Category: Management Notes

Recent trends in marketing reflect the growing influence of digital technologies, consumer empowerment, and data-driven strategies. Digital marketing dominates with the use of SEO, social media, and content marketing to engage audiences online. Personalization has become vital, as businesses use data analytics to deliver tailored experiences. Influencer marketing leverages social media personalities to build trust and reach niche markets. Sustainability marketing is gaining traction, with brands promoting eco-friendly practices to align with consumer values. Omnichannel marketing ensures a seamless customer experience across digital and physical platforms. AI and automation are enhancing customer service through chatbots and predictive analytics. Lastly, user-generated content and interactive marketing are fostering community engagement and brand loyalty. These trends highlight the shift from product-focused to customer-centric strategies, reshaping how companies communicate and build relationships with their audiences.

Recent Trends in Marketing

1. More Emphasis on Quality, Value, and Customer Satisfaction

Today’s customers place a greater weight to direct motivations (convenience, status, style, features, services and qualities) to buy product. Today’s marketers give more emphasis on the notion, “offer more for less.”

2. More Emphasis on Relationship Building and Customer Retention

Today’s marketers are focusing on lifelong customers. They are shifting from transaction thinking to relationship building. Large companies create, maintain and update large customer database containing demographic, life-style, past experience, buying habits, degree of responsiveness to different stimuli, etc., and design their offerings to create, please, or delight customers who remain loyal to them. Similarly more emphasis is given to retain them throughout life. Marketers strongly believe: “Customer retention is easier than customer creation.”

3. More Emphasis on Managing Business Processes and Integrated Business Functions

Today’s companies are shifting their thinking from managing a set of semi independent departments, each with its own logic, to managing a set of fundamental business processes, each of which impact customer service and satisfaction. Companies are assigning cross-disciplinary personnel to manage each process.

Marketing personnel are increasingly working on cross- disciplinary terms rather than only in the marketing department. This is the positive development, which broadens marketers’ perspectives on business and also leads to broaden perspective of employees from other department.

4. More Emphasis on Global Thinking and Local Market Planning

As stated earlier, today’s customers are global, or cosmopolitan. They exhibit international characteristics. This is due to information technology, rapid means of transportation, liberalization, and mobility of people across the world. Companies are pursuing markets beyond their borders. They have to drop their traditions, customs, and assumptions regarding customers.

They have to adapt to their offering as per the cultural prerequisites. Decisions are taken by local representatives, who are much aware of the global economic, political, legal, and social realities. Companies must think globally, but act locally. Today’s marketers believe: “Act locally, but think globally.”

5. More Emphasis on Strategic Alliances and Networks

A company cannot satisfy customers without help of others. It lacks adequate resources and requirements to succeed. Company needs to involve in partnering with other organizations, local as well as global partners who supply different requirements for success.

Senior manager at top-level management spends an increasing amount of time for designing strategic alliance and network that create competitive advantages for the partnering firms. Merger, acquisition, and partnering are result of a strong thirst for strategic alliance and networks.

6. More Emphasis on Direct and Online Marketing

Information technology and communication revolution promise to change the nature of buying and selling. Companies follow direct channel in term hiring salesmen, setting own distribution network, designing network marketing, applying online marketing, and contracting with giant shopping/retailing malls.

People anywhere in the world can access the Internet and companies’ home pages to scan offers and order goods. Via online service, they can give and get advice on products and services by chatting with other users, determine the best values, place orders, and get next-day delivery.

As a result of advances in database technology, companies can do more direct marketing and rely less on wholesale and retail intermediaries. Beyond this, much company buying is now done automatically through electronic data interchange link among companies. All these trends portend a greater buying and selling efficiency.

7. More Emphasis on Services Marketing

As per general survey, about 70% people are, either directly or indirectly, involved in service marketing. Because services are intangible and perishable, variable and inseparable, they pose additional challenges compared to tangible good marketing. Marketers are increasingly developing strategies for service firms that sell insurance, software, consulting services, banking, insurance, and other services.

8. More Emphasis on High-tech Industries

Due to rapid economic growth, high-tech firms emerged, which differ from traditional firms. High-tech firms face higher risk, slower product acceptance, shorter product life cycles, and faster technological obsolescence. High-tech firms must master the art of marketing their venture to the financial community and convincing enough customers to adopt their new products.

9. More Emphasis on Ethical Marketing Behaviour

The market place is highly susceptible to abuse by those who lack scruples and are willing to prosper at the expense of others. Marketers must practice their craft with high standards. Even, governments have imposed a number of restrictions to refrain them from malpractices. Marketers are trying to sell their products by obeying and observing moral standards or business ethics.

