Advertising Research

Application of Marketing Research in Advertising

Advertising research is a specialized form of marketing research conducted to improve the efficiency of advertising. According to MarketConscious.com, “It may focus on a specific ad or campaign, or may be directed at a more general understanding of how advertising works or how consumers use the information in advertising. It can entail a variety of research approaches, including psychological, sociological, economic, and other perspectives.”

History1879 - N.W. Ayer conducts custom research in an attempt to win the advertising business of Nichols-Shepard Co., a manufacturer of agricultural machinery.

1895 - Harlow Gale of the University of Minnesota mails questionnaires to gather opinions about advertising from the public.

1900s - George B. Waldron conducts qualitative research for Mahin’s Advertising Agency

1910s - 1911 can be considered the year marketing research becomes an industry. That year, J. George Frederick leaves his position as editor of Printer’s Ink to begin his research company, the Business Bourse with clients such as General Electric and the Texas Co. Also in 1911, Kellogg Co.’s ad manager, R.O. Eastman creates the Association of National Advertisers which is now known as the Association of National Advertising Managers. The group’s first project is a postcard questionnaire to determine magazine readership. The results introduce the concept of duplication of circulation. In 1916, R.O. Eastman starts his own company, the Eastman Research Bureau which boasts clients such as Cosmopolitan, Christian Herald, and General Electric.[4]

1920s - In 1922, Dr. Daniel Starch tests reader recognition levels of magazine and newspaper advertisements and editorial content. In 1923, Dr. George Gallup begins measuring advertising readership.[4]

1930s - In 1936, Dr. George Gallup validates his survey methodology by using the same tools polling voters during public elections. This allows him to successfully compare and validate his study's results against the election’s results.[5]

1940s - Post World War II, the U.S. sees a large increase in the number of market research companies.[5]

1950s - Market researchers focus on improving methods and measures. In their search for a single-number statistic to capture the overall performance of the advertising creative, Day-After-Recall (DAR) is created.[6]

1960s - Qualitative focus groups gain in popularity.[7] In addition, some advertisers call for more rigorous measurement of the in-market effectiveness of advertising in order to provide better accountability for the large amounts being spent on advertising. In response, Seymour Smith and Associates, using Advertising Research Foundation data as a jumping-off point, develops the Communicus System, a comprehensive approach to isolating the in-market impact of advertising across media.

1970s - Computers emerge as business tools, allowing researchers to conduct large-scale data manipulations. (Honomichl p. 175) Multiple studies prove DAR (Recall) scores do not predict sales. The measure, persuasion, also known as motivation, is validated as a predictor of sales.[8] The measure known as “breakthrough” is re-examined by researchers who make a distinction between the attention-getting power of the creative execution (attention) and how well “branded” the ad is (brand linkage). [9] Herbert Krugman seeks to measure non-verbal measures biologically by tracking brain wave activities as respondents watch commercials. (Krugman) Others experiment with galvanic skin response, voice pitch analysis, and eye-tracking.[10]

1980s - Researchers begin to view commercials as a “structured flow of experience” rather than a single unit to be rated on the whole, creating moment-by-moment systems such as the dial-a-meter.[11]

1990s - Ameritest Research creates Picture Sorts to provide accurate non-verbal measurements in a moment-by-moment system. Picture Sorts results are graphed to visually represent commercial viewers' moment-by-moment image recognition (Flow of Attention), positive and negative feelings (Flow of Emotion), and brand values (Flow of Meaning).[12] Trends in in-market tracking include a greater focus on the multimedia nature of entire advertising campaigns.

2000s - Global advertisers seek an integrated marketing research system that will work worldwide so they can compare results across countries.[13] For a look at trends predicted for advertising research in the 21st century, see Seven Trends for the Future. Dr. Robert Heath publishes the seminal and controversial monograph “The Hidden Power of Advertising” which challenged the traditional models used in advertising research and shows how most advertising is processed at an emotional level (not a rational level). His monograph leads to re-examination of in-market research approaches that compare the behaviors of those who have seen advertising versus those who have not, such as the Communicus System, and the development of brand new pretesting systems such as the OTX AdCEP system.[14]

Types of advertising researchThere are two types of research, customized and syndicated. Customized research is conducted for a specific client to address that client’s needs. Only that client has access to the results of the research. Syndicated research is a single research study conducted by a research company with its results available, for sale, to multiple companies. Pre-market research can be conducted to optimize advertisements for any medium: radio, television, print (magazine, newspaper or direct mail), outdoor billboard (highway, bus, or train), or Internet. Different methods would be applied to gather the necessary data appropriately. Post-testing is conducted after the advertising, either a single ad or an entire multimedia campaign has been run in-market. The focus is on what the advertising has done for the brand, for example increasing brand awareness, trial, frequency of purchasing.

Pre-testing

Pre-testing, also known as copy testing, is a form of customized research that predicts in-market performance of an ad, before it airs, by analyzing audience levels of attention, brand linkage, motivation, entertainment, and communication, as well as breaking down the ad’s Flow of Attention and Flow of Emotion.[16] Pre-testing is also used on ads still in rough form – e.g., animatics or ripomatics. Pre-testing is also used to identify weak spots within an ad to improve performance, to more effectively edit 60’s to 30’s or 30’s to 15’s, to select images from the spot to use in an integrated campaign’s print ad, to pull out the key moments for use in ad tracking, and to identify branding moments.[17]

Campaign pre-testing

A new area of pre-testing driven by the realization that what works on TV does not necessarily translate in other media. Greater budgets allocated to digital media in particular have driven the need for campaign pre-testing. The first to market with a product to test integrated campaigns was OTX in association with Sequent Partners with the introduction of MediaCEP. The latest generation of this product incorporates one of the leading media planning tools developed by a media modeling and software company Pointlogic. The addition of a media planning tool to this testing approach allows advertisers to test the whole campaign, creative and media, and measures the synergies expected with an integrated campaign.

Post-testing

Post-testing/Tracking studies provide either periodic or continuous in-market research monitoring a brand’s performance, including brand awareness, brand preference, product usage and attitudes. Some post-testing approaches simply track changes over time, while others use various methods to quantify the specific changes produced by advertising—either the campaign as a whole or by the different media utilized.

Overall, advertisers use post-testing to plan future advertising campaigns, so the approaches that provide the most detailed information on the accomplishments of the campaign are most valued. The two types of campaign post-testing that have achieved the greatest use among major advertisers include continuous tracking, in which changes in advertising spending are correlated with changes in brand awareness, and longitudinal studies, in which the same group of respondents are tracked over time. With the longitudinal approach, it is possible to go beyond brand awareness, and to isolate the campaign's impact on specific behavioral and perceptual dimensions, and to isolate campaign impact by medium.

Application of Marketing Research in New Product Launch

Application of Marketing Research in new product launch based on freedom to operating.

