Sunday, November 13, 2005

Evolving trends & new Frontiers in Marketing

The dynamic market forces the marketers to be on their toes always. Past few years we have seen customers have become over demanding and is looking for delights may be via better experience, new product categories which will satisfy their ever increasing needs. Some of the consumers are even ready to pay a premium for these differentiators for the aspirational brands and the upcoming luxury segment.

At the same time customers have become more brand conscious. They prefer going for branded commodities for an extra penny. In past we have seen many commodities and low involvement categories being branded and many are on their way to get branded.

Over a period of time marketers have understood that there are customers who have specific needs which need to be fulfilled by niche products. Marketers have traveled a journey from mass to micro marketing.

These days customer care for convenience, which has forced marketers to go online for transactions and information dissemination of their company’s product and services.

With all this marketers also realized that the Indian urban market though look attractive, the treasure lies at the bottom of the pyramid. HLL, the FMCG leader realizes more than 50% sales from rural market. Other big and some regional players have tried to take this root, to overcome the saturated urban markets.

But where are these brands, experiences, niche and premium products available? In 1999, the retail organized sector was 1% of total retail sales, which on date is 4% and is projected to be 10% in 2010. So we have seen a shift in consumer buying behavior, from Kirana stores to Malls. But still we will have to see a major change in Indian retailing.

As product spaces become modularized, componentized, and compartmentalized to address the individual, customized, targeted needs of markets, the correspondent market space, and the value chains in them become more integrated. In a sense, products become disintegrated while markets become integrated. The future belongs not only to the convergence of devices, but also to divergent (i.e., specialized) devices.

The forces that are causing and shaping all above are Globalization, Technological Development and Deregulation. Distances are dead and the advent of Internet finally administered coup de grace to technology based competitive advantages. These numerous changes are generating a host of new challenges and opportunities. Moreover, these opportunities need to be looked upon from fresh perspectives.

Does that mean that the old and established principles of marketing are dead? No. Needs are still to be satisfied, Competition tackled and the biggest of all Customer is still the King.

Its not an easy world for Marketers !!


Blogger Nitin Kochhar said...

Its not every year, its every moment, marketers need to be updated with the evolving trends in this dynamic scenario

November 15, 2005 9:19 PM  

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