10. Other issues

• Craze for international standards and emphasis on quality, value and customer satisfaction. Application of TQM (even, Six Sigma) in every aspect of marketing management.
• Changed attitude toward competition. They compete not for maximum gains but for maximum offers to customers.
• Relationship marketing at both levels at internal functions of organization and at outside with service providers, to satisfy customers.
• Concept of global and complex customers.
• Marketing department is placed in the center of management. It enjoys unique and dominant status in organization.
• Use of latest technology for survey and research.
• More emphasis on after-sales services.
• Entertaining value in advertising, etc.

Marketing is related to the exchange of goods and services. Through its medium the goods and services are brought to the place of consumption. This satisfies the needs of the customers. The following activities are undertaken in respect of the exchange of goods and services:

1. Gathering and Analysing Market Information

Gathering and analyzing market information is an important function of marketing. Under it, an effort is made to understand the consumer thoroughly in the following ways:

• What do the consumers want?
• In what quantity?
• At what price?
• When do they want (it)?
• What kind of advertisement do they like?
• Where do they want (it)?

What kind of distribution system do they like? All the relevant information about the consumer is collected and analyzed. On the basis of this analysis an effort is made to find out as to which product has the best opportunities in the market.

2. Marketing Planning

In order to achieve the objectives of an organization with regard to its marketing, the marketeer chalks out his marketing plan. For example, a company has a 25% market share of a particular product.

The company wants to raise it to 40%. In order to achieve this objective the marketer has to prepare a plan in respect of the level of production and promotion efforts. It will also be decided as to who will do what, when and how. To do this is known as marketing planning.

3. Product Designing and Development

Product designing plays an important role in product selling. The company whose product is better and attractively designed sells more than the product of a company whose design happens to be weak and unattractive.

In this way, it can be said that the possession of a special design affords a company to a competitive advantage. It is important to remember that it is not sufficient to prepare a design in respect of a product, but it is more important to develop it continuously.

4. Standardization and Grading

Standardization refers to determining of standard regarding size, quality, design, weight, colour, raw material to be used, etc., in respect of a particular product. By doing so, it is ascertained that the given product will have some peculiarities.

This way, sale is made possible on the basis of samples. Mostly, it is the practice that the traders look at the samples and place purchase order for a large quantity of the product concerned. The basis of it is that goods supplied conform to the same standard as shown in the sample.

Products having the same characteristics (or standard) are placed in a given category or grade. This placing is called grading. For example, a company produces commodity – X, having three grades, namely A’. ‘B’ and ‘C’, representing three levels of quality; best, medium and ordinary respectively.

Customers who want best quality will be shown ‘A’ grade product. This way, the customer will have no doubt in his mind that a low grade product has been palmed off to him. Grading, therefore, makes sale-purchase easy. Grading process is mostly used in case of agricultural products like food grains, cotton, tobacco, apples, mangoes, etc.

5. Packaging and Labelling

Packaging aims at avoiding breakage, damage, destruction, etc., of the goods during transit and storage. Packaging facilitates handling, lifting, conveying of the goods. Many a time, customers demand goods in different quantities. It necessitates special packaging. Packing material includes bottles, canister, plastic bags, tin or wooden boxes, jute bags etc.

Label is a slip which is found on the product itself or on the package providing all the information regarding the product and its producer. This can either be in the form of a cover or a seal.

For example, the name of the medicine on its bottle along with the manufacturer’s name, the formula used for making the medicine, date of manufacturing, expiry date, batch no., price etc., are printed on the slip thereby giving all the information regarding the medicine to the consumer. The slip carrying all these is details called Label and the process of preparing it as Labelling.

6. Branding

Every producer/seller wants that his product should have special identity in the market. In order to realise his wish he has to give a name to his product which has to be distinct from other competitors.

Giving of distinct name to one’s product is called branding. Thus, the objective of branding is to show that the products of a given company are different from that of the competitors, so that it has its own identity.

For instance, if a company wants to popularise its commodity – X under the name of “777” (triple seven) then its brand will be called “777”. It is possible that another company is selling a similar commodity under AAA (Triple ‘A’) brand name.

Under these circumstances, both the companies will succeed in establishing a distinct identity of their products in the market. When a brand is not registered under the trade Mark Act, 1999, it becomes a Trade Mark.

7. Customer Support Service

Customer is the king of market. Therefore, it is one of the chief functions of marketer to offer every possible help to the customers. A marketer offers primarily the following services to the customers:

• After-sales-services
• Handling customers’ complaints
• Technical services
• Credit facilities
• Maintenance services

Helping the customer in this way offers him satisfaction and in today’s competitive age customer’s satisfaction happens to be the top-most priority. This encourages a customer’s attachment to a particular product and he starts buying that product time and again.

8. Pricing of Products

It is the most important function of a marketing manager to fix price of a product. The price of a product is affected by its cost, rate of profit, price of competing product, policy of the government, etc. The price of a product should be fixed in a manner that it should not appear to be too high and at the same time it should earn enough profit for the organization.

