MARKETING COMPENDIUM 2019

WRITTEN & COMPILED

AGNIBHA MUKHOPADHYAY
PRATEEK SINHA
S E N I O R C L U B C O O R D I N AT O R S
BRANDWAGON – The Marketing Club, IIFT
1.What is the difference between Marketing, Selling, Advertising and Branding?

It is the most common question by almost all the FMCGs and S&M companies.
Let us define all the 4 terms to know exactly what the difference between them is.
Marketing
 According to Philip Kotler, marketing is “Meeting needs profitably”
We can define marketing in simple words as a communication between marketers and
individuals in which marketers inform individuals that their needs and wants can be
satisfied with our product or service.
Marketing is something that creates a favorable environment for Sales to happen.
Note: In case of B2B marketing, individuals can be taken as communities or a whole
firm.
Ex ITC launched Fiama , here are some marketing activities –
• Market planning and Strategizing
• Branding and creating Sales Message for product
• Building and updating your website , blog, Facebook page etc.
• Market Research , customer surveys
• Special promotional and launch events
• Advertising and public relations. Direct mail and e-newsletters
• Setting up hoardings, running TV/Cinema commercials
• Asking current customers for referral for more business

Selling

Selling is the action part of marketing. It can be defined as the process under which a
customer makes a purchase or the activities that gets the customer to make a purchase.
Ex Insurance agent trying to sell insurance, Salesperson selling encyclopedias door to
door.
Selling activites include answering presenting, questions, making suggestions,
addressing concerns, negotiating and most important asking for the sale and completing
Sales agreement etc.
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 The Difference
Selling concept takes an inside-out perspective. It starts with the factory, focuses
on company’s existing products, and calls for heavy selling and promoting to
produce profitable sales.
Marketing concept takes an outside-in perspective. It starts with a well-defined
market, focuses on customer needs, coordinates all activities that will affect
customers, and produces profits through creating customer satisfaction.
Thus, key differences between Marketing and Selling are as follows:

Marketing Selling

Marketing is money going OUT(Cost Centered) Selling is money coming IN (Revenue centered)

Emphasis on Customer need satisfaction by Emphasis on Sales maximization by selling

developing product as per customer needs products already produced

Customer focused Product/Service focused

Pull type (customer is attracted towards Push type (product is somewhat forced on to
product) the customer)

Advertising
Advertising is nothing but announcing about a product or a service publicly through
printed notice, commercials, voice messages or word of mouth.

We will talk about advertising more in detail later in this document.

Branding
Branding can be defined as the process of creating the desired impression. It is a
promise of quality and trust.
A brand is intangible. It can be a name, logo, design or any symbol. A strong brand
name evokes a clear impression in our mind, examples being Apple, Godrej, Pepsi, etc.
(Think about your perception of Karbonn mobile phones in comparison to Apple or
OnePlus)
 Marketing

Advertising Selling

Branding

Above figure is a simple explanation of the fact that Marketing, Advertising and
Branding are done in order to increase the sales.

2. STP ( Segmentation, Targeting and Positioning )

When we start selling a product, we cannot communicate it individually to every

single person on earth. Also, one product cannot cater to the needs of all the
consumers. So, we must have a particular target market to which we look to
communicate the product.
For this, marketers use STP Modelling. STP is the process through which
marketers get to know “where” & “how” the product must be communicated in order
to get maximum sales.

STP is useful as it helps in identifying the most valuable types of customers, and
then develop marketing messages that ideally suit them. It allows a marketer to
engage with each group better, personalize the messages, and increase the sales.

Marketers need to cater to each group differently. We can take some examples, like,
Thums up which targets adventurous people, Apple which targets rich customers
and Royal Enfield which targets macho personalities. Also, both Wheel and Surf-
Excel: are washing powder brands of HUL. Yet they don’t compete with each other
as both target different segments of the population. Wheel targets those with low
economic background who wash clothes with hands, while Surf-Excel targets the
premium population which uses a washing machine to wash its clothes.

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1. Segmentation
In segmentation, we divide the customers into different groups or segments with
some common characteristics. There are mainly 4 variables on the basis of which
market is segmented. These are the following:
 Demographic: By personal attributes such as age, marital status, gender, ethnicity,
education, or occupation, income, education, household size etc.
Demographics explain “Who our customer is”
Ex – Sunsilk shampoo targets women while Head & Shoulders targets men.

