Is more marketing the solution to Pakistan’s economic problems?

Can marketing, and more of it, be the best approach to solve Pakistan’s economic problems? This may at first sound like a frivolous argument – that of all the options available, marketing can put Pakistan’s economy on the path of growth. Advertising and promotion have their limits and in an economy dominated by corruption and terrorism, more marketing does not make business sense. Brands invest in good economies; they don’t build good economies, and sound economic policies and infrastructure are a prerequisite for brands to flourish. These are among the counters to the argument. Nevertheless, more marketing done smartly is one of the best options (if not the best) for Pakistan’s economic prospects.

What is more marketing?

Before trying to prove this proposition, it is important to define what marketing is. By any professional or academic definition, marketing (for the most part) is neither advertising nor promotion. Granted that promotion and advertising are the most visible aspects of marketing, yet they represent a tiny fraction of what marketing entails. Some people understand this basic fact, but many tend to forget or misunderstand this.

The simplest yet most comprehensive definition of marketing is: ‘meeting needs profitably’. This three-word definition captures everything that marketing is about. While ‘profitably’ represents the desirable outcome, the process of ‘meeting needs’ entails a long list of interrelated business activities. Meeting consumer needs may involve developing a solution or a product and making it financially viable for the target segment. Bringing it to market and announcing it to the target segment constitutes another set of activities in the meeting of needs. These activities are widely known as the 4Ps of the marketing mix.

Therefore, strategising, developing and offering a product for a selected market segment are all marketing activities. Done more frequently and creatively, these activities ‘meet needs’, create demand and bring in profits which eventually translate into growth and jobs. More and better jobs mean a stronger consumer base, which creates more demand and eventually an improved economy. Announcing or promoting is only a small part of these endeavours.

Some may argue that these are entrepreneurial activities. They are, but being an entrepreneur is not a prerequisite to carrying out marketing activities. A smart salesperson working for an entrepreneur can identify the needs of his or her target segment and come up with better options to deliver a product or a solution. Entrepreneurs do more marketing but managers are no different in their own sphere. The crux of the matter is that more marketing means using the range of tools that constitute the marketing mix and getting the segmentation, targeting and positioning strategies right.

More marketing in real life

Most of these contentions are common to any found in marketing textbooks – and textbooks, theory and academia have a reputation of being out of touch with real life. In other words, getting all the elements of the marketing mix right is possible, but in theory only. Real life is different and more complicated than what is written in textbooks. However, it was not textbook theory but real life examples from Pakistan that prompted this article.

Here is a story of a Pakistani brand which found success through more marketing. This success story is not an outlier; it is one of the many examples of how more marketing can bring success to brands operating in Pakistan. The way in which these brands counter the challenges of security, governance and infrastructure is awe-inspiring. Despite the odds, they kept accelerating their marketing efforts and found success. Unfortunately, most of these stories remain untold and unappreciated.

One such story is of Gourmet Foods, a confectionary brand from Lahore, which is well on its way to becoming a national consumer brand. Today, Gourmet Foods are well-diversified and have their sights on international expansion. Gourmet Foods’ launch in 1987 was no different from the launch of any other bakery in Pakistan. Yet, they distinguished themselves by providing fresh products in a hygienic environment – a concept lost on small bakeries at the time. Quality food items at affordable prices for the middle and lower middle-class segments, and in a hygienic store environment, garnered swift appreciation.

Increased demand led to growth and within a few years, Gourmet Foods acquired a network of bakery and grocery stores in different parts of Lahore. In their growth trajectory, they never lost their focus on the hygienic environment and the quality of their products. Products were fresh and transported in their own fleet from a central production facility. Although Gourmet Foods started with a quality-centric marketing mix, targeting lower and middle-income neighbourhoods in Lahore, moving to the higher income segments proved a seamless exercise.

There are two unique aspects to Gourmet Foods’ success story. Firstly, in addition to maintaining a hygienic environment, they ensured that their store staff was courteous and professional. This led to consistency in the quality of their customer service – a novelty in bakery and confectionary retailing. Secondly, they did very little advertising; in fact, they limited it to shop signs and OOH on their fleet of vehicles. More marketing in case of Gourmet Foods meant less advertising; the focus was on quality, pricing, retailing and customer service.

Gourmet Foods put together this picture-perfect list of marketing mix factors in the post 9/11 period. Lahore, the primary market, was spared neither terrorism nor load-shedding. Yet, more marketing done rightly created more demand, which fuelled growth for all stakeholders. Today, Gourmet Foods are respected for their range of food products in almost all categories, a robust retail network, restaurants and a fast-growing portfolio of products across categories. They employ hundreds of men and women and are one of the leading tax payers in their category.

There are countless other stories such as this one. Brands as diverse as Airblue, Beaconhouse School System, Easypaisa, Hanif Rajput, Indus Motors, Interwood, METRO Cash & Carry, Nishat Linen, Tapal Tea and Super Asia are examples of more marketing done right. Most of these brands targeted the middle and lower-middle income segments as well as young Pakistanis. They strategised their marketing mix brilliantly, remained resilient in the face of challenges and achieved success.

The next frontier(s)

Segmentation wise, Pakistan’s middle-class and young are the burgeoning and bulk segments respectively. Engaging these segments smartly is a proven recipe for success. However, the potential of Pakistan’s market does not end with the middle-class and the young. The unchartered territory of the lower-income segments and the rural population can be equally profitable, if not more. Granted, affordability levels in rural Pakistan and the lower-income segments are lower compared to the urban middle-classes. But this is what more marketing is about. Coming up with solutions at affordable price points requires inventive marketing and more of it. Repackaging the same product in smaller SKUs (as some brands have tried) is not the smartest solution to make a product affordable; coming up with a different product, produced and sold locally can be an inventive strategy.

Thinking outside the city often requires brains from outside the city. Similarly, thinking about the lower-income segments may require the input of marketing minds from those segments. In the different worlds of political and agricultural marketing, engaging the rural and lower-income segments is crucial and the engagement tactics of successful political and agricultural brands have proven this fact. What is needed is conviction and more marketing done rightly. This simple, yet arduous, formula has done wonders for many brands and there is every reason that it will replicate successfully in the future.

Muhammad Talha Salam is a marketing academic and consultant. talhasalam@gmail.com