Institue For Technology & Management Marketing Management

Year: (20011 2013) Term :

!"#$%& TIT'& : Integrate( Marketing !ommunication F)!#'TY : !ourse !o(e !ourse Title ,o- o. !re(its !ontact /ours Prof. Namratha Suvarna : : : : *++ Integrate( Marketing !ommunication 2-+ 2+ hrs

"01ecti2es : To increase the students understanding of the fundamental concepts of integrated marketing communication and communication process. Become knowledgeable about the important issues in planning and evaluating integrated marketing communication. Appl the appropriate theories and tools to plan! develop! and evaluate integrated marketing communication. "onstruct a complete advertising campaign.

!ontents: #valuation of Broadcast! Print and Support $edia Sales Promotion: Scope and %ole! consumer & oriented and trade oriented sales promotion Public %elations! Publicit and "orporate Advertising $easuring the effectiveness of the Promotional programmes #valuating the Social and #thical aspects of Advertising and Promotion %egulation of Advertising and Promotion

PRESCRIBED TEXT BOOK :(PTBR) '. Advertising and Promotion An ($" Perspective & )eorge #. Belch * $ichael #. Belch! Tata $c)raw&+ill! New ,elhi! -th #dition! .//0.

ADDITIONAL TEXT BOOK :(ATBR) .. (ntegrated Advertising! Promotion * $arketing OTHER REFERENCE BOOKS : '. .. 6. :. <. Advertising $anagement : "oncepts & Sales * 3perations Planning Advertising $anagement Advertising "reativit Selling Blue #lephants : +ow to make great product that people want. Principles of Advertising : )lobal Prospective Promotion and (ntegrated $arketing communication & Semenik %ichard 7! .//.! Singapore. & & & $ohan! $anendra! 'st #dition! .//2! Tata $c)raw&+ill 4allace! Thomas. 5! Stahl! %obert. A! 'st #dition! .//0! Shroff Publishers. 7ethwane ! 7aishri! 7ain! Shruti! 'st #dition! .//-! 38ford 9niversit Press. $arra! 7ames. ;! 'st #dition! .//.! Prentice&+all (ndia & "low! 1enneth #! Baack! ,onald! .nd #dition! .//2! Prentice&+all (ndia.

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$oskowit=! +oward! )ofman! Ale8! 'st #dition! .//2! Pearson #ducation (ndia. ;ee! $onle! 7honson! "arla! .nd #dition! .//2! >iva Book Pvt. ;td.

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PEDAGOGY : The course ob?ectives be achieved b means of lectures! individual and group assignments! case discussion and presentations! group pro?ects! marketing @ui=! book reviews! press news discussion! articles on marketing in +B% A+arvard Business %eviewB. 5or each session the topic

to be covered will be announced in advance it is essential that students too should come prepared for the class to discuss the material due for that session. The students will be notified for the dates of submission and presentation of assignments cases! and pro?ects etc. The breakup of internal evaluation ma differ from class to class CASE ANALYSIS : This covers the anal sis of the given cases. The same case will be given to all the group. 3nl one or two will be asked to make a presentation followed b the answering the @uestions b students and the facult and e8pressing the view points of the groups. SESSION-WISE COURSE OUTLINE : T C TopicD $aterial! 3T4$ CAdvertising and Promotion An ($" Perspective : )eorge #. Belch * $ichael #. Belch! Tata $c)raw&+ill! New ,elhi! -th #dition! .//0. ! C "aseE#8erciseD $ C %eading

)T4$ C (ntegrated Advertising! Promotion * $arketing : "low! 1enneth #! Baack! ,onald! . nd #dition! .//2! Prentice&+all (ndia.

Total Marks : 1+0 Internal )ssessment : 50 &6ternal )ssessment Marks : 70

(Internal )ssessment 8ill 0e 0ase( on the .ollo8ing 3arameters%r ,o ' . 6 : < )cti2ity )roup Pro?ect %ole Pla $ultiple "hoice FuestionE 3b?ective Test 5inal Presentation AssignmentsE News E Article Anal sis "ase Presentation &2aluation o. 4roa(cast9 3rint an( %u::ort Me(ia Ad Trends for ./'.

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Peruse certain maga=ines that carr advocac E issue advertisements endorsed b various companies. ,escribe the core competenc of the compan and the causes it is espousing and the possible reasons for it to be seen as a responsible corporate citi=en. Pick up Business ?ournalEmaga=ineEnewspaper. ;ocate the ad agenc reports. (dentif the strategies that these agencies are emplo ing at present. Anal se the information ou have collected to write an e8plorator note on the strategies being used b them. )roup Assignment Pro?ect (dentif an organisationEad agenc and find out their (ntegrated $arketing "ommunications Programme. (B ((B (((B (>B >B >(B >((B +istor >isionE$ission 3rganisation )oals ProductsEServices 3rganisation Structure T pe of Ad Agenc Promotion $i8

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>(((B Agenc "ompensation (GB GB G( G((B "lienteele %esponsibilit for ($" "urrent ads in all media Advertising %ates in media

G(((B %atings of compan EAgenc G(>B 5uture of all $edia Submit a report on this assignment on or before E''E'.. )roup Presentations on E'.E'.. As per the ($" campaign manual prepare a campaign plan for given brand Agroup pro?ectB

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http:EEonline.ws?.comEarticleESB'///':.:/<.02/./6H00</:<22'.0/.'H:'/:2</..html 3ther Ads Trends for ./'. $adison AvenueIs New&Jear Predictions (nclude %acier "ontent! $obile a )o&)o! Apps )alore! 5acebook 5atigue and $ore in $edia * $arketing K B S9LANN# >%AN("A Thanks to technolog ! whatIs old is new again. At least thatIs what advertising e8ecutives predict for ./'.. Television and maga=ines ads have been pronounced dead more than once on $adison Avenue! of course. But technolog breathed new life into those mediums last ear! with JouTube e8tending viewership for T> ads and the iPad making print ads se8 again. Technolog is e8pected to continue to invade and re?igger ever aspect of advertising in the new ear! according to ad e8ecutives. Pronounced dead more than once! television and maga=ine ads got a new push last ear with JouTube e8tending viewership for T> ads and the iPad making print ads se8 again. 4S7Is Su=anne >ranica reports on digits what advertising e8ecutives predict for ./'.. M(n ./'.! advertising will be more than ever the intersection of technolog and stor telling!M sa s "hristian +aas! e8ecutive creative director at )oodb Silverstein * Partners! a unit of 3mnicom )roup (nc. 3$" N/.60O +ints about what this future might look like have alread begun to emerge. (n a reimagining of sampling! one of the oldest forms of marketing! 1raft 5oods (nc.! 15T &'./0O for instance! is testing a vending machine that uses facial recognition technolog Pand a bit of humorPto dole out bites of its 7ell&3 dessert called Temptations. Targeted at adults! the 7ell&3 machine! e@uipped with an (ntel camera! has a surprising message for kids who approach for a taste: MSorr kid. JouIre too oung to e8perience an indulgence like this. Please step awa so the adults can get their free treat.M #ven staid retail catalogs are getting a digital makeover! with )oogle )33) &'...O recentl unveiling an app that aggregates do=ens of the mailbo8&clogging books! including ones for Potter Barn and ;; Bean.

Still! a flair for technolog wonIt be enough to stand out amidst the stupef ing ad clutter. To grab attention! some ad e8ecutives e8pect to see more comed in the mi8 while others foresee an uptick in raunchier promotions! peppered with f&bombs. 4hat follows are some of $adison AvenueIs predictions for ./'.: "ouch&Potato )atherings New down loadable apps will turn T> watching into a virtual communit event. MApps like )et )lue invite viewers to check&in to a program and have conversations with others watching the same thing!M sa s ,aniel 1habie! chief e8ecutive officer of ,igitaria! a digital&marketing firm owned b 4PP P;". 4PP)J N/.'/O MT> networks will pump it up because it encourages live watching and thus commercial watching.M 5oul&$outhed Ads MAds with f&bombsQ )et used to it!M sa s )lenn "ole! chief creative officer of 2. * Sunn ! a unit if $," Partners (nc. $,"A N..0HO M$a?or brands will start to take off the grann pants and create racier content that demands the attention and respect of ounger audiences.M Such content would be focused on the 4eb and certain cable&T> channels. )etting to 1now Jou Along with small screens on store shelves flickering with product promotions! kiosk&like machines will offer personali=ed Mproduct suggestions!M sa s $ichele 5abri=i! chief e8ecutive officer of $A%" 9SA. MSo if ou want to bu the same shade of lipstick or even the same color of paint! it will be able to remind ou what ou purchased previousl .M 5acebook 5atigue Ad e8ecutive forecasts include: 5acebook follows 5on=ie. 5acebook users now spend an average of si8 and a half hours a month on the social&networking site. But some ad e8ecutives e8pect the siteIs popularit to fade. M5acebook finall ?umps the shark!M sa s $r. 1habie of ,igitaria! using a television&industr idiom that essentiall means itIs downhill from here. M(P3 N privac issues N our grandma ?oining N one redesign too man N general social&network fatigue C 5on=ie on water&skis!M he sa s! referring to the rather&desperate M+app ,a sM episode that gave rise to the e8pression M?umping the shark.M Blake "ahill! president of Ban an Branch! a social&media agenc ! anticipates that consumers will be driven awa b an infiltration of ads as 5acebook comes under growing pressure to make more mone .

