The Persuasive Marketing Tactics

used by Apple Inc

Apple Computer - The Subtle Art of being Cool

Apart from those who have been living under a rock for the last three years, most
television audience members are aware of the recent Apple campaign aimed at comparing
design features of their Mac Computers to that of their competitor, PC. This campaign is
highly persuasive in identifying with audience member’s needs through the use of
symbols.

The advertising campaign entitled “Get a Mac” was launched in 2006 by Apple. They
currently air throughout the world in Canada, Japan, New Zealand, Australia and the
U.K. The campaign is composed 56 television commercial ads and 9 web ads. Every
commercial follows an extremely simple template of a horizontally linear camera angle
with a plain white backdrop. On the right side famous celebrity male-actor Justin Long
introducing himself as Mac, dressed in casual attire: usually blue jeans and a t-shirt. His
character is shown to be youthfully laid back, charming and trendy - or in other words
“cool” by cultural standard. This is somewhat ironic considering most of his roles in the
past he portrays the awkward teenager in desperate need of respect.
On the other side you have comedian John Hodgeman dressed in a gray/brown business
suit. He is portrayed as an uptight, clumsy, ignorant, data-crunching business person who
is by no means cool in any definition of the word. He typically is the first to provide
information to Mac as an attempt to prove he is worthy and capable of more,
functionally. When he is competed against there is a moment within almost every ad
where PC “breaks down” emotionally, frustrated that he cannot rival the applicational
uses of Mac. Long’s character is portrayed to be understanding and sympathetic towards
PC’s inadequacies but is quick to point out new designs of Mac/himself that allow him to
do more- thus furthering the competitive gap between himself and the goofy PC. This
emphasis is especially apparent in the following examples of Mac Commercials released
by Apple.
In the ad entitled “Out of the Box” it begins with the two men sitting inside separate
boxes representing the packaging in which the computers come in. In this situation the
two discuss their plans. The charismatic mac begins thoughtfully expressing what he
could potentially do - make a movie, create a website or even use his built in digital
camera. With so many options to choose from he claims he still hasn’t decided. PC
expresses in a frustrating tone that he first needs to install all his drivers, delete trial
software and read several manuals. Mac then responds “Well it sounds like you have a lot
of stuff to do before you do any stuff so... I’m going to get started because I’m kinda
excited, let me know when your ready”. Then he enthusiastically jumps out of the box
and runs out of frame as the moping PC explains it will be a while since he has parts in
other boxes. This trend is repeated later in an ad where PC and Mac are receiving therapy
from a counselor. PC emotionally rants of how he constantly feels inadequate because he
cannot do as many things as Mac can do out of the box. The counselor then instructs the
two to say something nice about the other system/person. PC states “Well I guess you are
better at creative stuff. even though it is juvenile and a complete waste of time.”

Another example is when the two discuss how they share a lot of the same programs (like
microsoft office) but still maintain what makes their systems unique. Mac optimistically
points out PC’s abilities with spreadsheets. PC bashfully responds “Aw shucks” while
Mac then goes on to claim how he is better at “life stuff”. When PC angrily asks him to
define “better” Mac points out how simple and easy it is use the apple applications
whereas it is difficult to create anything on a PC.

As the campaign gains in popularity apple began taking less focus of the functionality of
applications and placed attention on basic comparisons. In the ad entitled “Virus” PC has
become extremely ill with the new “virus” going around as a result of malware planted
on his computer through browsing. He goes onto explaining that last year there was a
reported 114,000 known viruses on the internet - in which his opponent replies “for PC’s
not Mac’s” and hands him a tissue. This theme was carried over to an episode called
“Spyware” in which PC is disguised in order to avoid spyware attacks and offers his
mustache-sunglasses to Mac so he will be safe as well. Mac explains he runs Mac OS 10
and therefore does not have to worry about getting viruses, malware or spyware.
A more recent advertisement that was done had a slightly different approach. In “ Self
Pity” Mac appears dressed in a business suit as well and explains that Mac’s can also do
work stuff too. This does not sit well with PC as he falls into a self pitying tantrum. He
stammers on about how he knew this day would come.

It is important to take under consideration the four goals of a persuader. Only then can we
truly understand why Apple has become a large success through the uses and
gratifications theory. I will also discuss how the use of symbols has played an important
role in order to identify with audience members and gratify certain needs.

First of all, Apple attempts to identify with a specific group. Since computers are a tool
used by a wide variety of people, demographics have little to offer in targeting and
segmenting an audience. However using the demographic of age is a starting point in
which is expanded through use of psychographics - or segmenting audiences on the basis
of values, lifestyles, attitudes, self image (lecture). Apple is directing their message to
creative young adults who most likely favor creating movies, music and editing pictures
over filling data in spreadsheets. Apple is saying this computer is trendy, youthful and
cool.

Take into account that the Mac is introduced as youthful but this does not mean it is
limited to the youth. The target psychographic has potential to consist of anyone with
progressive values. Anyone who seeks personal identity via technology can be gratified
using Mac. Apple is hoping that when you watch the ads you make the assumption:
Those who are creative and progressive use Mac’s. I am creative and progressive,
therefore I need to go buy a Mac! Or at the very least: Justin Long supports Mac’s. I like
Justin Long, therefore I support Mac’s. If you as an audience member reach this
conclusion, then Apple has been successful in identifying with you. This is known as the
semantic triangle within Semiotics or the study of symbols. Apple is using symbols in
order to provide meaning to viewers that their needs will be met by buy their computer.

This potentially creates cognitive dissonance among present PC users, which may lead to
them switching operating systems as it is no longer practical to have an IBM according to
Justin Long. At the very least makes viewers reflect on their current stance. In another ad
released within the campaign, PC is dressed in a king’s robe and crown. He claims
arrogantly that due to Mac’s inability to run many Windows based programs, his
customers will always be loyal to him. Mac then responds that any Windows customer
can bring their PC drive into the Apple store to have their files reformatted to macintosh.
In a later ad, Mac informs the public and PC of an advancement that allows Windows
systems to be run on Mac computers.
The second goal is how persuaders use repetition to cut through the static of other
advertisements. In a world where special effects and complex computer generated
graphics are common, it is ironic that Apple (a computer company) uses an extremely
simple approach. Everything from visual images to the language being used is simplified-
which in essence is a symbol of the very product they are selling. It is easy to use and
safe from viruses- giving you the ability create without worrying about the computer
itself. This theme is repeated throughout every ad from the campaign. Every episode is
under the same setting (plain white background, light and cheerful music playing) so
when it airs, the viewer knows right away that this is a Mac commercial.

