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Università   Master          Corporate
della        of Science in   Communicaton
Svizzera     Communication   & Marketing
italiana     and Economics   SI 2005-2006




             Gandhi
             goes global.
             Advertising Strategies
             Shifting from Monopoly to Oligopoly
             by
             Francesca Bucher, Vincenzo Cammarata, Maja Pazur
Università   Master          Corporate
della        of Science in   Communicaton
Svizzera     Communication   & Marketing
italiana     and Economics   SI 2005-2006

                                                                         Gandhi
                                                                         goes global.



              The Telecom Italia Case
              Analyzing advertising done by Telecom Italia before
              and after the deregulation of the 1998:


              • The European telecommunication industry

              • The history of Telecom Italia

              • Analysis of advertising done by Telecom Italia




              2006 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur                  2/15
             ©
Università   Master          Corporate
della        of Science in   Communicaton
Svizzera     Communication   & Marketing
italiana     and Economics   SI 2005-2006

                                                                             Gandhi
                                                                             goes global.



              The European TLC Industry
                             30’s           birth of the telecommunication companies
                                            big investments in networks - monopolists

                             90’s           deregulation and privatization of TLC
                                            companies entrance of new competitors

                             90’s to 2005

                                            With “multimedia convergence” telephone
                                            companies become multi service companies.
                                            Fixed and mobile telephone, Internet Provider,
                                            VoIP, Digital TV provider and Service provider
                                            (e.g. 1288, 892 892…)

              2006 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur                       3/15
             ©
Università   Master          Corporate
della        of Science in   Communicaton
Svizzera     Communication   & Marketing
italiana     and Economics   SI 2005-2006

                                                                         Gandhi
                                                                         goes global.

                 The origins of the telephone
                 market in Italy
                             1881 – appearance of telephony in Italy

                             1925 – foundation of SIP (Soc. Idroelettrica Piemontese)

                             1933 – merge with IRI (Ist. Per la ricostruzione industriale)

                             1964 – foundation of new SIP (Soc. Per l’esercizio telefonico)




              2006 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur                       4/15
             ©
Università   Master          Corporate
della        of Science in   Communicaton
Svizzera     Communication   & Marketing
italiana     and Economics   SI 2005-2006

                                                                             Gandhi
                                                                             goes global.

              Telecom Italia:
              the road to the privatization
                                            1994 – foundation of Telecom Italia

                                            1997 – privatization and Telecom Italia Net   (TIN)


                                            1998 – Deregulation

                                            2001 – Telecom Italia Mobile (TIM)

                                            2003 – Telecom Italia Media (Digital TV)




              2006 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur                            5/15
             ©
Università   Master          Corporate
della        of Science in   Communicaton
Svizzera     Communication   & Marketing
italiana     and Economics   SI 2005-2006

                                                                                 Gandhi
                                                                                 goes global.
             The Italian
             TLC industry today
             After privatization of Telecom Italia (1997/98)
             many competitors have tried to enter the market:

             Wind-Infostrada – Fixed and mobileTelephony, Internet (Libero)
             Infostrada was the first to compete with a famous commercial
             (pseudo-comparative “also the dog choose Infostrada” advertising)


             Vodafone Omnitel – Mobile Telephony

             “3” - Mobile Telephony (UMTS)

             Tele 2 – Fixed and Internet                  Tiscali - Fixed and Internet

             Fastweb (e-biscom) – Cable (optic fibre) VoIP, TV, and Internet
             without “last mile” problem

              2005 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur                          6/15
             ©
Università   Master          Corporate
della        of Science in   Communicaton
Svizzera     Communication   & Marketing
italiana     and Economics   SI 2005-2006

                                                                                     Gandhi
                                                                                     goes global.


             The SIP-Telecom Italia Ads




             1929 – “The telephone is                    60’s – “Telephone can increase sales”
             the fastest way to communicate”


              2005 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur                              7/15
             ©
Università   Master          Corporate
della        of Science in   Communicaton
Svizzera     Communication   & Marketing
italiana     and Economics   SI 2005-2006

                                                                            Gandhi
                                                                            goes global.




                                                                         1968 – “Ask for an
                                                                         additional telephone”




              2005 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur                           8/15
             ©
Università   Master          Corporate
della        of Science in   Communicaton
Svizzera     Communication   & Marketing
italiana     and Economics   SI 2005-2006

                                                                                       Gandhi
                                                                                       goes global.




                                                                         1977 – ‘The telephone. Your voice'
                                                                         subscriber trunk dialing (STD) service




              2006 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur                                            9/15
             ©
Università   Master           Corporate
della        of Science in    Communicaton
Svizzera     Communication    & Marketing
italiana     and Economics    SI 2005-2006

                                                                         Gandhi
                                                                         goes global.




