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A
Grand Project
On
CLASS ADVERTISING
In partial fulfillment of the requirement of two years full time
Masters of Business Administration (MBA) Programme (2008-2010)
Of Gujarat University, Ahmedabad
UNDER GUIDANCE OF: PREPARED BY: Juhi Shah Chetan Pandya Professor ROLL NO. 8066, MBA (2008-2010)
1
N.R INSTITUTE OF BUSINESS MANAGEMENTGLS CAMPUS, AHMEDABAD
GUJARAT UNIVERSITY
CERTIFICATE
This is to certify that Mr. CHETAN PANDYA , ROLL NO : 8066, student of
NAVNITLAL RANCHODLAL INSTITUTE OF BUSINESS MANAGEMENT (GLS-
MBA) has successfully completed his grand project on “CLASS ADVERTISING ” in
partial fulfilment of the MBA program of GUJARAT UNIVERSITY. This is his original
work and has not been submitted elsewhere.
__________________ __________________
Dr.Hitesh Ruparel Juhi Shah (Director) Professor and Project guide
2
PREFACE
As a part of the course curriculum, the MBA students are required to prepare a grand
project in their final semester. The objective behind the preparation of this report is to relate
the Managerial concepts and theories taught in the classroom to the practical application, to
develop the presentation skills and to learn how to make effective reports.
The topic of my project was “CLASS ADVERTISING”. Here I studied the exposure of
different socio economic classes to various media.
This report is entirely prepared for the academic purpose and in spite of my best efforts
there may be errors for which I take the responsibility.
GLS – NRIBM CHETAN PANDYA
Ahmedabad.
MBA (2008-10)
3
ACKNOWLEDGEMENT
In the earnest attempt to prepare this report, Prof. Juhi Shah has played a pivotal role and
has provided constant motivation as a guide. I am truly obliged and indebted to her for the
time and focus she provided.
Further, I would like to extend my acknowledgement to Dr. Hitesh Ruparel for providing
the environment and infrastructure needed to accomplish this task. As a Director in Charge
of the institute, he has thoroughly helped and counseled at each step of this process.
Above all I am also very thankful to all people who directly or indirectly have proved to be
beneficial in completing the project.
Last but not the least, I am grateful to our institute, NR Institute of Business Management
and Gujarat Law Society including all their members and participants for providing such
excellent infrastructure equipped with ultra modern facilities which served as a great source
of convenience and information.
4
CONTENTSPART I
Acknowlegement………………………………………………………..i
Executive Summary…………………………………………………….ii
The Indian Media & Entertainment Industry
An Overview……………………………………………………….1
Categories and Growth………………………………………….4
Advertising Industry
An Overview………………………………………………………10
As a part of IE&M…………………………………………….....12
New Trends……………………………………………………....16
Scope of Ad Industry in India………………………………....17
PART II
5
Mass V/S Class Advertising…………………………………………..18
Shift from Mass to Class………………………………………………23
Class Advertising: Meaning…………………………………………..26
SEC: A debate…………………………………………………………...34
SEC: Understanding Class
Demographics……………………………………..………39
Media………………………………………………………..44
Understanding target and media selection…………..48
SEC: Media Preference
Research Study……………………………………………………
Findings……………………………………………………………..
PART III
Conclusion………………………………………………………..
Bibliography……………………………………………………...
Webography………………………………………………………
Glossary……………………………………………………………
Annexure
Questionnaire……………………………………………..
6
EXECUTIVE SUMMARYWith a view to cater to the need of the advertiser and know the insights of the
advertising industry, the project report covers one of the main aspects that has
been one of the much talked about area of consumer segmentation: Socio-
Economic Classification.
The project report covers the overview of Indian Entertainment & Media industry. It
is one of the fastest growing sectors of the Indian Economy. Further, the Indian
advertising industry as a part of IE&M industry forms 38%, estimated at roughly
around Rs. 17000 crores at present.
With the advent of many media reaching to the bottom of the pyramid, it is very
essential for an advertiser to choose the right media that reaches right people at
right time. However it is not an easy thing to predict as to what would be the best
medium. For this purpose, a new concept was developed The SEC classification,
which was created in 1988, ratified by Market Research Society of India (MRSI)
and is used by most media researchers and brand managers to understand the
Indian consuming class
SEC, the classification of Indian consumers, is based on two parameters:
Occupation and Education (Urban and Rural). For years, marketers followed mass
advertising but then with the increasing competition and rapid media development
and consumer shift in preference, there is a shift from mass advertising to class
advertising. Despite a debate over the reliability of the SEC, it continues to be the
top rated choice of the advertiser for the classification of the Indian consumer
market.
Class advertising requires lot of insights into the area to know the preference of the
person belonging to a particular class. For one such purpose, the project report
shows a survey conducted on the basis of SEC showing the overall media selection
or the inclination of the mass of the class and thereby making it easier for the
advertiser to select the media for advertising. Also the comparative preference
model, that calculates the overall preference of the people based on four
7
parameters Reliability, Effectiveness, Penetration and Preference of class from A1
to E2 (Urban) helps the advertiser to select the medium to advertise based on his
target class and also with the Inter-class and Intra-class media comparision with
the weighted score.
The project is concluded with the brief strategies/ suggestions and the survey
reports that would be of immense help to identify and choose the right media for the
advertiser based on SEC.
8
Research Methodology
OBJECTIVE: To study and provide an insight into advertising with respect to the media
preference based on Socio-Economic Classification. To highlight the shift in focus from mass advertising to class advertising. To arrive at the commonest medium preferred by each SE class by
application of research techniques like measurement and scaling, data interpretation, evaluation, strategy formulation for the advertisers to choose the right medium to attract specific class customers based on my primary survey.
To help advertisers choose the right medium to attract specific class customers based on the primary survey. By providing strategic solution to tap the untapped potential markets
SCOPE:
The project will cover an overview of Indian entertainment and media industry and detailed study about Indian advertising industry. The main area of focus will be on socio-economic classification (SEC) i.e, Urban and rural, of the consumers. A primary survey will be done by collecting primary information thorough questionnaire. Further data analysis and data presentation would be done in order to arrive at the common preference of SEC class for particular advertising media out of Print, TV, Radio, Out of Home (OOH), internet based on weighted average preference model.
LIMITATIONS: Time limit Cost constraint Inability of covering all the aspects related to the Indian Media and
Entertainment sector as well as advertising industry due to its wide scope
PROJECT DETAILS:
AREA OF STUDY
Indian Entertainment Industry: Origin and History Growth Drivers
9
Indian Advertising Industry: Introduction Size of the industry Shift of focus from Mass to Class SEC: Demographic study SEC: Media preference through research study Research Findings Strategic Solution
RESEARCH METHODOLOGY
RESEARCH DESIGN: Exploratory ResearchRESEARCH DATA SOURCE: Primary Source: Questionnaires
Secondary Source: Internet, publication, journals, newspapers, magazines, Business Review, Periodicals, etc.
RESEARCH INSTRUMENT: QuestionnaireSAMPLE METHOD: Stratified Random Sampling, Judgment sampling, Convenience samplingSAMPLE SIZE: 30 for each class (8 classes) = 240
10
An overview
Changing consumption patterns, rising aspiration levels and increase in the number
of middle-income and upper-income households has led to growth in non-
discretionary sectors like retail, telecom, and hotels among other sectors. Media
sector is no exception to the trend.
The Indian media and entertainment sector is one of the fastest growing sectors of
the country and is expected to grow at an annual rate of 18% till the year 2011. It
has seen many changes in terms of economic, demographic, technological,
liberalization and others in the past decade which has led to the higher chances of
growth to the industry.
The Economic influence: The Indian Entertainment and Media (E&M) industry
has out-performed the Indian economy and is one of the fastest growing sectors in
India. The E&M industry generally tends to grow faster when the economy is
expanding. The Indian economy has been growing at a fast clip over the last few
years, and the income levels too have been experiencing a high growth rate. The
increasing rate of urbanization, the penetration of television and radio industry in
the rural areas with the help of the technology and the rising levels of incomes of
the people in India has facilitated the growth rate of Media and Entertainment
industry in India.
Over the past few years, India has registered the fastest growth among major
democracies. It represents the fourth largest economy in terms of ''purchasing
power parity''. Thus, E&M industry is also expected to significantly benefit from this
fast economic growth
The Demographic Influence: Over the years, spending power has steadily
increased in India. Lifestyle changes brought about by changes in economic activity
are also spurring growth of the Indian E&M industry. In urban areas of India, the
consumer mindset is changing due to increased exposure to global influences via
media, and other interactions leading to higher aspirations. The Indian rural market
11
with its vast size of nearly three times of urban India, also offers a huge opportunity
that has remained largely untapped due to reasons of accessibility and affordability.
Liberalizing Foreign Investment: Today India has probably one of the most
liberal investment regimes amongst the emerging economies with a conducive FDI
environment. The E&M industry has significantly benefited from this liberal regime.
In 2005, FDI was permitted in two important sectors - print media and radio. Films,
television and other segments are already open to foreign investment. In the print
media segment, 100% FDI is now allowed for non-news publications and 26% FDI
is allowed for news publications. Printings of facsimile editions of foreign journals
are now also allowed in India. This policy is helping foreign journals save on the
cost of distribution while servicing the Indian market audiences more effectively.
The FM radio sector too was opened for foreign investment with 20% FDI being
allowed.
The Technological Influence: India is witnessing a revolution in this sector with
the emergence of new technologies. The IEM has moved from the growth phase to
the inflection phase. This growth is led by better technologies, higher quality
content, higher penetration and suitable regulations. Exciting new developments in
the technologies used in Media and Entertainment industry are taking place.
The change is already being witnessed from AM radio to FM radio, single screen
theatres to multiplexes, and basic cable analog to broadband internet. Going
forward, DTH, IP-TV, mobile marketing, gaming zones, and interactive television
are going to hit the markets thereby changing the media scenario.
