Understanding Reverse Marketing Strategies

Oct 3, 2024

Reverse Marketing Lecture Notes

Introduction to Reverse Marketing

  • Definition: Observing the craft of successful marketers and studying their work to understand their intent from a marketer's perspective.
  • Process: Similar to reverse engineering a product or process to analyze what works and what doesn't.
  • Impact: Participants experience significant learning and growth; transitioning content from offline to online.

Campaign Analysis

Amazon's E-commerce Campaign (2015)

  • Context:
    • Amazon dominated the US e-commerce market by 2014 but lost to Alibaba in China.
    • Ambitious goal to succeed in India's e-commerce market after massive investments from competitors (e.g., Flipkart raised $1 billion).
    • Amazon announced a $2 billion investment in India in 2014, aiming to tap into its growth potential.
  • Campaign: Launched "Or Dikhaav" campaign in response to competition.

Steps in Reverse Marketing Process

  1. Identify Business Objectives:
    • Understand the source of growth envisioned by the brand team.
    • Useful starting point: Growth Equation.

Growth Equation Components

  • Formula:

    1. Market Size: Number of available people in a given market/geography.
    2. Penetration Percent: Percentage of people who consume your brand.
    3. Frequency of Consumption: How often consumers engage with your brand.
    4. Average Weight of Consumption: Amount consumed in a given order/location.
  • Size Calculation:

    • Multiply all components to estimate either the size of the brand or the category.
    • Pricing is assumed constant in basic calculations.

Business Objectives

  • Brands typically aim to drive one of the following:
    1. Penetration: Increase the number of consumers.
    2. Frequency: Increase the frequency of consumption.
    3. Average Rate of Purchase: Increase the average purchase size.

Conclusion

  • Reverse marketing is an effective tool for understanding marketing strategies and objectives, leading to better decision-making in marketing practices.