UNDERSTANDING

MARKETING
MANAGEMENT

● Philip Kotler: "Marketing Management is the analysis, planning,

implementation and control of programmes designed to bring about desired
exchanges with target audiences for the purpose of personal and of mutual
gain. It relies heavily on the adoption and coordination of product, price,
promotion and place for achieving responses.”

● The concept of marketing can be viewed from social and managerial

perspectives.
● According to American Marketing Association (2004) – “Marketing is an organisational
function and set of processes for creating, communicating and delivering value to customers
and for managing relationships in a way that benefits both the organisation and the
stakeholder.”
● AMA (1960) – “Marketing is the performance of business activities that direct the flow of
goods and services from producer to consumer or user.”
● According to Eldridge (1970) – “Marketing is the combination of activities designed to
produce profit through ascertaining, creating, stimulating, and satisfying the needs and/or
wants of a selected segment of the market.”
● According to Kotler (2000) – “A societal process by which individuals and groups obtain what
they need and want through creating, offering, and freely exchanging products and services of
value with others.”

● 1. Study of Consumer Wants and Needs

● 2. Study of Consumer behavior
● 3. Production planning and development
● 4. Pricing Policies
● 5. Distribution
● 6. Promotion
● 7. Consumer Satisfaction
● 8. Marketing Control
● Hospitality marketing is collection of efforts focused towards the increase of
revenue in the hospitality industry. It deals with various segments of the
hospitality industry e.g. hotels, restaurants, resorts, theme parks and other
entertainment and accommodations operations promoting their products or
services.

● Hospitality Marketing differs from generalized marketing as the products

and services offered are diverse, intangible, and heterogeneous and have
the shortest shelf lives.

● • It yields profits.
● • It leads to satisfaction.
● • It is ever evolving.
● • It is always objective / target based.
● • It is an amalgamation of disciplines like economics, sociology, statistical
analysis, consumer behavior and management etc.
 ● Marketing has evolved as an important function with time as the service
providers have understood that a satisfied consumer would return and also
promote the brand thus saving costs and assuring better returns. It has
progressed from barter exchanges to e commerce and shopping mall sites
where multiple brands are available under one umbrella. This has affected
the buying behavior and trends in terms of more money spent in single visit
to such places.

● During the industrial revolution era the focus was on the means of production, and it assumed
that the customers will want the product/service being offered. It had no orientation towards
incorporating the needs of potential buyers. Majorly the products and services matched the
thoughts and perceptions of the manufacturer and the person owning the production unit.
● Production Concept is a concept where goods are produced without taking into consideration
the choices or tastes of the customers.
● It is one of the earliest marketing concepts where goods were just produced on the belief that
they will be sold because consumers need them.
● Managers focusing on this concept concentrate on achieving high production efficiency, low
costs, and mass distribution.
● But with the continuous industrialization more and more players entered into the market, the
space available to sell the product squeezed because too many people were selling the same
product. That is why it became too obvious that the mass production of goods which is the heart
and soul of production concept can no longer work because of too many me too products.
 ● This concept shifted focus from bulk production to quality orientation when
managers realized that bulk production is not giving enough output for sustainability
against increasing competition.
● The product concept proposes that consumers will prefer products that have better
quality, performance and features as opposed to a normal product.
● A company should therefore focus on its product development and invest in
continuous product improvements. The concept is truly applicable in some niches
such as electronics and mobile handsets.
● One of the advantages of product concepts is that marketers do not need to carry out
extensive research into their target audience.
● Thus companies need to take innovations and features seriously and provide only
those which the customer needs. The customer needs should be given priority.

