Ltd
Noida
Certificate of Participation
ACKNOWLEDGEMENT
First of all I would like to thank the Management of ICICI Prudential Life Insurance Co. Ltd.
for giving me the opportunity to do SURVEY PROJECT under IGNITE SERIES.
I express my sincere thanks to all the Faculty Members of ISB&M Noida for there valuable
cooperation and giving me valuable information in preparing the project.
I am highly indebted to Prof. Hari Shrivastava for his continuous support and
encouragement.
I would also like to thank Prof. Vikas Sharma for extending his guidance and support
though this project.
Last but not least, I express my sincere gratitude to all the respondents who helped me in
the project.
DECLARATION
The information provided in this report is accurate and true as per my knowledge &
understanding.
Prof. Gaurav Ashesh, Faculty, ISB&M Noida, was my Project Guide during ONLINE
PROJECT COMPETITION conducted by PGPMI TEAM of ICICI Prudential Life Insurance Co.
Pvt. Ltd. under the title head of IGNITE SERIES.
This IGNITE-V Online Project report represents “Study of Promotional Strategy of ICICI
Prudential Life Insurance Co. Ltd.” Under the title head of “Advertisement Effectiveness
with reference to Life Insurance”
The pages count in this project does not include Front Page, Table of content, and
Annexure, The Preface, Declaration, Executive Summary, and References, do not
constitute part of the page limit.
The page count in the main text excluding the aforementioned points is 46 pages. Report
style has been adopted for presentation as per guideline and attempt has been made to
maintain the different parts and tasks as distinctive as possible but yet linking key elements
together to avoid repetition and to communicate the significance.
PREFACE
In this project we review the tools and techniques used to measure Advertising
Effectiveness. Effectiveness is the measure of the gap between results and objectives.
Lower the gap, higher the effectiveness. Thus it is an evaluation of the advertising
process. The advertising evaluation process is frequently called accountability.
Management wants the advertising managers to identify exactly what results were
obtained for the advertising investment and to provide evidence of the return on
investment. After all, advertising uses the scarce resources that could be invested in a
number of ways. Therefore, the question that management poses is, “Is advertising the
best way to use those funds?" And it is the job of the advertising campaign planner to be
able to answer that question. To do so usually requires some form of advertising
evaluation.
1. To determine if the objectives set for the advertising campaign were met. This off
course presupposes that measurable objectives were set in the first place. And that
these objectives are in line with the overall marketing objectives and strategies.
The first success of any effectiveness research would be that it forces managers to
think clearly and put down on paper, for themselves and others, what they expect
the advertising to do.
2. To quantify the return on the campaign investment. By knowing what was achieved,
management can relate that information to opportunity cost of money and
determine cost effectiveness of the advertising campaign. Off course this is an ideal
situation. Measurements of advertising results are seldom precise enough to make
this quantification possible.
A. EXECUTIVE SUMMERY
A successful product or service means nothing unless the benefit of such a service can be
communicated clearly to the target market. An organization promotional strategy can
consist of:
¾ Sales promotion: Commonly used to obtain an increase in sales short term. Could
involve using money off coupons or special offers.
Logos or slogan design? The message should reinforce the benefit of the product and
should also help the company in developing the positioning strategy of the product.
Companies with effective message strategies include:
Media strategy refers to how the organization is going to deliver their message. What
aspects of the promotional mix will the company use to deliver their message strategy?
Where will they promote? Clearly the company must take into account the readership and
general behavior of their target audience before they select their media strategy. What
newspapers does their target market read? What TV programmers do they watch?
Effective targeting of their media campaign could save the company on valuable financial
resources.
B) Secondary objective
¾ To know the promotional strategies of ICICI prudential.
¾ To know how they face their competitor’s strategies.
¾ To know how they survive in the cutthroat competition.
¾ The first part introduces the reader to the report and also outlines the structure and
topics of discussion.
¾ The second part describes in brief that what the concept behind giving
advertisement is., and what is the scope to this project.
¾ The third part identifies in which way we moved. Which methodology we adopt to
conduct this project.
¾ The fourth seeks new scope in untouched market and how advertisement affects in
brand building.
¾ The fifth part deals with facts and findings which give us knowledge about the
current market trend.
¾ The sixth part extends into the generic strategies adopted by ICICI Prudential to
touch not only consumer share of mind but also consumer share of heart.
¾ The fifth part introduces with greater analysis what is happening in current market
scenario and how ICICI Prudential survives in this cutthroat market competition.
¾ The sixth part talks about the Insurance Industry and discuss the growth story of
Leading Private Insurance Company which is ICICI Prudential Life Insurance
Company Limited.
¾ The final part sets the final context linking all the key frameworks and analysis with
the author’s own conclusions and future directions and expresses the author’s
limitation to this report.
1. Table of Contents
Particulars Pages
Acknowledgement ii
Declaration iii
Preface iv-v
1 Introduction 1-3
1.1 Problem Area 2
1.2 Scope 3
2 Background 4-5
5 Analysis 13-28
Data and Interpretation 13-15
FACTS AND FINDINGS 16-26
Limitation of the Project 27
Conclusion 27-28
6 RECOMMENDATIONS 29-30
7 Media Strategies of the Company 31-34
8 Current Market Scenario 35-39
9 Industry profile 40-43
10 ICICI Prudential Life Insurance Co. Ltd. 44-46
References 47
Bibliography
Annexure
Questionnaire
Respondent Database
Result Analysis Sheet
IMPACT: Marketing on Society Vs Society on Marketing
Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008
RAJNI KANT Page ix
Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd.
1. INTRODUCTION
"Advertisements are sometimes spoken of as the nervous system of the business world ...
As our nervous system is constructed to give us all the possible sensations from objects,
so the advertisement which is comparable to the nervous system must awaken in the
reader as many different kinds of images as the object itself can excite"
“Advertising effectiveness means different things to the groups responsible for its different
effects. To the writer or artist, effective advertising is that which communicates the desired
message. To the media buyer, effective advertising is that which reaches prospective
buyers a sufficient number of times. To the advertising or marketing manager, effective
advertising is that which, together with other marketing forces, sells his brand or product.
To the general manager, effective advertising produces a return on his firm’s expenditure.”
“In fact, effective advertising must achieve all four goals, delivering messages to the right
audience, thereby creating sales at a profit. Most advertisers have begun only recently to
set goals in all four areas and measure progress toward them. Some advertisers have set
communications and audience goals, and measured copy and media effects, but few
advertisers have set dollar goals and measured sales and profit effects.
The result is that advertising has rarely been a part of corporate planning. Thirty years ago,
management was asking the same questions they ask today: Is my advertising working
and what impact does it have on my sales? Can it be measured? Can our advertising and
promotion be made accountable in the same manner as which one evaluates all of the
other investments by our company?