At the same time.... 4ebsites $igrate 5ortune <// companies will give up on stodg corporate websites and move their Mprimar online identit to a social networkPmost likel 5acebook!M sa s $r. 1habie of ,igitaria. $ore "hinese sponsors MAs "hina&based multinational companies look to further penetrate the 9.S.! sports marketing is increasingl becoming one of the channels the use to generate brand awareness!M sa s )reg ;uckman! global head of consulting for "AA Sports! a division of "reative Artists Agenc . The $iami +eatIs recent sponsorship deal with Tsingtao! a "hinese beer compan ! is recent e8ample of the trend. $arketing '/': "reate 7obs "orporate America has been touting green products for ages now. (n ./'.! however! M?obs will be the new Igreen!IM sa s Andrew #sse8! chief e8ecutive officer of ,roga<. M4eIll see advertisers focused on what their brands are doing for the econom .M Starbucks "orp.! SB9G &/../O for e8ample! recentl rolled out M7obs for 9SA!M a program that has been collecting donations of R< or more from store patrons to stimulate 9.S. ?ob growth through small&business loans and other efforts. $ade b Jou 3rdinar consumers have been enlisted over the past few ears to fashion ads! compan logos and product packaging. Ne8t up: M"onsumer&created brands!M sa s 7on Bond! chief e8ecutive officer of Big 5uel "ommunications! a social&media agenc owned b Publicis )roupe SA. M( can see a fashion compan made up entirel of consumer&designed clothing! under a consumer& designed brand name and logo.M Put on a +app 5ace Staring into the face of another potentiall dark financial ear! some brands will shift to humor as an antidote! sa s Brian Terkelsen! president of a branded entertainment division at PublicisIs Starcom $edia>est. M4eIll see more comed in ads and use of comedians!M he sa s. $obile $adness $obile devices do the shopping. #ver ear! MBlack 5rida M sends shoppers into an irrational ti== . Now add two more da s. M(n ./'.! I$obile Thursda I will ?oin IBlack 5rida I and I" ber $onda I as record shopping da s!M

sa s "olin 1insella! chief e8ecutive of ,igitas North America! a digital&ad firm owned b Publicis. $r. 1insella is predicting that Mthe link between mobile and commercial will thickenM in ./'.! which means more mone for the mobile industr . Adds $r. "ole at 2. * Sunn : M$obile devices are now the place where ou can have our most meaningful! most valuable! and even most inspiring relationship with a brand.M

)$TI!'& : 3 htt::CCh0r-orgC2010C0*Ca(2ertisers<learn<to<lo2e<the<(2rCarC1 Advertisers: ;earn to ;ove the ,>% b Andrew 3S"onnell (n the age of digital video recorders! the 6/&second T> spot is dead! rightQ Not necessaril . An ad can have a significant impact on viewers even while itSs whi==ing b on fast&forward. And if the Sve seen it before at regular speed! the pi8ilated! hard&to&make&out commercial is ever bit as effective as normal viewing. TAdvertisers that used ,>% penetration as a reason to decrease T> budgets ma have acted too @uickl !U writes #rik du Plessis! the chairman of the consulting and research firm $illward BrownSs South Africa office and a visiting professor at the "openhagen Business School. (n an article in the 7ournal of Advertising %esearch! he takes issue with the premise that viewersS increased ,>% use diminishes the effectiveness of T> ads. +is stud of '!/// 9.S. households! of which :// had ,>%s! showed no decrease in recall or in prompted recognition of commercials Atwo basic measures of ad effectivenessB among the ,>% users. ,u Plessis attributes the results to the fact that on most recent&model ,>%s! Tit is not eas to fast&forward through a commercial.U To skip an advertisement without going past it! a viewer has to pa close attention to it on the ,>%. 5urthermore! when $illward Brown showed a theater full of volunteers some fast&forwarded ads! complete with static and other electronic interference! it found that people were able to mentall process the commercials. %ecall was no worse than the overall average recall of T> ads. $ost viewers who remembered the content of the speeded&up commercials reported having seen them beforePevidence thatSs consistent with other findings b the firm. A%ecall was of course lower for ads the viewers hadnSt seen before.B To ensure that spots are seen at least once at regular speed! advertisers should consider placing them initiall on programs likel to be watched as the Sre broadcast! such as sports or news shows! du Plessis advises. The recent proliferation of set&top bo8es has dramaticall increased the number of homes with ,>%s: Some 6/O of 9.S. households had the technolog when Nielsen did a surve in .//0. As

for how man ads get skipped b ,>% users! one stud estimates -HO. But therein lie opportunities! suggests ,uke 9niversit Ss 1enneth ". 4ilbur in a 7ournal of Advertising article. As data accumulate on who skips what! advertisers can make better marketing decisions. (f our target demo tends to be an ad watcher! ou should pour more mone into 6/&second spots. (f not! focus our ad bu s elsewhere. T> advertisers have been like spiders! 4ilbur sa s! weaving webs and hoping bugs will fl into them. 4ith ,>%s giving viewers greater control! he advises advertisers to Tbehave more like bats: 9se sonar to figure out where the bugs are! and go get them.U

T"3I! 2 ,&@% '. #merging Trends in Advertising

V $inakshi "hauhan Asopa (n the present scenario! the advertising world is going through a d namic phase due to change in economic set&up and cut&throat competition in the market. "reative advertising tools are being used to lure the customers! engage their minds! trigger their emotions! and change their perception. The advertising world is making efforts to e8ploit a creativit and harness innovative skills! in order to push customer for desired product or service leading to emergence of various new concepts and trends in advertising sector. .. Present Scenario of 3utdoor Advertising in (ndia : New #merging Trends

V " P %ashmi 3ut&of&+ome A33+B advertising popularl known as outdoor advertising is propelling (ndia. A stud of the pattern and trends of 33+ in (ndia reveal that the first world countries dominate the minds of advertisers as usual. +istor reveals that all the paradigms are generall copied b the 4est. 3utdoor advertising also follows a similar trend. This article cites various national and international case studies and anal =es how western ideas influence the creative minds of the (ndian market. 6. %#S#A%"+

Addressable Advertising : 5uture of Television Advertisement V Samiran Sur! $rinalini Pande

Traditional T> advertisers are facing challenges because of multi&platform distribution that fragments the target viewers. Advertisers cannot measure their %o( immediatel and the amount of wastage ads is also unpredictable. 9sing Personal >ideo %ecorder AP>%B! viewers can skip ads in a simple wa ! which is also a threat to the advertising industr . $ost of these deficiencies can be covered up b (nternet Protocol Television A(PT>B through its inherent characteristics like addressabilit ! interactivit and measurabilit . :. %#S#A%"+

"onceptual 9nderstanding of #lectronic Advertising for "ause %elated $arketing "ampaigns in (ndia "ause %elated $arketing is one of the most talked about concepts in marketing function. Though its implementation b (ndian organi=ations is not noteworth ! organi=ations are looking forward to adopt this concept. This article mainl draws attention towards the usage of electronic advertising followed b different organi=ations for "ause %elated $arketing campaigns. <. "AS# ST9,J

Star #nters into a New 3rbitW V %upali Pardasani 7une '6! ./'/! the (ndian Television (ndustr witnessed a well&established brand! which is not onl popular but also a market leader in the industr ! making an attempt towards brand refresh to change and reflect fresh perspectives and new thinking. The much publici=ed Star Plus Awards ceremon was chosen as an occasion for the rebranding of Star Plus! where the new rub Star logo was unveiled with the fresh tag line of T%ishta 4ahi! Soch Na iU and an e8clusivel composed signature tune. X%efer mag in lib for full article

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T"3I! 3 )rticle 1 Public relations is a profession! craft! or ?ob categor Ptake our pickPbased on appl ing factual information and opinion to persuade people toward a particular perspective. 4hether ouIre attempting to position a compan or product as a categor leader! gain permission from a communit to make changes! or push a law through the legislature! P% needs to tell interesting et believable stories that make the target audience consider a new perspective or see the sponsor in a new light. (f our stories arenIt understandable! interesting! provocative! or supportable Aread accurate and believableB! then our publicit effort probabl hasnIt got wheels. ItDs all a0out the storyE (tIs prett ama=ing that this basic idea is missed b so man business managers! marketers! and promoters. The essence of stor telling is newness or newsworthiness. ;ook at the following hints for potential news value: Effect: how man people were! or are! affectedPor will beQ Timeliness: did the event occur ver recentl Q Revelation: is there significant new information! previousl unknownQ Proximity: was the event nearb geographicall Q Oddity: was the event highl unusualQ Entertainment: does it make for a fun stor Q Celebrity: was an one famous involvedQ

Another wa of thinking about the stor telling challenge! particularl in the commercial world! is bringing MwhatIs differentM into our stor . $arketing gurus 7ack Trout and Al %ies have long e8plained the need for differentiation and itIs never truer than when ou begin a P% campaign. (n spite of the immense overuse of the word Mpositioning!M few trul understand what is involved in achieving perceptual separation in the minds of the market. %ead an of their books! such as Positioning, The Battle for Your ind! Trout on !trategy, or The "all of #dvertising and the Rise of PR! or man others! so ou can incorporate clear! simple thinking and strategic direction into our campaign planning. ,iscovering! understanding! enunciating! and demonstrating a clear and simple difference in language is essential to the success of both the public relations campaign and the business or political venture. A memorable slogan for this is M,istinct or #8tinct.M

The Aance o. Ai..erentiation: 'earn It The first thing an one managing a P% effort needs to ask is M4hatIs newQM: 4hat are we doing or what can we sa thatIs both important to our audience and unlike what competing entities are sa ingQ +ow can we effectivel separate what weIre sa ing or doing from the communications noise affecting the people we want to connect withQ 4hat kind of an interesting stor Ainteresting to our audience! that isB can we tell that will make them pa attention and help us to gain share of mindQ ,o we need to be contrarian or outrageousQ "an we discover some ke truths that others havenIt e8pressedQ $ost of the time! answers are l ing around and are @uite obvious: 4hat strongl held beliefs about related issues and trends do the organi=ationIs managers holdQ Are the being e8pressedQ "an ou Mput a face onM the organi=ation b giving voice to these beliefsQ Those are all handles for a P% pro to grab when looking for stories that can give the campaign some legs. $ost often the stor thatIs interesting or that will garner attention in the commercial sector isnIt about the product or service ouIre selling. $ore likel ! itIs about how people are using our products or the competitionIs and the positive effect itIs having on their lives. The stor ma also be about whatIs not available! what people need that isnIt et provided or one our compan will perhaps be introducing months from now. New concepts can be the basis for great stor telling. Persuading managers to e8press their opinions and become the voice of their organi=ation or compan can be difficult. +owever! teasing ideas out of those who should be speaking for the compan can also be a fun part of public relations work. 3nce the Ive done it a few times! survived! and seen their name in print! the Ill be more willing to be public with their ideas. ;istening and reading what tends to be! these da s! in PowerPoint presentations Adoes an one still write in complete sentencesQB! can often uncover relevant and effective stor ideas. 4hether ouIre practicing public relations within a compan or as agenc counsel! the time spent listening to management and clients or reviewing their written output can uncover man stor ideas or angles. %eading related industr news is another ke wa of discovering appropriate stor ideas. All P% pros need to invest time sta ing abreast of whatIs going on in the industries or market sectors in which the Ire working. %eading provides an added wa of seeing potential stories ou can tell or to which ou can hitch our stor . (t also familiari=es ou with what ke ?ournalists are covering. 1nowing that is essential as well.

