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The Looking Glass
THE LOOKING GLASS
In this edition
Measuring the Effectiveness of the Humour Quotient in Indian Advetising ……3 ..…..6 Implicit Positioning and Surrogate Advertising .........9 Fake IPL Player: Redefining Marketing Effective Multi-tiered Promotions: Lessons From Santoor 4P's of Indian Theatre Marketing Neo-Political Marketing ..…..11 ..…..13 ..…...17 ...….21
It gives us immense pleasure to bring out the first ever PAN-IIM marketing digest, with a joint effort by the Influencer Marketing marketing clubs of IIMs A, B, C and L. If you take time to look around, you would observe the importance of marketing in every sphere of your life. Starting from the time you get up in the morning, the brush, toothpaste you use, right up to the time you crash on your bed at night, just think of those countless brands that shape your daily lifestyle. It‟s a continuous tussle between those myriad brands laid across the horizon of consumer observation span. In a season where marketers are leaving no stone unturned trying to grab consumer attention, marketing automatically assumes utmost importance. The world is brutal. It‟s no longer about marketing your product right. It‟s basically a requisite for survival. If you don‟t do it, your competitors will. And the consumers have plenty of options. So, basically if you don‟t sell, your competitors will. We decided to come up with a collection of choicest articles contributed by students and industry personnel, which would highlight the trends of contemporary marketing. And for the same reason we decided to call the digest, „The Looking Glass‟, because we feel it will give a true reflection of marketing, and the direction it is taking in today‟s scenario. The articles touch a wide array of topics which have assumed importance in the recent past. How has humour been used effectively by marketers? How do you sell educational institutes? What exactly did the Fake IPL Player do for KKR? How do advertisers resort to surrogate advertising? What are the trends in online marketing? These, and many more articles inside would keep you engrossed as you go through the pages, we hope.
Strategic Marketing for Educational Institutions…..25 Welcome to Marketing, the third epoch! Sidestepping the Commoditization of Disruptive Innovations ........28 …...30
There are those who envision, and then there are those who work to make the vision a reality. We are proud to Sales Role in Fixed Income Securities Market ……32 say that we had a team which did both. We would like to thank all those who were involved taking the digest to …….34 the completion stage. There was a tremendous amount of co-ordination and synchronization put in by the market- Valuation of TV Advertising ing clubs of the 4 IIMs. At every stage of development we also received immense support from the faculty in the form of guidance and encouragement. Also, a very special thanks to Mr. Prakash Bagri, Director of Marketing, Ogilvy and Mather Trivia …….36 Intel South Asia, for sharing his insights on the evolution and future of marketing, in the digest. In future we plan to evolve by bringing in greater participation from the industry and experts and initiating wider Low Cost Customer Acquisition distribution. Please do send us your feedback at firstname.lastname@example.org. Strategies for E-businesses Yours Truly Mayank Jain, Prasad Gopal , Robin Joseph , Garima Mamgain
Is Recession the time to tighten Ad Budget? …….37 …….39 …….42 ……..44 ……..48
State of the Market -A Comparative Study Does Green Marketing Sell? Men's Cosmetics
Editors Mayank Jain (IIMC) Prasad Gopal (IIMB) Robin Joseph (IIMA) Amit Sharma (IIML) Design Yatish Misra (IIMC) Prativa Lama (IIMB) Rajkul Fulzele (IIMA) Pan IIM Team Piyush Mehta (IIMC) Brijesh Unithan (IIMC) Mafla Mudgal (IIMC) Nikhil Joshi (IIMC) Pratik Prakash (IIMC) Sanglap Bannerjee (IIMC) Abhishek Mohan (IIMB) Chayan Mukhopadhyay (IIMB) Gautam Attravan (IIMB) Shreshth Sharma (IIMB) Meenakshi Prasad (IIML) Saikat Mondal (IIML) Ganesh PR (IIML) Manoj Kumar Kamble (IIML)
Garima Mamgain (IIML) Rishi Varshney (IIML)
Measuring the Effectiveness of the Humour Quotient in Indian Advertising
In this article, we explore the humour quotient in Indian advertising through the lens of certain television ad campaigns that have tickled the consumer funny bone in order to evaluate the effectiveness of such campaigns. We diverge from the traditionalist body of literature that brackets humour in advertising as risky and at best, as effective as other ads. Our contention is that an ad campaign based on humour stands out from the crowd and captures the consumer mindshare. Humour can come in many forms and the choice of the appropriate type is highly dependent on the target audience, the cultural bias, the choice of advertising medium and the product itself. Some of the more popularly used forms are: Personification: This is where inanimate objects assume human characteristics and the inherent humour in observing such behaviour is used to highlight some quality or the desirability of the brand. One such example is Pepsi‟s „Oye Bubbly‟ campaign in which various objects such as the car stereo and the garage are shown coveting the Pepsi bottle. Exaggeration: Here certain attributes of the product are magnified out of proportion like the Fevikwik ads where the fisherman uses Fevikwik on a stick to catch fish, trumping the sophisticated fishing gear of the person next to him.
Our contention is that an ad campaign based on humour stands out from the crowd and captures the consumer mindshare.
INTRODUCTION When using humour to advertise a product, the main challenge for marketers is to link the advertisement to the underlying brand so as to translate consumer enjoyment to consumer purchase. This linkage is questioned by numerous researchers with the distraction of the consumer from the brand quoted as the chief flaw of such a strategy. We diverge from this view – our contention is that the industry context and basis of competition is also critical to the nature of advertisements used. Our frame of analysis would be campaigns that are recognized for their innovative use of humour including Fevicol and Fewikwik, Happydent White, Vodafone Zoozoos, Idea Cellular, Frooti, Tata Sky, Sprite. TYPES OF HUMOUR Back in the 1960‟s, a golden rule in advertising, propagated by the founder of Prentice-Hall, was to never mix humour and advertising. Today, with the proliferation of product offerings, humour is increasingly being looked upon not as a distraction that trivializes the product, but as an effective means of distinguishing the product from the crowd and drawing the attention of consumer.
Slapstick: This particular brand of humour deals with the ludicrous/exaggerated and presents situations where the humorous aspect of the ad, far from being subtle, strikes the viewer in the face, the Chlormint ads being a prime example of this. Other forms include sarcasm, comparison, pun, understatement and irony. However, there is a strong cultural context for such advertisements. Individualistic cultures like the US and UK typically feature advertisements having one or two dominant characters while in more collectivistic cultures like Thailand, ads revolve around groups. Similarly, the degree of uncertainty avoidance and the amount of masculine dominance in the culture of a country are key factors in influ-
Indian advertisements, in the past, have mostly derived their humour from the interplay between multiple characters.
influencing the type of humour that can be successfully used in advertisements, with countries high on these two parameters tending to prefer slapstick or direct humour to subtle nuances and double entendres. Analyzing the Indian advertising scenario keeping this cultural context in mind, certain key trends can be identified. Given the traditional family oriented culture of India, Indian advertisements, in the past, have mostly derived their humour from the interplay between multiple characters. Also, in the past, humour has tended to be largely slapstick, based on filmy spoofs and ridiculous situations. This is part, can be attributed to the diversity of cultures and languages found in India. Humorous ads, therefore, must tread the thin line between keeping the cultural idioms of their target audience in mind and taking care not to offend the cultural sensibilities of any group. Slapstick offers an easy way out with situational humour having a broader reach while also ensuring that the punch line is not lost on the audience. EVOLUTION OF HUMOUR IN INDIAN ADS Over the years, there has been a gradual evolution in the use of humour in Indian advertisements. The most obvious change has been the increasing use of humour with advertising agencies increasingly trying to grab the attention of consumers through their funny bone. In 1993, only 28% of commercials were humour-based. By 2001, at least 46% tried to incorporate some form of humour. And while in most countries, funny ads have largely been associated with low-involvement products, in India, even high-involvement products like televisions and insurance have tried their hands at humour. A more subtle change that has been taking place is in the type of humour employed. From pure slapstick, ads are moving towards more intelligent comedy, with a more individualistic bent, be it the Vodafone Zoozoos, which cleverly depicted a variety situations, each with some link to a feature offered by Vodafone, or the Fasttrack „Move on‟ commercials, which perfectly capture the changing nature of Indian society today. India today is at a crossroads, between its traditional past and a more modern future, which perhaps explains the success of ads across the entire cultural
spectrum – be it the group oriented Fevicol truck ad showing people stuffed into a truck, or the more individual oriented Fevikwik fisherman ad, from the slapstick Akai TV ads of old to the more subtle Camlin Marker ads, to the extent that even potentially controversial ads like the Axe series have found acceptance in India, which is viewed to be conservative. Case Studies: We examine the following advertising campaigns with a view towards illustrating the different types of humour that works in the Indian context and also to measure the effectiveness of these campaigns along multiple dimensions: Amaron, Frooti, Axe and Max New York Life Insurance. Our choice is driven by the different types of humour used in each of these campaigns. Amaron (Amara Raja) batteries: The iconic claymation advertisements with the catchy slogan of „Lasts Long Really Long...Ting Tong‟ captured the imagination of the public and acted as clutter busters in 2002. The „Hare and Tortoise‟ ad and the „Kumbhakarna ad‟ were aired on Doordarshan and other satellite channels and brought in tremendous brand awareness for Amaron batteries – a new entrant into the automotives battery space in 2000. Interestingly however, the expected spurt in sales did not materialize. The product was a low involvement one with incumbent advertising focussing on the toughness and macho image of the car battery. The dominant player at that time, Exide, was well entrenched and Amaron did not manage to make a dent in their sales. The ad agency – O&M went back to the same claymation studio in 2004 to come up with a follow up, the „Pandu Mangal‟ ad. The uniqueness of this ad was the universal nature of the humour – the bumbling cop in pursuit of a wily thief was instantly recognized and appreciated across all segments of people. We also theorize that the humour was well received as it relied on simple age-old themes and had powerful visual imagery. This ad consolidated Amaron as a powerful brand and was a platform for their explosive growth post-2006. In 2006 Amaron reverted to a stereotypical performance based campaign using racing stars like Karun Chandok and Narain Karthikeyan. Our take is that the humour based advertising helped establish the brand awareness but did not add to the topline due to the low involvement of the car owners in the buying decision and the lack of product differentiation as the „Lasts Long‟ promise held true de-facto in the business.
ernet. The advertisement poked fun at Indians who have a propensity to push their children into various activities at a young age. The campaign was centred on a faceless college going guy called Digen Verma worshipped by his friends. We study it due to the unique nature of the advertising – the same campaigns are aired worldwide and there has been no attempt to tone down the humour or modify it in any way for India. Axe: Our inclusion of Axe is a little controversial as its ads have straddled a thin line between sexism and naughtiness in terms of the humour. Max New York followed it up with another humorous ad in Apr-2009. a rebellious theme was adopted in the campaign.in. the use of humour. it has captured the pulse of its target audience perfectly. Later. He holds a Bachelors degree in Electronics and Communication Engineering from National Institute of Technology (NIT) Trichy and can be reached at kaushiksr08@iimb. with the women making the first move – a bold idea for Indian audiences. the humour in the ad was well received – wry humour had worked on Indian screens after a long while! The ad demonstrated two things – one that Indians were willing to laugh at themselves and two. The sales of new policies shot up from the slowdown in October – further the weighted new received premiums too shot up. Axe is by far the naughtiest brand in India and is targeted at the male aged 16-25. The ad had worked its magic. Hence. The Axe effect in terms of sales and market share has been spectacular to say the least. Frooti switched to their old theme of „Fresh and Juicy‟ which did worse than the Digen Verma campaign – hence in comparison the use of a unique style of humour proved to be more effective for Frooti. gets pursued by different women. high involvement products could be advertised using humour. Max New York Life: When Max New York came out with their advertisement featuring an overzealous dad with his young child as he exhorts the child to repeat words of increasing complexity. Rohini Ramachandran is a 2nd year PGP student at IIM Bangalore. A look at the sales figures show a marginal increase in the year the campaign was aired followed by steady increase in sales – the market share decline was halted by this campaign though. The teaser campaign combined with the new caption for Frooti – „Just Like That‟ was aimed at repositioning Frooti from a kids drink to one for the youth. This dispels the notion that Indians are conservative in their humour – of course the marketing for Axe was backed up by a great product too. Seduction is the dominant motif here. not only helps bring the brand into the consumer‟s consideration set through increased brand awareness and recall.in. T HE LOOK ING GLASS . She holds a Bachelors degree in Electronics and Communication Engineering from National Institute of Technology (NIT) Trichy and can be reached at rohinira08@iimb. usually an ordinary next door neighbour kind of chap rather than a hunk. in products where consumer preferences play a vital role in selection. Interestingly. this time poking fun at the retired Indian male. Yet. The last series of ads in this campaign show Digen ordering Frooti (of course Digen himself is not shown on screen) – this causes pandemonium across the country and everyone switches to Frooti immediately! This campaign was unique in the effective use of suspense (watch this space approach) and humour in engaging consumer attention through various innovative forms of media (messages telling Digen to remove his car from the parking lot were flashed in theatres. Sceptics however claimed that the Digen Verma persona had become more famous and had marginalized the brand. but also appears to translate directly to an increase in sales. The ads highlight various situations where the guy. CONCLUSION Thus. Kaushik Sriram is a 2nd year PGP student at IIM Bangalore.P AGE 5 Frooti: The Digen Verma ad blitz that lasted for 15 days in February 2001 catapulted the brand into public imagination and generated a tremendous buzz across the country. girls and even peons – in general everyone who knew him except for the stodgy old college professor. HUL (the parent company)replaced their old deodorant brand Denim with Axe due to its spectacular success. consumers sat up and took notice. bus stops had posters asking if Digen would be on the next bus and so forth).ernet.
What we see in case of contact lenses is an indirect approach Imagine your next visit to your optician. According to Duncan and Nick. the answer to this question can be both yes or no. manufacturers. The third and final set of activities involves the use of these influencers to advocate to the target segment.) or may be so-called value-added influencers (such as journalists. industry analysts. etc. Influencers can play a direct or indirect role in this process.” Compared to traditional marketing practices. These third parties exist either in the supply chain (retailers. What we see in case of contact lenses is an indirect approach where the influencer (optician) is raising awareness about the category and not the brand. in the form of incentives. It aims to take advantage of the influence these individuals have over the target segment. WOMMA (Word of mouth marketing association) provides a handy classification of influencers based on how they derive their power of influence. such as higher margins. To complement the strategy.is your optician working as an agent to some contact lens manufacturer? Well. or they may be third parties. blogs. On the other hand.P AGE 6 Influencer Marketing Welcome to the age of influencer marketing. the next step is to market the product to the influencer. the manufacturer might put some point of sale merchandising to promote its product. he advises you to switch to contact lenses. Using Influencer Marketing The first and most important activity in influencer marketing is identification of influencers and evaluating their potential to serve the Figure 1: Type of Influencers (source: WOMMA) T HE LOOK ING GLASS . with these influencers becoming the centre of all marketing activities.Fig 1. He is just exercising his influence on your decision making. marketing objective. After the regular eye check-up. They then become well equipped to use their influence in favour of the firm. You wonder what this is leading to . and so on) . he might just be using his judgment and trying to help you out. You might have witnessed and experienced it in the past – it‟s just that the term has become more visible. these influencers may be potential buyers themselves. Once the target influencer has been identified. informing you of the pros and cons. Youtube. to help increase the awareness among the influencer community. twitter – the tools can be many. The third and final set of activities involves the use of these influencers to advocate to the target segment. influencer marketing focuses on key types of individuals. Influencers can play a direct or indirect role in this process. The motivation for such an action could have come from a manufacturer. professional advisers. academics. the message is the same “you are being influenced.
the active ingredient is common across companies. Marico identified these doctors and dieticians as its influencers. the manufacturer might put some point of sale merchandising to promote its product. The visibility on such forums provides reach to a large section of influencer community. Marico promoters visit these doctors and brief them about the product. In many cases. Marketing to these influencers is done through various activities. Since the law prohibits any advertisements of prescription drugs. To complement the strategy. Involvement with various medical associations and other such platforms. the representatives even check up with local chemists whether the medicines being promoted are selling. Another avenue that companies use to market themselves to influencers like dentists is sponsoring lectures on recent trends in oral care. like oral care. the biggest challenge it faced was that most of the customers were unaware about cholesterol. Saffola is a safflower based refined edible oil that promises to help control cholesterol for cardiac patients. Involving various key influencers to help improve the product offering and future product development. Even in categories where advertising of the product is permitted. T HE LOOK ING GLASS . On a related note. and the medicines are substitutable. Product detailing and sampling to the doctors. They use product detailers and other research documents to backup their claim. not for sale‟ printed on mini packs in your doctor‟s clinic). 3. Here we list some of them: Figure 2: Saffola's use of influencer marketing 1. Use of various dental associations to certify one brand of toothpaste or toothbrush is another example of influencer marketing. Marico Ltd. Sometimes. These doctors commanded a great amount of influence on their patients and most of the times their prescriptions acted as a command for the patients. Essentially. Cardiac patients relied completely on their cardiologists and family doctors for information (in WOMMA classification. When Marico launched this product in market. 2. Industry Practices One of the most common applications of influencer marketing is in medicines and pharmaceutical products. Colgate has done well in this regard in India. it‟s the same route that pharmaceutical companies take for their product.P AGE 7 where the influencer (optician) is raising awareness about the category and not the brand. has successfully used influencer marketing through cardiologists to promote its products. companies rely on prescriptions from doctors to drive sales. as compared to a suggestion from the consumer‟s dentist. especially Saffola Oil. these belong to Category/Subject Matter Expert group). This is because an advertisement can rarely have the credibility. Sampling helps in generating some trials if the doctors find the product claims appropriate. they send their representatives to disseminate information to doctors and give them free samples (you might have seen „Physician‟s sample. Hence. and hence the influence on the purchase decision. companies don‟t miss out on opportunities to promote their products to dentists. before they make a visit.
