Consider the three key forces driving the new marketing realities. How are they likely to change in the future? What other major trends or forces might affect marketing?
The world as a fully-fledged economy thrives on various markets existing owing to the consumer taste and aspiration across the globe. It doesn’t matter in which part of the world one goes, one would always find a sparkling resemblance in each market on the grounds of comparison like the Demography, Target Audience, Social sentiment, Ethnic Origin and the list goes on along with the regulations clipped by the governing bodies of respective states to protect the domestic traders and interests of small sellers in the whirlpool of big emerging technology-based giants trying to consummate the territories to assuage the hunger of their territorial ambitions.In this quest for expansion of business for the one and only motive i.e PROFIT, one needs to take every step extra cautiously by analyzing and updating oneself for the ground market realities. Now, what are marketing realities? Know about it in the next section, meanwhile wrapping up the contents of this assignment.
This assignment is motivated to answer the question as to what are the factors affecting the new marketing realities, how are they changing and what others are present in the same dimension. But before we start discussing the tit-bits of marketing realities and forces associated with it, let’s have a look at the meaning of marketing realities first in the upcoming section and then trace our steps back to the real motive of answering the question.
But before that, we need to keep a few points ready in our mind related to the upcoming study that all the concepts and theories are just data based on some real-time surveys and analyses done by some prominent surveyors which include not each and every entity in that field, since it’s difficult to cover that. But still, we can rely on the data for segregating our bias towards the conclusion at the end of this assignment, keeping in mind the main crux of final conclusions of the respective surveys mapping all the main topics of considerations in our study.
For a newbie in this field, this could be easily answered by the work of guess just by looking at the term: Marketing Reality. A real-time existing tactic to generate leads for marketing is the crispest and simple definition of marketing reality. With changing times, rather with every second now, the war of standing out from the crowd is getting tougher amongst the participants (sellers/traders). One has realized that if there is even a single day’s delay in updating your knowledge with the ‘NEW’ thing in the market, you consider this as an already lost race. One has to keep up with the pace of improving, updating, and analyzing the entries and exits of a market.
A marketing reality is something that changes and governs our road of marketing. It can be something already existing but latent, or something which has just emerged out of nowhere. Just imagine your business being started at some point of time, making you hopeful of your future endeavors, and overwhelmed by your marketing strategies, but out of nowhere, there is a new governmental obligation to be met by you at some front like taxes! Boom! Your strategies are now gone, you are nowhere in your mind palace of prospering, you become depressed by the failures of your investment since ‘A CHANGE’ is required to understand the nature of market once again. That CHANGE is the Marketing Reality. Since it’s a change, it’s utterly variable. One can’t predict the oncoming of change, nobody can, and there is no remedy for that. But, what about being provisionally ready for it?
That’s what normally all successful businesses are up to, they are constantly leaving provisions of change to evolve with the marketing realities. Be it the electronics giants like AMAZON, EBAY, and ALIBABA who have a flexible structure of the business to go along with the flow of their host nation’s ease, or Retail giants like WALMART, SPARR, SHOPPERS STOP who also have now started giving a tough match to the online platforms. Now, what difference does it make to have an online or offline presence as long as you are selling it to someone? IT DOES due to marketing realities. This is the power of marketing realities.
In the next section, we are going to talk about the major forces affecting new marketing realities to this date and time. As we write, the new realities also are losing their sheen since its variable remember? But before we talk about the forces let’s have a look at the existing marketing realities in brief. As we have mentioned above about the online and offline seller platforms, we have touched upon the most important aspect of realities that is changing nature of selling platform. Thus, Offline platforms are also witnessing the wave of change in seller’s attitude towards analyzing customer by the use of technology. Another reality is Use of Technology by businesses. We are going to see in the next section, how the number of technologies used by a seller is directly proportional to their reachability in the market. One more reality is the Budget of a business. It determines every aspect of a business but most importantly about the decision of keep changing with times and competing on the same grounds as offered in the marketplace.