The answer to all three questions is yes. In fact, the techniques to deliver this degree of
accountability and control have been around for more than 50 years and are industry
standards.
There are methods to test every aspect of marketing promotion, sales support and media
mix, and analytical tools to establish a direct relationship to sales for complete
accountability. The key to this is applying a full advertising research curriculum. This
requires involvement of both sales and marketing management and the
advertising/promotions supplier coordinating their efforts with the researcher. It is a
partnership. This may explain why so many from both the client and agency sides remain
of the opinion that it can’t be done. The fact is that a full curriculum can be implemented, is
already integral to nearly every brand leader, and you can do it as well. It just takes a little
planning and co-operation. Let’s start from where it all began.
1.2. Scope to
The Study
A big boom has been witnessed in Insurance Industry in recent times. A large number of
new players have entered the market and are vying to gain market share in this rapidly
improving market. The study deals advertisement given by Insurance Companies. The
study then goes on to evaluate and analyze the findings of these advertisements so as to
present a clear picture of media strategy the Insurance players.
The Company
The result of the survey will help the company to know about the effectiveness of various
life insurance advertisements and how much advertisement is helpful in buying decision.
The results will also help the company to trace the loop holes and then take the corrective
measures to rectify them.
The Industry
This is a limited study which takes into consideration the responses of 50 people. This data
can be exported to take decision for promotional strategy across the industry. The
significance for the industry lies in studying these trends that emerge from the study. It is a
rapidly changing and evolving sector. People are only beginning to wake up to its vast
possibilities. A study like this can attempt to guide the future of the industry based on
current trends.
The Researcher
To facilitate and provide all the useful information of the study, the company, the insurance
industry and also provide marketing ways, methods of ICICI Prudential Life Insurance Co.
2. BACKGROUND
According to industry observers, one of the main reasons for the low insurance
penetration in India was the ineffective distribution and marketing strategies adopted by
LIC. The company reportedly never had any strategic marketing game plan, and due to its
monopolistic nature the need for serious marketing efforts was never felt. The advertising
initiatives were limited to some print and electronic media advertisements that typically
talked about LIC’s products being great tax saving tool for salaried individuals who came
under the income-tax bracket. Despite all this, LIC was synonymous with insurance in India
and it had established an enviable brand image for itself, especially in the rural areas and
small towns. However, with the entry of new players, the insurance market changed almost
overnight. Analysts commented that the private insurers seemed all set to make the
industry marketing-driven, wherein technical and service excellence would be the key
factors of success. The private companies, in a bid to make their presence felt and their
brand noticed, initiated a series of aggressive marketing and promotion initiatives,
something that buyers of insurance were not accustomed to.
In July 2002, India’s state owned insurer, Life Insurance Corporation of India (LIC)
announced aggressive marketing plans with a budget of around Rs 1 billion. The aim of
this unusual decision was to woo customers across the country through a multimedia
campaign including advertisements on the radio and the press media, the outdoor media
and the television. However, this did not come as a major surprise to industry observers
who said that LIC
did not have too many options.
With the insurance bill being passed in 2000, the Indian insurance sector saw a host of
private players enter the market with multinationals as their partners. These new players
resorted to aggressive marketing and advertisement strategies – something the market had
never seen earlier.
This sudden spurt of advertisements and awareness programs was visible on all the media
channels. Print, electronic and outdoor advertisements of the new private insurers flooded
could be seen everywhere. This prompted many comparisons of such behavior of
insurance companies with the advertising frenzy of the dotcoms in India not too long ago –
with similar full-page advertisements, huge hoardings and costly electronic media
advertisements.
According to reports, in the first quarter of the year 2002, insurance companies spent 70%
of what was spent in the whole of 2001, on advertising and publicity. Across the world,
insurance, as a category was one of the largest spenders on advertising. In India too
substantial expenditure was being incurred due to advertising.
COMPANY EXPENDITURE
LIC 1000
Allianz Bajaj 200
Om Kotak Mahindra 150
ICICI Prudential 146
Source: ICMR.
However, during the first year of the entry of new players, while LIC reported a growth of
over 250%, private insurers managed to garner only about 0.5% market share, in spite of
spending hefty amounts on advertising and promotion. According to reports, LIC’s
business increased mainly because of the increased public awareness about insurance,
which was brought about by the heavy advertisement campaigns of private players.
3. RESEARCH METHODOLOGY
Research methodology is a strategy that guides a research in providing answers to
research questions and for this, research survey is being done. “Accuracy of the study
depends on the systematic application of the method”. The researcher has to decide the
method to be used that helps him to get a desired direction in a systematic way. This study
in the following manner.
A) Methodology Adopted
Questionnaire Design
The questions were designed in an easily understandable way with the help of Prof.
Gaurav Ashesh (Faculty Guide) and Prof. Hari Sadhu. That the respondents may not have
any difficulty in answering them. The questionnaire also contained a comments section.
This section was included so as to get opinion of the people regarding the ICICI Prudential
Life Insurance.
Random Sampling
Sampling can be defined as a part of population. Thus random sampling may be defined as
the selection of a portion from the whole population in which each elements of the
population has an equal chance of being selected. A more please definition is that each
element in the population has a non-zero and known probability of selection a randomly
drawn sample is an unbiased sample. In this research survey 50 people were surveyed at
random to get the relevant information.
Sample Size: The sampling techniques used in this project are probability sampling
techniques and the methods used in cluster sampling.
Sampling Unit: The respondents who were asked to fill out questionnaires are the
sampling units. These comprise of employees of MNCs, Govt. Employees, and Self
Employed etc.
Sample size: The sample size was restricted to only 50 between age group of 25-40,
Sampling Area: The area of the research was Delhi Metro Railway Quarters, New Delhi,
India.
B) Data Collection
Structured Questionnaire
In this collection data, structured questionnaire is used as a tool by asking a set of
standardized questions to know the effect of Life Insurance Advertisement and behavior of
the people for the ICICI Prudential Life Insurance.
Interview
The next step involved in collecting information requires discussion with people. Thus
valuable information was gathered informal friendly talks with the people.
Interpretation
Interpretation refers to the task of drawing inference from the colleted facts after an
analytical study, in fact it is a search for broader meaning of research findings it is through
interpretation that the researcher can well understand the abstract principle that
respondents beneath his findings. The simple statistical tools will used to analyze the data
collection, Bar Graphs and pie chart have been used to illustrate the findings
diagrammatically. The scores for advertisement were compiled on spontaneous recall,
aided recall and likeability. The top ads are selected on the basis of their score.
