Category: Marketing and Advertising

First, we shall concentrate on traditional marketing and then we will get into digital marketing and promotion. But for successful marketing to occur, companies must be internally organized around common goals and objectives. Marketing efforts follow the four P’s of marketing; product, price, place and promotion. The product consists of the actual goods produced for customers as well as packaging the product. If we are looking at media, that would be the content or any of the shows that are being aired. Price impacts the sale of a product and affects competitors who consider what price to charge in light of other prices available in the market. How much does advertising or sponsorship cost?

Place would be the physical location at which the product is actually sold and the steps taken to distribute the product. That would be the radio or television stations or the cable system. Promotion is a combination of activities that promote both awareness among consumers in the actual selling of products and advertising is a major part of promotion. Later on in the second video, we will get into details about not only promoting the content on the station, but to promote a stations image. Successful marketing is a product of carefully planned strategies. There are three common strategies used by businesses to market their products. Segmentation, which is to identify segments of the market not currently served and develop products to meet their needs. To be effective, the segment must be measurable, large enough to be profitable and reachable. Database marketing has refined segmentation strategies. Database marketing involves building files of computerized information on audience members then accessing the information as different needs warrant.

Positioning is presenting the product to consumers in a clear manner. Positioning builds on a clear identity or a brand in the marketplace and establishes differences from competitors. Positioning in the electronic media requires an objective analysis of many factors such as the market, the number of competitors and their marketing strategies and a thorough internal analysis of all areas of the station or the system operation. Now branding will differentiate products goods and services in the marketplace. In branding, both tangible and intangible values work together to create an image of a product in the minds of a consumer. To establish an effective brand, you must have factors such as the packaging, the name, the price, the method of distribution, all working together. Now, electronic media companies have moved away from simply selling advertising time to clients as competition for audiences has escalated, electronic media firms have recognized need to emphasize marketing in order to attract advertising dollars. So it’s helpful to learn the difference between sales and marketing.

Expanding selling to marketing means to maintain a competitive position where broadcasters are just to the intensifying competition and shift from a sales oriented to a marketing oriented philosophy. Media managers have to understand clients and their needs. Now, the major difference here is sales-oriented approach focuses on the product which would be advertising time, a marketing oriented approach is designed to help clients meet the goals and objectives of their businesses. In a traditional advertising scene for a television or radio station or a cable system, usually there is going to be a local sales staff with the goal of generating new advertising business. These sales people are known as account executives. How many on the local sales staff? It’s going to depend on the size of the market, in a major market like DC you may have 20 account executives and the smaller market, three maybe five. The account executive is a person who usually draws a higher salary. They receive a commission or a percentage of the advertising sales that they have. If you are an account executive you are preparing the sales presentations. You probably have that on your hard drive. You just have to email it or assemble it and then email it to the client or perhaps, provide paper.

Once you have a client under contract you provide service to that existing client and that can include updating the commercial, updating the commercial plan. Sometimes you will assist in preparing the advertising copy and that could be not only the video, but also the audio of a spot. You may be wondering how does an account executive get paid for their job. Well, there is usually four different ways an advertising account executive receives remuneration. Usually it is going to be just commission, maybe 10 or 15 percent of every advertising contract that gets assigned. In certain cases, when an account executive is starting off their career, usually you get a set salary plus maybe five or a 10 percent commission on every contract that you sell. Many times there is going to be a draw on commission situation where you have to meet your advertising goal or your draw. Then after meeting that draw, you get a certain percentage of the advertising contract that you receive. I will give you an example, we will make it smaller numbers. Let us say, you have to sell $1000 in advertising per month as your goal. But $1000 would be your draw. So let’s say you sell $1200 in advertising in a month, you get the $1000 for salary plus maybe five, 10, 15 percent over that final $200 as commission. But what if you only sell $900 in advertising? Well, you still get $1000 in salary, but next month your draw and goes from $1000 to $1100 to make sure that you are at a normal level and then after $1100 in that next month, then you would get anything as far as five 10 or 15 percent commission based on any advertising dollars that you sell beyond that $1100. Then the next month you would go back to 1000. Rarely does an advertising sales department person gets a position where they are totally salaried. Many times it’s going to be a draw on commission or a straight commission situation of how an account executive is going to get paid. A business that understands the importance of marketing has two related goals for its account executives, to generate new customers or prospecting new accounts and to serve current customers or servicing existing accounts. Once you have a new advertiser on board, it’s important to continue to serve them as far as whatever advertising content that they would desire.

Sometimes it’s going to start with contacting clients, either through cold calling, just calling on the phone to ask for an interview, that usually works in one out of every 10 situations. A new account executive might get an established list to establish some sort of salary per month, sometimes you can get a lead on an advertiser by listening to other stations or viewing other businesses advertising in a publication or online. Sometimes just driving around in the town that you are serving as an account executive, you can find a new business opening, and perhaps market your station to these folks. As it says here, selling advertising is one of the most challenging professions in media because there’s a lot of clients that are just going to reject you outright. They don’t think they need advertising in media. What are some of the positives to becoming an account executive? You do have that job flexibility where you can make your own hours. If you want to work 10 hours a day for four days a week, sometimes you can do that. You can also work from home and you do have potential to earn high five figures, sometimes six figures.

The cons are these listed here, an uncertain paycheck that can change from month to month depending on how much advertising revenue that you generate. There’s going to be a lot of rejection so you must have some thick skin and understand that you did your best try to woo some advertising dollars out of client. But sometimes you’re going to have a lot of negative stuff thrown at your face. Just remember that you must believe in your product, you must believe that this advertising you are offering a client is going to be in the best interests of that client. So you need to know your product or your station and your advertising packages inside and out. Understand your competition or what advertising or promotion aspects they have, which you’re always going to have width you ready to go media kit to explain your stations content to the client. Have a contract ready because they may be wanting to buy advertising at that moment, of course have a pen to go with the contract, some kind of a calculator, and develop a lot of confidence in yourself and the station and the products you are marketing. From my experience working in media and advertising, I think the most important advertising tip that have would be this one, advertising is not about products, it’s about the benefits that people get from the product. What the client wants is more revenue from whatever they’re trying to sell.

The advertising that you are offering is hopefully going to be the catalyst to help them reach their goals. Just think about it this way, people don’t want a bar of soap, they want clean hands. They do want the bar of soap, but the goal is to have clean hands. The advertising you can offer is the soap and hopefully with effective advertising, the client gets clean hands. What are some of the best ways to convince a client who may be on the fence as to whether or not to advertise? You’d want to deflect any type of resistance. If they offer some kind of negative aspect, try and turn it into some kind of a positive. You want to learn as much as you can about that client or customer, find out as much as you can about their business, their history, what products sell best. So you can talk to the client one-on-one as an informed account executive. You always have to stress value for what this client is receiving. The advertising that you’re going to offer, whatever form, whatever platform it is, is going to help this customer grow their business. Pointing out humor in yourself, sometimes it’s going to ease the tension in the some advertising or marketing meeting. If you pointed at yourself, which just means poking fun of yourself, that can lessen the stress in the situation. Never get desperate to try and sell advertising to a client who may not need the advertising products that you’re offering just to meet your sales goals.

Remember, you’re working for the client. Always remember the power of three, the listener, the viewer needs to see or hear that advertisement at least three times in order to act upon it. So when you are developing an advertising package, it’s always good to remember how can we get that message out at least three times a day or whatever type of contract you set up, so the customer will remember the message that the client is creating. The amount of advertising is limited to the amount of time available to broadcast all ads, and in this slide, we’re going to identify the definitions of what the advertising is. In radio, the amount of time available for advertising is referred to as inventory. Then we get to TV and cable, and the term availabilities is used to refer to the amount of time available for advertising, and sometimes those terms are interchangeable between radio, and television, and cable. But in general, those are the definitions that we have for the amount of advertising in the different traditional platforms. Regarding availabilities in television, several factors make it much more of a variable, the number of available spots or commercials varies according to the day part. In other words, the more viewers the more the cost of the ad. TV spots are usually tied to ratings performance, station guarantees that a certain estimated part of the audience will see the program.

If that estimate is not realized, the station usually provides makegoods or free ads for the client. The reliance on barter that was determined when the program was acquired, sometimes has an effect on the availability of television spots. Barter is going to be simply a trade of air time for goods and services for the station. So barter sometimes will limit the available inventory or availability of television spot time. In cable TV, the inventory is going to be more limited. Local cable advertising is usually confined to one to three minutes per hour. Sometimes you will see local advertisements mixed into a commercial break for a national cable network, that means that you have back at the cable system and advertising account executive selling that local time to local clients. A cable system selling advertising will either employ a local marketing staff or they’ll outsource the advertising sales to a company it specializes in marketing insertion advertising to local businesses. Sometimes it’ll use interconnects to increase advertiser effect in this, by offering the efficiency of a multiple system purchase and save time by using only one contract. A good example locally would be Cox Communications. Cox could sell interconnects where a client can buy multiple systems around Northern Virginia in Monasticism, and Falls church, and Fairfax, and Arlington, and Alexandria, and the company can use interconnects and have the advertising contract just with a few pages. Here’s an example of how a cable insertion advertisement works. Here’s a video of a cable network with its programming, then you’ll see a couple of ads that are locally sold by that cable system. During that technology, the local ads are placed over whatever network content there is at that moment. Then the network content returns after the local ads are complete.

One of the most important aspects of your job is to offer co-op advertising for clients. Co-op advertising is another category of advertising revenue available for electronic media. In co-op advertising, the manufacturer shares in the advertising cost with a local retailer. It might be a situation where the manufacturer will pay 50 percent of the advertising for a local retailer and the local retailer picking up the balance of the advertising cost. In that case, the local retailer gets 50 percent more advertising opportunity. The money available for co-op depends on an amount of accruals or the dollars credit for advertising for each retailer. Let’s take a look at a video which not only gives you an example of what a co-op advertisement would look like, but different situations of co-op advertising for a client including some digital options.

ABOUT THE INDUSTRY

The purpose of the marketing industry is to communicate companies’ offerings to consumers, clients, and the general public. Marketing professionals bridge the gap between companies and their customers. The American Marketing Association defines marketing as “the activity, institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Marketing companies employ consultants who advise businesses on ways to improve their marketing tactics, with the goal of understanding what customers want, giving them what they want, and increasing profits. Businesses may hire marketing professionals to conduct marketing and sales research (e.g., public opinion polls, surveys, etc.), sales forecasting, developing marketing objectives and policies, developing and pricing new products, and for other assistance in improving and enhancing their business operations. Governments, educational, religious, social service, and nonprofit organizations hire marketing specialists to help them manage their products and services and promote their brands.

The types of jobs in the marketing industry include marketing managers, market research analysts, and marketing specialists. Marketing professionals may work in-house with companies on a full-time basis or they may be hired as independent consultants. The Department of Labor reported that there were 192,890 marketing managers employed in the United States in May 2015. Other business areas that the marketing industry works closely with include brand and product management and development, advertising, promotions, public relations, and media relations.

Many top marketing companies have global offices that offer a variety of services, making it easier for clients to have more aspects of their projects completed by one company instead of contracting with different companies for different services. Clients often prefer agencies with full-service branding and marketing communications services. The types of services marketing agencies offer include analytics, such as studying data after an advertising campaign is completed to see where improvements can be made, and media research, for traditional, digital, social media, and search engine marketing. Full-service marketing agencies may also offer public relations and social media research and strategy, as well as production and creative services, and consumer research, and brand development. All of these services are done in an effort to improve connections with the customers and boost sales.

The marketing industry is a relatively young industry. It began in the early 1900s, when scholars started to study the relationship between sellers and buyers. By the 1950s, competition between companies was keen. The common tactic of selling as much product as possible without considering what customers wanted had saturated the market. Companies wanted to streamline their sales process and make their sales transactions more efficient and effective, so they started to take buyers into account.