Armed with a solid list of stor ideas that are connected to the essential difference ou want people to perceive about our organi=ation... will help make all the aspects of a P% campaign roll forward with greater vitalit and impact. 5irst! get the strategic stor down! and the P% programIs tactics will flow naturall from of it. %ead more: http:EEwww.marketingprofs.comE2Epr&persuasion&is&all&about&stor &and&positioning& kan=ler.aspYi8==.-;+)8S"/

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T"3I! * )$TI!'& 1 http:EEhbr.orgE.//<E/-Enew&laws&of&the&?ingleEarE' New ;aws of the 7ingle b ;eigh Buchanan "ultural critics mourn the passing of an art formPbe it the silent movie! the pinup! or the penn dreadful. The most recent sub?ect of eulog is the ?ingle! pronounced dead b ! among others! the Boston )lobe and Steve 1armen! author of the new book 4ho 1illed the 7ingleQ )uilt parties include the high cost of recording original work! music companies eager to license popular songs! and a ?aded public. T5or most corporate advertisers! ?ingles are no longer viable!U sa s #ric 1orte! vice president and musical director of the advertising giant Saatchi * Saatchi. T"reativel ! itSs not on the cutting edge. (tSs considered old&fashioned.U Still! effective ?ingles perform a uni@ue service: marr ing the name of a product or compan with a melod that clings to the mind like a burr. $arketers love the borrowed e@uit the get from popular songsPthink "adillac and ;ed Leppelin! $icrosoft and the %olling StonesPbut the connection isnSt organic. The da will come when ;enn 1ravit= sings about that little lad and consumers wonSt picture her in )ap ?eans. And thereSs nothing stopping more than one compan from licensing a single song. T(Sve heard ZAinSt No $ountain +igh #noughS used b three different advertisers at the same time!U sa s 1orte. So is there life left in the ?inglePor in the ?ingle reimagined for a new ageQ The (nternet is one obvious home for ?ingles: on a 4eb site or accompan ing pop&up ads. A visitor to ,uracellSs site is greeted b the batter makerSs signature three notes. "ould other marketers achieve similar effects with slightl less minimalist dittiesQ TThe best part of wakinS up!U reads the message on 5olgersS home page. "onsumers mentall suppl the tune! but the coffee compan could do it for them. "ell phones might also host ?ingle like snippets! suggests #ric Bonabeau! chief scientific officer at (cos stem! a technolog and strateg compan . T"ell phones are ideal because simple stimuli are more acceptable there than on television! and ?ingles are relativel simple.U And while pigg backing on popular tunes breeds positive associations! Tmarketers ma be able to use new auditor displa techni@ues to create specific sounds designed to elicit specific behaviors!U Bonabeau sa s. 7ingle content! too! could stand an update. (n the age of iron ! Ta lot of the best advertising pokes fun at itself!U sa s 1orte. T7ingle parodies are ripe for having fun.U +e speaks approvingl of Ama=onSs retro T> spots in which a red&sweatered chorus sings the vendorSs praise. Some folks

adored Athough others hatedB last earSs Fui=nos campaign featuring two bi=arre koala&like creatures crooning! T4e love the subs.U Seth Stevenson! a writer for Slate who deconstructs advertising! praised the spot Aand b e8tension the songB for educating consumers about the brand. T4eSre told that Fui=nos subs are tast ! crunch ! warm! and toasted!U Stevenson sa s. T4eSre introduced to the concept of the pepper bar.U TThe spots that we remember through the ears are the ones that sang to us about a product! or danced for us about the product! or entertained us musicall about the product for 6/ seconds!U writes Steve 1armen. TAsk an one over 6/ whatSs in a Big $ac! and the will tell ouWbecause it was sung.U So there ma still be a role for ?ingles in marketing. ,onSt underestimate the appeal of simplicit in a complicated age.

T"3I! + )$TI!'& 1 #thical (ssues 4hen $arketing To "hildren 5eb .6! ./'/ Intro(uction $arketing ethics is an area that deals with the moral principles behind marketing. #thics in marketing applies to different spheres such as in advertising! promotion! pricing. +owever! for purposes of this essa ! the ethics of advertisements will be dealt with especiall in relation to children. A$ohandeep! .//'BB $an marketers and anal sts have agreed that children are marketerIs best friend. This is backed up b evidence from watch groups such as $edia "hannel. (n the ear .//2! the highlighted the fact that in the 9nited States! close to two billion dollars was spent on advertisements to children. (t was also revealed that children greatl affect the commodities their parents bu . #stimates done in this field show that pro?ects tailored for children in the ear .//- totalled fift two billion dollars. A$c)ee and +eubusch! '002B %egardless of all this potential returns that children can give manufacturers and their marketers! there are ke ethical issues that arise in the discussion. 5or e8ample! do children have the capabilit of understanding some of the intricate marketing tacticsQ ,o children posses the final bu ing powerQ ,o marketers need to get permission from their parentsQ And do children understand the negative effects of some of the products advertised to themQ These ke @uestions will be anal sed in relation to business pressures then recommendations will be made.

Fey ethical issues in marketing to chil(ren In2ol2ing :sychologists in market research Some companies have become notorious for the utilisation of ps chologists in their advertising and marketing campaigns. Normall what such companies do is that when tr ing to create marketing strateg ! the will involve ps chologist to tell them about tactics that the can use to influence children. Since ps chologists understand the wa childIs mind works! the can help marketers create campaigns that will be directl aimed at them and those ones that can easil influence their choices. This trend has becoming so alarming that the American Ps chological Association has raised an alarm about it. The have set up a committee to estimate the effect that the involvement of ps chologists in the marketing process of childrenIs products has on them. The group has asserted that no ps chological principles should be used when marketing to children. The are also recommending that there should be some sort of strateg to protect the oung ones from e8ploitation though the use of ps chological plo s. ABeder! '00HB The basic framework which steers marketing ethics revolves around three main issues. These areD values stakeholders processes $arketing ethics that are done on a value inclined framework are those one that involve the anal sis of the kind of value that the marketing idea creates. So advertisements ma instil in their target audiences positive or negative attributes. This all depends on their implementation. 5or e8ample! an advertising targeting a child ma become a problem if it violates the right to privac ! transparenc ! honest or autonom . B using ps chologists in the process of creating advertisements for children! marketers are imposing upon childrenIs right to autonom and transparenc . The tr stud ing childrenIs behavioural trends and then use this to e8ploit those children. This is @uite unethical. The process oriented framework in marketing ethics is founded on the basis of anal sing marketing ethics through the categories that marketers use. 5or e8ample research! promotion and placement must be done in an ethical manner. This is something that marketers have chosen to ignore because their research is not done in an ethical manner. Their research involves using ps chological e8perts who ma use their knowledge to take advantage of children who belong to vulnerable groups A;i=abeth! .//'B Targeting chil(ren alone $arketers who create marketing campaigns that are ?ust directed towards children onl are engaging in unethical marketing practices. This is because children are naive. The are at a stage of development called pro8imal development. At this stage! children simpl take up elements of what the perceive in the world around them and then use it in various aspects of their lives.

There is a certain level of trust that children have over and above than one of adults. The lack the abilit to weigh arguments in a sober and even sometimes a c nical wa . "onse@uentl ! this makes them ver vulnerable to e8ploitation. A$urph et al! .//:B #8amples of advertisements that are directed towards children alone are those ones that have cartoon characters and are seen as specificall meant for children. At that point! children will feel like the are the onl ones with the abilit of purchasing the item et it is their parents who have to foot the bill. 9nethical advertisements are those ones that do not involve getting consent from parents. $ost of the time such advertisements are usuall aired in the afternoon during kidIs programming sessions. The usuall create desires in children to have those advertisements at all costs. 4hen advertising is done without parental consentD that is when children are watching shows on their own then it become unethical. "hildren are too oung to realise the manipulations that are going on through television or media advertisements. The also do not realise the financial pressures that come with the purchase of items. (t would therefore be unethical for marketers to leave parents out of their marketing strategies. Normall ! ethical advertisements are those ones that re@uire children to get their parents involved in the marketing place. This can be achieved b stating it directl in the advertisement. (t can also be achieved b limiting some childrenIs products in parental maga=ines or targeting families in general instead of ?ust children. A4a mack! .///B Advertisements targeting children alone have shown their effects in a number of wa s. (n the ear .//2! it was found that about fift eight percent of all the items purchased b children Athrough their allowancesB are sweets and to s were the ne8t highest items to be purchased b children. This took up a whooping thirt percent. To s and cand are all items that are advertised directl children hence the staggering statistics. A,avidson! .//.B Advertising to children alone brings out ver fundamental ethical issue. (t highlights the power anal sis issue in marketing. An form of marketing that claims to be ethical must adhere to the power balance principle. The scales must not be tipped towards the consumer neither should the favour the marketer either. 4hen marketers target vulnerable markets! the tend to make the situation favour them. This is what is called caveat emptor in marketing. (t is an unfair scenario and is also e8ploitative in nature. A$c)ee and +eubusch! '002B T pes of products! manner of advertisements and other @ualities can indicate whether or not an advertisement is targeting children. (t should be noted that there are certain elements that if conducted b marketers ma be deemed unethical for e8ample! when an advertisement is made in such a manner as to impl that it is meant for children. Some elements to watch out for areD music images voices colour

These are all elements that are meant to draw on childrenIs attention. Besides this! there ma be certain activities e8pected to captivate children such a drawing! then those advertisements ma be meant for them. Besides that! some advertisements ma have characters that are designed for that demographic group. Sometimes some advertisements ma be placed in publications that are usuall read b children alone. The ma also be placed in areas that have children. A$urph et al! .//:B All these features can be deemed unethical if the will be seen or heard b children e8clusivel ! 5or e8ample! if the advertisement is placed in a publication that is read b children alone then this is unethical because there is not parental consent there or if it is broadcast at times when children could be watching without parental consent. A;i=abeth! .//'B Sometimes the kind of content in the advertisements matters too. Advertisements that are created in such wa s as to make children feel less about themselves if the lack that product ma be deemed unethical. Also advertisements that will promote harmful products to children are also unethical. 5or e8ample! there were certain to s from "hina that had an e8cess of chemical elements and e8posed certain risks to children who were pla ing with them. (f advertisements posses those characteristics! then the ma be considered unethical. $ecommen(ations $es:onsi0le marketing The issue of marketing itself has two main components. The first group is made up of the abolitionists and the second are the libertarians. The abolitionists believe that all advertising to children is wrong and that it should be completel eliminated. But this is something that is unrealistic and cannot be feasible in toda Is fast paced and commercial world. The other e8treme is held b the liberalists who believe that advertisements to children should be left as the are. The insist that societ shapes advertisements and that advertisements do not change moral values. But this is den ing the obvious. The fact that children in the 91 and even in other parts of the world spend the largest portion of their leisure time watching television implies that the will pick up some of the habits depicted on their screens. A4a mack! .///B (n light of the above facts! it is important to come up with a compromise on the issue through taking up responsible marketing. "hildren can still be considered as a target audience for marketing of retail products! however! this should be conducted in such a responsible and sociall sustainable manner. There are three main alternatives available for marketers targeting children and these areD viewing children as docile consumers viewing children as non& consumers viewing children as informed consumers "hoosing the non&consumer part would not be ver market friendl because as it has been seen from earlier parts of the essa D children have substantial levels of bu er power. (t is would

