Principles of Marketing Report: Challenges During COVID-19 Pandemic

This report provides a comprehensive analysis of the marketing challenges that emerged during the COVID-19 pandemic. It explores the significant shifts in consumer behavior, including the rise of digital shopping, diminishing brand loyalty, and the importance of sustainability. The report examines various marketing trends, such as localization, the growth of e-commerce, and the impact on employees and brand perception. It also exposes marketing myths and presents new truths that businesses must adopt. Furthermore, the report identifies key challenges, such as reduced budgets and the need for technological adaptation, and offers practical solutions to overcome them, including strengthening customer support and managing brand reputation. The report concludes with recommendations for businesses to adapt to the changing marketing landscape and thrive in the post-pandemic world.

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Marketing
Challenges During
COVID-19 Pandemic
Principles of Marketing

Table of Contents
Executive Summary.................................................................................................................4
Introduction..............................................................................................................................5
1. Marketing Trends after COVID-19................................................................................7
1.1 Digital Shopping is here to Stay:.................................................................................7
1.2 Brand Loyalty is Diminshing:.....................................................................................7
1.3 Balancing Sustainability and Hygiene:.......................................................................7
1.4 Marketing Localization...............................................................................................7
1.5 The Rise of the Borrowed Economy:..........................................................................8
1.6 Amazon Shopping Gives Google a Run for its Money...............................................8
1.7 CTV Exceeds Cable:...................................................................................................8
1.8 Digital Audio has Surpassed Radio:............................................................................9
2. Impact on Employees......................................................................................................10
2.1 Remote Interactions Work:........................................................................................10
2.2 Integration drives results...........................................................................................10
2.3 Equity is Imperative..................................................................................................10
3. Marketing Myths Exposed By Covid-19.......................................................................12
3.1 First Old Truth: Marketing begins with knowing your customer..............................12
First New Truth: Marketing begins with knowing your customer segment..............12
3.1.1 Affordability First (32% of consumers): Living within their means and budget,
focusing less on brands and more on product functionality.............................................12
3.1.2 Health First (25%): Protecting their health and that of their family, choosing
products they trust to be safe and minimizing risks in the way that they shop................12
3.1.3 Planet First (16%): Trying to minimize their impact on environment and buying
brands that reflect their beliefs..........................................................................................12
3.1.4 Society First (15%): Working together for the greater good, buying from
organizations they find to be honest and transparent........................................................12
3.1.5 Experience First (12%): Living in the moment to make the most of life, often
making them open to new products, brands, and experiences..........................................12
3.2 Second Old Truth: You are competing with your competitors.................................13
Second New Truth: You are competing with the last best experience your customer
had.............................................................................................................................13
3.3 Third Old Truth: Customers hope you have what they want....................................13
Third New Truth: Customers expect you to have exactly what they want...............13
3.4 Fourth Old Truth: Courting customers is just like dating..........................................14
Fourth New Truth: Courting customers is just like online dating.............................14
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3.5 Fifth Old Truth: Customers must sit at the heart of your marketing strategy...........15
Fifth New Truth: Customers must sit at the heart of your customer journey............15
3.6 Sixth Old Truth: Relationships matter.......................................................................16
Sixth NewTruth: Relationships are everything.........................................................16
3.7 Seventh Old Truth: Agility is a technology process..................................................16
Seventh New Truth: Agility is a modern marketing approach..................................16
3.8 Eighth Old Truth: Your brand should stand behind great products..........................17
Eight New Truth: Your brand should stand behind great values..............................17
