“Insurance product whose primary objective was covering risk, i.e., supporting the family who losses its bread earner, has diversified itself in savings objective for consumer benefits.”– Swanand Pandit
Introduction
India is renowned for its multiple traditions and vibrant cultures. Be it intellectual achievements, arts, languages, financial abilities everyone has their style and force for living. In India, various sets of people have their definitions of living and lifestyles and thus challenge every product since a variety of people are concentrated in one area. Hence promoting any product itself is a challenge for the manufacturer or service provider as it has its challenges about the vacuity and applicable usage of the products or services offered. Though the average spending per family is on the higher side, India is still the no. 1 Country on savings. As per the credit data available Household debt post-Covid 19 catastrophes of stands at 37.3% of the GDP. (As per the SBI report published in “The Mint” dated September 15, 2021). It indicates that the spending power of families in India has increased considerably.
Though the statistics indicate high spending power, Indians have also cultured their traditions of savings and still hold a position in the topmost countries for their savings. Even the millionaires of India still value traditions and culture hence savings and investments patterns are followed in India despite multiple religious approaches, modernization and various cultural linguistics.
Indians have always welcomed challenges and changes in time, however, have preserved their traditions and values despite the introduction of new technologies and alternatives.
Marketing
With time changing and embracing the new technologies marketing techniques in Indian Markets have also transformed with creativity and vibrant new ideas towards marketing products and services. Marketing gets viewership to a new brand or services offered to the end customers. Marketing has a lot to do with consumer behaviour. It familiarizes the manufacturer or service provider with the consumer behaviour vis-avis also educates the consumer about the product and services offered by the manufacturer. In the modern era, the manufacturer or reseller learns the consumer patterns by conducting various surveys and assessments before launching its product or services. On adopting the new technology, marketing has broadened itself by partnering with various tech giants like, Google, Facebook, & Apple for conducting Google surveys, Google advertisements, Google Form feeds, YouTube, Facebook, Apple stores, automated advertisements and various other resources which have firmly supported the manufacturer/reseller or service provider to understand consumer behaviour. With Artificial intelligence (AI) the marketing industry has tried to study various patterns of consumer behaviour by partnering with the above tech giants to study consumer likes and dislikes and preferences. The AI has played a very important role to understand an individual’s role by a collection of automated consumer behaviour data, data analysis, and study of economic trends through AI technology. This also reduces the risks of product failure, pattern failure as every product is tested with consumer behaviour before being introduced in the market. The marketing process determines who is most likely interested in this product or service and where they can find them. It helps in achieving the goals of the product and promoting the brand with clear communication to the user of the product.
Products
All products and services including financial products depend upon the marketing of the product to understand the consumption patterns through various resources discussed above. Since we are reading this financial newsletter, emphasis on financial products i.e. Insurance industry, Mutual fund industry and Banking industry shall be a pioneer discussion on its marketing strategy to promote services and products. With the modern Ultra HNI services offered marketing also syntheses many financial products into one product for consumer offering which has a gamete of different products under one umbrella. This study has also been passed through various data analytics and the study of consumer patterns through AI. Today, products have also been customized as per consumer patterns as per the study and analytics offered. Insurance is combined with the investment objective and can be treated as a mode of savings for an
individual’s further goals. Daughters’ marriage, child education, foreign trip goals are also achieved with the purchase of insurance products which traditionally is not the feature of the product. Insurance product whose primary objective was covering risk, i.e., supporting the family who losses its bread earner, has diversified itself in savings objective for consumer benefits. Mutual funds are also coming up with an insurance part that protects individuals from any unforeseen event in the investor’s lifetime by supporting insurance with charging a nominal charge which consumers are ready to shell out as per patterns of marketing defined in the above AI study and analytics. Such changes in the patterns of the products have been part of successfully understanding the consumer behaviour during the launch of products. Marketing has helped products and services to come out of its traditional approach and create new patterns and services which are required by the modern consumer for his benefits.
Summary
The extract of the above newsletter is about consumer behaviour and modern marketing techniques supported by AI for improvised product offerings and understanding the consumer pattern before its launch. The risk of product failure has certainly reduced after understanding consumer patterns through ways and means of marketing discussed above for assessment of the consumer behaviour. Every marketing has to be converted into a “Sale” for assessing the
success of the product which can be discussed later starting from the rudimentary difference of a “Marketing” and “Sale
Article by- Swanand Pandit, BCOM, BLS, LLB Email- swanand.pandit@gmail.com
