The Subtle Art of advertising liquor BY Sanjana Jose Varghese IIM Lucknow Have a break! Have a Kit-Kat! These words still posses the ability to spark fond memories of pure rich yummy chocolaty goodness. But not all advertisements that float around are this direct and innocent. Advertisements are meant to market a product to the public. Any company that seeks to make a mark in the retail space has to have an effective brand ad campaign.
The art of promoting a brand’s primary product through its secondary product is called surrogate advertising.
The Cable Television Networks (Regulation) Act of 1995 banned the direct promotion of cigarettes, tobacco products, wine, alcohol, liquor or other intoxicants. This decision was taken after an extensive research of the Remember the jingle “oh la la la la le O”?. For millions effects of cigarettes and liquor confirmed the adverse of Indians around the country this jingle instantly health and social effects, especially among the youngreminds them of the Kingfisher brand. Although the jin- sters. The increasing population ensured an exploding gle seemed to market innocent products like the brands demand for these substances, and whenever there is decalendar and bottled water. It’s impossible to not know mand the industry will supply. The alcohol and tobacco what the real Kingfisher product is Beer. This is called industry brought in around Rs. 22, 000 Cr as revenues surrogate advertising. to the Indian government
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last fiscal year. Addictive substances like tobacco and alcohol command high brand loyalty, whichever brand the consumer tries first is probably the one he or she would stick to for the rest of their life. Therefore to promote their products and brands companies had to get creative and they came up with an ingenious solution surrogate advertising. Where did it start? The first instance of surrogate advertisements was reported in Britain, where British housewives protested against the influence of alcohol advertisements on their husbands. The chief intention behind any advertisement is to build a relationship between the consumer and brand in order to instill brand loyalty to maintain longterm sales. The protests lead to liquor advertisements being pulled and alcohol & tobacco brands having to promote their products through soda and fruit juices. Since then surrogate advertising has come a long way, they now sponsor award, sport, and cultural shows. Ethics? Surrogate advertising has an emerging ethical issue as
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well. They use a complementary product such as club soda or mineral water to bring the brand name to consumers. Therefore the brand is subconsciously associated with the main product. While doing this is legal, advertising a complementary product with clear intentions of promoting a main product is a morally grey area to say the least. Anti-Competition?
Although a well intentioned law, there have been several unforeseen drawbacks, while established brands have the money and influence to run massive marketing campaigns, this has effectively closed the industry for smaller brands as they can’t compete with the marketing prowess of the titans. This has essentially lead to these markets being consolidated into the hands of very few companies. Another problem that rises is that these companies not only have to manufacture the items they intend to sell but also incur additional costs in producing the substitute items as well. Nevertheless, some surrogate products have become so successful that it has turned to a legitimized product under them such as Wills Life style by ITC.
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Bagpiper was likely the first company in India to come out with surrogate advertising, with its Bagpiper Soda. Kingfisher brought out its soda and also tried to create a Caribbean theme around it and that coupled with bottled water, music, calendar and cricket stars, the brand gained popularity. Budweiser partnered with Belgian Tomorrowland one of the largest international musical festivals, for three years, to present some exclusive music experiences to the music lovers. Royal Stag went out of their box, to launch a platform to showcase some short films by celebrated directors. Some of the other prominent examples include Smirnoff cassettes & CDs, Bagpiper soda and cassettes & CDs, Royal Challenge golf accessories and mineral water, McDowell’s cassettes & CDs, mineral water, and Seagram’s cassettes & CDs, mineral water and many more. One notable mention regarding surrogate advertising is when the former Union Health Minister Mr Anbumani Ramadoss challenged the name of Bangalore IPL cricket team “Royal Challengers”. This was a brazen attempt to promote the liquor brand “Royal Challenge”. On the other hand, the Supreme Court of India pointed out as the team was not named after the brand, the name would not have an effect on the non-drinker.
Agreed there are many health concerns surrounding the alcohol consumption, however targeting advertisements
to audiences that are young to realize these issues raises moral and ethical questions. Surrogate advertisements may have circumvent the ban by the Indian Government, however they don’t consider the moral impact and ethical values of the society. Therefore, surrogate advertisements need to be properly regulated as they challenge the purpose of the ban.
