Development and issues in marketing

B.COM(P) DELHI UNIVERSITY, MARKETING PRESENTATION.

1. Development And Issues IN Marketing Presented by: Shivang jain, sec-a, 2623 Prakhar pandey, sec-a, 2607 Sajal Agrawal, sec-a, 2590 Angad singh, sec-a, 2563

2. What Is Rural Marketing? The  Rural Marketing  refers to the activities undertaken by the marketers to encourage the people living in rural areas to convert their purchasing power into an effective demand for the goods and services and making these available in the rural areas, with the intention to improve their standard of living and achieving the company’s objective, as a whole .

3. Potential of Rural Marketing

4. Characteristics O f Rural M arketing Large and scattered population : According to the 2001 census, 740 million Indians forming 70 per cent of India’s population live in rural areas. The rate of increase in rural population is also greater than that of urban population. The rural population is scattered in over 6 lakhs villages. The rural population is highly scattered, but holds a big promise for the marketers . 2. Low literacy level: A large percentage of rural population is illiterate or semi-literate. Therefore, audio and visual media are needed in place of print media. Demonstration on use is necessary in case of durable products. 3 . Development of infrastructure: Roads, power, warehouses, etc. are inadequate. Therefore, physical distribution is difficult, time consuming and expensive.

5. 4 . Reference Groups: Teachers, health workers, panchayat members, shop owners are the main influence on buying decision making. 5. Media Habits: Rural customers are fond of folklore, fairs, haats, nautanki, etc. 6. Traditional outlook: The rural consumer values old customs and traditions. They do not prefer changes. Gradually, the rural population is changing its demand pattern, and there is demand for branded products in villages . 7. Marketing mix: The urban products cannot be dumped on rural population; separate sets of prod­ucts are designed for rural consumers to suit the rural demands. The marketing mix elements are to be adjusted according to the requirements of the rural consumers.

6. Rural Marketing Mix Marketing Mix ‘refers’ to the set of actions, tactics, tools or variables that a company uses to promote and sell its brand or product in a market.

7. 4 P s of Rural Marketing Every Product and promotion, which is a hit in cities , might not work in rural areas. Product Promotion Price Place

8. Product Product for rural market must be built or modified to suit the lifestyle and needs of the rural consumers. Product Strategies: 1 . New/Modified Product 2 . Utility Oriented Product 3 . Avoiding Sophisticated Packaging 4 . Application of Value Engineering 5. Small unit packaging

9. Price • The villagers, due to their limited resources, are very price sensitive by nature. Pricing Strategies: • Large volume - Low merging • Overall e fficiency and passing on benefits to consumers. • L ow cost/value for money product • Low volume - low price

10. Place Strategy • Segmentation • Coverage of villages with 2,000 and above population • Distribution up to feeder markets/ Mandi towns. • Direct Contact with rural Retail Place (A village as a pace for promotion, distribution, and consumption is very different from town or city)

11. Promotion • Promotion aspect always creates a challenge in rural markets because of the fact that village have thin population density and are widely spread over large remote areas. • NCAER conducted survey to study the socio economic effects of advertising ; the India Society of Advertisers sponsored this survey. It covered 3,836 household in 50 towns and 50 rural district in 10 states. It showed a clean rural –urban divide, 16% or rural and 25% of urban customers felt that advertising influenced them to frequently or always buy products they do not really need.

12. What is Social Marketing? Social marketing is an approach used to develop activities aimed at changing or maintaining people’s behaviour for the benefit of individuals and society as a whole. 

13. Social Marketing The Four P’s of Social Marketing Product Promotion Price Place

14. Product What we’re offering people : Service Behavior Commodity (tangible goods) Solution to a problem: Benefits Unique Competitive Real: Defined in terms of the user’s beliefs, practices, and values

15. The cost of purchasing the product: Money Time Pleasure Loss of self-esteem Embarrassment Price

16. Channels for information: Where service is provided Where information is received Where tangible product is purchased Available Easy to find and use Appropriate Timely Place

17. Promotion Message design elements: Type of appeal Tone Spokesperson

18. What is Digital Marketing ? “ Digital marketing ” is the process of building and maintaining customer relationships through online activities to generate sales and/or capture customers that are searching on the Internet for answers .