4. Literature Review
4.1Media Exposure in Rural Market
The estimated annual business from rural markets was Rs 1,23,000 crore, comprising Rs
65,000 crore of FMCG, Rs 5,000 crore of durables, Rs 45,000 crore of agricultural inputs
including tractors and Rs 8,000 crore of two-wheelers and four-wheelers. 29% of the rural
people own cars, 27%t own colour televisions, 24% own refrigerators and 10% own
washing machines, which points to the untapped potential in the rural areas.
TV impact: The dressing style of the rural people has also changed due to the impact of the
TV. Studies revealed that TV advertisements are not understood by the rural people who
think "they are for the rich". "Being sensitive and relevant to the requirement of the region
should be of utmost importance in the choice of products, packaging, pricing, promotions,
markets and communication,"
Key Summary
The Indian rural market with its vast size and demand base offers a huge opportunity any
industry cannot afford to ignore. With 128 million households, the rural population is nearly
three times the urban. We therefore have to look at the rural market very seriously for
future expansion.
How a company does announced a name change especially when the old name was well
known? How does the company explain itself to constituents who may have known the
company quite well in an earlier incarnation but may be struggling to figure out what the
new organization stands for? How can the company create a new image while retaining the
strengths of the old one? And what role might corporate advertising play in all this?
Corporate advertising can tell a story about a company as a whole, large organizations may
need to use corporate ads to simplify their image in the minds of key constituents and to
show what unifies the company, despite the geographical spread and variety of its
businesses.
We can very well understand the concept of corporate advertising by taking the example of
ICICI Prudential communication. When Company first began operations, the task was to
present the visiting card of the company to the public at large and build credibility and
stature and to give the consumer the confidence that ''here is a company that can be
trusted to invest funds with.''
This required a corporate campaign - to establish the brand, build awareness and give the
brand a larger-than-life image.
The advertising idea, which was encapsulated in symbols of protection from the initial print
campaign, culminated in the corporate film where sindhoor was used as an endearing and
lasting symbol of protection.
Once the corporate image and brand identity were established, and as the company
expanded and its product range grew, the next phase of communication was to give the
consumer a rational and tangible reason to buy - first of all insurance and secondly from
ICICI Prudential Life. This was tackled through product-specific advertising, such as for
ICICI Pru Smart Kid, retirement solutions or LifeTime.
Key Summery
Brand building advertising is synonymous with product advertising and is commonly seen
in traditional mass media, including TV, radio, magazine, and newspaper. Brand building
advertisements tend to be product/service- (or retailer-) oriented with the purpose to
establish a positive image and creating demand for a product or service that leads to
eventual purchase. The communication route is typically one-to-many and is designed to
reach a mass audience by using a tactic of at capturing the attention of users.
5. Analysis
It includes the summary of advertisement scenario of insurance industry in the soaring
mass market available in India based on the survey conducted.
In the market it can easily be realized that the Television audience had a huge impact of
these ads. Although the most popular medium of entertainment or information gathering
has emerged as the arena of media war. But yes the old players news paper and radio are
still on their high trying to dominate in the market. Internet being in its youth phase is
rapidly reaching in the elite class.
Apart from entertainment channels like Zee T.V , Sony etc where family soaps are having
the highest TRPs contribute mainly for in FMCG sector. Though they show a bit of
Insurance Ads too. In the emerging economy of INDIA News and business channels have
risen serprizingly and contributing in the promotion of insurance sector.
LIC being the gaint of Life Insurance in INDIA has grabed the top slot in terms of
advertisement also. Other private players like ICICI Prudential, HDFC Std. Life, Brila Sun life
and Reliance Life Insurance are trailing behind LIC.
Life Insurance is considered to be sold by push strategy only, and we are witnessing
alternative financial Instruments available in the market giving tough competition. The first
thing before buying an Insurance Product in the competetetive market comes in the mind,
is the BRAND. It really plays a tremendous role for a product to be bought. It seems clearly
in the servey.
The message which is conveyed through these advertisements are however acceptable by
the mass market. People agree that the ads are understandable to them. But the relevance
is still in the black hole as these advertisements are treated as like entertainment clips.
In July 2002, TAM took operational control of ADEX service-the pioneer in Media
monitoring in India. TAM inherited a well-oiled monitoring system with a trend work force.
ADEX India represents a cutting edges strategy tool which helps us to keep an eye on
advertising and media trend.
Facts and figures of advertising trend of year 2007-08 and role of Life Insurance advertising
in advertising business as per the survey conducted by AdEx India (A division of TAM
Media Research) is mentioned below.
TV ad volumes saw a tremendous growth of 126 per cent during 2007 compared to 2004.
General Entertainment Channel led with 1/3rd share, followed by News and Music Channel
with 23 per cent and 15 per cent shares, respectively, during 2007.
Key Findings:
¾ 31 per cent growth in TV ad volumes during 2007 compared to 2006.
¾ Food & Beverages sector leads in TV advertising during 2007.
¾ HUL maintained its first rank in the top 10 advertisers list on TV across both the
years 2006 and 2007.
Advertisement Effectiveness Study (With reference to Life Insurance)-IGNITE-V March-2008
RAJNI KANT Page 17
Study of Promotional Strategy of ICICI Prudential Life Insurance Co. Ltd.
Television advertising of Life Insurance grew by 258 per cent in 2007 as compared to 2004.
Highlights
¾ 'LIC' took the top slot among the players of 'Life Insurance' on TV in 2007.
¾ ‘Birla SunlifeChildrensDream’was the top brand in the new brands list on TV.
Highlights:
Findings
Liking an advertisement
does not mean that public
would like to buy that
product. During survey a
collection of various
insurance companies ad
shown to the respondent.
They liked it very much.
Some of them are get
emotional because it
touches their heart. But when it is asked that how many of them now would like to
purchase insurance policies then instead of raising hands deep salience come as a answer.
It shows that Liking an advertisement does not the guarantee of sell. Only few of them
actually buy after seeing ad especially in case of Insurance.
¾ The research is confined to a certain parts of Delhi due to time constraints and
does not necessarily shows a pattern applicable to all of Country.
¾ Some respondents were reluctant to divulge personal information which can
affect the validity of all responses.
¾ In a rapidly changing industry, analysis on one day or in one segment can
change very quickly. The environmental changes are vital to be considered in
order to assimilate the findings
5.4 CONCULSION
There has been a tectonic shift in advertising the insurance companies. Till 2 or 3 years
back a typical Ad will showcase a small happy family enjoying their life. Then one
unfortunate Day the head of the family dies in an accident and the rest of the family is
drawn to rags. The ad ends up saying Insurance can help them against such calamities.
People bought the idea and started buying insurance. But there was a basic flaw in the ad.
It tells the consumers about the advantages of “having Insurance” but nothing about
“buying insurance from a perticular insurance firm”. So whoever casting such ad was
helping the industry as a whole but not their specific firm.
