Survival of the Fittest

After the 2008 Elections, the economy of the world which is creeping towards a disaster before, come to a worst end named “The Global Recession 2009”. We have a knowledge of many recessions likewise The Great Depression 1920-30, Oil Crisis 1973-74 and also the 9/11 Crisis but the storm generated by the war against terror in 2009 was the mother of all. It is useless to make lame excuses or give reasons about the occurrence of such a great catastrophe because it is a normal phase of capitalism, more likely a bitter truth, that there will be a downturn after every boom.
This Global Recession has changed the whole story of economic development and capitalism. The Wall Street and Capital Markets come to downturn. Many popular brands are ready to quit the competition. The sector is wheezing from the collapse of at least five major financial institutions and the loss of more than 200,000 jobs — 60,000 in New York alone. Recriminations are not the only solution of this slump. We have to reconsider all of our approaches towards our economy because end of the day we all be responsible for our actions.
Despite of the fact that the welfare factor has been eliminated from our approach towards financial dealings, some of us has been called a serious responsible for such crisis and we can grind some names as well, Daniel Mudd, Frank Raines, Richard Syron, Angelo Mozilo, Barney Frank, Chris Dodd, Jimmy Cayne, Phil Gramm and many others too, but what has changed in the economy during this Recession 2009 and what is next to come, is more important to think. It is much important and alarming to think and for consideration.
People of the age are ready to witness “Survival of the Fittest” as the stage is ready for the addition and deletion of many famous brands of the world. Only those will remain on the stage which is ready to work for the regulars rather that their own hypothetic decision makings. The requirement of the customers has been changed during this global financial uncertainty.
Loss of faith on the major brands causes a lot towards their own saving strategies. People have come to know that what are the savings means and for what and when they are utilized. They bitterly know the reality of easy credits, and also the higher cost for such easy loans which they had paid before. They have lost their jobs and their nest egg too.
Do you believe that this episode of bad slump has also changed the priorities of the people in the world? Now they are much focused on better relations rather than financial dealings. Bank accounts, foreign reserves, electronic money and financial instruments are near to vanished from front role to a secondary priority. Cash – Net Cash will become a market leader and a king soon. Inventories are going to their ultimate end – the death. True partnerships are golden for the people and they are striving for them. A new environment of experimentation is awakening on the globe and it is necessary.
Has this new wave of change cause to the buying behaviour? It is the question of this right time because now it is necessary for the corporate brands to work in accordance with the behaviour of potential buyers. This misery of market changed the whole marketing segmentation of the buyers. Now they are totally different in their demographics & psychographics personal attribute, their desired benefit and most importantly their behaviour.
A time ago in past, the buyer’s psychology is totally ignored when considering economics. Later on after 1960, a lot of work has been done on the Behavioural Studies of Buyer and its different attributes. A lot of work is being acknowledged by Solomon, Bamossy and Askegaard. That is why a special attention is paid to it because it is very important to have a good understanding of Consumer Psychology and Behaviour when trying to market products and services. Traditional economics and marketing view people as rational decision makers.
When deciding to buy a certain product or make use of some service we often make very irrational decisions influenced by many different factors. Something that also should be taken into account is the way we process information and the fact that we are limited in our capacity to process this information. This is especially of importance for the way advertisements are designed.
The chances of irrational decision making are eliminated because of a great ruin of the economy. People have been change to their desires and psychic approaches. It is the time to design a new customer focused behavioural strategy to win a new range of customers. Marketing Professor of Harvard Business School Mr. John Quelch is also one of those who offer a new recommendation for marketers to grow in a new environment. Mr. Quelch has directed to change focus from high-volume customers to high-potential customers.
The main points of his new theory is are as follows;
• Focus on high-potential customers not on high-volume
• Don’t assume a return to normal but what is being regarded by customer
• Create brand trust and market repute among your target customers
• Stay focussed on costs and save extra expenditures
• Know your lead indicators
• Develop scenarios and create market demand
• Don’t wait for permission, just finished your home work before hand
Mr. Quelch is said what he felt but according to my point of view the total focus must be on the point that what is being regarded by the customer. If the corporate marketers of this current and coming age have focussed on this point, the remaining 6 can also be achieved without any extra effort.
The above whole plan of Mr. Quelch is basically adopted from the Islamic Economic System, Sharia’h Law and the Golden Code of Ethics described by the Great Prophet of Muslims Muhammad (Peace Be Upon Him). Capitalism is going to its economical death and the revival is only possible if you implement the Islamic Financing & Trading System and it’s not a new system for this universe. Just think that what Islamic System is and what it means for. It totally focussed on welfare likewise implemented in 623-43 A.D by the Muslim Caliphate.
Interest is the mother of all evil. It changed the psyche of human and it will turn from a welfare state to a selfish state. Remember the days when interest is forbidden by the Christian Church, there are no such financial shocks as these are in modern age. After the age of Henry V, when the relationship with church has been broken down, the financial uncertainty tends to grow and the current crisis was worst of all.
In a welfare state, either it is named as Islamic or not, but in a welfare state the confidence of buyer is rebuilt and the uncertainty goes to its ultimate end, because the current financial crisis is the crisis of confidence. Buyers have no confidence upon the corporate brands and also upon the financial institutions because they know and they believe that the purpose of these icons is only to generate profit in any ways.
The Rogue Economics generated a gap between the people and the government. Governments are more eagerly on a mission to discover new sources of income generation and they have no association with the welfare of their nation. This breaks up the confidence stream among them and at the end a huge slump is ready to ingest the current economy of the world.
The economists of US are ready to accept the golden code of ethics stated by the Islam to transform their economy from a profit oriented state to a welfare oriented state and it’s a good sign in this age of emergency. Mr. Quelch’s points are actionable and connected with each other transforming a complete cycle of Buyers Behaviour. These points are honestly representing that they are trying to build the buyers’ trust and confidence again by a rational use of Islamic Welfare Principles as being implemented by Prophet Muhammad (Peace Be Upon Him) along with the Caliph Abu Bakar (R.A) and the Caliph Umar (R.A) in their Caliphate.
If all the marketers of the world focused on the point “Don’t assume a return to normal but what is being regarded by customer” then I hardly believe that there will never take place such crisis like we have in our current days. Corporate brands can only win the trust of buyers if they provide a complete regard to a buyer’s desire and a total utility satisfaction which he is claiming for.
I will conclude the whole from the words said by a Rogue Economist of United States Ms. Loretta Napoleoni some days before, “Developing a new model based on Islamic finance may be the solution to the current economic crisis. We’ve got to be open-minded if we want to carry on going ahead. Otherwise we’ll get stuck, and otherwise we’ll really be in a serious crisis, and then something new will come only from the ashes of what we have constructed before”.