Reasons to choose Augmented and Virtual Reality for Marketing and Advertising Industry

Emotional Connection

Augmented reality ads are immersive, which means they help marketers create a certain emotional connection with customers. Unlike images or banners, for example, AR ads are interactive and lifelike: consumers can see and even interact with them.

Imagine, for instance, an eye-catching billboard advertising a just-released movie. Now think of the magic AR can do: passers-by point their smartphone cameras at the billboard and watch the trailer on their smartphone screens. Which of these two strategies (a billboard or an AR ad) is likely to incite more interest? No doubt, most customers will opt for an AR ad.

Interacting with AR ads, consumers feel like they’re playing an engaging video game. This builds an emotional connection with customers, encouraging them to make purchases. Needless to say, an emotional connection is a great tool for increasing brand awareness. People better recall brands they have positive associations with, so AR ads are perfect not only for promoting sales, but also for building a company’s reputation.

This strategy was used in the Arctic Home Campaign by Coca-Cola and the World-Wide Fund. The campaign, aimed at the protection of polar bears and their natural habitat, included an augmented reality event at the Science Museum in London. Visitors could see themselves interacting with virtual animals in their natural environment. This event helped the Coca-Cola company create deep emotional connections between people and the brand.

Storytelling

Augmented reality offers the opportunity to deepen the digital storytelling experience. A new path that leads away from the abstract depiction of objects on a flat screen towards a more visceral sense of real life scale and physicality. Here we must pause to mention that in virtual reality, where viewers are immersed in a virtual world, also has powerful storytelling capabilities. Both AR and VR can make characters come alive. In VR you live in their world, while in AR can characters step out of the screen into your world.

AR has the potential to be as disruptive as TV. Not only as a new technology but a whole new medium which will develop its own conventions because the audience is no longer a passive recipient of a story when watching it on the screen. They become active participants – interacting with it through the screen. It’s powerful, as this kind of engagement elicits more emotions and will leave a longer lasting impression.

Media companies including The New York Times and Washington Post are exploring the potential of augmented reality to add value to news reporting. To help to satisfy the craving of audiences to get closer to the story. They understand that despite all the camera angles, watching sports on TV creates an experience where you are “passively cocooned on the couch as a mere spectator to miniaturized athletes squeezed through a two-dimensional plane. Their Olympians AR feature stories try to break this mold encouraging viewers to actively engaging by walking around the life-sized athletes suspended in action or see athletes’ race across the table.

A different approach to AR storytelling is taken by Quartz, illustrating text-based stories with augmented objects. The 3D object is not trying to tell the whole story itself, but is replacing flat photos and videos as a more impactful visual communication tool. Providing additional context to the news story told through text. John Keefe from Quartz stated that two-thirds of people who are presented with the possibility of seeing something in AR will do so. Indicating a desire of readers to get closer to the story.

Put Products in the Hands of the User

“Try before you buy” was the axiom of offline. “Free returns” the conversion mantra of online. Neither is as powerful as product visualization in AR.

IKEA perfectly incorporates AR into their marketing strategy in a way that solves a real problem. You can understand how a piece of furniture, in the exact proportions, will look like in your own home. Allowing customers to test the product as they would already own it, reducing returns and regrets.And IKEA is not alone.

WayFair (via their app) and Target (via their mobile site) have both integrated AR into their digital catalogs. Amazon (via their app) has also begun to offer preview-in-place functionality on thousands of items. But it’s not just big retailers exploring AR product visualization.

With Art.com people can preview over 2 million pieces of art and customize the frame through AR. Similarly, Dulux allows to visualize what color to paint your walls.Each of these is a practical use case where augmented reality adds significant value to the experience. With AR, you are changing the current visual state of a space.

To see something is more impactful than just trying to visualize it in your own mind. It’s a powerful trigger for that “have to have it moment.” Not only making the decision easier, but making shopping more personalized and fun. The key challenge is how to let customers know you have the option of virtual try on. Including an AR component in your existing app is one proven method. But you can get more creative. Stockless pop-up stores with images as markers, billboards, magazine ads – each of these is an opportunity to trigger an augmented version of the product. Such a strategy may have given Lacoste’s AR virtual try-on experience more reach than the 15,000 users they achieved via their app.Virtual try-before-you-buy, to show products in the context of how they will actually be used, are ideal ground-level use cases for how marketers can use AR .In other marketing channels, there is a much-boarded gap between the experience and the product. What’s more, the scope of the channel often requires generalized messaging.

Focus User Attention

So far, we have focused on augmented reality experiences that add objects to the real world. But there is just as much opportunity in using AR to help consumers focus on specific items that would otherwise be lost in the array of visual clutter.

Let’s take the situation of shopping in a supermarket. What I don’t mean by focusing user attention is some dystopian shopping experience where you’re bombarded by special offers.By focusing user attention, I mean truly useful applications for an easier in-store experience. Package design in recent years hasn’t made nutritional information easily accessible.Rather than staring at small print labels or Googling it for every individual product, why not utilize AR to highlighting food that fits my dietary requirements, be that without nuts, or gluten-free or low calorie?

Similar selection bias could be utilized when trying to find the right bus in a new city, looking for a dog friendly cafe nearby or identifying the most relevant contacts at a networking event.

VR and AR Marketing Examples in Different Industries

Even though VR and AR are both still quite new in marketing, there are some re-occurring strategies that seem to be popular with certain products and services. I’ll go through some of the more common ones, but at the same time it’s good to remember that there are no one right way of doing things. With enough imagination and modification, all these strategies can be used to market just about anything.

Sports Industry

Starting from the sports industry, many fitness centres are offering 360-degree tours on YouTube to show off their venue to potential customers. This makes it possible to get to know the gym from home and see if it has the space and everything the customer would need and want from their gym.

What we’ll also see more is people exercising in VR through simulators and gamification. A company called VirZOOM is selling exercise bikes with handlebar buttons for game controls, so you can play VR cycling games while you exercise. In games like car racing and tank battling for example, the only way to move your “car” or “tank” is by cycling. (TechCrunch, 2017.) This kind of modern VR exercising is great news for marketers, if they’re able to do some digital product placement in the VR apps, where the user will not be able to miss it. Live stream sports events will also come available for everyone through VR, and it will come with the various views to see the game. You could be watching the game from the best seats, or from the “eyes” of the goal keeper for example. VR can also be used to give the viewer a sneak peek to what a game day experience would be like in the premium club, or to give special behind-the-scenes access that would not otherwise be possible.

Live stream sports events will also come available for everyone through VR, and it will come with the various views to see the game. You could be watching the game from the best seats, or from the “eyes” of the goal keeper for example. VR can also be used to give the viewer a sneak peek to what a game day experience would be like in the premium club, or to give special behind-the-scenes access that would not otherwise be possible.

Food Industry

Some of the biggest challenges for the food industry are spreading knowledge of their products and ingredients, and for restaurants it would be to attract more regular customers. Food manufacturers and grocery stores focus a lot on visual content, so I’m sure VR and AR will come in very handy, especially once the graphics reach their maximum potential. To make regular customers, you need to offer something that makes it beneficial and/or interesting for the customer to keep coming back. This is usually done with offering discounts, or by organizing events of some sort.

Food and beverage manufacturers have started using VR to share their brand message through immersive storytelling. A French cheese manufacturer Boursin takes the viewer into a VR fridge tour to show which foods work well with the cheese. And a premium tequila brand Patrón shows the viewer the entire manufacturing process in VR through the eyes of a bee, starting from the very beginning with the pollination of the blue agave plant, from which tequila is made of. (Food Navigator 2017.) Marketing through VR storytelling seem to be very popular right now, as [image: Image result for patron ar vr]it’s more immersive than AR. After VR headsets hit the mainstream in a more mobile and compact way, we might see more of this kind of marketing.

Another clever marketing trick was done during the Pokémon GO boom in the summer of 2016, but which can still work if you manage to keep up with the game’s newest updates. What the smart restaurant and cafeteria owners and the like would do, assuming they have a PokéStop near their venue, is create a PoGo account, and use that account to buy “lures”, and then use those lures on their closest PokéStop, to attract hungry/thirsty PoGo players. One lure lasts for 30 minutes, and random pokémons will spawnnear that PokéStop during that time. If the player knows that the lure will be on for longer than 30 minutes, they might as well take a break at the coffee shop/restaurant and eat or drink something while playing the game at the same time. Now, since the biggest boom is over, it would make more sense to wait until there are certain events taking place in the game, before taking advantage of PoGo marketing. For example, many of the not-so-active players become more active again during double-exp, or double-candy events, when you get double experience points and loot from the pokémons you catch during the event. These events last for a week or so, and this is when you should be using your lures to attract customers. Also, during some of the events, the lures will last for an hour instead of 30 minutes, so it makes even more sense to use them to your advantage. Another perfect time for lures is when new pokémons are added to the game. That is also when players get very active again, and will hang out near lures. I’ve played Pokémon GO since it came out, and have personally seen how many people simple events can attract to certain locations. It is also interesting, how international players visiting Finland, occasionally join Finnish PokémonGo Facebook groups just to ask which are the best locations to play. Patron VR Marketing

Automotive Industry

Buying a car can be a very big investment, so customers will want to be very convinced of their choice before purchasing. Sellers job is to make this easy for them, by offering tools and ways to compare their options. This is why the automotive industry has been all over AR lately. Volvo promoted its S60 model by creating an AR experience on YouTube, where the users could drive a virtual car by tilting their smartphone left and right. Volvo said there was an outstanding traffic increase of 293% to volvocars.com. (CommsCo 2016.)

AR has also been used in letting potential consumers personalize and build their own cars. Jeep dealership visitors are given tablets with an app that lets them explore the Compass car via 360-degree camera options. They can change the cars’ external colors and go through different wheel options, and also open car doors to check out detailed interiors. (Marketing Week, 2017.)

Other cool and useful AR creations in the automotive industry are AR manuals, which help the user with car maintenance and by introducing different car parts to the user through an AR app. Hyundai made an app called the Virtual Guide, which does just that. By using the app to get an AR view of the interior of the car or the engine compartment, floating little dots will appear on the screen showing all points of interest in that view. Tapping one of the dots will give the user an illustrated, step-by-step walkthrough on how that exact maintenance item works. Inside the car, it would give tutorials on how certain functions, like pairing a cell phone with Bluetooth is done. (The Verge 2016.

Entertainment Industry

The VR/AR consumer market in entertainment was the first to develop and is believed to grow to 216 million users by 2025 (Goldman Sachs 2016). For the entertainment industry, both VR and AR can help with creating memorable experiences for their audience. I believe VR and AR has worked best in the entertainment industry, because these technologies alone are a type of entertainment, so it’s quite easy to come up with ways to implement them in the game, movie and music industry for example.

VR and AR have worked perfectly in the game industry and especially VR has taken gaming into a completely different level. The gaming experience intensifies as the player becomes more immersed in the game. Instead of sitting in front of a screen, players are now able to play games while moving around. This is also being improved as developers and engineers try to create a dreadmill-type of equipment for players, where they can safely run and walk around while wearing their headset, without the fear of running into a wall or knocking things over.

In April 2017, Gorillaz, a British virtual band, made a VR music video for YouTube and it got over 3 million views in the first 48 hours. The famous singer Björk also made a cool VR music video setting the viewer in a magical underwater world. With this kind of immersion, viewers get a chance to really become a part of the story. The entertainment industry knows that people are craving for adventure, and it has started to use VR and AR to give people what they want. (ViarBox 2017.)

A number of movie theatres have experimented AR marketing with apps that work by scanning movie posters in the theatre lobby or movie ads on magazines. The AR app then brings up information like a trailer and premiere date, and also serves as a jumping point to buy tickets or visit the movies’ website. (AppReal 2017.) Adding AR elements especially into posters lobbies and bus stops is a brilliant idea, as people tend to already have their smartphones in hand when they’re bored and waiting for something or someone.

Musicians today are mainly earning their living from concerts and merchandise (ViarBox 2017). Soon VR will be used to stream live 360-degree events, like concerts and theatrical performances, as it solves the issue of limited seating and makes events available to anyone anywhere. Watching an event in VR will make the user feel like they’re physically there with the best seat available. (GoldmanSachs 2016).

