Unit- 5, Pricing; Emerging concepts in marketing

Students will be able to know about-
Recent techniques and strategies in marketing, Rural marketing, Industrial marketing, Global marketing, consumerism, vertical and horizontal marketing

1. UNIT-V; Emerging concepts in marketing Pharma Marketing Management By: Vishal Singh (Assistant Professor, KIPS Kanpur)

2. Objective Students will get the knowledge of the following: Vertical and Horizontal marketing Rural Marketing Consumerism Industrial Marketing Global Marketing

3. Vertical Marketing Vertical marketing involves targeting a specific industry or market segment with specialized products or services. This approach focuses on understanding the unique needs and preferences of a particular vertical and tailoring marketing strategies to meet those requirements effectively. By focusing on a vertical, companies can develop specialized solutions that address the unique challenges and requirements of that industry, ultimately gaining a competitive advantage.

4. Vertical Marketing For example, let's consider the software industry. Within this vertical, there are various segments such as healthcare, finance, manufacturing, and retail. Each of these segments has distinct needs and regulations. A company specializing in healthcare software might develop solutions tailored to electronic health records (EHR), patient management, and telemedicine, while a company targeting the finance sector might focus on risk management, compliance, and trading platforms.

5. Vertical Marketing: Objectives 1. Efficient Distribution: By streamlining distribution channels and eliminating redundancies, vertical marketing aims to reduce costs, minimize inventory levels, and improve overall supply chain efficiency. 2. Market Expansion: Collaborating with distributors, retailers, and other intermediaries allows businesses to reach new markets, target diverse customer segments, and penetrate geographical areas that may have been previously inaccessible.

6. Vertical Marketing: Objectives 3. Enhanced Customer Service: Vertical marketing enables businesses to provide enhanced customer service and support throughout the entire buying process by aligning with intermediaries who have direct contact with customers. 4. Brand Consistency: By working closely with intermediaries, businesses can ensure that their brand message, values, and positioning remain consistent, regardless of where and how customers interact with their products or services. 5. Supply Chain Optimization: By fostering collaboration and coordination between different entities, businesses can streamline processes, reduce lead times, and improve overall supply chain performance.

7. Vertical Marketing: advantages Cost Efficiency: Market Reach Improved Customer Experience Greater Control Faster Time-to-Market

8. Horizontal Marketing Horizontal marketing involves collaboration between businesses that offer similar or complementary products or services but do not directly compete with each other. This collaboration allows companies to leverage each other's strengths and resources to reach a broader audience or achieve mutual goals. Horizontal marketing partnerships are mutually beneficial, allowing participating companies to leverage each other's strengths, resources, and customer bases to achieve common objectives. By collaborating with complementary businesses, companies can access new markets, demographics, or geographic regions that may have been difficult to penetrate independently. Sharing marketing expenses, distribution channels, or research and development costs can lead to significant cost savings for all parties involved.

9. Horizontal Marketing: objectives Market Expansion: One of the primary objectives of horizontal marketing is to expand market reach and penetration by tapping into new customer segments or geographic markets. Collaborating with other businesses allows companies to access each other's customer bases and leverage synergies to reach a wider audience. Product Differentiation: by offering bundled solutions, value-added services, or unique selling propositions. By partnering with complementary businesses, companies can create more compelling offerings that meet the diverse needs and preferences of customers. Cost Efficiency: Horizontal marketing initiatives can lead to cost savings by sharing marketing expenses, leveraging economies of scale, and pooling resources for joint promotional activities. By spreading costs across multiple partners, companies can achieve greater efficiency and maximize return on investment.

10. Horizontal Marketing: objectives Brand Awareness and Visibility: Collaborative marketing efforts enhance brand awareness and visibility by leveraging the combined marketing reach and resources of participating companies. Co-branded campaigns, joint events, and cross-promotional activities help increase brand exposure and strengthen brand recall among target audiences. Competitive Advantage: Horizontal marketing allows companies to gain a competitive advantage by aligning with strategic partners, leveraging complementary strengths, and offering comprehensive solutions that competitors may find challenging to replicate. By working together, companies can enhance their market position and outperform rivals in the industry.

