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    MARKETING FLASHBOOK FOR MARKETING EXAMS AND MARKETING JOB INTERVIEWS Al AUTHORS a ~ BOUT THE DARPAN SAXENA Darpan has worked as a Marke- ting and Product development strategist at an edu-corporate in New Delhi. He has also worked at a multinational business process outsourcing company in their Marketing & Artificial Intelligence business. He is an engineer by qualification and is currently pursuing MBA from Indian Institute of Management (IM), Udaipur. Super Heuristics | 2 KAJAL GUPTA Kajal has a rich experience in digital marketing. She is fond of writing on Marketing and various other topics.Kajal has completed her Graduation in Management studies, Marketing being her specialization).She is also pursuing Masters in commerce along with UPSC (civil services) MARKETING FLASHBOOK WHAT IS MARKETING? KOTLER AND KELLER SUGGEST THAT MARKETING IS ABOUT ‘IDENTIFYING’, ANTICIPATING AND ‘SATISFYING’ CUSTOMER NEEDS PROFITABLY. Each of the four words used here has a deep ms ning. © Notice how important itis to do marketing ‘profitably’ Sure, you could sell alot more of whatever you are selling but what if you are burning a hole in your pocket while doing that? © Satisfying’ the customer needs encompasses everything from creating, communicating and delivering offerings that have some value for the customer. © Identifying’ is definitely the bread and butter of a marketer. You as a marketer have to identify whatyour customers are asking for. © The most charismatic part of this definition is the word ‘anticipating’ Are you ahead of the curve and can you understand what the customer wants before she knows she wantsit? [3 MARKETING FLASHBOOK Nt MARKETING STRATEGIES ARE INNER Rimi ori) eons Seer) tis HERE ARE FEW OF THE MARKETING ACTIVITIES BUT REALLY, [aad DARPAN SAXENA @ 0. omer a= e e aust | Sari rmrerecsinr Deen reason fer i DECIDETHE PLACE ‘WHAT WILL BE THE PRICE? DYOUPRONCTE CUSTOMER FEEDEACK AND. oun ean AFTER SALE SUPFORT > oti “e Super Heuristics Fd tacebooc com/SuperHeuristics READ MORE(G) But really, what is Marketing? LJ NEEDS, WANTS AND DEMANDS Ls NEED: Lack of a requisite, a state of deprivation. Need works like an origin point for marketing. WANT: A stage ahead of need, wants are nothing but desires DEMAND: willingness and ability to purchase a product in need or want Example: © [had aneed fora better self-esteem, status, and recognition. | had to find a way to satisfy thisneed of mine, which engineering, clearly, couldnt satisfy © [had a few options to choose from for pursuing masters, These were the common culprits- M.Tech, MS, and MBA. |wasclearthat! want todo MBA, © wrote the CAT exam. | was keen on getting into one of the top IIMs. And with those 10,000+ candidates who were shortlisted for the interview, | knew that the competition for those 4000 odd seats going tobe tough as the demand was high! READ MORE(S) But really, what is Mark separ Heuristics | 5 MARKETING FLASHBOOK MARKETING FADS, TREND AND MEGA TREND Fads ‘Something that is in limelight for a particular period of time, like a temporary show. While working in the field of marketing and observing the environment closely one will come across many Marketing Fads. Example: A UK based Snack Company, Walker had introduced a social media campaign where the customers had to submit selfies to win tickets for major sports events, We all still click selfies, but how long can companies pull this to attract their target audience? Another brilliant example is of Wendy's who entered into a twitter meme battle with their customers, they went viral with this marketing strategy but it didn't last any long. Trends Marketing trend is something where the entire market tries to work on similar lines. A trend is longer living than a fad and is usually industry-wide. Example: Ever since 2017, Blogs and content marketing has been one of the most influential trends in the market Mega trends Mega trends are something that are global, sustained and macroeconomics forces which affects the businesses. Example: Virtual currency (Bitcoin) is now in the market forthe last 9 years and counting. It is probably the latest global mega trend which will alter the dynamic business environment. separ Heuristics | 6 MARKETING FLASHBOOK The 4P's of marketing combined together is a perfect recipe for marketing success. The 4P's are the control variables for a marketer with he or she which can change the entire nature of the marketing pursuit. The objective is to get a marketing mix of good Product, Price, Place and Promotion strategies. READ MORE() The monetary value that a customer pays for the product is the price. The price is determined by N no of factors such as cost, brand, customer's perceived value, competitors pricing ete. A marketing strategy of pricing