Architecture & Interior design

AR and VR are making life so much easier for architects, home buyers and interior designers as well as furniture stores. For example, Ikea has an AR application called Ikea Place with over 2000 products that the customer can place in his or her own home to see if the proportions of the products and furniture are correct, and if they match with the existing furniture and décor of that room. To see if an armchair fit in your living room, you just hold up your phone and use the camera to place the digital chair to wherever you want to put it in the room. This 3D furniture shows up at scale with 98% accuracy. (Wired 2017). This saves the customer the time of measuring rooms and spaces, as well as helps them choose the right products and colours for a visually pleasing interior. Home buyers can visit houses virtually from anywhere at any time. This will mean less travel expenses and time spent on going out to look at houses. Sellers and agents can sell homes faster when they can focus on marketing houses to only people who are really interested, instead of also to those who do not find the house worthy of consideration. (Forbes 2017). It’s quite likely this will be a very requested feature if not a requirement for the real estate agencies in the future.

Promising software tools have been developed for architects who’d prefer to visualize, create and edit their 3D models and plans in virtual reality. The advantage of moving from 2D design drawing and floor plants to a 3D environment makes communication between designers, clients and end users easier and more meaningful. This will allow clients and end users to recognize challenges and opportunities as they can better visualize the final product. Another interesting feature you can use with VR models is simulations. For example, if the client would like to know how well the designed hospital can be evacuated in case of a hurricane, it’s possible to run evacuation simulations on the VR model to see what kind of destruction the wind and rain can cause. (ArchDaily 2018).

Innovative examples of some major marketing and PR initiatives using AR and VR

New York Times

There’s no doubt that VR is a great medium to tell a visual story. A couple of years ago, the New York Times delivered Google Cardboard glasses to all of their subscribers in order to watch a VR film and then did it a few times over with different films. These glasses were only delivered to their most loyal customers, so they essentially acted as an incentive or reward for brand loyalty.The films specifically appealed to intellectuals and philanthropists that are likely to grace the list of the NYT’s audience: Seeking Pluto’s Frigid Heart offered the space-obsessed an opportunity to investigate the planet up-close and personal, and a documentary entitled The Displaced offered an intimate glimpse of the ways in which kids all over the world have been displaced by war.The emotional intensity that this experience provided viewers would have reinforced brand loyalty for all three of the products: the glasses, the New York Times, and the featured films.

The Outdoor Niche

The well-regarded hiking shoe brand Merrell created a unique experience as a part of launching their most innovative hiking shoe via TrailScape, a 4-D multisensory hiking experience. This was the first time a company had ever used a particular type of technology called Oculus Rift, which involves tactile elements of walking on different surfaces and even included obstacles such as rockslides that participants would have to navigate around.

This film premiered at the Sundance festival, which added another marketing element, which is cross-promoting outdoor gear with film. This was a completely immersive experience, which was no-doubt something that participants would remember for a long time.

The North Face did something similar by offering participants an opportunity to hike through Yosemite National Park as well as Nepal. This type of immersive experience is brilliant for such a specialized market. People were able to feel what it was like to explore, thus motivating them to actually have a reason to buy the shoes—or, of course, something similar in the Merrell brand.

The Home Improvement Niche

Lowe’s home improvement store set up a virtual reality initiative that allows customers into a Holoroom to help them see what their house will look like after desired home improvements. They also worked with Microsoft to create an experience that allowed customers to select designs and products to help them visualize what they might look like in their own homes. Soon to come is an integration of customer’s Pinterest boards.

The benefit of these types of initiatives is that the VR system is gathering customer data as a part of market research and this is incredibly valuable data to guide a marketing strategy.

IKEA also has a VR-based app that allows customers to “place” furniture into their homes to decide on the look, feel, and fit. This is probably one of the simplest, most accessible and most practical VR applications that we’ve seen to date.

Travel

A few years ago, Thomas Cook, a UK-based travel agency tried out a campaign that allowed travel agents to experience certain trips in order to promote them to clients, called “Try Before You Fly.” Although this particular campaign didn’t necessarily take off, it’s a prime example of the ways that we can use VR marketing through both the B2B and B2C tourism spheres. This is a growing trend today as many companies are not only advertising the tourism bit, but also accommodations are able to share an up-close experience of what it feels like to stay in their spaces.

Toms Shoes

Toms is a shoe company that’s known for their philanthropy. They give away a pair of shoes for every one that is purchased. Their ingenious VR tool was to create an experience of a giving trip where they would go to Peru and gift someone a shoe. They set this up in-store for customers to experience. This is a great example of using VR to appeal to touch into an emotional, feelings-based marketing campaign, which can be the most effective way of selling a product at the best of times.

McDonald’s Happy Goggles

Leave it to the biggest fast food company in the world to introduce a simplified VR experience that’s completely accessible to the under-12 set. McDonald’s has managed to create a Happy Meal Box that easily folds into a VR headset. The initiative was created based on Google Cardboard, which is their own slant on offering VR experiences to people in a simple, affordable format. The boxes even came with instructions on how to build their own at home.

In offering consumers an opportunity to build their own, as well as making it easy enough for kids to use, McDonald’s has paved the way, at least in one example, for this technology to be available to the masses as a simple, fun tool rather than a high-tech, ungraspable investment. It’s also a wonderful example of repurposing.

Volvo Test Drive

Possibly one of the best applications of VR is using it to test drive a car when you don’t have a dealership nearby, and that’s exactly what Volvo did a few years ago. They continue to come out with updated versions that are easily downloadable onto your mobile phone. This is another Google Cardboard initiative, which is also available as a downloadable app (even if you don’t have Google Cardboard).

This is a brilliant marketing move because, not only has it put Volvo on the map (again) for something innovative, it’s also accessible. They’re now offering a “weekend escape” version of the app which includes 360-degree landscapes, allowing adventurers a chance to cement the pairing of “adventure” and “Volvo” in their heads, something which, given the practical element of Volvo’s branding, may never have occurred before.

Introduction

This report provides information about the integrated marketing plan to Sheffield City Council to improve tourism and help the local economy.

First of all, it is important to understand the concept “Integrated Marketing Communications”. What is Integrated Marketing Communications (IMC)? It could be explained as the mixture of all the promotional tools. Semenik explains that it is “using all communications tools in a unified way to create synergy” (Semenik, 2002).

Whereas, Egan describes that “IMC is a strategic business practice used to plan, develop, execute and evaluate, co-ordinated, measurable, persuasive brand communications programmes over time with consumers, customers, prospects and other targeted relevant external and internal audiences” (Egan, 2015 p.295).

To summarize, IMC is a simple and effective way to reach the audience (potential consumers) and help them move through the various phases of purchase. IMC is consist of different marketing communications tools such as advertising, social media, direct marketing, public relations, sales promotion, exhibitions, mobile or digital communications and personal selling. All these tools help to deliver different benefits to raise the profile of Sheffield as a tourism destination and to increase tourism annually. This could be an effective way to boost sales and profits within Sheffield to have a positive impact on the Sheffield’s local economy.

The model SOSTAC invented by PR Smith in 1990s, helps to make marketing strategies and improve the marketing plans. SOSTAC stands for Situation, Objectives, Strategy, Tactics, Action and Control. This is a smart model to analyse the current situation of Sheffield in order to come up with the best solutions to fulfil the main objective of Sheffield City Council.

Definition of advertising in IMC

The chosen marketing tool for this report is advertising. To start with, how to define the advertising? Some dictionaries, advertising agencies and authors explain this notion in different aspects. Oxford Dictionary published that advertising is “to describe or draw attention to (a product, service, or event) in a public medium in order to promote sales or attendance” (Oxford Dictionary, 2016). On the other hand, Jobber includes the financial aspect in his definition “any paid form of non-personal communication of ideas or products in the prime media” is called advertising (Jobber, 2012). One of the well-known advertising agency “Ogilvy & Mather Advertising Agency” explained that advertising is not only a form of art, the main objective for an advertising agency is to make the product interesting in order to make the public buy the product.

Moreover, the advertising media includes some classic and modern means of advertising such as magazine, newspaper, direct mail, radio, television, outdoor, online and product placement. All these different means could help to create awareness, correct misconceptions, increase sales and to introduce product or service.

An amazing and inspirational example of creating awareness and correcting misconceptions could be “Always : #LikeAGirl”. This commercial came out in 2015 and rapidly broke the stereotypes. They conveyed the message that girls are as strong and competent as boys especially during puberty, a stage of life which is important for Always. In addition, according to “campaign live”, they created a buzz all over internet and increased sales by 50%. In case of correcting Sheffield’s image and reinforcing tourism, advertising is the core ingredient to promote local events nationally.

Tycoon Marketing, who is responsible of marketing communications of Sheffield, they are planning to organise Carnival of North in May 2020. This event will take place in Sheffield and transform the Sheffield’s boring and dark image into exciting, colourful and family holiday destination. The smart objective is to increase Sheffield’s annual tourism numbers by 26% from 14.3m visitors to 18m for the year 2020.

Critical evaluation of advertising: strengths and weaknesses

The advertising is one of the oldest methods of marketing. It offers various benefits to businesses and consumers. But, at the same time, it faces different challenges in today’s modern world.

First of all, the major advantages of advertising are :

• Helps to target larger audience, some forms of advertising like billboards are available to the unlimited number of consumers anytime and anywhere.
• Provides information about the product. Many advertisements let us know the utility and describes the latest trend of new launching product.
• Raises the living standards of consumers. The advertising give awareness and when consumers use those products, it may raise their living standards. The best example of this advantage could be the technological products.

On the other, the advertising has some weaknesses which challenge its effectiveness and efficiency. Some of weaknesses are listed below :

• The advertising could be expensive. That is why, our TV screens are full of multinational company’s commercials and even billboards all around the cities are of famous and rich brands. Unfortunately, start-ups and small business couldn’t afford the price of the advertising.
• It could manipulates people’s choices and make them spend more than their budget. Nowadays, the main objective of advertising is to create desire. The consumers try to keep up the image shown in advertising, for example, going on a romantic trip in Paris, taking kids to Disneyland and eating out in Michelin restaurants. This is absolutely beneficial for the sellers but could impact the purchasing allowance of the buyer.
• Misleading affirmations about the products, the perfect example could be Kashi, a case was filed against the parent company Kellogg’s because they mentioned in their advertisements “all natural” cereal. Whereas, they had some preservatives which proved that they aren’t all natural cereal.

As discussed above, the advertising has an huge impact on our lives. The process is based on AIDA model (Awareness, Interest, Desire, Action). This model allows to understand different stages of purchase. This is an effective tool to help customers make a final decision of purchase.

But, to be more persuasive and credible, the advertising agencies are also focusing on emotional and rational advertising. Naresh Malhotra explains in his book “Review of Marketing Research” the proposition of Copeland (1924). They agreed on the fact that individuals buy the product for emotional or rational reasons.

Rational advertising is basically appealing to the reason. It focus on factual benefits of the product or service by relying on statistics, demographics and facts. One of the most famous toothpaste brand Sensodyne claims that “9 out 10 dentists recommend Sensodyne”.

However, emotional advertising plays with the heartstrings of the potential customers. It’s aim is to convey the message that how this product or service will make users feel. Let’s take an example of Coca Cola’s “Choose Happiness” campaign in 2015, it motivated people to share happy moments and memories with their loved ones during summer. It encourage the consumers to make a coke a part of their happy moments and it obviously increased the sales by 40% and had a positive impact on the brand’s image.

Recommendations: How to measure the success of advertising

Advertising is expensive and some companies are often frustrated by the outcome. It is extremely important to measure the effectiveness of advertising. Brand awareness could be the starting point of measurement, more people know about the brand, more the advertising is effective. But, how can we get the exact statistics?