11. Horizontal Marketing: advantages Increased Market Share: by leveraging the combined strengths and resources of multiple partners. Enhanced Customer Value: by offering integrated solutions, personalized experiences, and enhanced service offerings that meet their evolving needs and preferences. Synergy and Innovation: by encouraging collaboration, knowledge sharing, and cross-pollination of ideas among partners. By working together, companies can leverage each other's expertise, capabilities, and insights to drive innovation and create new opportunities for growth. Risk Mitigation: Collaborative marketing initiatives help mitigate risks associated with market volatility, changing consumer behavior, or competitive pressures by diversifying revenue streams and sharing market insights and intelligence among partners. Cost Savings: by sharing marketing expenses, leveraging economies of scale, and pooling resources for joint promotional activities.

12. Rur al Marketing Rural marketing refers to the process of promoting and selling products and services in rural areas, typically characterized by low population density, agricultural-based economies, and limited access to modern infrastructure and amenities. It involves understanding the unique needs, preferences, and challenges of rural consumers and tailoring marketing strategies accordingly.

13. Characteristics of Rural Markets Low Population Density: Rural areas often have lower population densities compared to urban centers, which can pose challenges in reaching a dispersed consumer base. Agricultural Economy: Many rural communities rely on agriculture as the primary source of income, influencing their purchasing power and consumption patterns. Limited Infrastructure: Rural areas may have limited access to modern infrastructure such as paved roads, electricity, telecommunications, and retail outlets, which can affect distribution and communication channels. Unique Socio-Cultural Factors: Rural consumers may have distinct socio-cultural values, traditions, and lifestyles that influence their buying behavior and product preferences.

14. Strategies of rural marketing Localized Approach: Tailor marketing messages, product offerings, and distribution channels to suit the specific needs and preferences of rural consumers. This may involve offering smaller pack sizes, bundling products, or providing after-sales service in local languages. Personalized Engagement: Build relationships with rural consumers through personalized interactions, community engagement initiatives, and grassroots marketing activities. This could include organizing local events, sponsoring community programs, or partnering with local influencers and community leaders. Affordability and Accessibility: Offer products and services at affordable price points and ensure accessibility through an extensive distribution network, including rural retail outlets, mobile vans, and door-to-door sales.

15. Strategies of rural marketing Education and Awareness: Educate rural consumers about the benefits and usage of products through targeted communication campaigns, demonstrations, and experiential marketing activities. Addressing misconceptions and building trust are crucial in influencing purchase decisions. Technology Adoption: Leverage technology, such as mobile phones and internet connectivity, to reach rural consumers and provide access to information, e-commerce platforms, and digital payment solutions. Mobile marketing and social media can also be effective channels for engaging with rural audiences.

16. Example s of rural marketing: initiatives HUL's Project Shakti: Hindustan Unilever Limited (HUL) implemented Project Shakti in India, empowering rural women as direct-to-home sales agents for its products. This initiative not only increased market penetration in rural areas but also provided livelihood opportunities for women. Amul's Village Level Entrepreneur (VLE) Model: Amul, India's largest dairy cooperative, established a network of Village Level Entrepreneurs (VLEs) to distribute its dairy products in remote rural areas. This decentralized distribution model has helped Amul reach even the most inaccessible rural markets. M-Pesa in Kenya: Safaricom's M-Pesa mobile money service revolutionized financial inclusion in rural Kenya by enabling users to transfer money, pay bills, and access financial services through their mobile phones. M-Pesa's success demonstrates the potential of technology-driven solutions in rural marketing.

17. Consumerism Consumerism refers to the ideology that encourages the acquisition of goods and services in ever-increasing amounts, often equating consumption with personal well-being and societal progress. It is driven by a culture of materialism, where individuals prioritize the purchase and ownership of products as a means of fulfilling needs, desires, and aspirations.

18. Fundamentals of Consumerism Emphasis on Consumption: Consumerism promotes the idea that happiness and fulfillment are derived from the acquisition and consumption of material possessions, leading to a culture of excess and overconsumption. Advertising and Marketing: Consumerism is fueled by advertising and marketing strategies that create and perpetuate desires for products and services. Advertisements often portray consumption as a pathway to happiness, success, and social status, influencing consumer behavior and purchasing decisions. Disposable Culture: Consumerism contributes to a culture of disposability, where products are quickly discarded and replaced with newer versions, leading to environmental concerns such as waste generation and resource depletion.