 Psychographic: It refers to personality and emotions which are linked to purchase

choices, such as values, lifestyle, risk aversion, etc.
Psychographics explain “Why our customer buys”
Ex – Both Dettol and Santoor target health-conscious people, while Hamam and
Medimix target people who like herbal products.
 Geographic: segmentation by country, state, region, area, metropolitan or rural
location, population density or even climate, etc.
Ex – In African countries, soap bars are manufactured to be very large in size, due to
the large body-sized African people. It is done so that it fits in their hands properly.
 Behavioral: It refers to the nature of the purchase, brand loyalty, usagelevel, the
benefits that consumers are looking for, etc
Ex – Multiple surveys have proved that elderly people are highly brand loyal. So, it is
difficult to make elder people purchase and use a new product.
.
2. Targeting
The second step is targeting. We have to decide which segment (or segments) to target.
There are multiple factors like segment size, profitability from each segment, potential
growth in each segment, etc. After a detailed analysis, one, two or maximum three
segments
. are chosen for targeting the product.
3. Positioning
This is the third and last step of STP analysis. Here, our goal is to identify how we want
to position our product to the selected target groups. First, we consider the USP of the
product: why would people buy our product among several competitive products? Then
we write the positioning statement for the target group. It helps create an idea in the
minds of the customers of the experience they will have if they choose the product
ahead of others.
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 Example – Let us now try to do the STP of an iPhone. Here, the market can be
segmented on the basis of income. Target market would be the young, tech-savvy
generation with a premium economic background. So, we can write its positioning
statement as,
“Apple iPhone provides the young tech-savvy generation with the newest
technologically upgraded and inbuilt applications than any other cell phone. We do
this by employing the best brains of the world and by providing them with the best
resources to work.”

Customer base Segmentation

Targeting
Segmentation Targeting Positioning

 Identify variables for  Evaluate the potentialand  Write a separate

segmentation of market attractiveness of each
segment
 Determine important
characteristics of each  Select all the targeted
segment segments (targeted
groups)
positioning statement for
each targeted segment
 Communicate the
positioning statement to
the Targeted Group

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 3. MARKETING MIX
We are now done with the STP analysis. Now, what next? We know whom to
communicate to and how to communicate to them. But communicate what?
The answer to this question leads us to the famous 4 P of Marketing. The collection of
these 4 Ps is called the MARKETING MIX. It is a crucial tool in determining what a
product is offering to the customer. The 4 Ps in the marketing mix is as follows:
 Product – Product is the first of the 4 Ps of marketing. It can be either a tangible good
or an intangible service that fulfils a need or want of the customer. Whether we sell
FMCG products or mobile phones or it’s a saloon, it’s essential that we have a clear
grasp of exactly what our product is and what makes it unique before we can
successfully market it.
• There are three levels of product
1. Core Product: The need that it satisfies. Eg: BMW satisfies the need for
transportation.
2. Actual product: It is the product that you have or want to have. Eg: Blue
coloured BMW with boss speakers and sunroof etc.
3. Augmented Product: It is the non-physical part of the product. It can also be
said as the excess that you get beyond the tangible product. Eg: Warranty of 3
years in your car, customer service when you call their number, delivery at your doorstep,
etc.
 Price – Once we have properly defined our product, we can start making some pricing
decisions. Price determinations are done on the basis of supply, demand and marketing
strategies. Price determination is crucial as it impacts the profit margin. Similar products
and brands are positioned differently based on their prices. Better the USP, higher the
price.
 Place – It is important for a product to determine what are the critical locations at which
it needs to be sold in order to convert a consumer into a potential customer. Today, the
most important place at which marketing is and must be done is through online
channels.
 Promotion – We’ve got a product, its price and place. Now it’s the time to promote the
product. It is the method of communication by which a marketer provides information
about the product to the general public. Promotion includes advertisements, personal
selling, word of mouth publicity etc. If marketers are giving some kind of discount, then
also it comes into promotional strategies.

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4. The 7 Ps of Marketing or Extended Marketing Mix ?