The six principles of Cialdini allows to understand the influences of advertising on the public. The fourth principle is consistency, it shows that how the message builds and leaves an impact on the society. The hashtags (#) are the most powerful tool as they connects classic advertising and social media. The campaign of Always #LikeAGirl changed the perceptions of society and Always measured its effectiveness by analysing that in first 3 months, there were 177,000 #LikeAGirl tweets. For creating a buzz about the Sheffield, Tycoon Marketing is aiming around 300,000 mentions through our social media campaign via the twitter account and the hashtag #ReviveSheffield.

In addition, since the introduction of QR codes, the potential customers could connect to the company’s websites directly within a click. The advertisers are using QR codes on posters, billboards, commercials to allow curious customers have a look on their website. This may persuade them to purchase the item. Sheffield City Council could have QR codes on their poster and billboards to make easier for the public to buy tickets for their Carnival of North.

Another metric which could be helpful is data gathering questions. During the purchase, the company could ask quick and short questions to understand it’s targeted audience. It will let the company how the buyer reached the product or service. In this way, they can evaluate the effectiveness of each IMC tool and to cover up the weak points of the advertising.

Finally, measurement of success for audience size: Audience size (number of followers), Share of voice (Total engagements/your engagements = SOV) uses analytical tool to show the brand mentions. This is the smartest way to compare the IMC tools with its competitors and how to offer a better and different marketing strategies to compete in the advertising world.

Critical evaluation of Advertising: budgets and schedules OF Carnival of north

The advertising has usually a free access to a large number of public. The companies and advertising agencies should follow and respect laws and regulations described by the government of UK. The advertising should have an accurate description of the product or service, legal, decent, truthful, honest and socially responsible.

Indeed, advertising requires a significant investment. Sheffield City Council have a budget of £280,000. The advertising of Carnival of North represents around 70% of the budget. Tycoon Marketing is planning to invest in TV advertisements, radio advertisements, billboards, newspaper, magazine and posters. Most importantly, the event will be promoted on a local, regional as well as national level to maximize the number of visitors. At the beginning, this seems a huge investment but Tycoon Marketing have a vision of long term. This event will leave a legacy and will be held every year. All this investment will be surely compensated in couple of years.

As the event is scheduled in May 2020, the advertising will take place from December. Radio advertisement on BBC radio 1,2 ad 3 due to their listeners being our main target audience. This will allow us to specifically target our demographic. At the same time, on December 1st our advertisement will be in the national newspaper, The Telegraph and a local newspaper called The Yorkshire Post. The newspaper advertisement along with the radio advertisement will allow to create event awareness in the publics minds. Moving into February, the Billboards will be assembled in all 5 major northern cities : Newcastle, Leeds, York, Manchester and Sheffield. Tycoon Marketing have decided to assemble these 4 months prior to the carnival.

Within the month of March, a 30 second will be feature on good morning Britain to reach the target segment. This will be aired up until the carnival.

All these different means of advertising will be beneficial for the client Sheffield City Council, this will not only advertise the carnival but will show the positive and exciting image of Sheffield.

Conclusion

The advertising is considered as one of the oldest tool of marketing communications. With the passage of time, it has evolved significantly. Nowadays, the artificial intelligence is taking over the human brains. In this case, the future of advertising could be more intelligent. The advertising agencies will use the artificial intelligence to automate the classic manual methods. This will no doubt increase the effectiveness but could be dangerous for some jobs within the agencies. The advertiser are trying to find the balance between the human creativity and artificial intelligence.

Advertising is facing some serious challenges and companies are shifting towards to digital and smartphone marketing. They are planning to invest more in new methods of marketing communications to target mostly the young generation. TV and radio are outdating and this is neglecting the classic advertising.

To conclude, one important thing to keep in mind is that any advertising done right : will be a huge win for a buyer and seller.

References

Books

1. Advertising : The Benefits & Challenges, Smith & Ze Zook (2016), Pickton & Broderick (2005)
2. Egan, J, (2015) Marketing Communications, Chapter 15 Integrated Marketing Communications p.294-304
3. Naresh K. Malhotra, (2007), Review of Marketing Research, Volume 3, p.4, lines 5-8
4. Smith, P., & Zook, Z. (2016). Marketing communications : Offline and online integration, engagement and analytics. SOSTAC plan, p.6

Journal Articles

1. Case Study : Always #LikeAGirl, Campaignlive.co.uk https://www.campaignlive.co.uk/article/case-study-always-likeagirl/1366870
2. An international analysis of emotional and rational appeals in services vs goods advertising, Journal of Consumer Marketing, Vol 16, No 1 https://www.emeraldinsight.com/doi/full/10.1108/07363769910250769
3. Examples of Different Advertising Appeals, Yourbusiness.azcentral.com https://yourbusiness.azcentral.com/examples-different-advertising-appeals-12556.html
4. Giselle Abramovich, September 19, 2018, Experts Weigh In On The Future Of Advertising https://www.cmo.com/features/articles/2018/6/14/welcome-to-the-future-of-advertising-cannes18.html/
5. Integrated Marketing Communications – Multimedia Marketing http://multimediamarketing.com/mkc/marketingcommunications/
6. Julia Cupman, 4 “Must Measures” to gauge advertising effectiveness”, November 28, 2016 https://www.cmo.com/opinion/articles/2016/10/28/four-critical-success-factors-for-advertising-effectiveness.html#gs.4kwoos
7. Kliatchko, J. (2005). Towards a new definition of integrated marketing communications (IMC). International Journal of Advertising, 24(1), 7-34
8. Lindsay Kolowich, “The 17 Best Advertisements of All Time”, Blog.hubspot.com, https://blog.hubspot.com/marketing/best-advertisements
9. Marketing and advertising : the law, Gou.uk https://www.gov.uk/marketing-advertising-law
10. SOSTAC Marketing Planning Model Guide, Smart Insights, https://www.smartinsights.com/digital-marketing-strategy/sostac-model/
11. Teresa Machan, Is Sheffield Britain’s most underrated city break destination?, The Telegraph https://www.telegraph.co.uk/travel/destinations/europe/unitedkingdom/england/yorkshire/sheffield/articles/Is-Sheffield-Britains-most-underrated-city-break-destination/
12. The advantages and disadvantages of Advertisement, Padlet https://padlet.com/chuiwan106/c0arfsqml2sq
13. The AIDA Model, Smart Insights https://www.smartinsights.com/traffic-building-strategy/offer-and-message-development/aida-model/
14. The 6 Principles of Persuasion by Dr. Robert Cialdini, Influence at Work, https://www.influenceatwork.com/principles-of-persuasion/
15. The Future of Advertising, Accenture.com, https://www.accenture.com/us-en/~/media/Accenture/next-gen/pulse-of-media/pdf/Accenture-Future-Of-Advertising-POV.pdf
16. 10 Disadvantages and Limitations of Advertising, ToughNickel https://toughnickel.com/industries/DISADVANTAGES-OF-ADVERTISING

Abstract

From the exacting promoting viewpoint, the business division structure in India is dichotomous having natural and urban markets. Anyway various don’t concur with this point of view as they battle that purchaser all around is a client and thus their requirements, desires, feelings moreover attitude will similarly be the equivalent. However, the condition is with the end goal that, there must be independent elevating techniques to be especially made to suit the nation’s provincial and urban business direct.

Presently, provincial markets have developed as significant piece of worldwide market which is difficult to disregard. The negative impact of all the late money related emergency with respect to urban India has been more than balance by engaging execution in country India. To investigate and fathom country business area is huge for any advertisers today. Rustic business is like goldmine with package of difficulties. This needs to design a sufficiently sketched out strategy to feel the beat of the nation customers and to deal with the mysterious country business. Various associations go to provincial markets, still to make benefit, not to direct them or help or make rustic purchasers. The nation advertisers must think provincial for long stretch achievement as opposed to transient advantage. In this setting this paper features the distinctions in provincial and urban promoting methodologies to be executed by various organizations marketing strategies to be implemented by different companies.

Introduction

Country India represents around 68% of the all out Indian populace. It additionally represents 56% of the national salary, 64% of the all out consumption and 33% of the all out national reserve funds. Country economy has moved from agribusiness centered to more non-horticultural exercises. This has brought about expanding salary levels and rising training. Likewise, with immersing urban markets and rising pay levels, country India presents an immense open door for the organizations to grow their market. This market is anticipated to give a chance of US $100 billion in the following fifteen years for retail spending.3 These figures expressed present a shrewd picture for the advertisers to look to the provincial market to build their item deals. Dissimilar to the urban market which is all around served and serious, the provincial market is inadequately served and uncompetitive with not very many players in this market. This reality may appear to be worthwhile for the organizations to expand its entrance into the provincial market however just organizations which comprehend the changing desires and developing needs of the different sections of country purchasers will make the cut or rather hit the dead center.

Urban and provincial networks have truly had various socioeconomics, interests and openings. While the correspondences blast of the late twentieth century, most remarkably the approach of the Internet, is obscuring the lines to some degree, there are as yet expansive contrasts. These distinctions regularly require shifted showcasing techniques for organizations wishing to offer to the two markets.

Socioeconomics

The socioeconomics of provincial India is changing a piece as of late. Some hotel or diversion regions have seen a flood of new inhabitants whose preferences and segment profiles might be very not quite the same as their neighbors’ taste. In any case, provincial occupants despite everything will in general be more homogenous than their urban partners and will in general offer social and strict qualities. They are bound to be family with generally low salary and will in general get less cash-flow by and large. A promotion crusade focused on a country market would consequently essentially be not quite the same as one focused on a urban market. A country vehicle sales center, for instance, may pressure reasonableness and a believed brand over green innovation or new structure highlights, which may have more intrigue at a urban business.

Access

Rustic territories are far off from downtown areas; in this way, abhor the equivalent simple access to significant shopping settings that city occupants appreciate. A promoting plan focusing on rustic customers may depend on Internet deals or an organization with stores that are as of now serving the requirements of far off areas. Its message would be more outlandish isolated into various forms for various buyer subgroups. An advertising effort focused on urban buyers may should be broken into various parts to speak to the numerous differing bunches inside the promoting zone. It would likewise should be progressively strange or forceful to stand apart from the ocean of advertisements vieing for urban shoppers’ consideration

Literature Review

Research paper by Rithvika (Publishing India group, 2018) says that there are basically 4 “A’s” apart from 4 “P’s” that contribute to the rural marketing strategies. She mentioned acceptability, affordability, availability and awareness as the 4 key factors in the rural market. As the focus of this paper is on rural market, she emphasised on the affordability because of the lower family income in the rural areas. In the starting of the paper, other factors are also mentioned such as literacy level, which indicates that literacy level in rural areas is close to 69% as compared to 85% in the urban market due to which companies have to make them aware of the capability and functions of the product or service which they intend to sell. She also mentioned the importance of other factors such as their source of income which is mainly agricultural, communication and media, brand awareness, unexploited and untapped rural markets due to lack of small distribution channels and adoption of new brands.

In the paper by Mr. Prakash (Publishing India Group, 2017), research is done on effect of advertisements on consumers in rural market. It is depicted that the very goal of all advertisements is to influence peoples’ attitudes and buying behaviour and to succeed in marketing, the advertisers need to understand what makes people behave the way they do. Advertisements effectively use the information and knowledge gained from the behavioural sciences to motivate, modify or reinforce consumer perceptions, beliefs, attitudes and behaviour. To accomplish this, advertising people should be conscious of and monitor peoples’ attitude, values, likes and dislikes, habits and fears. It is shown through statistics that the price is the main factor in the rural market and affects the psychology of a rural consume the most.

Dr. Anubhuti Gupta through her research paper (IJMR, 2017), said that the rural market is growing in India in recent times due to several factors such as increase in population in rural areas which ultimately leads to rise in demand, inflow of foreign made goods in rural India, increase in awareness and literacy rate in India etc. major problems related to marketing in rural areas are also shown which include transportation and warehousing problems, channel management and sales plus workforce management. Various steps are also mentioned to boost the rural marketing which include some steps that are ought to be taken by the government such as improving the warehousing by not depending on private companies, communication and roads in rural areas.

