Report Rethinking Marketing Final

8/8/2019 Report Rethinking Marketing Final

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A Report On

Rethinking Marketing


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Content

Sl no Particulars Page no

1 Introduction 1-3

2 Mass to Niche 4-6

3 Tradition andC

ulture in ModernMarketing

7-10

4 Green Marketing 11-12

5 Social Media Marketing 13-14

6 From Marketing Product to

Cultivating Customers

15-19

7 Bibliography 20


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Introduction

Marketing

Marketing is the activity, set of institutions, and processes for creating, communicating,

delivering, and exchanging offerings that have value for customers, clients, partners, and

society at large (AMA, 2007)

The Era`sofmarketing

The Production Era

The production era is so named because many companies' main priority was the reduction of

the cost of production. Companies felt that exchanges could be facilitated merely by lowering

manufacturing costs and, in turn, passing along the cost savings to customers in the form of

lower prices.

This focus on production (which lasted from just after the Civil War until the 1920s) was

fueled by such milestones as Henry Ford's invention of the assembly line and the more

efficient work principles advanced by Fredrick W. Taylor's scientific management movement

(Haber, 1964). These two innovations made business managers aware that mass production

resulted in steeply declining unit costs of production. In turn, the declining unit costs of

production made profit possibilities look fabulous.

The rationale for mass production seemed sound at the time. According to Michael

Porter(1980), reduced production costs can lead to reduced selling prices, which appeal to the

largest segment of customers. Unfortunately, turbulent economic conditions associated with

the late 1920s through the 1940s caused many companies to fail even though they had

adopted this production oriented philosophy. As a result, companies looked for other ways to

facilitate the exchange process.Marketing objectives of the concept is to produce Cheap,

efficient production and Intensive distribution of its products all over so that it is easily

available to all the prospective customer, and rapid Market expansion to gain the control of

the market.


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The Marketing Era

The marketing concept emerged in the mid 1950s. instead of a product-centered, make and

sell philosophy. Business shifted to a customer centered sense and respond philosophy.

The job is not to find a right kind of customer for your customer for your product but to find

right products for your customer. For example DELL computer dose not prepare a perfect

computer for its customer but it lets its customer to chose a right configuration for

themselves.

Now a days firms have moved from simply having a marketing department that sells the

products but now in companies, the marketing department sets company operating policy,

including technical research, procurement, production, advertising, and sales. The marketing

concept states that if all of the organization's functions are focused on customer needs, profits

can be achieved by satisfying those needs. The satisfaction of customer needs can be

accomplished through product changes, pricing adjustments, increased customer service,

distribution changes, and the like.


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Mass to Niche

India is a massive market with an extremely diverse outlook. Whether it is cost driven

approach or value driven approach it more difficult to tapping or segmenting Indian market

have been one of the toughest job for the marketer. Due to these reasons the marketer has

tried to come out from typically conventional tired segmentation patterns and try something

exiting. However it worked to the marketer in his favor, but what really needs to seen at this

point of time is, whether this trend of spotting niches within the mass has a long term

sustainability, or whether the marketer would have to switch back to the old of gold school

of thought.

Redefining segmentation

Segmentation may be defined as the group or cluster of customers who share a set of wants.

The traditional segmentation aimed at

Sorting of the market based on certain parameters like geography, demographic etc. Tapping the most attractive segment and trying to capture it. Focusing of the marketing effort on the selected customer group. Customizing the offers of the selected customer group.

Traditionally segmentation involves selecting the customer groups and targeting the best

customer group. It was more a stereotyped approach. At that particular period of time the

segmentation is done on those groups which are more prospective and hence open to the

opening of the firm. A case in point could be a tooth paste like Colgate that aimed at masses

positioning itself as Suraaksha Chakra for the teeth, until the launch of Pepsodent with a new

proposition like Germi-Check aimed at specific sub-segment within the mass market.


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New approach to the Niche marketing

Earlier the marketers tried to focus only on the specific customer group rather than entering

in to the mass market. And even that also a small segment and tried to be out of reach from

the competitors. However, with the changing marketing environment marketers have realized

that if they really have to retain their customer base they have to enter to the mass rather than

focusing only on the selected base. This has changed the whole market scenario, which has

affected the marketers in a very significant way. In the current market situation the customer

will be looking for a perfectly fit product or commodity. Even the customers in the same age

group will be having different taste and traits.

As a result, the basic premise behind niche marketing seems to be undergoing a transition.