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Influencer Marketing
Recently, I noticed that one of my college juniors has started tagging e-commerce websites and cosmetics brands in her Instagram posts. I wondered if she has started modelling. Curiously, I checked her profile and noticed that she had approximately a thousand followers. Being a marketing enthusiast, it was a no-brainer for me: she is trying to become an influencer. So why has influencer marketing become the hottest trend in the world of brands? Marketers follow their (potential) customers everywhere. Soon, the customers start feeling that they have had enough of billboards and ads. Moreover, in a world crowded with brands, the traditional marketing techniques do not seem to be as effective as they used to be. A 2015 Neilson study shows that on an average only 25% of the ad viewers can correctly re-
BY Mahashweta IIM Lucknow
call the ad and the brand after a day [1]. This suggests that even after spending millions on increasing reach, brands may fail to leave a mark on the customers’ minds. People are more likely to pay attention to and believe something that comes from a trusted sourcesomeone who has a lifestyle similar to their own. Influencer marketing can be understood as a mix of celebrity endorsement, content-driven marketing and social media marketing. It is an evolved form of word-of-mouth marketing. Influencers are people who have a large following on internet and/or social media. They can be fashion bloggers, YouTubers, Instagram photographers, etc. Influencers are like grapevines: they connect brands to people and facilitate the information flow across the two parties. According to a survey by Association of National Advertisers, about 75% of companies are using in-
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Marque - The Marketing club, IIM Rohtak fluencer marketing in some way [2]. The survey also found that Facebook and Instagram were the two prominent channels for Influencer marketing, with Instagram being the most important one. The marketing firm Klear analysed 2,113,307 sponsored posts on Instagram and found that influencer marketing on Instagram grew by a whopping 39% in 2018 [3]. It was also found that approximately one in three sponsored posts were Instagram stories. Source: Klear’s State of Influencer Marketing Report 2019 Over time, influencers have become big-shots and some of them have also launched their own brands. KKW by Kim Kardashian West and Kylie Cosmetics by Kylie Jenner are two examples of influencer launched brands that are competing with established players in the market. Another example is Emma Chamberlain, a teenage YouTuber with more than 7m subscribers, who launched her own brand, High Key. Companies are trying to ride on this high tide by co-developing products with influencers. Johnson & Johnson launched C&C by Clean & Clear- targeted at Gen Z- with twin influencers Brooklyn and Bailey McKnight [4]. Big-name influencers often charge a lot of money and the returns, sometimes, are either small or take too long to materialize. Another troubling issue for marketers is fake followers. Unilever CMO Keith Weed said that as much as 40% of influencers are estimated to have bought followers at some point, knowingly or unknowingly [5]. No wonder many companies, including P&G and Unilever, have started paying influencers based on engagements (likes, shares, clicks) rather than followers. However, the real problem is that engagements can be faked too. Hence, brands like Johnson & Johnson are changing their strategy by targeting smaller-scale influencers, who offer better engaged reach to a smaller, targeted community [6]. Who knows, my college junior might just be the next in line! Influencer marketing can also be used for idea-testing [7]. We all have seen advertisements that backfired and left big holes in the companies’ pockets. To escape this disaster, brands can test their new theme/ concept on a much smaller audience through influencers. They can also gauge the consumer sentiments through comments and shares and then modify the campaign/message accordingly. In this hustle, companies need to carefully pick out the right influencers, based on what they have discussed/posted about and how they identify
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themselves. The next step is the creation of engaging content that can persuade the followers to use their products. For this, the company must have an idea of the makeup of followers. The content needs to be customised because the whole point of using influencer marketing is reaching to a relatively smaller community which shares similar interests. However, it is equally important to know where to stop this customization. The overall brand communication must remain the same across all customer touchpoints. Failing to do so can end up in dilution of the brand itself, which is as disastrous as a marketing campaign can get. While engagements are a straightforward metric to measure the impact of influencer content, brands can also look for other metrics, which are not direct and hence can be used as a guard against fake followers and bots. One such metric is the total time a visitor spends on the page, which is a measure of their engagement with the content [8]. Another metric is the frequency with which a customer repurchases the offering. Marketers have always eyed word-of-mouth marketing because of its strong as well as long-lasting impact. In comparison to this, influencer marketing provides a slightly diluted impact but to a larger audience. And it seems like this new buzzword is here to stay. According to a 2018 study, Instagram influencer marketing industry is estimated to become a $5-$10 billion market by 2020 [9]. So, while they are at it, the brands should also try and build a strong relationship with influencers so that they become natural brand advocates over time.
