June, 2024

5 mins read

Never forget the basics. The core principles of marketing remain unchanged

Pingali Venugopal - Professor of Marketing at XLRI 29 Jun 2024

Meet Pingali Venugopal, Professor of Marketing at XLRI, Jamshedpur, with over 40 years of experience in academia and industry. In a conversation with Sukanya Chatterjee, he discusses refraining from Western-centric case studies, advocating for contextually relevant teaching, and shares insights on rural marketing, ethics, and sustainable consumption. His contributions span teaching, consulting, and influencing Indian agricultural policy.

Never forget the basics. The  core principles of marketing remain unchanged

Could you tell us about your early life and the influences that shaped your interest in marketing, particularly in the Indian context?

Actually, I wouldn’t say something specifically shaped my interest in marketing. It just happened. Unlike your generation, we didn’t have much information about career options. Management wasn’t a major career option in the ‘70s. When I joined graduation and then MBA in 1978, people suggested applying for management courses, and that’s how it happened. At that time, it was only A, B, and C (referring to IIMs). I applied to A and B, not C, because C was more technical. A was known for marketing, and that’s how I ended up in marketing. It wasn’t pre-planned; it was more about joining the dots.

Why did you focus on marketing in the Indian context?

That realisation came later. IIM Ahmedabad is known for its case method, largely using Harvard cases. However, I never liked the concept of using Harvard cases because understanding the US context was challenging, and it wasn’t relatable to the Indian context. Many concepts were copied without considering if they were suitable for India. Over time, I felt the need to create something more relevant to India. I started developing cases that were short and expected people to relate to the situation rather than providing the entire context, like Harvard cases.

What are the most significant emerging trends in rural marketing today, and how do they compare to urban markets?

A common misunderstanding about rural India is that it’s entirely about poor and illiterate people. However, rural areas have very rich people too. We need to understand where the purchase and consumption happen. Often, consumption happens in villages, but purchases are made in towns. Strategies like Chota Coke and Chota Pepsi, initially intended for rural areas, ended up being sold in urban areas. Understanding rural segmentation and consumer behaviour is crucial. Rural people, influenced by urban interactions, often replicate urban behaviour. Their purchasing decisions vary between being quality-conscious in agri-inputs and price-conscious in consumer goods.

How have recent government policies in India, such as the Digital India initiative and rural development schemes, impacted rural marketing strategies?

The impact is still limited. Infrastructure and awareness have improved, but the extent is not very high. For instance, smartphones and call centres help with agriculture information. Health services have improved through video consultations. However, these advancements are still in pockets and not widespread. Government policies like direct subsidies to farmers through bank accounts linked to Aadhaar have been beneficial, but there’s still a long way to go.

How can marketing be used as a tool for social good in rural areas beyond just driving sales and profits?

Marketing’s role is to communicate ideas. While marketing often promotes consumerism, it can also reduce unnecessary consumption and aspirations that lead to wasteful spending. By focusing on functional needs rather than emotional desires, marketing can encourage responsible consumption. For instance, promoting generic medicines focuses on functional benefits rather than brand value.

What are the most pressing ethical issues in marketing today, particularly in developing markets like India? How do you advise your students and industry to navigate these issues responsibly?

One core issue is applying western standards to developing markets. The focus on short-term profits leads to pushing products without considering long-term consequences. Companies should educate consumers about responsible consumption and be transparent about the negatives of their products. Ethics in marketing should emphasise a long-term perspective over short-term gains.

What drives your passion for teaching and research? How do you keep your enthusiasm alive after so many years?

Teaching has been a fulfilling journey. After working in industry for 10 years, I pursued a PhD. My passion grew from the need to create something relevant for India. I never liked teaching from existing textbooks, as they didn’t cater to the Indian context. Developing concepts and testing them with students and in management development programmes (MDPs) has kept me engaged. The feedback and questions from students have been instrumental in refining my ideas.

You have authored several influential books on marketing. Could you describe your writing process and how you choose the topics and cases for your books?

My writing process begins with conceptualisation, often during my morning walks. I test these concepts in classes and refine them based on feedback. The cases and topics are developed through interactions with students and industry professionals. My books are dedicated to my students, as their questions and feedback have significantly contributed to the development of these concepts.

Can you share a memorable experience from your fieldwork or classroom that has impacted your perspective on marketing?

There have been instances of 100 per cent rejection in the classroom, which initially dejected me but later drove me to question and refine my concepts. These experiences helped me understand the importance of continually improving and adapting my teaching methods. Interactions with salespeople during my industry years also provided valuable insights for my books on sales and distribution.

In your book Sales and Distribution Management: An Indian Perspective, you discuss managing distribution networks in India. How do you balance traditional distribution methods with the rise of e-commerce and digital channels?

I still support traditional brick-and-mortar methods. E-commerce is growing, but traditional distribution remains crucial, especially for large companies. Traditional channels provide significant reach and bargaining power. While e-commerce offers convenience, it requires substantial margins and platform fees. Supporting local businesses helps prevent monopolies and ensures broader market coverage.

What advice would you give to a marketing enthusiast who wants to pursue a career in marketing?

Never forget the basics. Amidst the excitement of digital and AI advancements, the core principles of marketing remain unchanged. Understanding the consumer is fundamental. Building and sustaining a market requires a strong foundation in basic concepts. As long as you remember the basics, you’ll have a solid foundation to build upon.