Marque, The Marketing Club- August Edition by Marketing Club

FROM THE EDITOR I am glad that the marketing club got the opportunity to use its monthly magazine as a platform for all the young marketing enthusiasts who are curious to let out their views on various topics. It gives me immense pleasure to write this message as Editor of this unique edition of the magazine. The theme of August’s edition revolves around the usage of technology and brand advocacy in marketing. The theme gives a sneak peek into the marketing practices of the new age. This edition has a lot under its umbrella, from bringing forward augmented and virtual reality, neuromarketing, and a blend of practices that have evolved for the modern consumers, with an understanding of branding. I extend my warmest gratitude to all the authors for their interest, enthusiasm, and well-documented submissions of excellent articles and participation in this magazine’s building. I firmly believe that no matter how your magazine is delivered; either at your doorstep or to your computer, printed on glossy stock or on cheap tabloid paper, appearing on your iPad or your cell phone screen, it is still the work of an editorial team for a discerning audience, a beautiful and meaningful (we hope) package of ideas, words and images put together by a group of experts for its readers. While technology efficiently delivers new stories to our desktops, laptops, and mobile devices, magazines are all about context – how ideas and images are presented in relation to one another and spanning a broader perspective. We, the editors, will always strive to keep you engaged.

CONTENTS 01 Augmented and Virtual Reality: Bolder in Promises and Stronger in Marketing

05 Neuromarketing: ow your Brain responds to Branding?

09 How big of a “Name” do you need to win a game?

11 Buzzfeed 15 Marketing Nudge 17 Marquing The Moments

Augmented and Virtual Reality— Bolder in Promises and Stronger in Marketing Attiso Bhowmick University of Agricultural Sciences, Bangalore Introduction With big promises virtual environments have flourished since the last decade to elicit an immersive consumer experience. Businesses have played a key role to fuel its positive growth trajectory for its inherent potential in commercial applications, especially in marketing. According to Statista (2021), the AR and VR market size worldwide is expected to grow by CAGR 76.34 % from USD 30.7 in 2021 billion to USD 296.9 billion 2024. A plethora of research available highlights the ability of virtual reality to stimulate the consumer’s product and brand perception by effectively employing concepts of attachment, identify and engagement with the virtual objects. All the AR and VR technologies in marketing work on the SOR (stimuli-organisms-response) framework model to influence the targeted consumer’s cognitive states, resulting in the expected behavioural outcomes (e.g.: intention to purchase, revisit, etc.).

Market Analysis of AR & VR Technology: How much of it is utilized for Marketing? The cascading effects of rapid digitization, pandemic, boom of online population and ubiquity of smartphones have expanded the application of VR beyond gaming consoles. According to Statista, Marketing applications of AR and VR is going to account for USD 1.6 billion in 2025. The market valuation is estimated to be USD 17.25 billion in 2020 (Mordor Intelligence). Apart from the major players like Oculus VR LLC, Sony Corporation and Samsung Electronics Co. Ltd., the competitive landscape of this market is fragmented with newer companies with newer contracts and untapped new markets, like healthcare and education.

Use of AR and VR for Marketing Marketing is always driven by the consumers demand for a better experience.

In the new state of affairs when technological advances are disrupting every sector, a failure to ameliorate the marketing techniques can serve as a potential competitive disadvantage for businesses. AR and VR-based marketing strategy proves effective as research has shown that 72 % of shoppers have the tendency to purchase items which they had not previously intended because of this advantage offered by augmented reality. Concrete advantages of AR and VR can be deduced from its technological implications which include better cost-effectiveness, an offer of real-life experiences often remotely, zero contact which is stressed during the pandemic, employment of lesser employees to manage store inventory and an endless data driven inventory which follows specific algorithm to align itself to consumer’s preferences. A report published by Mobile Marketer however revealed that only 1 % of retail marketers are currently using this technology. Why is it so? The initial time and financial investments involved. Data from telecom services show that internet penetration in India is still in its early stages in many developing countries including India. The last rational argument can be attributed to the fact that a complex environment of VR can appear as too complicated to certain demographics who are low in technophilic spectrum, for example the boomers. Virtual reality however offers far more information on scientific consumer behaviour prediction by working on a lot of variables which a bland 2D survey or analytics cannot theoretically thus prioritizing better marketing strategies like 3D avatars, product recommendations with minute detailed customizations, and so on.

