Professional Documents
Culture Documents
ORIGINAL ARTICLE
Does planning make perfect? How advertising practitioners in India
perceive account planning
Padmini Patwardhana, Hemant Patwardhanb and Falguni Vasavada-Ozac*
a
Department of Mass Communication, Winthrop University, Rock Hill, USA; bCollege of
Business, Winthrop University, Rock Hill, USA; cMudra Institute of Communications,
Ahmedabad, India
(Received 18 May 2010; final version received 27 January 2011)
This study examined views on the practice of account planning among advertising
professionals in India. Three research questions were proposed to investigate
perceptions of plannings growth in this emerging global hotspot, practitioner
beliefs about planning, as well as opinions of coercive, mimetic and normative
pressures in its development. A cross-sectional survey (n 154) across all key
agency areas was conducted. Results indicate that (1) planning is seen as a
growing practice in Indian advertising, (2) overall beliefs about account planning
are highly positive, and (3) environmental (external) pressures impact planning in
India though not all are considered equally important. Future research directions
are proposed.
Keywords: account planning; ad agency; advertising; India
This study examines the account planning phenomenon in India from the viewpoint
of advertising practitioners in the region. In the 40 plus years since its inception in
the UK, planning has become both a philosophy of advertising development
(Hackley, 2003) as well as a creative strategy technique that involves distilling
consumer insights from research and integrating them into the creative development
of advertising messages (West & Ford, 2001). A widely accepted advertising best
practice in Europe and America, account planning is regarded as a critical element in
the campaign development process (Morrison & Haley, 2003, 2006). As a result, full
service advertising agencies as well as smaller agencies/creative boutiques in many
countries (including the US) recognize its importance and utilize many of the
commonly recognized functions of account planners (Account Planning Group,
2001). There is some evidence that planning is gradually going global with the
establishment of professional Account Planning Group (APG) chapters in several
countries as well as reports about its use in a variety of international settings
including South Africa, Australia, Singapore and India.
Unlike the West, planning is a relatively new concept in India. It is believed to have
originated sometime in the 1990s, though anecdotal evidence suggests limited
application in earlier years at a small number of agencies in India. Specifically,
openness to account planning and awareness of planning trends in the West have been
previously reported at multinational agency offices in the region (Patwardhan,
Theoretical frameworks
While the purpose of this study is primarily descriptive, two multi-disciplinary
theoretical approaches (diffusion of innovations and institutional theory) establish
useful frames for the investigation. Diffusion is the process by which an innovation is
communicated through certain channels over time among members of a social
system (Rogers, 1995). An innovation may be an idea, practice or object that is seen
as new by the individual or other unit of adoption (Rogers, 1995). There are several
areas of research within the diffusion framework including (1) the adoption process
(knowledge, persuasion, decision, implementation, and confirmation) and rate of
adoption; (2) innovation characteristics that may affect adoption (relative advantage,
compatibility, complexity, trialability, observability); (3) adopter categories (innova-
tors, early adopters, early majority, late majority, laggards) and characteristics; (4)
role of communication channels and opinion leaders; and (5) consequences of
innovation adoption.
Institutional theory is a broad set of conceptualizations widely applied in diverse
disciplines such as economics, sociology, business and political science. It views
organizations as social and cultural systems that tend to adopt new ideas, forms,
processes, outlooks or competencies (Selznick, 1957, 1996) that are collectively
264 P. Patwardhan et al.
believed to enhance institutional value, legitimacy and stability over time through a
process of adaptation and integration (Scott, 1987; Zucker, 1983). Over a period of
time, organizations in a particular field tend to become more homogenous (i.e. they
conform to rules and belief systems prevailing in the environment). DiMaggio and
Powell (1983) call this tendency toward homogeneity institutional isomorphism. Three
types of pressures may influence this tendency and lead to change/innovation within
organizations. Coercive pressures are formal or informal pressures to conform to best
practices based on demands from other organizations on which a firm is resource-
dependent or from regulation or mandates. Mimetic pressures arise out of a desire to
reduce uncertainty by imitating successful ideas from peers sharing the same goals
within the industry. Finally, normative pressures are exerted by various professional,
trade or business associations to promote homogeneity of norms and practices
(DiMaggio & Powell, 1983).