We have already defined the 4Ps of marketing. These 4Ps are defined for a product.
But, for a service, customers look for three more elements. So, for communicating a
service to the customers, marketers have defined 7Ps. The first 4 Ps are same as
Product, Price, Place and Promotion. Next 3 Ps are following:

People – The employees of a firm are important in marketing, as they are the
ones who deliver the service to the customers. It is important to hire & train the
right people, whether they are service staff, front line Sales staff or the
Managing Director.
Remember, people buy from people that they like, so the attitude, skills and
appearance of all staff need to be first class. Some ways in which people add
value to an experience, as a part of the marketing mix, are - training, personal
selling and customer service.

Process – process is an element of service that sees the customer experiencing

an organization’s offering. It's best viewed as something that your customer
participates in at different points in time. Here are some examples to help your
build a picture of marketing process, from the customer's point of view.
Example - Going on a cruise - from the moment that you arrive at the dockside,
you are greeted; your baggage is taken to your room. You have two weeks of
services from restaurants and evening entertainment, to casinos and shopping.
Finally, you arrive at your destination, and your baggage is delivered to you.
This is a highly focused marketing process.

Physical Evidence – Physical evidence is the material part of a service. Strictly

speaking there are no physical attributes to a service, so a consumer tends to rely
on material cues. There are many examples of physical evidence, including
some of the following:
1.The packaging of the product gives a unique characteristics to the product.
2. Physical evidence can be in the form of website, blogs, facebook page also.
3. The look and feel of a restaurant can be described as the ambience. Ex, Music
it plays, sofa it uses, the lighting it has maintained.

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5. What are the 4 As of Marketing?

When we consider rural markets, these are somewhat different from the urban
market because of many factors such as income level, infrastructure, less number of
shopping outlets and very low awareness. As the Indian rural market is very large
and still an untapped one, many companies try to enter & cater to this segment.
Alone, the 4Ps are not sufficient here. So, marketers strongly claim that there are 4
more elements which must be considered and keep in mind while planning to enter
the rural market. These 4 elements are collectively called the 4 A of marketing.
These 4 As are:
 Acceptability - The Acceptability component of the 4A model says that the
offered product or service must suit the rural market we are trying to enter
into. If people will accept it, then only can further steps will be taken.

 Availability – This is the next challenge after acceptability. Once the product
is acceptable, marketers need to ensure its availability. But, due to poor
infrastructure and poor market access, it is not an easy job. So, marketers
collaborate with multiple NGOs and other firms which ensure the availability
of every important daily used product for rural consumers.

 Affordability – Most of the consumers in Rural market earn low incomes and
get daily wages. So, after acceptability and availability, this is the third biggest
challenge for marketers. The product must be affordable, or it will not get
sold. This is the reason why in India small sachets of products like shampoo,
oil or moisturizer cream were launched and became highly successful.

 Awareness – The rural consumer doesn’t care much about brands, as they are
unaware of them. They rely more on local brands and rarely change their
preference. But, as most of rural India is not even accessible to conventional
advertising media, it is again not easy for a marketer to spread awareness
through conventional ways.
Examples - HUL has its own company organized media. Godrej and Coca-
Cola use radio as the awareness media. ITC has started its E-Choupal
initiative to literate rural people about brands.

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 6. As a marketer, how will you decide when to advertise, when to reduce the
price, when to invest in research and when to delist a product?

As a marketer, we have to decide a lot of things about a product, such as its marketing
and advertisement, packaging, price, exploration of new markets and even more.

Marketers use the concept of PRODUCT LIFE CYCLE for this.

Fig. 4 Stages of Product Life Cycle

The above graph is known as the PLC curve. It describes the sales volume of a
product at 4 different stages of it. These stages are the following:

Introduction Stage – This is the initial stage of a product. Relative market share for
the product is low initially, and that’s why sales volume is low. As there is a lot of
research needed, this stage is very costly to the company.

Growth Stage – In this stage, the product is now known in the market. Its sales
increases and the need for R&D decreases. So, it starts becoming profitable for the
company now. This is the time when managers must invest money to increase its
marketing in order to increase the sales further.

