14 Takes-Contemporary Business Environment

08/10/2009 21:30

← Presentation 1

← Unconventional Marketing

←← Marketing as defined by Kotler encompasses the 4 Ps- Product,

Price,

Promotion and Placement

← The broad guidelines for all marketing have been well defined by

Kotler and there doesn’t seem to be any thing left out.

← The marketing styles of today are quite different from those even a

decade ago and continue to change at a rapid pace. But despite the

drastic changes happening in the marketing business, the rules laid down

by Kotler are still followed quite religiously.

←← Marketers today use low cost, quick methods like redoing a shop

wall and then emblazoning it with their ensign, and even graffiti.

← Marketing has gone digital and gains large viewership for a product

in the e-domain.

← The Media being to implement marketing plans are becoming more

unconventional.Though media like Facebook and Twitter weren’t

mentioned by Kotler per se, the tactics used by these media essentially

follow the same guidelines set by Kotler for any marketing campaign like

consumer involvement, satisfaction of a need, giving consumers value for

their money etc.

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←←← Presentation 2

← Digital Advertising

←←← Trends in Advertising are tending towards digitalization of

advertising and a reduction in physical and TV advertising.

← Companies like GAP are turning to digital advertising for the

activation and launch of new products under their brand umbrella. The

question arises if digital advertising would be equally effective for new

brands as it is for established brands. The effectiveness of digital

advertising all rests on the type of product, the target market and the

price, which in turn drives a need for information which can be got from

the net.

← Some advertising agencies do not advocate greater e-ads for new

companies trying to establish themselves, however the low cost of such

advertising lures start-ups to go in for a greater proportion of digital

advertisements to bring down their costs.

← Many ad agencies are in the transition stage of gathering the

technological know-how needed to launch into digital media like the

internet and mobile ads on a large scale.

← However conflict management is needed as well as clients who are

accustomed to conventional methods of advertising show resistance to a

shift into the digital space. This resistance is evident as the total spending

on digital and online ads in India today is barely 2% of the total

advertising pie.

← Ad Agencies today advocate a blend of conventional and digital

advertising which makes it truly “INTEGRATED” Marketing

Communication.

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←← Presentation 3:

← Trends and Myths: Beyond 2010

←← Marketing trends are defined by the environment ( Political,

Economic, Social, Technological and Legal) that influence the strategic

paths employed by firms to market their products.

← Some trends that persist for a long time result in the emergence of

myths.

← These include:

← Advertising is not as important in the launch of a product

← Promotion of products doesn’t often result in a substantial increase

in sales and hence revenue

←

← The possibility of the current trends continuing till 2010 is

dependent on factors in the environment that is in a constant state of flux.

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←←←←←←←←←←←←←←←←←←Presentation 4:

←← Rebranding:

←← Rebranding of a product represents a tactical shift in the way a firm

markets its product.

← The process of rebranding may cover the entire line of products in

the product portfolio of the firm or just a single product. At times

rebranding represents a change of company of corporate vision and a

radical change in how the firm potrays itself in the minds of the consumer.

Eg: Godrej re-configured its logo from a plain red script to a multi-colored

one.

← Certain instances of rebranding involve a sea change in the Vision

and Mission of the company. This is clearly visible in the case of Videocon,

that changed its vision and introduced Chouw and Mhouw to gain the

attention of its target market.

←← Apart from these tactical changes, companies have resorted to new

rebranding strategies like

← Changing the brand ambassador to one who better represents the

image of the brand.

← Game Shows: Godrej has introduced a game show in which

participants can win an entire Godrej Home.

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← Presentation 5:

← Outdoor Advertising in the French Context: B2B

←← The current trend in the marketing world seems to be capturing as

many eyeballs as is possible. This has lead advertisers to move out of the

traditional print, radio and television ads to out of home (OOH)

advertising. The varied forms taken by this form of advertising shows the

importance of this form. Everywhere you look the appears a new

specimen of OOH advertising.

