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Marketing

Management:Programmes

&Implementation

Some stats:

14 million retail outlets

Majority less than 600 sq.ft

1000 shops/ 11users

Organised retailing

Online retailing

67 % pop rural

More than 65%, less than 35 year

• Online retailing • 67 % pop rural • More than 65%, less than 35 year
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Channel Strength HUL (Source:Corporate

presentation)

Channel Strength – HUL (Source:Corporate presentation) 2/28/2018 MMPIS 16
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Online retailing - distribution and Logistics

(source: KPMG report 2015 )

First mile Logistics

From seller to fulfillment centre without packaging /labelling

seller to mother warehouse fully packed

Fulfillment

Pick list packing mother warehouse

Processing and sorting

Based on delivery location at the processing centre

Company owned and Third

party logistics

Line-haul: This stage involves

connecting the main supply centre with the main demand centre, via land or air depending on the transit time and cost matrix

Last Mile Logistics

Mother hubs to delivery hubs to customer

Returns and Reverse Logistics

Roughly 15 -20 % of forward shipping

(source: KPMG report 2015 )

(source: KPMG report 2015 ) 2/28/2018 MMPIS 33

Inventory led

Fulfilled

Models

Marketplace

Drop ship

The marketplace model is being adopted for high-value products,

while the inventory model is

adopted for relatively lower- value, fast-moving products.

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Reach is the primary step of filtration used by e- commerce retail companies in India.

Currently, many logistics companies have an average reach of 4,000-5,000 pin codes out of the 26,000 pin codes in India. A large number of logistics companies are well penetrated in the metro and tier-I cities; however, their reach is limited to smaller cities and rural areas.

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Online /digital retailing

A recent Google/A.T. Kearney study predicts online retailing in

India will expand to 175 million shoppers three times the

current number by 2020. E-commerce is widely expected to exceed $100 billion by that same year

Long tail theory (Chris Anderson, 2006): Why the future of business is selling Less of More?

Products that are unprofitable thru offline stores, distribution costs approach zero so the tail can be extremely long

unprofitable thru offline stores, distribution costs approach zero so the tail can be extremely long MMPIS
MMPIS 47
MMPIS
47

2/28/2018

Omni Channel retailing

Omni Channel retailing 2/28/2018 MMPIS 49

Omni-channel Retailing is a multi channel

approach which provides an integrated and

seamless experience on all formats.

Tesco

Digitally immersive flagship store of Van Heusen

Digitally immersive flagship store of Van Heusen 2/28/2018 MMPIS 51

Can You Win Back Online shoppers?

What’s Showrooming?

“In the last 6 to 12 months, who has

showroomed?”

Should they Keep Price Matching Policy Permanently?

Continues to build customer relationship and loyalty

Helps retailers maintain revenue (but not necessarily

profitability)

Enables retailer to capture value from customer visits

Benjy’s has no choicewithout price matching, customers will

defect to online retailers

Not a long-term solution
Devalues the brand and shopping experience
Does not address threat of online retailers
Hard to maintain because of cost differential between brick and- mortar retailers (primarily labor and real estate) versus online retailers

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MMPIS

54

Decoupling and Recoupling the store

Decoupling and Recoupling the store 2/28/2018 MMPIS 55

What is the likely outcome of your plan with

respect to revenues and costs?

With respect to profits?

How will this affect the brand?

How do you think key partners will react?

What are the implications for recruiting and training showroom personnel?

How might Jenson have used the experience

of these advisers to approach Benjy’s dilemma

differently?”

Best Buy- Lessons

Best Buy was under immense pressure in 2014-15 as online

shopping became more popular, particularly among millennial

customers

How disruptive forces can threaten established ones?

Leveraging physical resources and create an Omni channel

experience

2017 BestBuy’s geek Squad service Vs Amazon’s “smart home services store”

May also start a Uber like aggregator store for contractors

No privileged assets lasts forever

BestBuy or conventional retailers need to match Amazon’s innovation spree

How to use decoupling to disrupt

markets? (Teixeira and Jamieson,2014)

Should owning a product and using go

together?

