Marketing is the craft of linking the producers (or potential producers) of a product or service with customers, both existing

and potential. Some form of marketing arises naturally in all capitalist societies but is not limited to capitalist societies. Marketing techniques are also applied in politics, religion, personal affairs, and many other aspects of life. Marketing methods are informed by many of the social sciences, particularly psychology, sociology, and economics. Marketing research underpins these activities. Through advertising, it is also related to many of the creative arts. Successful marketers typically have a customer orientation or focus. OVERVIEW In popular usage, the term "marketing" refers to the promotion of products, especially advertising and branding. However, in professional usage the term has a wider meaning. It can be divided into four sections, often called the "four Ps," only one of which is promotion. They are:
Product

- The Product management aspect of marketing deals

with the specifications of the actual good or service, and how it relates to the end-user's needs and wants.
Pricing

- This refers to the process of setting a price for a This includes advertising, sales

product, including discounts.

Promotion

promotion,publicity, and personal selling, and refers to the

various methods of promoting the product, brand, or company.

Place

or distribution refers to how the product gets to the

customer; for example, point of sale placement or retailing. These four elements are often referred to as the marketing mix. A marketer will use these variables to craft a marketing plan. For a marketing plan to be successful, the mix of the four "p's" must reflect the wants and desires of the consumers in the target market. Trying to convince a market segment to buy something they don't want is extremely expensive and seldom successful. Marketers depend on marketing research to determine what consumers want and what they are willing to pay for. Marketers hope that this process will give them a sustainable competitive advantage. Marketing management is the practical application of this process. Some aspects of marketing, especially promotion, are the subject of criticisms.

Promotion Promotion involves disseminating information about a product, product line, brand, or company. It is comprised of four subcategories:
advertising personal sales

selling and public relations

promotion

publicity

The specification of these four variables creates a brand equity, positioning, competitive retaliations, or creation of a corporate image. Advertising Advertising is the paid promotion of goods, services, companies and ideas, by an identified sponsor. Marketers see advertising as part of an overall promotional strategy. HISTORY OF ADVERTISING In ancient times the most common form of advertising was by word of mouth. However, commercial messages were found in the ruins of Pompeii. As printing developed in the 15th and 16th century, the first steps towards modern advertising were taken. In the 17th century advertisements started to appear in weekly newspapers in England, and a century later advertising had become a popular thing. As the economy was expanding during the 19th century, the need for advertising grew at the same pace. In 1843 the first advertising agency was established by Volney Palmer in Philadelphia. At first the

agencies were just brokers for ad space in newspapers, but in the 20th century, advertising agencies started to take over responsibility for the content as well. ADVERTISING MEDIA Some commercial advertising media include: billboards, printed flyers, radio, cinema and television ads, web banners, skywriting, bus stop benches, magazines, newspapers, town criers, sides of buses, taxicab doors and roof mounts, musical stage shows, elastic bands on disposable diapers, stickers on apples in supermarkets, the opening section of streaming audio and video, and the backs of event tickets. Any place an "identified" sponsor pays to deliver their message through a medium is advertising. Covert advertising embedded in other entertainment media is known as product placement. The TV commercial is generally considered the most effective massmarket advertising format and this is reflected by the high prices TV networks charge for commercial airtime during popular TV events. The annual US Super Bowl football game is known as much for its commercial advertisements as for the game itself, and the average cost of a single thirty-second TV spot during this game has reached Rs 1 million (as of 2004). Advertising on the World Wide Web is a recent phenomenon. Prices of Web-based advertising space are dependent on the "relevance" of

the surrounding Web content. E-mail advertising is another recent phenomenon. Unsolicited E-mail advertising is known as "spam". Some companies have proposed to place messages or corporate logos on the side of booster rockets and the International Space Station. Controversy exists on the effectiveness of subliminal advertising (see mind control), and the pervasiveness of mass messages (see propaganda). Unpaid advertising (also called word of mouth advertising), can provide good exposure at minimal cost. Personal recommendations ("bring a friend", "sell it by zealot"), the unleashing of memes into the wild, or achieving the feat of equating a brand with a common noun ("Hoover" = "vacuum cleaner") -- these must provide the stuff of fantasy to the holder of an advertising budget. ADVERTISING OBJECTIVES The purpose of advertising is to stimulate demand for a product, service, or idea. Other factors influencing demand are price and substitutability. A major way advertising may stimulate demand is to create a brand franchise for a product. Kleenex, for example, can distinguish itself as a type of tissue. But, because it has successfully attained a brand franchise among consumers, it is frequently used as a generic term. One of the most successful firms to have achieved a brand franchise is Hoover, whose name was for a very long time synonymous with vacuum cleaner (and Dyson has subsequently

managed to achieve similar status, having moved into the Hoover market with a more sophisticated model of vacuum cleaner). A brand franchise can be established to a greater or lesser degree depending on product and market. In Texas, for example, it is common to hear people refer to any soft drink as a Coke, regardless of whether it is actually produced by Coca-Cola or not (the more accurate term would be 'cola'). A legal risk of the brand franchise is that the name can become so widely accepted that it becomes a generic term, and loses trademark protection. Examples include "escalator", "aspirin" and "mimeograph". Other objectives include short or long term increases in sales, market share, awareness, product information, and image improvement. ADVERTISING TECHNIQUES Advertisers use several recognizable techniques in order to better convince the public to buy a product. These may include:
Repetition:

Some advertisers concentrate on making sure their

product is widely recognized. To that end, they simply attempt to make the name remembered through repetition.
Bandwagon:

By implying that the product is widely used,

advertisers hope to convince potential buyers to "get on the bandwagon."

Testimonials:

Advertisers often attempt to promote the

superior quality of their product through the testimony of ordinary users, experts, or both. "Three out of four dentists

recommend..." This approach often involves an appeal to authority.

Pressure:

By attempting to make people choose quickly and

without long consideration, some advertisers hope to make rapid sales: "Buy now, before they're all gone!"
Association:

Advertisers often attempt to associate their The use of attractive similar models, imagery is picturesque common.

product with desirable things, in order to make it seem equally desirable. landscapes,
Advertising

and

other

"Buzzwords" with desired associations are also used. slogans like in the Benetton publicity campaign.
Controversy Subliminal

messages: It was feared that some advertisements

would present hidden messages, for example through brief flashed messages or the soundtrack, that would have a hypnotic effect on viewers ('Must buy car. Must buy car.') This is now generally discredited. PUBLIC SERVICE ADVERTISING The same advertising techniques used to promote commercial goods and services can be used to inform, educate and motivate the public about serious non-commercial issues, such as AIDS, energy conservation, and deforestation. Advertising, in its non-commercial guise, is a powerful educational tool capable of reaching and motivating large audiences. "Advertising justifies its existence when used in the public interest - it is much too

powerful a tool to use solely for commercial purposes." - Attributed to Howard Gossage by David Ogilvy Public service advertising, non-commercial advertising, public interest advertising, cause marketing, and social marketing are different terms for (or aspects of) the use of sophisticated advertising and marketing communications techniques (generally associated with commercial enterprise) on behalf of non-commercial, public interest issues and initiatives. Sales it often forms a separate grouping in a corporate structure, employing separate specialist operatives known as salesmen (singular: salesman or salesperson). The primary function of sales is to find and close leads, turning prospective customers into actual ones. From a marketing point of view, selling is one of the methods of promotion used by marketers. Other promotional techniques include advertising, sales promotion, publicity, and public relations. Moral strictures applied to marketeers often apply even more vigorously to those in sales. People selling second-hand cars, real estate often come in for particular disdain. Sellers of snake oil have become stock figures for mirth at their quackery: they merge with the category of the confidence trickster or the carny. The propensity of certain types of salespeople to treat customers badly can be attributed to greed, ignorance and game theory. Game theory says that if you play a zero-sum interaction only once without

iteration, treating your customer as an adversary is the optimal strategy for your success. However a cooperative strategy such as titfor-tat is best if ongoing dealings and interactions are expected. This insight is behind so-called consultative sales techniques which are used by Saturn to sell cars, as well as for most direct Business-toBusiness sales. Forms of selling include:
Direct

