Economic objections against Advertising The criticisms leveled against modern advertising on economic grounds can be summarized as follows: Advertising creates monopolistic tendencies: It is argued that skillful and forceful advertising tends to create semi-monopolies particularly for branded goods. Their plea is that the advertisements create new demands so that one product is preferred to the exclusion of others. But this allegation is baseless. Monopoly is not possible in a competitive market. Advertising stimulates competition. Very often many small advertisers complete successfully against the bigger traders. Advertising is unproductive: It is often argued that advertising is unproductive since it does not produce any tangible products. This argument is also worthless. All productive work need not result in tangible goods. Effective advertisement creates demand for the product and thereby stimulates production. It is indeed a valuable service to the producer. Thus, advertising is an economic necessity. Advertising compels the consumers to buy: Continue reading
Marketing Concepts
Case Study on Ad Campaign for Bharti AirTel: “Express Yourself”
Bharti-Airtel Groups, with a customer base of more than 121million subscriber, form the largest cellular service provider of India. The Bharti group is now the world’s third-largest, single-country mobile operator and sixth-largest integrated telecom operator. The groups cater the mobile service in India under the brand name of Airtel and are headed by Sunil Bharti Mittal, He is termed as the Indian Telecom Mogul because of his largest telecom service provider in India. He is the chairman and the managing director of the Bharti Groups. The company has a turnover of US$ 12 billion. The businesses at Bharti Airtel have always been structured into three individual strategic business units (SBU’s) – Mobile Services, Airtel Telemedia Services & Enterprise Services. The Company has a market share of around 24.6% of the whole chunk of the mobile subscriber in India followed by Reliance Communication with 17.7% and Vodafone by 17.4%. Airtel has Continue reading
Brand Case Study: De Beers,Volkswagen and Nokia
DEBEERS The market for diamonds has never been characterized by free, dynamic and open competition. Everything about diamond industry is manipulated: supply, pricing, processing and retailing. The leader of the diamond industry is De Beers, a company that produces half of the world’s high-quality diamonds. This case explores the impact of marketing on the diamond market and how it helped to shape the public perception of diamonds as a desirable gift over the course of the 20th century. De Beers ‘Diamonds are Forever’ advertising campaign, which started in the 1940s, was to become one of the most effective of the 20th century. It enabled De Beers to manipulate demand as well as supply. With the help of their agency, they created a mindset, which later swept the world, in which diamonds came to be perceived, not simply as precious gems (of which there are many) that could be traded according Continue reading
Monitoring Marketing Environment
The marketing environment is dynamic it is always changing. Whether the forces of the marketing environment fluctuate slowly or rapidly, they create uncertainty, obstacles, and opportunities. Marketers must constantly monitor the marketing environment to be prepared to capitalize on opportunities and minimize adverse conditions. To monitor changes in the marketing environment effectively, marketing managers must engage in environmental scanning and analysis. Environmental Analysis Environmental analysis is the process of assessing and interpreting the information gathered through environmental scanning. A manager reviews the information for accuracy, ties to reconcile inconsistencies in the data, and interprets the findings. Analysis allows a marketing manager to discern changes in the environment and, if possible, or predict future changes. By evaluating these changes, a marketing manager should be able to determine possible threats and opportunities associated with environmental fluctuations. Knowledge of current and predicted environmental changes aids a marketing manager in assessing the performance of Continue reading
Barriers to integrated Marketing Communications
1. Functional Silos Resources, support and guidance of upper management are needed to build a successful integrated marketing communications campaign. The job of upper management is to make sure that all the resources are thoroughly no matter is for budgets, sharing data or people across teams. However, the problem now is integrated marketing communication don’t control by one manager only. All the managers involve in the information transmitting process have to work together in controlling the process. It mean that all the manager of advertising team, public relation team and also the marketing team have to coordinate in the process of delivering information about the product and service of the company to the target customer. When the control is shared among all the team manager, which can prove to be a difficult concept for some member of upper management, creating a barrier to integrated marketing communication. 2. Restricts Creativity Integrated Continue reading
Marketing Channel Conflicts Management
On the basis of the discussion in the previous article Marketing Channel Conflicts, it can be easily understood that conflict is an inherent behavioral dimension in the marketing channel and various levels of conflicts may have both negative and positive effect on channel efficiency or possible no effect. A marketing channel conflict could affect the channel efficiency positively in the sense that when the members involved in the conflicts realize and identify the possible reasons for conflict and work towards removing these areas of disagreement. The conflicts might actually become functional. The need is therefore to sit back and understand the cause of conflict and to devise ways to overcome by working out a better solution. A central task in channel management is to seek ways to manage conflicts. In other words ways must be found to keep conflict from becoming dysfunctional and to harness the energy in conflict situation Continue reading