MARKETING ERA

Of
90’s & 20’s
BY:- AVINASH SENGAR
 INTRODUCTION TO MARKETING
We use a large variety of goods and services in our daily life. These include
items like toothpaste, toothbrush, soap, oil, clothes, food items, telephone,
electricity and many more. How do all these goods and services reach our
home? Obviously the business houses who produce the goods and services
have to ensure that these are to be sold, and so they have to make the
consumers/users aware of their products and place them at points convenient
to the consumers. This involves a number of activities such as product
planning, pricing, promotion, use of middlemen (wholesalers, retailer etc.) for
sale, warehousing, transportation etc. All these activities taken together are
termed as Marketing. In this lesson, we will learn about the concept of
marketing, its importance, objectives and functions.

OBJECTIVES:-
 Explain the meaning of marketing;
 Differentiate between 90’s & 20’s marketing approaches
 4C’s
 4P’s
 6P’s
 Marketing gurus of 90’s and 20’s
 Describe the importance of marketing;
 State the objectives of marketing
 Explain the various functions of marketing
 Differentiate between campaign and advertisement
 MEANING OF MARKETING
We know that the businessman produces goods and services for our
use. These are not necessarily produced at the places where they are
consumed or used. Even in villages, now-a-days you find the products
manufactured all over India and in other countries. This implies that
the manufacturers must be making efforts to ensure that their products
are in demand and reach the ultimate consumers all over the globe. So,
when you go to the market to buy a readymade shirt you find that there
are several options available to you in terms of quality of cloth used,
design, colour, price etc. and you can buy what suits you. This also
implies that the manufactures assess the needs of the consumers, their
tastes and preferences and plan the products accordingly. Not only
that, they also ensure that people are aware about the product and its
features. All these activities are said to be part of marketing function
of any organisation. Thus, marketing refers to the process of
ascertaining consumers’ needs and supplying various goods and
services to the final consumers or users to satisfy those needs.
Basically, marketing is the performance of business activities that
direct the flow of goods and services from producers to consumers or
users. The American Marketing Association defines marketing as an
organisational function and set of processes for creating,
communicating and delivering value to customers and for managing
customer relationships in ways that benefit the organisation and its
stakeholders.
So, in my view
marketing is the process of making relationship with and satisfying the
customer.
Definition of marketing by the American Marketing
Association (AMA), marketing’s professional
organization, and Dr. Philip Kotler, the author of
business school marketing classics:-
“the science and art of exploring, creating, and delivering value
to satisfy the needs of a target market at a profit. Marketing
identifies unfulfilled needs and desires. It defines, measures and
quantifies the size of the identified market and the profit
potential. It pinpoints which segments the company is capable
of serving best and it designs and promotes the appropriate
products and services.”
----Dr. Philip Kotler

Marketing is the activity, set of institutions, and processes for

creating, communicating, delivering, and exchanging offerings that
have value for customers, clients, partners, and society at large.
-----According to the American marketing association (AMA)
"The management process responsible for identifying, anticipating
and satisfying customer requirements profitably"
--------Chartered institute of marketing
Marketing is building your brand, convincing people that your brand
(meaning your product/service/company) is the best and protecting
the relationships you build with your customers.
----– Marjorie clayman
Marketing is the process by which a firm profitably translates
customer needs into revenue.
------ Mark Burgess
Marketing in 90’s
relationship marketing is on a long-term relationship that benefits both
the company and the customer. Starting in the 1990s, a new stage of
marketing emerged called relationship marketing. The focus of The
relationship is based on trust and commitment, and both companies
tend to shift their operating activities to be able to work more
efficiently together. One of the most prominent reasons for
relationship marketing comes from Kotler's idea that it costs about five
times more to obtain a new customer than to maintain the relationship
with an existing customer. A relationship marketing approach seeks to
maximise the value of all the potential exchanges an organisation
could have into the future.
The characteristics of relationship marketing include:
 Focus on the relationship between seller and buyer
 Investment in the lifetime of relationships rather than single

transactions by calculating Customer Lifetime Value (CLV)