In September 2003, three pharmaceutical companies, Cambridge Antibody Technology, Micromet AG, and Enzon Pharmaceuticals, announced that they had signed a non-exclusive cross-license agreement. In the agreement, all three parties obtained substantial "freedom to operate" under some of each others’ intellectual property, to conduct research and develop a defined number of therapeutic and diagnostic antibody-based products.

Agreements of this kind have become common practice in certain sectors, as companies seek to ensure that their products, processes and services do not infringe on patent rights of others. Patent litigation can be an expensive, uncertain and risky affair, and, as the saying goes, prevention is always better than cure.

Planning for the development, production and launch of a new product is as much a matter of forecasting future market developments as it is of minimizing risks. A major risk for any company, particularly companies in technology sectors in which there is extensive patenting, is that the commercialization of a new product or technology may be blocked by a competitor holding a patent over a technology that is incorporated in the new product. In extreme scenarios, there may be "essential patents" that are indispensable for developing certain types of products or for meeting certain technical standards.

In such cases, without prior authorization of the patent owners, the risks of being accused of infringement are extremely high. This is why many companies, prior to launching a new product, and often even prior to initiating a new line of research that may lead to the development of a new product, seek to minimize the risk of infringement by securing their "freedom to operate" (FTO), i.e. ensuring that the commercial production, marketing and use of their new product, process or service does not infringe the intellectual property rights of others.

It is important to point out at the outset that absolute certainty in regard to "freedom to operate" will never be attainable, as it is a matter of degree. However, there are ways of minimizing risks that could save a company significant resources. A good patent search may provide a company with some indication that a new product is unlikely to infringe on third party patents, but no patent search is perfect or full proof. There is a practical limit to the time and money that can be spent on a search.

Evaluating Your Freedom to Operate

An FTO analysis invariably begins by a search of patent literature for issued or pending patents and obtaining a legal opinion on whether a product, process or service may be considered to be infringing existing patent(s) owned by others. Many companies rely on private law or IP firms that offer FTO analyses as part of their legal services to clients. Some national IP offices may also offer such services for a fee (see, for example, the Swiss Federal Institute for Intellectual Property).

In conducting an FTO search and analysis, it is important to bear in mind some of the limitations of patents that offer potential opportunities to the firm conducting an FTO analysis.

Patent protection is territorial. Companies generally make strategic decisions about the countries in which they will seek patent protection. In many cases, technologies may be protected in a company’s main markets but may be in the public domain in other countries where commercialization is less likely. In the latter countries, no permission (or license) will be needed from the patent owner to commercialize the product.

Patents have a limited duration. Patent protection lasts for a maximum period of 20 years, provided the patent is "maintained" for the entire period by timely payment of maintainance fees to the patent office concerned. After the expiry of the term of protection, a patent is considered to be in the public domain and may be freely used by any one. This is the case, for example, of the famous patent on transistors. It is estimated that less than 25 % of all patents granted through the European Patent Office (EPO) are maintained for the maximum term of protection of 20 years, implying that many patents are in fact abandoned by the patent holders (by not paying the maintenance fees) before the 20 years have lapsed, leaving a large number of useful technologies in the public domain.

Patents have limits of scope. Probably the most important part of a patent document is the claims. The claims determine the scope of the patent and all aspects of an invention that are not covered by the claims are not considered to be patented. It is important to bear in mind that it is not always easy to determine the scope of a patent. It requires considerable skills and experience in interpreting the

claims, the written specification (as the claims are often interpreted in the light of the specification) and the prosecution history (i.e. the history of the application process).

Strategies for Obtaining Freedom to Operate

An FTO analysis based on the search of patent literature is in many ways just the first step. If the patent search reveals that there are one or more patents that limit your freedom to operate, your company will have to decide how to proceed. Assuming that the blocking patent(s) are valid, some of the most common strategies for having freedom to operate are the following:

Purchase the patent or in-licensing. Licensing implies obtaining a written authorization from the patent holder to use the patented technology for specified acts, in specified markets and for a specified period of time. The convenience of such an agreement will depend largely on the terms and conditions of the proposed license. While there is a risk of a potential loss of autonomy determined by the terms and conditions of the agreement and the patent holder will require a lump-sum and/or periodic royalty payments, it may also be the simplest way of clearing the grounds for the commercialization of your new technology or product.

Cross-licensing. Cross-licensing is when two companies exchange licenses in order to be able to use certain patents owned by the other party. This is the case of the example mentioned at the beginning of this article about the three pharmaceutical companies. Cross-licensing requires that your company has a well-protected patent portfolio that is of value to potential licensing partners.

Inventing around. A third alternative for your company is to invent around the invention. This implies steering research or making changes to the product or process in order to avoid infringing on the patent(s) owned by others. For example, if your freedom to operate is limited by a process patent, then your company may be able to develop an alternative process for arriving at the same or similar end result and thus be able to commercialize the invention without the need to pay a licensing fee to someone else.

Patent pools. A patent pool is one mechanism by which two or more companies practicing related technologies put their patents in a pool to establish a clearinghouse for patent rights. A well-known example of a patent pool is that formed by Sony, Philips and Pioneer for inventions that are essential to comply with certain DVD-Video and DVD-ROM standard specifications.

Protecting your technology

If the patent search reveals that there appear to be no patents blocking your access to market and your new technology is likely to meet the patentability criteria, you may wish to seek patent protection for the new technology to ensure a greater degree of freedom to operate, instead of keeping it as a trade secret. The patent will provide your company with the exclusive rights over the new technology ensuring that nobody else can use it without your prior authorization. It will also ensure that no one else will be able to obtain exclusive rights over the technology in the future.

Nevertheless, it is important to point out that there is a clear limit on the extent to which a patent owner has the freedom to operate or use such a patented invention. A patent by itself does not provide you the right to commercialize the protected technology but only the right to exclude all others from commercializing it. While the difference may seem subtle, it is a crucial distinction that needs to be made. A third party may, for example, have an even broader patent that encompasses the subject matter of your patent.

Therefore, in order to commercialize a given technology you may need to use technology patented by others. In biotechnology, the Cohen-Boyer patent on recombinant DNA is a classic example where, for many years, almost any new technology in that area required the use of the technology developed by Cohen and Boyer and the payment for obtaining the relevant license. In addition, there may be overlapping or complementary patents owned by different parties that are mutually blocking the access to market. Finally, there may be additional government regulations that are not directly concerned with intellectual property that may restrict the access to market of a patented invention (e.g. regulations for food or pharmaceutical products).

Despite the above, it is important to stress that "freedom to operate" is one of the reasons why a number of companies apply for patent protection. While the above analysis shows that the grant of a patent is not sufficient to clear the way for the commercialization of the new technology or product, it is certainly a useful step and strategic business decision that may prevent problems at a later stage.