                 1984 – 1988 – Fax and Videotel services

              2006 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur                  10/15
             ©
Università   Master           Corporate
della        of Science in    Communicaton
Svizzera     Communication    & Marketing
italiana     and Economics    SI 2005-2006

                                                                         Gandhi
                                                                         goes global.




                 1993 – Commercial
                 “A telephone call extends life” (STD) service




              2006 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur                  11/15
             ©
Università   Master          Corporate
della        of Science in   Communicaton
Svizzera     Communication   & Marketing
italiana     and Economics   SI 2005-2006

                                                                         Gandhi
                                                                         goes global.


              The SIP-Telecom Italia Ads
                     30’s to 1997- Monopoly period

                     Informative Advertising
                     •       To inform consumers about the function and availability
                             of various goods. (Rates, Services offered, CRM…)

                     •       The effect of this strategy is increasing in quantity sold:
                             More advertising leads to a larger potential size
                             of the market by reaching more marginal than
                             inframarginal consumers.



              2006 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur                  12/15
             ©
Università   Master          Corporate
della        of Science in   Communicaton
Svizzera     Communication   & Marketing
italiana     and Economics   SI 2005-2006

                                                                              Gandhi
                                                                              goes global.

              The Telecom Italia Adv
              1998 – today Oligopoly

              Persuasive Advertising
                                            Advertising affects the demand for goods
                                            without necessarily changing the underlying
                                            preferences of consumers because
                                            Advertising is also seen as a complementary
                                            good to the product.(Becker and Murphy 1993)

                                            Reinforcing brand image, loyalty
                                            and deter entry.

              In this phase, competitors use a different Adv strategy (Informative)

              2006 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur                       13/15
             ©
Università   Master          Corporate
della        of Science in   Communicaton
Svizzera     Communication   & Marketing
italiana     and Economics   SI 2005-2006

                                                                                     Gandhi
                                                                                     goes global.

             The Corporate Ads




                                                              2000
                                                              “How would you like
                                                              that the future be?”




              2006 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur                              14/15
             ©
Università   Master          Corporate
       della        of Science in   Communicaton
       Svizzera     Communication   & Marketing
       italiana     and Economics   SI 2005-2006

                                                                                Gandhi
                                                                                goes global.

                    The Corporate Ads




         2003
   “Absence of
communication”




                    2004 – “Gandhi” goes global thanks to Spike Lee

                     2006 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur                  15/15
                    ©
Università   Master          Corporate
della        of Science in   Communicaton
Svizzera     Communication   & Marketing
italiana     and Economics   SI 2005-2006




             Gandhi
             goes global.
             Advertising Strategies
             Shifting from Monopoly to Oligopoly


             Thanks for your attention.
             For further sources and informations please visit this site:
             http://www.studentimaster.usilu.net/cammarav/web/


