Emerging Trends In Marketing.docx 344c4j

EMERGING TRENDS IN MARKETING Submitted By: Miss Swati Panwar Student, MBA Part II, Govt. College of Engineering and Technology, Bikaner, Rajasthan. E-mail –[email protected] Marketing is everywhere. Formally or informally, people and organizations engage in a vast number of activities that we could call marketing. Good marketing has become an increasingly vital ingredient for business success and marketing profoundly affects our day-today life. It is embedded in everything we do – from clothes we wear to the websites we click on, to the ads we see. In India, market continues to remain upwardly mobile albeit at a slower pace agree the global financial crisis hot the Indian market in the later half of 2008. A large number of Indian exporting companies had order cancellation and demand slowed down in India for all products and services. Nonetheless, as one looks at the Indian market, through the prism of time, one cannot but conclude the Indian consumer today is economically far better off than his earlier generations. The coming years will bring full of high-return marketing opportunities. By closely watching the hottest trends, a marketer can make smart choices that let him step ahead of his slower-moving competitors. In these , marketers nationwide are setting their plans for future by adopting new ways of marketing. Thus an entrepreneur can use some of these tactics to reach its customers in the coming years. Corporate rivalry has grown manifold. For example: - Telecom Industryearlier had monopoly that increased to six players per circle that lead to multiple product options and competitive pricing. This is also true for all other sectors like airlines, search engines, Television channels, Automobiles and FMCGetc. Retail market is one of the few mass advertising media that can convey the same overall strategic message in differing languages, to varying audiences in the same village, city or region. Today’s Point of Purchase (P-O-P) displays are easily assembled, maintained and at the same time, more powerful in

entertaining and informing in the retail environment. The examples are Big Bazaar, Reliance Fresh, Subhiksha, Spencers, Wal-Mart, Vishal Mega Mart and Home Town etc. To stay in the market for long-term, product innovation is also necessary. Consistently, the marketer has been pushed to innovate on process or both. Likewise innovations were visible in other sectors like financial services and consumer durables. Such as most of the banks are also offering online bill payments, insurance policies, demat s and pension plans to its customers other than banking. If we see the innovation in products, Cadburyintroduced “Celebrations” as gift packed chocolates for festive seasons to its customers that was highly acceptable in the market. Convergence of technology was yet another major development that offered the opportunity to the marketer to engage the customer on a continuing basis. Here, companies now reached to the customer through physical media likeprint, outdoor hoardings, interactive kiosks, electronic media like TV and Radio, Internet and mobile phones. All these were now used simultaneously thereby creating a new and forceful thrust. These were used to communicate and seed and even involving the customer in product design. CNN IBN was the first news channel in India to use this strategy and involved viewers not only in chat shows and debates but also in creating news terming such viewers as “Citizen Journalist”. The channel actively promoted this concept of co-production by recognizing all such news feeds and even awarding them. In product customization, BMW’s technology now allows buyers to design their own models from among 350 variations with 500 options, 90 exterior colors and 170 trims. The company claims that 80% of the cats bought by individuals in Europe and up to 30% bought in US are built to order. Another tools of marketing used by marketers today is Consumer GeneratedAdvertising (CGA) i.e. customers not only be Promoters for the company, but actually make advertising for them. As this advertising will always be based on what they REALLY love about product, it’s sure to strike home with other consumers. For example: - Harpic Cleaner, Jaago Re by Tata Tea. In this aspect, somebody has also highlighted with the saying,

“Never underestimate the extent to which people want to be involved in advertising.” The most common tech products used are cell phones and sms facilities offered by cell phones providers. Companies can reach customers on the move with mobile marketing using GPS (Global Positioning Service) technology for instance consumer can company logos so they can spot brand such asBaskin Robbins when they are on the road. Firms can also on video iPods and reach consumers on their cell phones through mobile marketing. DTH (Direct to Home Telecast Service) just introduced in India was used by 145 of the urbanities. This characteristic only facilitates the launch of savvy gadgets and companies using all technologies to engage their customers 24x7. A major problem of Indian Market has been that access to products and services was restricted mainly due to infrastructure constraints and lack of distribution network. Outsourcing further enables firms to overcome the access problem.For example: - Universities and management schools today have multiple campuses and use a range of internet technologies to reach out to their target markets. IIMs tied up with NIIT to offer multiple diploma programmes to working executives. ICFAI has campuses all over the country including smaller towns like Dehradun to offer MBA Programme. The customer today is empowered with more information about brands andtheir ambassadors. Brands have a much bigger task cut out for them. For example: They have to mange their credibility on an ongoing basis. They cannot afford to sit on their laurels earned in the past. Any adverse news about them in some media vehicle can impact their image. For example: The land controversy surrounding Amitabh Bacchhan impacted his image and perhaps his credibility as Brand Ambassador. When the Indian cricket team lost badly in 2007 World Cup, almost all brands withdrew their contracts with Saurav Ganguly, Sachin Tendulkar and others in the team. The advertising rates on World cup telecast also declined. New Icons therefore need not be celebrities, but they need to be credible. Despite of this, new icons are adding revenues to their companies by attracting their fan followings.