B ombay and can be r each ed make you pregnant. with the beautiful Cauthe product is formally launched. meaning "Bite the wax tadpole" or "female horse stuffed with wax". required for the success of the product. the uct and thus generating the initial thrust name of a notorious porno magazine. The excasian baby on the label. most common use of influencer Clairol introduced the "Mist Stick"." their products. ity of using this influence in the right manner. ads were supposed to have read.ernet. Coke then reSo. Later they learned that in Africa. The onus is on the marketer to define the ethical and professional boundaries and stay within them.000 characters to find a phonetic equivalent cian anytime soon. they do not hesitate in giving information about the same to their patients. perts are encouraged to write about the companies routinely put pictures on the label of what's inproduct." into Spanish." that he might be influenced by Bausch and Lomb to „influence‟ you into buying contact When Parker Pen marketed a ball-point pen in Mexico. Instead.in T HE LOOK ING GLASS . since most people can't read." and diet-guides because of such activities. to ensure that they promote only takes an aroused man to make a chicken affectionate. its lenses. mand over the tech savvy target segment helps in convincing early-buyers of the prod. is owned by the organization. Electrolux." Another. The influence these experts comside.in Pritesh Jain is a 2nd year PGP student at IIM Ahmedabad. "it takes a strong man to make a tender chicken" was translated into Spanish as "it encers. a curling iron.ernet. Frank Perdue's chicken slogan. Colgate introduced a toothpaste in France called Cue. This necessitates establishing professional and ethical norms on the marketer‟s part. It is not uncommon to hear of companies providing excessive incentives to influ.S." nology experts during launch of new products. Coors put its slogan. He holds a Bachelors degree in Electronics and Communication Engineering from RV College of Engineering. where it Saffola today is part of many a diet charts was read as "Suffer from diarrhoea. An American T-shirt maker in Miami printed shirts for the Spanish market which promoted the Pope's visit. Not marketing in modern times is engaging techtoo many people had use for the "manure stick. The Coca-Cola name in China was first read as "Ke-kou-kela". the company thought that the word "embarazar" (to impregnate) meant to emAmmar Tambawal is a 2nd year PGP student at IIM Ahmedabad. It is most probably the only edible oil that is recommended by doctors during consulta. Instead of Influencer marketing gives a marketer an "I saw the Pope" (el Papa). Scandinavian vacuum manufacturer Electrolux used the following in an American campaign: "Nothing sucks like an tion. He holds a Bachelors degree in Electronics Engineering barrass. into German only to find out that "mist" is slang for manure. Most of the cell-phone manufacturers as well manufacturers of new age software When Gerber started selling baby food in Africa. at least now you know "ko-kou-ko-le". in case you are looking to visit your optisearched 40. they used provide their product to these experts before the same packaging as in the U. so the ad read: "It won't leak in your pocket and fr om VESI T . Bangalore and can be reached at 8priteshj@iimahd." at 8ammary@iimahd. depending on the dialect. "It won't leak in your pocket and embarrass you". the shirts read "I saw the poopportunity to utilize resources beyond what tato" (la papa).P AGE 8 Once these influencers become aware of the Top 10 Most Brilliant Marketing Screw Ups product and accept the effectiveness of the product. in influence also comes with great responsibilChinese. The power of Pepsi's "Come alive with the Pepsi Generation" translated into "Pepsi brings your ancestors back from the grave".. "Turn it loose. translating into "happiness in the mouth.
the government tabled a bill to amend the Cable Television Network Act of 1994. which is likely to tighten the screws on surrogate advertising even further. and in this process was born a new trend of surrogacy in advertising which is commonly defined as „advertising one product with the view of selling another‟ Trends in surrogate advertising After the ban imposed on the 12 advertisements identified as surrogates by the Government of India. as late as March 2009. Most of the large players adapted quickly to introducing what are termed as complimentary products which fell outside the ambit of the Government‟s regulation. one can imagine the predicament of a producer who is mandated to legally produce and stock and then has his hands tied by being denied the right to market the produce. One interesting trend which was observed in the mid 2000s was the “socially responsible advertising” taken up by many liquor companies. such as aviation. the unconventional such as ITC‟s diversification into clothing and apparel as well as the far-fetched such as the Red and White Bravery Awards and other lifetime achievement awards instituted mainly to perpetuate brand recall among the target audience. educate on the new salient features or create a new market. the tobacco and liquor manufacturing lobby has been trying to persuade the government to relax the restrictions on advertising what are perceived as surrogate products. the Government of India decided to the hand a long rope under the stipulation that the surrogates have no product linkages to intoxicants. Zee TV and Aaj Tak in 2002 under the provisions of the Cable Television Regulation Act of 2002.P AGE 9 Implicit positioning and surrogate advertising Advertising is widely accepted to be the most potent tool in the hand of a marketer. For the best part of this decade. as also new age media like the Internet and Out of Home (OOH) media. Aristocrat Whisky (apple juice). Origins In this context. Many in the industry have since started to diversify into areas where they can leverage their brands’ aspirational value. and the show-cause notices issued to Star TV. However the surrogacy in advertising continues in the absence of a strong code by the ASCI and the government flip flops on the issue. energy and money to reaching out to existing and potential consumers though various media such as television. the whirlwind of surrogate ads hitting the telly calmed down to a large extent. Whether it is to launch a new product. The significant ones include 8PM Whisky (apple juice). Formula 1 and related „glamorous‟ industries have as much to do with his desire to perpetuate his strong brand portfolio as the prospect of de-risking his business by diversifying. Finally. These include the mundane such as sponsoring events (without explicit advertising) and Internet advertising. radio etc. Hayward‟s 5000 Beer (kit of darts which was the centrepiece of the advertising campaign) and Gilbey's Green Label Whisky (mineral water). Advertisers started diversifying and shifted their focus to other adGLASS The ban on advertising of tobacco and liquor introduced by the Government of India during the early 2000s has spawned a generation of surrogate marketing initiatives as corporations leant to sell without communicating to the consumer. entrench an existing one. Media analysts have also often wondered aloud that the ambitious forays made by Dr Vijay Mallya in aviation. Advertising Ethics The Advertising Standards Council of India (ASCI) issued clarifications at various points of time that in accordance with the code laid for guiding T HE LOOK ING . clothing and apparel and sports. However on June 10th this year. This is a ditch that many liquor and cigarette companies have found themselves in after the Government of India passed a blanket ban on all advertising of „intoxicants and harmful substances‟ in mid 2002. Several advertisements exhorting viewers to be responsible citizens and refrain from driving after drinking were seen by media analysts as a form of surrogacy. The need of the hour is to come clean on the subject and develop an unambiguous plan of action vertising avenues which often stretched the concept of brand extension to previously unheard-of levels. Bagpiper (club soda). most consumer products manufacturers orient a considerable amount of time.
It must look beyond having the cake (the advertising ban) and eating (tax revenues) it. irrespective of his or her age. While such questions make intuitive sense. advising the customers to use the product in temperance. a communication consultant writes. The government needs to take a stand on the issue. If it is legal to manufacture. Two sides of the same coin: Ambiguity of law Many in the industry question the practice of banning advertisements which effectively erodes the ability to sell while at the same time allowing production to continue. He can be reached at joshin2011@email. In an article published by The Hindu in March 2008 Ramesh Narayan. ITC voluntarily opted out of the sponsorship deal that it had signed with the BCCI to sponsor the Indian cricket team and has since been de-emphasizing its cigarette brands in favor of other lines of business which are considerably more sustainable. why is it that it is available to anyone. to enable the agricultural community to adopt a direct selling approach. The need of the hour The following measure will go a long way in easing the deadlock seen here: The ASCI should have an unambiguous guideline for differentiating acceptable and unacceptable forms of advertising with respect to surrogate products. the practicality of banning production of tobacco and liquor is unpalatable for the simple reason that these are very heavy contributors to India‟s tax kitty and the revenue loss due to a ban on production will most likely be catastrophic. Nikhil Joshi is a 1st year PGDM student at IIM Calcutta. T HE LOOK ING GLASS "It's difficult to digest that an industry which is allowed to sell its products.P AGE 10 If it has been established conclusively that cigarette smoking kills. An exception may however be made in case the product which is advertised is not freely available or is produced and distributed in minuscule quantities.in . says Prof. the crown jewel being the e-Choupal initiative. Also advertisements must not contain direct or indirect cues for the product under advertising restriction. As a result of this duality of purpose. is banned from advertising the same products. Mudra Institute of Communications in an article released in July 2002. In 2001.". He holds a Bachelor‟s degree in Electronics and Telecommunication Engineering from University of Mumbai and has worked as a Software Testing Consultant with L&T Infotech. “The advertiser‟s perspective is fairly straightforward. Advertising companies must take pains to understand the nature of the products and market that they are dealing with and must refrain from designing and propagating surrogate brands. Director. the tug-of-war continues without resolution. Voluntary abstinence A notable exception to the clamoring by the tobacco and liquor lobby and circumventing of stipulations to maintain sales is the conduct of ITC Ltd after the ban announced by the government. why should it be illegal to promote the sale of that product? I don‟t think anyone can answer that question convincingly. distribute and sell a product. at every street corner?” ethical behaviour in advertising.as. the mere use of a brand name or company name which may be the same or related to a product put under advertising restriction may not be construed as reason enough to find the advertisement objectionable. Also the ASCI should be empowered to implement the guidelines and issue penalties for non-conformance. However many advertisers must still grapple with ethical dilemmas as the existing code leaves a lot of scope for interpretation. Atul Tandan. Also the increasing pressure exerted by the WHO as well as NGOs and health activists have forced the government to be seen doing something. which may not be sufficient to warrant advertising costs. It has also taken up large scale Corporate Social Initiatives in rural India.iimcal. despite the fact that the commercials carry health warning.
cynicism and irritation.made the followers want more of it. an associate marketing professor at the Fox School of Business and Austrian marketing professor Thomas Foscht. we have got a lot of mileage and media space for the right and wrong reasons. created a lot of furor in the cricketing world. attract star players who inspire a wide audience and develop a strong marketing communication program. But surely Fake IPL Player has popularized the two relatively new strategies of marketing – Anti-Marketing and Buzz Marketing.” This may sound gibberish to many. The fact that it has managed to attract television viewership and on-ground support from spectators speaks a lot about the brand KKR”.P AGE 11 Fake IPL Player: Redefining Marketing “Lord Almighty along with the Calypso King decided to take the attack on to the Bubblies. the International Director of Intangible Business puts it – “Winning games is not enough to build a successful sports brand. Prince Charles of Patiala was all tensed up but Bhookha Nan and Kaan Moolu were having a very good time with Sandy Baddy Babe.” Further. KKR tops the board with an estimated brand value of $22. The Phoren babas were happy when they saw Appam being slaughtered. which identifies and analyzes the new marketing trends. a blog released by an anonymous blogger during the Indian Premier League (Season2). Less is more with present-day marketing. who claimed to be a member of the Kolkata Knight Riders Squad. Humor and Suspense .“Traditional marketing campaigns are focused around customer orientation. This article analyses the different new -age marketing techniques with reference to the case of the aforementioned blog.his two weapons. discovered that effective campaigns go against what traditional marketing preaches. But at the same time it also made several great traditional marketers sit up and take notice. at around 6 per cent of the total cable viewers above the age of 15 years. What is this hype all about? Just a couple of days before the start of the IPL 2nd season in South Africa. Using the unorthodox marketing techniques of Antimarketing and Buzz Marketing. Customers now crave simplicity. they have emerged as the strongest IPL brand. a blog was launched by an anonymous person. They have together published a book “Reverse Psychology Marketing: The Death of Traditional Marketing and the Rise of the New Pull Game”. But those who have ever come across the Fake IPL Player‟s blog at any point of time would be laughing their hearts out. resulting in customers‟ boredom. T HE LOOK ING GLASS . the peak ratings of KKR matches on SET MAX channel were among the highest. The result Although Kolkata Knight Riders (KKR) kept up their dismal performance. confusion and sales pressure. Anti Marketing After studying marketing campaigns and trends for several years. As Richard Yoxon. according to a report published by Business Standard. According to the IPL Brand Value Scoreboard 2009 published by UK‟s Intangible Business in collaboration with MTI Consulting. authenticity and exclusivity”. it could help KKR build up a strong brand value as well as generate enough TRPs on television. Throughout the IPL he kept sensationalizing the intrateam conflicts.3 million. They offer too much choice. This may be a coincidence. But at the same time it stood out as an excellent marketing campaign for the Kolkata Knight Riders Team. A source representing one of the sponsors summed it as “From an advertiser‟s point of view. Fake IPL Player. Teams need to engage the local community. This blog has became a sensation in the cricketing world. Indrajit “Jay” Sinha. According to the book -.
Buzz marketing is a viral marketing technique that attempts to make each encounter with a consumer appear to be a unique. the Fake IPL Player remains anonymous as ever. Although the concept of Buzz marketing is not new. This would in turn give marketers better insights into consumer behaviors. but the way Web 2. and millions.P AGE 12 “Fake IPL Player” blog did exactly the same thing. considered it a marketing gimmick of KKR. He used a simple and free user friendly web resource. This in turn resulted in the soaring TRPs of the KKR matches. But simulation and controlled conversations twist the facts to a certain extent thereby affecting the outcome of the data analysis as done by market research agencies. It has successfully executed a marketing campaign – “I hate Steven Singer”. But he reached thousands. Thousands of comments were posted in response to each blog post. Uncontrolled conversation would let people vent out their emotions without any constraints. the author tactically cooked up stories about infighting within the team. at the same time. There have been a few examples of successful anti-marketing in the past. and spread through word-of-mouth communication. instead of a calculated marketing pitch choreographed by a professional advertiser. such strategies take advantage of rapid multiplication to explode the message to thousands. Overnight the blog became the talk of the town. The Fake IPL Player didn‟t spend a single penny.com . The lesson Some claimed the Fake IPL player was a real life cricketer while others. This added flavor to the blog and generated further interest in the blog as well as in the KKR team. spontaneous personal exchange of information.0 is used these days. One such significant example is that of Steven Singer Jewellers. but about innovative marketing channels and creative strategies. Like viruses. It‟s not about the big bucks spent on advertising and promotion. it has surely taught all established and budding marketers a lesson. Fake IPL player‟s blog generated a greater buzz for Team KKR by encouraging uncontrolled conversation. This created a sensation for the cricket crazy masses which in turn strengthened the KKR brand. Whatever it may be. Though he did reveal his identity in his own cryptic way. As marketers put it “Any publicity is good publicity”.g. He is a “Mechanical Engineer” from NIT Rourkela and can be reached at mishra. Analyzing the right media channel and the right creative message is far more fruitful than some elaborate but outdated marketing and promotion practices. FGDs. Instead of blowing its own horn. This was the case with the Fake IPL Player. More than 8000 followers of the blog stand testimony to this fact.praneet@gmail. Shahrukh Khan et al. As a result it has become a landmark jeweler in the Philadelphia region. Welcome to the new „fake‟ world! Praneet Gourav Mishra is a 2nd Year student at IIM Lucknow specializing in Marketing and Finance. In-depth Interviews etc. creating the potential for exponential growth in the message's exposure and influence. Uncontrolled Conversation: the mantra of new-age advertisements Traditionally brands discouraged uncontrolled conversation on social media and read too much into the controlled conversations in a simulated environment e. it has opened up several avenues for the new age marketers. He realized the fact that getting one interested user (or customer) will eventually result in several others getting interested in the product. blogs. Buzz marketing Viral marketing describes any strategy that encourages individuals to pass on a marketing message to others.