● The sales concept saw efforts moving forward by assuming that consumers have to be
coaxed / pushed aggressively to make a decision to buy a certain product or service.
● The Selling Concept proposes that customers, be individual or organizations will not
buy enough of the organization’s products unless they are persuaded to do so through
selling effort.
● The aim is to sell what they make rather than make what the markets wants.
● The selling philosophy assumes that a well-trained and motivated sales force can sell
any product.
● This was the time when customer got the due attention from the goods manufacturers and
service providers. They understood that consumer needs to be given the importance
when it comes to designing a new product or service.
● The marketing concept is the most followed ideology by top companies. This is because,
with the rise of economy, consumers have become more knowledgeable and choosy as a
result of which the organization cannot concentrate on what it sells but rather it has to
concentrate on what the customer wants to buy.
● The market concept thus relies on three key aspects:
• What is the target market – The first step is to determine exactly what the target market
is. This can be done by market research and deciding which target market will give the
best returns.
• 2) What are the needs wants and demands of the target market – A further step in
marketing research is the consumer preferences study. This study will help the firm
determine the needs wants and demands of the target market thereby helping the firm in
deciding their strategies.

● 3) How best can we deliver a value proposition – In this step, the firm
decided what strategy it needs to adopt. What kind of value should the firm
create and deliver. How should it integrate its different departments?
Ultimately, the firm decides how to apply the marketing concept within itself
to deliver a better customer experience.
 ● The concept of Social Marketing emerged in 1972, promoting a more socially
responsible, moral and ethical model of marketing, countering the consumerism way of
thinking that had been promoted by then.
● This concept holds that the organization’s task is to determine the needs, wants, and
interests of target markets and to deliver the desired satisfactions more effectively and
efficiently than competitors (this is the original Marketing Concept).
● Additionally, it holds that this all must be done in a way that preserves or enhances the
consumer’s and the society’s well-being. The organization believes in giving back to the
society by producing better products targeted towards society welfare. They see it as
affording an opportunity for companies to enhance their corporate reputation, raise
brand awareness, increase customer loyalty, build sales, and increase press coverage.

● This concept is also referred as:

“The human concept”,
• “The intelligent consumption concept”,
• “The ecological imperative concept”, &
• “Cause- related marketing”.
The societal marketing concept calls upon marketers to balance three considerations in
setting their marketing policies, viz. • company profits • consumer satisfaction • public
interest
Societal Marketing concept focuses on: • Less Toxic Products • More Durable Products •
Products with Reusable or Recyclable Material
● CRM is focused on integration of company’s efforts to interact with existing and potential
customers using technology.
● Online communication, direct feedback collection immediately after the use of a product
or a service have become almost mandatory. E.g. receiving an automated call from the
airline, a tour operator or the railways after the journey is completed for rating the
various services offered during the travel.
● It results in better synchronization of technology, customer feedback, changes in quality,
marketing efforts and end sales.
● For Ex: Call centers have been setup with 24X7 services to assist any customers as and
when a need arises. It also tracks client or guest history as in hotels to offer a similar
experience on the next visit or the next purchase. This also helps in better forecasting of
demand and supply by integration of past trends, figures, sales history etc. with
upcoming trends and market conditions.

UNDERSTANDING CONSUMER
BEHAVIOUR
● The factors influencing consumer behavior
● The stages in buying process
● Product Management:
• Classification of products
• New product development
• Product mix decisions
• Product life cycle

● “Consumer behavior is the actions and the decision processes of people who purchase goods and
services for personal consumption” – according to Engel, Blackwell, and Mansard.
● Consumer buying behavior refers to the study of customers and how they behave while deciding to
buy a product that satisfies their needs. It is a study of the actions of the consumers that drive them to
buy and use certain products.
Importance of Consumer Behavior:
Understanding consumer behavior is essential for a company to find success for its current products as
well as new product launches. Every consumer has a different thought process and attitude towards
buying a particular product. If a company fails to understand the reaction of a consumer towards a
product, there are high chances of product failure.
● Consumer Differentiation
● Retention of Consumers
● Design Relevant Marketing Programme
● Predicting Market Trend
● Competition
● Innovate new products
● Stay Relevant in the market
● Improve customer service

● Psychological Factors
● Personal Factors
● Social Factors
● In daily life, consumers are being affected by many issues that are unique to their thought
process. Psychological factors can include perception of a need or situation, the person's ability
to learn or understand information, and an individual's attitude. Each person will respond to a
marketing message based on their perceptions and attitudes. Therefore, marketers must take
these psychological factors into account when creating campaigns, ensuring that their
campaign will appeal to their target audience.