BirchBox

Rent The Runway

Dollar Shave Club

Turo (RelayRides)

Borrow My Doggy

Rise of Sharing economy

Sharing and experiencing, not “owning”

Access based consumption

Peer to peer markets

Collaborative consumption

Integrated Marketing Communication &Promotion Mix

Ogilvy on Advertising ,David Ogilvy

Confessions of an Advertising Man ,David Ogilvy and Alan Parker,

southbank publishing

A Double Life ,Alyquee Padamsee,penguin

Advertising Age

Understanding Digital Marketing:Marketing strategies for

engaging digital generation

, Calvin Jones and Dalmian Ryan,Kogan page

Google Analytics

One Click .Jeff Bezos and the Rise of Amazon.com,Richard

Brandt,Portfolio trade

Marketing communications

Inform/persuade/remind

3 hit theory

Promotion mix/Marketing communications Tools Advertising/Sales promotion/events and exposure/

Publicity &PR/Direct and Interactive marketing and or

ONLINE (All the Digital stuff)

Word-of mouth/Personal selling

2/28/2018 MMPIS 65

Source:chlorophyl brand consulting website

Source:chlorophyl brand consulting website 2/28/2018 MMPIS 66

Source:chlorophyl brand consulting website

Source:chlorophyl brand consulting website 2/28/2018 MMPIS 67

Source:chlorophyl brand consulting website

Source:chlorophyl brand consulting website 2/28/2018 MMPIS 68

Source:chlorophyl brand consulting website

Source:chlorophyl brand consulting website 2/28/2018 MMPIS 69

Communication Process Model

Wilbur Schramm (1954)

Communication Process Model  Wilbur Schramm (1954)  Selective attention/distortion/retention 2/28/2018 MMPIS 70

Selective attention/distortion/retention

Steps in designing effective communication

Identify target audience

Determine objectives

Design communication

Message content /structure

Select channels

Personal /non personal (media)

Opinion leaders

Establish budgets

Affordable/% of sales/competitive parity/objective and task

Decide on media mix

Measure results /manage IMC

Response Hierarchy Models

Response Hierarchy Models Copyright © 2009 Pearson Education, Inc. Publishing as MMPIS Prentice Hall 2/28/2018 17-72

Copyright © 2009 Pearson Education, Inc. Publishing asMMPISPrentice Hall

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Top agencies

O&M

Mudra

JWT

McCann Erickson

Lowe Lintas

Leo Burnet

Dentsu

Rediffusion Y &R

Contract

RK Swamy /BBDO

Grey

Madison

P&G, VW

WPP is world’s largest agency-Grey, Burson-Marsteller, Hill & Knowlton, JWT, Ogilvy Group, TNS, Young & Rubicam and Cohn & Wolfe

Omnicom BBDO ,DDB,TBWA world wide,Mudra,Tribal DDB

Publicis group - Leo Burnet ,Sachi and Sachi

Interpublic group - McCann Worldgroup, Lowe and Partners, and DraftFCB

Dentsu

Type of ad agencies

Full service

Creative agencies

Specialized agencies

In -house agencies

Digital agencies (Interactive, SEO, Social media etc)

Fns

1.Creative Generate creative ideas and generate actual ads from brief

Creative director, copy writer, art directors --

2.Account Services - Account manager, exec 3.Media buying Media, Planning, buying, media research 4.Production-Producers or content architects coordinates with external vendors (Photographers, TVC cinematographers, directors ) 5. Consumer research /Insights /Branding (optional)

Advertising

5 M’s of Advertising

Mission

Sales goals /ad objectives

Informative/Persuasive/Reminder/Reinforcement

Message

Rational appeal/emotional appeal

Central and peripheral route

Structure /format/source

generation-evaluation and selection-execution-

Media

 

Reach , frequency,I mpact- types -vehicles

Money

 

Stages in PLC/Mrkt share/frequency/

Measurement

Communications impact /sales impact

Developing an Ad campaign:

1)Message generation and evaluation2)creative development and execution3)legal and social aspects

David Ogilvy Father of Modern advertising (Rational appeal/central route to persuasion)

Amul the longest running campaign theme in Indian ad world-peripheral route

Amul – the longest running campaign theme in Indian ad world-peripheral route 2/28/2018 MMPIS 78
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AD- Message and Media

Creative Brief:

Positioning statement

Key message

Target market

Objectives

Key brand benefit/Brand promises/

Media/back ground/

Media Selection

Reach/ Frequency/Impact

Types: TV/PRINT/INTERNET/MOBILE/ OUT DOOR /RADIO/TRANSIT/YELLOW PAGES/BROCHURES/NEWS LETTERS/MOBILE PHONE

Selection : Target audience and media habits/product and message chs/cost

Media schedule: Continuity/concentration/pulsing / flighting

Measures of audience size: Circulation/Audience/effective audience/effective-ad exposed audience

timing

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TAM (Television audience measurement)

(source:TAM website)

A joint venture between Ac Nielsen and Kantar market research

ISA (Indian Society of Advertisers), IBF (Indian Broadcast Foundation) and AAAI (Advertising Agencies Association of India)

Provide data to Advertisers & Marketers, Media Owners, Media Agencies and the Academia.

