Assignment

On
Marketing Management
Topic: Changes in the marketing
practices of Bangladesh during the
last over decade.
Course code: 511
Submitted to:
Dr. Belayet Hossain
Professor
Department of Marketing
University of Dhaka

Submitted by:
Shuvashish Dey
BBA, 16th batch, sec-B
Roll-102
Department of Marketing
University of Dhaka

Date of submission:

28th August, 2014

First, we are moving from a world of relatively scarce shelf-space to

relatively scarce attention. Second, costs of production and physical
distribution are significantly declining on a global scale and
customer acquisition and retention costs are rising. At the risk of
over-simplification, value creation is shifting from businesses driven
by economies of scale in production to businesses driven by
economies of scope in customer relationships. Layer in a third factor
at work the systematic and significant decline in interaction costs
that make it easier for customers to identify vendors, find
information about them, negotiate with them, monitor their
performance and switch from one vendor to another if they are not
satisfied with performance.
Marketing strategy
These shifts have broad implications in terms of marketing strategy,
branding and marketing performance metrics. To start with
marketing strategy and again at the risk of over-simplification,
conventional marketing is built upon the three Is:

Intercept target and expose customers to your message

wherever you can find them.
Inhibit make it as difficult as possible for the customer to
compare your product or service with any other options.
Isolate enter into a direct relationship with the customer
and, wherever possible, remove all third parties from the
relationship.

A different approach will be required to succeed in a business

landscape defined by the economic shifts described earlier. I
describe this marketing approach collaboration marketing and
define it in terms of three As:

Attract create incentives for people to seek you out.

Assist the most powerful way to attract people is to be as
helpful and engaging with them as possible this requires a
deep understanding of the various contexts in which people
might use your products and a willingness to co-create
products with customers.
Affiliate mobilize third parties, including other customers, to
become even more helpful to the people you interact with.

Different brand promise

Brands will become even more important and valuable in this new
marketing world, but they will be based on a very different

customer-centric promise: Buy from me because I know you as an

individual customer better than anyone else and you can trust me to
use that knowledge to configure the right bundle of products and
services to meet your individual needs. Note that this is different
from customer segment brands like Nike or Disney customercentric brands require a deep understanding of the needs of
individual customers.
New performance metrics
Given the shift in business economics defined earlier, companies
need to move from measures of performance based on product or
facility economics to measures based on customer economics. Two
key questions will increasingly shape business performance. First,
what is the average life time value of customers how much does it
cost to acquire a customer, what is the average length of a
relationship with a customer, and how much profit is generated over
the lifetime of the customer? Second, what is the 80/20
segmentation of customers which 20% of customers generate 80%
of the profitability and why? Few companies today can
systematically answer these questions
Vendor response
Vendors are responding as vendors old habits and old instincts die
hard. While there is a broad recognition among marketers that
attention scarcity is becoming a big issue, the response has been
increasing desperation to get some of that scarce attention.
Intrusive ads are appearing in more and more places projected in
lights on the sides of buildings at night, plastered on the sides of
farm animals in fields and running on video displays above urinals.
Rather than just focusing on how to get attention, vendors might
also want to consider how they can help their customers receive
attention that is important to them and not just from the vendor, but
from others that matter to the customers.
Actions to take
To navigate through this fundamental shift in marketing, CMOs will
need to recognize that this is an organizational change challenge,
something that most CMOs are not very comfortable in
confronting. To support this shift in mindset, CMOs will need to focus
on three things in particular. First, find some ways to demonstrate
impact through focused initiatives designed to demonstrate the
power of new marketing approaches. Identify specific opportunities
to be more helpful to some of the companys most profitable
customers. Find partners who can help to leverage the value of the

firms resources and then define a set of near-term value exchanges

with customers that can help build trust and earn the right to more
attention from these customers.
Second, and more broadly, change organizational roles where
necessary so there are executives that have clear accountability for
specific customer segments and sufficient influence to mobilize the
resources required to serve those customer segments effectively.
Third, adopt performance metrics throughout the organization that
recognize and reward initiatives designed to increase the life time
value of customers and deepen relationships with the most
profitable customers (while working to improve the profitability of
the rest of the customer base).
Technology revolution, globalization and market deregulation factors
are among many sculpting the new economy. These 3 factors
interact with each other at different levels creating the driving force
for the new economy. The old economy was full of analog devices,
which were running on a continuous signal wave, for example,
gramophone records. In todays world systems and devices are
running on digital technology where information is carried in ones
and zeroes. However, this digital information cannot be exchanged
between devices without connectivity through wire or wireless
networks. This connectivity is achieved through intranet, extranet
and internet.
Internet allowed players like Yahoo, Amazon, ebay to offer products
like music, books, apparel, etc. directly to customers. This move destabilized the traditional distributors and retailers causing some to
shut down their business. However, some of the players developed
online portals to offer their products and services which in turn destabilized new online players. Some of the old players were
successful with help of their brand strength and poor business
models of pure online players.
Technology revolution, globalization and market deregulation factors
are among many sculpting the new economy. These 3 factors
interact with each other at different levels creating the driving force
for the new economy. The old economy was full of analog devices,
which were running on a continuous signal wave, for example,
gramophone records. In todays world systems and devices are
running on digital technology where information is carried in ones
and zeroes. However, this digital information cannot be exchanged
between devices without connectivity through wire or wireless
networks. This connectivity is achieved through intranet, extranet
and internet.
HOW BUSINESS AND MARKETING ARE CHANGING

