ten megatrends shaping marketing in egypt today dr. ahmed taher managing director integrated...
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Ten Megatrends Shaping Marketing in Egypt
Today
Dr. Ahmed TaherManaging Director
Integrated Marketing Solutions
Megatrends
• What are Megatrends?– Behaviors that are adopted, copied, practiced,
observed and accepted as social phenomena.– First coined by John Naisbitt 1982, 9 million copies
sold.
Marketing
• What is Marketing?– Management of perceptions to direct behavior
Ten Megatrends
1. Retailing Boom2. Savvy Consumers3. Mobile Culture4. Individualistic Society5. Low (No) Customer Loyalty
Ten Megatrends
6. Branding Polarity7. The rediscovery of PR and CSR8. Proliferation of Media9. Direct Marketing10. Diverse Lifestyles
1. Retailing Boom
• Roots:– First-time-in-the-toy-store phenomenon– Opening up of importation of ready-made garments– Chains seeking growth and franchisees meeting targets– Shopping and window shopping as entertainment
• Implications:– Malls, mega malls, hyper malls, …– Pull for consumer products– Factory outlets and other new retailing formats– Need for credit and financing options
4 Strategic Dimensions of Retailing• External Consumer Expectations• Internal Retailing Mix Variables• Margin and Inventory Goals• Assortment and merchandise• Location of outlets• Customer Services offered
Building a Retailing Marketing Strategy
• External Consumer Expectations– Convenience in space and time– Atmosphere or ambience– Merchandise– Price– Information/interaction– Service
Building a Retailing Marketing Strategy
• Internal Retailing Mix Variables– Physical Facilities– Merchandise/Merchandising– Pricing– Promotion– Services– Organization/Personnel
Critical Developments in Retailing
• The dominance of general merchandise “Power Retailers”– Sharp definition of customers and needs– Willingness to take risks via market testing and
trend forecasting– Ordering early and selling fast– High investment in intelligent IT– Commitment to deliver value– Customer service to create an “experience”– Category killers, private labels, v. deep assortments
Critical Developments in Retailing
• The increasing polarity of retailing– the growth of limited line, tightly managed, highly
focused specialty chains (high touch).– the growth of very large stores which rely on
technology for logistics control (high tech).
High touch
Conventionalstores
High tech
Critical Developments in Retailing
• The increasing power of retailers in the channels for packaged goods
• The growing importance of convenience• The growing impact of computer
technology• Increased focus on legitimate pricing• L L Location P P Positioning • Mergers and Acquisitions.
2. Savvy Consumers
• Roots– Learning new determinants of quality.– Branded offers.– Competitive Pressures.– Multiple countries of origin.
• Implications:– The positioning Game.– Pricing Games (Tactics).– Seek Differentiation OR Cost Advantages OR Focus. – Raise Quality Standards to Global Level.
Multiattribute Model
Attribute Importance Toshiba Sony Dell
Prestige 5 8 10 6
Durability 7 9 5 10
Weight 5 6 10 5
Price 9 8 2 10
Overall 31 27 31
Weighted 205 153 215
3. Mobile Culture• Roots:
– Willing to Relocate for Better (Environment, Pay,….etc).– New Cities Promising Different Quality of Life.– New Rentals Law.– Availability of financing Car and Home Purchase.– Mobile Telecommunications.
• Implications:– Market for qualified HR is much more competitive.– Second Wave Theory.– Boom of financial services and retail banking.– New homes, cars, and schools for kids.
4. Individualistic Society (I love me)• Roots:– Gap between generations– Dual (or more) income homes– Busy, irregular work and break schedules – Pleasure-driven behaviors (versus family-driven)
• Implications:– From food preparation to food consumption at home– Repackaging of products for individual use– Appealing to individuals (not families) in ads and
entertainment
Appeal to individuals
5. Low (No) Customer Loyalty
• Roots:– Competition drove the quality to acceptable level.– Quality slipping over time under cost pressure or poor
management.– Variety seeking behavior (toy-store phenomenon)– Bipolar Price Sensitivity.