←← Ads on Public facilities:

← Free urban facilities free bus stop with advertising. This is an

emerging trend in India as well. Bus-stops feature advertisements both on

the shelter and on the back wall of the structure.

←← Roadways: Roadways that lead to hypermarkets are often used to

inform prospective consumers about the offers available at the market.

Advertising along roads may take many forms, the most common one

being billboards.

←

← Billboards: Ads are now flashed for 8 seconds before giving

way to another ad. This system of rotating ads enables the owner

of the billboard to showcase a maximum of 1250 ads per day

←← Restrictions: The restrictions imposed on OOH range from limits on

the size of the billboard, content, placement of the hoarding etc. this has

lead to increased importance of B2G relations in the marketing field.

←← Commercialisation: Public information billboards feature both the

information and an advertisement that brings in revenue to the local

governing body.

←← Stagnation: of market in 2007-08

←

← Advertising saw negative growth in 2009

← Only internet advertising is seen to still be growing. The growth rate

is approximated at 8.6%

←←← Telecomm providers getting into the picture in addition to ad

agencies that specialize in OOH media.

← Greater interaction with customers Is enabled by Bluetooth

technology. Other new technology includes digital boards etc.

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← Presentation 6

← Brands that Failed

←←← The process of branding strives to establish a firm position for the

product of the line of products in the mind of the consumer. The first

impression made by a brand often tends to be a lasting one, so Brand

managers need to get it right, right at the start.

← Once the image of the brand is established with a tag line, logo and

other elements, customers don’t respond to any “fiddling” with the brand

elements, so if an attempt at rebranding is needed, it needs to be subtle

and acceptable to the customers, without shaking the initial position too

much. If the initial position is not favorable, only then is a strategic

revemp of the brand advisable.

← This is proven in the case of EuroDisney, which wasn’t well received

by Europeans for three key reasons:

← Euro was a term linked to business, and not to recreation and fun

← Europeans didn’t grow up with Disney, so they took some time to

relate to the whole concept of Disneyland

← The dining experience wasn’t to the liking of European visitors who

expected dinner at a particular hour which created long lines and hungry

dissatisfied diners waiting in them.

←← Some of my take aways from the presentation:

← Don’t contradict your brand values.

←← Adapt or die. For youth brands, the only constant is change. The

same tried and tested formula for too long, and should be changed

according to environmental factors

←← Avoid over-exposure. As the brand extends its line, the identity

becomes diluted and consequently it struggles to attract enough custom

to keep it going.

←← Watch market trends. The Brand must change according to the

customers needs which tends to change quickly with time.

←← Match the culture of your market: When launching into a new

market (EG Kellogs in India), match the brand attributes with the needs

and culture of the target consumers

←← Don’t focus too much on internal factors: Excessive focus on the

factors within the organization might result in losing track of internalities,

and the environment.

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←← Presentation 7

← Blue Ocean Strategy

←← Define Blue Ocean Strategy- it is not a market but a way of doing

business.

← It is an innovation on the normal business model or a totally new

model.

←← It has been in existence since the start of the 20th century but has

only been defined as “Blue Ocean “ in 2004.

←← Any market that is being exploited by the Blue Ocean Strategy is

bound to become a Red Ocean at some point in time. The only difference

in different markets is the time taken for the transformation from Blue to

Red.

←← Firms that enter into a market using Blue Ocean strategy need to

beware of the following:

←← The Blue Ocean strategy is not sustainable, and needs constant re-

invention so that the competitors who enter the same space can’t match

the strategy of the first mover in the market. Blue Ocean strategy does

not have a high sustainability factor and the firm using it should be aware

of this fact.

← Once a firm implements Blue Ocean strategy there are no

benchmarks to measure its degree of success. If the are no benchmarks

and success can’t be measured, it becomes hard to control and manage.

This is because anything that can be measured can be managed.