 Orientation on product benefits and/or customer value

 Better customer service, commitment, and contact

 Quality is the concern of all

 All activities are coordinated with the customer interface, including

the customer's involvement in the firm's processes

 Customised offerings where practical

Empirical support for relationship marketing as a distinct paradigm is

very weak. One study suggests that relationship marketing is really a
sub-component of large scale movements of the value-added process
rather than a separate era or framework. Some theorists suggest that
marketing is moving from a relationship marketing paradigm and
towards a social media paradigm where marketers have access to a
more controlled environment and are able to customise offers and
communications messages.
In the late 19th century and early 20th
century, as markets became more globalised, distribution began to
assume increasing importance. Some economics professors began to
run courses examining various aspects of the marketing system,
including "distributive and regulative systems." Other courses, such as
the "marketing of products" and the "marketing of farm-products"
followed. As the first decades of the 20th century progressed, books
and articles concerning marketing topics began to emerge.
90,s is also known as Customer Relationship Management (CRM) era.
In the early 1990s, content marketing was, for the most part, traditional
marketing.
If you wanted to get your company message in front of an audience,
you had to place an ad in the newspaper, on TV, radio, billboards, etc.
Approaches which used in 90’s :-
Types of Economy
Types of Economy: It is said that every economy in the world is unique
in some way or another. No two economies are identical. However,
these economies do share many of the same features and characteristics.
So economists have been able to identify four different types of
economy – traditional economy, command economy, market economy
and mixed economy. Let us learn about these in some detail.
I. Traditional Economy
A traditional economy, as the name suggests, is based on a traditional
approach. These economies are based on ancient rules and are the most
basic type of economy. The focus in a traditional economy is only on
the goods and services that match their customs, beliefs, and history.

Such traditional economies tend to focus primarily on agriculture, cattle

herding, fishing etc. A traditional economy will use the barter system
and has no concept of currency or money. Their economies center
around their tribes or families. Such economies believe in only
producing what and how much they require. They find no need to
produce any market surplus. There is no concept of trading.

If such traditional economy does not adapt it becomes very vulnerable

to change in their environment. Once such economies evolve they begin
to adopt farming. They even trade their surplus crop and start evolving
from this traditional economy. And when a traditional economy
interacts with a market or a command economy it becomes a traditional
mixed economy.

Then money (currency) starts to take importance in their lives as well.

This type of traditional economy is suited to underdevelop and
developing economies. Even today such economies can be found in
some pockets of Africa and the Middle East.
II. Command Economy
A command economy is the opposite of a free market economy. In a
command economy system, there is one centralized power, which in
most cases is the government. So the government makes all decisions
regarding the economy. It will decide which goods and services will be
produced, in what quantities. The price will also be determined by such
centralized power and not by market forces.

A command economy is a characteristic trait of a communist country.

Countries like Cuba, China, and the previous USSR are practical
examples of this command economy system. Such economies are also
known as Planned Economies because the government plans all the
forces of the economy, nothing is decided by the free market.

In such a planned economy there cannot be any competition. The

government has a monopoly in almost all the businesses and sectors. All
businesses follow the regulations and instructions of the government
and are not influenced by the forces of the economy.
One of the biggest disadvantages of such a command economy is that
the government cannot plan or provide for all its citizen’s individual
needs. And so this often leads to rationing. In an ideal world under such
a command economy the government should be able to provide a living
to all its citizens. However, the reality is different.

III. Market Economy

This is the complete opposite of a command economy. A free market
economy relies entirely on the free market and free market trends. There
is no involvement or interference from the government or any such
controlling power. This means there are no rules or regulations imposed
on either buyers or sellers. The entire economy is determined by the
participants of the economy and the laws of demand and supply.

Theoretically, a free market economy can show very high levels of

growth. It makes private organizations (only these exist) very powerful
and influential in the country. So it may create an imbalance of wealth
and a scenario where the rich get richer and poor get poorer.

Realistically there are no perfect free market economies in the world.

Every economy has some level of government regulation as it is
necessary. Like for example laws that prevent monopolies, or restrict
production of harmful substances. Even anti-pollution laws that affect
production are a hindrance for a market economy. So in the modern
world free market is a subjective definition.

Currently, the United States is considered the epitome of capitalism.

