Marketing in Transitional Economies

An important aspect of globalization is the increased participation of developing economies in the global economy both as marketers and producers of goods and services. The increased integration in global economies has meant change in organizational landscapes as well, thus necessitating the organizational transformation to deal with new competitive dynamics. In this article, we examine the changing role of one of the most important and yet the most undermined function in business today – MARKETING.

Since the opening of the economy in India in 1991, the role of Marketing is marked by change, contradiction and confusion. In short, all the problems those are typically associated with a concept in transition. And for most parts marketers themselves are to be blamed for it. It is the fault of the function that has simply lost its bearings in this rapidly changing world.

To begin with, the role of Marketing has become very diffused and all-encompassing. And this trend is evident in all organizations around us. In some organizations, marketing equals communication and PR while in some others it includes product development and in yet some others, it just means distribution. In addition, the definition of Marketing has also been understood to mean various things such as promoting, selling, positioning, targeting, branding, innovating, and much more. It is this fluidity in the meaning of marketing that is both its source of power and its undoing--it can change rapidly to leverage changes in the business environment, but it can also become bogged down in dead-end paradigms that languish for years. Ironically, while one of the key deliverables for Marketing is the ‘positioning’ of products/companies, it has failed to sharply position itself as the dominant ethos of the firm.

In an increasingly globalized economy there are some basic fundamentals of marketing that need to be re-visited and re-iterated for it to become the strategic driver of growth in any organization.

Customer vs. Evangelist Approach:
Put the overall customer experience far ahead and at the helm of every strategic decision of the organization, be it product, price or distribution. Marketers need to be aware and on top of new buyer reality. The focus clearly needs to be customer-centric activities – customer service and delivery, easy access, post-purchase satisfaction and overall customer experience as the most critical aspect of their job ahead of tactics like advertising and promotion. The emphasis needs to be on offering solutions that aim towards creating loyalty and goodwill in the long run and thereby converting customers into evangelists. This would make their job far simpler as evangelists would become the spokespeople for the product and that too at no extra cost.


Brand vs. Business Approach:
Marketers need to ensure a deeper influence in the organization through better integrated business, brand and marketing strategy, in order for the business goals to be achieved. The myopic approach to brand building limited to advertising and promotions needs to be up scaled with a larger business perspective. And hence, all decisions related to products, pricing and brand portfolio strategies such as brand extensions, variant mixes, etc. should be aimed towards boosting revenues and driving growth.


Marketing vs. Selling:
Great products no longer are enough and strengthening the sales force is not the answer to sales growth. The solution lies in effectively marketing the product. Marketing must stimulate demand and create momentum for the brand. In a society of abundance marketers must serve a role keyed to excess supply rather than excess demand. In such a scenario it is easy to fall prey to day-to-day pressures of sales and resort to short term tactics that are counterproductive for long term brand health. Marketers are constantly challenged to demonstrate the fact that marketing is an objective and quantifiable function and most influential in delivering medium to long term results.

Cost vs. Investment Approach:

Investment in Marketing is quite often viewed as a “discretionary expense” – atleast more discretionary than other line items on the budget. Many companies focused on bottom lines argue that profits are most rapidly created through cost cutting and reduced marketing investments. That’s why at difficult times the first one to face the axe is always the marketing budget.
The reason for this is most marketers are not able to provide measurable returns on investment directly co-related to business growth. Marketing has to take the onus of a better understanding, creating and delivering on customer focused growth strategies that grow revenues while also improving returns on investment.


Marketers today need to evolve from the traditional approach to marketing which was governed by product, place, price and promotion. This tenet was driven by the needs of the business – a seller’s approach. This needs to shift to a buyers approach keeping customer needs at the centre of all marketing strategies.

Marketing must show its prowess in understanding and leveraging its knowledge of the customer and what motivates the customer’s relationship with the brand. Its marketing that brings the insights that must be leveraged across the customer touch points – whether they are owned by the sales team, customer service or business operations – to ensure the business attains and maintains its superiority.

To that end the marketing mantra needs to evolve to the 5 I’s for any marketer to be effective: A relevant Insight, A Powerful and Unique Idea, A Breakthrough Innovation, A 360 degree Implementation and A Seamless Integration. This will ensure success in today’s dynamic, competitive business landscape.
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