Niche marketing is more of finding a slot within the mass rather than creating a slot within

the few customers. Significant changes in the demographics, cultural transition, shift in

market dynamics are the main reasons behind the change of the segmentation from a single to

mass.

The Dynamic customer

Change in lifestyle of the customers will be leading to the change in the customer dynamics.

And also it has lead to the change in the buying pattern of the customer.

Cutting th

rough

th

e mass to create a nich

e

Mass segmentation can be seen highly in the FMCG sector. But urbanization and

demographic shifts resulted in the birth of new segments like the health and fitness conscious

generation. This also led to the customized products for the customers. The other volatile

sector in India is beauty conscious segment. In the year HUL introduced Fairness cream for

the women in the year 1980 which is called Fair&Lovely. At that time they mainly targeted

on the marriageable women between the age of 18-25. Then they initially shifted their

segmentation on the other young girls also. However in recent times marketers are learning to

accept the metro sexual man and are marketing attempts to effectively target this new

segment with a range of products made especially for their use.

The telecom sector is not far behind. While almost all the existing telecom players are

making a mad rush to pocket as many as subscribers as possible with their luring plans and


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mass marketing strategies, Virgin mobiles has earned a distinctive competitive edge with the

strategy of tapping the Indian youth.

Creating a Niche: Nokia

The success of the telecom operators is directly proportional to that of the cell phone markets.

With a view to get to the insight of the real needs of the consumers and also to analyze the

triggers of their mobility, the finnishgiant and market leader in the cell phone segment, Nokia

conducted a survey in research in 2006. The polling was done across 77000 consumers in

across 26 countries. At the end of the study the company was able to map 12 distinct

consumer segments in the countries that were polled. This study reflects the talent of Nokia.

Connecting people the strategy appears to be a definite pointer for targeting the right kind

of model for right kind of segment.

This strategy of specialization within the precincts of the general mass, rather than deviating

and creating a separate niche is fast catching up. Such a strategy can definitely boost the

launching of a vast array of products for a wider cross section people.

Customers are today are extremely conscious of their needs and requirements. They know

exactly which product will meet their requirement and fit in to their individual preferences.

The market has evolved and opened up along with the customer. A product with mass appeal

will no longer works for the typical Indian customers. They go all out and demand specific

products and this clearly an indication of the fact that for controlling and daring the

competition, the marketer has to think beyond the tried and tested traditional means of

catering to customers.


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Tradition and Culture in Modern Marketing

Most of us think about marketing in a traditional sense where you develop a campaign and

advertise it in traditional mediums such as direct mail, TV or magazines. This traditional

outbound method of marketing is currently being challenged with the emergence of new

technology, creativity and social media. Inbound marketing strategies are now competing

with our traditional methods by earning the attention of consumers rather than buying it

through paid media. So we are now forced to rethink marketing to remain competitive in the

21st century.

Tradition and Culture in Modern Marketing

Increased urbanization and westernization coupled with influx of a whole variety of modern

consumer products led to a departure from past practices, and pushed traditional vehicles of

communication as well as traditional art forms to the background. However once the potential

of our tradition and culture was recognized, enterprising business began to exploit the same

for promoting their products, leading to their resurgence.

Art and culture in modern advertising and Promotions

Over the years, the Indian consumers had got distanced from their roots. In such a scenario,

Indian television and movie industry started mythology through new technology platforms.

Ramayan, Mahabarata on television and most recently Ganesh and Hanuman in the movies

reflects such a development.

Advertisers also use mythology to capture the attention of the viewers. In one of the add it

was showed the Ravana using headache balm.

Sponsorship of Durga Puja

The Durga Puja is performed in Kolkata in a grand way. At the initial days it was performed

by collecting funds from the public. And then corporate organizations started looking to it

and they started sponsoring the Puja ceremony. Last year the Pandal facilities were given to a

American company. All major companies used to promote their products in this function.


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Promoting network marketing through Dandia

The commercial support given to Dandia since late 1990s is sure be noticed. In particular,

use of this festive occasion by network marketer became quite popular.

AkshayaTritiya to promote sale of jewelry

Another major development in the use of tradition in modern business is environs are

AkshayaTritiya. It is believed that if gold is bought on this day there will be grate luck for the

person. And thus the companies will make a big sale on the day.

Folk Arts, Dance and Music in Advertising

However the product concept never supported the system till recent days. But it is now a day

used widely. For e.g. Rajastani singer and a dancer shown in the advertisement of bourn vita.

