Convergence & MarketingCommunication Adaptation.

Group II

Introduction

In 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 Technology

It 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 based on continuous re-invention

The 4 pillars of continuous re-invention are:

Brand Building

Marketing Accountability

The Marketing Organization

Integrated Marketing Communications

Types of MarketingTraditional Marketing

Internet Marketing

Social Marketing

Direct Marketing

Viral Marketing

Ambush Marketing

Guerilla Marketing

Traditional MarketingWe’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 Marketing

The 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 India

Source 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 MarketingA 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 for effective 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

ExampleLifebuoy's “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 Marketingachieve 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

Theories of Viral Marketing

Vodafone’s ad campaign featuring the Zoozoo creatures have become an international sensation. Developed in India, the playful commericals have made their way 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 views worldwide 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

ExamplesBacardi music CD’s

Kingfisher mineral water

Royal Stag music cd’s

What’s Guerrilla Marketing?

Definition of GUERRILLA MARKETING

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

Types of Guerrilla Marketing?

Examples of Ambient marketing

MINI COOPER CAMPAIGN

THE FITNESS COMPANY CAMPAIGN

Ambush Marketing

Ambush marketing refers to the practice of

appearing to align a brand with an event for which

that brand has not paid for the right to be a

sponsor. Probably this practice had existed in some

form long before 1984, but the sheer volume of

money involved and the worldwide attention given

Olympic events have led many to view the 1984

Olympic games as the origin of ambush marketing.

Examples1984 – 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 international examples of guerrilla marketing

NIKE CAMPAIGN

PANTENE CAMPAIGN

Anando Milk Campaign

REXONA CAMPAIGN

Convergence in MarketingMarketing 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 C's" are areas in which some of 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 perfect Medium 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 for which you have to choose a combination of suitable mediumsPrice 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 Television Industry

2004

2005

2006

2007

2008

2009

2010

0

100000

200000

300000

400000

INR(in millions)

INR(in millions)

Source : PwC

Growth of Indian Internet Advertisement Industry

2004

2005

2006

2007

2008

2009

2010

010002000300040005000600070008000

INR (in Millions)

INR (in Millions)

Source : PwC

Indian Entertainment and Media Industry: 2010

2% 2%2%

18%

1%

23%

1%

51%

Radio

Direct / Live

Out-of-Home

Filmed Enter-tainment

Music

Print Media

Internet Ads

Television

Source : PwC

Ad spend as a percentage of GDP

Indi

a

China

Phillip

ines

Sing

apor

e

New Z

eala

nd

Thai

land

Globa

l0

0.4

0.8

1.2

1.6

Source : PwC

Thank You