Institue For Technology & Management

Marketing Management

Year: (20011– 2013) Term : V

COURSE TITLE : Integrated Marketing Communication

FACULTY : Prof. Namratha Suvarna

Course Code : 455Course Title : Integrated Marketing Communication No. of Credits : 2.5Contact Hours : 25 hrs

Objectives :

• To increase the students understanding of the fundamental concepts of integrated marketing communication and communication process. Become knowledgeable about the important issues in planning and evaluating integrated marketing communication. Apply the appropriate theories and tools to plan, develop, and evaluate integrated marketing communication. Construct a complete advertising campaign.

Contents:

• Evaluation of Broadcast, Print and Support Media

• Sales Promotion: Scope and Role, consumer - oriented and trade oriented sales promotion

• Public Relations, Publicity and Corporate Advertising

• Measuring the effectiveness of the Promotional programmes

• Evaluating the Social and Ethical aspects of Advertising and Promotion

• Regulation of Advertising and Promotion

PRESCRIBED TEXT BOOK :(PTBR)

1. Advertising and Promotion An IMC Perspective - George E. Belch & Michael E. Belch, Tata McGraw-Hill, New Delhi, 6th Edition, 2009.

ADDITIONAL TEXT BOOK :(ATBR)

2. Integrated Advertising,

Promotion & Marketing - Clow, Kenneth E, Baack, Donald, 2nd Edition, 2007, Prentice-Hall India.

OTHER REFERENCE BOOKS :

1. Advertising Management : Concepts - Mohan, Manendra, 1st Edition, 2007, Tata McGraw-Hill

2. Sales & Operations Planning - Wallace, Thomas. F, Stahl, Robert. A, 1st Edition, 2009, Shroff Publishers.

3. Advertising Management - Jethwaney, Jaishri, Jain, Shruti, 1st Edition, 2006, Oxford University Press.

4. Advertising Creativity - Marra, James. L, 1st Edition, 2002, Prentice-Hall India

5. Selling Blue Elephants : How tomake great product that peoplewant. - Moskowitz, Howard, Gofman, Alex,

1st Edition, 2007, Pearson Education India.6. Principles of Advertising :

Global Prospective - Lee, Monle, Jhonson, Carla, 2nd Edition, 2007, Viva Book Pvt. Ltd.

7. Promotion and Integrated

Marketing communication - Semenik Richard J, 2002, Singapore.

PEDAGOGY :

The course objectives be achieved by means of lectures, individual and group assignments, case discussion and presentations, group projects, marketing quiz, book reviews, press news discussion, articles on marketing in HBR (Harvard Business Review). For each session the topic

to be covered will be announced in advance it is essential that students too should come prepared for the class to discuss the material due for that session. The students will be notified for the dates of submission and presentation of assignments cases, and projects etc.

The breakup of internal evaluation may differ from class to class

CASE ANALYSIS :

This covers the analysis of the given cases. The same case will be given to all the group. Only one or two will be asked to make a presentation followed by the answering the questions by students and the faculty and expressing the view points of the groups.

SESSION-WISE COURSE OUTLINE :

T = Topic; C = Case/Exercise; R = Reading Material,

PTBR =Advertising and Promotion

An IMC Perspective : George E. Belch & Michael E. Belch, Tata McGraw-Hill, New Delhi, 6th Edition, 2009.

ATBR = Integrated Advertising, Promotion & Marketing : Clow, Kenneth E, Baack, Donald, 2nd

Edition, 2007, Prentice-Hall India.

Total Marks : 150

Internal Assessment : 60

External Assessment Marks : 90

(Internal Assessment will be based on the following Parameters.

Sr No Activity

1 Group Project

2 Role Play

3 Multiple Choice Question/ Objective Test

4 Final Presentation

5 Assignments/ News / Article Analysis

6 Case Presentation

Session 1, 2 & 3 T 1 : Evaluation of Broadcast, Print and Support Media

Article 1: Ad Trends for 2012

Article 2 : Ads on Digital Marketing

Article 3 : Advertisers: Learn to Love the DVR

ATBR Chapter 8 : Evaluation of Broadcast, Print and Support Media

PTBR Chapter 11,12,13 : Evaluation of Broadcast, Print and Support Media

Session 4 & 5 T 2: Sales Promotion: Scope and Role, consumer - oriented and trade oriented sales promotion

News Emerging Trends in Advertising

ATBR Chapter 9 & 10 : Trade Promotion; Consumer promotion

PTBR Chapter 15 : Sales Promotion

CS Case Study – 2: Nike-Maintaining a Promotional Edge

Session 6 & 7 T 3 : Public Relations, Publicity and Corporate Advertising

Article: 1 PR Persuasion

ATBR Chapter 12 : Public Relations

PTBR Chapter 16 : Public Relations, Publicity and Corporate Advertising

CS Case Study – 1 Indian Airlines change of identity to Indian

Assessment - 1 Objective Test

Session 8 T 4 : Measuring the effectiveness of the Promotional programmes

Article: 1 New Laws of the Jingle

CS Case Study: IBM Brand Equity Restoration and Advertising

Evolution

ATBR Chapter 15 :Evaluating an Integrated Marketing Programme

PTBR Chapter 18 : Measuring the effectiveness of the Promotional programmes

Visit Supermarket & make a list of Promotional tools u observe. Which do you think are effective and Why

Session 9 T 5 : Evaluating the Social and Ethical aspects of Advertising and Promotion

ARTICLE 1

Ethical Issues When Marketing To Children

PTBR Chapter 22 : Evaluating the Social and Ethical aspects of Advertising and Promotion

Assessment - 2

Session 10 ,11 T 6: Buyer Behavior Recap

Article: 1 Buyer Persona

ATBR Chapter 3

Session 12,13,15 T 7: Advertising Management

Article: 1 Selection of an advertising Agency

ATBR Chapter 5

Session 16,17,18 T 8: Advertising Design :Theory and Frameworks

Article: 1 Mean ends approach : people don’t buy features or benefits

ATBR Chapter 6

Session 19,20 T 9: Message Strategies and execution

Article: 13 Effective Advertising Message Strategies

ATBR Chapter 7

ASSIGNMENT

1. Peruse certain magazines that carry advocacy / issue advertisements endorsed by various companies. Describe the core competency of the company and the causes it is espousing and the possible reasons for it to be seen as a responsible corporate citizen.

2. Pick up Business journal/magazine/newspaper. Locate the ad agency reports. Identify the strategies that these agencies are employing at present. Analyse the information you have collected to write an exploratory note on the strategies being used by them.

3. Group Assignment Project

Identify an organisation/ad agency and find out their Integrated Marketing Communications Programme.

I) History

II) Vision/Mission

III) Organisation Goals

IV) Products/Services

V) Organisation Structure

VI) Type of Ad Agency

VII) Promotion Mix

VIII) Agency Compensation

IX) Clienteele

X) Responsibility for IMC

XI Current ads in all media

XII) Advertising Rates in media

XIII) Ratings of company/Agency

XIV) Future of all Media

Submit a report on this assignment on or before /11/12.

Group Presentations on /12/12.

As per the IMC campaign manual prepare a campaign plan for given brand (group project)

TOPIC 1

ARTICLE 1

http://online.wsj.com/article/SB10001424052970203899504577129021841047502.html

Other Ads Trends for 2012

Madison Avenue's New-Year Predictions Include Racier Content, Mobile a Go-Go, Apps Galore, Facebook Fatigue and More in Media & Marketing »

By SUZANNE VRANICA

Thanks to technology, what's old is new again. At least that's what advertising executives predict for 2012.

Television and magazines ads have been pronounced dead more than once on Madison Avenue, of course. But technology breathed new life into those mediums last year, with YouTube extending viewership for TV ads and the iPad making print ads sexy again.

Technology is expected to continue to invade and rejigger every aspect of advertising in the new year, according to ad executives.

Pronounced dead more than once, television and magazine ads got a new push last year with YouTube extending viewership for TV ads and the iPad making print ads sexy again. WSJ's Suzanne Vranica reports on digits what advertising executives predict for 2012.

"In 2012, advertising will be more than ever the intersection of technology and storytelling," says Christian Haas, executive creative director at Goodby Silverstein & Partners, a unit of Omnicom Group Inc. OMC +0.39%

Hints about what this future might look like have already begun to emerge. In a reimagining of sampling, one of the oldest forms of marketing, Kraft Foods Inc., KFT -1.09% for instance, is testing a vending machine that uses facial recognition technology—and a bit of humor—to dole out bites of its Jell-O dessert called Temptations. Targeted at adults, the Jell-O machine, equipped with an Intel camera, has a surprising message for kids who approach for a taste: "Sorry kid. You're too young to experience an indulgence like this. Please step away so the adults can get their free treat."

Even staid retail catalogs are getting a digital makeover, with Google GOOG -1.22% recently unveiling an app that aggregates dozens of the mailbox-clogging books, including ones for Pottery Barn and LL Bean.

Still, a flair for technology won't be enough to stand out amidst the stupefying ad clutter. To grab attention, some ad executives expect to see more comedy in the mix while others foresee an uptick in raunchier promotions, peppered with f-bombs.

What follows are some of Madison Avenue's predictions for 2012:

Couch-Potato Gatherings

New down loadable apps will turn TV watching into a virtual community event. "Apps like Get Glue invite viewers to check-in to a program and have conversations with others watching the same thing," says Daniel Khabie, chief executive officer of Digitaria, a digital-marketing firm owned by WPP PLC. WPPGY +0.10% "TV networks will pump it up because it encourages live watching and thus commercial watching."

Foul-Mouthed Ads

"Ads with f-bombs? Get used to it," says Glenn Cole, chief creative officer of 72 & Sunny, a unit if MDC Partners Inc. MDCA +2.98% "Major brands will start to take off the granny pants and create racier content that demands the attention and respect of younger audiences." Such content would be focused on the Web and certain cable-TV channels.