Defensive Publishing or Technical Disclosures

There are many reasons why a company may wish to avoid patenting a given invention, ranging from the understanding that the invention may not meet the patentability criteria to a willingness to avoid the costs of patenting. An alternative that is increasingly used by many enterprises is that of "defensive publishing" or technical disclosure, in sharp contrast to keeping it as a trade secret.

Defensive publishing implies disclosing an invention to the public in order to ensure that nobody else is able to patent it. This will ensure that nobody has the right to exclude others over the use of the invention, providing some degree of freedom to operate to all. An important point when publishing defensively is that the disclosure is done in a well-recognized technical journal or other publication that is likely to be consulted by patent examiners who will be checking the literature while examining future patent applications. There are journals devoted to defensive publishing some of which have become respected

sources of technical information that are included as part of the PCT minimum documentation for International Search Authorities. Defensive publication is generally never done for a major breakthrough in technology or a core technological invention that is or will be the core strength of an enterprise.

Some large corporations rely on their own technical disclosure bulletins (e.g. Xerox) which are widely disseminated in order to disclose inventions that are not patented. In the US, the USPTO enables applicants to request the publication of a Statutory Invention Registration (SIR) of a filed patent which is effectively a technical disclosure of an invention for which a patent was applied. In registering an SIR, the applicant abandons the prosecution of the patent, in exchange for the disclosure of the invention by the patent office.

Conclusion

Whatever manner is chosen to limit the chances of facing potentially risky and expensive patent litigation, all technology companies are well-advised to look into the matter early on in the research and commercialization process. In some cases, minor product adaptations, or payment of a small licensing fee to the patent owner may be sufficient to avoid future disputes. Systematically evaluating your freedom to operate prior to launching a new product is, therefore, a way of minimizing (but not eliminating) the risk of your product infringing the patents owned by others. It will also improve your chances of finding business partners and attracting investors to support your business development plans.

Case Study : Uruguayan Enterprise IP strategy in the IT sector - Memory ComputationAt the same mega event during which Bill Gates launched Office XP in New York at the end of 2001, with the song Ray of Light by Madonna playing in the background, Microsoft introduced to the audience a software package Made in Uruguay. Created by Memory Computation, the software was Memory County, an accounting program for small and medium-sized enterprises, developed so as to be integrated with Office XP.

How does an enterprise from a small country such as Uruguay manage to transform itself into a global enterprise, present in the main Latin American markets? That is the challenge which Memory Computation set itself, as a company which claims to be synonymous with technological solutions for SMEs.

Memory Computation is an enterprise not unaccustomed to receiving recognition. In the course of its 17-year existence, it has received the El Genio (The Genius) prize, the classic statuette by the sculptor Pablo Damiani, which symbolizes the prize of the

ProSMEs network for innovation, in 1999, under the heading of goods and services design. The National Quality Assessment Committee honored it in a television tribute and its product Memory Magus was presented with the distinguished Guía Award, as the best Uruguayan software. The Endeavor Foundation selected Memory from among 500 enterprises in Argentina, Brazil, Chile and Uruguay as an example of entrepreneurship in the region.

With a solid course of development in Uruguay, Memory represents the de facto standard in the Uruguayan market for small and medium-sized enterprises that need to solve their administrative, commercial and accounting requirements.

An independent study recognizes it as representing 71 per cent of the market, with more than 40,000 enterprises which use the Memory software directly or indirectly for management purposes. It is used directly in Argentina, Chile, Ecuador, Guatemala, Mexico, Paraguay and Uruguay, and soon will be in Spain, while its products are in demand in virtually all the countries of Latin America.

Immediately after cornering the market in its country of origin, Memory undertook to consolidate its operations in the rest of Latin America. For this reason, it understood that the success of its management was due not only to its series of products, but to a carefully composed and improved business model, directed toward the SMEs segment, which has proved itself to be successful and profitable, and that can be reproduced in different countries.

The business is based on a proven methodology which provides SMEs with technological solutions, using appropriate procedures for generating demand, marketing and after-sales service.

The international development of Memory Computación has been based on a Franchising Model which has proved to be successful and profitable, and can be reproduced in all the countries where it has been implemented; it has been highlighted by publications such as América Economía and the Entrepreneur Magazine as a great opportunity for business.

IP StrategyMemory Computation has three main assets which are intangible, all of them IP assets:

The Memory Computation Software The Memory Computation Trademark The Memory Computation Business Model.

For this reason, Memory systematically considers the measures necessary for the protection, management and enforcement of its rights, for the purposes of obtaining the best possible commercial results through its ownership.

The Memory Computation SoftwareThe development of the Memory Software involves a team effort which combines the creative ideas and talents of engineers, management and administration experts, and graphic designers. In the same way as the majority of creative works, the software is protected by intellectual property laws, more specifically by copyright laws.

Each copy of the Memory Software includes a license for use, which states that the software is duly protected by copyright laws and prohibits it being copied or reproduced in full or in part for any purpose other than back-up as a form of support for use of the software.

Memory has taken a conscious and proactive approach, and has duly registered its software in the different countries in which it operates.

Nevertheless, as it is aware that intellectual property infringements and, in particular, software piracy continue to be very high in number, especially in these regions of the world, Memory Computation has defined a parallel strategy to protect its products.

On the one hand, it has incorporated in its software a series of technological mechanisms to avoid the software being too easy to copy, and has based itself on the quality of its after-sales service and permanent innovation in new versions of its products which are delivered to legitimate clients, so that those clients prefer to use and see value in using legal rather than pirate software.

The Memory Computation TrademarkMemory Computation has invested a great deal of effort in establishing itself as an enterprise synonymous with technological solutions for SMEs, in the countries in which it operates. The main reason for this outcome in creating a valuable trademark has not been to engage in self-publicity, but to make a promise to clients which it keeps.

The value of this trademark relates to the prestige which the enterprise has created throughout its history and with what consumers expect from the product or service provided.

Memory has registered its trademarks in each of the countries in which it operates and this has allowed it to protect itself in legal terms, in specific situations in which it has had to defend its lawful rights.

The Memory Computation Business ModelThe success of Memory Computation is due not only to its series of products but to a carefully composed and improved business model, directed toward the SMEs segment.

Conscious of this fact, Memory has made this intangible asset profitable. Its international expansion model has been based on franchising this business model, so as to duplicate successfully its strategy in each market.

In this commercial relationship, Memory Computation grants the franchise holder the right to use its business idea in accordance with his own conception and approach. This right grants the franchise holder entitlement to use the trade name, trademarks and service marks, know-how and other intellectual property rights which the franchise holder possesses, in exchange for economic compensation, agreed within the legal framework of a written contract and signed by both parties.

Innovators are those who create things in places where others have never seen any possibility of doing so. Memory Computation was founded with no capital other than a creative idea and a vision. It has based itself on its constant innovation in achieving and maintaining its current leadership position. An appropriate intellectual property strategy has been key to achieving this success and it will be vital in the forthcoming stages of consolidation and growth.

