Professional Documents
Culture Documents
Service Marketing
Service Marketing
Service Marketing
RELATIONSHIP MARKETING
ASSIGNMENT - 1
SUBMITTED BY:
ARSHIA CHATTERJEE
ABHISHEK YADAV
DIKSHA YADAV
SHUBHANGI DASH
PRIYAL GOYAL
1
Table of Contents
I. INTRODUCTION ........................................................................................................... 3
Service .............................................................................................................................. 3
Growth of Service sector and its effects in Global GDP ..................................................... 3
Characteristics of Services ................................................................................................ 4
Service Marketing .............................................................................................................. 8
The Service Marketing Triangle ......................................................................................... 8
Service Marketing Mix ....................................................................................................... 9
II. SERVICE CLASS SELECTED ........................................................................................ 11
Class 35 .......................................................................................................................... 11
SAC code selected .......................................................................................................... 12
III. ADVERTISING............................................................................................................... 12
IV. GLOBAL PLAYERS ....................................................................................................... 13
V. SUCCESSFUL ADVERTISING COMPANIES ................................................................ 16
• McCann Worldgroup................................................................................................. 16
Ogilvy and Mather ........................................................................................................... 25
WPP Plc .......................................................................................................................... 32
VI. FAILURE STORIES ....................................................................................................... 37
• The California Sunday Magazine .............................................................................. 37
• Man Repeller ............................................................................................................ 39
• Great Big Story ......................................................................................................... 41
VI. NEW SERVICES ........................................................................................................... 44
Intelligent Advertising ...................................................................................................... 44
Adaptive Framework........................................................................................................ 45
The Ability to Read and Act on Signals ............................................................................ 45
Consumer Focused Narrative .......................................................................................... 46
Research Driven Approach.............................................................................................. 46
Bibliography ........................................................................................................................ 47
2
I. INTRODUCTION
Service
Services have traditionally been difficult to define. The way in which services are created and
delivered to customers is often hard to grasp since many inputs and outputs are intangible. Most
people have little difficulty defining manufacturing or agriculture, but defining service can
elude them. Here are two approaches that capture the essence of the word.
● A service is an act or performance offered by one party to another. Although the process
may be tied to a physical product, the performance is essentially intangible and does
not normally result in ownership of any of the factors of production.
● Services are economic activities that create value and provide benefits for customers at
specific times and places, as a result of bringing about a desired change in—or on behalf
of the recipient of the service.
More humorously, service has also been described as "something that may be bought and sold,
but which cannot be dropped on your foot."
A service may be referred to as an intangible and more perishable component of any business
offering – absolute package as a core product or as an augmented form to promote the tangible
products. Normally, the production and consumption of services takes place simultaneously.
The purpose of creating such may be business as well as purely service to the society.
It took centuries for the world’s economies to shift from agriculture to manufacturing, but the
rise of the services sector is occurring more quickly. The world is in the midst of a radical shift,
with the share of total output—world GDP—accounted for by services experiencing a sharp
increase in almost all countries. This growth in services has likely transformed not only the
composition of the world’s economic production and employment, but potentially global
trading patterns over the past few decades.
3
The relationship between services growth and overall economic growth has become stronger
in the past two decades as services’ average contribution to GDP and value added has increased.
In 2015, services’ value added accounted for 68.9 percent of GDP globally, up from 63 percent
which was in 1997.
Characteristics of Services
The characteristics of the services differentiate the services from the tangible goods. 6 main
Characteristics of service are explained below: -
1. Intangibility: - Services are intangible and therefore cannot be touched, handled, smelt
or tasted. This is because service itself is an activity. A service however, can be
experienced. A service also gives a certain amount of satisfaction to the consumers. On
account of the intangibility, there is no ownership created in case of services. A service
4
can only be generated and used and can never be owned. Services often include tangible
elements such as sitting in an airline seat, eating a meal, or getting damaged equipment
repaired the service performance itself is basically an intangible. The core benefit
derived from owning a physical good normally comes specifically from its tangible
elements, even though it may provide intangible benefits, too. An interesting way to
distinguish between goods and services is to place them on a scale from tangible
dominant to intangible dominant which is shown in fig.2
Fig.2 Value Added by Tangible versus Intangible Elements in Goods and Services
3. Inseparability: Commodities once produced can be sold at a later point of time but in case of
services it is not possible. Examples – In the cases of services of a doctor to his patient, teacher
to his student, the simultaneous presence of both-the producer of the service and the consumer
of the service at that point of time is absolutely necessary. The service provider is indispensable
5
for service delivery as he must promptly generate and render the service to the requesting
service consumer. Therefore, the service provider, the service itself and the service consumer
are inseparable.
4. Simultaneity: Services are generated and consumed during the same period of time. As soon
as the service consumer has requested the service (delivery), the particular service must be
generated from scratch without any delay. The service consumer instantaneously consumes the
rendered benefits to satisfy his wants. Therefore, the production and consumption of services
are always simultaneous.
5. Variability: Each service is unique. Services lack homogeneity. Example – a doctor treats
two patients with similar ailments on the same day. The level of satisfaction in the minds of
these patients after the treatment will never be the same. No two units of service are identical
even if they are generated by the same person. Factors like quality control, standardization etc.
which can be very successfully implemented in case of production of tangible goods cannot be
applied in case of services. Services always vary with each other.
Core and Supplementary Service: - The core product is the most basic level of a product – what
the buyer is actually buying. As regards the supplementary products there is a distinction
between the facilitating and the supporting products, whereas “the facilitating products are
services or goods that must be present for the guest to use the core product and the supporting
products are additional products that are provided in order to add value to the core product.
