21ST CENTURY MARKETING CHALLENGES
BY : PRASANNA PERERA, MARKETING AND MANAGEMENT
CONSULTANT, CHARTERED MARKETER, CIM, U.K.
Media networks are exploding, brands are multiplying, product varieties
are growing rapidly…… all of these present challenges to marketers of
the 21st century. Marketers today face great challenges and the ability to
deal with them effectively is a must and not an option.
Let us briefly examine the changing scenario of markets and marketing
and the factors behind the scenes .
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THE NUMBER OF BRANDS HAS INCREASED TO DIZZY
HEIGHTS
Take a walk in any supermarket and you will be amazed at the sheer
number of brands exhibited.
In milk powder for example, over 15
brands, whilst in washing powder over 10 brands and toothpaste another
10 brands. The list goes on and on….. The customer is driven crazy
with these brand options and the challenge to marketers is to get their
brand loyalty levels intensified. Therefore, a greater emphasis on brand
building than ever before, is a prerequisite. Me-too brands will not stand
a chance and the only way ahead is to nurture brands that are distinctive
and special.
2. PRODUCT VARIETIES HAVE MULTIPLIED GREATLY
Take yoghurt as an example : Set yoghurt, fruit yoghurt, low fat yoghurt,
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non fat yoghurt, flavoured yoghurt……..the list goes on and on. The
consumer as a result may get confused and find it difficult to make a
clear choice. What are the reasons for so many product varieties to be
made available? It is in order to satisfy the needs of varied customer
segments and niches.
Hence by pursuing customer satisfaction
initiatives, the same customer is now being confused!
Against this backdrop, marketers would do well to access their product
portfolios in terms of sales and profits. In certain instances, offering a
limited line of product varieties may be desirable, in order to reduce the
level of confusion, amongst customers. Another aspect to note is to
launch product varieties, which are unique and having a definitive
customer preference. In ice cream, the standard varieties are Vanilla,
Chocolate and Strawberry. There are several brands already offering
these varieties.
What should a new brand offer in the ice cream
category? Maybe unique flavours which the main stream players do not
offer. (Juggery ice cream, Mixed fruit ice cream Banana ice cream etc.,)
3. PRODUCT LIFE CYCLE’S (PLC’S) HAVE SHORTENED
The life span of products have declined dramatically over the years,
mainly as a result of technological developments. In addition, market
factors such as changing consumer needs and competitor product
introductions have also contributed.
The shift from brand management to category management has also
resulted in a range of new products being developed to dominate
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categories, by catering to diverse market segments and niches. Hence,
new products are introduced rapidly and the life cycles of existing
products are willingly aborted or naturally terminated.
Marketers have to develop new products at a much faster pace and
capitalise on existing product opportunities within a shorter time frame.
4. IT IS MORE DIFFICULT TO OBTAIN SPACE IN THE CONSUMERS
MIND
The concept of “brand positioning” is all about positioning your brand in a
distinctive way, in your target consumers mind.
Unfortunately, the
consumers mind has only limited capacity and this capacity is already
taken up by brands that are world class. The result is that consumers
have become tremendously selective regarding products, brands and
advertising. They are most willing to ignore most advertising without any
fear of losing anything. In other words, consumers have learned to look
without seeing, to hear without listening.
The challenge to marketers is not to shelve the concept of positioning,
but rather to fight against the “closed” consumer mind which is at full
capacity! The way to do this, is to offer the consumer products/brands
that are unique, supported by imaginative and really creative advertising.
Me-too products/brands should not be launched, unless there is good
reason to do so.
The consumer will simply ignore such brands and
advertising for same.
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5. MARKETS ARE BECOMING HYPER-FRAGMENTED
Marketers in their pursuit of differentiation, have segmented, subsegmented and further niched markets and there are no further
segments available in most markets. The result is that it is becoming
increasingly difficult to achieve incremental sales by launching new
products/brands. Even if further niches are available, they will probably
be of marginal value in terms of sales and profits.
The message to marketers is clear.
In a hyper-fragmented market,
segmenting markets in the traditional way will not suffice. The need is
for creative segmentation, which in turn will be a competitive advantage.
Further opportunities for mass customisation should not be ignored.
Digital technology is increasingly facilitating customised product and
service offerings.
6.
ADVERTISING SATURATION IS SIMPLY PHENOMENAL AND
MEDIA FRAGMENTATION IS GROWING
Consumer media habits are so diverse, that several mediums need to be
targeted to achieve the levels of brand awareness and recall desired.
This naturally leads to higher communication budgets and also to waste
in advertising spend.
In Sri Lanka today consumers have several TV stations, Radio stations
and newspapers to select from. The number of advertisements exposed
to the Sri Lankan consumer is quite astonishing. What do consumers do
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as a result? They simply learn to switch off and ignore advertisements
that are run-of-the-mill and irrelevant. In other words, the consumer has
learnt to watch TV, without being exposed to commercials!
(In their
mind).
What does all this mean to marketers? Traditional advertising methods
will not drive markets and more radical/creative approaches will be
required to capture consumer imagination and interest . This may mean
embracing new mediums such as interactive TV, internet and mobile
communication.
Ways of cutting through the clutter will be required.
Direct Marketing could be a solution but once again creativity and
targeting will be key.
Creativity
in advertising, will be a must and
marketers must be more open to radical creative executions proposed by
advertising and PR Agencies.
7. DIGITAL TECHNOLOGY HAS REVOLUTIONIZED MANY MARKETS
Whether marketers like it or not, the internet and other related mediums
have changed the destiny of most markets for ever. Newer and more
technologically advanced products are appearing much faster, often at
speeds that are difficult to comprehend by the average consumer.
Marketers must learn to harness digital technology for their own benefit,
by becoming techno-savvy.
Not only should technology be used to
develop new products, it should be utilised for all aspects of marketing.
In this brief article, I have attempted to highlight some key challenges
that marketers would have to face and offered some advise on how to
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deal with them. Traditional marketing thinking and methods will need to
be carefully evaluated and bold decisions taken to change, if results are
to be achieved in a challenging era. The traditional marketing concepts
and principles are still valid but need to be revisited with modern thinking
and business acumen. Above all, willingness to challenge the existing
“status quo” is important.
“We are all potentially free to know, go, do and be whoever we want
to be”
(Ridderstrale and Nordstrom)
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