MBA ZC411

Marketing Management
Semester - II 2020-21
EC1 Experiential Learning

EC1 Experiential Learning Assignment submitted as part of course MBA ZC411

# Name Roll Number Bits ID

1 M BALA KRISHNA MOHAN 2020MB21289 2020MB21289@wilp.bits-pilani.ac.in

April 2021
WILP, BITS-PILANI
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EC1 Experiential Learning Assignment – MBA ZC 411

MARKETING CONCEPTS - Definition, Illustration and Examples.

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 Table of Contents
Concepts Page No.
Brand Positioning 4
POP / POD 5
Brand Extension 6
Psychographic Segmentation 7
Value Proposition 8
Production Concept of Marketing 9
Co-Branding 10
Ingredient Branding 11
Price Skimming 12
Push Strategy 13
Bulk-Breaking as a channel management function 14

Product System 15
Product Differentiation based on form 16
Captive Product Pricing 17
Compensatory Model of Buying Decision 18 3
 Concepts Definition
Brand Positioning Brand positioning has been defined Dove soap from Unilever The positioning of the Dove brand
by Kotler as “the act of designing
the company’s offering and image
to occupy a distinctive place in the
mind of the target market”. In other
words, brand positioning describes
how a brand is different from its
competitors and where, or how, it
sits in customers’ minds.
Illustration Remarks
against the competition is very
well defined. Their most recent
campaigns have appealed to the
appreciation of women's natural
beauty.
An example of this is the "Real
Beauty" campaign, in which
women were called to describe
themselves to a professional
portraitist who designed them.
Then a person whom these
women had known quickly before
the action described them to the
portraitist who ended up drawing
much prettier women from the
description of other people.
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 Concepts Definition
POP / POD Points-Of-Parity (POP) refers to
the attributes or benefit
associations which are not unique
to the brand but would actually be
shared with other brands.
Points-Of-Difference (POD) refers
to the attributes or benefits
consumers strongly associated with
a brand, positively evaluate, and
believe they could not find to the
same extent with a competitive
brand.
Illustration Remarks
Snickers from Mars Points of Difference:
incorporated • Positioned as a food that
satiates hunger.
• Not too expensive
• Targeted towards heterosexual
males.
• Many ingredients.
• Associated with athletics and
intensive activities.
Points of Parity:
• World renowned brands.
• Most recalled chocolate
brands.
• Innovative Product categories.
• Advertising Platforms.
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 Concepts Definition Illustration Remarks
Brand Extension Brand extension (also called brand Honda Motors Hero Motors is the pioneer in Cars
stretching) is a marketing strategy manufacturing and has good
where the company makes use of its brand in system. Using the brand
existing established brand name for extension concept, they entered in
a new product or a new product Honda Gensets, Hinda Scoters,
category. Honda Lawn movers etc.
This new product or product
category (called a spin-
off) substantially different yet
logically related to the well-known
original product. This helps it to
leverage the brand equity and
positioning of the existing famous
brand to get initial traction.

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 Concepts Definition
Psychographic Psychographic segmentation is
Segmentation defined as a market segmentation
technique where groups are formed
according to psychological traits
that influence consumption habits
drawn from people’s lifestyle and
preferences. It is mainly conducted
on the basis of “how” people think
and “what” do they aspire their life
to be.
Illustration Remarks
The organic food industry Psychographic segmentation
is one of the fastest- helps you position the same
growing industries that product differently for different
focuses on a specific target types of people. It prevents you
audience. from falling into the trap of one
size fits all marketing. It also
For example, because of makes it possible to attract a
their social standing, some diverse group of customers
families will refuse to by a with the same product without
Maruti Suzuki. It doesn’t making material changes to it.
matter if it’s the perfect car
for them; they wouldn’t be
caught dead in it.
As the definition states, one
should have a deep
understanding of their:
Lifestyle
Social status
Activities
Opinions
Interests
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 Concepts Definition Illustration Remarks
Value Proposition A value proposition refers to the Uber – The Smartest Everything about this directly
value a company promises to deliver Way to Get Around - Tap contrasts the typical experience of
to customers should they choose to the App, get a ride. getting a taxi – no phone calls to
buy their product. A value Zoom - Never stop living disinterested dispatchers, no
proposition is part of a company's painful conversations trying to
overall marketing strategy. The value explain to a stressed-out cabbie
proposition provides a declaration about where you need to be, and
of intent or a statement that no fumbling for change or
introduces a company's brand to worrying you’ve got enough bills
consumers by telling them what the in your wallet. Just a fast, efficient
company stands for, how it way to get where you’re going.
operates, and why it deserves their This is reinforced by the
business. aspirational messaging toward the
top of the Uber homepage, which
states that “Your day belongs to
you.”