These supporting products should help to differentiate the own service from the competitors’
services.
As stated by Kotler, Bowen and Makens the augmented product consists of accessibility,
atmosphere, customer interaction with the service organization, customer participation, and the
customers’ interaction with each other. “These elements combine with the core facilitating and
supporting products to provide the augmented product
6
The Flower of Service: - Flower of services, presents the two kinds of supplementary service–
facilitating supplementary services and enhancing supplementary services.
The eight clusters are displayed as petals surrounding the center of a flower—which is known
as the Flower of Service. Here it shown clockwise in the sequence in which they are often likely
to be encountered by customers. In a well-run service organization, the petals and core are fresh
and attractive. But a badly designed or poorly executed service is like a flower with missing,
wilted, or discoloured petals.
7
Service Marketing
The overall approach of generating awareness, interest, desire and action (AIDA) to consume
services that are put on offer of the provider may be referred to as service marketing.
Communication of the core meaning, benefits, and procedures of consumption of a service;
making it convenient for the reach of target customers; building a sound in-bound and outbound
logistics support system; selection, development and promotion of an effective service
distribution network; and developing and promoting systems visibility are a few integrated
functions related to marketing of services.
Ordinarily, ‘service marketing’ can be linked to the overall approach adopted by a firm to
promote the service component of its offering – no matter whether it is a core offering or
augmented one. The key functions related to marketing of services will include branding and
packaging of services, performing advertising and publicity about the services on offer,
promoting the business partners that leverage marketing and promotion of services across the
markets, assessing the service impact and customer satisfaction, and so on – as it applies to
marketing of tangible goods. In other words, service marketing refers to the overall approach
of promoting the marketable service entities.
8
Fig.4 Service marketing Triangle
It emphasizes on the division of the marketing tasks into following three categories based on
the required skills, strategies and priorities for service marketing:
● Internal Marketing: - The internal marketing connects the company with the employees
where the employees are assisted, guided and trained for providing the services to the
customers. The employees are introduced to the organizational goals, and their queries
or problems are resolved. The best performers are even appreciated through the
performance reward system.
● External Marketing: -This is the direct form of service marketing. Here the company
reaches out to the target consumers through websites, advertisements, social media and
other relevant platforms, to keep the business rolling.
● Interactive Marketing: - One of the most crucial marketing tasks is the actual delivery
of services to the consumer by the employees. The success of interactive marketing
depends upon the proper execution of internal and external marketing. The employees
aim at consumer satisfaction, long-term association and customer retention in
interactive marketing. The image of the company is in the hands of the employees.
9
Bernard H. Booms and Mary J. Bitner worked together in developing the traditional familiar
marketing mix, in the year 1981. An American professor of marketing named Jerome
McCarthy has developed the traditional marketing mix; however, Booms and Bitner added the
extension to the same thus making it as the 7 Ps of the marketing mix. This service marketing
mix is also known as the 7 Ps model. This extension of further 3 Ps to the already existing ones
helps in the useful application of the same to the knowledge intensive environments and service
companies.
One of the most basic concepts in marketing is the marketing mix elements by which an
organization controls, satisfies or communicates with customers. The traditional marketing mix
is composed of the four Ps: Product, Price, Place and Promotion. These elements are the core
decision variables in any marketing plan.
1. Product: - A product can be defined as a mix of intangibles & tangibles offered by the
marketers at a price the customer buys a product by paying a certain amount. A product
is anything that is offered in the market to satisfy needs, wants of the customer though
services are intangible it is very difficult to sell the services.
2. Price: - Price is only one p which generates revenue other 6 ps are cost carrying. Pricing
is one of the crucial “p” of marketing because it is directly linked to revenue before
pricing & service you have to consider a variety of features.
3. Place: - The place where customers buy a product, and the means of distributing your
product to that place, must be appropriate and convenient for the customer
4. Promotion: - This promotion mixes to stimulate the buyer to purchase the service. The
key to making promotion successful service provider always consider customer view
or they try how the service buying is more beneficial to the customer
5. People: - People are one of the important aspects of service. As the people are involved
in the delivery of a service provider.
6. Process: - Process refers to the procedures, mechanisms, and flow of activities that
occur when the customer and the business interact with each other.
7. Physical Evidence: - Being services are intangible in nature they are highlights & in
nature; they are highlight & influence the customer by physical evidence which is
tangible. These tangibles help the service provider to sell the intangible. Physical
evidence is also called as atmosphere or ambiance while availing any service
10
customers buying behavior & attitude can be affected by physical aspects of various
services
Class 35 includes mainly services rendered by persons or organizations principally with the
object of:
the bringing together, for the benefit of others, of a variety of goods (excluding the transport
thereof), enabling customers to conveniently view and purchase those goods; such services
may be provided by retail stores, wholesale outlets, through vending machines, mail order
catalogues or by means of electronic media, for example, through web sites or television
shopping programmes;
11
● services of advertising agencies and services such as the distribution of prospectuses,
directly or through the post, or the distribution of samples. This Class may refer to
advertising in connection with other services, such as those concerning bank loans or
advertising by radio.
services such as evaluations and reports of engineers which do not directly refer to the working
or management of affairs in a commercial or industrial enterprise (consult the Alphabetical List
of Services).
III. ADVERTISING
If organisations haven’t employed some professional agencies to take care of their marketing
strategies, they end up struggling with the promotion of the product. Almost all the advertising
agencies have some kind of uniqueness which strengthens the target audience’s memory. It
also makes them memorable to remember a particular product.
