Inflation - Growth - Marketing

Marketing as i have always believed has a very clear dependence on the economics of the market.
Now lets see what is happening in India.
Inflation is highest in last 3 years. It did touch high last year but it was different,because
1> It was the growth with inflation
2>World economy was fairly stable
3>Dollar was not this weak.

This time the inflation is high at the time when Indian economy is slowing down a bit.Thats worry.
{I am making basis for Marketing Discussion :) }
Throughout the world economies and world banks are cutting interest rates so that investor confidence is maintained and in India RBI might increase the rated on 26th this month.This is not only signal that we are doing something different but also that the corporate world in India is looking at something else.

Indian corporate is still upbeat but inflation has hit them hard.Particularly brands that are into low margin business such as consumer electronics would be hit most,This is because that the cost of a unit production or procurement has gone up but the final price has to be maintained as the competition is tough. This is the point where a corporate see its break down and it all starts with reduced marketing budgets , then comes to jobs , and finally eats up the business.


Marketing Budgets that are small in this type of situation has to be most effectively used.The money wasted at this point can cost company a lot.

India been free economy have all the big brands and also local brands that serve the market.Problem comes when my production cost is almost double of yours and i also have to maintain a substantial budget for marketing as i am a global brand and u are local.This point needs immediate attention , it is important to educate consumer what are the USPs of my brand in place of local brand.

Why in this increasing cost environment consumer should pay 10$ more than the local brand.
India is a very interesting case study for Marketing because there are extremes in marketing .
One segment fully relies on celebrities and other fully depend on creativity.

Now let me link it to economics .In the environment when prices are skyrocketing the impact of celebrity would be less as compared to creative communication.this is because the celebrity usp is that consumer aspires to be him and get related to brand ,but when the share of pocket is down , moral is down thus the aspiration.

So economics will certainly measure the extent of importance of communication and marketing in a particular market.

Cheers!!

Edward Bulwer-Lytton:
"Talent does what it can; genius does what it must."