Evolution of Marketing Strategies

Hi, good evening, depending on the time that you are watching this video, it might be a good morning, good afternoon or a good evening. So my name is Gaurav and I'm trying to cover in this video today about how marketing is evolving. There is a lot of discussions around whether companies whether new firms should adopt digital marketing. or how this marketing digital marketing can help them a lot of speculations are there but yes what the research suggests what great authors have spoken about the changing landscape of marketing we'll be taking a look at that this video is probably for business owners for agency owners for students who want to know about the changing ecosystem of marketing so without further ado let us get directly into our presentation so fully the screen is visible uh this entire topic i've divided into three parts where we'll be looking at the marketing mix that existed uh decades ago and yeah there it is still in use today as well and then how this marketing mix is changing converting from the four ps of marketing mix to four c's and uh why this why there was a need for this change so that is again something of our interest so moving from four ps to four c is traditional to modern that is what we are looking at it this time so uh let us first uh begin with the traditional marketing mix uh when there is a product there is definitely a target market because a product cannot be of use to each and every one or a product is never developed with the whole intention of making it usable to each and every one or available to each and every one so when there is a product developed it is for a set of market in which it will be launched or it will be of most use now marketing mix as such is a tool that marketers mostly use to decide where or what the marketing objectives needs to be set and how to attain them. So traditionally, if you look at it helps us identify what to offer and how to offer. These are the two main questions that it helps us answer. What is that we are trying to offer? And how is that we are going to offer it to the end users? What more it's it talks about, like I already spoke about a it is about setting and planning marketing objectives. And it is also a tool to attend marketing objectives. now if we look or dive deep into it uh basically it is about the four ps and this model is also most of the time termed as the producer oriented model we'll try to understand what is a producer oriented model in a little while if we look at the history of four ps it was first coined by jerome mccarthy in 1960 60 and he's again a marketing professor and an author so He came up with these four things product price place and promotion. So when we are trying to answer what to offer it is the product what we are trying to offer again the second component of what to offer is at what price we are going to offer them. Then comes the next two how to offer is where we want to offer it how in which place and how it is going to be promoted to people or how is the message going to reach to the target audience. So there's a four piece that were used in the traditional model now when we talk about a product it is basically talking about what a customer needs and want as simple as that what the customer is needing at this moment so that is what the product must try to solve and where do we get this idea what the customer is in need is conducting marketing research marketing research it's a time consuming process it's a it includes a lot of cost and many times the marketing research outcome may not be by the time you would design and develop the product based on the marketing research uh in the today's dynamic world it is possible that the product that you bring up is either outdated or the needs have changed so that's one challenge that i have rightfully pointed out which i was about to cover in the challenge part now what it includes it includes variety what are the different variety let's say if it is a luxe so so what are the different fragrance of luxe soap that we want to launch it about any Take example and you will be easily able to relate it. We talk about automobile, you have different variety. You have models like E2, E4, E6, E8. What's the quality of the product that the customer is wanting? What design has to be there in the product? For example, it should have two jacks, one jack in case of a smartphone. What the packaging should look like? What are the other services that we are going to offer? like many times if you are buying a white code they will say five years warranty on motor something like that what are the other features that this product has and what is the brand name so these are few things that you will be talking about when you are designing or when we are talking about product what to offer now when we talk about price most firms take or take these three approach there's a cost based approach a competition based approach and the customer value based approach so what are these three things cost based approach is quite simple like how much cost you are incurring in manufacturing of the product marketing of the product and then you add a margin to it dealer margin distributor margin your company's margin and then you come up with the price so that becomes a cost based uh pricing model competition based pricing model simple what are the different price point at which different competitors are offering the same product in your market and then you probably place your position your product in a price band which will be giving the highest value to your consumer now customer value based pricing model is something for the first time in the entire 4p model this is where the customers input are primarily taken so how much is the customer willing to pay for the product that you have developed or the service that you are trying to offer so in the entire process this is once in the marketing research and then this is the only place where the customer is directly interacting or giving his input of designing the pricing of the product now what it all includes is it includes the list price the mrp the discounts the payment period and the credit terms many times you will find it on the online platform or maybe when you again white buy something like a car or a home so there is a credit term you have a emi option these all things so when you talk about price you need to consider these points now uh these two things we try to identify what to offer now moving ahead how to offer so place where definitely place where you want to offer it and it should be primarily convenient and easily available to your users and users there's a primary motive of deciding at which place the product must be available it includes channels through which channels this product will be available what will be the coverage how it will be assorted assortments can be can also be the type of stacking that they do while transferring or shipping the product from one place to another the locations at which it will be delivered the inventory how much inventory they should maintain or the transportation how these things need to be transported whether they need a cold chamber to be transported or it's a liquid form how it will be transported that there's a question that you are trying to answer in this phase and logistics whether it will be taken through air through water to land how it is going to be delivered so that's one thing moving ahead uh when we talk about promotions uh in this place we are trying to communicate all these things all these things that we have identified in a very beautiful manner in a very a sophisticated manner that our customer feel attracted to the offering so we need to communicate the product about the product what necessarily we need to communicate are the unique selling propositions or the values that the customer can derive the price the place the sales promotion advertising personal selling if there is any public relations newspaper ads those are all things these all things comes under promotion so So these were the traditional four Ps that help firm identify how and what to offer. Now the challenge with this model was the first challenge that I told you was here by the time the marketing research and the outcome is there at your hand and when you design this product and bring up to the market, there's a huge gap. Since this model is not dynamic, this model is very old fashioned. given the type of information bombardment and the type of information or you see the changing requirement of customer the speed has increased this model doesn't try and find itself fitting the second thing is the customer is involved at just two places mostly here in the marketing research part and here