Marketing challenges

Prasanna Perera Marketing and Management Consultant, Chartered Marketeer, CIM U.K.

The present external environment provides many challenges to marketeers, given the rising competitive threats both from Sri Lanka and other countries.

Within these marketing challenges lies great opportunities, not to mention threats. In this brief article, my endeavour is to identify the challenges faced by Sri Lankan marketeers and provide some insights on how to deal with them.

Marketing challenges

I will categorise these challenges under pricing, distribution, communication, customer, brand and people.

2.1 Pricing challenge- Many Sri Lankan marketeers are afraid to increase selling prices, believing that demand will be effected. However, this is not always the case.

There are many examples of market leaders who are also price leaders.

If price increases are required, take them. If not the quantum of increase will multiply. Sri Lankan marketeers should add more value to customers and charge them more for it. (Provided the value addition is meaningful to customers).

Price transparency is another challenge, since marketeers can no longer hide within sectors and countries.

Hence, rather than price discounting (which reduces margins), seek to incentivize trial and change customer purchasing behaviour.

Do loyalty cards really create loyalty in a Sri Lankan context? Loyalty points are fun, but do customers actually see value in them. An integrated merchant network will add value to your loyalty card.

2.2 Distribution challenge- Sri Lankan marketeers must think innovatively about distribution channels. The traditional wholesaler - retailer channels may need to be modified to suit market changes and demand patterns. The internet is slowly but surely emerging as a viable distribution channel. Marketeers need to be alive to this and examine the possibilities.

Marketeers have a great opportunity to differentiate through creative channel development and management.

Educate intermediaries to add more value, in order to create a more satisfying experience for the end user.

Multiple channel conflicts is another distribution challenge that is being faced by the modern marketeer.

Multiple channel conflicts cannot be totally avoided, but needs to be minimised.

2.3 Communicating challenge- Sri Lanka is a very media rich country, with an array of newspaper, radio, TV and magazine choices available to marketeers. The challenge is therefore, how to stretch the communication budget and the selection of the correct options.

The on-line communication channels also add to the confusion. Sri Lankan marketeers are still obsessed with the 30 sec TV commercial. Be more open minded about which media. Non targeted generic communication to everyone, will not work. The communication challenge is how to target and tailor messages to audiences, so that benefits can be highlighted and value propositions stand out.

Speak to the customer like the customer, rather than as a marketeer. There are also many communication agencies springing up like mushrooms! Ad agencies, PR agencies, outdoor specialist, event specialists to name a few. The challenge to marketeers is to carefully select the communication partners you want to entrust your business and brands. Don’t always go for the buffet option. The A’ La Carte option has merits as well. (Pick and choose the correct partners).

2.4 Customer challenge - Customers are becoming more and more demanding, with many marketeers knocking on their doors. The balance of power has clearly shifted from the marketeer to the customer. Sri Lankan consumers, although not very affluent, have high expectations. Customers are different from one another. Hence, marketeers must target with precision, which is not easy since needs and behaviours are changing rapidly. Segmentation of markets is also becoming very complex.

Sri Lankan customers don’t care about products ; they care about themselves. Hence, the challenge to marketeers is to build brand communities that customers can tap into and fulfil their needs and passions.

2.5 Brand challenge- There are many so-called brands in the Sri Lankan marketplace, but only a few truly great brands. Marketeers must build great brands if they are to sustain their growth momentum.

Marketeers must bring coherence and support to brand architectures. Corporate, product, service and ingredient brands must work better together.

Marketeers also need to manage product and brand portfolio’s actively, nurturing value creators and eliminating the value destroyers. This should be done on a regular basis, to maximise the return from product and brand portfolios.

Brand messages need to be authentic and transparent. Whatever is said by marketeers, must be done, to maintain the authenticity of their brands and offerings.

2.6 People challenge

Marketing is a human discipline, carried out by people towards other people. Hence, internal marketing is equally important to external marketing.

Marketing needs new types of marketeers. Today’s marketeers need to be extremely creative, risk taking and have business acumen. Basically, marketeers need to act as “Business Managers.”

Marketing needs a strong mindset and representation in the boardroom. There is a low marketing IQ on most boards, in Sri Lankan organizations.

The challenge to modern marketeers is to prove their worth and get elected to corporate boards. This will make their organizations more marketing savvy.

In this brief article, I have outlined the marketing challenges in a Sri Lankan context. The present marketing environment affords great opportunities together with significant challenges. By identifying and addressing the challenges, marketeers will be able to capitalize on the opportunities better.

Challenge the market, Challenge your organization and Challenge yourself. The results will follow