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D 9
Dr. V. N. Bedekar Institute of Management Studies, Thane
DR VN BRIMS
Daringly Brilliant
DID YOU KNOW? DID YOU KNOW?
The first TV commercial was by the In 1927, AT & T presented the
first demonstration of TV in the
Bulova Watch company on July 1,
US. Secretary of commerce
1941. The watch company paid Herbert Hoovers live image
$9.00 for an announcement that was transmitted over cable
was 10 seconds long. to New York.
Introduction
For the past several decades, the business world is going through a period of rapid changes;
technology shifting from mechanical world to digital world - the internet, computers, cell-phones
and the social media - having profound impact on the behaviour of producers and consumers. On
the other hand increasing population above sustainability level has forced businesses to device
ways towards judicious utilisation of scarce resources. Climatic changes like global warming and
rising pollution are challenging countries to limit carbon dioxide into the atmosphere, but at the cost
of imposing a higher burden on business. These and the other changes require a major rethinking
of marketing as a discipline and practise, because Its not the strongest of the species that
survives, nor the most intelligent, its the one most responsive to change.1
-Charles Darwin1
1
Long ago, it is said that the Earth was populated with very huge powerful creatures. The Dinosaurs were one of them.
Large size and robust structure helped them to survive the inclement environment including climate of those times. They
survived in the planet for thousands of years. However, when the environment changes were conspicuous, these huge
creatures found it difficult to adapt to the changing situation. They could not adjust to change. Their genes were tailor-made
to survive and sustain only inclement environmental conditions. They were not accustomed to adjust to rapid changes in
the environment. Within a short time, these huge species ceased to exist. The message of the above episode, - evolutionary
anecdote, is that unless animate entities learn to adapt and adjust to change and ensure that their rate of learning is greater
than the rate of change, their survival is impossible.
2
Source: Dr. V.N. Bedekar Memorial Research Volume- II: 2007
3. Paradigm From Marketing-mix How did marketing-mix Literature survey ; Product centric approach is still
Shift from to Relationship emerged? Secondary case prevailing but in practice, focus of
Marketing- marketing- towards Is there a paradigm shift in database of various marketers is moving more towards
mix to a paradigm shift in marketing ? industrial sectors relationship marketing as supported by
Relationship Marketing (2005) many such recent initiatives
marketing Christian Gronroos,
U.K
4. No Shift in Measuring H1: There is a perceived Correlation Within limits of this study, there is little
Paradigm Theoretical difference among the current Analysis, or no empirical evidence exists to
from Paradigm shift from marketing paradigm, as defined Spearman Rank support theoretical paradigm shift
Marketing- marketing-mix to by reliance on product and Correlation and towards relational marketing.
mix to Relational marketing application expertise roles, as Pearson Relational marketing is really a sub-
Relationship (U.S) (2000) opposed to the new approach Correlation component of large scale movements of
marketing on relational marketing by Coefficients the value-added process so its
practicing sales professionals. n-way ANOVA extremely difficult to isolate its effect
H2: There is a perceived from statistical point of view.
difference among industries,
educational levels, and years of
experience with the traditional
and emerging relational
marketing paradigm.
5. Paradigm Exploring a Is there a shift from consumers Descriptive, Firms are using more of pull strategy to
shift in role paradigm shift in passive role towards active role Qualitative data engage consumers through Web 2.0
marketing due to extension of traditional Analysis tech. like blogs, Twitter, YouTube which
(passive to communications: model of marketing resulted in shifting consumers to more
active) consumers changing communications in Web 2.0 active role.
from passive to environment?
active role (2012)
U.S
7. Paradigm Fronties of What are the reasons for emergence of sustainable Marketing has undergone a paradigm
shift from Marketing Paradigm marketing and what are paradigms for third shift from Product-centric orientation
Marketing in the third millennium? (1.0) to customer-centric (2.0) to value-
1.0 to millennium (2011) driven (3.0) approach.
Marketing Ravi S. Achrol,
3.0 Philip Kotler, U.S,
Green Marketing:
Some Eco-Issues
(2012) India
8. Paradigm Fronties of What are the reasons for emergence of sustainable Emergence of sustainable marketing
shift from Marketing Paradigm marketing and what are paradigms for third practices and increased awareness about
mass in the third millennium? need for sustainability among
consumption millenium (2011) customers.
to Ravi S. Achrol,
sustainable Philip Kotler, U.S
marketing
9. Paradigm A New marketing H1: Sales of SMEs are not equally influenced by Increase in awareness and usage of
shift from paradigm- Social traditional marketing tools and social media Social media marketing tools by
advertising media web 2.0: An marketing tools. marketers and customers.
on Empirical Analysis H1: Purchase decision of customer is not equally
traditional to study awareness influenced by traditional and social media tools.
media to and usage of Social
Social media media by SMEs in
or Web 2.0 Delhi (2012) India
1 Paradigm Social Network Very high speed of innovation related to social media marketing tools and with the same rate
0. shift from marketing 3.0 they are being adopted by various firms and consumer groups.
Relationship whitepaper, Richard Existing relationship marketing moving towards Social-media marketing 3.0 (more customised
marketing to Parker; U.S, and controlled web environment as per individual preferences).
Social-media Relationship
marketing marketing 3.0-
3.0 Thriving in
marketing s new
Ecosystem (2009)
U.S
3
Transactional marketing: It emphasizes sales transaction or exchange function of marketing.