16%).07% of the total 3. In order words lower POP group retailers were interested in gift based promotions. 9 said they are not interested in promotional offers so no further questions were asked about the promotions. Incentives offered to the retailer. There are a number of tools available to the marketer for the same such as price -off. specialty advertising.374 tons per month. for promotions across different Population groups (POP groups) and outlet types (Retailer or Wholesalers).52% of trade prefers instant gratification while rest prefers long term benefit. In the end we will consolidate the learning of the study. sales contests. allowances. We chose soap category (INR 6500 Cr) as it is the biggest category in FMCG segment. by the company or the wholesaler.P AGE 13 Effective Multi-tiered Promotions: Lesson from Santoor Trade promotions refer to any activity aimed at providing an incentive to the channel members for their support in marketing and distribution of the product. trade shows. the advertisement campaigns that are run bring the customer to the retail store. A structured questionnaire was designed and was pre tested on a sample of 7 retailers at Hyderabad city. The push effect is of special significance in product categories where the differentiation between products is not very high. One reason for the leadership position attained is the multi-tiered promotion policy of the company. Similar trend was observed across outlet types and POP groups. Considering the outlet type. Then we will describe Multitiered promotions followed by its application by Santoor brand. One approach of integrating varied promotional efforts is multitiered promotion. Considering outlet type. Every company must offer promotional schemes which cater to the needs of all types of retailers. Across POP groups. we have shown the promotion efforts of Santoor soap in a particular quarter.13% of traders prefer price-cut promotions while rest preferred gift based promotions like gift articles etc. The importance of such measures stems from the fact that the retailer is willing to sell only those products which have a demand in the market and thus allow him to earn a profit. It can be concluded that Within the FMCG sector. motivate the retailer to push the brand and affect the purchase decision favorably. Trade Preferences for tions: Primary survey Promo- Sales promotion is an essential part of any marketer’s activities. One such category is the FMCG. Within Soaps. 20K50K – 41. To show the effectiveness of this approach.08% of the traders were deal prone. Out of 101 outlets visited. In this article we will present the primary survey conducted to identify trade preferences there is a mix response in the market. At this juncture the retailer can have an impact on the purchase decision.19%) as compare to lower POP groups (OLP – 60%. etc. Deal Preference: It was found that 64. The survey findings are summarized below: Deal Proneness: It was found that 91. and also the largest brand in Andhra Pradesh with a market share of 37. These measures incentivize the efforts that a channel member puts in for increasing the sales of a product and create a „push‟ in the channel which may lead to a higher sales turnover. Through our study we intend to find the relevance of multi-tiered promotions for such categories.21% of retailers prefer instant gratification because of T HE LOOK ING GLASS .66% of retail outlets prefer price cut while 70. FLP retailers were more inclined towards price cut (76. yet at the point of sale there are numerous options available. 67. free goods. It can be classified as Trade promotion and Consumer Promotion The authors conducted a survey about trade promotion activities in the soap industry and found out that different types of traders prefer different kinds of promotions. Santoor is the 2nd largest brand in India in the popular segment. Time of Incentive: 56. 60.97% of wholesaler preferred price cut promotions.
which involved a lucky draw for the prizes (Spark Car. The similar response was from retailers and wholesalers. early bird prizes to kick start the program was valid for a period of first 21 days. These schemes are tactical in nature which is used by Sales officer to meet the sales target. by the last week of the month the weekly target achievement would have brought him within sight of the monthly target. Air Conditioner etc). Looking at the POP groups. Bajaj Motorcycle. follow different timelines individually and complement each other. we provide empirical data on the multi tiered promotion used by Santoor soaps during Jan-March 2009. . The schemes are QPS (quantity purchased scheme) to give extra margins and offers for bulk purchase. Now even though initially the retailer may think that the monthly target is beyond his reach and may focus on just the weekly scheme. To substantiate our proposal. Type of Incentive: It was found that 48.P AGE 14 wholesaler having considerate stocking capability and pushing power tends to opt more(64.09% of trade prefers to try some luck. The Sales Officer can tailor schemes on the basis of it. This position may motivate him to achieve the monthly target as well. For example – there is a weekly scheme (price or gift based) running which motivates retailers to buy higher stocks every week. leading to higher T HE LOOK ING GLASS sales for the company. If there is an appropriate multi tiered promotion mix. etc) Multi-Tiered Promotion Multi tiered promotion refers to promotional schemes running simultaneously at the same time and complementing each other towards meeting the sales targets of the company. The same trends follow in various POP groups.52%) for long term plans due to extra margins involved.70%) in lucky draw. the company can effectively achieve its sales targets.91% of trade prefers assured prizes while 51. Effectiveness of the Multi-tiered promotion mix was reflected in the increased sales during the scheme period of as shown in Table 4. During the Tambola scheme. The promotion schemes run by Santoor can be classified as in Table 2. planning horizon. The offering of the different schemes is based on the discretion of the Sales Manager – who may focus more on a particular kind of scheme for different traders keeping in mind their preferences.42%) were more interested in lucky draw and bumper prizes. the retailers from lower POP groups (20K-50K) were more interested (64. The different schemes may be price based or gift based. The unique feature. Secondary Scheme Adding to the regular margins and “primary schemes” each sales officer has been allotted budget of Rs 15 per CFC for the “secondary schemes”. We will measure the effectiveness by observing the impact of sales. The wholesalers from Metro (62%) and OLP (71. One Early bird Ticket for a zonal lucky draw was given if the trader obtains 50 Tambola tickets. the company also ran consumer promotions summarized in Table 5. Leanings from the survey – Preferences of traders for different promotions changes across outlet type and POP groups Customization of promotion schemes necessary for effectiveness of the same – a mix of price based and gift based promotions to cater to the different needs of different traders Promotion schemes with different timelines are preferred by different traders due to their inherent nature (outlet type. there is a monthly scheme wherein the retailer can win a gift on purchases of a specified number of units or earn a special discount. We will discuss Tambola scheme (Jan-Mar 2009) for this article. The prizes were worth Rs 300 to Rs 6000. in the Andhra Pradesh market The Santoor Way Santoor uses multi-tiered trade promotions with different time duration and promotion mix. At the same time. The trade schemes used during Jan-May 2009 were: Specific trade plan Wipro regularly announced long duration (23 months) trade plan to motivate trade for bulk purchase.
P AGE 15 Table 1: Parameters for Primary Survey Table 2: Multi-tiered Promotion by Santoor (Source – Personal Communication) Table 3: Tactical Weekly Scheme "Secondary Scheme" (Source – Personal Communication) Table 4: Effect of Multi-tiered Promotional mix on Sales (Source – Personal Communication) T HE LOOK ING GLASS .
higher push in the channel was complemented by a consumer promotion. the weekly neous scheme towards the achievement of schemes ran as before.ernet. and early bird scheme were close to the targets for the Tambola scheme – and in their effort to achieve this target. Wipro introduced early bird prizes to give traders dual incentive to participate in the plan. The traders. They also were seeing higher customer purchases due to the rejuvenated customer promotion campaign. the schemes. Late Push – In this phase. The preference for the scheme horizon also varies with the size. with the choice of offering price or gift based incentives lying with the sales manager. Thus we see that each of the schemes was complementing the others. The overall approach has been used in the market by Tambola Scheme was also present. Tambola scheme in its first phase. type and nature of the trader. Bachelors and Masters in were either not covered by the early bird Information Technology from Indian Institute of Information scheme. promotion would shift the consumer demand towards the freshly offered stock The Akhil Kumar Meshram is a 2nd year PGP student at IIM weekly benefits were for those traders who Bangalore. Conclusion The conclusion of the study is that the trader preferences for promotion schemes vary. the customer pro.in. between price based and gift based incentives. there was an increased focus on the Tambola scheme. We see that the multi-tiered approach for promotional mix was followed leading to higher sales and success in the market. The benefit of such a better results. vary the incentive horizon. the weekly schemes continued as before. They benefitted immensely reached at akhilkm08@iimb. along with the weekly schemes (price and gift based) and consumer promotion. which can provide different types of incentives to different traders.in.ernet. So the traders were purchasing more to be eligible for weekly and/or early bird scheme while the customers were also demanding more of the soap. strategy was that traders who had built high stocks in the first phase were able to clear them out. erences. and integrate every simultaMid slump – During this phase. Some traders prefer short term incentives which provide instant gratification while some prefer long term benefits. Multi-tiered promotion mix (weekly and early bird scheme) helped Wipro to motivate traders to purchase more so as to be eligible for another tier of incentive i. Thus. a promotion mix needs to consider all kinds of traders. In order to kick start the plan. To be effective. The consistency of conAbhishek Sood is a 2nd year PGP student at IIM Bangalore. At the same time. Multi tiered promotion is an approach for the same. without Santoor. with the continuing weekly offers. or were not interested in the long Technology and Management (IIITM) Gwalior and can be term benefits. The weekly schemes in the first two weeks brought them close to the target for early bird prizes leading to higher purchases in the third week. The motion also ran without change. He holds a dual degree. University of Delhi and can be reached at lated stock as superior change in consumer email@example.com. and effective execution can lead to the early bird scheme. The long term schemes generally fail to motivate traders during initial period. sumer promotion was a deliberate attempt He holds a Bachelors degree in Commerce (Honours) from Sri to help trader in finishing their accumuVenkateswara College. The short term incentive though brought buzz in the market it was amply supported by tactical weekly schemes suiting both the preference. the customer promotion was changed so as to motivate trader to purchase more and at the same time. gift and price promotion of traders.the overall sales target of the company. who had been utilizing the weekly schemes. Flash Start – This phase saw the launch of the Tambola Scheme. they could utilize the weekly schemes which were mix of price and gift based promotion as per their pref- .
The last section. Atul Kulkarni. Theatrical ries in India. Yashpal Sharma and Sima Biswas. and Mohan Rakesh. Girish Karnad. competitors to theatre and challenges faced by Indian theatre groups.P AGE 17 4P’s of Indian Theatre Marketing Theatre has been the soul of Indian entertainment since Vedic times. Visual arts have been categorized into painting. Noted contemporary playwrights like Habib Tanvir. actors. McCarthy (2001). who popularized Indian theatre and then moved to the film industry. Om Puri. an exhaustive treatise on the art of performance. 4P‟s of theatre marketing mix . literary art is classified into fictions and poetry. Performing arts is further subdivided in to theatre. ShahRukh Khan. Surviving play texts and treatises suggest that theatre existed in the Indian subcontinent from the dawn of civilization. Nautanki in Uttar jected to production. Sohrab Modi. Support and Pradesh and Bihar . Performing arts.Badal Sircar . Yakshagana in the script is ready then it is subKarnataka . Naseerudin Shah . Theatre needs mass marketization to make it commercially viable. Mahesh Dattani.e. This paper discusses some aspects of Indian theatre . costumes. But in spite of such a long period of existence . film production and the recent addition of computer/digital arts. The father of Indian theatre Bharat Muni who wrote Natya Shastra laid the foundation of structured training in field of theatre and dramatics between 200 BC and 200 AD. categorized arts in four broad sections i. and direction result in a presentable Mahesh Dattani. T HE LOOK ING GLASS . The second figure shows the steps involved in making a theatrical production and Theatre has travelled many centu. Ebrahim Alkazi .M Shah revolutionized the art of story telling and modern theater.M Shah Kutiyattam in Kerala. We must acknowledge the contribution of stalwarts like Prithivi Raj Kapoor. music and opera. THEATRE: PRODUCTIONS CHALLENGES & Digital marketing strategy coupled with accessible locations for staging live performances will help in attracting large number of audience in a timely manner and thus make Indian theatre a commercially viable business. Based on the comprehensive discussions with numerous theatre artists and theatre activists. the difference between the high art and popular art . Dharamveer Bharati and B. According to the Natyashastra of Bharata. Dharamveer Bharati and B. The different active scripts are conventionally sourced forms of theatre in India which are from historical writings or adapted still mesmerizing the art lovers are or written right from scratch. Media related arts are subdivided in to installation art. Visual arts and literary arts. dance. INTRODUCTION Theatre is an ancient aesthetic practice in India. Jatra in Bengal and phers. Badal Sircar. theater groups are still fighting to make theater commercially viable. The second figure shows the categorization of arts. Media arts. Lighting Mohan Rakesh. Any theatre production involves a series of rigorous steps. Girish Karnad. Manoj Bajpai . the paper lays down strategic outline for a theatre marketing plan in India. Theatre as an art form in India has its roots during the Vedic period. choreograHaryana . drama was a gift from the gods to the humans. form of a theatre product. process of theatrical productions . Swang in inputs from musicians. Once Bhavai in Gujarat . categorization of art . the needs of today‟s culture consumers . Amal Allana. Vijay Tendulkar. The different forms of theatre acts in India have given an incredible and unparalleled versatility to Indian art and culture. sculpture and crafts.bringing it to the people.
But the irony is that due to lack of funding and advertisements such cultural websites are struggling. This only helps to inform the existing theatre audience. 4 P’S OF THEATRE MARKETING PRODUCT High art Vs Popular art: The principal problem with the consumption of theatre products is the distinction between high art and popular art. theatre production houses use the cheapest means to promote their new products. Therefore minimal promotional efforts are nullified by limited access to theatrical arenas. The various new challenges in cultural consumption are: decrease in consumer time for leisure. Recently few corporate houses have started funding the theatre production houses e. This localized and captive distribution does not create awareness to potential audience. Small printed pamphlets are manually distributed outside the auditoriums. The smaller base shows the existing marketing effort and the bigger base shows the intended marketing effort. which is seen by a handful and eventually making it non consumable for Few theatre production houses have started using cultural websites to promote their new productions on cost free basis. They keep on producing high art for which there is a limited audience and eventually no body is able to produce popular art.P AGE 18 The second figure shows the marketing effort to reach culture consumers. Religare. -As there is less and limited consumption of available high art. The prominent and “talent rich” houses of theatrical productions like National school of drama . The other means of promotion is through word of mouth. As a result . those who want to produce popular art do not get sufficient funds to produce commercially viable popular art.g. The traditional form of publicity techniques used by theatre production houses are as follows: Occasional advertisements in leading news papers which occupy very small column width and do not create any lasting impression on potential audience. the masses. blurring the distinction between high and popular culture and changing patterns in public funding. And mostly the auditoriums which are used for such theatrical performances are situated in a few specific areas which are inaccessible to masses. and Mahindra and Mahindra. PROMOTION The promotional strategies used by theatre production houses are very limited. These challenges in cultural consumption have created a tough competition for the consumption of theatrical products. The figure shows two triangles with a small and big base. expansion of consumer options for entertainment. expanded exposure to world‟s cultural products. There are two prime reasons for this: -Those who can produce popular art in a commercially viable way indulge in producing self fulfilling high art. Due to lack of funding. T HE LOOK ING GLASS . In fact the artists with prime talent in these organizations become so self obsessed that they never care about the consumption of their art for the end consumer. These corporate houses use extensive publicity and advertisements for popular art but it has not resulted in creating an enduring audience. Matrix cellular. Naya theatre and Rangshankara fail to distinguish between the consumption of high art and popular art. Vodafone. But word of mouth promotions by existing audiences are not able to generate enduring audiences. therefore popularity of art is limited and this results in a decrease in audience.
On an average.It is difficult to ensure a full house in these performances and if the performance turns out to be a high art performance then the audience drops drastically and the production becomes commercially unviable. and promotion and place as well. Access to these places is limited to high end audiences who have taste for cultural products. lighting facilities and pleasant ambience. High art audience does not attend such performances and thus creating a losing proposition for theatre production houses. Therefore it is quite evident from the basic calculations that it is not profitable to run the theatre business with a specific and captive audience. the different sections of consumers should be targeted with specific theatre products and positioned in accessible locations. The total expense of Rs 425000 is averaged for six performances in a span of two weeks. In theatre marketing mix. it is evident that theatre production houses have serious problems with product. This means that in general six shows are performed for each production. The capacity of the auditorium is approximately 350. And the average seating capacity of an auditorium is 350 . Based on the segmentation. Popular art consumers do not try to reach to inaccessible locations but will reach in high numbers to accessible locations. This format is repeated for two weeks. Cultural organizations such as theatre production houses or Government funded theatre schools should diffuse the boundary between high art and popular art. Lighting personnel play a key role in designing the lights for the stage show and are generally hired by theatre groups externally for specific periods. which means that in order to break even each ticket shall be priced Rs 200. stage them in available select places are not able to attract mass audience. price. The key strategies for effective theatre marketing are as follows: Correct segmentation of culture consumer for consumption of different forms of art. Theatre production houses who hire or have fulltime / part time performers in it incur the expenses as shown in table 1. STRATEGIES FOR THEATRE MARKETING It is a well accepted fact in marketing that if you have problems in more than 2 P‟s of marketing mix then it surely means that the marketer does not understand the segment of consumers. In general the theatre production houses keep single show on Saturday and double shows on Sunday. PLACE The places where the theatre products are distributed need good acoustic arrangements. And theatre artist should produce theatre products related to popular art. Product Place matrix The above shows the product place matrix for theatre productions. shop- T HE LOOK ING GLASS . The enduring audience for these places is mostly constituted by those who consume high art products and therefore theatre production houses that produce popular art products . Therefore‟ theatre production houses rely heavily on a few select auditoriums. Theatre needs mass marketing to make it commercially viable. a theatrical performance involves 3 to 4 lead actors and 4-6 support actors. Based on the cost of theatrical productions it is quite evident that it will be difficult to break even with existing high art audience. Following inferences can be deducted from product place matrix: High Art consumers are less and they reach accessible as well as inaccessible places for art consumption.P AGE 19 PRICE Theatre in India has struggled to reach break even point. These auditoriums are generally run by government or small charitable trusts or some private hospitality organizations. therefore theatre production houses shall make their products available at accessible places such as cinema complexes. Therefore the average charge for each performance comes to about Rs 70000.
and concern that he would be driven out of business. PVR. on the other side if his store. "I'd like to lose at least another fifteen pounds first. he proudly unveiled a new and huge sign over his front door. Mumbai. In western world. When they started to discuss their lives. ACKNOWLEDGEMENT The author is thankful to the theater actors. It read. Delhi. "The glass is half full. Mukesh Sharma is currently pursuing his one year full time MBA (EPGP) from IIM Bangalore. which helps in cultivating a strong theatre culture in the society. Pessimism & Marketing The Optimist says. wide communication and deep distribution. theatre production house ASMITA. Digital marketing: Theatrical products are plagued from poor distribution and access problems." the first replied. non profit organizations and Government shall introduce Theatre in education (T. Performer Group. Digital marketing strategy coupled with accessible locations for staging live performances will help in attracting large number of audience in timely manner and thus make Indian theatre a commercially viable business. India is home to various forms of theatre in different languages therefore a correct segmentation can help theatre become viable.I. It's large sign was even more disturbing—"Lowest Prices. displaying a large sign proclaiming "Best Deals. he was horrified to find yet another competitor move in next door." CONCLUSION T HE LOOK ING GLASS . Therefore a theatre culture needs to be cultivated in Indian society and this can be achieved by partnering with educational institutes. Finally.E) as a compulsory subject in middle and senior school education. He has acted. "Your glass needs re-sizing. "Oh! Not yet. INOX etc should be contracted to spare at least one screen for live performance and promote theatrical products in such spaces. The cultural organizations should partner with cinema complexes to stage the live performances in such places." After his initial panic. Recently in few select cities some theatre production houses have tied up with digital marketers to allow web based bookings but a large part of Indian theatre is untouched to digital marketing concept. directors and writers from Delhi‟s National School of Drama. Therefore a unified effort shall be raised to help theatre production houses to market their products digitally to art consumers. one said. One of the crucial issues related to theatre marketing is the booking of tickets. It can be marketed to a mass audience if proper segmentation of high art consumers and popular art consumers is done. "The glass is half empty. Theatre production houses. Marketing Jokes!!! Two women were shopping. He has spent more than 10 years in automotive industry. Popular art lovers and high art lovers spend their time in public places such as mall and cinema complexes. Theatre can become commercially viable by integrating mass marketing and mass consumption through low cost positioning. Next day." The Marketing Consultant says. Finally. he looked for a way to turn the situation to his marketing advantage. This will help in creating art awareness and art consumers in our society. directed and produced various plays of social relevance in Delhi. in Delhi. "Seems like all John and I do anymore is fight. for the inputs provided. "Main Entrance!" The Difference Between Optimism. He runs a non profit theatre group. Catch them young: All of us become a routine audience to film entertainment because we are exposed to it through television from childhood days and thus we become culturally habitual to it. I've been so upset I've lost 20 pounds. Bangalore and Prithvi theatre." Not long after that. an idea came to him." "Why don't you just leave him then?" asked her friend.P AGE 20 ping malls and other community places. The cinema complex owners like Fun cinemas. it can be concluded that Indian theatre which exists in various forms in India has huge potential." The Pessimist says. Rangashankara." Marketing moral: Ya gotta have a goal! A retailer was dismayed when a competitor selling the same type of product opened next-door to him. Theatre in education constitutes an integral part of educational curriculum.
