Governing Regulations 857 Direct Marketing, Testing the Effectiveness of 806 testing behavioural measures 806 testing communication measures 806 Direct Response Advertising 15 Distribution Channel Decisions 95 E-groups 533 Elaboration Likelihood Model (ELM) 186 evaluation of 189 Electrodermal Response (EDR) 787 Electroencephalography 787 Emotional Appeals 301 types 302 ERPs (Effective Rating Points) 699 Feedback 170 Filmlets 646 Fixed Spot 639 Flesch Formula 785 Foote, Cone and Belding (FCB) Model Free Standing Inserts (FSIs) 578 Freelancers 205 Frequency 695 Freud’s Psychoanalytic Theory 132 Full-service Agencies 199

Dealer Meets 439 Decoding 169 Results (DAGMAR) 742 Design 351 elements 352 functions 351 Differentiated Marketing 74 Differentiating and Positioning the Offering Direct Marketing Media 462 catalogues 463 direct mail 462 Internet 464 telemarketing 464 Direct Marketing 21, 458 A Tough Nut to Crack 460

180

Galvanic Skin Respons 245, 787 GRPs (Gross Rating Points) 690

75

Headlines 333 functions 334 guidelines on pepping up a headline 337 types 336 Herzberg’s Motivator-Hygiene Theory 132 High-control Messages 11 hover ad 514 Imagery Transfer 378, 379 Immediately Preemptible Spot 639 Indian Readership Survey (IRS) 584

Index In-game Advertising 540 In-house Agencies 201 Installment Purchase Offer 439 Integrated Marketing Communication (IMC) 27-28 case for IMC 33 model 39 plan 41 planning process 39 strengths and weaknesses 28-29 Interactive Marketing 24 Internet as a Communication Medium 506 Internet Marketing 24 Internet Marketing, Governing Regulations 866 Interstitials 514 Issue Management 476 Kim-Lord Model

The Prize Chits and Money Circulation Schemes (Banning) Act, 1978 820 The Prize Competitions Act, 1955 820 The Young Persons (Harmful Publications) Act, 1956 820 Trade Marks Act, 1999 822 Low-control Messages 11 Magazines 592 audiences 599 buying space 600 limitations 597 strengths 593 Market Segment/Segmentation 66 behavioural segmentation 72

183

Learning 136 Legislation Affecting Advertising 819 Broadcasting Services Regulation Bill, 2007 825 Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 826 Drugs and Cosmetics Act, 1940 819 Drugs Control Act, 1950 819 Indian Copyright Act, 1957 821 Prevention of Cruelty to Animals Act, 1960 and Other Animal Welfare Acts 827 The Cable Television Networks (Regulation) Act, 1995 825 The Consumer Protection Act, 1986 824 The Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954 819 The Emblems and Names (Prevention of Improper Use) Act, 1950 820 The Indecent Representation of Women (Prohibition) Act, 1986 820 The Indian Penal Code (IPC), 1860 819 The Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Act, 1992 821 The Monopolies and Restrictive Trade Practices (MRTP) Act, 1984 823 The Pharmacy Act, 1948 823 The Prevention of Insults to the National Honour Act, 1971 820

885

demographic segmentation 70 geographic segmentation 69 hybrid segmentation 73 psychographic segmentation 71 Marketing 6 Marketing Communication 7 agencies 197 budget for 745 Marketing Communication Mix 11 Marketing Mix 7 strategies 82 Marketing Public Relations (MPR) 23, 471 Marketing Service Agencies 202 Marketing Strategy 64 Maslow’s Hierarchy of Needs Theory 131 Mass Marketing 67 Mass Media 568 Massively Multiplayer Online Role-Playing Games (MMORPG) 542 Matters of questionable taste 850 McCann-Erickson’s Role-Playing Approach 300 Media 203 objectives (See also Media Objectives) Media (Planning and Buying) 211 Media Buying Agencies 201 Media Mix 568 Media Objectives 677 how much to advertise? 688 how to advertise? 688 when to advertise? 688 where to advertise? 687