Sales - involving face-to-face contact

retail or consumer door-to-door or travelling business-to-business - human-mediated but with direct contact telephone or telesales mail-order web B2B, B2C EDI consignment multi-level sales agents (real estate, manufacturing)

Indirect

Electronic

Agency-based

Sales promotion Sales promotions are non-personal promotional efforts that are designed to have an immediate impact on sales. Sales promotion is media and non-media marketing communications employed for a predetermined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include:
coupons discounts contests point

and sales

of purchase displays

rebates

Sales promotions can be directed at either the customer, your sales staff, or distribution channel members (such as retailers). Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesalers are called trade sales promotions. CONSUMER SALES PROMOTION TECHNIQUES INCLUDE:
Price

deal: A temporary reduction in the price; this includes a deal: offers a brand at a lower price. Price reduction deal: The packaging offers a consumer a certain

happy hour
cents-off

may be a percentage marked on the package

price-pack

percentage more of the product for the same price (eg: 25% more free)

 Coupons:

coupons have become a standard mechanism for

sales promotions.
Free

Standing Insert (FSI). A coupon booklet is inserted into the couponing: Coupons are present at the shelf where the dispensers: On checkout the customer is given a

local newspaper for delivery

on-shelf

product is available.
checkout

coupon based on products purchased

on-line

couponing: Coupons are available on line. Consumers Consumers are offered money back if the receipt and The consumer is automatically

print them out and take them to the store.

Rebates:

packaging is mailed to the producer.

contests/sweepstakes/games:

entered into the event by purchasing the product.

Point-of-Sales

displays:

Aisle interrupter: A sign the juts into the aisle from the shelf Dangler: A sign that sways when a consumer walks by it Dump Bin: A bin full of products dumped inside Glorifier: A small stage that elevates a product above other products Wobbler: A sign that jiggles Lipstick Board: A board on which messages are written in crayon Necker: A coupon placed on the 'neck' of a bottle

Y.E.S unit: Your Extra Salesperson is a pull out fact sheet.

TRADE SALES PROMOTION TECHNIQUES INCLUDE:

Trade

Allowances: short term incentive offered to induce a Loader: An incentive given to induce a retailer to Contest: A contest to reward retailers that sell the most displays: Extra sales tools given to retailers

retailer to stock up on a product.

Dealer

purchase and display a product.

Trade

product
Point-of-purchase

to boost sales
Training

Programs: dealer employees are trained in selling the

product
Push

Money: also known as spiffs. An extra commission paid to

retailer employees to push products Publicity Publicity is closely related to public relations. Whereas public relations is the management of all communications between the firm and the general public, publicity is the management of product or brand related communications between the firm and the general public. It is primarily an informative activity (as opposed to a persuasive one), but its ultimate goal is to promote the companies products, services, or brands. A publicity plan is a planned program aimed at obtaining favorable press coverage for a companies products.

The most basic tool of the publicist is the press release, but other techniques include telephone press conferences, in-studio media tours, multi-component video news releases (VNR?s), newswire stories, and internet releases. For these releases to be used by the media, they must be of interest to the public ( or at least to the market segment that the media outlet is targeted to). The releases are often customized to match the media vehicle that they are being sent to. Getting noticed by the press is all about saying the right thing at the right time. A publicist is continuously asking what about you or your company will pique the reader's curiosity and make a good story? The most successful publicity releases are related to topics of current interest. These are referred to as marketing, promotion, public relations, publicity stunt Public relations Public relations (PR) is internal and external communication (use of symbols and symbolic acts) to inform or influence specific publics using writing, marketing, advertising, publicity, promotions, and special events. Some public relations specialists work as full-time employees of companies, politicians, nonprofit organizations, or governments; while others work for PR agencies or as freelance PR consultants that contract their services to clients (usually corporations, nonprofit organizations, wealthy individuals or other special interests) who pay for their expertise at keeping them in or out of the spotlight, according to the client's wishes. According to the Public Relations Society of America (PRSA), one of the profession's leading trade associations, public relations "has been

defined in many widely differing ways. ... [T]he earliest definitions emphasized the roles of press agentry and publicity since these were major elements from which modern public relations grew." More recently, the PR industry has pushed to redefine itself as a management function. Some critics of the industry refer to PR activities as the manufacturing of consent, the practice of public relations is often disparaged using terms such as "spin," and public relations practitioners are sometimes disparaged as "spin doctors" or "flacks." HISTORY The precursors to public relations can be found in the publicists who specialized in promoting circuses, theatrical performances, and other public spectacles. Many PR practitioners have also been recruited from the ranks of journalism and have used their understanding of the news media to ensure that their clients receive favorable media coverage. The First World War also helped stimulate the development of public relations as a profession. Many of the first PR professionals, including Ivy Lee, Edward Bernays, and Carl Byoir, got their start with the Committee for Public Information (also known as the Creel Committee), which organized publicity on behalf of U.S. objectives during World War I. Some historians regard Ivy Lee as the first real practitioner of public relations, but Edward Bernays is generally regarded today as the profession's founder.

Ivy Lee, who has been credited with developing the modern news release (also called a "press release"), espoused a philosophy consistent with what has sometimes been called the "two-way street" approach to public relations, in which PR consists of helping clients listen as well as communicate messages to their publics. In the words of the PRSA, "Public relations helps an organization and its publics adapt mutually to each other." In practice, however, Lee often engaged in one-way propagandizing on behalf of clients despised by the public, including robber baron John D. Rockefeller. His career ended in scandal, when the U.S. Congress held hearings to investigate his work on behalf of Nazi Germany in the years immediately preceding World War II. Bernays was the profession's first theorist. A nephew of Sigmund Freud, Bernays drew many of his ideas from Freud's theories about the irrational, unconscious motives that shape human behavior. Bernays authored several books, including Crystallizing Public Opinion (1923), Propaganda (1928), and The Engineering of Consent (1947). Bernays saw public relations as an "applied social science" that uses insights from psychology, sociology, and other disciplines to scientifically manage and manipulate the thinking and behavior of an irrational and "herdlike" public. "The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society," he wrote in Propaganda. "Those who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country."

One of Bernays' early clients was the tobacco industry. In 1929, he orchestrated a legendary publicity stunt aimed at persuading women to take up cigarette smoking, which was then considered unfeminine and inappropriate for women with any social standing. To counter this image, Bernays arranged for New York City debutantes to march in that year's Easter Day Parade, defiantly smoking cigarettes as a statement of rebellion against the norms of a male-dominated society. Photographs of what Bernays dubbed the "Torches of Liberty Brigade" were sent to newspapers, convincing many women to equate smoking with women's rights. Some women went so far as to demand membership in all-male smoking clubs, a highly controversial act at the time. THE INDUSTRY TODAY According to the U.S. statistics, public relations specialists held approximately 122,000 jobs in 1998, while there were approximately 485,000 advertising, marketing, and public relations managers working in all industries. Modern public relations uses a variety of techniques including opinion polling and focus groups to evaluate public opinion, combined with a variety of high-tech techniques for distributing information on behalf of their clients, including satellite feeds, the Internet, broadcast faxes, and database-driven phone banks to recruit supporters for a client's cause. The skills and techniques used to manage the public have also expanded over the years. Examples of the knowledge that may be required in the professional practice of public relations include

communication arts, psychology, social psychology, sociology, political science, economics, and the principles of management and ethics. Technical knowledge and skills are required for opinion research, public issues analysis, media relations, direct mail, institutional advertising, publications, film/video productions, special events, speeches, and presentations." Although public relations professionals are stereotypically seen as corporate servants, the reality is that almost any organization that has a stake in how it is portrayed in the media employs at least one PR manager. Large enough organizations may even have dedicated communications PR activities. A number of specialties exist within the field of public relations, including:
crisis

departments.