Obama’s landslide victory in the recent US elections has brought forth the effectiveness of strategic. simply put. rather than products and services. What is interesting to observe is the evolution of political marketing through the embrace of new technologies and distribution possibilities. prerecorded voice clips and emails to its database of 20 million email users T HE LOOK ING GLASS .Orkut and Facebook. in the 2004 general elections. For his efforts. Advertising and one of its most acclaimed applica. user generated content. Some reasons for Obama‟s success were his willingness to experiment with new communication tools and his understanding of the need for an evolving communication strategy. outperforming brands such as Nike and Apple. The use of social networking sites. However.efforts were rewarded by the positive keting alone. Although political marketing uses many of the same concepts used in traditional marketing. especially „MyBarackObama. However. for revamping its campaign website. gosphere. to leveraging the reach of modern technology in raising funds from millions of common people. social networking sites and mobile phones in a political campaign. Different aspects of political marketing in the US are studied with emphasis on Barack Obama‟s widely lauded campaign.Age recently named Barack Obama tions was its use in Barack Obama‟s “Marketer of the year”. pushing out text messages. Starting from the usage of an effectively delivered. It attempts to accomplish this by influencing citizens‟ thoughts on various issues. such as the citizen journalists. well -designed political marketing. we attempt to provide a sense of these changes. one campaign also capitalized on the well needs to realize that social media is known social networking sites. a virtual phone bank INTERNET & OTHER MEDIA USAGE where Obama supporters could call Emerging media and social networks undecided voters in Pennsylvania are changing the rules of marketing. and President Ronald Reagan harnessed the power of television to communicate his messages. In contrast. blogosphere and video games to engage not just the donors and volunteers but all the citizens. It started with the India Shining campaign of the BJP. Obama‟s campaign brought him up to the media section where he was placed with print reporters from the major dailies and TV crews from the networks. When one blogger asked to go to the media section at a Hillary Clinton rally in Boston he was turned away (because he was "not a real journalist") and had to cover it from the back of the crowd. Kennedy pioneered the use of speech writers and a shift to television. while attempting to understand the reasons for the differences observed. Obama has perfectly demonstrated the art of implementing a successful marketing strategy.buzz that Obama received in the bloself! Its effects can be felt far and wide. but that of marketing it. It was just 5 years back. With Marketers across industries are slowly more than 2. 2008 presidential campaign. The corresponding aspects are analyzed in the Indian scenario as well. A trademark of Obama‟s campaign was his appeal to the undecided voters and uncommitted supporters through the Join Now campaign in his website. it is different in the sense that ideas and concepts are sold in political marketing. If President John F. Nearly 5% of the BJP‟s campaign budget was allocated to the e-campaign. our politicians could surely benefit by taking a leaf or two out of Obama’s book. There are numerous examples to illustrate that Obama‟s campaign team understood the power of the new media. is marketing designed to induce people to vote for a particular individual or a political party.P AGE 21 Neo-Political Marketing Political marketing. Though the Indian socio-political scenario is not exactly the same as the US. the Obama tance of this new media. Indian politicians too have not been far behind in their efforts. consistent message across the different phases of the campaign. President Obama leveraged his website. and a place to raise money. that the internet was used for the first time in Indian politics.com‟ during the campaign as a message board for local rallies. Barack Obama‟s team can be credited with pioneering the use of internet.6 million friends in beginning to understand the impor. In this article. We also provide certain observations on whether the Indian politicians can take a leaf out of Obama‟s book. Such not changing the face of business mar.
This applies both in the US and Indian contexts. Now. the recent tax exemption to the corporate sector for political funding is expected to significantly raise the contribution from this sector and bring about higher transparency. Traditionally. Orkut and YouTube. Fortunately for them. This time around. given the increase in the number of bloggers in India. to kick T HE LOOK ING GLASS start the campaign and to register youth party members through the party website. the urban youth have been known to shy away from elections.000 hits per day. Apart from the significant portion of funding that comes through black money. These bundlers were typically highpowered CEOs and lobbyists. these methods are slowly finding more acceptances from people who represent different walks of life. while his colleague and Gujarat chief minister Narendra Modi. Through its Jai Ho video campaign. Indian National Congress has taken a step ahead of just promoting the party and has chosen to project India as one of the most technologically advanced nations. Parties have even gone to the extent of wooing those not residing in India.in/) and Mr. The CPI(M) has even admitted that since 54% of the Indian voters are youngsters. In the Indian context.K. Also. or more from friends and associates.000.tdpuk. had set up 50 internet kiosks in the State of Gujarat. In the recent parliamentary elections.000. and offering campaign-related mobile ringtones for download. The youth leaders can convey their messages to a larger section of the masses and attract more audiences through social networking sites. In terms of using technology as a means of garnering volunteer support in India. The list includes prominent politicians such as L K Advani (lkadvani. based on a song taken from the much acclaimed film “Slumdog Millionaire”.P AGE 22 and 20 million phone users. can be used to maintain a rapport with undecided voters. the politicians have found a way to reach them without stretching their election budgets. has over 3. According to the BJP. $200. by having a vernacular medium of interaction and training programs can be conducted for the people who haven‟t accessed the internet before. the internet may be the best medium for reaching out to them. fundraising for elections has majorly relied on industrialists and lobbyists. The Indian context is not very different. each of whom committed to bring in $100. The advantage of these campaigns lies in its cost-effectiveness. Google SMS and widgets.org/). He successfully created a muscular network of „bundlers‟ (designated by him as „Pioneers‟ and „Rangers‟). the opinion of citizen journalists about the party can help increase the number of volunteers.000 supporters on Facebook. Though the political party does not favor digital technologies (since it replaces human labor). LK Advani‟s website has become very popular and receives over 250. Take for example. Ananth Kumar (http://ananth.org) for their election strategy of 2009. Though BJP lost the 2004 elections. as more people would read and be influenced by microblogs. the major backers of the Congress party were the Aditya Birla group and the Tatas. Congress has shown the way to go for election campaigns in India. FUND RAISING Traditionally. the demographic profile of India‟s electoral base has changed and the usage of technology for attracting voters is increasingly being accepted by the masses. uses tools such as podcasts. during the most recent election. a huge share comes from formal business funding. based non-resident Indians. such as the website created by the Telugu Desam Party (http:// www. In fact. Advani is also on Facebook. Since then. The Advani@Campus initiative seeks to build a grassroots volunteer campaign “to contact and mobilize young voters in thousands of college campuses across the country” The leftist Communist Party of India (Marxist) is not too far behind either. the usage of internet kiosks can be made more effective. George Bush‟s fund raising campaign for the American presidential election in 2000.cpim. it has shown a clear preference for cyberspace-enabled propaganda (vote.com) for U. internet sites and blogs. Indian National Congress‟ youth wing leader. Rahul Gandhi.com‟. a number of politicians have launched their own websites. Sites similar to „MyBarackObama. while the BJP received substantial funding from the Sterlite group of Anil Agarwal and the . the Congress party.in) to lesser known names such as Vijay Kumar Malhotra (http:// vkmalhotra. the efforts can be considered to be successful as it set the stage for the use of advanced technologies in an election campaign. Twitter.
So the parties need to think of other cost-effective means of fund raising. the red stripes indicating farmlands. he did not fall shy of attacking the incumbency and the opposition when it was needed. Consistency in the message conveyed at the national level is something that is seriously lacking. Rather. cheap and far less intimidating way of fund raising for political novices as compared to getting big cheques written. There is a huge section of the Indian middle class that keeps itself aloof to politics. internet penetration is quite low in India. infomercials. he was able to achieve coherence in the minds of the public. In fact during the period of 2003-07. One is the content of the message and the other is the consistency of its delivery. and Mitt Romney. The significance of Obama‟s viral fund raising wasn't just in driving up dollar totals. policy details on how to achieve the change he sought to deliver formed the major focus of his campaign. Notably. In fact. a . The content of Obama‟s message was one of hope. This consistency was manifested across the various platforms of message delivery – speeches. and blogs. The unanimous response from everyone was „CHANGE‟.50 per household would result in a huge fund due to the sheer size of this electorate. it is fair to say that people would have had a hard time figuring out a word. In this context. In spite of the fact that there were lots of issues where T HE LOOK ING GLASS Obama could have attacked the incumbent government. the Congress‟ choice of the Aam Admi (Common Man) appears to be more appealing and in tune with how a vast majority of the voters perceive themselves. and inclusion – ideas that resonated with the majority of Americans reeling under a crisis of confidence both in the economy and in the nation‟s identity in terms of its foreign policy. let alone the word being the same. with their rapidly growing penetration among the Indian middle-class. However. Unlike the US. even funds of the order of Rs. While such a concept draws upon mythology and people‟s beliefs bringing to their mind some kind of a vision of an idealist society. On the other hand. They later turned into door knockers and phone bankers to support his campaign. marketing strategist David Meerman Scott recalls asking a group of 300 people in Riyadh to think about the one word that that they felt the Obama campaign stood for. there is no dearth of vague symbolism attempting to bring together citizens and communities of diverse characteristics under a common umbrella. whose purported aim is to bring in Ram Rajya (Rule of Ram). With the necessities of coalition politics and rise of regional players. debates. Almost half of Obama's unprecedented $639 million in funds raised from individuals came from small donors giving $300 or less. it does not really say anything about the policies to be adopted by the party in any domain such as education or foreign policy. we find that there is both a lack of content and inconsistency in the messages communicated by most political parties. in India. there is very little symbolism present in the other candidates‟ logos. On the other hand. Consistency in message also played an important part in the success of Obama‟s campaign. The internet provided a quick. the blue and red colors used to represent the US flag. can be a good option. However. Hillary Clinton. the two parties raised close to Rs. Mobile phones. 20 . The role of internet in Obama‟s fundraising cannot be overemphasized. some of Obama‟s campaign groups had set up systems by which donors could have their credit cards billed automatically in easy-to-budget monthly amounts of as little as $20. Through this lesson in successful integrated marketing. Had that exercise been repeated for John McCain. as can be observed. change. Consider the example of the BJP. Political parties can probably enter into agreements with mobile service providers and raise funds through premium rate SMSes (the way reality television programs make people send premium rate SMSs to express their support to specific candidates in the show). Obama‟s fund-raising strategy stands quite unique.P AGE 23 Gujarat-based Adanis. MESSAGE STRATEGY There are two main parts to the success of Obama‟s message communication strategy. and the O‟s whitespace symbolizing the sun shining over the plains evoking sunrise. If our politicians are able to tap in to this segment. Even supposedly smaller aspects of the campaign such as the logo (shown in Exhibit 1 below) were used to communicate the same message to the public: the „O‟ standing for Obama. But here we also need to pay specific attention to the Indian context. There are very good lessons for Indian politicians in Obama‟s massive viral fund raising. John Edwards. On the contrary. 53 crores through such sources. he did not take up a negative campaign dwelling on just the opposition. It is widely accepted that such a personal approach in massive fund-raising resulted in millions of donors feeling personally connected to Obama.
in early user tests they noted people just sitting looking at the screen. Venkatasubramanian S is a 2nd year PGP student at IIM Bangalore. Anna University and can be reached at venkatas08@iimb. which has a lower preference among the MBA graduates. To solve that particular problem the Google Copyright message was inserted to act as a crude end of page marker. He holds a Bachelors degree in Computer Science from CEG. we have entered an age of ideological fungibility. including Antarctica.ernet. Vivek R is a 2nd year PGP student at IIM Bangalore. As Shekhar Gupta puts it. Arun Manohar is a 2nd year PGP student at IIM Bangalore.P AGE 24 party‟s message and what it stands for often gets lost in the scramble for power. „kept their options open‟. After a minute of nothingness. irrespective of them winning or losing.in. Don’t believe us? Check Google Validation The infamous “I’m feeling lucky” button is nearly never used. Employees are encouraged to use 20% of their time working on their own projects.in. This is because of the increasing application of technology and marketing concepts in a field like politics. the tester intervened and asked ‘What’s up?’ to which they replied “We are waiting for the rest of it”. Google started in January. Google has the largest network of translators in the world. Abhilash Sridharan is a 2nd year PGP student at IIM Bangalore. there is still a long way to go before we can start talking about having branded politicians and parties which command a huge brand value!! Thirteen amazing facts about Google Google receives daily search requests from all over the world. Google News. The term was coined by Milton Sirotta. Orkut are both examples of projects that grew from this working model. ‘Googol’ is a mathematical term 1 followed by one hundred zeroes. Google consists of over 450. Due to the sparseness of the homepage.ernet. It was a comfort button. from small to the large. Number of languages in which you can have the Google home page set up. by Ph. including Urdu.manohar08@iimb. Latin and Klingon: 88 (Eighty Eight) Google translates billions of HTML web pages into a display format for WAP and i-mode phones and wireless handheld devices.in.D.ernet. However. He holds a Bachelors degree in Metallurgical Engineering from IT-BHU Varanasi and can be reached at abhilashsr08@iimb. Google’s Home Page Has 63 Validation Errors. This was witnessed during the run-up to the 2009 election results as each party.000 servers. racked up in clusters located in data centres around the world. in trials it was found that removing it would somehow reduce the Google experience. A spelling mistake made by the original founders who thought they were going for ‘Googol’. 1996 as a research project at Stanford University. The name ‘Google’ was an accident.in. nephew of American mathematician Edward Kasne. Users wanted it kept.ernet. He holds a Bachelors degree in Electronics and Communication Engineering from College of Engineering. at least in India. He holds a Bachelors degree in Electrical Engineering from Indian Institute of Technology (IIT) Madras and can be reached at arun. The marketing story of the Obama campaign as well as those of the other aspiring politicians in India and the United States can be considered to be immensely successful. T HE LOOK ING GLASS . candidates Larry Page and Sergey Brin when they were 24 years old and 23 years old respectively. However. Anna University and can be reached at vivekr08@iimb. While it is not fair to criticize this and probably irrelevant to compare with the Obama campaign (very different political systems and socio-economic structures). it does appear probable that the confusing messages and inconsistency between what is conveyed and what is done to take advantage of short-term benefits will only result in diluting and alienating the supporter base of a party and erode its brand value.