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Shifting of the consumer buying experience in the age of AR andBY VR Rajashree Chatterjee SIBM Pune
Consumers have long disliked multiple facets about offline shopping. For example dimly lit dressing rooms, insufficient information and pushy salespeople have deterred millennial shoppers from brickand-mortar stores in recent years. Customers now value a sense of community, engaging conversations and a touch of reassuring authenticity. Consumers resent being spoken down to and prefer having a voice. Today’s digital natives hate undeserved impositions on their time and attention and cease being active on social networks where they feel that they are targets for advertising. Thus brands have also evolved keeping in mind the need of the hour and the cornerstone for success - experiential marketing which positions the target audience as active participants. Recent trends in retail suggest that a majority of consumers have moved to digital and mobile platforms. Digital signage and the mobile revolution have taken over global consumption with augmented reality (AR) and virtual reality (VR) set to disrupt and transform shopping experiences of customers all over the world. These two technologies are speedily replacing the irritants and pain points of traditional retail with immersive and interactive experiences that inform and entertain custom-
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ers. According to a Goldman Sachs forecast the market for AR and VR in retail will reach $1.6 billion by 2025. Retail chains and shopping centers have started launching dedicated VR centres to lure customers in as customer conversions are very high through these mediums. VR is proving to be an apt fit for situations where the retailer wants the consumer to experience a specific environment, for example, behind the wheel of a car, while AR superimposes images over the user’s immediate surroundings like projecting a new ensemble on a likeness of the shopper standing in the store. Zara implements AR to help customers model clothes virtually, decide what looks good on them and buy in one click. Along with VR, augmented reality technology will also make a mark as it overlays digital items over real world objects (example: Pokemon Go and Snapchat Lenses) and is thus more accessible via a smartphone. Audi also launched its first fully functional VR app for customer engagement at dealer showrooms .The VR headset allows prospective buyers to configure and customise their dream car by selecting and superimposing extremely realistic minute
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details from a catalogue of several hundred million possible models and equipment variants. Audi’s VR app provides a pre-purchase immersive virtual experience via all-encompassing, detailed images. Prospective buyers can experience driving their configured Audi in three dimensions, 360 degrees along with light and sound in various natural settings like terrain and sunlight. Users can observe every detail of the interiors like the surface of the decorative inlays, from multiple angles. VR will provide a qualitatively superior experience of brand for customers. Car dealers might provide an immersive experience of a test drive simulation without the physical aspects like inventories at less than half the space of a traditional car showroom. It will enable them to fully demonstrate the entire range of the brand to a bigger set of customers without physical display. Moreover these ‘digitally enhanced’ showrooms have the potential to offer a more enriching complete experience for multiple customers simultaneously by integrating in-store, mobile and on-
line platforms, allowing them to research multiple vehicles, book test drives, obtain prices for their old conveyances, choose payment options, purchase and organize servicing of their cars all at one click. BMW has leveraged VR and AR technology in their showrooms to set up cars tours where prospective buyers are able to experience new car models and possible customizations. The BMW app allows users to select the interiors and exteriors, open doors and switch on lights. Infiniti was able to sign up 50% of the visitors at an auto expo for future communications by letting fans experience a virtual car ride. AR and VR can also be instrumental in ensuring safety and awareness via simulations. Toyota is exploring this aspect with their new driving simulator possessing Oculus Rift which uses VR technology to make people aware about dangers of distracted driving. Learners wear a VR headset which simulates roads by identifying pedestrians, parked cars, and oncoming traffic. It also simulates possible hazards like a car crash. Thus it trains beginners to
drive on city streets along with reducing chances of accident which could have happened due to learners failing to navigate properly. Even legacy organizations have started harnessing the potential of Augmented Reality and Virtual Reality. 175-year-old travel agent Thomas Cook has recently launched an immersive customer experience dubbed ‘Try Before You Fly’. Customers are encouraged to avail a VR headset to immerse themselves in hotels, resorts and beaches of their desired getaway places. Thus VR headsets have gained an edge over travel blogs like Tripadvisor as glossy photos and vivid descriptions can never replicate a virtual look and feel of the destination. The convergence between AR and VR is being leveraged by the ARKit app of IKEA to strengthen the interaction between consumers, brands, and media platforms. Customers now have the opportunity to try out a variety of virtual furniture in their homes via the ARKit app before making a purchase decision. If the piece complements their space, the app offers them the option to order on the spot and
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get it delivered to them. The famous colour chart of Dulux has evolved into the digital age via AR app to demonstrate to customers how personal spaces will look like when painted with certain shades. Maybelline has adopted a similar approach by launching a virtual nail polish testing campaign which increased social engagement with customers and at the same time conveyed insights to the brand about popular colours to manufacture and stock. With the recent launch of official AR development kits by Apple and Google, there will be a huge proliferation of AR apps in the retail space. Thus through immersive experiences, brands can offer customized mass experiences that encourage engagement while minimizing intrusion and maintaining privacy. Advertisers can thus earn the trust of consumers by demonstrating the maturity of understanding the art of communication. Customer attention is an intangible commodity that is to be earned and not taken. In the evolving digital landscape, it will be more common for an “advertisement” to genuinely delight and engage.