Hong Kong is also a good example of a free market economy.
IV. Mixed Economy
A mixed economy is a perfect marriage between a command economy
and a free market economy. So, by and large, the economy is free of
government intervention. But the government will regulate and oversee
specific sensitive areas of the economy like transportation, public
services, defence etc. Such an economy is known as a dual economy.
The best examples of such a mixed economy are India and France.

Such a mixed economy allows private businesses the freedom to operate

in the economy with minimum oversight. At the same time, the
government can regulate the economy so it does not adversely affect the
public interests. Both public sector and private sector can co-exist
peacefully in one economy. It is the perfect blend of socialism and
capitalism. In fact, most economies of the world are currently
considered as mixed economies.

Psychological approach in 90’s & 20’s

There are five ways marketers can do this:-
1. Run emotion ideas. Studies suggest that marketing messages
perform better when they emphasize the outcome consumers can
achieve with a particular product or service versus a dry list of its
components and features.
2. Highlight your flaws. To build consumer trust, address your
product’s shortcomings rather than hide them.
3. Reposition your competition. Reframe how consumers perceive
the competition. Without having to bash them, you can reinforce
 the idea that your product fills a different, higher value need in
your customer’s life, making your offering the obvious choice.
4. Promote exclusivity. Cater to your customer’s ego by making
them feel special if they were to purchase your product.
5. Introduce fear, uncertainty, and doubt. Emphasize the
consequences of inaction. Loss aversion is a powerful
psychological principle that can motivate people to purchase your
product if doing so somehow helps them avoid any negative
outcomes.

Technological approaches used in 1990’s

Digital marketing's development since the 1990s and 2000s has
changed the way brands and businesses use technology for
marketing. As digital platforms are increasingly incorporated into
marketing plans and everyday life, and as people use digital devices
instead of visiting physical shops, digital marketing campaigns are
becoming more prevalent and efficient.
Digital marketing methods such as search engine
optimization (SEO), search engine marketing (SEM), content
marketing, influencer marketing, content automation, campaign
marketing, data-driven marketing,[6] e-commerce marketing, social
media marketing, social media optimization, e-mail direct
marketing, Display advertising, e–books, and optical disks and games
are becoming more common in our advancing technology. In fact,
digital marketing now extends to non-Internet channels that provide
digital media, such as mobile phones (SMS and MMS), callback, and
on-hold mobile ring tones. In essence, this extension to non-Internet
channels helps to differentiate digital marketing from online
marketing, another catch-all term for the marketing methods
mentioned above, which strictly occur online.

Marketing Mix in 90’s

A term coined by Neil Borden, are the ingredients that combine to
capture and promote a brand or product’s unique selling points, those
that differentiate it from it’s competitors. The ideas behind Borden’s
model were refined over the years until E. Jerome mccarthy reduced
them to 4 elements called “The Four Ps.” This proposed classification
has been used by marketing companies, branding agencies and web
design companies throughout the world.
The Four Ps Model
 Product – The first of the Four Ps of marketing is product. A
product can be either a tangible good or an intangible service that
fulfills a need or want of consumers. Whether you sell custom
pallets and wood products or provide luxury accommodations, it’s
imperative that you have a clear grasp of exactly what your product
is and what makes it unique before you can successfully market it.
 Price – Once a concrete understanding of the product offering is
established we can start making some pricing decisions. Price
determinations will impact profit margins, supply, demand and
marketing strategy. Similar (in concept) products and brands may
need to be positioned differently based on varying price points,
while price elasticity considerations may influence our next two Ps.
 Promotion – We’ve got a product and a price now it’s time to
promote it. Promotion looks at the many ways marketing agencies
disseminate relevant product information to consumers and
differentiate a particular product or service. Promotion includes
elements like: advertising, public relations, social media marketing,
email marketing, search engine marketing, video marketing and
more. Each touch point must be supported by a well positioned
brand to truly maximize return on investment.
 Place – Often you will hear marketers saying that marketing is about
putting the right product, at the right price, at the right place, at the
right time. It’s critical then, to evaluate what the ideal locations are
to convert potential clients into actual clients. Today, even in
situations where the actual transaction doesn’t happen on the web,
the initial place potential clients are engaged and converted is online.
Advertisement platform during 90,s:-
 Newspaper
 Magazines
 Radio
 Television
 Direct mail
 Telephones

Economical approaches during 90’s:-

According to the findings in the report, India’s average economic
growth between 1970 and 1980 has been 4.4%, which rose by 1
percentage point to 5.4% between the 1990 and 2000.
So, the market is always good for the marketers for the business in
india.
Approaches used in 20’s
Economical approaches during 20’s:-
The major structural changes of opening India’s economy led to an
impressive average growth of 8.8% between 2000 and 2010.