Throughout your lifetime. The next big breakthrough in the education sector came with the privatization of education in India. This was essentially the time when the need of „differentiation‟ arose. grammar. institutions of higher learning and universities flourished in India well before the common era.The book of laws. I would request the readers to treat education as just another industry. were taught their trade and the lowest class of the Shudras was generally deprived of educational advantages. We will always be indebted to them for what we are today. Along came a new wave of colleges mushrooming through the length and breadth of the country. a supporting agent to other industries and services. and the treatise on statecraft the Arthashastra were among the influential works of this era which reflect the outlook and understanding of the world at the time. philosophy. medicine. the Manusmriti. what was on the top of your mind when you were in your final year of graduation? T HE LOOK ING GLASS . The knowledge in these orders was often related to the tasks a section of the society had to perform. and continued to deliver education into the common era. The important urban centres of learning were Taxila and Nalanda. But before we critically examine and draw conclusion in the later part of this article. the answer to all the above questions lies in one simple word. Maulana Azad. the Kshatriya. arts and crafts. These institutions systematically imparted knowledge and attracted a number of foreign students to study topics such as logic. I guess we can safely assume that education as an economic agent goes much beyond the primitive concept of schools and universities. Following independence in 1947. And ahoy!!! We are flooded with companies providing services like education loans. And hardly anyone would disagree with me when I say that it holds much more prominence in the Indian context. metaphysics. the Brahmins. let‟s just contemplate what exactly the education sector is doing for its own popularity or publicity. But my request will lead us to a logical and thoughtful analysis of strategic marketing in the education sector. were imparted knowledge of religion. eg. The priest class. rather the most important at some occasions. Secular Buddhist institutions cropped up along with monasteries. What was the first thing that came to the minds of your parents when you were a 4 year old toddler playing around expertly with the Lego building set gifted to you by your aunt? What was the most important question facing your family when you had set foot in class Xth or XIIth? And going by the current trends. We start this article with a few obvious yet interesting questions. So. India's first education minister envisaged strong central government control over education throughout the country. that‟s true. education. Yes. were trained in the various aspects of warfare. A number of urban learning centres became increasingly visible from the period between 200 BCE to 400 CE. But does the role of education as an economic agent limit itself at the educational institutes only? Let‟s just have a quick look around us before we jump to a conclusion.P AGE 25 Strategic marketing for Educational Institutions Apart from a few conspicuous exceptions. Our parents spend their lifetime earning with their sweat and blood to ensure a decent and possibly the best education for us. among others. Or let‟s just turn on our Television sets. we in no way are trying to undermine the importance of teachers and our Alma Mater in our lives. Monastic orders of education under the supervision of a guru was a favored form of education for the nobility in ancient India. child life insurance and many more. with a uniform educational system. These institutions imparted practical education. which goes on in your mind either consciously or subconsciously. By saying this. education is one of the most important things. Now that we have established the importance of education as a self sustaining and most importantly. medicine. and other ancillary branches while the warrior class. Education as an industry was seeing a new dawn with some big corporate names entering the arena.The business class. Apart from the monastic orders. the Vaishya.
But when you see education as an industry. education is a global product with institutions worldwide competing for students and finding ever more creative ways to satisfy student needs and preferences. The main sectors picked are foreign education setup and distance learning programs. But don‟t let these mind boggling figures confuse you.credits and recognition between home universities and foreign institutions Improving the cultural outlook of the universities Focus on networking through internet like social networking sites Moving on. the main questions that come up are: „How far are educational institutions really “customer-oriented”? Do they choose the most appropriate market segments for their organization‟s strengths? Is there consistency between the segments targeted and their product offerings? How far are they aware of the complexities of the decision processes of the “buyers”? Is it appropriate for educational institutions to become “marketing-oriented”? So in the light of the above questions let‟s now analyse the different possibilities in the education sector where marketing can be applied to get favourable results. Also. creating and investing in assets to support internationalisation. Positioning and focus in a competitive environment. The first sector we pick up is the foreign education sector. reliability. Amidst all this little or no attention was paid to the quality of infrastructure inline with the need of international students in the home university. And now. scholarships & use of alumni. global partnerships and alliances and creating a brand dialogue with the students are a few among many initiatives of the foreign universities. Hence. With the continuing rise in the preference for flexible distance learning. The pertinent question which the foreign universities must ask themselves is “can they differentiate themselves on the student experience instead of qualification?” The answers to all these questions have been found out by the foreign universities in the following ways: Going alone is becoming increasingly difficult so renewed focus on partnerships and collaborations Growth of private sector provision and transfer of provisions from public sector to private sector Joint venture ships public-private partner- Renewed focus on experience. with an increasing number of international universities offering similar courses at similar prices at multiple locations.P AGE 26 The need to provide students with a cause/ motivation to join college ABC instead of the competitor‟s XYZ was what propelled the education sector to turn towards big time advertisement in electronic. the threat of commoditization of education looms large.2 million students study abroad worldwide and the numbers are estimated to grow beyond 3. educational institutions are finding that when students and faculty have significantly different cultural backgrounds and learning styles. The leading 3 destinations for international students reap in excess of USD 45bn$ annually. 2007 forecast). through the very famous 4P approach and analyse what can be their differentiating factors : - . to the educational institutes. some of which include increased competition from the national (& not only international players) and a focus on the students‟ demands with increasingly available choices and information. 2. lets study the application of marketing principles. to change this we require a resource demanding transformation process. However. safety and employability of foreign students Interoperability. the expectations of the learning experience can be unfulfilled. print and other modes of mass media. The traditional marketing approach was primarily based on the focus of sales.72 million by 2025 (IDP. According to the latest statistics. staff and facilities. Being truly international is no longer an option. The foreign universities need to rethink their strategies and invest in quality infrastructure. globetrotT HE LOOK ING GLASS ting by sales representatives and agents. this approach is now facing many problems.
PLACE It is a means of getting the product into the consumer‟s hands. Relationship marketing.P AGE 27 PRODUCT Some authors suggest that education is a product. and doing it with authenticity. and sales promotions.in T HE LOOK ING GLASS . the more important the brand in establishing the differences. making use of existing students to canvass for potential students is being practiced by foreign universities.e. Moving on to the last section of the article. The meaning associated with price changes is contextual. By doing so. The vehicle which is used to reach the students can be a physical location or a virtual space where the connection speed of internet used. The products have a different name. the concept of referral marketing can be a boon for the Indian educational set ups which are struggling to retain their students in the wake of increased foreign competition. we shall see the future of marketing techniques in the educational set up. PROMOTION Promotion is a means of communication between the seller and buyer. public relations.ac. In many ways relationship building and maintenance is the essence of marketing. logo. referral marketing may be an Innovative tool in their marketing efforts. with the idea of creating a "ripple effect" as members of that group help carry the school's messages to their friends. the greater the perceived similarity of products. For example. As more and more foreign universities are wooing students of Indian origin to pursue courses offered by them. So much is the importance of marketing in the educational set ups that there have been research papers about quantifying the demand forecast in the future. Pricing policies will impact student choice between institutions. feelings based on positive interactions and perceptions. we can learn from the students and then apply that knowledge to attract future students while meeting the needs and improving upon the services offered to the current students. Hence. If one higher education institution wants to enrol more students than other. The existing students are perceived as important among stake holders. publicity. Kaye suggests looking at distance education as a product instead efficiently use our resources. Referral marketing i. it will need to use corporate advertising or engage in activities that create a liaison between the students and the institutions. which makes it less important for them to establish their corporate identity. Some schools will clearly feel that they are different from others. The first point we consider here is the referral system of marketing which though has been used for quite some time. Its important to realize that‟s it is easier to grow with happier people than it is to find new strangers to accost” -Seth Godin Mafla Mudgal is a 1st year PGDM student at IIM Calcutta. The personality of the place sends messages to the target audience. He holds a Bachelors degree in Mechanical Engineering from Delhi College of Engineering and can be reached at maflam2011@email. colour and physical attributes. The marketing exchange process is used to build and maintain positive relationships with continuity and consistency. it‟s about spreading ideas you believe in.. sharing ideas you are passionate about. Publicity provides media coverage to the institutions and visibility can create confidence about an institutions reputation and quality perceptions. the needs of the student/ consumer should be assessed. e-mail. The idea is to develop and maintain strong personal relationships. Institutions have different pricing policies and all institutions compete against each other to increase their application and enrolment rates. A good way to begin relationship marketing is to build concentrated core groups of key target audiences and focus attention on that group. PRICE This concept embodies more than a value that someone will pay for it. We can say that distance education institution is a brand and a brand is a way of differentiating one product from another. I would like to wrap up this article by a simple yet powerful quotation : “marketing is not about trickery or even insincerity. For this we should be well conversed with the concepts of relationship marketing.iimcal. means developing long-term bonds with users by making them feel good about how an institution of higher education relates to them. as the name suggests. associates and colleagues. personal selling. can serve as a differentiating mechanism. It includes advertising. or that the market perceives differences. finds an increased relevance in the current scenario.
This epoch marks the demise of classical marketing thought. The holy portals of most marketing theories. the motorized car. This period actually saw the maturing of marketing thought into an important field of theory and practice from both academicians and business.segmentation. if three out of the four P‟s are zero? The brand and company in question? Google! Their products are free. the third epoch! The first epoch of marketing was the most stretched. customization and computer or technology innovation.Some of it leading to micro . shape. As I said at the start. size. You thus had the “4 P‟s of marketing”. The advent of the internet was perhaps the catalyst for change and accelerated the transition of marketing from the previous era. color or even in terms of irrational. cost. tooth-paste. brands and thereby marketing has changed completely. many marketers continue to derive succor from the building blocks of GLASS We are in the middle of a great revolution in marketing deed and corresponding thought. In India. . and instead brings to the forefront multiple possibilities in the sphere of marketing. psychological attributes. I must admit it was a struggle not to call this “Marketing 3. a bulb light and so on. As one of the senior managers of this company put it: What happens to the principle of 4P‟s of marketing. the safety pin – and thus set the stage for elementary definitions. This was the period when products started being invented to meet basic human needs – the electric bulb. demanding. intelligent. Even today. have no loyalty and are pressed for time. Today consumers are (always) accessible. The progress of fast moving consumer goods like soap. and moving from the rational to the irrational and then beyond. emotional. and led to the need for “differentiation”. detergent etc provide a graphic representation of the evolution of the second epoch of marketing. and thus the need to stay away from the debate of Marketing 3. This epoch is all about Experience Marketing. Infact. connected. The old and dated concepts don‟t hold any more. A brand has to be creative. They don‟t wish to be interrupted. best represented as the evolutions across consumer expectations. no this is not just about the internet and internet marketing. This epoch continues to question the gospels of marketing thought. as often said the internet is to the 21st century what electricity was to the 20th. Consumer behavior and expectations have changed dramatically over the last few decades. The advent of more players saw the resultant increase in options.0”. and consequently brands making that extra effort to establish consumer connect. we experienced this era much after independence given the overall shortages and a nascent manufacturing industry being set up. including availability and communication. The early seeds of our profession were laid somewhere in the wake of the Industrial Revolution and continued till the early part of the last century. Much of marketing revolved around ensuring the transfer of the good from the manufacturer to the user and all the elementary functions required to make it a success. defined your “target segment” and build a “brand positioning statement” and tried to build “consumer loyalty”.0. They lack patience. it is important to give a quick dekho into the past from my perspective and that will also help lay the evolutionary path. This epoch also saw the transition of marketing from selling products to establishing brands. The basis of products. engaged and hopefully relevant. However. This leads us to the third epoch of marketing. skeptical and even vengeful. sold to or campaigned any more. It could be in terms of the rational like form. philosophies and frameworks as we know it today were built for this era. What is it? When did it start? Was it the advent of the internet? I‟ll address the questions in reverse. empowered. The second epoch of marketing saw many success stories through the late 19th and most of the 20th century. this era.P AGE 28 Welcome to Marketing. this sobriquet has already been usurped by many marketing scholars and practitioners of the current era to define different aspects and offshoots of internet led marketing. Instead the heralding of the third era of marketing! To reach the tenets of the current era. I am not going to suggest that all marketing in the current era is equal to internet marketing (though much of it is related to the internet in some way or the other). and focused on manufacturing – a car provided transportation. the T HE LOOK ING . The ground-work of this marketing era had thus started a couple of decades earlier and we are now in the midst of it. This era was also completely product centric. feature. There are three different vectors of change in this epoch.
In other words. The onset of this era is perhaps best reflected with the emergence of a brand whose experience can't be equated with any sensory aspect – touch. and a promise of technology innovation. participative. fastest and most impactful manner. but instead hope that they can interest and engage the consumer and thereby win their commitment.1980 Brand Differentiation Emotional Loyalty Long Third 1980 till today Experience Engagement Sensory Commitment Ephemeral company doesn‟t really advertise and there isn‟t any specific placement of its products. somewhere in the world! In today‟s era the marketplace has become cluttered with a plethora of choices. Technology innovation is the driving force behind this accelerated evolution. And the internet provided the catalyst for bringing these possibilities to the vast multitude of humanity in the best. environmentally friendly. Personal products brands moving onto personal care are one end and Luxury brands extending their portfolio to provide a range of accessories and accruements is another. for sharing his industry insights on the evolution and future of marketing. responsible. . transparent.Prakash Bagri is currently Director of Marketing. consumers expect their brands to be honest. and the immense possibilities that technology can enable. And as marketers we need to define what really we wish to create in order to make an impact here.Prakash. are thankful to Mr. longest ever and most extensive co-operative marketing campaign “Intel Inside” and its signature bong is heard every minute. and to multiple senses. The Marketing Epoch‟s if tabulated across different brand elements would look like the table shown. socially conscious. product or service and more likely a combination of all the three) is one which is able to engage with customers in a holistic manner appealing to their senses and thereby establishing an emotional connect with them. where it fits in one‟s life and most importantly how it makes you feel. The brand in question? Yes. hear.P AGE 29 Epoch Time-Period Marketing Focus Proposition Appeal Association Life-cycle First 1760 – 1850 Product Functionality Rational Availability Eternal Second 1850 . in this era the one who stands out (and it could be a brand. Today. And there are technology tools which help marketers meet this role. This is the new realm of marketing. Many brands are redefining their framework from being a packaged good to a complete service. Intel. And a brand which has constantly stood as guarantor of break-through computing performance. and hopefully when she needs spend time or money to acquire it. The Intel brand has created the world‟s best known. We therefore need to figure out a complete engagement plan with the consumer appealing across different touch points. Customization and personalization is de rigueur for a brand to stand out amongst the clutter. This has to be unobtrusive. Though marketing has to be noninvasive. attention and hopefully. co-operative etc and in return they reward you with their time. apolitical and still impactful. We need to provide a holistic experience which communicates the tenets of the brand and expect the consumer to thus connect with it. their money. an expert with more than a decade of marketing experience. An ingredient brand which signifies trust and reliability. Intel South Asia. as editors of this digest. brands shouldn‟t seek loyalty. Today. The brand experience T HE LOOK ING GLASS is what it does. At the same time consumer demands have evolved to a level of “soya milk froth free decaf latte” granularity. We. see or taste. the brand has to still attempt engagement and interaction with the consumer. Mr. This epoch of marketing is based on a foundation of technology. Above. feel.
After the core operation. and in the process. An event of such a scale and scope. Disruptive innovation. it is marketing that ensures that the target consumer segments are reached. service or in any form for that matter. We look at the factors that could help prevent such a phenomenon. to radically alter the development. where a concrete protection mechanism (read Patents and the like) is absent. where every organization is constantly on the lookout for means to differentiate itself from the others that comprise its industry. and halfway to becoming the next homogeneous commodity. redefine the way business is done. this newly irresistible area becomes the hotspot for all firms considered worth their salt. for ways to achieve sustainable competitive advantage. we would look at the core issue through two viewpoints: 1) Managing innovations in the marketing domain. In such times. one often comes across strokes of genius. with augmentations inherent to their respective firms. In industries unlike Pharmaceuticals. directed marketing campaign. both of which symptomize the winding trails of commoditization. and very conception of said product/service/industry. due consideration to this factor. However. referring to a concept that can radically alter the trajectory of the industry itself. and then to make matters worse. and the means to effectively leverage upon the marketing function. Thus if a retail chain were to offer a drastic 70% off Sale once a month. be it a product. with more players engaging in similar endeavours. Coming to the issue of commoditization with respect to disruptive innovations. over time the idea loses its initial sheen. And as is the case with any mine that strikes gold. for ways to survive. what had been a breath of fresh air to consumers a week back. 2) Capitalizing on core innovations by leveraging upon a sound. that we endeavour to step in. is often what one would call a disruptive innovation. Thus. and that the external gaps in value delivery are minimized. And with that of course. set a particular market player apart from the crowd. so as to be able to derive sustainable competitive advantage from them. Economists and game theorists would refer to this phenomenon of decaying valuation as “Tragedy of the commons” or “Decreasing marginal profitability”. very simple terms. is an attractive alternative for firms. Given the significance of marketing. which in the blink of an eye. And it is here. we consider the next phase wherein these very innovations could get commoditized. then at least sit down with it. Discounting cases of deliberate image makeovers (which entail a separate. Coming first to marketing innovations. we can see from the very outset. Today’s business environment is characterized by intense competition. and get to know it better! Marketing as a function plays a key role in the effective delivery of any value proposition. T HE LOOK ING GLASS . dedi- cated campaign altogether). that such a mass replication is possible only when the entry barriers for such an introduction are either too low. play straight into the hands of the more suave competitors. is suddenly spreading all around. the competitors are quick to replicate the product/service/model. wearing itself off from overuse and exploitation. and in very. directed primarily at the basic need to survive. then it alone would not serve the purpose of truly differentiating it in a sector growing at a frenetic pace. or easy to transcend. and even looked at in that industry. firms continuously watch out for avenues by which to gain competitive advantage over other industry players. A disruptive innovation is one which breaks the continuing stream of incremental i mprovements an d changes. and adequate preparedness for the same is necessary to ensure that an ingenious innovation does not backfire. and if not devise a way out of this piece of oft repeated history. one can readily observe that the marketing strategies adopted by a firm should be determined to a great extent by the existing brand perception that it enjoys.P AGE 30 Sidestepping the Commoditization of Disruptive Innovations We live in a world today. In this milieu. Thus. one can see that a gauche mismatch between the brand‟s identity and the new offering portrayal can lead to undesired confusion and ambiguity in the impressionable consumer psyche.