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Maturity Stage – In this stage, the sales of the product stabilize slowly. The
challenge for the marketer now is to maintain the market share. This is the time when
most of the weak products go out of the competition. So, it is required for a marketer
to invest in R&D or marketing only if it gives a competitive advantage to it over its
substitutes or other similar products.

Decline Stage – The sales start declining at this stage. Now comes the ‘war of
prices’. Consumers don’t have much of a reason to purchase the product other than
low prices at this stage. This decline could be because of market saturation or a new
and better product (Like Floppy Disks declined due to the entry of CDs and DVDs,
and then these declined after Pen Drives and Hard Disks’ introduction into the
market).

Note:

 It is not necessary that every product reaches the decline stage. Many products
continue to grow if consumers still need them.
 In some books, you may find 6 stages of PLC. They add ‘Development stage’
before introduction and ‘saturation stage’ before the decline. Actual PLC
curve was introduced with only 4 stages. In the modern curve, these two stages
have been separately added just to make it comparatively clearer to marketers.

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 7. As a marketer, if you handle multiple products in a company, how will
you choose which product to invest in?

Sometimes companies have multiple products in their portfolio. It is not possible to

invest money in all of them, So, as a manager, we must choose in which product to
invest. This can be done by using the BCG Matrix.

The BCG Matrix or Boston Consulting Group’s Matrix is also called ‘product
portfolio matrix’ or ‘Growth-Share Matrix’. It was designed to help a business to
consider growth opportunities by analyzing brands or products to decide where to
invest and which product must be stopped producing. All the products of a company
are classified into 4 categories based on their market share and the industry’s market
growth.
The market growth rate is nothing but industry attractiveness, while market share is
the competitive advantage of the product over its substitutes or similar products.

Two assumptions are taken here. The first one is that growing market share of a
product generates more cash for the firm, as this is competitive with the other similar
products. The second one is that if the market growth rate is high, there will be more
cash used by the firm in order to remain in the competition.

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Dogs: These products have a low relative market share as well as low growth rate.
So, these neither require much cash nor generate it. But, the problem is the low
potential of the product. These products are not suitable for a company and hence a
firm must have the minimum number of Dogs.

Question Mark: In these products, the market growth rate is high while the relative
market share is low. So, these products require a lot of cash but generate very less
revenue on their part. Companies don’t want these kinds of products, but they hold
on to them because if market share increases, it can become a Star Product.
Star: The products with a high market share as well as high growth rate. These
products use and generate a lot of cash and typically balance it. The good thing about
these products is that once the product reaches the maturity stage of product’s life
cycle, it becomes a Cash Cow.

Cash Cow: The products with low market growth and high market share. These
products generate a lot of cash and require very less amount. Hence, these are the
best products for a company. Companies can use this generated cash in their Star
Products.

Note: We have to keep in mind that the simplicity of the BCG matrix ignores one
important thing. It can also happen that cash generation from a Dog product of a
company is greater than the cash generation from its cash cow. It depends on the
sector in which that product lies (e.g. apparel or food).

Coca Cola BCG

Matrix

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 9. What is an Ansoff Matrix?

Ansoff matrix, or Product-Market Growth Matrix, is also an important tool for the
marketers to formulate the strategies to grow in a market. It depends on whether the
product is new or an existing one and the market for the product is new or an existing
one.

Product
Existing New
Existing

Market Product
Penetration Development
Market

Market
New

Development Diversification

Existing product means the company is already functional in one region, and now
it is trying to introduce the same product in another region, e.g. When iphone was
launched in India.

New product means that that the company has not produced or sold that product
anywhere before, e.g. launch of Patanjali products

Existing market means the market for those products is already there and other
similar products are already being sold, e.g. entry of Motorola mobile phones in
India, when all brands were already existing.

New Market means that those kinds of products have never been used by the
common people in that region before, e.g Ikea entering Indian market. Ikea started
off expanding to markets relatively close in terms of culture as to its home country
(Sweden) before targeting more challenging geographic areas such as China and the
Middle-East.
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Now, following are the four cases which can take place with the combination of
existing - new products and existing - new markets:

Market Penetration: When both the product as well as the market are existing, a
firm must use market penetration strategy to compete with other similar products. It
is generally the least risky strategy as it gets an advantage of the company’s already
existing resources, skills and capabilities. In this, a manager must focus on the
aggressive marketing of the product and be devising a price strategy.