Lidia Alexa through her research paper (Lidia, 2010) tries to explain the effect of globalization on urban marketing though she starts with the concept of destination marketing. She says that urban marketing is the alignment of the urban politics to the requirements of the local economic stakeholders and to the hopes and expectations of those operating outside of it. Summing up she mentioned urban marketing is a local response to the global economic and technological changes and the best practice models published in the marketing literature confirm certain trends which will begin to be replied more often by different cities.

Pramod Patil shows a comparative study of rural and urban population in his paper (Pramod, February 2017). He shows the trend of rise in urban and rural population through help of census conducted by government of India, expenditure comparison of rural and urban households. He stated that the changing environment is reducing gap between Indian rural and urban consumers but still a noticeable difference exists between socio-economic and cultural environment of both regions resulting in change in rural and urban consumers’ behaviour. A care should be taken by policy makers while designing marketing strategies for these regions.

Whereas Dr. Sanjay Aswale in his paper (Sanjay, 2013) has shown through statistics that the behaviour of rural and urban consumer is somewhat same by conducting a survey. He states that there is a wide opportunity for companies as there is not much deviation in the consumers behaviour in the rural areas and majority of the rural market is untapped and untouched by some giant companies.

Data Interpretation and Analysis

• Literacy trend in rural and urban India

As we can see in the above mentioned, the improvement of literacy rate of rural India is more than 2 times of the urban population. The rural urban literacy gap which was 21.2 percentage points in 2001, has come down to 16.1 percentage points in 2011.

Since there is no data available for the recent past as census is yet to happen in 2021, it can be concluded from the above data that the literacy rate of rural India is rising rapidly. There may come a time when literacy rate of rural India becomes equal to that of urban India or may even rise above.

This rise in above literacy rate of the rural consumer may will surely make it easier for the companies to spread their network as a major obstacle for the companies is the need to spread awareness about their product or service in the rural consumers’ mind. In general, companies apply a different market strategy to cover all sectors of the population which is hectic due to diverse population of India. They are ought to invest more time and resources in marketing in rural areas but if the literacy rate of rural regions will rise at a rapid rate, there will be no need of different strategies to make consumer aware thus the network of companies will spread to even remote locations

• Occupation

There is much difference in occupation pattern in rural and urban region. In urban region, occupation is diverse, and ranging from professionals, skilled, semi-skilled to unskilled workers. Specialization is achieved through higher education, training and skill development (The MAX-NCAER Indian Financial Protection Survey, 2008)

In rural region, predominant occupation is agriculture but now people are shifting to non-traditional occupations like shop/trade, skilled work, and salaried job. Educational gradation in rural region is rapidly improving with the arrival of technology to even remote areas. The agricultural sector is severely contracting both in terms of its output and employment shares. The big expansion has occurred in the service sector. The industrial sector has also expanded but at a far lower pace. The expansion in blue-collar occupations jobs (primarily production and service workers) in rural areas is at a significantly faster rate than the corresponding expansion of blue-collar occupations in urban areas.

Occupation also plays a role in destination marketing strategies as occupation depicts the financial capability of a household. Thus, it affects the pricing of the goods and services in different areas. However, it is difficult for companies to set a different price for different household. Rise in the skilled works and salaries jobs in rural India reflect the improvement in financial state of rural consumers thus companies can have a firm hold on the rural market and there is also a possibility of exploring the untapped markets.

• Expenditure

The spending can be classified in two categories that are necessities and discretionary goods. Necessities include basic amenities like food, clothes and shelter and discretionary expenses are rest of expenses. Trends in share of consumption on these two broad categories have followed opposite directions; with discretionary spending gradually getting more prominence in the consumption basket. The rural consumption basket is also changing and is slowly converging towards the urban consumption basket. According to NSSO data, the expenditure of rural consumer on non-food items has increased by 14.6% against 16% increase of urban consumer for the period 1993-94 to 2011-12. Rural consumers are buying more premium health, hygiene, personal grooming, packaged foods and convenience consumer packaged products, reflecting aspirations towards changes in lifestyle. (National Sample Survey Office 2011-12)

• Advertising Strategies

Data from Dentsu Aegis Network (DAN) showed that digital ad expenditure climbed 26% last year to reach Rs 13,683 crore. A DAN report also maintained that digital advertising will likely maintain a 27% rate of growth in 2020.

Digital Advertising mainly includes television and internet advertising. In spite of rise of modernization in India, there are still many remote areas where tele-facilities like television and internet are not available. Knowing this many companies invest a lot in digital advertising which indicates either their lack of interest in rural markets or incapability to reach those markets.

Advertising is the key factor of any marketing strategy and lack of composure in advertising skills may cause downfall of the company. Though companies cannot do much about it until government boosts the impact of digitalization on remote areas but they can surely spread their network of advertising to different modes of advertising like magazines and newspapers.

The size of rural community is smaller, homogeneous and has less differentiation which results in the system of interaction as personal and long term. The decision making is mostly collective and depends upon opinion of influencers such as retailers, village leaders, teachers, experts etc. Rural society is culture bound therefore care should be taken while designing marketing communication programs and other marketing strategies. Literacy level is one of the major obstacle in rural region. This results in presence of much less products in rural market. In rural region 4 A’s are more important i.e. affordability, acceptability, availability and awareness whereas on the other hand Urban community is larger in size, heterogeneous and has more social differentiation resulting in impersonal, causal relations. The decision making is mostly individual and independent. Urban population is dense and concentrated, also infrastructure facility is excellent in urban area. Rural population is scattered and most of them living in medium and small sized villages with poor infrastructure facility whereas majority of urban population lives in large size cities. As a result of all these aspects the cost of serving consumer is higher in rural than urban region. Migration is resulting in increase in urban population but at the same time this migrated rural population is sending money to their relatives living in rural region thus increasing the purchasing power of rural consumer. It is also adopting urban lifestyle and exposing their relatives in rural region for this lifestyle.

Conclusion

It is pretty evident from the analysed data that the rural sector is constantly thriving towards modernization thus leading paths to industrial revolution. Marketing is the “make or break” aspect of any company. Due to diversification of such a vast population of India, there are still several barriers in applying the marketing strategies to the remote areas.

Government has a major role to play in the upliftment of the rural sector. Development of facilities like transport, roads, warehousing facilities are somewhere lacking in today’s scenario. There are several schemes and perks for MSMEs and Small Scale Industries but are not properly enforced thus, small business’ are unable to thrive or even survive in the economy. Though government has taken a major step in form of the “Make in India” campaign which provides more opportunities for the rural population which ultimately leads to upliftment of rural economy as well.

In United States of America, a farmer lives a luxurious lifestyle with several amenities which is totally opposite of the condition of farmers in India which is quite miserable and only government of India can help the farmers which covers more than half of the rural population.

There are also several loopholes in the marketing strategies of Indian companies majorly due to vast and different scenarios. Hopefully in the future there will be no need of different strategies for different regions due to Indian Modernization.

References

Website References

1. https://smallbusiness.chron.com
2. https://www.researchgate.net
3. http://www.academia.edu
4. https://papers.ssrn.com
5. https://censusindia.gov.in
6. https://economictimes.indiatimes.com

Papers References

1. Pramod Patil (2017) – “Rural and Consumer of India” Available on : https://www.researchgate.net/publication/316786211
2. Lidia Alexa(2010) – “Urban Marketing and its Impact on competition between Cities” Available on : https://www.researchgate.net/publication/46524920
3. Prakash H.S. and Mustiary Begum (2017)– “An Effect of Selected Media’s Advertisements on Consumers in Rural Market: A Study with Reference to Shivamogga District”
4. Dr. Anubhuti Gupta (June, 2017)- “Recent trends in rural market in India”
5. Rithvikaa Kripanithi and Anitha Ramachander (2017) – “ 4 ‘A’s The Key Drivers of Rural Economy

At present, many questions arise, while the promotion of various products makes us become materialistic.

Advertisements promote materialism in several ways. The first is by creating new needs and desires among people. Advertisements also encourage people to compete with each other by purchasing more and better objects. Finally, advertisements often encourage consumers to replace their old possessions by purchasing the newest and best model. This fosters a ‘throwaway society’. Your business can oppose this materialism by offering products that are built to last and meeting real, instead of manufactured, needs.

Also, kids are the main demographic that can be taken advantage of. Children under 8 are not able to understand advertisements as attempts to sell them products, and will accept any claims advertisements make without scrutiny. This makes them exceptionally vulnerable as targets of ads. The socially responsible move would be to target your advertisements at parents instead of directly to children. This will get knowledge of your product or service out without taking advantage of children’s lack of defense. Since children will be the consumers of the future it makes them create these habits of materialism from a very early age, and it can be dangerous for them in the future. Then the market of the future will be a market of materialism.

A study made in America by Suzanna Opree found that the children, that watched for television reported, being less happy with their lives than those that did not. Opree explained that this phenomenon is a result of the techniques of advertising agencies. The message that children are receiving from these advertisements are that buying a certain product will make you happy or popular. Since children can’t attain all these products, they are vulnerable to unhappiness. Children that have this mentality in their youth, carry it onto adulthood, causing them to be materialistic adults and still never feeling satisfied.

Although this specific study was done with children, everyone is vulnerable to the effects of advertisements. Agencies can make any product desirable through various techniques. Because advertising is so prevalent in our society, we are more aware than ever of everything that we don’t and most often, can’t have. It is no coincidence that materialism has increased among our society at very similar rates that advertisements have increased. It is important for everyone to be educated on what they are being exposed to on a daily basis. Every advertisement, no matter what it is, is meant to make you feel something. This feeling is what we need to be educated on. If we realize it is the actors or the dialogue of the advertisement making us feel a certain way and not the actual product they’re advertising, our mindset may change.

One study found that advertising causes materialism by proposing solutions to social problems – over time, it’s possible that people come to believe they can buy happiness, success, or love. Advertisements tell the world who we are and which groups we belong to, and influence people to judge and categorize the personalities of others based on their material possessions. This is certainly reinforced by the fact that their findings demonstrated that there are negative correlations between all dimensions of organizational citizenship behavior and materialism. However, it is a basic fact of human nature that we exhibit a vast array of differing personalities and preferences.

It is clear that advertising may influence behavior – however, it is far from clear that it would make individuals and societies more materialistic. Modern advertising is successful by associating brands with values and traits, linking them in consumers’ minds. To elicit positive responses, they must appeal to the personalities and desires of their target consumers. Thus, when successful in influencing our behavior and encouraging spending, they should also be successful in activating cognitive representations of positive traits or motivational constructs. Furthermore, considering that we’re much more likely to be continually exposed to the types of advertisement that complement our personalities, advertising may simply be encouraging consumers to pursue values, goals, and traits that they already hold. I think, while advertising may increase materialism in individuals and society, it will do so only to the extent that it increases other values to which advertising appeals.

The moment we let ourselves be blinded by the possibilities and the beauty of marketing and promotion we are going to find ourselves being less happy than before.

To gain a deeper understanding of the definition of marketing, I interviewed 3 people from different backgrounds and professions to find out their views on marketing, i.e. what is it and why do they think so? So, firstly, I spoke to Mr. Zen, one of the family friends, who is now 26 years old, and is working part-time and also works as an accountant in some organization in Pune, India. His current goal is to start his own accounting firm. According to him, marketing is something that is necessary for companies/organizations to increase their sales, because the increase in sales also leads to profit for the organization and stakeholders, so marketing is trying to sell your products to more people. From his point of view, it seems that this is a kind of sales orientation.

Next, I spoke to my friend Sam who is now 22 years old and works as a manager at Hungry Jack’s in Victoria and I asked him how their company uses marketing or what their perception of marketing is. He told me that marketing plays a crucial role in their business to attract consumers through promotions like student discounts and so on. Their first motive is to get more people to try their food, and for that, they offer various discounts. From his point of view, it seems that their company is behind the relationship orientation. In addition, he told me that he plans to become a shareholder/franchisor of the restaurant in the next 2-4 years.