Getting to Know You

Along with small screens on store shelves flickering with product promotions, kiosk-like machines will offer personalized "product suggestions," says Michele Fabrizi, chief executive officer of MARC USA. "So if you want to buy the same shade of lipstick or even the same color of paint, it will be able to remind you what you purchased previously."

Facebook Fatigue

Ad executive forecasts include: Facebook follows Fonzie.

Facebook users now spend an average of six and a half hours a month on the social-networking site. But some ad executives expect the site's popularity to fade.

"Facebook finally jumps the shark," says Mr. Khabie of Digitaria, using a television-industry idiom that essentially means it's downhill from here.

"IPO + privacy issues + your grandma joining + one redesign too many + general social-network fatigue = Fonzie on water-skis," he says, referring to the rather-desperate "Happy Days" episode that gave rise to the expression "jumping the shark."

Blake Cahill, president of Banyan Branch, a social-media agency, anticipates that consumers will be driven away by an infiltration of ads as Facebook comes under growing pressure to make more money.

At the same time....

Websites Migrate

Fortune 500 companies will give up on stodgy corporate websites and move their "primary online identity to a social network—most likely Facebook," says Mr. Khabie of Digitaria.

More Chinese sponsors

"As China-based multinational companies look to further penetrate the U.S., sports marketing is increasingly becoming one of the channels they use to generate brand awareness," says Greg Luckman, global head of consulting for CAA Sports, a division of Creative Artists Agency.

The Miami Heat's recent sponsorship deal with Tsingtao, a Chinese beer company, is recent example of the trend.

Marketing 101: Create Jobs

Corporate America has been touting green products for ages now. In 2012, however, "jobs will be the new 'green,'" says Andrew Essex, chief executive officer of Droga5. "We'll see advertisers focused on what their brands are doing for the economy."

Starbucks Corp., SBUX -0.20% for example, recently rolled out "Jobs for USA," a program that has been collecting donations of $5 or more from store patrons to stimulate U.S. job growth through small-business loans and other efforts.

Made by You

Ordinary consumers have been enlisted over the past few years to fashion ads, company logos and product packaging. Next up: "Consumer-created brands," says Jon Bond, chief executive officer of Big Fuel Communications, a social-media agency owned by Publicis Groupe SA. "I can see a fashion company made up entirely of consumer-designed clothing, under a consumer-designed brand name and logo."

Put on a Happy Face

Staring into the face of another potentially dark financial year, some brands will shift to humor as an antidote, says Brian Terkelsen, president of a branded entertainment division at Publicis's Starcom MediaVest. "We'll see more comedy in ads and use of comedians," he says.

Mobile Madness

Mobile devices do the shopping.

Every year, "Black Friday" sends shoppers into an irrational tizzy. Now add two more days. "In 2012, 'Mobile Thursday' will join 'Black Friday' and 'Cyber Monday' as record shopping days,"

says Colin Kinsella, chief executive of Digitas North America, a digital-ad firm owned by Publicis. Mr. Kinsella is predicting that "the link between mobile and commercial will thicken" in 2012, which means more money for the mobile industry.

Adds Mr. Cole at 72 & Sunny: "Mobile devices are now the place where you can have your most meaningful, most valuable, and even most inspiring relationship with a brand."

ARTICLE : 3

http://hbr.org/2010/04/advertisers-learn-to-love-the-dvr/ar/1

Advertisers: Learn to Love the DVR

by Andrew O’Connell

In the age of digital video recorders, the 30-second TV spot is dead, right? Not necessarily. An ad can have a significant impact on viewers even while it’s whizzing by on fast-forward. And if they’ve seen it before at regular speed, the pixilated, hard-to-make-out commercial is every bit as effective as normal viewing.

“Advertisers that used DVR penetration as a reason to decrease TV budgets may have acted too quickly,” writes Erik du Plessis, the chairman of the consulting and research firm Millward Brown’s South Africa office and a visiting professor at the Copenhagen Business School. In an article in the Journal of Advertising Research, he takes issue with the premise that viewers’ increased DVR use diminishes the effectiveness of TV ads.

His study of 1,000 U.S. households, of which 400 had DVRs, showed no decrease in recall or in prompted recognition of commercials (two basic measures of ad effectiveness) among the DVR users. Du Plessis attributes the results to the fact that on most recent-model DVRs, “it is not easy to fast-forward through a commercial.” To skip an advertisement without going past it, a viewer has to pay close attention to it on the DVR.

Furthermore, when Millward Brown showed a theater full of volunteers some fast-forwarded ads, complete with static and other electronic interference, it found that people were able to mentally process the commercials. Recall was no worse than the overall average recall of TV ads. Most viewers who remembered the content of the speeded-up commercials reported having seen them before—evidence that’s consistent with other findings by the firm. (Recall was of course lower for ads the viewers hadn’t seen before.) To ensure that spots are seen at least once at regular speed, advertisers should consider placing them initially on programs likely to be watched as they’re broadcast, such as sports or news shows, du Plessis advises.

The recent proliferation of set-top boxes has dramatically increased the number of homes with DVRs: Some 30% of U.S. households had the technology when Nielsen did a survey in 2009. As

for how many ads get skipped by DVR users, one study estimates 68%. But therein lie opportunities, suggests Duke University’s Kenneth C. Wilbur in a Journal of Advertising article. As data accumulate on who skips what, advertisers can make better marketing decisions. If your target demo tends to be an ad watcher, you should pour more money into 30-second spots. If not, focus your ad buys elsewhere.

TV advertisers have been like spiders, Wilbur says, weaving webs and hoping bugs will fly into them. With DVRs giving viewers greater control, he advises advertisers to “behave more like bats: Use sonar to figure out where the bugs are, and go get them.”

TOPIC 2

NEWS

1. Emerging Trends in Advertising

– Minakshi Chauhan Asopa

In the present scenario, the advertising world is going through a dynamic phase due to change in economic set-up and cut-throat competition in the market. Creative advertising tools are being used to lure the customers, engage their minds, trigger their emotions, and change their perception. The advertising world is making efforts to exploit a creativity and harness innovative skills, in order to push customer for desired product or service leading to emergence of various new concepts and trends in advertising sector.

2. Present Scenario of Outdoor Advertising in India : New Emerging Trends

– C P Rashmi

Out-of-Home (OOH) advertising popularly known as outdoor advertising is propelling India. A study of the pattern and trends of OOH in India reveal that the first world countries dominate the minds of advertisers as usual. History reveals that all the paradigms are generally copied by the West. Outdoor advertising also follows a similar trend. This article cites various national and international case studies and analyzes how western ideas influence the creative minds of the Indian market.

3. RESEARCH

Addressable Advertising : Future of Television Advertisement

– Samiran Sur, Mrinalini Pandey

Traditional TV advertisers are facing challenges because of multi-platform distribution that fragments the target viewers. Advertisers cannot measure their RoI immediately and the amount of wastage ads is also unpredictable. Using Personal Video Recorder (PVR), viewers can skip ads in a simple way, which is also a threat to the advertising industry. Most of these deficiencies can be covered up by Internet Protocol Television (IPTV) through its inherent characteristics like addressability, interactivity and measurability.

4. RESEARCH

Conceptual Understanding of Electronic Advertising for Cause Related Marketing Campaigns in India

Cause Related Marketing is one of the most talked about concepts in marketing function. Though its implementation by Indian organizations is not noteworthy, organizations are looking forward to adopt this concept. This article mainly draws attention towards the usage of electronic advertising followed by different organizations for Cause Related Marketing campaigns.

5. CASE STUDY

Star Enters into a New Orbit…

– Rupali Pardasani

June 13, 2010, the Indian Television Industry witnessed a well-established brand, which is not only popular but also a market leader in the industry, making an attempt towards brand refresh to change and reflect fresh perspectives and new thinking. The much publicized Star Plus Awards ceremony was chosen as an occasion for the rebranding of Star Plus, where the new ruby Star logo was unveiled with the fresh tag line of “Rishta Wahi, Soch Nayi” and an exclusively composed signature tune.

*Refer mag in lib for full article

CS Case Study – 2: Nike-Maintaining a Promotional Edge

TOPIC 3

Article 1

Public relations is a profession, craft, or job category—take your pick—based on applying factual information and opinion to persuade people toward a particular perspective.

Whether you're attempting to position a company or product as a category leader, gain permission from a community to make changes, or push a law through the legislature, PR needs to tell interesting yet believable stories that make the target audience consider a new perspective or see the sponsor in a new light.

If your stories aren't understandable, interesting, provocative, or supportable (read accurate and believable), then your publicity effort probably hasn't got wheels.

It's all about the story!

It's pretty amazing that this basic idea is missed by so many business managers, marketers, and promoters. The essence of storytelling is newness or newsworthiness. Look at the following hints for potential news value:

Effect: how many people were, or are, affected—or will be?

Timeliness: did the event occur very recently?

Revelation: is there significant new information, previously unknown?

Proximity: was the event nearby geographically?

Oddity: was the event highly unusual?

Entertainment: does it make for a fun story?

Celebrity: was anyone famous involved?

Another way of thinking about the storytelling challenge, particularly in the commercial world, is bringing "what's different" into your story.

Marketing gurus Jack Trout and Al Ries have long explained the need for differentiation and it's never truer than when you begin a PR campaign.

In spite of the immense overuse of the word "positioning," few truly understand what is involved in achieving perceptual separation in the minds of the market. Read any of their books, such as Positioning, The Battle for Your Mind, Trout on Strategy, or The Fall of Advertising and the Rise of PR, or many others, so you can incorporate clear, simple thinking and strategic direction into your campaign planning.

Discovering, understanding, enunciating, and demonstrating a clear and simple difference in language is essential to the success of both the public relations campaign and the business or political venture. A memorable slogan for this is "Distinct or Extinct."

The Dance of Differentiation: Learn It

The first thing anyone managing a PR effort needs to ask is "What's new?":

What are we doing or what can we say that's both important to our audience and unlike what competing entities are saying?

How can we effectively separate what we're saying or doing from the communications noise affecting the people we want to connect with?

What kind of an interesting story (interesting to our audience, that is) can we tell that will make them pay attention and help us to gain share of mind?