Together these two frameworks provide a foundation for our investigation though
we do not apply the full extent of both theories. Since its relative newness in India
certainly qualifies it as an innovation in the industry, we first focus on examining
planning adoption in Indian advertising and explore perceptions/beliefs regarding
some planning characteristics. Next, from an institutional perspective, agencies are
business organizations and are affected by environmental pressures and prevailing
best practices in the industry. Therefore, we also examine advertising practitioners
views on any isomorphic pressures in the development of planning in the region.
its growth at the agency level. In 2009, Patwardhan, Patwardhan, and Vasavada-Oza
investigated the use of planning at some of the countrys top multinational agencies.
Their qualitative study based on in-depth interviews at seven agencies reported a
glocalized planning ethos, importance of environmental factors in planning adoption
within these agencies, limited supply of trained planners, limited variety in planning
roles, as well as lack of established measures to assess planners performance.
A follow up study found that agency planning diffusion was influenced by two key
organizational variables: the intrinsic innovativeness of the agency and leadership
commitment to introducing and sustaining planning practice in the agency
(Patwardhan, Patwardhan, & Vasavada-Oza, 2010). Both studies had an organiza-
tional and multinational focus, utilizing agency level analysis of planning diffusion
and examining factors impacting its development. The present study differs in two
ways: (1) it uses micro (individual) level analysis and (2) is focused on industry-wide
perceptions of planning across both multinational and domestic agencies. Since it is
descriptive and exploratory rather than predictive, research questions are preferred
to hypotheses. The first research question examines planning prevalence as reported
by agency practitioners at small, medium, and large agencies in India:
RQ1a: How do ad practitioners in India describe planning within their agencies in terms
of adoption, length of planning use, size of planning departments, and utilization across
agency clients?
Since planning began in the West, many of its research and strategy tools and
techniques are considered Western in origin. However, senior executives in
Patwardhan et al.s (2009) study talked about a glocalized planning ethos in India
emphasizing its adaptive rather than imitative nature. The term glocal is derived
from the Japanese concept of dochakuka which means to adapt the global to local
conditions (Maynard, 2003; Robertson, 1995). Is this view supported throughout the
Indian ad industry? Are there any differences based on whether practitioners belong
to global or domestic agencies? RQ1b addresses this issue:
2006) and Scotland (Crosier et al., 2003) all found a lack of full understanding of the
function. Some departmental friction regarding planners power over the creative
process particularly in the early years of planning adoption in the US (Kendrick &
Dee, 1992) as well as differences in the way it is utilized in British and American
agencies (Hackley, 2003) have also been noted. Some of this may be due to the fact
that plannings role continues to evolve beyond the creative development phase
crossing over into other integrated communication areas like public relations and
direct marketing (Morrison & Haley, 2006).
According to diffusion theory (Rogers, 1995), individual factors as well as
characteristics of the innovation may impact the diffusion of new ideas. Agencies are
comprised of individuals with differing viewpoints and attitudes toward innovation
and change. Account planning is a relatively new concept in Indian advertising.
Though actual adoption occurs at an agency (organizational) level, acceptance by
individual practitioners is an important aspect of the process. Thus, individuals may
have positive or negative opinions of an innovations compatibility, relative
advantage, trialability, observability and complexity (Rogers, 1995). Positive
individual beliefs about account planning may coalesce into shared awareness of
its utility and overall acceptance of plannings value within the organization, while
negative views may impede its acceptance. So how do Indian advertising practi-
tioners perceive planning? The following research questions examine general
perceptions of planning practice as well as differences, if any, based on key personal
and professional variables.
RQ2a: How do ad practitioners in India view account planning? What is the factor
structure of their perceptions?
RQ2b: Are planning perceptions influenced by (a) age, advertising experience and
agency role (b) agency size and global affiliation?
RQ3: According to ad practitioners, what coercive, normative and mimetic pressures are
evident in the development of account planning in the Indian ad industry?
268 P. Patwardhan et al.
Method
Population and sampling
A cross sectional survey of practitioners from all key agency areas was conducted
to explore these questions. Internet use is widespread among agencies in India so
an online survey was deemed appropriate for data collection. In the absence of an
established sampling frame (like the Agency Red Books in the US), a potential
respondent email list was created with the assistance of agencyfaqs (a respected
online industry publication), and Mudra Institute of Communications (a top tier
training institution with strong ad industry links). A pool of 570 executives
belonging to large, medium and small agencies was generated through this
process. A solicitation email with a link to the survey was sent to the entire list.
Sixty seven emails were returned as undeliverable, reducing the solicitation pool to
503. A first reminder email was sent two weeks later and a second reminder after
two weeks.