“Marketing is no longer abou you make, but about the sto tell.� -Seth Godin
ut the stuff ories you
#BUZZFEED
Surf Excel #RangLaayeSang campaign During Holi, Surf Excel launched a heart-warming TVC under ‘Daag acche hai’ series. The campaign features a young Hindu girl who chooses to get stained in Holi colours in order to protect her young Muslim friend who needs a bicycle ride to a nearby mosque. The campaign sends the message to bring people together. This campaign from Surf Excel beautifully captures how the colours of Holi can be a force for good, melting differences and bringing people together. It seamlessly brings to life the decade long ‘Dirt is Good’ philosophy – ‘Agar kuch accha karne mein daag lag jaaye, toh daag acche hain’ On YouTube this campaign has more than 1 Cr. views. Surf Excel has always done well to capture the innocence and playfulness of kids.
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TGBL has approached key shareholders of Hector Beverages with a proposal to buy out the company along with its popular brand Paper Boat to spice up its portfolio. Even though a formal approach has been made, the talks around Paper Boat are still at an exploratory stage and there is still no guarantee that it will lead to a transaction. However, Kakkar has categorically denied any discussion with Tata Global Beverages or a possible sale. Paper Boat, if the Tatas buy it, will be a big break in the long narrative of western cultural dominance when tea and coffee were trendier than desi drinks which were confined mostly to kitchens except a few such Rooh Afza. If Paper Boat is deemed fit to sit with Starbucks and Tetley in the Tata Global Beverages’ portfolio, it sure is a signal that ethnic drinks have become upmarket—thanks to the stupendous success of Patanjali Ayurved
Lloyd’s latest campaign featuring DeepVeer
Lloyd Air Conditioner’s latest TVC “Khayal Rakhenge, Khush Rakhenge” highlights its innovative technology. It’s a 360 degree launch across all platforms. The film is conceptualised by Mullen Lintas. It features the powerful Bollywood couple Deepika Padukone and Ranveer Singh. By using them the brand wants youth to relate to it. By using them they are targeting young couples as the main segment and want them to use the Lloyd’s air conditioners. The brand wanted a real-life couple who could resonate with the brand’s values. Being young, versatile and performance-oriented, they seemed a perfect match.
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Royal Challenge Sports Drink launches #ChallengeAccepted
Royal Challenge Sports Drink launched #ChallengeAccepted, a campaign conceptualized by DDB Mudra Group that challenges gender-based stereotypes in cricket and features Mithali Raj, Harmanpreet Kaur, Veda Krishnamurthy and Virat Kohli. Through this campaign they want to showcase a world of equality that will lead to a better tomorrow both on and off the field. The film asks the fans to accept the challenge to break the barriers in their mind and to see men and women’s Cricket as one game and one team which is not divided by gender. According to Virat Kohli “Equality in sports is ultimately a reflection of equality in life and if we want a better tomorrow then we need to say #ChallengeAccepted and start breaking down all stereotypes.” This campaign challenges the world to move towards a more progressive and inclusive space for women, in sports and life.
