Professional Documents
Culture Documents
Pan IIM Mag The Looking Glass PDF
Pan IIM Mag The Looking Glass PDF
The
Looking
Glass
THE LOOKING
GLASS
Editorial
In this edition
Dear Readers
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. Its 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. Its no longer about marketing your product right. Its basically a requisite for survival. If you dont do it, your competitors will. And the consumers have plenty of options. So, basically if you
dont 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 todays
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.
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....11
.....17
Neo-Political Marketing
....21
....13
........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.
Is Recession the time to tighten Ad Budget? .37
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 looking.glass.mag@gmail.com.
Strategies for E-businesses
Yours Truly
Mayank Jain, Prasad Gopal ,
Robin Joseph , Garima Mamgain
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..44
Men's Cosmetics
..48
Team
Editors
Design
.39
Ganesh PR (IIML)
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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.
Indian advertisements,
in the past, have
mostly derived their
humour from the interplay between multiple characters.
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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 1960s, 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.
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Kaushik Sriram is a 2nd year PGP student at IIM Bangalore. He holds a Bachelors degree in Electronics and Communi-
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. The Axe effect in terms of sales and
market share has been spectacular to say the
least. HUL (the parent company)replaced their
old deodorant brand Denim with Axe due to its
spectacular success.
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Influencer Marketing
Welcome to the age of influencer
marketing. You might have witnessed and experienced it in the
past its just that the term has
become more visible. Youtube,
blogs, twitter the tools can be
many, the message is the same you are being influenced.
Compared to traditional marketing
practices, influencer marketing focuses on key types of individuals. It
aims to take advantage of the influence these individuals have over
the target segment, with these influencers becoming the centre of all
marketing activities.
marketing
objective.
WOMMA
(Word of mouth marketing association) provides a handy classification of influencers based on how
they derive their power of influence.
Once the target influencer has
been identified, the next step is to
market the product to the influencer, to help increase the awareness
among the influencer community.
They then become well equipped to
use their influence in favour of the
firm.
The third and final set of activities
involves the use of these influencers to advocate to the target segment. Influencers can play a direct
or indirect role in this process.
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. To complement the strategy, the manufacturer might put some point of sale
merchandising to promote its product. The third and final set of activities involves the use of these
influencers to advocate to the target segment. Influencers can play a
direct or indirect role in this process. What we see in case of contact
lenses is an indirect approach
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Industry Practices
One of the most common applications of
influencer marketing is in medicines and
pharmaceutical products. In many cases,
the active ingredient is common across
companies, and the medicines are substitutable. Since the law prohibits any advertisements of prescription drugs, companies rely on prescriptions from doctors to
drive sales. Hence, they send their representatives to disseminate information to
doctors and give them free samples (you
might have seen Physicians sample, not
for sale printed on mini packs in your
doctors clinic). Sometimes, the representatives even check up with local chemists
whether the medicines being promoted are
selling, before they make a visit.
Even in categories where advertising of the
product is permitted, like oral care, companies dont miss out on opportunities to
promote their products to dentists. This is
because an advertisement can rarely have
the credibility, and hence the influence on
the purchase decision, as compared to a
suggestion from the consumers dentist.
Another avenue that companies use to
market themselves to influencers like dentists is sponsoring lectures on recent
trends in oral care. Use of various dental
associations to certify one brand of toothpaste or toothbrush is another example of
influencer marketing. Colgate has done
well in this regard in India.
On a related note, Marico Ltd. has successfully
used influencer marketing
through cardiologists to promote its products, especially Saffola Oil. Saffola is a safflower based refined edible oil that promises to help control cholesterol for cardiac
patients. When Marico launched this
product in market, the biggest challenge it
faced was that most of the customers were
unaware about cholesterol. Cardiac patients relied completely on their cardiologists and family doctors for information (in
WOMMA classification, these belong to
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If it has been established conclusively that cigarette smoking kills, why is it that it is available
to anyone, irrespective of his or her age, at
every street corner?
ethical behaviour in advertising, 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. 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, which may not be sufficient to warrant advertising costs. Also advertisements must not contain direct or indirect
cues for the product under advertising restriction.