Questionnaire design
The questionnaire went through multiple iterations after comprehensive review of
literature. Questions on perceptions of account planning (labeled AP beliefs) were
developed for this study drawing on prior scholarship (Hackley, 2003; Morrison &
Haley, 2003; Patwardhan et al., 2009). Two belief questions were based on
Morrison and Haleys (2003) study of account planners in the US, and two on
Hackleys (2003) interviews with agency professionals in London and New York.
Seven belief statements were based on qualitative comments made by senior ad
professionals in India (Patwardhan et al., 2009). Questions regarding external
pressures were generated from Teo, Wei, and Benbasat (2003) and Liang, Saraf,
Liu, and Hu (2007) with wording adapted to account planning as appropriate.
Variables on adoption of account planning in respondents agencies (extent of
adoption [or not], year of adoption, number of planners, extent of planning use
across agency clients), individual demographics (age, gender, income, education),
advertising experience (role in agency, years in advertising) as well as agency
characteristics (domestic/global affiliation, size, clientele) were also included (see
Table 1).
Results
A total of 154 respondents completed the survey for a 30% response rate, acceptable
when compared with other published surveys of advertising professionals reporting
response rates between 1830% (e.g. Morrison & Haley, 2003; Reid, King, &
DeLorme, 1998; West & Ford, 2001). Potential non-response bias was checked
comparing first, second, and third-wave respondents following Morrison and Haley
(2003) and West and Ford (2001). F tests revealed no significant differences between
groups on key variables. Demographic characteristics of respondents and non
respondents could not be compared since data was not available for non-respondents
(an email list was used).
Asian Journal of Communication 269
% %
Respondent profiles
The sample was skewed male (65% male, 35% female) and towards those with post
graduate degrees (76% masters, 22% bachelors). Age distribution was as follows:
less than 22 years (2.5%), 2330 years (54%), 3140 years (27%), 4150 years (11%)
and over 50 years (6%). Distribution of income was as follows: high income bracket
earning over Rs. (Indian rupees) 8 lacs per annum (41%), Rs. 57.9 lacs (24%), Rs. 3
4.9 lacs (18%), Rs. 12.9 lacs (15%) and less than 1 lac (2.5%). More than half (57%)
had worked in advertising for less than five years. Twenty-two per cent had worked
for 1120 years, 13% had experience of between 610 years and 8.4% had more than
20 years of experience. In terms of current agency roles, 31% worked in client
servicing and business development, 17% in creative, 28% in account planning, 13%
in general agency management and 11% in media and other areas.
than 25% of total client roster, 31% for agencies whose clientele consisted of 2550%
MNCs, 26% for agencies where 5075% of clients were MNCs. Only 8% worked for
agencies with a majority (over 75%) of MNC clients.
Practitioner perceptions
RQ2a examined perceptions of planning practice and examined their underlying
factor structure. As mentioned earlier, the 11 account planning (AP) belief
statements were developed for this study based on prior research. Overall, these
beliefs were highly positive (Table 2). Practitioners strongly agreed that it was useful
(m 4.6), important to an agencys success (m4.5), made an agency more effective
(m 4.5), contributed to the quality of the creative brief (m4.5) and made an
agency more competitive in the market (m 4.4).
At an exploratory level, factor analysis is useful to identify underlying
dimensions to describe the data using a smaller number of concepts. As a general
rule, a sample size of more than 100 observations is essential for factor analysis
(Hair, Anderson, Tatham, & Black, 2006); there were 154 independent observations,
so sample size was adequate. Bartletts test of sphericity (significant at p.00) and
the Measure of Sampling Adequacy (MSA) also confirmed suitability of data for
Exploratory Factor Analysis (EFA). EFA was performed using Principal Component
Analysis with Varimax Rotation. The rotated factor pattern matrix was examined for
all significant loadings (above .40). Three underlying factors with eigenvalues 1
emerged, collectively explaining 61.75% of variance. Factor 1 represented an AP
Asian Journal of Communication 271
Means and SD
(n 154)
RQ2b examined whether the three factors (beliefs about AP utility, benefits and
obstacles) were influenced by (a) age, advertising experience and agency role or (b)
agency size and global affiliation. Separate regression analyses were conducted using
each factor as a dependent variable (DV). Regression models with AP benefits
(R2 .045, F 1.946, p .149) and AP obstacles (R2 .049, F 2.111, p.128)
were not significant. The regression model was significant for predicting AP utility
beliefs (F 2.49, p .038), with the independent variables explaining about eight
percent of variance (adjusted 4.2%) in utility beliefs (Table 4). However, only
advertising experience (years in advertising) and agency size were individually
significant predictors while age, agency size and global affiliation were not.