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#BUZZFEED Personalisation: The New Era of
Cadbury Dairy Milk welcomes Australian Marketing cricketers Steve Smith and David Warner Personalised marketing for fitting of on at its least oneproposition parts of the Banking on the brand’s themeadvocates of generosity and building strong of association’s advertising blendIndia to the individual Personalised mar‘Kuchh Meetha Ho Jaaye,’ Mondelez extended a warmclient. welcome to Australian cricketers Steve Smithan and David Warner. Ogilvy Mumbai, in collaboration Ogilvy of Melketing shows extraordinary division, with an objectivewith section size bourne, strategically rolled out hoardings announcing, ‘Welcome back Steve and Dave’ in one. There are two types of one-to one marketing: personalization and Jaipur, Hyderabad and Kolkata to give the two men a very unexpected and heart-warming customization. is thethey point firm chooses, welcome back into Personalization cricket. With this gesture, wishattowhich remindthe all the consumers to be more inclusive theirof thoughts and actions. It was client a toughinformation, time for both the cricketers generally in in light beforehand gathered what marafter the ball tampering scandal and through the initiative the brand wants to convey the keting blend is appropriate for the person. A decent illustration is Ammessage that offering a second chance without judgement or righteousness is one of the azon.com’s and music suggestions. Amazon utilizes most generouscustomized things anyonebook can do. cooperative sifting to figure out what music or books to prescribe to its customers. Systems of large-scale manufacturing, beliefs of standardization, working on efficiencies, and the one-measure fits-all creation mind-
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CAUSE RELATED MARKETING: A Win-Win Situation BY Shubhdeep Singh LMTSOM
Cause related marketing (CRM) is defined as an activity of promoting an organization in which a societal and charitable cost is being endorsed, commonly with its products and services as a bundle. CRM has evolved as a marketing strategy utilized by business to form a partnership for mutual benefit with a charity organisation or a good cause (Pringle & Thompson, 1999).The process of formulating and implementing marketing activities that are characterised by an offer from the firm to contribute a specified amount to a des-
ignated cause when customers engage in revenue-producing exchanges that satisfy organisational and individual objectives (Varadarajan & Menon, 1988). Today, In Indian advertisements, we can see a few brands drawing themselves in promoting cause. Other than focusing on social responsibilities, the marketers are implementing cause related marketing with broader commercial motives. There
are several instances of Indian brands particularly in FMCG division, which are running fruitful CRM activities. Their commitment to the reason can be of fiscal esteem like through donations or they can likewise create attention to fundamental reasons for national significance. Several brands donate a part of their sales to campaign. They are known as, “Transactional Programmes”. For example: • Procter and Gamble started its campaign “Shiksha” in 2005 in India, in association with Sony Entertainment Television and Child Rights and You (CRY), which aims to educate the children in India; with the slogan “Padhega India, tabhee toh badhega India”. It has made a total donation of Rs. 22 crores, since its inception. This is the result of the support of the customers who participated in the campaign by purchasing P&G brands for one fourth of the year, subsequently enabling P&G to contribute a part of their sales towards the cause. • “Chhotte Kadam Pragati Ki Aur” is an initiative began in 2012, a bottle of Nihar Shanti Amla is sold, 2% of all returns is contributed to the education of children in partnership with NGO Child Rights and You (CRY) India. • Unilever’s Domex Toilet Academy (DTA) campaign which started in 2013, seeks to build toilets in areas facing the problem of open defecation. For every consumer who clicks on the DTA website,
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Unilever contributes 5 Rupees towards the construction of toilets. Many brands adopt CRM initiatives by promoting and generating awareness
towards the cause without supporting towards the cause financially. They are known as, “Propaganda Programmes”. For example: • Tata Tea worked with Commonwealth Human Rights Initiative for the campaign name “Jaago re!!” (Wake up!). The campaign supports voting, anti-corruption drive and other social causes. In the year 2007, “Jaago Re” launched its very first campaign with an aim to “awaken” the entire nation to participate in the functioning of the country’s politics by voting. • Vistara partnered with the Salaam Baalak trust – a non-profit and non-governmental organization that provides support to street children of Delhi and Mumbai, to fly 12 kids on its first flight ever in January, 2015. The kids aged between 7 and 12 years were boarded first following other passengers and their absolute joy of flying for the first time was captured in a two-minute film titled, “When little feet found their wings with Vistara “#FlyTheNewFeeling.” • Hindustan Unilever’s campaign for Lifebuoy which started in 2013, the soap brand that has been an active proponent
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of hand washing with soap, kick started a movement “Help a child reach 5” to instil hygienic hand washing behaviour in schools and villages. Various benefits of cause related marketing areas follows: • It helps in attracting new customers. • It also helps in increasing sales of products and services by creating a positive name in the market. • It helps in raising funds for a social cause. • It also helps in creating a positive brand image in the market. • It helps in increasing consumer par-
ticipation towards the social cause. In Today’s ever growing competitive scenario Cause Related Marketing has become one of the fastest growing forms of marketing as it proves to be a “win-winwin” situation for businesses, non-profit organizations, and even for consumers. Customers not only want a product or a service; but they also expect a value that goes beyond quality of the product or service, in the area of social responsibility. Customers are moving towards those companies that are responsible towards society. Thus, it can be stated that cause related marketing is a win-win for all.