could be of different types say penetration, skimming, premium and geographical pricing (explained in detail later). This is one of the most influential P of marketing strategy which decides the fate of the product. READ MORE) ‘Super Heuristics | 7 MARKETING FLASHBOOK Place Place is basically the channel where the company's product meets its target audience. It includes the distribution channel choice like wholesale, retail, multi-channel etc. Place is an another extremely crucial marketing mix element. That's because: © The sales and distribution channels are the front-end of your company to your customers. For the customers, your the same as you. ributor © Selling woollen clothes in a dry arid region will fetch nothing but failure, this makes place a very crucial aspect of sales. Promotion Promotion refers to the marketing communication methods used to inform, persuade, and remind the target market of the product or services, basically any interaction that your company has with the consumer regarding your product. Example: It could be Direct Sales like those groovy Instagram pages which pitch their audience directly. Nowadays Companies are incorporating with the youtubers to promote their products - Influencer marketing, With advancement in the digital literacy and reach, companies have evolved with their promotions as well and are moving to online promotion methods. READ MORE()) The Elements of the Marketing Mix separ Heuristics | © MARKETING FLASHBOOK ’ OF SERVICE MARKETING These are the extended P's of marketing adding to the 4 elements mentioned earlier. This extension of the marketing mix is required since the providers and the customers are now in direct contact and now more elements come into the picture. Apart from the 4Ps of Marketing mentioned above, the other 3 Ps are the following: People- Service industry is all about this fact of production, as they are produced and consumed at the same time. Process- Process is the delivery of the product to the customer, until it reaches the stage of customer satisfaction Physical evidence- The extra frills, the ambience where the service has been produced, customers tend to judge their satisfaction level even with the ambience. separ Heuristics | 9 MARKETING FLASHBOOK PRICING STRATEGIES Every company uses a different type of pricing strategy. A pricing strategy is determined by various things such as the stage in which the product is, the stage in which the company is, the target segment, competition and the market. It's a general belief that "you know your pricing is right, when your customers complain but they buy anyway!” Here are some of the types of pricing strategies: © Premium-Premium pricing is all about quoting a price higher than your competitors. However now the company not only offers you the core and actual product but it also offers few other features to the product ie. the frills. There could be a situation where there are no frills but still the company may charge a premium capitalizing on its brand value. © Penetration- How many of us run to the shopping malls when there is a sale? Penetration is a pricing strategy where the company quotes a comparatively cheaper price for its product to attract the masses. This is one of the brilliant strategies in the initial stage, where the company is still in the process of establishing itself or the product. © Price Skimming - Unknowingly or knowingly we all have experienced this sort of pricing strategy, it is when the seller quotes a very high price for the product than its competitors in the initial stage and then lowers the price for the same product gradually. For example, a newly launched smartphone has comparatively higher prices in its initial days after launch and it loses its value over the time. © Psychological pricing - A tricky pricing where the seller does not allow the buyer to perceive the actual price he is paying at the time of purchase. n in its MRP of the same © Geographical p product and at the same time but at different geographical locations. This is ing- A pricing which involves variat mostly influenced with currency changes as well as inflation rates. sper Heuristics | 10 MARKETING FLASHBOOK DISTRIBUTION CHANNELS For a product to reach from the producer to the consumer, you require an intermediary. Also, there is no limit on the number of intermediaries/middle men that can be involved in this activity. There could be different number of players in this supply chain for different products within the same company.However, the company can still choose from different types of channels. © Direct/Zero level channi © Indirect channels Direct/Zero level channels This is a type of distribution where companies have no intermediaries between them and the consumer. They indulge in direct selling of the product. One