Marketing Is Business
In the dynamic realm of marketing, adaptation is not merely a choice but a necessity. The past few years have witnessed a rapid transformation in the marketing landscape, driven by technological advancements, shifting consumer expectations, and global events such as the pandemic, war in Europe and other uncertainties. As these factors shift, marketers find themselves at a crossroads, compelled to adapt to new paradigms.
Creative Resilience of Marketers
A Dentsu Creative report brings to light a juxtaposition which is a world where artificial intelligence (AI) looms large, threatening to overshadow human creativity, yet a staggering 73 per cent of India’s marketers staunchly believe in the indomitable prowess of the human imagination. This belief signifies that, despite AI’s growing prominence, human creativity remains a bedrock in marketing's ever-evolving landscape.
The report reveals some of the most prominent concerns among marketers relating to owning customer relationships, responding to changing consumer behaviour, keeping up with changing technologies, representing increasingly diverse audiences, and responding to climate crises.
Rajesh Jain, MD & CEO of Lacoste India, says that today’s customers value more than just digital experiences. He identifies three key factors namely collection, care, and convenience, as pivotal in attracting and retaining customers in the modern era.
In an age where technology and human ingenuity must coexist harmoniously, marketers are proving that adaptability, creativity and a customer-centric approach is the key to thriving in the evolving world of marketing.
Experience-Driven Marketing
In a world where experiences matter more than ever, 87 per cent of marketers concur that brands are constructed through experiences, according to the Dentsu Creative report.
Today’s consumers demand not just products or services but memorable, meaningful interactions. Meeting these expectations requires bridging the gap between technology and humanity. Brands that can effectively merge these realms to create lasting connections with their customers.
“Marketing today is intrinsically linked with business itself. The measurability of marketing efforts is increasing in the digital age, which provides unprecedented insights into the impact of actions on business outcomes. At Lava, we prioritise prudent marketing strategies and fiscal responsibility,” says Sunil Raina, President at Lava Mobile.
Navigating the Changing Tides
More than eighty per cent of marketers agree that technologies such as live streaming are blurring the lines between content and commerce, heralding a new era in marketing. Additionally, 58 per cent of marketers are focusing on infusing moments of joy into their campaigns, recognising that advertising today must entertain amid a sea of bold promotional messages.
K.J. Jawa, Chairman & MD, Daikin India & Member of Board, DIL, Japan, emphasises the pivotal role of effective marketing in sustainable growth. “Customer-centric values, pricing power, brand resilience, repeat purchases, cost efficiencies, profits, partnerships and shared objectives in business interactions are very important and extend beyond mere strategies to forge meaningful connections,” he advises.
Jawa’s perspective goes beyond just business strategies. He recognises the essence of every interaction as a connection between individuals. He says, “Human-centric view extends to the company’s relationships with government bodies and non-governmental organisations, where partnerships are formed based on shared values and objectives.”
Purpose-Driven Marketing Conundrum
As the marketing landscape shifts toward purpose-driven strategies, 69 per cent of CMOs acknowledge that there’s a risk of losing sight of the art of selling amid this focus on purpose. Balancing purpose with the bottom line is a delicate dance that modern marketers must master to thrive.
Jayen Mehta, Managing Director, Amul (GCMMF), highlights the brand’s humorous and topical campaigns that resonate across generations, fostering familiarity and trust. “We have also seen how technology and data-driven decision-making has helped Amul weathered the challenges posed during the pandemic,” he adds.
A Future with AI
In contrast to other markets, India has rapidly embraced the digital landscape. With the widespread use of mobile phones, consumers in India have extensive exposure to a wide range of products and services. In the Indian context, meaningfulness entails seeking greater access, control, and simplicity in the overall experience. This doesn’t imply that brands cannot align with causes.
AI is poised to shape the future of advertising and marketing, offering efficiency and innovative possibilities. Yet, doubts persist regarding its ability to evoke genuine emotional responses from customers.
Technology can address critical challenges, such as providing clean drinking water to millions in India, solving complex problems and extending services to underserved communities. “Technology is one of several tools used by companies to assist in problem-solving process which entails acquiring and analysing data before proposing solutions to a business challenge,” says Rakesh Kaul, MD & CEO of Livpure.
According to reports, 81 per cent of people believe that customers will still be willing to pay a premium for human-created content. This shows the enduring value of human creativity in marketing, even as AI gains prominence.
Cookie-less Future and Data Analytics
Consumer privacy concerns are far from new, but various incidents of customer data misuse have intensified calls for reform. In response, influential tech industry leaders such as Google and Apple have proactively embraced fresh customer data privacy initiatives, setting the stage for others to follow suit. These policy shifts have led many experts to predict the eventual demise of the prevalent tracking cookie, which has long been the key to targeted marketing campaigns.