4
Relational/ Relationship marketing: The form of marketing which focuses primarily on relationship between a
business and its customer base.
5
Marketing 3.0: It is the latest era of marketing as proposed by Philip Kotler which is value-driven, it includes the
practices like societal marketing, green marketing, corporate social responsibilities and social media marketing.
You cant just ask customers what they want and then try
to give that to them. By the time you get that built, they ll
want something else
- Late Mr. Steve Jobs
American Marketing Association (AMA), which was formed by the merging of the American
Marketing Society and the National Association of Marketing Teachers on January 1, 1937,
defined marketing as The activities and processes for creating, communicating, delivering,
and exchanging offerings that have value for customers, clients, partners, and society at large.
Kotler and Armstrong have also defined marketing as the process by which companies create value for
customers and build strong customer relationships in order to capture value from customers in return.
Marketing has developed over the last several years i.e. From Barter System to Marketing 3.0
has empowered consumers and enhanced their role in decisions that were earlier limited to board
room meetings.
According to Kotler, Marketing plays a key role in addressing todays challenges. Finance, Operations,
HR and other business functions wont really matter without sufficient demand for products.
Because the purpose of business is to create and keep a
customer, the business enterprise has two and only two basic
functions: Marketing and Innovation. Marketing and innovation
produce results; all the rest are costs. Marketing is the
distinguishing, unique function of the business.
-Peter Drucker on Customer Relationship Marketing (CRM)
6
Commerce: Exchange of goods or services for money or in kind, usually on a scale large enough to require transportation
from place to place or across city, state, or national boundaries.
Trade: The action of buying and selling goods and services.
Figure.1 depicts the eras of civilization classified for the purpose of the study:
Harappan Civilization
(3300-2600 BC)
Mesopotamian Civilization (3000 BC)
Ancient
Era
Mohenjodaro (2600 BC)
Adam Smith in his book An Inquiry into the Nature & Causes of the Wealth of Nations
has identified four stages in the evolution of mankind viz.
The Age of Hunters
The Age of Shepherds
The Age of Agriculture
The Age of Commerce
Throughout the age of hunters, mankind survived on their scavenging and hunting skills and the
hunts were used to feed their family. A wide range of weapons were created and used at this stage.
7
Civilization: A society in a stage of social development at a particular time and place.
Fig.3. Carnelian
8
Source: The rise and fall of Marketing in Mesopotamia: A Conundrum in the cradle of civilization - Z.S. Demirdjian, p.3
9
Source: Encyclopedia of Social Science, Vol. 10, 1972 ,p. 575
10
Source: The Kingfisher history Encyclopedia - editors of Kingfisher.
11
Source: http://en.wikipedia.org/wiki/Indus_Valley_Civilization
12
Archaeologists associated with the Indus Valley Civilizations include R.D. Banerji, John Marshall, N. Dikshit, Daya Ram
Sahni, Madho Sarup Vats, Mortimer Wheeler. More recent work has been conducted by B.B. Lal, S.R. Rao, M.K.
Dhavalikar, G.L. Possehl, J. F. Jarrige, Jonathon Mark Kenoyer, and Deo Prakash Sharma, among many others at the
National Museum in New Delhi.
13
Carnelian (also spelled cornelian) is a brownish-red mineral which is commonly used as a semi-precious gemstone.
14
(Early Mesopotamia: Society and Economy at the Dawn of History, By J. N. Postgat,pg 79)
Vertical Marketing System (VMS): Is a distribution strategy where the Manufacturer, Whole seller and retailer share and
15
16
Waldauer, Charles, William J. Zahka and Surendra Pal. Kautilyas Arthashastra: A Neglected Precursor to Classical
Economics <http://online.sfsu.edu/mbar/ECON605/Arthashastra.pdf>
17
Source: http://www.indianetzone.com/50/economy_mughal_empire.htm
The act of exchange is the consummation and confirmation of the marketing process,
and brings the marketing concept to life.
- Anderson, Challagalla, and McFarland
(Source: Bennet, Roger C.,J.D Singh, The failure of theory to reconcile with practice, Monograph
no: 6,International Management Institute, P. 13)
18
Reference: (Pg 11 Marketing By Irma McKinlay, Maria OConno )
Shaving Blades market was divided between Topaz, 7 Oclock, Gillette, Wilkinson, Erasmic
and others. After liberalization improved products like the twin-Blades of Gillette and Electric
shaver of Phillips replaced ordinary shaving blades market.
In 1993, the refrigerator market belonged to three brands - Godrej, Kelvinator and Voltas-
which among them held more than 90 percent of the market share. By the end of 1994 and
early 1995 their combined market share had eroded to less than 70 percent with the advent of
the newcomers - Videocon, Whirlpool and BPL.
(Source: Competing through Knowledge, Madhukar Shukla, Response Books, 1997)
Government came out in favour of outward oriented trade and industrial policies where marketing
was given prime importance and companies like Reliance, Ranbaxy, Arvind Mills , Sundaram
explored the international markets. With the de-licensing of the automobile industry in the year
1993, many international car manufactures entered India. Suzuki was the first MNC to enter India
in 1981 through a joint venture with the Government of India and set up Maruti Udyog Limited.
The traditional objective of marketing has been to make the goods available at places where they
were needed. The idea was later on changed by shifting the emphasis from exchange to
satisfaction of human wants. These developments are recognized along with the growth of
civilization.