Animations, multiplexes, new distribution channels, the use of Internet and
personalized communication with the help of the same, are redefining the media
and entertainment industry. All these factors will favour the growth of Media and
Entertainment industry in India. Many companies are taking initiatives to set up
their business all over with the help of such technology. One such company is city
based Net Hot Zone Media Pvt. Limited which has come up with first of its kind
concept of personalized communication with the customers providing them free
internet service while offering part of screen space on computer to the advertisers
by setting up the kiosks at various places in the city.
12
Thus given the high rate of economic growth and technological developments,
Indian Media and Entertainment industry is poised to register a tremendous growth
in the coming years.
Low Media Penetration in Lower SECs: Though media penetration is poor in
lower socio-economic classes, the absolute numbers are much higher for these
classes. Hence, efforts to increase the penetration even slightly in these lower
socio-economic classes are likely to deliver much higher results, simply due to the
higher base.
Low Ad Spends: Indian advertising spends 0.34% of GDP, which is very low as
compared to other developed and developing countries. Advertising revenues are
vital for the growth of this industry. While today the low ad spends may seem like a
challenge before the E&M industry, it also throws open immense potential for
growth. This potential can be estimated by the fact that even if India was to reach
the global average, advertising revenues would at least double the current
revenues.
13
Categories and Growth
The Indian
Entertainment
and Media
Industry has
recorded a
growth of 17
per cent in 2007, over 2006. In the last four years
(2004-2007), the industry recorded a cumulative
growth of 18% on an overall basis. However
though Indian Entertainment and Media (IEM) is
one of the fastest growing sectors in the
economy, it is just 0.7% of the global US$ 1.4
trillion media industry
The IEM is divided into different segment like Television, print, films, radio, music
and internet. Out of home advertising (OOH) and live entertainment are too gaining
importance.
As per PwC, India will be one of the key drivers in pushing the global entertainment
and media industry. As mentioned above, it is expected to grow at a CAGR of 18%
till 2011 to touch Rs 1 trillion from Rs 436 b in 2006.
The expected growth for the year 2008-2011 can be known from the following chart:
14
The IE&M Industry is expected to grow at a CAGR of 18% till 2011 to touch Rs 1 trillion from Rs 436 b in 2006.
Given below is the breakup of the revenues among the various segments and the
expected growth rate till 2011. Television and print would continue to remain the
largest segments. Internet, radio and OOH would also witness high growth rates.
However, Internet penetration would take time to mature.
Present and projected growth in E&M industry* (in Rs crore)
2006 2007 2008 2009 2010 2011 CAGR
Television 19,120 21,900 26,600 33,100 43,100 51,900 22%
Print Media 12,790 14,400 16,200 18,200 20,600 23,200 13%
Film Entertainment 8,450 9,600 11,200 12,600 14,600 17,500 16%
Radio 500 600 800 1,100 1,400 1,700 28%
Music 720 740 750 760 800 870 4%
OHH Advertising 1,000 1,200 1,400 1,600 1,900 2,150 17%
Live Entertainment 900 1,100 1,300 1,600 1,800 1,900 16%
Internet 160 270 420 600 820 950 43.00%
Total* 43,640 49810 58,670 69,560 8,5020 100,170 18%
15
Source: Industry estimates & PwC analysis
*Note: The figures taken above include only the legitimate revenues in each segment. Revenues from the Animation and Gaming segments have not been included in the industry size as these are traditionally included in the Indian IT and Software Revenues
Television Industry
Amongst the segments of the industry, the television industry will continue to
contribute the largest share. Subscription revenues are projected to be the key
growth driver and will increase both from the number of pay TV homes as well as
increased subscription rates. New distribution platforms like DTH and IPTV will only
increase the subscriber base and push up subscription revenues.
Print Media Industry
The print media industry, comprising of newspaper and magazine publishing, is
projected to grow at 13% (CAGR) from year 2006-2011. A booming Indian
economy, growing need for content and government initiatives that have opened up
the sector to foreign investment are driving growth in print media. With the literate
population on the rise, more people in rural and urban areas are reading
newspapers and magazines today. Also, there is more interest in India amongst the
global investor community. This leads to the demand for more Indian content from
India.
Film Entertainment
The Indian film entertainment industry is projected to grow from the present size of
Rs 9600 crores to Rs. 17500 crores. Advancements in technology are helping the
Indian film industry in all the spheres-film production, film exhibition and marketing.
The industry is getting increasingly corporative.
Radio
The radio industry, fuelled by the positive FM-II Radio Policy, is projected to grow
with the highest CAGR till the year 2011. In 2005, the government opened up the
16
sector to foreign investment along with migration to a revenue-share scheme.
These factors along with privatization of a large number of frequencies as part of
the FM II Radio Policy will drive growth. New concepts like satellite radio, visual
radio and community radio have also begun to hit the market.
Music
While physical sales in the music industry continue to be hampered by piracy and
falling prices, digital music has witnessed a surge that will propel this industry in the
next five years. The total music industry is currently estimated to be worth around
Rs 740 crore and is expected to grow at a CAGR of 4% in the next five years.
Out Of Home
Globally, outdoor advertising is very popular as corporations abroad have
recognized the outdoor media as a very popular medium of advertising. But in India
in spite of OOH being very effective and very economical in comparison to
newspapers and television it has not gained momentum as compared to other
segments. However, OOH advertising is expected to be the fourth largest segment
of IEM industry by the year 2011.
Live entertainment
Live entertainment is a huge source of revenue for the global Media and
Entertainment industry. Live entertainment - sometimes also called event
management- is growing at a fast and steady rate. The number of corporate
awards, television, films, and sports events are increasing rapidly, helping the
sector grow at a fast rate. The current live entertainment segment of the Media and
Entertainment industry comprises a small number of large event management
companies and a large number of smaller companies.
Internet
17
Internet advertising spending is set to grow several folds, especially in India’s
entertainment sector. While internet advertising comprises nearly 0.5% of
advertising at present, it is expected to be 4% by the year 2010. Until such time, the
projected yearly growth rate of the ad industry is to stabilize at 11%. The growth of
online ad industry is estimated to shoot up to 43% by the year 2011. However,
even though India is ranked eighth in the world in terms of number of internet
users, the country is not ranked amongst the top 10 countries in terms of average
monthly hours online per unique visitor which may hamper the growth of internet
advertising as compared to others media types.
Others
Amongst the other segments, the animation and gaming industry is expected to
show the maximum growth, albeit from a small base. The animation and gaming
industry is projected to grow from the present size of Rs 11 b to Rs 29 b by 2011,
implying a 22% cumulative annual growth over the next five years.
The following is the comparative chart of the different sectors’ percentage revenue
in the Indian Entertainment and the Media industry in the year 2007 and that of
expected in 2011.
18
Thus, the estimate says that TV sector will continue growing while the share of print
and film entertainment will increase in absolute numbers but at a decreasing rate
while the rest of the sectors will have more or less the same share.
Thus The Indian entertainment and media industry today has everything going for it
- be it regulations that allow foreign investment, the impetus from the economy, the
digital lifestyle and spending habits of the consumers and the opportunities thrown
open by the advancements in technology. All it has to do is to cash in on the growth
potential and the opportunities. The government, on its part, needs to play a more
active role in sorting out policy-related impediments to growth. The industry needs
to fight all roadblocks- such as piracy- in a concerted manner, while churning out
high-quality, world class end products. The entertainment and media industry has
all that it takes to be a star performer of the Indian economy.
ADVERTISING INDUSTRY
The concept of advertising existed long before we had a term for it. Advertising is
defined as the art of positioning and creating brands and persuading
consumers to buy them through messages in mass media or personalized
media that is gaining much attention these days.
19
It is also the means of informing as well as influencing the general public to buy
products or services through visual or oral messages. A product or service is
advertised to create awareness in the minds of potential buyers. Some of the
commonly used media for advertising are T.V., radio, websites, newspapers,
magazines, bill-boards, hoardings etc. As a result of economic liberalization and the
changing social trends advertising industry has shown rapid growth in the last
decade.
Advertising is one of the aspects of mass communication. Advertising is actually
brand-building through effective communication and is essentially a service
industry. It helps to create demand, promote marketing system and boost
economic growth. Thus advertising forms the basis of marketing.
Advertising plays a significant role in today's highly competitive world. A career in
advertisement is quite glamorous and at the same time challenging with more and
more agencies opening up every day. Whether its brands, companies, personalities
or even voluntary or religious organizations, all of them use some form of
advertising in order to be able to communicate with the target audience. The salary
structure in advertising is quite high and if you have the knack for it one can reach
the top. It is an ideal profession for a creative individual who can handle work-
pressure.
Today, new areas are emerging within advertising like event management, image
management, internet marketing etc. Event management is wherein events are
marketed; Image management is wherein a particular profile of an individual or an
organization is projected. Internet marketing has also brought about a lot of
changes in advertising as Internet means that one is catering to a select group of
audience rather than a mass audience.
Overview of Advertising Industry in India
The structure of the advertising industry in Asia Pacific has been affected by
globalization and international alignments creating a smaller number of very large
20
agencies and the growth of independent major media buying houses. Very
sophisticated software optimization and planning systems are now integral to the
industry, enabling agencies to offer a unique positioning in the marketplace to
attract new business.
Global companies are discovering the appeal of marketing their products in India.
With a population of more than one billion, and a middle class that's larger than the
total population of the United States, there's definitely money to be made.
Television, movie, video and radio jingles, newspaper and magazine advertising
and neon-lit billboards in the cities are fueling a revolution in consumer products
and spawning new styles of living - changing food habits, fashions and home
décor. This new advertising is pleasing the growing middle class, one of the largest
target populations in the world, but it is drawing criticism from Indians concerned
that it could sharpen social tensions in a country with so many poor people.
