Marketing91

  • HOME
  • Categories
    • Marketing Management
      • Marketing basics
      • Marketing Articles
      • Careers in Marketing
      • Market Research
      • Retail Marketing
      • Services Marketing
    • Strategy
      • Marketing Strategies
    • Management
    • Branding
    • Small Business
    • Sales & Selling
    • Advertising
  • Online Marketing
    • Blogging
    • Social Media Marketing
    • Search Engine Optimization
    • Internet Marketing
    • Ecommerce
  • Brands
    • Marketing Mix of all Brands
    • SWOT of Brands
    • Brand Competitors
    • Marketing Strategy of Brands
    • Business Models of Brands
  • Videos
Home » Marketing management articles » Increasing importance of marketing in today’s economic environment

Increasing importance of marketing in today’s economic environment

February 14, 2018 By Hitesh Bhasin Tagged With: Marketing management articles

Today’s economic environment is tough. Consumer spending is low and at the same time consumers have become very knowledgeable and selective about the product they buy. Decision making is happening mainly based on word of mouth, though advertising is also playing a crucial role in decision making.

One of my readers recently wrote to me of what I think of the current economic environment and whether or not marketing has increased in its importance today? My answer is a resounding YES.

Increasing importance of marketing
Increasing importance of marketing
Marketing is increasing in importance due to a tough business environment

To understand the relationship between marketing and today’s environment, we need to define some of the traits of current economic environment.

Table of Contents

  • 1) Competition –
  • 2) Internet/word of mouth –
  • 3) Consumer decision making –
  • 4) Niche markets rising up –
    • Related posts:

1) Competition –

Every brand and product is being affected by competition. There are ‘N’ numbers of products and brands present in any category. Each product has a USP of its own and each brand is targeting one particular niche. Thus the choices for consumers have increased a lot which causes loss of brand loyalty. Due to lessening of brand loyalty, customers can be lost to competition much faster than was previously possible.

The way to fight against competition is to offer better products and build a better process such that the customer is thoroughly satisfied and sticks with your product / brand. Thus, as you want to stand tall against competition, the importance of marketing is increasing.

2) Internet/word of mouth –

Due to the advent and large spread usage of internet, customers are aware about your product in depth even before entering the store. Furthermore, there is a lot of reference selling wherein a customer buys a product because their friends have recommended it. For example – if 10 of your friends recommend 1 movie as very good, you will definitely check out the movie as early as possible.

Also Read  Multiple Unit Pricing: When you should use it, and the Pros and Cons

Thus, internet marketing and digital campaigns have become an important part of marketing strategy. If a business is offering services, than they will need to have a higher budget for internet marketing as their potential consumers search for services through google or through online classifieds today rather than recalling TV ads or outdoor media. In India, Justdial is a perfect example of how consumers are searching for products and services online.

3) Consumer decision making –

With so much competition already present in the market, and with a powerful medium like internet being used, there is too much noise for the customer to make a sound decision. Thus, today the focus is equally on the complete marketing mix as well as on manufacturing products which are unique.

The recent success of Micromax against Samsung is an example of how penetrative pricing can be used along with product development. Unlike Samsung, Micromax had not used much marketing communications. Rather it relied on solid product development, a penetration pricing and word of mouth as well as a digital marketing strategy. The result was that Micromax canvas phones are taking away a chunk of market share from Samsung smart phones.

So, the importance of marketing is rising because consumers are open to influencing today. They are so confused with the noise, that they think companies which are not making noise are not worth it. Marketing plays a pivotal role in consumer decision making in such cases.

4) Niche markets rising up –

Today there is huge market for cell phone accessories, automobile accessories as well as home decoration. These markets are niche markets but they are on the rise and many of the SME’s have made it big by bulk supplying their products to OEM’s. In such niche companies, the importance of marketing is rising as communications and distribution plays a critical role.

Also Read  Shopping products

For example – In ear phones and tablet covers, packaging and design is most important, whereas in spare parts of white goods and automobiles, distribution and marketing strategy is essential. Thus even in niche product, the company cannot survive without a proper marketing plan and strategy.

Combine the above four traits of a business environment and the environment becomes complex, dynamic, multi faceted and consumer driven. In such a market, the marketing mix is ever changing and hence the need arises of smart marketing managers and smarter marketing strategies.

Related posts:

BCG Matrix - 3Above 30 Marketing and strategy models and concepts brand colors - 310 different brand colors and what they stand for Variable PricingVariable Pricing: Definition, Examples, Model and Advantages Cost ControlCost Control: Definition, Role, Standards and Advantages Product Development Process8 Steps of the Right Product Development Process What is Product Lines ExtensionWhat is Product Line Extension? Product LaunchWhat is Product Launch – Examples, Types, Advantages Types of Buzz MarketingWhat is Buzz marketing ? Types, Tips, Examples, Advantages For Your Brand Network MarketingNetwork Marketing – Meaning, Types, Features, Advantages Different Phases of Product Development every Product need to go ThroughWhat is Product Development? Definition, Meaning, Phases
Also Read  6 Steps to Create a Marketing Budget

All Knowledge Banks (Hub Pages)

  1. Marketing Hub
  2. Management Hub
  3. Marketing Strategy
  4. Advertising Hub
  5. Branding Hub
  6. Market Research
  7. Small Business Marketing
  8. Sales and Selling
  9. Marketing Careers
  10. Customer Management
  11. Top 10 Lists
  1. Internet Marketing
  2. Blogging
  3. Search Engine optimization
  4. E-commerce
  5. Facebook Marketing
  6. Social Media Marketing
  7. Business Model of Brands
  8. Marketing Mix of Brands
  9. Brand Competitors
  10. Strategy of Brands
  11. SWOT of Brands
GET DAILY MARKETING UPDATES

About Hitesh Bhasin

I love writing about the latest in marketing & advertising. I am a serial entrepreneur & I created Marketing91 because i wanted my readers to stay ahead in this hectic business world. You can follow me on Facebook. Let's stay in touch :)

Comments

  1. mohammed abthar says

    excellent sir,excellent research.

    Reply
  2. shabna shiyas says

    i want to know answer about
    as a manager, briefly discuss about the various considerations involved in the design of marketing organisations in the following senario
    1. large scale manufacturing conpany
    2. north based woolen garment manufacturer

    Reply
  3. Annette says

    Greetings Hitesh. What in your opinion is the convergence and divergence of marketing and advertising in today’s contemporary business sphere?

    Reply
  4. students says

    Marketing with Jacobson sucks

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts
  • What is Benefits Administration? Definition and Steps
  • What is coaching? Different coaching styles
  • What is Corporate Training? Types and benefits
Advertisement

Marketing91

MORE INFO

  • About Marketing91
  • Privacy Policy
  • Cookie Policy
  • Disclaimer
  • Terms of Use
  • Advertise
  • Contact us
  • Sitemap
  • ISO 9001:2015 Certified

LEARN WITH US

  • Course on Market Segmentation
  • Course on Marketing Strategory Models

WE WRITE ON

  • Marketing
  • Small Business
  • Management
  • Internet Marketing
[email protected]

Copyright © 2020 Marketing91 All Rights Reserved