3.9 Ninth Old Truth: You need the right tech stack to drive modern marketing success.
Ninth New Truth: You need the right balance of factors (including your tech stack)
to drive modern marketing success...........................................................................17
3.10 Tenth Old Truth: Marketing is Important for Growth...............................................18
Tenth New Truth: Marketing is at the Center of the Growth Agenda for the full C-
suite............................................................................................................................18
4. The Main Marketing Challenges During Covid-19 and how to Overcome Them....18
4.1 Significantly Reduced Budgets.................................................................................18
4.2 Rapidly Changing Marketing Mix and Messaging...................................................19
4.3 Heightened Focus on Brand Perception....................................................................19
4.4 Increased need to Understand and Apply Technology..............................................19
4.5 Strengthen The Customer Support............................................................................19
4.6 Manage Brand and Reputation.................................................................................20
4.7 Efficiently Acquire New Customers.........................................................................20
4.8 Enable and Optimize Remote Teams........................................................................20
Conclusions.............................................................................................................................21
Recommendations..................................................................................................................22
References...............................................................................................................................23
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Executive Summary
Covid-19 has shaken the entire world. To say it'd be the understatement of this sector of
the twenty first century. None of us have been organized for what it delivered, there's no
way all and sundry may be geared up for one of these catastrophic occasions. It delivered
plenty of desired and undesired effects. The advertising international changed into as
plenty impacted as all the other commercial enterprise factors.
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The advertising paradigm were at the shift for pretty some time, as the conventional
channels had been being changed by means of social/virtual one’s. Covid-19 expedited
this transition and brought a lot of us to your doorstep and we needed to learn to go
through it.
One of the many adjustments it introduced included the exponential upward thrust in
on-line buying, virtual TV replacing cable, customers going for range instead of putting
directly to their favored manufacturers. Employees have been way greater interactive and
tasty in virtual interactions then they ever have been in actual ones. People have become
comfortable in this new manner of dwelling and it has made them a touch complacent.
Covid-19 has thoroughly changed the advertising and marketing tools and techniques.
Digital and social media marketing which nevertheless had been concept to be 2nd tier
gear have absolutely taken over conventional channels and tools. E commerce has seen a
mushroom growth with agencies either switching over to on-line platforms or making an
investment more of their resources in it.
Businesses in Pakistan which got here out on pinnacle are the ones who efficiently
altered their road map and stored cruising closer to their goal. Online stores, logistics,
meals and bakery commercial enterprise are the high benefactors who reaped massive
earnings at some stage in the Covid-19 period.
There had been many demanding situations for advertising and marketing throughout
Covid-19. The end result it even though it changed into a global disaster which ended in
loss of billions and a more incalculable lack of human existence, nonetheless it brought a
few silver lining. The advertising and marketing international and its strategies have
changed for properly and they're certain to preserve even after it's been defeated or we
had learned to stay with it.
Introduction
The COVID-19 pandemic has abruptly altered consumers’ behaviors and attitudes, upending
brands’ marketing strategies and plans. Now, roughly eight months into the pandemic in the
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US, we're just beginning to gain a better understanding of the impact of these changes in the
short and long terms, and just how brands must adapt to the ‘new normal’.
Pakistan market and its consumers have been slow to the overall transition from brick
and mortar stores to click stores. A big percentage was still hesitant and did not want to make
this transition. Businesses were still reluctant to make this shift. Covid-19 made them make
this transition faster. In Pakistan we saw how a simple food delivery business by the name of
food panda posted revenue of 40 billion PKR in Jan-Sep 2021. This allowed them to spend
almost 11-12 million on YouTube and face book advertising. Now every video we watch on
YouTube is sooner or later bound to have an ad of food panda. Now days it is almost
impossible to browse social media and not come across them. They have almost completely
transitioned from a very small traditional promotion to almost solely relying on social media
advertising. The reason being that as people was forced to stay inside and could not go to
dine at their favorite places, so food panda swooped in and multiplied like crazy.
Logistics and courier companies were another prime beneficiary during covid-19.
TCS was a main delivery partner in private sector, the biggest benefit they reaped was the
increase in demand of online degree attestation service, which became mandatory as HEC
closed down traditional method. Capitalizing on this TCS focused their marketing efforts by
emailing to their oversees and previous attested students. The rise in online shopping brought
an increase in demand for delivery services which made them shift their focus to social media
related businesses.
Bakery and confectionery industry also had a change of heart. The drive for switching
to paper/ cloth bags for grocery shopping was already implemented but was facing a very
stiff resistance from business owners. Covid-19 makes customers more sensitive and
environmentally more aware. The bigger players switched from customized polythene printed
bags to printed paper bags and started charging from the customers. Initially there was
resistance but as the kept steadfast and more importantly inculcated the cost in the price of
every bag they used. This served the dual purpose of playing the savior and earning more by
just a simple shift in their branding arsenal. Tehzeeb Bakers, Gourmet and Jalal Sons are the
best examples of this sector.