Local retailers in apparel, food, watches and jewelry have all increased their
average ad spending by almost 50% in the past two years. Coupled with many
other local players big retailing brands are spending to the tune of Rs 12,000 crores
annually on advertising and promotional activities. This figure, according to industry
estimates, was less than Rs 400 crores about 2-3 years ago which means the
growth has been a whopping 40%. The local firms are using all the available
advertising tools from electronic to print, outdoor advertising and even models. The
advertising and promotional spending by local brands is substantial during the
festival season and almost 70% of the spending is done between Septembers to
January. The advertising industry in India is growing at an average rate of 10-12%
per annum. Over 80% of the business is from Mumbai and Delhi followed by
Bangalore and Chennai from the rest of the other major cities in the country.
A once-flagging advertising industry is booming in India. It has become fiercely
competitive and one of the country's fastest-growing economic sectors. But the
boom in advertising has touched off a debate on whether the industry has
developed too quickly without preparing consumers adequately.
21
Advertising: As a part of Indian entertainment and media
industry.
The advertising industry is one the most important part of the entire Indian
Entertainment and Media industry. The advertising industry contributed a share of
38 percent in the overall IE&M industry revenue of 2007, up from 37 percent in
2006. The advertising industry itself recorded a growth of 22 percent over the
previous year contributing an estimated Rs 19,600 crore in 2007 as compared with
Rs 16,100 crore in 2006. In the last four years, the advertising industry recorded a
cumulative growth of 20 percent on an overall basis.
22
On the basis of the estimation made by various agencies around the world, the
advertisement industry in India is estimated to reach approximately Rs. 36371
crores by the year 2010, the major chunk of which will be contributed by the print
media of nearly 50%. the reason of that could be the literacy levels rising to 551
million people in India. And more people in rural and urban areas are reading
newspapers and magazines today. Print media is also the favourite segment for
global investors with maximum foreign investment in this segment. The print media
industry still has the potential to grow as 236 million literate people in India are still
not tapped by any publication.
At present, the print media is the highest contributor to the advertisement revenue
followed by television and outdoor advertising respectively. In spite of the increase
in the global internet usage, the total number of people using internet in our country
is far less than other countries. Thus the present share of internet media in
advertising is nearly 0.5-1% which is estimated to be 4% by the year 2011.
The following chart shows the figures of the ad spend from the year 2004-2007 and
the estimated ad spend for the year 2008 against 2010.1
23
TOTAL AD SPEND
010002000300040005000
6000700080009000
10000
2004 2005 2006 2007
YEAR
AD
SP
EN
D(
Rs.
Cro
res)
PRINT TV 00H RADIO INTERNET CINEMA
YEAR
MEDIA
PRINT TV OOH RADIO INTERNET CINEMA TOTAL
2004 5464 4872 847 220 58 139 11600
2005 6323 5412 897 317 106 145 13200
2006 6946 6200 945 133 155 131 14510
2007 8591 6766 391 215 215 194 16372
Thus for that past 5 years, print media has been the largest contributor to the ad
industry followed by TV. However with the emergence of various media like radio
and internet which is gaining much attention these days are expected to rise at a
very high rate taking up the share of print and TV. In spite of all these, internet as a
media and advertising is the fastest growing and is expected to have nearly 4- 5%
ad spend share by the year 2010.
Ad market share percentage of various media year 2008 and 2010
24
2008
PRINT47%
TV40%
OOH7%
RADIO3%
CINEMA1%
INTERNET2%
2010
PRINT46%
TV36%
RADIO5%
OOH8%
CINEMA1% INTERNET
4%
Advertising Market Stats/Projections: YEAR 2008
The overall advertising and media industry is expected to close at Rs 21,314
crore in revenues in 2008, riding a 20 per cent growth rate
25
Television advertising market is projected at Rs 8,674 crore in 2008
The print industry stands at nearly Rs 10,000 crore.
The cinema medium will corner around 0.7 per cent of the total advertising
budget in 2008.
Outdoor media industry will grow at 14 per cent to touch Rs 1,454 crore,
Radio is likely to record a 40 per cent growth in 2008 to touch Rs 672 crore
Internet advertising will constitute only 1.7 per cent of the overall advertising
spends in 2008, up from the current 1.4 per cent.
The decline in share of print and TV is not only because of the upcoming media but
also because the market itself is expanding.
New trends in ad industry
26
Ad industry is one of the fastest growing sectors in the country. With the
development of the economy the development in the industry has also gained
momentum.
It is gaining momentum as a source of information and stream of revenue. All the
recent developments have helped in opening new doors for the development in the
industry. For the past so many years; the ad industry had been concentrating on
mass media. Increasingly, other media are overtaking television and other
traditional media because of a shift towards consumer's change in perception.
Thus, it has become necessary for the advertisers to constantly find newer ideas to
attract the attention of the consumers.
The advertisers are now opting for personalized communication than mass
communication. It has become extremely necessary for the advertisers to
understand the needs of the customers on the individual basis. Thus the shift that is
seen in the Indian ad industry is from mass advertising to class advertising.
The latest buzz in the industry is of online marketing. Mass media like newspapers,
magazines, radio and television are no doubt hugely effective media for commercial
advertisements, but internet is completely different from them in many respects in
terms of achieving the objective of an ad. According to statistics, online ad spend
by the year 2010 is expected to grow at the rate of 43%.
Within online advertising there are many options available to the advertiser. Among
that e-mail marketing tops since it is also a good option for personalized
communication which is preferred by most of the advertisers nowadays. Also, blogs
is an emerging way of communicating to the people.
Another upcoming phenomenon is mobile marketing. With the increase in number
of people having the cell phone especially India, which stands second in the
highest number of mobile users, mobile marketing is gaining attention of many
advertisers.
27
One type of mobile ad is based on SMS (Short Message Service) text messages.
The benefit of SMS text messages is people can respond where they are, right
now, stuck in traffic, sitting on the metro.
A new form of advertising that is growing rapidly is Social network advertising. It is
online advertising with a focus on social networking sites. This is a relatively
immature market, but it has shown a lot of promises as advertisers are able to take
advantage of the demographic information the user has provided to the social
networking site.
Scope of Advertising Industry in India
The advertising industry in India has several competitive advantages:
India has a rich pool of strategic planning, creative and media services
personnel: Indeed, Indian advertising industry has been exporting senior-
level talent to many countries, particularly to the Gulf, South-East Asia,
China, the UK and the US. Indian talent is recognized and respected in
global agency networks.
No other country has access to so many trained management graduates
who can provide strategic inputs for brand and media planning.
Indians are multicultural: we learn at least two languages and that gives us
a head start in understanding cultural diversity.
Most of the top 20 agencies in India have a global partner or owner,
which should provide an immediate link to global markets.
Our production standards in TV and print have improved: With a vibrant
animation software industry, we have access to this area of TV
production.
India's advanced IT capabilities can be used to develop Web-based
communication packages for global clients.
28
MASS V/S CLASS ADVERTISING
What is mass
To understand what is mass marketing/advertising, it is important to know what
exactly mass refers to. From the viewpoint of marketing, mass is the group of
consumers who occupy the overwhelming mass of a bell curve for common
household products, i.e. they could be tagged as being "average". Yet, this group
consists of such a wide variety of people; their desires towards a certain product
may be totally different from each other. Often competition to supply the mass
market is fierce, but relatively easy to enter because of the large amount of
consumer pool available.
Mass marketing/advertising
Mass advertising is one of the most widely used traditional methods in advertising.
Mass advertising that refers to the approach to advertising that attempts to reach
every consumer, rather than targeting a particular market segment.
It is a type of marketing (or attempting to sell through persuasion) of a product to a
wide audience. The idea is to broadcast a message that will reach the largest
number of people possible. Traditionally mass marketing has focused on radio,
television and newspapers as the medium used to reach this broad audience. By
reaching the largest audience possible exposure to the product is maximized. In
theory this would directly correlate with a larger number of sales or buy in to the
product.
Mass market advertising is usually more expensive than direct marketing, because
they are priced according to the number of consumers who will be reached, and
must generate a larger return in order to justify the expense.
The trend of mass media has seen many ups and downs. These trends are due to
corresponding upswings in mass media, the parent of mass marketing. For most of
the twentieth century, major consumer-products companies held fast to mass
marketing- mass producing, mass distributing and mass promoting about the same
29
product in about the same way to all consumers. Mass marketing creates the
largest potential market, which leads to the lowest costs in terms of long term
investment.
How mass media markets?
The mass media are capable of facilitating short-term, intermediate-term, and long-
term effects on audiences. Short-term objectives include exposing audiences to
different concepts; creating awareness and knowledge (e.g. right to information);
altering outdated or incorrect knowledge (AIDS campaign, Coke and Pepsi for
clearing doubts in the pesticides case); and enhancing audience recall of particular
advertisements(e.g. Fevicol, Raymond’s) or public service announcements (PSAs),
promotions(Dominos Pizza), or program names. Intermediate-term objectives
include all of the above, as well as changes in attitudes, behaviours, and
perceptions of social norms. Finally, long-term objectives incorporate all of the
aforementioned tasks, in addition to focused restructuring of perceived social
norms, and maintenance of behavior change. Evidence of achieving these three
tiers of objectives is useful in evaluating the effectiveness of mass media.
Types of mass media
Television
Radio
OOH
Internet
Television is a powerful medium for appealing to mass audiences—it reaches
people regardless of age, sex, income, or educational level. In addition, television
offers sight and sound, and it makes dramatic and lifelike representations of people
and products. Television ads have a different impact of it on the people’s mind is
most remembered. Call it the power of television or power of sound and image
together, television has become one of the most preferred choices to attract the
30
masses. Also the penetration and the reach of television has increased incredibly
that it is beneficial for the companies to advertise on television to gain benefit over
a long period of time in spite of it being expensive. Lots of ads targeting masses are
seen more on television than any other media. E.g. soaps, shampoos, water
purifiers, automobiles, etc.
Radio. Radio also reaches mass and diverse audiences. The specialization of
radio stations by listener age, taste, and even gender permits more selectivity in
reaching audience segments. Many radio stations have come up in the past 5
years and it’s still increasing. In Ahmedabad itself there are five radio stations and
since placement and production costs are less for radio than for TV, radio is able to
convey messages in greater detail. Thus, radio is sometimes considered to be
more efficient. The main benefit for the same can be that it is the best means if the
target is local. Radio Mirchi, My FM, Red FM, Radio City and many others have
their stations in many other cities. Thus, it can target mass audience on local level.