The economy of India is a developing mixed economy. It is the

world's seventh-largest economy by nominal GDP and the third-
largest by purchasing power parity (PPP). The country ranks 139th
in per capita GDP (nominal) with $2,134 and 122nd in per capita GDP
(PPP) with $7,783 as of 2018. After the 1991 economic liberalisation,
India achieved 6-7% average GDP growth annually. Since 2014 with
the exception of 2017, India's economy has been the world's fastest
growing major economy,surpassing China.
The long-term growth perspective of the Indian economy is positive
due to its young population, English proficiency, corresponding low
dependency ratio, healthy savings and investment rates, and increasing
integration into the global economy. India topped the World Bank's
growth outlook for the first time in fiscal year 2015–16, during which
the economy grew 7.6%. Despite previous reforms, economic growth
is still significantly slowed by bureaucracy, poor infrastructure,
and inflexible labor laws (especially the inability to lay off workers in
a business slowdown).
India has one of the fastest growing service sectors in the world with
an annual growth rate above 9% since 2001, which contributed to 57%
of GDP in 2012–13. India has become a major exporter
of IT services, Business Process Outsourcing (BPO) services,
and software services with $177 billion revenue in FY 2019. The IT
industry continues to be the largest private-sector employer in
India. India is the second-largest start-up hub in the world with over
3,100 technology start-ups in 2018–19. The Indian automobile
industry is one of the largest in the world with an annual production of
21.48 million vehicles (mostly two and three-wheelers) in 2013–
14. India had $600 billion worth of retail market in 2015 and one of
world's fastest growing e-commerce markets.
Technological approaches in 20’s:-
Internet
Websites have become business necessities when it comes to
marketing products. The medium allows for plenty of room to share
product details, reviews, photos and videos that engage potential
customers. Announcements often go out through online services and
media stories, while blog posts and word of mouth can drive traffic to
a website. Businesses not only can announce products, but also can
sell them directly to customers all over the world. That reach stretches
far beyond what a local newspaper ad can achieve.
Email Marketing
Email marketing is one of the most affordable and potentially
engaging ways to market a product. Businesses that have built up opt-
in email lists have a large base of customers who already are interested
in the products they offer. Email marketing is an ideal way to
announce new offerings, distribute coupons or discounts and share
information on products. Many email marketing campaigns have
evolved into digital newsletters, in which product marketing integrates
with compelling content.
Mobile
Mobile marketing involves reaching customers on their cell phones
and other mobile devices through text messaging and applications.
Businesses can use text messages to send special coupons or deals to
people on a marketing list. While some businesses develop their own
branded applications for smartphones, many piggyback on existing
applications that offer space for advertisements or coupons geared for
local users. For example, a business may maintain a profile on a social
media smartphone application that gives users a 20 percent discount if
they try out a new product at the store.
In Store
Technology is making its presence known in stores. The use of digital
signage is a trend that allows businesses to capture the attention of
customers and market specific products to them. This is particularly
helpful for restaurants and other businesses that need to respond to
changes in inventory or introduce new products on a regular basis.
Advanced point of sale systems can give employees real-time
information on what products are in stock or help them track a
customer's preferences. Providing excellent customer service is a key
to successful sales and marketing.
Social Media
Social media is both a major opportunity and a great challenge for
businesses when it comes to product marketing. It can be a quick and
easy way to communicate information on new products to a large
group, but businesses have to be careful to attract customers rather
than talk down to them. Businesses should look at social media as
technology that enables the age-old marketing technique of word of
mouth. Create a compelling social media experience, interact with
customers and encourage them to share your product information with
others.
Marketing mix in 20,s