Government

agencies,

trade

associations, and other nonprofit organizations commonly carry out

management management management relations and labor relations PR (sometimes referred to as astroturf PR)

reputation issue

investor

grassroots

Also, many large agencies separate their work into area-specific "practices," while smaller agencies specialize in only one or a few:
foodservice healthcare technology

PR

PR PR

 public

affairs PR

...and others, depending on the agency. OFFSHOOTS OF PUBLIC RELATIONS There are disciplines with public relations functions that, though closely related to PR, have differing and unique characters and goals. MARKETING AND ADVERTISING While public relations generally tries to influence the public's perceptions and behavior in a variety of ways and arenas, marketing concentrates on influencing the public to buy goods and services. Advertising is an important tool for marketers, though not the only one. As in other areas of PR, publicity events are also used, and, if used correctly, generate enough "buzz" and free media coverage that would be impossible or impractical to replicate with a traditional advertisement. PROPAGANDA Propaganda is certainly an area of public relations, albeit a far less nuanced one. PR most often tries to convince the public of something using a wide array of intellectual and emotional tools, while propaganda usually relies on visceral emotions like love, fear, loyalty, prejudice, and others, to control a population. If the population can be convinced (as is often the case), so much the better for the propagandist, but achieving control is the primary objective of propaganda, with or without the audience's "hearts and minds." A few influential propaganda pieces include the film "Triumph des Willens" ("Triumph of the Will"), made by Nazi-era filmmaker Leni

Riefenstahl. It is widely considered the best propaganda film ever made, both for its effect on the German people and for its artistry. (Another influential piece of Nazi propaganda was the Protocols of the Elders of Zion, a fabricated book "discovered" by the Nazis that they claimed detailed a Jewish plot to take over the world. The "Protocols" were a major factor in whipping up anti-Semitic fervor in Germany.) On the American side of World War II were the Four Freedoms by Norman Rockwell, a series of four paintings that were meant to motivate Americans to fight to preserve four basic freedoms outlined in a speech by President Roosevelt: freedom of speech, freedom of worship, freedom from want, and freedom from fear. The "Why We Fight" films, produced by Frank Capra, were also influential. In the present day, there is a debate about whether the Michael Moore film "Fahrenheit 9/11" is a documentary or propaganda. The film's fact-based format leads some to label it a documentary, but its highly emotional approach echoes the fundamental methods of propaganda. AUDIENCES AND STAKEHOLDERS The most fundamental rule in public communications is to know who one's audience is, and to tailor every message to appeal to that audience. An "audience" can be a general, nationwide or worldwide audience, but it is more often a segment of a population. Marketers often refer to economy-driven "demographics," such as "white males 18-49," but

in public relations an audience is more fluid, being whoever the client wants to reach. For example, recent political audiences include "soccer moms" and "NASCAR dads." In addition to audiences, there are usually stakeholders, literally people who have a "stake" in a given issue. All audiences are stakeholders (or presumptive stakeholders), but not all stakeholders are audiences. For example, a charity commissions a PR agency to create an advertising campaign to raise money to find a cure for a disease. The charity and the people with the disease are stakeholders, but the audience is anyone who likely to donate money. Sometimes the interests of differing audiences and stakeholders common to a PR effort necessitate the creation of several distinct but still complementary messages. This is not always easy to do, and sometimes especially in politics a spokesperson or client says something to one audience that angers another audience or group of stakeholders. METHODS, TOOLS AND TACTICS GENERAL The Press Conference (Also called a "news conference") A press conference consists of someone speaking to the media at a predetermined time and place. Press conferences usually take place in a public or quasi-public place. Press conferences provide an excellent opportunity for speakers to control information and who gets it; depending on the circumstances,

speakers may hand-pick the journalists they invite to the conference instead of making themselves available to any journalist who wishes to attend. It is also assumed that the speaker will answer journalists' questions at a press conference, although they are of course not obligated to. However, someone who holds several press conferences on a topic (especially a scandal) will be asked questions by the press, regardless of whether they indicate they will entertain them, and the more conferences the person holds, the more aggressive the questioning may become. Therefore, it is in a speaker's interest to answer journalists' questions at a press conference to avoid appearing as if they have something to hide. But questions from reporters especially hostile reporters detracts from the control a speaker has over the information they give out. For even more control, but less interactivity, a person may choose to issue a press release. The Press Release (Also called a "news release") A press release is simply a written statement distributed to the media. It is a fundamental tool of PR work. The typical press release announces that the statement is "FOR IMMEDIATE RELEASE" across the top, and lists the issuing organization's media contacts directly below. The media contacts are the people that the release's issuer wants to make available to the media; for example, a press release about new scientific study will typically list the study's lead scientist as its media contact.

The text of the press release is usually (but not always) written as a news story, with an eye-catching headline and an article written in standard journalistic inverted pyramid style. This style is effective for reaching harried, and often skeptical journalists who rarely read entire releases. It also makes it easy for journalists to lift entire passages from a release and insert them into their own article. While this practice is frowned upon in newsrooms, journalism is a deadlinedriven industry, and it is not uncommon for reporters to occasionally copy or modify a line or two from a press release. PR practitioners, on the other hand, design releases to encourage as much "lifting" as possible, so in essence, the less professional a journalist is, the more successful the release is judged to be. The only time that journalists may copy from a press release in good conscience is if the release provides a direct quote, as in: Senator Smith said, "This is the most fiscally irresponsible bill that the Congress has passed since the Buy Everyone A Mercedes Act." In this case, a journalist may copy the quote verbatim into his or her story, although most reporters prefer to try soliciting an individual quote from the speaker before filing their story. The bottom of each release is usually marked with ### or -30- to signify the end of the text. Press releases are usually sent by fax to media outlets the issuer wishes to reach, but email is sometimes used too. A constantly updated web site with current press releases is . PRESS RELEASES ARE an ideal way for organizations to control the information they give to the media. Very often the information in a press release finds its way verbatim, or minimally altered, to print and

broadcast reports. If a media outlet reports that "John Doe said in a statement today that...", the "statement" was almost always a press release. However, because press releases reflect their issuer's preferred interpretation or packaging of a story, journalists are often skeptical of their contents. Of course, the level of skepticism, if any, depends on what the story is and who's telling it. Newsrooms receive so many press releases that, unless it is a story that the media are already paying attention to, a press release alone isn't always enough to catch a journalist's attention. The Publicity Event (Also called a publicity "stunt") "The Circuit" The "circuit" generally refers to the "talk show circuit." A PR spokesperson (or his/her client) "does the circuit" by being interviewed on television and radio talk shows with audiences that the client wishes to reach. Books and Other Writings Press Contacts, or 'The Rolodex' POLITICS AND CIVIL SOCIETY Defining Your Opponent Managing Language If a politician or organization can use an apt phrase in relation to an issue, such as in interviews or news releases, the news media will often repeat it verbatim, thus furthering the message.

"New Deal" became a description of President Franklin Roosevelt's anti-Depression economic plans, and "states' rights/state sovereignty" became near-code words for anti-civil rights legislation. Recent examples come almost solely from Republican politicians: "death tax" for estate tax, "racial preferences" for affirmative action, "faith-based" instead of religious, and several others. ENTERTAINMENT AND CELEBRITY Playing Up One's Weaknesses A famous saying goes "Any publicity is good publicity," and celebrities tend to be fans of this dictum. If a celebrity says or does something embarrassing, he or she will often turn it into a strength and make it part of his or her "image." Of course, this tactic is used just as much with favorable situations as much as with unfavorable ones. A current example involves the entertainer Jessica Simpson, who gained nationwide prominence when she wondered aloud on a reality show if "Chicken of the Sea"-brand tuna fish was actually chicken or tuna, garnering her a reputation for being slow-witted. But by the summer of 2004, she was being paid to endorse a brand of breath mints called "Liquid Ice." In the product's television commercial, Simpson replicates her earlier confusion by debating whether the mint is really liquid or ice. So although she was previously ridiculed, she (and her advisors) turned her nationwide embarrassment into a lucrative endorsement deal.