“Advertising is – finding the ideal customer and this calculation is done on the demographic
standards such as – Gender, Age, Education level, Income level and zip code etc”
Advertising is a unique method. It’s a tactic to promote a product, service, promotional content,
or messages in the form of advertisements. The goal of this highly creative work is to reach
people according to their need and interest.
Until 2020, when the coronavirus put a halt on many industries, the spending on advertising
worldwide has been increasing steadily. It is expected to go back on steady growth track
starting in 2021, and surpass 630 billion U.S. dollars in 2024. North America is the region that
12
invests most in the sector, followed by Asia and Western Europe. Middle East and Africa as
well as Central and Eastern Europe spend the least, however, they can boast the highest growth.
● TV and Radio: - The global TV advertising spending in 2019 amounted to more than
176 billion U.S. dollars and it is expected to decrease, albeit slowly, to nearly 158
billion dollars by 2022. Global radio advertising is projected to slightly grow between
2020 and 2022, offset by the impact of the pandemic on the industry, and ultimately
reach 30.3 bllion U.S. dollars.
● Print media: - In 2019, global spending on magazine ads amounted to 24 billion U.S.
dollars, but it is believed to drop to 17 billion in the next two years. At the same time,
newspapers will not fare any better, with investments in ads declining from 43 to 31
billion U.S dollars. On top of the coronoavirus impact, digital media counterparts are
disrupting the market and drawing the focus away from traditional media.
● Digital and mobile: - Spending on digital advertising worldwide amounted to 325
billion U.S. dollars in 2019. The sector is growing at an impressive rate and is expected
to surpass 526 billion dollars in 2023. In 2019 fiscal year, American multinational
technology company Google generated 134 billion U.S. dollars in revenue from digital
advertising. Comparatively, Facebook and Twitter made 69 and 2.99 billion U.S.
dollars on ads respectively.
Top 10 Advertising Agencies in the World: - As per the published list in the LinkedIn on 19th
June 2020 the top 10 global best Advertising agencies are as mentioned below: -
13
2. Mullen Lowe U.S. (We are different kind of beast): - MullenLowe U.S. is the best
American advertising agency around and was founded in 1970 by Jim Mullen in
Boston. Clients: Google as well as others like JetBlue, General motors, Zappos, Acura,
century, 4Seasons, Jetblue, ask.com.
4. Publicis Groupe:- It was founded in 1926 in France which is considered as the oldest
as well as largest marketing & advertising companies in the world. Clients: Citi, Coca-
Cola, Garnier, Rogers, Lobsterd, Vicks, American Airlines etc.
5. Dentsu (Japan):- It is a multinational media and digital communications who have its
office in London (U.K). Dentsu was founded by Jerry Bhulman and controls around
30% of all that country’s mass media advertising. Clients: It includes Airtel, Flipkart,
Pepsi, Coca-Cola, Bacardi, Red Bull.
14
6. Havas:- Havas that is now controlled by French media group Vivendi and is an
American Advertising agency founded in 1991 Clients: Lacoste, IBM, Air France, The
Colombian National Road Safety Agency, Camel cigarettes, Unilever etc.
7. Grey Global:- Grey global was founded in 1917 by an 18-year-old Lawrence Valenstine
in an art studio. Client: - Carlsberg, Renault, Pringles, Santen, Gillette, Raymond’s etc.
8. Droga 5:- It is a global advertising agency set up in New York in 2006. Accenture is
meant to be its parent company which is a fortune 500 company based in Ireland. Client:
- Harley Davidson, New York Times, Twizzlers, Tourism Australia, Google.
9. BBDO:- Its roots were first laid down by George Batten, who was later to provide the
first B in BBDO. Client:- Subway, Hot Wheel, Fisher price, PepsiCo, HP.
10. Y and R (Young & Rubicam) – Resist the usual: - Young and Rubicam has its roots in
Philadelphia started as a very small unit, later it moved to New York in 1926 and the
journey went on. Clients: Sony, Adobe, Burger King, Dell, and Chevron.
15
V. SUCCESSFUL ADVERTISING COMPANIES
• McCann Worldgroup
McCann, formerly McCann Erickson, is an American global advertising agency network, with
offices in 120 countries. It is a subsidiary of the Interpublic Group of Companies, one of the
four large holding companies in the advertising industry.
McCann was the first agency to diversify into domains other than marketing.
● McCann (advertising)
● UM (media management)
16
● Weber Shandwick (public relations)
● FutureBrand (consulting/design)
Milestones
● 1902: Alfred Erickson forms his own advertising agency in New York City
● 1912: Harrison King McCann, along with four partners, launches H.K. Mc Cann Co,
● 1957: McCann became the first U.S. advertising agency to bill $100 million in TV and
radio sales
● 1960: The company is organised into four independent operating units reporting into
McCann Erickson, Inc. (later to become the interpublic group in 1961). Office opens in
Japan.
● 1964: The spanish government of Francisco Franco hires the agency to improve its
Universal MaCann and what would become MRM// McCann, Momentum, McCann
Success Factors
Ambition
17
Since its foundation in 1912 Mc Cann Erickson has made a name for itself in more than 120
markets with its positioning “TRUTH WELL TOLD”.
When truth is well told it has the power to move people, brands and markets.
Vision
Marketing Resources Management (MRM) software helps businesses track, manage and
report on marketing operations to streamline creative production processes, optimize spend and
resources and manage creative content assets.
MRM software gives marketing departments a unified system to manage brand compliance,
marketing workflows, the Return on Investment (ROI) of creative performance and budget
tracking.
18
Some of the key benefits of marketing resource software include:
● Creative Approvals - Easily route creative to brand, legal and other teams for digital
sign off and an audit trail of acceptance.
