Megamarketing

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Megamarketing concepts

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Megamarketing

  1. 1. DEFINITIONManagement activity that involves (in addition to the typical marketing activities) other elements of a firmsexternal environment such as government, media, and pressure groups.The PUBLIC RELATIONS element of Mega marketingfocuses primarily on businesses familiarizing themselveswith the surrounding community, prior to actuallyentering a desired market.The POWER element of Mega marketing examines themeans by which marketers go about incentivizing thirdparties, such as government organizations, in order tocircumvent entry barriers.
  2. 2. CONCEPTS• Markets characterized by high entry barriers can be called Blockedor Protected Markets.• Megamarketing takes an enlarged view of skills and resourcesneeded to enter and operate in certain markets.• Megamarketing is strategically coordinated application ofeconomic , psychological, political, and public relations skills to gainthe cooperation of a number of parties in order to enter and/oroperate in a given market.• In Blocked markets, the established Participants or approvers have made it difficult forcompanies with similar or better marketing offers to enter or operate.• Megamarketing is directed not at the primary customers, but at the third parties that impactcustomers’ perceptions and ability to buy a company’s products. These include politicians, civilservants, regulatory agencies, special interest groups, national media, and opinion leaders.• In a potential market, there are some groups opposed to a business, some which support it,and many other which are uninterested. The megamarketing campaign aims to appease orpersuade the opposition, rally supporters, and turn uninterested but potential supporters intoallies.
  3. 3. CHALLENGESAs Markets mature, Markets acquire fixed set of :Suppliers, Competitors, Distributors & CompetitorsAre supported by : Government Regulatory Agencies, Labor Unions, Banks , NGOs andother bodiesMay erect : Taxes, Tariffs, Quotas and Compliance requirements.Barrier may also include : Discriminatory legal requirements, political favoritism, cartelagreements, social or cultural biases, unfriendly distribution channels and refusals tocooperate.There are also :•protectionist tariffs•government regulations designed to favor incumbent businesses against new ones•additional regulations that limit the number of options acceptable to both buyers andsellers•non-party groups (such as reform organizations and activist groups) that reject the newbusiness•popular lack of understanding of benefits to potential buyers
  4. 4. DEVELOPMENT OF CAMPAIGN• Lobbyists are specialists at representing a company’s interests to the appropriate government officials and agencies that affect that company’s business.• Public relations refer to marketing that seeks to change the perceptions and opinions of the larger public.• Relationships with government agencies can be especially profitable in highly regulated areas, as it may enable companies to partner with agencies in the development, testing, and implementation of new regulations. • Inducements and/or bribes. In countries with corrupt governments, market access may require both initial and ongoing bribes, which must be factored into the cost of doing business there.• Political industry alliances can increase the overall power of a group of companies in order to open markets (or keep them closed for their protection); the benefits of this activity will be divided among all participants. • Political contributions significantly impact politicians’ decisions, but also carry some risk of backlash from a public that decries their use in politics.
  5. 5. ENTERING THE MARKETPepsiCo represents a textbook example of megamarketing in India (a market Coca-Cola had been pushed out of in 1977). In the 1980s Pepsi began a campaign directed at multiple levels of the Indian government, which had a variety of regulations and outright barriers that blocked made it difficult for foreign companies to enter or invest in the Indian market. Their first proposal to India involved facilitating the export of Indian drinks in exchange for the right to import Pepsi. After this was rejected in 1985, PepsiCo offered additional incentives to promote India’s economic growth. After three years of campaigning (including some 20 Parliamentary debates, 15 committee reviews, and 5,000 articles in the press), they finally obtained access to the Indian market.PepsiCo’s megamarketing efforts did not there, however. In 1990, it actually lobbied for India against proposed trade restrictions in the United States. The U.S. backed off, and PepsiCo gained further goodwill with the Indian government. The company also continued to invest in establishing wells and other clean-water drinking sources throughout India.However, the Indian government did not represent the only barrier to success. Just as recently as 2010, a political activist began a campaign attacking PepsiCo, claiming that the company served Indians poisoned drinks that they would never sell in other countries. Megamarketing efforts continue—involving now not only the government, but the Indian media and opinion leaders—in an effort to counter such attacks.
  6. 6. MARKETING v/s MEGA MARKETINGMARKETING MEGAMARKETINGMarketing Objective To satisfy customer demand To gain market access in order tosatisfy customer demand or tocreate or alter customer demandParties involved Customers, Distributors, Dealers,Suppliers, Marketing firms , BanksNormal parties + Legislators,Government Agencies, LaborUnions, Reform groups, GeneralpublicMarketing tools Market Research, ProductDevelopment, Pricing, DistributionPlanning, PromotionNormal tools + use of Power and PRType of Inducement Positive and Official inducements Positive Inducements (Official +Unofficial) and NegativeInducements ( Threats)Time frame Short Much longerInvestment Cost Low Much higherPersonnel involved Marketers Marketers + Company officers,lawyers, PR and public affairs staff
  7. 7. Soumya SinghRoll No. – 55Sec- B

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