Do we need to be contrarian or outrageous?

Can we discover some key truths that others haven't expressed?

Most of the time, answers are lying around and are quite obvious: What strongly held beliefs about related issues and trends do the organization's managers hold? Are they being expressed? Can you "put a face on" the organization by giving voice to these beliefs? Those are all handles for a PR pro to grab when looking for stories that can give the campaign some legs.

Most often the story that's interesting or that will garner attention in the commercial sector isn't about the product or service you're selling. More likely, it's about how people are using your products or the competition's and the positive effect it's having on their lives.

The story may also be about what's not available, what people need that isn't yet provided or one your company will perhaps be introducing months from now. New concepts can be the basis for great storytelling.

Persuading managers to express their opinions and become the voice of their organization or company can be difficult. However, teasing ideas out of those who should be speaking for the company can also be a fun part of public relations work. Once they've done it a few times, survived, and seen their name in print, they'll be more willing to be public with their ideas.

Listening and reading what tends to be, these days, in PowerPoint presentations (does anyone still write in complete sentences?), can often uncover relevant and effective story ideas. Whether you're practicing public relations within a company or as agency counsel, the time spent listening to management and clients or reviewing their written output can uncover many story ideas or angles.

Reading related industry news is another key way of discovering appropriate story ideas. All PR pros need to invest time staying abreast of what's going on in the industries or market sectors in which they're working. Reading provides an added way of seeing potential stories you can tell or to which you can hitch your story. It also familiarizes you with what key journalists are covering. Knowing that is essential as well.

Armed with a solid list of story ideas that are connected to the essential difference you want people to perceive about your organization... will help make all the aspects of a PR campaign roll forward with greater vitality and impact. First, get the strategic story down, and the PR program's tactics will flow naturally from of it.

Read more: http://www.marketingprofs.com/7/pr-persuasion-is-all-about-story-and-positioning-kanzler.asp#ixzz26LHGxSC0

CS Case Study – 1 Indian Airlines change of identity to Indian

TOPIC 4

ARTICLE 1

http://hbr.org/2005/06/new-laws-of-the-jingle/ar/1

New Laws of the Jingle

by Leigh Buchanan

Cultural critics mourn the passing of any art form—be it the silent movie, the pinup, or the penny dreadful. The most recent subject of eulogy is the jingle, pronounced dead by, among others, the Boston Globe and Steve Karmen, author of the new book Who Killed the Jingle? Guilty parties include the high cost of recording original work, music companies eager to license popular songs, and a jaded public. “For most corporate advertisers, jingles are no longer viable,” says Eric Korte, vice president and musical director of the advertising giant Saatchi & Saatchi. “Creatively, it’s not on the cutting edge. It’s considered old-fashioned.”

Still, effective jingles perform a unique service: marrying the name of a product or company with a melody that clings to the mind like a burr. Marketers love the borrowed equity they get from popular songs—think Cadillac and Led Zeppelin, Microsoft and the Rolling Stones—but the connection isn’t organic. The day will come when Lenny Kravitz sings about that little lady and consumers won’t picture her in Gap jeans. And there’s nothing stopping more than one company from licensing a single song. “I’ve heard ‘Ain’t No Mountain High Enough’ used by three different advertisers at the same time,” says Korte.

So is there life left in the jingle—or in the jingle reimagined for a new age?

The Internet is one obvious home for jingles: on a Web site or accompanying pop-up ads. A visitor to Duracell’s site is greeted by the battery maker’s signature three notes. Could other marketers achieve similar effects with slightly less minimalist ditties? “The best part of wakin’ up,” reads the message on Folgers’ home page. Consumers mentally supply the tune, but the coffee company could do it for them.

Cell phones might also host jingle like snippets, suggests Eric Bonabeau, chief scientific officer at Icosystem, a technology and strategy company. “Cell phones are ideal because simple stimuli are more acceptable there than on television, and jingles are relatively simple.” And while piggybacking on popular tunes breeds positive associations, “marketers may be able to use new auditory display techniques to create specific sounds designed to elicit specific behaviors,” Bonabeau says.

Jingle content, too, could stand an update. In the age of irony, “a lot of the best advertising pokes fun at itself,” says Korte. “Jingle parodies are ripe for having fun.” He speaks approvingly of Amazon’s retro TV spots in which a red-sweatered chorus sings the vendor’s praise. Some folks

adored (though others hated) last year’s Quiznos campaign featuring two bizarre koala-like creatures crooning, “We love the subs.” Seth Stevenson, a writer for Slate who deconstructs advertising, praised the spot (and by extension the song) for educating consumers about the brand. “We’re told that Quiznos subs are tasty, crunchy, warm, and toasted,” Stevenson says. “We’re introduced to the concept of the pepper bar.”

“The spots that we remember through the years are the ones that sang to us about a product, or danced for us about the product, or entertained us musically about the product for 30 seconds,” writes Steve Karmen. “Ask anyone over 30 what’s in a Big Mac, and they will tell you…because it was sung.”

So there may still be a role for jingles in marketing. Don’t underestimate the appeal of simplicity in a complicated age.

TOPIC 5

ARTICLE 1

Ethical Issues When Marketing To Children

Feb 23, 2010

IntroductionMarketing ethics is an area that deals with the moral principles behind marketing. Ethics in marketing applies to different spheres such as in advertising, promotion, pricing. However, for purposes of this essay, the ethics of advertisements will be dealt with especially in relation to children. (Mohandeep, 2001))

Many marketers and analysts have agreed that children are marketer's best friend. This is backed up by evidence from watch groups such as Media Channel. In the year 2007, they highlighted the fact that in the United States, close to two billion dollars was spent on advertisements to children. It was also revealed that children greatly affect the commodities their parents buy. Estimates done in this field show that projects tailored for children in the year 2006 totalled fifty two billion dollars. (McGee and Heubusch, 1997)

Regardless of all this potential returns that children can give manufacturers and their marketers, there are key ethical issues that arise in the discussion. For example, do children have the capability of understanding some of the intricate marketing tactics? Do children posses the final buying power? Do marketers need to get permission from their parents? And do children understand the negative effects of some of the products advertised to them? These key questions will be analysed in relation to business pressures then recommendations will be made.

Key ethical issues in marketing to children

Involving psychologists in market research

Some companies have become notorious for the utilisation of psychologists in their advertising and marketing campaigns. Normally what such companies do is that when trying to create marketing strategy, they will involve psychologist to tell them about tactics that they can use to influence children. Since psychologists understand the way child's mind works, they can help marketers create campaigns that will be directly aimed at them and those ones that can easily influence their choices. This trend has becoming so alarming that the American Psychological Association has raised an alarm about it. They have set up a committee to estimate the effect that the involvement of psychologists in the marketing process of children's products has on them. The group has asserted that no psychological principles should be used when marketing to children. They are also recommending that there should be some sort of strategy to protect the young ones from exploitation though the use of psychological ploys. (Beder, 1998)

The basic framework which steers marketing ethics revolves around three main issues. These are;

values

stakeholders

processes

Marketing ethics that are done on a value inclined framework are those one that involve the analysis of the kind of value that the marketing idea creates. So advertisements may instil in their target audiences positive or negative attributes. This all depends on their implementation. For example, an advertising targeting a child may become a problem if it violates the right to privacy, transparency, honesty or autonomy. By using psychologists in the process of creating advertisements for children, marketers are imposing upon children's right to autonomy and transparency. They try studying children's behavioural trends and then use this to exploit those children. This is quite unethical.

The process oriented framework in marketing ethics is founded on the basis of analysing marketing ethics through the categories that marketers use. For example research, promotion and placement must be done in an ethical manner. This is something that marketers have chosen to ignore because their research is not done in an ethical manner. Their research involves using psychological experts who may use their knowledge to take advantage of children who belong to vulnerable groups (Lizabeth, 2001)

Targeting children alone

Marketers who create marketing campaigns that are just directed towards children only are engaging in unethical marketing practices. This is because children are naive. They are at a stage of development called proximal development. At this stage, children simply take up elements of what they perceive in the world around them and then use it in various aspects of their lives.

There is a certain level of trust that children have over and above than one of adults. They lack the ability to weigh arguments in a sober and even sometimes a cynical way. Consequently, this makes them very vulnerable to exploitation. (Murphy et al, 2004)

Examples of advertisements that are directed towards children alone are those ones that have cartoon characters and are seen as specifically meant for children. At that point, children will feel like they are the only ones with the ability of purchasing the item yet it is their parents who have to foot the bill. Unethical advertisements are those ones that do not involve getting consent from parents. Most of the time such advertisements are usually aired in the afternoon during kid's programming sessions. They usually create desires in children to have those advertisements at all costs. When advertising is done without parental consent; that is when children are watching shows on their own then it become unethical. Children are too young to realise the manipulations that are going on through television or media advertisements. They also do not realise the financial pressures that come with the purchase of items. It would therefore be unethical for marketers to leave parents out of their marketing strategies. Normally, ethical advertisements are those ones that require children to get their parents involved in the marketing place. This can be achieved by stating it directly in the advertisement. It can also be achieved by limiting some children's products in parental magazines or targeting families in general instead of just children. (Waymack, 2000)

Advertisements targeting children alone have shown their effects in a number of ways. In the year 2007, it was found that about fifty eight percent of all the items purchased by children (through their allowances) are sweets and toys were the next highest items to be purchased by children. This took up a whooping thirty percent. Toys and candy are all items that are advertised directly children hence the staggering statistics. (Davidson, 2002)

Advertising to children alone brings out very fundamental ethical issue. It highlights the power analysis issue in marketing. Any form of marketing that claims to be ethical must adhere to the power balance principle. The scales must not be tipped towards the consumer neither should they favour the marketer either. When marketers target vulnerable markets, they tend to make the situation favour them. This is what is called caveat emptor in marketing. It is an unfair scenario and is also exploitative in nature. (McGee and Heubusch, 1997)

Types of products, manner of advertisements and other qualities can indicate whether or not an advertisement is targeting children. It should be noted that there are certain elements that if conducted by marketers may be deemed unethical for example, when an advertisement is made in such a manner as to imply that it is meant for children. Some elements to watch out for are;

music

images

voices

colour

These are all elements that are meant to draw on children's attention. Besides this, there may be certain activities expected to captivate children such a drawing, then those advertisements may be meant for them. Besides that, some advertisements may have characters that are designed for that demographic group. Sometimes some advertisements may be placed in publications that are usually read by children alone. They may also be placed in areas that have children. (Murphy et al, 2004)

All these features can be deemed unethical if they will be seen or heard by children exclusively, For example, if the advertisement is placed in a publication that is read by children alone then this is unethical because there is not parental consent there or if it is broadcast at times when children could be watching without parental consent. (Lizabeth, 2001)

Sometimes the kind of content in the advertisements matters too. Advertisements that are created in such ways as to make children feel less about themselves if they lack that product may be deemed unethical. Also advertisements that will promote harmful products to children are also unethical. For example, there were certain toys from China that had an excess of chemical elements and exposed certain risks to children who were playing with them. If advertisements posses those characteristics, then they may be considered unethical.

