Management (Emerging Trends)

Product hybridisation
Definition - When two completely different products combined together to form a new
product.
E.g.- Dominos Burger Pizza - Combination of burger and pizza
Dark Fantasy biscuit – Combination of chocolate and biscuit
Cadbury Dairy Milk Silk Oreo – Combination of biscuit and chocolate
Nestle KitKat – Combination of Chocolate and wafer biscuit
Amul Ice cream sandwich
Ceiling fans with lights
Types of product hybridisation: -
1. Flexible bundles-
Complimentary to each other (without scanning we can’t photocopy)
Independent of each other (can be sold separately i.e. it’s not necessary for scanner to work
with printer only)
E.g.- Printer, scanner, photocopy (if we combine them)
2. Peace of mind bundles –
Not complimentary
Independent
E.g.- KitKat, toothbrush with a tongue cleaner
3. Multi benefit bundles –
Complimentary (eraser is not reqd. if a pencil is not there)
Dependant
E.g.- Pencil with an eraser on it
4. One stop bundle –
Not complimentary (camera and smartphone can function without one another)
Dependant (Phone not working properly then camera will not function properly)
E.g.- Smartphone

Parameters on which differentiation is made–

1. Dependency - whether the two products are dependant or independent of each other

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2. Complimentary - whether they are complimentary or non-complimentary of each other

Difference between product modification & product hybridisation

Product modification
 One product that is modified i.e. product remains the same but it comes out with
different variants.
 Core product remains the same.
 Degree of change is lower.
 E.g.- Different variants of Maggi
Product hybridisation
 Two completely different products combined to form a new product.
 Altogether different product is formed.
 Degree of change is higher.
 E.g.- Knorr soupy noodles

Advantages of product hybridisation:

1. Lack of competitors are available (Product hybridisation helps in creating an entirely new
product because of which there are very less competitors available in the market which can
compete with the product)
2. Utility of products increases as the same product is catering to the different needs of the
customers at the same time.
3. Target market segment increase for the organization as the same product is catering to
different market segment
4. If one segment is not doing well then, the other segment can compensate for that particular
segment.

Customer retention
Definition 1 – Customer retention refers to the activity & actions companies and
organizations take to reduce the number of customer defections (means the customer should
stay with the org for a longer period of time)
Customer defection – Customer defection is the loss of customer to a competitor (and not
when customer stops using a particular product).
Definition 2 - The process of engaging existing customers to continue buying products from
the organization is called customer retention.
Definition 3 – Customer retention is the collection of activities a business uses to increases
the number of repeat customers & to increase the number of repeat purchases.

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Reasons to defect:
With respect to organization –
1. Technology
2.
3.
With respect of employees – the attitude of employee might also force the customers to shift
to its competitors. Reasons:
1. Apathy – not caring about the customers (not concerned about the customers i.e. what
the organization is doing, is doing perfectly)
2. Brushing off – not taking the other person seriously or not paying heed to the other
person
3. Coldness – completely indifferent behaviour towards the other person (not at
all…………………….)
4. Robotism – the customers are simply treated as inputs for a particular process
5. Run around – making the customers to run around and to do a lot of things
Customer retention strategies
1. Complaint management strategy – if the customers have a complaint then how the
organization is going to tackle that complaint. Org. should have a
a. Visibility -
b. Accessibility -
c. Responsiveness – The person to whom the customer has gone to register the complaint
should register that complain.
d. Customer focus approach – The organization focus should be on redressing customer
complaint. Organization should look complaint from the customers’ perspective.
e. Accountability – There should be one person accountable to redress those complaints.
Otherwise one person will shift this burden to the second and second to the third.
f. Continuous improvement – Organization should continuously improve its complaint
redressal mechanism according to time & need.
2. Onboarding programs – Teaching new customers how to use the product by sending out
people, through handbooks, apps etc.
3. Customer feedback loop – Try to conduct surveys to collect data about the satisfaction of
the customers. And from that data trying to identify lacunas that the customers are facing.
(Customer feedback – Customer is coming to the organization to give the feedback.
Customer feedback loop – Organization reaches to the customers for their feedback.)

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4. Communication calendar – Try to reach out to the customers to take the
recommendation. Taking review of the customers at different periods.
5. Customer loyalty programs – Rewarding the customers so that they stay for a longer
period of time.
6. Feedback mechanism –
8. Customer advisory panels – The panels of loyal customers are formulated to give
suggestion/ recommendations regarding quality, product features. The organization use their
recommendations to further improvise their product & services. They could be volunteers or
paid for their recommendations.
9. CSR programs – It helps in enhancing the image of organization towards the society.
10. Company newsletters – Through these the organization informs the targeted customers
their promotional offers/strategy, activities.
11. Key performance indicators (KPIs) – The org. need to continuously improve KPIs
around the customers. How- by improving response time, quick redressal mechanism, by
improving conversion rate etc.
Conversion rate – converting non-customer to customer of the organization
12. Communication freshness - Continuously reaching out new customers.
13. Personal touch – It means that connecting with the customer in such a way that the
customer connects a personal angle with the organization.
E.g.- Wishing on customer’s birthday
14. Service guarantee - Customer can approach the organization for any defect in the
product & services.
15. Customer waiting time – For how long a customer has to wait to avail products &
services. If the waiting time is long then the customer can move to the competitors. The
organization has to devise a strategy in which the customer has to wait for the least time.
Unexplained waits seem longer than explained waits. Uncertain waits seem longer than
certain waits. Unoccupied waits seem longer than occupied waits.