EVOLUTION OF THE MARKETING CONCEPT
Marketing has evolved over the period of time depending on the different stages of economy.
Before industrialization, marketing as a distinct discipline was not prominent except for the limited
purpose of Exchange or Barter as the case may be. The Industrial Revolution promoted the concept
of mass production, supply exceeded demand and mass consumption was the only way to dispose
of the marketable surplus profitably from producer to consumer.
Production Concept
Pride and Ferrell [2008] traced the production philosophy during the 1850s and 1900s. This was
the Industrial Revolution. Managers of those times believed, as already mentioned, consumers
preferred products that were easily affordable and available. As Kotler rightly states that this
concept made sense in the developing countries like China where the largest PC manufacturer
Legend (principal owner of the Lenovo Group) and domestic appliance Haier were taking advantage
of the countrys large pool of inexpensive labour to dominate the market 19. There was no research
conducted to understand customers likes and dislikes. During this phase some of the issues that
confronted the manufactures were to understand what to produce and how much quantity should
be manufactured to meet demand? Henry Fords widely quoted remark about the needs of
automobile buyers They can have any colour they want as long as it is black reflects the
thinking during this phase.
19
Source: (Philip Kotler, Marketing Management, 14e, 2013 ).
20
A short-sighted and inward looking approach to marketing that focuses on the needs of the company instead of defining
the company and its products in terms of the customers needs and wants. It results in the failure to see and adjust to the
rapid changes in their markets. The concept of marketing myopia was discussed in an article (titled Marketing Myopia,
in July-August 1960 issue of the Harvard Business Review)
21
Buggy Whip Industry - A whip is a tool traditionally used by humans to exert control over animals or other people,
through pain compliance or fear of pain, although in some activities whips can be used without use of pain, such as an
additional pressure aid in dressage.
Example:
Vodafone allows customers to make their own plan
based on their preferences either on STD calling, SMS
packs or Local packs.
Sony Laptops (VAIO) facilitates customers to
personalising their equipment to match their own
individual style right from choosing aesthetic and
technical features.
It is believed that the concept of Consumer Buying Behaviour originated during this phase. The
key assumption underlying the marketing philosophy is that a marketer should make what it can
sell, instead of trying to sell what it has made22. The focus of enterprise changed from problems of
production to understanding what the consumers desired and how the companies could meet the
consumer demand at a profit. Thus demand forecasting gained momentum and the task was to find
a right product for the consumer rather than somehow fit or match the consumer into the product.
22
Source: Schiffmann LG, Kanuk LL. Consumer Behaviour, Pearson International Edition, New Jersey. 2009
Fig.8. Fizzy-drink giant Coca-Cola has launched an advert addressing obesity for the
first time on television.
The societal marketing concept emerged in the 1970s and has since overlapped with the marketing
philosophy. This concept assumes that a company exist within a society and in fulfilling customers
demand should ensure societal benefits too in the long run. This calls marketers to build a social
and ethical consideration into their marketing practices. The management here must juggle between
company profits, customer satisfaction and public interest.
23
Source: Kotler P, Keller KL. Marketing Management, Pearson Education International, London. 2009
Dattaram & Company - Indias first ever Advertising Agency - Estabished in 1905
Indias first ever press ad. 1907 - Client West End watches.
Indias first banner on trams, 1920.
Indias first vernacular ad, 1935 - Product : Gripe water.
Indias first colour ad, 1945 - Client : Ramtirth Brahmi Oil.
Indias first ad soliciting ads. 1958 - Message to clients : Be Wise. Advertise.
Indias first agency to spearhead a movement to route public sector ads only through
wholly owned Indian agencies, 1959.
Indias first agency to handle an election promotion, 1963.
EXAMPLES
1. Philips India and Videocon are competitors in the market. However, the
semiconductor unit of Philips India supplied components to Videocon for its Bazooka
model.
2. Godrej Foods sale tomato puree; so does the Hindustan Unilever Ltd., under the
Kissan brand. Both brands of puree, however, are produced at the Godrej factory in
Bhopal- using the tomato paste supplied by HUL. HUL incidentally supplies paste
also to its competitor, Nestle, for making tomato Ketchup, which competes with its
own Kissan ketchup.
3. BPL and Videocon both were competitors in consumer electronic market. However,
when the colour tubes facility of Uptron was put up for sale, both the companies
joined hands (alongwith Toshiba) to take it over and run it.
(Source: Competing through Knowledge, Madhukar Shukla, Response Books, 1997)
Good customers are an asset which when well managed and served, will return a
handsome lifetime income stream for the company.
-Philip Kotler
Examples:
1. Nokias Amazing Everyday campaign involving consumers actively: The
campaign titled The Amazing Everyday placed Lumia as a phone that allowed one to
easily share everyday moments and syncronise their physical and digital worlds
effortlessly. In malls across the country, experience zones were set up with giant live
devices and monster headsets. To amplify the Amazing Everyday campaign in the
social media space, people were invited to visit the Nokia Facebook page and submit
short stories, videos and photos on how they have been able to turn their everyday
routine life into an Amazing Day. In the words of Mr. Viral Oza, (Director-Marketing,
Nokia India),The Lumia Amazing Everyday campaign has been one of our most
successful campaigns; finding strong resonance with the youth audience who are looking
to enhance every day experiences, by sharing them with their friends and family.
