Posted in Marketing & Strategy Articles, Total Reads: 763
, Published on 09 August 2015
The market is changing very fast with the advent of internet and with this marketing practises have also started changing. Till the late 1980s marketing was all about Billboards, a few Ads in the newspaper and the magazines and pamphlets. With the advent of television the face of Marketing changed and there was always a big fight between the competitors of choosing the right slot for the right product. Along with that companies also used to conduct various PR events, celebrity endorsement and all other related activities. In early 2000s internet became accessible to more and more people. Also social networking sites, you-tube, etc were changing the way people used to interact with each other. Organizations saw a new opportunity here as the number of individuals using internet were increasing at a great pace.
Also marketing through this channel was more economical as well as the impact was measurable. In fact the thumb rule of making the goal SMART (Specific, Measurable, Achievable, Relevant and Time Bound) became more and more realistic. In the 2010s other force hit the marketers. It was the use of data that was collected by various OLTP in the last 10 years of internet usage by the companies. The use of cloud computing, big data, using Business Intelligence to come out with insights is the latest way how companies are planning to develop their marketing strategies. Organizations have realized the power of data and in the coming time more and more companies will be using internet for their marketing.
Why this data based marketing is such a rage these days?
The reasons are many but we can focus on the most important ones here: -
1. Helps in Personalization: -
Recently some big bank sent an email to a director of a big MNC offering him loan to buy an Rs 50,000-60,000 bike. This is the situation of marketing through internet at present. Such sort of emails and marketing strategies are not only waste of time but also it may irritate the receiver up to the extent that they may mark your organization’s email as spam. Lack of relevant marketing is a problem of the organizations. The good thing is that they have realized this and have started working for the same. Organizations have started using Business Intelligence to get the data from which they extract the relevant information of the target segment and then using it for customizing the message as per the need of the customer. Customer Relationship Management is in used for this and Volkswagen is one of the pioneers for the same. In the coming time more and more companies will be providing such solutions.
2. Loyalty Programs for customer retention:-
It is a well known fact that retention of customers takes one-fifth of the efforts as that it takes to acquire new customers. So to retain the loyal customers it is very much necessary to keep the interaction active as well as personalized with these customers. So here the role of CRM becomes very important with which this flow of communication is maintained with the customers. Time to time coupons is given to them and also various special offers are given to these loyal customers to maintain the loyalty.
3. Brand Cults: -
Harley Davidson is the first name that can come to one’s mind if you think of brand cult formation. This brand has a formed a group of more than a million members. The purpose of this cult for the members is to form a group of the owners of Harley Davidson and then go for adventurous journey together. These owners are so much after Harley Davidson that they make tattoos of the Harley Davidson on their body. This is not something that started by its own. There was one point of time when the sales of Harley Davidson were dipping and was at an all time low at that time. Then they came up with this idea of forming a group who will be invited for adventurous and fun filled journey. This idea was very successful and the owners started to form groups themselves and then started going on such tours themselves. This was a very successful marketing technique and it has generated a lot of positive word of mouth and increase in sales for the brand. This strategy is then followed by many other companies in India as well. Generally this is followed by the automobile owners and in India as well as outside India.
4. Products Placement: -
These days we can see a number of product placements in movies and even in TV series. Actors or characters are seen using a brands product in the movie that’s how the products come to into notice. In the movie “Krish” product placement was rampant and in Aamir Khan’s last movie PK Duracell batteries were shown right at the end. So all these are examples of product placements are becoming so popular because now days this subtle form of Marketing is preferable as the consumers see ads and promotions ain interference in their privacy. So to avoid building an image in the mind of the customers of an organization which is hell bent upon pushing its product this strategy has become very important.
There are various other ways in which communication to the targeted segment is varying. However it is important to remember that the way in which the brand formation is achieved remains the same. The companies still follows the Market Research before launching their product. They still know that they need to work on their PODs and POPs and have to improve their product. The best way to kill your bad quality product is to advertise that product. So before advertising it should be clear that first the product should be good then only Marketing will be useful. Also the other fact to realise here is that it is only the channel of communication that has changed. It is more and more of internet based specially in the urban areas. However the way of forming the brands and other such specifics will remain the same. So there is a need of building the basics in the same manner as it was supposed to be done but to build upon it with the help of the new technology that is available.
This article has been authored by Tarun Sharma from IIM Kashipur