Market Development: If the product is already existing but the market is new in
which it is being introduced by the firm, the firm must use a Market Development
strategy. It is riskier than the penetration strategy as there is no prior market here.
So, before advertising of the product, managers must create a need or want of that
product for common people.

Product Development: If the product is new but the market is already existing in
which it is being introduced by the firm, the firm must use Product Development
strategy. In this, the firm has to generate enough competencies in order to compete
with the already existing players. If the firm already has loyal customers and it is
entering into a new domain, then it should first target its existing customers to start
selling the new product.

Diversification: When both the product as well as the market are new to the
common people, a firm must use Diversification strategy. It is generally the riskiest
one among the four. Some marketers call this quadrant the “suicide cell”. The only
advantage is that if the product has potential, it might provide a huge return to the
firm.

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 10. What are Porter’s Five Forces? Why do marketers use it?

Porter’s Five Force Model is an important tool which is used to analyze the
competitiveness of the market. According to this, there are 5 industry forces which
decide the intensity of competition and the potential of profitability, which further
comments on the attractiveness of a market.

Threat of
new
entrants

Bargaining Rivalry Bargaining

power of among power of
Suppliers Competitors Buyers

Threat of
substitute
products

Fig. Porter’s Five Force Model

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The five forces are the following:

Rivalry among Competitors: The most important force in this model is the number
of competitors and their competitive advantage over others in the market. If there
are many competitors for a similar kind of product, the market is unattractive.

Bargaining power of Suppliers: If the number of suppliers is less, they will have
an upper hand over fixing price. As a manager, we have to maintain the production.
If there is no other supplier for a particular part or raw material, we will have to
compromise and adhere to the suppliers’ demands. So, very less number of suppliers
often makes the market unattractive.

Bargaining power of Buyers: If the total number of buyers for that product is less,
they have an advantage. To maintain sales, we have to compromise on their terms
then. It again reduces the profitability of the firm. So, very less number of buyers
also makes the market unattractive.

Threat of substitute products: If the market is full with very close substitute
products of our product, the switching cost for a buyer would be very low. In that
case, there will not be any loyal customer, as buyers will purchase on the basis of
price and quality only. It makes our product’s profitability less. So, a high number
of close substitutes also makes the market unattractive.

Threat of new entrants: If the market is profitable, and there are not very high
barriers to entry by the government or social laws, there is a high chance that new
players will enter into it. It would decrease the profitability of our product. So, low
barriers to entry also make the market unattractive.

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 11. What are the different types of marketing?

There are several types of marketing in this modern era. There is no particular book
or website where all the types are given. Some important types, which we use
generally, are following:

Emotional Marketing: The most successful type of marketing is Emotional

Marketing. It draws out a story which gets connected with the audience in some
personal way because of which consumers make buying decisions driven by feelings
rather than logic. Emotional marketing creates meaningful relationships that result
in brand loyalty, positive PR and long-term connections.

Emotional marketing can be Inspirational, Aspirational, expressing love and

nostalgic.

Following are some examples of Emotional Marketing and Advertisement

Emotional Marketing by British Airways

Inspirational: https://www.youtube.com/watch?v=JR8i9p3pcPg
Aspirational: https://www.youtube.com/watch?v=YnX--tCaHqE
Expressing love: https://www.youtube.com/watch?v=SFzTl3NZtsQ
Nostalgic: https://www.youtube.com/watch?v=mk8Z0WbSWV0

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Cause Related Marketing: It is now a famous marketing strategy used by firms, in
which they work for a social cause. They associate themselves with a cause and it
benefits both the society as well as the company.
Following are some examples of CRM:

https://www.youtube.com/watch?v=g4-BsyNLq1A
https://www.youtube.com/watch?v=wJukf4ifuKs

Guerrilla Marketing: It is a marketing strategy to promote the brands in an

unconventional way. It is generally done if the budget is low. It requires high energy
and creativity which focuses on grasping the attention of the public. It makes a
memorable impression if people get surprised by their way of marketing.