If we see the recent ads they are talking about how “SBI Life” can help smoothen your old-
age life or how “ICICI Prudential” can help you in receiving pentions etc. This sounds more
logical. Each ad speaks about how their firms offers can help you instead of telling how
insurance as a whole can help you.
At the initial phase of a company it is important that they give emphasis on corporate
advertising because it helps in brand recall. At the later stage company can go for product
class advertisements. Well it is also found that during session that endorsement of
celebrities is helpful in ad recall. But giving advertisement in any type of media is not the
only medium; there are many other ways also like social service, by way of educating
people. Especially for Insurance companies if they want to capture rural market then they
have to approach in different way. In my opinion rural market can only been captured if we
reaches to there heart. And this can be happen only if we solve there basic problem.
ICICI Prudential should come in front for development of rural sector, by way of
establishing a school, by digging a well in villages. May be it seems like a fool’s suggestion
but it is one of the way to gain trust in rural sector. We can also use to advertise us by
using the way of “HALLA BOL”. If we adopt this technique then I am sure that this will be
most creative and cheaper advertisement all over the world. And by this way ICICI
Prudential can again list their name in top advertiser.
Even today after it has rolled out so many campaigns, ICICI remains among the top
advertisers: ad spends, as a percentage of new business premium, range between 0.5 per
cent and 0.75 per cent. Lowe (Lintas) has been the creative advertising agency for ICICI
Prudential Life since the beginning.
The TA:
Representing an ideal mix of medium to high net worth individuals: The consumers most
disposed towards buying life insurance. Middle-aged professionals, primarily male,
salaried and self employed, age group: 28 - 45 years, household income: Rs.20, 000 and
above.
Creative Strategy:
The essence of the creative strategy: To get the consumer to re look at Insurance as a
means to lead a worry free life and not as a necessary evil. When ICICI Prudential Life
Insurance first began operations, the task was to present the visiting card of the company
to the public at large and build credibility and stature and to give the consumer the
confidence that 'here was a company that could be trusted to invest funds with'. This
required a corporate campaign, which started with advertising to establish the brand, build
awareness and give the brand a larger than life image. To this effect the core brand insight
highlighted was "As head of the family it's my responsibility to take care of my loved ones
and protect them from the uncertainties of life", summed up in the advertising idea:
‘We cover you at every step in life (Suraksha… Zindagi ke har kadam par). ICICI Pru was
positioned as an enabler of protection relevant to the needs of the life stage that you are in.
Over the last few months, ICICI Prudential has been advertising in outdoor, TV and press.
The company launched a corporate television campaign – Saat Phere – which took the
emotions and thoughts of initial Sindoor corporate film a few steps further. The film
highlights the strength of promises that a husband makes to his wife, through the depiction
of everyday situations, and then goes on to emphasize that ICICI Prudential will stand by
the husband to help him fulfill all these promises. The TV campaign has also been
extended to outdoor. The company has also undertaken press and internet campaigns to
inform customers about benefits of some of its products, particularly retirement solutions,
through the Chintamani campaign.
Once the corporate image and brand identity were established, and as the company
expanded and its product range grew, the next phase of communication was to give the
consumer a rational and tangible reason to buy - first of all insurance and secondly from
ICICI Prudential Life. This was tackled through product-specific advertising, such as for
ICICI Pru Smart Kid, retirement solutions or Lifetime.
Press: Gave the consumer a rational and tangible reason to buy insurance first and
secondly from ICICI Prudential. The product specific advertising focussed on changing the
prevalent perception about insurance and breaking a few myths: non- affordability,
insurance not being good investment option and the myth that insurance was good only
for tax saving.
After the hugely successful Chintamani (retirement) and Saat Phere (corporate) campaigns,
ICICI Prudential Life Insurance also introduced some innovations in the category, such as:
having a tax planner by the name of Chintamani on radio, who would answer consumer’s
queries about the role of insurance in financial planning.
Other Communications:
Other programs included direct mail, PR of communications campaign in press & TV,
website marketing; and database generation through Bancassurance channels.
Other initiatives included tie-up with the Dabbawalla Organisation in Mumbai for a direct
marketing exercise, to talk to the customer through a non-cluttered route, and thereby
have a higher impact. The direct mailer was about ICICI Prudential’s retirement solutions
and the tax benefits that one can avail of buy investing in any of these. About 100,000
direct mailers were attached to the ‘dabbas’, in areas such as Churchgate, Bandra and
Andheri where there are mostly office-goers. ICICI Prudential Life Insurance has also
announced a strategic distribution tie-up with Hariyali Kisaan Bazaar, the rural business
arm of DCM Shriram Consolidated Ltd (DSCL). As a partner, Hariyali Kisaan Bazaar can
now distribute ICICI Prudential's protection, wealth creation, retirement solutions and
health insurance products to customers across the its growing number of rural business
hubs in the country.
In addition to advertising, the company has also initiated several activities to raise
consumer awareness about life insurance and ICICI Prudential. “It includes seminars - ICICI
Prudential regularly holds consumer awareness meets on ‘the need for retirement
planning’ in different cities such as Pune, Aurangabad, Coimbatore, Nagpur, Bangalore and
Mangalore. These are very well attended and have contributed significantly towards
increasing awareness about the category and the company. Apart from this, company also
entered into alliances with telecom companies, as well as companies like BPCL and
Dominos.
The difference in the level of awareness of these new players as compared to the hitherto
monopoly of LIC was decreasing fast because of the aggressive advertising measures
adopted by private insurers.
Max New York also resorted to depicting positive emotions such as trust and protection in
its print advertisements. The company released two print advertisements.
While one of them carried an image of the revered deity Goddess Durga, the other
projected three teenagers standing together, with their faces painted green, white and
saffron – like the Indian national flag. Reportedly, Max New York wanted to convey the
message that ‘insurance is your partner for your life.’
In addition to such TV commercials, the private insurance companies were trying to make
their presence felt by organizing blood donation camps, contests and sponsoring various
events social events through their agents.
ING Vysya tied up with leading US-based Columbia Picture’s Indian arm to carry out
promotional activities using the blockbuster English movie ‘Spiderman.’ In the metros, ING
Vysya distributed free movie tickets to its customers. The latter also organized the Green
Mumbai Drive and several blood donation camps in association with the Red Cross,
besides sponsoring the action replay of the India-West Indies cricket match series in May
2002 and also in November 2002.
Om Kotak and Birla Sun Life took to sponsoring events in a major way, to attract
prospective customers. Om Kotak initially highlighted in its advertisements the credibility
and trustworthiness of individual partners (Old Mutual & Kotak Mahindra) through its
generic campaigns. The TV commercials featured men and women ‘meeting’ themselves
in the future – happy, healthy and secure, thanks to insurance.
Allianz Bajaj went a step ahead. Apart from bringing out TV commercials and putting up
hoarding and billboards, it entered into a two-month long contract with Shoppers Stop.
