EMERGING CONCEPTS IN MARKETING

In vertical marketing, products and services are promoted within a specific industry – or
“vertical” – as opposed to the general public or “mass market.” Each vertical is a well-defined
industry, or set of enterprises, that develop and market similar products, generally in competition
with one other. Vertical marketers sell goods and services within these verticals. Vertical
marketing may also be known as niche marketing, and frequently overlaps with business to
business (B2B) marketing.
Examples of vertical markets include:

 Automotive
 Insurance
 Banking
 Real estate
 Education
 Energy
 Heavy manufacturing
 Oil and Gas
 Food and beverage
 Retail
 Transportation
 Telecommunications
 Hospitals
 Government

For example, a software company focused on producing database software solely for the retail
sector is engaged in vertical marketing. A software company working on a database program like
Excel is engaged in horizontal marketing, since the program can be used in a variety of
industries. Horizontal marketing – marketing to a set of customers across various industries – is
considered the opposite of vertical marketing.
Advantages of vertical marketing compared to horizontal marketing may include enhanced
credibility and brand recognition, messages that go further, a better return on investment, and
less competition. However, vertical marketers need to demonstrate a deep understanding of their
segment in order to convince clients about the benefits of their product.
In vertical marketing, subject area expertise needs to penetrate all aspects of the marketing mix
(product, pricing, promotion, and place). In particular, marketing messages need to address how
the product meets the specific needs of the vertical – how it will solve a common problem or
ensure regulatory compliance, for example. Marketers also need to ensure that the sales force
they work with is similarly comfortable with the vertical, and able to “talk the talk” during the
selling process.
Industry newsletters, direct mail, trade shows, and trade magazines are often important
components of vertical marketing.
Definition: A Horizontal Marketing system is a form of distribution channel wherein two or
more companies at the same level unrelated to each other come together to gain the economies of
scale.

In other words, Horizontal marketing system is the merger of two unrelated companies who have
come together to exploit the market opportunities.

Generally, this type of marketing system is followed by companies who lack in capital, human
resources, production techniques, marketing programs and are afraid of incurring the huge
losses. In order to overcome these limitations, the companies join hands with other companies
who are big in size either in the form of joint venture –that can be temporary or permanent, or
mergers to sustain in the business.

Horizontal marketing system has gained popularity in the recent times due to an immense
competition in the market where everybody is striving to gain a good position in the market
along with huge profits.

Horizontal Marketing System

Definition: A Horizontal Marketing system is a form of distribution channel wherein two or

more companies at the same level unrelated to each other come together to gain the economies of
scale.

In other words, Horizontal marketing system is the merger of two unrelated companies who have
come together to exploit the market opportunities.

Generally, this type of marketing system is followed by companies who lack in capital, human
resources, production techniques, marketing programs and are afraid of incurring the huge
losses. In order to overcome these limitations, the companies join hands with other companies
who are big in size either in the form of joint venture –that can be temporary or permanent, or
mergers to sustain in the business.

Horizontal marketing system has gained popularity in the recent times due to an immense
competition in the market where everybody is striving to gain a good position in the market
along with huge profits.
 In this marketing system, the collaboration can be between:

 Two or more Manufacturers- With an objective of making optimum utilization of scarce

resources.
 Two or more Wholesalers-With the objective of covering a larger area of the distribution of
goods and services.
 Two or more Retailers- With the objective of providing bulk quantities in a particular area.
Examples of Horizontal Marketing:

1. Nike and Apple have entered into a partnership, with the intent to have a Nike+ footwear in
which the iPod can be connected with these shoes that will play music along with the display of
information about time, distance covered, calories burned and heart pace on the screen.
2. Johnson & Johnson, a health care company, have joined hands with Google, with an objective
of having a robotic-assisted surgical platform. That will help in the integration of advanced
technologies, thereby improving the healthcare services.
Rural Marketing
Definition: Rural marketing refers to the framing and application of various marketing principles
and strategies along with the marketing mix by the companies to capture the potential market and
satisfy the needs of the people living in the remote areas of the country.

Ways of Rural Marketing

The rural marketing involves two primary elements; one is rural and second is urban. The
exchange of goods between these two markets can be understood in the following ways:

 Urban to Rural: The products manufactured in cities such as the FMCG products,
fertilizers, consumer durables, etc. are made available in the remote areas. This is termed
as urban to rural marketing.
 Rural to Urban: The goods manufactured or grown in rural areas or villages, including
crops and other agricultural products, handicraft items, pottery products, etc. are sold to
the consumers of urban areas. It is known as rural to urban marketing.
 Rural to Rural: When a rural manufacturer sells products like cattle, pottery, carts, etc. to
other villages, it is called as rural to rural marketing.

Features of a Rural Market

Low Standard of Living: The village lifestyle is quite conservative and straightforward. People
here spend more on necessities instead of luxury goods, making it very different from that of city
life.