● Personal factors are characteristics that are specific to a person and may not relate to other
people within the same group. These characteristics may include how a person makes
decisions, their unique habits and interests, and opinions. When considering personal factors,
decisions are also influenced by age, gender, background, culture, and other personal issues.
● For example, an older person will likely exhibit different consumer behaviors than a younger
person, meaning they will choose products differently and spend their money on items that
may not interest a younger generation.
● the third factor that has a significant impact on consumer behavior is social characteristics.
Social influencers are quite diverse and can include a person's family, social interaction, work
or school communities, or any group of people a person affiliates with. It can also include a
person's social class, which involves income, living conditions, and education level. The social
factors are very diverse and can be difficult to analyze when developing marketing plans.
● However, it is critical to consider the social factors in consumer behavior, as they greatly
influence how people respond to marketing messages and make purchasing decisions. For
example, how using a famous spokesperson can influence buyers.

● Buying is a sequential process i.e. every buyer moves through different stages of
decision making process. The standard buying process has a maximum of six
stages as explained by many authors in their books and articles. These steps are
summarized here for an easier understanding of the concept.
● Stage I. Problem Recognition
● Stage II. Information Search
● Stage III. Evaluation of Alternatives
● Stage IV. Purchase decision
● Stage V. Purchase
● Stage VI. Post-Purchase Evaluation
● Introduction:
Product Management is becoming an important function of marketing. With
the passage of time, product management has undergone many changes. It
is no more a department of churning out promotional materials but is has
now become the nerve center of the organization. Effective product
management is a practical, purposeful and positive approach of improving
the company results, through the efforts of a competent and committed team,
coordinating manufacturing, marketing and sales. In short, it can be said that
product management involves.

● The word “product” can be defined in many ways. The definitions differ
according to the difference in the connotation in which it is being used.
Technically, a product can be defined as anything that is produced, whether
as the result of generation, growth, labor, or thought, or by the operation of
involuntary causes; as, the products of the season, or of the farm; the
products of manufactures; the products of the brain. In manufacturing,
products are purchased as raw materials and sold as finished goods. In
project management, products are the formal definition of the project
deliverables that make up or contribute to delivering the objectives of the
project. In marketing, a product is anything that can be offered to a market
that might satisfy a want or need
● There are several ways of classifying products :
● 1) On the basis of the user status, products may be classified as consumer
goods and industrial goods.
● 2) On the basis of the extent of durability, products may be classified as
durable goods and non-durable goods.
● 3) On the basis of tangibility, products may be classified as tangible goods
and 10 non-tangible goods. These non-tangible goods are referred to as
services.

The following four major types, and analyse their characteristics and
marketing strategies : 1) Consumer goods 2) Industrial goods 3) Durable
and Non-durable goods 4) Services
● Product development is the process of designing,
creating and marketing new products or services to
benefit customers. Sometimes referred to as new
product development (NPD), the discipline is
focused on developing systematic methods for
guiding all the processes involved in getting a new
product to market.

1. Product Development is a process of improving the existing product or to introduce a new

product in the market. It is also referred as New Product Development. The functions of
product development are as follows :-
1. Creation of an entirely new product or upgrading an existing product,
2. Innovation of a new or an existing product to deliver better and enhanced services,
3. Enhancing the utility and improving the features of an existing product,
4. Continuous improvement of a product to satisfy rapidly changing customer needs and wants.
 ● Idea Generation
● Idea screening
● Concept and Development
● Market Strategy Development
● Business Analysis
● Product Development
● Test Marketing
● Commercialization

● Product mix or product assortment refers to the number of product lines that an organization
offers to its customers. A product line is a group of related products manufactured or
marketed by a single company. Such products function in a similar manner, sold to the same
customer group, sold through the same type of outlets, and fall within the same price range.
● Product mix consists of various product lines that an organization offers, an organization may
have just one product line in its product mix and it may also have multiple product lines. These
product lines may be fairly similar or totally different, for example - Dishwashing detergent
liquid and Powder are two similar product lines, both are used for cleaning and based on the
same technology; whereas Deodorants and Laundry are totally different product lines.
● An organization's product mix has the following four dimensions:-
1. Width,
2. Length,
3. Depth, and
4. Consistency.

