imc to emerging markets

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Journal of integrated marketing communications Integrating Integrity into IMC lynn upshaw Generations of Consumers and the Consumer Generated pradeep kumar, michelle hsiao & barry chiu Unauthorized Verses chris barrows Using Events to Drive an Integrated Marketing Model mary fehrnstrom & david m. rich Adapting IMC to Emerging Markets: Importance of Cultural Values in the Indian Context s. ramesh kumar Beyond the Last Click: Measuring ROI and Consumer Engagement with Clickstream Analysis megan halscheid, micheline sabatté & sejal sura The Next Generation of the IMC Database: Confessions of a Believer chuck sharp B2B and B2C Marketing: Organizing to Maximize Brand Value wendy c. wong Heavy Buyers: Are They Even More Important Than Generally Thought? deb rapacz & martin reilly 2009 Inventing the Future, Honoring the Past

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Page 1: IMC to Emerging Markets

Journal of integrated marketing communications

Integrating Integrity into IMC lynn upshaw

Generations of Consumers and the Consumer Generated pradeep kumar, michelle hsiao & barry chiu

Unauthorized Verses chris barrows

Using Events to Drive an Integrated Marketing Model mary fehrnstrom & david m. rich

Adapting IMC to Emerging Markets: Importance of Cultural Values in the Indian Context s. ramesh kumar

Beyond the Last Click: Measuring ROI and Consumer Engagement with Clickstream Analysis megan halscheid, micheline sabatté & sejal sura

The Next Generation of the IMC Database: Confessions of a Believer chuck sharp

B2B and B2C Marketing: Organizing to Maximize Brand Value wendy c. wong

Heavy Buyers: Are They Even More Important Than Generally Thought? deb rapacz & martin reilly

2009

Inventing the Future, Honoring the Past

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38 Journal of Integrated Marketing Communications 2009 38 Journal of Integrated Marketing Communications 2009

adapting imc to emerging marketS: importance of cultural valueS in the indian context

by S. Ramesh Kumar

abStractWith 205.9 million households, India has become an economic powerhouse and captured the marketing attention of multinational corporations around the world. However, the adoption of IMC has been hindered in this emerging market because of the complexities of targeting communications appropriately to India’s diverse set of cultural values. The brands that have succeeded ensure their advertisements are relevant to both the tradition-al and modern Indian lifestyles without alienating one for the sake of the other.

Professor Geert Hofstede, influential Dutch writer and professor emeritus from Maastricht University defined culture as “the mental pro-gramming of people in an environment.” He expressed culture as a combination of symbols, heroes, rituals and values. This combination of factors is useful in evaluating cross-cultural messaging. As an emerging economy, with per capita incomes only seven percent of those in emerged economies, India’s complex cultural and geographic factors challenge the integrated marketing communications (IMC) framework. India reflects its cultural diversity in its twenty-seven states and emerging subcultures. Young, upwardly-mobile Indians, those under 21 years -old, comprise 40 percent of India’s consumer base. The explosion of mass media and the aspi-rations of young consumers operate against the backdrop of strong traditional cultures.

Advertisements have shown great innova-

tion in communicating brand messaging within traditional and contemporary cultural dimen-sions. In addition to cultural overtones finding a place in advertising, some product categories are culturally oriented. Advertising messages within such product categories require cultural and customer-centric considerations. As the following analysis of mainstream advertising campaigns will demonstrate, IMC messaging must carefully negotiate the role of tradition and modernity in brand messages.

The eclectic Indian contextIndia is a country of contrasts, segmented by

lifestyle, socio-economic structure, geography and traditionalism. Nearly 74 percent of Indi-ans live in villages. Villages are a broad category of community encompassing highly diverse population segments.