E-commerce Augmented Reality Applications— Minimizing Returns The concept of mobile AR assisted by the smartphones has prospects in marketing as a manipulative tool to enhance the presentation of data and information, thus ensuring better collaboration with the consumers and troubleshooting uncertainties. These uncertainties are always present and are one of the factors responsible for the disparity between lead generation and actual sales. According to market intelligence agency Invesp, an average of 30 % of all products ordered online are returned by the buyers. This incurs significant logistics costs to retrieve. The graph below depicts consumer behaviour when it comes to online purchase. Apparels (56%) and jewellery (30%) constitute the maximum returns. Specific reasons like “do not match the item as shown” and “not liking the item” are actually quite common and widespread. The experience to try on the products is missing in online shopping. Augmented reality can supplement this missing experience that lets the consumer virtually try on the products, which can result in better consumer decisions and decreases the likelihood of returns. The overhead costs of logistics involved in the returns can be thus reduced. Since, most online retailers command significant web traffic from smartphone users, small and compact AR applications help the customers better refine their choices before purchase, thus eliminating needless purchases.

Current Scenario Amazon has patented a smart mirror, that lets the user use apparels and makeup without trying them on. These mirrors called the AR Mirrors, are increasing used by famous apparel and makeup brands to deliver better shopping experience for the customers. For instance, Timberland is using Kinect Technology (the same used in Microsoft Xbox) to create a virtual fitting room, thus increasing the foot traffic of their stores. An analyst brief by 451 Research accentuated that 56 % of consumers who left a target store, complained of long lines to try on the products. The technological solution to this is AR mirrors. Customers can easily stand in front of the mirrors and select what they want to wear, let alone try out different outfits and search appropriate sizes. A virtual inventory ensures better chances that the consumer will find what he or she is exactly looking for.

Final thoughts The above innovation, although only a tip of the iceberg, effectively underscores how the interlacing of technology can make marketing can offer a new experience for the potential leads. In the highly plastic marketing landscape, digitisation is sure to cause continuous ripples, to which companies and businesses need to continuously adjust. As an important fact the participative dimension of the virtual environment does not fail to raise the questions of the degree and modalities of the marketer’s intervention. Although VR innovations in retails seem to be the prerogative of a technophile minority, it is expected that the accelerated digital revolution will compel their widespread usage. The era of blurred boundaries is sure to become more common in the near future with the evolution of hybrid marketing strategies that deploy both the real and surreal.

NEUROMARKETING: HOW YOUR BRAIN RESPONDS TO BRANDING? Sonali Saraswat KJ Somaiya Institute of Management

In this digital era, where everything seems to be online (thanks to the novel coronavirus too!) it just takes 50 milliseconds to scan through and either like or dislike a person’s website or the content of website. It’s just a matter of those .05 fraction of seconds that decides the stranger to be a visitor bouncer or a customer. So, how these crucial, snap decisions are made? In fact according to the author and Harvard professor Gerald Zaltman, 95% of our purchasing decisions are subconscious. For brands , it also means that most of the time and money that is spent on content, logos, sponsorships ,advertising just comprise of 5% of our decision making process. To tap with the other 95% decision process, the concept of neuromarketing comes into picture. “Neuromarketing loosely refers to the measurement of physiological and neural signals to gain insight into customers’ preferences, motivations and decisions, which can help in creative advertising, product development, pricing and other marketing areas.”

It is how the body and brain respond to marketing stimuli. The field of commercial marketing, sometimes known as consumer neuroscience, studies the brain to predict and potentially change its choices and decisions. It involves brain imaging and scanning to see how people respond to different choices, packaging, advertising, pricing too. Neuromarketing makes sure that the customer is subconsciously reacting to a certain brand in ways that will have a big influence on their decision to buy things that their conscious mind is totally unaware of. The exploration of neural circuits aimed at identifying a preference towards a brand has been the centre of research that is making neuromarketing better known. It is a mixture of neuroscience and marketing that helps in connecting emotionally with people and analyse consumer behaviors. It all sounds mind –blowing and fascinating: because that’s what it is!