RQ3 investigated a variety of external pressures as reported by ad practitioners.
Overall, coercive and mimetic pressures were viewed as stronger than normative
pressures in the development of planning in India (Table 5). Among coercive
pressures, changes in consumer culture in India (m 4.3) and competitive market
conditions (m4.3) were seen as more important than pressures from clients and
agency ownership (Table 5). Among mimetic pressures, the belief that competitors
had benefitted from planning use was strong (m4.2) as was the belief that they
were favorably perceived by the industry (m 4.0) and by clients (m 4.0).
Surprisingly, normative pressures were seen as the least relevant for planning growth
in India. Beliefs that planning is an industry best practice in India, that its use is
widespread, and that the promotion of planning by advertising associations is
important (all normative pressures) were viewed as considerably less relevant than
coercive and mimetic influences.
Though established scales were used to measure external pressures (marginally
modified to fit account planning), a post hoc CFA was run to examine whether
statements loaded on the designated factors (coercive, mimetic, normative). The
factor structure was mostly confirmed except for two statements. Competitive
conditions require account planning use had loadings below .40 on all factors though
its highest loading (.386) was on the designated factor. Promotion of planning by
industry associations influences agency decision to adopt planning stood by itself and
did not belong to any of the above factors (Table 6). Whether this is a research
artifact of the study or a genuine operationalization issue needs to be further
investigated when the scales are used in future research.
Means and SD
(n 154)
Coercive pressures
Changes in consumer culture require account planning use 4.3 (.74)
Competitive conditions require account planning use 4.3 (.69)
Clients require our agency to use account planning 4.0 (.82)
Corporate owners require account planning use by agency 3.7 (.91)
Mimetic pressures
Main competitors have greatly benefited from account planning 4.2 (.68)
Because of planning, they are more favorably perceived by others in 4.0 (.72)
industry
Because of planning, they are more favorably perceived by clients 4.0 (.75)
Normative pressures
Account planning is recognized as an industry best practice in India 3.6 (.97)
Account planning use is widespread in India 3.0 (1.0)
Promotion of planning by industry associations influences agency 3.8 (.87)
decision to adopt planning
Scale: 1 strongly disagree, 5 strongly agree
Discussion
Since economic liberalization in the 1990s, India has been on the radar of major
global marketers and advertising agencies expanding into emerging markets. This has
affected not only the overall advertising environment in the country but also initiated
practices to deal with the realities of a changing marketplace. The growth of account
planning in India may be interpreted within this context. Broadly speaking, our
study revealed the following trends. First, planning practice appears to have spread
more widely across the ad industry in India beyond Patwardhan et al.s (2009) initial
report of its usage by the regions multinational agencies. The majority of
professionals in our study, regardless of size or type of agency, indicated that their
agencies used planning at least in a basic way; only a very few reported no adoption.
Second, a planning philosophy appears to have become part of the advertising
culture of the region with wide acceptance of the concept among Indian
practitioners. Third, environmental (external) pressures are believed to impact
planning development in India through not all are seen as equally important. We
next examine each of these findings in more detail.
The earliest date of formal planning adoption in India reported in this study
(1990) coincides with the beginning of economic reforms jumpstarting the countrys
liberalization process. Not surprisingly, agency executives who reported that
planning originated in their agencies during the early 1990s all belonged to globally
affiliated agencies. Thus the introduction of account planning in India may be
attributed to the increased multinational presence on both client and agency side that
brought a more process driven approach to campaign development. It was inevitable
that a range of globally standardized agency practices would permeate agency
culture as Indian agencies underwent major restructuring to align with international
partners. The spread of planning continued during 19942003 with the momentum
increasing during the last few years.
274 P. Patwardhan et al.
However, planning usage seems uneven within agencies and across the industry.
Only about a third (37%) of the executives in the current study reported full
integration of planning in agency activities and only 33% reported its deployment
across all agency clients. Within a broader industry wide context, this extends
Patwardhan et al.s (2009) finding that planning is selectively utilized for clients and
brands that impact the multinational agencys bottom line. Further, Patwardhan
et al. (2009) also reported that though ad professionals in multinational agencies saw
planning as a Western phenomenon they believed that an Indian way of practice
had emerged. In their study, agencies in India reported mixing proprietary tools and
techniques common to global agency network with several indigenous ones more
suited to Indian consumer culture (e.g. the brand chakras technique developed at
JWT India). Our study provides further corroboration on an industry wide basis: a
broad spectrum of practitioners in India subscribe to this view regardless of the type
of agency that employs them.