when a firm decides to go for a customer value based pricing model so only these two places mostly the customer is involved these were the primary two challenges and as i already told you here is uh mostly told us or called as producer oriented model so it is focuses more on sellers view and not on the bias view not agile less dynamic so it's self-explanatory these models are not agile not dynamic it is quite old-fashioned now uh recently in marketing 4.0 a book written by philip kotler and two of his authors co-authors co-authors uh hermavan and van in this book they came up with the or they replaced the four C four P's with four C's. Now when we talk about product, this entire thing was primarily done at the producer end. But here we are talking about co creation was the difference, the customer is involved in the creation process or the designing of the product from the very initial stage from the starting of the product. so the product is developed in discussion with the consumer it is rapidly prototyped the errors are reduced and this this model has certain benefits but the benefit is that so solution or value not the product that is what a customer is wanting at this time and it is exactly what is happening when the customer is involved in the initial stages of product development Now new product development strategy confirms get ideas of what newer products or what next line of product that they can launch. So that's what they can understand when they frequently talk to their end users. Improve success rate of the new product launches because it is just they have spoken with the consumers they are repeatedly reiterating it they are re-modifying it they are prototyping it so the success rate becomes higher. They are minimizing risk and maximizing success rate. Customizing personalized products. So you get an option to customize and personalize the product and offerings according to your need. Like in Apple, in case of Apple, you have your name engraved in some of the products like that. In case of Dell, you can customize the entire product online and then they will ship it to your place. So that's one thing. So co-creation, product development completely changed. the way it was developed is completely changed it is now co-creation model now currency uh think about how amazon flipkart and these all marketplaces they charge you there's no fixed pricing let's suppose you are a frequent user of amazon and you are getting a price of a book let's say of 249 rupees now your friend one of your friend has just opened an amazon account he might be getting uh the same book at 219 rupees so it's very dynamic why is that because they want him to onboard have it have that experience of buying it online for the first time so give give them a little bit of more privilege and let them have the opportunity to buy so that's the reason and many times your your behavior online has been tracked most of the times it is tracked and then the pricing is decided uh let's say we have seen many times when an example has you are trying to book over to an Apple device and then over to one second or you are booking it through an Android device or on the other hand you are booking it through your Apple device so over will have a different pricing for the same distance that's dynamic pricing so in traditional mode what was happening when you decide on a price and you want to change the price of the product. it is very difficult is a is a process in which many things are involved for example you have to change the packaging you change the pricing on the package uh many times customers are very sensitive about those changes so these all things need to be considered but today with the dynamic world with the proliferation of internet the customer also wants something really in this form now when we talk about communal activation so the biggest example i will be citing here is of all the products that you see today around is like you talk about oyo you talk about uber you talk about ola hola these are all appear to be your activation means the company doesn't own anything is just people sharing it with people so peer-to-peer this model has come up having a cross-channel presence now it is not only possible that you set up a store and you sit back that people will come and you will have sales now you need to be present on multiple channels you need to present online on different channels like facebook twitters linkedin instagram youtube wherever possible so you need to have you need to have your website so you need to have an omni challenge or cross-channel presence so examples can be i can think about example like uh when you do not get a proper service you go into it on the twitter and you immediately get your service queries resolved so that is how things have been evolving so i had already given you an example of airbnb uber ola youtube then these brands they own nothing but it's just people to people now a classical example in in context if i have to give you you have uh companies like royal enfield and thar they are also promoting this communal activation type of thing because they focus more on building communities around our royal enfield lovers and thar lovers calling them for different drives events and a thrilling event adventure event when we talk about thar and long drives on when we talk about royal enfield so try to identify if your business can have a have such kind of uh communal activation or a community kind of thing that you can build because then the word of mouth will spread more fast faster and you can expect numbers sales definitely and then one more example is of instant delivery and instant access you can talk about swiggy and zomato when it is when the things need to be shipped to you at a very short period of time it is just the platform that becomes an uh what you say a facilitator on one side there are hotels and restaurants on the other side there is customer and they just use the platform and making instant delivery and instant access possible so try to enter if your business uh has something like this possible now conversation so communal activation was uh a replacement of place currency was a replacement of price co-creation was a replacement of product now the last part is conversation or promotion now cost when how often when you get advertisements on facebook instagram twitter whenever you open a mobile how often you feel like buying it you don't feel like buying it because most of the companies or most of the smaller brands they what they do is they just want you to make a purchase so they're pitch is always about sales sales sales now but that thing has changed you need to start focusing on creating content that is educating your consumer rather than asking about sales every time right so offer it helps in offering evaluation previously what was happening the promotion was one-sided the consumer cannot interact with those promotions they cannot give feedback to those promotions but uh recently what has happened with web 2.0 what has happened you can instantly give your feedback to the advertisement you can comment you can dislike so these all things are there now so it has enabled two-way communication and like i already told you it must be educational and not promotional as always and take an example of tripadvisor here you will clearly understand because the traveling travelers the people those who love visiting places they will be posting reviews on TripAdvisor and that community of travelers will be discussing more about where to visit how to take a route which route to take how to take which transportation to take and where to enjoy these all things so the conversation now is again very dynamic and multiple platforms are there where they do the conversation it is not one way it is a two-way so i hope i have made you clear how things have been changing from four ps to four c's in my this effort and by the way we are about to close the video before closing we are a consulting company marketing consulting company and if you want any type of consulting services want to understand whether a new business model that you are trying to embark on is profitable or whether you have a business and you want to understand how online marketing and advertising can help you improve sales uh you can connect us our contact detail is so and so eight to nine double seven double eight double zero 79937342453 book a free consultation will be there for you 10-15 minutes of call and let us understand each other let us understand your business and see if we can help you out signing off Gaurav Kumar take care I hope this has brought some value and if yes give up a give us a thumbs up a comment so bye bye take care and see you soon

