Module 5

Recent trends in marketing.

Syllabus : Relationship marketing – social marketing – on line marketing – green marketing – tele
marketing – Viral marketing – De –marketing – remarketing Guerilla marketing – Ambush marketing .

Due to technological advancement in recent years , mobile phones , social networking sites and
internet helps the consumers to interact with each other in order to learn about quality, price and other
features of different brands available in the market.
Quality, service and relationship are the three pillars of modern marketing.
Modern marketing is consumer oriented. It starts and ends with customers .
Marketing in the modern times means customer satisfaction and customer relations . The concept of
modern marketing requires marketers to analyse customers’ needs and requirements . The goods and
services are customized as per the needs and wants of the customers.
Elements of modern marketing.
 Customer satisfaction
The needs of the customers are placed at the top of marketing objectives.
 Quality.
Firms takes continuous efforts in improving the quality of goods and service as per the changing
needs of customers.
 Service.
Marketing tries to provide better service to the customers always.
 Competitor orientation.
Firms should analyse the strength and weakness of the competitor.
 Relationship.
Building long lasting relationship with customers is another aspects of modern marketing.
 Profit orientation.
Now firms are of the view that profit can be generated only by way of effectively meeting the needs
of customers.
Scope of modern marketing.
Modern marketing covers the following areas.
1) Goods.
Tangible products offered to customers ( Physical products)
2) Service.
Intangible products ( nonphysical products) offered to customers.
Eg: Insurance products, banking , service of doctors, lawyers.
3) Experience.
Here consumers are not purchasing any goods and service. But they experience them. Water theme
park , trekking.
4) Information.
It refers to production ,packaging and distribution of information to customers. Eg: Marketing of
books, study materials.
5) Persons:
Marketing of celebrities. Film actors. Marketing of musicians.
6) Events.
Companies offers various events for entertainment and mental happiness of the customers.
7) Places.
Tourism.( Kerala God’s own country)
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 8) Properties.
Intangible rights of ownership. Eg: Real estate.
9) Oraganisations .
Image of the organisation is promoted. Eg: IIM Kozhikode.
10) Ideas:
It is about delivery some relevant ideas to customers.
Eg: electricity awareness campaign by KESB.
Recent trends in modern marketing.
1) Relationship marketing.
Relationship marketing refers to the process of building long – lasting relationship with customers ,
distributors and suppliers . It is mainly concerned with developing and retaining customer relationship by
offering best service to them
Advantages.
 It helps companies to effectively retain the customers.
 It increased the loyalty of customers to the firm.
 Better mouth publicity by customers .
 Company will get suggestions and feedback from customers.
 Repeated dealings with customers.
 Increase in sales and profit.
2) Social marketing.
Social marketing is the use of marketing principles and techniques to influence the target audience
to voluntarily change the behavior of the individuals or groups of the society.
Eg: Do not mix drink with drive.
Cigarette smoking is injurious to health.
It tries to change the wrong behavior to a right behavior.
Objectives of social marketing.
 It improves the welfare of the consumers and the society as a whole.
 To protect the environment.
 To educate consumers about the evil effect of a wrong behavior or action.
 It helps consumer to select the right products and avoid unhealthy and unsafe products.
 To increase the image of the company and the brand.

3) Online marketing. ( Internet marketing/ E –marketing)

Application of the marketing principles and techniques by means of electronic media and
more specifically INTERNET. Electronic marketing has transformed the world into a small market . Here
companies create websites more marketing their products and services.
E marketing is defined as the application of the internet and related digital technologies to
achieve marketing objectives.
Advantages.
 Global reach – through internet a company can find market globally with a small investment.
 Lower cost.
 Measurable results.
The company can easily obtain detailed information about how customers use website or respond
to the advertisements.
 Fast and easy.
 Interactivity.
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 E marketing makes its possible a two way communication between the company and the
consumers . The company can directly give answers to queries made by the consumers and their feedback.
4) Viral marketing (( word of mouth marketing, Viral advertising, marketing buzz)
The concept of viral marketing is that people pass or tell what they know about the product to
others , their likes and dislikes. The objective of viral marketing is to create product awareness among
potential customers and among target market. It is called viral because product information is transmitted
from consumers to consumers. Publicity via internet , E mail, social marketing sites , blogs and other
mobile sms can generate great impact on promotion.

Advantages.
 Free advertisement
 Attract more customers.
 Increase sales volume.
 Large customers can be reached at free of cost.
 Improve brand image and company reputation.
5) Demarketing.
Demarketing is an attempt to reduce or limit the demand for consumption of a specific product or
services on a permanent or temporary basis. This method is used when it is difficult for a firm to meet the
excess demand of the product. Methods used here are increase price, reduce advertisement, withdraw
product benefits etc.
Types of Demarketing.
a) General demarketing.
This occurs when the seller attempts to reduce the total demand of the products. It trying to reduce
the wastage of natural resources.
Eg: Electricity saving campaign by KSEB .
b) Selective demarketing.
In this case , a firm discourages demand for a product from certain class of people.
Eg: Discouraging the demand of tobacco products from person under the age of 18 .
c) Ostensible demarketing.
This occurs when a firm create artificial scarcity of the product in the market to increase demand
and price.
6) Remarketing.
Remarketing is an action taken by companies to introduce a product or service to the market in
response to declining demand.
Eg. Use of new technology in computer.
Success of remarketing strategy depends on the understanding of the market factors that have
caused fall in the product demand.
Demarketing strategy is used to reduce the demand in case of excess demand .
Remarketing is used to increase demand in case of falling(low) demand
7) Green marketing.( Environmental / eco marketing.)
Green marketing is the process of manufacturing and marketing products of superior quality
without any harmful impact on the nature and end users. It is a part of corporate social responsibility. Here
the products are manufactured , packed and marketed in an eco-friendly manner.
Eg: Digital ticket by Indian railway.