However many advertisers must still grapple
with ethical dilemmas as the existing code
leaves a lot of scope for interpretation.
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. In 2001, 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. It
has also taken up large scale Corporate Social
Initiatives in rural India, the crown jewel being
the e-Choupal initiative, to enable the agricultural community to adopt a direct selling approach.
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.
In an article published by The Hindu in March
2008 Ramesh Narayan, a communication consultant writes,
The advertisers perspective is fairly straightforward. If it is legal to manufacture, distribute
and sell a product, why should it be illegal to
promote the sale of that product? I dont think
anyone can answer that question convincingly.
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holds a Bachelors degree in Electronics and Telecommunication Engineering from University of Mumbai and has worked as a Software
Testing Consultant with L&T Infotech. He can be reached at
joshin2011@email.iimcal.as.in
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Within the FMCG sector, the advertisement campaigns that are run
bring the customer to the retail
store, yet at the point of sale there
are numerous options available. At
this juncture the retailer can have
an impact on the purchase decision.
Incentives offered to the retailer, by
the company or the wholesaler, motivate the retailer to push the brand
and affect the purchase decision
favorably.
Through our study we intend to find
the relevance of multi-tiered promotions for such categories. We chose
soap category (INR 6500 Cr) as it is
the biggest category in FMCG segment. Within Soaps, Santoor is the
2nd largest brand in India in the
popular segment, and also the largest brand in Andhra Pradesh with a
market share of 37.07% of the total
3,374 tons per month. One reason
for the leadership position attained
is the multi-tiered promotion policy
of the company. In this article we
will present the primary survey conducted to identify trade preferences
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Promo-
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sales for the company. If there is an appropriate multi tiered promotion mix, the company can effectively achieve its sales targets.
To substantiate our proposal, we provide empirical data on the multi tiered promotion
used by Santoor soaps during Jan-March
2009, in the Andhra Pradesh market
The Santoor Way
Santoor uses multi-tiered trade promotions
with different time duration and promotion
mix. We will measure the effectiveness by
observing the impact of sales. The promotion
schemes run by Santoor can be classified as
in Table 2.
Secondary Scheme
Promotion schemes with different timelines are preferred by different traders due to
their inherent nature (outlet type, planning
horizon, etc)
Multi-Tiered Promotion
Wipro regularly announced long duration (23 months) trade plan to motivate trade for
bulk purchase. We will discuss Tambola
scheme (Jan-Mar 2009) for this article, which
involved a lucky draw for the prizes (Spark
Car, Bajaj Motorcycle, Air Conditioner etc).
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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.
INTRODUCTION
Theatre is an ancient aesthetic
practice in India. Surviving play
texts and treatises suggest that
theatre existed in the Indian subcontinent from the dawn of civilization. According to the Natyashastra
of Bharata, an exhaustive treatise
on the art of performance, drama
was a gift from the gods to the humans.
THEATRE: PRODUCTIONS
CHALLENGES
&
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the masses.
-As there is less and limited consumption of
available high art, therefore popularity of art is
limited and this results in a decrease in audience. As a result , those who want to produce
popular art do not get sufficient funds to produce commercially viable popular art.
PROMOTION
The promotional strategies used by theatre
production houses are very limited. Recently
few corporate houses have started funding the
theatre production houses e.g. Matrix cellular,
Vodafone, Religare, and Mahindra and Mahindra. These corporate houses use extensive
publicity and advertisements for popular art
but it has not resulted in creating an enduring
audience. 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.
Small printed pamphlets are manually distributed outside the auditoriums. This only
helps to inform the existing theatre audience. This localized and captive distribution does not create awareness to potential
audience.
