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R. Devarajan

THE challenge confronting most marketing organisations, now that they have been ushered into the 21st century, is how to make the transition from the orthodox forms of marketing to the ultra-modern systems, in the context of the global economy. Most marketing managers are well-versed in the conventional norms and nuances of commerce and marketing. They understand the traditional marketplace, the competitive arena, the target audience, and the framework within which they must function.

The issue which needs to be addressed now is how to shift from the domestic platform to the global-playing field; how to become custom-oriented and market-driven in the emerging cross-frontier commercial syndrome. The old models are less relevant and valid, given the conditions of an international marketplace, where one has to contend with new languages, new cultures, and altogether different parameters. That is the transition confronting the marketing manager.

By the same token, however, most managers have some idea about where they want to be in the years ahead. While it may be that their vision and perspective are somewhat hazy and handicapped — thanks to the uncertain market trends and accelerating technological changes — they are, nevertheless, fairly clear where they will be, say, five years from now.

The question is not "Where does one need to be tomorrow?", rather it is "How does one get there?".

There is no ambiguity about the destination; it is the process and modus operandi which need clarity. In this context, it is necessary to direct the focus on some building blocks, which will provide the construct. Digitalisation, information technology, and intellectual property are the three driving forces, which help to achieve this changeover (Communicating Globally by Don E. Schultz and Philip J. Kitchen).

Digital technology has had a tremendous influence on the human mind. The ability to convert almost all types of knowledge and information into digits, and to manipulate them through computers and other electronic systems has literally transformed the world beyond recognition. The range of its applications extends from design and manufacturing systems to analysing disease and providing appropriate therapeutic treatment, and to managing satellites thousands of miles up in space.

The impact of digitalisation on trade and business has been phenomenal. And, yet, as inferred from the trends so far, all this is only the tip of the iceberg. Cataclysmic changes are in store.

The second building block is the information technology; this nomenclature, which has almost become a cliché, implies all those devices, techniques, and capabilities, transmit data quickly and easily between individuals and organisations around the world. Now, consumers can literally shop the world for products and services. Online trading is rapidly becoming commonplace. World Wide Web is just a sample and specimen of a revolution-in-progress.

Historically, business organisations and even individual entrepreneurs have been assessed for wealth on the basis of their tangible assets such as land, buildings, precious metals (diamond/gold/silver) and, of course, liquid cash. Today, the concept of wealth is rather different; it is intellectual property such as knowledge, skills, experience, and capabilities of a person/organisation.

Earlier, countries that controlled, or could convert, raw materials into finished products were deemed rich. Today, wealth is created by intellect — books, art, music, movies; — these are the conduits to wealth, and thence to, power across the globe.

The marketing history hitherto, and the current marketing scene, are based and built upon the precept and practice that the producer calls the shots. The producer keeps a tight rein, and his diktat prevails. Buyers meet the sellers in the market. Buyers buy whatever is offered for sale; sellers control the supply.

This description is, perhaps, oversimplifying the system, as there has been a subsequent addition — the past several decades — in the form of extensive network of dealers and distributors in most large companies. In any case, an altogether different form of marketing set-up is surfacing in the new millennium. Though still in an embryonic stage, the emerging pattern is becoming clear: The way the marketing framework will be fathomed and fashioned is easy to envisage.

The advent of electronic communication during the last decade of the last century was the beacon for this transition in the international trade and commerce. A silent, but significant, sidelight in this phenomenon of change is that for the first time the consumer has been crowned monarch of all that he surveys in the marketplace. The dawn of the millennium has brought sunshine into the life of the consumer.

The most obvious, and radical development is the manner in which the consumer can, now, access information; this enables him to demand products and services.

A practical application of information technology to leverage his new-found purchasing power and marketing muscle is the talisman of triumph for the redeemed consumer.

Instead of remaining at the receiving end of the market at the mercy of the manufacturer, now, the consumer directs his search engine into the global arena, to procure the products of his choice, from the comfort and confines of his home or office. Such is the complexion and dimension of the transition into the millennium market.

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