Trends Impacting Marketing And The Implications Of These Trends On How Marketers Deliver Value To Customers

Posted: November 5, 2012 in Education

Trends Impacting Marketing And The Implications Of These Trends On How Marketers Deliver Value To Customers

A.Uncertain economic environment

I would counter that for many environmental problems the uncertainties are greater and more crucial to policy design and evaluation. In particular, three imprtant complication arise that are crucial environment policy, they are given in below.

1.The forst implication is that environmental cost and benefit functions tend to be highly nonlinear. In other words, the damage likely to be caused by air or water pollutionor by GHG emissions does not increase linearly with the level of pollutionemissions. Instead, the damage might be barely noticeable for low levels of pollution and then become severe or even catastrophic once some (uncertain) threshold is reached.

2.The second complication is that environmental policy usually involve important irrevesibilities, and those irreversibilities sometimes interact in a complicated way with uncertainty.

There are two kinds of irreversibilities
First, policies aimed at reducing environment degradation almost always impose sunk costs on society.
Second, environmental damage is often party or totally irreversible. For example, atmospheric accumolation of GHGs are long lasting; even if we were to drastically reduce GHG emissions.

3.Third, unlike most capital investment projects and most other public policy problems, environmental policies often involve very long time horizon. While NPV calculations for firm’s investment rarely go beyond twenty or twenty five years, the cost and especially the benefits from an environmental policy can extend for a hundred years or more.

The Uncertain Nature And Benefit Of Costs:
I claimed in the previous section that, in comparison to many public policy problems, environmental problems typically involve uncertainties that are greater and more crucial to policy again design and evaluation. Why? As I have already explain and will discuss in more detail later, environmental policy design must contend with highly nonlinear benefit and cost functions, irreversibility, and long time horizons.

Uncertainty Over Benefits:
The point of environmental policy is to bring human exploitation of environmental assets closer to socially optimal levels, thereby creating social benefits. We might impose a carbon tax to reduce the future economic impact of global warming because we expect the benefits (a reduced economic impact from reduced warming) to outweigh the cost of the policy.

The benefits over the next hundred years from reducing GHG emissions depend on.
I.Expect GHG emissions levels absent abatement;
II.How rapidly atmospheric GHG concertration will grow at the given emissions levels;
III.How high GHG cncertrations will affect global temperatures;
IV.How large an economic impact we should expect from higher temperatures;

Uncertainty Over Costs:
For some environmental problems, particularly those with more limited time horizons, policy costs are better understood and subject to less uncertainty than are the benefits. For example, we have years of experince with limits on Sox and Nox emissions from coal-burning power plants. We know the cost (and effectiveness) of scrubbers and of subsituting low-sulfur coal, and we can also infer costs from prices of tradeable emission allowances.

B.New consumer frugality

A new frugality, characterized by a strong value consciousness that dictates trade-offs in price, brand, and convenience, has become the dominant mind-set among consumers in the United States — and probably in other wealthy countries as well. Two-thirds of American shoppers are cutting coupons more frequently, buying low price over convenience, and emphasizing saving over spending. Per capita consumption expenditure has declined across demographic groups. Consumer sentiment remains weak. These trends are not going to change, no matter the pace of economic change.

Recessionary Behaviors Are Hardening
In the face of a recession that has caused two consecutive years of per capita consumption declines in the U.S. (for the first time since the Great Depression), an unemployment rate near 10 percent, and persistent concerns about the future, the frugal consumer behaviors that were first identified in the Booz & Company Fall 2008 Survey of Consumer Spending remain commonplace.

C.Marketers focus on value for the customer

Marketers need to focus more on the value proposition and less on the sales pitch, this according to a new DemandGen Report on B2B Content Preferences.

Show Me the Money – 75% of buyers would like marketers to “curb the sales messaging and “focus less on products and more on value”. Today’s more skeptical and frugal buyers want marketers to reevaluate their content strategies, focusing more on the value proposition and how the solutions can help buyers achieve business objectives and overcome challenges.

Short Attention Span Theater – 48% of buyers would like content to be more concise, taking less time to consume. The ideal length for consuming content:
• Webinars – between 30 to 60 minutes,
• White Papers and Case Studies – between 10 and 20 minutes,
• Videos, Interactive Presentations / Tools, Blog Posts –between 5 to 10 minutes,
• Infographics and Podcasts – less than 5 minutes.

Only a Matter of Trust – 60% of buyers are placing a higher emphasis on the trustworthiness of the content, particularly as to the source that created the content. To gain more trust, 52% trust content more when it includes peer reviews and user generated feedback, while 33% indicated that they trust content more when it is created by 3rd parties / analysts.

D.Not for profit marketing

Over the last 40 years, the role of marketing in not-for-profit organizations has grown sub-stantially as these organizations have realized the value of marketing in developing a strong understanding of customers and other stakeholders. Are the techniques and tools we use in commercial marketing eually releventin a not-for-profit environment, where the remit is not to make shareholders rech. It has following points.

Product – With not-for profit ‘product’ , there is typically a weaker unique selling proposition, i.e. weaker direct benefits making it more difficult to direct customer or target audienc behaviour in the way design. For example, giving to charity provides us with a sense of ‘doing goods’ but this feeling may not be sufficientto induce many people to give.

Price – This important component of the marketing mix has different connotations in not-for-profit situations. For example, in a political marketing context, what is the price when marketing a political party.

Involvement: Whereas we speak us high and low involvement in commercial situations in relation to the extent to which consumers becomes involved with a product or service in order to learn more about it during the purchasing process, the involvement in non-business situation displays more extreme tendenciees.

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