5 Must Know Digital Marketing and Sales Definitions and Facts: Part-4

May 3, 2018

Just wondering how digital marketing works and what should I know? Then this is the right place to begin. Let us know the basic set of jargons first to begin with:

1. Shockvertising

Today's advertising environment is filled with loads of content that it has become a herculean task to catch the attention of the consumers. There are simply too many messages and not enough attention from consumers. Shock advertising is a method of capturing the attention of the consumer in a rather unmissable way.

Earlier we saw the use of disruptive advertising, as a form of capturing the attention. While disruption can be created in many non-startling or non-offending ways, shockvertising aims at creating disruption by shocking the audience through the content, or breach of social code, or personal values.

Shock advertising, or Shockvertising, is a type of advertising, that deliberately startles, or offends the audience, with its daring content. Shock advertising employs bold graphic imagery, and blunt slogans.

Marketers use shockvertising when the backfire is lesser than the gain. If the audience act negatively, the marketer will end up losing goodwill. At the same time marketers try to make shockvertising meaningful. If the ad is too abstract, the customers may not get the intended message, which is critical in creating recall in the minds of the audience after the initial shock.

Shockvertising is used successfully by marketers across the world. We have seen how Benetton has leveraged shockvertising to build its brand in our earlier case study. Shockvertising is also used for civil branding or cause advertising, by governments or other social organizations.

2. White Labeling

White Labeling refers to the practice of marketing a product by a company, the manufacturer of which is a different company. White labeling is used in a variety of industries including food, technology, and also banking and finance.

White labeling is widely used by supermarkets and hypermarkets, who offer products under their own name. It is also known as private labels. Such supermarkets, usually use another company to manufacture the products, which they sell under their own name. The practice is also followed in finance industry where small banks may ask larger banks to handle their credit card operations for a fee.

The Advantages of White LabelingThe advantages of white labeling are work both ways.

The manufacturer benefits from greater product reach, and a wider market base for the goods. The marketer does not have to spend on R&D, whilst benefiting from the advantages of having their own product.

3. Adapted Marketing Mix

An adapted marketing mix is an international marketing strategy of adjusting each of the marketing mix elements to suit each international target market.

Marketers, due to glaring differences in cultural backgrounds, spending power, product preferences and needs and wants of the consumers, adapt their product, prices, channels, and promotion strategies to suit the consumers' requirement in each country. This might mean higher costs, but marketers bear such additional costs in hope of gaining a bigger market share and return.

4. Umbrella Branding

An umbrella branding strategy, is a marketing practice that involves selling many related products under a single brand name. Unlike individual product branding, which uses different brand names for different products, umbrella branding uses a single brand name, and in some cases logo, for different products.

Umbrella branding offers several benefits to marketers. They include

  • Extra Brand Creation not required
  • Single spend on advertising (for all products)
  • Dependant perception: The perception depends on the main brand
  • Easier launch of new products
  • Better response to new products when compared to individual branding

Umbrella branding involves creating huge brand equity for a single brand, and thereafter leveraging that over multiple products. Umbrella branding is also known as family branding. It is very common to find umbrella branding in FMCG products.

On the flipside, bad reputation of any one product, may affect the equity of all the other products using the same brand name. In India, umbrella branding is used successfully by Amul for dairy products, Tata for its FMCG products like Tata Tea, and Tata Salt, and Kingfisher for alcoholic beverages, mineral water(see Surrogate Advertising), and Airlines. Wills also uses umbrella branding for its tobacco products, apparels, accessories, and soaps & shampoo.

5. Captive Market

A captive market is a market, where the consumers do not have many suppliers to choose from. Their only choice is to buy what is available or not to make any purchase at all. This is applicable to a market which experiences a monopoly or oligopoly.

Captive markets experience high prices and less choice. Classic examples of captive markets are food courts in malls, airports, or movie complexes.

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