9. Promotion

Promotion means informing the consumers about the products of the company and encouraging them to buy these products. There are four methods of promotion:-

• Advertising
• Personal selling
• Sales promotion
• Publicity

Every decision taken by the marketer in this respect affects the sales. These decisions are taken keeping in view the budget of the company.

10. Physical Distribution

Under this function of marketing the decision about carrying things from the place of production to the place of consumption is taken into account. To accomplish this task, decision about four factors are taken.

They are:

(i) Transportation

(ii) Inventory

(iii) Warehousing

(iv) Order Processing.

Physical distribution, by taking things, at the right place and at the right time creates time and place utility.

11. Transportation

Production, sale and consumption-all the three activities need not be at one place. Had it been so, transportation of goods for physical distribution would have become irrelevant. But generally it is not possible. Production is carried out at one place, sale at another place and consumption at yet another place.

Transport facility is needed for the produced goods to reach the hands of consumers. So the enterprise must have an easy access to means of transportation.

Mostly we see on the road side’s private vehicles belonging to Pepsi, Coca Cola, LML, Britannia, etc. These private carriers are the living examples of transportation function of marketing. Place utility is thus created by transportation activity.

12. Storage or Warehousing

There is a time-lag between the purchase or production of goods and their sale. It is very essential to store the goods at a safe place during this time-interval. Godowns are used for this purpose. Keeping of goods in godowns till the same are sold is called storage.

For the marketing manager storage is an important function. Any negligence on his part may damage the entire stock. Time utility is thus created by storage activity.

The word global literally means worldwide, or all over the world. So, you’d think a global company must do business all over the world. But realistically, few, if any, companies could be said to do business with every single country in the world. A global company is one that does business in at least one country outside of its country of origin. Even expanding to one other country is a huge undertaking. It’s not as if someone wants to order some of your products and you ship them out to France or Bolivia or wherever and BOOM! you’re instantly a global company.

Becoming a global company means introducing your products and your company to the people of that country. It takes a great deal of research to determine which country to begin with and how to do the introductions. It means sending employees to the country to see it firsthand, talk with some of the people there and then decide if there’s a good fit. Of course, once a company decides to go global and has success in one country, it naturally tries expanding to another country, so global companies often have a presence in several countries.

Global Company Examples

Although using the term global in reference to business began in recent years, doing business globally isn’t new. One example is that of Coca-Cola, which was a fledgling startup in 1886. By the time of World War II, the 50-year-old company had managed to keep its item price to 5 cents, believing that everyone should be able to enjoy the treat. The company decided to provide its popular drink to U.S. soldiers wherever they were stationed, still at just 5 cents.

Today, people in over 200 countries enjoy not only Coke and its other regular and diet soft drinks, like Sprite and Fanta, but over 3,800 products ranging from bottled water and iced teas to juices, vitamin-enriched and soy-based beverages. A major reason for Coca-Cola’s success has been its strategy of looking at each market individually and providing beverages that fit with the local culture and tastes. Sometimes that means creating new products for a market or tweaking a beverage to be more in line with what people in that country are known to enjoy.

Some other companies that are now global include hospitality corporations Hyatt and Hilton Hotels, information technology leaders Cisco and Adobe, manufacturers Monsanto and 3M and financial services company American Express. Oh, and an internet search company you may have heard of called Google. What unites these very different institutions is that all have made Fortune’s October 2016 list of the 25 Best Global Companies to Work For. Employees cited how their company makes them feel valued, cares about their personal and professional development, keeps open lines of communication all the way to the CEO and encourages them to keep a good balance of work and family time.

Clearly, not only is it possible to expand globally with a great deal of success, but it’s also possible to do so without sacrificing the well-being of the employees that help you get there in the first place. In the long run, making your company a great place to work – the word fun was even mentioned many times – is a way to keep good employees that help you expand and grow globally without the pain of internal friction and high staff turnover.

It’s important to remember that these companies, though huge today with a presence in numerous countries, all began as small startups. Coca-Cola had its humble beginning at one drugstore in downtown Atlanta, Georgia. Google started out as the research project of two Stanford grad students, Sergey Brin and Larry Page. The key to successfully becoming a global company is to take it slow, one country at a time.

Global Company Benefits

The U.S. Small Business Administration reports that 96 percent of the world’s consumers live outside of the U.S. The obvious benefit to expanding globally is to increase sales and profits by reaching out. There are a number of other benefits, however, to having a presence in countries outside of the U.S.:

1. Increase customer base

Selling in another country vastly increases your customer base. If the U.S. market is saturated with products like yours, and research shows that’s not the case in the country you’ve chosen to expand into, you have an untapped potential customer base available to you. While your product may have become familiar to U.S. customers, it’s brand new to those in a foreign country.