Ducking the Media Branching Out As Oscar Wilde is supposed to have said, the only thing worse than being talked about is not to be talked about at all. Many celebrities seem to take this truism to heart, because when their popularity (and income) wane, they take on new projects that attract media attention. Considering that a celebrity's celebrity is a brand unto itself, many celebrities are under constant pressure to "reinvent" themselves as a prophylactic against obscurity. A current trend among American celebrities is the transformation of musicians, comedians, and almost every other sort of performer into children's book authors. Madonna, Jay Leno, Billy Crystal, and several other celebrities have recently written children's books, accompanied by much media coverage. A more traditional way of branching out is the celebrity restaurant. This is especially common among professional athletes, whose time in the spotlight is often limited by the physical demands of their jobs. Basketball player Michael Jordan opened a restaurant in Chicago, Illinois, and singer Britney Spears opened an ill-fated eatery in New York which closed a few months later. Male celebrities like Tim Robbins, Sean Penn and Charlton Heston seem to gravitate toward politics, although some female celebrities, such as Susan Sarandon and Barbra Streisand, also become strong political voices. Younger female celebrities on the other hand are often drawn into the fashion world. Hotel heiress Paris Hilton recently announced that she was starting her own line of jewelry, and Jennifer Lopez has started a

line of clothing. And fading star Elizabeth Taylor launched a fragrance called "White Diamonds" several years ago, bringing renewed interest from the media. ETHICAL AND SOCIAL ISSUES Many of the techniques used by PR firms are drawn from the institutions and practices of democracy itself. Persuasion, advocacy, and education are instruments through which individuals and organizations are entitled to express themselves in a free society, and many public relations practitioners are engaged in practices that are widely considered as beneficial, such as publicizing scientific research, promoting charities, raising awareness of public health concerns and other issues in civil society. However, a number of strong criticisms of public relations have been made over the years. One of the most controversial practices in public relations is the use of front groups -- organizations that purport to serve a public cause while actually serving the interests of a client whose sponsorship may be obscured or concealed. The creation of front groups is an example of what PR practitioners sometimes term the third party technique -the art of "putting your words in someone else's mouth." PR Watch, a nonprofit organization that monitors deceptive PR activities, has published numerous examples of this technique in practice.

Cellular Telephony
The technology that gives a person the power to communicate anytime, anywhere - has spawned an entire industry in mobile telecommunication. Mobile telephones have become an integral part of the growth, success and efficiency of any business / economy. The most prevalent wireless standard in the world today, is GSM. The GSM Association (Global System for Mobile Communications) was instituted in 1987 to promote and expedite the adoption, development and deployment and evolution of the GSM standard for digital wireless communications. The GSM Association was formed as a result of a European Community agreement on the need to adopt common standards suitable for cross border European mobile communications. Starting off primarily as a European standard, the Groupe Speciale Mobile as it was then called, soon came to represent the Global System for Mobile Communications as it achieved the status of a world-wide standard. GSM is today, the world's leading digital standard accounting for 68.5% of the global digital wireless market. The Indian Government when considering the introduction of cellular services into the country, made a landmark decision to introduce the GSM standard, leapfrogging obsolescent technologies / standards. Although cellular licenses were made technology neutral in September 1999, all the private operators are presently offering only

GSM based mobile services. The new licensees for the 4th cellular licenses that were awarded in July 2001 too, have opted for GSM technology to offer their mobile services. Cellular Industry in India The Government of India recognizes that the provision of a worldclass telecommunications infrastructure and information is the key to rapid economic and social development of the country. It is critical not only for the development of the Information Technology industry, but also has widespread ramifications on the entire economy of the country. It is also anticipated that going forward, a major part of the GDP of the country would be contributed by this sector. Accordingly, it is of vital importance to the country that there be a comprehensive and forward looking telecommunications policy which creates an enabling framework for development of this industry. New Telecom Policy 1999 Telecommunications is now universally recognized as one of the prime movers of the modern economy; hence it's vital importance for a developing country like India. The availability of adequate infrastructure facilities is critical for acceleration of the economic development of any country. In fact international studies have established that for every 1% increase in tele-density, there is a 3% increase in the growth of GDP.

Accordingly, the Government of India has accorded the highest priority to investment and development of the telecommunications sector. Telecom requires very heavy investment and it was not possible for the Indian Government to organize public funding of this sector on such a massive scale. In fact the national telecom Policy 1994, estimated a resource gap of Rs. 23,000 crores to meet the telecom targets of the eighth five-year plan of the Government of India (199297). It was for this reason to bridge the resource gap between government funding and the total projected funds requirement and to provide the additional resources to achieve the nation's telecom targets that the telecommunications sector was liberalized in 1992 and the Government invited private sector participation in telecommunications. Cellular mobile services were one of the first areas to be opened up to private competition. The whole country was divided into the 4 metropolitan cities of and 19 telecom circles, which were roughly analogous with the States of India. Cellular Licenses were awarded to the private sector - first in the metropolitan cities of Delhi, Mumbai, Kolkata and Chennai in 1994 and then in the 19-telecom circles in 1995.

The first metro cellular network started operating in August 1995 in Calcutta. When cellular mobile services were first introduced in 1994 it was as a duopoly (that is a maximum of two cellular mobile operators could be licensed in each telecom circle), under a fixed license fee regime and for a license period of 10 years. The initial response of the private sector was very encouraging. The attractiveness of the Indian market - the low tele density, the high latent demand and a burgeoning middle class - brought in some of the largest global telecom players, foreign institutional investors and the major Indian industrial houses to invest in telecom, especially the Indian cellular industry. Telecom proved to be a powerful attractor of foreign investment. The cumulative FDI inflow into telecom since 1993 has exceeded Rs. 43,000 Million. Within telecom, the cellular industry has attracted most of the foreign investment since 1993, accounting for almost 50% of the FDI inflow into telecom - representing amongst the biggest investments in any one sector in India. Annual foreign investment in telecom increased steadily from an insignificant Rs. 20.6 Million in 1993 to Rs. 17,756.4 Million in 1998. However, the attractiveness of the Indian market did not last for very long, as by 1997-98, the private cellular operators were confronted

with a series of problems that threatened their very viability and survival. As a result of this, FDI inflow into telecom dropped sharply, declining by almost 90% to Rs. 2126.7 Million in 1999. This dropped further in Year 2000 - as until June 2000, only Rs. 918 Million had flown into the country. One of the key factors responsible for the critical state of the telecom sector & consequently also the cellular industry was that liberalization / deregulation was undertaken in an inverted manner vis--vis international practices and generally accepted norms. Usually, deregulation is preceded by tariff rebalancing, institution of a strong and independent regulator and only then is private sector participation invited. In India, private sector participation was invited in 1992, the Regulatory Authority was set up in 1997 and the tariff rebalancing exercise commenced in 1999 and is still far from complete. Further, even when the regulatory authority was set up, there was considerable ambiguity on its powers, which resulted in virtually each and every order of the Authority being challenged by the Licensor / incumbent. The ambiguities in the jurisdiction of TRAI resulted in a limbo in the industry. Another important factor was the basic approach of the Government towards liberalization. Consumer benefit was given the go-by and the

telecom sector was viewed as a revenue generator / cash cow for the Government exchequer. NTP 94 was basically a good policy. It clearly identified that the primary objective of the policy was to make available affordable telecom services. However, in actual policy implementation, this key / fundamental objective was disregarded. Licenses were granted through an auction process and the enthusiastic private sector deluded by the seemingly huge potential of the Indian market were lured into bidding exorbitant sums of money for cellular licenses. The huge license fees paid by the private operators resulted in a high cost structure leading to un-affordable tariffs and lower growth of the market. By end-1998, the cellular industry was on the verge of bankruptcy and at that time it appeared that the liberalization dream was over & the nightmare had begun. It was under the above circumstances that the Government undertook a review of telecom policy & the role of the regulatory authority. The result was NTP 99, which was announced in March 1999 & the amendment of the TRAI Act in January 2000. NTP 99 is an extremely forward-looking policy. It significantly changed the dynamics of the Indian telecom industry as it not only replaced the high cost fixed licensing regime with a lower cost licensing structure through revenue sharing, but also provides for greater degree of competition and more flexibility in choice of technologies.