4 PS 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. The prominent and talent rich houses of
theatrical productions like National school of
drama , Naya theatre and Rangshankara fail
to distinguish between the consumption of
high art and popular art. 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. They keep on producing high art
for which there is a limited audience and
eventually no body is able to produce popular
art. 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, which is seen by a handful
and eventually making it non consumable for
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PRICE
Theatre in India has struggled to reach break
even point. Theatre production houses who
hire or have fulltime / part time performers
in it incur the expenses as shown in table 1.
On an average, a theatrical performance involves 3 to 4 lead actors and 4-6 support actors. 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. In general the theatre production houses keep single show on
Saturday and double shows on Sunday. This
format is repeated for two weeks. This means
that in general six shows are performed for
each production. The capacity of the auditorium is approximately 350.
The total expense of Rs 425000 is averaged
for six performances in a span of two weeks.
Therefore the average charge for each performance comes to about Rs 70000. And the
average seating capacity of an auditorium is
350 , which means that in order to break
even each ticket shall be priced Rs 200.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. 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. Theatre needs mass marketing to make
it commercially viable.
PLACE
The places where the theatre products are
distributed need good acoustic arrangements, lighting facilities and pleasant ambience. Therefore theatre production houses
rely heavily on a few select auditoriums.
These auditoriums are generally run by government or small charitable trusts or some
private hospitality organizations. Access to
these places is limited to high end audiences
who have taste for cultural products. 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 ,
stage them in available select places are not
able to attract mass audience. High art audience does not attend such performances and
thus creating a losing proposition for theatre
production houses.
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Finally, it can be concluded that Indian theatre which exists in various forms in India has
huge potential. It can be marketed to a mass
audience if proper segmentation of high art
consumers and popular art consumers is
done. 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.
ACKNOWLEDGEMENT
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. Therefore a theatre culture needs to be cultivated in Indian society
and this can be achieved by partnering with
educational institutes. In western world,
Theatre in education constitutes an integral
part of educational curriculum, which helps
in cultivating a strong theatre culture in the
society. Theatre production houses, non
profit organizations and Government shall
introduce Theatre in education (T.I.E) as a
compulsory subject in middle and senior
school education. This will help in creating
art awareness and art consumers in our society.
Digital marketing: Theatrical products are
plagued from poor distribution and access
problems. One of the crucial issues related
to theatre marketing is the booking of tickets. 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. Therefore a unified effort shall be raised to help
theatre production houses to market their
products digitally to art consumers.
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Marketing Jokes!!!
Two women were shopping. When they started to discuss
their lives, one said, "Seems like all John and I do anymore is
fight. I've been so upset I've lost 20 pounds."
"Why don't you just leave him then?" asked her friend.
"Oh! Not yet." the first replied, "I'd like to lose at least another fifteen pounds first."
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, displaying a large
sign proclaiming "Best Deals."
Not long after that, he was horrified to find yet another
competitor move in next door, on the other side if his store.
It's large sign was even more disturbing"Lowest Prices."
After his initial panic, and concern that he would be driven
out of business, he looked for a way to turn the situation to
his marketing advantage. Finally, an idea came to him. Next
day, he proudly unveiled a new and huge sign over his front
door. It read,
"Main Entrance!"
The Difference Between Optimism, Pessimism & Marketing
The Optimist says, "The glass is half full."
The Pessimist says, "The glass is half empty."
The Marketing Consultant says,
"Your glass needs re-sizing."
CONCLUSION
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Neo-Political Marketing
Political marketing, simply put, is marketing designed to induce people to
vote for a particular individual or a political party. It attempts to accomplish
this by influencing citizens thoughts
on various issues. Although political
marketing uses many of the same concepts used in traditional marketing, it
is different in the sense that ideas and
concepts are sold in political marketing, 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. In
this article, we attempt to provide a
sense of these changes. Different aspects of political marketing in the US
are studied with emphasis on Barack
Obamas widely lauded campaign. The
corresponding aspects are analyzed in
the Indian scenario as well, while attempting to understand the reasons
for the differences observed. We also
provide certain observations on
whether the Indian politicians can take
a leaf out of Obamas book.