19. Fundamentals of Consumerism Debt and Financial Pressures: The pursuit of material possessions can lead to excessive spending, debt accumulation, and financial insecurity for individuals and households. Consumerism encourages conspicuous consumption and status-seeking behaviors, often at the expense of long-term financial well-being. Impact on Society and the Environment: Consumerism has significant social and environmental consequences, including resource depletion, pollution, climate change, and social inequality. The pursuit of endless consumption can strain natural resources and exacerbate socioeconomic disparities.

20. Critiques of Consumerism: good/bad Materialism Over Well-being: Critics argue that consumerism prioritizes material possessions over genuine well-being and fulfillment, leading to shallow and superficial values that neglect more meaningful aspects of life, such as relationships, experiences, and personal growth. Environmental Degradation: The relentless pursuit of economic growth and consumption has adverse environmental impacts, including deforestation, habitat destruction, pollution, and climate change. Consumerism contributes to unsustainable patterns of production and consumption that harm ecosystems and threaten biodiversity.

21. Critiques of Consumerism: good/bad Social Inequality: Consumerism perpetuates social inequality by promoting consumption as a marker of status and success. It exacerbates disparities between affluent and marginalized communities, as access to resources and opportunities is unevenly distributed based on socioeconomic status. Cultural Homogenization: Global consumer culture can lead to cultural homogenization, where diverse cultural identities and traditions are overshadowed by standardized consumer preferences and mass-produced goods. This can erode cultural diversity and local distinctiveness.

22. Consumerism: alternatives Sustainable Consumption: Emphasizing sustainable consumption practices, such as reducing waste, recycling, buying durable goods, and supporting ethical and eco-friendly brands, can mitigate the negative environmental and social impacts of consumerism. Minimalism: Minimalism advocates for living with less, focusing on quality over quantity, and prioritizing experiences and relationships over material possessions. It encourages intentional consumption and decluttering to achieve greater personal fulfillment and reduce environmental footprint. Community and Sharing Economies: Community-based initiatives, such as sharing economies, cooperatives, and local exchange systems, promote collaborative consumption, resource sharing, and community resilience, fostering social connections and reducing reliance on consumerism.

23. Industrial Marketing Industrial marketing, also known as business-to-business (B2B) marketing, involves the sale of goods and services from one business to another for use in manufacturing, production, or operations. Unlike consumer marketing, which targets individual consumers, industrial marketing focuses on meeting the needs of organizations, such as businesses, government agencies, and non-profit organizations.

24. Industrial Marketing: fundamentals Longer Sales Cycles: Industrial sales typically involve complex buying processes and longer sales cycles compared to consumer sales. Decisions are often made by a committee or team within the purchasing organization, involving multiple stakeholders and extensive evaluations. Relationship-Based: Industrial marketing emphasizes building long-term relationships with customers based on trust, reliability, and value-added services. Suppliers often work closely with customers to understand their unique requirements and provide customized solutions. Technical Expertise: Industrial products and services are often complex and specialized, requiring a high level of technical expertise and knowledge. Suppliers must demonstrate their understanding of customers' technical specifications, applications, and industry requirements to effectively meet their needs.

25. Industrial Marketing : fundamentals Customization and Solution Selling: Industrial buyers often seek customized solutions tailored to their specific requirements and challenges. Suppliers must offer flexible products, customization options, and value-added services to address customers' unique needs and differentiate themselves from competitors. After-Sales Support: Industrial customers place a high value on after-sales support, including technical assistance, training, maintenance, and troubleshooting. Suppliers must provide reliable post-purchase support to ensure the successful implementation and utilization of their products and services.

26. Industrial Marketing: objectives & Importance Segmentation and Targeting: Identify and segment industrial markets based on factors such as industry verticals, geographic locations, company size, and purchasing behavior. Tailor marketing strategies and offerings to address the specific needs and preferences of target segments. Value Proposition Development: Develop a compelling value proposition that highlights the unique benefits, features, and value-added services offered by your products or services. Clearly communicate how your offerings address customers' pain points, improve efficiency, reduce costs, or enhance productivity. Relationship Building: Invest in building strong relationships with key decision-makers and influencers within target organizations. Engage in consultative selling, provide expert advice and support, and demonstrate a commitment to meeting customers' long-term needs and objectives.