The amendments in the TRAI Act resulted in a considerable strengthening of the Regulator & greater clarity on its role and powers. It also put in place a separate dispute settlement mechanism in the form of the Telecom Dispute Settlement and Appellate Tribunal to expeditiously deal with and resolve issues relating to the telecom sector. Existing private cellular operators migrated to the new telecom policy regime with effect from August 1999. There can be no doubt that migration to a more beneficial regime translated into tangible consumer benefits - lower tariffs, greater subscriber uptake & increased coverage. Cellular tariffs have dropped by over 90% since May 1999 - a feat unparalleled by any other sector or industry in India. The average airtime tariff in Year 2001 was prevailing around Rs. 2 per minute as against the peak ceiling tariff of Rs. 16.80 per minute when NTP 99 was announced. Parallely, there has also been a significant drop in the cost of mobile handsets. Cellular handsets that were available for around Rs. 2530,000 in the initial days of cellular have now dropped significantly, with a base level handsets being available for as little as Rs. 2,000 upwards. This has come about as a result of increased volumes and some degree of rationalization of government levies. As a result of improved affordability, there an increased take-up of the service and the cellular operators were able to venture into more and

more cities & towns of the country. In fact cellular services are now available in almost 1400 cities & towns of India. With the lower tariffs and increased coverage, there was also a resultant increase in the number of cellular subscribers. The point of inflexion for subscriber take-off is clearly post NTP-99. From 1.2 million subscriber in April 1999, to almost 2 million by April 2000, the number of cellular subscriber have now grown to almost 6.5 million by the end of March 2002. By March 2001, the industry had invested nearly Rs. 16,000 crores in cellular infrastructure and it is estimated that these investments will grow to Rs. 20,000 crores in the next 4-5 years. The year 2001 also saw the entry of BSNL and MTNL as the third cellular operators as had been mandated in NTP 99. Further, in July 2001, cellular licenses were awarded to the 4th cellular operators in different telecom circles. With this the number of cellular operators has gone up to 89 licenses. As of March 2002, the Indian cellular mobile industry had 42 networks on air, serving over 1400 towns and cities and covering thousands of villages and serving almost 6.5 million subscribers across the country. The quality of the service is widely accepted to be of international standards and till date there has been no waiting period involved in availing of this service.

The cellular industry has been growing at an average rate of 85% per annum and it is hoped that the industry will be able to sustain this growth in the coming years. The Working Group on the Telecom Sector set up by the Government of India for the tenth five-year plan, has estimated that over the next five years, around 31.55 million cellular subscribers would be added all over India. To achieve this growth, the Working Group has also estimated that resources to the tune of about Rs. 25,240 crores will be required over the next five years. However, to attract foreign investments into India, it is imperative to ensure the predictability and stability of the policy and regulatory regime of the country. Policy flip-flops & regulatory ambiguity have plagued the Indian telecom sector since the introduction of privatization. This has had the unhappy result of putting the entire sector into a state of limbo as investors - both foreign & domestic await clarity on the final direction that the policy will take. In the meantime, foreign investors, who have not committed themselves to the Indian market, will divert their interest & investments to competing and more attractive FDI destinations. Further, for the industry to attract the requisite investments and to reach the growth targets set for the tenth five-year plan, it is imperative that a few crucial industry issues that have been plaguing the industry, be resolved on an urgent footing. This includes most importantly :

 The early resolution of the dispute relating to the recent permission granted to fixed operators to offer WLL based mobile services without a mobile license and under the more advantageous terms of their fixed service license and The institution of a formal interconnection agreement between the cellular operators and the fixed service providers especially the incumbent fixed service operators - BSNL and MTNL.

Cellular Technology In a cellular system, the geographical area is divided into adjacent, non-overlapping, hexagonal shaped cells. Each cell has its own transmitter and receiver ( called base stations) to communicate with the Mobile units in that cell; a mobile switching station coordinates the handoff of mobile units crossing cell boundaries. Cellular systems are based on the concept of frequency reuse : the same frequency is used by several sites which are far enough from one another, resulting in a tremendous gain in system capacity. The counterpart is the increased complexity, both for the network and the mobile statio0ns, which must be able to select a station among several possibilities, and the infrastructure cost because of the number of different sites. The system hands over calls from transmitter to transmitter as customers move around in their vehicles . This new technique would allow more customers access to the system simultaneously, and when more capacity was needed, the area

served by each transmitter could be divided again which is popularly known as CELL SPLITTING. One of the most important concepts for any cellular telephone system is that of multiple access meaning that multiple, simultaneous users can be supported through frequency reuse. In other words, a large number of users share a common pool of radio channels and any user can gain access to any channel (each user is not always assigned to the same channel). A channel can be thought as merely a portion of the limited radio spectrum, which is temporarily allocated for a specific purpose, such as someone's phone call. Cellular Architecture GSM System Components A schematic overview of the GSM system is shown in the figure given below . The system is composed of three main elements ; the switching subsystem, the base station subsystem, and the mobile. The switching part makes the connection between the two users, the base station part controls the communication across the radio interface, and the mobile acts as the transmitter receiver for the user. PSTN A schematic overview of the GSM system is shown in the figure given below . The system is composed of three main elements ; the switching subsystem, the base station subsystem, and the mobile. The switching part makes the connection between the two users, the base station part controls the communication across the radio

interface, and the mobile acts as the transmitter receiver for the user. Mobile Station The best known part of the cellular network is certainly the mobile stations. Different types of mobile stations are distinguished by power and application. The mobile station ( MS) types include not only vehicle mounted portable equipment but also handheld stations popularly known as mobile handsets. A significant architectural aspect of the MS relates to the concept of Subscriber Identity Module ( SIM). The SIM card contains a unique International Mobile Subscriber Identity ( IMSI) used to identify the subscriber to the system. The SIM is basically a smart card, containing all the subscriber -related information stored on the users side of the radio interface. A potential user may off course buy a mobile equipment, but he may also lease or borrow the equipment or purchase it through other channels. Fixed Mobile Stations are permanently installed in a car and may have a maximum allowed RF output of up to 20W. Portable ( bag phones) can emit up to8 W and handheld portable units up to 2 W. With Second Generation mobiles ( on the market since 1993), the GSM system is becoming more and more attractive. Hand-portable units are becoming much smaller and are coming with numerous features on it. This is giving the system a boost popularity, especially in those markets with a particular demand for small mobiles such as in Asian and Pacific areas.

