Marketing and selling in tough economic conditions:

Global marketing and market trends

Prasanna Perera Marketing and Management Consultant, Chartered Marketeer CIM UK

I have been asked in many forums to elaborate on global market and marketing trends for 2010/11. For the benefit of the majority, given below are the answers in a FAQ format.

Why do you differentiate between market and marketing trends?

Market trends refer to the marketplace (suppliers, customers and competitors). Marketing trends refer to what organizations do, in terms of their activities. (Marketing mix or 4 p’s/7 p’s). Hence, the distinction between the two.

What do you observe as critical trends in global markets?

Countries across the world are in different stages of economic recovery. Hence, consumer buying power and demand for products and services will vary considerably. One thing is though certain - recovery is on the way. I believe that consumers will continue to be thrifty and be offer prone. They will look for “volume” in whatever they purchase. Indulgence in luxuries will be limited, since they will save for a rainy day.

Will social marketing and web based marketing continue to grow in popularity?

Definitely Yes. Across world markets, social networking sites are growing in popularity, be it Facebook, Twitter, MySpace etc., Many marketeers are communicating with their target audiences (customers) through social mediums. The Internet has changed the way marketing and marketing communications is carried out forever. In 2010/11 many e marketing programs across different product/service categories will continue to be implemented.

Are Sri Lankan marketeers utilizing Internet based marketing adequately?

I would say that there is room for definite improvement. Whilst some industries are using Internet marketing, others are not, probably due to lack of knowledge or lack of purpose. Websites should be utilized as a powerful marketing tool, together with the ability to build customer relationships. Intranets should also be utilized to carry out internal marketing to employees.

Do you see mobile marketing (m marketing) continuing to grow in Sri Lanka?

Definitely yes. As in the case of markets across the world, mobile devices are much sought after in Sri Lanka. Presently, there are over 14 million mobile phone subscribers in Sri Lanka. Unlike a computer, a mobile devise is available with a person 24/7/365. (24 hours, 7 days, 365 days a year). Hence, the consumer is “always on” and receptive to SMS, MMS and WAP messages/images. Marketeers in Sri Lanka must incorporate mobile marketing into their plans.

What industry sectors are likely to grow, globally in 2010/11?

Telecommunications will be a growth sector, mainly in the developing and underdeveloped countries, where there is scope for increasing the market penetration. In Sri Lanka, both the fixed line and mobile telecommunication will continue to grow. Retailing will be a growth sector, across the developed, developing and underdeveloped countries. Many new retail formats will continue to be opened as consumers will opt for greater convenience in products and services. Further, post recessionary consumer purchasing is also likely to boost retailing revenues.

Power generation, specially green energy will be a priority sector for all governments. With global warming and depletion of the ozone layer, alternate energy has become a priority. Bio fuels and other related industries will continue to boom. Hydro power and fossil fuel generated power sectors will also prevail.

Service industries will continue to grow as consumers and businesses alike, demand for higher convenience and value. Examples would include insurance, banking, real estate, mortgaging etc. The travel and tourism industry will also show gradual recovery, as consumers start travelling for leisure, after slowing down for 12 - 24 months.

Will brand grow or decline globally?

Brands have always prevailed, through periods of sunshine and darkness. Brands will remain as the greatest asset of any organization, across the globe. However, brand owners need to review their brands periodically, in terms of brand relevance, brand value (to customers), brand personality and brand equity. Manufacturer brands will continue to be challenged by retailer/private brands. (As retailers endeavour to build loyalty to their stores brands). Further, a greater deal of sophistication can be expected of B2B brand owners.

In your opinion, which industry sectors are likely to grow in Sri Lanka (2010/11)?

Tourism will be a key growth sector, with the civil strife ending. All related industries to tourism will also boom. (Domestic tourism included). Construction will also boom in Sri Lanka, not only in the North and the East but also across the rest of the country.

Power generation is another growth sector, with the aim of providing electricity to all households. Further, with the need to expand industrial output, power needs in this sector will also intensify. Besides fossil fuels and hydro power, there will be demand for more green energy. (Bio fuels, solar power, wind power etc.,).

Modern retailing will continue to flourish, as consumers strive for greater shopping convenience and choice. (Food, clothing, convenience services / products to name a few). Retailing-on-wheels may also grow in popularity.

Financial services will also grow, to support the economic development drive of the country. Banking, leasing, hire purchase, insurance and the like will be in heavy demand.

Domestic transportation will need to be improved, with accessibility opening up across the country. Hence, opportunities for providing taxi services, luxury bus services, domestic air services, and private train services are available. Sri Lankans are willing to fly across the country to save time and improve productivity.

Telecommunications will also boom, with the need for rapid contactability and interaction. Internet and related services, mobile and fixed line communication will be demanded by households and business establishments alike.

“Sri Lanka - a land of unlimited opportunities.”

“As the world limps back from a period of recession, businesses should be up and running.”