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Most marketers are today facing decreasing returns on mass-media spend – turn where you will in marketing-dom, there is disillusionment about classical marketing adages not working any more. One business magazine went so far as to ask on it’s cover page, ”Is Marketing Working?”

Examples abound of excessive exposure of one message by a brand - to no apparent incremental gains. Or seeing an ad in a medium where its core target can never get to see it. All this only leads to even greater anxiety and uncertainty about which part of a brand’s advertising is working – and how well. No wonder, mass-media budgets were enhanced by a mere 4% in 08-09, as compared to 21% in 07-08; clear indication that marketers are forced to experiment with alternative media.

Why is this happening?

The two defining reasons for this are :

(A) Fragmentation of Customer Attention, as is clear from the decadel table below:

1986

 

1996

 

 

  • Newspapers
  • Broadcast TV
  • Magazines
  • AIR Radio
  • VCRs
  • Eight Track
  • Movies
 
  • Newspapers
  • Magazines
  • Satellite TV
  • Cable TV
  • AIR Radio
  • Cassette Tapes
  • Walkman
  • VCR
  • PCs
  • Console Video
  • Games
  • PC Video Games
  • Movies
   

2006

  • Newspapers
  • Magazines
  • E - mail
  • Satellite TV
  • Cable TV
  • AIR Radio
  • FM Radio
  • CD Player
  • PCs
  • Internet
  • Cell Phone
 
  • DVD Players
  • Satellite Radio
  • Mp3 Players
  • iPod
  • Blogs
  • Online Video Games
  • Mobile Internet
  • Internet Cafes
  • Console Video
  • Games
 
  • PC Video Games
  • MMORP Games
  • Mobile Games
  • Text Messaging
  • Mobile Video
  • Downloads
  • Movies
  • Podcasts
  • Instant Messaging
  • Social Networks


…emanating from (B) Multi-fold Fragmentation of Media

Proliferation of channels & publications means one has to spend three times the amount today to impact the same set of audiences, compared to five years ago.

But compounding these are the Unchanging Mind-sets of marketing communications professionals, characterized by:

Demographic targeting has long been the focus of marketing efforts – and is even today relied upon heavily as the chief determinant of a brand’s target. In today’s stratified market, this may not be so.

Creative is pursued for the wrong reasons which are inward-looking - effectiveness is left largely to a function of chance.

Reluctance on the part of agencies to go back to the grass-roots and grapple with rapidly evolving market realities; they would rather ‘tweak’ existing learnings and move on…

But most importantly, the buying paradigm has changed …permanently, with an individual’s macro-level attitude – with regard to his larger view of the world, the ethnic background & semiotics of his behavourial existence and lifestyle elements taking center-stage in a brand choice scenario. These softer elements are today far more critical to brand choice than the hard core attitudinal issues we know of so well.

Old vs new paradigm

All these lead to anxieties which every marketer is grappling with today…

    - Is my brand leveraging its sales potential?
    - Is my advertising effective?
    - How much of it is a waste?
    - What are the segments I am not addressing?
    - Where are the new markets? Is this the right time to address them?
    - Is my marketing mix right?
    - Is my sales force doing their job well?
    - Should I bring more money in for on-ground support?

To know more about how we can make market metrics work for you, avail the list of services on this site or mail us at .

   
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