Marketing in Times of Crisis

The world is today fighting one of the severest and deadliest viruses. It has already confined over 1 billion people in their homes in different parts of the world. Seen as a never before deadliest moments in several generations, COVID -19 has created a situation analogous to World War II when estimated 70-85 million people, accounting for almost 3% of the world population at that time, perished. Today too, every day the COVID affected count of people is continuing to go up. So are the number of deaths among them. Almost the entire world is in a lockdown causing hardships to citizens. But they have voluntarily accepted such hardships in the hope they will survive this crisis. At this time the corporate response has been one of a responsible citizen not only abiding by government instructions but even opening up their facilities for Corona (COVID19) patients, health care workers, marginal and poor people including migrant labour.
It is in such circumstances that marketing assumes a different dimension---more humane, and less ‘selfish’. Its goal goes beyond profits, customer satisfaction and market development. It has a societal role now and hence marketing now has to be societal marketing ---- one that focuses on social good, community’s involvement, engaging customers through reliable, honest ad complete information. Societal marketing, according to Philip Kotler, involves understanding the target market’s needs, wants, and interests and deliver on them in a manner that enhances customer’s and society’s well-being. This concept calls upon marketer to be ethical, socially responsible, and balance the objectives of profits, customer satisfaction and public interest. It also requires companies to be more transparent in everything they do. Internal marketing assumes a bigger role in such times as today. The CEO needs to communicate with his employees as much as he does with customers. All departments must align to the public interest and social good.
Societal marketing may be seen as a good image-building exercise but this can also enhance customer loyalty. Customers remember brands that stood by them in their crisis. Such satisfied customers are the best brand ambassadors in happy times.

Demand and supply chain management

Marketing tasks in moments like today primarily require managing demand and supply forces. Unsure of future supplies, customers have the tendency to buy more than just their usual needs and store them. This often leads to shortages in retail stores. Seeing this, customers panic leading to panic buying thereby creating a supply problem. It can lead to customer riots. A vicious cycle now sets in. More demand, more customer hoarding, supply blockades and empty retail shelves. A marketer has to reassure the market that supply chains will not be allowed to be dried up. Regular replenishments will be available. We have seen supply chain blockades. Trucks are held up on the highways as drivers have refused to ply for fear of virus and police. Companies need to work with the government to resolve such problems. At the same time, they also have to provide safety to their employees. Many banks have urged their customers to visit the branch only for emergency purposes. They are encouraging them to use digital banking route to solve their problem. They are even desisting them from using their call centres as employees are just not there.

Keeping customer safe always

Firms have to keep their customers informed and safe always. This requires customer education and providing them with information on safe options. E-delivery firms today are educating their customers on how to get contactless delivery. Zomato offers such delivery option. Extensive use of digital payments and delivery should be resorted to by firms. Online catalogues with delivery and availability status of items can help the customer decide. Auto suggestions to customers based on his/her choice especially when the product item is not available can further help in choice making. Even other retailers are providing contactless delivery. They either put all items directly in your bag and are using digital tools to receive payments.

Customer retention

In these times, customer retention rather than customer acquisition assumes greater importance. It is critical that the customer should not perceive as being left on the highway. It would be unfortunate if this was to happen. Customers retained and given a priority in service remember the firm and the marketer. This is the reason why e-retailer like BigBasket has refused new customer registration. D’mart has also decided to serve their bulk customers rather than individual customers. Loyalty must be rewarded at this time particularly and the relationship between company and customer deepened. The power of such customers is phenomenal. We all know such satisfied customer can have a multiplier effect through their recommendations both online and offline.

Customer acquisition should happen only if the firm has the capacity to serve them along with its existing customers. In such cases, the marketing communication should be clear and emphasize the firm’s capacity.

Do not lose sight of customer value

One must continue to work for customer value maximization even during these days. Firms must make all efforts to solve customer’s problems. If they are unable to do for extraneous reasons, customer should be informed and the date by which they can expect a resolution. Many a time customer will be able to solve his problem through online support from the firm. But a large part of the Indian market is not as technology literate as many other developed nations. Further bandwidth issues still prevail in India. There are geographies where only 2G or 3G connectivity is available. This hamper firm’s ability to use online mode for completing the transaction. Hence in such cases, telephonic help to troubleshoot or SMS works. Customer especially senior citizen still prefers human-assisted helpline.