2. Kissanpur campaign by HUL : This campaign, through a print advertisement,
supplied tomato seeds and insisted customers to grow tomatoes, click pictures,
uploading it on Kissan website to be a part of display on the labels of Kissan bottle.
26
Compounded Annual Growth rate (CAGR) is a business and investing specific term for the smoothed annualized gain of
an investment over a given time period - Wikipedia
EXAMPLES:
1. For apparel industry, term mass customization means manufacturing clothes that have
been pre-altered to fit an individuals body. Now it is common to have huge variety in
colour and sizes available from XS (extra small) to XL (extra large) for many leading
apparel brands like Gucci, Levis, Armani, Prada, Zara, Calvin Klein, Guess and
many more.
2. For food industry, key players like HUL, ITC, Britannia and GSK have increased
their product portfolios and product-line depth to cater to the customised needs of
various niche customer segments. Like Horlicks has variants ranging from one for
growing children to that for working woman or nursing mother.
3. Britannia offering wide range of biscuit variants from fibre content to low fat and
cholesterol for heart patients to salty and sugar-free variants suitable for diabetic patients.
4. In service industry also wide range of offerings are made available, tailored as per
customers need like LIC offering a huge portfolio of insurance plans like Jeevan
Anand, Jeevan Mitra, Jeevan Amrit as endowment plans, Jeevan Akshay as
retirement plan, Jeevan Anurag, Komal Jeevan and Jeevan Ankur as children plans
for their future education and marriage, Jeevan Saathi as Joint life plan, Jeevan Bharti
as special money-back plan for women, Jeevan Aadhar and Jeevan Vishwas as
plans for handicapped dependants and Jeevan Shree and Jeevan Pramukh plans
for high net-worth individuals.
5. In telecom industry, leading players like Airtel offering enormous number of plans like
zero monthly rentals, friends plan, night calling plans, 3G plans, high speed broadband,
unlimited broadband etc.
Fig.13. An Extended family of brand Horlicks, which portrays example of mass customisation
28
Source: Journal of the Academy of Marketing Science, Frontiers of the marketing paradigm in the third millennium Ravi
S. Achrol and Philip Kotler, 2011
29
According to the American Marketing Association, Green Marketing is the marketing of products that are presumed to
be environmentally safe. Thus green marketing may incorporate a broad range of marketing activities, including product
modification, changes to the production process, packaging changes, as well as modifying advertising.
Examples:
Reliance Digital as a part of their competitive strategy follows an Innovative pre- sales
service and sends trained staff to homes to advice on buys according to space &
ambience of the place to suggest the model that will best suit the customer requirements.
The Mobile store , retailing arm of Essar Group rolled out the MobileStore Lounge in
Pune stretching over 850 square foot, the store gives customers an opportunity to
interact with trained sales staff or tech buddies, who are armed with tablets and
consult customers on trouble shooting actions, features and specifications of various
Smartphones.
30
Gen Y : In India Gen X,Y,Z are used interchangeable but in the west Gen X (term coined in the 1950s) pertain to people
born in the 1960s 70s . In India these terms are indianised and are relevant to people in their 30s -40s. Also at times
referred to as the Choose Generation
Buildings age and become dilapidated. Machines wear out. People die. But what
live on, are the brands. Sir Hector Laing, Chief Executive Officer, United Biscuits plc.
The word Brand comes from an old Norse Brandr, meaning to burn. It was during the early
days when man stamped ownership on livestock and with the development of trade the word is
now used to distinguish goods between sellers inter se. Marketing literature supports that Branding
as practice existed during the ancient civilization in Greece, China and Rome where a potter used
to put mark his pots by putting his thumbprint in to the wet clay on the bottom of the pot and create
a mark say a fish or a star or some other icon or signage. This reinforces that symbols were the
early form of brands rather than names31 . The Industrial revolution, exposure and development in
technology resulted in mass production and further mass selling which compelled mass consumption
as an inevitable outcome. This further resulted in the need for Brand protection. The Bass Red
triangle trademark was the first registered trade mark in UK (1876).
Back in the 19th century the Bass & Co Brewery used a Red
Triangle logo for their pale ale (beer brand) and in 1876
this logo went on to become Britains first trademark and
as far as we could find, the worlds first trademark. -
Wikipedia
31
Source: Brand and branding by Rita Cliffon pg 14
32
Source : Sanskrit Epic Mahabharat , Van Parva, Page 3000,Shloak 15-22.
Boost becomes the first Indian brand to partner with Vodafone McLaren Mercedes
- Best Media info Sept 20, 2012.
33
Crowdsourcing: It is a process in marketing where customers are asked suggestions on aspects with references to the
product, advertisement etc. in return of prizes. It can occur online or offline and is often restricted to the employees and their
family.
Companies are taking advantage of this context and enabling consumers to play the Brand Game.
On the optimistic side the crowd is viewed as intelligent to give suggestions and great rewards are
offered in return.
For some companies its not the tight marketing budget that triggers this exercise but its the
customer engagement and Brand relevance that is established.
34
The measurement of longitude was a problem that came into sharp focus as people began making transoceanic voyages.
Determining latitude was relatively easy in that it could be found from the altitude of the sun at noon with the aid of a table
giving the suns declination for the day.The Longitude Prize was a reward offered by the British government for a simple and
practical method for the precise determination of a ships longitude. The prize, established through an Act of Parliament (the
Longitude Act) in 1714, was administered by the Board of Longitude. - Wikipedia.