886

Index

who to advertise to? 677 Media Planners 211 Media Planning 670 challenges in the new age 674 evaluation of a media plan 713 plan implementation 713 preparing a plan 676 Media Strategy, Designing of 701 geographic allocation decisions 701 media category and Mix decisions 704 media concentration vs. media dispersion media mix decisions 703 media schedule decisions 705 Micro-blogging 534 Misleading advertising 844 MMS (Multimedia Message Service) 548 Mobile 2.0 546 Mobile Gaming 548 Mobile Marketing 545 Mobile Media tools of 547 Mobile Tagging 551 Mobile Web Marketing 549 Motivation 130 Multiattribute Attitude Model 142 Mystery Shopper Programme 439 Narrowcasting 620 National Advertising 15 National Readership Survey (NRS) Network Buy 633 News Conference 489 News Release 486 tips for preparing 486-487 Newspapers 571 audience 581 buying space 585

703

584

on the basis of circulation size 574 on the basis of coverage 573 on the basis of frequency of publishing 572 on the basis of physical size 573 on the basis of type of circulation 576 limitations 581 strengths 578 Newspaper Advertising, Types of 576 Off-invoice Allowance 436 Online Communication Tools

507

banners 512 creating Internet direct mailer 518 distributing the email 520 Internet direct mail 515 pop-ups 512 search engine marketing 509 text links 515 using lists for emailing prospects 515 websites 507 Online Communication, Testing the Effectiveness of 808 measuring the Effectiveness of social media tools 809 measuring the response of Direct Emails 808 tracking results for banners 808 tracking results on websites 808 Open-ended Questions 242 Outdoor Media 603 advantages 607 buying 610 disadvantages 607 regulatory mechanisms 611 types of 605 Packaging 90 Packaging and Labelling, Governing Regulations 855 PACT (Positioning Advertising Copy Testing) 778 Page Personality 350 Paid Circulation 582 Paid Inclusion 511 Pass-along Readership 582 Pay For Inclusion (PFI) 511 Pay Per Click (PPC) 511 Pay Per Click (PPC) Advertising 511 Pay Per Inclusion (PPI) 511 Peoplemeter 642 Perception 133 Personal Factors 128 Personal Selling 25 Personal Selling, Testing the Effectiveness of 807 testing behavioural measures 807 testing communication measures 807 testing the salesperson 807 Photo Opportunity 489 Pop-unders 514 Pop-ups 514 Post-purchase Dissonance 153 Preemptible Spot 639

Index Premiums 439 Press Conference 489 Press Kit 489 Press Releases 21 Price Copy Advertising 98 Price Decisions 97 Price Shoppers 444 Primacy Effect 315 Primary Research 237, 238 Primary-demand Advertising 17 Print Advertising, Elements of 333 body copy 341 headlines 333 layout 333 other display copy 339 visuals 348 Print Media 333, 569 Product 82-83 Product Attributes 88 Product Decisions 82 Product Endorsements 851 Product Life Cycle (PLC) Stage Strategies 84 Product Placement 540 Product Symbolism 83 Proximity Marketing 553 PGR) 787 Psychogalvanometer 787 Psychological Factors 130 Public Relations 21, 22, 470 importance of 471 in India 472 tools 484 company sponsorships/events 489 news releases 485 online media tools 490 press conferences 485 publications 484 social activities 489 social appearances 489 special events 489 videos 484 types 475 community relations 482 corporate public relations 476 crisis management 477 employee relations 480