Repetition of language is also used through Synechdoches - labels or a slogans that sum
up a large amount of complexity. Even the title “Get a Mac” is simple yet to the point.
The dynamic of every episode is unchanging. Mac and PC both introduce themselves to
the camera. At this point they exchange passive aggressive interaction to prove which
system is better. Mac is always portrayed as being optimistic and logical while PC tends
to be more emotional about his inadequacy in comparison. PC usually claims something
first in order to prove to Mac that he is better or “even”. In addition, Mac always uses the
word “stuff” as a synechdotal replacement for more technical terminology. This usually
defeats PC’s ranting descriptions of his own functionality. This repetition of simplicity is
considered innovative however I believe their is a great amount of detail that can be
overlooked. I’ll elaborate on this later.
Thirdly, persuaders look to achieve electronic eloquence. The way in which Mac and PC
interact is on an interpersonal level even though they are rivals. Their communication
relies on the personal rivalry between two individuals rather than the actual competing
computer companies. This is symbolic in itself and viewers are persuaded to make
judgements based on who speaks with more ethos, pathos and logos. (credibility, emotion
and logic) to weigh their decision. In this case, it’s fairly obvious they are attempting to
make Mac seem to be stronger in all three categories. He is credible because he is a
celebrity (audience assumption). He shows sympathy towards PC even though they are
depicted as enemies. Lastly he is logical because the information he gives is supported by
reason.
Let’s refer back to the synechdote “stuff”. Mac is developed for anyone to use and I
believe this correlation is noteworthy in regards to the knowledge gap and logos. This
situation in which simplicity defeats complexity both equalizes and even empowers Mac
users regardless of educational level. In this scenario symbols override any further
explanation. People want issues put in ways they understand and that is conducive to this
technologically fast-paced culture we live in. However variances in beliefs cause
interpretations to differ. Meaning can be lost within the translation of individual
experiences and therefore their is huge potential for the gap to increase and even the
“dumbing down” of society to occur.

The main strategy of Apple is based on the premise of audience attitudes. Attitudes are
defined as “a more or less enduring organization of beliefs around an object or situation,
predisposing one to respond in some preferential manner” (lecture notes). These beliefs
in which attitudes stem from are categorized as descriptive and evaluative. The
descriptive belief of the advertisement is are the computers themselves. What causes a
viewer to evaluate them as being good or bad are based on generalizations- by showing a
good looking celebrity symbolizing their product and a clumsy business nerd playing as
the rival computer company. The use of symbols being priority over detailed information
as well as portraying PC as the opposite of “cool” is what Apple uses to persuade
audience members - also known as framing.
Certain ethical issues are raised due to this advertisement. To best analyze the ethics of
the “Get a Mac” campaign one must consider Habermas three types of speech acts.
Constantive- is the truthfulness of the message. Regulative is defined as the
appropiateness of sed message. The avowal is whether or not the message expresses
sincerity. According to the lecture notes “Persuasive messages involve us in a kind of
discourse that may involve these three kinds of speech acts, which can be literally said or
written or can be implied by the visual images presented. The message presents
information of these sorts, and we, the targets of the persuasive attempt, may talk back in
some fashion to challenge them” (Lecture notes). This means that if peruasive message
are imposing on our freedom or in other words, coercively persuading us we as a public,
we can challenge it.
In the case of Apple’s campaign the line is blurred through the use of layered symbols.
The question that is raised is whether Apple is making an ethical argument or do the
meanings mislead the viewer coercively? To begin we will decipher the three acts in the
ad entitled “Out of the Box”. The constantive of the ad is that Mac is “ready right out of
the box” implying that no setup is required whereas PC first needs to install all his
drivers, delete trial software and read several manuals. This is an honest contrast between
the two systems but is it appropriate? Regulative acts used to influence audience
members appear to be ethical since nothing of any negative consequence is directed at
members. Mac then goes on to respond “Well I’m going to get started because I’m kinda
excited, let me know when your ready” and leaves frame. This appears to be sincere
which satisfies the last type- avowal. There are no personal attacks on either audience
member or the opposing company therefore this particular ad is ethical according to the
guidelines set forth.
It all comes down to the product being sold, which is the fourth and final goal of
persuaders. The commodity in this case is the Mac computer. Apple effectively created a
persuasive advertisement that is considered innovative by use of symbols in order to
appeal to audience member’s needs. They were able weaken support for PC computers as
well as boost their own appeal through promoting their simple easy to use applications
without violating any ethical standards or first amendment guidelines. The power of
symbols continues to be expanded on today.

1. 15 short Ads Mac vs. PC Posted by newmexicoproductions; category: people and

blogs tags; Mac PC verses vs. http://www.youtube.com/watch?v=lgzbhEc6VVo

2. Borchers, Timothy A. Persuasion in the Media Age (2nd Edition) Boston; McGraw-
Hill, 2005

3. Apple's mean-spirited ad campaign. - By Seth Stevenson - Slate Magazine Retrieved

via WEB 07.13.2009

1. The “Get a Mac” ads you won’t find on your television". Retrieved via WEB
07.13.2009

6. Apple Official Site

DVERTISING STRATEGY OF
BHARTI TELEVENTURES LTD

This report on Airtel not just give description about the company but it also talks about
the various advertising strategy adopted by the company.
SWOT analysis of Airtel helps to find out the weak points of the company and to find out
the way to overcome this problem.

We are in the era of entertainment through mobile handsets. Downloading a ring tone
watching your favorite movie of tracking cricket score the list of activity that you can do
using your cell phone is endless. To supplement stagnant voice revenues cellular operator
are now turning to VAS to boost revenues in both data and value added voice service.
Airtel has deep rooted presence in the Indian telecom sector through there wide product
offerings and excellent distribution network

In this report I have tried to analyze the present scenario of Indian telecom sector the real
aim of the project is to study the effectiveness and response towards advertisement
provided by Airtel but many sub objectives are also included under this project so as to
make it comprehensive one.
I complement this with the internal study of the companies – history , vision business
areas etc to analyze how well poised the company are to complete or rather just exist in
this market that is proving itself to be the most competitive in post liberalization Indian
economy.

CHAPTER-II
INTRODUCTION

INTRODUCTION
Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti
Group, has a diverse business portfolio and has created global brands in the
telecommunication sector. Bharti has recently forayed into retail business as Bharti Retail
Pvt. Ltd. under a MoU with Wal-Mart for the cash & carry business. It has successfully
launched an international venture with EL Rothschild Group to export fresh agricultural
products exclusively to markets in Europe and USA and has launched Bharti AXA Life
Insurance Company Ltd under a joint venture with AXA, world leader in financial
protection and wealth management.

Airtel comes to you from Bharti Airtel Limited, India’s largest integrated and the first
private telecom services provider with a footprint in all the 23 telecom circles. Bharti
Airtel since its inception has been at the forefront of technology and has steered the
course of the telecom sector in the country with its world class products and services. The
businesses at Bharti Airtel have been structured into three individual strategic business
units (SBU’s) - Mobile Services, Airtel Telemedia Services & Enterprise Services. The
mobile business provides mobile & fixed wireless services using GSM technology across
23 telecom circles while the Airtel Telemedia Services business offers broadband &
telephone services in 94 cities. The Enterprise services provide end-to-end telecom
solutions to corporate customers and national & international long distance services to
carriers. All these services are provided under the Airtel brand.
Business Divisions

Mobile : Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India
and is the largest mobile service provider in the country, based on the number of
customers.
Internet: The group offers high speed broadband internet with a best in class network.
With Landline services in 94 cities we help you stay in touch with your friends & family
and the world.
Data connectivity : The group focuses on delivering telecommunications services as an
integrated offering including mobile, broadband & telephone, national and international
long distance and data connectivity services to corporate, small and medium scale
enterprises.

Fiber cables : The Company compliments its mobile and broadband & telephone services
with national and international long distance services. It has over 35,016 route kilometers
of optic fibre on its national long distance network. For international connectivity to east,
it has a submarine cable landing station at. For international connectivity to the west, the
Company is a member of the South East Asia-Middle East-Western Europe – 4 (SEA-
ME-WE-4) consortium along with 15 other global telecom operators.

Mobile
Prepaid : Enter the world of limitless possibilities with Airtel Prepaid. The service that
helps you give, words to every feeling, an expression to every emotion.

Postpaid : Life becomes much simpler with your Airtel Postpaid. It gives you the
unlimited freedom to reach out to people in your special way.