Base Station Subsystem Base Station Subsystem groups the infrastructure machines, which are specific to the radio cellular aspect of GSM. The BSS is in direct contact with the mobile station through the radio interface. As such, it includes the machines in charge of transmission and reception on the radio path, and the management thereof. On the other side, the BSS is in contact with the switches of Network Subsystem (NSS). The BSS includes two types of machines: Base Station or Base Transceiver Station The counterpart to a mobile station within a cellular network is the base transceiver station ( BTS), which is the mobile's interface to the network. Each cell site is equipped with a BTS. A BTS is usually located in the center of a cell. A cell site is used to refer to the physical location of radio equipment that provides coverage within a cell. The transmitting power of the BTS determines the absolute cell size. The BTS houses the radio transceivers that define a cell and handles the radio-link protocols with the Mobile station. BTSs are placed in the field to transfer a call to a customer's handsets, and there are between one and sixteen transceiver, each of which represents a separate RF channel. A BTS may cover an area of 30 40 sq kms. However, in a congested, urban location, the BTS

coverage area is much smaller. BTS can be considered as complex radio modems and have little other function. A list of hardware located at a cell site includes power sources, interface equipment, radio frequency transmitters and receivers, and antenna systems. Base Station Controller BSC Base station controller is in contact with the switches of NSS. It monitors and controls several base stations, the number of which depends on the manufacturer and can be between several tens and several hundred of stations. A typical BSC can manage from one BTS to the entire BTS in service area, depending on their traffic capacity. The chief tasks of the BSC are frequency administration, the control of a BTS, and exchange functions, it handles radio channels setup, frequency hopping, and handovers. The BSC is the connection between the mobile station and the Mobile Service Switching Centre and is in charge of all radio interface management through the remote command of the BTS and the mobile station, mainly the allocation and release of radio channels and the handover management. The BSC is connected, on one side, to several BTSs and on the other side, to the Network and Switching Sub System ( more appropriately to a Mobile Switching Centre). A BSC is in fact a small switch with substantial computational capability. The hardware of the BSC may be located at the same site as the BTS, at its own standalone site, or at the site of the Mobile Switching Centre ( MSC). BSC and BTS together form a functional entity some times referred to as the Base Station Subsystem.

Network and Switching Subsystem / Switching subsystem The NSS includes the main switching functions, as well as the data basis needed for subscriber data and mobility management. The main role of NSS is to manage the communications between the GSM users and the other telecommunications network users. The NSS is responsible for performing call processing and subscriberrelated functions. Mobile Services Switching Centre The MSC is the interface of the cellular network to the PSTN. MSC performs the telephony switching functions of the system, it acts like a normal switching node of the PSTN, and additionally provides all the functionality needed to handle a mobile subscriber, such as registration, authentication, location updating, handovers, and call routing to a roaming subscriber . MSC is the primary switching interface between the mobile telephone systems, and the PSTN. It is capable of routing calls from the fixed network - via the BSC and the BTS- to an individual mobile station. The MSC also provides the network with specific data about individual mobile stations. The MSC interfaces with BSS on one other side ( through which it is in contact with GSM users) and with the external networks on the other. The NSSs also need to interface with the external networks to make use of their capability to transport user data or signaling between GSM entities. In particular, the NSS make use of a signalling support network, at least partly external to GSM, usually referred to as the SS7 network.

Home Location Register ( HLR) The HLR is a database about subscribers, it stores the identity and user data of all the subscribers belonging to the area of related MSC. These are permanent data, such as the International Mobile Subscriber Number ( IMSI)of an individual user, authentication key, including a subscriber's service profile, location information, activity status and some temporary data. Temporary data on the SIM include such entries as (1) the address of the current visitor location register (VLR), which currently administers the mobile stations (2) the number to which the calls must be forwarded (if the subscriber select call forwarding), and (3) some transient parameters for authentication and ciphering .

The IMSI is permanently stored on the SIM card. The IMSI is one of the pieces of important information used to identify a subscriber within GSM system. The first three digits of the IMSI identify the Mobile Country Code ( MCC) and the next two digits are the mobile network code ( MNC). Up to ten additional digits of the mobile subscriber identification number ( MSIC) complete the IMSI. Visitor Location Register

The VLR contains the relevant data of all mobiles currently located in a serving (G)MSC. It is the database that contains temporary storing subscription data for those subscribers currently situated in the service area of the corresponding MSC as well as holding data on their location at a more precise level than the HLR. The VLR is always integrated with MSC. The permanent data are the same as data found in the HLR; the temporary data differ slightly. For example, the VLR contains the temporary mobile subscriber identity (TMSI), which is used for limited periods of time to prevent the transmission of the IMSI via the air - interface. The substitution of the TMSI for the IMSI serves to protect the subscriber from hightechnology intruders and helps point to the location of the mobile station through the cell identity. The VLR has to support the (G)MSC during a call establishment and an authentication procedure as it furnishes data specific to the subscriber. Locating subscriber data in the VLR, as well as in the HLR, reduces the data traffic to the HLR, because it is not necessary to ask for these data every time they are needed. Another reason for storing the identical data at two different locations ( in the HLR & VLR) is that each serves a different purpose. The HLR has to provide the GMSC with the necessary subscriber data when a call is coming from the public network. The VLR, on the other hand serves the opposite function, providing the host (G)MSC with the necessary subscriber data when a call is coming from mobile station. Authentication Centre

The Authentication center ( AC) is related to the HLR. It provides the HLR with different set of parameters to complete the authentication of a mobile station. The AC knows exactly which algorithms it has to use for a specific subscriber in order to calculate input values and issue the required results. Since all the algorithms for the authentication procedures are stored within AC, they are protected against abuse. The SIM card issued in area assigned to AC contains the same algorithms for authentication as the AC does. If the AC provides input and output parameters for these algorithms to either the HLR or the VLR, either location register can verify ( authenticate ) the mobile station. Equipment Identity Register The equipment identity register (EIR) is a database that contains a list of all valid mobile equipment on the network, where each mobile station is identified by its International Mobile Equipment Identity (IMEI). An IMEI is marked as invalid if it has been reported stolen or is not type approved . Within the EIR we find all the serial numbers of the mobile equipment that is either stolen or, due to some defect in their hardware, may not be used in a network. The idea is to check the identity at each registration or call setup of any mobile station, and then depending on its IMEI, admit or bar access of the mobile station to the system. The implementation of EIR is relatively a new security feature of the GSM system.

Operation & Maintenance Centre The Operation & Maintenance Centre ( OMC) has access to both the (G)MSC and the BSC, handles error messages coming from the network, and control the traffic load of the BSC and the BTS. The OMC configures the BTS via the BSC and allows the operator to check the attached components of the system. As the cells become smaller and the number of base stations increases, it will not be possible in the future.

CONTRIBUTIONS OF THE CELLULAR INDUSTRY TO THE INDIAN ECONOMY 1. World Class Infrastructure The Indian cellular industry has been instrumental in bringing to the Indian consumer, a world-class telecom infrastructure. The Indian Cellular Industry is: -The flag-bearer of the Indian liberalisation process.

-The largest recipient of Foreign Direct Investment (around Rs. 2200 Crores)-A responsible performing sector that has met all its obligations to the GOI. The Industry would have invested over Rs. 25,000 crores to: -Set up 69 Networks -Serve -Offer over one crore in subscribers 1575 as of December & towns 2002 and

Services

over

cities

-Cover over 14,000 villages

2. Reputed Indian Business Houses & International Telecom Majors The privatization of Indian cellular brought into the arena some of the most reputed business houses of the country as also biggest names in the international telecommunications industry. These included: Reputed Indian Business Houses - Birla, BPL, Escorts, Essar, Reliance, RPG, Tata, and Thapar. International Telecom Majors - SingTel, Asia Tech, AT&T, Bell South, Nynex, Millicom, First Pacific, Hutchison Whampoa, Telecom Italia, New York Life, Telecom Investments, Telesystems International Wireless, CellaNet and others. Institutional Investors AIG, Commonwealth Development

Corporation (CDC), EMP, Asian Infrastructure Fund and others. 3. Increased Connectivity There are presently 42 networks operating in the country covering over 1350 cities and towns and directly servicing over 6.7 million subscribers nation-wide. Importantly, the connectivity benefits also extend to over 33.5 Mn PSTN subscribers of BSNL & MTNL who can now reach the cellular subscribers " anytime and anywhere". In addition the cellular radio waves cover over 28,000 villages, where connectivity can be provided at a very short notice at a nominal incremental cost. 4. Employment Generation

As the 3rd and 4th Cellular Licencees would start their operations and with 77 networks (42 presently and 35 new networks) on air, the employment generated by the industry would be promising. In addition to the direct employment generated by these networks, there is also the multiplier effect of indirect employment generated down the supply chain comprising vendors, infrastructure suppliers, contractors, dealers, etc. It is estimated that the total employment generated by the cellular industry would be in the tune of a few lakhs once the new networks are rolled in. 5. Increased FDI Flows The Telecom sector is the largest attractor of Foreign Direct Investment in the country, accounting for almost a fifth of FDI approvals since 1991. 6. Heavy investment in Infrastructure The cellular industry is responsible for the single largest chunk of investment by any individual industry. The industry has already invested over Rs. 20,000 crores and is expected to invest even more in the years to come. 7. Revenue Generation for the Government of India The cumulative revenues that have flowed to the Government are already about Rs. 10,000 crores from license fee and service-tax alone.