Application of Marketing Research in Fashion Marketing

Trend setting is a product of fashion marketing. Fashion marketing uses many tools to direct the gaze of its audience toward the chosen trend. Research is at the core of how a fashion trend and marketing campaign is designed. The activities that swirl around that research are where the fashion marketer spends her energy. Fashion marketing techniques are meant to spin past the campaign and into the minds of potential buyers.

Definition1. Wooing the potential customer is what fashion marketing is all about. Fashion

marketing creates fantasy and desire around fashion products--garments, accessories, shoes, handbags and more--to entice people to purchase these items. Sales strategies promote the color, design and textiles of fashion within retail stores, on runways, in magazines, on television and on the Internet.

Fashion Marketing Careers2. Fashion marketing is a combination of style and business strategy. The industry

requires a number of different players to fuel the fashion marketing process. Careers include fashion market researcher, trend forecaster, sourcing expert, visual merchandiser, fashion copywriter, promotions expert, fashion advertiser, fashion graphics artist, communications director and marketing manager. Fashion

marketers design product launches, product promotions and branding campaigns, and they conduct market research.

The Structure of Fashion Marketing3. Fashion marketing uses the same basic planning tools other industries do, but

within a much shorter time frame. The cycle of the fashion industry is based on up to eight different seasons or windows per year. Planning and marketing occurs in a very fast-paced environment. Fashion marketing must encompass the huge variation in potential customers while maintaining a hold on budget and marketing strategy.

Fashion Marketing Education4. You can best achieve your goal of a career in fashion marketing education by

including both of its aspects: fashion and marketing. You should educate yourself not only about the business side (economics, planning, forecasting, cost analysis, inventory control) of fashion but also the actual design and production process. Parsons, The New School For Design, offers a Fashion Marketing degree that can be earned online or at their New York campus. It offers internships in the real world of fashion and includes both a design and marketing curriculum.

Examples of Fashion Marketing5. "Fashion Weeks," and the flurry of activity that surround them, are a fashion

marketer's dream. These week-long fashion events are scheduled twice a year in the span of three months (January to March and September to November) and happen in all the fashion hot spots (New York, Milan, Paris and London) as well as many, many other cities across the globe. The trunk show is an example of fashion marketing that stems from Fashion Week. Trunk shows are private showings of a fashion line directed at retail personnel and special customers and are intended to promote the purchase of a particular designer's garments.

In keeping with fast living, and the physical and social stress factors that go with it, SPA culture in India is driving people back to nature for various health treatments and thus opening new gateways.

The term SPA is associated with water treatment, also known as balneotherapy, and is available in spa resorts where treatment, medication and equipment related to water therapy is offered.

According to reports, an Indo-Swedish joint venture is likely to start functioning this year under the brand “The Spirit of Seven” and its first spa is proposed to be set up in Gurgoan, Haryana. This joint venture will be established with the help of Nordic Academy in Sweden, which specialises in various facets of spa culture, providing a variety of rejuvenation therapies.

“The aim is to heal body, mind and soul and for this, ayurveda, meditation, yoga and naturopathy will be integrated with modern methods of healing,” said Marie Andern from Goteborg. The joint venture company, Seven Senses, had been floated with an initial capital of Rs. 20 lakhs (29,158 euros), and the other three Indian collaborators for this joint venture are BK Goswami, Raju Bharat and Ravinder Raj, all associated with the tourism and hospitality industry, she added.

Marie and her associates, who see great potential in other India cities, are planning to set up another such facility, and an education centre with club management, in and around Chandigarh, which according to them is ideal for such ventures, given its unique location and infrastructure.

ManU to Cater to Indian Taste Buds

For all you foodies and sports enthusiasts, here is something to look forward to. The world’s richest sports club Manchester United is now aiming to give a ‘kick’ to the Indian taste buds by setting up a chain of café bars and restaurants here. They plan to start with Mumbai and then set up in Kolkatta, Bangalore, Pune and Delhi.

ManU Restaurant

ManU’s investment into the Indian market is said to be around 1.42 billion euros. The first Manchester United Restaurant and Bar, a franchise dinning outlet of ManU, will be opened in Mumbai in October and there are plans to open four more. According to reports, Delhi-based Billionaire Sports  has got the license from Manchester United Food and Beverage-Asia (MUFB) to open these restaurants here.

In India, where cricket is treated as a religion and football has a huge fan following, it thus becomes the most obvious reason for ManU’s latest move.

“About 10 per cent of the total Asian population are ManU fans with a sizeable chunk from India and for a successful business one needs a market that is growing and dynamic and thus, India is the best option,” said Andy Yun, CEO, MUFB Asia.

After the economic success of IPL, ManU’s moves are sure to be watched carefully for commercial benefits.

European shoe makers turn to   India

European shoe makers who were formally outsourcing their manufacturing to China are now looking to India. Many European companies have announced that they are going to be setting up manufacturing facilities in India.

One of the biggest reasons for the shift is that manufacturing in China is no longer cheap, owing to the rise in labor costs which have risen 40 percent since early January 2008. Another big factor is that the Chinese yen has appreciated against the US dollar raising over all manufacturing costs.

Nike in India

In 2007-2008 India’s footwear exports was valued at $1,475 million. Compare that to its previous exports which are valued at $1,236.91 million during the same period prior to 2007. This is shows a large increase of 19 percent in footwear exports.

Big names in the global footwear industry such as Addidas, Nike and Puma are expected to open up manufacturing facilities and reroute their production to India. Growth-Link Overseas, the Hong Kong based subsidiary of Taiwanese sports shoe major Feng Tay Enterprise, is investing INR300 crore (US$73.8m) in Tamil Nadu to setup a manufacturing facility on 275 acres of land at the Cheyyar Industrial complex located in Tamil Nadu, which will be responsible for manufacturing Nike shoes. The aim is to produce 1 million pairs of shoes each year.

Direct Sales Businesses Boom in   India

Companies such as Amway, Mary Kay, Tupperware India etc are reporting a huge 40-50% jump in their sales team over the past six months. The sudden increase in the sales force has surprised the Rs 3,000 crore ($630 million) direct selling market in India.

Amway

According to Amrnath Sengupta the head of Daehsan trading the increase is mainly because people feel that they can make good money though direct selling. Amway is the

largest direct selling company in India and holds 35% of the direct selling market. Amway has reported a 40% increase in its sales force over the past six months.Mary Kay a cosmetic direct selling company has experienced a 50% increase in its sales staff. It currently has 3500 women in its sales them that are helping it rapidly expand.

The economic slowdown is sort of a blessing in disguise for direct selling companies in India with many people either loosing their jobs or with a fear of loosing their jobs amid a gloomy outlook have taken up direct selling. This rapid increase in their sales force has also boosted their income to new heights as each new recruit is also a buyer.