● Single Source of Truth - Ensure your teams are working on the same, approved set of
assets, which can be seamlessly integrated into your website, email marketing and other
MarTech applications.
● Automate Creative Review - Always adhere to talent usage requirements, and
automate expiration of creative with outdated claims and legal copy instantly.
● Track Records - Track expenditure against targets to ensure your team stays on
budget.
● Bring Your Brand To Life - Showcase your brand guidelines online so they actually
get used by your stakeholders and agency partners.
● Manage Tasks & Projects - Never miss a deadline or task with project databases, task
management and dashboard reporting.
Mission:
McCann Worldgroup is united across 100+ countries by a single mission: to help brands play
a meaningful role in people's lives.
Advertisement link of how McCann worldgroup advertise themselves
https://www.youtube.com/watch?v=UU9ZnI8xkBM&t=117s
This is the advertising video in which McCann Worldgroup advertises them. This video
explains that the clients satisfaction is the main priority for the McCann group. Also this video
states how they have been growing relationships with their clients which can be achieved
through the models/ process that company follows. But mainly through
● Great work
● Entertain the clients
● Breaking new ground
● Great ideas drive results
● Great team around the world
19
This way the company helps their clients to reach success. The company believes that core
competence lies in strategic brand management linked with creativity and technological
innovation. Furthermore, they realize ambitious IT solutions that create new marketing
opportunities.
Clients:
SERVICES
20
Fig.5 Services offered by McCann Worldgroup
ENABLEMENT:
People expect brands to add immediate value through meaningful tools, products and service.
ENGAGEMENT:
ACTIVATION:
Brands need to activate people in an emotional and meaningful way, driving them to take
actions.
EXPERIENCE
21
Today people expect seamless brand experiences across all channels, touchpoints and devices.
● CXM/User experience
● Customer Journey
● Shopper/retail marketing
● Customer relationship management
CONSULTING
● Business strategy
● Brand & Digital strategy
● IT Strategy
● Business Intelligence
● Research analytics and KPIs
STRATEGY:
Truth 2 Meaning (T2M) arms their teams with a unique operating system that unlocks
creativity to drive impact for their clients. It provides a shared language and approach across
all markets and MW agencies, to help identify the powerful truths that help earn our clients’
brands a meaningful role in people’s lives.
T2M is powered by proprietary and secondary data, cultural insights as well as category
expertise derived from a multitude of best-in-class sources. It enables us to calibrate the right
team, intelligence assets, practices and approaches to solve our clients’ biggest problems in an
agile manner, with bespoke solutions.
22
McCann has a team of experts which combine quantitative, qualitative and analytical expertise
to unearth impactful truths that create actionable takeaways for brands.
23
KEY SERVICES
● Unpack clients business issues and challenges to get to the real problems that need
solving.
● Provide new insights and perspectives
● Challenge existing thinking on customers, categories, competitors, culture, connections
on-line
● Develop creative briefs that will inspire
● Facilitate idea development and collaboration across the agency and across client
stakeholders
● Guide and shape creative work
● Testing and assessing creative work
● McCann in New York and Mumbai are the two out of four agencies to receive an
24
Ogilvy and Mather
Ogilvy & Mather is one of the largest marketing communications companies in the world
providing a comprehensive range of marketing services including: advertising; public relations
and public affairs; branding and identity; shopper and retail marketing; healthcare
communications; direct, digital, promotion and relationship marketing.
The Ogilvy Group does advertising by the book. Founded by ad pioneer David Ogilvy in 1948,
the firm designs the brand; turn the brand into an experience; and communicate the brand's
story. It make brands matter. The company is a doorway to creative network, re-founded to
make brands matter in a complex, noisy, hyper-connected world. Ogilvy has been there every
step of the way, shepherding the world's most successful brands through the uncertainty and
helping them adapt and stay relevant for the long-term. It has presence in about 85 countries
worldwide. Clients have included Cadbury, Pizza Hut, Ponds, and Samsung, among others.
Operations-
The company offers a wide range of programs focused on deepening its knowledge and
enhancing its expertise, with courses and trainings focused on areas such as Digital
Transformation, Leadership, Culture, Change Management, Growth, and New Ways of
Working, among many others.
It designs the brand; turn the brand into an experience; and communicate the brand's story.
Some of its work includes Not Just a Cadbury Ad, Lifesaver, Stevenage Challenge and more.
Geographic Reach-
Ogilvy operates through more than 130 offices in about 85 countries around the world.
Mission
25
Vision
We are in the business of building strong and lasting brands, allowing our clients a network
of powerful international and Chinese companies to sell their products. In short, we make
brands matter in an increasingly fragmented and cluttered digital world. We do this by utilizing
a variety of tools. The big ideaL helps us zero in on a brands purpose. Twin Peaks puts emphasis
on both creativity and effectiveness in every campaign strategy. We also have a patented
integrated marketing communications framework called FUSION, which helps us and our
clients navigate brands in a complex landscape. We aspire to be the most local of the
internationals, and the most international of the locals.
Values
● Working for brands, in brand terms representing its own skills and those of its clients.
● Encouraging ‘individuals, entrepreneurs, inventing mavericks’
● Valuing ‘candour, curiosity, originality, intellectual rigor, perseverance, brains – and
civility’.
● Preferring ‘the discipline of knowledge to the anarchy of ignorance’ (and expressing
the preference by pursuing ‘knowledge the way a pig pursues truffles’).
● Prizing both analytical and creative skills: “without the first, you can’t know where to
go; without the second, you won’t be able to get there”.
● Respecting the intelligence of its audiences.