rather. Further.ac.). When such a stage is reached. Finally. it won‟t be long before the firm starts to bleed. In such a case. Thus.iimcal. for a total of 3 years. and if it is aimed at a repositioning. He holds a Bachelors degree in Information Technology Engineering from NIT Durgapur. overlap and compete. to counter the forces that lead to a collective exploitation of an idea that an enterprising firm brings to the market. it is the beginning of the end of the value for what had once been a unique innovation. Anand Justin Cherian is a 2nd year student of IIM Calcutta. other more lean competitors could then launch a similar programme. And to make matters worse. source comes to the fore. consolidation is inevitable in a fragmented industry. if such an initiative is not backed with the requisite supply chain and sourcing efficiencies. the innovation must be rooted in something that is quintessential to the firm. In his free time. there might be a phase where all industry players are more or less in similar phases of maturity and efficiency. retail etc. And with this. On the contrary. the commoditization has kicked in. and even to the consumer growing increasingly indifferent to them. He can be reached at varun2010@email. In this regard. to Google‟s famed “20% time” policy. the marketing strategies should be designed in a way that does not conflict with the image of the firm. developed on an unsustainable model can never be of use to a firm. He holds a Bachelors degree in Information Technology Engineering from Netaji Subhas Institute of Technology. then it needs to be adequately armed.ac.in. specializing in Marketing. then it is not only a loss for the firm that introduced the concept. He holds a Bachelors degree in Mechanical Engineering from Delhi college of Engineering. one may note that disruptive innovations by themselves. and this could over time lead to a flood of such offerings. a la the Cola wars. That is.iimcal. painting and photography. specializing in Behavioral Sciences and Systems. strategically aligned HR processes enter the fray for sources of sustainable competitive advantage. to conclude. when it comes to differentiating yourself. the firm in question must ensure that there is more going for it than just the “first-mover‟s advantage”.in. Sarang Shahane is a 2nd year student of IIM Calcutta. In either case. especially in an industry where the core product/service is easily commoditized (low cost airlines. as a point for potential differentiation: the people in the firm. To take the previous example one level higher. He can be reached at anandj2010@email. Prior to joining IIM Calcutta he has worked with Amdocs Ltd for nearly 2 years. With time. Further. one essential reT HE LOOK ING GLASS . it may be seen.iimcal. like its unique work culture. one can then look forward to epic marketing battles. Thus. a soundly backed discount sale initiative would be easily replicable. Varun is a 2nd year student of IIM Calcutta. He can be reached at sarangs2010@email. middle class feet. that often it is the firm’s human resources that form the core of its marketing strategy. firms would be required to dig deep and come up with some one thing that is unique in them. specializing in Marketing and Finance. only more aggressively and credibly positioned to deliver.in. he likes blogging. it must be noted that if such a commoditization were to indeed take place. from Intel‟s “Superstars”. firms would need to constantly innovate in a manner that accords to each one of them a niche pocket through which to grow. leadership vision or even something more tangible like restricted access to sources/ suppliers. highlighting how the people contribute to adding unique value to the particular firm. but more significantly it is an opportunity lost for the industry as a whole. such endeavors must be based on fundamentals that are intrinsically hard to replicate for others. Prior to joining IIM Calcutta he has worked with IBM and Royal Bank of Scotland. Thus. such an effort shall more often than not end up being in the firm‟s detriment.ac. and in the case of one that is concentrated.P AGE 31 Put another way. Examples of this strategy abound. And the solution to this problem is not to form a cartel and fleece the pennies out of a society slowly starting to walk on its aspiring.
The liquidity falls exponentially below the highest investment grades. doling out favors. brokers perform a service for their clients in hope of getting business. What roles and challenges does the nascent Indian market provide? And how do you successfully establish yourself as a good salesperson? The author shares his experiences and learning acquired while working as an analyst with Merrill Lynch this summer. For example. brokers can signal a personal interest in the business of the clients. They perform price discovery for each security and negotiate an agreement to pocket a commission. Usually. disseminating market information to clients. They are in touch with both the buyers and issuers of such securities throughout the year and work to service individual client needs. etc. providing kickbacks on older deals. Trust by your clients in your evaluation of the market will get you business. As a result. there is significant competition in this arena. it would mean a refusal to do the deal while if person B was American. insurance companies. specialized banks. Knowing your client is how this difference can be judged. So how do you differentiate? Information asymmetry – The sales manager for Nirma uses the power of his brand to sell his product while a Big Bazaar uses the volume of sales as a tool to offer lower prices and entice buyers. The largest and active buyers are mutual funds. This is developed by knowing your clients well and being able to read what they do not say. For example. Personalized service – By understanding the needs of the issuer and customer a priori. etc. in the OTC market. information is the salesperson‟s biggest sales tool. However there is a confluence where one needs to use skills needed by both these job roles when you work as salesperson for fixed income securities. The liquidity in this market also depends on the issuer and the sector of the issuer. etc. IFCI. For example. They can perform superior price discovery. Hence the most active sellers of these securities are large Indian corporates with good credit ratings. Simultaneously they can track what XYZ intends to do with the inflow of money at maturity and if they can fix up a deal with another issuer. T HE LOOK ING GLASS . By performing market information dissemination. etc. there is significant information asymmetry and it is very important to be well aware and well connected. the way to win as a broker is via superior sales strategies. EXIM. they perform number of additional value added services like connecting preferred sellers to issuers. debentures issued by manufacturing companies with assets as collateral are preferred and need to pay lesser interest than those by IT services companies. Personal relations – This is an important differentiate which helps clinch deals. it would mean an interest in negotiating further. Deutsche Bank. However since a number of brokers are active. IDBI. The quickest broker to provide an acceptable price wins the deal.P AGE 32 Sales Role in Fixed Income Securities Market A brief background of the market The market for fixed-income securities issued by Indian companies is limited and illiquid. work faster to sell securities and clinch deals without too many competitors even Sales jobs and financial wizardry jobs conjure up very different images in our mind. Through their intimate knowledge of client preferences and history. there can be very different meanings when person A says that „It looks difficult to do this deal‟ than when person B says it. brokers track when a large commercial paper (CP) issue bought by client XYZ from issuer ABC is about to expire. Smaller buyers include PE firms. the only criteria used for choosing between competing brokers is the price they negotiate for their clients. they can proactively ask ABC if they would like to again raise money by issuing a fresh CP two weeks before the maturity. The deals are arranged by brokers like Merrill Lynch. Clearly. government agencies like LIC. Here. If person A was a Japanese. Being an OTC market. UTI. ICICI.
2. Which brand/company is being talked about? 5. Awarded with Ernst & Young (E&Y) Startup Entrepreneur Of The Year award in 2001. 6. DK started producing fountain pens. she did her schooling from Bombay Scottish School and later on joined Mithibai College. Also. 3. understood the potential of the pen manufacturing way back in the early 1960s. this company was born as a small tailoring shop in the year 1947. Under the aegis of Daswani.P AGE 33 coming to know of the deal. and was formed amid the antitrust breakup of Standard Oil in 1911. A couple of years later. one can get a better deal covenants. In 1897 the product was created and legally registered in the small village of Ibach. He holds a Bachelors degree in Electrical Engineering from IIT. Siddharth Chaudhari is a 2nd year PGP student at IIM Ahmedabad. a writing instrument that deeply fascinated him. Victorinox (Original Swiss Knife). Took his biggest gamble in 1953 by raising $8. After serving in the subscription department and as a copywriter for Esquire. Name the product and company. Davinder Kumar Jain. by knowing the urgency of the situation and more information than competing broker. made a foray into electronics and designed products for the US army and navy. 9. 8. 4. Texas Instruments. Chirag Din.07 cubic inches and had four-inch flywheels. Identify the company/brand.000 to launch his business venture. functionality and versatility. What company was founded by William and Arthur? 6. 8. She was not interested in academics and ventured into television at the age of 19. 7. originally known as Standard Oil of California. Today. Employing these three strategies can consistently get you deals and clients in this market and help you become a successful securities salesperson. the company transformed itself into a mega shirt store. 1975. Karl Elsener. 3. The enterprise could be considered to have started in 1901 when William aged 21. How is the company today better known as? 2. At the age of just 19.ernet. Bombay and can be reached at 8chaudharis@iimahd. Geophysical Services Incorporated (GSI) a pioneering provider of seismic exploration services to the petroleum industry during and after World war II. Since that time it has become well -known in more than 100 countries for precision. it was bought over by Mr Arjan Daswani. It is now one of the world’s six ‘supermajor’ oil companies and the largest producer of geothermal energy in the world. Ekta Kapoor T HE LOOK ING GLASS . Living in the crowded streets of Old Delhi. Originally called New Lord & Company. or Socal.in QUIZ ANYONE?? 1. The way in which Frank Robinson wrote the name of a product was so elegant and original. Soon changed the face of Indian television industry and completely dominated it. Hugh Hefner.drew up plans for a small engine that displaced 7. quality. 5. 7. the founder. Harley Davidson Motor Cycles. This company. thus laying the foundation of the largest manufacturer of writing instruments in India. it’s one of the established names in the Indian fashion industry and claims for bringing international acclaim to Indian tailor craftsmanship. 4. started this company to create work in the sparsely industrialized central Switzerland. Over the next two years William and his friend Arthur labored on their little bicycle. 9. Born on June 7. Luxar Pens. he left in January 1952 after being denied a $5 raise. Chevron. Answers 1. It was one of the "Seven Sisters" that dominated the world oil industry during the early 20th century. The engine was designed for use in a regular pedalbicycle frame. spread positive reviews of the clients and enhance or tarnish their image. Has a species of rabbit named after him and is known as one of the world’s bestknown womanizers. Coca Cola. Made an appearance on a popular TV series. it was decided to use his handwriting for the logo of the product. Name the product that even today uses Robinson’s script as its trademark.
The amount of time spent by these viewers watching the program Example: Consider the universe to be made up of 4 viewers A.e.e. one that focuses on calculating the cost of reaching one intended eyeball.5% of the target audience watched the program for its entire duration (i. For most firms. i. For TV.The number of viewers for a particular program 2. For example. In such a scenario.5% or 47. The entire target audience watched the program for 47. managers need to justify their advertising spends and meet required advertising ROI targets. it‟s the promotional and advertising budgets that get hit first. CPRP represents the price charged by a TV channel from an advertiser to deliver a TRP of 1%. how many of the company’s target customers the medium reaches. Person A B C D Time Spent 6 0 8 5 TRPs= TRPs= 47. B. and for how long. The primary indicator used in TV advertising deals is „Cost per rating point‟ or CPRP.P AGE 34 Valuation of TV Advertising The slowdown in the Indian economy has meant that more and more firms are looking to control expenditures seen as unnecessary and adding little value. Another parameter. The following shows the viewership details for a TV program.10 mins). TV rating points (TRPs) These are measured by audience measurement agencies like Television Audience Measurement (TAM) and these help to express the viewership for programming on television in numerical terms. The following terms will be useful to understand the valuation of ad deals. advertisers want their ad to be seen and hence the task is to find the cost of reaching an eyeball. a viewer watching a 10-second slot in which an ad is shown would be one impression. Reach. Gross rating points (GRPs) GRPs represent the sum of all TRPs achieved in a period. A system of metrics is discussed.5% of the program duration. 2. Cost per rating point (CPRP) CPRP represents how much it would cost to deliver one target rating point. a TRP of 1%. This calls for an accurate way of measuring advertising effectiveness. Time Spent. Advertising effectiveness of a medium is primarily measured through its reach. C and D. Cost per (CPT) thousand impressions The author stresses the importance of advertising effectiveness in the face of tighter promotional and advertising budgets. 47. „Cost per thousand impressions‟ or CPT may also be used. TRPs take into account two factors: 1. Universe The Total/Actual number of people in a defined target audience. The article explains how ad deals between TV channels and advertisers are valued based on these metrics. or 1% of target audience. this CPRP is for a 10 second slot during a program. that is.5 TRPs This is can be construed in two ways: 1. Hence. The first meaning suggests that TRPs give the percentage of the target audience that has been reached by a program and hence also reached by the ads shown in the program slot. In the Indian TV industry. GRPs are not program-specific and can be calculated for a diverse set of TV programs. Minutes Available 10 10 10 10 T HE LOOK ING GLASS . That is. Effectiveness is essentially measured through the advertising medium‟s reach. The author then compares CPRP and CPT and explains how using one method over another may be advantageous based on whether one is a marketer or a TV channel. It is the cost of delivering a thousand impressions.
in New Jersey. Bombay and can be reached at 8bholea@iimahd. i. Most deals today are done using CPRP as the measurement metric. Dilated pupils are a good indicator of excitement. the advertiser would have to pay some extra for the extra GRPs. The King Kullen Store was a product of the Great Depression era and supermarkets have evolved tremendously. The first supermarket was located on Long Island. They owned a drive-in restaurant in San Bernardino. It opened on April 15. The Romans were so appreciative that they set up a mint in her temple.ernet. the TV channel compensates by giving the advertiser bonus time. Juno Moneta. more than the promised GRPs are delivered. and Maverick.L. He holds a Bachelors degree in Electronics Engineering from VJTI. The issues that form the focus of the negotiations are the number of GRPs and the CPRP.P AGE 35 Valuation of an ad deal A television channel has an estimate of the ad inventory that it wants to sell in a year (or more). Marketing Gyan!! Canned beer was first introduced in 1933. which indicate only percentages of the target audience reached. Pinto. The name Moneta in the old French language was "moneie" which eventually became our word for money. Considering that the target audience watching these channels is increasing in absolute terms. It is calculated as follows: CPT= total value of the deal/ number of people reached (in thousands) Since 1 TRP means that 1% of the target audience is reached. Grigg and was named as „7 Up‟ since it contains '7 natural flavors' and carbonation. It was a commercial for Bulova watches. McDonald brothers' names are Maurice and Richard. B. If the slots sold by the TV channel fail to provide the promised GRPs. say 10000 hours in a year. ad slots free of cost. Drive-through service was initiated in McDonald's stores in 1975. McDonald's first restaurant was located in Des Plaines. Number of people reached= TRPs X universe size What’s the right metric. the total number of people reached can be found out using the universe size.CPRP or CPT? It depends on whose point of view we consider. more people have to be reached by the TV channels to get the same TRPs. The Romans had a goddess. Nike was the ancient Greek goddess of victory. TV channels are thus demanding a shift to using CPT in negotiating ad deals with advertisers. Calculating CPT The cost per thousand impressions is an indicator of the absolute reach of the TV medium. Illinois. TV channels claim that this system of valuation is unfair since CPRP is based on rating points. 1941. Jamaica Station. When training salespeople they can be taught to use indicators of product interest by looking at their customers pupils. These details are thrashed out in intense negotiations between channels and advertisers. The products were set out on pine boards resting on boxes. The channel promises the advertiser a specific number of GRPs that it will deliver during that one year and the advertiser is charged a price for these GRPs. Mustang.W stands for "Bayerische Motor Werke” 7 Up was invented by C. Today. New York.M. Amogh Bhole is a 2nd year PGP student at IIM Ahmedabad. it is featured at almost every unit that also has parking.in T HE LOOK ING GLASS . The channel sells a portion of this inventory to advertisers in long-term deals of 1 year (3 year deals are less common). If instead. This ad inventory refers to the total ad time it can sell. 1955. The first television commercial appeared on July 6. California. The types of horses that have been utilized to name Ford automobile products are Bronco. She warned the Romans of dangers. Value of the deal= CPRP X GRPs X total number of slots Each of these slots is of 10 seconds.e. who was the goddess of Warning.
And above all. Center Shock went from being a "no brand" to the No.8 million children were immunized in January and additional 6 million in February. The tongue-in-cheek campaign helped the brand grow by 62% during the campaign period. 2. Center Shock. (AC Nielsen Report). honest and straight up . So much so that it shakes you up. 2. is its sour taste…in fact. It used the angry man persona of Amitabh Bachchan. T HE LOOK ING GLASS . as compared to November 2002 round. sour beyond exceptional. The creative challenge was not just to communicate this in a manner that establishes this beyond doubt for the young audience. This was done by positioning Sprite as the No Pretence drink . As a result of this campaign. They needed to connect with the teen and make the brand aspirational. Pulse polio The campaign against Polio was designed to create a strong feeling of responsibility amongst parents and shake them out of their inertia so as to ensure maximum turnout on the National Immunization Days. "shakes you up". O&M leveraged the brand's interior equity and its association with beauty benefits to position its exteriors portfolio as “Time Proof Beauty” paint The brand grew by 43% and the sign off "Badhiya Hai!" has become part of popular consumer lexicon. The Asian Paints The Asian Paints Exterior Emulsion campaign sought to upgrade cement paint users. was taken forward in on-ground promotions and media innovations. confidence and simplicity. The central thought of the campaign.P AGE 36 Ogilvy & Mather Trivia 1. 19 districts reported over 50% booth coverage after February round. decided to launch a product that would "shake up the market". Sprite The clear lime drink Sprite stands for honesty. in a traditionally low involvement category. Within the confectionery market . Over 90% respondents reported that the Amitabh spots were a major influence in motivating them to come to the booth.1 brand in the chewing gum category As a result of the campaign. Under these circumstances Perfetti India Ltd.what you saw was what you got. but also to make it memorable.clear. The most startling facet of the product. the chewing gum segment was showing a 23 % decline. shake them up. 3. Center shock Before the launch of Center Shock. 4. the screen legend of Indian cinema to admonish parents for their irresponsible behaviour and apparent disregard for the safety and happiness of their children. the confectionery market in India was on the road to decline.