The Current Trends in Marketing Automation and the Future Possibilities
BY Varshika Verma National Insurance Academy
As businesses are making a leap towards agility, the use of marketing technology has only gained traction. Thousands of entrepreneurs have seen their business pattern change after they embraced the marketing automation. Due to this now they could save time, judiciously spend their money and scale their businesses. It’s not only the large organizations that are leveraging this boon, but the businesses of all the sizes swear by the benefits of marketing automation. The big data is here and it’s only through the marketing automation that organizations can use it to reap the desired results in the businesses. It’s pivotal for the business owners to stay abreast of the latest trends in the emerging domain. To help them do so, here’s all they need to know
about where marketing automation is heading in 2019 with future possibilities: Personalized Customer Journeys Personalization will always be the doorway to digital marketing success. It’s no longer just a matter of competitive advantage but about customer expectations. But marketing automation in 2019 has to take it a notch higher, helping organizations to approach their prospects in a much consumer-centric fashion. This is the time to foster meaningful relationships with consumers through Omni channel experiences. Relevant data in your CRM Customer relationship management (CRM) is a term that refers to practices, strategies and technologies that companies used to manage and analyze customer
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interactions and data through the customer lifecycle, with the goal of improving business relationship with the customers, assisting in customer retention and driving sales growth. CRM systems are designed to compile information related to customers across different channels- or point of contact between the customer and the company which could include company’s websites, marketing material, direct mail, social media etc. CRM systems can also give customer facing staff an insight about detailed data on customer’s personal information, purchase history, buying preferences and concern. The rise of AI and chat bots There’s lot of buzz around that artificial
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Predictive lead scoring Marketing automation tools are capable of analyzing a range of factors like behavioral data, demographics, blog posts and social information relating to their business. It then assigns a score to their business to predict if a lead is qualified or not. This helps businesses in content creation as they can share information that’s most relevant to their audience. Businesses can now use Marketing automation tools to direct their prospects to the right conver-
sion track and craft a fulfilling customer journey. Voice search Last but not least, voice search is predicted to become the next big communication channel for messages sent through marintelligence tools, and their sister chat bots keting automation. A large chunk of B2B will take over the world. Is there any pos- marketers is already leveraging voice-acsibility of happening such events in the fu- tivated personal assistants. The use of this ture? Perhaps yes, they will do so to some technology is going to escalate in 2019, extent. The use of AI and chat bots in and it’s certainly going to take marketing providing prompt and effective service is automation to a new level. already prominent. But the trend indicates As closing thought, it can be said that that they will also be used increasingly for marketing automation is more than just a lead generation where they will automate bunch of tools that automate advertising. a number of CRM tasks. So, organizations Whether it’s the Indian market or global should consider investing in these techmarkets, marketing automation is surely nologies to catapult their business into the transforming businesses by freeing them future. from the mundane, time-consuming processes.
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DISCLAIMER: The views and opinions expressed in this magazine are those of the author and do not necessarily reflect the opinion of the stake holders of IIM Rohtak EDITOR : Sai Jagtap DESIGN :Abha Goyal FOLLOW US ON :