3 Major Forces
The present part of the study will explain in detail about the various factors which these marketing realities are dependent upon. Albeit the forces are never constant, thus it would be wise to say the contemporary forces in existence to sap any sense of confusion in our discussion. The three major forces in the market right now are
1) Customer Behaviour Prediction: Customer behavior is the most important factor that was, is and will always be a prominent mystery with new locks to be opened by a key provided by time differently. Before the era of the internet, Only the Brick and Mortar retailers existed, no e-commerce was present. So customer base was very restricted, and also customers did not have a scope of exploring options. After Internet (Initial Stage), Still coming in terms to understand how to decipher this new invention for marketing purpose, so by and large the same case. After Internet (present stage), Fully explored scope. The customer is god now. Online retailers at benefit leveraging the technology and offline now starting to realize the fear of losing out.
It has been generally assumed that customers involved in online platforms are a larger chunk, but it’s not so. Only 8.4% of total retail sales were in the spectrum of online platform selling, rest 91.6% was offline. So it’s important to discuss the behaviour prediction on both platforms. For online customer prediction, there are various tools available with e-commerce giants nowadays. Google Analytics has changed the picture of prediction patterns and application single-handed to e-commerce businesses. It helps analyze the incoming traffic and optimize business strategies according to the customer prediction.
The combined power of TECHNOLOGY, BIG DATA, ANALYTICS serves a major revolution in the field of e-commerce platforms. Every seller now thrives hard to have their hands on this set of power which is no less than an elixir in the cutthroat environment. But the picture of offline prediction is a little sulky right now. With no clear technology to assess the physical presence of customers and track their movements, it’s quite difficult to take advantage of this 91.6% share. Though there still exists an idea of offline prediction pattern which is very popular now i.e. WIFI DIGITAL FOOTPRINTS. According to this idea, wifi hotspots in a brick and mortar marketplace can serve as a major tool in mapping and trace the customer movements through the marketplace. The market still awaits this.
2) Marketing Budgets: Marketing Budget, as we will see later, takes up a huge chunk of spending in a business strategy. It is easy to provide some amount periodically for this purpose, but difficult to assess the right field of investment. Though this is a really important force, it’s so huge that it itself is governed by sub-factors like Economic balance of nation, Changing technology, Business Size, Brass decisions, Historical overview
Various studies have demonstrated it well as to how budget rules the roost in the marketing strategy of businesses. According to the new Gartner Research, the average global marketing budget is increasing every year by 1% from 15% (2015) to 16% (2016) to a new record level of 12% (2017). Also, the research entails upon explaining the prominence of how budget spending is very important in reaching out to pockets. Targeted and triggered campaigns are believed to cross 58% of total retailer revenues. What determines the budget spending covers a lot of aspects right from COMPANY SIZE to ECONOMY SIZE and regulations, for instance, the budget cutting by 20% following the 2008 recession hit market left sellers dumbstruck.
3) Technology and the evergreen challenge of Competition: competition will never fade in its element to exist as a major factor affecting any line of business. The competitive environment is a boon for the customer’s pocket while a bane for the seller’s. Its prominence in the field of decision making is so huge that it cannot be avoided now at any level, at any cost.
The above landscape picture representation might look confusing to anyone as it contains over 4000 new technologies which at present make competition tougher in the marketplace. Imagine how it might affect the budget and strategies of businesses. This is the recent quest to clinch the title in the war among businesses. Competition has taken a toll on the marketplace so much so that imitation is the new villain here. One could find overlapping of campaigning strategies in electronics, media entertainment, apparels and many more sectors.
Other Potential Forces
As already stated, the list was not exhaustive. So here are a few more forces which have the potential of affecting the marketplace and govern the marketing realities.
1) Marketing channels: A business along with just allocation of the budget has to be wise in the selection of marketing channels.
2) Information Technology: Although a generic term, it has the power to instantly topple the market sentiment.
3) Globalisation: Quest to clear territorial limitations is a major motivation to many big and small emerging sellers and businesses.
4) Deregulation: Ease of doing businesses is another important consideration going in hand with globalization.
5) Convergence: When 2 or more industries join hands, it leaves a bigger impact on existing realities and future too.
6) Delivery: The biggest headache is taken care of by houses like FedEx, DHL and many other packages and delivery houses making things easier for small dreams of making it big.
7) Loyalty: Various Brand Loyalty programmes are doing a good job in customer retention possibilities for major and small business houses.