• Implications:– Developing Follow up and feedback systems.– Creating Value for money (through research & services).– Adopt aggressive cost & quality management practices– Invest in Branding and Product Development
6. Branding Polarity
• Roots:– Brands’ symbolic power for high involvement products– Risk of failure in high ticket items– Power brands require saving on commodities to balance
budget.– Local brands still not convincing
• Implications:– Justified investment in Branding and Communication– Increase consumer involvement where possible– Use fear appeal to push branded products
Some Branding Concepts• A Brand is a promise of consistent delivery on
a set of attributes.• The Brand Equity is the extent to which
customers are willing to pay (a premium) more for your brand given the opportunity to buy a very similar product without a brand.
• The internal and external Brand Audit is important to measure the progress and success of the branding strategy.
Some Branding Concepts
The Brand Contract which is a documentation of the brand promise to be shared with all employees, new hires and customers of course. It strengthens the brand, and gives it a real and consistent meaning in the mind of all stakeholders. It also guides all future marketing communication and the behavior of the sales and customer service teams
Some Branding Concepts
• Brand Extension is attempting to extend the brand promise to new categories.
• The Corporate Identity Manual (CIM) is also a very important document that will be used for quality assurance of all brand communication. It will allow for seamless switching from one marketing communication agency or supplier to another.
7. The Rediscovery of PR and CSR
• Roots:– Social unease with high business profits.– Stock market and small investors impact on business– Tax benefits of CSR – Political gains from PR
• Implications:– Pre-emptive PR is cost-effective and better– Investor relations is a must for joint stock companies– Play politics only when you can afford it.– Outsource PR to professionals and measure
Publics (in PR)
Groups of people who have influence on, or interest in, an organization or a company
Generic List of Publics
• Shareholders• Employees (Internal
public)• Suppliers• Financial partners• Distributors (channels)• Media
• Government agencies• Competitors• Interest groups• Unions• Opinion leaders• Potential recruits• Business community
CLAIMS of Public RelationsChange
Launch
Acquire
Inform
Maintain
Straighten
Change
Policy
LocationOwnership
CompanyImage
Launch
Product/Service
Shareissue
Project
Acquire
Media coveragefor events
Support of Gov.agencies
Credit foractivities
Inform
The StockMarket
Opinion Leaders
Labor Market
TheTrade
Employees
Maintain
Good communityrelationships
Excellent relationswith the media
Staffstability
Confidence ofShareholders
Managementemployee
relationship
Straighten
Product recallor return
Any publicmisunderstanding
Public Seminars
Philanthropy
Advertorials
Newsletters
Gifts
Events
Media Relations
Web sites
Annual reports
SponsorshipsCommunication
Networking
Tools ofPublic Relations
8. Proliferation of Media• Roots:
– Dissatisfaction with the “official” media– Cable TV, private radio licenses, independent press– Home entertainment growth – Speed, verification, and instant gratification– Internet globalization culture
• Implications:– Need to assess media reach and impact factors– Need for independent media research & monitoring .– Need for integrated Marketing communication (IMC)– Consider direct marketing option
9.Direct Marketing
• Roots:– Proliferation of media (prohibitive cost)– Competition for customer attention– Availability of Database, postal & telco technologies.– Advances in CRM and credit tools
• Implications:– Invest in CRM and payment gateways– Learn offline and online catalog business– Integrate direct marketing into your marketing mix
10.Diverse Lifestyles• Roots:– The overwhelming speed of life and work– Dual income (or more) families– The different types of pressure in many jobs.– Increase in disposable income and ambitions
• Examples:– Cocooning - Religious nostalgia– Motel homes - Hotel Homes– Life’s little pleasures– Multitasking
Diverse Lifestyles
• Implications– The delivery culture– The café culture– On the run culture– Home entertainment– Shopping/Eating out as entertainment– Less home visits and guest dinners
So What Can you do about it?
7 Directions to Invest in:1. Branding and Positioning (and communication)2. Retailing first-hand3. Quality and Cost Management4. Developing and Retaining Talents5. Marketing Research and CRM6. Proactive Public Relations7. New Product Development
7 Dimensions to Investigate:1. Second Wave theory2. Credit and Financing Options3. Media Reach and Impact4. Integrated Marketing Communications5. Direct Marketing Options6. Online and Off-line Catalogs7. Develop New Products and Services for New
Lifestyles
Thank you