Marketing

Management:Programmes
&Implementation

2/28/2018 MMPIS 1
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 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

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 Channel Strength –HUL (Source:Corporate
presentation)

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 Online retailing - distribution and Logistics
(source: KPMG report 2015 )

• First mile Logistics • Processing and sorting

– From seller to fulfillment
centre without packaging
/labelling
– seller to mother warehouse
fully packed
• Fulfillment
– Pick list –packing – mother
warehouse
– 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

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 (source: KPMG report 2015 )

2/28/2018 MMPIS 33
 Models

• Inventory led • Marketplace

• Fulfilled • 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

2/28/2018 MMPIS 46
 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

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 Omni Channel retailing

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• Omni-channel Retailing is a multi channel
approach which provides an integrated and
seamless experience on all formats.

• Tesco https://youtu.be/vL2ujjLKx2s
• https://youtu.be/DKv9P37NIjI
• https://youtu.be/TbEznWDvArY
• https://youtu.be/7JItU05mjCk

2/28/2018 MMPIS 50
 Digitally immersive flagship store of Van Heusen

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 Can You Win Back Online shoppers?
 What’s Showrooming?
 “In the last 6 to 12 months, who has
showroomed?”

2/28/2018 MMPIS 53
 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 choice—without 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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 Decoupling and Recoupling the store

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 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?

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• How might Jenson have used the experience
of these advisers to approach Benjy’s dilemma
differently?”

2/28/2018 MMPIS 57
 Best Buy- Lessons
• Best Buy was under immense pressure in 2014-15 as online
shopping became more popular, particularly among millennial
customers

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• 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

2/28/2018 MMPIS 59
 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

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 Rise of Sharing economy
• Sharing and experiencing, not “owning”
• Access based consumption
• Peer –to –peer markets
• Collaborative consumption

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Integrated Marketing Communication &Promotion Mix

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• 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

2/28/2018 MMPIS 63
 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

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 Source:chlorophyl brand consulting website

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 Source:chlorophyl brand consulting website

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 Source:chlorophyl brand consulting website

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 Source:chlorophyl brand consulting website

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 Communication Process Model

 Wilbur Schramm (1954)

 Selective attention/distortion/retention

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 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

2/28/2018 MMPIS 71
 Response Hierarchy Models

Copyright © 2009 Pearson Education, Inc. Publishing asMMPIS

2/28/2018 Prentice Hall 17-72 72
 Top agencies
• O&M
• Mudra
• JWT
• McCann Erickson
• Lowe Lintas
• Leo Burnet
• Dentsu
• Rediffusion Y &R
• Contract
• RK Swamy /BBDO
• Grey P&G, VW
• Madison

2/28/2018 MMPIS 73
• 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

2/28/2018 MMPIS 74
 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)

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 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

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

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

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

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 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)

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 • #SingleAsAPringle
• Pringle’s Latest Digital
campaign

• Reach 7.5 million

• 300 mn online impressions
• 40,000 conversations

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 2017-18’s Popular Brand films/ads

• 1. United Colours of #UnitedbyHalf

Bennetton’s “Equal Halves “
• 2. Amazon’s “ApniDukaan”
• 3. FastTrack’s “Gear Up For
some Action”
• 4.Sweden on AirBnB
• 5. Vodafones “LookUp”

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 AD ethics – surrogate ads?

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 “Shockvertising”-UCB a pioneer of sorts

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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

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 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

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 Personal selling principles /process

 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

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 Digital Marketing (Source: HBR)

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 Role of digital channels in Purchasing Decision

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 Digital marketing (Online /Mobile /Social media )

 Owned media - reach  Web 3.0 -user generated

beyond existing Web sites content
to create digital touch
points  Data base marketing /Data
mining
 Earned media - learn how  Search marketing
to listen and respond to
stakeholders  Display ads
 Experiential marketing
 Paid media - should serve
as a catalyst to drive
customer engagement

2/28/2018 MMPIS 99
 Digital Marketing

• Display Advertising
• Organic search
• Search Engine Marketing
• Social Media Marketing
• Mobile marketing

2/28/2018 MMPIS 100

 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

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• Which Key Words to bid?
• How much to bid
• Budget
• CTR
• Prepare Search Ads
• Landing Pages
• Monitoring-Scripts and
Ad Word Planner
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• “Cheap hotels”
• “Affordable hotels”
• “Budget hotels”
• Misspellings and Typos
• Negative Keywords
• Branded key Words
• Generic keywords
• “Goa Hotels”
MMPIS 102
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• 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

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 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

2/28/2018 MMPIS 109

• 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 but no cross media
measurement tool

2/28/2018 MMPIS 110

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
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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
MMPIS 111
 500 mn users- data on purchase
behaviour, interest
• #Freecharge
• #Samsung (e.g. age of
device)

2/28/2018 MMPIS 112

 Source: https://www.fancs.com/en/service/service2

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• Contextual ads
• Retargetting(Stalking?)
• Morphing Display (cognitive
style and history- Urban et
al., 2012)
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• 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

2/28/2018 MMPIS 124

 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 126

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 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

2/28/2018 MMPIS 129

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

2/28/2018 MMPIS 130

 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

2/28/2018 MMPIS 131

 Conversations on social media helps

• Understand customers • #Unitedbreaks Guitars

• Brand perceptions
– Sentiment analysis and text
mining
• Satisfaction & Future
behaviour
– Each additional Star on Trip
advisor helped Hotels
increase bookings by 8%

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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

2/28/2018 MMPIS 137

 Brand association map using social
conversion data- (Source :Nielsen)

2/28/2018 MMPIS 138

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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

Being proactive and anticipating

Stage 8:
customer demands

2/28/2018 MMPIS 140

 Social media objectives
Monitor what is being said about the brand. Develop
Listen and Learn
a listening strategy.

Build relationships Open dialogues with stakeholders. Answer customer

and awareness questions candidly.

Promote products Get customers talking about products and services.

and services

Manage your Respond to comments and criticisms. Participate in

reputation forums and discussions.

Improve Seek out displeased customers and engage them

customer service directly to solve issues.

2/28/2018 MMPIS 141

 Categories of users
Creators

Critics

Collectors

Joiners

Spectators

Inactives

2/28/2018 MMPIS 142

 Tools
Blogs Social News Sites
Location-Based Social
Microblogs Networking Sites

Social Networks Review Sites

Virtual Worlds and Online
Media Sharing Sites Gaming

2/28/2018 MMPIS 143

 Why
• Extrinsic motivations
– Incentives and rewards
• Intrinsic motivations
– Social status- esteem- expert status
– Opinion leadership – Trip advisor

– Drive intrinsic motivations to share

2/28/2018 MMPIS 144