or how this marketing digital marketing can help them a lot of speculations are there but yes what the research suggests what great authors have spoken about the changing landscape of marketing we'll be taking a look at that this video is probably for business owners for agency owners for students who want to know about the changing ecosystem of marketing so without further ado let us get directly into our presentation so fully the screen is visible uh this entire topic i've divided into three parts where we'll be looking at the marketing mix that existed uh decades ago and yeah there it is still in use today as well and then how this marketing mix is changing converting from the four ps of marketing mix to four c's and uh why this why there was a need for this change so that is again something of our interest so moving from four ps to four c is traditional to modern that is what we are looking at it this time so uh let us first uh begin with the traditional marketing mix uh when there is a product there is definitely a target market because a product cannot be of use to each and every one or a product is never developed with the whole intention of making it usable to each and every one or available to each and every one so when there is a product developed it is for a set of market in which it will be launched or it will be of most use now marketing mix as such is a tool that marketers mostly use to decide where or what the marketing objectives needs to be set and how to attain them. So traditionally, if you look at it helps us identify what to offer and how to offer. These are the two main questions that it helps us answer.

What is that we are trying to offer? And how is that we are going to offer it to the end users? What more it's it talks about, like I already spoke about a it is about setting and planning marketing objectives.

And it is also a tool to attend marketing objectives. now if we look or dive deep into it uh basically it is about the four ps and this model is also most of the time termed as the producer oriented model we'll try to understand what is a producer oriented model in a little while if we look at the history of four ps it was first coined by jerome mccarthy in 1960 60 and he's again a marketing professor and an author so He came up with these four things product price place and promotion. So when we are trying to answer what to offer it is the product what we are trying to offer again the second component of what to offer is at what price we are going to offer them. Then comes the next two how to offer is where we want to offer it how in which place and how it is going to be promoted to people or how is the message going to reach to the target audience. So there's a four piece that were used in the traditional model now when we talk about a product it is basically talking about what a customer needs and want as simple as that what the customer is needing at this moment so that is what the product must try to solve and where do we get this idea what the customer is in need is conducting marketing research marketing research it's a time consuming process it's a it includes a lot of cost and many times the marketing research outcome may not be by the time you would design and develop the product based on the marketing research uh in the today's dynamic world it is possible that the product that you bring up is either outdated or the needs have changed so that's one challenge that i have rightfully pointed out which i was about to cover in the challenge part now what it includes it includes variety what are the different variety let's say if it is a luxe so so what are the different fragrance of luxe soap that we want to launch it about any Take example and you will be easily able to relate it.