However radio requires somewhat greater audience involvement than television,
creating the need for more mental imagery. Because of this, radio can reinforce
complementary messages portrayed in parallel fashion on TV.
Print Newspapers are available in daily and weekly formats, and local, regional,
and national publications exist. In addition, there are numerous special audience
newspapers (e.g., various ethnic groups, women, Geography – specific). National
dailies in India have highest penetration amongst all media of advertising.
Classifieds in that is the commonest form of advertisements. However the biggest
disadvantage is that there are chances of it being overlooked.
Among other print media, magazines are also preferred by the advertisers
especially the mass is divided.
Other Print Media Pamphlets, brochures, and posters constitute other print media
used to disseminate health messages. These print media were developed with the
assistance of target audiences, and few contained varied messages, were culturally
tailored, or employed readability and face validity techniques. The extent to which
persons read, re-read, and keep these devices—or circulate them to other readers
—is not well evaluated. Thus, their permanence is unknown.
31
Outdoor media. Outdoor media include billboards and signs, placards inside and
outside of commercial transportation modes, flying billboards (e.g., signs in tow of
airplanes), blimps, and skywriting. Commercial advertisers such as Rado, Rolex,
Pepsi, Vodafone and Kingfisher all make extensive use of their logo-bearing blimps
around sports stadiums especially any cricket match in India. For persons who
regularly pass by billboards or use public transportation, these media may provide
repeated exposure to messages. Pro-health messages displayed on urban public
transportation may suffer, however, from the image problems that afflict urban
buses and subways. In addition, the effectiveness of such postings wears out
quickly as audiences grow tired of their sameness.
Internet The advent of the World Wide Web and the massive increase in Internet
users offers enormous opportunities and challenges. The Internet places users in
firmer autonomous control of which messages are accessed and when they are
accessed. It is possible to put virtually anything on-line and disseminate it to any
location having Internet access, but the user has little control over quality and
accuracy. Internet search engines can direct users to tens of thousands of web
sites after the user's introduction of one or more keywords. But unlike TV or radio,
which are available in nearly all households; Internet access requires some
technical skill, as well as the resources to purchase hardware and Internet
subscription services. The most important benefit is that It can attract masses all
over the world unlike TV and Radio. Also internet is such a medium which can be
termed as a personalized media too.
32
What can be marketed on mass basis?
A mass market strategy is effective for products that appeal to a broad cross-
section of consumers and used to effect attitude change to as wide an audience as
possible like aspirin or orange juice. It is not appropriate for products with limited
appeal like toothpaste. Toothpaste isn't made especially for one consumer and it is
sold in huge quantities. A company or individual who manufactures toothpaste
wishes to get more people to buy their particular brand over another. The goal is
when a consumer has the option to select a tube of toothpaste that the consumer
would remember the product which was marketed. Mass marketing is the opposite
of niche marketing, where a product is made especially for one person or a group
of persons.
Other products of mass marketing are furniture, artwork, automobiles, residential
communities, fizzy drinks and personal computers. Typically, things which are
perceived to be necessary/essential to the consumer are subject to mass
marketing.
However, even in the products which were earlier thought of being marketed on the
mass basis are nowadays marketed on the basis of customization. Like furniture is
now made as per the demand of the customer. Or the best example can be that of
personal computer. Dell, an American company, sells its computer as per the
requirements of the customer. Thus everywhere there is shift from mass advertising
to class advertising.
33
SHIFT FROM MASS TO CLASS
The Evolution from Mass Marketing
The successes of mass marketers led to the appearance of an alternate approach
to marketing. Potential competitors wanting a share of the large market had two
options. One was to replicate the organization, promotion, and distribution systems
of the company that had created the mass market. The other was to go after a part
of the market that had unique needs by developing products specifically for them.
For nearly all of the challengers, building an operation to parallel that of an
entrenched industry giant was not profitable or realistic. As a result, most of them
gravitated to the more attractive market-segmentation approach. General Motors, in
the US used market segmentation as early as the 1920s when it produced different
models for different groups of customers to compete with Ford. Pepsi made a
series of attempts, beginning in the 1990s, to crack into Coca-Cola's market share
through changes in product and targeted promotion strategy in India making it a
youth drink. Also that that time, television provided a powerful tool for both new and
old companies to reach segmented markets. By the late 90s, market segmentation
had surpassed mass marketing as the primary approach.
Mass Marketing Now and in the Future
In spite of the shift to market segmentation, mass marketing continues to be used
in many situations and has potential for others. Products with broad appeal and few
distinguishing characteristics— such as household cleaners, potato chips, and pain
relievers— lend themselves to mass marketing just as they always have. At the
same time, businesses that use mass marketing for their goods and services
continue to look for ways to enlarge their markets by designing different appeals for
non-customers. Chewing gum, for example, is presented as an alternative to
smoking. Utilities and credit cards offer special rates to entice potential high-volume
customers. And discount retailers, such as Big-Bazaar, match their mix of mass-
marketed products to local customer bases.
34
Any current or future product that has mass-marketable attributes will likely be
marketed by some form of the approach. In addition, the Internet provides a new
medium for mass-marketing initiatives, and newly opened international markets
offer a possible arena for mass-marketing opportunities. But as rightly said, change
is the only thing that is permanent, even the changes are expected in terms of the
ways of marketing and targeting the customers on personalized basis. Especially
with the companies becoming global and audience becoming conscious of what
they want, companies are more concentrating on offering customers a more
personalized touch. Also segmentation on the basis of classes is one of the most
emerging concepts. India being known for it’s extremities of people in terms of
income, education, work and social classes, companies have started opting this
class advertising approach to attract the targeted audience that’s fits into segment
of probable buyers of the products or services offered by the advertisers. For that
new methods of marketing have been put into practice in this race of attracting
customers. Old model is being replaced by new model of customerization.
35
Given below is the difference showing the difference in old and new model.
Old model- Old model- traditionaltraditional
New model-customerizationNew model-customerization
Relationship with the
customer
Passive participant Active co-producer
Customer Needs Articulated Articulated and Unarticulated
Segmentation Mass market and Target
segments
Customized segments
Pricing Fixed pricing &
discounting
Value based pricing model.
Customer determined
Communication Advertising and PR IMC & interactive
Distribution Traditional retailing and
direct marketing
Online distribution channels or third
party logistics
Branding Traditional branding and
co-branding
The customer’s name as brands
Basis of competitive
advantage
Marketing power Marketing finesse and “capturing” the
customer as “partner”
Product and service
offerings
Line extensions
modification, customizes
products, services, and
marketing. Marketing and
R&D drive new product
Customer interactions drive new
product development.
36
CLASS ADVERTISING
Understanding the Indian Consumer
India's economic growth has accelerated significantly over the last two decades,
along with the spending power of its citizens. Real average household disposable
income has roughly doubled since late 80s. With rising incomes, household
consumption has increased, and a new Indian middle class has emerged.
As Indian incomes rise, the shape of the country's income pyramid will also change
dramatically. More than 291 million people will move from desperate poverty to a
more sustainable life, adding a number of first-time consumers to the market. While
much of this new wealth and consumption will be created in urban areas, rural
households will also benefit.
The Need for Targeting Specific Class/ Group
Two words sum up today’s consumer market: unlimited choice. Over the past
decade, companies have rushed to steal market share by creating an unending
stream of new products to meet the desires of consumers. At the same time, media
outlets have proliferated and different concepts have emerged to woo the
customers from customization to interactive media advertising. Marketers are faced
with the challenge of getting their message heard by consumers who are hard to
find and even harder to influence.
But the question is how can companies create awareness of their products? One
thing is certain: Mass marketing no longer works. Marketers are no longer able to
reach a “mass market.” Even if they could, there is no longer a “one-product-fits-all”
mentality that would appeal to consumers.
Thus marketing concept calls for understanding customers and satisfying their
needs better than the competition. But different customers have different needs,
and it rarely is possible to satisfy all customers by treating them alike. While
37
Mass advertising refers to treatment of the market as a homogenous group and
offering the same marketing mix to all customers and economies of scale to be
realized through mass production, mass distribution, and mass communication.
Target advertising on the other hand recognizes the diversity of customers and
does not try to please all of them with the same offering. The first step in target
marketing is to identify different market segments and their needs.
The drawback of mass marketing is that customer needs and preferences differ
and the same offering is unlikely to be viewed as optimal by all customers. If firms
ignored the differing customer needs, another firm likely would enter the market
with a product that serves a specific group, and the incumbent firms would lose
those customers.
Thus, marketers have found the need to concentrate on a specific group than
mass. But how to group people and on what basis is one of the most challenging
question for the marketers. Earlier the basis for segmentation was on four major
categories, which mostly depends on the marketer to decide.
Geographic
Demographic
Psychographic
Behavioral
However, a common classification that is used by marketers to describe the Indian
population is the Socio Economic Classification thus giving rise to an entirely new
concept of CLASS MARKETING.
A common classification that is used by marketers to describe the Indian population
is the Socio Economic Classification (SEC). SEC is the classification of Indian
consumers on the basis of two parameters: Occupation and Education of the chief
wage earner (Head) of the households. The SEC classification, created in 1988,
was ratified by Market Research Society of India (MRSI), is used by most media
researchers and brand managers to understand the Indian consuming class. SEC
38
is made to understand the purchase behavior and the consumption pattern of the
households. This classification is more stable than one based on income alone and
being reflective of lifestyle is more relevant to the examination of consumption
behavior which will be presented in brief in the next section.
The basic reasons for developing a SEC system were the following:
1. Income can discriminate between consumers and non-consumers for certain
products, but not for others.
2. Income is not stable over time whereas SEC is, i.e., the cut-offs of high and low
income will vary quite rapidly over time.