5 points during recessions. Advertising during recession provides a unique window of opportunity for investment in building strong brand equity. If the engine isn‟t working. This entire philosophy works on the basic premise that advertisement is considered as a long term investment rather than as a short term expense.2 points. Likewise. Mr Sergio Zyman. while budget-cutters gained only 0. So does that endorse the view that marketing expenditure should be held constant. and is carried forward into our professional life as well. the minute sales dip a bit. Aggressive companies increased market share on an average of 1. professor of accounting at Ohio State University verifies that advertising expenditures during recession contribute to increased earnings by firms for up to three years. if not increased during recessionary period? Mr Zyman again comes to the rescue. as opposed to firms offering services. Interestingly. With such diverse views. This article discusses the benefits of having higher budgets for advertisement during recessionary pressures. The greatest impact occurs in the year immediately following the recession and this impact is more pronounced for firms offering consumer goods or industrial products. You take the fuel out of the tank. The article ends with a word of caution stating that competitiveness and relative market position should be the most appropriate way to judge the situation before allocating ad budgets. You get more bang for your buck when everyone else is laying low. when sales are on an upswing. He juggles the same words. Most consumers perceive the lack of advertising during recession to be synonymous with the business struggling. The ongoing recession and the tightening of ad budgets by most marketing firms in India and abroad have raised a crucial question about what the stance should be during these trying times for businesses. He exemplifies the same with one of the marketing metaphors: “Marketing money (Advertisement money) is like fuel in a car. Empirical research results show that the better course of action in a downturn is to sustain marketing communication or actually increase it. T HE LOOK ING GLASS . gaining new customers and more importantly making inroads into the competitor‟s territory. this small lesson drummed into our heads as children sticks to us forever. you must immediately take steps to reduce the outgo”. it becomes quite essential to dip our fingers into empirical data. solidifying the customer base. This creates a negative perception in the minds of the customers who become more cautious about the present customer value proposition offered by the firm and more suspicious about the quality of goods and services committed to them.as Coca Cola discovered with New Coke in the eightiesa full tank of marketing fuel is useless”.P AGE 37 Is Recession the time to tighten Ad Budget? “Your outgo must be less than your income. to splurge and to try things that might not seem essential at other times. trimming the excessive flab and cutting advertisement budgets. Roger Graham. The same people resort to tightening their belts. but this time taking a co mpletel y di ffe ren t stance : “Marketing is like fuel.‟ says former chief marketer of Coca Cola. Should this be the norm for Ad budget allocation? „No. the same lesson makes us susceptible during good times. a vast majority perceives businesses that continue to advertise during recession as being competitive or committed towards doing business. and with it so does the brand”. and so if income drops. It exemplifies its stance by taking into account customer perceptions about companies during recession and how big wigs in the past have pulled themselves up into a more strengthened position post downturn. and you come out of the recession faster with a healthier bottom line. the car stops.
The point to be noted here is the quality of the ads featured.in . In an effort to come out of the red. and the relative weaknesses of competing brands are important as well. not the effect.P AGE 38 Therefore it becomes critical to advertise during recession. then they offer encouragement by pointing out that all the cost cutting measures have been implemented. Top management sets the whole marketing budget as a percentage of expected revenue. These two criteria should be delved into in detail before increasing ad expenditure during recession. The marketing budget is the cause. and when expected revenue drops. to maintain long-term positive consumer perception of the brand. The zoo zoo ad of Vodafone might be along these same lines. the crux of the argument is that advertising definitely has positives attached to it. price loyalty is greater than brand loyalty. specializing in Marketing and Operations. But this exposes the illogic of setting marketing expenditures based on expected revenue. Contrary to this opinion a recent survey by R3 which manages 100 of Asia‟s top 500 brands points out that one in every four Indian companies have been forced to scale down their marketing and advertisement spending because of the ongoing economic crisis. but at least you will get to some distance along the right path! Saikat Mondal is a 2nd year student of IIM Lucknow. Renault Clio and Nescafe Gold Blend ran ad campaigns that generated acres of extra press coverage during 1981-82 recessions. Some advertisements like Pepsi‟s Saturday Night Live have initially confused the consumers in an effort to break the clutter. Using it you might not be able to get quite where you intend to be. but it can influence where and what they buy. they see every reason to cut marketing expenditures. but they all lost substantial market shares later on. This leads to the notion where advertisements are considered a form of defensive insurance. so instead of reducing ad budgets it would be advisable for companies to increase their spends on sales promotions and discounts.ac. during the ongoing slowdown advertisers and companies are turning to desperate measures to promote their products and increase consumer spending. In recessionary times. there are ample examples. While market leaders who may be able to garner resources during recessionary trends to fight price wars and sales promotions with competitors. Setting a higher marketing budget will get higher expected revenue for a company during bad times. Advertising not only assures consumers of the business reliability in a soft economy. Prior to joining IIM Lucknow he has worked with Cognizant Technology Solutions for around four years. But then. Popular brands like Barclaycard. companies facing tough choices should not be bullied into believing that advertising is a panacea. and not as profit generators. as if the stakeholders ascertained that they wanted all costs to be cut to the bone and get the ship in order. Researchers are of the view that standing out in advertisements is imperative during recession even if at the expense of confounding customers. But the hard lesson was learnt my most US companies during the 1981-82 recession. For them the engine might be too worn out to respond to the fuel. The truth is that advertising effects cannot be isolated from other factors. Though it might seem that high spending on advertisements during recession might T HE LOOK ING GLASS give a competitive advantage to a company. He holds a Bachelors degree in Electronics and Telecommunication Engineering from Jadavpur University. He can be reached at pgp24277@iiml. The top management has the unpleasant duty of reporting disappointing results during recession. when this did not work. may use the tactics of increasing ad budgets.
organize. Advertising online however is better in terms of from the 20th page of search to the anth from Ogilvy cautions about the the ability to send the message 1st page in less than 6 months. It is an excelshirts to the gaming buff searching lent medium for businesses that are for information on „Age of Empires‟. Many startups take the paid route to the users have an income below 2 We discovered that none of begin with as it is easy and the cost lakhs per annum (Vizisense). word search (aka Search Engine Optimization or SEO) is unequivocally the top priority. Redbus. Though search engines route a selling financial products.000 strong Zoozoo marketing is that it is cheap. There is no strategy lot of traffic to websites. Getting listed about protecting their servers from on the first page of a relevant key. there is a Media Optimization is inexpensive mix that fits all. otherwise these noise users eat Internet users to store. BankBazaar‟s major influence in Internet Marketto Rs 400 per customer efforts paid returns when it moved ing and purchasing tendencies. It is important for Social Media has made a considerRedbus to be visible for the search able contribution for the increase in string “Bangalore to Hyderabad” and internet usage.pressive so far” opines Akhil Chug of tweaking.com beIndian online businesses typically spend around Rs 40 affiliates) helps Studyplaces. ing linkage from other sites (creating Noel Manoj of BankBazaar. which example of the 40. Prasacquired. “Getting traffic is impor.score the importance of Social Media. We talked to 10 up your bandwidth” says he. However.com. helps it to be in the first page of community of Facebook to underFrom what we have learnt from our exploratory research search.the volumes have been far from imbe used by all with little kart. that are making news lately and gathered their opinions on Website Business First Second effective promotion strategies. others have to be tant but what‟s more important is StudyPlaces. and builds loyal customers.com. The second myth is that what has worked Engine Marketing or SEM) as well. targeting the youth. Constant updates and add. tailored and customized to suit getting the right customers to your Social Bookmarking is a method for the product and the site.the noise users. demographics of people using social promotes its site media sites. StudyPlaces Education Consult. With search. More than 40% of the to a target segment and get a BankBazaar through paid listings (aka Search users of Facebook and Twitter are faster response.in Lounge Viral SEO & Lifestyle Home-Designing Interior Designing SEO SMO ISchnell Education Software Offline SEO EasySquareFeet Real Estate SEO Online Community Based Table 1: Ten E-businesses choose the strategies of their choice T HE LOOK ING GLASS . cites the The first myth of online to keep the buzz around. So.in Bus-Ticketing SEO Offline In this article we explore what promotion strategies have Inkfruit Designer Offline SEO worked for these companies T-Shirts and how they managed to use BankBazaar Loan Comparison SEO SMO them effectively. Executive Director actions and online thematic contests Digital Services at Ogilvy. this the strategies that our per click for search engines is very medium might not be suitable for respondents used worked the low. especially for the Inkfruit would like to sell theme t. strategies are generic and can VP Products & Technology of Flip. While some catch as explained by Shiva Kumar. less than 24 years old and 50% of in the US will work in India.P AGE 39 Low Cost Customer Acquisition Strategies for E-businesses Search engines are a favorite for search engines Flipkart is cautious most of the startups. “Social same way. consumers. Prasanth MoInkfruit banks on community inter.young users in India.hanachandran. and manage bookmarks of Indian startup e-businesses close to 90% of traffic coming from web pages on the Internet.com to lieves that Social Media will have a keep up its ranking.SEM Email ants Careers-India Job Info SEO SMO FlipKart Bookstore SEO SMO Habits.
the timing of emails is extremely important. The click rate or open rate of mails sent through such tie-ups are at least 10 times better than random mail campaigns T HE LOOK ING GLASS Figure 2 Redbus. It is important to communicate constantly with the customer and at the same time not be considered as a spammer. While the wisdom behind ignoring the offline marketing is debatable. which gets most of its revenues through offline sales. Manu Avinash of CareersIndia. “More than two emails per month may be considered as spam by users”. If the segmentation is geographical in nature one can take advantage of the Direct Post facility of India Post that allows businesses to send mails to a certain pin code location at Rs 1. Email has to be used very cautiously. Public Relations (PR) is a part of offline marketing strategy and is a combined responsibility of the company and the PR agency selected. Redbus. “Sending a mail about holiday ticket reservation two days before the holidays begin is useless but sending it two weeks before will bring in good traffic with very high conversion rate”. Cofounder of Inkfruit. For a company like Inkfruit. Mayank.com says “The social bookmarking sites have huge potential and of late we are getting some traffic from these sites”. It is important to define your target customers and target only those who match your target spending and age levels” says Prashanth. Apart from frequency. Marketing Head of RedBus. “Many low cost untraditional options are now available for offline marketing. . creating a positive PR is not difficult”. warns Akhil Chug. electricity bills.com. what used to be the bread and butter of an internet marketer a few years ago comes number three on our list. says. According to Kashyap. 45% of traffic to Inkfruit is direct (users type the URL of the website) and majority of this is contributed by offline marketing. Amusingly. sites like Delicious are routing substantial number that some websites run through email databases available. The offline options include promoting in malls or shopping complexes where Inkfruit products are sold. Ogilvy. Rediff. Cricketnext etc) can be used to send relevant emails to their user base like what Inkfruit is currently doing.in advertised at the back of an auto (information madness) per article.50 Figure 1: Contest of Inkfruit featured in a blog (Jain) of users to different websites. auto rickshaws. However.in struck a winwin deal when it started advertising on credit card bills. subway stations etc. advertising offline is extremely important. offline advertising is indispensable for many sites. bus tickets are being used to reach the customer. Advertising space is also available on buses. the traffic from these sites to the Indian websites is negligible.P AGE 40 With over 100 million unique URLs bookmarked and 3 million registered users. Opt-in lists (users who have accepted to receive promotional mails) can be either created by self or in the initial days bought from an agency.com chose television over internet to advertise its repositioning strategy. Credit card bills. Depending on the type of the product affiliates‟ databases (like Zapak. “If your product is innovative and can create interest for the reader.
spending quality time etc) happens only if the product that you offer is likeable and creates value to the customer. He can be reached at pradeeppn@iiml. Technology intensive B2C or B2B products require lot of offline marketing in India. While all the strategies discussed so far are facilitators for directing the customer to the site. That‟s what TiE (The Indus Entrepreneurs) did for RedBus” according to Prashanth from Ogilvy. Mobile marketing. the users being aware of such products. for around six years.in Identify the Ad!! Identify the occasion?? Check Page 47 for answers T HE LOOK ING GLASS . Customer loyalty on the other hand depends largely on the service component. Nothing drives your customer off to the competitors like bad service does. the UK based company which has pioneered the model.ac. can drive the future of advertising. Prior to joining IIM Lucknow he has worked with Cognizant Technology Solutions & Satyam Computer Services Ltd. spe- cializing in Marketing and Finance. at the heart of the acquisition process is the product. in India it only means more advertising over the phone. “Selecting the right seed fund to promote and finance your company is a vital task. He holds a Bachelors degree in Computer Science & Engineering from Osmania University.in Sarat Chand is a 2nd year student of IIM Lucknow. For example. He holds a Bachelors degree in Computer Science from BITS Pilani. BSNL has already started wooing customers to opt in for promotional messages on their mobile in return for free call time. online marketing works effectively. founder of Habits. whereas in the US. With the advent of Blyk. Right people can get you good PR and give you invaluable mentorship. Hence mobile applications will add of a lot of importance” says Noel Manoj of BankBazaar.in says “Having a very strong and close knit alumni network (of his Alma matter BITS Pilani) has helped Habits to increase its awareness”. specializing in Marketing and Finance. Prior to joining IIM Lucknow he has worked with Juniper Networks India for around two years. which is in a nascent stage now. Sasikanth Chemalamudi. Conversion of a casual visit to a desired action (sale. Bad service coupled with good advertising may help build the category and help the competitor prosper at your advertising expense. “Mobile is a major channel in India as more users go online on a mobile than a computer for the first time. He can be reached at firstname.lastname@example.org. Pradeep P N is a 2nd year student of IIM Lucknow. ISchnell is using only offline marketing to sell its product in India but for US & China they are relying on online marketing. registration.P AGE 41 The extent that the media covers you also depends on who you have for backing.
The author explores the investment climate in several typologies of Indian states and identify the key features of the various parameters that influence investors in India. an arm of Opportunity International Australia. In this paper. The arrow could not be more off the mark as even erstwhile obscure towns are rising to prominence in the mindmap of potential investors riding piggy back on a dazzling marketing campaign.4 crore from MicroVest.5 crore from a few high net worth individuals and IT professionals. More noteworthy was the fact that this was the first time the billionaire had made a foray into regional daily. Something has changed. In dark clouds of economic slowdown. as a full scale war culminates to catch the eye of investors foreign and home grown. the author attempts to identify the characteristics of the business climate in India that can help explain the different performance of individual states in terms of investment and growth. staying at New York's Waldorf Astoria hotel and dining with inveterate capitalists at such firms as Price Waterhouse. Mr Basu was just one of a flock of Indian state chiefs who were realizing the need of the hour and stepping up to be feted as representatives of their country's open-door policy on foreign investment. A day later. Rolls . Thrissur-based ESAF Microfinance and Investments (EMFIL) said it landed Rs 12 crore from Dia Vikas Capital.MAKING A MARK An idea still exists that the race to sell themselves remain restricted to the proverbial industrial Shangri la belt of Gujarat. These are not isolated events which can be ignored. On June 22. Jyoti Basu the former chief minister of the state converted to capitalism late on an investment promotion trip around Europe and America. It would have been unthinkable some 15 years ago that 14 of the states of India now have brand ambassadors! THRISSUR.A Comparative Study Media mogul. Gone are the days when 26 January used to be the only day for displaying the resplendent riches of a region. The various states of the country have ramped up their efforts to position themselves as brands. which There still remain a multitude of views on when India opened its doors to Foreign Investors but there is little to argue that it was at the turn of the millennium in 2001 that branding of states well and truly emerged. The analysis shows that the states have significantly ramped up the marketing initiatives to attract investment. while Haveri's has been traditionally averse to big ticket investment. Thrissur in Kerala. have joined the fast lane to woo investors.P AGE 42 State Of The Market. flying on Concorde.7 crore in 2008. which had raised Rs 14. This is the second round for Grama. State Branding has well and truly arrived and the investor today has been dazzled with fresher and innovative marketing blitz from the various states. But they recently entered India's venture capital map. something had metamorphosed – Brand India from the shy nonchalance of the 50s to the streetsmart self-advertiser of the new millennium the journey has well and truly come a full circle. Tiruchirappallibased Grama Vidiyal Micro Finance Ltd (GVMFL) said it raised Rs 20. Unitus Equity Fund and venture capitalist Vinod Khosla. Rupert Murdoch was perhaps paying tribute to God‟s Own Country when he trooped into the state capital to finalise the takeover of Matrubhoomi. a local Malayali daily. Maharashtra and a few others like Karnataka and the national Capital Region.Royce and Merrill Lynch. Tiruchirappalli in Tamil Nadu and Haveri in Karnataka are unlikely towns investors will be herded into. silver lining emerged for Rajasthan as the western desert state attracted highest investment T HE LOOK ING GLASS . The paper summarises the efforts made by the various states in attracting investment. thanks to the impressive and aggressive campaigning of these states. Even states like West Bengal. Navachetna Microfin Services Ltd received Rs 1. Appointing cricket star and hometown hero Saurav Ganguly as a brand ambassador to the state was just one of the many steps taken to attract the eye of the investors.
