What are the challenges for Marketing Managers in the modern world?

Marketing concept has gone a dramatic change since the industrial revolution. The focus from making good quality products and availability has moved to customer satisfaction by making products of customers’ choice. This concept throws forward many challenges in the world where technology is constantly evolving and making lives of individuals less hectic and comfortable. Let us go through the challenges the modern world offers to marketers-

(1) Internet age / technology revolution – the use of internet by as young as 12-15 year olds offers lot of opportunities and threats to organisations. Where internet can be used to communicate directly with costumers, the customers ask for all the product information, trial, etc. for the products. Various internet groups share their review of a newly launched product even before it is available in the market. For example, an Apple iPhone which is yet to release in India is already available in US or UK. Customers in India can get the review of the iPhone from various internet forums. Thus the marketers have to be ready with all the answers for any queries apart from making sure that the product is a success.

Technology also offers marketers opportunity to directly interact with their existing and potential customers. This enable direct feedback and opportunity to work on shortcomings.

(2) Retaining talent in the organisation – with industries mushrooming and entrepreneurial trends setting in, it is becoming difficult to retain skilled resources within the organisations. The capable staff often get offers from rival firms to join them with an increase in salary. As most of the people are ready to travel to different cities, skilful resources are lost to other firms. It is becoming increasingly difficult for organisations to give an increase in salary as it adds to the costs. Also, there is a trend of opening consultation firms where in experts prefer to be their own boss rather than working for an organisation. Most of the skilled people offer their services at certain fees.

(3) Rise in income at disposal – most of the households have moved from “lower class” to “lower middle” or “middle class” status and so forth. This is especially true in developing countries like India. This is result of free trade and organisations operating in different regions, nations and continents. This has helped in job opportunities and increase in buying power. The buyers have information available to them about product varieties and price range on the internet. They don’t even need to visit a store or an outlet to experience the product. Marketing managers have to work smartly in making a right product and influencing customers to buy it.

(4) Product variety and its substitutes – consumers are the kings in today’s market, they have large variety of products available to them. For example, a person can choose any vehicle of his choice from a number of brands, can buy a cold drink from different manufacturers from a single retail shop, can buy furniture by going through different websites from different manufacturers. They can order their product from anywhere in the world that would be home delivered to them. This creates a big challenge to a manufacturer to stand out from its competitors.

(5) Population Shift – a shift in population is taking place where many individuals are moving from rural to urban areas for making a new life. People in less developed towns with less job opportunities move to prosperous states. This offers a threat as well as an opportunity for manufacturers. The towns are mushrooming into cities with real estate prices going up.

(6) Ageing population – the population in certain countries don’t have the number of young people they had few decades ago. The young don’t settle and raise a family too often. So many countries have high number or old people. Because of health conscious lifestyle and advanced medical facilities, the old are getting older.

For example, Japan doesn’t has as many young people as India has. Recently (March 2016), A minister in the Indian parliament has claimed that there will be a time when India will not be as young as it is today. They have the highest population of youngsters between the ages of 15 years to 35 years as of now but it will not remain same in next few decades. So products appealing to youngsters who exhibit trendy and enthusiastic behaviour towards new products, will have to be produced in small proportion. There will be opportunities for manufacturers to offer goods and services for old generation.

(7) Economic threats – there are very few regional barriers to trade and competition. Organisations are encouraged by governments to invest in their country for economic growth. As the economy of a country affects the economy in other country, it poses a great threat to the organisations. The slowdown of the economy in China recently had it effects on other European countries. Similar was the case when a Mortgage company in US had to file for bankruptcy, and its effect caused major economic changes in European and Asian markets. There is a sudden fall in the currency rate, etc.

(8) Global warming – the recent decades have witnessed climate changes on a large scale. The monsoons have not been regular resulting in draught like conditions. Scientists have been warning of the implications of climate changes since long. This adversely affects the product development and marketing strategies. Organisations have to make products as per the climate of the region to ensure exact sales. With climate changes not so predictable and seasons of short duration in many regions, over production results in losses as stocks remain unsold. For example, there has not been proper sale of raincoats, umbrellas because of dry monsoons. Because of delay in winters or short duration of winters, woollen products (Industry) has faced drop in sales in western India.

(9) Rise in Customer consciousness towards environment – because of communication and intervention from governments and environmentalists, about constant warnings for preserving the environment, the new generation of buyers will is highly educated and enthusiastic about taking care of the natural environment and ecology. It leaves no choice for manufacturers but to be sensitive on these issues. It affects the production facilities wherein manufacturers have to ensure manufacturing unit doesn’t produce lethal waste, there is large-scale use of bio-degradable packaging, wrapping, etc. Organisations constantly face a threat from environmentalists who are conscious about the natural environment.

(10) Less brand loyalty – todays customers are extremely intelligent and have lot of information at their disposal about the products and their substitutes. They often don’t stick to one brand and choose a product based on price and product characteristics. They are not shy to opt for a similar product from a different brand. This poses a challenge to manufacturers as it costs more to get a new customer than losing a few.

(11) Call for ethics – In the age of social network sites where almost everyone is connected to internet, news spreads like wildfire. The organisations have to be very careful when implementing their strategies. For example, there was call for boycott of products for a European manufacturer. There was news that the manufacturers products were made by child labours in developing countries. Similarly, a global coke giant faced charges of using water contaminated with pesticides. Sometimes organisations follow deceptive pricing. It is a false advertising as “factory prices” or “wholesale prices”. Organisations should operate ethically as the brand takes a long time to create a positive image. For Example, the recent problem with Volkswagen for cheating in the emissions tests has resulted in the company taking major steps to improve its image in the global market.

(12) Customer relationship – each and every employee is in contact with the customer. Today the customer wants solution in an instant. Therefore organisations, to keep the existing market, have grievance addressing mechanism wherein a customer can even write a letter to the top management in case the queries are not solved satisfactorily. Organisations have to ensure each and every employee is trained on addressing customer queries or directing them to the right person. For example, Blue Dart has a mechanism by which a customer receiving the courier can reach out to the Vice President on their website for any complains. I personally received a bad service from their local office. The issue was escalated to the top management and the issue was addressed within hours with an apology.