● Expecting its clients to hold it accountable for its stewardship of their brands, and its
success to be judged by making their brands more valuable to both users and owners
Services Provided
26
● Neo@Ogilvy is the world's leading digital and direct media agency. The agency
provides a full range of digital and direct media services, including media strategy,
planning and buying, search marketing, performance marketing, analytics and
technology, mobile marketing, social media marketing, digital out-of- home marketing
and others.
● OgilvyInteractive creates digital marketing and technology applications across all
interactive channels for major global and national brands. OgilvyInteractive offers a
comprehensive suite of services like Digital Strategy, Brand Experiences and
Platforms, Site Design & Development, Online Advertising, Social Media & Word-Of-
Mouth Marketing, Direct & Performance Marketing etc.
● Ogilvy Noor is the world’s first bespoke Islamic Branding practice, offering expert
practical advice on how to build brands that appeal to Muslim consumers, globally. It
combines decades of experience and best practice in marketing successfully to Muslim
consumers globally, with pioneering up-to-the-minute research conducted to shed light
on the lives, needs and desires of the new Muslim consumer today. It then turns these
insights into practical guidance for the brand and market.
Clients
27
Managing Brands @ Ogilvy & Mather
Phase 1: Discovery
Phase 2: Strategy & Planning
Phase 3: Execution
Phase 2: Strategy and Planning Who are the brand’s audiences? And what is their
understanding of the brand ? Where does the brand touch customers? Which of these
touch-points are ‘moments of truth’?
Phase 3: Execution What is the idea? How does the idea inform all creative efforts?
Where is this idea going to play out? How is success measured?
O&M won three medals “Gold, silver and bronze” at Asian Brand Marketing awards 2004 held
in Hong-Kong:
● The agency grabbed the Gold medal for Best Insight for Goli ke Humjoli campaign.
28
● Silver medal for Most effective PR for Cadbury crisis management.
● Bronze medal for Best long-term marketing for Fevicol.
Future Plans
· New Agency model – from “message generator” to “content producer”
· Thought leadership – OgilvyEarth and OgilvyNoor
· Co-creation
· Value Exchange
· Collaborate with consumer
· Digital Marketing
Success Factors
People Management -
The agency’s commitment to training went beyond bosses to training programs at all levels, from a
weekend introductory program for new hires to middle management training to an advanced
management program for people running our offices around the world.
“Work hard, play hard, sleep fast” was the founder's motto, and he lived it. He built an elite
team and made the job fun, celebrating anniversaries with surprise lunches. Instead of a new
conference room table, he put in a Ping-Pong table with a removable top that is set up for client
meetings.
“Bring your client a new idea every week to build his business — one that he or she hadn’t
asked for.” Consider how clients regard people who are always thinking of building their
business and how the company rolls.
“If we hire people who are smaller than we are, we will become a company of dwarfs. If we
hire people who are bigger than we are, we will become a company of giants.” Therefore the
brand always hires the best, trains the best and awards the best.
Penetration -
Marketing in the Era of Accountability requires a broader mindset and penetration into all
possible channels. There is a common myth that the internet is replacing TV. Nothing could be
further from the truth. In fact, TV viewing is up in virtually all geographies and demographic
29
segments.TV and the internet are complementary, not alternatives: consumers with both use
both, often at the same time (watching TV with a laptop beside them).TV makes brands famous.
Campaigns with TV in the channel mix are 33% more likely to sell than those without it.
Therefore the brand never leaves any stone unturned and uses all mediums in the mix.
Psychology, neural science, behavioural economics and the analysis of effective campaigns,
all suggest brand choices are usually made emotionally. Rational calculations of utility come
second, if at all. Mostly what happens is that first we want something, and then we come up
with a rationale to justify why we want it. The justification is not the same as the motivation,
although. But Ogilvy always incorporates the softer desires in its approach to reach people.
Multichannel -
Effectiveness rate by number of media channels is proportional. Unless all channels are
aligned, adding more to the mix weakens the campaign. The latest and, we like to think, the
best channel integration tool is Ogilvy Fusion, the cross-discipline planning system. Like the
DO Brief, Fusion begins with a question about the client’s business issue, followed by a
question about the desired change in consumer behaviour. There the two tools that diverge.
The DO Brief goes on to ask what content will bring about the desired change, while Fusion
asks what channels. Channel selection in Fusion is based on changing consumer behaviour —
not on whether a channel is fashionable or unfashionable, not on whether the brand has always
used it or never used it, and not on media commission rates. Fusion is blind to channel
prejudice. Because the desired change in consumer behaviour is directly linked to the client’s
business issue, each channel in the mix is there to sell and for no other purpose. The result is
deep integration across multiple channels.
Creativity sells -
The Link Between Creativity and Effectiveness is what matters. The best way to get effective
campaigns is to run highly creative work. Creativity makes the single biggest known difference
to sales. More recent analysis suggests that the more creative awards a campaign wins, the
30
more it sells, and that creativity is becoming even more sales effective than it was a few years
ago. Of course, consumers do not know or care whether the work won an award. Highly
creative work sells more because (a) it is more likely to appeal to the emotions than to reason,
and (b) it is more likely to achieve higher coverage and frequency after being passed on via
social media and PR. The result is greater exposure of a more powerful appeal. Creativity, then,
leads to more exposure than the client paid for. More exposure = more sales.
Rebranding as needed -
Using the common language of ligature, the new Ogilvy logo represents the agility,
collaboration and connectedness that the brand is uniquely capable of delivering for
31
its clients. In addition, the company’s website ogilvy.com has been redesigned to
be a dynamic destination showcasing the breadth and depth of the agency’s creative
work, talent and thought leadership. “Today, there are more opportunities than ever
before to shape every aspect of a brand’s needs,” added Seifert. “The scale and
diversity of our global network is the source of our strength.