HISTORY
Bharti Airtel is one of India's leading private sector providers of telecommunications
services based on an aggregate of 71,777,448 customers as on June 30, 2008, consisting
of 69,383,716 GSM mobile and 2,393,732 Bharti Telemedia subscribers.
The businesses at Bharti Airtel have been structured into three individual strategic
business units (SBU’s) - mobile services, telemedia services (ATS) & enterprise services.
The mobile services group provides GSM mobile services across India in 23 telecom
circles, while the ATS business group provides broadband & telephone services in 94
cities. The enterprise services group has two sub-units - carriers (long distance services)
and services to corporates. All these services are provided under the Airtel brand.
Company shares are listed on The Stock Exchange, Mumbai (BSE) and The National
Stock Exchange of India Limited (NSE).

CHAPTER-III
COMPANY PROFILE
Fact sheet
Name Bharti Airtel Limited.
Business Description Provides mobile, telemedia services (fixed line) and enterprise
services (carriers & services to corporates)
Established July 07, 1995, as a Public Limited Company
Proportionate Revenue
Rs. 270,122 million (year ended March 31, 2008-Audited) Rs. 184,202 million (year
ended March 31, 2007-Audited)

As per Indian GAAP Accounts

Proportionate EBITDA Rs. 114,018 million (year ended March 31, 2008 - Audited)
Rs. 74,407 million (year ended March 31, 2007 - Audited) As per Indian GAAP
Accounts
Shares in Issue 1,898,020,804 as at June 30, 2008
Listings The Stock Exchange, Mumbai (BSE) The National Stock Exchange of India
Limited (NSE)
Market Capitalisation Market Capitalisation (as on September 18, 2008) Approx. Rs.
1,443 billion Closing BSE share price = Rs. 760.35
Customer Base 69,383,716 GSM mobile and 2,393,732 telemedia customers (Status as at
month ended June 30, 2008)
Operational Network Provides GSM mobile services in all the 23 telecom circles in India,
and was the first private operator .
Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting
investments in telecommunications services. Its subsidiaries operate telecom services
across India. Bharti Tele-Ventures is India's leading private sector provider of
telecommunications services based on a strong customer base consisting of
approximately 9.03 million total customers which constitute, approximately 8.28 million
mobile and approximately 750,000 fixed line customers, as of August 31, 2004.
Investor Relations

Creating value for our customers, employees, investors, partners,θ vendors and the
society at large lies at the root of our fundamental business strategy. Our core principles
of trust and transparency have come a long way in helping us develop and nurture long-
term relationships with our key stakeholders. Our performance exudes from our belief in
and commitment to the telecom sector; and translates into creating innovative exciting
opportunities for one and all.

Corporate Governance
Bharti Tele-Ventures Limited firmly believes in the principles ofθ Corporate
Governance and is committed to conduct its business in a manner, which will ensure
sustainable, capital-efficient and long-term growth thereby maximizing value for its
shareholders, customers, employees and society at large. Company's policies are in line
with Corporate Governance guidelines prescribed under Listing Agreement/s with Stock
Exchanges and the Company ensures that various disclosures requirements are complied
in 'letter and spirit' for effective Corporate Governance.

During the financial year 2003-04, your Company has been assignedθ highest
Governance and Value Creation (GVC) rating viz. 'Level 1' rating by CRISIL, which
indicates that the company's capability with respect to creating wealth for all its
stakeholders is the highest, while adopting sound Corporate Governance practices

Board of Directors

The Board of Directors of the Company has an optimum mix ofθ Executive and Non-
Executive Directors, which consists of three Executive and eleven Non-Executive
Directors.

The Chairman and Managing Director, Mr. Sunil Bharti Mittal, is anθ Executive
Director and the number of Independent Directors on the Board is more than 50% of the
total Board strength. The independence of a Director is determined on the basis that such
director does not have any material pecuniary relationship with the Company, its
promoters or its management, which may affect the independence of the judgment of a
Director.

The Board members possess requisite skills, experience and expertiseθ required to take
decisions, which are in the best interest of the Company.
Boards Members by Ranking
Sunil Bharti Mittal Chairman and Managing Director
Rajan Bharti Mittal Director
Akhil Gupta Joint Managing Director
Rakesh Bharti Mittal Director
Chua Sock Koong Director
Pulak Chandan Prasad Director
Bashir Abdulla Currimjee Director
Mauro Sentinelli Director
Professor V.S Raju Director
O’Sullivan Director
Kurt Hellstrom Director
N. Kumar Director
Ajay Lal Director
Francis Heng Director
Arun Bharat Ram Director

Audit Committee

The Audit Committee of the Board deals with all matters relating to financial reporting,
internal controls, risk management, related party transactions etc. and reports back to the
Board on the matters, which among others, include

Reviewing the Company’s financial reporting processes and systems.

Recommending the appointment and removal of statutory auditors, fixation of audit fee
and related expenses.

Reviewing the Company’s financial and risk management policies.

Reviewing with management the half-yearly and annual financial statements, before
submission to the Board, focusing primarily on:

Changes in accounting policies and practices;

Major accounting entries, qualifications and accounting issues based on the managements
discretion and judgment;

Compliance with the accounting standards;

Compliance with the stock exchange and legal requirements, concerning financial
statements;

Any related party transactions; and

Adequacy and effectiveness of internal audit processes and systems.

The un-audited/audited quarterly financial results of the Company are also specifically
reviewed by the Audit Committee before these are submitted to the Board for approval.
Minutes of each Audit Committee meeting are placed before the Board for information.

Human Resource (HR)/ Remuneration Committee

The Human Resource Committee of the Board discharges the functions of the
remuneration committee, along with specifically looking into the following areas:

Framing policies and compensation packages of top executives; including salary

adjustments, incentives, bonuses, promotions, stock options and performance targets.

Remuneration of Directors

Strategies for attracting/retaining employees, and employee development programs

Key issues referred by the Board

ESOP Compensation Committee

The Compensation Committee of the Board has been constituted in accordance with
SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme)
Guidelines, 1999 for administration and superintendence of Employee Stock Option Plan
(ESOP) of the Company.

Scope of the Compensation Committee

Formulating policies and procedures to ensure that there is no violation of SEBI (Insider
Trading Regulations) and (Prohibition of Fraudulent and Unfair Trade Practices relating
to Securities Market) Regulations by any employee.

CHAIRMAN PROFILE

Sunil Bharti Mittal

Chairman & Managing Director Since October 2001
Board director since: July 1995
Age: 49 years

Sunil Bharti Mittal is the Chairman & Managing Director of Bharti Airtel Ltd. head
quartered at New Delhi, India.

Sunil Bharti Mittal started his career at a young age of 18 after graduating from Punjab
University in India and founded Bharti, with a modest capital, in the year 1976. Today, at
49 he heads a successful enterprise, amongst the top 5 in India, with a market
capitalization of over US$ 40 billion and employing over 30,000 people.
Sunil Bharti Mittal is an alumnus of Harvard Business School, MA, USA.

Sunil Bharti Mittal has been conferred one of the highest civilian award – Padma
Bhushan.

Sunil Bharti Mittal has been conferred the degree of Doctor of Science (Honoris Causa)
by the G B Pant University of Agriculture & Technology.

Sunil Bharti Mittal is an Honorary Fellow of “The Institution of Electronics and

Telecommunication Engineers (IETE)".