Another major change that we have seen in strategy is in clothing brands. Before
Covid-19 the big brands like Gul Ahmed, Khaadi used to shoot a TVC before launching of
their collections and then spend anywhere from 20-60 million PKR of airtime airing it on top
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tier channels. During Covid-19 they still had their TVC’s made but now they only spend a
fraction of their previous budget on airing it on TV channels. Now they spend their majority
funds on social media campaigns, using the same TVC they had shot but keeping a highly
targeted approach and target customers via social media reach.
1. Marketing Trends after COVID-19:
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1.1 Digital Shopping is here to Stay:
Physical distancing and stay-at-home customs have forced whole consumer segments to shop
differently. The dramatic rise in the adoption of e-commerce and Omni channel services sees
no sign of abating. The latest data suggests that there will be a huge increase of 169% in e-
commerce purchases, from new or low-frequency users post-outbreak. And what’s more, the
vast majority of consumers who have increased their use of digital and omni channel
services, such as home delivery, curbside pickup, or shopping via social media platforms,
expect to sustain these activities in the future.
1.2 Brand Loyalty is Diminishing:
This general change of behavior in response to COVID-19 has also been reflected in a
shattering of brand loyalties. Almost half of consumers are trying new brands, and a third is
incorporating new private-label brands into their shopping repertoire. For marketers, this
highlights the need to quickly become aware of when shoppers are migrating between brands.
The recovery cycle will favor those brands that increase promotional activity to reinforce
relationships with consumers. According to Forrester Research, business-to-consumer (B2C)
marketers will increase their spending on loyalty and retention marketing by 15% in 2021, all
the while cutting back on product or performance-based marketing.
1.3 Balancing Sustainability and Hygiene:
There will be strong intent to continue contactless activities, such as the increased usage of
self-checkout at retail. Single-use packaging will continue to be popular at the expense of
reusable packaging. However, sustainability goals will not be abandoned and fast-moving
consuming goods (FMCG) companies and retailers will stay committed to long-term de
carbonization.
1.4 Marketing Localization:
With more consumers moving out of urban areas and to the suburbs and rural regions,
localized marketing will become more prominent. Two-thirds of consumers, according to
Accenture, are shopping primarily in neighborhood stores, or buying more locally-sourced
products. Localized content and personalization will be more important than ever in order to
strengthen a connection with the audience. Localization will also accelerate marketing
automation and data mining as marketers struggle to get a better grip of ROI.
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1.5 The Rise of the Borrowed Economy:
Americans are spending their at-home time on work and domestic activities. Usage of
popular online entertainment platforms has skyrocketed. As economies reopen, almost three-
in-four consumers say that they’re hesitant to resume regular activities outside the home.
They are concerned about going to a hair salon, gym, or restaurant, but are especially worried
about shared environments, such as the office, public transportation, ride sharing, air travel,
and, generally, being in crowded spaces.
During the disruption, consumer behavior may never return to the old “normal,” even
after COVID-19 abates or conquered. Americans will continue to spend more time at home,
seeking safety. The entire makeup of our life will be reshaped. For example, many people
may reconsider staying in the area where they live and move to the countryside, resulting in
the reversal of the urbanization trend.
1.6 Amazon Shopping Gives Google a Run for its Money:
Amazon’s rapidly growing popularity outdates the onset of the pandemic. However, you
can’t ignore the drastic boom the company saw over the last year and how it’s paved the way
to increasing popularity in online shopping. In 2020, US e-commerce sales grew 44%, and
Amazon accounted for a whopping 31.4% of that growth.
It will come as no surprise that the online shopping giant has solidified its number one
spot, rounding out the year with just under $300 billion in revenue. However, what may come
as a surprise is their growing power in search.
People have long seen Google as the search powerhouse, but more consumers now
start those on Amazon than on Google when it comes to product searches. To break down the
numbers, 67% of online shoppers begin on Amazon, while 35% begin on Google.