therefore be uneconomical not to tap this ver valuable market resource. 3n the other hand! viewing children as docile consumers causes a lot of ethical controversies that have been raised earlier. "onse@uentl ! the most sustainable form of marketing should be viewing children as informed consumers. $arketers need to advertise and market their products in such a wa that there will still be room for them in the future. This will be effectivel achieved b informing children about marketing ideas. This will enlighten them and give them a ver valuable assetD choice. A$c)ee and +eubusch! '002B (nforming children about the intricacies of marketing at an earl age will go a long wa in ensuring that children can understand the fundamentals of the commercial world. (t will mean that childrenIs naivet will not be taken advantage of and that the will have the power to decide for themselves whether or not products are good for them. The ethical issues that have been brought forward stem from the fact that children are too oung to understand the main reasons behind marketing displa s. (nforming them about this will drasticall reduce those ethical concerns and will at the same time still allow marketers to go about marketing their products. ABeder! '00HB (t should be noted that some countries like Sweden have argued that children can understand the effects of commercial marketing after reaching the age of twelveD some have suggested four and others ten. The claim that at that point! be it :! '/! or '.! children can understand the commercial world and the e8ploitation tendencies that their worlds present them. "onse@uentl ! human rights groups claim that marketers should not target children that fall below that group. But that debate can be eliminated if children below those established ages are made aware of the commercial world. $egulations This is something that is alread in place! but still needs more emphasis. Advertisements should not be aired during childrenIs programming as the are likel to be unsupervised at that point. )overnments should institute statutor regulations on television advertisements. Advertisements should also be edited such that the do not seem to appeal to the child directl . The should be made in such a wa that the will involve the parent or famil . A$ohandeep! .//'BB !onclusion Advertisements to children have sparked off lot of controvers resulting in various reactions in various countries. +owever! e8perts agree that unethical marketing occurs when advertisements are directl aimed at children without getting consent from parents. 3rganisations can go about this issue through regulating their content! changing their times and embarking on a consumer education to make their oung audiences aware. A4a mack! .///B

T"3I! 5

)$TI!'& 1 Stick situation at "adbur (ndia "adbur (ndia head@uarters in $umbai b Samar Srivastava 1raft 5oods owned "adbur (ndia is in a regulator mess after some of its officials tried to bribe their wa through important approvals At .:./ pm on September -! ./'/! an important rende=vous took place at the Ta? "handigarh. %a?an Nair! who is responsible for securit at "adbur Ss operations in (ndia! was there to meet a man who had provided canteen services to the compan Ss factor in Baddi! +imachal Pradesh. Sensing the gravit of the situation! Nair had informed his boss Adrian 4ong! director securit and special investigations at 1raft 5oods! who had flown over :!/// km from Singapore for the meeting. At the meeting! $ohit! the canteen services provider! went about detailing allegations of corruption and wrongdoing at the compan Ss Baddi facilit . 4hile $ohit conceded he was upset about the manner in which his services were terminated! he said he had enough evidence to show the compan had bribed government officials. +e planned to make life difficult for "adbur ! which was taken over b 1raft 5oods in ./'/. Si8 months later! in 5ebruar ./''! in a filing with the 9S markets regulator Securities and #8change "ommission AS#"B! 1raft 5oods disclosed that it had carried out a review of compliance s stems at "adbur ! and admitted that it had found facts and circumstances that warranted further investigation in (ndia. It also a((e( that on Fe0ruary 19 20119 the com:any ha( recei2e( a su0:oena .rom the %&!- The su0:oena9 issue( in connection 8ith an in2estigation un(er the Foreign !orru:t 3ractices )ct (F!3)) 8as relate( to a !a(0ury .acility that Fra.t ac?uire( in In(iaThe S#" had asked for information regarding dealings with (ndian government agencies and officials to obtain approvals related to the operation of that facilit and that 1raft was full co& operating with the investigation.

(mmediatel following the whistle&blower incident! 1raft 5oods kicked off a detailed investigation of the case in (ndia! led b #rnst * Joung. (t also sought the legal opinion of

corporate law firm ALB * Partners. The reports of both #rnst * Joung and ALB * Partners on the issue are with 5orbes (ndia. Also! 1raft engaged the services of 9S law firm Baker and $c1en=ie! which counts 5"PA cases among its specialities. The firm will submit its report directl to the S#". (t ma take a few weeks or at least a couple of months for the S#" to rule on the nature of the violation. &2en as this intriguing case 8in(s (o8n to8ar(s its .inal outcome in the #%9 !a(0ury In(ia coul( .ace the 8rath o. the !entral &6cise !ommissioner in ,e8 Aelhi as 8ell)lrea(y9 senior e6ecuti2es9 inclu(ing )nan( Fri:alu9 its managing (irector9 ha2e 0een summone( to the &6cise !ommissionerBs o..iceThe o..ices o. !a(0ury In(ia in Mum0ai ha2e 0een rai(e(9 an( com:uters an( other (ocuments con.iscate(5our ke senior e8ecutives! who were directl involved in the case! including two who were e8ecutive directors on the board! have alread left the compan in the last ear. "J Pal! the non& e8ecutive chairman of "adbur (ndia! sa s! T4e are aware of the matter and whatever action had to be taken has been taken.U +e declined to discuss the matter of the 5"PA investigation an further or comment on the possible outcome of the #8cise ,epartment investigation. So what reall transpired inside the Baddi plantQ The #8cise Slip&up (n 7une .//0! "adbur (ndia set up a large e8tension facilit at their e8isting operations in the village of Baddi in +imachal Pradesh! churning out < Star and ,air $ilk chocolates and colorful button&shaped )ems. 5or the compan ! this capacit increase was a strategic investment. 5or not onl did it e8pect to catch up with galloping demand for its products! it also knew it was on track to receive a substantial ta8 break. 3ver the course of the ne8t '/ ears! the management e8pected ta8 savings! to the tune of -/ million pounds A%s <.' croreB. 3n the last da of 7une .//0! the compan wrote to the "entral #8cise ,epartment. (t said! T4e are pleased to inform ou that we have set up a new manufacturing facilit at Baddi.U The letter re?ueste( the (e:artment to grant them an e6em:tion .rom :aying e6cise ta6es .or the ne6t 10 years-

(nstead of granting approval! as "adbur had hoped! the #8cise ,epartment hit back. After receiving "adbur Ss letter! the "entral #8cise ,epartment responded with uncharacteristic speed.

) month later9 it 8rote 0ack asking .or (etails on the groun(s un(er 8hich the e6em:tions 8ere a::lie( .or- It aske( !a(0ury In(ia 8hether the goo(s 8ere 0eing manu.acture( at the location or 8hether they 8ere 0eing sim:ly re:acke(Gto recei2e the e6em:tion9 the com:any ha( to :ro2e that the unit 8as com:letely in(e:en(ent- The &6cise Ae:artment e2en 8ante( a H.lo8 chart o. the manu.acturing :rocessI to :ro2e that goo(s 8ere 0eing manu.acture( at the site;astl ! it asked for details of investment in plant and machiner at the unit. The letter put officials at "adbur (ndia on the back foot. Not onl were the unprepared to answer these @uestions! the knew the would have a tough time proving that this was indeed a new unit! thereb making their claim for a ta8 break untenable. Noted ta8 law er ;akshmi 1umaran was engaged as the compan looked for a wa out. $ea( more: htt::CC.or0esin(ia-comCarticleCreal<issueCsticky<situation<at<ca(0ury< in(iaC33*;;C1Ji6KK25&@@sc3r )$TI!'& 2 http:EEwww.apa.orgEmonitorEsep//Eadvertising.asp8 Advertising to children: (s it ethicalQ September .///! >ol 6'! No. H Print version: page <. Some ps chologists cr foul as peers help advertisers target oung consumers. BJ %#B#""A A. ";AJ #ver since he first started practicing! Berkele ! "alif.! ps chologist Allen ,. 1anner! Ph,! has been asking his ounger clients what the wanted to do when the grew up. The answer used to be Mnurse!M MastronautM or some other occupation with intrinsic appeal. Toda the answer is more likel to be Mmake mone .M 5or 1anner! one e8planation for that shift can be found in advertising. MAdvertising is a massive! multi&million dollar pro?ect thatIs having an enormous impact on child development!M sa s 1anner! who is also an associate facult member at a clinical ps cholog training program called the 4right (nstitute. MThe sheer volume of advertising is growing rapidl and invading new areas of childhood! like our schools.M According to 1anner! the result is not onl an epidemic of materialistic values among children! but also something he calls Mnarcissistic woundingM of children. Thanks to advertising! he sa s!

children have become convinced that the Ire inferior if the donIt have an endless arra of new products. Now 1anner and several colleagues are up&in&arms about ps chologists and others who are using ps chological knowledge to help marketers target children more effectivel . The Ire outraged that ps chologists and others are revealing such tidbits as wh 6& to 2& ear&olds gravitate toward to s that transform themselves into something else and wh H& to '.& ear&olds love to collect things. ;ast fall! 1anner and a group of <0 other ps chologists and ps chiatrists sent a controversial letter protesting ps chologistsI involvement to APA. (n response! at its 7une meeting! APAIs Board of ,irectors acted on a recommendation from the Board for the Advancement of Ps cholog in the Public (nterest and approved the creation of a task force to stud the issue. The task force will e8amine the research on advertisingIs impact on children and their families and develop a research agenda. The group will look at the role ps chologists pla in what some consider the e8ploitation of children and consider how ps cholog can help minimi=e advertisingIs harmful effects and ma8imi=e its positive effects. The group will also e8plore implications for public polic . Task force members will be chosen in consultation with ,iv. 62 A"hild! Jouth and 5amil ServicesB and other relevant divisions. 9nethical practicesQ The letter protesting ps chologistsI involvement in childrenIs advertising was written b "ommercial Alert! a 4ashington! ,.".! advocac organi=ation. The letter calls marketing to children a violation of APAIs mission of mitigating human suffering! improving the condition of both individuals and societ ! and helping the public develop informed ?udgments. #rging )3) to challenge 8hat it calls an La0use o. :sychological kno8le(ge9L the letter asks )3) to: Issue a .ormal9 :u0lic statement (enouncing the use o. :sychological :rinci:les in marketing to chil(ren)men( )3)Ds &thics !o(e to limit :sychologistsD use o. their kno8le(ge an( skills to o0ser2e9 stu(y9 mislea( or e6:loit chil(ren .or commercial :ur:oses'aunch an ongoing cam:aign to in2estigate the use o. :sychological research in marketing to chil(ren9 :u0lish an e2aluation o. the ethics o. such use9 an( :romote strategies to :rotect chil(ren against commercial e6:loitation 0y :sychologists an( others using :sychological :rinci:les-

