In ancient times, Arabian traders used to sell, cinnamon in Europe as the fallen feathers of the Chinese dragon. It was a good use of myth, and no one would go searching for the source. Moreover, the psychological impact of the mighty dragon and its rarity got the Arabians good value for this product that they collected from the rainforests of Srilanka and South India. Thus marketing is not a new happening. It was there, ever since trade started and will be there till trade lasts, that is probably for eternity.
Very recent research from Simon-Kucher & Partners gives valuable insight into the way the new generation of consumers thinks. Marketing needs to orient itself according to consumer behavior, and it should bloom from an understanding of consumer’s access to information and the means they have to check its authenticity. The Arabians knew that anybody who wanted to find the source of cinnamon had to make a long and arduous journey into the Indian ocean and during those days very few returned as much was unknown then. So the story worked for centuries until Europeans reached South Asia and the rest is history.
Today, marketing executives need to consider socio-psychological milieu. Imagine someone selling cinnamon today with the “dragon feather for sales” tagline. They are likely to be sued for making exaggerations and unsubstantiated claims. Most of the contemporary marketing strategies evolve from psychological analysis of the way people react to stimulus. And most of them do not consider the fact that man keeps on learning and growing. Consumers are intelligent human beings, now to make them make choices, by exploiting their psychological weak points won’t earn your business any prestige, and in the long run, as they evolve, they will despise you for tricking them.
The research by Simon-Kucher & Partners declares the rising number of keen and watchful consumers. The consumer behavior is now mostly guided by the reviews that other fellow consumers place. Consumers are more wary of cheap marketing tricks, and those who haven’t fallen will warn the fallen ones as this is what social media and various online platforms are doing, connecting human to human across the globe. They have emerged as a fraternity with the power of transparency that the internet provides them. So accept the reality, the generation of informed consumers are here. It means appealing marketing strategies than exploitative ones. Hence, the need to re-invent.
The research highlights the emerging consumer awareness of not falling for advertisements but responding to reviews. 19% of them were ready to buy high rated products even for higher prices. This is significant when considered globally. The new generation of consumer expects more ethical behavior from contemporary companies. Ratings and reviews give them a clear picture as to the veracity of value proposition it promises.
Further, satisfied consumers responded positively to the products, which urged others to buy them. So, now ethos matter more than big names. And big names need to cultivate good qualities if they want to survive.
In 2014 Flipkart an e-commerce giant from India faced public outrage when evidence showed that they tried to artificially hike prices a day before and then offered the products at original rates as a discount. The public pressure forced the Indian telecom regulator TRAI, to serve public notice against Flipkart. It is only one example. Consumer awareness is rising around the world and with ICTs (Information and Communication Technologies) spreading; the time is up for companies who believe they can survive on trickery. Franchise marketing needs to be carefully planned in the new age if they want to retain their place in the hearts of consumers.
Studies show that more than 50% of consumers are using mobile phones to access the internet. And creating a mobile app is a very simple process today than ever before. Google is pioneering the way for a smartphone-based business with its mobile-first directives. So, marketing strategies need to focus on the mobile behavior of consumers. The way your mobile site looks and impresses the customer is very crucial today.
Finally, it is essential to understand that today governments, civil societies, and activists are nurturing a generation which is more aware and informed about their rights. Marketing strategies should accept this reality to move into a new realm of ethical marketing. Companies that empower their target audience with informative blogs are more likely to command brand loyalty.
Premjith leads the Digital Marketing team at Aufait Technologies, a top-notch DMS Software provider in India. He also heads the SEO team at Mindster, a frontier mobile app development company in India. With his 4 valuable years of experience in online marketing, he helps clients expand their online presence and mushroom novel business ideas.