← Firms try to capitalize on the fact that they are following a Blue

Ocean strategy and make efforts to increase their revenue as far as is

possible until other players enter the market and copy their strategy. The

firm should take care to ensure that it is not perceived as being too

opportunistic while doing this. If the firm gets such an image in the minds

of its consumers, it will be very difficult to change such a negative first

impression.

←←

←← Presentation 8

← Retailing in India

←← The Retailing industry in India is on the rise, with over 12 million

outlets which contribute over 10% to the GDP of India. The Indian retail

industry employs over 18 million people and is the largest employer after

agriculture. The A.T. Kearney’s annual Global Retail Development Index

rated India as No 1 for retail investment.

←← Despite this apparently rosy picture painted by various global

bodies, there are a number of challenges faced by the retail sector in India

today.

←← Challenges:

← Increasing working capital requirement, made wore by tightening

bank loans to retailers.

← Continuously decreasing inventory turnover, which is obvious by the

way retail outlets are bleeding in the present scenario.

← No single retailer has a significantly high profit margin as compared

to the other players in the sector, thus the sector is not particularly

attractive to any particular retailer

← Decreasing profit margins, due to the above factors and high rents

and tax rates

← Poor Supply chain management and inefficient transportation

facilities, combined with lack of ERP and SAP technologies and 3PL ( third

Party Logistics suppliers) to ensure effective implementation of the retail

strategies.

← Focus on realty development rather than on retail. Many Indian

retailers are not really concerned with the retail part of their business.

They are equally satisfied to sell their real estate once the retail outlet has

been wound up.

← Over leveraging of assets. The retailers go deep into debt due to

leveraging of their assets and then being unable to pay the debt incurred.

← The sales people employed in the retail outlets also have limited

knowledge about the products they sell in the store which often leads to

customer dissatisfaction. This has been proved by consumer surveys that

show that consumers think that salespersons have satisfactory knowledge

at best. This can be remedied by proper training of the staff by the retail

outlet.

←←← Solutions:

←← Foreign players like SPAAR and MAX coming into India and doing

the SCM part and the back office administration for the store. This is to

get around the restriction imposed by the Indian government on the

maximum FDI in the retail sector .

←← Other solutions employed are cost cutting , customer research by

the management and retail management schools.

← Centralised warehouses are established to optimize transport times

and expenses for the products and also to minimize inventory.

← Retailers also have their instore brands that compete with better

known brands for revenue and shelf space. Retailers must strike a balance

between the two to optimize their revenue.

←←

←← Presentation 9

← Consumer Behaviour

Consumer behaviour is an essential element in any marketing plan. Most

companies carry out intensive research into the behaviour of their

consumers in various stages of product purchase:

1) Pre purchase quest for information

2) Identification of alternatives and influencing factors at this stage

3) Purchase of the product/service

4) Post Purchase behaviour

A consumer behaves differently based on the quality of the product/

service or even the experience of the consumer while making the

purchase in a store or a supermarket.

Comparison of French and Indian consumer behaviour:

This can be analysed based on the Maslow pyramid. The French

consumers are at a higher level in the Pyramid and this dictates the way

they behave, and the same goes for India consumers who are at a lower

level in the Pyramid.

Another fact that determines behaviour in India is the location of the

consumer: Urban or Rural.

Important factors of consumer bahaviour are:

Bargaining- This is a necessity and even a fun activity for some

consumers.

Availability of Information : consumers today are better informed

than their counterparts from the 1990s.

Internet shopping: The consumer culture is influenced by the

penetration of the internet and e-shopping which has caused a

change in consumption patterns of individuals.

←← Presentation 10

← Female Economy

←← Women have a global spending power of $ 14 trilion per year. This

represents a large market for a variety of products ranging from beauty

products to households appliances to laptops.

← Women control almost half of the income and the spending patterns

too depend to a large extent on them.

← Many marketers are waking up to the avenue of targeting women

with differentiated products and services and a whole slew of marketing

campaigns directed at them.