And the third person I interviewed was Jay, a 30-year-old marketing manager of Hero Cycles, who has been working for the last 4-5 years in the same organization. He believes that marketing is about promoting a product to inform consumers about its needs. He added that they use various sources like social media, print media, etc. to tell the public about their new products and features. In the future, he plans to do the same, but with the team, he creates new ideas for approval.

According to Alvin J. Silk, marketing has meaningful strategies to build and maintain customers through the exchange of goods. Further in his book ‘What Is Marketing?’ he clarified that this is not just a task assigned to certain professionals, but a broad team that must have an understanding of the target market and must perform better than the organization’s competition to entice more people with benefits. To a certain extent, it also suggests that marketing is a separate part of the business that somewhat differentiates it from other organizations. In short, according to the author, in order for a business to increase or increase the volume of its services, it should not advertise the service, but the benefits of that service.

Now, according to the Nordic view, marketing is to form relationships with consumers. More specifically, its purpose is to create, maintain, and channel public-firm connections that can be sorted through trust and commerce. Because of longer relationships with consumers, it makes sense to continue endless relationships with people to continually maintain trust and sales. However, it also mentions that fewer small trades also lead to good returns. In addition, it shows that maintaining good relationships and trust can create a competitive rivalry. Furthermore, this definition of marketing does not contradict the fact that elements of the marketing mix are dominant but only explains that a relationship orientation is also part of the marketing mix.

In conclusion, I just want to say that marketing means different things to each person, or we can say that there are several definitions of marketing. After interviewing people and reading various articles, marketing to me is to introduce the public to products and services according to their needs and to build a relationship with them. Because once we offer our services to the public, they feel attracted to it, and we could try to do the same to build relationships with consumers and take it longer so that it brings profits to the organization.

At present, many questions arise, while the promotion of various products makes us become materialistic.

Advertisements promote materialism in several ways. The first is by creating new needs and desires among people. Advertisements also encourage people to compete with each other by purchasing more and better objects. Finally, advertisements often encourage consumers to replace their old possessions by purchasing the newest and best model. This fosters a ‘throwaway society’. Your business can oppose this materialism by offering products that are built to last and meeting real, instead of manufactured, needs.

Also, kids are the main demographic that can be taken advantage of. Children under 8 are not able to understand advertisements as attempts to sell them products, and will accept any claims advertisements make without scrutiny. This makes them exceptionally vulnerable as targets of ads. The socially responsible move would be to target your advertisements at parents instead of directly to children. This will get knowledge of your product or service out without taking advantage of children’s lack of defense. Since children will be the consumers of the future it makes them create these habits of materialism from a very early age, and it can be dangerous for them in the future. Then the market of the future will be a market of materialism.

A study made in America by Suzanna Opree found that the children, that watched for television reported, being less happy with their lives than those that did not. Opree explained that this phenomenon is a result of the techniques of advertising agencies. The message that children are receiving from these advertisements are that buying a certain product will make you happy or popular. Since children can’t attain all these products, they are vulnerable to unhappiness. Children that have this mentality in their youth, carry it onto adulthood, causing them to be materialistic adults and still never feeling satisfied.

Although this specific study was done with children, everyone is vulnerable to the effects of advertisements. Agencies can make any product desirable through various techniques. Because advertising is so prevalent in our society, we are more aware than ever of everything that we don’t and most often, can’t have. It is no coincidence that materialism has increased among our society at very similar rates that advertisements have increased. It is important for everyone to be educated on what they are being exposed to on a daily basis. Every advertisement, no matter what it is, is meant to make you feel something. This feeling is what we need to be educated on. If we realize it is the actors or the dialogue of the advertisement making us feel a certain way and not the actual product they’re advertising, our mindset may change.

One study found that advertising causes materialism by proposing solutions to social problems – over time, it’s possible that people come to believe they can buy happiness, success, or love. Advertisements tell the world who we are and which groups we belong to, and influence people to judge and categorize the personalities of others based on their material possessions. This is certainly reinforced by the fact that their findings demonstrated that there are negative correlations between all dimensions of organizational citizenship behavior and materialism. However, it is a basic fact of human nature that we exhibit a vast array of differing personalities and preferences.

It is clear that advertising may influence behavior – however, it is far from clear that it would make individuals and societies more materialistic. Modern advertising is successful by associating brands with values and traits, linking them in consumers’ minds. To elicit positive responses, they must appeal to the personalities and desires of their target consumers. Thus, when successful in influencing our behavior and encouraging spending, they should also be successful in activating cognitive representations of positive traits or motivational constructs. Furthermore, considering that we’re much more likely to be continually exposed to the types of advertisement that complement our personalities, advertising may simply be encouraging consumers to pursue values, goals, and traits that they already hold. I think, while advertising may increase materialism in individuals and society, it will do so only to the extent that it increases other values to which advertising appeals.

The moment we let ourselves be blinded by the possibilities and the beauty of marketing and promotion we are going to find ourselves being less happy than before.

To gain a deeper understanding of the definition of marketing, I interviewed 3 people from different backgrounds and professions to find out their views on marketing, i.e. what is it and why do they think so? So, firstly, I spoke to Mr. Zen, one of the family friends, who is now 26 years old, and is working part-time and also works as an accountant in some organization in Pune, India. His current goal is to start his own accounting firm. According to him, marketing is something that is necessary for companies/organizations to increase their sales, because the increase in sales also leads to profit for the organization and stakeholders, so marketing is trying to sell your products to more people. From his point of view, it seems that this is a kind of sales orientation.

Next, I spoke to my friend Sam who is now 22 years old and works as a manager at Hungry Jack’s in Victoria and I asked him how their company uses marketing or what their perception of marketing is. He told me that marketing plays a crucial role in their business to attract consumers through promotions like student discounts and so on. Their first motive is to get more people to try their food, and for that, they offer various discounts. From his point of view, it seems that their company is behind the relationship orientation. In addition, he told me that he plans to become a shareholder/franchisor of the restaurant in the next 2-4 years.

And the third person I interviewed was Jay, a 30-year-old marketing manager of Hero Cycles, who has been working for the last 4-5 years in the same organization. He believes that marketing is about promoting a product to inform consumers about its needs. He added that they use various sources like social media, print media, etc. to tell the public about their new products and features. In the future, he plans to do the same, but with the team, he creates new ideas for approval.

According to Alvin J. Silk, marketing has meaningful strategies to build and maintain customers through the exchange of goods. Further in his book ‘What Is Marketing?’ he clarified that this is not just a task assigned to certain professionals, but a broad team that must have an understanding of the target market and must perform better than the organization’s competition to entice more people with benefits. To a certain extent, it also suggests that marketing is a separate part of the business that somewhat differentiates it from other organizations. In short, according to the author, in order for a business to increase or increase the volume of its services, it should not advertise the service, but the benefits of that service.

Now, according to the Nordic view, marketing is to form relationships with consumers. More specifically, its purpose is to create, maintain, and channel public-firm connections that can be sorted through trust and commerce. Because of longer relationships with consumers, it makes sense to continue endless relationships with people to continually maintain trust and sales. However, it also mentions that fewer small trades also lead to good returns. In addition, it shows that maintaining good relationships and trust can create a competitive rivalry. Furthermore, this definition of marketing does not contradict the fact that elements of the marketing mix are dominant but only explains that a relationship orientation is also part of the marketing mix.

In conclusion, I just want to say that marketing means different things to each person, or we can say that there are several definitions of marketing. After interviewing people and reading various articles, marketing to me is to introduce the public to products and services according to their needs and to build a relationship with them. Because once we offer our services to the public, they feel attracted to it, and we could try to do the same to build relationships with consumers and take it longer so that it brings profits to the organization.

Digital Advertising Strategy How to collect upward a highly effective electronic advertising strategy? When establishing a digital advertising strategy, the very first issue is to think carefully getting into account the specificities of the focuses on, marketplaces, items/solutions offered, etc. Many customers are usually registered in a minimum 1 local community site In 2010, a BSI (Brand name Technology Company) research showed that 81% of Western companies (12 countries) that had launched marketing communications did not have an interpersonal media strategy, which explained their failure. We must think about that before performing! Before, find out the other components of the digital advertising technique: 1scapital t: define the goals of the electronic marketing and advertising strategy

What are your advertising objectives? The answer should not be ‘because everyone is performing it’ but must meet one or more objectives. Of all first, this must become exact. We can make use of the memo method: Wise Particular: tangible prices Measurable: indicator indicators Attainable based on the context, Practical market if we have sufficient resources to do it Short term, ie described inside period. An instance of a new particular goal: ‘create a new weblog that may end up being in the best 100 most go through inside 9 weeks’ Our guidance: do not waste unnecessarily about goals that you will struggle to achieve because either they are too numerous or because they are too complex. 2nm: think about why develop an electronic advertising strategy The good reasons are many, but the first of all is that with the digitalization of companies, electronic marketing and advertising becomes essential. The levels are usually higher because several businesses possess vanished since the 2000s because they experienced not really producing this electronic change. It will be definitely essential to carry on recruiting, and canvassing, but the targets and rivals of the company are already using it on these digital levers. Digital advertising will be the field almost all utilized by businesses to create this modification.

Digital advertising, by it is possibilities, allows to much better relations with it is goals, to much better understand them, to find out even more precisely their requirements. Some thoughts: create the community

• generates prospects: contact information and contact info.
• gather email messages • manage the company’s e-reputation • sponsor influencers
• to generate visitors (SEO and inbound advertising)

3rchemical: who should this electronic advertising strategy end up being aimed in? Without this prior function, it is a waste of cash and time, so the definition of targets is certainly the most crucial step. You have to segment and focus on, know your market well. We recommend building the common user profile of the perfect client of the organization (or task). It will be not really unusual for one to create 2 or 3 various pieces of information, called personas also. Gentes are usually fictitious individuals symbolizing a perfect focus on user profiles. This method can make it feasible to much better get into account all the features of the customers of the services and products provided by the business. It will be a highly effective device that enables you to adjust your electronic marketing and advertising technique. It brings mainly solutions to the ‘why’ observed above. 4th: what information to deliver inside the electronic advertising strategy?

Centered upon the placing, the firm determines a good content technique particular to every one of the focuses on decided throughout the 3rdeb phase, the gentes. The arrangement must fulfill the particular requirements of the gentes. It must end up being obvious, consistent and simple. The focus on will be at the coronary heart of its content material technique, therefore all content material must become of higher high quality. The type of content also depends upon the chosen channels. On a blog site, the material will end up being various than on Facebook for instance. The most used type of content is editorial certainly. Certainly, conversation companies are usually employing even more and even more publishers. Presently, entrepreneurs are usually furthermore trading even more and even more in picture, movie and pc image software programs.

5th: how to establish electronic marketing and advertising strategy? Does that mean that for electronic advertising? Logos: the execution of a new true content material technique, storytelling, articles marketing and advertising, and brand name content material, permitting the firm to manage its picture, interact with its target audience and optimize his overall performance. Sociable Press to construct influence, and manage its communities to in a commercial sense participate them. Picture related to digital advertising strategy Impact: there will be zero more time any query nowadays of making use of (disadvantage) downwards conversation, from a new brand name impacting its stage of see to a good obtainable and passive viewers. In a side-to-side globe, influence is today a major component of communication.

The brand name must consider into accounts all the components of its environment. It must provide to each of them with coherent and related communication. Interpersonal selling encourages interpersonal buyers to become customers. Sociable systems represent a substantial marketplace in which businesses have got every attention in making use of them. The image of an ongoing company is a valuable asset to the company. It enables him to place himself in his marketplace. Inbound Advertising Strategy Inbound Advertising: is utilized to perform draw communication procedures, to attract focus on in the company’s systems. The attention will be to get notoriety and a brand name picture. Attract purchase of fresh visitors from sociable networks by generating content material that matches the requirements of the goals, along with the goal of getting them to the company’s system. For illustration the corporation website. It should become mentioned that B-to-B entrepreneurs with weblogs possess 67% even more potential customers.