35
Source: Consumer Participation in FMCG Crowdsourcing Contests, Lund University School of Economics and
Management Program: International Marketing & Brand Management 2011/2012
The LAYS Do Us A Flavor Contest began on July 20, 2012. The contest was open to legal
residents of any of the 50 United States or District of Columbia, who were 18 years of age or
older at the time of entry. The winners were chosen after voting on Facebook and the winner
received a prize of $ 1 million.
Kansai Nerolac recently invited people to create their own version of its iconic jingle-
jab ghar ki raunak badhani ho
The primary objective of the above campaign called kuch change karein, chalo
tune badleinwas to engage and involve consumers, thereby further strengthening
their affinity with the brand
- Sukhpreet Singh, Vice President (Marketing & Sales) Kansai Nerolac Paints
36
Zipping: With the advent of technology, like TataSky, DTH Service which allows an individual to record a show and
watch later at convenience also enables an individual to fast forwarding through commercials while watching a previously
taped show is termed as Zipping.
37
Zapping: The act of using a remote control to change television channels when an advertisement begins.
38
Source: (Avery Rosemary J and Rosellina Ferraro, Verisimilitude or Advertising? Brand Appearances on Prime Time
Television, Journal of Consumer Affairs, 34(2),217-2444, 2000)
Fig.27. A still from the movie Chalti Ka Naam Gaadi(1958), depicting Mobil brake
fluid advertisement display
Film producers also welcome and constantly look out for brands that fit in to the integral part of the
script since it also is a revenue model for the film fraternity resulting in a Win Win situation for the
marketers as well as the film producers.Marketers in the recent years have also explored television
serials with high Television Rating Points40 (TRPs) to reach and connect to the audience.
Fig.28.Movie - Late Spring in 1949 as the Fig.29.Coca Cola have been a prominent
heroine Noriko cycles with a male friend, feature on the judges desk in American
we see a Coke ad in the foreground. Idol.
39
Source : Comparative study of the practice of product placement in bollywood and hollywood movies, Shruti Vinayak
Gokhale ,2010
40
Television Rating Points3 (TRPs) - Television Rating Point (TRP) is a tool provided to judge which programmes are
viewed the most. This gives us an index of the choice of the people and also the popularity of a particular channel. For
calculation purpose, a device called Peoples Meter is attached to the TV set in a few thousand viewers houses for judging
purpose. These numbers are treated as sample from the overall TV owners in different geographical and demographic sectors.
It should be noted that product placement unsupported by shelf placement, preferably immediately,
following the advertisement, renders sales promotion and the associated time money and effort
rather defunct. Many massive amounts invested in very expensive media are rendered unproductive
for want of co-terminal operation of publicity programs and logistical arrangement at the point of
consumption.
41
Shoppers are defined as people who go to the store/online to make a purchase of a product in a product category.
42
Shopper Insights: The State of the Science- By Peter Krieg and Jeff Maloy(p.2)
43
National Brand: The brand name of a product that is distributed nationally under a brand name owned by the producer
or distributor. Private Brands : Products distributed only in some areas of the country
Bharati Retail, Walmarts joint venture partner in India, have bought eight private labels
in total including Great value line of food (flour, dry fruits, spices, cereal, and tea) .
Other Wal-Mart private labels introduced in India include George apparel. Home
Trends (Home furnishing), Mainstays ( plastic , kitchen accessories) are a few of the
private brands bought to India by Wal-Mart.
(Source: International Journal of Multidisciplinary Research Vol.1 Issue 8, December 2011)
44
Source : http://www.retailcustomerexperience.com/article/21480/The-evolution-of-private-labels-at-retail
Brands are spending more on marketing now, perhaps between 20-40% more than they
were at the beginning of the year theres a lot more assertiveness and confidence in terms of
getting known faces to promote brands,
- Anirban Das Blah, CEO & MD of talent management firm CAA Kwan, which represents
actors Ranbir Kapoor and Freida Pinto ( Economic Times, Dec 4, 2012)
Its a saying in the Bollywood that Every friday a star is born and every friday the destiny of
Bollywood stars changes
The Law of Demand can also be applicable to the film fraternity, in view of the fact that as their
movies are declared hit in the box office brands start signing them as their endorser.
However assessing the popularity and the influencing capability of the star is not an easy task, here
Times Celebex powered by zoom makes a difference. The rating index is based on several
measurable parameters, including the stars box office performance, their ability to stay in the news
across print, TV and online; their brand endorsement, and their popularity among fans on the
Internet and social media and all these are taken together to assign a T-SCORE.
Bacardi launched Bacardi + to increase male beer drinkers since it contains 8% alcohol. To
explain this launch of drinks for males, Mahesh Madhavan, (CEO South Asia, Bacardi) shares
If you peg anything for men in this market, women will drink it, but the reverse doesnt
happen . Men do not consume a drink positioned for women, thats unfortunate but is the
fact.
Unilever brand Dove, which is present in categories like body wash, hair care has launched a
Men + care range for men. According to Jennifer Bremner, Global brand director Our
research found out that males use women skin care products
The Midnight Sale is all about enhancing the Ford experience on a one-day scenario and
also enhancing the attractiveness of buying a vehicle on this day,
Nigel E Wark, Executive Director, Marketing, Sales and Service, Ford India
Service Marketing Academics and Experts have added the 8th P in Marketing of services i.e
Productivity in the book on Service Management by Lovelock and Wirtz, 2007, pp. 22-23.