We talk about automobile, you have different variety. You have models like E2, E4, E6, E8. What's the quality of the product that the customer is wanting?

What design has to be there in the product? For example, it should have two jacks, one jack in case of a smartphone. What the packaging should look like? What are the other services that we are going to offer? like many times if you are buying a white code they will say five years warranty on motor something like that what are the other features that this product has and what is the brand name so these are few things that you will be talking about when you are designing or when we are talking about product what to offer now when we talk about price most firms take or take these three approach there's a cost based approach a competition based approach and the customer value based approach so what are these three things cost based approach is quite simple like how much cost you are incurring in manufacturing of the product marketing of the product and then you add a margin to it dealer margin distributor margin your company's margin and then you come up with the price so that becomes a cost based uh pricing model competition based pricing model simple what are the different price point at which different competitors are offering the same product in your market and then you probably place your position your product in a price band which will be giving the highest value to your consumer now customer value based pricing model is something for the first time in the entire 4p model this is where the customers input are primarily taken so how much is the customer willing to pay for the product that you have developed or the service that you are trying to offer so in the entire process this is once in the marketing research and then this is the only place where the customer is directly interacting or giving his input of designing the pricing of the product now what it all includes is it includes the list price the mrp the discounts the payment period and the credit terms many times you will find it on the online platform or maybe when you again white buy something like a car or a home so there is a credit term you have a emi option these all things so when you talk about price you need to consider these points now uh these two things we try to identify what to offer now moving ahead how to offer so place where definitely place where you want to offer it and it should be primarily convenient and easily available to your users and users there's a primary motive of deciding at which place the product must be available it includes channels through which channels this product will be available what will be the coverage how it will be assorted assortments can be can also be the type of stacking that they do while transferring or shipping the product from one place to another the locations at which it will be delivered the inventory how much inventory they should maintain or the transportation how these things need to be transported whether they need a cold chamber to be transported or it's a liquid form how it will be transported that there's a question that you are trying to answer in this phase and logistics whether it will be taken through air through water to land how it is going to be delivered so that's one thing moving ahead uh when we talk about promotions uh in this place we are trying to communicate all these things all these things that we have identified in a very beautiful manner in a very a sophisticated manner that our customer feel attracted to the offering so we need to communicate the product about the product what necessarily we need to communicate are the unique selling propositions or the values that the customer can derive the price the place the sales promotion advertising personal selling if there is any public relations newspaper ads those are all things these all things comes under promotion so So these were the traditional four Ps that help firm identify how and what to offer.

Now the challenge with this model was the first challenge that I told you was here by the time the marketing research and the outcome is there at your hand and when you design this product and bring up to the market, there's a huge gap. Since this model is not dynamic, this model is very old fashioned. given the type of information bombardment and the type of information or you see the changing requirement of customer the speed has increased this model doesn't try and find itself fitting the second thing is the customer is involved at just two places mostly here in the marketing research part and here when a firm decides to go for a customer value based pricing model so only these two places mostly the customer is involved these were the primary two challenges and as i already told you here is uh mostly told us or called as producer oriented model so it is focuses more on sellers view and not on the bias view not agile less dynamic so it's self-explanatory these models are not agile not dynamic it is quite old-fashioned now uh recently in marketing 4.0 a book written by philip kotler and two of his authors co-authors co-authors uh hermavan and van in this book they came up with the or they replaced the four C four P's with four C's. Now when we talk about product, this entire thing was primarily done at the producer end. But here we are talking about co creation was the difference, the customer is involved in the creation process or the designing of the product from the very initial stage from the starting of the product.

so the product is developed in discussion with the consumer it is rapidly prototyped the errors are reduced and this this model has certain benefits but the benefit is that so solution or value not the product that is what a customer is wanting at this time and it is exactly what is happening when the customer is involved in the initial stages of product development Now new product development strategy confirms get ideas of what newer products or what next line of product that they can launch. So that's what they can understand when they frequently talk to their end users. Improve success rate of the new product launches because it is just they have spoken with the consumers they are repeatedly reiterating it they are re-modifying it they are prototyping it so the success rate becomes higher. They are minimizing risk and maximizing success rate.

Customizing personalized products. So you get an option to customize and personalize the product and offerings according to your need. Like in Apple, in case of Apple, you have your name engraved in some of the products like that. In case of Dell, you can customize the entire product online and then they will ship it to your place. So that's one thing.