THE MARKETING MIX

Simply put the Marketing Mix is a tool used by businesses and
Marketers to help determine a product or brands offering. The 4 Ps
have been associated with the Marketing Mix since their creation by E.
Jerome McCarthy in 1960 (You can see why there may have been
some need to update the theory).
The Marketing Mix 4 Ps:
 Product - The Product should fit the task consumers want it for, it
should work and it should be what the consumers are expecting to
get.
 Place – The product should be available from where your target
consumer finds it easiest to shop. This may be High Street, Mail
Order or the more current option via e-commerce or an online shop.
 Price – The Product should always be seen as representing good
value for money. This does not necessarily mean it should be the
cheapest available; one of the main tenets of the marketing concept
is that customers are usually happy to pay a little more for
something that works really well for them.
 Promotion – Advertising, PR, Sales Promotion, Personal Selling
and, in more recent times, Social Media are all key communication
tools for an organisation. These tools should be used to put across
the organisation’s message to the correct audiences in the manner
they would most like to hear, whether it be informative or appealing
to their emotions.
In the late 70’s it was widely acknowledged by Marketers that the
Marketing Mix should be updated. This led to the creation of the
Extended Marketing Mix in 1981 by Booms & Bitner which added 3
new elements to the 4 Ps Principle. This now allowed the extended
Marketing Mix to include products that are services and not just
physical things.
The extended 7 Ps:
 People – All companies are reliant on the people who run them
from front line Sales staff to the Managing Director. Having the
right people is essential because they are as much a part of your
business offering as the products/services you are offering.
 Processes –The delivery of your service is usually done with the
customer present so how the service is delivered is once again part
of what the consumer is paying for.
 Physical Evidence – Almost all services include some physical
elements even if the bulk of what the consumer is paying for is
intangible. For example a hair salon would provide their client with
a completed hairdo and an insurance company would give their
customers some form of printed material. Even if the material is not
physically printed (in the case of PDFs) they are still receiving a
“physical product” by this definition.
Though in place since the 1980’s the 7 Ps are still widely taught due to
their fundamental logic being sound in the marketing environment and
marketers abilities to adapt the Marketing Mix to include changes in
communications such as social media, updates in the places which you
can sell a product/service or customers expectations in a constantly
changing commercial environment.
Is there an 8th P?
In some spheres of thinking, there are 8 Ps in the Marketing Mix. The
final P is Productivity and Quality. This came from the old Services
Marketing Mix and is folded in to the Extended Marketing Mix by
some marketers so what does it mean?
The 8th P of the Marketing Mix:
 Productivity & Quality - This P asks “is what you’re offering your
customer a good deal?” This is less about you as a business
improving your own productivity for cost management, and more
about how your company passes this onto its customers.
Difference between advertisement and campaign
Campaign:- Complete, planned course of action formulated to achieve
defined objectives in marketing, public relations, quality enhancement,
revenue generation, safety standards, etc.
Advertisement:- Advertising is a marketing communication that
employs an openly sponsored, non-personal message to promote or
sell a product, service or idea. Sponsors of advertising are typically
businesses wishing to promote their products or services.
Promotional Campaigns
Promotional campaigns, usually called sales promotions, can be either
consumer or trade-oriented. Consumer promotions target end-users.
Trade promotions target channel partner intermediaries, such as
wholesalers and retailers. Sales promotions are of a short-term
duration; they stimulate immediate sales through the use of incentive
offers that motivate targets to "buy now." Incentives commonly used
in consumer-oriented sales promotions include coupons, temporary
price reductions, bonus packs, rebates, sweepstakes, cross-product tie-
ins and self-liquidating premiums. Examples of trade incentives
include promotional allowances that encourage retailer promotions and
trade deals that encourage large volume purchases. Sales promotions
work well for small business owners. They're relatively inexpensive to
execute and can be a quick fix for sagging sales. The downside is that
they are short-term fixes that contribute little to building a brand name.
Advertising
An important distinction that separates advertising from promotions is
that advertising always involves the use of paid media. Promotions can
be paid-media driven, but the intent of promotions is to generate quick
sales through an incentive offer. The purpose of traditional advertising
is to drive sales through the use of persuasion, which can be rational or
emotional persuasion. Effective advertising builds a strong brand
image that establishes a long-term relationship with users based on an
emotional bond that connects users to your brand. Paid media includes
broadcast media, online advertising and any other media format that
requires a cash outlay to use. Although costly relative to promotions,
advertising is the proven way to build a strong brand name, which is
vital to the survival and long-term growth of any business
Top ten marketing gurus of india
They can captivate you, make you laugh out loud, start debates or
merely flip the channel. Ads have the power to make you sit up and
take note – good or bad.
Beautiful and touching to bold and controversial, some of India’s most
creative minds have been behind memorable ads.
Here’s presenting some of the country’s top ad men, who not only
changed the face of ads in India but have given us some memorable
commercials as well.
Piyush Pandey