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 Concepts Definition Illustration Remarks

Production Concept The basic proposition of theApple - I Phone
of Marketing production concept is that
customers will choose products and
services that are widely available
and are of low cost. So business is
mainly concerned with making as
many units as possible. By
concentrating on producing
maximum volumes, such a business
aims to maximize profitability by
exploiting economies of scale.
Apple is one company which
works highly on product concept
to get the best products to their
consumers. Apple's products are
perceived to be very high quality
with innovative features and great
performance. Customers go after
the products of Apple and that
creates a marketing pull

Managers try to achieve higher

volume with low cost and intensive
distribution strategy. This seems a
viable strategy in a developing
market where market expansion is
the survival strategy for the
business. Companies interested to
take the benefit of scale economies
pursue this kind of orientation.

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Concepts Definition Illustration
Co- Co-branding is a marketing strategy Uber & Spotify
Branding that utilizes multiple brand names on a
good or service as part of a strategic
alliance.
Co-branding is the strategy that strives
to capture the synergism of combining
two well-known brands into a third,
unique branded product.
In other words, a co-branding strategy
will introduce a new product or service
to the market. This product or service’s
characteristics are then rooted in the
attributes and core competencies of
the two cooperating brands.
Co-branding can be a very effective
activation that bolsters both brands
working together rather than acting
independently. It helps extend reach,
awareness, and sales potential by
capturing prospective consumers of
each brand.
Remarks
Uber & Spotify
Co-branding Campaign: Soundtrack for
Your Ride. Music-streaming app Spotify
partnered with ride-hailing app Uber to
create "a soundtrack for your ride." This is
a great example of a co-branding
partnership between two very different
products with very similar goals -- to earn
more users.
Here's how it works: When riders are
waiting for an Uber ride, they're prompted
to connect with Spotify and become the DJ
of their trip. Users can choose from their
own playlists to determine what they'll
listen to.
This smart co-branding partnership helps
fans of Uber and Spotify alike enjoy better
experiences thanks to the app. And they
might be more interested in picking Uber
and Spotify over competitors knowing they
can enjoy their next ride listening to their
favorite tunes. 10
 Concepts Definition
Ingredient Branding Ingredient branding is Intel Inside
a marketing strategy where a
component of the business
is branded as a separate entity. This
helps to add more value to the
parent company and make their
product/service seem superior to its
competitors.
Ingredient Branding is a specific form
of brand collaboration, distinct from
co-branding that highlights a specific
component or brand attribute to
enhance a product or service that
can potentially become a category
point-of-parity, create multi-level
visibility, awareness, differentiation
and preference in the down-stream
value chain
Illustration Remarks
Ingredient Branding is a marketing
strategy where a component or an
ingredient of a product or service
is pulled into the spotlight and
given it’s own identity. Everyone is
familiar with the now famous
“Intel Inside”, and it’s
corresponding success.
The “Intel Inside” campaign
established Intel as a household
brand name. The campaign
addressed a new problem faced
by tech companies as their
products began to reach lay
consumers. Intel Inside was a
landmark in “ingredient branding.
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 Concepts Definition
Price Skimming Price skimming involves initially
charging the highest price your
market will accept for your product,
then lowering it over time. The logic
behind this is that you attempt to
“skim” off the top market segment
to which you appeal, at the time
when your product is freshest,
thereby maximizing your profit early
on.
Illustration Remarks
The latest iPhone This might not strictly be SaaS, but
Apple’s approach to product
pricing epitomizes price skimming
in a way that almost anyone will
recognize. With each new product
offering, Apple’s prices for newly
released products seem to be so
high that they’re almost dissuasive
— and yet, there are always
queues outside Apple stores on
iPhone release days.
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 Concepts Definition
Push Strategy A push marketing strategy, also
called
a push promotional strategy, refers Pay Rs.10,000 and shop for advertising and customer
to a strategy in which a firm
attempts to take its products to
consumers – to “push” them onto In this Push strategy
consumers.
... Push marketing strategies
are commonly used to gain and
increase product exposure.
Illustration Remarks
Examples of Push Marketing : The most common promotional
Big bazar Profit club. methods for push marketing are
Rs.12,000 + Get additional promotions.
benefits worth Rs. 3000.
In a push strategy, each step of the
• Trade show promotions. supply chain "pushes" the product
• Direct selling to forward to the next step along the
customers in showrooms. supply chain---the manufacturer
• Negotiating with retailers promotes the product to the
to stock a product. wholesalers; wholesalers to the
• Maintaining an efficient retailers; and retailers to the
supply chain. consumer.
• Appealing looking A push strategy tries to sell directly
packaging. to the consumer, bypassing other
• Point of sale displays. distribution channels.
• Radio ads.
• TV ads. An example of this would be selling
insurance or holidays directly.
With this type of strategy, consumer
promotions and advertising are the
most likely promotional tools.
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 Concepts Definition Illustration Remarks
Bulk-Breaking as a Breaking bulk is an activity Selling Eggs directly by Breaking bulk—the consumer can
channel performed by intermediaries in a Poultry farm, to buy small quantities at a
management distribution channel which involves customers time. Consumers can buy a dozen
function the buying-in eggs and a quart of milk at one
of products in large quantities and o time. Channels move large
n- quantities of foods from farmers,
selling them in much smaller quantit processors, and manufacturers,
ies. taking advantages of economies
of scale. Distributing. The
consumers can buy at a
neighborhood store, which in turn
can buy from a regional
warehouse.

