Site menu:

Categories

prakashkumar

Recent Posts

Advertising, promotions and TRP – In the new world.

Marketing management has grown from its traditional theories. Kotler, still rules and has accomodated all business transformations with regards growth in e-marketplace and online shopping. Products ranging from safety pins to a luxury car and host of service is available for online shopping and all the retailers like walmart, kohls. Macys,. JCPenny, kmart, target etc have a 100% capable retail store and a 100% capable online store.

 

Advertising has changed – from billboards to television and print media, the message by promters has reached to laptops and palmtops and the ipads of the gen-next. Not that the ancient versions have gone into oblivion but they have been supplemented. Companies have realized that it is not a huge return for their $ spent if they keep carpeting the television between popular soap operas in prime time. We live an era of remote control and channel surf where no one actually is looking in between the program intervals.

 

The best method retailers have adopted is to bring the customer to store is by shooting retail coupons into the mail box of their customers and offering promotions which are wrapped in such a way that it is very difficult to refuse. Customers are getting enrolled in these promotions by virtue of a free purchase as well in the first instant. $10 gift card for every $50 purchase by Kohls is very popular in America. Everyone wants to buy clothes for family ad $50 is kind of base expenditure if one is looking for a one purchase for a 3 member family. Now because of the $10 tag – people go to Kohls and not anywhere else and then in-order to redeem the $10 they visit again and they end up buying some more – it is a recurring compulsion which makes you buy things which you can ideally live without.

 

Demand v/s Supply – is a model of economics which everyone knows – but what to do in absence of demand. Retailers are wise – they generate demand by bringing you to the store first – they then play with your resilience to refuse a great purchase at the store – same is valid for retail sites. If people come – he/she is more likely to buy one. Airline industry offers a 25% base price off scheme. There is a buy 1- get 1 free offer. By this virtue airline wants you to travel again. They might end up making some money in the extra luggage or otherwise next time and do not forget – airlines do run empty seats at times. Whats harm in patronising a frequent flyer to your airline by giving him such freebies – he will actually be sitting on one of the seats which otherwise would have gone empty. Customer loyalty and retention is key – as the age old mantra say, it is 10 times more difficult to get a new customer then retain an existing –why not? Do the later. Invest less in first.

 

Fan following is a big thing. Some celebrity can take a fortune to do an advertisement which lead to a mark up in the product price – making it niche. People today wants niche but at a lesser cost. If you wont give it – your competitor will give it. Under this Climate, recent statistics have revealed that chase for celebrity has receded and the quantun of their check is also cut down. There are a few exceptions – but then they are for positioning vis-à-vis the competitor rather than for want of sale opportunities. Eg,.Coke and Pepsi will both sell at similar volume but if Coke has hired a celebrity for an ad campaign the other is constraint to accommodate the bitter rival of the hired ceberity as their mascot – this is the strategy to keep it on same level playing ground. The goodwill part of it – not just for the sales.

 

Service marketing now has finally evolved. Yes – it has. Lawyers, Doctors, Consultants, architecture, designers, programmer everyone is availble online competiting for space. Even organized sector in form of real estate agents, passport/visa consultants, tax consultants can be googed and dialed in matter of seconds. Marketing and advertising cannot be done for these services based on Keynesian model. It is beyond – STP (segmentation, target and positoning). STP has expanded – it has accomodated customizing. Today service providers are willing to customize an engineer to order based on customer preferences. A customer job is to just give specifications – service will be done just like that. Service, marketing also has a distict factor – it has the best quality of retention. A person who hired a tax consultant to do his gigantum tax calculation in US, if 90%+ probably to go again to the same consultant next year and along with him, bring few more through VOC (voice of customer). A word of advise is given to all those in service marketing – “Do whatever you can – to get your first customer – it will be a “self sustained” robot henceforth. Take it or leave this suggestion – but the caveat is “leave at your own peril”.

 

Advsertising is prevalent – no one today is untouched. A person who speaks highly about a service he took or a product he bought is as good as an advertiser as a IIM grad with advertising major. Television channels have no way out but chase TRP’s. No TRP’s – no gain. What is the use of broadcasting a program if no one watches it. TV channels are cutting ends on cost of production by preparing programs and operas with lesser known faces and are spending less on news researc. However, they are spending on methods to gain TRPs. In India for instance a launch of a soap opera or a realty program is invariable preceded by a controvery created around the cast or crew or the contents of program itself. This brings audience to the channel. There are 1000 of channels these days and don’t tell me that mediastar do not have to resort to all these to bring viewers in front of their channels. It’s the same “airline” concept “What is the use of flying an empty seat – let it be given free to a loyal customer. He is sitting free but through VOC he has already brough few who are occupying free seats – and not to forget, next time he will also pay – so’ its actually buy-1 get 1 free – thereby increasing the chain.

 

You have a buck in your hand – hold it tight. There are host of ways, it is being chased upon. Your gradfather will call it stealing – We call it “Advertising”.

Write a comment