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 Features / benefits of Green marketing.
 Reduced waste of production , low energy cost and use of renewable energy sources.
 Absence of any toxic materials in the production and packaging of the product.
 Renewable materials are used in production.
 Production process does not use animal to test the product.
 Eco- friendly packaging.
 Recycling of scrap products into new products.
 Consumer will get superior quality products and services.
 Customers are more attracted to green products. So increase in sales volume and profit.
 Improve the reputation and image of the company.

8) Direct marketing.
Direct marketing is a channel free distribution of products. There is no middleman between
producers and consumers . Direct marketing refers to a communication between seller and the buyer
directly.
Advantages .
 Clear targeting.
Companies can make direct communication with individual customers easily because the company
has all relevant information of the consumers.
 Personalisation.
In direct marketing company can create a personal relationship with the consumers.
 Immediate action.
In direct marketing companies can request for immediate action from a customer.
 Measurability.
The company can measure the effectiveness of a specific marketing strategy in direct marketing.
 Invisible strategies.
In direct marketing , the marketing offers are made by way of personal communication between
company and customers . It is difficult for a third party to understand the details of such communication. It
helps company to resist competition
Disadvantages.
 Success of the direct marketing depends on updation of database of the customers.
 Benefits of mass marketing is not enjoyed.
 Sometimes people see advertisement mail as a nuisance.
Types or tools of Direct marketing.
1) Direct mail marketing.
` Sending product communication and advertisement materials to the home and business
address of the consumers.
2) E mail direct marketing.
Here consumers are contacted through their e mail account. Product communication and
advertisement will be send to e mail of the consumers
3) Telemarketing.( Inside sales)
Telemarketing is a method of direct marketing in which a salesperson request prospective customer
over the telephone to purchase the products of a company. Telemarketing calls are popularly known as
“cold call” because they are not made as per the request of the recipients.
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 Types of telemarketing.
a) Inbound telemarketing.
It refers to responses of a company to calls received ( incoming calls) from the customer as a result
of advertisement , publicity or the efforts of salespersons.
b) Outbound telemarketing.
In this case , telemarketing companies directly calls the prospective customers and request them to
purchase its products.
c) Automated telemarketing.
This type of telemarketing uses prerecorded messages or calls for contacting a prospective
customer. At present companies uses interactive Voice response (IVR) technology in telemarketing.
Advantages of telemarketing.
 People cannot knowingly miss / avoid a ringing telephone.
 Direct personal communication in telemarketing motivates people to purchase.
 Consumers can easily clarify their doubts regarding the products offered.
 Customers can call companies in 24 hours in a day.
 Help desk is established to provide after sale service and settlement of customer complaints,
Disadvantages of telemarketing.
 Sometimes customers consider telemarketing calls as useless calls.
 People always try to avoid advertisement calls.
 People always consider marketing calls as nuisance.
 Frauds are very common in the field of telemarketing.

9) Service marketing.
Service marketing is the marketing of services like banking , insurance, transportation ,
telecommunication service , financial service , all types of hospital services, healthcare service.
Service is an economic activity offered by one person to another.
Characteristics.
 Inseparable
It cannot separated from its provider and from the place where it is consumed.
 Intangible.
 Perishable.
Once it is offered , it cannot be repeated exactly in the same manner.
 No ownership.
It is not possible to transfer the ownership of a service.
 Heterogeneity ( Different)
The service offered by two service providers are not identical in nature.

Service marketing mix.

In product marketing mix there are FOUR elements. – Product, Price, Place and
Promotion. But in case of service marketing there are SEVEN components. These seven components of
service marketing is known as 7 P’s such as Product, Price, Place , Promotion , People, Process and Physical
evidence.

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 1) Product.
There is no physical form for a product in service marketing . A service can be experienced , but not
tangible.
2) Price.
It depends upon the quality of service offered.
Eg: Two doctors charging different rates from patients.
3) Place.
Place depends on the nature of service offered. Place must be convenient for the consumers.
Eg: Restaurant must be located in busy street.
4) Promotion.
Promotion is used to present the range of service offered by the service providers to the clients.
5) People:
People belonging to service providing firm define the nature and quality of the service offered by
that firm.
Eg: Efficiency of the doctor in a hospital defines the service offered by that hospital.
6) Process.
Process describes the way in which the service are delivered to the clients.. It is different in two
service providing firm.
Eg: Service offered by two banks are different ways.
7) Physical evidence.
It refers to the nature of environment in which service is delivered. For giving better service
tangible elements are also needed.
Eg: Physical set up of a restaurant like parking area, well-furnished dining hall, seating arrangement .
10) Ambush marketing.
Ambush marketing is a technique of marketing in which advertiser try to connect their product with
a particular event in the minds of potential customers without bearing the sponsorship expenses of the
event. Sometimes ambush marketing creates confusion among the public about who is actually sponsoring
an event.
11) Synchro marketing.( Going together)
It is the process of adjusting the pattern of demand of a product with an ideal pattern of supply. It
attempts to make a balance between seasonal fluctuations in demand and supply .
Eg: Demand for air conditioners and fans comes down during winter season. In such situations companies
offer off season discounts and other benefits to customers to restore the demand.

12) Guerilla marketing/ advertising.

Guerilla marketing is an advertising strategy to promote products or service on streets or public
places with little money. This involves getting attention of the public . Here firm uses unconventional
marketing tactics that yields maximum result. It involves an element of surprise.
Advantages.
 Low cost
 Creative campaign
 Word of mouth publicity.
 Free publicity.
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