President Obama leveraged his website, user generated content, blogosphere and video games to engage
not just the donors and volunteers
but all the citizens. A trademark of
Obamas campaign was his appeal to
the undecided voters and uncommitted supporters through the Join Now
campaign in his website. The use of
social networking sites, especially
MyBarackObama.com during the
campaign as a message board for
local rallies, 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 a place to raise money. With
Marketers across industries are slowly more than 2.6 million friends in
beginning to understand the impor- Orkut and Facebook, the Obama
tance of this new media. However, one campaign also capitalized on the well
needs to realize that social media is known social networking sites. Such
not changing the face of business mar- efforts were rewarded by the positive
keting alone, but that of marketing it- buzz that Obama received in the bloself! Its effects can be felt far and wide, gosphere. For his efforts, Advertising
and one of its most acclaimed applica- Age recently named Barack Obama
tions was its use in Barack Obamas Marketer of the year, outperforming
brands such as Nike and Apple.
2008 presidential campaign.
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and 20 million phone users, and offering campaign-related mobile ringtones for download.
Though BJP lost the 2004 elections, the efforts can be considered to be successful as it
set the stage for the use of advanced technologies in an election campaign. Since then, the
demographic profile of Indias electoral base
has changed and the usage of technology for
attracting voters is increasingly being accepted by the masses.
This time around, a number of politicians
have launched their own websites. The list
includes prominent politicians such as L K
Advani (lkadvani.in) to lesser known names
such as Vijay Kumar Malhotra (http://
vkmalhotra.in/) and Mr. Ananth Kumar
(http://ananth.org/). According to the BJP,
LK Advanis website has become very popular
and receives over 250,000 hits per day. Advani is also on Facebook, Orkut and YouTube,
while his colleague and Gujarat chief minister
Narendra Modi, uses tools such as podcasts,
Twitter, Google SMS and widgets. Indian National Congress youth wing leader, Rahul
Gandhi, has over 3,000 supporters on Facebook. 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. Though the political party does not favor digital technologies
(since it replaces human labor), it has shown
a clear preference for cyberspace-enabled
propaganda (vote.cpim.org) for their election
strategy of 2009. The CPI(M) has even admitted that since 54% of the Indian voters are
youngsters, the internet may be the best medium for reaching out to them. Parties have
even gone to the extent of wooing those not
residing in India, such as the website created
by the Telugu Desam Party (http://
www.tdpuk.com) for U.K. based non-resident
Indians.
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. Through its
Jai Ho video campaign, based on a song taken
from the much acclaimed film Slumdog Millionaire, Congress has shown the way to go
for election campaigns in India. In terms of
using technology as a means of garnering volunteer support in India, the Congress party,
during the most recent election, had set up 50
internet kiosks in the State of Gujarat, to kick
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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. In the
recent parliamentary elections, the major
backers of the Congress party were the
Aditya Birla group and the Tatas, while the
BJP received substantial funding from the
Sterlite group of Anil Agarwal and the
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Abhilash Sridharan is a 2nd year PGP student at IIM Bangalore. He holds a Bachelors degree in Metallurgical Engineering
from IT-BHU Varanasi and can be reached at abhilashsr08@iimb.ernet.in.
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Joint venture
ships
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public-private
partner-
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PRODUCT
Some authors suggest that education is a product. For example; Kaye suggests looking at distance education as a product instead efficiently
use our resources, the needs of the student/
consumer should be assessed. By doing so, 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. The products have a different name, logo, colour and
physical attributes. We can say that distance
education institution is a brand and a brand is
a way of differentiating one product from another; the greater the perceived similarity of
products, the more important the brand in establishing the differences. Some schools will
clearly feel that they are different from others,
or that the market perceives differences, which
makes it less important for them to establish
their corporate identity.
