Promotional Strategies for Group Buying Websites

The group buying trend, is more of a collaborative coupons sold at one place to avoid time wastage and also easier for the customer to provide a catch to place an order for it. The websites focus on providing deep discounts in order to make customers buy in bulk serving both the purpose of seller and buyer. The buyer saves money and avoids the big burn in his hole and seller earn a handsome profit margin of 35-40% , in this the deal of the company being sold saves on advertising cost. These websites use social networking site such as Facebook and Twitter to make the customer familiar of the fact that a deal of such and such company and price is available.

While designing the promotional strategies for international market I suppose the marketer should be well aware of the taste and preference of the local consumer, his convenience and also his buying trend. While going through various articles on “group buying” I understood that preparing a promotional strategy for mature markets the marketer can sit back and relax because marketer separate business development from discounts but when it comes to developing markets the marketer has to plan short term strategy because the markets are dynamic. For eg: couple of Americans will go to have dinner at restaurant even if they don’t get discounts but in country like India, the marketer has to make short term strategy where frugality is in culture itself.

Also, while designing the promotion strategies for international markets the marketer has to scrutinize the most visited websites or websites which are popular among the masses so they can use them for their ads. Marketers can also tie up with search engines so that they can get what they are seeking for. Response!

Also, above I have already mentioned that without social networking sites like twitter n facebook it’s very difficult or one can say next to impossible that group buying could exist. Some other strategies could be more attractive discounts compared to competitors.

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Revisiting the 4 P's

While formulation of a promotional plan, there are certain things that need to be kept in mind.

The most important is revisiting the 4P's of Marketing Communication, which are as follows: -

PRODUCT
The product especially a gadget like mobile changes every 3 months because of its features and the technology that changes every second
 E.g. Changing mobiles phones in the duration of 3 months

PRICE
The pricing is a very important aspect to consider as it decides the brand positioning and thus helps in the  formulation of its promotional plan accordingly.
 e.g. Honda City recently slashed its prices, now the recent change in prices lead to further change in positioning and the focussed target group, which will further lead to change in the promotional plan

PLACE

When we talk about the place, we talk about the framework and if there are any shortcomings in the distribution plan
e.g.- There are 3 Problems identified at 3 different layers of the distribution channel
A) The wholesalers are not motivated, which is leading to shortage in stocks
B) To revamp merchandising as the absence of Point of Sale materials, leads to poor recall when sales have to be made
C) To increase brand recall and brand recognition- Appropriate Communication has to be opted so that customer has a better brand recall and brand recognition

Brand Recall- e.g. - You went to buy a shoe in a multi brand store and you say show me nike air max i.e. Brand recall

Brand Recognition- e.g.- You went to buy some cosmetics and you were confused what to buy, so you asked for lo real and lakme. Then the sales person shows you a product of Garnier, which you didn't ask for. You recognize the product form the Ad you saw yesterday and end up buying it..i.e. Brand Recognition

PROMOTION
So, according to the above listed problems in the distribution channel we suggest some promotional plans: -

Problem1 - Better Margins, Trade Promotion, Foreign Visits for dealers, Facilitation with Awards
Problem 2- Different Point of Purchase and Point of Sale Materials, Use of Bill Boards and In Store Advertising
Problem 3- Advertising, Sales Promotional techniques, In field promotions and Sales People at Point of Sale Display

So, solutions for the promotion help in building the Integrated Communications Plan.

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Advertising Vs Sales Promotion

The basic difference between Advertising and Sales Promotion when we talk in context of Integrated Marketing Communications is as follows: -

Advertising

Has different objectives, which is to create awareness and providing as a medium for recall in the minds of the customer at the point of sale(POS).

The time duration for an advertisement  is generally 20 years

The Appeal created is more emotional,e.g.- Surf Excel- "Dag Ache Hain"

It gives reasons for the customer to buy a product and a service
                             
 Sales Promotion

The only objective is for selling the products

The time duration is generally less than 2 months, but in exceptional case it can run beyond 6 months

The appeal here is more rational, i.e. it tries to justify whatever it is trying to convey

It not only gives the reason for the customer to buy a product or a service but also an incentive for the same, e.g.- Matrix giving away its 5 subject notebook worth Rs 95 on Buy 1 Get 1 offer.

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INTEGRATED MARKETING COMMUNICATIONS.....INTRODUCTION

Integrated Marketing Communication is not a rocket science; it is a simple concept that involves all the promotional tools working together in a harmony to get a unknown brand a famous one. It includes the creative execution and media planning, which demands it to be a success. When we talk about a a loud roar it gets better with a crowd doing it, it goes the same with promotion, with the integration of  360 degree promotional campaign, it will only help in bringing the brand under limelight not under darkness.

The rising Indian population and the demographic shift has created a demand where Integrated marketing Communications to cater to both the mass audience and niche audience.

This is where a seed of marketing pitches in ,which is relationship marketing helping the organization from a slaughter that they are going to witness in the coming years from their competitors and so a defence mechanism, which includes planning and execution is needed

This is a more enhance level of integration that crosses other boundaries where only one phrase exist “what is after this”. It is the mix of horizontal integration, vertical integration, internal and external integration,  which helps making IMC an important lesson for all those marketers who want to make it big for themselves and for their organization.