One of the approaches to creating an image in the market as a responsible firm is by connecting to the cause in a demonstrable manner. In COVID times this is by providing space or using the firm’s physical facilities for quarantine purposes or for frontline health workers. Tata group has opened its hotels to the medical staff. It has made its famed Taj Mahal Hotel in Colaba and Lands End in Bandra available for Doctors and Nurses working in BMC Hospitals fighting Corona Virus. Besides the group has also committed Rs 1500 crores to fight Covid-19. Similarly, many others like HDFC Group, Mahindra, Kotak Mahindra bank WIPRO, and Infosys, etc. have come forward to donate to fight COVID. Reliance Industries have set up a 100 bed Centre at Seven Hills Hospital in Mumbai for Coronavirus patients, besides Reliance Foundation is providing free meals to people through NGOs. Similar initiatives have been taken by many other firms and celebrities like Shahrukh Khan. Research has shown that customers stay loyal to brands they see as socially responsive. In a highly competitive market, such activities create an intangible value in the form of respect and admiration for the firm.

Responsible marketing communication

Marketing communication in these times plays a significant role. It has to educate the market on how to remain safe, besides providing information on the availability of its product and services. For example, the Times of India has initiated a campaign Masking India. It communicates the need to remain safe through masking and that masks need not just be surgical one. Any cloth could be used to mask be it a woman’s dupatta or scarf or towel or a big handkerchief. It also asks its readers if they would need physical copies in which case readers can reach them out through an email. Dettol communicates on the need to wash hands properly. Louis Phillipe, a leading men’s garment and accessories firm in its SMS to its customers, urges them to do the right thing and Rise above the Rest. It takes the customer directly to its video where it h says “Take a break from Outdoors, Stay Safe, Stay Indoors, Stay apart, Fight Together.” Tata sky shows how staying at home can be a learning and entertaining. It shows how subscribers can learn to sing a song, pursue their passion, learn how to make a daughter’s hair and some dancing steps and join the family in dancing and express love. Communication can also be used to showcase the brand’s resilience through its participation in the solution. Medlife today assures its customers that they would supply medicines at their home. A fashion designer Louis Vuitton has converted three of its perfume and makeup factories in France to make sanitizer. It makes 12 tons per week all for French Hospitals.

At this time joining industry effort also to communicate safe habits is useful. The customer sees his/her brand advocating a practice and gets motivated to adopt it. Also, the firm has to communicate regularly and frequently with greater intensity. Through its communication, the firm has to be seen as being honest and transparent.

Social media is the medium that communicates far more effectively than print media. Research in consumer motivations in the use of social media has concluded that it’s the need for information, entertainment and connection to social groups that motivate consumers to use social media like Facebook, Instagram, Twitter or other community networks like LinkedIn. It's these motives that also ensure that marketer gets an assured audience. Targeting is much better so is the impact of communication as evident by messages becoming viral on Facebook or YouTube or the number of retweets. Besides social media is also more cost-efficient, an objective that all firms need to pursue in today’s times.

Pricing

Firms would now have to revisit their pricing strategies and approaches. The goal currently has to be to remain afloat. Margins are going to be under severe pressure. Firms could even face a liquidity crunch. At this time pay per use or subscription model can help the firm remain afloat. One should also consider the fact that the world will see high joblessness and unemployment as many firms especially small and medium may close. Demand may cease to exist for some products and services. The marketer will have to revive the demand for his products through innovative products, pricing and reach.

Conclusion

Finally, these times call for austerity and processes to ensure cost-efficiency. It also is the time to innovate. Firms need to plan for today for sure but equally, they have to get ready for the new world where, staying at home will be treasured, staying safe and maintaining distance without compromising on feeling of togetherness will be the new norm. Conspicuous consumption may not be a virtue. Faith may replace materialism in society. Marketing now needs to change. It should be part of the solution and not the problem.

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