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Mass Media Contacts have a Lower Influence than Point of Sale Contacts

TV advertisement is the single most influential contact

TNS Automotive Study

TNS Automotive introduces an operational process to manage a brand's integrated marketing and communication more effectively, based upon a superior understanding of how consumer perceptions are influenced by marketing. The 2007 Syndicated Market Contact Audit study conducted by TNS Automotive for Indian Automotive industry measures the contribution of marketing contacts in building brand experience from the consumer perspective. Integrated Marketing Communication (IMC) is the owner and developer of the proprietary MCA methodology.

Releasing the findings on October 4, 2007, Pradeep Saxena, Sr Vice President, TNS India - Automotive explained, "With the explosion of media it is becoming increasingly difficult for a Marketer to know, which media is working for the brand and which is not? Which media is effective in image building, which one is effective in imparting information and which one has the highest impact on purchase decision. And this is not just about the conventional media such as Television, Press and Outdoor, there is a huge spending on road shows, events sponsorship and even test rides amongst many others."

To improve the effectiveness of the marcom mix, a brand faces two questions:

1.
What contacts connect best with consumers?
 
2.
What brand encounters are experienced most by consumers?
 
The brand therefore needs to understand more about how these brand-consumer relationships are built:

-
What is the intrinsic capacity of individual contacts to influence consumer attitudes? [Contact Clout Factor (CCF)].
 
-
How effectively are competing brands using contacts to influence consumer attitudes and brand choice? (Brand Experience performance).
 
In the study both of these aspects were measured across ten centres and covering close to 2000 car owners and intending buyers.

The study attempts to identify the relative influence of 35 possible 'marketing contacts' relevant to the Indian Automotive customers. Though TV advertisements from manufacturers topped the list as the single most influential contact, the Point of Sales (POS) contacts as a group had the highest influence.

 
Mass Media advertising (as a group of contacts) and indirect contacts such as family/friends' opinion and on road visibility come next in terms of overall influence whereas Sponsorship/ Events seems to be least influential in this category.

Some interesting insights:

Celebrity endorsements seem to have a high influence in the North;
 
Kiosk/Stand up displays and cricket sponsorship has the highest influence in the East;
 
Magazine advertising, Website advertising has a high influence in the South.
 
Muder Chiba, Executive Vice President, TNS India adds "For manufacturers, there is a definite opportunity to establish a strong customer experience at the dealership through elements such as test drive, dealer showroom ambience, salesperson and product brochure where customers are not well engaged at the present time."

Customers in the purchase process take specific notice of car reviews in TV and Press, which at present are un-cluttered mediums. Therefore, a good PR activity of this kind for a brand could have a disproportionate benefit for it.

By geography, manufacturer website and celebrity endorsements are noticed significantly more by intenders/ owners in metros, whereas intender/owners in non-metros are more perceptive of sponsorships of TV/Radio programmes and Art/Entertainment events and Community service activities.

Brand Experience Point - the new currency: Brand Experience Point (BEP) is the common currency for measuring the effectiveness of all media vehicles. It is a measure of the association of the brand with the particular contact point keeping in consideration with its 'clout'. Therefore higher the BEPs for a contact more effective it is for the brand. An equivalent of market share in the case of Brand Experience is the Brand Experience Share. Overall, a high correlation between market share and Brand Experience Share is seen, which is a measure of the consumer's evaluation of the ability of the brand to keep in touch with them.

Chris Bonsi, Regional Director - TNS Automotive describes "Going a step further, using a proprietary methodology - Future View, TNS is able to identify a set of customers within this study, who are "Future Shapers" - a set of customers who are at the forefront of customer behaviour in the category and provide early indication of future trend in the category. Among this highly influential customer base, we see that they are more aware of the new age brands such as Honda City, Maruti Swift, and Chevrolet U-VA. Similarly, "Future Shapers" are more influenced by in-movie placement, celebrity endorsements, cinema ads and motor racing/rally sponsorships."

Most Influential Contacts
(Top 5)
Most Un-Influential Contacts
(Bottom 5)
1) TV advertisement from
manufacturer
1) Road safety eduction,
guidance. Driving schools/
Other Community service
activities
2) Newspaper advertisement
from manufacturer
2) Telephone Call / Direct from
mailer/letter/email from
manufacturer or dealer
3) Opinion or influence of
family members,
friends and colleagues
3) Sponsorship of motor
racing or rally events
4) Test drive 4) Radio advertisement from
manufacturer
5) Seen car on the road 5) Experience of car model
through hire, rental or loan
e.g. taxis, company car
 
Based on the evaluation of the marketing process through this method, it is possible to identify whether a brand's marketing activity is well aligned with the current market presence and estimate the potential of the brand.