OBJECTIVES
As set out in the Memorandum of Association of Bharti Tele-Ventures, our main objects
are as follows:
1. To promote and establish companies, funds, associations or partnerships for providing
telecom networks and/or to run and maintain telecom services like basic/fixed-line
services, cellular/mobile services, paging, videotext, voice mail and data systems, private
switching network services, transmission network of all types; computer networks i.e.
local area network, wide area network, electronic mail, intelligent network, multimedia
communication systems or the combinations thereof and for execution of undertakings,
works, projects or enterprises in the telecom industry whether of a private or public
character or any joint venture with any government or other authority in India or
elsewhere and to acquire and dispose of shares/securities in such companies, and funds
and interest in such associations or partnerships.
2. To provide telecom networks and to run and maintain telecom services like
basic/fixed-line services, cellular/mobile services, paging, videotext, voice mail and data
systems, private switching network services, transmission networks of all types,
computer networks like local area network, wide area network, electronic mail, intelligent
network, multimedia communication systems or combinations thereof.
3. To carry on the business of manufacturers, merchants, dealers, distributors, importers,
exporters, buyers, sellers, agents and stockists, and to market, hire, lease, rent out,
assemble, alter, install, service, design, research and improve, develop, exchange,
maintain, repair, refurnish, store and otherwise deal in any manner in all types of
telephone exchanges, telephone instruments -whether corded, cordless, mobile or of any
other kind; tele-terminals, fax machines, telegraphs, recording instruments and devices,
telephone message/answering machines and devices; dialling machines, trunk dialling
barring devices, wireless sets and other wireless communication devices like radio
pagers, cellular phones, satellite phones etc; telecom switching equipments of all kinds;
telecom transmission equipments of all kinds, test equipments.

VISION

BY 2010 AIRTEL WILL BE THE MOST ADMIRED BRAND IN INDIA:

LOVED BY MORE CUSTOMERS.¬

TARGETED BY TOP TALENT.¬

BENCHMARKED BY MORE BUSINESS.¬

BHARTI’S MISSION

To be globally admired for telecom services that delight customers.

We will meet global standards for telecom services that delight customers through:

• Customer Service Focus

• Empowered Employees
• Cost Efficiency
• Unified Messaging Solutions
• Innovative products and services
.Error- free service delivery
ACHIEVEMENTS

• First to launch Cellular service on November 1995.

• First operator to revolutionaries the concept of retailing with the inauguration of AirTel
Connect (exclusive showrooms) in 1995.
• First to introduce push button phone in India.
• First to expand it's network with the installation for second mobile switching center in
April, 1997 and the first to introduce the Intelligent Network Platform First to provide
Roaming to its subscribers by forming an association called World 1 Network.
• First to provide roaming facility in USA. Enjoy the mobile roaming across 38 partner
networks & above 700 cities Moreover roam across international destinations in 119
countries including USA, Canada, UK etc with 284 partner networks.
• BHARTI announces aggrement with VODAFONE marking the entry of the World's
Largest Telecom Operator into India
• Bharti Enterprises and AXA Asia Pacific Holdings Limited announce Partnership for a
life insurance joint venture in India
• Airtel Launches future factory - Centres of Innovation to Incubate Pioneering Mobile
Applications
• 16 states, 600 million people. Only India's leading mobile service offers you the truly
'freedom-packed' Prepaid!
• It is also the first company to export its products to the USA.

BHARTI announces agreement with VODAFONE marking the entry of the World's
Largest Telecom Operator into India

• Vodafone to invest approximately Rs. 6,700 crores (approx. USD 1.5 bn.) to acquire
around 10% in Bharti Tele-Ventures Ltd.
• Bharti Enterprises, SingTel and Vodafone to take Bharti Tele-Ventures Ltd. to
unassailable leadership position in India
• The largest single foreign investment ever in the history of India
• The largest investment in the Indian telecom sector
• Bharti establishes its supremacy in the Indian telecom market, having attracted Asia’s
best – SingTel, and now world’s best – Vodafone.
• Bharti set to gain global leadership in the telecom sector
• Bharti Enterprises continues to hold shareholding and management control in Bharti
Tele-Ventures.

AirTel: Appropriating the value of 'expression'

Over the last couple of years, the market has grown considerably, with deeper penetration
and wider usage of voice and data services, accompanied by much higher competitive
intensity," Atul Bindal, chief marketing officer, Bharti TeleVentures, expands on this. "In
this context, differentiating merely on network, coverage and SMS is just not enough.
You need to go beyond all the rational identifiers - which are prerequisites in any case -
and connect at a deeper level. We needed a strong differentiator in an increasingly
commoditized and crowded market. We found this differentiator in a core human truth
that defines our category - which is that there are moments when you need to make your
point, when you need to be heard. Expressing and communicating are perhaps two of the
most basic emotions. AirTel enables you to make your point in the most expressive way,
anytime, anywhere. The campaign is towards owning this through 'Express yourself.' We
believe 'Express yourself' allows us to connect at a deeper level and create a long-term
platform for the brand."

For AirTel, the challenge also lay in presenting a unified 'face' to the consumer. This
assumes significance when viewed in the light of the company's pre- and post-paid
communication, which, in the past, had been treated very differently. Brand image, as a
result, was being driven in two different dimensions. "Brand AirTel is a category leader
straddling completely different market segments such as consumer, business and
corporate, as well as different voice, data and payment platforms," says Bindal. "'Express
yourself' enables the brand to unify and connect across the entire base of our existing and
prospective customers."

One of the most obvious benefits of owning a property such as 'candid expression' (and
'Express yourself') is the expansive nature of the thought. "The moment you have as
broad a canvas as 'Express yourself', it becomes easy for anyone working on the brand to
come up with new ideas and executions. That's what makes a good campaign idea,"
observes Rediff's Prashant Godbole, who, along with creative partner Zarvan Patel,
conceived the campaign. This is just the proverbial tip of the iceberg, Patel adds. "We
will be taking the idea forward in many different ways in the forthcoming work," he
informs. Patel also credits his creative team for "fleshing out the idea".

Awards and Recognitions

2007-2008
¬ Bharti Airtel has won the CNBC-TV18 India Business Leader Award for the
Outstanding Company of the year, 2007
¬ Bharti draws top honours at the NDTV Profit Business Leadership Awards 2007
¬ Bharti Airtel Ranked 3rd on Shareholder Returns in BusinessWeek IT 100 List
¬ Sunil Bharti Mittal conferred Degree of Doctor of Science (Honoris Causa) by G. B.
Pant University
2006-2007
¬ Bharti draws top honours at the NDTV Profit Business Leadership Awards 2007
¬ Bharti Airtel awarded the prestigious QCI-DL Shah Award on Economics of Quality
¬ Sunil B. Mittal chosen for this year’s Padma Bhushan Awards
¬ Bharti Airtel is once again chosen for India’s most Customer Responsive Telecom
Company Award
¬ Triple success for Akhil Gupta at CFO Awards for India
¬ Bharti Airtel is amongst India’s Most Admired Knowledge Enterprises in 2006
¬ Sunil Bharti Mittal receives ‘The Honorary Fellowship’ fromIETE
¬ Bharti Airtel draws Top Honors at the MIS Asia IT Excellence Awards 2006
¬ Bharti Airtel among the top 10 best performing companies in the world according to
Business Week IT 100 list
Sunil Bharti Mittal is CEO of the Year at the Frost & Sullivan Asia Pacific ICTAwards
2006 & Bharti Airtel bags Wireless Service Provider of the Year andCompetitive Service
Provider of the Year

Organization Structure
As an outcome of a restructuring exercise conducted within the company; a new
integrated organizational structure has emerged; with realigned roles, responsibilities and
reporting relationships of Bharti’s key team players. With effect from March 01, 2006,
this unified management structure of 'One Airtel' will enable continued improvement in
the delivery of the Group’s strategic vision.