Service industry unlike to the product Industry is dominated by human capital and resulting in
production of heterogeneous services. It therefore becomes important to manage the demand and
capacity. Promotional efforts like Happy Hours, discounts etc. are measures to ensure productive
use of capital.
Many companies are also trying out their own version of the Ps depending on the product and the
market in which the product sells. Its a practice with some websites and bloggers to add an
adjective starting with the letter P to the Ps in marketing but 8 Ps in marketing are supported by
authentic publishers.
Research Monograph: Paradigm Shift in Marketing 56
Paradigm Shift from mere Graphics to Musical cues in Advertising
Considering how difficult it can be to get a jingle out of your head when you have heard it several
times. Whether you like it or not, and even if the jingle is irrelevant, you just cant seem to stop
humming it. Music plays an imperative part in the marketing tool scale. With the intensifying usage
of TV and Radio and Out- of home Advertising (OOH)46 consumers are exposed to hundreds
of advertisements daily. The question now arises which of the ad will have a high Recall Value.
Music can be altered in the meaning of the ad. They were first used in advertising in 1928, when a
radio advertisement asking Have Your Tried Wheaties? hit the air. According to author Steven
Karman in his book Who Killed the Jingle? Ads that include music often tend to be used in
our daily communication because of their high recall. After hearing a jingle several times as part of
a marketing campaign, consumers often create their own repetition and start humming the tune or
singing the words in their head. Sometimes the mere sight of the product can trigger the words of
the corresponding jingle.
Examples:
Titan still rules the heart by its silent ad la la la la, la la la ... and is amongst the Best ad Jingles
ever made.
Kansai Nerolacs brand Jingle Jab ghar ki rounak badhani ho has been winning
hearts of Indian audiences for decades. Recently as a parts Customer Engagement strategies,
the company gave its consumers a chance to come up with their own Jingle in a contest named
Kuch Change Karein, Chalo Tune Badlein Personalise the Nerolac Jingle campaign on
Facebook and Twitter.
A very recent example is the overwhelming response
and recall that the brand Thumps Up enjoyed when
it launched the recent campaign in sync to its rough
and tough personality connected with its target
audience throughout its Aj Kuch Tofani Karte
Hain Campaign.
Marketers are trying hard to connect to the audience either by its jingle or punch line. Some punch
lines are so effective that they are used in our daily communication. Some jingles are marketed so
effectively over the years that mere listening of that jingle recalls the brand. Most of the jingles
mention the brand at the end, ample number of times for effective recall.
46
Out- of - Home Advertising (OOH): All the advertising that is not on television, the radio, in magazines and newspapers
or on the Internet. It can be on roads, trains and buses etc.
47
Source: http://hungamadigitalservices.com/case-studies/xuv-500-launch
If your plan dont include mobile, your plans are not finished.
- Wendy Clark Senior Vice President, Integrated Marketing Communications and
Capabilities The Coca-Cola Company
48
Mobile marketing is marketing on or with a mobile device, such as a cell phone Wikipedia.
Fig.50. A recent study showed that Half of Indias homes have cellphones, but not toilets
-March 14th 2012 - The Hindu
Mobile Advertising spending in India to grow by 40 % in a year Mobile Marketing
Association (MMA) in partnership with exchange4media, estimated the size of the mobile
advertising in India to be 180 crore, which is expected to increase by 40% in the next 12 months.
The report also affirms the share of mobile advertising to be 10% of the overall digital advertising
spends in India. Mobile is an exciting, fast growing category, but its still a very small piece of the
overall pie. Mobile advertising is growing at a fast pace and will soon challenge other channels
was the outlook of Rohit Dadwal, Managing director, MMA, Asia Pacific.
Source: timesofindia.indiatimes.com, Sep 21st 2012.
49
Banner ad is a form of advertising on the World Wide Web that appears while browsing any particular website.
50
Short Message Service (SMS) is an exchange of a text message that people possessing a mobile or fixed line send using
a standardized communication protocol.
51
Do not call register: It is a service that un-subscribes a number from promotional calls from a marketer.
Many famous personalities have their blogs that connects them to the audience where they are free
to discuss what they want and put their opinion across.
Blogs are an effective tool of influencing a purchase decision since in most of the cases they are
written by genuine customers. Thus companies are constantly monitoring what is discussed on the
web via blogs or social media updates.
When Abhishek and Aishwaryas were gifted with their first child, it was on Twitter that Amitabh
Bachchan twitted the childs real name putting all the curiosity to an end. My granddaughter is
called Aaradhya, Amitabh Bachchan had posted on Twitter52.
Ever realized playing with the little one for just a few minutes could be equivalent to an entire
two hour workout in the gym! Child is the father of man, Amitabh Bachchan wrote in his blog.
52
Indiatoday.in (20th May 2012)
53
Bottom of the Pyramid: In economics, the bottom of the pyramid is the largest, but poorest socio-economic group. In
global terms, this is the 4 billion people who live on less than US$2.50 per day. The phrase bottom of the pyramid is used
in particular by people developing new models of doing business that deliberately target that demographic segment, often
using new technology.