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BTL THE NEW FACE OF MARKETING COMMUNICATION

BTL( Below The Line Communication) is the intensive penetration strategy used for catering to a specific niche. It is opted by the companies for many reasons but out of them the first and the most important is brand recall via personal engagement. The basic purpose of doing BTL is creating a personalized touch and feel of the products. The customer attention is grabbed for a prolonged time and in the meantime you help them understand the specification about the product and this is how you spread awareness at a minimum cost. BTL plus point is that it is highly measurable. In a radio industry the money spent by them on Street Level Marketing is measured by comparing it with how many cumes have increased (Cumes here refer to the no of listeners who tune in to any particular radio station). BTL is the key to consumer ethnocentrism, it helps in resolving the problem of demographic segmentation.

BTL is the new face of marketing communication for many industries and these are the following examples to support the same: -

BIG FM doing road shows

Pepsi organizing and sponsoring events of various colleges.

MTS sponsoring the whole college fest paying worth 12 lakhs


Brands like Toyota and Ford doing on ground activation for their new models like ETIOS and FIESTA

Make My Trip going for BTL Communication at Select City Walk.

Zapak sponsoring Gaming events, also comes under BTL Communication

This is a research conducted by me to prove that BTL Communication has a superior consumer connect: -

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Is your Marketing Communication Effective?

From the past few decades, ATL Communication has been a blessing in disguise for marketers who wanted their brand to be the odd one out. Its funny how these brands who were once an acknowledged establishment, now are a mere puppet of the numbers game. If your numbers are up you are there in the market and if not , you always have an exit door waiting for you.
Communication sole purpose is awareness and conversions. Communication is not just letting the customer know about the product but also finding if the customer wants your product. Its about what people want and you give it to them.

As, I define those mediums which help us cater the mass audience Mediums are not limited to TV, Radio, Movies, Internet and Outdoor Advertising. This type of communication is good as it helps the customer remember about the product but for only those who see it. Convenience matters and to care of that, customers don’t have to worry, it is the organization who has to figure out how to reach its target group and in what way.

Why do you think Surf Excel a detergent brand didn’t just do a simple promo of a detergent being effective, rather opted for an emotional ad where a child jumps into dirt just to make someone happy. It is not some brilliant concept that they have come up with. It is plain perception marketing, you scan your audience for what they want and how they will act to the environment around them and you strategize accordingly.

In today’s scenario, in order to understand the customer, personal engagement is very important. You need to understand the market vibe, get down on the floor and act accordingly. You have to take yourself to the customer, if he is not coming to you. The one who does that has a better recall for his brand at a low cost as compared to a person who spend 1 crore worth money on advertising and is still not able to achieve results.

These are few examples to support the same: -

Most of the educational institutes like career forum, career launcher, Time and PT are holding informative workshops and free tests for students which give a direct interaction of these institutes with the target customer and hence a suitable platform to sell themselves.

Ring tones and music videos on cell phones are helping the entertainment industry to promote for a music video or a movie for dirt-cheap rate as compared to media promotion.

Various companies sponsor sport events to promote their brand, but nowadays media companies like Hindustan Times are holding weekly events through out the country in which companies can put up their stalls, display banners and posters and arrange for some fun activities. These events give the companies a platform at very low price to promote their brand and increase visibility among target consumer. These companies also give discount coupons to winners in the games, which in turn boost the sales of the products and ensure that first time users try these products as well.

Pepsi organized an inter school cricket event for 425 schools across 14 cities which did wonders for the company by promoting the brand amongst the right target customer for almost no cost.
Most of the pharmacy companies do BTL promotion by getting shelf space through doctors to display their products or by giving away free calcium tablets again through doctors, knowing that for a patient a personal advise from a doctor would hold more value as compared to a commercial advertisement.

Another interesting BTL promotion was by NIKE. An athlete dressed up in Nike sportswear could be seen jogging on an elevated treadmill for the whole day on National Highway 8, Delhi.

Tata Shaktee is a strong rural brand from Tata Steel, for roofing products, has BTL activity in the form of Haat participation. By having a stall at Haat, Tata Shaktee engages potential consumers in interactive games around differentiating attributes of the product. Also, discount coupons are given for interested buyers, with details of nearby retailers.

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Communicating and Promoting the Right Way!!

Imagine this.. You’re hungry and have two restaurants to choose from. One of them looks chic and classy while the other one looks decrepit and almost ready to bite the dust with the next gust of wind. Which restaurant do you think you’ll go to?

This part of marketing is called communication. It could be planned or unplanned. Everything from the architecture of a building to the work atmosphere at a company communicates with a prospect client. Companies need to be wary of what messages are received by its audience in order to create a lasting impression.

Different from Communication is the concept of promotion, where the marketers make an effort to make their product known. Using different mediums like signboards, advertisements, print media and what not. Promotion is a very important skill and needs to be understood well in order for it to be useful. Companies often end up spending more money promoting the product than creating it. Companies use sales promotion and even celebrities to attract attention.

Companies may use the above mentioned techniques but they need to make sure what would create a lasting impression. Customers today are so overwhelmed by all the information about various products that they don’t have time to read all. They end up throwing the pamphlets in the bin without even reading. All unread mails about different offerings are simply sent to the trash folder. The excess of information has given rise to a situation where it has become almost impossible to get the customer’s attention.

Because of the above mentioned reasons, marketers need to spend time studying how people in their segment allocate their attention time. Marketers may use different strategies to draw attention like shocking stories, free offers and various other methods, but still the question of effectiveness remains. It is one thing to draw attention, but another to make people buy your product. Promotion thus should target not on how to get the attention, but on how to make people buy products!!

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