Areas of Operations
Delhi
Our Delhi network covers a license area that includes the state of Delhi and the
neighbouring towns of Faridabad and Gurgaon in the state of Haryana, and Ghaziabad
and Noida in the state of Uttar Pradesh. We have a 20-year license to provide cellular
services in our Delhi circle, valid until November 2014, and which is extendible by
additional periods of 10 years. In addition to being India’s political capital, Delhi has the
highest per capita income, the highest installed fixed-line penetration rate, and the highest
population density among the 29 states of India. Delhi has a high concentration of service
and manufacturing industries and houses the Central Government, the head offices for
many major public sector enterprises, embassies and various government missions and
development agencies. We believe that these factors create high roaming revenue
potential from cellular subscribers who roam into our network from other circles. As of
November 30, 2001, we had 465,278 customers in Delhi, giving us a market share of
approximately 56% in this circle.

Karnataka and Andhra Pradesh

Located in southern India, Karnataka is a major business centre and several information
technology companies are based in and around its capital, Bangalore. Andhra Pradesh is
adjacent to Karnataka and several information technology companies are based in and
around its capital, Hyderabad. Information technology companies are typically high-
volume users of telecommunications services, particularly for data transmission. We offer
cellular services in these circles pursuant to 20-year license, valid until 2016 for
Karnataka and until 2015 for Andhra Pradesh, each of which is extendible by additional
periods of 10 years. As of November 30, 2001, we had 177,810 and 195,054 customers in
Karnataka and Andhra Pradesh, respectively, giving us a market share of approximately
57% and 48%, respectively, in these circles.

Chennai
We provide cellular services in Chennai (the capital city of the southern state of Tamil
Nadu) and in the adjoining areas of Mahabalipuram, Minjur and Maraimalai Nagar.
Chennai is a major centre for information technology companies and foreign
multinational corporations. Our network is operated pursuant to a 20-year license, valid
until November 2014, and which is extendible by additional periods of 10 years. As of
November 30, 2001, we had 110,032 customers in Chennai, giving us a market share of
approximately 51% in this circle.
Himachal Pradesh
Located in northern India, Himachal Pradesh is one of India’s most mountainous states
and is a popular tourist destination, particularly for residents of Delhi and other north
Indian states. Our network is operated pursuant to a 20-year license, valid until
November 2015, and which is extendible by additional periods of 10 years. As of
November 30, 2001, we had 12,462 customers in Himachal Pradesh, giving us a market
share of approximately 64% in this circle.
Kolkata
Kolkata is the capital city for the eastern state of West Bengal. Several domestic and
multinational companies are based in Kolkata and it is a major centre for trade and
commerce in eastern India. Our network is operated pursuant to a 20-year license, valid
until November 2014, and which is extendible by additional periods of 10 years. As of
November 30, 2001, we had 87,570 customers in Kolkata, giving us a market share of
approximately 41% in this circle.
We have grown as a result of both organic growth and acquisitions of circles completed
by us. The following table sets forth the growth in the number of our cellular customers
over the last three years.
In September 2001, we entered into license agreements with the DOT to provide cellular
services in the eight circles of Mumbai, Maharashtra, Gujarat, Madhya Pradesh, Haryana,
Uttar Pradesh (West), Tamil Nadu and Kerala. All these licenses are for a period of 20
years, valid until August 2021, and are extendible by additional period of 10 years. In
September 2001, the DoT also restored the Punjab license in our favour. The Punjab
license is for a period of 20 years, valid until 2015, and is extendible by additional
periods of 10 years. We expect to commence providing cellular services in these nine
proposed circles by the middle of this year.
Mumbai
Mumbai is the financial and commercial capital of India and one of the largest cities in
the world in terms of population. Mumbai is among the highest per capita income cities
in India. Several leading financial institutions, regulatory agencies, multinational
corporations, service organizations and leading conglomerates are located in Mumbai.
The concentration of commercial activity and service industry in Mumbai has led to a
strong demand for telecommunications services, both voice and data.
Maharashtra. Surrounded by Gujarat, Madhya Pradesh, Andhra Pradesh and Karnataka,
Maharashtra is a prominent state in Western India.
Maharashtra is one of the most industrialised states in India and several industries
including sugar, pharmaceuticals, petrochemicals, heavy chemicals, electronics,
automobiles, engineering, food processing and plastics are located in the state.
Maharashtra has attracted high amount of investment from Indian and foreign companies
in the past. Among states, Maharashtra has among the higher literacy rates and is a centre
for learning and research in India.
Gujarat
Gujarat is located adjacent to Maharashtra and is also a prominent industrialised state in
the country. Several companies in the chemicals and petrochemicals, pharmaceuticals and
textiles sectors are based in Gujarat and the largest grass-root level petroleum refinery in
India is located in the state. Gujarat also has one of the busiest ports in India and handled
a high proportion of India’s exports for the year ended March 31, 2001.

Haryana
Haryana is adjacent to Delhi and is surrounded by the states of Himachal Pradesh, Uttar
Pradesh, Rajasthan and Punjab. The city of Chandigarh, which is a union territory, is a
joint capital city of the states of Haryana and Punjab. Haryana is also an emerging centre
in north India for IT enabled services such as call centres, which are typically high-
volume users of telecommunications services.
Punjab
Punjab is among the highest per capita income states in India. Punjab has emerged as a
leading producer of agricultural products in India and several multinational corporations
have invested in Punjab in agricultural-related businesses. Punjab is also emerging as a
base for the production of engineering goods, pharmaceuticals, leather goods, food
products, textiles, electronic goods, sugar, machine tools, hand tools, agricultural
implements, sports goods, paper and paper packaging materials.
Uttar Pradesh (West)
Uttar Pradesh (West) is a circle carved out of the north Indian state of Uttar Pradesh by
the DoT and has been classified as a Category B cellular license area. It is a popular
tourist location in northern India with several holy shrines and pilgrimage locations.
Madhya Pradesh
Located in central India, Madhya Pradesh has a total area of approximately 443,000
square kilometers and has substantial mineral resources, making it a centre for the
aluminum, chemical and iron and steel industries. Several industries in the electronics,
telecommunications, petro-chemicals, food processing and automobiles sectors are also
located in Madhya Pradesh.

Kerala
Located in south India, Kerala is rich in minerals, marine products and agricultural
products. A large section of the former population of Kerala lives outside India as non-
resident Indians and has contributed to a relatively high foreign exchange inflow in this
state. The state has the highest density of science and technology personnel and the
highest literacy rate in India.
Tamil Nadu
Located in southern India, Tamil Nadu is surrounded by Andhra Pradesh, Karnataka and
Kerala. Tamil Nadu has several industrial undertakings engaged in cotton, sugar, leather,
textiles, engineering and petrochemicals sector. The state has a large number of
professionals and has witnessed a rapid growth in the software industry in the past few
years.
In addition to entering into licenses with the DOT for our eight additional circles and the
restoration of our Punjab license, we have taken the following steps towards commencing
operations in these circles and the integration of the proposed circles with our existing
circles:
completed network planning activities and implementing the same entered into rate
contracts and, for some circles, placed purchase orders with vendors, including Siemens,
Motorola and Ericsson, for the supply of telecommunications equipment and network
design commenced recruitment activities and internal transfer of employees for new areas
of operations entered into agreements with the Escorts group, a provider of cellular
services in the Haryana, Kerala, Uttar Pradesh (West), Himachal Pradesh and Punjab
circles, to share cellular infrastructure in order to reduce costs and speed the launch date
for our services identified, and in some cases acquired, locations for the main switching
centres and cell sites. selected a common billing system, customer relationship and
enterprise resource planning packages and other office systems and controls for our
existing and proposed cellular networks.
Airtel has also reorganized the management structure of its cellular business on a regional
basis in an effort to better capture revenue and cost synergies.