PRICE
This concept embodies more than a value that
someone will pay for it. The meaning associated with price changes is contextual. Institutions have different pricing policies and all institutions compete against each other to increase their application and enrolment rates.
Pricing policies will impact student choice between institutions.
PLACE
It is a means of getting the product into the
consumers hands. The personality of the place
sends messages to the target audience. 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, e-mail,
can serve as a differentiating mechanism.
PROMOTION
Promotion is a means of communication between the seller and buyer. It includes advertising, public relations, personal selling, publicity, and sales promotions. If one higher education institution wants to enrol more students
than other, it will need to use corporate advertising or engage in activities that create a liaison between the students and the institutions.
Publicity provides media coverage to the institutions and visibility can create confidence
about an institutions reputation and quality
perceptions.
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Epoch
First
Second
Third
Time-Period
1760 1850
1850 - 1980
Marketing Focus
Product
Brand
Experience
Proposition
Functionality
Differentiation
Engagement
Appeal
Rational
Emotional
Sensory
Association
Availability
Loyalty
Commitment
Life-cycle
Eternal
Long
Ephemeral
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Todays business
environment is
characterized by intense
competition, directed
primarily at the basic need
to survive. In such times,
firms continuously watch
out for avenues by which
to gain competitive
advantage over other
industry players.
Disruptive innovation,
referring to a concept that
can radically alter the
trajectory of the industry
itself, is an attractive
alternative for firms.
However, we consider the
next phase wherein these
very innovations could get
commoditized, with more
players engaging in similar
endeavours. We look at
the factors that could help
prevent such a
phenomenon, and the
means to effectively
leverage upon the
marketing function.
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Coming to the issue of commoditization with respect to disruptive innovations, we can see from the very
outset, that such a mass replication
is possible only when the entry barriers for such an introduction are either too low, or easy to transcend.
Thus if a retail chain were to offer a
drastic 70% off Sale once a month,
then it alone would not serve the
purpose of truly differentiating it in a
sector growing at a frenetic pace.
GLASS
1) Managing innovations in the marketing domain, so as to be able to derive sustainable competitive advantage from them.
the brands identity and the new offering portrayal can lead to undesired confusion and ambiguity in the
impressionable consumer psyche.
Thus, due consideration to this factor, and adequate preparedness for
the same is necessary to ensure that
an ingenious innovation does not
backfire, and then to make matters
worse, play straight into the hands of
the more suave competitors.
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source comes to the fore, as a point for potential differentiation: the people in the firm.
Thus, it may be seen, that often it is the firms
human resources that form the core of its marketing strategy, highlighting how the people
contribute to adding unique value to the
particular firm. Examples of this strategy
abound, from Intels Superstars, to
Googles famed 20% time policy. And with
this, strategically aligned HR processes enter the fray for sources of sustainable competitive advantage.
Thus, to conclude, one may note that disruptive innovations by themselves, developed on an unsustainable model can never
be of use to a firm. On the contrary, such an
effort shall more often than not end up being in the firms detriment. Further, such
endeavors must be based on fundamentals
that are intrinsically hard to replicate for
others. Finally, the marketing strategies
should be designed in a way that does not
conflict with the image of the firm, and if it
is aimed at a repositioning, then it needs to
be adequately armed.
Anand Justin Cherian is a 2nd year student of IIM Calcutta, specializing in Behavioral Sciences and Systems. He holds a
Bachelors degree in Information Technology Engineering from
Netaji Subhas Institute of Technology. In his free time, he likes
blogging, painting and photography. He can be reached at anandj2010@email.iimcal.ac.in.
Sarang Shahane is a 2nd year student of IIM Calcutta, specializing in Marketing and Finance. He holds a Bachelors degree
in Information Technology Engineering from NIT Durgapur.
Prior to joining IIM Calcutta he has worked with Amdocs Ltd
for nearly 2 years. He can be reached at
sarangs2010@email.iimcal.ac.in.