TAM runs the central, industry authorized, TV Viewership cell for the media industry.

TAM India’s panel is among the top 5 in the world with the largest sample size comprising of 36000+ respondents/individuals across 225 cities and towns covered by 9650 peoplemeters in TV homes of Class I towns (all towns and cities with a population of 1 Lac+) and Semi Rural Towns (Less than 1 Lac population) from the state of Maharashtra, Gujarat, MP, PHCHP, Rajasthan & UP

Calculation of Reach

Universe: 10 individuals. For a single episode of prgrm:

if out of the above 10 people 6 saw atleast 1 minute of the

Reach:6 out of 10 Therefore, reach = 60%

programme

then,

Gross Reach = Summation of all audiences who have been exposed to the vehicle

Week 1 : 1000,Week 2 : 2000,Week 3 : 1500,Week 4 : 1200

Hence, Gross Reach = ?

1000+2000+1500+1200=5700

TAM Media X press and ,X Pert Optimizer

Measurement

Evaluating Ad effectiveness:

Communications effect research/consumer feed back/lab tests/

Sales effect research

Sales impact of ads:share of expenditure/voice/market

Sales promotion tactics:

Consumer directed/Trade directed

Customer Experience Management

Communications/Identity/Product presence/Co- branding/Environment/Internet/Social media and online communities

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Impressions = OTS= Exposure

Impression= Reach

X Average Frequency

Gross Rating Points (GRP) % =Reach (%) x Avg Frequency (#)

GRP (%)

= Impression (#)/Defined Population (#)

Target Rating points = Impression/Target

Cost per Thousand Impression (CPM)= Ad cost/Impression generated

Share of Voice (%) = Brand advertising (Rs)/Total market

advertising (rs)

• #SingleAsAPringle • Pringle’s Latest Digital campaign • Reach 7.5 million • 300 mn online

#SingleAsAPringle

Pringle’s Latest Digital

campaign

Reach 7.5 million

300 mn online impressions

40,000 conversations

2017-18’s Popular Brand films/ads

1. United Colours of Bennetton’s “Equal Halves “

2. Amazon’s “ApniDukaan

3. FastTrack’s “Gear Up For some Action”

4.Sweden on AirBnB

5. Vodafones LookUp

#UnitedbyHalf

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AD ethics surrogate ads?

AD ethics – surrogate ads? 2/28/2018 MMPIS 91

Shockvertising”-UCB a pioneer of sorts

“ Shockvertising” -UCB a pioneer of sorts 2/28/2018 MMPIS 92
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Public Relations

Press relations/Product publicity/Corporate communications

Lobbying/Counseling

Assist in new product launches

Repositioning a mature product

Building interest in a product category/defend image realted issues

Tools:

Publications

Events

Sponsorships

News

Speeches

Public Service Activities

Identity Media

Sales promotion

Incentive type promotions to attract new triers,to reward loyal customers and to increase repurchase rate of occasional users

Often attract brand switchers

A short measure to promote sales: yields faster response than adverting

May not be capable of deepening brand loyalty as advtsng does

Consumer promotion Vs trade promotion

Consumer promotion

Samples -Coupons- Cash refunds-price packs

Premiums(gifts)-prizes (contests,sweepstakes)-free trials-patronage awards- warranties-cross promotion-PoP displays -Demos

Trade promotion

Price off-allowance-free goods- trade shows-sales contests-specialty ads

Personal selling principles /process

Personal selling principles /process  As customer problem solving- customer oriented approach  Mere order taking

As customer problem solving- customer oriented approach

Mere order taking sales

approach

Presentation AIDA/FABV apch

Canned apch-formulated apch-

need satisfaction apch

Psychological resistance/logical resistance

Art and Science of negotiation Howard Raiffa (1982)-negotiation

strategy

Digital Marketing (Source: HBR)