● Width
● The width of an organization's product mix pertains to the number of
product lines that the organization is offering. For example, Hindustan Uni
Lever offers wide width of its home care, personal care, and beverage
products. The width of the HUL product mix includes Personal wash,
Laundry, Skincare, Haircare, Oral care, Deodorants, Tea, and Coffee.
● Length
● The length of an organization's product mix pertains to the total number of
products or items in the product mix. As in the given diagram of Hindustan
Uni Lever product mix, there are 23 products, hence, the length of the
product mix is 23.
● Depth
● The depth of an organization's product mix pertains to the total number of
variants of each product offered in the line. Variants include size, color,
flavors, and other distinguishing characteristics. For example, the Close-up,
brand of HUL is available in three formations and in three sizes. Hence, the
depth of the Close-up brand is 3*3 = 9.
● Consistency
● The consistency of an organization's product mix refers to how closely
related the various product lines are in use, production, distribution, or in
any other manner.

● Let us take a small example to understand the product mix of Nike.

● Footwear – Boots for strikers, Midfielders, Defenders, Sneakers
● Apparels – Headwear, Tops/Polos, Jersey, Jackets, Shorts, Shocks
● Equipment – Ball, Bags, Watches
● Product Depth – 4 in Footwear, 6 in Apparels and 4 in Equipment
● Product Length – 14
● Product Width – 3
● Product consistency – High consistency Nike focus on health-conscious people.
 ● Product mix decision refers to the decisions regarding adding a new or eliminating any
existing product from the product mix, adding a new product line, lengthening an existing line,
or bringing new variants of a brand to expand the business and to increase the profitability.
• Product Line Decision - Product line managers take product line decisions considering the
sales and profit of each item in the line and comparing their product line with the competitors'
product lines in the same markets. Marketing managers have to decide the optimal length of
the product line by adding new items or dropping existing items from the line.

•Line Stretching Decision - Line stretching means lengthening a product line beyond
its current range. An organization can stretch its product line downward, upward, or
both ways.
1.Downward Stretching means adding low-end items in the product line,
for example in the Indian car market, watching the success of Maruti-Suzuki in the
small car segment, Toyota and Honda also entered the segment.
2.Upward Stretching means adding high-end items in the product line,
for example, Maruti-Suzuki initially entered the small car segment, but later entered
the higher-end segment.
3.Two-way Stretching means stretching the line in both directions if an organization is
in the middle range of the market.
•Line Filling Decision - It means adding more items within the present range of the
product line. Line filling can be done to reach incremental profits or to utilize excess
● Product Life Cycle can be defined as "the change in sales volume of a specific product offered
by an organization, over the expected life of the product.“
● Product Life Cycle is associated with variation in the marketing situation, level of competition,
product demand, consumer understanding, etc., thus marketing managers have to change the
marketing strategy and the marketing mix accordingly.
● The time period of the product life cycle and the length of each stage varies from product to
product. The Life Cycle of one product can be over in few months, and of another product may
last for many years. One product reaches maturity in years and another can reach it in few
months. One product stays at maturity for years and another just for few months. Hence, it is
true to say that length of each stage varies from product to product.

1. The four major stages of the product life cycle are as follows:-

1. Introduction,
2. Growth,
3. Maturity, and
4. Decline.
• At this stage, the product is new to the market and few potential customers are aware of the
existence of the product. The price is generally high. The sales of the product are low or may
be restricted to early adopters. Profits are often low or losses are being made, this is because of
the high advertising cost and repayment of developmental cost. At the introductory stage:-
The product is unknown,
• The price is generally high,
• The placement is selective, and
• The promotion is informative and personalized.

