club catalyst. Books to make you think and act

When marketers search for new concepts and fresh ideas, they often turn to excellent books about consumers and brands. There is nothing as stimulating as reading a well-written book that explains a new marketing concept in simple terms and with case studies. Of all the books that I have read in the year that has just ended, here is my selection of the top three. These books made me think and act. I am sure you too will enjoy reading them.

Never-before Indian market Topping my list is A Never-Before World , a book written by Rama Bijapurkar, one of India’s most respected thinkers on marketing strategy. She is a keen observer of consumer India. In this book she makes the point that emerging markets such as India are a “never-before” world, because multinational businesses have never before encountered or served such markets and consumers. Here is one of her descriptions of India from the book: “A never-before world of mobile-owning, text-messaging, low to modest income people; they may not qualify as owning gadgets that can access the internet directly, but they are digitally connected and e-enabled nevertheless.” And here is another description, which holds deep meaning: “Never before has there been a market so globally connected, and so connected at the same time with an ancient past.” A country in which, as she points out, even the most modern cars are welcomed and worshipped with the breaking of coconuts and with garlands. Where else in the world will you find such a traditional welcome for new technology ?

The author goes on to make the key point that winning in such a never-before world requires new thought, and the ability to design customised “for India” products and services, rather than merely adapt global brands to local conditions. Here are two examples. Fair & Lovely, a fairness cream catering to a widespread Indian desire for fair skin, was developed by a global company, Hindustan Unilever, but specifically for India. MTV India achieved its success on the back of unique “Hinglish” (mixed Hindi+English) content, which was, once again, developed solely for our country. On the other hand, many other smart global marketers have struggled with their India strategy because they approach the country merely as a new region into which existing products from the western world can be transplanted, perhaps with some incremental modifications.

The book takes us on a delightful journey through Indian middle-class consumer truths. For instance, did you know that Indian regional language book sales are soaring because of online bookstores and rising literacy, though conventional wisdom on globalisation and increasing penetration of English would have us believe that English language editions would be the growth segment? Each chapter also helpfully highlights implications of many of these insights. This book gave me several actionable ideas, and a never-before perspective of what it will take to succeed in India.

New consumer mind Another brilliant consumer psychologist and author, Kit Yarrow, helps us dig deep into how consumers behave in the modern age. Her book Decoding the New Consumer Mind , delves into how and why we shop and buy in today’s transformed world. I read this book for several hours at a stretch while travelling, engrossed in its fascinating observations and insights. Perhaps because I was so absorbed in its ideas, I lost my first copy of the book on that journey, which has never happened to me before!

Yarrow makes the point that three big socio-cultural changes — technological, social and emotional — have begun wielding huge influence on consumer behaviour. She begins with technological changes, and claims that our extensive use of technology has virtually rewired our brains, creating a whole new set of emotional needs. In this new world, marketers who use “technovation” — the incorporation of technology and innovation into their products and services — are seen as smarter and cooler, and their products are viewed as superior. As she points out, while not every product has an intrinsic technological component, every product can still use technology to appear fresh and premium. For instance, she quotes the story of a restaurant in Atlanta “which has not changed its menu in thirty years, but which saw a 30 per cent uptick in wine sales after it put its extensive wine list on iPads.” Or the fact that consumers have new lenses through which they develop trust. Take the example of a 30-something online shopper, Joan, who tells the author — “I don’t trust websites that don’t include product reviews. What are they trying to hide?”

The book goes on to also describe the sweeping social and emotional changes that are transforming millions of consumers. These include a widespread sense of isolation and “me” centricity, leading to more guarded and self-protective behaviour. And intensified emotions amongst consumers, because the modern world has made all of us a “bit crankier, edgier and more anxious.” Therefore, the author says, consumers fear that they will miss out on bargains, and also seek shopping experiences which make them feel more in control.

This wonderful book made me realise that the motivations and behaviours of consumers are changing very fast. Marketers have to understand these changes, and find new strategies for connecting with these rewired consumers.

Death of competitive advantage My third book of the year is The End of Competitive Advantage , authored by Rita Gunther McGrath, a Professor of Strategy at Columbia Business School. This book has a central, but startling, thesis — that the idea of “sustainable competitive advantage”, which built famous brands and businesses in the past, is increasingly irrelevant. On the other hand, the new path to winning is built by “capturing opportunities fast, exploiting them decisively, and moving on even before they are exhausted.” The author calls this the notion of “transient competitive advantage”.

The brand names and stories she quotes to buttress her argument are well known. Blackberry. Blockbuster. Circuit City. Kodak. And many others. All great names that have fallen, and she attributes their fall to practices that are designed around the concept of sustainable competitive advantage. On the other hand, there are brands and businesses which have continued to grow rapidly and flourish by “riding the wave from one transient advantage to another”. Here are some of them. Fuji. Tsingtao Brewery. Yahoo! Japan. Atmos Energy. And our own HDFC Bank.

This is a very readable book which offers business strategists and marketers a clear roadmap for how to stay vigilant and reinvent your offerings in today’s increasingly fast and uncertain world. I found it an inspiring and refreshing read, even as it provides a good guidebook for competing successfully in the future.

Marketing Myopia, revisited I conclude my list of top marketing readings of last year with a timeless article. Marketing Myopia by Theodore Levitt was first published in the Harvard Business Review over 50 years ago, in 1960. When I read it once again last year for perhaps the tenth time, and more than 50 years after it had been written, I found it remains as important and relevant as ever.

This article asks us the famous question “What business are you really in?” and asserts that the correct answer to this question provides marketers the growth insights for the future. It also introduces the most influential marketing idea I have ever come across: that marketers will eventually do far better if they focus on understanding and meeting the needs of their customers, rather than on selling them products. This is, of course, a well known truth today, yet we forget it ever so often. Happy New Year, and happy reading!

Harish Bhat is also author of Tata Log: Eight modern stories from a timeless institution. These are his personal views. bhatharish@hotmail.com

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