Marketers Challenge

At one of the forums, some of the veteran marketers remembered the good old times when it was simpler to segment consumers into demarcated groups based, on one or more of attitudes such as age, socio-economic classification and thereby indirectly their incomes.

The buying behaviour was more predictable in terms of purchase frequency and seasonality. This however is becoming more difficult predicting for tomorrow, and rather difficult for even today.
Though marketing research tools give some insights but not enough in most of the situations.

Marketers Challenge
We can identify four major change drivers. These are; Demographic profile Literacy rates Increase of information Economic growth

Marketers Challenge
Demographic profile The first change-driver is the very unique demographic profile of India Never did in the past India have such a big majority of young Indians These young are having the prospectus of a brighter and more prosperous present and future than their parents It is this reason the Consumer Confidence of Indian Consumers remain highest in the world.

Marketers Challenge
Literacy rates
The second change-driver is the very rapidly rising literacy rates in India While the overall percentage may still be below 65%, the numbers are much more encouraging for the population below the age of 35 years and this could be above 75%.

Marketers Challenge
Increase of information
The third change-driver is the explosive increase in the access of all kinds of information and an almost real-time exposure to hottest and latest National and International developments, trends, lifestyles, fashion etc. This is all leading to a very different kind of younger generation.

Marketers Challenge
Economic growth The fourth change-driver is the unprecedented economic growth in the last 15 years (starting nineties) The prospectus of continuing this growth in the next 15 years is also quite high and this is leading to increase in the disposable incomes for at-least the top two third population (approx. 700 million).

Marketers Challenge
These four change-drivers are leading to;
1. 2. 3. Change in consumers aspirations and expectations Creating a dynamic shift in buying patterns and overall shopping / spending Middle income consumer is behaving like an affluent when it comes to major capital expenditure (mobile phones, automobiles or strongly value conscious when it comes to groceries or eating out.

Marketers Challenge
4. Consumers behaving time stressed when shopping daily needs, but does not mind spending more time at a coffee shop with or without friends or fellow shoppers The consumers bargain or compares prices when shopping for consumer products or durables but blows up in a single day when on a holiday in India or abroad

5.

Marketers Challenge
Apart from these the other changes are; Shorter Product Life Cycle More of R & D is required so that new or more features are added regularly The cut throat competition further shortens PLC Longer & Complex Sales Cycle The choices available with the customers are many, decision making time is very high The salesmen therefore need to have patience and give enough time to buyers

Marketers Challenge
Reduced loyalty by customers

Product differentiation is very marginal

Small problems are blown up Small ignoring becomes an ego problem

Communication systems and facilities have gone up high and a small missed chance or timely information to customers is taken seriously. The expectations have further gone up Buyers getting more intelligent and globally informed

Marketers Challenge
The challenge therefore for the marketers of consumer products and services is to develop a robust methodology that can continuously anticipate and meet or exceed these changing consumer expectations of; Products / Services Functional and emotional attributes Product design Branding and Channels

The advice
It would therefore be advisable for marketers to spend more time in the markets visiting not only own outlets but also other channels to regularly track informations across sectors (and not just own or competitors)