of the most recent examples of which was the OnePlus phones which were sold on only online. A private label selling directly through an e-commerce website is also an example of Direct channel selling. Indirect Channels A type of distribution where there are intermediaries which help the manufacturer's product reach the target segment. Indirect channel can include different type of and different number of intermediaries between them. The following diagram explains that. oo 2 es —_-ea-__-¢& es - &>_- & oe o-o-= <2 Super Heuristics | 11 MARKETING FLASHBOOK ‘Communication holds utmost importance in marketing and to make sure the company does it well, there is an already existing mantra for it, Clarity Consistency Credibility Competitiveness Super Heuristics | 12 MARKETING FLASHBOOK ATL, BTL TTL THESE ARE NOTHING BUT INTEGRATED APPROACHES WHERE THE COMPANY PROMOTES ITS PRODUCT TO THE MASSES AND TARGET AUDIENCE SIMULTANEOUSLY. Above the Line (ATL) focuses on mass promotion with the intention to create brand awareness. Below the Line (BTL) is focusing more on the direct promotion to a target audience with the intention of converting them as customers. ‘Through the Line (TTL) is the combination of ATL and BTL and gives more of a holistic approach, Example: © Asimple way to understand this is that on Television, you can't control who watches your ads. It is for brand awareness and has a larger reach. That is an example of ATL. © Whereas, through email marketing to your subscribers you are directing your sales efforts exactly to the people who had subscribed to your content and are aware of the context. This is an example of BTL. © Amiddle ground between these two is what Facebook ads has done. Ithas ‘ensured that you can target a lot of people (like ATL) but can set filters on Facebook as to what kind of people (e.g, Male/Female, Age group etc.) can view your ad. This is the TTL =3-E -& =e. = -e-= sper Heuristics | 19 MARKETING FLASHBOOK y as \ y acs ee T (1 I) ‘The 4Cs of the marketing mix are nothing but an evolved form of the 4Ps of the Marketing mix. Here, each C corresponds to a P of the marketing mix. How many times have you heard that the customer is a king? Product of the 4Ps translate to Consumers in the 4Cs. This effectively means that company has to make sure that their procluct and service is customer centric to survive in the market. Customizing as per your customer is the key to his loyalty. A crucial factor in the decision-making process of a customer is the price. This C of Cost makes the Pricing decision more company driven. It suggests that the company should be focused at reducing the costs. If the company plans to cater to the masses then the costing/price of the product has to be low. GE super Heuristics | 14 MARKETING FLASHBOOK Convenience Place in the 4Ps translates to Convenience in the 4Cs, We live in a world where no matter what we are always running out of time, customers are on a constant hunt for convenience. A huge success factor of the start-ups that have tasted success is the convenience that they provide. For example, Zomato (that allows easy online ordering of food), Book my Show (that, allows one to pre-book their tickets as per their comfort), Ola/ Uber (which saves your time by providing you easy transport) Communication One of the biggest reasons that companies nowadays fail and that is lack of proper communication. They are unable to reach the masses and convey them their product in the way that the consumers would like to hear about it. However social media has been the game changer and simplified this process for the organisations at a much cheaper cost, MARKETING FLASHBOOK SEGMENTATION AND TARGETING ‘Segmentation refers to dividing of a large customer base into small segments (as per as their common characteristics) for ease of targeting and for the purpose of reaching the intended audience. Segmentation is a bottom-up approach. ‘Types of segmentation © Geographic Segmentation This is when a business divides its target market as per geographical area, it could a city, a particular region, country or international region as well For example: Walmart being an international multi retailer, which operates in about 27 countries, has no presence in India. © Demographic Segmentation A market segmentation where the company’s product caters to the targeted segment only on the basis of its age, culture, ethnicity, caste and religion. For example: If you ever visit a McDonald's outlet in another country than India, you will see a total revamped menu. It serves beef and pork burgers in other countries which it doesn't serve its Indian target audience. © Psychographic Segmentation In this the market segmentation is done as per as the lifestyle choices, attitudes and beliefs of the targeted audience. For this