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Evolutionary trends
in marketing: WTO Scenario
ABDUL SABOOR
Lecturer Department of Agricultural Economics, University of Agriculture.
Marketing is not a static phenomenon. Rather, it is dynamic in its ever-changing trends. The pace and momentum of its functioning is very slippery particularly under World Trade Organization (WTO) scenario. It often changes dramatically; sometimes slowly and frequently in ways that are difficult to predict. Those business entities in Pakistan, which are able to detect and predict such changes, would certainly be in a better position to prosper and nurture in the international markets as compared to the laggard ones. There is a lot of space and scope for the firms to share the market profit of the world but if they use marketing as a technique for success. Why are some firms so successful while other fail? Increasingly it is because the winners realize the power and potential of marketing. Let us explore just how marketing is evolving in the geo-economic culture of
WTO.
UNIVERSALITY
Marketing is becoming present everywhere. It can be found in all societies because all desire to take benefit of its promises. Even non-profit organizations are grasping the prospects and potential of this giant force. Charities use it for fund-raising; governments use it to obtain citizen patriotism; political parties utilize it to achieve followers; and performers in the cinema use it to acquire celebrity.
FUNCTIONAL PHILOSOPHY
Marketing has evolved from a function into a philosophy. It is no longer seen as simply a responsibility of the marketing department within a company. Instead, all employees are required to conduct themselves in ways that satisfy target customers. All are guided by the philosophy that the customer is the king of the economy. Since marketing is a philosophy, it is the duty of the marketing department to sell marketing to all company employees, that is, marketing must persuade all employees that they are in business to satisfy target customers. This is termed as marketing to employees. After all, these employees are active members of the comity of customers.
GLOBAL EXTENT
In the free trade and no-barrier environment, marketing is now global in its extent. Companies must reach beyond their countries' borders and hunt for markets in overseas lands. Even small firms can do this. Pakistan has a wealth of resources and a pool of resourceful, intelligent, and hard-working people. It can use these assets to employ in global venture and bring optimal prosperity to its people. But it must continually endeavor to meet competition from other developing countries. To reap the full economic benefits of the WTO scenario, a complete awareness of the extent and content of the global markets is a necessary condition if not the sufficient one.
E. REVOLUTION
The Internet adds the dynamic nature of marketing. It is becoming progressively more significant. Domestic markets have taken the shape of international markets. More goods will be sold and more business will be transacted over this medium as time passes. Pakistan seems to be moving in this direction. There are numerous private colleges and institutes providing education in this area. It is generally believed that the wave of the future in all marketing is students who are well-educated in marketing theory and practice, especially at the MBA level. The MBA is the key to success. The students of Department of Management Sciences, University of Agriculture, Faisalabad are fortunate to have a well-conceived and administered MBA program at the campus. Graduates of this institution can lead business firms in the directions required by the evolutionary trends of marketing. There is no denying in the fact that the human resource produced in such institutes would play a pivotal role in reaping full benefit for its industries particularly in the emerging settings of globalization.
ENVIRONMENTAL SCANNING
One form of marketing evolution is that well-managed companies scan the environment to detect trends. In turn, the most significant environmental components, social, technological, economic, political, and competitive settings, must be monitored as they continually change. Environmental scanning is superior to marketing research as a guide to decision making on new product development, branding decisions, pricing, advertising, and physical distribution. Environmental scanning can detect trends in their earlier stages. It can generate relevant information in a manner that is less expensive than marketing research. In a decade to come, the story of success of any company, operating either domestically or internationally, would lie in environmental scanning
SUPPLY CHAIN MANAGEMENT
Products must be stored and delivered in such a way as to provide efficient and effective movement of goods through the channels of distribution on their way to customers in a manner that minimizes costs and maximizes customer service. This must be done because numerous competitors have developed expertise in supply chain management and their efforts must be duplicated. The new geo-economic culture of WTO demands for an excellent supply chain management.
NOVELTY IN PRODUCTS
Another form of marketing evolution is that new products are vitally needed by every firm. Most of the profits of well-managed firms come from new products. Customers demand novelty and competitors are continually producing new offerings which must be matched. New products introduced by a company must be differentiated from those of competitors; that is, they must offer better quality, superior service, lower price, better packaging, or some other bundle of superior components. Moreover, there is a dire need to get new products to market very quickly. Fast new product introduction would generate longer revenues, less financial risk, more consumer loyalty and lower costs than does slower introduction. Through well-conceived planning and control measures, non-bureaucratic forms of organizations, and effective employee incentives, Pakistani firms should bring new products to market in an expedient fashion.
MARKET SEGMENTATION
One evolutionary trend in marketing relates to market segmentation. Target groups in different countries are becoming increasingly similar. A teenager in Pakistan shares many of the clothing, food, music, entertainment, and other preferences with teenagers in London, and Hong Kong. A middle level manger in Bangkok is similar in many consumption styles to a middle level manager in Karachi. These similarities allow our companies to introduce products and brands into multiple countries, and to utilize master marketing plans in these countries.
RELATIONSHIP MARKETING
Customers prefer buying from companies with which they can identify. Management must create a climate whereby target customers feel that they have positive long run association with the firm. They will do this only if they become aware that management is interested in the long run welfare of the customer and is not solely motivated to make profits. Relationship marketing is closely associated with revenues and costs; most companies receive the bulk of their revenues from repeat customers. It generally costs seven times as much to win a new customer as it does to retain an existing customer. Before the WTO plan is fully implemented, Pakistani entrepreneurs must adopt the principles of such a marketing.
CONSUMER-CENTRIC MARKETING
It involves designing products to meet the specific needs of individual consumers. A company in Japan will produce a custom-made bicycle that is of the exact size and possesses the exact physical characteristics as are desired by specific consumers. And the prices charged by these companies are competitive. Modern computer-driven production facilities permit the manufacture of such products at low cost. The Internet provides an excellent vehicle for this form of marketing since customers can specify the characteristics of the products and services they want through the electronic medium. Consumer centric marketing is the ultimate form of market segmentation. Coupled with relationship marketing, it can generate a very high level of customer loyalty.
INTENSITY OF COMPETITION
Another dimension of marketing evolution is the increased intensity of competition in every industry. We must learn that no firm is spared. Each one must constantly be alert and vigilant for new competitors and changes in the strategies of existing competitors. It is extremely dangerous to assume that the status-quo will prevail. Price wars have deflated profits to very thin levels and prospects for the immediate future are not bright.
MORALITY
Last but not the least, an important form of marketing evolution is the rising role of ethics in the decision making of marketing managers. Many are realizing that their companies can be successful only if the world around them becomes a better place within which to live. One means of improving the material and spiritual status of the world is action by strong morals and a sense of social responsibility. For the public at large, this may be the most significant fact of the evolution of marketing. Without the tool of morality and honesty, profit generation would be a day-dreaming in WTO scenario.
Courtesy Business Recorder
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