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coming to know of the deal. Also, by knowing the urgency of the situation and more information
than competing broker, one can get a better deal covenants, spread positive reviews of the clients
and enhance or tarnish their image.
Employing these three strategies can consistently get you deals and clients in this market and
help you become a successful securities salesperson.
Siddharth Chaudhari is a 2nd year PGP student at IIM Ahmedabad. He holds a Bachelors degree in Electrical Engineering from IIT,
Bombay and can be reached at 8chaudharis@iimahd.ernet.in
QUIZ ANYONE??
1. Geophysical Services Incorporated (GSI) a pioneering provider of seismic exploration services to the petroleum
industry during and after World war II, made a foray into electronics and designed products for the US army and
navy. How is the company today better known as?
2. Karl Elsener, the founder, started this company to create work in the sparsely industrialized central Switzerland. In
1897 the product was created and legally registered in the small village of Ibach. Since that time it has become well
-known in more than 100 countries for precision, quality, functionality and versatility. Name the product and company.
3. Living in the crowded streets of Old Delhi, Davinder Kumar Jain, understood the potential of the pen manufacturing
way back in the early 1960s. At the age of just 19, DK started producing fountain pens, a writing instrument that
deeply fascinated him, thus laying the foundation of the largest manufacturer of writing instruments in India. Identify the company/brand.
4. Originally called New Lord & Company, this company was born as a small tailoring shop in the year 1947. A couple
of years later, it was bought over by Mr Arjan Daswani. Under the aegis of Daswani, the company transformed itself into a mega shirt store. Today, its one of the established names in the Indian fashion industry and claims for
bringing international acclaim to Indian tailor craftsmanship. Which brand/company is being talked about?
5. The enterprise could be considered to have started in 1901 when William aged 21,drew up plans for a small engine
that displaced 7.07 cubic inches and had four-inch flywheels. The engine was designed for use in a regular pedalbicycle frame. Over the next two years William and his friend Arthur labored on their little bicycle. What company
was founded by William and Arthur?
6. This company, originally known as Standard Oil of California, or Socal, and was formed amid the antitrust breakup
of Standard Oil in 1911. It was one of the "Seven Sisters" that dominated the world oil industry during the early
20th century. It is now one of the worlds six supermajor oil companies and the largest producer of geothermal
energy in the world.
7. The way in which Frank Robinson wrote the name of a product was so elegant and original, it was decided to use
his handwriting for the logo of the product. Name the product that even today uses Robinsons script as its trademark.
8. After serving in the subscription department and as a copywriter for Esquire, he left in January 1952 after being
denied a $5 raise. Took his biggest gamble in 1953 by raising $8,000 to launch his business venture. Made an appearance on a popular TV series. Has a species of rabbit named after him and is known as one of the worlds bestknown womanizers.
9. Born on June 7, 1975, she did her schooling from Bombay Scottish School and later on joined Mithibai College. She
was not interested in academics and ventured into television at the age of 19. Soon changed the face of Indian television industry and completely dominated it. Awarded with Ernst & Young (E&Y) Startup Entrepreneur Of The Year
award in 2001.
Answers
1. Texas Instruments; 2. Victorinox (Original Swiss Knife); 3. Luxar Pens; 4. Chirag Din; 5. Harley Davidson Motor Cycles; 6. Chevron;
7. Coca Cola; 8. Hugh Hefner; 9. Ekta Kapoor
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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. For most firms, its
the promotional and advertising
budgets that get hit first. In such a
scenario, managers need to justify
their advertising spends and meet
required advertising ROI targets.
This calls for an accurate way of
measuring advertising effectiveness.
Effectiveness is essentially measured
through the advertising mediums
reach. For TV, advertisers want their
ad to be seen and hence the task is
to find the cost of reaching an eyeball. The primary indicator used in
TV advertising deals is Cost per rating point or CPRP. Another parameter, Cost per thousand impressions
or CPT may also be used.
The following terms will be useful to
understand the valuation of ad
deals.
Universe
The Total/Actual number of
people in a defined target audience.