companies use the VALS Framework (Values, attitude and lifestyle)as a research methodology to narrow downits target market and to be more customer centric For example: It is hard to find a dance pub in the rural villages © Behavioural Segmentat In behavioural market segmentation, the customers are differentiated and targeted as per their buying behaviour. The amount they are willing to spend, brand loyalties, frequency of purchase etc. For instance, in India, fairness creams are sold frequently and holds a good potential, however it is not the same in America. People in America there frequently purchase tanning products. Behavioural segmentation helps the companies to spot their target markets easily and push more sales. _- alll @ o-: TJ POSITIONING A product's positioning refers to how the potential buyers see the product. It is basically the perception that the target segment holds about the company's product. Philip Kotler defines it as: “the way a product is defined by customers on important attributes - the place a product occupies in the customer's mind relative to competing products” Positioning = Target Segment + Differentiation In other words, you get a position in the marketplace when you know who you are talking to, who you are going after (Target Segment) and when you show them how you are different from all the other products (Differentiation). READ MORE(S) The Positioning Formula: What is Positioning? (The Viagra example) <2 Super Heuristics | 17 MARKETING FLASHBOOK PoPs and PoDs © Points of Parity (POP} It refers to the attributes and the features of aproduct whichare similar to the attributes and features of the competitor's product, There are the homogenous features. © Points of Differentiation (POD}: It refers to the attributes of a product which makes the product stand tall among the competition as it offers Unique features, Remember, POPs allow you to remain in the competition, PODs make you win the competition. Perceptual maps A diagrammatic representation where the companies visually represent the perception of the potential customers which aives a detailed view of comnanv's nasitionina I Placement Salary @ x0 Qs Q vette °. ry Batch Size Sis” 2 19 Formula: What is Positioning? (The Viagra example) READ MORE(®) The Positio Re- positioning Itis a company's attempt to alter the target customer's perception of the product using different marketing mix techniques. It aims to create a better positioning for the product. It is when a company tries to alter the positioning of a competitor's product by means of aggressive or subtle advertising, Marketers are really cautious while planning a dispositioning exercise as it is usually not certain how the audience will react to it. co Siar Heuristics | 19 MARKETING FLASHBOOK B2B, B2C, C2C MARKETING © Business to Business (B28) trade happens when the business sells something to another business on beneficial terms. © For example: Alibaba, which allows entrepreneurs to buy in bulk, Metro Cash and camry Business to Consumers (82C) trade is when businesses sell products or services to consumers. Traditionally, this could refer to individuals shopping for clothes for themselves at the mall, diners eating in a restaurant etc. © Customers to Customers (C2C) trade presumes that all participants are equal. That's why this model is also called P2P: peer-to-peer, people-to-people or person-to- person. In ancient times C2C was a very common phenomena, where barter trade was prevalent. For example: BlaBlaCar, Skillshare, Quickr READ MORE) Marketplaces by types of participants: €2C, B2C and B2B sper Heuristics | 19 MARKETING FLASHBOOK PRODUCT LIFE CYCLE A product goes through a succession of stages right from its launch till its end of life. At every stage of the product the marketing strategy and marketing mix has to be altered for the product to survive in a competitive environment. Stage of product cycle are © Introduction © Growth © Maturity ° Decline ‘The 4 Life Cycle Stage Growth and their Marketing Implications Introduction Maturity Destine Shake-out Sales Time “Low eeles \epereming sees soak sees {a Feting sales * High cost per ‘Cost per customer fals '* Cost per customer | * Cost per customer low exstorer {+ Profs rise 1 lowest * Profs fall + Financial losses | Increasing No. ' Profits high ‘Innovative customers | _ of customers |* Mass market + Fou (f any) competitors |More competitors + Stable number ' | ofcompetitors | Source:https,//marketing-insider.eu/characteristics-of-the-product-life-cycle-stages separ Heuristics | 20 MARKETING FLASHBOOK PORTERS FIVE FORCES It is a framework that derives five forces that helps to analyse the competitiveness of an industry. It is an important tool that helps to analyse the industry in a dynamic business scenario. © Threat of new entrants Bargaining