Case 1 : When the product or service isn’t that attractive and you really need the market to digest it as it is,whatever it is
There are many products in the market today who are in competition directly with biggies,their product has nothing new to boast about,quality is so so,but still they are not only surviving but making good and handsome money.What is the probable reason behind this? It is none other than MARKETING.
The best example for this would be the BINGO chips.
They had nothing new.They had LAYS,one of the biggest brand in FMCG to compete.They came up with really cheap TV ads. One advantage they had is BINGO chips were relatively cheaper than LAYS.But C’mon,they had to compromise at something.And it worked!! Today,they are well set in the market!!The reason is none other than marketing.Even though the ads were cheap,still people remembered that cheapness.There were discussions out like ”you know I saw that ad today on TV,and how senseless it was!”
But the purpose was solved.The next time the same guy went to shop to buy chips and he saw that BINGO costs less,plus it has less air,more chips in the packet.Bang!!!
Other examples to highlight….Micromax Mobiles,UNINOR(it isn’t doing that good,but still,it had the chunk off the dough),etc.
Case 2 :
When you are extracting so much profit that only marketing & advertising is the way to make something worth from it
Every bottle gives a profit of 70% or more to the company.The brand has gone global,consumed in most of the countries,by this or that name. So much is the cash generated that the only way to spend it is through marketing.Obviously marketing benefits are there,but COKE won’t shut down if they stop marketing.
The biggest expenditures for these companies is their annual branding budget.
Other examples….. Airtel,Vodafone,Kingfisher,etc.
Case 3 :
Some products really don’t need marketing,the product or the service itself is enough
The product should be so essential for the customer that he himself should come to you.Word of Mouth plays a vital role role in this case.Because it is the customer satisfaction that multiplies.
ConAgra Foods Inc. came up with Instant PopCorn.The product was hit as soon as it hit the Indian markets.It was something new,it was cheap,and most important,it was a better snack.What else an Indian Customer would expect?
Other examples….Facebook,Microsoft Windows,etc