Pitch CMO Summit: If you don’t explore the noises on digital, you can’t grow: Rajesh Magow
Magow, Co-founder & CEO India, MakeMy Trip, spoke on the topic, ‘CEO’s Take: The Art & Science of Marketing’
The era of planning a trip has changed. Marketers are struggling because of the transitions that have happened and the programmatic role that has come in. Today, most of the businesses are mainly focused on transaction acquisition, says Rajesh Magow, Co-founder & CEO India, MakeMy Trip.
At the Pitch CMO Summit Delhi, Magow spoke on the topic
Magow started the session by speaking about his own experience at MakeMy Trip and how things have evolved. The first point he made was about disruption in the conventional marketing space. “Everyone has been talking about disruption, whether it is an e-commerce business or an internet business website. The internet has been a massive destruction,” said Magow.
Talking about the business he has built, Magow said it was largely done through conventional marketing.
Speaking about transitions in the marketing industry, Magow said, “TV marketing is going towards digital channels. From mobile apps, the narrative is building towards mobile web. Nearly 80% of the hotel bookings happens on mobile. Technology and big data technology have completely changed the game. There is so much noise on the digital channels. If you don't explore, you cannot grow.”
Marketing as a function has become a very important part of businesses. It has also evolved and at the same time has got majorly disruptive.
“MakeMy Trip has been around for 19 years. For the first five years, we did not take off as a model. There has been a massive evolution and difference in the marketing techniques that we used at that time and what we use today”, said Magow.
The first disruption, according to Magow, is smartphones. If you try and link that with business strategies, and specifically the marketing side, you would realise that the kind of content you will see is only about discounts. What does this mean?
“Conventionally, everyone used to be focused on brand. It has changed in a massive way. When you build a brand, you are obviously trying to get customers to your platform, shop and your business. Then, it is customer acquisition strategy on your mind. Today, for a lot of marketing experts, it is about going into transaction acquisition. And the business goal that we follow day in and day out with our brands starts with consumers and it ends with transaction. The focus has gone away from the customer to offers. There are all types of offers,” said Magow.
“There is not a lot of strategies to build the brand at the end of the day. A brand can be built at least in the e-commerce space through acquiring customers,” he added.
According to Magow, there is only one company from the west that has not got addicted to this “drug” called discounts.
“It is only Amazon and no other company. If you would notice from the western world, no one knows how to play this game at all. They have all started in China and now these strategies have come to India,” remarked Magow.
Magow added that going forward, globally, the ad dollars will be spent on online platforms by 2020 because of smartphones. “The trend of marketing is indeed changing. There are many marketers who are struggling to face this disruption in the marketing industry because they are not able to adapt. But the question that arises is whether or not marketers are ready to face the disruption,” concluded Magow.
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