HOW DOES NEUROMARKETING WORK? Neuromarketing mainly uses two methods to track brain activity1. Functional magnetic resonance imaging (MRI) 2. Electroencephalography (EEG) Both these tools, though expensive, are an efficient way to get detailed emotional responses from customers, their level of engagement in buying or selling a product, their confusion in buying a certain product. Some neuromarketing methods draw from current user experience and includes techniques like eye tracking, response time, electro dermal activities and many more. It includes culmination of positive and negative response through emotional appeal that helps users to make a decision and thus affecting the branding phenomenon. It works on basic principle that deeper understanding and empathy for consumers will enable to predict their behaviour more accurately and deliver the best possible experiences.

COMPANIES THAT KEEP CUSTOMERS NEUROLOGICALLY HOOKED: 1. HYUNDAI: Hyundai and their prototype tests are one famous case regarding usage of neuromarketing in design. It uses EEG technique to evaluate design. It uses EEG to understand preferences and what kind of simulation that can lead to purchase decision.

HOW BRAIN ACTIVITY DRIVES CONSUMER BEHAVIOUR? Companies want to see and acknowledge how emotional response and memories associated with any person can drive a sales strategy or as a matter of fact can be an imperative part of brand growth. It is the idea that all human feelings, thoughts, actions and even consciousness itself –are just the products of the neural activity of the brain. To see what our brains are thinking and feeling, neuromarketing: • Tracks eye movement of what grabs attention •Uses EEG brain imaging to gauge emotional responses •Looks at MRI scans to see what ads, visuals, and features of the product generate the most activity in certain areas of the brand. Doing all this helps to tap into a customer’s subconscious response and making it easier for companies to adopt different marketing techniques up to satisfaction. It uses different insights from social phycology, behavioural economics and neuroscience.

connection with the people and emotional touch. The supreme proof of Apple’s neurological connectivity is that it succeeds at satisfying all of the major consumer value shifts. It has simply moved beyond emotional response, touching the neuro response. Hardly, we can see any mortal not having a desire to hold this legacy. It’s all in the brand value that is connected to people emotionally that is reflected in every decision the company make to retain itself in market. Be it its new phone launch, MacBook launch numbers do speak for themselves.

2. FRITO-LAY: The one brand which wanted to maximize its reach to women .Their research using fMRI revealed that shiny packaging stimulated the area of the brain that produces feeling of guilt and shame. This insight helped them switch to matte designs from shiny ones, increasing their sales drastically. 3. APPLE: The best example of neuromarketing has been displayed by apple continuously over the decades. Be it the launch of new version of IPhone, MacBook it has always made a point to make a

4.MICROSOFT: Microsoft uses EEG data to better understand its users’ interactions with its personal and laptop computers, including feelings of “surprise, satisfaction, frustration”. There are ample other examples where neuromarketing has paved to not only growth in market but increased the revenue of the firms too.

5.PEPSI &COCA-COLA: Everybody is known to the wide blind test challenge inducted to identify for coca cola or Pepsi as the most favourable drink. They used fMRI scanners to develop scientific studies that enables to decide why people preferred Pepsi over the blind test paving way to neurmarketing.

Over the years this field has emerged to be the most promising one in terms of demonstrating its potential to create value for marketers. With an exponentially deeper understanding of consumer’s needs, preferences, choices, desires, behaviour, it’s hard to overestimate the competitive advantage afforded by this new dimension of customer insight. It is much bigger than just creating catchy ads and compelling cues. Insights gained into human behaviour can be applied across the organization, from achieving executive alignment to stronger cross function communication and collaboration to improve customer experience. Creating exceptional emotional experiences that are performed on an unprecented scale and that aligns with customer satisfaction and ideologies –that’s the potential of neuromarketing in the next usher generation.

How big of a “Name” do you need to win the game? Vanshika Bhatotia Shri Ram College of Commerce, Delhi University How big of a “Name” do you need to win the game? “People do not buy goods and services. Instead, they buy relations, stories, and magic.” Influencer marketing has undoubtedly been a gold rush for both companies and influencers. It has always been at the core of any marketing plan, to find, harness, and then using it to achieve the objectives. Go to Instagram, Twitter, or YouTube, and one can see a slew of advertising for various products and services. Although some are typical “paid social” or banner ads, the majority are created by ordinary individuals. They are known as influencers, and they are a growing trend. Influencer Marketing has proliferated over the past few years and marketers are leveraging influencers to increase brand awareness more so than ever.