MThe information ps chologists are giving to advertisers is being used to increase profits rather than help children!M sa s 1anner! who helped collect signatures for the letter. MThe whole

enterprise of advertising is about creating insecure people who believe the need to bu things to be happ . ( donIt think most ps chologists would believe thatIs a good thing. ThereIs an inherent conflict of interest.M AdvertisersI efforts seem to work. According to marketing e8pert 7ames 9. $cNeal! Ph,! author of MThe 1ids $arket: $ ths and %ealitiesM AParamount $arket Publishing! '000B! children under '. alread spend a whopping R.H billion a ear. Teen&agers spend R'// billion. "hildren also influence another R.:0 billion spent b their parents. The effect this rampant consumerism has on children is still unknown! sa s 1anner. (n an informal literature review! he found man studies about how to make effective ads but not a single stud addressing adsI impact on children. (nstead! he points to research done b Tim 1asser! Ph,! an assistant professor of ps cholog at 1no8 "ollege in )alesburg! (ll. (n a series of studies! 1asser has found that people who strongl value wealth and related traits tend to have higher levels of distress and lower levels of well&being! worse relationships and less connection to their communities. MPs chologists who help advertisers are essentiall helping them manipulate children to believe in the capitalistic message! when all the evidence shows that believing in that message is bad for people!M sa s 1asser. MThatIs unethical.M ,riving out ps chologists Ps chologists who help companies reach children donIt agree. Take 4hiton S. Paine! Ph,! an assistant professor of business studies at %ichard Stockton "ollege in Pomona! N.7. As principal of a Philadelphia consulting firm called 1id.1id! Paine helps 5ortune <// companies market to children. Paine has no problem with launching a dialogue about ps chologistsI ethical responsibilities or creating standards similar to ones used in "anada and #urope to protect children from commercial e8ploitation. Such activities will actuall help his business! he sa s! b giving him leverage when clients want to do something that would inadvertentl harm children. 4hat Paine does have a problem with is driving ps chologists out of the business. M(f ou remove ethical ps chologists from the decision&making process in an adIs creation! whoIs leftQM he asks. MPeople who have a lot less sensitivit to the uni@ue vulnerabilities of children.M 3thers who have read the proposal point out that ps chological principles are hardl confidential.

M4e canIt stop alcohol or tobacco companies from using the basic research findings and theories found in te8tbooks and academic ?ournals!M sa s "urtis P. +augtvedt! Ph,! immediate past

president of ,iv. .6 A"onsumer Ps cholog B and an associate professor of marketing at 3hio State 9niversit in "olumbus. MThe same issue e8ists for all sciences: the information is available in public libraries.M The problem with tr ing to regulate the use of ps chological principles is that Mpeople acting in wa s ps chologists find ob?ectionable probabl arenIt members of APA an wa !M sa s +augtvedt! who received a cop of the "ommercial Alert letter. +e believes that having general guidelines as to appropriate uses and areas of concern would be beneficial to all parties. ,aniel S. Acuff! Ph,! for e8ample! draws on the child development courses he took during his graduate schooling in education to advise such clients as ,isne ! +asbro and 1raft. +is book M4hat 1ids Bu and 4h : The Ps cholog of $arketing to 1idsM A5ree Press! '002B draws on child development research to show product developers and marketers how to reach children more effectivel . To Acuff! the letter to APA is not onl an MunconstitutionalM attempt to limit how professionals make their living but also a misguided overgenerali=ation. Since Acuff and his partner started their business in '020! the have had a polic guiding their choice of pro?ects. As a result! the turn down assignments dealing with violent video games! action figures armed with weapons and other products the believe are bad for children. Their work focuses instead on products that the consider either good for children or neutral! such as snacks and sugar foods parents can use as special treats. The letter to APA fails to acknowledge that ps chological principles can be used for good as well as bad! he sa s. M( donIt agree with black&and&white thinking!M sa s Acuff! president of Jouth $arket S stems "onsulting in Sherman 3aks! "alif. MPs cholog in itself is neither good nor bad. (tIs ?ust a tool like an thing else.M

%ebecca A. "la is a writer in 4ashington! ,.".

T"3I! * !ase %tu(y: I4M 4ran( &?uity $estoration an( )(2ertising &2olution
This case was written b Professor $ichele )reenwald! >isiting Professor of $arketing at +#" Paris! for use with #dvertising and Promotion: #n $ntegrated ar%eting Communications Pers&ective ' ( th edition b )eorge #. Belch and $ichael A. Belch. (t is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation.

The case )as com&iled from &ublished sources and intervie)s )ith executives at $B ather+

and Ogilvy *

Intro(uction ,uring the '02/s and ZH/s! (B$ was one of the most successful companies in the world. The compan had e8perienced strong growth in both revenue and profits and had a virtual stranglehold on the market for mainframe computers. (n fact the compan was often referred to as TBig Blue!U a nickname derived from its massive blue mainframe computers. 5or four consecutive ears in the '0H/s! (B$ held the top spot in "ortune maga=ineSs annual list of the most admired companies in the 9nited States. +owever! b '006 the @uintessential TBlue "hipU compan had reached its nadir. 3ver the three previous ears! (B$ had lost a total of R'< billion and its stock price was at an 'H& ear low. The brand had fallen below number .</ in (nterbrandSs annual surve of the most valued brands with a brand value! estimated at a negative R</ million dollars. The e8plosive growth of personal computer networks threatened (B$Ss lucrative mainframe and minicomputer business and the compan was struggling to turn the situation around. (n the late '0H/Ss and earl 0/Ss! the drivers of innovation and change in information technolog were smaller! nimble companies like $icrosoft! "ompa@! ,ell! 3racle and others who offered less e8pensive s stems than (B$ that could basicall accomplish the same tasks. (B$ had fallen behind in technolog as its top management stubbornl clung to the notion that traditional mainframes! which had been the compan Ss primar strength! would maintain their dominant position in the marketplace. "ompounding the problem was the fact that (B$ had become a bloated and inefficient bureaucrac that had lost touch with its customers and had a risk&averse culture relative to its competitors. An image on the cover of "ortune maga=ine in the earl '00/Ss depicted (B$ as a dinosaur. The situation had become so serious that the board of directors considered breaking up (B$ into several companies that would be better able to compete in emerging technolog markets against the smaller! more nimble pla ers that were gaining ground at (B$Ss e8pense. (n April '006! ;ou )erstner became the new "hief #8ecutive 3fficer A"#3B of (B$ and was given the task of turning around the compan . )erstner was a former $c1inse consultant who had built his reputation through senior assignments at American #8press and %7% Nabisco. Although not known as a technophile! he started b speaking with customers! large and small! around the world to gain an understanding of their needs and how the perceived (B$. Based on their feedback! )erstner came to the conclusion that (B$ was worth more in the long run as a whole! rather than as disparate pieces. +e envisioned a three&legged compan that! with offerings of software! hardware and consulting services! could s nergisticall leverage its strengths to solve specific problems that would improve their customersS performance and business results. )erstner brought on board Abb 1ohnstamm who had worked well with him at American #8press. Together! the made a radical move b consolidating all (B$ advertising creative work worldwide with one agenc V 3gliv * $ather. Prior to the consolidation! (B$Ss advertising was handled b a network of appro8imatel :/ different agencies around the globe. +owever! (B$Ss top management felt the compan was pro?ecting too man images with its advertising divided among

so man agencies. The decided that b consolidating all of its advertising with one agenc ! (B$ would be able to present a single brand identit around the world. "hris 4all! worldwide creative head of the (B$ account for 3gilv * $ather! noted that: T(t was a massive consolidation ?ob of a ver comple8 brand in a ver comple8 categor . The challenge for 3gilv was to take a brand with heritage from the past and bring it to the present: taking what was good and truthful! and infusing it with a modern voice. 4e have taken a ver comple8 topic in an environment of constant change! in which the products evolve but are not @uite MnewM & products ou canIt show and often canIt demonstrate. 3ur challenge has been to keep the (B$ brand fresh! interesting and topical & because at the end of the da what ouIre selling is trust.U The consolidation followed a reorgani=ation and change in (B$Ss business and communications strateg that was initiated b )erstner. Prior to the reorgani=ation! (B$ had at its core '6 semiautonomous business units! each of which could develop its own independent business strateg with a concomitant marketing communications strateg . These businesses overlapped and inherent in the mi8 were potential communications conflicts. 9nder )erstner! the '6 units were reintegrated into a more cohesive whole. The strateg emphasi=ed the integration of the units and the ke role (B$ pla ed in technolog around the world! while reinforcing the heritage of the compan . "entral to the implementation of the new worldwide strateg was the global articulation of this vision in a single voice. H%olutions .or a %mall 3lanetI The first step taken b (B$ to pro?ect a single brand identit around the world was the launching of a new advertising campaign in 7anuar '00< with a contemporar tone known as TSubtitles.U The goal of the campaign was to communicate the message that (B$ delivers solutions that are simple and powerful enough to manage information an where! an time! and for an one. The tagline for the campaign was TSolutions for a Small Planet.U (t originated from a focus group in Paris where a participant made the observation that: T(tSs as if technolog is making the world smaller and bringing ever one closer together because we all share the same problems.U The commercials developed for the campaign used the same imager but were varied for each countr b the use of subtitles in the local language. The campaign targeted T"&levelU e8ecutives! such as "#3s! "(3s! and "53s! rather than the previous target audience of procurement and information technolog e8ecutives. The goal of the advertising was to conve that (B$ was capable of solving business problems! not ?ust hardware and software issues. The campaign was effective in communicating that technolog affects even average people around the world and (B$ is there with solutions for smaller as well as larger! more comple8 technolog needs. This new campaign was in line with ;ou )erstnerSs strategic vision for the compan which was for (B$ to be recogni=ed as Ta provider of solutions.U The campaign also communicated an important message that (B$ remained vigorous! innovative! and a purve or of technolog and solutions while retaining its latent strengths of global scope! leadership! and reliabilit . Several of the print ads from the TSolutions for a Small PlanetU campaign as well as a photo board of the TNunsU T> commercial are shown in the power point file that accompanies the case. 4hile the TSubtitlesU campaign was a step in the right direction! (B$ needed to go further creativel b showing prospective customers that the compan was hip to new technologies! understood their needs and issues! and had the solutions to make a difference. 1e to developing this kind of advertising was the need to build a creative group that had a deep understanding of business and technolog issues. (n '002! (B$ published a 6!///&word manifesto in The ,all !treet -ournal and The .e) Yor% Times! using cop written in business terms a "#3 or "(3 would use! rather than tech&heav terminolog . (t illustrated to potential customers that (B$ understood their business! spoke their language and had the e8pertise to help them solve their problems so the could