According to the contract, every Shoppers Stop outlet had an Allianz Bajaj kiosk that
provided information about policies in order to attract customers. Allianz Bajaj’s entire
communication package included print advertisements, outdoor media campaigns and
direct marketing methods. All its print advertisements carried a visual of human hands,
which symbolized partnership and care to stress on the concept of care.
Similarly, Tata AIG entered into an agreement with Westside to set up information kiosks in
all its outlets in order to attract people’s attention. Also, Tata AIG was one of the first
insurance companies to adopt the celebrity endorsement strategy. Tata AIG chose the
Hindi movie star, Naseeruddin Shah, as its brand ambassador for endorsing its personal
accidental death insurance policy.
In addition to all the above, private players in the insurance sector charted out various
innovative marketing plans to establish their products. For instance, ICICI Prudential
launched the ‘TruLife Club’ for its high-value policyholders as part of its marketing strategy.
Through TruLife Club, the company offered a wide range of health-related products, health
and fitness equipment and membership in gyms, health resorts and clinics in India.
Policyholders with a sum assured of Rs 0.5 million or more were included into this club.
Punch Lines
Another interesting development was regarding the punch lines used by private insurance
players that invariably tried to associate positive emotions with insurance products. While
ING Vysya said ‘Adding life to insurance,’ ICICI Prudential said, ‘We cover you. At every
step in life.’ Similarly, HDFC Standard advertisements projected a happy man asserting;
‘Now I can continue enjoying a comfortable lifestyle even after I retire.’ Om Kotak
highlighted its campaigns with ‘Jeene ki azaadi’ (Freedom to live)’ and Allianz Bajaj stated
‘Allianz Bajaj, Life insured by care.’ LIC came out with a corporate advertisement on TV
with the punch line, ‘Zindagi Tumhari Roshan Rahe’ (May your life be glorious).
LIC upped its ad spend to tackle competition and succeeded in forging way ahead. LIC has
advertised in satellite channels as well as terrestrial channels. LIC has to reach out to non-
resident India policy holders as well as its other corporate customers who are based
abroad.ICICI Prudential has advertised on several channels from the Star TV bouquet, Zee
Network and Sony. The company have spent about Rs 50 million on TV advertising last
year.
With the geographical expansion, TV became a viable medium and the corporate
campaign for ICICI Pru Life was run on TV, because the medium lends itself well to an
emotional type of films that strike a chord with the audience. Product advertising, which
needs to impart information, was largely done through print and outdoor channels, as
these are appropriate for rational type of messages,
ICICI Prudential Life Insurance campaign was short-listed as one of the 12 most effective
campaigns for the year 2001 in the EFFIE awards. According to an ORG MARG study, the
ICICI Prudential brand name and advertising had the highest recall amongst all private
players, and was only marginally behind LIC.
ICICI Prudential Life was awarded the INDY’s Award for Excellence in Mass Communication
in the category of Most Creative Advertisement-Television.
(The scores for advertisement were compiled on spontaneous recall, aided recall and
likeability. The top ads are selected on the basis of their score.)
The insurance industry is estimated to have spent over Rs 900 crore in 2007, up from Rs
200 crore in 2002 on brand building. Of the media investments absorbed in 2007, around
53 per cent went to TV, and the remaining to the print media. Life insurers alone accounted
for over 70 per cent.
9. Industry profile
The business of life insurance in India in its existing from started in India in the year 1818
with the establishment of the Oriental Life Insurance company in Calcutta. Some of the
important milestones in the life insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the
life insurance business.
1912: The Indian Life Assurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance business.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies taken over by the central
government and nationalized. LIC formed by an Act of parliament, viz. LIC Act, 1956,
with a capital contribution of Rs. 5 crore from the Government of India.
The general insurance business in India, on the other hand, can trace its roots to the Triton
Insurance Company Ltd., the first general insurance company established in the year 1850
in Calcutta by the British. Some of the important milestones in the general insurance
business in India are:
1907: The Indian Mercantile Insurance Ltd. Set up, the first company to transact all classes
of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a
code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency
margins and the tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general
insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies viz. the National Insurance
Company Ltd., the New India assurance Company Ltd., the Oriental Insurance Company
Ltd. And the United India Insurance Company Ltd. GIC incorporated as a company.
1. Structure
2. Competition
Private Companies with a minimum paid up capital of Rs. 1bn should be allowed to enter
the industry. No Company should deal in both Life and General Insurance through a single
entity. Foreign companies may be allowed to enter the industry in collaboration with the
domestic companies. Postal Life Insurance should be allowed to operate in the rural
market.
Only one state Level Life Insurance Company should be allowed to operate in each state.
Regulatory Body The Insurance Act should be changed. An Insurance Regulatory body
should be set up. Controller of Insurance (Currently a part from the Finance Ministry)
should be made independent.
3. Investments
Mandatory Investments of LIC Life Fund in government securities to be reduced from 75%
to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (There
current holdings to be brought down to this level over a period of time).
Customer Service LIC should pay interest on delays in payments beyond 30 days.
Insurance companies must be encouraged to set up unit linked pension plans.
Computerized of operations and updating of technology to be carried out in the insurance
industry.
The Insurance Regulatory and Development Authority Reforms in the Insurance sector
were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA
since its incorporation as a statutory body in April 2000 has fastidiously stuck to its
schedule of framing regulations and registering the private sector insurance companies.
Attracted by the huge untapped potential, many private players entered the market after
the Insurance bill was passed in late 2000. A majority of these were collaborations between
an Indian company and a leading MNC insurance/financial services company.
Since then the tribe of life insurers has grown from 12 to 16, but ICICI still leads the private
sector pack. With a portfolio of over 6.5 million policies, India's biggest private sector life
insurer has not merely held on to its share but grown it; at the end of January 2008, the
firm commanded 29 per cent of the share owned by private sector players. Quite some
way below was Bajaj Allianz with 21 per cent, while State Bank of India came in third with
10 per cent.
ICICI Prudential's premium income grew at about 100 per cent between March 2003 and
March 2007. Interestingly enough, the insurer started out with the traditional endowment
products and was not the first to introduce the more popular Unit Linked Insurance Policy
(Ulip): the credit for that goes to Birla Sunlife.
However, in the first full year of operations itself, it started offering Ulip policies and was
selling more policies than anyone else. Today, Birla Sunlife doesn't find a place in the top
five and players such as HDFC Standard Life, which were late to cotton on to Ulips, may be
regretting it.
It wasn't just that ICICI Prudential rolled out Ulips quickly; the company also made sure the
products were priced competitively. Compared with the competition, ICICI's upfront
charges have always been lower.
