Sales, marketing functions merged after Net advent: Ranjan Kapur

MUMBAI: Packaged products are being marketed as services in the post Internet era! It is more about desire rather than the need factor!

These are some of the observations made by Ogilvy & Mather vice chairman Asia Pacific and executive chairman O&M India, Ranjan Kapur at BusinessWeek's CEO Insights series - "Deepening reform - embracing change and competing to win in global markets" - held at Mumbai's Oberoi Hotels today.

Brands are created in economics of plenty and the current competition era has resulted in ensuring that marketers seek the support of customers to co-create value. While addressing a session on collaborative marketing titled "How corporations and customers co-create value", Kapur said: "The Internet has played a huge role by creating a paradigm shift in the manner in which marketing is conducted. The earlier differentiation between marketing and sales has been demolished as the Net enables marketers to reach out direcly to consumers."

However, Kapur also noted that the post Internet era has taken us back to the good old days when similar structures used to exist in the absence of media such as television. "Television is a one-way medium in which half is wasted and marketers don't know which half is being wasted. The Net creates a two-way dialogue between customers and marketers," Kapur added.

Kapur added that TV sells products and services in a scenario which is different from the one in which marketers have created their strategies or R&D. Therefore, there is a strong possibility that TV doesn't deliver the results foreseen by marketers.

"Currently, packaged brands aspire to be experimental just like service brands always did. Marketers are looking out for multiple points of contact with the consumer," Kapur said. The IT revolution has enabled the creation of e-brands which encourage instant gratification for both consumers and marketers in terms of sampling, promotion and sales, Kapur said. Also, technology and WTO (World Trade Organisation) tarriff barriers have ensured that low priced products need not necessarily be called as low quality products. The key, Kapur said, is to ensure sustainable value which can be obtained by marketers over a period of time.

Kapur however cautioned marketers to avoid falling into the trap of mass media utilisation which prevents customisation. "It is imperative to recognise the importance of the last mile contact which has to be personalised. Take lessons from the nearby grocery store or the milkman who remembers personal details of the customer and never forgets to strike a rapport using simple tools," Kapur added. 

Impulse is the key driver for sales at the retail end. Referring to a recent WPP research finding, Kapur pointed out that 60 per cent of women brought more than what they planned to buy. Less than six per cent of the women stuck to the list that they made in their house before starting out on the exercise. More than 25 per cent of the women change their opinions about brands at the retail outlet.

Having said that, Kapur said that service is the cornerstone of success. When there is a disconnect at the trade or distribution channel level, there is a huge problem which might affect the company in the long run. Value for money is a key proposition which marketers must remember at all times.

Latest Reads
Star ushers in IPL's new era with a bang

Star India is all set to reinvent the Vivo Indian Premier League (IPL) 2018 by increasing fan-engagement levels and bringing the sporting spectacle even closer to cricket fans across the country. The broadcaster’s press conference in Delhi today started with Sophia, a robot, in conversation with...

Television TV Channels Sports
Zeel numbers up on higher ad revenue in third quarter

The Subhash Chandra led Indian television network Zee Entertainment Enterprises Limited reported 11.5 percent and 28.3 percent increase in consolidated total revenue and profit after tax (PAT) respectively for the quarter ended 31 December 2017 (Q3-18, quarter under review) as compared to the...

Television TV Channels GECs
Ramdev wants telecast fees waived off for devotional channels

Baba Ramdev today took a shot at the government for imposing high tax on telecasting devotional TV channels.

Television TV Channels People
Be privy to a traditional ode to eternal love and longing with 'Tum Bin 2' on Sony MAX

Sony MAX, the leading Hindi movies channel from Sony Pictures Networks will be whipping up romance this January as it brings the sequel of the 2001 hit movie, ‘Tum Bin 2’ on 19th January at 8pm.

Television TV Channels Movie Channels
IRAA Awards Now accepting nominations

In its 12th consecutive year, the Indian Recording Arts Academy Awards (IRAA) 2018 will be hosted alongside the PALM Expo 2018 at the Bombay Exhibition Centre. The awards will once again recognize exceptional skills in music, soundtrack recording and mixing in Indian music for albums and movies.

Television TV Channels GECs
Network 18 PAT at Rs 114 million

Network18 Media & Investments (Network18) reported a marked improvement in its numbers for the quarter ended 31 December 2017. The consolidated revenue (net of revenue from joint ventures and associates) for the company declined marginally by 1.8 per cent year-on-year (yoy) to Rs 3660 million...

Television TV Channels News Broadcasting
Get Intriguing Insights into the human mind with 'Meet the Humans' on Sony BBC Earth

If you think human behavior is predictable, think again. In ‘Meet the Humans’, a show on Sony BBC Earth, starting January 22, at 8pm, a trio of experts led by Dr. Michael Mosely take a microscopic look at the human behavior and discover how incredibly unpredictable and complex humans are.

Television TV Channels Factual & Documentary
TV18 profits decline in third quarter

TV18 Broadcast Ltd (TV18), the subsidiary of the Mukesh Dhirubhai Ambani-controlled Network18 Media and Investments Ltd (Network 18), reported consolidated total income of Rs 10 crore for the quarter ended 31 December 2017 (Q3-18) as compared with income of Rs 23.6 crore for the corresponding year...

Television TV Channels GECs
Applause Entertainment to produce series on 2016 surgical strikes

MUMBAI: Applause Entertainment is making all the right moves.

Television Production House Non-Fiction

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories