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Convergence &
Marketing
Communication
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 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 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 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 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
Example
 Lifebuoy'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 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
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
Examples
 Bacardi 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.
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 international
examples of guerrilla
marketing




                  PANTENE CAMPAIGN



 NIKE CAMPAIGN
REXONA CAMPAIGN




Anando Milk 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 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
mediums
 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 Television
Industry
                  INR(in millions)
450000
400000
350000
300000
250000
200000
150000                               INR(in millions)
100000
 50000
     0




   Source : PwC
Growth of Indian Internet
Advertisement Industry
                  INR (in Millions)
8000
7000
6000
5000
4000
3000                                  INR (in Millions)
2000
1000
   0




   Source : PwC
Indian Entertainment and Media
Industry: 2010

                                          Radio
                 2% 2% 2.00%
                                          Direct / Live

                               18%        Out-of-Home

                                     1%   Filmed
51%
                                          Entertainment
                                          Music
                               23%
                                          Print Media

                                          Internet Ads

                 1.00%                    Television



  Source : PwC
Ad spend as a percentage
of GDP
1.8
1.6
1.4
1.2
  1
0.8
0.6
0.4
0.2
  0




      Source : PwC
Thank You

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Marketing final version

  • 2. 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
  • 3. Introduction Contd. Contributing Factors:  Internet  Cellphone  Digitized lives  Social Media  Interactive Media
  • 4. 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
  • 5. 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
  • 6. Types of Marketing  Traditional Marketing  Internet Marketing  Social Marketing  Direct Marketing  Viral Marketing  Ambush Marketing  Guerilla Marketing
  • 7. 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.
  • 8. Advantages of Print Media  Specific Target Audience  Loyal Readerships  Special Advertorial Positioning  Credibility  Life Span  High Reach Prospective
  • 9.
  • 10.
  • 11. Internet Marketing The most common types of Online Marketing include:  Pay Per Click  Banner Advertising  Email Marketing  Organic Search
  • 12. 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.
  • 13.
  • 14. Top 5 Social Networks in India Source PwC analysis.
  • 15. 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
  • 16. 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.
  • 17. 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
  • 18. Example  Lifebuoy'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.
  • 19. 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
  • 20. 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
  • 21. Theories of Viral Marketing
  • 22. 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.
  • 23. 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
  • 24. Examples  Bacardi music CD‘s  Kingfisher mineral water  Royal Stag music cd‘s
  • 26. Definition of GUERRILLA MARKETING JAY CONRAD LEVINSON – Father of Guerrilla Marketing
  • 27. 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
  • 28. 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
  • 30. Examples of Ambient marketing MINI COOPER CAMPAIGN THE FITNESS COMPANY CAMPAIGN
  • 31. 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.
  • 32. 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.
  • 33.  Wills Cup 1996:- Pepsi used Ambush Marketing to capitalize such an event by launching a campaign called ―There is nothing official about it‖.
  • 34. Indian and international examples of guerrilla marketing PANTENE CAMPAIGN NIKE CAMPAIGN
  • 36.
  • 37. 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.
  • 38. 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
  • 39. 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.
  • 40.  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.
  • 41. Types of Advertisement for which you have to choose a combination of suitable mediums  Price advertising  Image advertising  Local service advertising  Business-to-business advertising  Direct response advertising
  • 42. 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:
  • 43. Growth of Indian Television Industry INR(in millions) 450000 400000 350000 300000 250000 200000 150000 INR(in millions) 100000 50000 0 Source : PwC
  • 44. Growth of Indian Internet Advertisement Industry INR (in Millions) 8000 7000 6000 5000 4000 3000 INR (in Millions) 2000 1000 0 Source : PwC
  • 45. Indian Entertainment and Media Industry: 2010 Radio 2% 2% 2.00% Direct / Live 18% Out-of-Home 1% Filmed 51% Entertainment Music 23% Print Media Internet Ads 1.00% Television Source : PwC
  • 46. Ad spend as a percentage of GDP 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 Source : PwC

Notas del editor

  1. Volkswagen ad in 1950
  2. Volkswagen ad in 2011