Change: the objective right here is to sufficient curiosity him to keep his coordinates (getting web page, advertising, sign up to a new system, etc.) Close up: or even contact guide nurturing, that is, convince, reassure and reassure the guest that he or she is inside the correct spot to have got the item/support that fits his requirements. Pleasure: after the purchase, find the consumer to become a good ambassador of the item/services. Maintain the client in an energetic procedure. Ads The goal here is to generate Prospects and not the sale itself. There are usually many systems, the primary types are usually:

• google AdWords, it may be used to test its market and make the day-before • Facebook advertisements, much less effective (bad transformation price).
• Linkedin advertisements, really costly but extremely efficient specifically to enrich your neighborhood
• Retargeting Customization This is the contextualization of content based on the user’s behavior, geolocation, weather, time of day.

We are usually in one-to-one advertising. In 2016, even more than fifty percent of marketers were that customized campaigns had better ROIs (Come back on Investment). Providing the perfect articles at the ideal period on the best route appears to end up being the pattern in 2018. Advertising automation One-to-one advertising offers become important to effectively deploy its advertising strategy. Marketing automation allows you to set up highly individualized marketing and boost the turnover of the company. The strategy lays in setting up scenarios. These are linked with the return on investment of the operation directly. The essential scenarios for an increase in turnover: The welcome sequence: get an email gives the first glimpse of the company and the advertising of the company. This will be a collection of pleasant email messages pursuing the enrollment of a guest on the organization’s site. These email messages (5 to 10) can give food to the website visitor (growing in British) details about the brand name, the item/assistance. They are usually outfitted with phone calls to action to motivate the receiver to create a buy. Anniversary email: resolved to the consumer about the day of his birthday celebration. It will be a really efficient e-mail. Of program, it can become damaged straight down based to various anniversaries influencing the customer: the wedding anniversary of sign up, an adored one, etc.

Replenishment e-mail: very relevant for normal usage. The post-purchase email survey is a real way to re-engage the consumer. it will be usually nicely obtained by customers and causes a boost in product sales. Live life to send: sending emails when they are usually linked. This will be a great method to motivate the reactivation of sedentary connections. Forgotten Container Relaunch: This will certainly recuperate nearly a quarter of forgotten shelves. There will be a collection of leads to of desertion not really always associated to a switch of thoughts. What can make a rebirth can possess its attention? Technique for CM Developing an effective local community will be centered upon the well-defined technique that combines interpersonal strategies and instruments in to company functions and targets. There are usually numerous content articles on the subject matter. You can complete this reading on the excellent Web marketing and Com website There are 4 steps to creating a mature community: 1st step: Establishing upward: Social technologies and tools. Local community constructions. 2nm step: growing community: it is the starting of a new consumer, the instant to check the procedures and/or even equipment group and sociable. In parallel, establishing an upward watch to evaluate and prioritize the opportunities provided by socialization.

The constitution of the grouped community, the recruitments, is a STRATEGIC step, it is a lengthy process and must be organic! (Illustration of impatient businesses who possess overpriced the number of their users.) The amount is not a new consultant’s worth of the partnership between the business and its customers. The interesting indicators are relevance and interaction. The relationship of a company to a user is based on a transparent and genuine exchange. This imposes a helpful conversation. We must, consequently, consider both good and unfavorable feedback.

Poor practices:

• bad versatility of the conversation in connection to the demands
• arbitrary moderation of the remarks
• a condescending attitude
• manufacturing of fake optimistic responses

3rchemical step: Community: To have obviously defined the roles, organized and financed the sources (CM, high quality, etc.). ), the described content collection, the creation of modified content material, etc. Engage:

• The conversation on Master of science will be about interesting people of your area. That will be to state to engage in industrial relationships, industrial transformation
• Possess brand name ambassadors, individuals who defend and market the brand name: advertising dedication.
• It will be a new organic development: ‘We feel fascinated, We were educated’, once customer and happy, We recommend.
• The easy dedication: the consumer states his curiosity in the brand name, to receive details (items, email, etc.)
• The dedication by the purpose of buy: it will be near to the take action of buy and inquires. As a total result, he says the views of others and surfs the Master of science.
• The dedication to impact: the already-consumer customer contributes to the development of articles, by commenting, and ranking items, he suggests the brand name to his personal areas (nearly all fascinating).
• Not really all Web customers react. We must consider 1-9-90 (1% produce content material, 9% transmit it, 90% read it). Determine the evangelists:
• You possess to appear in the evolutions (lengthy-phrase) of the beneficial feedback. • Notice if these views are usually meant to impact the view of others.
• They are usually essential customers; the even more essential they are usually, the even more prosperous the company will end up being. 6th: define the monetary and human being means The financial aspect and the individual aspect: these values should be taken into account when establishing the social press strategy.

Financial: Hiring a Community Manager, providing providers to a company for content material (text messages, computer images, etc.), superior balances, income talk about credit to the computer animation or formula of experience, etc. Human being: the theory will be to determine a new optimum duration relating to its options. It will be hard to evaluate the period to spend to it. The composing velocity will be not really the exact same for everyone. Inspiration, and individual issues, for instance, are components that must necessarily be taken into account. We must furthermore get into account the human being atmosphere. Information, occasions, research, and staff are crucial also. 7th: Choose your ecosystem. Proceed to obtain them in the best system: consumer understanding will help figure out the typology of media, all of a sudden the definition of tools gets supplementary. The choice of the platform must meet the logic of objectives, targets, messages, and orientation of communication. In 2016, where had been the focus on? Begin your own possess Market place.

Since the start, the marketplace is embodied by GAFA and some Pure players like Amazon, and eBay. It will become appropriate to create one’s very own company design. Numerous businesses possess created their personal Market (Rueducommerce, Cdiscount, Priceminister, etc.). It’s a digital shopping mall. This will be a web system (internet site) on which retailers market items/solutions to customers. The vendor advantages from the system and clients of the second option, in come back he must pay out the Industry a product sales commission rate he provides produced. Market segments locking mechanism info on clients at the danger of viewing them drawn by retailers. It is increasingly relevant to create your own marketplace, still market and whatever the marketplace (b-to-c, b-to-b, and c-to-c). This allows the company to control the competition or its suppliers even. In b-to-b, businesses have got a system of providers. If they digitize this system, a Marketplace is given by it. 8th: computing tools The goal is to measure the impact of the actions undertaken to reach the set objectives. This will assist optimize the activities used, enhance, check brand-new types and amplify activities. These signals or KPIs (Important Overall performance Indication) will permit analyzing the usefulness of the electronic technique for your brand name picture. These details will assist to a much better focus on marketing and advertising promotions and raise their efficiency. The greatest problem of this stage will be selecting the indications. It moves without telling that reading through these signals is a new main problem for businesses.

It will be recommended to establish up dashboards like transformation price signals, and indications to deepen the information of your clients: who they are usually, what behaviors and what passions define them, etc. A few fine details the kind of signals we may make use of mass media by the press. For strategies with functionality, the click on or the number of email messages authorized are usually basic indications to put into action. On the other hand for logos promotions, it will be required to fix up fresh signals. On Public Media The scope of publications: produce content on several media (Facebook, Twitter, Linkedin, Pinterest), and appear at which one is the almost all suitable? Who are usually the customers of each system? Which content material suits the greatest in each situation? Understand your own neighborhood: to understand your own customers much better, you must frequently publish, a person can easily figure out the content material they prefer, which will lead to your own messages. The suggested indication will be the number of magazines. Qualitative community assessment: Counting most people inside a community are not sufficient, a qualitative assessment of the community is usually required.

You possess to determine if they are usually advantageous and if they match into your focus on, the objective will be to concentrate your attempts on your perfect goals. Your community’s involvement is measured by remarks and ticks on the ‘Like’ buttons (soon ‘I do not like’?) And ‘Talk about’ your followers on Facebook, retweets or favorites from your fans on Twitter, or consumer suggestions on LinkedIn. Suggested indicators: number of fans, mixed along with community participation. Cultural media branding: To find away what’s being stated in relation to your brand, you need to have to use a watch system. This monitoring will enable you to understand who says your brand name and on what (from a tweet, a blog page, etc.), in which path and on what firmness. You will after that become capable to prevent an achievable downturn of notoriety by intervening as quickly as the 1st catalog seems. Suggested KPIs: number of endorsements acquired simply by your brand about interpersonal media, google trends, website statistics … Come back upon Expense (Return on investment) Holly Ford said: ‘The 2 nearly all essential things do not appear on the balance page of the company: its status and its men. ‘ The Return on investment is an indicator in itself since it will allow validating the relevance of the choices produced in the advertising strategy. It is the primary indicator because it is the result of calculating the profitability of marketing studies. The passions are usually very clear: increase earnings on the advertising levers included. Which dependable and quick indicator will make it probable to judge the relevance of the actions? Nowadays, it will be challenging to assess picture enhancement.

The concept of Return on Investment in the broadest sense must be taken into account. The worldwide effect on the company design that this electronic alteration imposes will be nearer to the Return on investment. The indications produced from the advertising activities (amount of appointments, CPC, Jump price, etc.) only allow measuring a part of the advantages of the digital strategy. For a global ROI, we recommend taking into account the price of renouncing also known as the chance cost. It’s really the price for the firm not really to spend in an electronic advertising technique. The computation will be carried out with regard to the turnover recognized thanks a lot to and that noticed without this digitization. Another way would be to measure brand awareness before and right after the marketing campaign. With cultural mass media signals, but furthermore with search engine styles. Reward: the view tools It is unthinkable to imagine getting a new digital advertising technique without holding a new view on the theme of the second option. The concept right here will be to figure out what sorts of info we should appear for and actually to arrange up equipment to automate this function, which can occasionally end up being tiresome. I propose to slice this paragraph on the view in three organizations: the view on popularity, how to automate its view (when feasible) and what equipment can assist us.

Market Segmentation

As we know that Pepsi is provided among a huge population which is called market. To distribute it and increasing the revenue the market should be segregated, Pepsi has segmented their market keeping four major segmentation variables in their mind which are:

• Geographic
• Demographic
• Psychographic
• Behavioral

Geographic Segmentation:

Geographic segmentation means dividing the market into different geographical units such as nations, regions, states, countries, cities of even neighborhood, Pepsi has put little emphasis to segment their market geographically. They are doing business almost in maximum places around the world.

Demographic Segmentation:

Despite the large customer base in the Soft Drink industry, Pepsi prefers to segment itself as the beverage choice of the “New Generation”, Generation Next, or just as the “Pepsi Generation”. These s advertising campaigns are what marketers’ terms adopted in Peps refer to as Generation X, which are presented to be between the ages of 18 to 29. In addition, Pepsi shifted its focus to the growing American teenage market in the 1990s by forming exclusive contracts with American schools and developing advertising campaigns such as “The Next Generation and the Joy of Pepsi’, featuring Britney Spears. Pepsi believes that if they can get this market to adopt their product, they could establish a loyal customer in a long run.

Psychographic segmentation:

Psychographic segmentation divides buyers into different groups based on social class, lifestyle or personality characteristics. People from same demographic group can have very different psychographic makeups Pepsi ‘s segmentation has also been emphasized psycho graphically. Their beverages are very much focusing towards lower and upper middle class as they can afford to drink Pepsi. They have a product like Mountain Dew a particular drink which is focused especially who has adventurous personality. Their campaign of this drink totally focuses adventurous young people.

Behavioral segmentation:

Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses or responses to a product. In this segment, Pepsi company has been concentrating carefully. Because they offer in every Special occasions, for the people who seek for benefits off products, to their loyal customer base. Occasional cases like religious festivals; special days like mothers’ day , valentine’s day, friendship day, any individual’s birthday, marriage ceremony or anniversary in a Word in every special occasions there are people to whom buying Pepsi for celebration is a must.

