SachINDIAN MARKETendulkar

The focus of this article is on the importance of marketing in the functioning of markets. A traditional economist will describe a market as a mechanism that determines the prices and quantities of traded commodities by equating demand and supply. Clearly, the basic inputs needed for us to figure how a market should function are information on demand and supply. For example, if the supply side has only one seller, we should expect prices and quantities (of, say, processed food) to be determined monopolistically?a tautology. Suppose now that some reliable (and reputed) scientific study reveals that the food manufactured by our monopolist doesn?t meet quality standards and exposes its consumers to some ugly form of food poisoning. The monopolist will end up with an inventory of unsold food, the costs on which have already been incurred. The result: losses. Clearly, demand is the more important input to ensure the existence of any market, let alone its functioning. The current literature in economics, however, identifies that most of the time, it is not known if demand exists at the first place, let alone how much of it. This is largely because it is humanly impossible to collect data on consumer valuation for each transaction, let alone those that did not occur. A more fundamental point, according to me, is that consumers may themselves not know anything about the nature of their own valuations. If this isn?t convincing, ask yourself if you would really know what item you will value more than the other in a menu of dishes offered in a particular restaurant that you?ve only visited for the first time.

This fundamentally brings in the question of possible creation of demand. Unlike, what was traditionally believed of the role of advertisements?that it was merely a channel of educating consumers, today it is well-known advertisements play a wider role that covers even creating and maintaining consumer demand. While demand creation itself involves consumer education, a lot has to do with brand association. First channel: reveal to your potential customers that the research that went in the development of what you want to sell had been sponsored by a reputed organisation. Second channel: provide sponsorships at well known events (IPL being a case in point, each individual team has multiple sponsorships). Third channel: get your brand endorsed by a well known celebrity who is at least venerated (if not worshipped) and more importantly known by the masses. These channels of brand association have witnessed countless examples by now. Which example do I stick with throughout this article? Well, the choice of a good example according to me, must satisfy two criteria?perspective encompassment and the ability to relate with. Let me talk about perspective encompassment in brand association in terms of demand creation. If you recall, Action shoes with light systems?which were practically not the in thing when the concept had just been introduced?actually gained popularity with the ad that featured Sachin Tendulkar saying ?Action ka hai yeh light system? back in the 1990s. I was a kid back then and was quite excited to get my first pair of such fancy shoes. To briefly speak on the ability to relate with, I was only six (in 1991) when I started taking interest in cricket?Sachin was a part of the Indian cricket team then. Today I?m 26?and Sachin still plays for India. Personally, every time I watch Sachin bat, I?m practically driven back to my childhood ? the only difference being that I no longer take exams and receive the kind of grades I did back then ? and blame Sachin?s captivating performances for the same (a confession, I blamed my own performance in sixth grade exams on Sachin?s performance in the 1996 World Cup ? talk about exploiting coincidence, but it is worth pointing out that the difference between mine and Sachin?s performances was he had two hundreds ? I had none).

Let me now come to the more important issue of demand maintenance. It is noteworthy that fancy shoes that lit in the dark are out of fashion today ? demand did not persist because of genuine durability-related issues. As in the example in the first paragraph of this article, any negative publicity, backed by a reputed name can immediately kill demand. Demand, therefore, needs to be maintained. While it is impossible to completely eliminate the impact of any negative publicity, it is possible to mitigate the same. Here, advertisement practically acts like insurance. Brand association offers another perspective here in terms of demand maintenance. The idea is to be able to make your consumers question the reliability of the reputed source of negative publicity, stemming from association with a well known brand. The consumers? thought process is ? ?if this product is really that bad, why would a great person endorse it? ? we should wait and see if there are any further negative reviews? or ?if a company can hire this celebrity, it obviously has the resources to set things right ? lets wait.? You?re in two minds but have not yet completely given up on the product. This is what an influential brand is capable of?creation of doubt. To provide yet another example of doubt, I?ve never been much of a sports person, but have tried my hands at cricket. I used to be a medium pacer. Now, suppose I bowled an over to Sachin and got smashed for 36 runs straight, I wouldn?t know whether I?d really be upset. On one hand, there will be a momentary upsetting feeling that I?ve just been hammered, but on the other hand there is a pleasant feeling that being a Sachin fan, I?ve had the chance to get the best view possible of a great batsman in action, and by now I?m simply used to being happy when I see Sachin hit sixes?a habit that has lasted for two decades now. I?d let you decide if the momentary upsetting feeling or the one developed over two decades will dominate. I?ll maintain, I do not know.

My only explanation to the demise of shoes with lights is that Sachin was a still a prodigy then. Today he is the master of the game, and that clearly makes him a better brand worth being associated with. I?d finally like to conclude by saying that the best way to associate yourself with a brand is to be one. Sachin clearly is and I wish him luck for his 100th hundred. I want the child within me to remain alive?I don?t want to see Sachin retire any time soon.

A Poem on Sachin Tendulkar

His perfection in execution is,

to the pupil?s pupil, a sweet treat;

you relish drink fizzy, while he?s busy,

bullying bowlers, over six feet.

He overcame the wrath of McGrath,

silenced, the warnings of Warne;

any jack?s attack, that he?ll face will,

like a masterly art, be apart torn.

The position of bowlers of opposition,

often barred, from playing all cards;

they feel tied hands, as he stands,