Members of each lifestyle group purchase

S. Ramesh Kumar

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within similar product categories. However, these consumers also exhibit important cultural differences within socio-economic peer groups (see Figure 1). The segmentation criterion above does not account for different subcul-tures, as these households are spread through-out the country in both metropolitan and rural areas. Within this geographic segmentation, language variations take on a great deal of importance. Hindi is the national language of India, yet many upwardly mobile consum-ers speak Hindi and English. Some areas of the country speak no Hindi and advertising must employ local dialects in all branding activities. Thus, a successful national advertis-ing campaign requires multiple translations and

region-specific content, which complicates the integration process.

Cultural values in the Indian contextRecent research published in the Autumn

2007 edition of The Marketing Review identi-fied relevant cultural values for marketing in India (see Figure 2). These values are catego-rized according to culturally-specific needs: al-legiance to traditionalism, a need for belonging and contemporary values that are more likely to embrace western culture, and the forces of globalization.

The ritual setting is the context portrayed by a brand’s communication and creates a specific

Number of households

Lifestyle Family Income per year ($US)

100.1 million Deprived Less than $1,969 per year91.3 million Aspirers $1,969 to $4,37610.9 million Seekers $4,376 to $10,9412.4 million Strivers $10,941 to $21,8821.2 million Global Indians Earn more than $21,882

Figure 1

TraditionalismNuclear Family Immediate family consisting of spouse and childrenUncertainty avoidance Choosing not to deal with the unfamiliarHonor Not over-spending to ensure no debt is incurredConservatism Not wanting to lead a fashionable lifestyleEthnocentrism Preference of one’s own culture over othersIndividualism Specific desire to project oneself as an individual personTime orientation Nostalgia for the past BelongingNeed for affiliation Sense of belonging with othersGroup emphasis Tendency to be in groups for both formal and informal gatheringsSocial orientation Choosing a lifestyle that reflects one’s personalityGifting trends Desire to give gifts on various social occasions

Contemporary ValuesAchievement-seeking Strong desire to be successfulProsperity-seeking Desire to acquire materialistic possessionsInnovation Desire to experiment with brands and productsUse of conspicuous Western symbols

Usage of Western brands and products

Celebrity orientation Influence by celebrities in purchase decisionsNeo-mindset orientation Desire to break conventions

Adapting IMC to Emerging Markets

Figure 2

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40 Journal of Integrated Marketing Communications 2009 40 Journal of Integrated Marketing Communications 2009

perception in the mind of the consumer. For example, the Titan watch is positioned as a gift in several situations involving relationships of romance and warmth. The “gift-giving ritual setting” creates the “gifting-brand” association. The brand advertisements chosen have cultural values that are dominant in the marketing communication context.

The ritual setting also differentiates which cultural values are being portrayed in the advertise-ment. There are categories where utilitarianism is not very explicit. Such brands are driven by he-donic motivation rather than utilitarianism. The ritual setting may be more pronounced to project the cultural values in the advertisement.

Analysis of advertisements in the Indian context: Frequently used product categories

Analysis of advertisements in fast-moving consumer goods (FMCG) was made using the values identified in Figures 3 and 4 and the concept of ritual setting. When the product is used in a specific setting, the consumer derives meaning from the communication. These settings can vary

from brand to brand but must be formulated based on the brand’s target segment.

An IMC strategy should project a consistent image of the brand through synergized communication in various media channels. This is more important in the digital era when con-nectivity, convergence and social networking impact consum-ers. The challenge for the IMC strategy is to have the right balance, not only with regard to cultural values and ritual set-ting, but also how they are conveyed across channels to convey consistent and coherent brand image over a period of time.

Cultural values are important brand differentiators in emerging markets with heterogeneous consumer groups. The

artful combination of cultural values and IMC tactics will deliver a pioneering marketing exercise for any brand entering an emerging market.