So co-creation, product development completely changed. the way it was developed is completely changed it is now co-creation model now currency uh think about how amazon flipkart and these all marketplaces they charge you there's no fixed pricing let's suppose you are a frequent user of amazon and you are getting a price of a book let's say of 249 rupees now your friend one of your friend has just opened an amazon account he might be getting uh the same book at 219 rupees so it's very dynamic why is that because they want him to onboard have it have that experience of buying it online for the first time so give give them a little bit of more privilege and let them have the opportunity to buy so that's the reason and many times your your behavior online has been tracked most of the times it is tracked and then the pricing is decided uh let's say we have seen many times when an example has you are trying to book over to an Apple device and then over to one second or you are booking it through an Android device or on the other hand you are booking it through your Apple device so over will have a different pricing for the same distance that's dynamic pricing so in traditional mode what was happening when you decide on a price and you want to change the price of the product. it is very difficult is a is a process in which many things are involved for example you have to change the packaging you change the pricing on the package uh many times customers are very sensitive about those changes so these all things need to be considered but today with the dynamic world with the proliferation of internet the customer also wants something really in this form now when we talk about communal activation so the biggest example i will be citing here is of all the products that you see today around is like you talk about oyo you talk about uber you talk about ola hola these are all appear to be your activation means the company doesn't own anything is just people sharing it with people so peer-to-peer this model has come up having a cross-channel presence now it is not only possible that you set up a store and you sit back that people will come and you will have sales now you need to be present on multiple channels you need to present online on different channels like facebook twitters linkedin instagram youtube wherever possible so you need to have you need to have your website so you need to have an omni challenge or cross-channel presence so examples can be i can think about example like uh when you do not get a proper service you go into it on the twitter and you immediately get your service queries resolved so that is how things have been evolving so i had already given you an example of airbnb uber ola youtube then these brands they own nothing but it's just people to people now a classical example in in context if i have to give you you have uh companies like royal enfield and thar they are also promoting this communal activation type of thing because they focus more on building communities around our royal enfield lovers and thar lovers calling them for different drives events and a thrilling event adventure event when we talk about thar and long drives on when we talk about royal enfield so try to identify if your business can have a have such kind of uh communal activation or a community kind of thing that you can build because then the word of mouth will spread more fast faster and you can expect numbers sales definitely and then one more example is of instant delivery and instant access you can talk about swiggy and zomato when it is when the things need to be shipped to you at a very short period of time it is just the platform that becomes an uh what you say a facilitator on one side there are hotels and restaurants on the other side there is customer and they just use the platform and making instant delivery and instant access possible so try to enter if your business uh has something like this possible now conversation so communal activation was uh a replacement of place currency was a replacement of price co-creation was a replacement of product now the last part is conversation or promotion now cost when how often when you get advertisements on facebook instagram twitter whenever you open a mobile how often you feel like buying it you don't feel like buying it because most of the companies or most of the smaller brands they what they do is they just want you to make a purchase so they're pitch is always about sales sales sales now but that thing has changed you need to start focusing on creating content that is educating your consumer rather than asking about sales every time right so offer it helps in offering evaluation previously what was happening the promotion was one-sided the consumer cannot interact with those promotions they cannot give feedback to those promotions but uh recently what has happened with web 2.0 what has happened you can instantly give your feedback to the advertisement you can comment you can dislike so these all things are there now so it has enabled two-way communication and like i already told you it must be educational and not promotional as always and take an example of tripadvisor here you will clearly understand because the traveling travelers the people those who love visiting places they will be posting reviews on TripAdvisor and that community of travelers will be discussing more about where to visit how to take a route which route to take how to take which transportation to take and where to enjoy these all things so the conversation now is again very dynamic and multiple platforms are there where they do the conversation it is not one way it is a two-way so i hope i have made you clear how things have been changing from four ps to four c's in my this effort and by the way we are about to close the video before closing we are a consulting company marketing consulting company and if you want any type of consulting services want to understand whether a new business model that you are trying to embark on is profitable or whether you have a business and you want to understand how online marketing and advertising can help you improve sales uh you can connect us our contact detail is so and so eight to nine double seven double eight double zero 79937342453 book a free consultation will be there for you 10-15 minutes of call and let us understand each other let us understand your business and see if we can help you out signing off Gaurav Kumar take care I hope this has brought some value and if yes give up a give us a thumbs up a comment so bye bye take care and see you soon

Transcript for:Evolution of Marketing Strategies

Transcript for:
Evolution of Marketing Strategies