1.7 CTV Exceeds Cable:
Over the COVID-19 pandemic, streaming platform saw a dramatic boom in subscribers and
viewers. Netflix, for example, reached 200 million paid members globally, 37 million of
whom signed on to the service in 2020.
As more streaming platforms enter the market, this trend isn’t expected to slow down. People
will continue to opt for these viewing options more and more. So much so that the
households advertisers can reach with streaming now outnumber those reachable with cable,
84 million and 78 million households respectively (according to the Trade Desk).
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Whether cord-cutters, cord-shavers, or cord-nerves, consumers opting for Connected TV
(CTV) and over-the-top (OTT) viewing is quickly growing, and advertisers have a window of
opportunity to stay a step ahead of the competition with a timely investment.
1.8 Digital Audio has Surpassed Radio:
Just as we’ve seen in the CTV vs. linear TV research, digital has reigned supreme in the
audio world, as well. At the start of the pandemic, industry experts were worried about this
channel. As most people no longer commuted, the usual time for tuning in, predictions
indicated that listenership would decline. However, the reality was just the opposite.
According to e-Marketer, time spent with digital audio increased 8.3% to 1:29 per day; and,
it’s expected to increase another 4.8% this year.
Whether people are streaming while working from home, in their car, while working out, or
as people head back into the office and that commuting window returns, digital audio is an
excellent investment for advertisers moving forward.
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2. Impact on Employees:
2.1 Remote Interactions Work:
They’re great for business. Certainly, we all acknowledge the power of a face-to-face sales
meeting or a shared cocktail. But we got so much done during the lockdown, saved so much
money on travel and entertainment, used one another’s time so much more wisely, saw our
loved ones at home so much more and reduced so much of our carbon footstep by avoiding
superfluous travel.
Employee town halls were more inclusive. Virtual conferences allowed us to
experience our favorite vendor experience from our homes. We languished in fewer airports.
And we got nearly the same business benefit through video conferencing and streaming —
the shortfall was more than offset by the new benefits of remote interaction.
2.2 Integration Drives Results:
As marketers, we have our favorite customer relationship management (CRM) tools. Too
often, they’re simply tracking targets, contacts, content and website visits. Some companies,
buoyed by pandemic successes, have begun using the data from these tools to drive the cost-
effective delivery of, arguably, the most expensive yet most persuasive form of content:
video.
Video consumption data is super powerful. You can learn a lot about your customers
and prospects from what they watched, how many times, for how long and how often they
abandoned or shared it. With artificial intelligence and machine learning, marketers can offer
recommendations of what to view next — and maybe even start their own corporate TV
channel.
2.3 Equity is Imperative:
In the pre-pandemic days, an employee town hall was typically a massive conference call.
Employees at headquarters got to rub elbows with the CEO, while other workers were
ignored, exiled to muted phones. Where was the inclusion? Why were these faraway workers
made to feel less important because they couldn’t be there in person?
Zoom and the other group conferencing apps put workers around the world on an
equal footing with team members in the central office location. Now, employees in Korea
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could be just as visible, vocal and included in an employee town hall as those in New York.
Let’s keep up the video conferencing. It helps everyone feel included, heard and valued.
Another equity issue to consider is mandatory travel. A young mother, for example,
shouldn’t be penalized for her inability to fly across the country for a four-day conference.
Using the technologies that served us so well in the pandemic, we can deliver a new kind of
employee equity.
“The remote work revolution, long in coming, was accelerated by the sudden and
severe corona virus outbreak,” Harvard Business School professor Tsedal Neeley, a board
member of Bright cove, writes in her new book, Remote Work Revolution: Succeeding from
Anywhere. “These changes have opened up a whole new scope of untold opportunities for
people and organizations across the globe.”
Many of us suffered during the pandemic. It was a painful life lesson. The world
closed up. But for business, it was also a valuable learning experience. Marketing opened up
to new ideas and made new tools work surprisingly well. It would be a shame if we all
snapped back to our less enlightened ways.
I’m a marketer, and I’ll admit our industry needed a shake-up. Let’s capitalize on it.
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