Convergence &MarketingCommunicationAdaptation. Group II
IntroductionIn today‘s day & age Technology is developing rapidly All sphere‘s of life are changing There are new challenges & opportunities It‘s making marketing easier yet complex Marketer‘s of the 21th century need to be Pro-Active
Introduction Contd. Contributing Factors: Internet Cellphone Digitized lives Social Media Interactive Media
IMPACT of TechnologyIt has altered traditional marketing irreversibly It‘s put the information on the Consumer’s Lap Has changed the Methods of Approach Altered the mechanics for Brand Management & Brand Equity Creation. Changed the Media Landscape, through new alternative‘s
Marketing Strategy is now basedon continuous re-invention The 4 pillars of continuous re-invention are: Brand Building Marketing Accountability The Marketing Organization Integrated Marketing Communications
Types of Marketing Traditional Marketing Internet Marketing Social Marketing Direct Marketing Viral Marketing Ambush Marketing Guerilla Marketing
Traditional Marketing We‘ve come a long way since the early 20th century. Out of the Box thinking, is the need of the hour. A paradigm shift with respect to television & radio is underway. Opportunities for marketers have increased as they can reach a far wider audience.
Advantages of Print Media Specific Target Audience Loyal Readerships Special Advertorial Positioning Credibility Life Span High Reach Prospective
Internet MarketingThe most common types of Online Marketing include: Pay Per Click Banner Advertising Email Marketing Organic Search
Examples Face book page of Axe angels LUX – Gang of Girls website In October, 2008, Pizza Hut became the first pizza chain to add an application allowing users of social networking site Facebook to order food directly through the site with its Pizza Hut Interface. Also done by Papa John‘s and Dominos.
Top 5 Social Networks in IndiaSource PwC analysis.
Some worthwhile Statistics: 60% of the social networking traffic come from Non Metro-Cities but the highest traffic generating city still remains to be a Metro i.e. Mumbai The highest number of active users are from the 15-24 age group but LInkedln has a different age group of active users i.e. 25-34 age-group Social media in India reaches out to 60 per cent of the online Indian audience Facebook and Orkut, together cater to about 90 per cent of the users in the social media space. The maximum users come from the ‗less than 2 lakhs p.a.‘ income category. This is because social networks are primarily driven by the youth More than 45% of the users on Social Networks return during the day. Facebook tops the list with users re-visiting more than 3 times during a day Majority of the time spent by the Indian audience on Facebook is on Interactive Games/Applications and then on viewing Photos
Social Marketing A process that uses commercial marketing techniques to promote the adoption of positive health or social behaviors. An approach that benefits the people who are adopting the behaviors or society as a whole, rather than the organization doing the marketing.
Strategies adopted foreffective Social Marketing Talk to customers Segment audience Position product Know the competition Go where the audience is Build partnerships with key allies Using correct Models
Example Lifebuoys “Swasthya Chetna” (LSC): a five-year health & hygiene education program initiated by HUL. The program was formally launched in 2002, in eight states across India. The methods used: traditional media, direct marketing and internet.
Direct marketing communicate straight to the customer Three types Telemarketing Email direct marketing Direct mail marketing results can be measured directly Cost per customer is high
Viral Marketing achieve marketing objectives through self-replicating viral processes. It can be delivered by word of mouth or Internet The ultimate goal is to create viral messages that appeal to individuals with high social networking potential (SNP) Three factors in viral marketing are Messenger Message environment
Vodafone‘s ad campaign featuring the Zoozoo creatures have become aninternational sensation. Developed in India, the playful commericals have made theirway to the internet and become viral hits. The campaign, ―Make the Most of Now,‖has become truly global as a result. The videos have collected millions of online viewsworldwide and firmly positioned the Zoozoo creatures as loveable global icons.