HUTCH IN INDIA Hutchison established its presence in India in 1994, through a joint venture with Max India Limited. In 1995, Hutchison Max Telecom became the first operator in India to launch its cellular service.

Today, Hutchison is the one of the largest providers of cellular services in India with presence in all the major regions - Orange in Mumbai and Hutch in Delhi, Karnataka, Andhra Pradesh, Chennai, Kolkata, Gujarat, Haryana, Rajasthan, UP (E), UP (W), Rest of Bengal and Punjab. It is also the country's largest roaming operator, with a more extensive network in India and around the world than any other operator. It is part of the Hong Kong based multinational conglomerate Hutchison Whampoa Limited, a Fortune 500 company, and one of the largest companies listed on the Hong Kong Stock Exchange. Its operations span 41 countries across the Asia

Pacific region, Europe and the Americas. Hutchison affiliates jointly account for the largest number of cellular subscribers in India numbering over 6 million.

Headline: Subhead: Wherever you go our network follows. Bodycopy: -

Baseline: Agency: O&M Client: Hutch

a boy and a dog

Hutch believes Rahul Dravid epitomises the company's image understated, simple and hard-working. The approach is that Dravid will communicate only in a limited space. But the brand has to stand by itself.

To do that, Hutch reckoned the communications had to be simple and focused. In came the boy and the dog. Some amount of serendipity helped too. There was instant off-screen bonding between the boy and the dog, which showed on-screen too. And the whole thing clicked! Consistency isn't that easy for a national, retail-level brand. So Hutch strictly disallows its local teams from deviating from the core

message. They protect their brand like a mom-and-pop shop." Hutch has refrained from using words like 'biggest' or 'best', and has talked of reasons to buy its service - like value-added services or coverage. Simplicity was maintained by keeping the technology behind the scenes. When it launched GPRS services, Hutch told its users they could download World Cup video clips. For educating users, it did a series of sketches with a boy and a girl. The ads worked.

Todays consumers do not want to hear the virtues of a brand, they are interested in specifics and thats what their campaigns always do.

An Interview

. Samuel Selvakumar, CEO, Hutch (Karnataka & Chennai) In a career spanning over 22 years, Samuel Selvakumar has surged ahead with 16 promotions, holding different assignments in different locations across diverse business and industry. At 44, his career graph is highlighted with outstanding contributions in varied businesses through pioneering start-up ventures, promotions in quick succession and high-profile assignments. Selvakumar has spent the past seven years in the cellular industry. And, now, serving as the Chief Executive Officer of Hutchison Essar South, taking care of Karnataka and Chennai circles. In his conversation with Shubha Kumble, Selvakumar shares his plans for Hutch, the need for non-techno communications and his optimism for the cellular industry. Q. How is Hutch positioned? A. Hutch is a brand that delivers and focuses on what the consumer wants. We believe in taking small-yet-firm steps rather than large-but-trembling leaps. Our brand is not about promising but about delivering. Our brand is very much about here and now. Its not about what a great position, what a great statement or what a great company. Instead, its all about

experiencing here and now. To that extent, we believe our core-values to be simply related to work-values. In a service business you cant have high imagery and low delivery. When customer expectation is a moving target, your brand will have to constantly connect with the consumer. In that sense, our positioning is in real play. Q. Hutch is a relatively new entrant into the cellular industry. Could you please take us through how your brand evolved since its entry into the Indian market? A. Let me tell you about our business before taking you through how our brand evolved. We were given the 1800-mega-hertz spectrum where we launched our business. This was the first time the country was allotted this spectrum. We came in and launched our network and the brand, Hutch. It is a much young brand compared to other major market players and what we have always focused on is keeping in mind our views and philosophy that take us towards creating a successful business. We have constantly worked to create a value proposition to our consumers. What we have seen in the last 19 months since the time we have launched the brand is there are huge endorsements that keep growing day by day in the Southern markets where we are newcomer. We have seen a large number of customers exercise their faith and choice in favour of us as their service provider. So, if we see how we have evolved, I guess the evolution has been much like this: people came in, saw a new service provider, experienced the

good and also the short-comings in terms of quality and depth of network and having overcome that substantially, they turned a big leaf. This is demonstrated in the large number of subscribers who have opted to use our services. They speak volumes for our evolution. The brand is only as good as its delivery on the ground where your experience is only as good as your last call.

Yes, we have never used a tagline in our communication, as it has always been for others. We wanted to establish Hutch as a brand. As I said, we dont talk imagery, we talk about what our consumers can touch and feel and experience as a whole. It requires product innovativeness. Since you cant touch and feel our product, you need to experience it. So, we focus on the continuous stretch of innovative services that we offer to our consumers. Instead of giving you a simple SMS service that anyone can give, we have given you SMS as a medium to allow interactive response between users. This continuous process of providing innovative products and services has been a milestone in the way we have evolved. Q. What was the main focus of your brand positioning when you entered the Indian market and how has this positioning evolved since? A. Our focus has remained the same since the time we entered. We entered with the intention to say that we are here to expand the market and thats what weve done. The size of the market has grown enormously since then. We had said that the way we would expand the market would be

through giving you more value for your usage. So, weve not only expanded the size of the market, also gave our customers better services and ensured their stay with our network. Q. What kind of marketing strategies did you apply to achieve this enlargement of market? A. Weve been innovative in everything that weve done. Weve been innovative in our tariffs. When we launched, we gave you the choice to pay as you use and, the more you talk the less you pay. Tariff is a factor that keeps constantly changing in an industry like ours and we have used the trend in an innovative manner. Whether it is tariff or value-added services, innovation is our key. Keeping our services constantly relevant and cost-effective for our consumers has been our main focus. At the end of the day, our customers judge us on the basis of simple things like the quality of our network, getting him the bills accurately and on time. So, the more we involve ourselves with the basics of life, the more the brand gets perceived for what it stands for. Q. Your ad campaigns have been immensely popular especially the recent boy and the pug one. What media objective did they go out with? A. If you look at a category like ours, there is a lot of technology-speak. But, we need to speak the language that the consumer understands. We have always tried to, if I may say so, consumerise our communication. If he is making a call, how does it matter to the consumer if he is using

technology A, B or C? Our focus on keeping to simplicity has been the main driving force. Network is hygiene in this industry; so, we are trying to communicate this hygiene factor in a language the consumer easily understands. This is what you have seen in the boy-and-the-pug campaign. Q. The techno-speak, as you called it that was seen in earlier campaigns, has now been completely replaced by a softer mode of communication across the industry. Do you see yourself as a trendsetter? A. You can catch on to a concept, bandwagon. But to continue to create it, it needs to be an institutionalised way of life. Brand is not about imagery; it has to be integrated at the ground level. If you speak about the use of human emotions, I must say, brand values do not substantiate these values, and the task becomes extremely difficult. So, that is something that Hutch has focused on over a period of time. Q. Your campaigns have predominantly been related to one or the other service that you provide rather than a complete brand promotion. A. In our communication, we need to constantly connect with the consumer. You have to be able to give a value proposition to the consumer that relates to your campaign. If you do not give a value to your consumer, it turns very difficult for them to get high simply on imagery. If you only offer a high gloss value, which is what you see in most campaigns today, it still needs to convey to the consumer what he can get out of it. The more you

establish a connect between what you see and what you experience and get, the more the chances that the campaign would be successful. The consumers today do not want to hear the virtues of a brand, they are interested in specifics and thats what our campaigns always do. Q. What kinds of investments have gone into your campaigns? A. I would say that we are a very relevant and strategic spender. I am not in a position to reveal to you the exact volume of spends but nationally, we are certainly one of the high spenders in our category and across categories as well. Q. While you are known as Hutch in most parts of India, you go by the name of Orange in Mumbai. Does this dual branding create any confusion? A. No, so far, we have not experienced any problems with that. Everybody recognises that Hutch and Orange are one. We are brands that are fundamentally from the same stable. We launched Hutch in the South and consequently all our properties across Delhi, Kolkata and Gujarat aligned and changed to Hutch. Historically, we launched Orange many years ago and it continues to be the leading force as far as that market is concerned. Through our various campaigns we establish Hutch and Orange as an association that everyone reckons. Q. A lot of players have successfully geared up on their below-the-line activities. Will you be following suit?