WPP Plc
WPP plc (WPP) is a holding company engaged in providing communications services. The
Company comprises companies in a range of disciplines, which include advertising, media
investment management; data investment management; public relations and public affairs;
branding and identity; healthcare communications; direct, digital, promotion and relationship
marketing, and specialist communications. The Company operates through four segments:
Advertising and Media Investment Management; Data Investment Management; Public
Relations & Public Affairs; Branding consulting, Health and wellness and Specialist
Communications. The Company has operations in over 112 countries. The Company offers
global, national and specialist advertising services from a range of international and specialist
agencies, which include Bates CHI&Partners, Grey, JWT, Ogilvy & Mather Advertising and
Y&R.
Vision
WPP’s vision is to be a creative transformation company, using the power of creativity to build
better futures for our people, clients and communities. 2019 was the year this inspiring vision
and our modern new offer was rolled out to our clients and the industry.
32
Mission
WPP exists: To develop and manage talent; to apply that talent, throughout the world, for the
benefit of clients; to do so in partnership; to do so with profit.
Values
WPP is a destination for the best and brightest in our industry with a culture based on the values
of openness, optimism and a commitment to extraordinary work.
Strategy
Success Factors
33
The strategy reflects a new vision for WPP as a leader in creativity and technology. It
incorporates a simpler, improved offer designed to capture the opportunities of a changing
marketplace, and a streamlined structure built around the needs of clients. It also includes
additional investments in creativity, technology and talent to enhance WPP’s proposition to
clients and drive top-line growth.
The restructuring of the business will enable increased investment in creativity, technology and
talent, enhancing the capabilities in the categories with the greatest potential for future growth.
As well as improving the offer and creating opportunities for clients, this investment will drive
sustainable, profitable growth for shareholders.
“We describe our approach as ‘radical evolution’: radical because we are taking decisive action
and implementing major change; evolution because we will achieve this while respecting the
things that make WPP the great company it is today.”
Factors at play:
Technology is rapidly reshaping our sector, presenting challenges but also opportunities. We
believe the industry is facing structural change not structural decline. WPP is adapting at speed
to capture these opportunities and to become even more client-centric than it is today.
WPP’s future offer will cover four areas: communications, experience, commerce and
technology. Each of these areas is critical to success for modern clients, and by bringing them
34
together the company will better serve clients’ needs as they react to the changing marketplace,
and expand WPP’s own business in high-growth sectors.
The areas of experience, commerce and technology already represent approximately one
quarter of WPP’s revenue.
WPP’s most important competitive advantage is its creativity. It is what makes WPP special
and what differentiates it from other professional services firms. WPP has significant creative
strengths, having won the “Holding Company of the Year” award at the Cannes Lions
International Festival of Creativity for seven consecutive years between 2011 and 2017 – but
the business must invest more in this area. As part of this strategic review, WPP is making a
renewed commitment to creativity, investing an incremental £15m a year for the next three
years in creative leadership, with a particular focus on the United States.
Alongside creativity, we will accelerate and promote our technology and data capabilities as
clear sources of competitive advantage to WPP. We will follow a consistent approach across
WPP by adopting a common technology strategy, leveraging the strengths of our unique
technology partnerships, and making our significant existing capabilities in marketing and
advertising technology available to all WPP companies for the benefit of our clients.
Simpler Structure -
35
WPP has become too unwieldy, with too much duplication. As a result it is not always as
focused or as fleet of foot as it needs to be to satisfy the needs of all our clients around the
globe. Therefore, central to the new strategy is a simpler structure, built around the needs of
clients, to allow easier access to WPP’s many resources. The structure is based on three
principles:
● Clients: we will become a more client-centric organisation in order to deliver the best
of WPP.
● Companies: we will have fewer, more integrated companies equipped to adapt to a
changing market.
● Countries: we will integrate further at a country level to leverage our strengths in
individual markets.
Kantar -
As previously announced, the Board of WPP has decided to develop Kantar with a potential
strategic or financial partner, with WPP retaining a significant minority interest and strategic
links with Kantar. Proposals will be evaluated on their financial and strategic benefits and if a
transaction is agreed it is likely to be announced in the second quarter of 2019. Preparations
are well underway and we have received numerous unsolicited expressions of interest.
For the first time, WPP has established an Executive Committee drawn from both corporate
and company leadership. This Executive Committee will work together to implement the new
plan, and we will review the company’s incentive arrangements to align with the strategy.
To make WPP the natural home for the best and brightest, and to attract the next generation of
talent, we will champion a culture across WPP characterized by the values of openness,
optimism and a commitment to extraordinary work.
36
VI. FAILURE STORIES
ABOUT
This is where their story began. A small group of them decided to create a “live magazine.”
Writers, radio producers, photographers, filmmakers, and illustrators would perform new,
mostly reported stories in all kinds of media mixed together. Stories about science, politics,
pop culture, sports, social issues, music, business, art, crime, technology, food, and more. The
night would unfold like a classic general-interest magazine, and end with the cast and the
audience mingling at the lobby bar. Nothing would be recorded. To see it, you had to be there.
It was a hobby at first, but it grew. They held the first show in a small theater in San Francisco.