54
Source:http://www.hul.co.in
Paradigm shift from Marketing 1.0 to Marketing 3.0, where we see companies expanding their
focus from products to consumers to humankind issues where profitability is balanced with corporate
social responsibility (as mentioned by Philip Kotler in his book Marketing 3.0). This so called
human spirit-driven paradigm is truly evident from the recent launch of Being Human clothing line
with tagline- A clothing line with a heart, now in stores. Royalties from the sales will support
education and healthcare initiatives of Being Human- The Salman Khan Foundation.
55
ComScore article dated August 19, 2012 - http://www.comscore.com/Insights/Press_Releases/2012/8/
In_India_1_in_4_Online_Minutes_are_Spent_on_Social_Networking_Sites
Companies follow different ways to allocate Marketing Budgets. According to Neilson in their
Global AdView Pulse report fast-moving consumer goods56 (FMCG) companies accounted for
approximately a quarter (25.1%) of all ad dollars spent between January and September 201257
making it the largest sector by ad spend market share, with FMCG brands increasing their ad
spend by 6% in 2012.
Fig.58. Industry wise break up of Marketing budgets and FMCG Marketing Budgets
Source: http://www.thehindubusinessline.com/industry-and economy/marketing/article3487101.ece?ref=wl_industry-and-
economy.
56
Fast-moving consumer goods (FMCG): Goods that are sold quickly and are relatively of low cost examples : grocery
items, toiletries.
57
http://www.mandmglobal.com/news/01-02-13/fmcg-brands-account-for-25-of-global-ad-spend.aspx
Volvo to spend Rs 20 crore on marketing, will unveil Rs. 25 lakh car in 2013
Volvo Auto India (VAI) will bring its Rs 25 lakh car, V40 Cross Country, unveiled recently in
Paris, to India in March or April 2013 and increase its overall marketing budget in the country
from Rs 16 crore to Rs. 20 crore for the year 2013.
(Souce: The Hindu: Business Line- Dec 27, 2012)
58
http://www.thehindubusinessline.com/industry-and-economy/marketing/article3487101.ece?ref=wl_industry-and-
economy
59
Advertising on the upswing for FMCG companies in March quarter - The Hindu Business Line, June 3rd 2012.
60
http://smartinvestor.business-standard.com/company/direcrpt-3392-Dabur_India_Ltd.htm
Paradigm Shift:
Era Concept
Production Orientation Supply created its own Demand
To
Quality of Product was considered to be
Product Orientation
important
To
To
Marketing function guiding company's
Market Orientation
direction
To
Focus on customer, satisfying his needs and
Customer Orientation
making a King
To
Effort to retain existing customers rather than
Relationship Orientation
acquiring new customers every time
To
Using knowledge and theories of earlier eras
making real-time connections, establishing
Social / Mobile Orientation
social exchanges based on relationships driven
by consumers
A paradigm shift as we all know occurs whenever a new analytic framework changes the
understanding of the way a system operates. Marketing has been adopting these system changes.
For example an interesting element of this mystery is consumer Market in India has diverse languages,
regions, religions, economic and social status, and has always been a tricky proposition to
understand.
It is observed that the market is undergoing a paradigm shift due to Indias rapid economic growth
and promising demographics. The Indian consumer market is on a growth path and this growth
will be mainly driven by a favourable population structure and rising disposable incomes. Till now
the consumer market was mostly defined as a pyramid, a very small wealthy class with a taste for
luxury and high-end goods and services at the top, a middles-class at the centre and a huge
economically underprivileged class at the bottom. This pyramid structure of the market is slowly
Example: Horlicks Asha, a health drink was promoted by adding 4000 sub-distributors with
special advertising campaigns of street play, and through movie screening.
HULs personal products unit initiated Project Bharat, the first and largest home-to-home
rural operation, where HUL had vans visiting across villages of the country distributing sample
packs comprising a low-unit-price pack each of shampoo, talcum powder, toothpaste and
skin cream priced at Rs. 15. This was to create awareness of the companys product categories
and of the affordability of the products.
Amul is another case in point of aggressive rural marketing.
Some of the other companies that are making headway in this area are Coca Cola India,
Colgate, Eveready Batteries, LG Electronics, Philips, BSNL, Life Insurance Corporation,
Cavin Kare, Britannia and Hero Honda.
Marketing has made changes to itself to deal with the needs generated by the paradigm shift that
have occurred in the family system not only from joint family to nuclear family, but considering
various family forms such as homosexual marriages, communes, groups of elderly people coming
together to share expenses, tribal groupings, also contract marriages for short periods and even
live-in partners; from public housing to homeownership, from national health service to private
options, from government regulation to market mechanism, from welfare to workfare, from
collectivism to individualism, in political systems - from government monopoly to competitive
enterprise, from state industries to privatized companies, from government Security Plans to private
insurance and investment; healthcare administering healthcare programs for communities and not
just individuals, changing treatment methods from allopathic to ayurvedic and homeopathy; man
management change has occurred from personnel management to human resource management.
In education the institutes have changed from the old paradigm of Teaching and Testing to new
paradigm of continuous learning and development, from education delivery to education management.
Earlier the teachers were expected to know everything and were viewed as the students natural
adversaries (perhaps as enemies), whereas today Teachers are experts in their own field applying
their insights as appropriate to real-life challenges and they are viewed as teammates and partners
in removing obstacles to students progress.
Development and advances in Information Technology has resulted in changed ways of working
for example:
Rail reservations, banking, scheduling, inventory, pay-roll, accounting and production, retail business
is virtually getting transformed.