Market Targeting:

Market Targeting can be carried out at several different levels, companies can target very broadly through “Undifferentiated Marketing”, very narrowly through “Micromarketing” or somewhere between “Differentiated Marketing” and “Concentrated or Niche Marketing”. There are four strategies of market targeting. Pepsi follows the strategy of “Concentrated or Niche Marketing”. In niche marketing Companies goes after a large share of one or a few segments or niches. Through concentrated marketing, the firm achieves a strong market position because of its greater knowledge of customer it serves in the niches it serves and the special reputation in acquires. Pepsi customers are mostly Teenagers and Young Adults between the ages of 14 to 30. It also targets at Schools, Colleges, Universities, Homes, Restaurants Hotels, and Stores. They focused on varietal differentiation since 1990 by introducing a string of niche products. To increase volume in order to counter flat Coca-Cola sales, Pepsi introduced Sierra Mist in 2002-2003 to take the place of 7Up and go head-to-head with Sprite. Pepsi has also tried to boost volume by introducing products that appeal to Specific target markets that it currently is not reaching. Pepsi has introduced Code Red and Live Wire, extensions of Mountain Dew, Pepsi One, and Pepsi Blue. Finally, Pepsi is countering declining sales of Carbonated drinks through the marketing and distribution of Starbucks ready to drink products, and the acquisition of SOBE and Gator ad. The success of Pepsi’s Mountain Dew Code Red launched in 2001 was the most successful soft drink innovation in 20 years and has spurred even more niche product introductions for PepsiCo as well as other competitors. In some sense Pepsi also follows the idea of “Micromarketing”. As they are they are promoting their brands to the local customer groups. They are sponsoring the signboards for the little or big shopkeepers in town. They are also providing refrigerator logoed “Pepsi”. All these they are doing to attract their target customers.

Market Positioning:

PepsiCo plans to further Create positions that will give products the Greatest advantage in their target markets. Pepsi has been positioned based on the process of positioning by direct comparison and have positioned their products to benefit their target market. Positioning Strategies of Pepsi: To find points of differentiation, Pepsi have followed some strategies which have differentiated themselves from others. Pepsi have differentiated themselves in the field of Product Differentiation, Channel Differentiation and image Differentiation. The unique characteristic of their product and their brand image has differentiated themselves from the other beverages in market.

Promotion Decisions:

Integrated Marketing Communications

Coordination of promotion and other marketing efforts for maximum informational and persuasive impact. Pepsi has popularity among the population. Therefore, it is quite a challenge for Pepsi Cola to maintain and increase this popularity. Integrated Marketing Communications (IMC) is one of the effective strategies that a researcher believe it will solve the existing problem in the business area. Nowadays, competition in the market tend to increase, the customer also change their lifestyle becoming incrementally changed, then using only one tool for marketing communication is not enough. It is because many senders of organization try to reach the same receivers or customers. So, using many of strategies and communication tools will help their brand to become well known. Integrated Marketing Communication (IMC) is a tool that suitable for encouraging the customer buying behaviors.

Promotion:

Communication to build and maintain favorable relationships by informing and persuading one or more audiences to view an organization positively and to accept its products.

Promotion Mix of Pepsi:

The promotional mix element used for the Pepsi Refresh campaign theme centered on social responsibility and delivered with a heavy dose of social media. They took it deeper than any other campaign, targeting the millennial generation ages 14 to 29 by utilizing social media as an additional source along with traditional media to launch the Pepsi Refresh campaign. The campaign aired on paid search and display ads on Yahoo and Google to traffic their viewer to a link on YouTube and Face book too included other channel like e-mail marketing and mobile sites which drive visitors to the site.

Promotion strategy of PEPSI:

Advertising:

For advertising, it used printed and electronic media. Every newspaper and magazine carries Pepsi advertisements that make the people interested towards it, Advertisement of Pepsi are eye catching and attractive, Through advertising it informs the consumer about new brands and flavors. Pepsi designs their advertising campaign focusing on the target markets. They research for the need of people before make the ads. Pepsi has used a variety of sales promotions over the years. They have used celebrity such as Michael Jackson, Beyonce for endorsements. This has been shown with the use of Beyonce AX. They have also had essay Contest to promotions through schools. They have giveaways in stores and coupon advertisement in newspapers:

• A paid non-personal communication about an organization and its products transmitted to a target audience through mass media
• Advertising is changing as mass media consumption habits are changing
• The Internet and digital media aim at smaller, more targeted audiences
• Advertising is highly flexible and can reach large or small audiences depending on need

Pepsi invests heavily in marketing like Coca Cola. The brand invested 4.1 billion dollars in marketing in 2017. Out of it 2.4 billion dollars were spent on advertising solely. This was however a bit less than its 2016 expenditure when it spent 4.2 Billion dollars on marketing out of which 2.5 billion dollars went to advertising. Marketing innovation is a key driver of demand in the soda industry and since the competition in the industry is very high, brands also compete in the area of marketing. The two leading brands Coca Cola and Pepsi invest billions in marketing to promote their products and brands. Pepsi has 20 Billion dollar brands in its portfolio that generate revenue in billions. It has run several iconic promotional campaigns and targets the young people mainly through its advertising campaigns. Digital engagement has become an important focus for PepsiCo and the brand is investing in engaging digital video ads and creating exciting advertising campaigns. Its “Bring Happiness Home” happiness campaign including a 20 minute long video has seen very high level of success in Greater China generating more than 1 billion views. The brand is focused on creating effective advertising and marketing campaigns for its sales and success to a large extent depends upon the success and effectiveness of its marketing campaigns. Apart from these campaigns Pepsi also depends on sponsorship for marketing of its brand and products. Pepsi also promotes its each brand individually like Gatorade a sports drink for the athletes is promoted through a separate campaign. Its “Made for This” campaign featured High School athletes. The campaign underscored that Gatorade is fuel for the athletes and their success. These marketing and advertising campaigns are made to draw new customers as well as to inspire brand recall.

Public relation:

A broad set of communication efforts used to create/maintain favorable relationships between organization and stakeholders. Pepsi is the first product to respond to consumer preference with lightweight, recyclable, plastic bottles. In addition, different approaches of promotional campaigns such as press releases have been imposed so as to make the product more appealing to the target market and to make these product marketable.

Personal selling:

A paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation,Pepsi use pull strategy for selling the product. In every occasion Pepsi offers special offers. Like, they reduce the price; give extra quantity of drinks in the same price.

Publicity:

For publicity Pepsi use social media such as Facebook. Not only that Pepsi use YouTube to promote its product. It drives public attention toward the product. Pepsi also use brand ambassador and sponsor cricket team and world cup for publicity.

Direct Marketing:

Pepsi Uses its direct marketing to distribute their product through PIZZA HUT, KFC etc. More than that, they use e-commerce Such as “Refreshments Services Pepsi.com’ to market the product.

Create Awareness

Awareness is crucial to initiating the product adoption process for new products, encourage Product Trial. If customers stall in the evaluation stage, marketers can use methods to encourage product trial in order to move them to product adoption. When Pepsi-Cola North America decided to design a promotion to increase awareness and sales this summer, they looked to their agency, TLP, and SCA Promotions. Together, SCA, TLP, and Pepsi designed a summer-long promotion that would offer one lucky consumer the opportunity to become the world’s next billionaire. Only SCA, could make it happen: coverage for $1 billion.

Objectives:

Boost Pepsi product sales and increase brand awareness with consumers. Capture consumers’ interest by offering the largest cash prize in promotion history for a national brand – $1 billion. Gain sponsor support by partnering with the WB Network, Marriott Hotels, and United Airlines.

Strategies:

Offer the billion dollar prize on a bottle cap promotion that culminates with a live game show on the WB. Invite consumers to visit www.billionsweeps.com and enter a unique sweepstakes entry code found on specially-marked products. Randomly select 1,000 contestants to play a game of chance on the WB’s live show for a guaranteed one-million dollars and a chance to take home one billion dollars.

Each of the 1,000 selected contestants would choose a six-digit number on the day of the game show. The 10 contestants whose number was closest to or exactly matched the one selected by the chimpanzee, Kendall (A.K.A. “Mr. Moneybags”), advanced to the elimination round. Play a suspenseful game of elimination to determine the final player. In return for forfeiting their chance at the billion dollars, players were offered an increasing cash prize during each round. Award other great prizes during the game show to continue the excitement. Coordinate additional coverage for the one million $15 instant win bottle caps. SCA’s coverage protected Pepsi from an unexpectedly high rate of redemption. SCA estimated the redemption rate and covered the cost of redemption over that amount, keeping Pepsi on budget and risk free.

Results:

• Four million consumers submitted more than 20 million game entries. Pepsi captured important demographic information for future marketing efforts.
• Richard Bay, a graphic design teacher from Princeton, WV, was the final contestant and won the guaranteed $1 million. To win the billion, his six-digit number would have had to exactly match Kendall’s. He was only two digits away from an exact match.
• United Airlines presented two around-the-world trips, Marriott gave a life-long time share membership, and three Mitsubishi cars were awarded.

Distribution Channel of Pepsi:

Marketing channels are sets of interdependent organization involves in the process of making a product or service available for Use of Consumption. By channel distribution of Pepsi means the intermediaries of the process through which Pepsi is transferred from the producer to the ultimate users. There are a lot of intermediaries between Pepsi producers and consumers. Some intermediaries like wholesalers and retailers buy and resale the product. They are known as merchant middle men, Intensive Distribution: PepsiCo follows an intensive distribution strategy to distribute Pepsi, To support their universal feature that they want to place their product in as many outlets as possible, Distribution Model of Pepsi: Pepsi uses two types of distribution model to distribute the product among the consumers. They are Direct Distribution System and Indirect Distribution System.

Direct Distribution System:

Pepsi Uses its direct distribution system to deliver suppliers. It Supplies the product directly with: PIZZA HUT, KFC. According to the marketing channel Pepsi uses zero level of marketing. We can see there are no intermediaries between manufacturer and consumer. This single type of marketing channel is maintained by Pepsi.

Indirect Distribution System:

In this system, there are a lot of intermediaries such as distributors retailers, Wholesaler etc. To make the product available at the right places at the right time in the market, the sales department of PepsiCo Company pays major attention on controlling the channel of distribution. So according to the marketing channel Pepsi uses 2-level marketing channel.

Number of Intermediaries:

Pepsi Provides direct and employed employment of 1,500,000 people (including suppliers and distributors). Distributors Distributors frequently have a business relationship with manufactures that they represent. The distributors of Pepsi maintain exclusive buying agreements that limit the number of participants. The distributor becomes the company’s direct point of contact. Distributors do not sell the product directly to consumers. At first PepsiCo supplies Pepsi to the distributors, then they resale the product to wholesaler of retailer, according to http://www. exporters. sg/, there are 70 distributors of Pepsi. Some of them are: OTC GLOBAL LTD, INDIA (Exporting and importing Pepsi in 500 ML pet Bottles), SUNRISE FOODSTUFF JSC, VIETNAM (Exporting Famous Brand Pepsi Soft Drinks 330 ml).

Wholesalers:

The wholesalers of Pepsi generally buy a large quantity of products directly from distributors of the company. Then they resale the product to the retailers, according to http://www. exporters.sg/ there are 70 wholesalers of Pepsi. Some of them are: FAR WAY GENERAL TRADING LLC (Exporting and importing Pepsi), Brand Distribution Poland LTD, POLAND (Exporting Pepsi 0, 33 l, 24 Case).

Retailers:

Retailers consist of small and large for – profit businesses that sell products directly to consumers. The retailers buy small quantities of an item from a distributor or a wholesaler. Then resale them consumers. According to http://www.exporters.sg/ there retailers of Pepsi, Some of the retailers are Akin Enterprise, BANGLADESH, ANSii Computers, BANGLADESH. The channel of distribution is a structure which presents among alternative channels of distribution of the different marketing situation faced by retailers, wholesaler and producers within the structure. To bearing maximum profits of all institutions channel of distribution should be treated as a unit of total system of action.

References

1. https://www.scapromotions.com/case-study/pepsi/
2. https://www.slideshare.net/FatemaTuzZzohora/a-marketing-plan-for-pepsi-assaignment