With charges across the industry now converging at around 20 per cent of first year
premiums, ICICI has come up with a zero-load product. Another scheme that has been
introduced automatically balances the debt and equity components of the portfolio every
quarter. Apart from this, ICICI Prudential has been quick off the block with retirement
solutions and the first to come up with health products.
If ICICI Prudential has managed to sign on 6.5 million policy holders, it is because the
company has built up a strong agent network, which brings in 60 per cent of the total
premium. Today the insurer has nearly 250,000 agents working for it, even though it
doesn't hand out the best commissions in the industry.
Bajaj Allianz's network is about 275,000- strong, while the public sector Life Insurance
Corporation boasts over a million agents. ICICI Prudential does not care about their
commission at the lower end compared with peers they compensate them by ensuring that
customer do better volumes.
The insurer is also rolling out offices at a furious pace; by the end of March 2008, ICICI
Prudential will have around 1,500 offices from around 1,100 currently, of which nearly 900
will have come up in 2007-08. Bajaj Allianz, too, has around 1,000 offices as of now. ICICI
Prudential targeting of 3,500 branches in five years.
The industry believes ICICI Prudential has a big advantage in that it can leverage the
customer base of its parent ICICI Bank. Bajaj Allianz, for instance, didn't have that
advantage. Banc assurance today fetches about 27 per cent of ICICI's premium; apart from
ICICI Bank, the insurer sells through Bank of India, Federal Bank, South Indian Bank and
some co-operative and rural banks.
While ICICI Prudential has done well to stay at the top, the next seven years will certainly
be more difficult than the last seven. Competition is getting keener - in the past couple of
years, Bajaj Allianz is believed to have written more policies than Prudential. SBI Life has a
stronger distribution now that it has signed on many more agents and newcomers like
Reliance (which took over AMP Sanmar) are growing at a fast pace. But the strong growth
in the industry has surprised everyone.
Hello Sir/Madam,
I, RAJNI KANT, here to conduct a research on the T.V audience with respect to advertisement put
up by LIFE INSURANCE COMPANIES. The purpose of this study is to understand, capture,
assesses and evaluate the effectiveness of the advertisement.
We would appreciate if you could spend about 15 Min. and communicate your feelings, expression,
comments and impact on you with respect to the content of the advertisement. Please give your
honest opinion and be understood that this information collected will be purely confidential and not
to be shared with any other entity in term of commercialization.
PERSONAL PROFILE
Name
Age
Occupation
email-id
Postal Address
Contact No.
Q2. How often do you share interesting advertising with your family or friends?
Never
Rarely
Sometimes
Often
Very often
Q9.Can you recall if your family members ever tried to influence you to buy/secure a life insure
Policy from the insurance company of her interest?
Yes
No
Q11. Other than T.V Where you saw Life insurance ad?
Internet
Newspaper
Holdings
Friends/Family
Radio
Q12. Please rank the following Life Insurance Company as per your liking
HDFC Standard Life Insurance
ICICI Prudential Life Insurance
Reliance Life Insurance
Tata AIG Insurance Solutions
Bajaj Allianz
The survey questionnaire was filled by the employee of Delhi Metro Railway, by on-line procedure.
They are from various places of India working in DMRC,used to stay in officer’s flat. The entire
respondents are from South region of Delhi only.
TeleVision 42.0 21
Newspaper 36.0 18
Internet 14.0 7
Radio 8.0 4
Total responses: 50
2) Q2. How often do you share interesting advertising with your family or
friends?
Percentage Responses
Never 8.0 4
Rarely 28.0 14
Sometimes 52.0 26
Often 8.0 4
Very often 4.0 2
Total responses: 50
Yes 96.0% 48
No 4.0% 2
Total responses: 50
http://freeonlinesurveys.com/viewresults.asp?surveyid=414824&print=1 3/29/2008
View Results Page 2 of 4
4.82 / 5
6)Q6. Can you recall the content of the Ad of any life insurance
company?
Percentage Responses
Yes 94.0% 47
No 6.0% 3
Total responses: 50
2.60 / 5
1 21 26 1
The advertisement is believeable. 1 (2.00%) 50 (52.00%)
(2.00%) (42.00%) (52.00%) (2.00%)
2.84 / 5
3 12 26 1
The ad's message is relevant to me. 8 (16.00%) 50 (56.80%)
(6.00%) (24.00%) (52.00%) (2.00%)
2.74 / 5
The benefits described in the ad are believeable to 2 23 12 12 1
50 (54.80%)
me. (4.00%) (46.00%) (24.00%) (24.00%) (2.00%)
2.98 / 5
After viewing this ad, I would consider purchasing 3 14 19 5
9 (18.00%) 50 (59.60%)
the product. (6.00%) (28.00%) (38.00%) (10.00%)
3.00 / 5
This ad is much better than other ads for products in 1 19 13 13 4
50 (60.00%)
this product category. (2.00%) (38.00%) (26.00%) (26.00%) (8.00%)
2.67 / 5
(53.40%)
http://freeonlinesurveys.com/viewresults.asp?surveyid=414824&print=1 3/29/2008
View Results Page 3 of 4
9) Q9. Before buying a product do you pay attention to the Brand Name?
Percentage Responses
Yes 80.0% 40
No 20.0% 10
Total responses: 50
10) Q10. Which of the Insurance Policy would you like to buy?
Average Score Responses
3.70 / 4
11) Q11. Other than T.V Where you saw Life insurance ad?
Average Score Responses
Internet 2.14 / 5 50
Newspaper 1.36 / 5 50
Holdings 2.78 / 5 50
Friends/Family 4.10 / 5 50
Radio 4.62 / 5 50
4.62 / 5
12) Q12. Please rank the following Life Insurance Company as per your
liking.
Average Score Responses
http://freeonlinesurveys.com/viewresults.asp?surveyid=414824&print=1 3/29/2008
View Results Page 4 of 4
4.70 / 5
http://freeonlinesurveys.com/viewresults.asp?surveyid=414824&print=1 3/29/2008
ADVERTISMENT CODE BY IRDA
Every Insurer or Intermediary or Insurance Agent Shall –
1. Have a compliance officer, whose name and official position in the organization shall
be communicated to the Authority, and he shall be responsible to oversee the
advertising program;
2. Establish and maintain a system of control over the content, form, and method of
dissemination of all advertisements concerning its policies.
The form number(s) of the policy(ies) advertised and when the product/s were
approved by the Authority;
File a certificate of compliance with their annual statement stating that, to the
best of its knowledge, advertisements disseminated by the insurer or by its
intermediaries during the preceding year have complied with the provisions
of these regulations and the advertisement code as stated in regulation 12.
2. The Authority shall be informed at the time of filing the advertisement the extent of
change the original advertisement Insurance company advertisements.
4. Where benefits are more than briefly described, the form number of the policy and
the type of coverage shall be disclosed fully.