Surrogate Marketing Surrogate marketing refers to intentionally utilizing a company, person or object to help convey the message of another party. The makers of certain products are banned to advertise and they resort to surrogate advertising. It is a sort of advertising where a cover product is promoted in order to promote
Examples Bacardi music CD‘s Kingfisher mineral water Royal Stag music cd‘s
Definition of GUERRILLAMARKETING JAY CONRAD LEVINSON – Father of Guerrilla Marketing
GUERRILLA MARKETING Guerrilla marketing was once called STREET Marketing because it was placed in the street. Street marketing is a form of communication that takes place in the street and tries to entertain the audience in order to make the public the actor of the promotion
Why use street marketing ? To develop brand loyalty To recruit new consumers To optimize visibility, attribution and memorization of the message To build a community To stand out from the competition To create curiosity rather than hostility and lack of interest To get press
Examples of Ambientmarketing MINI COOPER CAMPAIGN THE FITNESS COMPANY CAMPAIGN
Ambush MarketingAmbush marketing refers to the practice ofappearing to align a brand with an event for whichthat brand has not paid for the right to be a sponsor.Probably this practice had existed in some form longbefore 1984, but the sheer volume of moneyinvolved and the worldwide attention given Olympicevents have led many to view the 1984 Olympicgames as the origin of ambush marketing.
Examples 1984 – Kodak Ambushes Fuji – Ambush Marketing Is Born FIFA World Cup 2010- NIKE went for Ambush Marketing and launched ―Write the Future Campaign‖. The campaign featured TV commercials consisting of football stars like Rooney, Ronaldo were launched three weeks before the starting of FIFA World Cup.
Wills Cup 1996:- Pepsi used Ambush Marketing to capitalize such an event by launching a campaign called ―There is nothing official about it‖.
Indian and internationalexamples of guerrillamarketing PANTENE CAMPAIGN NIKE CAMPAIGN
Convergence in Marketing Marketing convergence is the orchestration of information technology, marketing and design required to ensure that companies present an integrated, consistent, clear and interactive message across all the media they use.
These "five Cs" are areas in which someof the most interesting new "fusion"concepts can be developed: Customerization—Convergence of customized and standardized offerings and messages Community—Convergence of virtual and physical communities Channels—Seamless convergence of call, click, and visit Competitive value—Convergence of new and traditional competitive value equations and pricing models Choice tools—Convergence of new search engines and decision tools for consumers and company-provided advice
Choosing the perfectMedium Direct mail has the highest impact of any medium. Your message reaches each recipient in a personalized way. Television also offers the advertiser an opportunity to speak to a captive audience. In fact, television viewers are even more apt to fully ―tune into‖ an advertisement. Radio offers a dramatic improvement over ―print‖ advertisements. The ―listener‖ is captive to the message unless they switch stations or turn the radio off. The cost to reach the same amount of people that a print ad would reach, however, is significantly higher.
Outdoor and transit advertisements are hard to avoid viewing. But, despite the high visibility factor, no one spends any great amount of time reading them. They are appropriate for very simple messages. Magazines offer a slightly better opportunity to catch the reader‘s attention. Readers tend to peruse magazines more carefully than they do newspapers, and because magazine ads are placed fewer per page, the competition for the reader‘s eye is reduced. Newspapers are generally the cheapest way to reach a mass audience. However, newspapers carry many ads.
Types of Advertisement forwhich you have to choose acombination of suitablemediums Price advertising Image advertising Local service advertising Business-to-business advertising Direct response advertising
Conclusion It‘s the imperative – driven by technology – that will relentlessly transform every aspect of the profession in the future. Thus we can say that the future holds the followings:- Consumer in Control: New Agenda for Agencies Hail to the Chief Unconventional Outreach: Media Buying Metamorphosis Continuous Marketing Reinvention:
Growth of Indian TelevisionIndustry INR(in millions)450000400000350000300000250000200000150000 INR(in millions)100000 50000 0 Source : PwC
Growth of Indian InternetAdvertisement Industry INR (in Millions)800070006000500040003000 INR (in Millions)20001000 0 Source : PwC
Indian Entertainment and MediaIndustry: 2010 Radio 2% 2% 2.00% Direct / Live 18% Out-of-Home 1% Filmed51% Entertainment Music 23% Print Media Internet Ads 1.00% Television Source : PwC
Ad spend as a percentageof GDP188.8.131.52.2 10.80.60.40.2 0 Source : PwC