And in some adds they will show the days a king used to look after the country

Panchatantra in Election Campaign

Not only the marketers but also the politicians now a day are using many traditions to

promote their parties. A political party campaign during election was Panchatantraflokore in

its advertisements.

Thus we can see that various developments around us carry a very strong and powerful

unspoken massage with them. These recent trends in society give strong hints of the fact that

we are definitely getting back to hoary past. In days to come we see more advertisements and

promotions that uses traditional art forms and elements drawn from our rich culture.

As marketing dollars shift away from paid media and towards technology and creative, were

witnessing a new era in the world of advertising. Creativity is becoming indispensable for

businesses to develop new and engaging campaign ideas that spark some type of interaction

rather than advertise a proclamatory campaign message.


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Current retailing Landscape in rural india

Tata Tata KisanSansar

Tata chemicals had a chain called tatakisan Kendra which offerdagri inputs and financial

advisory functions to farmers. Rallis, in partnership with ICICI bank and Hindustan Unilever,

supported farmers from pre-harvest to post-harvest stage. later these two operations were

merged under Tata KisanSansar (TKS) banner into a network of one-stop shops providing

agri-inputs to loans and knowhow. Today these TKSs reacg out to over 3.6 million farmers

through 421 franchisee-run centers in three states.

M & M Mahindra shubhalbh and Mahindra krishivihar

Mahindra Shubhlabh and Mahindra krishiVihar initiated by indiaslargerestferm equipment

company M &M , operate along similar lines. The former operates in 11 states and offers a

complete range of products and service to augment farm productivity and establishes linkages

to the commodity market chain. The company has invested Rs.20 cr into these initiatives

during the last three years and has plans to enter food retailing

Godrej Aadhaar and Manthan

Goderej Group which entered agri-business almost 30 years ago through a small animal feeds

subdivision. Currently, its rual marketing initiative is based on two concepts

Aadhaar&Manthan.The first Aadher outlet was established at Mancher near pune

.throughAadher, Godherej sells only branded products its own as well as those of oters, nad

also offers services like veterinary care, soil testing, rural credit, water management, agri-

inputs , advisory services, marketing of rural produce, ets. These malls are the logical

extension of the agri-extension service.

DCM HariyaliKisan Bazaars

The Rs.2000 cr New Delhi based DCM Shriram consolidated Ltd.., which is in the

consumer finance and insurance businesses, has diversified into rural Malls too. Today, it

has 101 outlets of HariyaliKisanBazaarz (HKBs)stockingagri- inputs, consumer durables and

FMCGs. On an average, each HKB has 400 walk-ins per day with 70 to 80 % repeat visitors


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SBIs Focus on Agricultural credit

SBI is leading in the agricultural financing in the country. With the record of Rs 18000 cr in

advances granted to around 50lakh farmers the rural network has reached a figure of 6600

branches, which include 972 special branches meant exclusively for extending credit for

agriculture. The specialized mango and litchi credit cards for the orchard owners in

Uttarkhand is another initiative of the bank.

Specialized credit cards

ICICI Banks high tech projects and franchisee model have made its way easy into the rural

market. The rural internet kiosks and partnership with microfinance institution have proved to

be successful. The village knowledge centers of the Union Bank of India have helped the

rural consumer with a series of services including credit services. Union green Cards are

launched for easing the credit sanctioning process and White card for dairy activities was

another innovative scheme by the bank.

Initiative by insurance companies

Insurrence in India has primarily been an urban phenomenon. But many private insurance

players have begun to enter rural market. TATA AIG Life insurance entered the rural areas

initially focusing on rural rich and has now begun to offer life insurance to the economically

weaker sections in the rural area..by offering appropriate small premium polices. Was in themicro-insurance concept of the IRDA(Insurance Regulatory and Development Authority of

India). Aviva Life insurance has launched GrameenSuraksha in association with micro

finance firm BASIX.


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Green marketing

IT refers to the process of selling products and/or services based on their environmental

benefits. Such a product or service may be environmentally friendly in itself or produced

and/or packaged in an environmentally friendly way.

Why Green Marketing?

As resources are limited and human wants are unlimited, it is important for the marketers to

utilize the resources efficiently without waste as well as to achieve the organization's

objective. So green marketing is inevitable.