WATCH MAKERS ENTER LUXURY ACCESSORIES   INDUSTRY

Leading names in the watch industry are looking at India as a prime location to diversify their businesses. The companies are stepping into the country’s Rs. 200 crore (30 million euros) luxury accessories business and banking on brand loyalty to reap success.

Among these watch makers are power brands such as Tag Heuer, Christian Dior, Omega, Calvin

Nicole Kidman, Brand Ambassador Omega Asia

Klein and Fossil. Swiss watch brand Tag Heuer recently launched its cell phone collection, as well as accessories such as wallets, cufflinks and visiting card holders.  Another Swiss watch maker, Omega, is introducing its leather accessories line in India soon. This would include wallets, key chain holders and messenger bags in Italian calfskin leather, for both men and women.

French designer brand Christian Dior will also soon launch a classy cell phone range for India. Fashion biggie, Calvin Klein, is set to launch their jewellery range here soon.

US-based watch maker Fossil has already released its leather accessories and sunglasses line.  Realising the potential India has for expansive growth in the fashion segment, the company has tapped into the two key elements of the fashion industry – leather and eyewear.  With so many big names looking at India as a strong market for luxury accessories, considering the country’s present generation’s spending power, it won’t

come as a surprise if many more businesses join the band wagon.

The political marketing planning process: improvingimage and message in strategic target areasPaul R. Baines

Middlesex University Business School, London, UK

Phil Harris

Manchester Metropolitan University, Manchester, UK

Barbara R. Lewis

Manchester School of Management, Manchester, UK

Introduction

The major political parties in the developed world are beginning to embrace

The marketing concept and process. The UK Conservative Party has used

the services of Saatchi and Saatchi in the 1980s, as did the Irish President,

Mary Robinson in her campaign in the 1990s (Dunnion, 1998). The British

Labour Party has incorporated focus groups in its 1990’s activities (see

Gould, 1998). In Germany, the Green Party and SPD used marketing

management techniques to defeat Helmut Kohl (Baines et al., 1999a).

Nevertheless, marketing planning for political parties has, until now, been

neglected in the literature and there appears to be a lack of consideration of

the strategic components associated with political marketing campaigns

(Butler and Collins, 1996; Farrell, 1996; O’Cass, 1997; Baines et al.,

1999b). In this article, findings from a recent research investigation, which

focused on developing a marketing planning model for political parties in

the UK, are outlined. The research incorporates discussion of campaigning

techniques with UK Members of Parliament and senior party workers and

outlines a marketing planning framework for political parties. Discussion of

this model includes: information gathering and constituency identification,

competition and voting group determination, party positioning and voter

group targeting, and post-election analysis.

The emergence of political

marketing

Political marketing as an academic discipline is a relatively new and

embryonic area. Most current definitions of political marketing (Shama,

1975; Lock and Harris, 1996; Wring, 1997) identify the political marketing

process as concerned more with the communication process between voters

and political entities (either parties or candidates) neglecting

organisational components.

The relevance of particular aspects of

marketing theory for political entities has

been illustrated by numerous authors, e.g. therelevance of the marketing mix for politicalparties (O’Leary and Iredale, 1976), and theuse of ACORN as a segmentation base forvoter targeting (Yorke and Meehan, 1986).However, as Smith and Saunders (1990) haveidentified, it is through the more strategicuse of marketing techniques that the targetmarkets’ wants and needs, and the necessarypolicy decision-making to satisfy these wantsmore effectively, will truly emerge. In order

to bridge the gap between what the voters

want from a potential government and what

candidates and parties propose (whilst still

generating ideologically credible policy and

image platforms), the use of marketing

planning is advocated.

Marketing planning and political

parties: the odd couple?

Lock and Harris (1996) have suggested that

``political marketing as a discipline has to

develop its own frameworks, adapting those

from the core marketing literature and,

second, that it has to develop its own

predictive and prescriptive models if it is to

inform and influence political action’’. The

model, put forward in this paper, which

illustrates co-ordinated campaigning is

intended to adhere to this theme and serve

the purpose of ensuring that political parties

compete for public support[1] more

efficiently and effectively.

The research register for this journal is available at

http://www.emeraldinsight.com/researchregisters

The current issue and full text archive of this journal is available at

http://www.emeraldinsight.com/0263-4503.htm

[ 6 ]

Marketing Intelligence &

Planning

20/1 [2002] 6±14

# MCB UP Limited

[ISSN 0263-4503]

[DOI 10.1108/02634500210414710]

Keywords

Marketing, Planning, Politics

Abstract

A marketing planning framework

to aid political parties in improving

their image and co-ordinating

election campaigns has been

developed to reflect the changing

nature of electoral campaigning in

the developed world towards the

need for more long-term planning;

together with the development

and implementation of marketing

models in a wider sphere of social

situations. The planning model has

been developed using both a

hypothetico-deductive and an

inductive approach, incorporating

recent developments in US and UK

political campaign management

and depth interviews with political

strategists in the UK. Suggests

that national political parties need

to co-ordinate their election

campaigns more effectively in

order to strengthen their image

among key citizen and voter

groups by determining which

target areas are most in need of

resources. Further research is

needed to determine how to

position the party and to select

and place advertising in the

relevant media. Concludes that

local election campaigns are

becoming more co-ordinated by

national parties but that such coordination

neglects to provide

local area research and

telemarketing campaigns, and

post-election analysis exercises to

monitor strengths and

weaknesses in party strategy and

campaign plan implementation.

The arguments that political campaigns

cannot run on a strategic level fail to

recognise the significant efforts of the US

Republican Party in the 1980s, and the

British Labour Party in the 1990s ± both of

which had had poor party images ± to rebuild

their reputations and improve their electoral

success through the combined use of polling,

qualitative research, coherent advertising

themes, and effective strategy teams

focussing on message development and

deployment, and party re-organisation. The

timescale of conducting such campaigns

stretches beyond the formal election

campaign period (four or five weeks in the

UK, one year in the USA). The UK Labour

Party put together a campaign management

team in 1985 for the 1987 election (Smith,

1994).

Not surprisingly, there are aspects of the

political campaigning process that are

described more effectively using concepts

from political science rather than marketing.

Particularly pertinent examples of these

phenomena include: ticket-splitting (where

voters vote for a different party for two or

more political offices, i.e. the USA

especially); traditional, personal and tactical

voting behaviour from a consumer behaviour

perspective (phenomenon particularly

associated with the UK); canvassing

(particularly in less developed countries such

as Namibia); and comparative and negative

advertising from a communications

standpoint (stronger in the USA). From a

competitive perspective, political parties

operate in situations which are relatively

more akin to an oligopoly than the general

consumer marketing perspective generally

(though not necessarily) associated with

more perfect competition. Nevertheless,

there are many similarities between political

marketing and traditional fast moving

consumer goods marketing (FMCG) and it

can be argued that the differences have been

overstated (see Egan, 1999).

