The Changing Nature of MARKETING
Question : What is marketing? How has the marketing landscape changed in
Modern world? OR
Discuss trends affecting marketing and what these trends mean for
How marketers deliver value to customers. MARKETING DEFINITIONS:
According to Philippe Kotler:
"The process by which companies create value for customers and build strong relationships with them into capture customer value”.
OR
According to William J. Stanon:
“Marketing is a set of business activities designed to plan, price, promote, and distribute demand.
to provide satisfactory products to target markets in order to achieve organizational objectives”. OR
According to the American Marketing Association:
“Marketing is the activity, set of institutions and processes of creation, communication, distribution and
valuable exchange incentives for customers, customers, partners and society at large”.
CHANGING THE MARKETING LANGUAGE:
Every day, drastic changes are taking place in the market. The rate of change is so fast that it's possible change has become a competitive advantage. The future is not what it used to be. Changes in the market is observed suddenly. As the market changes, the people who serve it must change as well. Here we look at key trends and forces that are changing the marketing landscape and challenges Marketing strategy. We look at the main developments:
1) Precarious economic environment,
2) The digital age,
3) Rapid globalization,
4) A call to raise morals and social responsibility,
5) The evolution of non-profit marketing
6) Increase the number of jobs in the marketing department.
7) Strengthen service marketing
first. Uncertain economic environment: Since the Great Recession of 2008, people have reshaped their consumption habits. They have identified their new purchasing priorities. The "new savings", born of the Great Recession, is becoming an ingrained consumer behavior that is reshaping consumption patterns in different ways. Even in As a result of it, consumers are now spending more cautiously. In response, companies in all industries, from discounters to luxury brands, have linked them marketing strategies with new economic realities. More than ever, marketers are focusing on value in their value propositions. They focus on value for money, practicality and durability in their product offerings and marketing. Even the wealthiest consumers join the frugal trend. The ostensibly free expenditures are Not so fashionable anymore.
For example,
for many years, Lexus emphasized status and performance. But now it has been focus on "lowest cost of ownership". His pre-Christmas ads often feature a loving spouse Gift your loved one a new Lexus with a big red bow tie. Lexus still runs these ads, but it also hedges by running other ads with the tagline "lowest cost of ownership." refers to Lexus' fuel economy, durability, and resale value.
I. Top-down economic marketing strategy:
Selective discounts can be a key marketing tactic in a recession, smart Marketers understand that cutting back in the wrong place can hurt brand image in the long run and customer relationships. The challenge is to balance the brand value proposition with the present time and at the same time improve long-term equity. Monday. Marketing Strategies After the Recession: At the end of a recession, the organization's position in the competitive group will depend on How well do you handle tough times? So instead of discounts, many Marketers hold a price point of view and instead talk about why their brand is worth it. And more right rather than slashing their marketing budgets in tough times, companies like Walmart, McDonald's, Hyundai and General Mills have maintained or increased marketing cost. The goal in these uncertain economic times is to gain market share and build a customer base relationships that are detrimental to competitors reduce their costs.
2. The Digital Age:
The recent technological boom has created a digital era. The explosive growth of computing, communication, information and other digital technologies have had a major impact on the way companies bring value to their customers. Now, more than ever, we are all connected other people and information anywhere in the world. It used to take days or weeks to receive news about important world events, we now learn about them as they happen via live satellite news programs and websites. Where it used to take weeks to exchange letters with other people in faraway places, they are just minutes away from you via cell phone, email or webcam. For better or worse, technology has become an integral part of our lives. The digital age has provided marketers with exciting new ways to learn and track customers and create products and services tailored to each customer's needs. It helps marketers Communicate with customers in large groups or one-on-one. Through web conferencing, marketing Researchers from the company's headquarters in New York can consult focus groups in Chicago or Paris. without ever getting on a plane. Using today's powerful computers, marketers can create their own detailed customer databases and use them to target individual customers with offers designed to satisfy their specific needs. Digital technology has also brought a new wave of media, advertising and relationships create tools, from online advertising, video sharing tools and mobile phones to web applications and online social networks. They can't always control conversations about their brand. new digital world that makes it easy for consumers to absorb marketing content that once existed only in advertising or on Brand Web with them wherever they go and share it with friends. Current user statistics: Total Internet users worldwide 55.1% of the total world population Internet users in Pakistan (as of January 2018) 22% of Pakistan's population (44.6 million) Active social media users 16% of Pakistani population (32 million) Annual digital growth in Pakistan 27% per year (+10 million)
Source: Profit.PakistanToday.com
Online marketing is currently the fastest growing form of marketing. It's hard to find one these days The company does not use the web significantly. Business-to-business e-commerce (BtoB) is also exploding. It seems almost every business has a web store set up.
3. Rapid globalization:
In an increasingly small world, businesses are now globally connected to their customers and business partners. Today, almost every business, large or small, is affected in one way or another by compete. American companies were challenged at home by skillful marketing of European products and Asian multinational. Companies like Toyota, Nokia, Nestlé, and Samsung often perform better their American competitors in the US market. As a result, managers in countries around the world are increasingly adopting a global, not just local, approach. overview of the industry, competitors and business opportunities. They ask: what is global marketing? How is it different from national marketing? How do competitors and global forces influence our business? To what extent should we “go global”?
4. Enhance social responsibility:
Marketers are rethinking their relationship with values and social responsibility and with It is the Earth that sustains us. As global consumer and environmental movements mature, Today's marketers are called upon to develop sustainable marketing practices. Corporate ethics and social responsibility have become hot topics for almost every business. Customers today expect businesses to create value in a socially and environmentally responsible manner. Social and environmental responsibility movements will place stricter requirements on business in the future. Some companies are resisting these movements.
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