There is growing interest among the consumers all over the world regarding protection of

environment. Worldwide evidence indicates people are concerned about the environment and

are changing their behaviour. As a result of this, green marketing has emerged which speaks

for growing market for sustainable and socially responsible products and services.

Green marketing cases

Philips Light's CFL

Philips Lighting's first shot at marketing a standalone compact fluorescent light (CFL) bulb

was Earth Light, at $15 each versus 75 cents for incandescent bulbs. The product had

difficulty climbing out of its deep green niche. The company re-launched the product as

"Marathon," underscoring its new "super long life" positioning and promise of saving $26 in

energy costs over its five-year lifetime. Finally, with the U.S. EPA's Energy Star label to add

credibility as well as new sensitivity to rising utility costs and electricity shortages, sales

climbed 12 percent in an otherwise flat market.

Car sharing services

Car-sharing services address the longer-term solutions to consumer needs for better fuel

savings and fewer traffic tie-ups and parking nightmares, to complement the environmental


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benefit of more open space and reduction of greenhouse gases.[citation needed] They may be

thought of as a "time-sharing" system for cars. Consumers who drive less than 7,500 miles a

year and do not need a car for work can save thousands of dollars annually by joining one of

the many services springing up, including ZipCar (East Coast), Flex Car (Washington State),

and HourCar (Twin Cities).

Electronics sector

The consumer electronics sector provides room for using green marketing to attract new

customers. One example of this is HP's promise to cut its global energy use 20 percent by the

year 2010. To accomplish this reduction below 2005 levels, The Hewlett-Packard Company

announced plans to deliver energy-efficient products and services and institute energy-

efficient operating practices in its facilities worldwide.


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Social Media Marketing(SMM)

Online marketing has been evolving continuously with the passage of time. For a while,

Keyword campaigns and banner ads used to be the choice for the advertising in cyberspace.

However, the development of online social networks and the accompanying technological

changes led to a new form of marketing known as Social Media Marketing. The technique of

SMM help the companies, particularly the newly established and small ones, reach the mass

market rapidly and inexpensively. This article provides an overview of SMM including its

characteristics, advantages, disadvantages and the possible future.

SMM is primarily internet based, marketing methods like word of mouth marketing. SMM is

the way of promoting website brand or business by interacting with or attracting the interest

of current or prospective customers through the channels of social media. It is also defined as

the activities that permit marketers to receive large amount of traffic to their website by

establishing attention and links.

5 Forms of SMM:

1. Interaction based on Identity2. Interaction Based on association3. Conversation initiated by User4. Conversation initiated by provider5. In-person interaction

Video games, iPhone and Facebook applications are becoming wildly popular by consumers

who spread the sponsors associated brand virally across the Internet by word-of-mouse.

BMW launched the 1Series with a Graffiti Facebook application asking consumers, What

drives you? Consumers were encouraged to create their own Graffiti art and over 9,000

drawings were submitted garnering over 500,000 votes. For BMW, that was an extremely

inexpensive way to not only reach but also engage over 500,000 people. Small businesses can

accomplish the same results with the right creative and technological support.

Marketing today is about pulling people in to engage in something for fun or educational

purposes. It is about publishing information direct to consumers to attract them to you.

Publishing information like news releases, blogs, webcasts, podcasts and viral marketing

messages is exactly how David Meerman Scott became a best selling author of The New


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Rules of Marketing and PR. This book delves deep into the inbound marketing system, and

he is obviously on to something since it has now been translated into 23 different languages

without even working with a publishing company.

The success of these new inbound marketing methods hinges on the creativity behind the

ideas and content. Bad content will deliver a negative brand image which is exactly what you

dont want to do! And traditional advertising continues to offer a quick and easy way to

market your message to the masses if you have the budget to place media. Your best bet

Convergence Marketing. Mix an inbound marketing approach that will engage your

audiences, and then balance your traditional and new media strategy accordingly.


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products rather than cultivate customers. Companies must shift their focus from driving

product-centered transactions, to building long-term relationships with customers by offering

whichever of the company's products the customer values most at any given time.

To compete in this aggressively interactive environment, companies must shift their focus

from driving transactions to maximizing customer lifetime value. That means making

products and brands subservient to long-term customer relationships. And that means

changing strategy and structure across the organizationand reinventing the marketing

department altogether.

This can only be done if companies make products and brands subservient to long-term

customer relationships. And that means - reinventing the marketing department altogether.