perform better. The photograph was ver Tstreet level!U providing the perspective that (B$ was out of the ivor tower and in the trenches working with its clients to help them solve their business problems. The H&<0usinessI !am:aign The TSubtitlesU campaign had one of the most successful runs of an image&oriented advertising campaign ever done b (B$. +owever! b the late Z0/s! the (nternet was growing as more companies were using it to conduct business and (B$ was working with them to support their electronic business processes such as advertising! merchandising! inventor management! order fulfillment and customer service. Thus! (B$ decided to position itself as the most comprehensive provider of end&to&end solutions for e&business. This led to the introduction of the Te&business campaign!U which had several sub&campaigns to support different pieces of (B$Ss business. These included Te&cultureU which focused on helping companies adapt to doing business on the web! Te& business peopleU which focused on (B$Ss global consulting services and Te&business toolsU which included (B$Ss products such as the ThinkPad personal computer and servers. The umbrella campaign recast all (B$ communications in relation to doing business online and helped the compan come to own the Te&businessU label. The campaign was give a contemporar look b producing television spots in black and white with a hori=ontal! oblong frame that created a screen with movie&t pe dimensions. The visual was framed in (B$Ss blue logo color! which evoked the brandSs longtime e@uit ! but at the same time! portra ed (B$ in a fresh! new wa . The spots were Tslice of businessU scenes in which business people e8perienced technolog problems that (B$ was able to solve. The commercials were witt and displa ed a sense of humor Atraits that were not previousl associated with (B$B! thereb pro?ecting a much hipper! Twith itU! and in&tune image onto the brand. A female voice&over was used! which was another s mbolic departure from its previous staid imager ! and different from most other business technolog advertising. The print ads were also done in black and white with onl the [ appearing in color AredB. As part of the #&business campaign! (B$ utili=ed testimonials around the theme of TGJL "ompan is an (B$ e&business.U ;arge! well&known firms such as $ercedes Ben= and $otorola! as well as others that were smaller and less known! were featured in the testimonials. A pool of print ads! illustrating the diversit of e&business customers! appeared in maga=ines! wild postings! outdoor billboards! and at airports. The campaign communicated the message that (B$ worked with companies of all si=es across a wide range of industries and its broad e8pertise made them the most knowledgeable advisers for almost an business. "ompanies started approaching (B$ asking to be included in the campaign as being portra ed as an Te&businessU enhanced the wa the were perceived b their customers. )reat s nerg accrued to (B$ from putting all their communications behind a unified and relevant message. At the end of '00H! (B$ did something formerl unheard of in newspaper advertising. 3gilv * $ather created a 6.&page color insert on heav stock paper with a compilation of the e&business print e8ecutions. (t included some surprising new content sprinkled throughout to create interest! a specific e8planation of what e&business was all about! and a call to action for those interested in finding out more about (B$ solutions for e&business. The timing for the campaign was right! as e&commerce and all things TeU were starting to e8plode. $oreover! (B$Ss association of e&business with their brand in a big wa at the outset of this e8plosion resulted in the compan pre&emptivel owning the term. "hris 4all of 3gilv * $ather noted that: TThe effect of this simple decision was that (B$ became one of the definers of how the world would talk about internet&based business! and this became a competitive advantage. B association! (B$ became known as being at the forefront of developing ideas and recogni=ing technolog trends: in short! it became a brand that Tgot itU. Prior to this campaign! (B$ was constantl in the position of living down their Tstodg U past! making it harder to compete against

$icrosoft and other hot! oung tech brands. But after e&business! (B$ became one of the leaders of the pack. The crash of the dot&coms made ever one skeptical of ./ something change&architects.U (B$Ss combination of steadfastness! depth! and its new! hipper! more cutting edge! and more Tin the trenches!U image helped the compan once again be viewed as a stalwart! in contrast to so man other fl &b &night high tech operations. 4ithin 'H months of running the e&business campaign! the (B$ brand had turned the corner and was on its wa back up. (n '00H (B$Ss sales topped RH/ billion for the first time ever and earnings were R-.6 billion. #ven more impressive was the growth in (B$Ss stock price which had risen from a low of R:' in the dark da s of earl '006 to nearl R'.< b the summer of '000. "ortune ran another cover stor on (B$ in '000. +owever! this time the headline read T5rom ,inosaur to e& business animal.U The H", Aeman(I !am:aign The Te&businessU campaign ran for several ears and was followed b T3N ,emand!U which was the first advertising campaign under Samuel Palmisano! (B$Ss new "hief #8ecutive who took over the leadership of the compan when ;ou )erstner retired in .//.. PalmisanoSs vision was to transform (B$ b dramaticall increasing its focus on the fast&growing Business Services market. Palmisano accelerated the shift in focus from Tcomponent valueU AP"s and machinesB to business value which involved providing end&to&end integrated solutions. This e8panded vision of T3N ,emandU business was based on the idea of how the world would work when businesses were full wired with broadband! all s stems were integrated! consumers had infinite choice! trends happened faster! companies provided better service and were more responsive to customer needs and business opportunities on a global scale. %ichard % an! of 3gilv * $ather! noted that: TAt its simplest level! 3N is about getting our compan to run better. 3N means our compan runs like clockwork. Business is smoother. ;ife is good. But people have heard all that before! so our first step was to create customer testimonials V "hina is 3N! Napster is 3N& to let people know that 3N ,emand is real and making a difference right now. 3ther e8ecutions&5ighting cancer is 3N. 5l ing Phones are 3N&speak to innovation and strategic e8pertise. ;ong cop e8ecutions let us get to the meat and potatoes of specific business issues. 3N works across all of (B$Ss product divisions. (tSs a rall ing cr for (B$Ss 6//!/// emplo ees. (tSs the marketing spearhead for Sam PalmisanoSs vision.U Being 3N means ouSre responsive and fle8ible. (t means being on our game: on budget! on track! on schedule. 4e wanted people to associate (B$ with that new! 3N ,emand wa of doing business.U ,eirdre Bigle ! >ice President! 4orldwide Advertising * (nteractive at (B$ noted that Twhile Ze&businessS was all about e&commerce and the (nternet! 3N ,emand was all about the technolog and movements such as suppl chain optimi=ation.U The red 3N button used in the ads! combined with the words ,#$AN, B9S(N#SS became the brand signature in all marketing materials. The slogan also became the rall ing cr for all compan divisions that cross&sell various (B$Ss products and services in an attempt to improve their customersS business performance. All of (B$Ss sales representatives & from its server division! to software! to outsourcing V were selling the on&demand concept along with their own products. 3N ,emandSs task was to drive the development of all of (B$Ss software and hardware! to make them capable of mi8ing with and managing applications from other vendors. 3ver time! (B$ began to define themselves less and less through their specific hardware and software products! and more as a total business solutions compan in which consulting services was the ke part of the T6&legged stoolU and a means to sell the compan Ss hardware and software. #& business was all about the (nternet and became too limiting for (B$ as the the needed to broaden their positioning. An (B$ e8ecutive noted: TBusiness automation has blurred the customar

demarcation between business and information technolog ! put (T at the heart of corporate strateg ! and elevated the understanding of the possibilities. As a result! companies increasingl look for partners who can skillfull combine business insight with technolog e8pertise.U (B$ purchased the consulting firm Price 4aterhouse "oopers in .//. to enhance their e8pertise in consulting services! their credibilit ! and to increase their client base. (B$ felt it was now uni@uel positioned to provide the combination of (T and business consulting e8pertise that firms of nearl ever si=e and in virtuall ever industr need in order to grow market share and revenue. The believed that no other firm in the world could deliver better on the combination of (T and business consulting to companies all over the world. As 4all Street anal st! ,avid "earle described it: T(B$ is morphing from a computer compan into a business e8pert! selling well&connected e8perts. (B$ is changing its definition from (nternational Business $achines! to international business models.U A ma?or challenge for 3gilv * $ather in evolving the advertising for (B$ was communicating the e8panding scope of what the (B$ brand stands for and the breadth of its business. The creative group had been given the task of describing (B$Ss offerings in a wa that sounds proprietar ! but at the same time was understandable! to an ever&larger group of business professionals. 4ith the ac@uisition of Price 4aterhouse "oopers and the increased focus on business services consulting! (B$ no longer was targeting primaril (T users. %ather it was marketing a broad line of products and services to top&level decision makers at companies and organi=ations of all si=es. HThe "ther I4MI an( H/el: AeskI !am:aigns Since its inception! the name (B$ has signified technolog . +owever as the information technolog consulting industr matured and web services were being built on open standards! organi=ations were shifting their definition of business value to include processes and enterprise optimi=ation. (n anal =ing this new trend! (B$ found itself faced with one of the biggest opportunities in its histor : the R'.. trillion Business Process Transformation Services ABPTSB market. ,emand for BPTS had escalated as companies increasingl reali=ed the value of teaming with a strategic partner to help redesign their functions and processes to become more profitable! efficient and competitive. (n .//<! (B$ set upon a mission to position itself as the leader of the BPTS market b increasing awareness of and consideration for its capabilities in this area to senior business e8ecutives. (B$ looked to 3gilv * $ather to develop an integrated marketing communications campaign to help establish awareness! credibilit ! and ultimatel preference for (B$ as a provider of business consulting services. Achieving this ob?ective was not an eas task as it re@uired maintaining (B$Ss e@uit of superior technolog and adding to it an e@uall strong perception that (B$ offers superior business consulting services as well. "hris 4all noted that T(B$ has a strong heritage as a technolog compan . A lot of people donSt reali=e the also do business consulting and not ?ust technolog consulting.U Thus! a ma?or challenge for the ($" campaign was to get "&level e8ecutives to recogni=e that there is another TsideU to (B$ that provides business transformation services. (n April .//< a campaign was launched using the tagline TThe 3ther (B$U which was designed to position the compan as a provider of business consulting services and communicate its e8pertise in areas not t picall associated with (B$. The creative used in the television commercials for the new campaign used imager that alternated between scenes of 1ing ArthurSs 1nights of the %ound Table wrangling with age&old business problems with counterparts at a contemporar business conference table doing the same. The metaphor of Sir ArthurSs Business %oundtable allowed for real issues to be discussed in a manner that was both informative and entertaining and to show how (B$ Business "onsulting could help businesses solve problems in specific areas. TThe 3ther (B$U campaign was unveiled during television coverage of the $asters )olf Tournament on "BS. The $asters was the ideal platform for the launch due to the large number of senior business e8ecutives