In addition to it, the era of Indian Global Brands has also arrived. Whether it is Arcelor Mittal (L. N. Mittal Group), Tata Corus, Infosys, Ranbaxy, Wipro, Barista, Taj or Haldiram or Kitchens of India or IITs and IIMs, Indian brands are new making waves in the world market. Though, all these brands have a long way to go to be Coca-Cola or Microsoft, they are now redefining the marketing rules in their product category in foreign markets. Thus one of the challenges for the marketers is to create strong Indian global brands. The new term Green marketing is also introduced in the series of marketing trends. As defined by American Marketing Association, green marketing is the marketing of products that are presumed to be environmentally safe. Thus green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising. Green marketing has continued to gain adherents, particularly in light of growing global concern about climate change. This concern has led more companies to their commitment to reduce their climate impacts, and the effect this is having on their products and services. Due to Ecology Sensitivity, more and more products and services are going turn green. New Delhi, capital of India, was being polluted at a very fast pace until Supreme Court of India forced a change to alternative fuels. In 2002, a directive was issued to completely adopt CNG in all public transport systems to curb pollution and it has gone green. Samsung and others market their refrigerators as an environmentally safe. Hotels like Leela, Orchid and Taj claim they provide services which are environmentally safe. All this has implications for product design and communication. Social challenges play a significant role in product diffusion and adoption in all markets but much more in Indian market which is high on social networking. The classical case is that of Biotique products which have never been d. Rather it followed the route of placing the product in customer’s hands through presentations in five star hotel guest rooms. Frequented by the opinion leaders and affluent customers, it did not take long

for these products to enter their homes and through them to others. Likewise there are several websites like buyandselloldbooks.com, mouthshut.com which have never used the high cost media to . Yet these are known websites in their target market segments. Internet marketing also referred to as i-marketing, web marketing, online marketing, or eMarketing, is the marketing of products or services over the Internet. The Internet has brought many unique benefits to marketing, one of which being lower costs for the distribution of information and media to a global audience. The interactive nature of Internet marketing, both in of providing instant response and eliciting responses, is a unique quality of the medium. Internet marketing is sometimes considered to have a broader scope because it not only refers to digital media such as the Internet, e-mail, and wireless media; however, Internet marketing also includes management of digital customer data and electronic customer relationship management (ECRM) systems. Internet marketing also refers to the placement of media along different stages of the customer engagement cycle through search engine marketing (SEM), search engine optimization (SEO), banner ads on specific websites, e-mail marketing. Internet marketing is also associated with several business models like e-commerce in which goods are sold directly to consumers (B2C) or businesses (B2B), publishing like the sale of advertising and lead-based websites. Geo marketing places an emphasis on marketing that appeal to a specific behaviour or interest, rather than reaching out to a broadly-defined demographic. "Onand Off-line" marketers typically segment their markets according to age group, gender, geography, and other general factors. Marketers have the luxury of targeting by activity and geolocation. For example, a kayak company can post ments on kayaking and canoing websites with the full knowledge that the audience has a related interest. Marketers can also use the internet as powerful information and saleschannel augmenting their geographical reach to inform customers and promote their business and product worldwide. By establishing one or more websites, they can list their products and services, history, its business philosophy, job opportunities and other information of interest to visitors.

Researcher can collect fuller and richer information about market, customers, prospects and competitors. They can also conduct fresh marketing research using the interest to arrange for focus groups, send out questionnaires and gather primary data in several other ways. Manager can facilitate and speed internal communication among their employees by using the internet as a private intranet. Employees can query one another, seek advice and or needed information from and to the company’s computer. Companies can also facilitate and speed external communication by creating an online and offline buzz through brand advocates and communities. The virtual communities are also created customers come together or share their experiences about the products and brands. For example: The virtual community for young girls called gang of girls (www.gangofgirls.com) was promoted by Sunsilk brand of shampoo. To continues flow of information as exchange of internal company records, marketing intelligence activities and marketing research, MarketingInformation System (MIS) is used by mangers. Now-a-days, customers favor firms that can promise timely delivery, that is why companies need to perform these steps quickly and accurately. An increasingly number of companies is using Intranet and Extranet to improve the speed, accuracy and efficiency of the order to payment cycle. For example: - CISCO Connection Online allows the computer networking leader to connect with all its suppliers, manufacturers and customers and resellers online. By reducing payment cycles for suppliers, eliminating paper based purchasing, reducing inventory levels CISCO save more than $24 million in material cost and $51 million in labor cost annually in the first year of the program’s operations. Sales Information System is also a new term as emerging technology in marketing as marketing managers need timely and accurate reports on current sales. Wal-Mart operates a sales and inventory data warehouse that captures data on every item, for every customer, for every store, every day and refreshes it every hour. For example: - the IT staff at headquarters tapped into the data warehouse the morning after Thanksgiving and noticed the East