Following are some examples of Guerrilla marketing:

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https://www.youtube.com/watch?v=-cvv1oC-ZaM
https://www.youtube.com/watch?v=xMHgjHvlqT0

Experiential Marketing: It directly engages (also called engagement marketing)

the public and lets them experience the product or brand on their own. It makes a
close bond between the consumer & the brand and people get a fun & memorable
experience.

Following are some examples of Experiential marketing:

https://www.youtube.com/watch?v=jzIBZQkj6SY
https://www.youtube.com/watch?v=iXccAzruLq0

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Ambush Marketing: In simple words, it’s the type of marketing under which a
company markets its products or services through an event for which it is not an
official sponsor.

Following are some examples of Ambush Marketing:

https://www.youtube.com/watch?v=KBV69DTmX2M
https://www.youtube.com/watch?v=2VJQZ_WMXVQ

Covert/Stealth Marketing: Stealth or undercover marketing is a technique in which

people don’t actually know that they’re being marketed to. The technique was
devised as many people don’t like hard selling and forced marketing on them. In this
way, a product is marketed in such a way that people don’t know they are being
marketed and the work of a marketer gets done.

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Following are some examples of stealth marketing:

McDonald’s marketing in the movie ‘Chak de India!’

Parle-G’s marketing in the movie ‘Aabra ka Daabra’

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 Marketing of Vaio laptops and MacBook through movie scenes

Crowdsourcing: It’s a new marketing type in which some task is given to the public
openly. People try to complete that task and they themselves get a connection with
the brand.

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Q.12. What are the different types of pricing methods?

Pricing is one of the most difficult tasks for a marketer to decide. With a lower price
the marketer needs to compromise with profit and with a higher price, he/she has to
compromise with sales. There are some common pricing techniques which help in
both marketing and selling of the product. These are the following:

Premium Pricing: A high price set by companies if their product’s quality is much
better than other products in their category, e.g. Raymond, iPhone, 5-star hotels, etc.

Economy Pricing: A low price set by marketers when they’re looking to sell the
maximum volume of the product. They do so by cutting off the marketing costs and
keeping the production cost minimum. Some examples are generic medicines, local
food items, un-branded clothes, etc.

Penetration Pricing: When the marketers try to sell the product where many
competitors are already existing, they adopt penetration pricing strategy. In this, the
product is first priced very low. Once the customer base gets strong, the price is
increased. Some examples are Lehar namkeens, Haldiram’s snacks (chips packets
were cheaper initially), Reliance network (night calling especially), etc.

Predatory Pricing: It is the higher degree of penetration pricing when the product
is sold at almost free, e.g. Jio 4G data. It is banned in many countries like UK and
China because most competitors can’t compete with something like this.

Skimming Pricing: The strategy in which the product is first kept at a high price,
and then gradually the price is decreased. It is adopted when the product is one of its
kind initially. When the competitors see profit in this, they produce substitute
products and the price of original one has to be reduced. Some examples are mobile
phones (Nokia 1100 initially cost more than 30,000 INR), computers, video games
(Game boy advance and Nintendo), etc.

Dynamic/Surge Pricing: The pricing strategy adopted on the basis of customer’s

demand and product’s supply. It is also called variable pricing. It is generally used
in booking a flight ticket (prices increased as seats are getting booked), in cabs like

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Ola and Uber (Fare increases due to a high demand of cabs) and now in railways
also (in Rajdhani, Shatabdi and Duronto).

Psychological Pricing: Psychological or charm pricing is used to attract customers.

In this strategy, prices are kept like 99 INR or 249 INR in place of 100 INR or 250
INR respectively. In India, Bata company got famous due to its ’95 paise price tag’
(Pricing 124.95 INR or 299.95 INR)

Captive Product Pricing: A pricing strategy in which core product is kept at a low
price while captive product, which is necessary to use the core product, is kept at a
high price. It is generally adopted when the core product can be used for a long time
without the need to purchase the new one, but the captive product must be purchased
again and again. The best example for this is the Gillette shaving blade where the
razor comes at a low price but its blade is costly. Other examples are Printers and
ink cartridges, Video game consoles and video game DVD’s, etc.