tuning in for the event. Also! since the $asters onl allowed advertising from three sponsors! (B$ was able to deliver its message with high fre@uenc and without the clutter that t picall hinders breakthrough during normal programming. The T> launch was followed b an eight&page manifesto in The ,all !treet -ournal which was used to set the premise of TThe 3ther (B$U and define it in the conte8t of business consulting services. Additional print e8ecutions were used to elaborate on the 1ing Arthur metaphor as well as to focus on specific areas in the BPTS such as human resources! finance and accounting! suppl chain and procurement! sales and marketing! and strateg and change management. All of the advertising directed prospects to a micro web site where users could e8plore content in areas such as leadership and innovation! learn more about (B$Ss specific capabilities in functional areas! read case studies and locate additional contact information. (n addition to advertising promoting TThe 3ther (B$U! another integrated campaign called T+elp ,eskU was run concurrentl to show how (B$Ss on demand computing solves real problems and touches real people. The first phase of the integrated campaign focused on how (B$ helps the world at large! while the second phase focused on more industr and customer&specific solutions. To underscore (B$Ss abilit to deliver value&added services to a customer! the advertising used the @uick&problem solution metaphor of a Thelp deskU across television! print and online e8ecutions. 5or e8ample! in the T> spots! the Thelp deskU appears in improbable places such as a golf course where a group of scientists needs help after its solar&powered golf cart runs amok or in the middle of a bus freewa where a motorc cle policeman stops to learn how (B$ can assist with traffic control. The print ads featured beautiful photographs of landscapes with st li=ed help desk stickers attached to show a problem&solution scenario. The online e8ecution used an interactive component featuring a large white room with classical columns where visitors would encounter a number of industr &specific scenarios for which the (B$ help desk representative devised a solution. The T+elp ,eskU campaign received a TBtoB Best AwardU from BtoB maga=ine! a leading trade publication! as the outstanding integrated business&to&business campaign of .//<. The HInno2ation That MattersI !am:aign (B$ was pleased with the results from TThe 3ther (B$U and T+elp ,eskU campaigns as the demonstrated the compan Ss e8pertise in the area of Business "onsulting Services and gained credibilit for (B$ among business e8ecutives without negativel impacting its strong technolog heritage. +owever! in $arch .//- the advertising moved in a new direction with the launch of the T(nnovation That $attersU campaign that is designed to position (B$ as a means for companies to significantl change how the do business when seeking wa s to grow. The campaign was developed in response to a ma?or research stud (B$ had conducted which showed that after ears of retrenchment! corporations were embracing change and planned to radicall transform themselves over the ne8t several ears. The new campaign uses the tagline T4hat makes ou specialQU and its ob?ective is to start a business conversation and to open the door to e8ploring how (B$ can help individual companies innovate! capitali=e on their inherent strengths and redefine their business processes to differentiate themselves versus their competitors. The value proposition is that (B$ can help companies innovate b changing their processes and technolog . The advertising features companies that have developed new wa s of doing business with (B$Ss help and how this has given them a competitive advantage. The T4hat makes ou specialQU message also communicates customi=ation and that there is no one si=e fits all prescription! as solutions are based on each firmSs uni@ue capabilities and possibilities. The creative used for the campaign is ver different from previous (B$ ads and from other high tech! business&to&business advertising. (t uses bold! saturated colors and simple images from

ever da life Aa radish! a pill! a car! a houseB in a two&page print spread. The la out shows an item b itself on the left page of the spread and a TspecialU item on the right so that readers are drawn in to find out whatSs special about it. %ather than using Thigh&techU language! the cop describes business applications in terms that are relativel eas to understand. The choice of lower case letters in the headlines and tagline conve s a lack of pretension and shows that (B$ wants to communicate that discussions with clients will be Tdown&to&earthU and not intimidating. Above all! the campaign speaks to customi=ing business solutions and improving processes based on the uni@ueness of each individual firm. The message is that with the combination of (B$Ss unparalleled consulting and technolog e8pertise! customers can leverage their capabilities and strengths to gain a competitive advantage in their industries. (B$ launched the new campaign! as the did with others b running a multi&page manifesto in The ,all !treet -ournal! the print media vehicle with the highest reach among "&level e8ecutives. The newspaper advertising broke a few da s before the T> ads! which began airing the following weekend! and maga=ine ads appeared two to three weeks later. Additional eight page manifestos were run to allow (B$ to e8plain the new campaign more completel and also provide e8amples of how their products and services appl to a range of different si=e companies and different industries. The television commercials for the new campaign include a spot called TAnthemU in which flower petals seem to inspire groups of men and women to sing along with an obscure song b the 1inks! T(Sm not like ever bod else!U that speaks to the new positioning. The spot ends with a series of @uestions that appear on the screen in white t pe such as T4hat makes ou differentQ 4hat makes ou uni@ueQ 4hat makes ou specialQU Another spot takes a fair tale approach b showing a stream of office plants fleeing commoditi=ed companies after reali=ing that the will onl be watered at companies that are growing. (n addition to television and print advertising! the global campaign includes '< out&of&home e8ecutions! a dedicated web site Awww.ibm.comEinnovationB! (nternet banner ads and huge decals placed on the tarmacs of two $anhattan helipads which "hris 4all describes as Tmetaphorical illustrationsU designed to target corporate decision makers. The goal for the integrated campaign is to conve a sense of imagination and possibilit as well as to communicate (B$Ss abilit to help companies do special things. Internet Marketing As with most high tech marketers of business&to&business products and services! the (nternet is an ideal! cost&effective! targeted marketing tool used b (B$ to help identif prospects and provide information about its products and services. (B$Ss website is designed to move prospects through the bu ing c cle from generating awareness and initial interest! to providing information such as case studies and testimonials! to converting interest into a purchase decision. Some of the online tools (B$ uses include webcasts! podcasts! virtual meetings! and sending customi=ed e&mails! as well as e&catalogs! and e&newsletters. (nterested customers opt&in to receive relevant information. (B$Ss website includes in&depth articles! reports written b technolog e8perts! blogs from people inside and outside the compan and press releases. Topics covered include the range of (B$ products! services and business processes that can be improved or transformed! such as innovation! growth! operations! customer lo alt ! team performance! and corporate governance. The products and services (B$ provides that relate to each topic are elaborated on in the site. )reat care has gone into developing a site that is eas to navigate so customers can focus on areas of interest or where the are most likel to be seeking help. Prospects answer @uestions online to provide (B$Ss salespeople with data and information that can be used to address each customerSs specific needs. (B$Ss internet marketing also includes paid search for ke words that relate to specific topics and issues of relevance to their customers on search engines such as )oogle! Jahoo\ and $SN. (B$ also has developed web sites to support its integrated marketing communications campaigns which have included making commercials available for viewing b visitors to the site as well as relevant case studies and testimonials. 5or e8ample the web site created to support the T(nnovation That

$attersU campaign included a section where visitors could view commercials! a )lobal "#3 Stud that could be downloaded! and a report on (B$Ss )lobal (nnovation 3utlook. Mo2ing For8ar( The transformation of (B$ from a computer hardware compan to a services and business solutions provider is one of the great comeback stories in the histor of corporate America. (n .//< (B$ had more than R0' billion in sales and a profit of nearl RH billion. (n the .//- (nterbrand Stud ! (B$ ranked was ranked as the third most valuable brand in the world with an estimated brand value of over R<- billion. "#3 Palmisano notes that (B$ is not defending the past an more as the compan is off and running into a new world of business! be ond computers. (n 7anuar .//< (B$ announced that was selling its personal computer business! best known for its ThinkPad lap tops! to ;enovo which is the leading computer compan in "hina. The sale of its personal computer business was part of (B$Ss strateg to move awa from the confines of the slow&growing and highl competitive computer industr and to continue to transform itself into a compan that helps other firms run their business in areas such as accounting! human resources! procurement and customer service. (n the process of doing so! however! (B$ and 3gilv * $ather have successfull balanced the compan Ss brand heritage as it has undergone changes in its business strateg . (B$ is not sa ing good b e to its image as TBig Blue.U +owever the image of (B$ has evolved and the brand clearl stands for much more than mainframe computers. Aiscussion Muestions '. 4hat is the primar ob?ective of (B$Ss advertisingQ +ow have the ob?ectives of its advertising changed over the earsQ .. #valuate each of the campaigns described in the case and the accompan ing ads shown in the Power Point file. Are the intended branding messages being communicated clearl and do the ads speak e@uall well to users! as well as non&users! of (B$ products and servicesQ 6. 4hat is the primar ob?ective of (B$Ss advertisingQ +ow have the ob?ectives of its advertising changed over the earsQ :. #valuate each of the campaigns described in the case and the accompan ing ads shown in the Power Point file. Are the intended branding messages being communicated clearl and do the ads speak e@uall well to users! as well as non&users! of (B$ products and servicesQ <. 4hat were the pros and cons of sta ing with the Te&businessU campaignQ "ould it have been updated and retained or did it lose it relevanceQ -. +ow was the T3N ,emandU campaign adapted to keep the umbrella tagline while providing the specifics needed to communicate the Tsub&businessU component detailsQ 2. ,o ou think (B$Ss advertising campaigns changed too often over the past '' earsQ 4ere the changes made because the campaigns were not working well or was it an intentional evolution in the advertising and branding message (B$ wanted to communicateQ H. (s there value to business&to&business marketers such as (B$ in advertising through mass media that also reach the general consumer marketQ #valuate the media choices used b (B$ such as advertising on golf tournaments! on Sunda morning news shows! in airports! and even on the Super Bowl. Since (B$ divested its personnel computer business! should the continue to advertise in mass media! such as on the Super BowlQ 0. +ow has the target audience for (B$Ss products and services evolved over timeQ +ow have the t pe of business problems that (B$ addresses in their advertising changedQ '/. 4hat were the advantages and disadvantages of using a creative tactic such as the metaphorical 1ing ArthurSs %ound Table commercial and print ads that were part of TThe 3ther (B$U campaignQ ''. 4hat is the value of using testimonials or mini&case studies across a variet of business and industries in (B$Ss integrated marketing communications campaignsQ '.. ,oes (B$Ss advertising provide enough information to decision makers and does it matter that no reference to the prices of its products andEor services are made in the adsQ

To:ic 5 )rticle: B.B Bu er Personas * Bu er Behavior: Behavior&Based $essages +ow to conduct marketing outreach using a Tbroadcast to behaviorU continuum: $ass mailing: a mailing targeted toward ever one in the database. Targeted mailing: a mailing targeted based on segmentation of some t pe! such as geograph ! title! etc. Time&based messages: making a mailing more automated! such as designing different mailings to go out at different times. Behavior&based messages: designing multi&track messages targeted to people based on their behavior Ai.e.! sending one individual who has downloaded a white paper a different message than another individual who has not et downloaded the white paper.B B watching the behavior of our target audience! and developing behavior&based messages! ou can send them more relevant content P and better understand who the are P b knowing which tools the Sre using and which the arenSt. (t must also be noted that Silverpop concluded behavioral&triggered campaigns in B.B :er.orme( 32+N 0etter than simple blast campaigns\

3sychogra:hic aria0les The webinar also discussed ps chographic variables! which are an attributes related to our target audienceSs personalities! values! interests! etc. (f ou can include @uestions related to these in our forms! ou can find out little tidbits ou can use in the future. The webinar used a great e8ample of asking the audience their favorite baseball team! then sending out an email Aperhaps even a personal emailB that corresponds with how their team is doing. 4uyer 3ersonas B including both what the audience is doing Ab monitoring their behaviorB! and who the are Ab finding out their ps chographic variablesB! ou are creating a more accurate bu er persona of our target audience and ma better motivate their bu ing behavior.