Disaster Management.com a website featuring a plethora of advertisements and support data highlighting the advantages of investing in Gujarat.” says business baron Vijay Mallya who himself has been an active player in the rebranding of Karnataka as a state which was more than India‟s silicon valley. Government of Orissa ) Company Consolidated Electric Power Larsen & Toubro Ltd TATA Steel Ganapati Exports Ltd Hindalco Industries Ltd Indian Oil Company Nippon Oil Company MESCO Oswal Agro Ltd Utkal Alumina Ashok Leyland Consolidated Electric Power Neeleachal IspatNigam Limited Indian Seamless And Alloys Limited Orind Steels Ltd Proposed Project Power Steel Steel Steel Aluminium Oil Refinery Oil Refinery Steel Fertilizer Aluminium Oil Refinery Power Steel Steel Cold Rolled Steel Location Jharsuguda Gopalpur Gopalpur Duburi Kalahandi Paradeep Paradeep Duburi Paradeep Rayagada Haridaspur Ib Valley Duburi Duburi Duburi Cost(Rs Million) 160000 70000 65000 60000 50000 50000 50000 42690 42200 30000 24000 20750 15250 13770 11500 T HE LOOK ING GLASS . “Branding of states and nurturing and positioning of the brands is here to stay and is more than a passing fad. Over 60 Accolades and Awards for Gujarat under Narender Modi from International and National Organizations for Best Investment Environment to Best Sanitation. Adman Prahlad Kakkar acknowledges the fact as he underlines the fact that quite a few advertising agencies and Brand management companies have been making big bucks owing to this “branding-boom” in India. Modi was voted the best CM in the country for three consecutive years by India Today ORG-MARG Survey. The idea has lived since Gujarat with all states ready to shell out millions even at times of global economic slowdown to gain a facelift which would showcase themselves to the world. witnessing a major jump from 13th position in the same period of the financial year 2007-08. As India Inc expressed investment plans in Rajasthan. the world is now watching ………………………. according to a paper brought out by ASSOCHAM. The next big investment destinations also witnessed major shift as second place was occupied by Madhya Pradesh as compared to the sixth place last year.he holds a Btech degree in Electronics and Communication Engineering from National Institute of Technology Bhopal. These are not mere facts but simply highlight the advantage and competitive edge Gujarat had over its rivals being a “first mover”. The secret of the success was not to be found in JK Rowling‟s quiver but in simple marketing logic. the state registered a major jump by 245. Energy Output. The state of Gujarat was perhaps the first to hit the ground running as they launched www. innovation is the key to survival. among the 21 India states Rajasthan is turning to be one of the most favourable investment destinations. 100+ billion US Dollars MOU‟s signed in 2007 Vibrant Gujarat Investors Summit.iimcal.in Mega Investment Proposed ( Source: IPICOL. And the states of India are ready to stand up and be “AD”ed Sanglap Banerjee is a first year PGDM student in IIM Calcutta. Orissa maintained its place at the top slot carving third position. Gujarat has also been voted Best State by Rajiv Gandhi Foundation. Reducing Maternal & Infant mortality rate. and can be reached at email@example.com per cent during October-December 200809 as compared to the corresponding period of the last year (2007-08). bringing a considerable shift in its ranking order. Brand positioning has been important as every state has hired the best corporate houses to sell their state to the world as an investor‟s dream. carving top position in the third quarter of the financial year 2008-09 (October December). “You are stupid if you are not investing in Gujarat”.supportgujarat . The stage has been set. for Innovations in Govern- ance. says Ratan Tata. Best-in-class infrastructure.P AGE 43 plans during October-December 2008-09 by corporate India.ac.
While many media reports accredited the eco-friendliness of this product (“Green Marketing”) as the reason behind its success.P AGE 44 Does Green Marketing Sell? When Philips came up with CFL (Compact Fluorescent Lights) “Marathon” in 2000. The article attempts to explain consumer‟s behavior in terms of preference and willingness to pay more for green products. we believe that the benefits offered by the product in terms of saving power in the long run. the product was immediately a hit even though it was charged at a price of $20 against $0. A study by Jain and Kaur (2004) has shown that though consumers are not fully aware of environmental issues. While there have been huge successes such as the Toyota Prius and Philps CFL. otherwise termed as Corporate Social Responsibility (CSR). American Marketing Association defines Green Marketing as the marketing of products that are presumed to be environmentally safe.75 for regular incandescent bulbs. We referred to several books. We believe that strategies which benefit the environment as well as the organization may in fact help the cause. 1991) show that over 90% Americans are concerned about the environ- Marketers have had mixed results while implementing eco-friendly strategies. we found that consumers behave differently for the products that require different levels of involvement. there have also been innumerable failures that T HE LOOK ING GLASS . since they would be more sustainable when compared to pure philanthropic initiatives. Studies in the US (Cramer. online articles and research papers to understand the mistakes made by marketers and to understand the consumer’s attitude towards green products. The benefits of environmentally friendly strategies for the organization can be broadly classified as: Increasing profitability by commanding a higher price for environmentally friendly products Differentiating products based on environmentally-friendly attributes Increasing market share by developing preference for environment friendly products through advertising Building corporate brand image by associating with environment friendly practices and products Dwindling natural resources and global warming have led many companies to innovate products that are eco-friendly. while consumer trends show that developing nations such as India and Brazil are not far behind. it won’t be sufficient to persuade consumer to buy a high involvement product. Organizations in developed countries have widely adopted Green Marketing practices. We concluded that eco-friendliness has varying influence on the consumer’s preference for green products. Of these 50% of the respondents are willing to pay premium for ecofriendly goods. we must introduce the term “Green Marketing”. packaging changes as well as modifying advertising. Other terms for green marketing are ecological marketing and environmental marketing. capability of lasting for 5 years and the trust in the brand Phillips were the reasons for its success. So how have organizations exploited this wave of environmental concern amongst consumers? Going Green Often green strategies are designed not only for environmental benefits but also for the benefit of the organization. Before we explain this further. they are willing to prefer and pay more for products that are certified to be environmentally friendly. Marketers have mixed results about the success of such green products. changes to the production process. Green Marketing incorporates a broad range of activities including product modification. mental impact of products they buy. While ecofriendliness can influence consumer’s purchase decision for a low involvement product. During our research. Understanding consumer behavior towards different categories of green products can help marketers innovate the right products and develop effective communication strategies.
“Environmental consciousness” corresponds to the cognitive dimension of environmental attitudes.) and purchase decisions (buying greener products). different studies have classified consumers based on different demographic. seven state attorneys general sued Mobil on charges of deceptive advertising and consumer fraud. Since the purchase behavior is totally different for these two types of products. culT HE LOOK ING GLASS tural and personality variables. The most useful classification in the Indian context was found to be based on three parameters: concern for the environment. While customers may purchase a eco-friendly low involvement product for the benefit of environment even if the price is marginally higher. awareness of environmental issues and environmentallyfriendly behavior (Jain and Kaur. especially with respect to conservation of resources (saving water. Ultimately. resulting in purchase behavior can be broadly classified as cognitive and emotional.P AGE 45 have disappeared into the oblivion. which we bring out in the following sections. we explain below how consumer behavior theories can be utilized. and the company withdrew the product from the market. They suggest that Green Marketing must focus on two objectives: improved environmental quality and customer satisfaction. High Involvement Products Any product that is perceived as expensive. are very different from that of low involvement products such as toothpaste. 2004). etc. The benefits sought from high involvement products such as TV. Before getting into theory. Introduced in 1989. They will weigh attributes such . soap or paper napkins. Green Marketing Myopia Many marketers get obsessed to develop number of product features rather than meeting customer needs. Because most garbage is buried in landfills. Understanding the Consumer Behavior of Green Marketing Though there are a lot of esoteric models explaining why or why not does green marketing work for different products and consumers. we found that basic consumer behavior theories can be easily applied to explain the effectiveness of green marketing in different scenarios. The most important benefit that individuals seek from environmentally responsible behavior is the desire to act in an environmentally responsible manner. allowing limited exposure to the elements. the condition termed as “Marketing Myopia” by Theodere Levitt(1960). The key findings of this study show that though Indians lack sufficient knowledge about environmental issues. the implications of green marketing can be different for these two types of products. Such myopia can occur when products fail to provide credible environmental benefits. Based on these needs and segmentation. we analyze how green marketing can be effectively used to influence the purchase behavior of consumers for different types of products. and “Environmental Concern” refers to the emotional dispositions as individual indignation about the destruction of nature (Hartmann and Ibanez. there is a generally high concern for the environment and most surprisingly. Misjudging or overemphasizing one at the cost of the other can lead to Green Marketing Myopia. risky or has emotional value attached to it is considered as high involvement product. To help marketers maximize the effectiveness of green marketing strategies. The attitudes that drive this need. a primary question that arises is how do consumers benefit from purchasing and using environmentally-friendly products? Do all people have the same attitude towards the environment? In the field of green marketing. Products (and services) can be broadly classified as high and low involvement for analyzing the consumer purchase behavior. psychographic. cars. Jacquelyn and Edwin(2006) build on this further to explain “Green Marketing Myopia”. 2006). Indian consumers score very high on environmentally friendly behavior. oil. they will not purchase high involvement green product for it just being eco-friendly. packages for Mobil's Hefty photodegradable trash bags prominently displayed the term "degradable" with the explanation that a special ingredient promoted its decomposition into harmless particles in landfills "activated by exposure to the elements" such as sun and rain. the claim enraged environmentalists. etc.
It could be because of it being expensive than other competing products or because it rates closely with other brands on performance parameters. Consumers are found to be extremely sensitive to the credibility of the claims made by green marketers. consumer‟s attitude towards a product is the function of consumer‟s belief and the evaluation of the product attributes. when a brand does not meet expectations or when a competing brand is found to offer more benefits. with little differentiation between products. consumers having higher preference for green products are more likely to purchase such products over others. billions of ad dollars are spent by FMCG companies like Unilever and P&G. In the absence of marketing. it may turn into purchase habits and result in brand loyalty for green products. such customers are less than 2% in number and the mainstream customer won‟t buy just by that attribute. elaborate evaluation of benefits of product and comparison with other products is usually not done. Once a brand preference is created. Thus. Again. and involving low risk for the consumer. The purchase decision process for such products is thus relatively simple as compared to that of high involvement products. green marketers can significantly influence the purchase behavior of consumers for low involvement products through persuasive advertising of environmentally friendly claims regarding their brand. such products are likely to become commodities. Secondly. Low Involvement Products Low involvement products are characterized as not being economically important. environmental advertisements have often failed to enthuse customers. So now the question is. The product rated higher on eco-friendliness can thus help consumer reduce post purchase dissonance when the product is found to have defects or is weaker than competing brands on certain parameters. and can quickly get suspicious about vague or ambiguous statements. consumers will look for balance in the psychological set by seeking supporting information or by distorting contradictory information. Though governments have laid out strict laws to prevent marketers from making false claims. brand. For typical low involvement purchases like paper and detergents. But if the product is equal to competing product on all other parameters then consumer may prefer the green product. the consumers will discount the negative information and rationalize their behavior/purchase. first: it helps the companies make favorable image and second it reduces the post purchase dissonance. so that they can increase the involvement of consumers and create a brand preference for their products. environmental product almost always loses. brands have to ensure that their claims are substantiated and phrased clearly to prevent the loss of credibility. Many products that require customers to make such trade-offs have failed to establish themselves in the marketplace. In contrast with high involvement products. researchers have dug out a major cause for such failures to be the lack of veracity of the environmental claims made in advertisements. As per Fishbein‟s Multiattribute theory (Ajzen and Fishbein. If the consumer is required to make tradeoff on any of these parameters for environmental benefits.P AGE 46 as performance. However. In such cases. Conclusion Based on secondary research. high involvement products have high probability of creating post purchase dissonance. As per cognitive dissonance theory. In practice however. If a consumer has a preference for certain attributes and if the product pronounces those attributes then there is a high probability that consumer will purchase that product. convenience and price against the competing products. 1995) has shown that advertisements with environmental appeals have significantly more impact on consumers who are less involved in environmental issues (as in case of India) when compared to advertisements with traditional feature appeals (like financial benefits). we have found that marketers have to adapt their . 1980). To prevent this from happening. A study by US researchers (Schuhwerk and Lefkoff-Hagius. how to make green marketing startegies be perceived as high involvement startegies? – In two ways.
Nishant V Patel is a 2nd year PGP student with marketing specialization at IIM Lucknow. can cause a shift in consumer preferences. environmentally friendly attributes may not be sufficient to persuade customers to prefer the product or pay a premium for it.com. convenience and price. In contrast. if clearly advertised. Xavier‟s College Gujarat and Post Graduate Degree in Information Technology from SP Jain. Ankit Thakkar is a 2nd year PGP student with marketing specialization at IIM Lucknow. brand. Answers to quiz on Page 41 Top Left: Taare Zameen Par Top Right: United Colors of Benetton Bottom Left: PETA Bottom Right: Fevicol . He can be reached at nishant1@gmail. He holds Bachelor‟s Degree in Mathematics from St. For high involvement products. He holds Bachelor‟s Degree in Telecommunications Engineering from Bangalore.com. Mumbai. Such products must match or provide additional value when compared with other products on various parameters such as performance.P AGE 47 green marketing strategies depending on the nature of the product. Claims of environmental friendliness of products. He can be reached at ankit. green marketing can offer benefits for low involvement products.thakkar@gmail.
Back in those days. That Nivea shaving cream was my first personal cosmetic tube. I have migrated from water to Head & Shoulders shampoo with cool menthol and I use a Garnier Fructis cream conditioner afterwards. (Reproducing Chapter 5 of my autobiography?) Today. my idea – well. It didn‟t occur to me that my parents had observed the absence of my facial fur. In winters. director of product and treatment development at the Elemis spa. And it‟s not because we are suddenly getting in touch with our feminine side. I guess I had a constant layer of grime on my hair and any excess was washed away by water. Not even Wipro Shikakai (where did that gem of an idea disappear? I wonder).of moisturizer was sarson ka tel (most probably Dhara or Postman). Soon after. till then. It was a matter of little concern that my vests soon turned yellow and I went to school vaguely smelling of the same blasted oil. I pretty much have a full range – right from Himalaya‟s Neem Face Wash to Lakme‟s sun protection lotion. It is our deodorated and eau-detoiletted arm pits your noses will search out amongst all the bacteria laden smelly arm pits which would surround you. According to Noella Gabriel. I had just started shaving secretly using Dad‟s Philishave – or so I thought. but we just want to look good and smell good. I request that person to take a ride in a crowded Mumbai suburban train in the summer at peak time. Over time. like a bored married couple. Dad bought me my first razor. “Men are a hard market. not mine. And if any woman or man wants to taunt our breed. But do men relate to cosmetics in the same way as women do? Industry insiders don‟t think so. It‟s no secret that many men today spend almost as much as women on cosmetics. never ever used shampoo. I had to. my mother‟s actually. „Umm…even I haven‟t‟ „What???‟ Thus went a conversation way back in 1999 with a female friend of mine. brush and Nivea shaving cream. but once you've got T HE LOOK ING GLASS . I had. The grime actually provided volume to my hair. I have a dedicated table in my hostel room for cosmetics. under the strict commands of mommy dearest. apply mustard oil all over before taking a bath. everyone seemed ok with this arrangement. I discovered this later in the era of the shampoo.P AGE 48 Men’s Cosmetics „Look at that nest! Seems like she has never used a shampoo in her life‟.
HUL‟s Fair & Lovely. launched in 1975 and initially targeted at women. But why did we decide to take all that pain in the first place? Well. L‟Oreal and Dabur are all expanding their businesses in the men‟s cosmetics segment.P AGE 49 them through the door. new products exclusively for men are hitting the shelves. I believe Garnier said it best – „Because I am worth it.. shows the transformation which has taken place in the market. But the fact that we are standing there..when he got into that bath tub in the Lux ad. And why not? The Indian male grooming segment is valued at Rs 750 crore and growing at a pace of 20%. actively deciding for ourselves and not pretending that the moisturizer is for our better halves is a sign of the changing times.‟ Ayan Ghosh is a 2nd year student at IIM Lucknow.” So much for men being unfaithful. Probably they took as much courage as buying that. who no one in their right mind would term feminine. Men have come of age. And know which creams to buy to beat it as well. than any other only-for-men latex products.well. we have different skin than women. In fact.ac. He holds a Bachelors Degree from National Institute of Technology. faster than the global cosmetics market which is hopping along at 18%. Though the Fair & Handsome ad evoked more than its fair share of snide remarks and jokes. A study conducted by Emami Industries in the early 2000s showed that 29% of the users of fairness creams were men! I wonder how those 29% men managed to buy Fair & Lovely. they are very loyal. Shahrukh sure knew what he was getting into when. it seems that Emami had done their homework. Far more loyal than women. We might stand confused in the cosmetics segment of malls trying to decide which cream to buy. As it turns out. The fact that L‟Oreal used John Abraham. biggies like Nivea.in . Nivea is focusing on its „Nivea for men‟ and L‟Oreal has the „Powerlight‟ range of cosmetics to pamper men. Hence. Companies nowadays have gone beyond mere re-branding of their products. also came up with Fair & Lovely Menz Activ. Surat and can be reached at pgp24125@iiml.