Recommendations

Responsible marketing

The issue of marketing itself has two main components. The first group is made up of the abolitionists and the second are the libertarians. The abolitionists believe that all advertising to children is wrong and that it should be completely eliminated. But this is something that is unrealistic and cannot be feasible in today's fast paced and commercial world. The other extreme is held by the liberalists who believe that advertisements to children should be left as they are. They insist that society shapes advertisements and that advertisements do not change moral values. But this is denying the obvious. The fact that children in the UK and even in other parts of the world spend the largest portion of their leisure time watching television implies that they will pick up some of the habits depicted on their screens. (Waymack, 2000)

In light of the above facts, it is important to come up with a compromise on the issue through taking up responsible marketing. Children can still be considered as a target audience for marketing of retail products, however, this should be conducted in such a responsible and socially sustainable manner.

There are three main alternatives available for marketers targeting children and these are;

viewing children as docile consumers

viewing children as non- consumers

viewing children as informed consumers

Choosing the non-consumer part would not be very market friendly because as it has been seen from earlier parts of the essay; children have substantial levels of buyer power. It is would

therefore be uneconomical not to tap this very valuable market resource. On the other hand, viewing children as docile consumers causes a lot of ethical controversies that have been raised earlier. Consequently, the most sustainable form of marketing should be viewing children as informed consumers. Marketers need to advertise and market their products in such a way that there will still be room for them in the future. This will be effectively achieved by informing children about marketing ideas. This will enlighten them and give them a very valuable asset; choice. (McGee and Heubusch, 1997)

Informing children about the intricacies of marketing at an early age will go a long way in ensuring that children can understand the fundamentals of the commercial world. It will mean that children's naivety will not be taken advantage of and that they will have the power to decide for themselves whether or not products are good for them. The ethical issues that have been brought forward stem from the fact that children are too young to understand the main reasons behind marketing displays. Informing them about this will drastically reduce those ethical concerns and will at the same time still allow marketers to go about marketing their products. (Beder, 1998)

It should be noted that some countries like Sweden have argued that children can understand the effects of commercial marketing after reaching the age of twelve; some have suggested four and others ten. They claim that at that point, be it 4, 10, or 12, children can understand the commercial world and the exploitation tendencies that their worlds present them. Consequently, human rights groups claim that marketers should not target children that fall below that group. But that debate can be eliminated if children below those established ages are made aware of the commercial world.

Regulations

This is something that is already in place, but still needs more emphasis. Advertisements should not be aired during children's programming as they are likely to be unsupervised at that point. Governments should institute statutory regulations on television advertisements. Advertisements should also be edited such that they do not seem to appeal to the child directly. They should be made in such a way that they will involve the parent or family. (Mohandeep, 2001))

Conclusion

Advertisements to children have sparked off lot of controversy resulting in various reactions in various countries. However, experts agree that unethical marketing occurs when advertisements are directly aimed at children without getting consent from parents. Organisations can go about this issue through regulating their content, changing their times and embarking on a consumer education to make their young audiences aware. (Waymack, 2000)

TOPIC 6

ARTICLE 1

Sticky situation at Cadbury India

Cadbury India headquarters in Mumbai

by Samar Srivastava

Kraft Foods owned Cadbury India is in a regulatory mess after some of its officials tried to bribe their way through important approvals

At 2:20 pm on September 6, 2010, an important rendezvous took place at the Taj Chandigarh. Rajan Nair, who is responsible for security at Cadbury’s operations in India, was there to meet a man who had provided canteen services to the company’s factory in Baddi, Himachal Pradesh. Sensing the gravity of the situation, Nair had informed his boss Adrian Wong, director security and special investigations at Kraft Foods, who had flown over 4,000 km from Singapore for the meeting.

At the meeting, Mohit, the canteen services provider, went about detailing allegations of corruption and wrongdoing at the company’s Baddi facility.

While Mohit conceded he was upset about the manner in which his services were terminated, he said he had enough evidence to show the company had bribed government officials. He planned to make life difficult for Cadbury, which was taken over by Kraft Foods in 2010.

Six months later, in February 2011, in a filing with the US markets regulator Securities and Exchange Commission (SEC), Kraft Foods disclosed that it had carried out a review of compliance systems at Cadbury, and admitted that it had found facts and circumstances that warranted further investigation in India.

It also added that on February 1, 2011, the company had received a subpoena from the SEC. The subpoena, issued in connection with an investigation under the Foreign Corrupt Practices Act (FCPA) was related to a Cadbury facility that Kraft acquired in India.

The SEC had asked for information regarding dealings with Indian government agencies and officials to obtain approvals related to the operation of that facility and that Kraft was fully co-operating with the investigation.

Immediately following the whistle-blower incident, Kraft Foods kicked off a detailed investigation of the case in India, led by Ernst & Young. It also sought the legal opinion of

corporate law firm AZB & Partners. The reports of both Ernst & Young and AZB & Partners on the issue are with Forbes India.

Also, Kraft engaged the services of US law firm Baker and McKenzie, which counts FCPA cases among its specialities. The firm will submit its report directly to the SEC. It may take a few weeks or at least a couple of months for the SEC to rule on the nature of the violation.

Even as this intriguing case winds down towards its final outcome in the US, Cadbury India could face the wrath of the Central Excise Commissioner in New Delhi as well. Already, senior executives, including Anand Kripalu, its managing director, have been summoned to the Excise Commissioner’s office.

The offices of Cadbury India in Mumbai have been raided, and computers and other documents confiscated.

Four key senior executives, who were directly involved in the case, including two who were executive directors on the board, have already left the company in the last year. CY Pal, the non-executive chairman of Cadbury India, says, “We are aware of the matter and whatever action had to be taken has been taken.” He declined to discuss the matter of the FCPA investigation any further or comment on the possible outcome of the Excise Department investigation.

So what really transpired inside the Baddi plant?

The Excise Slip-up

In June 2009, Cadbury India set up a large extension facility at their existing operations in the village of Baddi in Himachal Pradesh, churning out 5 Star and Dairy Milk chocolates and colorful button-shaped Gems. For the company, this capacity increase was a strategic investment. For not only did it expect to catch up with galloping demand for its products, it also knew it was on track to receive a substantial tax break.

Over the course of the next 10 years, the management expected tax savings, to the tune of 60 million pounds (Rs 521 crore).

On the last day of June 2009, the company wrote to the Central Excise Department. It said, “We are pleased to inform you that we have set up a new manufacturing facility at Baddi.”

The letter requested the department to grant them an exemption from paying excise taxes for the next 10 years.

Instead of granting approval, as Cadbury had hoped, the Excise Department hit back. After receiving Cadbury’s letter, the Central Excise Department responded with uncharacteristic speed.

A month later, it wrote back asking for details on the grounds under which the exemptions were applied for. It asked Cadbury India whether the goods were being manufactured at the location or whether they were being simply repacked—to receive the exemption, the company had to prove that the unit was completely independent. The Excise Department even wanted a “flow chart of the manufacturing process” to prove that goods were being manufactured at the site.

Lastly, it asked for details of investment in plant and machinery at the unit.

The letter put officials at Cadbury India on the back foot. Not only were they unprepared to answer these questions, they knew they would have a tough time proving that this was indeed a new unit, thereby making their claim for a tax break untenable. Noted tax lawyer Lakshmi Kumaran was engaged as the company looked for a way out.

Read more: http://forbesindia.com/article/real-issue/sticky-situation-at-cadbury-india/33488/1#ixzz26EWWscPr

ARTICLE 2

http://www.apa.org/monitor/sep00/advertising.aspx

Advertising to children: Is it ethical?

September 2000, Vol 31, No. 8

Print version: page 52

Some psychologists cry foul as peers help advertisers target young consumers.

BY REBECCA A. CLAY

Ever since he first started practicing, Berkeley, Calif., psychologist Allen D. Kanner, PhD, has been asking his younger clients what they wanted to do when they grew up. The answer used to be "nurse," "astronaut" or some other occupation with intrinsic appeal.

Today the answer is more likely to be "make money." For Kanner, one explanation for that shift can be found in advertising.

"Advertising is a massive, multi-million dollar project that's having an enormous impact on child development," says Kanner, who is also an associate faculty member at a clinical psychology training program called the Wright Institute. "The sheer volume of advertising is growing rapidly and invading new areas of childhood, like our schools."

According to Kanner, the result is not only an epidemic of materialistic values among children, but also something he calls "narcissistic wounding" of children. Thanks to advertising, he says,

children have become convinced that they're inferior if they don't have an endless array of new products.

Now Kanner and several colleagues are up-in-arms about psychologists and others who are using psychological knowledge to help marketers target children more effectively. They're outraged that psychologists and others are revealing such tidbits as why 3- to 7-year-olds gravitate toward toys that transform themselves into something else and why 8- to 12-year-olds love to collect things. Last fall, Kanner and a group of 59 other psychologists and psychiatrists sent a controversial letter protesting psychologists' involvement to APA.