Digital Marketing (Source: HBR) 2/28/2018 MMPIS 97

Role of digital channels in Purchasing Decision

Role of digital channels in Purchasing Decision 2/28/2018 MMPIS 98

Digital marketing (Online /Mobile /Social media )

Owned media - reach beyond existing Web sites to create digital touch

points

Earned media - learn how to listen and respond to stakeholders

Paid media - should serve as a catalyst to drive customer engagement

Web 3.0

content

-user generated

Data base marketing /Data

mining

Search marketing

Display ads

Experiential marketing

Digital Marketing

Display Advertising

Organic search

Search Engine Marketing

Social Media Marketing

Mobile marketing

Search Engine marketing

SEM (paid search vs SEO organic based on Page Rank algorithm)

SEO has a long gestation period - SEM for immediate results

Google AdWords - cost per click (keywords, locations, budgets, ad copies) for Google and partner sites

Based on Ad Rank for keywords in backend (auction based on bidding)

Ad rank = CPC X Quality score(* determined by Google)

Google network (large group of websites and other online products such

as e-mail programs and blogs that have partnered with Google to display Ad words ads)

Search Retargetting vs Site retargetting

Which Key Words to bid?

How much to bid

Budget

CTR

Prepare Search Ads

Landing Pages

Monitoring-Scripts and

Ad Word Planner

“Cheap hotels”

“Affordable hotels”

“Budget hotels”

Misspellings and Typos

Negative Keywords

Branded key Words

Generic keywords

“Goa Hotels”

Content buying Vs audience buying

RTB (Real Time Bidding)

ROS (run of site) AD Inventory

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Search Ad Profit

= (Impressions x CTRx Conversion Rate x

Margin)- Search Ad Cost

Display advertising

Consists of banner ads, Text ads, Image ads and videos

Ad inventory purchase model

Fixed cost

CPM Cost per Mille( per 1,000 impressions)

Pay for number of times ads are loaded, ads are brought in lots of 1,000 impressions wherein each impression implies loading one Ad on web page

CPC Cost per click or PPC pay per click

Advertisers pay website only when users click on their Ad

CPL- cost per lead

Ad effectiveness in getting consumer data which is a”lead”

Cost per action, acquisition or Pay per performance(CPA,PPF)

Pays only when customers perform a pre-decided action (eg:sign up by clicking on Ad)

Cost per conversion (CPC)= Total cost/No of conversion (leads/ sale)

CPI Cost per Install

Tools used by Digital media planners

Google anlytics (free),Target Group Index (TGI)by WPP consumer behaviour

data ,Google ad planner- digital media consumption trends, com Score reach traffic -time spent -Ad servers campagin management

Third party ad servers like Media mind /Google Double click can serve ads across multiple websites

Rich media vs Std display ad

Interactive vs Click through

Dwell time

Valid metric for rich media

Road block ( eg: home page takeover for a specific time) lead to higher Share of

Voice

-- Hour based pricing -per day pricing eg :Mahindra’s 9 hr block

sponsorship model

E- mail ads

Fixed, Cost per mailer, Cost per open-up, CPL

Unduplicated audience reach

com Score’s tool to find out Unique visitors

measurement tool

but no cross media

Ad Networks

- aggregates the supply of ad spaces from variety of publishers and match it with

advertiser’s demand

- Use proprietary algorithms to help clients optimally place ads on various networks

- More control over campaigns

- Eg: vCommission, iCubes Wire, Optimize Google AdSense, InMobi

Ad Exchanges

Automate matching between

advertisers and publishers using

a real time auction process

Decide the placement and pricing of ads using the supply and demand of ad landscape

Based on bidding, less transparency and control

Demand side platforms

Supply side platforms

Eg: Rubicon project, Google AdWords

500 mn users- data on purchase behaviour, interest • #Freecharge • #Samsung (e.g. age of

500 mn users- data on purchase

behaviour, interest

#Freecharge

#Samsung (e.g. age of

device)

Source: https://www.fancs.com/en/service/service2 2/28/2018 MMPIS 113
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Contextual ads

Retargetting(Stalking?)

