Marketing IT the FMCG way
September 22, 2006
Marketing IT the FMCG way. Check it out:(Financial Express Via Thomson Dialog NewsEdge) Business has only two functions-marketing and innovation" is the marketing success mantra of Milan Kundera, a Czech novelist, playwright and poet. And yet, most technology companies limit their marketing to the tried and tested' models, even for innovative products and solutions. Technology companies expect their products and solutions to sell on the strength of innovative technology. However, not all customers understand and appreciate the intricacies of technological innovation. This is even more applicable to the small and medium business (SMB) segment, where the entrepreneur/CEO often doubles as a CIO. To successfully market to this segment, technology companies require a more focused, hard hitting, out-of-box approach that cuts through the clutter. Technology today is often the very basis of survival for business organisations, especially SMBs. Technology tools enable SMBs to improve their efficiency and hence compete effectively with lager organizations. This also strengthens their position as major contributors to India's economic growth. India has over 7.6 million SMBs, largely organised in geographic clusters, and estimated to be spending approximately $ 500 million on servers and networking technology in 2006, according to AMI Partners. Though Indian SMBs are investing in computing technology, there is a long way to go. AMI data sugg-ests that only 21% have PCs, 20% have Internet access, and only 14% of the PC-owing SMBs have local area networks (LAN). Compare this to the United States, where 93% of small businesses have PCs, 81% have Internet access, and 39% have deployed LANs. Clearly, a large untapped market exists in India for technology providers who are willing to invest in educating the market and delivering SMB focused solutions. Quick Take
Tech firms can learn from FMCG players' innovative marketing strategies Marketers can tap SMBs' clustering tendency and reach out at their doorstep This will help SMBs explore technology live and take meaningful decisions The good news is that many Indian SMBs have understood the business benefits of new generation networks and are aggressively adopting these. Broadband connectivity, in particular, is expected to play a major role in increasing the use of IP-based technologies like IP PBX, IP Centrex, VoIP and even Internet access through cellular phones and handhelds. Over time, this could well become an opportunity for technology providers to rethink their marketing strategies. Going forward, technology companies seeking to fulfill the unique need of their SMB customers would do well to focus on: Creating innovative products and solutions Adopting innovative marketing techniques Innovative products and solutions: SMB technology requirements are different from those of an enterprise and hence offering a stripped down version of enterprise-class products is not the solution. Companies need to develop SMB specific products to cater to their IT needs. And continuous interaction and feedback from SMBs is vital for successful development of such products and solutions. Innovative marketing: Traditional marketing has helped technology companies to grow business over the last decade. However, with rapidly changing market dynamics, traditional channel partner driven go-to-market strategies need to be supplemented with innovative marketing initiatives. An ideal SMB market strategy is customer centric. It involves helping customers create a sustainable competitive advantage, improve their operational efficiencies, increase their employees' productivity, and ultimately boost their revenues and profitability. FMCG companies have been known to be the most innovative in marketing strategies for their products. Technology companies can take a leaf out of their book and market complex technology products leveraging elements of FMCG marketing. Globally, technology companies have explored the benefits of using celebrity endorsements, branding exercises, technology showcasing via roadshows, seminars and workshops as part of their marketing mix. Marketers can take advantage of the clustering tendency of SMBs to bring their technology to the customer's doorstep. Network On Wheels' is one such Cisco initiative that showcases SMB specific networking technology solutions live across tier II cities. This innovative customer-doorstep' approach helps SMBs explore technology live and take meaningful decisions on technology adoption and its benefits. It also helps to increase customer involvement with products. A focus on innovative marketing across will help technology companies develop a keener understanding of their customer's pain points and render them better equipped to deliver customised solutions that offer lower TCO, higher ROI and improved scalability. As IT products become more consumer-oriented, it's only a matter of time before FMCG style marketing helps technology marketers garner higher market share in an increasingly competitive SMB market. A move in this direction will truly fuel the SMB growth engine of the country. -The writer is vice president-enterprise-marketing, Cisco Systems (India & Saarc)
Copyright 2006 The Indian Express Online Media Ltd.. Source: Financial Times Information Limited.
Related Tags: technology companies, innovative marketing, products solutions, marketing strategies, internet access, technology
Cosmos
Del.icio.us
Slashdot
Digg
BoingBoing
Furl
Spurl
Listed below are links to sites that reference Marketing IT the FMCG way:
Trackback Pings
TrackBack URL for Marketing IT the FMCG way:
http://blog.tmcnet.com/cgi-bin/mt3/mt-tb.fcgi/27434Previous blog: Palm's 1Q profit slips on 4 percent rise in sales, stock comp expenses
VoIP for Enterprise Home PageComments to Marketing IT the FMCG way