← This type of marketing differs with the type of product being

marketed, as some products are perceived as being exclusively for

women or for men.

←← A thorough analysis is required before any such marketing steps are

undertaken.

← This is because women would like to be treated on par with men

with regards to certain products and like to have differential treatment

with respect to other products.

← Another issue that arises is that feminists might raise an issue that

differential treatment of women in terms of marketing and product

differentiation is a return to discrimination against women. Here it is

essential to keep the consumer in mind and consider the possibilities

before taking on such steps.

←← Another issue that might arise is the alienation of the male market.

← If a product is targeted to the female consumer it might become

perceived as a feminine product and this might drive away the potential

male consumers.

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← Presentation 11

← Tourism in India

←Current scene in India:

Focus on national monuments only

Increase in the number of foreign medical tourists who avail of packages

that are offered to them in conjunction with their hospital packages.

A rise in different types of tourism in India

Spiritual tourism

Experiential tourism

Medical tourism

Business travel

The government of India is making a great effort to attract foreigners to

India with its “India Shining” and “ Incredible India” campaigns that ptray

India as something close to heaven on earth, and a phenomenal place to

enjoy a holiday.

However this promise is made just to bring tourists in.

Once they are here, they don’t really experience all that they have been

promised in the campaigns.

A huge amount of money is funneled into marketing but not enough is

ploughed into the actual implementation of the promises made in the

marketing campaigns.

If the delivery of “heavenly” experiences is made the main focus of the

tourism department, India tourism and monuments will virtually market

themselves.

A vital flaw in the view of the Government is that tourism is just not as

important as the more obviously important industries in the nation.

The way forward is to bring in a change in the attitude of the Central and

State Governments towards tourism.

← Presentation 12

← Business to Business

←←← Business-to-business (B2B) marketing is the organizational sales

and purchases of goods and services to support production of other

products, to facilitate daily company operations, or for resale.

← The major players in a Business to Business marketing campaign

are: Buyers, Users, Deciders, Influencers, Gate keepers

← A complex inter-working of these players finally decide the outcome

of the B2B endeavor.

← B2B INCLUDES MARKETING OF GOODS AND SERVICES TO:

← Companies

← Government Bodies

← Institutions (i.e. hospitals)

← Non-Profit Organizations

New trends in B2B:

Businesses uses Loyalty programs, buzz marketing, Industrial Branding to

obtain the order from the business buyers.

←←

← Presentation 13

← Movie Marketing

In todays world where movies gross millions of dollars in box offices

around the world, they have turned into important tools in the hands.

Movies have enormous power over their audiences to influence their ways

of life and even they way they respond to situations that come their way.

Movies based on novels draw large revenues for the authors of the books

and vice versa. Books that have been turned into movies often feature

movie scenes on their covers which serve to draw attention of movie

goers towards books they would not normally consider reading.

Examples of these include P.S. I love you, and The Da Vinci Code.

Product placement in movies is also used to a large extent especially by

manufacturers of branded goods

Examples include The Pink Panther which featured a Dell display unit and

Sweet November and Bride Wars publicizing Apple

Film releases are timed to coincide with events and specific dates to

create hype among the public. Example the movie 2012 was released

precisely at 8:12 p.m. to emphasize the name of the movie.

← Presentation 14

← Advertising v/s PR

←← PR is assuming more important roles and the difference between

advertising and PR is getting increasingly blurred.

←← Ads:

Trends in Advertising today:

1) Brand linked to a single benefit

← 2) Character that reflects a personality

3) Glamour and sex to capture attention

PR:

PR is generally something not paid for and

Delivery of a messg, endorsement of a messg

Sports event marketing

You don’t pay for it

Invite press, create news

PR is based on an element of trust and is more credible.

← There have been instances where firms have paid to be featured in

newspaper editorials which result in both the firm and the newspaper

losing their credibility.

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