In response, at its June meeting, APA's Board of Directors acted on a recommendation from the Board for the Advancement of Psychology in the Public Interest and approved the creation of a task force to study the issue. The task force will examine the research on advertising's impact on children and their families and develop a research agenda. The group will look at the role psychologists play in what some consider the exploitation of children and consider how psychology can help minimize advertising's harmful effects and maximize its positive effects.

The group will also explore implications for public policy. Task force members will be chosen in consultation with Div. 37 (Child, Youth and Family Services) and other relevant divisions.

Unethical practices?

The letter protesting psychologists' involvement in children's advertising was written by Commercial Alert, a Washington, D.C., advocacy organization. The letter calls marketing to children a violation of APA's mission of mitigating human suffering, improving the condition of both individuals and society, and helping the public develop informed judgments.

Urging APA to challenge what it calls an "abuse of psychological knowledge," the letter asks APA to:

Issue a formal, public statement denouncing the use of psychological principles in marketing to children.

Amend APA's Ethics Code to limit psychologists' use of their knowledge and skills to observe, study, mislead or exploit children for commercial purposes.

Launch an ongoing campaign to investigate the use of psychological research in marketing to children, publish an evaluation of the ethics of such use, and promote strategies to protect children against commercial exploitation by psychologists and others using psychological principles.

"The information psychologists are giving to advertisers is being used to increase profits rather than help children," says Kanner, who helped collect signatures for the letter. "The whole

enterprise of advertising is about creating insecure people who believe they need to buy things to be happy. I don't think most psychologists would believe that's a good thing. There's an inherent conflict of interest."

Advertisers' efforts seem to work. According to marketing expert James U. McNeal, PhD, author of "The Kids Market: Myths and Realities" (Paramount Market Publishing, 1999), children under 12 already spend a whopping $28 billion a year. Teen-agers spend $100 billion. Children also influence another $249 billion spent by their parents.

The effect this rampant consumerism has on children is still unknown, says Kanner. In an informal literature review, he found many studies about how to make effective ads but not a single study addressing ads' impact on children. Instead, he points to research done by Tim Kasser, PhD, an assistant professor of psychology at Knox College in Galesburg, Ill. In a series of studies, Kasser has found that people who strongly value wealth and related traits tend to have higher levels of distress and lower levels of well-being, worse relationships and less connection to their communities.

"Psychologists who help advertisers are essentially helping them manipulate children to believe in the capitalistic message, when all the evidence shows that believing in that message is bad for people," says Kasser. "That's unethical."

Driving out psychologists

Psychologists who help companies reach children don't agree. Take Whiton S. Paine, PhD, an assistant professor of business studies at Richard Stockton College in Pomona, N.J. As principal of a Philadelphia consulting firm called Kid2Kid, Paine helps Fortune 500 companies market to children.

Paine has no problem with launching a dialogue about psychologists' ethical responsibilities or creating standards similar to ones used in Canada and Europe to protect children from commercial exploitation. Such activities will actually help his business, he says, by giving him leverage when clients want to do something that would inadvertently harm children. What Paine does have a problem with is driving psychologists out of the business.

"If you remove ethical psychologists from the decision-making process in an ad's creation, who's left?" he asks. "People who have a lot less sensitivity to the unique vulnerabilities of children."

Others who have read the proposal point out that psychological principles are hardly confidential.

"We can't stop alcohol or tobacco companies from using the basic research findings and theories found in textbooks and academic journals," says Curtis P. Haugtvedt, PhD, immediate past

president of Div. 23 (Consumer Psychology) and an associate professor of marketing at Ohio State University in Columbus. "The same issue exists for all sciences: the information is available in public libraries."

The problem with trying to regulate the use of psychological principles is that "people acting in ways psychologists find objectionable probably aren't members of APA anyway," says Haugtvedt, who received a copy of the Commercial Alert letter. He believes that having general guidelines as to appropriate uses and areas of concern would be beneficial to all parties.

Daniel S. Acuff, PhD, for example, draws on the child development courses he took during his graduate schooling in education to advise such clients as Disney, Hasbro and Kraft. His book "What Kids Buy and Why: The Psychology of Marketing to Kids" (Free Press, 1997) draws on child development research to show product developers and marketers how to reach children more effectively.

To Acuff, the letter to APA is not only an "unconstitutional" attempt to limit how professionals make their living but also a misguided overgeneralization.

Since Acuff and his partner started their business in 1979, they have had a policy guiding their choice of projects. As a result, they turn down assignments dealing with violent video games, action figures armed with weapons and other products they believe are bad for children. Their work focuses instead on products that they consider either good for children or neutral, such as snacks and sugary foods parents can use as special treats. The letter to APA fails to acknowledge that psychological principles can be used for good as well as bad, he says.

"I don't agree with black-and-white thinking," says Acuff, president of Youth Market Systems Consulting in Sherman Oaks, Calif. "Psychology in itself is neither good nor bad. It's just a tool like anything else."

Rebecca A. Clay is a writer in Washington, D.C.

TOPIC 4

Case Study: IBM Brand Equity Restoration and Advertising Evolution

This case was written by Professor Michele Greenwald, Visiting Professor of Marketing at HEC Paris, for use with Advertising and Promotion: An Integrated Marketing Communications Perspective – 7 th edition by George E. Belch and Michael A. Belch. It is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation.

The case was compiled from published sources and interviews with executives at IBM and Ogilvy & Mather.

IntroductionDuring the 1970s and ‘80s, IBM was one of the most successful companies in the world. The company had experienced strong growth in both revenue and profits and had a virtual stranglehold on the market for mainframe computers. In fact the company was often referred to as “Big Blue,” a nickname derived from its massive blue mainframe computers. For four consecutive years in the 1980s, IBM held the top spot in Fortune magazine’s annual list of the most admired companies in the United States. However, by 1993 the quintessential “Blue Chip” company had reached its nadir. Over the three previous years, IBM had lost a total of $15 billion and its stock price was at an 18-year low. The brand had fallen below number 250 in Interbrand’s annual survey of the most valued brands with a brand value, estimated at a negative $50 million dollars. The explosive growth of personal computer networks threatened IBM’s lucrative mainframe and minicomputer business and the company was struggling to turn the situation around.

In the late 1980’s and early 90’s, the drivers of innovation and change in information technology were smaller, nimble companies like Microsoft, Compaq, Dell, Oracle and others who offered less expensive systems than IBM that could basically accomplish the same tasks. IBM had fallen behind in technology as its top management stubbornly clung to the notion that traditional mainframes, which had been the company’s primary strength, would maintain their dominant position in the marketplace. Compounding the problem was the fact that IBM had become a bloated and inefficient bureaucracy that had lost touch with its customers and had a risk-averse culture relative to its competitors. An image on the cover of Fortune magazine in the early 1990’s depicted IBM as a dinosaur. The situation had become so serious that the board of directors considered breaking up IBM into several companies that would be better able to compete in emerging technology markets against the smaller, more nimble players that were gaining ground at IBM’s expense.

In April 1993, Lou Gerstner became the new Chief Executive Officer (CEO) of IBM and was given the task of turning around the company. Gerstner was a former McKinsey consultant who had built his reputation through senior assignments at American Express and RJR Nabisco. Although not known as a technophile, he started by speaking with customers, large and small, around the world to gain an understanding of their needs and how they perceived IBM. Based on their feedback, Gerstner came to the conclusion that IBM was worth more in the long run as a whole, rather than as disparate pieces. He envisioned a three-legged company that, with offerings of software, hardware and consulting services, could synergistically leverage its strengths to solve specific problems that would improve their customers’ performance and business results. Gerstner brought on board Abby Kohnstamm who had worked well with him at American Express. Together, they made a radical move by consolidating all IBM advertising creative work worldwide with one agency – Oglivy & Mather. Prior to the consolidation, IBM’s advertising was handled by a network of approximately 40 different agencies around the globe. However, IBM’s top management felt the company was projecting too many images with its advertising divided among

so many agencies. They decided that by consolidating all of its advertising with one agency, IBM would be able to present a single brand identity around the world. Chris Wall, worldwide creative head of the IBM account for Ogilvy & Mather, noted that: “It was a massive consolidation job of a very complex brand in a very complex category. The challenge for Ogilvy was to take a brand with heritage from the past and bring it to the present: taking what was good and truthful, and infusing it with a modern voice. We have taken a very complex topic in an environment of constant change, in which the products evolve but are not quite "new" - products you can't show and often can't demonstrate. Our challenge has been to keep the IBM brand fresh, interesting and topical - because at the end of the day what you're selling is trust.”

The consolidation followed a reorganization and change in IBM’s business and communications strategy that was initiated by Gerstner. Prior to the reorganization, IBM had at its core 13 semiautonomous business units, each of which could develop its own independent business strategy with a concomitant marketing communications strategy. These businesses overlapped and inherent in the mix were potential communications conflicts. Under Gerstner, the 13 units were reintegrated into a more cohesive whole. The strategy emphasized the integration of the units and the key role IBM played in technology around the world, while reinforcing the heritage of the company. Central to the implementation of the new worldwide strategy was the global articulation of this vision in a single voice.

“Solutions for a Small Planet”The first step taken by IBM to project a single brand identity around the world was the launching of a new advertising campaign in January 1995 with a contemporary tone known as “Subtitles.” The goal of the campaign was to communicate the message that IBM delivers solutions that are simple and powerful enough to manage information anywhere, anytime, and for anyone. The tagline for the campaign was “Solutions for a Small Planet.” It originated from a focus group in Paris where a participant made the observation that: “It’s as if technology is making the world smaller and bringing everyone closer together because we all share the same problems.” The commercials developed for the campaign used the same imagery but were varied for each country by the use of subtitles in the local language.