Nevertheless, in the light of these apparent

differences between the two subject

disciplines (Butler and Collins, 1994; Lock

and Harris, 1996), and the fact that there

appears to be a high degree of synergy

between political campaigning and

marketing (Mandelson, 1988; O’Cass, 1996),

there is a need to determine the area of

overlap between marketing and political

campaigning as techniques for informing,

communicating with, ``connecting’’ with,

persuading and reaching the electorate (and

citizens generally) inside and outside an

election cycle.

Earlier political marketing models (such as

those described by Newman (1994) and

Maarek (1995)) have neglected to emphasise

the importance of local campaigning and its

organisational implications; a particularly

important process in political campaigns

operating with constituency-based systems.

Both models assume that segmentation and

targeting takes place within the national

context only. Local campaigning has been

neglected in the political marketing

literature, despite political scientists’

estimations that such efforts can affect the

vote significantly, particularly in marginal

constituencies (see Curtice and Steed, 1980;

Norton and Wood, 1990; for opposing views

on the importance of local campaigning).

Local campaigning is becoming

increasingly important in first-past-the-post

electoral systems (which operate in the UK

and the USA) since the priority is not to get

an overall majority of individual votes but to

obtain an overall majority of individual

seats. Local campaigning is also important in

other electoral systems such as those using

single transferable vote (STV) and

alternative vote (AV) systems. Thus, the

implication that one area is more important

than another gives rise to the need to target

those areas that are more likely to change

their allegiance (see Niffenegger, 1989; for a

discussion of this concept from a US

perspective). Any electoral system which

relies on constituencies as the primary

electoral unit has this in-built facet that

some constituencies may be more important

than others in determining the election

outcome.

McDonald (1989) describes the purpose of

marketing planning as ``the identification

and creation of competitive advantage’’.

Political marketing planning[2] aims to

determine how to generate and retain public

support for party policies and programmes.

The creation of competitive advantage occurs

through the determination and conduct of the

party’s positioning strategy and the

consistent communication of this strategy

in defined key areas of the country in the

local context, as well as nationally through

the broadcast channels (press, radio,

television).

Table I has been developed using five

factors associated with strategic marketing

planning (Palmer, 1994) and illustates how

marketing planning is being used for

political campaigning.

The framework for co-ordinated local

campaigning, put forward in this article,

attempts to incorporate these five key

requirements of marketing planning into a

cohesive framework. It is likely that coordinated

local campaigning will become an

area of growth in what could transpire to

[ 7 ]

Paul R. Baines, Phil Harris and

Barbara R. Lewis

The political marketing

planning process: improving

image and message in

strategic target areas

Marketing Intelligence &

Planning

20/1 [2002] 6±14

become a Europe of Regions and the recent

trend advocated by the UK Labour Party for

more direct contact with the public, in the

form of referenda (e.g. Welsh and Scottish

devolution, a strategic Greater London

Authority, Euro entry etc.).

Methodology

The objective of this research study was to

produce a marketing planning model for

political parties in the UK political system,

but one that could also be used by other

political parties operating in constituencybased

electoral systems (particularly firstpast-

the-post) around the world. This model

aims to aid political strategists in

determining which local areas, and floating

voters within them, are most at risk of

switching their allegiance from one party

to another.

In-depth interviews were carried out during

February to April 1996 with five Members of

Parliament and one party agent for six

marginal constituencies in the UK: Rochdale,

Oldham East and Saddleworth, Hazel Grove,

Batley and Spen, Dewsbury and Bradford

South. In addition, in-depth interviews were

held with three senior campaign executives:

the Key Seats Manager of the UK Labour

Party; the Director of Campaigns and

Communications of the UK Liberal

Democrats; and the Director of Campaigning

for the UK Conservative Party.

The interviews were designed to determine

the method of campaigning that political

parties currently used to assess whether or

not it could be refined into a marketing

planning model. Analysis of the interviews,

from a marketing planning perspective,

revealed a number of important points. The

campaign executive for the Labour Party

stated that they would target 90 seats for the

Table I

The factors associated with political marketing planning

Market ing plan ning functio n Politic al marketing c ontex t

Market po sition an aly sis T his require s a d etermination of how voters

perceive the partie s a nd

indiv idua l candida tes in d iffere nt a reas of the electora l battlegrou nd. It

may

b e th at th e p arties’ compe titive position s a re d iffe re nt in differe nt

region s of

th e country

Objective setting T he party ne eds to de termin e whic h issues it will comp

ete on and w hich

v oter and citizen grou ps it w ill try to resona te w ith and w hethe r o r not

this

is po ssible w ithin th e c onstrain ts o f the organis ation

S tra te gic alte rnativ e evalu ation W hich segments of th e e lecto ra te

should p arties comm unicate with, usin g

w hic h messages? Sh ould multiple se gments be targeted with multiple

m essages? Public opinion po llin g a nd qualitativ e research ca n be used to

guide and d evelop message dev elo pmen t an d rec eip t, and me asure and

a sse ss segme nted group s’ stability, accessibility and substan ce

S tra te gy implemen ta tion T he politica l strate gist needs to allocate the ne

cessary resou rc es to the

ta rge ting proce ss in volv ing message dissemin ation throug h press, radio,

te levision (both ad verts and pub licity) and dire ct mail. In po litic al

c ampa igns, on e major pro blem oc currin g is one o f uncertainty rega rd

ing the

flow of do natio ns th at w ill b e re ceived by the party . Thus , parties h ave

e xperienced fin anc ial difficu lties in the pas t (e.g. the British Con se rvativ

e

Party ’s sizea ble o verdraft after the 19 92 British General Election) . Th is

largely de pend s o n the sy stem of public financ in g w hich is ope rating in

the

c ountry co ncerne d

Mon itorin g an d contro l S inc e th e ma rke ting pla nning p ro cess attemp

ts to match o rgan isational

reso urces w ith market oppo rtunities and threats, whilst c onsidering the

o rga nisa tion’s stren gths a nd wea kn esses, the process of m onitoring th e

e xternal e nvironment an d evaluatin g a partic ula r strategy ’s impa ct upon

that

e nvironment is paramoun t. In the p olitic al con text, th ere is a n eed to

d etermin e whe th er or not se gmented v oter groups have been targeted

p ro perly w ith the correct messages. In the UK, the Lab our Party cond

ucted

large numbe rs o f focus groups after its failure in the 199 2 e lect ion

(Gould,

1 998) wh ilst Bob Dole, the failed pre siden tial ca ndida te in the USA, a

lso

h ad one of his consultants cond uct a ``p ost-mortem’’ (persona l interv iew

w ith US politica l consultant, W ashin gton DC, Ja nuary 19 98). Bob W

orce ste r

(1 999) recomm end ed cond uc ting p ost-elec tion analysis to British Prime

Min ister Harold W ilso n in 1974

[ 8 ]

Paul R. Baines, Phil Harris and

Barbara R. Lewis

The political marketing

planning process: improving

image and message in

strategic target areas

Marketing Intelligence &

Planning

20/1 [2002] 6±14

1997 UK General Election. These seats were

all held by the main opposition parties

(mostly Conservative but a few were Liberal

Democrat) and the vast majority needed

swings of less than 5.0 per cent[3]. The

director of campaigning for the

Conservatives stated that they were

interested in about 100 seats and that the

allocation of resources (in terms of targeting

seats) depended on the importance of the

local candidate and patterns of migration in

each individual seat. The director of

campaigns for the Liberal Democratic

Party also stressed the importance of local

factors:

Yes, local factors are important to us and they

are cultivated by our camps on the ground.