2. Lower operating costs

If labor and/or manufacturing costs are cheaper in the new country, you stand to save on operating costs. That can make a huge difference to your bottom line.

3. Take advantage of the difference in seasons

In situations where your product is seasonal or even somewhat seasonal, meaning sales are steady year-round and then surge during one season, expanding in countries where the seasons are opposite to the U.S. allows you to experience high sales levels throughout the year.

4. Control product introductions

Remember, too, that you don’t have to provide your entire product line in the new country. You can begin with just seasonal products, announcing your presence with a big advertising splash. After the season ends, introduce other products one by one, creating media buzz each time you bring another product to the market. Since this market doesn’t know the extent of your product line, you can sell only the products that make the most sense in that market.

5. Continue your company’s high growth rate

If your company had been growing rapidly, but growth has stalled in the U.S., you can get back on track by expanding to another country.

6. Create new jobs

When you enter the market in a foreign country, you need employees or agents who can represent your company. Whether you have offices or manufacturing facilities there or just representatives, you’re creating work opportunities in that country. This helps that country’s economy and makes your company attractive.

Global Company Downfalls

Expanding to another country won’t be all sunshine and roses. That’s why it’s vital to fully research any country you’re considering in order to minimize unwelcome surprises:

1. Different regulations and technologies

Just as states in the U.S. have different regulations for doing business, other countries have different employment and tax laws that you’ll need to understand in advance. Don’t risk being surprised by these after you’ve committed to the expansion.

2. Infrastructure issues

Many countries do not have the reliable internet and cellphone services that the U.S. has. Particularly in developing countries, such as some in Africa, communication services are spotty or nonexistent. Whether you’re planning to open offices or a manufacturing facility in a country, or have agents there who represent you, be sure to verify that anywhere you’re considering expanding into has internet and cellphone communication. You’ll need them to put up a website, post on social media and communicate with your representatives in that country. Even travel in other countries can be problematic due to poor roads, traffic or other factors. Think of some of the older areas in European countries that have only narrow, winding streets and few places to park. They look charming, but could be a nightmare for your employees or distributors to do business.

3. Parlez-vous Francais Don’t assume you’ll be doing business in English. Although you’ll find some English speakers, many people did not learn English in school and they conduct business fully in their native languages. Make sure the software you use to run your business, from sending emails to promoting on social media, support the country’s language. The moment you decide on the country, begin a rapid language learning program for you and others who will be working with you on the expansion.
4. You’re not in Kansas anymore

Like Dorothy in “The Wizard of Oz,” you can feel as if you’ve landed in a bizarre place indeed because you don’t understand the culture. For example, something as simple as leaving the chopsticks upright in your rice bowl can be seen as rude in China. Using humor in a business discussion in Germany could nix the whole deal. And never say “no” during discussions in India. Opt for “we’ll see” or “I will try” instead. Ask the SBA or people you know who have a presence in the country what the differences are between how U.S. companies do business compared with the country you’re considering.

How to Become a Global Company?

When Coca-Cola began its expansion into foreign markets, it undertook extensive research about the country and its people, including their likes and dislikes as a group. As a result, the company came away with a good understanding of which products would be likely to sell well in that country, and which would not, as well as how to interact with the locals according to their customs.

1. Research, research, research

You cannot do too much research before going global. Which country should you start with? What have others experienced when they started their global expansion? Contact the SBA and devour all information they have for you. The SBA has arrangements with many schools to provide help to businesses in their area. Contact area universities for help. Many times, interns will help with the research so you don’t have to do it all.

2. Establish a local team in the country

Once you’ve chosen the country you want to expand into, find locals to help you do this. They know their country and often make a business of helping foreigners get established. Then, be sure to listen to the information and feedback the local team gives you. This may seem obvious, but it’s one of the biggest mistakes companies make when going global – they hire the local team, but discount the suggestions the team gives.

“One of the most disappointing mistakes that I’ve seen companies make is that they hire highly competent, intelligent local people to serve their overseas markets, but then fail to consider their input when making strategic decisions,” wrote business consultant Nataly Kelly in the Harvard Business Review. Company executives would ask her opinion, she said, instead of listening to the local team.

Maybe the advice seems contrary to what you’ve learned about business. That’s why other countries are called foreign. Their practices can seem strange to someone who has only done business in the U.S. You hired the local team for a good reason, so take their ideas seriously.

3. Take it slow

It’s human nature to want to act on an idea once you have it in mind. Think about how long it took you to get your business to where it is today. Now you’re considering going into a foreign environment and putting your hard-earned profits on the line. Give it the time it takes to thoroughly research, seek advice from others who have expanded and from organizations that are designed to help businesses go global, and get the right local team in place.

Follow the 1-2-3 plan. The SBA makes it simple with its three-step plan:

1. Get counseling
2. Find buyers
3. Get funding