3. Income is often understated.
The Urban Sector is divided into SEC A1, A2, B1, B2, C, D, E1, E2
(Calculated as a function of Educational qualifications of the CWE* and his
occupation)
The Rural Sector is divided into SEC R1, R2, R3, R4
(Calculated as a function of Educational Qualifications of the CWE* and the type of
the household he stays in – Pucca, Semi Pucca or Kaccha)
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Table below shows the socioeconomic classification of urban Indian households.
OCCUPATION EDUCATION
Illiterate
< 4 yrs in
school
5-9 yrs of
school
School certificat
eSome
college GraduatePost
graduateSkilled
workers E2 E1 D C C B2 B2Unskilled workers E2 E2 E1 D D D D
Shop owner D D C B2 B2 A2 A2
Petty trader E2 D D C C B2 B2Employer of
> 10 persons B1 B1 A2 A2 A1 A1 A1
< 10 persons C B2 B2 B1 A2 A1 A1
None D C B2 B1 A2 A1 A1
Others
Clerk D D D C B2 B1 B1
Supervisor D D C C B2 B1 A2
Professional D D D B2 B1 A2 A1Senior
executive B1 B1 B1 B1 A2 A1 A1Junior
executive C C C B2 B1 A2 A2
40
There are eight levels — from A1 to E2The level wise classification can be known
from the following table:
LEVEL OCCUPATION EDUCATION
A1 Employer of
>10 Persons College/Graduate/Post Graduate
<10 Persons Graduate/Post Graduate
none Graduate/Post Graduate
Professional Post Graduate
Senior Executive Graduate/Post Graduate
A2 Shop Owner Graduate/Post Graduate
Employer of>10 Persons 5-9years of school/School Certificate<10 Persons Some College
none Some CollegeSupervisor Post GraduateProfessional Graduate
Senior Executive Some College
Junior Executive Graduate/Post Graduate
B1 Employer of>10 Persons Illiterate/Less than 4 years in school<10 Persons School Certificate
none School CertificateClerk Graduate/Post GraduateSupervisor GraduateProfessional Some College
Senior ExecutiveIlliterate/Less than 4 years in school/ 5-9 years of school/School Certificates
Junior Executive Some CollegeB2 Skilled worker Graduate/Post Graduate
Shop Owner School Certificate/ Some collegePetty Trader Graduate/Post GraduateEmployer of
>10 PersonsLess than 4 years in school/ 5-9 years of school
none 5-9 years of schoolClerk Some CollegeSupervisor Some CollegeProfessional School CertificateJunior Executive School Certificate
41
LEVEL OCCUPATION EDUCATION
C Skilled Workers School Certificate/ Some college
Shop Owners 5-9years of school
Petty Traders School Certificate/ Some college
Employer of
<10 Persons Illiterate
none Less than 4 years in schoolClerk school CertificateSupervisor 5-9years of school/school Certificate
Junior ExecutiveIlliterate/Less than 4 years in school/ 5-9 years of school
D Skilled Workers 5-9 years of schoolUnskilled workers School Certificate/ Some collegeShop Owners Illiterate/Less than 4 years in school
Petty TradersLess than 4 years in school/ 5-9 years of school
Employer of
none Illiterate
ClerkIlliterate/Less than 4 years in school/ 5-9 years of school
Supervisor Illiterate/Less than 4 years in school
ProfessionalIlliterate/Less than 4 years in school/ 5-9 years of school
E1 Skilled Workers Less than 4 years in schoolUnskilled workers 5-9 years of school
E2 Skilled Workers IlliterateUnskilled workers Illiterate/ Less than 4 years in schoolPetty Traders Illiterate
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Table below shows the socioeconomic classification of Rural Indian household.
Education of chief wage earner Type of House
PuccaSemi-pucca Kuchcha
Professional degree R1 R2 R3Graduation/ PG R1 R2 R3
College R1 R2 R3SSC/HSC R2 R3 R3
Class 4-Class 9 R3 R3 R4Up to class 4 R3 R3 R4Self-learning R3 R4 R4
Illiterate R4 R4 R4
Level Education Type of House
R1 ProfessionalDegree/Graduation/PG/College Pucca
R2 SSC/HSC Pucca
ProfessionalDegree/Graduation/PG/College Semi-pucca
R3 ProfessionalDegree/Graduation/PG/College Kuchcha
SSC/HSC Semi-pucca/kuchcha
Class 4- Class 9/Up to class 4 Pucca/Semi-pucca
Self-Learning Pucca
R4 Class 4- Class 9/Up to class 4 Kuchcha
Self-Learning Semi-pucca/kuchcha
Illiterate Pucca/Semi-pucca/Kuchcha
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Urban & Rural Classification
According to the Census of India 1991, the following criteria were adopted for
treating a place as urban:
1. All statutory towns, i.e., all places with a municipality, corporation, cantonment
board or notified town area committee, etc.
2. All other places which satisfied the following criteria:
- A minimum population of 5000
- At least 75% of the male working population engaged in non-agricultural
pursuits, and
- A density of population of at least 400 per sq km
3. Apart from these, the outgrowths of cities and towns have also been treated as
urban
All areas not identified as Urban, are classified as Rural.
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SEC: A debate
Over the years, marketers have always targeted customers on the basis of their
income and predicted their requirements on the same basis. For example, only the
richer section were targeted for cars till late 80s until the focus shifted towards the
‘new emerging – Middle class’ which gained maximum attention of the marketer
then after. Other examples could be expensive furniture, suiting and other lifestyle
products and services which solely concentrated on the Elite class.
However, with the increase in the trend of being ‘IN’ thing not only are the people
opting for those goods and services which was earlier meant to target other specific
classes or on mass basis but also the spending is more dependent on the socio
economic status than just income. Thus, an executive who is not so rich by income
may have the needs for high-end products like luxurious car, far-away traveling,
branded clothes, etc. The need arises from his status as an executive though he
may not afford it, and would have surely bought if he belonged to higher class.
Other argument is that, demand for certain products like newspaper arises not out
of income. Even a lower income person can afford the subscription of newspaper,
Gujarati, Hindi or English, which nearly costs same. But a person who is not
educated and whose requirement of profession does not allow him to buy an
English newspaper, naturally he would not go for an English one. Also almost
everyone now spends not looking at their income but the status and to cope up with
that, consumers today do not hesitate to spend their income lavishly leaving only a
mere amount to savings. Also, awareness around the power of information
technology to solve problems, create employment and improve lives has trickled
down to the lowest socio-economic class. Mobiles are the best examples. The
gadget which was earlier a status symbol is now a requirement and is being used
by everyone around the corner.
Created in 1988, the SEC divided Indian households on the basis of the chief wage
earner’s education and occupation, SEC A1 to R4, covering all urban and rural
areas. The direct correlation between a higher SEC and education was a result of
the belief that a better educated person would have greater (organized)
employment opportunities and thus higher income.
45
This classification is pertinent as compared to an income-level based classification,
since lifestyle reflects the consumption patterns more closely than the income
levels.
The basic reasons for developing a SEC system were the following:
1. Income can discriminate between consumers and non-consumers for certain
products, but not for others.
2. Income is not stable over time whereas SEC is, i.e., the cut-offs of high and low
income will vary quite rapidly over time.
3. Income is often understated.
The last has been proved by large-scale studies that compared household
expenses with claimed income. Over 80 percent of upper income respondents were
found to have regular monthly expenses well in excess of their stated monthly
household income (MHI), and this proportion was not much lower among lower
income respondents too.
The second of the three reasons is also beyond dispute. Salary levels in India have
undergone a huge change in the 1990s; annual incomes of 1 million-plus rupees
are earned by thousands of families today, but were the privilege of the very rich a
decade ago.
Now let us examine the first reason stated in the context of a few product
categories. The method used is that of a selectivity index, which compares the
extent to which target audience definitions using surrogate variables SEC and
monthly household income (MHI) match with the actual target audience as
measured by very large-scale studies — specifically the Indian Readership Survey.
However, in spite of there being many arguments in favour of SEC, there are many
questions that have been raised on it. Consumers are now breaking class barriers.
Not only common man but celebrities are under a questionable situation too. Take
Sachin Tendulkar for an example. He owns a Ferrari, and his million-dollar
endorsement deals are a matter of widespread national interest. As a brand
46
ambassador, he is a marketer’s delight who has helped reviving the flagging
fortunes of several brands.
But many brands that he has endorsed in his 18-year career were never meant to
be used by him. Tendulkar, who hasn’t completed his graduate studies, would fall
into what most Indian marketers recognize as socio economic classification (SEC)
B — a category that is distinctly middle-class. The two-decade-old demographic
classification SEC is past its sell by date —is indeed a question on everyone’s mind
and certainly on marketers’.
The uni-dimensional way of looking at demographics is a key limitation of SECs.
Several layers of consumer segmentation need to be added on like
psychographics, cultural clusters, and life stages to make a compelling basis for
defining consumer segments.
Today, ‘Swift’ competes outside its so-called category with bigger cars such as
Esteem and Ikon. The consumer is willing to pay more for a smaller but better
designed product. People are using brands to express themselves more than ever
before. The size-price equation doesn’t hold good here.
Also there are many big names have completely junked the SEC segmentation,
and prospered nonetheless. The first name is The Future Group. The company has
gone with its own market definition for all of their retail formats.
“We have been maintaining that the SEC classification is not a true representation
of Indian consumers for three-four years now,” says Future Chairman Kishore
Biyani.
The group has worked out a system where the entire set of Indian consumers is
divided into three broad categories: India One or the consuming class, India Two or
the serving class and India Three or the deprived class. Biyani’s philosophy is
simple.
India One consists of the ‘consuming class’ that makes up 16-18% of the
consumers but account for 95% of the buyers. That is the core target audience that
47
he is trying to capture. Also on Biyani’s radar is a part of India Two, the group that
serves India One, for instance, servants, watchmen and small grocers.
Later, in 2002, Unilever devised its proprietary Living Standard Measurement
(LSM) index as an alternative to SEC, which segments consumers into 18 LSM
clusters on the basis of 25 parameters such as income, education, durables
ownership, media consumption, entertainment preferences et al.