A micro-influencer caters to a smaller narrow audience and can benefit a brand by providing access to a tiny fraction of a specified market interested in a brand’s product or service. Because of their capacity to build an authentic relationship with their audience as actual individuals, micro-influencers can perfectly fit the spot as modern consumers search for user-generated evaluations or one-on-one suggestions.

For an average person, real people and their stories are considerably more relatable. According to a recent survey, 82 percent of customers are ‘highly inclined’ to adopt a micro-influencer’s advice. Why? Because they have created a relationship with their followers based on trust, friendship, and honesty. The fact that anybody inclined to suggest a product will do so based on their own user experience lends credibility to the recommendation. Because these Big businesses used to rely on celebrity endorse- micro-influencers are specialists in their field, their recommendations have weight. Influencers are also ments to enhance their reputation and reach a seen as genuine individuals who are more likely to wider audience. From George Clooney sipping use a product or service before promoting it to othcoffee to Kim Kardashian endorsing a new ers. The alignment of ideals and relevance to their cosmetics line, celebrity endorsement has long been a target for marketers looking to capitalize target audience are essential aspects that contribute on a loyal following. It is easy to say why. It was to the trust factor. a simple solution for any new or existing comThe fact that micro-influencers have fewer followers pany to break new ground with millions of followers on their social media channels. However, means that the number of people who see sponsored material is reduced. However, the engagement and this tendency has stalled, and businesses seek conversion rates of a micro-influencer’s followers people with considerably smaller social media are generally more excellent since people trust the followings. While big-name influencers such individual and are more inclined to remark and paras Kim Kardashian used to be the only choice, ticipate, as well as, most importantly, click the “buy” we now live in an era where micro-influencers button. According to Social Bakers, micro-influencreign supreme. ers have a “60% higher engagement rate than macro-influencers.” Micro-influencers also have a 20% A micro-influencer, as the name implies, has a small following. They have better ties with their higher conversion rate, which may help companies increase their e-commerce sales. followers based on knowledge and trust.

Celebrities excel at one thing: attracting a large audience’s attention. However, for the sake of marketing, this audience is not always of good quality. Micro-influencers have a considerably narrower focus with a niche market. For example, someone may be interested in an independent fashion, while another may like driving fast cars (and showcasing their accessories). People who follow these influencers on social media usually have a personal connection to them or appreciate the material in that field. As a result, advertisers may get their businesses in front of consumers who are more inclined to buy with this enhanced audience targeting.

Zara’s #DearSouthAfrica campaign succeeded in generating online discussions that reached over 6 million people worldwide - all only one day before the online shop launched. In addition, Zara’s clever use of micro-influencers during the campaign not only resulted in a high degree of brand recognition for the company, but it also allowed the brand to reach a broader audience than they would have been able to reach if they had utilized macro-influencers instead.

Gone are the days when platforms with 1 million followers meant a guaranteed return for advertisers. When it comes to influencers, leading brands are thinking small. They are turning to micro-influencHow did Zara see Success with Micro-Influencer ers—real people with real influence. The micro-influencer appears to be the future of marketing, with Marketing? fewer costs and more positive impacts. Marketers must be mindful of the practicalities and potential Zara was the #1 trending name internationally dangers of a micro-influencer marketing plan in just one day before their South African online the future. Micro-influencers might be the key to shop debut, without the use of celebrities or a more prosperous and happy year for any busimacro-influencers. Why? Because of the power ness regarding brand recognition, authenticity, and of influencers. cost-effectiveness. It is the next big thing because it can compel peer-to-peer action in ways traditional Many Twitter users commended Zara, a multinational fashion company, for going against the celebrity endorsements or traditional content methods cannot. grain with the #DearSouthAfrica campaign by Small is the new Big! engaging micro-influencers.

#BUZZFEED #BUZZFEED

The SabyasachixH&M meme fest Zomato offers Rs. 25 lakh for consumer created ad

Sabyasachi Mukherjee, India’s iconic designer, launched a new collection in collaboration with H&M. Sabyasachi is known for designing high-end Indian clothing, such as lehengas and sarees. A widespread joke among Indian girls is that they won’t marry unless they get to wear a Sabyasachi lehenga.