27. Industrial Marketing: objectives & Importance Content Marketing and Thought Leadership: Establish your company as a thought leader and trusted advisor within your industry by sharing valuable insights, expertise, and best practices through content marketing channels such as blogs, whitepapers, webinars, and case studies. Channel Partnerships: Collaborate with channel partners, distributors, and resellers to extend your reach and access new markets. Develop strong partnerships based on mutual trust, transparency, and shared goals to effectively distribute and promote your products or services.

28. Industrial Marketing: Examples Technical Seminars and Workshops: Hosting technical seminars, workshops, and training sessions to educate customers about new technologies, products, and industry trends. Customized Solutions: Offering customized solutions and engineering services to address specific challenges or requirements faced by industrial customers. Supply Chain Integration: Partnering with customers to integrate supply chains, optimize inventory management, and streamline procurement processes. Value-Added Services: Providing value-added services such as installation, commissioning, maintenance, and technical support to enhance the overall customer experience. Online Platforms: Developing online platforms and digital tools to facilitate product selection, configuration, ordering, and customer support.

29. Global Marketing Global marketing refers to the process of promoting and selling products or services on a worldwide scale, transcending national boundaries and targeting diverse international markets. It involves developing marketing strategies and campaigns that take into account the cultural, economic, political, and legal differences across countries and regions. Global marketing is the strategic approach employed by companies to navigate the complexities of operating in diverse cultural, economic, and regulatory environments around the globe.

30. Global Marketing: fundamentals Market Research: Understanding the unique characteristics, preferences, and behaviors of consumers in different countries is essential for effective global marketing. Conducting thorough market research helps identify market opportunities, assess competitive landscapes, and tailor marketing strategies to target international audiences. Cultural Sensitivity: Global marketers must be sensitive to cultural nuances, norms, values, and taboos to develop culturally relevant and resonant marketing messages and campaigns that resonate with diverse audiences. Adaptation vs. Standardization: Global marketers face the challenge of balancing the need for standardized branding and messaging across markets with the necessity of adapting strategies to local preferences and market conditions. Some elements of marketing, such as brand identity and core values, may remain consistent globally, while others, such as product features, pricing, and promotional tactics, may require customization.

31. Global Marketing : fundamentals Distribution Channels: Developing efficient and cost-effective distribution channels is crucial for reaching international customers. Global marketers must navigate logistical challenges, regulatory requirements, and cultural norms to establish distribution networks that ensure timely delivery and availability of products or services in target markets. Legal and Regulatory Compliance: Operating in multiple countries requires compliance with a diverse array of laws, regulations, and trade policies. Global marketers must stay abreast of legal and regulatory requirements governing product labeling, advertising, taxation, intellectual property rights, and import-export procedures to avoid legal pitfalls and maintain ethical standards

32. Global Marketing: benefits Market Expansion: Global marketing enables businesses to tap into new markets, diversify revenue streams, and reduce dependence on domestic markets, thereby mitigating risks associated with economic downturns or fluctuations in local demand. Economies of Scale: Expanding operations globally can lead to economies of scale in production, procurement, and distribution, resulting in cost efficiencies and improved competitiveness. Brand Visibility and Recognition: Establishing a global presence enhances brand visibility, recognition, and credibility, fostering trust and loyalty among international consumers and stakeholders. Innovation and Knowledge Sharing: Operating in diverse international markets facilitates knowledge sharing, cross-cultural collaboration, and innovation, as companies gain exposure to new ideas, technologies, and business practices.

33. Global Marketing Cultural Differences: Cultural diversity poses challenges in developing marketing strategies that resonate with diverse audiences while avoiding cultural misinterpretations or offensive messaging. Logistical Complexity: Managing logistics, supply chains, and distribution networks across multiple countries requires overcoming logistical challenges, navigating trade barriers, and ensuring compliance with import-export regulations. Political and Economic Instability: Political instability, economic volatility, and currency fluctuations in foreign markets can impact business operations, profitability, and investment decisions. Legal and Regulatory Hurdles: Adhering to complex and evolving legal and regulatory frameworks in different countries requires dedicated resources and expertise to ensure compliance and mitigate legal risks.

34. Thank You