When we tend to win it is often because we

have a strong, effective, local candidate who

is in touch with the local issues and who has

built a strong personal following. The

personal vote is much more important on the

Lib Dem side than it is if you are a

Conservative or Labour candidate.

The central premise of the targeting

approach in this research is that the

constituencies which are currently most at

risk of switching their allegiance can be

identified by comparison with constituencies

that were in a similar state (in terms of

majority[4] and the swing required) at a

previous election.

A marketing planning framework

for political parties

A marketing planning framework needs to

take into account the realities of the

environment and allow for rapid change (e.g.

partisan allegiance, changes in public

opinion). The framework (see Figure 1)

should incorporate the detail of the various

political phenomena (e.g. tactical voting,

traditional voting, personal voting, the

importance of by-elections, defections,

deselections and immigration/emigration

patterns) in order to reflect the reality of the

campaigning process.

Planning model stage 1: information

gathering and constituency identification

In this stage, constituencies that are most

likely to change their allegiance are

identified, since such constituencies are

particularly important and resources can be

targeted more effectively at these

constituencies, thus, saving political parties

both money and time.

Historical data

Knowing the party’s vote-share and major

source of competition at the previous election

is important when targeting constituencies

and in the determination of how the

candidate and local party should attempt to

persuade the electorate that their message is

more appropriate than that of a rival party.

Census statistics

The political strategist needs to monitor the

demographic structure of the constituency

on an ongoing basis so that changes can be

identified and key voters and citizen groups

(outside an election) located so that

appropriate action can be taken. Thus,

census data statistics are important in

determining the location of the relevant

groups since socio-economic (and other

relevant targeting) data may have been

mapped in the census.

Constituency ranking

In a first-past-the-post electoral system, a

simple majority of seats needs to be gained

for a party to form government. Often, these

seats are closely contested and main

opposition parties attempt to gain as many as

practically possible from the incumbent

party in order to form a majority. Each party

should determine the swing needed to gain a

seat. Using constituency research and

canvass records, tactical, traditional and

personal voting adjustments can then be

made to the electorate (excluding non-voters)

to give a ``perceived audience’’ for each party

for each constituency. If the ``perceived

audience’’ is subtracted from the required

swing (expressed in terms of numbers of

voters) for a particular constituency (see

equation below) then one is left with the

potential majority which can be achieved at

the election. The individual constituencies

can then be ranked in terms of the sizes of

their potential majorities. Constituencies

lower in the ranking list should not receive

the same level of resources as other

constituencies of higher ranking, since they

are less likely to change their political

allegiance[5].

Ranking equation:

Perceived audience ± Required swing[6] =

Potential majority

The combination of constituency research,

census statistics, canvass records and

historical data allows the political strategist

to determine the principal competition and

who are the relevant groups that need to be

targeted. Shea (1996, p. 68) has stated that

``together, demographic research, survey

data and prior electoral data merge to form a

powerful targeting weapon’’. Such data

should also give an indication of the level of

tactical and personal voting.

[ 9 ]

Paul R. Baines, Phil Harris and

Barbara R. Lewis

The political marketing

planning process: improving

image and message in

strategic target areas

Marketing Intelligence &

Planning

20/1 [2002] 6±14

Constituency research

Constituency research is vital for a full

understanding of the current position of the

major parties within a constituency, since

historical voting data does not give any idea

of recent changes in the partisan nature of the

seats. Constituency research should focus on:

current level of support;

types of people who support particular

parties (indicating the major

competition);

types of people who have changed their

support for a particular party since the

previous General Election;

electorate’s feelings regarding particular

issues and policies;

level of tactical and traditional voting; and

whether or not the personal vote is

significant.

Constituency research feeds into most

aspects of the political planning process. The

national party should conduct surveys in the

target constituencies, i.e. those that are

ranked highest in the ranking exercise, in

order to provide a current overview of the

political situation. This research should

determine voters’ partisan allegiance in the

different constituencies, thus providing an

indication of which party is in closest

contention whilst also attempting to

determine which messages will ``connect’’

most with the floating voters within a

particular constituency. It has been rare, in

the past, for political parties in most Western

European countries to research

constituencies systematically in the manner

described above, probably due to the lack of

market orientation and the lack of its

perceived importance. This is slowly

changing (see Plasser et al., 1998).

Canvass records

Canvassing the electorate helps parties in

targeting individual voters on election day in

the get-out-the-vote (or ``knocking up’’) effort.

Figure 1

Political planning model for local campaigning

[ 10 ]

Paul R. Baines, Phil Harris and

Barbara R. Lewis

The political marketing

planning process: improving

image and message in

strategic target areas

Marketing Intelligence &

Planning

20/1 [2002] 6±14

Canvassing should be undertaken in order to

determine the supporters of the particular

parties, e.g. floating voters, so that the local

constituency organisations can tailor specific

messages to the relevant sections of the

electorate for voter persuasion.

Planning model stage 2: competition and

voting group determination

This stage concerns determining the main

competition and segmenting the various

voter groups, incorporating all the recent

data from canvassing and constituency

research.

Competition determination

The political strategist needs to determine

which party provides the biggest threat

within each individual seat so that he/she

can then provide an appropriate policy

platform to counteract the opposing parties.

Generally, the determination of the

competition within a seat is best provided by

a combination of previous general election

voting data and other election results[7]. This

information should allow the strategist to

determine which sub-areas within a

particular constituency are more likely to

vote for a particular party. This is an

important process since certain sub-areas

within marginal constituencies may contain

more or fewer marginal voters. Thus, the

process of competition determination is, to

some extent, a by-product of the constituency

ranking and research exercises.

Segmentation of relevant voting groups

In order for the parties to change or keep a

seat’s allegiance, they need to approach those

voters who are most likely to change their

vote to the main opposition party (except

where a third, and even fourth, party is in

very close contention with the incumbent).