• At this stage, the product is becoming more widely known and accepted in the market.
Marketing is done to strengthen the brand and develop an image for the product. Prices may
start to fall as competitors enter the market. With the increase in sales, profit may start to be
earned, but advertising cost remains high. At the growth stage:-
The product is more widely known and consumed,
• The sales volume increases,
• The price began to decline with the entry of new players,
• The placement becomes more widely spread, and
• The promotion is focused on brand development and product image formation
• At this stage, the product is competing with alternatives. Sales and profits are at their peak.
Product range may be extended, by adding both withe and depth. With the increases in
competition, the price reaches its lowest point. Advertising is done to reinforce the product
image in the consumer's minds to increase repeat purchases. At maturity stage:-
The product is competing with alternatives,
• The sales are at their peak,
• The prices reach to its lowest point,
• The placement is intense, and
• The promotion is focused on repeat purchasing.

• At this stage, sales start to fall fast as a result product range is reduced. The product faces
reduced competition as many players have left the market and it is expected that no new
competitor will enter the market. Advertising cost is also reduced. Concentration is on
remaining market niches as some price stability is expected there. Each product sold could be
profitable as developmental costs have been paid at an earlier stage. With the reduction in sales
volume, overall profit will also reduce. At decline stage:-
The product faces reduced competition,
• The sales volume reduces,
• The price is likely to fall,
• The placement is selective, and
• The promotion is focused on reminding.
Marketing Process

●Marketing Process
●Market Environment
●Marketing Mix
●Segmentation, Targeting Positioning
● “A series of steps that allow organizations to
identify customer problems, analyze market
opportunities, and create marketing materials to
reach the desired audience”.
● Step 1: Understanding The Marketplace And Customer Needs And Wants
● It is important to understand customer needs, wants, and demands to build want- satisfying market
offerings and building value-laden customer relationships. This increases long-term customer equity for
the firm.
● Step 2: Designing A Customer-Driven Marketing Strategy
● Focus areas for designing a marketing strategy:
• Selecting customers to serve -defining the target market
• Deciding how to serve customers in the best way – choosing a value proposition

● Selecting customers to serve:

● The company first decides who it will serve and divides the market into segments of
the customer. Then it goes after specific sections of the market or its target market.
● They target customers based on their level, timing, and nature of demand.
● Choosing a value proposition
● They decide how it will serve their customer. That is how it will differentiate and
position itself in the market. A brand’s value proposition is the set of values and benefits
that it promises to deliver its customers.
● Companies need to design strong value propositions to give them the greatest
advantage in their target markets.
● Step 3: Constructing an integrated marketing plan that delivers superior value
● The company’s marketing strategy outlines which customers the company will serve
and how it will create value. Then the marketer develops integrated marketing plans
that will the intended value to target customers.
● It consists of the firm’s marketing mix (4Ps), the set of marketing tools the firm uses
to implement its marketing strategy.
● The marketing program builds customer relationships by transforming the marketing
strategy into action.
● For this, it needs to blend all of these marketing tools into a comprehensive, integrated
marketing program that communicates and delivers the customers’ expected value.

● Step 4: Build Profitable Relationships

● Customer relationship management is the overall process of building and maintaining
profitable customer relationships by delivering superior customer value and
satisfaction.
● Customer relationship management aims to produce high customer equity, the total
combined customer lifetime values of all of its customers.
● The key to building lasting relationships is the creation of superior customer value and
satisfaction.
● Companies today want to acquire profitable relationships and build relationships that
will increase their share of the customer portion of the customers purchasing that a
company gets in its product categories.
● Step 5: Capturing Value From Customers
● Customer relationship management’s ultimate aim is to produce high Customer equity
– total combined lifetime values of all of the company’s current and potential
customers.
● The more loyal to the company’s profitable customers, the higher are the customer
equity. Customer equity may even be a better way to measure its performance than
market share or current sales.
● Marketers cannot create customer value and build customer relationships by
themselves. They need to work closely with other company departments and with
partners outside the firm.
● In addition to being good at customer relationship management, they also need to be
good at partner relationship management.
●

● The Marketing Environment includes the

Internal factors (employees, customers,
shareholders, retailers & distributors, etc.)
and the External factors( political, legal,
social, technological, economic) that
surround the business and influence its
marketing operations.