Rural Marketing

April 16, 2019 by Prachi M Leave a Comment

Definition: Rural marketing refers to the framing and application of various marketing principles
and strategies along with the marketing mix by the companies to capture the potential market and
satisfy the needs of the people living in the remote areas of the country.

Example: One of the prominent marketing strategy adopted was Nokia’s launch of affordable
mobile phones ‘Nokia 1100’, which has a bright torch and an alarm clock. This was done to
facilitate the rural population residing in the areas where there is no electricity.

Content: Rural Marketing

1. Ways
2. Features
3. Environment
4. Reasons for Potential
5. Challenges
6. Conclusion
Ways of Rural Marketing

The rural marketing involves two primary elements; one is rural and second is urban. The
exchange of goods between these two markets can be understood in the following ways:

 Urban to Rural: The products manufactured in cities such as the FMCG products,
fertilizers, consumer durables, etc. are made available in the remote areas. This is termed
as urban to rural marketing.
 Rural to Urban: The goods manufactured or grown in rural areas or villages, including
crops and other agricultural products, handicraft items, pottery products, etc. are sold to
the consumers of urban areas. It is known as rural to urban marketing.
 Rural to Rural: When a rural manufacturer sells products like cattle, pottery, carts, etc. to
other villages, it is called as rural to rural marketing.

Features of a Rural Market

What do we understand by a rural market? What differentiates it from an urban market?

The rural market can be understood as the selling and distribution or exchange of goods in the
village or remote areas. The following characteristics will help us to understand the rural market

better:

Low Standard of Living: The village lifestyle is quite conservative and straightforward. People
here spend more on necessities instead of luxury goods, making it very different from that of city
life.

Large and Scattered Market: A significant percentage of the population resides in villages.
There are numerous villages located throughout the country, with a small group of people living
in each of them. Thus, the rural market is spread over a vast area.

Traditional Outlook: The village population tend to stick to their traditions and are resistant to
change due to low literacy level. However, the rural youth is initiating development though at a
slower pace.

Agriculture is Major Source of Income: The village population is highly dependant upon the
agricultural income for their living. In the case of crop failure, the rural people have low
disposable income.

Development of Infrastructure: The rural areas lack proper infrastructure facilities such as
appropriate transportation, cemented roads, communication network, banks, warehouses, etc.

Diverse Socio-Economic Background: Since the fertility of the land is uncertain and covers a
large geographical rural area, there is a social-economic diversity in the people of these areas.
Seasonal Demand: The seasons and stages of agriculture, influence the demand for goods and
services in rural markets. Hence they have two major seasons, namely kharif and ragi.

Prevalence of Spurious Brands: In rural areas, people are more price-conscious and illiterate.
Due to this, several fake brands penetrate these markets with cheap products that look similar to
the original ones.

Low Literacy Level: The percentage of illiteracy is quite high in remote areas. Thus,
disconnecting them with the print media and therefore, the marketers use another medium such
as radio, roadshows and nukkad dramas for rural marketing.

CONSUMERISM

Consumerism is the idea that increasing the consumption of goods and services purchased in the
market is always a desirable goal and that a person's wellbeing and happiness depend
fundamentally on obtaining consumer goods and material possessions. In an economic sense, it
is related to the predominantly Keynesian idea that consumer spending is the key driver of the
economy and that encouraging consumers to spend is a major policy goal. From this point of
view, consumerism is a positive phenomenon that fuels economic growth.

The Impact of Consumerism

According to Keynesian macroeconomics, boosting consumer spending through fiscal and
monetary policy is a primary target for economic policymakers. Consumer spending makes up
the lion's share of aggregate demand and gross domestic product (GDP), so boosting consumer
spending is seen as the most effective way to steer the economy toward growth.

Consumerism views the consumer as the target of economic policy and a cash cow for the
business sector with the sole belief that increasing consumption benefits the economy. Saving
can even be seen as harmful to the economy because it comes at the expense of immediate
consumption spending.

Consumerism also helps shape some business practices. Planned obsolescence of consumer
goods can displace competition among producers to make more durable products. Marketing and
advertising can become focused on creating consumer demand for new products rather than
informing consumers.
Advantages and Disadvantages of Consumerism
Advantages
Advocates of consumerism point to how consumer spending can drive an economy and lead to
increased production of goods and services. As a result of higher consumer spending, a rise in
GDP can occur. In the United States, signs of healthy consumer demand can be found
in consumer confidence indicators, retail sales, and personal consumption expenditures. Business
owners, workers in industry, and owners of raw resources can profit from sales of consumer
goods either directly or through downstream buyers.

Disadvantages
Consumerism is often criticized on cultural grounds. Some see that consumerism can lead to a
materialistic society that neglects other values. Traditional modes of production and ways of life
can be replaced by a focus on consuming ever more costly goods in larger quantities.

Consumerism is often associated with globalization in promoting the production and

consumption of globally traded goods and brands, which can be incompatible with local cultures
and patterns of economic activity. Consumerism can also create incentives for consumers to take
on unsustainable debt levels that contribute to financial crises and recessions.