Optional Product Pricing: Companies adopt this strategy to cross-sell the products
when a customer starts buying from them. They keep the core product at a low to
normal price and then sell different accessories/services related to that product. For
example, Movies are charged normally but the cost of watching a movie increases if
we buy popcorns and Coldrinks. Some other examples are booking in flights with a
confirmed window seat, extra topping and side dishes with pizza, etc.

Bundled Pricing: companies sell a package of goods or services at a cheaper rate

than the price if bought separately, e.g. 5 in 1 meal of KFC, buy 2 get 1 free offers,
etc.

Geographical Pricing: Almost all products and services have different prices in
different locations. Prices vary due to different distribution costs, different tariffs
and customers’ ability to purchase. For example, iPhones cost lower in Dubai.
Dominos’ Pizza costs about 4 times more in the UK than India.

Brandwagon – The Marketing Fraternity @ IIFT

Q.13. What is a distribution channel?

A distribution channel is a path through which goods and services reach to

consumers from vendors. There can be several intermediaries between them, like
wholesalers, distributors, retailers, etc.

The first one is called direct distribution, as the manufacturer is selling directly to
the consumer, e.g. some farmers sell directly to the public. The second one is called
one tier distribution as one intermediary (Retailer) is used here, e.g. Walmart.
Similarly, the third and the fourth are known as two tier distribution and three tier
distribution respectively.

Q.14. What is the difference between ATL, BTL and TTL?

ATL: Above The Line marketing is a marketing targeted towards the mass
population. Mass media like TV commercials, radio advertisements, newspaper
advertisements, Internet, are used to promote a brand under ATL marketing.

BTL: Below The Line marketing is the kind of marketing wherein marketers target
a small group of people. Pamphlet distribution in an area, banners, posters,
hoardings, roadshows, are all examples of BTL marketing. It focuses more on
customer conversions than brand building. It is comparatively cheaper and has a
better ROI. So, if a company has a tight budget, it uses BTL marketing over ATL.

TTL: Through The Line marketing is a modern marketing concept. In today’s world,
a marketer needs to use both ATL and BTL at the same time for his/her brand’s
promotion. TTL is the integration of ATL and BTL marketing strategies. It is also
known as 360 Degree marketing. For example, most products are marketed digitally
and then for customer conversion, communication is also done below the line.

Q.15. What is the difference between B2B, B2C, C2C and C2B?

B2B: Business to Business. In this business model, an organization sells its products
or services to another organization, which either uses it or adds value to it to sell
further to consumers. These organizations need not advertise to the general public.
They generally do their marketing to only specific businesses. Ex – Automobile
manufacturing companies like Bosch Ltd.
Brandwagon – The Marketing Fraternity @ IIFT
B2C: Business to Consumer. In this business model, companies sell directly to the
consumers. These are the companies which advertise themselves to the general
public. Ex- Coca-Cola, Pepsi, Dell, Amazon, etc.

C2C: Consumer to Consumer. Nowadays consumers sell to other consumers

directly through multiple platforms such as OLX & Quikr.

C2B: Consumer to Business. Nowadays this form is also getting very famous. In
this model, consumers sell their products to the companies (generally used products)
and these companies either add some value or refurbish it to use or sell to other
consumers.
Ex – Selling second-hand cars on cardekho.com, selling our own surveys to the
companies, selling notes, information or other data to a company, etc.

16. What is Social Media marketing?

Social Media marketing is the fastest growing marketing trend in the current
scenario. It is the process of using social media websites as a platform to gain
attention in order to market the products and services.. Some most common
examples are Facebook, YouTube, Twitter, Instagram, Pinterest, etc.

Companies use these websites to share the pics and videos of their products and the
information about their products and services. Some companies also resolve many
queries of the consumers on social media itself. Also, it is a way of marketing in
which almost no cost is to be incurred while the conversion rate is also good.

17. What is digital marketing? How it is different from Social Media

Marketing?

Digital marketing is the process by which a company advertise its products or

services through the help of electronic media, such as Computers, mobile phones,
SMS, display boards, etc. Social media marketing is also a part of digital marketing.

Digital media is important because it lets the user have information access anywhere
& anytime. Due to its presence today, consumers can also rate our products which
can be checked and followed by the rest of the target market. People can compare
the products with the help of digital media easily.

Brandwagon – The Marketing Fraternity @ IIFT