PRODUCT LINE-UP

Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the
largest mobile service provider in the country, based on the number of customers.

The group focuses on delivering telecommunications services as an integrated offering

including mobile, broadband & telephone, national and international long distance and
data connectivity services to corporate, small and medium scale enterprises.

The group offers high speed broadband internet with a best in class network. With
Landline services in 94 cities we help you stay in touch with your friends & family and
the world.

The Company compliments its mobile and broadband & telephone services with national
and international long distance services. It has over 35,016 route kilometers of optic fibre
on its national long distance network. For international connectivity to east, it has a
submarine cable landing station at. For international connectivity to the west, the
Company is a member of the South East Asia-Middle East-Western Europe – 4 (SEA-
ME-WE-4) consortium.
Services
Broadband and internet services
Airtel brings you a host of exciting features ranging from facilities like Online tests, In
touch and Video Surveillance Solutions to trouble shooting devices like, Net Expert and
Web Jockey.

Control your business, 24x7. Observe your office, warehouse, shop and staff from your
PC, from anywhere and all the time

Create and share your precious moments with your loved ones with In Touch. It’s a great
way to reach out to your loved ones who are far away.

Introducing NetXpert, India’s first ever automated Broadband care technology which
provides immediate solutions for Internet connectivity related problems.

Airtel Broadband Services and TCY Online offer you online competitive tests for GRE,
GMAT, SAT and MBA, from the comfort of your home.

Wifi is a wireless technology brand by the Wifi Alliance that gives you a host of fantastic
advantages ranging from reliability to security.

Calling cards
Our calling card services connect you to your friends and friends in India a cost effective
and reliable manner. Choose from the options below and stay connected.
Calling Cards include

Great savings on calling anywhere in India or across the world. Even if your phone is not
STD/ISD enabled, go ahead and talk to your loved ones.

Now call back India from USA at lowest cost of just 6c / min .

Traveling abroad? Save precious foreign exchange and up to 94% over international
roaming charges.
Home Phones
Home Phones include

Airtel welcomes you to its world of telephony services, which offers you world class
services with its cutting edge technology.

Avail of the convenience of a mobile phone on a fixed line, without any cables disturbing
the ambience of your living room!
Mobile Footprint

The map below depicts the location of, and provides certain information for, Bharti Tele-
Ventures' existing mobile circles in India:

PROMOTIONAL STRATEGY
After the liberalization of the Indian Telecom Sector in 1994, the Indian cellular market
witnessed a surge in cellular services. By 2005, there were a total of 12 players in the
market with the five major players being Bharti Tele-Ventures Limited (Bharti), Bharat
Sanchar Nigam Limited (BSNL), Hutchinson-Essar limited (Hutch), Idea Cellular limited
(Idea) and Reliance India Mobile (RIM).

All the players except RIM offered services based on the Global System for Mobile
(GSM) technology. RIM provided services based on Code Division Multiple Access
(CDMA) technology as well as GSM.

As competition in the telecom arena intensified, service providers took new initiatives to
woo customers. Prominent among these were - celebrity endorsements, loyalty rewards,
discount coupons, business solutions and talk time schemes. The most important
consumer segments in the cellular industry were the youth segment and the business class
segment. The youth segment was the largest and fastest growing segment and was
therefore targeted most heavily by cellular service providers.

Bharti Tele-Ventures adopted celebrity endorsement as its chief promotional strategy. By

2004 it emerged the unprecedented leader commanding the largest market share in the
cellular service market. (Refer Exhibit II). Hutch implemented the celebrity endorsement
strategy partially, relying primarily on its creative advertising for the promotion of its
brand. BSNL, on the other hand, attracted the consumer through its low cost schemes.
Being a state owned player, BSNL could cover rural areas, and this helped it increase its
subscriber base. Reliance was another player that cashed on its innovative promotional
strategies, which included celebrity endorsements and attractive talk time schemes. Idea,
relied heavily on its creative media advertising sans celebrities.

SWOT ANALYSIS

STRENGHTS

1. India has technically educated, motivated and intelligent workforce, who if given
proper incentives like quality living and benefits, can be retained in India .
2. India possesses cheap labours to attract foreign investments.
3. Telecom software, telecom professionals, telecom infrastructure and telecom services
are the key players in shaping today’s economy.
4. Revenue sharing strategies are leading to mergers and actuations, helping companies to
enter new business opportunities, and generate employments, boosting the country’s
economy.
5. Privatization of VSNL, along with its partnership with Tata has benefited not only the
two companies but also the county at large.
6. Information technology growth can propel India into IT superpower.
7. Quality of life definitely improves when the infrastructure and economy improves.
8. India has huge project plans with foreign countries which can attract further mergers ,
investments etc.
9. Foreign companies that are facing problem in home market have already identified
India as a potential markets for business and therefore they are heavily investing in India.
10. Government has already started relaxing rules for foreign participants.
11. Software exports from software technology parks are a huge potential business.
12. Though global telecom picture looks gloomy but India possesses the competitive
advantage in terms of its huge market size and many undeveloped areas.

WEAKNESSES

1. Bureaucracy and politics tremendously affects the business policies.

2. Slow reform process and slow liberalization affect the changes and makes the progress
slow.
3. Foreign companies wanting to invest in India are put off due to continuously changing
rules and lax policies.
4. Telco’s though united, provide some services that bring them in close competition and
therefore lose not only profits but also consumer confidence.
5. Compared to the global structure, India is still concentrating on universal service in
some parts of the country.
6. Since 1994 reform process, telecom density has only gone up to 3 as compared to the
global average of 14.
7. Though cellular is the most attractive business today, but still the overall number of
cellular subscribers is very low and this market really needs to be tapped.
8. Embracing change and understanding the technology takes a lot of time making the
changes very slowly.

OPPORTUNITIES

1. Lot of new entrants in telecom is bringing investment opportunities.

2. Economic liberalization is bringing a significant amount of progress.
3. Telecom educational institutes are coming up to keep the professionals at par with the
changing technology.
4. New opportunities are generating more employment and creating a knowledge based
economy
5. Privatization of services in telecom sector has led to keen competition, as a result of
which prices are reduced and more business opportunities are created.
6. Increased availability of bandwidth has opened doors to new schemes making efficient
usage /providing value added services and generating profits.
7. For cellular operators providing long distance is a lucrative business opportunity and
they can also concentrate on providing many value added services.
8. Provision of not only basic services /but also, internet, cellular, medical transcription,
call center.

THREATS

1. Regulatory and tariff changes especially in the cellular operations are constant threats.
2. China’s early liberalization and the fast growing economy may prove to be a hindrance
for India.
3. Economic protectionism and continuous political changes plays against plays against
everybody’s favors and affects the good intentions of players even like reliance / Tatas
etc.
4. Price regulations based on pre set rate of return hinder the growth.
5. Young hard working and intelligent work force want to leave the country due to poor
economic conditions and exploitation.
6. Indian businesses take time or can’t survive due to the constantly changing technology
and fast-paced nature of telecom business.