A. Our approach has always been to have an integrated communication. We have always supported our thematic campaigns with a lot of below-theline activities. Apart from this, we have a fairly widespread distribution of outlets, which makes our products and services available at an arms length. We have our own exclusive shops and at the next level, we have what we call, teleshops, which are a smaller format of our main Hutch shops. Then we have our retail outlets where our services are available. So, we have virtually covered all spectrum areas available and it is still evolving. If you want to know whether we do road shows, then yes, we do. But our road shows mainly focus on what else our consumers can get out of our products and services. Q. Spice, one of your biggest competitors in Karnataka has acquired considerable mileage through its audience-specific services be it for the youth or women. Will we see Hutch going after niche audience? A. Hutch has never gone out and branded our different products exclusively, saying for example, as Hutch Youth. But a lot of youth have come into our network mainly because of the innovation that is constantly being applied to our operations. So, while we have not gone ahead and sub-branded our products be it for the youth, women or children, we have addressed the needs of various sections in that sense. So, while our services are catering to different needs, they are all offered under the Hutch name.

Q. What percentage of the market share does Hutch hold? A. If you take a look at last years figures, we were for the most part of the year operational only in Bangalore and four towns. It was in the later part of last year that we expanded our footprint spreading across 75 towns. But if you look at what we took last year, 40 per cent of the gross share last year went to Hutchs account. Our experience in rest of Karnataka is about a year in some towns and in others, its about a few months. We are being well received and I think we will see more consolidation and growth happening even outside Bangalore. Q. What kind of growth are you expecting? A. From all indication, most markets are expected to double the subscriber base. Though I dont know at what time the doubling of subscriber base will happen, we will certainly get a fair share of the cellular growth that is expected. Karnataka has 20 lakh cell phone connections that are expected to grow beyond 30 lakhs and we expect to get a fair share out of that. We would continue to launch very innovative and relevant products for our consumers and we would continue to deliver globalstandard services to our customers. These would be the key drivers of growth for our business in the future.

Headline: Get through easily. Subhead: Instant connectivity with Hutch. Bodycopy: The high capacity, congestion free Hutch Network prevents clogging and bottlenecks. So your calls get connected immediately after dialing. In just one go. And what's more, you'll hardly ever experience any call disconnections. Baseline: Agency: O&M Client: Hutch

Headline: Now travel to Jammu & Kashmir. Only on Airtel. Subhead: Bodycopy: By becoming the only private network to offer roaming services in J&K, Airtel today fulfills its dream of connecting the entire nation, from Kanyakumari to Kashmir. Baseline: Express yourself Agency: Rediffusion-DY&R Client: Airtel

Headline: An MMS is wrth a thsnd txt mssgs. Subhead: Bodycopy: MMS: The Future of Messaging

For the first time in India, BPL Mobile introduces Multimedia Messaging Service (MMS). So now you can add life to your messages. By adding photos, sound, colour, voice and animation. And, of course, your imagination.

MMS: For picture perfect messages.

Whether you are on the road, in a pub or just hanging out with friends, you'll find a lot of moments to MMS. You could take a photo, edit it instantly and send it with text or a sound clip. And the photos you take from your MMS enabled phone can be sent to friends with MMS phones or regular mobile phones. You could also send them to email addresses, publish them on the internet and even use them as a part of your presentations. Or just store them in your personal photo album. All this at just Rs 199 per month for 100 MMS. To get the MMS experience, drop in at your nearest BPL Mobile Gallery. Special Offer

If you have an MMS phone (Sony Ericsson T68i or Nokia 7650), activate your MMS service by 31st October and avail of unlimited MMS for the first month. For more information on MMS or our special offers call MobileAssist on 9821099800 or 800 on your BPL Mobile. Or log on to www.bplmobile.com BPL Mobile

Believe in the Best

Connecting The Wirefree Generation. Baseline: Connecting the wirefree generation Agency: EuroRSCG Client: BPL Mobile

Quite some time ago Hutchison-Essar, the telecom company that's a joint venture among the Hong Kong-based Hutchison Telecommunications International Ltd, the Ruias of the Essar group and other Indian partners, decided to advertise on television, it handed its advertising agency an unusual mandate. The agency would steer clear of celebrity endorsements of the brand, something many of its rivals had opted for (Bharti had Sachin Tendulkar and Shah Rukh Khan while Reliance had Virendra Sehwag). The agency had to project Hutch as a brand that offers a completely reliable network. The agency's answer was a commercial that went on to rivet the imaginations of millions of Indian television viewers - a pug faithfully following his young master throughout the day, even while playing or eating. Hutch says : "For us the brand is the real hero." That commercial reflects the essence of what India's second largest private GSM mobile services operator likes to think it's all about - it does things differently from its rivals. Its rivals may be aggressively trying to attract new customers to expand the number of their subscribers. Not Hutchison. It has

eschewed the numbers game. But it is chasing a different kind of number: a larger share of the incremental mobile revenue by tapping subscribers who are heavy users of mobile phones.

Unique Features

HUTCHWORLD

Come to a world full of fun and excitement - on your Hutch phone. Watch television clips only on your EDGE phone. Get set to challenge yourself with over 400 games. Cartoons, wallpapers, and more - your Hutch phone is a whole lot of fun. From movie trailers to the hottest Bollywood buzz, catch it all right here. Express yourself with fullcolour photo messages. Let your Hutch phone ring the hottest tones. What's happening around you? Be in the know through your Hutch phone. Here's what the stars foretell.

Have fun in 3D. Download wallpapers for your phone. Enjoy Internet on your Hutch

Browse, learn and enjoy - on your Hutch phone.

phone, anytime, anywhere.

Multimedia applications such as push2talk, Click&Print MMS and MS Outlook on mobile phones are some of the unique services available only to Hutch users This follows their service philosophy about delivering performance and making the experience enjoyable at the same time for all those who come into contact with it. The Hutch brand is not just a logo or only a telecom brand - it is a service philosophy and represents our unique way of doing business. They have led the development and adoption of GPRS-based multimedia services in India. With over 2 lac GPRS users, we have over 50% of the GPRS subscriber base in the country. Despite the high mobile penetration, mobile users in Punjab have yet to experience many of these services. People in Haryana travel extensively within the state. Keeping this in mind, they have focussed on superior connectivity across state and national highways, railway routes and commercial centres. The Hutch network is already present across 64 towns and cities, which are home to over 85% of the current cellular subscriber base in Haryana Speaking about the special services for Hutch users, They get a chance to choose their own mobile number. They will also get an enhanced 32 K SIM card which allows for a 250 number phone book. In addition to this, the entire Hutch range of innovative value added services special applications such as push2talk, Java-based mobile gaming, live video replays and Click&Print MMS; the VOX Voice

Response Service that provides cricket updates, ring tones, jokes, stock information and news with voice commands; Microsoft Outlook on Hutch mobile phones; Hutch Alive cell-broadcast service; Group Messaging and Missed Call Alerts will also be available. Hutch users will also enjoy the benefit of the widest two-way international roaming coverage and 24-hour customer care through a dedicated customer service helpline."