Piyush Pandey
The No 1 ad man in the country is undoubtedly, Piyush Pandey, the
Executive Chairman and Creative Director of Ogilvy & Mather India.
The ad guru is responsible for coining the defining slogan for PM
Narendra Modi’s Lok Sabha campaign, “Ab ki baar, Modi sarkaar”.
This slogan helped in fetching delightful results for the current
government during the elections.
The big daddy of Indian advertising has had a long and remarkable
career at O&M. He is also the man behind popular ads like Cadbury’s
– Kuch Khaas Hai, Fevicol – Fevicol ka mazboot jod, Asian Paints and
even Fevikwick.
Thanks to Pandey, O&M today is one of the most sought after ad
agencies in the country.
Prasoon Joshi

Prasoon Joshi
Poet, lyricist, script writer and ad man – Prasoon Joshi wears many
hats. Having begun his career at O&M, Prasoon is now the Chairman
of McCann World Group Asia Pacific.
He is the man behind notable commercials like Alpenliebe
Chlormint, Thanda matlab Coca-Cola (which won an award at
Cannes) and many more.
Joshi was conferred the Padma Shri this year and has also composed
the anthem for the Swachh Bharat Abhiyan.

R Balakrishnan

R Balki
The Chairman and Chief Creative Officer of Lowe Lintas, is also
known as the filmmaker R Balki. Balki’s agency recently picked up
three Gold Lions at the Cannes Lions International Festival of
Creativity in 2014.
Some of Balki’s popular works have are Daag Achche Hain for Surf
Excel, Jaago re for Tata Tea and the Walk And Talk for Idea Cellular.
Balki is also the one who captured the late superstar Rajesh Khanna in
his last ad for Havells fans
Sam Balsara

Sam Balsara
A prominent figure in the Indian advertising industry, Sam Balsara has
over 30 years of experience in the ad world. The Founder, Chairman &
Managing Director of Madison World, Sam’s company has worked
with the most prominent brand available in the market.
And not just that, Madison worked along with Team Modi to pull off
the biggest political campaign the country has ever seen.
Prahlad Kakkar

Prahlad Kakkar
Who can ever forget Aishwarya Rai’s first ever TVC. “Hi! I’m
Sanjana. Got another Pepsi?” mouthed Ash. And since then she has
never looked back. The man behind the discovery and the commercial,
Prahlad Kakkar is a brand guru and a man behind Genesis.
Candid, bold and sometimes just outrageous, Kakkar’s ad campaigns
have captured the imagination of the county.
Some of his memorable campaigns have been for brands such as Pepsi,
Kit Kat and Maggi.

Arvind Sharma

Arvind Sharma
Arvind Sharma has been the longest-serving CEO of an ad agency,
having headed Leo Burnett as chairman and CEO for 21 years. When
he quit Leo Burnett in 2013, in a way it was an end of an era.
A veteran, Sharma has been the force behind popular ads like
McDonalds, award winning radio ads like Tata Salt Lite, Thumbs Up,
Tide and more.
Sharma has now turned entrepreneur with the e-commerce venture,
indiasarihouse.com.
Josy Paul

Josy Paul
In the last two years, the man behind BBDO India and RMG David
has won more awards at Cannes and Spikes Asia than any other
creative in India.
Having been part of O&M and Lowe Lintas, Josy formed his own
company and has been the mind behind Johnson’s Baby Cream,
Pillsbusry, Visa Debit card and more.
Taking a different route from conventional advertising, Josy’s ads are
steeped in social messages like Aviva’s Great Wall of Education,
Gillette’s Women Against Lazy Stubbles etc.