Advertisement analysisFair & Lovely (bleaching cream)

This brand from Unilever India has an advertisement that portrays the desire of a middle-class girl to become a cricket commentator. The girl eventually succeeds, making her family happy. Success is made possible through use of Fair & Lovely which contributes to her self-confidence. The girl becomes a leading cricket commentator, winning the admiration of a well-known cricket

Values Identified Ritual Setting

Family bonding•

Individualism•

Respect for work•

Self esteem•

Achievement seeking•

Cricket•

Middle-class dreams•

Family happiness•

Western ideal of beauty•

Figure 3

S. Ramesh Kumar

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celebrity. Incidentally, cricket commentary, until recently, has been an exclusively male activity. Awareness of cultural values, particularly the association of achievement by lightening one’s skin, is a compelling message that foreign ad-vertisers might avoid. This is one manifestation of India’s aspirational and socio-demographic values.

Sunrise (coffee) This Nestle brand aims advertisements at

young, urban married couples. The advertise-ment shows a young couple shopping in a de-partment store when the husband gets a phone call and informs his wife that his elderly uncle and aunt, who were unable to attend their wed-ding, have come to their home to visit.

In India, it is customary for the wife to treat relatives of her husband with reverence. In the first scene, the wife wears a western outfit. She

nervously signals the husband to receive the traditional, elderly couple at their home and climbs through the window of the

house to be unseen. She quickly changes into traditionally ethnic dress and make-up and presents herself to the elderly couple. She serves coffee to her elders, which is appreciated.

The wife then obtains the blessings of the elderly couple by prostrating before them. Re-specting elders and getting their blessings after falling at their feet is a strong part of Indian tradition. The ritual of preparing good coffee is also associated with elderly housewives and traditional cooking. Stereotypes of the elderly have become more pronounced in the urban context, especially due to the nuclear family structure in cities where both the husband and wife work outside the home.

This advertisement connects the role that coffee plays in contemporary rituals where an independent, modern woman satisfies her personal need for independence as well as her

Fair & Lovely, the facial fairness cream, inspires young Indian women to enhance their lifestyle through its proposition of “confidence.”

Values Identified Ritual Setting

Nominalism•

Conservatism•

Personal grooming•

Social orientation•

New mindset•

Urban•

Modern couple•

Traditional apparel•

Western apparel•

Preparation of traditional coffee•

Figure 4

Adapting IMC to Emerging Markets

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S. Ramesh Kumar

family’s resistance to contemporary norms.

Inferences with regard to cultural values in advertisements

In an emerging market like India, an IMC strategy should be formulated taking into consideration the values associated with the culture. The analysis of advertisements shows that there are specific cultural values that most of the advertisements use. These values may be called “cultural interface values” as they serve to integrate marketing communication with the prevalent culture.

As these advertisements suggest, Indian so-ciety is primarily divided by the dueling values of traditionalism and modernity. A successful campaign will appease both lifestyles without alienating one for the sake of the other.

References

1. Bijarpurkar, R. We are Like That Only. India: Penguin Books, 2007.

2. de Mooji, M. Global Marketing and Advertis-ing. Sage Publications, 1997.

3. Kumar, R.S., Guruvayurappan, N. & Ba-nerjee, M. “Cultural Values and Branding in an Emerging Market—The Indian Context,” The Marketing Review, 7:247-272, 2007.

4. Mahajan, V. & Banga, K. The 86% Solution: How to Succeed in the Biggest Market Opportu-nity of the 21st Century. Pearson Power, 2006.

5. Prahalad, C.K. “Delivering Value through Unique Experience,” Times Business, 30 Apr. 2008.

6. Rook, D.W. “The Ritual Dimension of Con-sumer Behavior,” Journal of Consumer Research 12: 251-264, 1985.

Dr. S. Ramesh Kumar is a professor at the Indian Institute of Management in Bangalore, India. He has a mix of industrial and teaching experience of about 27 years. He was awarded ICFAI Best Teacher Award by the Associa-tion for Indian Management Schools (AIMS). He has published/co-authored papers in many journals of repute and these include Journal of Customer Behavior, Journal of Brand Manage-ment, The Marketing Review and Ivey Business Journal, besides presenting papers in interna-tional academic conferences (including confer-ences of the American Marketing Association). He has published four books on marketing/consumer behavior in the Indian context. He can be reached at [email protected].