19. What are the benefits of digital marketing? Over traditional marketing * Puts the consumer in control Provides convenience Drives brand loyalty Reduces the selling cycle Builds your brand It is measurable It is cost effective

20. Digital Marketing O bjectives One way to make sure you are found on the web is with an optimized digital marketing strategy. Most digital marketing strategies and campaigns have 5 objectives : Reach the right audience Engage with your audience Motivate your audience to take action Ensure efficient spending on your campaign Maximize return on investment ( ROI )

21. Direct Marketing Direct marketing  is a form of advertising where organizations communicate directly to customers through a variety of media including cell phone text messaging, email, websites, online adverts, database marketing, fliers, catalogue distribution, promotional letters and targeted television, newspaper and magazine advertisements as well as outdoor advertising. Among practitioners, it is also known as  direct response .

22. Common forms of direct marketing include: Brochures Catalogues Fliers Newsletters Post cards Coupons Emails Targeted online display ads Phone calls Text messages Forms of Direct Marketing

23. Channels of Direct Marketing 1. Direct selling: Direct selling is the sale of products by face-to-face contact with the customer, either by having salespeople approach potential customers in person, or through indirect means such as Tupperware parties . 2. Direct mail The term  advertising , or  direct mail , is used to refer to communications sent to potential customers or donors via the postal service and other delivery services. Direct mail is sent to customers based on criteria such as age, income, location, profession, buying pattern, etc. Direct mail includes advertising circulars, catalogues, free-trial CDs, pre-approved credit card applications, and other unsolicited merchandising invitations delivered by mail to homes and businesses. 3. Telemarketing : Another common form of direct marketing is telemarketing, in which marketers contact customers by phone. The primary benefit to businesses is increased lead generation, which helps businesses increase sales volume and customer base.

24. 4. Direct-Response Advertising: Direct-response advertising is communicating with potential buyers through television, radio, magazines, and newspapers. The prospective consumer watches, hears, or reads about the product or service and initiates a call to a toll-free number to place their order. Television, for example, offers a wide range of exposure, from a 30-second commercial to a 60-minute infomercial . 5.Kiosk Marketing: Customer order machines, versus vending machines that actually provide products, are another form of direct marketing.

25. Good direct marketing campaigns focus on promoting a specific product or service, and call on your customers to act - to receive further information, register their interest, visit your website, make a booking or a purchase. Direct marketing gives you the opportunity to promote your products and services directly to the customers who most need them. A good direct marketing campaign will: help you build relationships with new customers test the appeal of your product or service tell you which marketing approaches reach your target market provide customers with compelling content they can share with potential customers increase sales. However , direct marketing campaigns require careful planning and a clear understanding of responsible direct marketing practice. Being aware of the benefits and challenges of direct marketing will help you use direct marketing effectively. Benefits of Direct M arketing

26. Services Marketing The promotion of economic activities offered by a business to its clients. Service marketing might include the process of selling telecommunications, health treatment, financial, hospitality, car rental, air travel, and professional services .

27. The American Marketing Association defines services as - “Activities, benefits and satisfactions which are offered for sale or are provided in connection with the sale of goods.” The defining characteristics of a service are: Intangibility :  Services are intangible and do not have a physical existence. Hence services cannot be touched, held, tasted or smelt. This is most defining feature of a service and that which primarily differentiates it from a product. Also, it poses a unique challenge to those engaged in marketing a service as they need to attach tangible attributes to an otherwise intangible offering . Heterogeneity/Variability:  Given the very nature of services, each service offering is unique and cannot be exactly repeated even by the same service provider. While products can be mass produced and be homogenous the same is not true of services. Perishability :  Services cannot be stored, saved, returned or resold once they have been used. Once rendered to a customer the service is completely consumed and cannot be delivered to another customer . Inseparability/Simultaneity of production and consumption:  This refers to the fact that services are generated and consumed within the same time frame. Eg : a haircut is delivered to and consumed by a customer simultaneously unlike, say, a takeaway burger which the customer may consume even after a few hours of purchase. Moreover, it is very difficult to separate a service from the service provider. Characteristics

28. Service Marketing

29.  Product The product in service marketing mix is intangible in nature. Like physical products such as a soap or a detergent, service products cannot be measured. Tourism industry or the education industry can be an excellent example. At the same time service products are  heterogeneous,  perishable and cannot be owned . The service product thus has to be designed with care. Generally service blue printing is done to define the service product. For example – a restaurant blue print will be prepared before establishing a restaurant business. This service blue print defines exactly how the product (in this case the restaurant) is going to be.

30. Place Place in case of services determine where is the service product going to be located. The best place to open up a petrol pump is on the highway or in the city. A place where there is minimum traffic is a wrong location to start a petrol pump. Similarly a software company will be better placed in a business hub with a lot of companies nearby rather than being placed in a town or rural area.