However, even though many big companies going against SEC, there are still
many big marketers who think along those lines. They’re using the (SEC)
classification data, because it’s the only data that they have. They use it along with
additional data like ownership and consumption but there is no alternative to
demographic data.
Owing to this, a temporary solution was formed by splitting SEC A into two
categories, A1 and A2. This led to a further division, as affluence rose in SEC A1 to
an A1+, which was formed with a threshold of Rs 10,000 as monthly income. Yet,
this has become dated, with nearly a decade since the idea of SEC A1+ was
mooted. In fact, it’s been a decade since any serious changes were made to
classify consumers. But what is considered as the biggest drawback of this SEC is
that, it considers the occupation and education of CWE Chief Wage Earner which
may not be always influential as far as purchase decisions are considered.
Further refinement
No matter what debate it takes, market research in India has been evolving rapidly
to tackle the increasing needs of marketers operating in a complex environment.
48
One of the key evolutions was the development of a socio-economic system of
classifying consumers around a decade ago. While SEC is an improvement on
income, data from large-scale studies show that further refinement is now called
for.
One possible solution is to introduce further levels in the SEC system. This is being
done by combining SEC with household expenses to see if a combined system
yields better results. The appropriate questions are now being put on to large-scale
surveys.
Understanding Class: Demographics
Indian Socio economic structure is constantly changing. The main reason for which
are:
49
Growing Economy
Consumption Boom
Rising Income levels
Rise in Working Population
Increasing Nuclear Families
Changing Food Behaviour
Profusion of Brands
The demographic representation of population according to SEC can be known from the following chart:
Social Class Total Male Female Value % Value % Value %
A1 21228 3 11681 3 9547 3B2 37351 5 20237 6 17114 4C 46195 6 24718 6 21477 6D 61573 7 27589 7 23984 7E3 64305 8 33063 8 31242 9R1 19671 3 10180 3 9491 3R2 56491 8 29268 8 27223 8R3 199061 27 104834 27 94167 26R4 243749 33 122424 32 121325 34
Group 14 (A-E) 220652 30 117288 31 103364 29
Group 25 (R1-R4) 578972 70 266766 69 252206 71
Source: IRS(2005)
A = high/intermediate managers/well educated/ businessmen with large organizations
B = intermediate managers/ good education/ businessmen/ self employed with small organizations
C = petty traders/shop owners/clerks/salesman/ supervisors with some education D = poorly educated petty traders/shop owners/clerks/salesman E = skilled/unskilled workers R1 = well educated, living in good houses R2 = good education, living in not very good houses R3 = some education, living in huts and temporary sheltersR4 = uneducated, living in temporary shelters1 Consists of the two Groups A1 and A2:
Male A1 = 4,018 (1%); Female A1 = 3,386(1%); Total A1 = 7,404 (1%); Male A2 = 7,663 (2%); Female A2 = 6,161 (2%); Total A2 = 13,824 (2%); (All in ‘000)
2 Consists of the two Groups B1 and B2:
50
Male B1 = 9,988 (3%); Female B1 = 8,452 (2%); Total B1 = 18,440 (2%); Male B2 = 10,249 (3%); Female B2 = 8,662 (2%); Total B2 = 18,911 (3%); (All in ‘000)
3 Consists of the two Groups E1 and E2: Male E1 = 12,510 (3%); Female E1 = 11,516 (3%); Total E1 = 24,026 (3%); Male E2 = 20,553 (5%); Female E2 = 19,726 (6%); Total E2 = 40,729 (5%);
(All in ‘000)4 A-E, total urban5 R1-R4, total rural
URBAN
As mentioned earlier, urban population has eight levels of classes starting from A1
to E2. Urban population forms nearly 30% of total population. Going on the lines of
this fact, the population stratification would be as follows:
CHART:
URBAN SEC POPULATION
A10%
B18%
C21%
D24%
E27%
As per the above given data, Sections A & B refer to High-class- constitutes over a
quarter of urban population
Sec C refers to Middle-class-- constitutes nearly 20% of the urban population
Sections D & E refer to Low-class-- constitutes over half the urban population.
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RURAL
Rural population forms 70% of the total population and SEC Rural has four levels
on the basis of occupation and type of house ___ Pucca, Semi-Pucca and Kaccha.
As per the above given data, Section R1 is closer to B2 of urban population and
forms 3% while Section R2 and R3 are closer to D and E1 of urban classification
respectively forming 8% and 27%. The bottom Section R4 constitutes 33% of total
population of ending up being closer to the last section of urban classification E2.
Now the question might arise, how the classes are termed as high income, middle
income and low income group since the classification does not involve income
altogether. The answer is HPI i.e., Household Potential Index.
HPI uses consumption / ownership of a whole host of durables, packaged goods,
services and demographics, to construct a simple aggregate index of how much
purchasing power a household exhibits.
The concept underlying the index is simple - households owning or using a low
penetration item or having a less popular demographic characteristic (like high
education levels) get a higher score for that. The scores are then aggregated
across all items and a HPI score arrived at for the household. Thus in place of
income, we have a sort of "consumption" / "ownership" / "characteristics" based
index which is a measure of purchasing power. Again, the score for any category is
simply done, eliminating all judgement. It is the reciprocal of the penetration of the
category in the total universe. Thus if 70% have a television, then television
ownership in a household generates a lower score on power / potential (1/70), but if
only 10% have an air conditioner, then air conditioner ownership in a household
gets a higher score (1 / 10). The raw scores aggregated across all items included in
this index are then normalized on a 1 to 1000 scale. Further, within a broad
category, premium versions of it are treated differently - example, a black and white
TV, a colour TV and a flat screen TV.
Based on this HPI score, the relative purchasing power of each SEC is as below
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Source: survey conducted by Hansa Research for the Media Research Users Council, MRUC.
For the first time, on a sensible common scale the rural SECs and the urban SECs
have been compared. This eliminates the differences in how they think about
income (since these types of income surveys measure respondent's perception of
their own income, without any cross checks).
The R1 social class, the top end of rural is between B2 and C of urban, closer to
B2. therefore, we would say that there is one top band of purchasing power in
India, Urban A1A2, comprising about a little over 6 million households; Then there
is the next band, which we believe would qualify for the 'middle class India" label,
comprising B1R1B2C, between them, harbouring 30 million households; The
ABCR1 target group which would form the broadest possible target group for most
consumer goods is about 35.4 million households, and 132 million individuals over
the age of 12. This target group grew 26.9% between the years 2000 and 2005.
Then there is the lower middle, comprising DE1R2 which is about 37 million
households, where we believe that most Bottom of the Pyramid activities should
begin. The lowest income, are the E2R3R4. These households form the bottom
60% of the population by income, but account for an income share of 30%.
Perhaps there is fortune, after all, at the bottom of the pyramid!
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However the conclusion given here is on the overall basis, where the categorization
may differ for different products.
To understand, consider an example: A trader whose monthly household income
(MHI) is more than that of a person in section A cannot be included in this SEC
because his educational qualification or occupation does not qualify him for
inclusion. However, there always exists a debate if this bifurcation really shows the
true picture. Because if a person belonging to Section A1 has high income then it
may not be true for the person who belongs to section B2, though they both are
categorized as high income group. Thus even in high income group, the income
variation and status differs which marketers don’t notice before selecting media for
advertising their product.
SEC is an indicator or a pointer towards the “likely to consume” set but often
defies the reality of not pointing clearly towards the “consuming class”, which is
the purpose of any targeting by any marketer. The drawback of using Monthly
Household Income (MHI) lies in the difficulty of capturing the correct data, as the
respondents are hesitant to disclose the correct MHI.
Thus, with nothing as an exception to the drawbacks is acceptable too to most of
the marketers.
Understanding Class: Media
As discussed earlier, the focus is now shifting from mass to class concept.
However, in spite of that, there are many media which though trying hard to focus
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on class have yet not been able to penetrate as an effective medium to attract the
classes. Undoubtedly, with an increase in awareness among the marketers, there
have come up few media that have been successful in attracting ‘classes’
especially in television that attracts elite class like NDTV good times and Zoom.
Whereas the magazines like Femina, She, etc, are of the commonest choice of
magazines among higher middle class and higher classes.
Special focus on class media not only helps marketers to make a deep impact on
the consumers mind but also to capture the ‘top of the mind’ state which has
become very essential in this one of the fastest growing sector.
Apart from this, there is also need of understanding consumers’ needs or
requirements as well as the standard of living, thought it is very difficult to judge
every consumer’s needs, a class is a good representation on collective basis.
Marketers in India have traditionally focused their attention and marketing effort on
the higher socioeconomic classes (otherwise called SEC A&B). Both they and their
advertising agencies have found these segments easier to understand and identify
with. It has been believed that they are more easily targeted through the traditional
mass media. The language and tone of voice used to communicate with this
segment has a more familiar and comfortable ring to it. But it is now perhaps time
to examine the relevance of mid and low socioeconomic classes ( SEC C, D&E)
who, over the last decade, have slowly but surely grown in economic power and
today contribute significant volumes to a number of product categories.
But then marketer has to understand that the reach of media in both urban and
rural India is not the same. Thus marketers have to advertise knowing what the
best possible options for them are. Looking at the urban and rural reach, following
conclusions have been made.
Urban reach
Television has the highest reach in urban areas and reached more than 75 per cent
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of the urban population in 2007. The most significant change, in media
consumption, in the last decade has been an increase in the importance of
television in the lives of the Indian consumer. Currently more than 70% of the adult
(15+) urban population watches television all seven days a week vis-à-vis just 40%
10 years ago. On a weekday, the average viewer watches television for around two
and quarter hours. Television could slowly replace social interaction in all its
traditional roles of opinion maker, informer, entertainer and influencer. However,
the real change is the increase in the frequency with which viewers watch
television. Television seems to have moved on from being entertainment to be
indulged in on holidays to being part of the consumer’s daily routine. Now only
more than 70% of individuals belonging to the SEC D&E households and more
than 80% individuals belonging to SEC C households watch television seven days
a week in comparison to 90% individuals belonging to SEC A households.