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Time Spent
6
0
8
5
Cost per
(CPT)
thousand
impressions
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Marketing Gyan!!
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). This ad inventory refers to the total ad
time it can sell, say 10000 hours in a year. The
channel sells a portion of this inventory to advertisers in long-term deals of 1 year (3 year
deals are less common). 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.
Value of the deal= CPRP X GRPs X total
number of slots
Each of these slots is of 10 seconds. The issues
that form the focus of the negotiations are the
number of GRPs and the CPRP. If the slots sold
by the TV channel fail to provide the promised
GRPs, the TV channel compensates by giving
the advertiser bonus time, i.e. ad slots free of
cost. If instead, more than the promised GRPs
are delivered, the advertiser would have to pay
some extra for the extra GRPs. These details are
thrashed out in intense negotiations between
channels and advertisers.
Calculating CPT
The cost per thousand impressions is an indicator of the absolute reach of the TV medium. 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, the total number of people
reached can be found out using the universe
size.
Number of people reached= TRPs X universe
size
Whats the right metric- CPRP or CPT?
It depends on whose point of view we consider.
Most deals today are done using CPRP as the
measurement metric. TV channels claim that
this system of valuation is unfair since CPRP is
based on rating points, which indicate only percentages of the target audience reached. Considering that the target audience watching
these channels is increasing in absolute terms,
more people have to be reached by the TV channels to get the same TRPs. TV channels are
thus demanding a shift to using CPT in negotiating ad deals with advertisers.
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3. Pulse polio
2. Center shock
Before the launch of Center
Shock, the confectionery market
in India was on the road to decline. Within the confectionery
market , the chewing gum segment was showing a 23 % decline.
(AC Nielsen
Report). Under these
circumstances
Perfetti
India Ltd.
decided to launch a product that
would "shake up the market".
The most startling facet of the
product, Center Shock, is its sour
tastein fact, sour beyond exceptional. So much so that it shakes
you up. The creative challenge was
not just to communicate this in a
manner that establishes this beyond doubt for the young audience,
but also to make it memorable.
And above all, shake them up. The
central thought of the campaign,
"shakes you up", was taken forward in on-ground promotions and
media innovations. As a result of
this campaign, Center Shock went
from being a "no brand" to the No.1
brand in the chewing gum category
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Advertising during recession provides a unique window of opportunity for investment in building
strong brand equity, solidifying the
customer base, gaining new customers and more importantly making
inroads into the competitors territory. Most consumers perceive the
lack of advertising during recession
to be synonymous with the business
struggling. 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. Likewise, a vast majority perceives businesses that continue to
advertise during recession as being
competitive or committed towards
doing business.
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Saikat Mondal is a 2nd year student of IIM Lucknow, specializing in Marketing and Operations. He holds a Bachelors
degree in Electronics and Telecommunication Engineering from
Jadavpur University. Prior to joining IIM Lucknow he has
worked with Cognizant Technology Solutions for around four
years. He can be reached at pgp24277@iiml.ac.in
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With over 100 million unique URLs bookmarked and 3 million registered users, sites
like Delicious are routing substantial number
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per article.
Public Relations (PR) is a part of offline marketing strategy and is a combined responsibility of the company and the PR agency selected. According to Kashyap, Cofounder of
Inkfruit.com, If your product is innovative
and can create interest for the reader, creating
a positive PR is not difficult.
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Pradeep P N is a 2nd year student of IIM Lucknow, specializing in Marketing and Finance. He holds a Bachelors
degree in Computer Science from BITS Pilani. Prior to joining
IIM Lucknow he has worked with Juniper Networks India for
around two years. He can be reached at pradeeppn@iiml.ac.in
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Navachetna Microfin Services Ltd received Rs 1.5 crore from a few high
net worth individuals and IT professionals. A day later, Tiruchirappallibased Grama Vidiyal Micro Finance
Ltd (GVMFL) said it raised Rs 20.4
crore from MicroVest, Unitus Equity
Fund and venture capitalist Vinod
Khosla. This is the second round for
Grama, which had raised Rs 14.7
crore in 2008. These are not isolated
events which can be ignored. State
Branding has well and truly arrived
and the investor today has been dazzled with fresher and innovative marketing blitz from the various states.
