World Monitor Magazine WM_5 | Page 42

EXPERT OPINION The future of marketing Onder Kilic, Marketing Director, Ramstore Kazakhstan LLP Retail trade is changing in accordance with new trends and technologies. Not so long ago, in the recent past, marketing advertised sales, promotions and commercials. Retail traders put ‘profit’ at the center of their strategy. To make a profit, retailers needed more sales. To have more sales, retailers have tried to catch customers with huge discounts and some other promotions. This contest was the cause of price wars, and the price war began to put pressure on producers, as retailers always offered discounts on products. It begins to affect the quality of products. Our enterprises simply win and win. When producers begin to lose profits, they have to find a way to compensate their losses. So, the changes began slowly, and in the end all the shelves were full of bad quality products. However, this did not work. When the X Generation appears on the scene, the game starts to change again. Generation X started a survey about the quality and price of the product at the same time. This pressure pushes retailers to put ‘customers’ in the center. Companies that built their strategies not on endorsement or profitability, but on customer expectations, began to win in the medium and longterm. The change started by the X Generation has become an evolution giving the Y Generation its economic freedom. New trends, competition and technology encourage retailers to adopt new strategies. It's not enough just to produce the product, to promote it, and it's not enough to put it on the shelf, you need to persuade customers to use your products. How? What are the needs of the client? How can we turn our client into the ‘next big thing’? What is the next hot trend in retail? 40 world monitor Here are some trends that definitely will have the greatest impact on marketing in the future. • Transparency will become the core of customer loyalty. Customers want to know what they consume. Writing ingredients is not enough. Consumers want to understand if it is healthy or nature friendly. Does the manufacturer have a fair trade certification? Currently, customers are seeking more interaction with their brands. This trend will continue as customers become more demanding in their expectation of transparency. New research shows that the price has become the third priority for customers. • Mobile is going to become the center of marketing. Smart phones and tablets will become one of the prime factors impacting the marketing world. Brands will be able to set up more personalized relationships with their customers by leveraging the power of the mobile. • Social responsibility will always be on the minds of customers. Especially new generations are very sensitive about community health and the future of the world. Starting from production to packaging, every step is important. From online reviews, to social media posts and blogs, this means there will be a strong need for brands to create a positive impact in their consumers’ minds. • Study and work for everyone. Some retailers attempt to define their brands as luxury, medium level or cheap. New research shows that consumers care about quality more than abrand name. If the products are of good quality and the manufacturer is sufficiently transparent,