The campaign targeted “C-level” executives, such as CEOs, CIOs, and CFOs, rather than the previous target audience of procurement and information technology executives. The goal of the advertising was to convey that IBM was capable of solving business problems, not just hardware and software issues. The campaign was effective in communicating that technology affects even average people around the world and IBM is there with solutions for smaller as well as larger, more complex technology needs. This new campaign was in line with Lou Gerstner’s strategic vision for the company which was for IBM to be recognized as “a provider of solutions.” The campaign also communicated an important message that IBM remained vigorous, innovative, and a purveyor of technology and solutions while retaining its latent strengths of global scope, leadership, and reliability. Several of the print ads from the “Solutions for a Small Planet” campaign as well as a photo board of the “Nuns” TV commercial are shown in the power point file that accompanies the case.

While the “Subtitles” campaign was a step in the right direction, IBM needed to go further creatively by showing prospective customers that the company was hip to new technologies, understood their needs and issues, and had the solutions to make a difference. Key to developing this kind of advertising was the need to build a creative group that had a deep understanding of business and technology issues. In 1997, IBM published a 3,000-word manifesto in The Wall Street Journal and The New York Times, using copy written in business terms a CEO or CIO would use, rather than tech-heavy terminology. It illustrated to potential customers that IBM understood their business, spoke their language and had the expertise to help them solve their problems so they could

perform better. The photography was very “street level,” providing the perspective that IBM was out of the ivory tower and in the trenches working with its clients to help them solve their business problems.

The “E-business” CampaignThe “Subtitles” campaign had one of the most successful runs of any image-oriented advertising campaign ever done by IBM. However, by the late ‘90s, the Internet was growing as more companies were using it to conduct business and IBM was working with them to support their electronic business processes such as advertising, merchandising, inventory management, order fulfillment and customer service. Thus, IBM decided to position itself as the most comprehensive provider of end-to-end solutions for e-business. This led to the introduction of the “e-business campaign,” which had several sub-campaigns to support different pieces of IBM’s business. These included “e-culture” which focused on helping companies adapt to doing business on the web, “e-business people” which focused on IBM’s global consulting services and “e-business tools” which included IBM’s products such as the ThinkPad personal computer and servers. The umbrella campaign recast all IBM communications in relation to doing business online and helped the company come to own the “e-business” label.

The campaign was give a contemporary look by producing television spots in black and white with a horizontal, oblong frame that created a screen with movie-type dimensions. The visual was framed in IBM’s blue logo color, which evoked the brand’s longtime equity, but at the same time, portrayed IBM in a fresh, new way. The spots were “slice of business” scenes in which business people experienced technology problems that IBM was able to solve. The commercials were witty and displayed a sense of humor (traits that were not previously associated with IBM), thereby projecting a much hipper, “with it”, and in-tune image onto the brand. A female voice-over was used, which was another symbolic departure from its previous staid imagery, and different from most other business technology advertising. The print ads were also done in black and white with only the @ appearing in color (red).

As part of the E-business campaign, IBM utilized testimonials around the theme of “XYZ Company is an IBM e-business.” Large, well-known firms such as Mercedes Benz and Motorola, as well as others that were smaller and less known, were featured in the testimonials. A pool of print ads, illustrating the diversity of e-business customers, appeared in magazines, wild postings, outdoor billboards, and at airports. The campaign communicated the message that IBM worked with companies of all sizes across a wide range of industries and its broad expertise made them the most knowledgeable advisers for almost any business. Companies started approaching IBM asking to be included in the campaign as being portrayed as an “e-business” enhanced the way they were perceived by their customers. Great synergy accrued to IBM from putting all their communications behind a unified and relevant message. At the end of 1998, IBM did something formerly unheard of in newspaper advertising. Ogilvy & Mather created a 32-page color insert on heavy stock paper with a compilation of the e-business print executions. It included some surprising new content sprinkled throughout to create interest, a specific explanation of what e-business was all about, and a call to action for those interested in finding out more about IBM solutions for e-business.

The timing for the campaign was right, as e-commerce and all things “e” were starting to explode. Moreover, IBM’s association of e-business with their brand in a big way at the outset of this explosion resulted in the company pre-emptively owning the term. Chris Wall of Ogilvy & Mather noted that: “The effect of this simple decision was that IBM became one of the definers of how the world would talk about internet-based business, and this became a competitive advantage. By association, IBM became known as being at the forefront of developing ideas and recognizing technology trends: in short, it became a brand that “got it”. Prior to this campaign, IBM was constantly in the position of living down their “stodgy” past, making it harder to compete against

Microsoft and other hot, young tech brands. But after e-business, IBM became one of the leaders of the pack. The crash of the dot-coms made everyone skeptical of 20 something change-architects.” IBM’s combination of steadfastness, depth, and its new, hipper, more cutting edge, and more “in the trenches,” image helped the company once again be viewed as a stalwart, in contrast to so many other fly-by-night high tech operations.

Within 18 months of running the e-business campaign, the IBM brand had turned the corner and was on its way back up. In 1998 IBM’s sales topped $80 billion for the first time ever and earnings were $6.3 billion. Even more impressive was the growth in IBM’s stock price which had risen from a low of $41 in the dark days of early 1993 to nearly $125 by the summer of 1999. Fortune ran another cover story on IBM in 1999. However, this time the headline read “From Dinosaur to e-business animal.”

The “ON Demand” CampaignThe “e-business” campaign ran for several years and was followed by “ON Demand,” which was the first advertising campaign under Samuel Palmisano, IBM’s new Chief Executive who took over the leadership of the company when Lou Gerstner retired in 2002. Palmisano’s vision was to transform IBM by dramatically increasing its focus on the fast-growing Business Services market. Palmisano accelerated the shift in focus from “component value” (PCs and machines) to business value which involved providing end-to-end integrated solutions. This expanded vision of “ON Demand” business was based on the idea of how the world would work when businesses were fully wired with broadband, all systems were integrated, consumers had infinite choice, trends happened faster, companies provided better service and were more responsive to customer needs and business opportunities on a global scale.

Richard Ryan, of Ogilvy & Mather, noted that: “At its simplest level, ON is about getting your company to run better. ON means your company runs like clockwork. Business is smoother. Life is good. But people have heard all that before, so our first step was to create customer testimonials – China is ON, Napster is ON- to let people know that ON Demand is real and making a difference right now. Other executions-Fighting cancer is ON. Flying Phones are ON-speak to innovation and strategic expertise. Long copy executions let us get to the meat and potatoes of specific business issues. ON works across all of IBM’s product divisions. It’s a rallying cry for IBM’s 300,000 employees. It’s the marketing spearhead for Sam Palmisano’s vision.” Being ON means you’re responsive and flexible. It means being on your game: on budget, on track, on schedule. We wanted people to associate IBM with that new, ON Demand way of doing business.” Deirdre Bigley, Vice President, Worldwide Advertising & Interactive at IBM noted that “while ‘e-business’ was all about e-commerce and the Internet, ON Demand was all about the technology and movements such as supply chain optimization.”

The red ON button used in the ads, combined with the words DEMAND BUSINESS became the brand signature in all marketing materials. The slogan also became the rallying cry for all company divisions that cross-sell various IBM’s products and services in an attempt to improve their customers’ business performance. All of IBM’s sales representatives - from its server division, to software, to outsourcing – were selling the on-demand concept along with their own products. ON Demand’s task was to drive the development of all of IBM’s software and hardware, to make them capable of mixing with and managing applications from other vendors.

Over time, IBM began to define themselves less and less through their specific hardware and software products, and more as a total business solutions company in which consulting services was the key part of the “3-legged stool” and a means to sell the company’s hardware and software. E-business was all about the Internet and became too limiting for IBM as the they needed to broaden their positioning. An IBM executive noted: “Business automation has blurred the customary

demarcation between business and information technology, put IT at the heart of corporate strategy, and elevated the understanding of the possibilities. As a result, companies increasingly look for partners who can skillfully combine business insight with technology expertise.”

IBM purchased the consulting firm Price Waterhouse Coopers in 2002 to enhance their expertise in consulting services, their credibility, and to increase their client base. IBM felt it was now uniquely positioned to provide the combination of IT and business consulting expertise that firms of nearly every size and in virtually every industry need in order to grow market share and revenue. They believed that no other firm in the world could deliver better on the combination of IT and business consulting to companies all over the world. As Wall Street analyst, David Cearley described it: “IBM is morphing from a computer company into a business expert, selling well-connected experts. IBM is changing its definition from International Business Machines, to international business models.”

A major challenge for Ogilvy & Mather in evolving the advertising for IBM was communicating the expanding scope of what the IBM brand stands for and the breadth of its business. The creative group had been given the task of describing IBM’s offerings in a way that sounds proprietary, but at the same time was understandable, to an ever-larger group of business professionals. With the acquisition of Price Waterhouse Coopers and the increased focus on business services consulting, IBM no longer was targeting primarily IT users. Rather it was marketing a broad line of products and services to top-level decision makers at companies and organizations of all sizes.

“The Other IBM” and “Help Desk” CampaignsSince its inception, the name IBM has signified technology. However as the information technology consulting industry matured and web services were being built on open standards, organizations were shifting their definition of business value to include processes and enterprise optimization. In analyzing this new trend, IBM found itself faced with one of the biggest opportunities in its history: the $1.2 trillion Business Process Transformation Services (BPTS) market. Demand for BPTS had escalated as companies increasingly realized the value of teaming with a strategic partner to help redesign their functions and processes to become more profitable, efficient and competitive. In 2005, IBM set upon a mission to position itself as the leader of the BPTS market by increasing awareness of and consideration for its capabilities in this area to senior business executives. IBM looked to Ogilvy & Mather to develop an integrated marketing communications campaign to help establish awareness, credibility, and ultimately preference for IBM as a provider of business consulting services.