Source: www.bimaonline.com
IMPACT: Marketing on Society Vs Society on Marketing
Gaurav Wadekar*,**
Introduction
Marketing has long been used by firms to position their products or services in the minds of the
customers. But marketing has remained one tool that not only uses the traits of the society to
tailor their products but has also become a major contributor to society, in terms of molding its
mind set and bringing a sense of sensibility. Of course, it cannot be ignored that inappropriate
Marketing has also led to undesirable impact on society.
Also, there is increasing competition for the hearts and minds of the different markets being
appealed to. When marketing tries to influence how and what people buy, Social Marketing tries
to influence how they think, feel and act.
This paper, titled “Impact: Marketing on Society Vs Society on Marketing”, shall attempt to shed
light on this correlation between Marketing and Society.
The correlation between marketing and society
Does this thesis hold true and if it does, is there any method by which it can be proved?
To begin answering this question, let’s consider a few definitions.
Marketing is defined in various ways by different people. The most suitable to the present context
is “all the activities involved in moving products and services from the source to the end
user, including advertising, sales, packaging, promotion and printingi”. The most critical
entity implied by this definition is ‘end user’.
The definition of society suitable to this context is “Society is made up of people, groups,
networks, institutions, organizations and systems. These aspects of society may include
local, national and international patterns of relationships. People belong to informal and
formal groups, and within and between these groups there are patterns of interactionsii.”
The most critical entity implied by this definition is ‘people’.
Correlation is a synonym for association or relationship between variables. In this case,
Marketing and Society are two variables, while ‘end user’ and ‘people’ are the correlating factors.
In order to devise a method to prove this correlation, we shall consider a set of parameters,
examples and case studies in the later sections of the paper.
Question 1: Why is it necessary to evaluate the impact of society on marketing?
For any firm to form its marketing strategy, it is
Fig 1: Forming a Marketing Strategy necessary to discover unfulfilled customer needs
and bring market products that satisfy those needs.
Situation analysis The process of doing so can be modeled in a
sequence of steps: situation analysis to identify
opportunities, strategy formulation for a value
Marketing strategy proposition, tactical decision making, plan
implementation and result monitoring (refer Fig 1)
Thus, the situation analysis is an analysis of the external environment and the internal forces of
the firm itself. The external environment can be described in terms of macro-environmental
factors that broadly affect many firms and micro-environmental factors, closely related to the
specific situation of the firm.
Figure 2 suggests some frameworks for Situation Analysis.
Fig 2: Frameworks that can be used for Situation Analysis
• 5C Analysis – company, customers, competitors, collaborators, climate
• PEST Analysis – for macro-environmental political, economic, societal, and
technological factors.
• SWOT analysis – strengths, weaknesses, opportunities, and threats – for the internal
and external situation.
PEST analysis can be viewed as equivalent to the “climate” factor of the 5C framework.
The climate factor in the 5 C framework considers the following factors:
• Political and regulatory environment – governmental policies and regulations that
affect the market
• Economic environment – business cycle, inflation rate, interest rates, and other
macroeconomic issues
• Social/Cultural environment – society’s trends and fashions
• Technological environment – new knowledge that makes possible new ways of
satisfying needs; the impact of technology on the demand for existing products.
International Marketing Conference on Marketing & Society, 8-10 April, 2007, IIMK 564
Sr. Type of Parameter Sub Impact of marketing on society Impact of society on marketing
No. segmentation parameters
1 Demographic Age Thumbs up advertisement which said “grow up to ICICI Debit cards for children, especially
segmentation Thumbs Up”, urged children to prefer it to get into caters to the children age group, keeping
the grown up segment, when the Ad intended to urge in view the growng number of parents
the grown ups to prefer Thumbs Up maintaing a fixed monthly account for
their kids
Family size Children and TV, video games, etc are leading to reduced interest “Definitely male” slogan of Pulsar which
and life cycle early of children in physical games, book reading etc, created an increase in buying among men
adulthood hampering growth. Job site promotions increased of this age group, who prefer a Macho
frequent job changes, leading to a change in concept feeling
of staying with the same company for long
Pre-Family - Easily available housing loans leading to buying of “Ready to Eat food” have targeted
Adults houses in early stages of life majorly the working couples who do not
married find the time to cook food
without
children
Family - One Easy availability of education loans have made it Insurance companies have targeted
or more common for families to send their kids abroad for families that need to plan for their
children higher studies. Tourism industry promotions have led children’s future
to increase in domestic as well as international
customers, leading to improvement in work life
balance
Late - Adults Chit funds which created a hype and attracted people HDFC Life insurance ad “na sar jhuka
whose to invest their savings to make easy money, had a hai kabhi aur na jukhega kabhi” targets
children have drastic fall leading to many facing losses the aged segment that demands monetary
left home independence in their old age
Social Premium Due to the emergence of a number of products The luxury cars like Rolls Royce and
class/income segment symbolizing status, a large number of people from Mercedes are targeted at the prestige and
the premium segment prefer only branded status of the premium segment
accessories, apparels etc., due to emerging branded
security service providers, this segment has become
more security conscious
Middle Air Deccan’s low cost airlines made traveling by air Small Cars like Alto, Wagon-R, etc have
segment more convenient and affordable, and hence more been targeted at the middle class people
common who cannot afford a luxury car but would
need a small sized car for the entire
family
Lower Reliance cell phone technology, which made mobile “Nirma” washing powder was targeted at
segment, phones available at very low prices, has made the the lower segment. Over time they have
product accessible to the common man ; Wal-Mart’s come up with many such products in this
news of entry into India has created a furore among segment which generates more revenue
shopkeepers as its wholesale prices shall eliminate than any other segment
them from the market
2 Geo- Rural areas eChapaul of ITC helped farmers in a big way who Cheaper PCs are being introduced, which
demographic were otherwise on verge of suicide are aimed at people from rural areas who
segmentation would otherwise not be able to afford a
PC
Urban areas Easily available housing loans leading to scarcity of Interior Designers utilize structures and
space in big cities plans that require minimal space and
area, thereby targeting the urban areas
where there is dearth of living space
3 Benefit Benefit Due to availability of standardized packaged drinking Fair and Handsome, surrogate
segmentation segmentation water, the level of personal satisfaction of people advertisement (Wills, McDowell’s, etc.)
and behavioral regarding hygiene has increased
segmentation
Behavioral Frequent users Extensive promotion of Colgate has made it a Fairness soaps, have targeted the frequent
segmentation synonym to toothpaste users of soap who would otherwise not
use a fairness cream
Occasional Brufen – advertised for frequent use, but had Points on credit cards urge occasional
Users negative impact on health users to increase usage ad hence increase
purchases
Non users Due to the entry of hair softeners in the retail market, The advertisements that spread awareness
which are affordable and easily available, it has been on usage of condoms to prevent AIDS,
observed that women who were earlier not users of have been targeted on the Non-Users who
any such products have become regular users. Only find it hesitating even to buy these
because products like Fair and Handsome, Hair gel, products
people who were not using, also started using them
4 Psychographics 'young Rang de Basanti, adv. of WWE created lot of Institutes providing coaching to budding
segmentation aspiring' negative impact on youth leading to deaths, fair and student appearing for entrance exams,
lovely adv is indirectly promoting that fair women have used career consulting as a means of
are attractive differentiating themselves
‘young fogey’ Extensive distribution of Hollywood movies have Job sites have attempted to move this
changed the outlook/mindset of this segment with segment, who needs a change of job and
respect to their thinking, living, etc. hence lifestyle
Part VI – Consumer Markets & Marketing
The examples mentioned above describe two phenomena. One is when marketing and society has
a visible and substantial impact on each other. The other is when marketing or society
unintentionally impacts each other.