The essence of reconfiguring marketing as a customer department is captured in this diagram:

The traditional marketing department must be reconfigured as a customer department that

puts building customer relationships ahead of pushing specific products. To this end, product

managers and customer-focused departments report to a ChiefCustomer Officer instead of a

CMO, and support the strategies of customer or segment managers.


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Two key implications of this reconfiguration need additional emphasis:

First, reconfiguration is not merely drawing a different looking organizational chart, with

different sounding titles. It is a fundamental shift in allocating, sharing, and managing

resources - people, budgets, and information. This has implications not only for which tasks

get priority and how they are executed, but also for who is the best person to execute them.

For instance, since the role of the customer manager is the ultimate expression of what

marketing should be - co creating unique value with and for specific customers - we expect

them to approach their task more like consumer anthropologists and behavioural scientistsas

opposed to advertising or promotion specialists.

Second, in this reconfigured world, being able to offer relevant consumer value at all times

becomes a key driver of business success and profitable growth. For ongoing customer value

innovation to become a part of the DNA of the organization, it is important that the company

move from an internally focused concept of customer value creation, to a more open,

collaborative model of co-creating value with customers and other key stakeholders.

Integrating R&D into the customer department will go a long way to ensuring that the

customer remains at the center of all value creation activities.

A migration from marketing products to cultivating customers will also require a shift in

metrics to gauge the effectiveness of a company's customer-focused strategy. We discuss

four new ways of thinking about business success in this customer-led world of marketing:

Focus more on customer profitability, less on product profitability

Customer Lifetime Value (CLV) thinking should trump maximizing current sales thinking

Customer equity - the sum of all CLV's of a company's customer base - should replace a

brand equity orientation

Companies should pay more attention to customer equity share, and less attention to market

share

Cultivating Customers

Not long ago, companies looking to get a message out to a large population had only one real

option: blanket a huge swath of customers simultaneously, mostly using one-way mass


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communication. Information about customers consisted primarily of aggregate sales statistics

augmented by marketing research data. There was little, if any, direct communication

between individual customers and the firm. Today, companies have a host of options at their

disposal, making such mass marketing far too crude.

The exhibit Building Relationships shows where many companies are headed, and all must

inevitably go if they hope to remain competitive. The key distinction between a traditional

and a customer-cultivating company is that one is organized to push products and brands

whereas the other is designed to serve customers and customer segments. In the latter,

communication is two-way and individualized, or at least tightly targeted at thinly sliced

segments. This strategy may be more challenging for firms whose distribution channels own

or control customer informationas is the case for many packaged-goods companies. But

more and more firms now have access to the rich data they need to make a customer-

cultivating strategy work.

Building Relationships

B2B companies, for instance, use key account managers and global account directors to focus

on meeting customers evolving needs, rather than selling specific products. IBM organizes

according to customer needs, such as energy efficiency or server consolidation, and

coordinates its marketing efforts across products for a particular customer. IBMs Insurance

Process Acceleration Framework is one example of this service-oriented architecture.

Customer and industry specialists in IBMs insurance practice work with lead customers to

build fast and flexible processes in areas like claims, new business processing, and

underwriting. Instead of focusing on short-term product sales, IBM measures the practices

performance according to long-term customer metrics.

Large B2B firms are often advanced in their customer orientation, and some B2C companies

are making notable progress. Increasingly, they view their customer relationships as evolving

over time, and they may hand off customers to different parts of the organization selling

different brands as their needs change. For instance, Tesco, a leading UK retailer, has

recently made significant investments in analytics that have improved customer retention.

Tesco uses its data-collecting loyalty card (the Club card) to track which stores customers

visit, what they buy, and how they pay. This information has helped Tesco tailor merchandise


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to local tastes and customize offerings at the individual level across a variety of store

formatsfrom sprawling hypermarts to neighbourhood shops. Shoppers who buy diapers for

the first time at a Tesco store, for example, receive coupons by mail not only for baby wipes

and toys but also for beer, according to a Wall Street Journal report. Data analysis revealed

that new fathers tend to buy more beer because they cant spend as much time at the pub.


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Bibliography:

y KeelySaye ,Embracing the Marketing Revolutiony Rethinking Marketing: by Roland T. Rust, Christine Moorman, and GauravBhallay Rethinking marketing: Peter Druckers challengey Rethinking Marketing, by Roland Rust, Christine Moormon, GauravBhalla, Harvard

Business Review, January-February 2010.

Journels

y 4P of marketing-y Marketing mastermind

Documents

Report Rethinking Marketing Final