To:ic = %election o. an a(2ertising )gency An advertising agenc ma be a full&service agenc or part&service agenc . #ach has a different outlook and advertising activities. The selection of advertising agencies depends on whether one wants a full&service agenc or a part&time agenc . The selection is also made on the basis of compatibilit of the agenc team! agenc stabilit ! services! credibilit and the agenc Ss problem solving approach. Full ser2ice agency or :art< time agency: The full&service agenc is involved completel in the advertising functions. (t has a large number of e8pert emplo ees. The organi=ation is t picall useful for performing advertising agencies. (t looks upon customers as ke clients. (t communicates with the prospective purchasers. The distinguishing characteristics of the various agencies lie in the creative skills of the personnel of each organi=ation and in the philosoph of advertising. ;arger agencies offer better services. The part&time agenc offers service on free of cost or pro?ect basis. These agencies perform various outside activities and co&ordinate the activities of the advertiser and media men. "lients have greater control over advertising campaigns. AdvertiserSs research agencies generall perform ?ob of part&agencies. The selection of a particular agenc depends on its si=e! its services! knowledge and growth "ompatibilit : the selection of an advertising agenc depends on the compatibilit of the agenc . The needs of the compan determine the fitness of the agenc . The advertiser visits several agencies and chooses the best agenc on the basis of its merits! demerits! accreditation! its methods of handling the accounts and using the available opportunities. Agenc Team: This includes management specialists! market researchers! cop writers! media e8perts! production managers and art directors. The attitude! thinking! e8perience and personalities of the team members have positive effects on the selection process. Agenc Stabilit : An agenc ! which has been long in e8istence generall ! performs efficientl and effectivel . The greater the investment in the agenc ! the more vital the contribution of the agenc to the advertising activities. The personnel! finance! management and credit are e8amined before selecting a suitable advertising agenc . Services: The services rendered b the agenc are evaluated with a view to choosing the best advertising agenc . "ost accounting! general agreements! pro?ect estimates! selling attitudes and other services performed b the advertising agencies are considered to evaluate their efficienc and credibilit in performing advertising ?obs. The greater the range of an agenc Ss services! the more full it can serve the clientsS needs. The agenc can serve the clients b its potential capacit for advertising! sales promotion! media placement! public relations! market research! sales training and distribution channels. "reativit : "reativit is the main element in advertising. (f the advertising agenc is capable of great creative efforts! it is selected for the purpose. St le! clarit ! impact! memorabilit and action& these are taken into account while evaluating creativit . Problem&solving approach: The agenc which has a problem solving approach is considered to be superior and useful. The importance of choosing the right agenc cannot be ignored. "aliber! compatibilit ! balanced services! responsiveness! talent an e@uitable compensation& these are important factors in selecting an advertising agenc .

To:ic ; Means &n( Theory: 3eo:le AonBt 4uy Features "r 4ene.its "reate relevant messages! know what customers value in our product or serviceW ever marketer should embrace means&end anal sis.

A Means End Theory Anecdote

At the ski shop we sell these uber cool bluetooth helmets from 1.. Jou can s nch the earpieces to a device like an iPhone! and listen to music or pause the melodies to answer an incoming phone call. ( wouldnSt bu one because ( consider the sport m refuge from the onslaught of technological& interconnectedness. +owever! personal preference aside! these helmets fl off the shelves each season like fudgicles in a sweltering summer afternoon. Jet one particular sale stands out from the rest. A mother and son Aprobabl '/&'. rs oldB walk into the shop. The Sre going to )ore! and Bill needs a helmet. Bill tr s on a few brands finall arriving at the 1.. +e is tickled pink b the thought of listening to tunes! and chatting on the phone while skiing. (f Bill Ss going to be the env of all his friends heSs got to have it. $om rolls her e es at the price but consents. Then Bill ! god bless him! does some selling for me! T$om! if (Sm wearing a helmet shouldnSt ou tooQU SheSs holding his helmet! and puts it on for kicks! but being too small it cocks backwards funn like. At which point ( mention we might have a larger si=e! not to mention )ore is a huge mountain! if the two should get separated it would be easier to get a hold of each other with bluetooth enabled helmets. Although she tries on a few more helmets! $om also settles on bu ing herself a proper si=ed 1. helmet. (f ouSve been reading carefull ouSll notice that features and benefits are onl part of the stor as to wh Bill and his $om bought the bluetooth helmets. 5or Bill the benefit of listening to music or making phone calls translated into Tenv from his friends!U otherwise known as enhanced self& esteem. 4hereas the benefit of a @uick phone call for $om meant she can check in on Bill to know he is safe.

What Is Means-End Theory?

Bill and his $om demonstrated what is known in consumer behavior as $eans #nd Theor : People bu features that bring them benefits that get them closer to valued end states. These are the possible $eans&#nd "hains for Bill and his $om:

9nderl ing values are the motivating factor in a consumer purchase. Therefore effective marketing messages that sell will connect a benefit to values like securit ! achievement! belonging! fun! en?o ment! etc.

Means-End Theory In B2B

Speaking in terms of onl features and benefits tends to remove emotions from the purchase e@uation. (n B.B advertising! overemphasis is placed on benefits with valued end states being downpla ed. 4h does this occurQ Because man B.B marketers operate under the assumption that B.B purchases are rational. (n realit ! decision makers are influenced b emotive propositions ! in some cases more than the would be as individual consumers.

Means-End Marketing Applications

$ean #nd Theor is important to marketing on two fronts.( touched on the first alread ! $#" provides a wa to structure messaging. (dentif a feature! linking it to a benefit that fulfills a personal valued&end state. 5or e8ample! (B$ has transitioned itself from a hardware maker to an integrated s stems provider. This Applications 3n ,emand video reflects that approach. (B$ provides a number of features: server! database administration! etc. These benefit +,%! whose emplo ees have time more time to focus on the compan Ss core tasks Afunctional benefitB. The message could have stopped there! but (B$ clearl distinguishes itself in this ad as a compan that is eas to do business with Aan intangible! fundamental need of +,%B. That valued&end state likel has the most and strongest connections to the multitude of features and benefits provided b (B$. Second! ou ma be able reverse engineer the productEservice. 1nowing the valued&end state allows ou work backward to build new features! or creates new products and services of value. 9sing the means&end approach to gain customer insights is an important wa to mitigate the risks of marketing failures in the product design and positioning phases.

To:ic 7 3 &..ecti2e )(2ertising Message %trategies $#SSA)# ST%AT#)J $essage strateg has to do with the choice of the benefit to be conve ed! as well as the positioning and segmentation choices. (t is often easiest! in developing a global brand! to standardi=e on the core positioning platform for the brand! while allowing for local e8ecutional variations in other brand elements. (f the basic need being met is common the world over! the same message strateg can likel be emplo ed. Thus! 3il of 3la uses the same positioning&a moisturi=ing cream for mature women&even though the name! formulation! and packaging can var slight across markets. Procter * )amble sells its Pert Plus Shampoo&and&"onditioner product with the same MB"&'HM formula under different names in different countries! but in all markets still uses the basic message of time&saving AMwash&and&goMB convenience. "hanel and other fragrances can appeal worldwide to the same human need Ato look beautifulB! and Swatch watches to the same universal need to have fun. 3n the other hand! the same product or service ma sometimes need to be positioned ver differentl in different markets! if the market is at different levels of economic development or product life c cle! or if the habits and attitudes toward that product categor are culturall influenced! or if the competitive position of the brand is ver different. &conomic Ai..erences "itibank positions its automated! twent &four&hour! globall networked consumer banking facilities using a MconvenienceM positioning in +ong 1ong and )erman ! but as a high&status! lifest le aspirational s mbol in )reece and certain economicall less developed countries. Similarl ! the +onda Accord car is a mid&market sedan in the affluent 9nited States market but occupies a more upscale! premium position in the car markets of various less economicall developed Asian and eastern #uropean countries. !onsumer 4eha2ior Ai..erences )eneral 5oods found that its orange drink Tang had to be sold in 5rance as an Man timeM cold refreshing beverage! rather than as a breakfast drink! because orange ?uice is not a breakfast tradition in 5rance. 3ther research has shown that! in the '02/s! while car advertisers in the 9.S. found it best to emphasi=e leisure and getto&the&wilderness benefits of car ownership! consumers in Bra=il were apparentl more responsive to the benefits of being able to use cars to travel to urban culture. !om:etiti2e $esource Ai..erences These areIillustrated b the +eineken beer e8ample cited earlier! which developed historicall a mass&market beer in #urope! but decided it would be more feasible to aim at an upscale target in the 9.S.! with a premium positioning! rather]than fight the likes of Budweiser for the mass&market there. #ven if the sam&e target market and same core positioning proposition are used in man different markets in the world! important variations ma be necessar across these markets. 5or instance! 7ohnn 4alker Black ;abel! the worldIs largest scotch whisk brand! has a ver strong and premium brand image across the world. %esearch showed that its e@uities ever where included its s@uare&sided bottle! the black and gold coloring on the diagonall &centered label! and so on. +owever! this research also showed that while the brand was perceived ever where as being a premium! lu8ur brand! it varied across countries in the e8tent to which it was seen as old&fashioned and traditional! versus modern and elegantand consumers in different countries varied in which of

those two kinds of lu8ur scotch whiskies the preferred. The advertising brief for the different countries thus varied in whether it emphasi=ed the Mold&fashioned! genuine! traditionalM angie or the Mmore modern! sophisticated! elegantM angle! while keeping to the common core positioning of Mlu8ur ! premiumM positioning.