MEGA MARKETING

MEGA MARKETING ?

mega marketing Management activity involves: (in addition to the typical marketing activities )

other elements of a firm's external environment such as government , media , and pressure

groups . The term was coined by the US marketing academic Philip Kotler who suggests that a market

mix must have two more P's: public-relations , and power

 

external environment Conditions , entities , events , and factors surrounding an organization that influence its activities and choices , and determine its opportunities and risks . Also called operating environment .

government A body of people that sets and administers public policy , and exercises executive , political, and sovereign power through customs , institutions , and laws within a state.

• media Communication channels through which news , entertainment , education , data , or promotional messages are disseminated.

• Media includes every broadcasting and narrowcasting medium such as newspapers , magazines , TV, radio, billboards , direct mail , telephone , fax , and internet .

• pressure group Non-profit and usually voluntary

organization whose members have a common cause for which they seek to influence political or corporate decision makers to achieve a declared objective .

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2 P’S OF MEGA MARKETING

• PUBLIC RELATION

•POWER

PUBLIC RELATION The profession or practice of creating and

maintaining goodwill of an organization's various publics ( customers , employees , investors , suppliers , etc.), usually through publicity and other nonpaid forms of communication . These efforts may also include support of arts, charitable causes , education , sporting events , and other civic engagements .

power • Ability to cause or prevent an action ,• make things happen; the discretion to

act or not act.

MEGA MARKETING V/S MARKETING

Basis Marketing Megamarketing

Marketing objectives To satisfy consumer demand

Gain market access to satisfy consumeer demand or alter consumer demand

Parties involved Consumers, distributors, dealers, suppliers, marketing firms banks

Normal parties+govt.agencies,Labor unions,reform groups, gen public

marketing tools Market research, product development, pricing, distribution, promotion

Normal tools +power and public relation

Time frame

Investment cost

Short

low

Much longer

Much higher

• Case study

• Pepsi-Cola outwitted its arch rival, Coca-Cola, by striking a deal to gain entry into India’s huge consumer market of 730 million people.

• Coca-Cola had dominated the Indian soft drink market until it abruptly withdrew from India in 1978 in protest over Indian government policies.

• Coca-Cola, along with Seven-Up, tried to reenter, but hard work and effective political marketing gave Pepsi the prize.

• Pepsi worked with an Indian group to form a joint venture with terms designed to win government approval over the opposition of both domestic soft drink companies and anti-MNC legislators.

• Pepsi offered to help India export its agro-based products in a volume that would more than cover the cost of importing soft drink concentrate.

• Furthermore, Pepsi promised to focus considerable selling effort on rural areas as well as major urban markets.

• Pepsi also offered to bring new food processing, packaging, and water treatment technology to India. Clearly, Pepsi-Cola orchestrated a set of benefits that would win over various interest groups in India.

• Inferenes of the Case instances demonstrate the growing need for companies that want to operate in certain markets to master the art of supplying benefits to parties other than target consumers.

• This need extends beyond the requirements to serve and satisfy normal intermediaries like agents, distributors, and dealers.

• third parties—governments, labor unions, and other interest groups—that, singly or collectively, can block profitable entry into a market.

• These groups act as gatekeepers, and they are growing in importance. Markets characterized by high entry barriers can be called blocked or protected markets.

• In addition to the four Ps of marketing strategy—product, price, place, and promotion—executives must add two more—power and public relations. such strategic thinking is called mega marketing .

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