Gone are the days when 26 January
used to be the only day for displaying
the resplendent riches of a region.
Even states like West Bengal, which
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ance, Disaster Management, Best-in-class infrastructure, Energy Output, Reducing Maternal &
Infant mortality rate. You are stupid if you are
not investing in Gujarat, says Ratan Tata. Modi
was voted the best CM in the country for three
consecutive years by India Today ORG-MARG
Survey. Gujarat has also been voted Best State by
Rajiv Gandhi Foundation. 100+ billion US Dollars
MOUs signed in 2007 Vibrant Gujarat Investors
Summit.
As India Inc expressed investment plans in Rajasthan, the state registered a major jump by
245.84 per cent during October-December 200809 as compared to the corresponding period of
the last year (2007-08). 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. Orissa
maintained its place at the top slot carving third
position. The secret of the success was not to be
found in JK Rowlings quiver but in simple marketing logic, innovation is the key to survival.
Proposed Project
Power
Steel
Location
Cost(Rs Million)
Jharsuguda
Gopalpur
160000
70000
TATA Steel
Steel
Gopalpur
65000
Steel
Duburi
60000
Aluminium
Kalahandi
50000
Oil Refinery
Paradeep
50000
Oil Refinery
Paradeep
50000
Duburi
42690
MESCO
Steel
Fertilizer
Paradeep
42200
Utkal Alumina
Aluminium
Rayagada
30000
Ashok Leyland
Oil Refinery
Haridaspur
24000
Ib Valley
20750
Power
Steel
Duburi
15250
Steel
Duburi
13770
Duburi
11500
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Going Green
Often green strategies are designed not only for environmental
benefits but also for the benefit of
the organization. We believe that
strategies which benefit the environment as well as the organization may
in fact help the cause, since they
would be more sustainable when
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compared to pure philanthropic initiatives, otherwise termed as Corporate Social Responsibility (CSR). The
benefits of environmentally friendly
strategies for the organization can be
broadly classified as:
Increasing market share by developing preference for environment friendly products through
advertising
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tural and personality variables. The most useful classification in the Indian context was
found to be based on three parameters: concern for the environment, awareness of environmental issues and environmentallyfriendly behavior (Jain and Kaur, 2004). The
key findings of this study show that though
Indians lack sufficient knowledge about environmental issues, there is a generally high
concern for the environment and most surprisingly, Indian consumers score very high
on environmentally friendly behavior, especially with respect to conservation of resources (saving water, oil, etc.) and purchase
decisions (buying greener products).
The most important benefit that individuals seek from environmentally responsible behavior is the desire to act in an environmentally responsible manner. The attitudes
that drive this need, resulting in purchase
behavior can be broadly classified as cognitive
and emotional. Environmental consciousness corresponds to the cognitive dimension
of
environmental
attitudes,
and
Environmental Concern refers to the emotional dispositions as individual indignation
about the destruction of nature (Hartmann
and Ibanez, 2006). 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.
Products (and services) can be broadly
classified as high and low involvement for
analyzing the consumer purchase behavior.
Since the purchase behavior is totally different for these two types of products, the implications of green marketing can be different for
these two types of products, which we bring
out in the following sections.
High Involvement Products
Any product that is perceived as expensive, risky or has emotional value attached to it is considered as high involvement
product. The benefits sought from high involvement products such as TV, cars, etc. are
very different from that of low involvement
products such as toothpaste, soap or paper
napkins. While customers may purchase a
eco-friendly low involvement product for the
benefit of environment even if the price is
marginally higher, they will not purchase high
involvement green product for it just being
eco-friendly. They will weigh attributes such
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Mens Cosmetics
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