887

government relations 483 marketing Public Relations (MPR) 479 media relations 475 Public Relations Programme Planning 491 conducting PR research 491 determining the budget 494 evaluating the results 495 implementing the plan 494 setting of objectives 493 Public Service Advertising 15 Publicity 21, 496 Publicity and Public Relations, Testing the Effectiveness of 803 measuring exposures 803 testing behavioural measures 805 testing communication measures 804 Puffery vs. Lies 847 Pull Strategy 97, 423 Pupilometrics 245 Push and Pull Strategies 423 Push or Pull Promotional Strategies 96 Push Strategy 96, 423 Quantity Discount 436 Questionnaire 242 Radio 376, 647 buying time on 656 networks and stations 650 players in radio industry 650 scriptwriting 379 strengths 652 weaknesses 654 Radio Audiences, Measurement of 659 Radio Commercials production of 384 structures of 379 Radio Network 650 Radio Spots writing and producing 384 Radio Syndication 651 Rating 688 Rational Appeals 301 Reach 692 Reach, Frequency and GRPs 695 Readership Studies Council of India (RSCI) Recency Effect 315 Reference Groups 125

584

888

Index

Registrar of Newspapers for India (RNI) Research approaches 239 common errors 246 instruments 242 Research Process 236 Resellers 95 Retail Advertising 15 Right Product Category 460 Roadblock 708

582

Sales Promotion 20, 418, 420-421 limitations 421 strengths 421 tools 424 consumer promotion tools 424 sales force promotion tools 440 trade promotion tools 436 Sales Promotion Programme planning 440 steps in planning and executing 443 Sales Promotion, Testing the Effectiveness of 800 testing behavioural measures 800 testing communication measures 802 Sales Promotions, Governing Regulations 852 contests and sweepstakes 852 premiums and Price offs 853 sampling 854 trade promotions 854 Sales- versus Communication-Oriented Objectives 738 Sample 241 Sampling Plan 241 Sampling 433 Search Engine Marketing (SEM) 509 Search Engine Optimization (SEO) 509 Search Engine Result Pages (SERP) 509 Secondary Research 237 sources of 237-238 Selective-demand Advertising 18 Self-Regulatory Codes of Conduct in Advertising 828 Code for Commercial Broadcasting 839 Code of Standards in Relation to the Advertising of Medicines and Treatments 841 Standards of Practice for Advertising Agencies 837 The Advertising Standards Council of India (ASCI) Code for Self-Regulation in Advertising 828

Share of Voice 703 Skin Conductance Response (SCR) 787 Slogans 339 Slotting Fees 437 SMS (Short Message Service) 547 Social Factors 125 Social Media 521, 522 roadmap 526 tools 532 blogs and community forums 532 micro-blogs 534 social networking sites 537 Social Networks 537 Social Web 521 Specialized Services Agencies 216 activation agencies 218 direct response agencies 216 interactive marketing agencies 218 market research agencies 218 online marketing agencies 218 sales promotion agencies 218 Specialized/A La Carte Agencies 200 Spot Buys 633 Stereotyping 850 Stimulating Creativity tips 265 Strategy 249 marketing communication work plan format Subliminal Advertising 851 Superstitial 515 Surrogate Advertising 846 Switchers 444 Tactical Advertising 15 Taglines 339 Target Audience 7 Target Market Selection 74 Target Rating Points 690 Television 390, 620 buying time on 632 elements 390 strengths 626 weaknesses 629 Television Audiences, Measurement of 639 criticism of ratings systems 643 methods of measuring audience 642 Television Commercial making of 391

249

Index Television Industry, Players in 621 Cable and Satellite (C&S) television operators 621 networks and local stations 621 public television 624 television syndicators 625 Text Link 515 The Indian Newspaper Society (INS) 584 The Pen is the Mightiest 377 Third Parties 205 Through-the-Line (TTL) Activities 12 Trade Advertising 18 Trade Coupons 438 Trade Sales Promotion 20 Trade Show Sponsorship 440

Trade-Force Training Trademark 92

439

Unconventional Media 26 Undifferentiated or Mass Marketing VALS (Values and Lifestyles) Viral Advertising 525 Visuals 348 types 348 Weaknesses 473 Web 2.0 522 Web Log 532 Web Networking 511

684

74

889