Soon, they moved to a 2,700-seat symphony hall, and tickets sold out in minutes. Today, they
produce shows in more than a dozen cities, at grand, historic theaters like Lincoln Center and
37
BAM Howard Gilman Opera House in New York, the Theatre at Ace Hotel in Los Angeles,
and Davies Symphony Hall in San Francisco. They work with Oscar-winning filmmakers, New
York Times bestselling authors, popular radio and podcast voices, and artists whose work
appears in major international museums and magazines, as well as emerging talent. Their
stories are vivid, multimedia experiences, accompanied by illustration, animation,
photography, even shadow theater, and often an original score, performed onstage by our
musical collaborators Magik*Magik Orchestra. They still end the night gathered around the
bar. Our audiences are as interesting as the performers onstage, and they love to bring everyone
together.
After six years and 40 issues, The California Sunday Magazine is saying goodbye to print.
The bimonthly title produced by parent company Pop-Up Magazine Productions, which in
its relatively short life has garnered national acclaim for its design, photography and long-form
feature writing, will cease its print edition and move forward as a primarily digital publication.
In a letter posted to the magazine’s website, McGray implied that the economic conditions
brought about by the COVID-19 pandemic, particularly an inability to hold events, like
the touring “live magazine” show Pop-Up Magazine, had put the company in a position
in which it was forced to make a sacrifice.
McGray noted that California Sunday will live on, and that its “commitment to deeply reported
stories, unforgettable photography, and beautiful design” will continue online and in other
formats and integrations, such as the gallery exhibits in New York and Los Angeles that were
created from the magazine’s December 2018 issue.
38
But it’s not a stretch to say that the loss of the magazine’s print edition is a loss for the
medium as a whole.
Since its launch in 2014, The California Sunday Magazine has been named a finalist for 13
National Magazine Awards, winning once for design and twice for photography (the first
magazine to win that particular award in consecutive years since National Geographic did so
in 1991 and 1992). It is currently the two-time defending champion of the Society of
Publication Designers’ Magazine of the Year Award, having earned that honor in both 2018
and 2019. (Dool, 2020)
• Man Repeller
ABOUT
The women’s style blog Man Repeller, which was first published in 2010 by Leandra Medine
Cohen, shut down its site on October 19 following allegations of racism and classism against
the founder and the publication. Medine Cohen told The Cut at the time that the site was
39
shutting down because of “financial constraints” that kept it from being able to “sustain the
business.”
Leandra Medine Cohen’s blog shaped the way millennial women dress. For a while, that was
enough to make it a huge success. But its abrupt October closure, employees say, wasn't just
about the economic difficulties of the pandemic—it was also a symptom of Medine Cohen's
Back in June, Leandra Medine Cohen, founder of the website Man Repeller, posted a letter on
her site in support of Black Lives Matter. She was writing to explain how Man Repeller planned
to foster underrepresented voices and talents moving forward, but also wanted to apologize:
Following the murder of George Floyd, the site had quickly turned its social media accounts
over to sharing antiracism resources, which followers criticized as one of many examples of an
influencer-led business offering advice instead of looking within. As Medine Cohen wrote, “I
have a lot of listening and learning and growing to do before I will truly know how to
The post was met with more outrage. “As a former POC employee that was let go during
COVID-19, this ‘apology’ is a slap in the face and honestly disgraceful,” read a comment left
by ex–photo editor Sabrina Santiago on the post. “I have not been reached out to in any
capacity. I hope everyone sees that this is another performative attempt to cover racist actions.”
Many of the site’s commenters were troubled that Crystal Anderson, who had worked at the
site as a creative producer (and one of its few Black employees) since March 2018, was let go
40
during the pandemic. Another former employee of color, speaking anonymously, told Vox in
Damage control gave way to more concrete change. Medine Cohen announced less than two
weeks later on Instagram that she would step back from her leadership role. A flashy rebrand
was revealed a few months later, in early September, with a new name, a new site design, and
a new mission to elevate diverse voices. It was met with a combination of sneers and shrugs.
Man Repeller was now...Repeller? This certainly wasn’t the only brand led by an influencer-
personality that came under fire for public posturing on race this summer, and with the site’s
spunky, inclusive origins, it seemed possible that Repeller would weather the storm. And then,
on the morning of Monday, October 16, Medine Cohen announced in an all-staff Zoom that
ABOUT
41
CNN’s short-form documentary production company Great Big Story bit the bullet in
September this year, one day after signing a sponsorship deal from its largest advertiser —
valued at more than $1 million. The five-year-old company was a place for creative freedom,
but as Digiday previously reported, the writing was on the wall as it continually lost money
and eventually lost the support of leaders at parent company WarnerMedia, which fought its
own battle throughout the pandemic, before ultimately announcing layoffs this fall.
On the morning of Sept. 22, employees at Great Big Story received some good news. The
digital video publisher’s biggest advertiser, Hyundai-owned Genesis, had signed a new
sponsorship deal worth more than $1 million, they were told during their regular 9:30 a.m.
morning meeting.
The announcement was especially encouraging because many employees had believed the
automative brand would not be renewing its deal and the lost revenue would put Great Big
Story in an even more precarious financial situation than they feared the CNN-owned company
At 6:45 p.m. that evening, Great Big Story employees received an email from CNN vp of digital
productions Courtney Coupe, a founding member of Great Big Story who oversaw the media
company. The email notified the employees that an all-hands meeting would be scheduled for
“Immediately everyone was texting everyone, and we all went to bed that night knowing we
were going to get let go that next day,” said one of 11 former Great Big Story employees that
42
For many Great Big Story employees, the announcement on Sept. 23 that CNN was shutting
down the company was a shock. Working at Great Big Story had been a dream job. Editorial
employees were able to produce Emmy and Webby Award-winning short-form documentaries
about subjects like an Oakland center for disabled artists and an organization working to
combat plastic pollution and poverty simultaneously. And employees on the business side were
able to support content that they enjoyed watching themselves and were proud to show to
sponsors and their own family members. It’s unclear how many people worked at Great Big
Story at its peak, but a website built to showcase Great Big Story employees who lost their jobs
lists 45 employees.
