The new marketing realities

Major societal factors•Today major societal factors have created new market behaviours, opportunities and challenges. Here are 11 key ones

NETWORKING INFORMATION TECHNOLOGY

The digital revolution has created an Information age that promises to

lead to accurate levels of production and more relevant price

GLOBALISATIONTechnological advances in transportation , shipping and communication have made it

easier for companies to market in and consumers to buy

DEREGULATION•Much of growth in many sectors in India is due to government policies of deregulation and liberalisation•Many countries have deregulated industries to create greater competition and growth opportunities•Air lines in India is expanding after rapid deregulation

HEIGHTENED COMPETITION• Intense competition among domestic and foreign brands rises marketing costs and shrinks profit margins•Many brands have become mega brands and extended into a wide variety of related product categories, presenting a significant competitive threat

INDUSTRY CONVERGENCE• Industry boundaries are blurring as

companies recognize new opportunities at the intersection of two or more industries•The computing and consumer electronics

industries are converging and digital technology fuels massive convergence

RETAIL TRANSFORMATION•Retailing in South Asia is going a major transformation•Due to rapid penetration of organised retailers in India the shopping behaviour of customers is also undergoing discernible changes•The retail revolution has spread to a range of product categories from provisions and daily use items to consumer durable products

DISINTERMEDIATION•The amazing success of early dot com companies created disintermediation• In response traditional companies engaged in reintermediation and became brick and click retailers adding online services to offerings

CONSUMER BUYING POWER•Consumer has substantially increased buying power and can purchase from home ,office or mobile phones•Business buyers can run a reverse auction in which sellers compete to capture their business

CONSUMER INFORMATION•Consumers can collect information in as much breadth and depth as they want about practically anything•They can access encyclopedias ,dictionaries ,medical information ,movie ratings, consumer reports•Social networking sites bring together consumers of common interest

CONSUMER PARTICIPATION•Consumers have found an amplified voice to influence peer and public opinion•Companies are inviting them to participate in designing and even marketing offerings to heighten their sense of connection and ownership

CONSUMER RESISTANCE•Many consumers today feel there are fewer real product differences, so they show less loyalty and become more price and quality sensitive in their search for value•Many consumers avoid the products they feel which are overmarketed

NEW COMPANY

CAPABILITIES

“Marketers can use internet as a

powerful information and sales channel”

“Marketers can collect fuller and richer

information about markets ,customers ,p

rospects and competitors”

“Markets can tap into social

media to amplify their brand message”

“Marketers can facilitate and

speed external communication

among customers”

“Marketers can send ads, coupons, samples and

information to customers who have requested them

or given the company permission to send them”

“Marketers can reach consumers on the movie with mobile marketing”

“Companies can make and sell individually

differentiated goods”

“Companies can improve

purchasing ,recruiting ,training and internal

and external communications”

“Companies can facilitate and speedup

internal communication among their employees

by using internet as private intranet”

“Companies can improve their cost

efficiency by skilful use of the

internet”

ReCap•The new marketing reality:•Major societal factors•New Company Capabilities

“Created by Sai Srujan,RGIPT

RaeBareli, during an internship by

Prof. Sameer Mathur,IIM LUCKNOW”