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 Concepts Definition Illustration Remarks
Product System A product system is a collection of Maruti Suzi follows All automobile manufacturing
unit processes connected by flows product system units flow this product system
of intermediate products which manufacturing. concept.
perform one or more defined Example : Mahindra, Tata, Maruti,
functions.” A description of this Honda etc.
system consists of unit processes,
product flows, and elementary flows
along the system boundaries, and
in-between product flows within
this system.

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 Concepts Definition Illustration Remarks
Product Product differentiation is a Lakme cc complexion This tactic aims to help businesses
Differentiation based marketing strategy designed to care cream is a develop a competitive advantage
on form distinguish a company's products or differentiated product and define compelling, unique
services from the competition. ... and its benefits include selling propositions (USPs) that
Product differentiation goes hand in sun protection (SPF 20), set their product apart from
hand with developing a strong value moisturizer, brightener, competitors. In addition,
proposition so that a product or and can act as a makeup organizations with multiple
service is attractive to a target base for an even tone. products in their portfolio may
market or audience. use differentiation to separate
their various products from one
another and prevent
cannibalization.

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 Concepts Definition Illustration Remarks
Captive Product Captive product Customers may notice that even buying a Captive product pricing
Pricing pricing is the pricing of razor requires multiple purchases. Retailers increases sales of several
products that have both sell the razor handle as the main product atproducts by offering core
a "core product" and a an initial rate. However, customers then and accessory items that
number of "accessory need to purchase a razor blade or cream to require each other for full
products." complete their orders, increasing their use. Within the captive
transaction amount. pricing strategy, core
products usually require a
These types of captive items have short one-time purchase of
product life cycles, increasing the need to relatively low value.
buy such accessories. While some
companies offer disposable razors that can
be purchased as one unit, they lack in
quality. In this way, the captive product
model increases the company's sales and
revenue.

Video Games. A console is the core item

when purchasing video games and is
useless without the necessary accessories.

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 Concepts Definition
Compensatory A compensatory decision-
Model of Buying making strategy weighs the
Decision positive and negative attributes
of the considered alternatives
and allows for positive
attributes to compensate for
the negative ones.
A multi-attribute model in
which one attribute
compensates for another in the
overall preference for an object
or idea.
Illustration Remarks
Honda Car / Tayota Car / Compensatory rules allow for
Nissan Car. the positive evaluation
of one brand attribute to
balance out the negative
attributes. Non-
compensatory decision
rules do not allow for positive
and negative attributes to
balance out (“Decision and
Purchase”, n.d.).
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Thanks

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