power of the buyers Bargaining power of the suppliers Threat of substitute products 0000 Rivalry with the competitors READ MORE() Deciphering Porter's Five Forces Super Heuristics | 21 MARKETING FLASHBOOK What is a brand? Brand is nothing but an intangible and irreplaceable asset that a company builds over jentity and most importantly, promises. time with its unique design, symbol Brand extension A brand extension is basically when a company uses same brand image, design and logo for alll of its products, This helps the company to easily push its new products to the customers leveraging its existing goodwill For example: Dove was mainly known for soaps. But now it is extended to many products like shampoo, deodorant and body wash. The brand extension of the dove for the new products has been a great success READ MORE) https://www.marketing91.com/brand-extension/ Brand Positioning It is similar to the product's positioning, it defines the mind-set of the customer regarding the brand. This eventually describes the credibility of the brand in the market. Brand equity Brand equity is the value that the brand possesses for the company i.e. the commercial value that is derived from the customer's perception, regarding the brand. Brand rituals Brand rituals are common strategy a brand uses for its products.{t is a consistent behaviour or action that helps the brand to maintain its relation with its customers. For example: Cadbury's celebration advertisement for every Raksha bandhan a ~~ ‘Heuristics | 22 MARKETING FLASHBOOK ii oN ; : } v v ————— In marketing, customer life time value refers to the estimated net profit attributed to the entire relationship with the customer. By calculating the CLV the businesses can take various important decisions like Sales, Marketing, product development and customer support, Super Heuristics | 23, MARKETING FLASHBOOK AIDA FRAMEWORK A framework that describes the effect the advertisement of the product has ona potential customer. It was coined in the late 1880's by an American Sales and advertisement legend Emlo Lewis. AIDA FOR ADVERTISING ICN Prt : Nore} eo Seer Heuristics | 24 MARKETING FLASHBOOK MARKETING FUNNEL ‘The marketing funnel is a concept that describes a journey of a potential customer turning into a loyal customer. This journey is ‘THE MARKETING FUNNEL LEAD GENERATION LEAD NURTURE SAS TANSACTON Sor ‘The marketing approach will need to be tailored in each phase in order to move a potential customer through the funnel making him a loyal customer. Co Seer Heuristics | 25 sonuu MARKETING FLASHBOOK MARKET RESEARCH Dees une iene Su Uh acu ay Peacoat Rea acne UE Moan a ea kee cg CEC Rc Ce oe Ure ORCI aCe cn ace Decca crc ica) Cerio ci) Peoe coc ri) Cesar ca) ON arg) a a a) DORON a aC eo Cera) DOC Cc 1. Primary Research Itis when the marketer conducts a fresh research on the target audience to Coase cc Ce ete aC Re a ea ns At two broad levels, you could see types of market research as: Tay eC ace READ MOREG) Witat sypes of Pumary Market Researes study should Luse? DCC Ca) Itis when the marketer makes use of the existing data (internal or external to the company), internet data, published reports to conduct the research. pee SZ bal Jo READMORE@) Super Heuristics | 20 CONSUMER BEHAVIOUR Consumer behaviour refers to the buying tendencies of a consumer. For marketers studying the psychology of their potential target customers and what affects their decision- making process is crucial Factors that affect consumer behaviour J © Cultural ‘The culture of the society a potential customer stays in alters the buying pattern and behaviour. For example: McDonald's menu, as mentioned above, had to be altered before they entered Indian markets, as beef burgers here would never be accepted, © Social Being social animals we get influenced by our peers, like colleagues at work, friends and family. We unknowingly adapt their buying patterns as well. Not only this but also our social status forces us to purchase certain luxury products and other dear products accordingly. For example: Even our breakfast choices change, if we move from Mumbai to Gujarat. A good example of our choices change when our peers do! © Personal People tend to take their buying decisions as per as their personal comfort and situation, There could be many factors that affect the the buying behaviour like: © Occupation © Age © Economic condition © Personality © Psychological Perception of an individual regarding the product alters his or her choices at the time of purchase. Current emotions and beliefs and attitude also alter the buying patterns. For example: There could be a difference of opinion between two people who live in the same household and this is the effect of psychological factors.

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