Environmental problems are frequently associated with consumerism to the extent that consumer
goods industries and the direct effects of consumption produce environmental externalities.
These can include pollution by producing industries, resource depletion due to widespread
conspicuous consumption, and problems with waste disposal from excess consumer goods and
packaging.

Lastly, consumerism is often criticized on psychological grounds. It is blamed for increasing

status anxiety, where people experience stress associated with social status and a perceived need
to "keep up with the Joneses" by increasing their consumption.

Psychological research has shown that people who organize their lives around consumerist goals,
such as product acquisition, report poorer moods, greater unhappiness in relationships, and other
psychological problems. Psychological experiments have shown that people exposed to
consumerist values based on wealth, status, and material possessions display greater anxiety and
depression.

Industrial marketing can be defined as the marketing of goods and services by one enterprise to
another. The nature of industrial marketingis such that it focuses on marketing to other
businesses rather than individual customers. The term industrial marketing has now been
replaced and commonly known as business to business marketing or B2B marketing. To help
organizations with industrial marketing, a new market for an industrial marketing agency is
developing and seeing exponential growth in the past few years.
Scope Of Industrial Marketing

Industrial marketing provides a broader scope to businesses when compared to B2C companies.
With B2B marketing, businesses not only can connect with other businesses directly but also
with their customers indirectly. It helps create increased growth and brand recognition as
businesses can easily connect with other businesses without geographical boundaries. Let us look
at an example to understand what we mean. If you are directly marketing your products to
customers, you may find it challenging to penetrate other markets. It will require you to do a lot
of research into understanding the demographics, customer sentiments, financial implications,
and other business operations’ viability to make inroads and decide whether it is the right
decision.

Challenges In Industrial Marketing

Two of the profound challenges faced by businesses in industrial marketing are:

 1.

Online Lead Generation

Having other businesses discover you online is a herculean task today. There are hundreds of
similar businesses vying for the opportunity to be discovered by potential customers through
organic and inorganic methods.

 2.

Creating A Brand Identity

Once a potential client has discovered you online, it is necessary to provide them with a unique
experience that can help in brand retention, brand recall, and credibility. Creating an identity that
can help set the business apart is what most organizations struggle with. They get lost in the sea
of similar businesses, which limits their growth opportunities.

Global Marketing.

Global marketing is defined as the process of adjusting the marketing strategies of your company
to adapt to the conditions of other countries. Of course, global marketing is more than selling
your product or service globally. It is the full process of planning, creating, positioning,
and promoting your products in a global market.

 Home

 Magazine
  Global Marketing: Strategies, Definition, Issues, Examples
Global marketing is defined as the process of adjusting the marketing strategies of your company
to adapt to the conditions of other countries. Of course, global marketing is more than selling
your product or service globally. It is the full process of planning, creating, positioning,
and promoting your products in a global market.

Big businesses usually have offices abroad for countries they market to. Currently, with the
proliferation of the internet, even small businesses can reach consumers anywhere in the world.
If a business chooses not to extend internationally, it can face domestic competition from
international companies that are extending their international presence. The presence of this
competition almost makes it a requirement for many businesses to have an international
presence.

 Home

 Magazine

 Global Marketing: Strategies, Definition, Issues, Examples

Global marketing is defined as the process of adjusting the marketing strategies of your company
to adapt to the conditions of other countries. Of course, global marketing is more than selling
your product or service globally. It is the full process of planning, creating, positioning,
and promoting your products in a global market.

Big businesses usually have offices abroad for countries they market to. Currently, with the
proliferation of the internet, even small businesses can reach consumers anywhere in the world.
If a business chooses not to extend internationally, it can face domestic competition from
international companies that are extending their international presence. The presence of this
competition almost makes it a requirement for many businesses to have an international
presence.

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There are many benfits of global marketing, when it is done right.

 First, it can improve the effectiveness of your product or service. This is because the more you
grow, the more you learn, and the faster you learn, you become more effective at producing new
product or service offerings.
 Second, you are able to have a strong competitive advantage. It is easy enough for companies
to be competing in the local market. But there are very few companies who can do so on the
worldwide arena. Hence, if you can compete in the worldwide market and your competitors
cannot, you have become a strong force in your industry!

 Third, you increase consumer awareness of your brand and product or service. Through the
internet, consumers can keep track of your progress in the world.

 Finally, global marketing can reduce your costs and increase your savings. In focusing on
other markets, you can attain economies of scale and range by standardizing your processes – not
to mention the savings that you get when you leverage the internet!
Companies evolving towards global marketing are actually quite gradual. The first stage has the
company concentrating on the domestic side, with its activities focused on their home market.
Stage two has the company still focusing domestically but has exports. By stage three, the
company has realized that they need to adapt their marketing geared towards overseas. The
concentration moves from multinational. Thus, adaption has become crucial. The fourth and last
stage has the company creating value when it extends its programs and products to serve
worldwide markets. Definitely, there are no definite time periods to this evolution process.