Whether visible and substantial or unintentional, the truth is there is a cyclical impact on the
product to market process. From the time the product is launched and introduced to the market,
till the product remains there, the impact of the product on marketing and society can be seen in a
cyclical fashion as shown in Fig 3.
Marketing Society
Two case studies found below highlight the two phenomena as mentioned. The first case study
“EMRI: Impact of marketing on society” discusses how EMRI as a method of social marketing
visibly impact society. This case study proves that there is a direct relationship that governs
marketing and society. Then the second case study, “Globalization: Impact of society on
marketing” discusses how globalization has unintentionally affected marketing in a big way.
EMRI: Impact of marketing on society
EMRI is a home grown success story offering a glimmer of hope in the emergency management
scenario in India, currently in the state of Andhra Pradesh. Envisaging a comprehensive coverage
of Medical, Police and Fire emergences through Public-Private Partnership, the Government of
Andhra Pradesh recognized Emergency Management and Research Institute (EMRI), a not-for-
profit institute as the nodal agency to provide comprehensive emergency management services,
by an MOU signed on April 2, 2005.
Just as in other parts of the world, a centralized emergency management system is helping save
lives on a day to day basis, in AP, the number 108 is used as the centralized helpline for Medical,
Police and Fire emergencies. The Government of India allotted this three-digit number – 108-
which is accessible from both fixed and mobile phones and is toll free across the state for all
emergencies. B.Ramalinga Raju, Founder and Chairman of Satyam Computer Services Ltd, and
his brothers have provided the initial funding for setting up EMRI. The Governing body of EMRI
has provided thought leadership.
Here the intention of EMRI was not to market Satyam but indirectly, as EMRI is associated
closely with Satyam, it is helping Satyam in gaining mind share of the society. Neither did
Satyam intend to start EMRI as a tool for marketing, but it is unintentionally symbolizing social
marketing here. This is increasing the brand recall of Satyam within the regions of operations.
Moreover, EMRI has plans to increase its operations and to be recognized as the pioneer in
emergency services in India. Also, considering the fact that in just 365 days of operation, 108 has
helped save over 7,661 lives and responded to over 4.37 million calls, shows the amount of
impact it has created in the society.
International Marketing Conference on Marketing & Society, 8-10 April, 2007, IIMK 567
Part VI – Consumer Markets & Marketing
By setting up such an organization, Satyam has done lot of internal marketing as it provides
opportunities to its associates to work for social cause and hence motivates them. Satyam’s AICS
framework mentions society as one of the pillars in the organization’s success.
This shows that how marketing, internal as well as external has a visible and substantial impact
on society. The point to be noted here, at the cost of repetition is that the intention was not to
market the organization, but indirectly it has done that, and which has a created a huge wave in
society.
Globalization: Impact of society on marketing
Globalization usually refers to the declining significance of national borders, brought about by
increased trade, the spread of information technology, cross-border financial flows, and cultural
transfers. Several forces have contributed to this phenomenon.
• Reduction in trade barriers
• Technology transfers, rapid spread of computers, internet
• Accelerated economic integration through private cross-border financial flows
• Cultural transfers that have given consumers "global tastes"
These forces have led to a tremendous increase in the demand for better goods and services, and
hence the companies have an opportunity to expand in other countries. To ensure global success,
a marketing strategy that could cater to different markets, culture, societies is compulsory.
Though globalization is affecting society, diversity continues to exist.
Considering these diversities, it is necessary that organizations customize the marketing strategy
according to each target country. There are many such examples where productization or
customization was inevitable to cater to a particular country for certain companies.
• Diet Coke is named Light Coke in Japan--dieting was not well regarded
• Red circle trademark was unpopular in Asia due to its resemblance of Japanese flag
• Packaging of products is more important in some countries than in U.S.
• Advertisement featuring man and dog failed in Africa--dogs were not seem as man’s best
friend
• Cologne ad featuring a man “attacked” by women failed in Africa
• Food demonstration did well in Chinese stores but not in Korean ones--older women were
insulted by being “taught” by younger representatives
• MacDonald’s customized its products to cater to the Indian market
All the above examples show that there is an unintentional impact of society, culture on
marketing. As it can be seen from these examples that how organizations had to tweak their
marketing mix to ensure successful launch and life cycle of their products or services to cater to a
particular segment of society.
Conclusion
As shown in figure 4, we can consider a product or service being placed on the line and its impact
on marketing or society can be defined by its closeness to either of the points.
Marketing Society
Fig 4
Moreover, the marketing and society impact each other in a cyclical fashion. When a product is
launched in the market, its effect on society is monitored and depending on the intensity of this
effect the marketing mix is revisited.
International Marketing Conference on Marketing & Society, 8-10 April, 2007, IIMK 568
Part VI – Consumer Markets & Marketing
While it is always intended that the marketing strategy should cause an effect on the society, it is
necessary to ensure that this effect is always on the positive side considering the larger picture. It
is very important to consider that anything that forms a part of the marketing mix of a particular
product or service is going to cause an upswing or downswing in the way society thinks and acts.
Keeping this in mind and bearing the fact that after all the society has to be considered before
devising the marketing strategy, an organization should appreciate the cyclical behavior of
marketing and society.
With this, it can be concluded that as much as marketing impacts society, society also has an
important role to play in marketing strategies and that both are complimentary in nature.
References
http://www.web-source.net/internet_marketing/22734.html
http://www.eventuring.org/
http://www.netmba.com/marketing/process/
http://en.wikipedia.org/wiki/Corporate_social_responsibility
i
www.garyeverhart.com/glossary_of_advertising_terms.htm
ii
members.ozemail.com.au/~mghslib/subjects/society%20culture/Glossary.htm
International Marketing Conference on Marketing & Society, 8-10 April, 2007, IIMK 569