With the backing of CNN and the resources of WarnerMedia’s sales organization, Great Big
Story would appear to have been born with a silver spoon in its mouth and insulated from the
financial struggles any fledgling media company would usually face. Instead, its business was
burdened by bureaucracy. Great Big Story lost money and lost leaders and — as a startup within
a major news organization that’s part of a massive media conglomerate owned by a debt-ridden
telecom giant — ultimately lost the support that some employees said was lacking all along
As one former employee said, “Great Big Story lived how it died: with very little thought or
planning. The product was good. The people were talented. There was no planning. There was
“We’re incredibly proud ofnGreat Big Story. Its unique voice, creative producers, award-
winning content and passionate audience are proof of its success. Like any startup, it faced
organizational obstacles and business challenges over the course of its first few years. But no
43
amount of planning nor prediction could’ve prepared us for the economic impacts of a global
The pandemic had certainly taken a toll on Great Big Story. As of September 2020, Great Big
Story had only reached 25% of its sales goal for the year, according to some former employees.
However, its business struggles predated the pandemic. In its five-year history, Great Big Story
had never turned an annual profit. As one former employee said, “The demise of the company
Intelligent Advertising
Advertising has experienced deep disruption as new channels and innovative technologies
emerge and evolve at speed. Competition is fierce, but businesses have an unprecedented
opportunity to help advertisers reach target audiences.
Marketers need to measure their return on advertising investment and optimize their marketing
mix, while publishers and platforms need to demonstrate their unique contributions and
quantify these results to attract advertising spend.
The rise of digital advertising channels with data and analytics capabilities has increased
expectations for actionable analysis across all channels. This poses a significant challenge to
publishers and platforms that currently lack the similar capabilities to capture, analyze and
quantify advertising impact.
• Cutting-edge analytics-
• Sales automation-
44
• Intelligent Advertising consulting-
• Solve key challenges and take advantage of opportunities to transform your advertising
business to better monetize your inventory and audiences.
• Build, launch and manage ubiquitous advertising products. Operate business models
powered by agile development and delivery solutions.
Adaptive Framework
As a result of the COVID-19 global pandemic, many brands have made strategic pivots in their
business approach to accommodate for new consumer needs or industry changes.
We live in an era of risk and instability. Globalization, new technologies, and greater
transparency have combined to upend the business environment.
For example, a leading media company that was suffering from a high rate of customer churn
revamped its analytic approach to customer data, applying “neural network” technologies in
order to understand patterns of customer loss. The company found hidden relationships among
the variables that were driving churn and launched retention campaigns targeting at-risk
customers. The accuracy rate in predicting churn was an impressive 75% to 90%—a huge
benefit, given that every percentage point in churn reduction added millions of dollars to the
bottom line.
The speed of adaptation is a function of the cycle time of decision making. In a fast-moving
environment, companies need to accelerate change by making annual planning processes
lighter and more frequent and sometimes by making episodic processes continual. Especially
45
media companies that are in constant contact with people and are dependent on being in the
talk. Having a more flexible base, with an eye out for any new waves of change and media
outlets needs to be absorbed by advertising to stay relevant.
Focusing on a customer oriented marketing strategy equals putting the customer in the center
of all your goals and strategies. Basically this strategy focuses on the customers’ needs and
their satisfaction. For getting a better overview of them, the simplest step is to pay attention
and to evaluate your competitor’s offer in contrast with your customer’s needs and identify
which of those needs are not met by your opponents.
The main ingredient in customer oriented marketing consists in research of your customer’s
needs. The research can involve focus group discussions, surveys, interviews, feedbacks, etc.
Investing in the research of the customer behavior, considered a prior step before proceeding
to product development, involves high costs, and this can be one of the main disadvantages.
The conversation today lies in the consumers hand. So any advertising company is bound to go
down if they do not take the consumers perspective into consideration while ruling out
campaigns. It's less and less selling and more and more of reaching out to the person that your
consumer is, solving their real problems and being a known face.
46
Bibliography
A regularly updated list of how agencies are responding to coronavirus. (2020, nov).
Retrieved 4 5, 2021, from https://adage.com/article/agencies/regularly-updated-list-
how-agencies-are-responding-coronavirus/2244711
digital, x. (2020, Aug). Examples of Brands Adapting to the “New Normal”. Retrieved 4 3,
2021, from https://www.10xdigitalinc.com/adaptive-marketing/
Dool, G. (2020, june 8). California Sunday Magazine Shuts Down Print Edition. Retrieved
from Folio mag: https://www.foliomag.com/california-sunday-magazine-shuts-print-
edition/
Intelligent Advertising. (2020, 4 4). Retrieved 4 4, 2021, from https://www.accenture.com/ma-
en/services/communications-media/intelligent-advertising-services
Mack, S. (2020). Customer-Oriented Marketing Strategy. Retrieved 4 3, 2021, from
https://smallbusiness.chron.com/customeroriented-marketing-strategy-65737.html
Official Website. (2021). Retrieved 4 3, 2021, from https://www.wpp.com/about
Tashjian, R. (2020, December 4). What happened to man repeller? Retrieved from GQ:
https://www.gq.com/story/what-happened-to-man-repeller
trainer, d. (2020, May). Retrieved 4 3, 2021, from
https://www.forbes.com/sites/greatspeculations/2020/05/27/omnicom-group-is-
positioned-to-thrive-not-just-survive/?sh=50e4dc8c71c8
47
48