The print medium has the second highest reach in urban areas, with 35 per cent
penetration. The percentage reach for the print medium denotes average issue
readership.
After print comes radio with 20 per cent reach and then comes cinema with close to
12 per cent penetration. The percentage of the population mentioned listened to
the radio at least three days a week and went to the cinema at least once a month.
On the basis of sex, the penetration of all media remains less for females than for
males in both urban and rural areas. In urban India, TV reaches 75 per cent of
males and 74 per cent of females. Press permeates to 46 per cent males and 27
per cent females. Radio has 24 per cent and 19 per cent reach for males and
females, respectively. Cinema reaches 10 and 3 per cent males and females and
the Internet reaches 6 per cent and 2 per cent males and females, respectively.
Looking at state wise reach in urban areas, television has the highest reach in all
the states, including Chandigarh, Delhi and Goa. All three states reveal 87 per cent
penetration. TV has the lowest reach in Bihar, with only 49 per cent penetration.
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Print has the highest penetration in Kerala and the lowest in Orissa. Reach figures
for both states are 71 per cent and 27 per cent, respectively.
Radio has the highest reach in Tamil Nadu – 40 per cent – and the lowest reach in
Punjab – 9 per cent. Cinema is most successful in Andhra Pradesh, with 20 per
cent reach, and least effective in Goa and Himachal Pradesh, with only 1 per cent
reach in each state. The Internet is most useful as a medium in Delhi and Goa, with
12 per cent reach in each state, and the least used medium in Gujarat, Madhya
Pradesh and Chhattisgarh, with just 2 per cent reach in each state.
Rural reach
The penetration of all these media is relatively different in rural India. Television
continues to be the medium with the highest reach, but penetrates only 38 per cent
of the huge rural population in the country. Radio overtakes print in rural India and
becomes the medium with the second highest reach. Radio reaches to the 18% of
the rural population. The penetration of print is 15 per cent. Cinema, like in urban
India, has the lowest reach in rural India – it reaches a mere 5 per cent of the rural
population.
Looking at the reach of the various media on the basis of sexual division, TV’s
penetration in rural areas is 39 per cent for men and 35 per cent for women. Radio
reaches 22 per cent males and 13 per cent females. Print reaches 20 per cent
males and 7 per cent females. Cinema reaches 4 per cent males and 1 per cent
females.
State wise reach is highest for television in Goa, with 83 per cent penetration; it is
the lowest in Bihar, with 11 per cent penetration. Radio, like in urban India, has the
maximum reach in Tamil Nadu (40 per cent) and the minimum reach in Andhra
Pradesh (3 per cent). Print is most effective as a medium in Kerala again, with 62
per cent reach, and least effective in Madhya Pradesh, with only 4 per cent reach.
Cinema follows the same trend in rural India as in urban India and has the highest
reach in Andhra Pradesh – 20 per cent. The medium has the lowest reach in the
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states of Bihar, Gujarat, Haryana, Chhattisgarh, Orissa, Uttar Pradesh and West
Bengal – 1 per cent penetration in each of these states.
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CLASS ADVERTISING
Understanding target and media selection
Factors to be considered for targeting class customers and
selecting media
Identification of the target class is extremely essential before offering both a
product /service as well as advertising and selecting media for the same. Thus,
understanding the product itself is an important thing. When a marketer markets a
product, seldom he markets the one which is for all the classes, other than basic
items like salt. However, though there might be many such products catering to all
the classes the ratio is too low to compare its penetration against items that targets
classes. So how can marketer decide whom to target? First, the main consideration
is affordability of the consumer because only then, the wants are converted to
demand for the product/service. Secondly, to what extent the consumer is ready to
accept. And if the results show positive response the next question arises is what
advertising media should you use to promote your business? Simple. Use the one
that is most influential and believable, and that comprehensively reaches the
highest percentage of your target audience for the lowest cost.
Media Preference
Until last century, people had not many options as far as media is concerned. But
with the advent of new media and global competition, not many are left behind in
attracting people. However, before the selection of any media to advertise, one of
the most important things to be taken into consideration is that what consumers
prefer as far as media selection is concerned. Thus, there might rise questions like:
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What is consumer preference?
Why is it important for an advertiser to know the preference?
Where should an advertiser advertise for the products or services?
The answer is, no one can say anything for sure what a consumer prefers. It is an
everlasting ongoing process of sticking to one media at some point and switching to
other at the other point. Preference for media is thus cannot so be so easily
predicted. But when we talk about class advertising, it can be said that the overall
preference for the people belonging to the same class remains same. That is
instead of individual choices, class preference show an inclination towards certain
media that might help an advertiser to choose the media for advertising in a better
manner.
For knowing the selection patterns existing among the people, following is the
research conducted to know the class preference (restricted to Ahmedabad, Urban)
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RESEARCH STUDY
Research Problem: To know the exposure level of different media to different
socio-economic classes
Research Design: Exploratory research design
Sample Design: Stratified random, Judgment sampling, convenience sampling
Research Instrument: Questionnaire (Annexure)
Sample Size: 30 for each class (8 classes) = 240
Duration: 1 month
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RESEARCH FINDINGS
The findings below are bifurcated according to the different
classes from A1 to E2.
A1: THE AFFLUENTS
A2: THE RICH
B1: THE DREAMERS
B2: THE AMBITIOUS
C: THE CLIMBERS
D: THE STRUGGLERS
E1: THE LAGGARDS
E2: THE FORTUNE SEEKERS
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TV EXPOSURE
The results show that the classes B1,B2, C, and D have the highest Tv exposure amongst all
classes. The detaled exposure to various channels is given below.
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NEWS EXPOSURE
As the results show the classes A1,A2, and B1 have the highest expoure to news channels.
The remaining classes have almost the same exposure to news channels. For targeting the
A1,A2, and B1 classes advetisment on news channels would prove more effective as their
exposure is high.
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MUSIC CHANNEL EXPOSURE
As the results show all the classes have high expoure to music channels. The classes A1
and A2 have less exposure to music compared to the rest. For targeting all the classes
advetisment on music channels would prove more effective as their exposure is high.
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INFORMATIVE CHANNEL EXPOSURE
As the results show the classes A1,A2, and B1 have the highest expoure to informative
channels. The remaining classes have almost the same exposure to informative channels.
For targeting the A1,A2, and B1 classes advetisment on informative channels would prove
more effective as their exposure is high. Also the classes C,D,E1 and E2 have very low
exposure.
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MOVIE CHANNEL EXPOSURE
As the results show the classes A1 and E1 have the highest expoure to movie channels. The
exposure for the remaining classes varies greatly. For targeting the A1 and E1 classes
advetisment on movie channels would prove more effective as their exposure is high.
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SOPS EXPOSURE
As the results show all the classes have very high expoure. For targeting the all the classes
advetisment on news channels would prove more effective as their exposure to sops is
high.
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D.D. EXPOSURE
As the results show the classes B2,C,D,E1 and E2 have the highest expoure to D.D.
channel. The exposure for the remaining classes is not applicable. For targeting the
B2,C,D,E1 and E2 classes advetisment on sop would prove more effective as their exposure
is high.
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NEWSPAPER EXPOSURE
As the results show the classes A1,A2,B1 and B2 have the highest expoure to news papers.
The remaining classes have almost the same exposure to news papers. For targeting the
A1,A2,B1 and B2 classes advetisment on news papers would prove more effective as their
exposure is high.
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ENGLISH
As the results show the classes A1and A2 have the highest expoure to english news papers.
The exposure for the remaining classes is not applicable. For targeting the A1 and A2
classes advetisment on english news papers would prove more effective as their exposure is
high.
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LOCAL LANGUAGE
As the results show all the classes have very high expoure. For targeting the all the classes
advetisment on local language news papers would prove more effective as their exposure
is high.
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ENGLISH + LOCAL LANGUAGE
As the results show the classes A1,A2 and B1 have the highest expoure to both english and
local language news papers. The exposure for the remaining classes C,D,E1 and E2 is not
applicable. For targeting the A1,A2 and B1 classes advetisment on english and local
language news papers would prove more effective as their exposure to is high.
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CINEMA EXPOSURE
As the results show the classes A1,A2,B1,B2 and C have the highest exposure to cinema.
The remaining classes have almost the same exposure and that is very less. For targeting the
A1,A2,B1,B2 and C classes advetisment on cinema would prove more effective as their
exposure is high.
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MAGAZINE EXPOSURE
As the results show the classes A1,A2,B1and B2 have the highest expoure to magazines .
The exposure for the remaining classes C,D,E1 and E2 is not applicable. For targeting the
A1,A2,B1and B2 classes advetisment in magazines would prove more effective as their
exposure is high.
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INTERNET EXPOSURE
As the results show the classes A1and A2 have the highest expoure to internet. The
exposure for the remaining classes C,D,E1 and E2 is not applicable. For targeting the
A1and A2 classes advetisment in magazines would prove more effective as their exposure
is high.
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OOH
As the results show all the classes except B1 and B2 have very high expoure. For targeting
the rest of the classes advetisment on OOH would prove more effective as their exposure
is high.
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RADIO EXPOSURE
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As the results show the classes A1and A2 have the lowest expoure to radio. The exposure
for the remaining classes B1,B2,C,D,E1 and E2 is very high. For targeting the
B1,B2,C,D,E1 and E2 classes advetisment in radio would prove more effective as their
exposure is high.
CONCLUSION
The Indian Advertising Industry being one of the fastest growing area of not only
the IE&M but also the Indian Economy, has a huge potential for further
development. The experience of knowing the insights of the Indian Entertainment
and Median Industry as well as the Indian Advertising Industry was enriching. It
gave some of the true picture of the industry with which I was totally unaware of.
The understanding of the preferences of the various classes to different media and
their exposure to it can help advertisers target the right audience using the right
media.
