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Challenges in the Era of Globalization - iaabd

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Proceed<strong>in</strong>gs <strong>of</strong> <strong>the</strong> 12th Annual Conference © 2011 IAABD<br />

part <strong>of</strong> one-to-one market<strong>in</strong>g. Leung (2007) argues that mobile SMS is a potentially effective and<br />

pr<strong>of</strong>itable channel to advertise targeted messages. Sh<strong>in</strong> and Kim (2007) believe that many brands and<br />

media companies <strong>in</strong>clude text message numbers <strong>in</strong> <strong>the</strong>ir advertisements to enable <strong>in</strong>terested consumers to<br />

obta<strong>in</strong> more <strong>in</strong>formation. Three among <strong>the</strong> six attributes suggested by Barwise and Strong (2002) as ways<br />

<strong>of</strong> us<strong>in</strong>g SMS for advertis<strong>in</strong>g are built upon <strong>the</strong> recent brand development <strong>of</strong> Lebara adverts. These<br />

attributes are: brand build<strong>in</strong>g, special <strong>of</strong>fer which is characterised by <strong>the</strong> benefits <strong>of</strong> topp<strong>in</strong>g up £20<br />

pounds with free £10 credits and as well as a reward benefit <strong>of</strong> £7 pounds for a second top up <strong>of</strong> £20<br />

with<strong>in</strong> <strong>the</strong> same month.<br />

Lebara SMS advert is built upon Dick<strong>in</strong>ger et. al. (2005) model <strong>of</strong> success factors for SMS. This model is<br />

divided <strong>in</strong>to two categories: <strong>the</strong> message and <strong>the</strong> media. The message factors <strong>in</strong>clude: <strong>the</strong> message<br />

content, personalisation accord<strong>in</strong>g to time, location and consumer control. However, lebara message<br />

def<strong>in</strong>es <strong>the</strong> limit <strong>of</strong> <strong>the</strong> promo (January to March, 2010) and <strong>the</strong> associated benefits. Media factors <strong>in</strong>clude<br />

issues regard<strong>in</strong>g <strong>the</strong> devise, transmission, product fit and media cost. In target<strong>in</strong>g audience (present and<br />

potential customers), Lebara is us<strong>in</strong>g flyers (leaflets) s<strong>in</strong>ce this segment can not be targeted through SMS.<br />

Audience is used here to <strong>in</strong>clude past, present and potential customers, as <strong>the</strong> essence <strong>of</strong> communication<br />

is not only for immediate customers but to <strong>the</strong> entire audience. SMS is usually based on permission<br />

advertisement as argued by Bamba and Marnes (2007). Warneby et.al (2005) found that leaflets (flyers)<br />

and o<strong>the</strong>r promotion literatures are among <strong>the</strong> most prom<strong>in</strong>ently used communication tools <strong>in</strong> <strong>the</strong> UK <strong>in</strong><br />

<strong>the</strong> context <strong>of</strong> shopp<strong>in</strong>g centres. This can be applied also <strong>in</strong> <strong>the</strong> mobile telecommunication <strong>in</strong>dustries, thus<br />

<strong>the</strong> justification <strong>of</strong> <strong>the</strong> use <strong>of</strong> leaflets by Lebara (see appendix 1).<br />

The SMS and leaflets (flyers) adverts <strong>of</strong> Lebara deliver <strong>the</strong> brand message and refer customers to a<br />

specially constructed website (lebara.co.uk) where <strong>the</strong>y could explore <strong>the</strong> details <strong>of</strong> <strong>the</strong> brand and promo.<br />

The content <strong>of</strong> <strong>the</strong> text message reads thus, ‘£10 FREE INSTANT CREDIT, when you top up £20 <strong>in</strong> a<br />

s<strong>in</strong>gle transaction. Plus FREE Lebara to Lebara m<strong>in</strong>utes and SMS with every top up. More <strong>in</strong>fo:<br />

lebara.co.uk’. The comb<strong>in</strong>ation <strong>of</strong> <strong>the</strong>se channels is <strong>in</strong> l<strong>in</strong>e with <strong>the</strong> LOGMAN model developed <strong>in</strong> 2004<br />

and published <strong>in</strong> Journal <strong>of</strong> Product and Brand Management. Logman (2004, p.94) proposes a model that<br />

comb<strong>in</strong>es <strong>the</strong> proactive and reactive brand management and called it <strong>the</strong> logical brand management model<br />

and abbreviated it as LOGMAN. Lebara <strong>in</strong> develop<strong>in</strong>g <strong>the</strong> top up £20 and receive free £10 credit is<br />

proactive <strong>in</strong> <strong>the</strong> future competitions with<strong>in</strong> <strong>the</strong> mobile service providers <strong>in</strong> <strong>the</strong> UK. The use <strong>of</strong> <strong>the</strong> three<br />

media is supported by Okazaki (2005) who argues that complement<strong>in</strong>g mobile advertis<strong>in</strong>g with o<strong>the</strong>r<br />

channels such as <strong>in</strong>ternet, television, pr<strong>in</strong>t media, and personal contact, allows marketers to maximise<br />

campaign effectiveness (p.163). To rem<strong>in</strong>d customers <strong>of</strong> <strong>the</strong> propose deadl<strong>in</strong>e <strong>of</strong> <strong>the</strong> promo, Lebara is at<br />

present exploit<strong>in</strong>g <strong>the</strong> database <strong>of</strong> <strong>the</strong> customers through <strong>the</strong> use <strong>of</strong> <strong>the</strong> customers e-mail. The next<br />

section discusses <strong>the</strong> case <strong>of</strong> MTN mobile telecommunication.<br />

Mobile Telecommunication Network (MTN).<br />

In <strong>the</strong> Sub-Sahara Africa, Nigeria for <strong>in</strong>stance, <strong>the</strong> Mobile Telecommunication Network (MTN), has and<br />

is currently <strong>in</strong>tegrat<strong>in</strong>g <strong>of</strong>fl<strong>in</strong>e, onl<strong>in</strong>e and mobile communications to tailor brands to <strong>the</strong> exist<strong>in</strong>g and<br />

potential customers. For <strong>in</strong>stance, SMS alert with <strong>the</strong> message read<strong>in</strong>g thus “Y’ello! Conference with 20<br />

people at <strong>the</strong> same time at <strong>the</strong> cost <strong>of</strong> a standard GSM call with MTN conference call. Visit<br />

www.mtnconference.com for more”. This is similar to <strong>the</strong> lebara current promo <strong>in</strong> <strong>the</strong> UK. Rettie et al<br />

(2005) as cited by Chaffey et al (2009, p554), argue that<br />

<strong>in</strong> <strong>the</strong> analysis <strong>of</strong> 26 text market<strong>in</strong>g campaigns (5401 respondents) showed surprise<br />

effectiveness <strong>of</strong> SMS advertis<strong>in</strong>g. They found that overall acceptability <strong>of</strong> SMS<br />

advertis<strong>in</strong>g was 44%, significantly higher than <strong>the</strong> acceptability <strong>of</strong> telemarket<strong>in</strong>g and<br />

found relatively high response rates and brand recall compared to direct mail and email<br />

market<strong>in</strong>g.<br />

496

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