CHAPTER-IIII
RESEARCH OBJECTIVE

RESEARCH OBJECTIVE

The objective of my project report is to study the advertising strategy of AIRTEL

Cellular service and its effect on mobile users existing and who are going to use mobile
service in future. In other words, my aim is to study the

Advertising Effectiveness of AIRTEL Cellular service.

¬ To learn the practical knowledge and how academic knowledge convertible in practical
way.

¬ To find out the success rate of the airtel cellular.

¬ To find out how much organization is involved in the mind of consumer.

¬ To measure the customer’s satisfaction of airtel who are using airtel services and
products.

¬ To develop a new strategy for the improvement of existing Airtel services and to find
new ways of increasing Market share.

CHAPTER-V
RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Achieving accuracy in any research requires in depth study regarding the subject. As the
prime objective of the project is to study advertising strategy of Airtel .The research
methodology adopted is basically based on primary data via which the most recent and
accurate piece of first hand information could be collected. Secondary data has been used
to support primary data wherever needed.
Primary data was collected using the following techniques
Questionnaire Method
Direct Interview Method and
Observation Method
The main tool used was, the questionnaire method. Further direct interview method,
where a face to face formal interview was taken. Lastly observation method has been
continuous with the questionnaire method, as one continuously observes the surrounding
environment he works in.

Procedure of research methodology

# Target geographic area was East Delhi.
# To these geographical area questionnaire was given, the questionnaire was a
combination of both open ended and closed ended questions.
# The date during which questionnaires were filled was between six week.
# Some dealers were also interviewed to know their prospective. Interviews with the
honour of retailer of Airtel were also conducted.
# Finally the collected data and information was analyzed and compiled to arrive at the
conclusion and recommendations given.
Sources of secondary data

Used to obtain information on, Airtel and its competitor history, current issues, policies,
procedures etc, wherever required.
# Internet
# Magazines
# Newspapers

CHAPTER-VI
LIMITATIONS OF STUDY

LIMITATIONS OF STUDY

The researcher has to face certain difficulties while he carries out the research work. He
knows the limitations before hand. Some of them are uncontrollable and some others are
controllable. Some important limitations, which were faced, are as follows:

1. Limitation of Time: I have completed the research in limited time. In spite of all the
difficulties if the time is short it is quite possible that one cannot collect the sufficient
data and have to depend upon other source of data.

2. Limitation of funds: Availability of funds was another limitation owning to shortage of

money.

3. Limitation of skills: the research needs a lot of statistical work involving collection and
tabulation of data, interpretation of data and drawing out the necessary results. It requires
an able, efficient and experienced research works.

4. Limitation of human behaviors:

(a) Some of the respondent was not honest and genuine in their approach.
(b) Some of the respondents could not understand certain queries.
CHAPTER-VII
CONCLUSION

CONCLUSION

The conclusion of my study is that AIRTEL’s Advertising has a major impact on its
users. People like its schemes very much .AIRTEL had created a very good image on the
mind of the new users of cellular service.

AIRTEL has adopted a very good strategy by providing a new connection with NOKIA
who is market leader in mobile sets, many new users buy Nokia sets and they get a free
connection of AIRTEL.

AIRTEL is successful in capturing the highest market share by adopting Celebrity

Endorsement Strategy. A.R. Rehmaan’s tune for AIRTEL worked as free advertising for
AIRTEL as another service user uses it too. Other celebrities like Shahrukh Khan
(Bollywood) and Sachin Tendulkar (Cricket) has also contributed very much in AIRTEL.

AIRTEL has influenced mass customer by its wide network base in India and is popular
among business man and professionals but in students it isn’t a popular one because there
isn’t much attracting schemes and offers for the youth.

CHAPTER-VIII

RECOMMENDATIONS

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The Effects of TiVo On Advertising -

 Marketing Essay

The Effects of TiVo On Advertising - Marketing Essay

Putting “TiVo” and “commercial” next to each other may seem paradoxical. TiVo is
initially selling its feature of skipping commercials. However, with the launch of

TiVo, many advertisers feel threatened for their commercials not being broadcasted to
what they had paid for. In order not anger major supporters of TV programs, TiVo has
been trying to be commercial-friendly and has eliminated the feature of skipping
commercials. In the August issue of Television Week, TiVo recently signs contract with
five brands to advertise. The proposed advertising method is a branded tag on TiVo
consumers’ screens, and they can find out more information by pressing a button on their
remote.

This “branded tag” operates similar to Internet advertising. Consumers are exposed to
promotional messages but not forced to watch them. Given its similarity to Internet
advertising, advertisers can offer incentives for people to click the branded tags. For
example, TiVo could count the number of clicks in a certain designated period. For each
click of the tag, advertisers would offer certain amounts of monetary reimbursement to
the consumer. Or the reimbursement could be used as credit in paying the monthly TiVo
subscription fee. Advertisers could also give exclusive offers to only those who clicked
the tag. Money is usually the best incentive to get people to do an act.

TiVo now has 3.3 million users. Assume they all clicked the tag for Tylenol once in a
month, and each click is worth $0.45. Each month Tylenol would have to send out
$1,685,000 of reimbursement, and $20,220,000 for a year. That is only about 2.6% of its
total sale of $786.5 million sales in 2004. Assume all TiVo viewers on average $6 on
Tylenol products in the month within clicking the tag, Tylenol makes a profit of $5.55
per viewer after issuing the reimbursement. Therefore, Tylenol still makes $18,315,000
for the month. Even though it has to pay consumers to watch its commercial, Tylenol is
not losing money.

Consumers would be happy to watch commercials knowing that they are being paid to
watch. Although consumers are willing to spend over $100 to avoid commercials, they
are also willing to spend several seconds to make some money. Offering reimbursement
should compensates consumers’ frustration for unable to avoid ads, yet advertisers still
get their messages across. After all, Tom Rogers the CEO of TiVo sees TiVo “as a
platform for dealing with, and allowing for the growth of, the advertising business.”

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Marketing's Role in the Organization

- Essay

Topic: If the premise is that marketing creates value, then explain marketing’s role in the
organization.

In the modern economic society, marketing has been very close to everyone’s life. There
are also some organizations such as enterprises, schools, institutions and government
which are adopting various marketing activities every day in order to create more benefits
for themselves. Drucker (1974) has stated that the purpose of marketing is to make
selling surplus. The aim of marketing is to fully realize and understand customers, in
order to enable products or service to fit customers and sell itself.

Thus, marketing's role as a driver of an organization's value chain will be

stressed as value chains are increasingly shaped by consumer expectations and demands.
This essay will clarify how the marketing’s role in Sony to be a value creator in various
ways. In order to illustrate how marketing create value to the firm, it is necessary to
understand the definition of marketing. What is marketing on earth? Marketing is a
managerial function and a set of courses for communicating, creating, managing
customer relationships and delivering value to customers in ways that benefit the
organization and its stakeholders (American Marketing Association),date?. Marketing, by
means of exchanging, results in obtaining the required products and service. Exchanging,
the proceeding steps of value creation, usually will benefit mutually and further the
exchanging of mutual values. The essence of marketing is aimed at creating customers’
value and satisfaction. A precise definition to the studies of marketing as given by Kotler
(2004) is that the profitably contented with the requirement. Moreover, marketing assigns
all those activities which accelerate services or the movement of goods from the producer
to the consumer. In other words, it means those activities connected with distribution,
advertising, promotion, merchandising, product planning, publicity, research and
development, transportation, sales and services or warehousing of goods (Indiainfoline,
2002). Sony is a company with a reputable name and a great trade of brand recognition
worldwide. The company rapidly presented itself to the world as a technological inventor
capable of creating many consumer-friendly first such as the Walkman, the transistor
radio, and the camcorder, although it started a small Japanese telecommunications
company in Tokyo. Based on Southgate (1994), a brand is not a name, graphic device or
logo. It is a part of intangible values in the minds of consumers. A strong brand is
therefore alive, complex, rich and enormously powerful. However, Sony is facing profits
and sales are down or are gradual down, R&D and capital investment cost are arising,
competitors are moving in with copycats, the struggle between VHS and Beta and the
research for a smash hit product such as the Walk-in or the Trinitron. According the
survey of Business Week (2005), Sony, No.28, which declines 16% in brand value in the
2005 ranking. Although the firm is pioneered the Walkman, left Apple to reform portable
MP3 players, as well as digital downloading and organizing of music.