Morphing Display (cognitive

style and history- Urban et al., 2012)

Data in the next two slides from (Urban et al., 2012,

Marketing Science )

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Dynamics- Delayed Impact of Advertising

Zero Moment of Truth (Google)

Dynamic effects were more for Search ads than display ads

Heat map of Auto search ads (Next slide)

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Mobile marketing

Native/Hybrid/Mobile web apps

Mobile ad network ( AdMob Google, Google Ad sense for mobile)

Generic App for brands as longterm strategy vs app for a campaign

Mobile sites

Voice Ad campaigns

QR codes

Integrate TV ads with mobile with a toll free number (eg:

Quicker)

CTR (click through rate ) of mobile ads are higher 0.73 compared to CTR of banner ad .10 or rich media.14

Precise (granular ) targetting: Handset type OS -time - averge mobile usage- ,location etc

High Opportunity to see (OTC)-

User involvement is high

Suitability of visually rich content for

mobile (Source: HBR)

Suitability of visually rich content for mobile (Source: HBR) 2/28/2018 MMPIS 125

Synergy Between Offline and Online

campaigns

Coke’s Hong Kong experiment

Consumer product companies should know more about the offline/retail sales impact of

online ads

2/28/2018 MMPIS 127

Virtual grocery store Tesco

Virtual grocery store – Tesco 2/28/2018 MMPIS 128

Inbound Marketing

Driving Forces

The Diminished influence of Advertising

Rise of Consumer Search

“Irrelevant or intrusive ads “

A way to engage consumers by creating content including blogs, podcasts, whitepapers and Search Engine Optimization (SEO) so that a brand is found when consumers search for information

How do consumers find me?

What content should I

create to attract consumers?

How do I optimize my

website /platform for

engagement?

should I create to attract consumers? • How do I optimize my website /platform for engagement?

Social Media

“A brand is no longer what we tell customer it

is- it is what consumer tells each other it is”

Scott Cook, Co-Founder Intuit

20- 50 % of all purchases are primarily driven by W-o-M

recommendations (McKinsey Consulting) Research also shows that a person is three times more to adopt a mobile app if a friend adopts it

Probability of defection to another networks increase by

80 % if friends defect

Conversations on social media helps

Understand customers

Brand perceptions

Sentiment analysis and text

mining

Satisfaction & Future behaviour

Each additional Star on Trip advisor helped Hotels increase bookings by 8%

#Unitedbreaks Guitars

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Buzzmarketing (Mark Hughes)

1. The taboo

2. The unusual

3. The outrageous

4. The hilarious

5. The remarkable

6. The secrets

Brand association map using social

conversion data- (Source :Nielsen)

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Stage 1:

Without objective

Stage 2:

Tracking brand mentions

Stage 3:

Identifying market risks and opportunities

Stage 4:

Improving campaign efficiency

Stage 5:

Measuring customer satisfaction

Stage 6:

Responding to customer inquiry

Stage 7:

Better understanding of customers

Stage 8:

Being proactive and anticipating customer demands

Social media objectives

Monitor what is being said about the brand. Develop Listen and Learn a listening strategy.
Monitor what is being said about the brand. Develop
Listen and Learn
a listening strategy.
Build relationships
and awareness
Open dialogues with stakeholders. Answer customer
questions candidly.
Promote products
Get customers talking about products and services.
and services
Manage your
reputation
Respond to comments and criticisms. Participate in
forums and discussions.
Improve
customer service
Seek out displeased customers and engage them
directly to solve issues.

Categories of users

Creators

Categories of users Creators Critics Collectors Joiners Spectators Inactives 2/28/2018 MMPIS 142

Critics

Categories of users Creators Critics Collectors Joiners Spectators Inactives 2/28/2018 MMPIS 142
Categories of users Creators Critics Collectors Joiners Spectators Inactives 2/28/2018 MMPIS 142
Collectors
Collectors

Joiners

Categories of users Creators Critics Collectors Joiners Spectators Inactives 2/28/2018 MMPIS 142

Spectators

Categories of users Creators Critics Collectors Joiners Spectators Inactives 2/28/2018 MMPIS 142

Inactives

Categories of users Creators Critics Collectors Joiners Spectators Inactives 2/28/2018 MMPIS 142

Tools

Blogs
Blogs
Microblogs
Microblogs
Social Networks
Social Networks
Media Sharing Sites
Media Sharing Sites
Social News Sites Location-Based Social Networking Sites Review Sites Virtual Worlds and Online Gaming
Social News Sites
Location-Based Social
Networking Sites
Review Sites
Virtual Worlds and Online
Gaming

Why

Extrinsic motivations

Incentives and rewards

Intrinsic motivations

Social status- esteem- expert status

Opinion leadership Trip advisor

Drive intrinsic motivations to share