Achieving this objective was not an easy task as it required maintaining IBM’s equity of superior technology and adding to it an equally strong perception that IBM offers superior business consulting services as well. Chris Wall noted that “IBM has a strong heritage as a technology company. A lot of people don’t realize they also do business consulting and not just technology consulting.” Thus, a major challenge for the IMC campaign was to get C-level executives to recognize that there is another “side” to IBM that provides business transformation services. In April 2005 a campaign was launched using the tagline “The Other IBM” which was designed to position the company as a provider of business consulting services and communicate its expertise in areas not typically associated with IBM. The creative used in the television commercials for the new campaign used imagery that alternated between scenes of King Arthur’s Knights of the Round Table wrangling with age-old business problems with counterparts at a contemporary business conference table doing the same. The metaphor of Sir Arthur’s Business Roundtable allowed for real issues to be discussed in a manner that was both informative and entertaining and to show how IBM Business Consulting could help businesses solve problems in specific areas. “The Other IBM” campaign was unveiled during television coverage of the Masters Golf Tournament on CBS. The Masters was the ideal platform for the launch due to the large number of senior business executives

tuning in for the event. Also, since the Masters only allowed advertising from three sponsors, IBM was able to deliver its message with high frequency and without the clutter that typically hinders breakthrough during normal programming.

The TV launch was followed by an eight-page manifesto in The Wall Street Journal which was used to set the premise of “The Other IBM” and define it in the context of business consulting services. Additional print executions were used to elaborate on the King Arthur metaphor as well as to focus on specific areas in the BPTS such as human resources, finance and accounting, supply chain and procurement, sales and marketing, and strategy and change management. All of the advertising directed prospects to a micro web site where users could explore content in areas such as leadership and innovation, learn more about IBM’s specific capabilities in functional areas, read case studies and locate additional contact information.

In addition to advertising promoting “The Other IBM”, another integrated campaign called “Help Desk” was run concurrently to show how IBM’s on demand computing solves real problems and touches real people. The first phase of the integrated campaign focused on how IBM helps the world at large, while the second phase focused on more industry and customer-specific solutions. To underscore IBM’s ability to deliver value-added services to a customer, the advertising used the quick-problem solution metaphor of a “help desk” across television, print and online executions. For example, in the TV spots, the “help desk” appears in improbable places such as a golf course where a group of scientists needs help after its solar-powered golf cart runs amok or in the middle of a busy freeway where a motorcycle policeman stops to learn how IBM can assist with traffic control. The print ads featured beautiful photographs of landscapes with stylized help desk stickers attached to show a problem-solution scenario. The online execution used an interactive component featuring a large white room with classical columns where visitors would encounter a number of industry-specific scenarios for which the IBM help desk representative devised a solution. The “Help Desk” campaign received a “BtoB Best Award” from BtoB magazine, a leading trade publication, as the outstanding integrated business-to-business campaign of 2005.

The “Innovation That Matters” CampaignIBM was pleased with the results from “The Other IBM” and “Help Desk” campaigns as they demonstrated the company’s expertise in the area of Business Consulting Services and gained credibility for IBM among business executives without negatively impacting its strong technology heritage. However, in March 2006 the advertising moved in a new direction with the launch of the “Innovation That Matters” campaign that is designed to position IBM as a means for companies to significantly change how they do business when seeking ways to grow. The campaign was developed in response to a major research study IBM had conducted which showed that after years of retrenchment, corporations were embracing change and planned to radically transform themselves over the next several years.

The new campaign uses the tagline “What makes you special?” and its objective is to start a business conversation and to open the door to exploring how IBM can help individual companies innovate, capitalize on their inherent strengths and redefine their business processes to differentiate themselves versus their competitors. The value proposition is that IBM can help companies innovate by changing their processes and technology. The advertising features companies that have developed new ways of doing business with IBM’s help and how this has given them a competitive advantage. The “What makes you special?” message also communicates customization and that there is no one size fits all prescription, as solutions are based on each firm’s unique capabilities and possibilities.

The creative used for the campaign is very different from previous IBM ads and from other high tech, business-to-business advertising. It uses bold, saturated colors and simple images from

everyday life (a radish, a pill, a car, a house) in a two-page print spread. The layout shows an item by itself on the left page of the spread and a “special” item on the right so that readers are drawn in to find out what’s special about it. Rather than using “high-tech” language, the copy describes business applications in terms that are relatively easy to understand. The choice of lower case letters in the headlines and tagline conveys a lack of pretension and shows that IBM wants to communicate that discussions with clients will be “down-to-earth” and not intimidating. Above all, the campaign speaks to customizing business solutions and improving processes based on the uniqueness of each individual firm. The message is that with the combination of IBM’s unparalleled consulting and technology expertise, customers can leverage their capabilities and strengths to gain a competitive advantage in their industries.

IBM launched the new campaign, as they did with others by running a multi-page manifesto in The Wall Street Journal, the print media vehicle with the highest reach among C-level executives. The newspaper advertising broke a few days before the TV ads, which began airing the following weekend, and magazine ads appeared two to three weeks later. Additional eight page manifestos were run to allow IBM to explain the new campaign more completely and also provide examples of how their products and services apply to a range of different size companies and different industries. The television commercials for the new campaign include a spot called “Anthem” in which flower petals seem to inspire groups of men and women to sing along with an obscure song by the Kinks, “I’m not like everybody else,” that speaks to the new positioning. The spot ends with a series of questions that appear on the screen in white type such as “What makes you different? What makes you unique? What makes you special?” Another spot takes a fairy tale approach by showing a stream of office plants fleeing commoditized companies after realizing that they will only be watered at companies that are growing. In addition to television and print advertising, the global campaign includes 15 out-of-home executions, a dedicated web site (www.ibm.com/innovation), Internet banner ads and huge decals placed on the tarmacs of two Manhattan helipads which Chris Wall describes as “metaphorical illustrations” designed to target corporate decision makers. The goal for the integrated campaign is to convey a sense of imagination and possibility as well as to communicate IBM’s ability to help companies do special things.

Internet MarketingAs with most high tech marketers of business-to-business products and services, the Internet is an ideal, cost-effective, targeted marketing tool used by IBM to help identify prospects and provide information about its products and services. IBM’s website is designed to move prospects through the buying cycle from generating awareness and initial interest, to providing information such as case studies and testimonials, to converting interest into a purchase decision. Some of the online tools IBM uses include webcasts, podcasts, virtual meetings, and sending customized e-mails, as well as e-catalogs, and e-newsletters. Interested customers opt-in to receive relevant information. IBM’s website includes in-depth articles, reports written by technology experts, blogs from people inside and outside the company and press releases. Topics covered include the range of IBM products, services and business processes that can be improved or transformed, such as innovation, growth, operations, customer loyalty, team performance, and corporate governance. The products and services IBM provides that relate to each topic are elaborated on in the site. Great care has gone into developing a site that is easy to navigate so customers can focus on areas of interest or where they are most likely to be seeking help. Prospects answer questions online to provide IBM’s salespeople with data and information that can be used to address each customer’s specific needs. IBM’s internet marketing also includes paid search for keywords that relate to specific topics and issues of relevance to their customers on search engines such as Google, Yahoo! and MSN. IBM also has developed web sites to support its integrated marketing communications campaigns which have included making commercials available for viewing by visitors to the site as well as relevant case studies and testimonials. For example the web site created to support the “Innovation That

Matters” campaign included a section where visitors could view commercials, a Global CEO Study that could be downloaded, and a report on IBM’s Global Innovation Outlook.

Moving ForwardThe transformation of IBM from a computer hardware company to a services and business solutions provider is one of the great comeback stories in the history of corporate America. In 2005 IBM had more than $91 billion in sales and a profit of nearly $8 billion. In the 2006 Interbrand Study, IBM ranked was ranked as the third most valuable brand in the world with an estimated brand value of over $56 billion. CEO Palmisano notes that IBM is not defending the past anymore as the company is off and running into a new world of business, beyond computers. In January 2005 IBM announced that was selling its personal computer business, best known for its ThinkPad lap tops, to Lenovo which is the leading computer company in China. The sale of its personal computer business was part of IBM’s strategy to move away from the confines of the slow-growing and highly competitive computer industry and to continue to transform itself into a company that helps other firms run their business in areas such as accounting, human resources, procurement and customer service. In the process of doing so, however, IBM and Ogilvy & Mather have successfully balanced the company’s brand heritage as it has undergone changes in its business strategy. IBM is not saying good bye to its image as “Big Blue.” However the image of IBM has evolved and the brand clearly stands for much more than mainframe computers.

Discussion Questions1. What is the primary objective of IBM’s advertising? How have the objectives of its

advertising changed over the years?2. Evaluate each of the campaigns described in the case and the accompanying ads shown in

the Power Point file. Are the intended branding messages being communicated clearly and do the ads speak equally well to users, as well as non-users, of IBM products and services?

3. What is the primary objective of IBM’s advertising? How have the objectives of its advertising changed over the years?

4. Evaluate each of the campaigns described in the case and the accompanying ads shown in the Power Point file. Are the intended branding messages being communicated clearly and do the ads speak equally well to users, as well as non-users, of IBM products and services?

5. What were the pros and cons of staying with the “e-business” campaign? Could it have been updated and retained or did it lose it relevance?

6. How was the “ON Demand” campaign adapted to keep the umbrella tagline while providing the specifics needed to communicate the “sub-business” component details?

7. Do you think IBM’s advertising campaigns changed too often over the past 11 years? Were the changes made because the campaigns were not working well or was it an intentional evolution in the advertising and branding message IBM wanted to communicate?

8. Is there value to business-to-business marketers such as IBM in advertising through mass media that also reach the general consumer market? Evaluate the media choices used by IBM such as advertising on golf tournaments, on Sunday morning news shows, in airports, and even on the Super Bowl. Since IBM divested its personnel computer business, should they continue to advertise in mass media, such as on the Super Bowl?

9. How has the target audience for IBM’s products and services evolved over time? How have the type of business problems that IBM addresses in their advertising changed?

10. What were the advantages and disadvantages of using a creative tactic such as the metaphorical King Arthur’s Round Table commercial and print ads that were part of “The Other IBM” campaign?

11. What is the value of using testimonials or mini-case studies across a variety of business and industries in IBM’s integrated marketing communications campaigns?

12. Does IBM’s advertising provide enough information to decision makers and does it matter that no reference to the prices of its products and/or services are made in the ads?