                 2006 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur
             ©


             Università della Svizzera Italiana – USI Lugano

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Telecom Italia Advertising

  • 1. Università Master Corporate della of Science in Communicaton Svizzera Communication & Marketing italiana and Economics SI 2005-2006 Gandhi goes global. Advertising Strategies Shifting from Monopoly to Oligopoly by Francesca Bucher, Vincenzo Cammarata, Maja Pazur
  • 2. Università Master Corporate della of Science in Communicaton Svizzera Communication & Marketing italiana and Economics SI 2005-2006 Gandhi goes global. The Telecom Italia Case Analyzing advertising done by Telecom Italia before and after the deregulation of the 1998: • The European telecommunication industry • The history of Telecom Italia • Analysis of advertising done by Telecom Italia 2006 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur 2/15 ©
  • 3. Università Master Corporate della of Science in Communicaton Svizzera Communication & Marketing italiana and Economics SI 2005-2006 Gandhi goes global. The European TLC Industry 30’s birth of the telecommunication companies big investments in networks - monopolists 90’s deregulation and privatization of TLC companies entrance of new competitors 90’s to 2005 With “multimedia convergence” telephone companies become multi service companies. Fixed and mobile telephone, Internet Provider, VoIP, Digital TV provider and Service provider (e.g. 1288, 892 892…) 2006 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur 3/15 ©
  • 4. Università Master Corporate della of Science in Communicaton Svizzera Communication & Marketing italiana and Economics SI 2005-2006 Gandhi goes global. The origins of the telephone market in Italy 1881 – appearance of telephony in Italy 1925 – foundation of SIP (Soc. Idroelettrica Piemontese) 1933 – merge with IRI (Ist. Per la ricostruzione industriale) 1964 – foundation of new SIP (Soc. Per l’esercizio telefonico) 2006 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur 4/15 ©
  • 5. Università Master Corporate della of Science in Communicaton Svizzera Communication & Marketing italiana and Economics SI 2005-2006 Gandhi goes global. Telecom Italia: the road to the privatization 1994 – foundation of Telecom Italia 1997 – privatization and Telecom Italia Net (TIN) 1998 – Deregulation 2001 – Telecom Italia Mobile (TIM) 2003 – Telecom Italia Media (Digital TV) 2006 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur 5/15 ©
  • 6. Università Master Corporate della of Science in Communicaton Svizzera Communication & Marketing italiana and Economics SI 2005-2006 Gandhi goes global. The Italian TLC industry today After privatization of Telecom Italia (1997/98) many competitors have tried to enter the market: Wind-Infostrada – Fixed and mobileTelephony, Internet (Libero) Infostrada was the first to compete with a famous commercial (pseudo-comparative “also the dog choose Infostrada” advertising) Vodafone Omnitel – Mobile Telephony “3” - Mobile Telephony (UMTS) Tele 2 – Fixed and Internet Tiscali - Fixed and Internet Fastweb (e-biscom) – Cable (optic fibre) VoIP, TV, and Internet without “last mile” problem 2005 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur 6/15 ©
  • 7. Università Master Corporate della of Science in Communicaton Svizzera Communication & Marketing italiana and Economics SI 2005-2006 Gandhi goes global. The SIP-Telecom Italia Ads 1929 – “The telephone is 60’s – “Telephone can increase sales” the fastest way to communicate” 2005 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur 7/15 ©
  • 8. Università Master Corporate della of Science in Communicaton Svizzera Communication & Marketing italiana and Economics SI 2005-2006 Gandhi goes global. 1968 – “Ask for an additional telephone” 2005 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur 8/15 ©
  • 9. Università Master Corporate della of Science in Communicaton Svizzera Communication & Marketing italiana and Economics SI 2005-2006 Gandhi goes global. 1977 – ‘The telephone. Your voice' subscriber trunk dialing (STD) service 2006 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur 9/15 ©
  • 10. Università Master Corporate della of Science in Communicaton Svizzera Communication & Marketing italiana and Economics SI 2005-2006 Gandhi goes global. 1984 – 1988 – Fax and Videotel services 2006 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur 10/15 ©
  • 11. Università Master Corporate della of Science in Communicaton Svizzera Communication & Marketing italiana and Economics SI 2005-2006 Gandhi goes global. 1993 – Commercial “A telephone call extends life” (STD) service 2006 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur 11/15 ©
  • 12. Università Master Corporate della of Science in Communicaton Svizzera Communication & Marketing italiana and Economics SI 2005-2006 Gandhi goes global. The SIP-Telecom Italia Ads 30’s to 1997- Monopoly period Informative Advertising • To inform consumers about the function and availability of various goods. (Rates, Services offered, CRM…) • The effect of this strategy is increasing in quantity sold: More advertising leads to a larger potential size of the market by reaching more marginal than inframarginal consumers. 2006 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur 12/15 ©
  • 13. Università Master Corporate della of Science in Communicaton Svizzera Communication & Marketing italiana and Economics SI 2005-2006 Gandhi goes global. The Telecom Italia Adv 1998 – today Oligopoly Persuasive Advertising Advertising affects the demand for goods without necessarily changing the underlying preferences of consumers because Advertising is also seen as a complementary good to the product.(Becker and Murphy 1993) Reinforcing brand image, loyalty and deter entry. In this phase, competitors use a different Adv strategy (Informative) 2006 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur 13/15 ©
  • 14. Università Master Corporate della of Science in Communicaton Svizzera Communication & Marketing italiana and Economics SI 2005-2006 Gandhi goes global. The Corporate Ads 2000 “How would you like that the future be?” 2006 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur 14/15 ©
  • 15. Università Master Corporate della of Science in Communicaton Svizzera Communication & Marketing italiana and Economics SI 2005-2006 Gandhi goes global. The Corporate Ads 2003 “Absence of communication” 2004 – “Gandhi” goes global thanks to Spike Lee 2006 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur 15/15 ©
  • 16. Università Master Corporate della of Science in Communicaton Svizzera Communication & Marketing italiana and Economics SI 2005-2006 Gandhi goes global. Advertising Strategies Shifting from Monopoly to Oligopoly Thanks for your attention. For further sources and informations please visit this site: http://www.studentimaster.usilu.net/cammarav/web/ 2006 by Francesca Bucher, Vincenzo Cammarata, Maja Pazur © Università della Svizzera Italiana – USI Lugano