10%

20% 40%

30%

Food, daily needs, other consumables Lifestyle, Social, Cultural spending

Medical care Savings
 Shop
C/f agent Dealer Whole seller Retailer
keeper

Market

Actual `6 Buyer
cost price
Distribution ` 10
`4

40%
150% of
actual product
60% cost
For each thing We purchase, we end up paying 150% of
the Actual cost of the product to the Market!
Just STOP & think on the following questions

how much of our hard

earned money are we
Afterall, Whose Who is getting
putting into the
pockets of the Money is that? RICHER?
market/ middlemen ?

And Who is Are We doing Charity at Until when do We

the cost of our own hard
making them work, health & family
wish to continue
RICH? life? this Charity! ??
I’m sure you have heard ALL or Most of these names!!

Many more
names in the
list…
New Age
Service
Providers
Do ANY of The above Companies manufacture/ produce Anything?
If not, what do they DO?

Advertise & sell Take the price & deliver

Distribution = Profit

E-commerce is New Age model of Conventional market using the

power of the Internet and mobile Apps!!
 From conventional market, We Switched to E-
commerce! for our ‘convenience’, to save time, money,
fuel and other hassles!
But the questions Still arise !

And Who is
Afterall, Whose Again, Who is
making them
Money is that? getting RICHER?
RICHER?

Are We doing Charity Until when Do We wish

at the cost of our to continue this
convenience ? Charity! ??
Do We Actually Stop and think:
 What are we buying?
 What are its Constituents?
 Are they Useful or harmful for our body, skin and
environment – short and in the long run?
 Are Those products adhering to mandatory Regulations?
 Does the Company/ Market ‘Educate’ us?
 How Fair are they on Consumer education & satisfaction?
 Do we Get a Product Money back Guarantee?

On most occasions, our known people buy same/ similar

products due to our reference
 Do we get a share of profit made by the Company/ market?
The famous Marketing Guru Philip Kotler explained 4 ‘Ps” of
marketing
 1st P - Product: Its constituents, quality and efficiency end efficacy.
 2nd P - Place: Area where it has to be launched and sold – defines
the product 'size, packaging and promotion strategy
 3rd P – Price: at which the product would be sold!
 4th P –Promotion: which stands for a mix of tools through the
information about product would be conveyed to the ‘customers’
 Promotion includes mass-media, mid-media, Inter-personal
Communication and Social media (in today’s times)

Of the 4 Ps, the 1st 3Ps are majorly controlled by the Company but
the 4th P is majorly influenced by Customers/ Consumers
Mass media
 Companies adopted the model of Advertising
 Emphasis grew on celebrities as brand Ambassadors

Interpersonal communication
 Someone who bought and used a product referred to another
known person during talks!
 Someone who saw a new product/ change in you inquired about
the product/ change in you!
 “Subtle Advertising’ went far and wide and increased sale of
products!

Researches conclude:
 Mass media contributes to a limited extent (max. 15%) of Sales.
 Major contribution (~85%) is due to ‘reference through word of
mouth’!
Mass media still used as tools for Product promotion
Interpersonal Communication
 Chiefly utilized by E-commerce companies, in the form of written
‘reviews’ by Customers.
 Product ratings by Customer reviews, even at times over-hyped
inflated by E-commerce companies to attract new customers!

Social media marketing

 Utilizing social media viz. Facebook and many other social
networking websites & apps!

Researches conclude:
 Mass media still contributes to a limited extent (max. 15%) of
Sales.
 Major contribution (~85%) is due to ‘reference through word of
mouth’ and through social media marketing!
Have YOU ever wondered WHY Social media is giving u lot of ‘free
space’?
 You occupied a space on their site!
 Through you, your social contacts too created their own space!
 You social contacts’ contacts too created their own space!
 You & your social network expressed your varied choices through
‘Likes’ and ‘Comments’!
 Utilizing Artificial Intelligence as tool, the social media website
owner analyzed your behaviour and consumer preferences.
 Analyzed information sold to E-commerce Companies!
 You provided them a huge consumer base through your direct
and extended social network!
 As compared to Brand ambassadors (in advertisements),
Customers’ reference plays major role in product promotion &
sale.
 With Globalization, wide range of choices are available!
 In the ‘Information age’, customers have become more focused on
product quality, features, efficiency and efficacy!
 However, cheap pricing still ‘lures’!
 Companies are still lagging in terms of educating customers about
the product constituents, quality, efficiency & efficacy!
 Through Old age (Conventional) or New Age market (E-
commerce) models ~60% of Customers’ money is being pocketed
by the market!
 Through your activities on social media, you provided your huge
social network as ‘ potential consumers’ to E-commerce
companies!