Constituency research should help to point

out useful segmentation bases (particularly

using CHAID analysis ± a technique

commonly used by US political

campaigners). Those segments which are

most important, in either securing a seat or

changing a seat’s allegiance, would then be

targeted using appropriate media.

Planning model stage 3: party positioning

and voter group targeting

In this stage, strategists are concerned with

which issues the electorate considers are

important and how to disseminate

appropriate messages.

Party positioning

In order to increase their own support,

political strategists typically use policies,

issues, ideology and reasoned argument, as

well as style of presentation, to attempt to

win the battle for the minds of the voters.

Positioning is the process of ``connecting’’

with voters: the process of developing a

campaign theme that consists of convergent

policy stances on issues. Bradshaw (1995,

p. 43) defines theme as ``the rationale for your

candidate’s election and your opponents’

defeat. It is the single, central, idea that the

campaign communicates to voters to sum up

the candidate’s connection with the voters

and their concerns and the contrast between

your candidate and the opponent’’.

Party positioning is a crucial aspect of the

political marketing process because the

strategist uses it to set out the policies which

the party applies to persuade the electorate

(and citizens) to support them inside and

outside an election. It is also important to

note that parties need to select a theme (e.g.

policy on Europe) and aspects of that theme

(e.g. specific policies relating to further

integration, agriculture etc.) which connect

with voters. Selection of this theme becomes

paramount because parties cannot later

attempt to use a theme which is not

consistent with their original policies,

statements and ideology since this may well

be picked up by the opposition parties’ media

spokespeople in a process known as rapid

rebuttal which may, subsequently, be picked

up by the media or directed at the media by

opposition party spin-doctors. Specific

policies should be directed at voters in terms

of how concerned with the particular policy

the electorate is and the extent to which the

policy fits the political entity’s ethos (Baines

et al., 1999b).

Although research is being conducted in the

USA and Western Europe into how to position

candidates and parties by either the parties

themselves or campaign committees, the

process is relatively less sophisticated in

Western Europe (Plasser et al., 1998),

principally due to the lack of market

orientation that most parties have in major

Western European countries. This trend is

changing due to the use, by European political

parties, of US political consultants as advisors

in recent elections (Plasser et al., 1998).

Voter group targeting

Once the agenda for the constituency has

been developed and the political strategist

has determined the targets, the constituency

organisation will generally deliver its

message through door-to-door canvassing,

telephone canvassing, direct mail and local

meetings. Different constituencies usually

adopt a mix of different methods, for example

in a rural constituency, a certain amount of

telephone canvassing might occur in order to

save time and expense.

[ 11 ]

Paul R. Baines, Phil Harris and

Barbara R. Lewis

The political marketing

planning process: improving

image and message in

strategic target areas

Marketing Intelligence &

Planning

20/1 [2002] 6±14

Planning model stage 4: post-election

analysis

The essence of good marketing planning is to

learn from previous successes and failures and

to build these into future planning strategy.

The party should ensure that a positive image

is maintained outside the election cycle. This

stage attempts to determine what lessons can

be learned from previous strategies.

Post-election analysis

Post-election analysis aims to determine

whether or not the correct voter segments

were targeted successfully. This requires

further research into why the electorate

voted the way that it did. In addition, the

constituency results may be used to increase

the accuracy of the constituency ranking

exercise, since one will be able to compare

the actual majorities with the potential

majorities at the end of the election.

The constituency results will also allow the

party consultants and managers to further

refine the segmentation bases used, since

post-election analysis and research will

indicate whether the correct segments were

targeted and whether they received (and

believed) the messages directed at them.

The boundaries of the political

marketing planning model

Tactical, personal and traditional voting are

all considerations which are taken into

account in the model when deciding which

constituencies to allocate the available

resources to and which voters to target within

these constituencies. However, such factors

are in continual flux and their estimation is a

difficult and time-consuming process. Many

politicians genuinely feel that marketing has

no place in politics and so they resist attempts

to orient themselves and their parties more

towards the populace they exist to serve.

The effect of the political corporate culture

on marketing planning is not considered in

this paper (see McDonald, 1989; Saker and

Speed, 1992; Leppard and McDonald, 1991 for

a general consideration of its effects on

commercial marketing organisations)

although O’Cass (1997) suggests that political

parties in Australia have found the market

orientation process difficult. The effects of

the political system on marketing activity

(Baines et al., 1999a) are not considered

within the scope of this paper.

Implications for political parties

and candidates

Political parties are becoming more

organised in their campaigning activity and

more market-oriented. Despite this, many

European political parties still do not provide

their local campaign teams with positioning,

voter group and post-election data, nor do

they encourage local campaign teams to get

this information themselves. The recent case

in Newark, in the UK, where the victorious

Labour MP had to stand down due to election

expenses fraud (and was subsequently

reappointed on appeal), principally arising

due to the cost of launching a telemarketing

campaign, illustrates the need for the

national party to monitor and co-ordinate all

constituency activity carefully.

Many of the stages of the planning model

were gleaned from interviews with the

different UK Members of Parliament

although they did not all exhibit the different

stages in their campaigns. Since marginal

seats are so important to the national parties,

and in order to work within election law

relating to expenses (which differ from

country to country), political parties need to

commission marketing research and

telemarketing campaigns that transcend

constituency boundaries. This increase in

activity needs to be financed through more

intensive lobbying and direct mail

fundraising campaigns. Once the campaigns

have been conducted, it is important to

determine why the campaigns fared in the

way that they did (something that most

constituency parties neglect to do).

Conclusion

Targeting key voter groups within the

election cycle is important if parties are to

retain, or gain, office. Similarly, parties also

need to maintain and enhance their image

and policies outside the election cycle, if they

are to succeed in the current political

climate. The framework put forward in this

article attempts to illustrate how parties

across the world can more effectively

co-ordinate their campaign activity so that

local campaigns are speaking with the same

voice as the national campaign. Local

campaign teams, particularly in countries

with lesser developed political campaigning

culture, can effectively be likened to

franchises (Egan, 1999). The result is that

local campaigns are often perceived as

insufficiently important and are underutilised,

despite their significance on voteshare

(particularly where the candidate is

very popular, e.g. the former Liberal and

Liberal Democrat candidate, Cyril Smith, in

Rochdale in the UK) and party image.

The authors have attempted to

demonstrate, in this article, that in order to

[ 12 ]

Paul R. Baines, Phil Harris and

Barbara R. Lewis

The political marketing

planning process: improving

image and message in

strategic target areas

Marketing Intelligence &

Planning

20/1 [2002] 6±14

reach and communicate with those voters

who are most likely to change their

allegiance inside and outside the election

cycle, political strategists need to use a

structured and planned approach. This

includes amassing and analysing

constituency data (from various sources),

determining who are the main sources of

competition, identifying and targeting

individuals and groups of voters, and then

performing a post-mortem to determine

where the process could be modified to make

it more efficient in future political

campaigns.

Notes

1 Note that we specifically use