Thus targeting the right audience for the advertizing and choosing a specific media
can help advertisers save a lot money in advertizing.
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RECOMMENDATIONS
Extensive research by companies, advertising agencies or market research firms
can help understand the exact exposure relations of the various socio economic
classes to the various media.
Research can also be undertaken to understand the exposure level of various
classes in the rural area to various media.
Concrete findings can help companies in reducing advertising expenditure by
concentrating on the right media to reach to target audience.
Also, the companies media budget can be used wisely. Not necessarily does the
company have to cut back on its advertising expenses.
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BIBILIOGRAPY
Kotler, Philip: Marketing Management, Eleventh Edition, PHI
Kothari C. R.: Research Methodology
Bijapurkar, Rama: We Are Like That Only, Understanding the Logic of
Consumer India, Penguin Portfolio
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WEBOGRAPHY
http://www.aaai.com
http://www.iamai.com
http://www.egyankosh.com
http://www.quirks.com
http://www.mckinsey.com/mgi/publications/india_consumer_market/images/
India_Interactive1.swf
http://www.indiantelevision.com/mam/headlines/y2k2/apr/apr2.htm
http://www.magindia.com/manarch/news/man41321.html
http://www.impactonnet.com/V4_issue2.asp
http://www.ramabijapurkar.com/demanddrivers/dsds_indianconsumers2.php
http://www.exchange4media.com/e4m/media_matter/matter_130705.asp
http://www.pewsocialtrends.org/pubs/?chartid=517
http://readbetweentheps.blogspot.com/2005/09/socio-economic-
classification-are-we.html
http://www.timm.indiatimes.com/examples/timm/ecoclass.jsp
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http://www.ficci.com/media-room/speeches-presentations/2006/nov/us/
RetailFranchisingLogisticsSession/BSNagesh.pdf
http://www.martrural.com/Rural%20Opportunities%20&
%20Challenges_website.pdf
http://www.atulvaid.com/files/Atul_Vaid_-
_Overview_of_Regulatory_Framework.pdf
http://www.streamlineindia.com/economy/market.htm#Socio-Economic
%20Classification
http://www.india-seminar.com/2001/498/498%20rajiv%20inamdar%20&
%20monika%20chandra.htm
http://www.quizlet.com/set/317730/
http://www.ciadvertising.org/studies/reports/presentation/PDHCM99A/
sld008.htm
http://www.uab.edu/uasomume/cdm/media.htm
http://www.slideshare.net
http://www.scribd.com
http://www.thehindubusinessline.com
http://www.agencyfaqs.com
http://www.exchange4media.com
http://www.indiatoday.com
http://www.google.com
http://www.dogpile.com
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GLOSSARY
Advertising is one of the aspects of mass communication. Advertising is actually
brand-building through effective communication and is essentially a service
industry. It helps to create demand, promote marketing system and boost
economic growth. Thus advertising forms the basis of marketing.
Branding is a traditional advertising method used to create a response from a
target audience based on cumulative impressions and positive reinforcement.
CAGR (Compounded Annual Growth Rate) is used to describe the growth over a
period of time of some element of the business, usually revenue.
Co-branding is an arrangement that associates a single product or service with
more than one brand name, or otherwise associates a product with someone other
than the principal producer.
Community radio is a type of radio service that caters to the interests of a certain
area, broadcasting material that is popular to a local audience but is overlooked by
more powerful broadcast groups.
Direct Broadcast Satellite (DBS) is a term used to refer to satellite television
broadcasts intended for home reception.
Exploratory research is a type of research that helps determine the best research
design, data collection method and selection of subjects. It often concludes that a
perceived problem does not actually exist.
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HPI Household Potential Index uses consumption / ownership of a whole host of
durables, packaged goods, services and demographics, to construct a simple
aggregate index of how much purchasing power a household exhibits.
Interactive television represents a continuum from low interactivity to moderate
interactivity and high interactivity in which, for example, an audience member
affects the program being watched. The most obvious example of this would be any
kind of real-time voting on the screen, in which audience votes create decisions
that are reflected in how the show continues. A return path to the program provider
is not necessary to have an interactive program experience. Once a movie is
downloaded for example, controls may all be local. The link was needed to
download the program, but texts and software which can be executed locally at the
set-top box or IRD (Integrated Receiver Decoder) may occur automatically, once
the viewer enters the channel.
Internet marketing is the marketing of products or services over the Internet.
Integrated Marketing Communications (IMC), is a planning process designed to
assure that all brand contacts received by a customer or prospect for a product,
service, or organization are relevant to that person and consistent over time.
Interactive advertising is the use of interactive media to promote and influence
the buying decisions of the consumer in an online and offline environment.
IPTV (Internet Protocol Television) is a system where a digital television service
is delivered using Internet Protocol over a network infrastructure, which may
include delivery by a broadband connection.
Mobile Marketing can refer to one of two categories of marketing. First is meant to
describe marketing on or with a mobile device. Second, and a more traditional
definition, is meant to describe marketing in a moving fashion.
Out-of-home advertising (OOH) is essentially any type of advertising that reaches
the consumer while he or she is outside the home.
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Satellite radio (SR) is a digital radio signal that is broadcast by a communications
satellite, which covers a much wider geographical range than terrestrial radio
signals.
Visual radio is a generic term for adding visuals to normal audio radio broadcast.
Mass communication is the term used to describe the academic study of the
various means by which individuals and entities relay information through mass
media to large segments of the population at the same time.
Market segment is a subgroup of people or organizations sharing one or more
characteristics that cause them to have similar product needs.
Personalization is tailoring a consumer product, electronic or written medium to a
user based on personal details or characteristics they provide.
Psychographic variables are any attributes relating to personality, values,
attitudes, interests, or lifestyles.
Socio Economic Classification: Socio-economic classification (SEC) indicates
the affluence level of a household to which an individual belongs. Socio economic
classification of an urban household is defined by the education and occupation of
the chief wage earner (CWE) of a household. SEC is divided into 8 categories A1,
A2, B1, B2, C, D, E1, and E2. (In decreasing order of affluence)
Social Network Advertising is a term that is used to describe a form of Online
advertising that focuses on social networking sites. One of the major benefits of
advertising on a social networking is that advertisers can take advantage of the
users’ demographic information and target their ads appropriately.
Stratified sampling is a method of sampling from a population. Stratification is the
process of grouping members of the population into relatively homogeneous
subgroups before sampling.
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Third-party logistics provider (3PL) is a firm that provides outsourced or "third
party" logistics services to companies for part, or sometimes all of their supply
chain management functions.
ANNEXURE
Questionnaire
QUESTIONNAIRE ON MEDIA PREFERENCE (SEC)N.B.:1) Please tick () the boxes for your response and leave the others blank.2) Please rank in the order of preference wherever mentioned.3) The information collected in the survey will be kept confidential and used only for the research
purpose.
(Please select only one option under each question)1. Occupation:
( ) Skilled workers ( ) Unskilled workers ( ) Shop owner ( ) Petty trader ( ) Clerk ( ) Supervisor ( ) Professional ( ) Senior executive ( ) Junior executive( ) Employer of > 10 persons ( ) Employer of < 10 persons ( ) Employer of None
2. Education:( ) Illiterate ( ) < 4 yrs in school ( ) 5-9 yrs of school( ) School certificate ( ) Some college ( ) Graduate( ) Post graduate
3. How much radio do you listen to?( ) 0-15mins ( ) 15-30mins ( ) 30-45mins( ) 45-60mins ( ) 1-2hrs ( ) 2-3hrs ( ) 3-5hrs
4. How much TV do you watch per day?( ) 0-15mins ( ) 15-30mins ( ) 30-45mins( ) 45-60mins ( ) 1-2hrs ( ) 2-3hrs ( ) 3-5hrs
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5. How much time do you spend on watching news per day?
( ) 0-15mins ( ) 15-30mins ( ) 30-45mins( ) 45-60mins ( ) 1-2hrs ( ) 2-3hrs ( ) 3-5hrs
6. How much time do you spend on watching Music channels per day?
( ) 0-15mins ( ) 15-30mins ( ) 30-45mins( ) 45-60mins ( ) 1-2hrs ( ) 2-3hrs ( ) 3-5hrs
7. How much time do you spend on watching Informative channels (ex: discovery, national geography) per day?
( ) 0-15mins ( ) 15-30mins ( ) 30-45mins( ) 45-60mins ( ) 1-2hrs ( ) 2-3hrs ( ) 3-5hrs
8. How much time do you spend on watching Sops channels per day?
( ) 0-15mins ( ) 15-30mins ( ) 30-45mins( ) 45-60mins ( ) 1-2hrs ( ) 2-3hrs ( ) 3-5hrs
9. How much time do you spend on watching D.D. (All doordarshan channels) per day?
( ) 0-15mins ( ) 15-30mins ( ) 30-45mins( ) 45-60mins ( ) 1-2hrs ( ) 2-3hrs ( ) 3-5hrs
10.How much time do you spend reading newspapers per day?
( ) 0-15mins ( ) 15-30mins ( ) 30-45mins( ) 45-60mins ( ) 1-2hrs
11. In which language do you read newspapers? ( ) English ( ) Local language ( ) Both
12.Which type of newspapers do you read?( ) General ( ) Business ( ) Both
13.How many movies do you watch in a month (in theatres)?
( ) 0 ( ) 1 ( ) 2 ( ) 3 ( ) 4 ( ) 5-10permonth14.How many magazines do you read per day?
( ) 0 ( ) 1 ( ) 2 ( ) 3 ( ) 4 ( ) 5
15.How much time do you spend on internet per week?( ) 0-1hours ( ) 1-5hours ( ) 5-10hours ( ) 10-20hours ( ) 20-25hours
16.How much do you travel per day?
( ) 0-5kms ( ) 5-10kms ( ) 10-15kms ( ) 15-20kms ( ) 20-50kms
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This questionnaire is part of Grand Project on “Class Advertising” as a part of M.B.A studies at N.R. Institute of Business Management. Thank you for your valuable time.
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