A recent book entitled Beyond Disruption praises companies such as

Apple, Sony, and TAG Heuer for achieving exponential sales growth
despite being established but stagnant, markets. The explanation
offered for these success stories was that these companies adopted
a clear vision of the proper direction in which to take their brands
and challenged marketing convention through product innovation,
advertising, or some other aspect of marketing.
Deregulation
Many countries have deregulated industries to create greater
competition and growth opportunities. For example- long-distance
telephone companies can now compete in local markets and local
phone companies can now offer long distance. Similarly, electrical
utilities can now enter local markets.
Heightened competition
Brand manufacturers are facing intense competition from domestic
and foreign brands, which is resulting in rising promotion costs and
shrinking profit margins. They are being further buffeted by powerful
retailers who command limited shelf space and are putting out their
own store brands in competition with national brands.
Customer empowerment
Customers increasingly expect higher quality and service and some
customization. They are more and more time-starved and want more
convenience. They perceive fewer real product differences and show
less brand loyalty. They can obtain extensive product information
from the Internet and other sources, which permit them to shop
more intelligently. They are showing greater sensitivity in their
search for value.
Privatization
Many countries have converted public companies to private
ownership and management to increase their efficiency, such as
British Airways and British Telecom in the United Kingdom.
Customization
The company is able to produce individually differentiated goods
whether ordered in person, on the phone, or online. By going online,
companies essentially enable consumers to design their own goods.
The company also has a capacity to interact with each customer
personally, to personalize messages, services, and the relationship.
Using smart software and new manufacturing equipment, catalog
house Land End put customized chinos up for sale in 2001 and is
now expanding its number of customized products. Because items
are cut to order, the company doesnt have to keep as much
inventory around.
Industry convergence
Industries boundaries are blurring at an incredible rate as companies
are recognizing the new opportunities lie at the intersection of two

or more industries. Pharmaceutical research companies once

believed to be chemical companies are now adding formulation of
new
drugs,
new
cosmetics,
and
new
foods.
Shiseido, the Japanese cosmetics firm, now markets a portfolio of
dermatology drugs. Christmas 2003 saw the convergence of the
computing and consumer electronics industries as the giants of the
computer world such as Dell, Gateway, and Hewlett-Packard
released a stream of entertainment devices from MP3 players to
plasma TVs and cam coders. The shift to digital technology, in which
devices needed to play entertainment content are more and more
like PCs, is fueling this massive convergence.
Globalization
Technological
advances
in
transportation,
shipping,
and
communication have made it easier for companies to market in
other countries and easier for consumers to buy products and
services from marketers in other countries.
Retail transformation
Small retailers are succumbing to the growing power of giant
retailers and category killers? Store based retailers are facing
growing competition from catalog houses; direct mail firms,
newspaper, magazine, and TV direct-to-customer ads, home
shopping TV, and e-commerce on the Internet . In response,
entrepreneurial retailers are building entertainment into stores with
coffee bars, lectures, demonstrations, and performances. They are
marketing an experience rather than a product assortment.
Changing technology
The digital revolution has created an Information Age. The Industrial
Age was characterized by mass production and mass consumption,
stores stuffed with inventory, ads everywhere, and rampant
discounting. The Information Age promises to lead to more accurate
levels of production, more targeted communications and more
relevant pricing. Moreover, much of todays business is carried on
over electronic networks: intranet, extranets, and the Internet.
Disintermediation
The amazing success of early online dot coms such as AOL, Amazon,
Yahoo, e-bay, E*TRADE, and dozens of others who created
disintermediation in the delivery of products and services struck
terror in the hearts of many established manufacturers and retailers.
In response to disintermediation, many traditional companies
engaged in re-intermediation and became brick-and-click, adding
online services to their existing offerings. Many brick-and-click
competitors became stronger contenders than the pure-click firms,
since they had a larger pool of resources to work with and wellestablished brand names.

From research to date, the following eleven themes have emerged

as management priorities in UK marketing practice.
1. Environmental dynamism
2. The need for change in the business model
3. Changing consumer markets
4. Marketing communications and e- marketing
5. Market research/consumer insight
6. Product and service innovation
7. Brand management
8. Marketing metrics
9. Developing a marketing orientation
10. Marketing training and development
11. Corporate Social Responsibility