To these developments, marketers are now faced with the imperative to craft novel digital marketing strategies tailored to the forthcoming ‘cookieless’ era. “The transition to a cookie-less future is prompting marketers to establish transparent and considerate customer relationships. The shift encourages brands to handle data more responsibly, placing an emphasis on privacy and thereby fostering trust, loyalty and robust customer relationships,” notes Pradeep Kumar, CEO of Neil Patel Digital India.
The increased privacy in a cookie-less world would naturally create the challenge of effective data collection and analytics. Kumar proposes that building consumer relations and fostering a certain level of trust with your customers would prompt them to share personalisation information willingly.
Brands can further use AI and machine learning to effectively use this data and in turn, better cater to specific personal consumer needs. Transparency in data collection and usage is key to maintaining trust with consumers.
With a focus on first-party data, contextual advertising, user behaviour analysis, predictive analytics and cross-channel integration, businesses can continue to deliver personalised, relevant experiences while respecting user privacy.
Creativity and Technology
Dentsu Creative’s 2023 Global CMO report, indicates that while AI and technology are advancing rapidly, it is evident that the human touch remains irreplaceable in fostering creativity, building meaningful brands and creating memorable customer experiences.
Citing a report from UnFold Labs, Kumar points out that AI is expected to recognise human emotions and will play a role in just under 50 per cent of the online advertisements one encounters by 2024. He also draws attention to the growing significance of omnichannel marketing, where all channels are interconnected, leading to personalised customer experiences. He highlights that loyalty is a function of memory and the role of AI in analysing data for personalised messages.
In a world where AI threatens to steal the spotlight from human creativity, it is reassuring to see that a massive 73 per cent of India’s marketers firmly believe that Generative AI will never outshine the boundless brilliance of the human imagination.
According to sources, the most commonly used technologies that marketers claim to be leveraging today include social commerce at 35 per cent, chatbots for CX (customer experience) at 28 per cent, virtual brand properties such as avatars and idols at 28 per cent, and virtual reality at 27 per cent.
Brand Meaningfulness
In this backdrop, the need for building meaningful brands becomes more accentuated. “Brand meaningfulness extends beyond functional equity to personal and collective equity. Today, consumers are more discerning and seek brands that align with their values,” states Mohit Joshi, CEO of Havas Media Network India.
The Havas report reveals that 65 per cent of people are tired of brands pretending to care about social issues solely for profit, highlighting the growing importance of authenticity and social responsibility in marketing. It also indicates that consumers have shifted their perspective from cynically viewing brands ‘purpose-washing’ to conducting a more introspective and personal assessment of the relevance of the brand's purpose.
As per the ‘Meaningful Brands Research’ conducted by Havas, people would not care if 73 per cent of brands disappeared tomorrow. This is a number that will cause concern for large brands.
Marketer’s foremost concerns for the future revolve around five key factors. They include establishing a strong customer relationship, adapting to evolving consumer behaviours, staying abreast of cutting-edge technologies like AI, effectively representing diverse audiences, and addressing the pressing issue of climate change.
A marketing reset is afoot as a response to the evolving landscape of business and consumer behaviour. Sustainability, data privacy, inclusivity, post-pandemic strategies and AI-powered personalisation are all key components of this transformation among others. Businesses that seem to embrace these changes, adapt to new regulations and prioritise ethical marketing practices will prosper in the marketing landscape.
The future of marketing is a fusion of technology and humanity, where brands connect with customers through meaningful experiences while demonstrating their commitment to a better world.
QUOTES
Rajesh Jain, MD & CEO of Lacoste India
“Today’s customers value more than just digital experiences. Three key factors that are collection, care and convenience are pivotal in attracting and retaining customers in the modern era.”
Sunil Raina, President at Lava Mobile
“Marketing today is intrinsically linked with business itself. The measurability of marketing efforts is increasing in the digital age, which provides unprecedented insights into the impact of actions on business outcomes. At Lava, we prioritise prudent marketing strategies and fiscal responsibility.”
K.J. Jawa, Chairman & MD, Daikin India
“Customer-centric values, pricing power, brand resilience, repeat purchases, cost efficiencies, profits, partnerships and shared objectives in business interactions are very important and extend beyond mere strategies to forge meaningful connections.”
Jayen Mehta, Managing Director, Amul (GCMMF)
“Amul’s humorous and topical campaigns resonate across generations, fostering familiarity and trust. We have also seen how technology and data-driven decision-making has helped us weather the challenges posed during the pandemic.”