In the West, planning has been described as both a philosophy of advertising
development (Hackley, 2003) and a creative research technique to bring the
consumer to the strategy table (West & Ford, 2001). It exerts a significant and
demonstrable impact on the quality and effectiveness of a brands marketing
communications (Account Planning Group, 2007). Participants in our study
certainly agreed with this view. Despite uneven or selective adoption, planning
enjoys strong practitioner support in India. Three underlying perceptual dimensions
were revealed through factor analysis: AP utility, AP benefits and AP obstacles.
Overall, planning was seen as useful and beneficial; views on obstacles to planning
were neither overly negative nor positive.
Rogers (1995) stated that characteristics of an innovation (or perceptions thereof)
played an important role in the diffusion of new ideas. Three were evident in this
study: compatibility, relative advantage and complexity. AP utility is similar to
compatibility: the extent to which an innovation is viewed as consistent with values,
needs and current experiences of adopters. AP benefits is analogous to relative
advantage: the extent to which an innovation is seen to benefit adopters in terms of
convenience and, in this case, enhanced competitiveness. AP obstacles corresponds to
complexity: the extent to which an innovation is difficult to understand or
incorporate. Practitioners in this study considered planning compatible with their
work, offering a distinct advantage, but were somewhat neutral regarding extent of
complexity in its adoption.
To what extent did demographics and agency factors influence these perceptions?
Did age, length of advertising experience and role in agency as also size of the agency
and its affiliation (global/domestic) have any effect? Only one regression model (for
AP utility) was significant. Experience (among personal variables) and size (among
agency variables) were the two unique predictors suggesting that practitioners with
greater advertising experience and those currently working at larger agencies were
likely to view planning as more useful. However, these two predictors did not explain
any variance in perceptions of AP benefits and obstacles. Taken in conjunction with
the non-significant predictive effect of other independent variables, it is possible to
conclude that overall positive planning perceptions in the Indian ad industry were
universally shared within agencies large and small, domestic or globally affiliated,
regardless of age, agency role (servicing, creative etc.) and advertising experience.
This is an interesting finding that may explain why there appear to be fewer
impediments to the growth of planning in India. Tensions reported in the West
between planners and other agency department personnel (e.g. creative, servicing) in
the early years appear to be less prevalent in the Indian environment.
External or market factors have been observed as key drivers in the growth of
account planning worldwide (Barry et al., 1987; Butcher & McCulloch, 2003). In its
formative years in the UK, account planning was seen as a response to client and
industry demands as well as the need to understand shifting consumer environments
(Zambardino & Goodfellow, 2003). Several external contexts important to planning
development in India were investigated, characterized as a range of coercive, mimetic
and normative pressures. In an earlier study, Patwardhan et al. (2009) reported that
global agency executives in India regarded pressure from multinational clients and
agency headquarters as strong forces in planning development within their agencies.
In the current study, perhaps reflecting the fact that both domestic and globally
affiliated agencies were represented in the sample, industry wide perceptions appear
to be somewhat different. The strongest reported coercive pressures were changes in
consumer culture and competitive market conditions rather than client or corporate
owner needs. Mimetic pressures were also considered instrumental in the growth of
planning: the belief that competitors using planning were more successful in the
marketplace was strong. However, despite wider promotion of planning by industry
associations in India, normative pressures continue to be relatively weak in
influencing its growth. Two conclusions may be drawn. Either industry bodies in
276 P. Patwardhan et al.
India are less influential in propagating new ideas or, unlike the West, planning is yet
to become an established norm in Indias advertising industry.
Limitations
The lack of an established industry sampling frame is a methodological limitation.
Though over one hundred small, medium and large agencies were represented in this
study, we had to build our respondent list from multiple sources. Also, while we
targeted a respectable sample size (n503), the final respondent tally was relatively
small (n154) though the response rate (30%) is acceptable in survey research.
Second, from a content perspective, social desirability bias may have influenced
practitioner responses and led to some over-reporting of adoption since planning is a
buzzword in todays Indian ad industry. And third, professionals from servicing and
planning were over-represented in the sample as were those from globally affiliated
agencies which may have led to reporting of stronger practitioner planning beliefs.
These are some limitations of the study and results should be generalized with
caution.
Notes on contributors
Padmini Patwardhan is associate professor of mass communication with research interests in
international advertising, integrated marketing communication, public relations and mass
communication.
Falguni Vasavada-Oza is associate professor at MICA India and has published and presented
papers in advertising, rural communication, and account planning.
Asian Journal of Communication 277
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