Customer retention rate = (E – N) *100

S
E – the number of customers at the end of the period
N – the number of new customers acquired during that period
S – the number of customers at the start of the period

Luxury product marketing

Characteristics of a luxury product:

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1. High price product
2. Exhibits symbolism – status symbol. It enhances the status symbol of a person who
purchases the product.
3. Customized product – It is not necessary that luxury product has to be customized every
time.
4. Rarity – These products are not easily available. They are not manufactured in bulk
because there will be very few persons who will be buying the products. It is not easily
available also.
5. Bulk manufacturing of the product does not take place\
6. Exclusively available – The company engages in exclusive distribution – There will be
very few outlets from where the product can be purchased. That is the customers has only
limited access to the outlets.
7. Target market segment is restricted
8. The customers of these products are their brand ambassadors.
9. Self-expressive – People associate the name of the luxury brand with the quality & features
of the product.
10. Sales volume turnover is low.
11. High profit margin – Since the organization is selling very limited products. Therefore,
the organization tries to keep high profit margin per product.
12. Builds an emotional connect with the customer – the customer feels that the particular
product became a part of his life. The customer starts connecting with brand in a different
way as it enhances it social status.
13.
Marketing strategies for luxury goods:
1. Building a customization offer for uniqueness – In order to keep the product unique, the
organization has to indulge in customization. The organization can also use customer input to
customize the product. Through this process the customer feels elated. Each & every thing
can be customized as per customer needs & wants. Thus, making customer satisfied.
2. Heightening the senses to create an emotional connection with the customers – This is
called as sensory branding because this type of marketing is appealing to the senses related to
the brand.

Eco tourism
Definition –

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Fennel & Mallay (1999) - Ecotourism can be defined as an approach of tourism which is
nature based & where sort of learning & education is involved & which supports
environmental conservation & focuses on the overall development of the society.
Das & Chatterjee (2015) – Ecotourism can be defined as community-based tourism that
enables the local people to augment their livelihood security through employment in
ecotourism related activities thereby empowering the community socially, economically &
politically.

Pillars of ecotourism (By Hedzer) –

1. There should be a minimum impact on the environment. The negative impact should be
minimum.
2. Minimum impact on the host culture.
3. Maximum economic benefits should be given to the host community.
4. Maximum recreational satisfaction should be there for the participating tourists.

Types of ecotourists [By Weaver (2001)] –

1. Hardcore – They are more committed towards environment conservation. At the same
time, they like to interact with the nature.
2. Soft – They are not that much committed to nature as hardcore ecotourists.

Principles of ecotourism –
1. There should be a minimum impact on the environment.
2. One should try to build environment & cultural awareness & respect among ecotourists.
3. The local community should be involved because then only there will be overall
development of the area.
4. It should provide positive experience for both host & ecotourists.
5. Financial benefits & empowerment for local people.
6. The type of ecotourism & scale should be compatible with the environment & with socio-
cultural characteristics of locals.

Types of ecotourism -
1. Medical tourism – People like to visit to other places for their medical treatment because
those places better facilities, infrastructure, lower ticket fare etc. Ayurveda tourism is a subset
of medical tourism.

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2. Island tourism – People go to visit island to experience distinct ecology of island
3. Coastal tourism - Sea beaches, water sports etc.
4. Adventure tourism
5. Heritage tourism – historical cultural sites
6. Disaster tourism – Sites where some sort of disaster or calamity has occurred.
7. Dark tourism – holocaust etc.
8. War tourism
9. Space tourism
10. Yoga tourism
11. Sports tourism
12. Village tourism
13. Geo tourism
14. …….. tourism
15.
Concepts of ecotourism
1. Education – Educational programs should be conducted to make the people understand the
importance of conservation of environment
2. Conservation – Flora & fauna of a particular habitat has to be protected. We should take
steps for their survival.
3. Public involvement –
4. Sustainable – Ecological balance should be maintained.
Risk associated –
1. Commercial
2. Legal
3. Operational – Equipment not functioning properly
4. Social risk
5. Physical – Risk of injury at the time of performing/undertaking a particular activity.
6. Medical – Risk of injury pertaining to being qualified for a particular activity.