Coast sales of a computer-monitor holiday special were far below expectations. Marketing staff ed stores and learned the computers and monitors weren’t being displayed together, so potential buyers couldn’t see what they were getting for the posted price. Calls went out to Wal-Mart stores across the country to rearrange the displays. By 9:30 that morning, the pace of sales could be seen picking up in the company’s database. Wal-Mart also transmits nightly orders to its many suppliers for new shipments of replacement of its inventory. And companies that make good use of “cookies”, records of Web site usage stored on personal browsers, are smart s to targeted marketing. Although the perception is that most people delete cookies out of concern for their privacy, the numbers tell a different story. A recent survey showed that only 8% of people very frequently delete cookies, down from 18% in 2004, and 24% of respondents said they never delete cookies. Not only do customers not delete cookies, but they also expect customized marketing appeals and deals once they accept cookies. Today companies use techniques like Databases, Data Warehousing andData Mining and organize their information into databases – customer database, product databases and salesperson databases – and then combine data from the different databases. For example: - the customer database will contain every customer’s name, address, past transactions and sometimes even demographics and psychographics (activities, interests and opinions). Instead of sending a mass “carpet bombing” mailing of a new offer to every customer in its database, a company will rank its customers according to purchase recency, frequency and monetary value (RFM) and send the offer to only the highest – scoring customers. Besides saving on mailing expenses, this manipulation of data can often achieve a double-digit response rate. The Marketing Intelligence System is also a helpful tool. A marketing intelligence system of a set of procedures and sources, managers use to obtain everyday information about developments in the marketing environment. Marketing managers collect marketing intelligence by reading books, newspapers and trade publications, talking to customers, suppliers and distributors, monitoring “social media” on the Internet via online discussion groups, e-mailing lists and blogs and meeting with other company managers.

Recently, Ambush marketing has received a lot of publicity in the Indian and international marketing arena. The term "Ambush Marketing" was created by Jerry Welsh when he worked for American Express. Welsh said the original justification for ambush marketing was the high cost of sponsorship. Thus, Ambush marketing occurs when a company signs on to sponsor an event as official sponsor, and a rival hijacks the mind space through backdoor means. It is a concept that describes the actions of companies who seek to associate themselves with a sponsored event without paying the organizers. The ambush consists of giving the impression to consumers that the ambusher is somehow d with the event. Such a marketing act is known as “Ambush Marketing” and the brand which does so is known as “Ambush Marketer”.This is also known as Parasitic Marketing or Guerilla Marketing. Ambush marketing can provide some of the benefits of a legitimate, paidfor sponsorship at relatively little cost. For example: - In 1996, soft drinks giant Coke paid a fortune for the right to call itself the official sponsor of the World Cup. Rival Pepsi promptly launched a massive advertising blitz, based on the catch-line:“Nothing Official About It”. The Pepsi campaign captured the public imagination and Coke, the official sponsor, lost out. Another example: - During December 2003 when Rahul Dravid scored 200 against Australia, Airtel had paid Times of India Rs 25,00,000/- just to have their logo underneath Rahul Dravid’s picture printed on the first page knowing the fact that Rahul Dravid is an Orange ambassador. In case of IPL, Both PepsiCo's 'Youngistaan' brand ambassadors - Virender Sehwag, captain of Delhi Daredevils, and Ishant Sharma, member of Kolkata Knight Riders have been formally present at various promotional activities for arch-rival Coca-Cola India, simply because Coca-Cola is the associate sponsor and the official pouring partner for both Delhi Daredevils and Kolkata Knight Riders. Sehwag, for instance, attended a special send-off ceremony for Delhi Daredevils organised by Coca-Cola India. At the event, Sehwag, along with Coke brand ambassador Gautam Gambhir, unveiled a limited edition bottle of Coca-Cola for IPL.

If we talk about Political Marketing, for the first time in the history of the US Presidential Elections, the Internet was used widely and effectively for both campaigning and fund raising purposes. Obama also used the traditional methods of marketing which ed for 50% of his fund raising. He carefully tailored his campaign by targeting people of different age groups, communities and professionals systematically to achieve success in the elections. He tapped the growing community of people who preferred the Internet and mobile phones to television. In this way, he could be able to get attention of American people by having a personal touch with them via internet and finally his labor had borne fruit in the form of his victory. The sum and substance of all the above discussions is that for Indian business firms, marketing is now emerging as the most vital function. On their capacity for learning marketing anew will depend whether, and to what extent they will succeed. In earlier regulated regime, there was no great need for top class marketing. Indian firms operating as they were in the smug comfort of a protected economy could prosper despite their shoddy marketing. That era, however, is now decisively over. They have to now necessarily compete with global firms at global level. And, that means, the time for scientific marketing has arrived in India.