Thus, the R&D group becomes a key element of corporate strength, or weakness, with
the company highly dependent on its ability to deliver significant new technology, when
expected (Webster, 1990). Similarly, Urban and Hauser (1980) indicated that the firm
need a strategy for development. It must learn and understand how consumers perceive
products, what needs exist, what consumer preferences are relative to the needs, and how
consumers choose among products. This essay focuses on deep product strategy as a
value creator to Sony. Marketing acts a central role in translating marketing information
into products and afterward positioning these products in the target market from new
product development process (Song, Montoya-Weiss, & Schmidt, 1997). Also, the
effective development and management of products can be an important factor in
determining whether a company will succeed in gaining business from the major account
market (Turner, 1990).

Sony implemented restructuring plan recently, pointed at putting the struggling consumer
electronics giant back on its feet, but got a doubtful response when the company presents
of its new Walkman type a portable music player. A news from Taipei Times (2005)
described that Sony's content-to-product strategy and the new plan disappointed those
looking for a more radical departure at a company that is struggling with the likes of
Apple, which marries style and high-tech sophistication in its must-have iPod music
player. The company’s plan lacks in details and similar to earlier plans which have not
worked, Nomura Securities analyst Eiichi Katayama told. New products are a necessary
response, if the firm is to retain its marketing effectiveness, to changing customer
preferences and dynamic competition in the marketplace. A stagnant product line is good
evidence that an industrial firm has failed to keep up with advancing technology and the
state-of-the-art in its industry (Webster, 1990). In addition, a source of new product
stimulus is a customer request to produce a specific product that the customer has
designed (Urban & Hauser, 1980).

Sony needs to approach an effective managerial strategy of new product development

that is likely to achieve success, but at the same time minimize risk. According to
Magrath and Higgins (1992), innovation need satisfy consumer needs. These needs may
relate to new product designs with appeal, new product uses, or the innovative
developing of new groups of product users. Moreover, a more sophisticated strategy to
react to competition is the “second but better” strategy. The firm waits until the
competitor’s product is revealed and then not only copies it, but improves on it. The
objective here is to be flexible and efficient so as to produce a product that will be
superior to the competition without incurring the heavy market developmental expense
for the product. Another approach to development is through the notion that someone
must buy a product. The marketing strategy is based on finding consumer needs and then
building a product to fill them (Urban & Hauser, 1980). Similarly, a firm’s new product
strategy is increasingly recognized as a critical part of the total business plan. The key
product strategies are developing highly innovative products, introducing products that
meet customer needs more effectively, and introducing products with unique features for
customers (Cooper, 1983).

Sony flaunted its PSX, the enhanced PlayStation 2 video-game machine. It also works as
analog TV, a DVD recorder, music player and digital photo album. The design of a single
machine that has a little bit of everything seems logical and attractive to customers. Some
analysts argue that audiovisual equipment and the game machine don't necessarily go
together since the life cycles of AV machinery are much shorter, requiring constant
upgrades. Moreover, the product doesn’t match the market, Kazumasa Kubota says,
analyst with Okasan Securities Co. in Tokyo. The PSX may sell in amounts when it first
goes on sale, but it will be hard to keep the sales going (Kageyama, 2003). Many as 90%
of new products may fail in the market because many companies are scrambling to
develop innovative high technology products. Then a definite need for the product exists
in the market which must be determined. In addition, competitive products must be
analyzed to assess by the market and segmented to identify target markets that will obtain
greatest profits from the product and offer competitive advantages (Lucas & Bush, 1984).

Sony made itself into poor positioning and misunderstands of consumer needs. Urban and
Hauser (1980) stated that positioning is the identification of a set of psychological need
attributes and the description of the level of each attribute for a new product. The
companies should pay much attention to the positioning issue as their discuss new
product design. One of the major efforts in successful new product design is to define a
good psychological positioning and a set of physical features to back it up. In order to
avoid products failure, Moon (2005) analyzed companies can change customers mentally
classify their products by positioning these products in unexpected ways. The firms
through reverse, breakaway and stealth positioning are to shift consumers’ thinking in
order to create a profitable place to ply their merchandises. In addition, different
customers are likely to have different needs requiring some adjustment of the product.
This means that the selection of customers, market segmentation strategy, is the key,
long-term strategic choice for the industrial firm (Webster, 1990). Indeed, product
position is strategically important because it can take years to create, it is difficult to
change, and it affects business success and competitive strategy. A product or service
position involves the set of associations with the product. It is created over time, often
from a large assortment of sources such as the product design, the advertising, the store in
which it is bought, and who uses it (Aaker, 1988).

A product does not have novelty to benefit from original new positioning, nor does it
have to be past its prime. The old rule of the product life cycle is by simply challenging
consumers' notions. Thus, from time to time, it makes sense for a company to review its
product portfolio. Such a review can usefully be conducted once or twice per year.
Grouping products according to approximate stage in the product life cycle may be a
useful first step: new products; growth products; mature products; and declining products.
Effective marketing may be successful in retarding the inevitable progress of the product
life cycle and may bring the market back to an earlier stage, such as moving from
maturity back to growth (Webster, 1990). Because of global competition and rapid
technological advances, high technology products such as digital cameras and notebook
computers have short life cycles. The company may upgrade its characteristics over time
for renewing the competitiveness of a product. While products contain a set of features
with some alternatives for each, design involves complex decisions: which features to
upgrade, when to upgrade, and what alternatives should be chosen. The decisions will
help managers in deciding the content and timing of promotions to maximize life cycle
profit. And it merges traditionally made by various operations in the enterprise (product
design, process design engineering, marketing, production planning and supply chain
management) (Damodaran & Wilhelm, 2005).

Today, marketing’s role in the organization has become more and more important. Proper
market strategy, intelligent product definition and execution of without mistakes will
separate winners from losers in a market economy with very little opportunities for error.
Sony is trying to pursue innovation by diversifying its core technologies. But the firm
neglects a customer-need orientation as an organizing principle for new product
development. For example, the new portable walkman is not satisfying consumer
demands. Understanding the needs of the customer is an axiom found in all product
development literature. As the result, companies should evaluate and refine to produce a
product with consumer psychological attributes which indicate a high probability of
success in the market. In addition, the new product marketing program requires careful
definition of market segments. Positioning is a central strategic issue in the marketing of
new products, although positioning is often thought to apply only in a consumer market
context. Sony’s product positioning such as PlayStation 2 doesn’t match the markets. In
order to avoid new products failure, the firms can change consumer’s thinking through
reverse, breakaway and stealth positioning. Without developing and marketing new
products, a firm must struggle to keep profitable growth. Also, a strategic view of the
product portfolio can help to stimulate the development of new products.

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