Zomato is proof that theyascan criticism intoitsa designs super innovative campaign. After conThe collaboration came an turn attempt to make affordable.marketing The Sabyasachi H&M collaborasumers. After consumers expressed their growing boredom with Zomato’s monotonous YouTube and tion-themed “Wanderlust” was set to represent rich textiles in modern and classic Indian silhouettes. TV some users took to socialfashion media to criticizefor Zomato’s butter chicken ad. However, Zoamto Theads, collection offers a complete wardrobe men and women, including accessories, jewelry, seems to have played its cards well by coming up with a smart idea to help it come up with fun cam-sofootwear and sunglasses. However it was met with differing opinions, with some netizens flooding paigns whilewith engaging with cial media memes andtheir jokescustomers. about the new collection. Some even comparing the men’s clothing pieces to an autowala’s attire. The firm went all out, proclaiming that the ads do suck. So now, it has opened the floor for creative ideas from What was commendable apart from themarketing novel idea,for they also shared While the customers. rest have differing opinions and evenwas see that, the trolling as free Sabyasachi’s the feeling with their customers that made them win many hearts. H&M collection. As it was reported that the collection sold out within minutes of going live. Others are even questioning the price sensitive lot for turning a blind eye to unsustainable means.

#BUZZFEED

Moment marketing’s moment of truth, with Sindhu mulling legal action The success of Indian athletes at the Tokyo Olympics has provided brands with the ideal opportunity for “moment marketing.” However, with the sports marketing firm that represents two-time Olympic medalist P V Sindhu criticising brands for using her name and image in posts and advertisements without her permission, the question of marketing ethics has been raised, even when it is part of the jovial mood in an athlete’s moment of victory. PV Sindhu and her agency Baseline Ventures is now taking over 20 brands to court for using her image and name for moment-marketing, without her consent or proper permissions. The agency is seeking damages of Rs 5 crore from each of the brands. In wake of the incident, advertising experts advise caution on both sides; advising that businesses should not exploit a celebrity’s accomplishments for commercial gain and that celebrities should not be skeptical of ads. Legal experts, on the other hand, point out that there are set norms and limitations that firms should not cross.

#BUZZFEED

MARKETING NUDGE Kangna Saini IIMB

In a world where the competition has risen multifold, marketing is everything. However, while aggressive selling worked in the past, it is no longer an option today. Hard selling doesn’t sell in times like today. So how marketers attract customers then? What options do they have? Well! The answer is simple. They drive people to behave the way they want so subtly that we don’t even notice. It sounds insane, but that’s what Nudge Marketing is all about. It is a way to drive the psychology of individuals and help them make sound choices. In simpler words, a nudge is any tool that is easy to interpret, hard to avoid and can impact the consumer decision-making process. What are some kinds of nudges that exist? 1. The “aesthetics are everything” nudge: Ever noticed the soft lighting at an expensive cafe? The marketer is trying to attract customers with dim and romantic lighting and a more home-like expe-

rience because when they do that, customers feel relaxed, spend more, and not forget, tip more. 2. The “we’re in it together nudge” nudge: Human beings are social animals and love to be a part of the crowd. Marketers know that! So by telling consumers how others react to a particular product or service, they get them acting on it faster. “Amazon’s choice” or “bestseller” tags are some such examples. 3. The “competition” nudge: marketers often create a sense of scarcity in the consumer’s mind so that he values the product more. “Only 1 left”, “Offer valid till stock lasts,” we’ve all seen these hoardings. Here, the marketer is creating a FOMO and making us act urgently in a situation. (which in turn increases the chance of an irrational decision) And the list goes on… Now that we’ve seen what nudges are. There is one criticism that might pop up in your head. Why do nudges work at all? After all, we’re all rational beings. Well, it turns out we are not. We are irrational, and this irrationality is what drives most of our buying decisions. We often use tried and tested methods to take quicker actions (even if they were tried by someone else), marketers know this, and that is precisely where and how nudges come into picture.

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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 : Niribili, Priya, Thiviya DESIGN : Chetna FOLLOW US ON :