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Understanding Integrated Marketing Communication in India
Deepika Kurl, Sport Leasing – Corporate Controller, San Francisco, USA
Integrated Marketing Communication (IMC) is one of the most important communications trends adopted by companies in the last decade. With an increase in global competition, technological advances, and more informed customers, it is important for businesses to make a powerful impact on target audiences and markets. IMC is one such step toward an integrated approach to achieving efficiency by synergy. The American Association of Advertising Agencies defines IMC as “a concept that recognises the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines, and combines these disciplines to provide clarity, consistency and maximum communication impact”.
With the change in communication practices and technologies around the world, integration in marketing techniques is inevitable for the companies to survive in this multi-national and multi-cultural world emerging globally. India, as one of the more economically advanced among developing countries, offers excellent opportunity for the study of concepts such as IMC and its need in countries outside the US and outside the paradigm of what is called ‘Western’.
India’s huge population and growing middle class presents promising potential for many US and European multinational companies focusing on the Indian markets. With more companies viewing India as an emerging market, competition in markets is growing and integration would become inevitable for communications in the developing world. The economic liberalisation and reform movement, started in India in 1991, has been one of the major contributors to the increase in its trade interactions globally. The open flow of communication with the rest of the world and the country’s ability to adapt to these changes has made it a very lucrative and promising land for many multinational companies.
The growing purchasing power of India’s huge middle class makes it easier for companies to do business in India. However, the customer base in India is extremely fragmented. The huge geographic expanse of the country has resulted in an inconsistent distribution system that is radically different from that present in most other countries. Added to this is the cultural diversity of its inhabitants, differences in their tastes, habits, and requirements that make it very difficult for companies to market their goods in a streamlined and consistent manner. In the absence of well-developed departments for individual elements of marketing communications, a quasi-integrated approach might already be practiced among various departments in Indian companies.
The idea of IMC still manifests itself in a variety of local and situational ways, both for academics who study it and for managers who apply it in real world and real time situations. Keeping in perspective a pertinent analogy of ‘Think globally, act locally’ with the concept of IMC, it is pertinent to examine the theories of culture and sub-culture, demographic, social class, and groups influences, with reference to India.
The concept of focused and massive marketing is fairly new to the Indian companies who have traditionally experienced a mixed economy and trade restrictions back home. In a protected economy, the companies had faced restricted competition and consequently did not realise the importance of targeted and more focused marketing. IMC is a major strategic concept that is as evolutionary and discursive in its concept as other marketing and management tools. There is a strong need to explore the concept and phenomena of IMC directly in the real world of communication. Communication is the basis of all marketing activities. The purpose of integrated marketing communications strategy is to work toward the common goal of customer focused marketing.
To make this most effective, management must understand the characteristics of audiences, messages, and media. Traditional cultures in different parts of the world are adopting Western-style consumerist tendencies while trying to retain their traditional and indigenous value systems. To understand these evolving consumption patterns, one needs to study social and cultural theories in context of consumers’ response.
As each national market is different, the multinational companies must concentrate on marketing strategies that suit local culture. The cultures of the advanced and developed economies place more emphasis on individualism as opposed to the collectivism reflected in less developed and traditional economies. The purchasing habits of people in India are a direct result of social networks and family structures. For example, one television set would be considered sufficient for an entire family. It would be more appealing if the product is positioned as being durable and a great value. Most foreign firms encounter resistance from consumers because they position their products as an indulgence rather than an investment. Decades of simplicity and socialism have instilled a sense of ‘value’ in the country that cannot be ignored by any successful marketer.
The differences and similarities in cultural values of countries influence the different demographics and contribute to the requirement of a very different marketing communication plan as compared to other regions. What is the cultural composition of the organisation’s markets and how does it respond to varied marketing needs for same products?
The history of industrial and economic development of India stands out as a unique process, not only because of its geographically heterogeneous demographic traits, but also because of its colonial history. The predominant demographics contributing to this uniqueness are:
1.Rural-urban mix: Industrialisation in India emerged as the result of poor agricultural conditions and dwindling handicrafts. The push from land and craft generated to some extent a pull toward industry.
2.Occupational diversity: Even though the population of India is and has been overwhelmingly agricultural, there had always been a variety of non-agricultural occupations such as handicrafts and arts involving various types of skills.
3.Diversity in economic conditions: Despite the overall poor image, extremes of poverty and wealth have always co-existed.
4.Colonial rule: Even though the British rule destroyed the indigenous industry in India by means of market competition, there has been continuous improvement in the means of transportation and communication contributing to the advancement of the economic scenario.
The differences in the attitudes and behaviours within these broad segments can help marketers identify niches and target these niches on the basis of social class. By reviewing the available literature on social class, one can understand how messages are formulated to reach the target markets. How do companies identify their markets and particular niche for a common product used across different demographics?
The objectives of any marketing communication process are to create brand awareness, deliver information, educate the market, and advance a positive image of the product brand. In simpler terms, “IMC refers to speaking with one voice, eliciting a response”. Therefore, “IMC is a return to building brand loyalty by building brands that deserve loyalty”. It is important to understand the customer perceptions and identify individual customers within the target niche markets. While the widespread use of Internet technology has made is easier to reach wider markets, identifying the niche has become more challenging.
Internet marketing has yet to pick up pace in India because of the slow technological advancement and consumer perceptions. Majority of people buy things while visiting the markets and the concept of home shopping is still alien to them. Credit card usage is minimal and generally used as convenience cards. Personal contacts are still prevalent to achieve a comfortable association between the marketers and consumers.
Will technological advancement support the integration between communication channels if markets feel a need for IMC in India?
Although recent liberalisation policies have increased competition and enforced new marketing practices in India, the traditional concepts of marketing might be totally different from the concepts practiced in the US. The local environment and local markets dictate the need for specialised or integrated approaches. Future study should aim to outline the scope of IMC in India while examining the socio-cultural aspect and prevalent marketing practices.