31. Promotion Promotions have become a critical factor in the service marketing mix. Services are easy to be duplicated and hence it is generally the brand which sets a service apart from its counterpart. You will find a lot of banks and telecom companies promoting themselves rigorously . Why is that? It is because competition in this service sector is generally high and promotions is necessary to survive. Thus banks, IT companies, and dotcoms place themselves above the rest by advertising or promotions.

32. Pricing Pricing in case of services is rather more difficult than in case of products. If you were a restaurant owner, you can price people only for the food you are serving. But then who will pay for the nice ambiance you have built up for your customers? Who will pay for the band you have for music? Thus these elements have to be taken into consideration while costing. Generally service pricing involves taking into consideration labour, material cost and overhead costs. By adding a profit mark up you get your final service pricing. You can also read about pricing strategies .

33. People People is one of the elements of service marketing mix. People define a service. If you have an IT company, your software engineers define you. If you have a restaurant, your chef and service staff defines you. If you are into banking, employees in your branch and their behaviour towards customers defines you. In case of service marketing, people can make or break an organization . Thus many companies nowadays are involved into specially getting their staff trained in interpersonal skills and customer service with a focus towards customer satisfaction. In fact many companies have to undergo accreditation to show that their staff is better than the rest. Definitely a USP in case of services.

34. Process Service process is the way in which a service is delivered to the end customer. Lets take the example of two very good companies – Mcdonalds and Fedex. Both the companies thrive on their quick service and the reason they can do that is their confidence on their processes . On top of it, the demand of these services is such that they have to deliver optimally without a loss in quality. Thus the process of a service company in delivering its product is of utmost importance. It is also a critical component in the service blueprint, wherein before establishing the service, the company defines exactly what should be the process of the service product reaching the end customer.

35. Physical Evidence The last element in the service marketing mix is a very important element. As said before, services are intangible in nature. However, to create a better customer experience tangible elements are also delivered with the service. Take an example of a restaurant which has only chairs and tables and good food, or a restaurant which has ambient lighting, nice music along with good seating arrangement and this also serves good food. Which one will you prefer? The one with the nice ambience. That’s physical evidence . Several times, physical evidence is used as a differentiator in service marketing. Imagine a private hospital and a government hospital. A private hospital will have plush offices and well dressed staff. Same cannot be said for a government hospital. Thus physical evidence acts as a differentiator.

36. What is Green Marketing? Green marketing is the marketing of environmentally friendly products and services. It is becoming more popular as more people become concerned with environmental issues and decide that they want to spend their money in a way that is kinder to the planet . Green marketing can involve a number of different things, such as creating an eco-friendly product, using eco-friendly packaging, adopting sustainable business practices, or focusing marketing efforts on messages that communicate a product’s green benefits.

37. Beyond making an environmentally friendly product, business owners can do other things as part of their green marketing efforts. The following can all be part of a green marketing strategy : Using eco-friendly paper and inks for print marketing materials Skipping the printed materials altogether and option for electronic marketing Having a recycling program and responsible waste disposal practices  Using eco-friendly product packaging Using efficient packing and shipping methods Using eco-friendly power sources Taking steps to offset environmental impact Green Marketing Methods

38. Importance of Green Marketing 1. Now, people are insisting pure products – edible items, fruits, and vegetables based on organic farming. 2. Reducing use of plastics and plastic-based products. 3. Increased consumption of herbal products instead of processed products. 4. Recommending use of leaves instead of plastic pieces; jute and cloth bags instead of plastic carrying bags. 5. Increasing use of bio-fertilizers (made of agro-wastes and wormy-composed) instead of chemical fertilizers (i.e. organic farming), and minimum use of pesticides. 6. Worldwide efforts to recycle wastes of consumer and industrial products. 7. Increased use of herbal medicines, natural therapy, and Yoga. 8. Strict provisions to protect forests, flora and fauna, protection of the rivers, lakes and seas from pollutions. 9. Global restrictions on production and use of harmful weapons, atomic tests, etc. Various organizations of several countries have formulated provisions for protecting ecological balance. 10. More emphasis on social and environmental accountability of producers .

39. • Lack of credibility or trust by consumers and end-users • Confusion regarding green or sustainable product claims • Reputational risk from "misleading claims" • Liability risk from "greenwashing" under FTC Green Guides Problems In Green Marketing

40. THANK YOU