Topic 6

Article: B2B Buyer Personas & Buyer Behavior: Behavior-Based Messages

How to conduct marketing outreach using a “broadcast to behavior” continuum:

• Mass mailing: a mailing targeted toward everyone in the database.• Targeted mailing: a mailing targeted based on segmentation of some type, such as

geography, title, etc.• Time-based messages: making a mailing more automated, such as designing

different mailings to go out at different times.• Behavior-based messages: designing multi-track messages targeted to people based

on their behavior (i.e., sending one individual who has downloaded a white paper a different message than another individual who has not yet downloaded the white paper.)

• By watching the behavior of your target audience, and developing behavior-based messages, you can send them more relevant content — and better understand who they are — by knowing which tools they’re using and which they aren’t. It must also be noted that Silverpop concluded behavioral-triggered campaigns in B2B performed 325% better than simple blast campaigns!

Psychographic VariablesThe webinar also discussed psychographic variables, which are any attributes related to your target audience’s personalities, values, interests, etc. If you can include questions related to these in your forms, you can find out little tidbits you can use in the future. The webinar used a great example of asking the audience their favorite baseball team, then sending out an email (perhaps even a personal email) that corresponds with how their team is doing.

Buyer PersonasBy including both what the audience is doing (by monitoring their behavior), and who they are (by finding out their psychographic variables), you are creating a more accurate buyer persona of your target audience and may better motivate their buying behavior.

Topic 7Selection of an advertising Agency

An advertising agency may be a full-service agency or part-service agency. Each has a different outlook and advertising activities. The selection of advertising agencies depends on whether one wants a full-service agency or a part-time agency. The selection is also made on the basis of compatibility of the agency team, agency stability, services, credibility and the agency’s problem solving approach.Full service agency or part- time agency: The full-service agency is involved completely in the advertising functions. It has a large number of expert employees. The organization is typically useful for performing advertising agencies. It looks upon customers as key clients. It communicates with the prospective purchasers. The distinguishing characteristics of the various agencies lie in the creative skills of the personnel of each organization and in the philosophy of advertising. Larger agencies offer better services.The part-time agency offers service on free of cost or project basis. These agencies perform various outside activities and co-ordinate the activities of the advertiser and media men. Clients have greater control over advertising campaigns. Advertiser’s research agencies generally perform job of part-agencies. The selection of a particular agency depends on its size, its services, knowledge and growth

• Compatibility: the selection of an advertising agency depends on the compatibility of the agency. The needs of the company determine the fitness of the agency. The advertiser visits several agencies and chooses the best agency on the basis of its merits, demerits, accreditation, its methods of handling the accounts and using the available opportunities.

• Agency Team: This includes management specialists, market researchers, copywriters, media experts, production managers and art directors. The attitude, thinking, experience and personalities of the team members have positive effects on the selection process.

• Agency Stability: An agency, which has been long in existence generally, performs efficiently and effectively. The greater the investment in the agency, the more vital the contribution of the agency to the advertising activities. The personnel, finance, management and credit are examined before selecting a suitable advertising agency.

• Services: The services rendered by the agency are evaluated with a view to choosing the best advertising agency. Cost accounting, general agreements, project estimates, selling attitudes and other services performed by the advertising agencies are considered to evaluate their efficiency and credibility in performing advertising jobs. The greater the range of an agency’s services, the more fully it can serve the clients’ needs. The agency can serve the clients by its potential capacity for advertising, sales promotion, media placement, public relations, market research, sales training and distribution channels.

• Creativity: Creativity is the main element in advertising. If the advertising agency is capable of great creative efforts, it is selected for the purpose. Style, clarity, impact, memorability and action- these are taken into account while evaluating creativity.

• Problem-solving approach: The agency which has a problem solving approach is considered to be superior and useful. The importance of choosing the right agency cannot be ignored. Caliber, compatibility, balanced services, responsiveness, talent an equitable compensation-these are important factors in selecting an advertising agency.

Topic 8

Means End Theory: People Don’t Buy Features Or Benefits

Create relevant messages, know what customers value in your product or service… every marketer should embrace means-end analysis.A Means End Theory AnecdoteAt the ski shop we sell these uber cool bluetooth helmets from K2. You can synch the earpieces to a device like an iPhone, and listen to music or pause the melodies to answer an incoming phone call. I wouldn’t buy one because I consider the sport my refuge from the onslaught of technological-interconnectedness. However, personal preference aside, these helmets fly off the shelves each season like fudgicles in a sweltering summer afternoon.Yet one particular sale stands out from the rest. A mother and son (probably 10-12 yrs old) walk into the shop. They’re going to Gore, and Billy needs a helmet. Billy trys on a few brands finally arriving at the K2. He is tickled pink by the thought of listening to tunes, and chatting on the phone while skiing. If Billy’s going to be the envy of all his friends he’s got to have it. Mom rolls her eyes at the price but consents. Then Billy, god bless him, does some selling for me, “Mom, if I’m wearing a helmet shouldn’t you too?” She’s holding his helmet, and puts it on for kicks, but being too small it cocks backwards funny like. At which point I mention we might have a larger size, not to mention Gore is a huge mountain, if the two should get separated it would be easier to get a hold of each other with bluetooth enabled helmets. Although she tries on a few more helmets, Mom also settles on buying herself a proper sized K2 helmet.If you’ve been reading carefully you’ll notice that features and benefits are only part of the story as to why Billy and his Mom bought the bluetooth helmets. For Billy the benefit of listening to music or making phone calls translated into “envy from his friends,” otherwise known as enhanced self-esteem. Whereas the benefit of a quick phone call for Mom meant she can check in on Billy to know he is safe.What Is Means-End Theory?Billy and his Mom demonstrated what is known in consumer behavior as Means End Theory: People buy features that bring them benefits that get them closer to valued end states.These are the possible Means-End Chains for Billy and his Mom:

Underlying values are the motivating factor in a consumer purchase. Therefore effective marketing messages that sell will connect a benefit to values like security, achievement, belonging, fun, enjoyment, etc.Means-End Theory In B2BSpeaking in terms of only features and benefits tends to remove emotions from the purchase equation. In B2B advertising, overemphasis is placed on benefits with valued end states being downplayed. Why does this occur? Because many B2B marketers operate under the assumption that B2B purchases are rational. In reality, decision makers are influenced by emotive propositions , in some cases more than they would be as individual consumers.

Means-End Marketing ApplicationsMean End Theory is important to marketing on two fronts.I touched on the first already, MEC provides a way to structure messaging. Identify a feature, linking it to a benefit that fulfills a personal valued-end state.For example, IBM has transitioned itself from a hardware maker to an integrated systems provider. This Applications On Demand video reflects that approach. IBM provides a number of features: server, database administration, etc. These benefit HDR, whose employees have time more time to focus on the company’s core tasks (functional benefit). The message could have stopped there, but IBM clearly distinguishes itself in this ad as a company that is easy to do business with (an intangible, fundamental need of HDR). That valued-end state likely has the most and strongest connections to the multitude of features and benefits provided by IBM.Second, you may be able reverse engineer the product/service. Knowing the valued-end state allows you work backward to build new features, or creates new products and services of value. Using the means-end approach to gain customer insights is an important way to mitigate the risks of marketing failures in the product design and positioning phases.

Topic 9

3 Effective Advertising Message Strategies

MESSAGE STRATEGYMessage strategy has to do with the choice of the benefit to be conveyed, as well asthe positioning and segmentation choices. It is often easiest, in developing a global brand, to standardize on the core positioning platform for the brand, while allowing for local executional variations in other brand elements. If the basic need being met is common the world over, the same message strategy can likely be employed.Thus, Oil of Olay uses the same positioning-a moisturizing cream for mature women-even though the name, formulation, and packaging can vary slight across markets. Procter & Gamble sells its Pert Plus Shampoo-and-Conditioner product with the same "BC-18" formula under different names in different countries, but in all markets still uses the basic message of time-saving ("wash-and-go") convenience. Chanel and other fragrances can appeal worldwide to the same human need (to look beautiful), and Swatch watches to the same universal need to have fun.On the other hand, the same product or service may sometimes need to be positioned very differently in different markets, if the market is at different levels of economic development or product life cycle, or if the habits and attitudes toward that product category are culturally influenced, or if the competitive position of the brand is very different.Economic Differences Citibank positions its automated, twenty-four-hour, globally networked consumer banking facilities using a "convenience" positioning in Hong Kong and Germany, but as a high-status, lifestyle aspirational symbol in Greece and certain economically less developed countries. Similarly, the Honda Accord car is a mid-market sedan in the affluent United States market but occupies a more upscale, premium position in the car markets of various less economically developed Asian and eastern European countries.Consumer Behavior Differences General Foods found that its orange drink Tang had to be sold in France as an "anytime" cold refreshing beverage, rather than as a breakfast drink, because orange juice is not a breakfast tradition in France. Other research has shown that, in the 1970s, while car advertisers in the U.S. found it best to emphasize leisure and getto-the-wilderness benefits of car ownership, consumers in Brazil were apparently more responsive to the benefits of being able to use cars to travel to urban culture.Competitive Resource Differences These are'illustrated by the Heineken beer example cited earlier, which developed historically a mass-market beer in Europe, but decided it would be more feasible to aim at an upscale target in the U.S., with a premium positioning, rather_than fight the likes of Budweiser for the mass-market there.Even if the sam-e target market and same core positioning proposition are used in many different markets in the world, important variations may be necessary across these markets. For instance, Johnny Walker Black Label, the world's largest scotch whisky brand, has a very strong and premium brand image across the world. Research showed that its equities everywhere included its square-sided bottle, the black and gold coloring on the diagonally-centered label, and so on. However, this research also showed that while the brand was perceived everywhere as being a premium, luxury brand, it varied across countries in the extent to which it was seen as old-fashioned and traditional, versus modern and elegantand consumers in different countries varied in which of

those two kinds of luxury scotch whiskies they preferred. The advertising brief for the different countries thus varied in whether it emphasized the "old-fashioned, genuine, traditional" angie or the "more modern, sophisticated, elegant" angle, while keeping to the common core positioning of "luxury, premium" positioning.