Recent Trends in Marketing - Study Notes

Lesson summary

The market scenario is changing rapidly. Information technology, fast transport, liberalisation and the mobility of people have made customers global. Marketers are shifting from transaction thinking to relationship building, follow the idea of "offer more for less", and use the internet and social media to reach customers.

15.01 E-commerce and E-business

• E-commerce: all activities that directly or indirectly facilitate the exchange of goods and services, done through the internet and other online environments.
• E-business: business transactions carried out through the web, internet, intranets and extranets.
• Difference: E-commerce is simply online buying and selling; E-business is wider and covers supply chain management, electronic order processing and customer relationship management. In a broad sense the two terms are used interchangeably.

15.02 E-marketing

E-marketing is marketing products and services over the internet and telecommunication networks. It is also called online, web, internet or digital marketing.

• Definition (Judy Strauss): the application of a broad range of information technology for creating more customer value through more effective segmentation, targeting, differentiation and positioning strategies.
• Objectives: expansion of market share; reduction of distribution and promotional expenses; higher brand awareness; strengthening the database.
• Advantages: any time (24/7) market; direct contact with manufacturers cuts intermediation cost, so products are cheaper; customers buy whatever they need by browsing sites.
• Disadvantages: high cost of websites, software, hardware and online advertising; not suitable for small business; websites hardly updated; buyers fear misuse of credit cards.

15.03 E-tailing

Electronic retailing: selling goods and services to the ultimate consumer through a shopping website or virtual store. The site displays product images, features and offers; the customer pays by credit card or other methods and receives the product by courier. It is also called online retailing.

15.04 Green marketing

Marketing environmentally friendly products that satisfy needs for quality, performance, affordable price and convenience without harming the environment. It grows from awareness of global warming, non-biodegradable waste and pollutants. Also called environmental or eco-friendly marketing. Toyota and Volkswagen/Mercedes-Benz market eco-friendly vehicles.

15.05 Social marketing

Applying marketing techniques to achieve behavioural goals that ensure social good: no smoking in public, wearing seat belts, following speed limits. Campaigns against tobacco, drugs, pollution, dowry and plastic bags, and for road safety and protection of the girl child. It helps to eradicate social evils.

15.06 Rural marketing

Developing, pricing, promoting and distributing rural-specific goods and services. It is a two-way process:

• Urban to rural: agricultural inputs and FMCG such as soaps, detergents, cosmetics and textiles.
• Rural to urban: agricultural produce such as rice, wheat, sugar and cotton.

15.07 Service marketing

A service is an essentially intangible activity or benefit that does not result in ownership, such as banking, insurance, healthcare, tourism and repairs. Services are intangible, inseparable from the provider, variable with the provider's mood, perishable in quick time, unstandardisable and delivered directly without intermediaries.

15.09 Niche marketing

Directing all marketing efforts at one well defined segment whose needs are not served or under served by competitors. A niche is not a small market but a specific audience with a specialised offering: a big fish in a small pond. Examples: luxury cinema halls charging 5-6 times a normal ticket; sports channels such as STAR Sports and ESPN.

15.10 to 15.15 New promotional methods