For the petroleum retail sector in India, recent years have seen elementary changes in the way
Research Monograph: Paradigm Shift in Marketing 76
Industry Speak
business is being done. In India petrol has been a homogeneous commodity with a same price for
many decades. Consumers in India had never seen brands of petrol and different brands being
sold at different prices. Hence, there was no question of brand loyalty to exist and for them petrol
brands and different pricing are a new thing altogether. In the period of protection and control,
marketing of petrol actually meant distribution of petrol. In the name of marketing, petrol selling
companies strengthened their distribution network by adding more and more number of petrol
pumps to their network. Efforts made for expanding the coverage were considered as marketing.
Today, all of a sudden, they are not protected by the government and are exposed to the competition
from private players. Hence it has become necessary to keep a watch at the marketing strategies
of the competitors.
In sports - Indian Premier League (IPL) provides a paradigm shift approach of cricket marketing
in global cricket industry. IPL not only provides spectators with a fun, fast and is cost-effective but
has established the benchmark in cricket marketing, ensuring high cricketers salary, productive
engagement of all related stakeholders and a solid financial platform. IPL is based on the Twenty20
format of international cricket and tailored the marketing practices of English Premier League
(EPL) and American National Basketball Association (NBA). IPL concept has proved its global
acceptance, opportunities and increased revenue pattern as a paradigm shift in global cricket
marketing.
During old days of marketing, prospects would need to accept the product that was pushed and
provided to them. Consumers only had a few channels to get their information from such as local
newspaper, radio or TV station. The deal with those channels was, look/listen/watch my
advertisements, and Ill show you the entertainment stuff you want.
This marketing paradigm is undergoing a dramatic shift.
Today, consumers have thousands of channels to get their information/entertainment from, namely
the internet. With intelligent search engines and social channels available to them, consumers can
hunt the content they want about a product or service, when they want to consume it and in the
form they want it; video being the most preferred form (after all, YouTube is the 2nd most popular
search engine).
The old Push marketing model is falling back. People want what they want, and dont want what
they didnt ask for. If the marketers keep pushing their adverts/ promotional material at prospects,
all they are doing is annoying them and creating a bad impression for their brand for example the
number of emails that are deleted by an individual from the inbox everyday or close the browser
leaving websites because they didnt give the information right away that was asked for.
In the new way of marketing, product or service providers create content that can be viewed
online and visually engage a prospect who interacts with that product or service content. The
prospect while browsing pulls the content on his display screen at his convenience drawing value
from the content, indirectly telling the vendor that a more in-depth information is required that
would stimulate his senses allowing him to make informed choice about the product or service.
Example: If you want to buy a car you get all the information from carwale.com before you go
to the showroom or if you want to buy a property you visit magicbricks.com or
indiaproperty.com or any such source to get the required information. You do this at your
leisure, in the company of your family and friends where you discuss and satisfy yourself
before you set out to buy.
The future will not fit into the containers of the past. In the old paradigm media buying was, to a
large extent, about managing reach and frequency. With the advent of digital media, the banner ad
became digital analogue to the 30-second TV spot. Content marketing and mobile apps are not
merely new methods of seeking attention, but new possibilities to build assets in the marketplace
and increase consumer engagement. Brands today do not merely satisfy consumers need about
the feature or attribute of a product but have become partners by helping the consumers to get the
maximum utility and enjoyment out of their purchase.
Example: LOreal Paris, created the Destination Beauty channel on YouTube to give consumers
advice on how to use their products.
Another example is the Michelin Guides, which was conceived to help motorists get more out
of driving to new places;
Similarly American Express Open Forum gives small business owners advice on running their
enterprises.
Johnson & Johnson doesnt just sell baby products. The Baby Center is an exhaustive resource
of parenting information and other baby tips provided by the brand.
The paradigm in marketing has shifted from intrusion to inclusion. Consider an advertisement that
once was considered as a disturbance, intrusion, is now considered as a part of ones life as the
same is observed for getting more knowledge about the product for example: advertisement of
Colgate Sensitive toothpaste giving us knowledge on exposed nerves below the teeth and home
remedy for the same.
The paradigm has also shifted from transactions to relations with all the values focussed on the
eventual consumer. The marketing effort has moved from merely pushing the information to the
prospective consumer to creating a viral that appeals to consumer so that he/she gets pulled to
make a purchase - Transactional marketing emphasizes on the key marketing mix elements like
product, place, price and promotion within a functional context. The goal of each party is to
maximize the benefit received from each transaction.
Example: Ginger Hotels unique self check-in facility, which allows you to help yourself in
without any assistance from the Front Office, saving time and fuss is a recent example in India
of transactional marketing.
Other examples are Retail stores having self check-out facilities and Newspaper vending
machines abroad allowing dropping money and pick-up a newspaper are indicators of a
transactional approach.
The ultimate being an online shopping on Amazon where some browsing is possible but you
often know what you want, self-select and self-checkout.
D 9
Daringly Brilliant
Vidya Prasarak Mandals
Dr. V. N. Bedekar Institute of Management Studies, Thane
Jnanadweepa, Chendani Bunder Road,
Thane (W) - 400601, Maharashtra
Tel: (91-22) 2536 4492 Fax : (91-22) 2544 6554
Email : vnbrims@vpmthane.org
Website : www.vnbrims.org