POM: Session5 New Marketing Realities Part1

After a short discussion on marketing mix and marketing process, we shall now discuss how different it is these days to market. Think about the days when there was no internet and mobile!

The world around us has tremendously changed. The new environment has opened up new opportunities for marketers. At the same time, it is bringing numerous challenges to the marketers as well.  But every lock comes with a key. There are very strong environmental forces that cannot be ignored. Also these days’ marketers are equipped with new capabilities that help them to respond to the challenges. Companies that failed to keep the pace couldn't survive in this competitive world. Once very successful TV manufacturers, BPL and Beltek are hardly seen these days. Some other companies like Motorola, revived the whole marketing strategy and also changed its names to Moto. This is the time when most of the soft products and services are available on our internet or phone or as an app. (just one click away!!!)

Let us have look on the new marketing realities that have changed the marketing world completely. To begin with, the consumers are not a passive recipient of the marketing information. They are equipped with technology and are more participative than ever. New liberalised environment also gave consumers better choice and service. Marketers need to keep a check on this DAVINCI CODE:

D – Deregulation: Post 1990’s we have seen the era of LPG (Liberalization, Privation and Globalization) where many private sectors like insurance and airlines were open up to private companies. This led to a new competitive environment and more demanding consumer.

A – Availability: Retail transformation had made shopping a very delightful experience. All the products categories from grocery to electronics are now available with the convenience of parking and a comfort of food court. All this is happening inside an air-conditioned mall or specialized store. The variety in products displayed is never seen before types. For those looking for more convenience, there is online retail. E-retailers offer variety of products, discounted prices and facility of easy returns of merchandise. According to recent reports, many American and Chinese companieswant to invest in ecommerce.

Also, According to the latest report by IAMAI and IMRB International, the ecommerce industry in India reached a value of INR 81,525 crore (US$13.5 billion) in 2014.  

V – Voice: Consumers now have a voice and it can ask for what they want and what all they don’t.  Social networking sites and micro blogging are very common platforms to raise and share opinions. So "what’s trending"?

I – Information: Almost everything from newspapers to magazines to TV channels to government agencies are present online. This means, they are accessible through mobile phones as well.  So no "Ullu banaowing!"

N – Network: India is moving towards 4G network technology. The challenge though is to make it available to wider population.

C – Competition: Highly competitive markets offer wide variety and price ranges to consumers. These days the products are restricted to country or regional boundaries. It is available online world-wide.

I – Income: Increase in income led to more purchasing power and hence more demand for quality and innovative products.

C – Convergence: Look at your mobile phone; it is a phone, a camera, a music player, a GPS device and a mini computer. Earlier there were different products for all these purposes. Convergence has reached new heights. You have more apps than books.

O – Open: The marketers have taken liberty to invite the consumers and take openly about needs and wants. They are participating openly in creating a better marketing mix through crowdsourcing.

D – Disintermediation: Many companies are making their products available direct through a company outlet or online portals. This helps them in providing discounts as they save on distribution and intermediation costs. Third party marketing portals like Snapdeal, Flipkart and amazon are also playing an important role in keeping the distribution costs low. Companies like Reliance and ITC applying disintermediation in rural markets when they buying directly from the farmers.

E – Ecommerce: Online shopping made possible through plastic money and ecommerce. 

Next: What marketers can do?