● Some of these factors are controllable while

some are uncontrollable and require business
operations to change accordingly. Firms must
be well aware of its marketing environment
in which it is operating to overcome the
negative impact the environment factors are
imposing on firm’s marketing activities.
1. Internal Environment – The Internal Marketing Environment includes all the factors that
are within the organization and affects the overall business operations. These factors include
labor, inventory, company policy, logistics, budget, capital assets, etc. which are a part of the
organization and affects the marketing decision and its relationship with the customers. These
factors can be controlled by the firm.
2. Microenvironment- The Micro Marketing Environment includes all those factors that are
closely associated with the operations of the business and influences its functioning. The
microenvironment factors include customers, employees, suppliers, retailers & distributors,
shareholders, Competitors, Government and General Public. These factors are controllable to
some extent.
• Customers– Every business revolves around fulfilling the customer’s needs and wants. Thus,
each marketing strategy is customer oriented that focuses on understanding the need of the
customers and offering the best product that fulfills their needs.
• Employees– Employees are the main component of a business who contributes significantly to
its success. The quality of employees depends on the training and motivation sessions given to
them. Thus, Training & Development is crucial to impart marketing skills in an individual.
• Suppliers– Suppliers are the persons from whom the material is purchased to make a finished
good and hence are very important for the organization. It is crucial to identify the suppliers
existing in the market and choose the best that fulfills the firm’s requirement.
• Retailers & Distributors– The channel partners play an imperative role in determining the
success of marketing operations. Being in direct touch with customers they can give
suggestions about customer’s desires regarding a product and its services.

• Competitors– Keeping a close watch on competitors enables a company to design its

marketing strategy according to the trend prevailing in the market.
• Shareholders– Shareholders are the owners of the company, and every firm has an objective of
maximizing its shareholder’s wealth. Thus, marketing activities should be undertaken keeping
in mind the returns to shareholders.
• Government– The Government departments make several policies viz. Pricing policy, credit
policy, education policy, housing policy, etc. that do have an influence on the marketing
strategies. A company has to keep track on these policies and make the marketing programs
accordingly.
• General public– The business has some social responsibility towards the society in which it is
operating. Thus, all the marketing activities should be designed that result in increased welfare
of the society as a whole.
● . Macro Environment-The Macro Marketing
Environment includes all those factors that exist outside the
organization and can not be controlled. These factors
majorly include Social, Economic, Technological Forces,
Political and Legal Influences.

• Political & Legal Factors– With the change in political parties, several changes are seen in the
market in terms of trade, taxes, and duties, codes and practices, market regulations, etc. So the
firm has to comply with all these changes and the violation of which could penalize its
business operations.
• Economic Factors– Every business operates in the economy and is affected by the different
phases it is undergoing. In the case of recession, the marketing practices should be different as
what are followed during the inflation period.
• Social Factors– since business operates in a society and has some responsibility towards it
must follow the marketing practices that do not harm the sentiments of people. Also, the
companies are required to invest in the welfare of general people by constructing public
conveniences, parks, sponsoring education, etc.
• Technological Factors– As technology is advancing day by day, the firms have to keep
themselves updated so that customers needs can be met with more precision.
 ● Identification of Opportunities: It helps an organization in exploiting the
chances or prospects for its own benefit. For example, if an organization
finds out that customers appreciate its products as compared to competitors’
products then it might encash this opportunity by giving discounts on its
products to boost sale.
● Identification of Threats: It gives warning signals to organizations to take the
required steps before it is too late. For example, if an organization comes to
know that a foreign multinational is entering into the industry then it can
overcome this threat by adopting strategies, such as reducing the product’s
prices or carrying out aggressive promotional strategies.
● Managing Changes: It helps in coping with the dynamic marketing
environment. If an organization wishes to survive in the long run then it has
to adapt to the changes occurring in the marketing environment.

● i. Become well acquainted with the changes in the environment.

● ii. Gain qualitative information about the business environment; which will help him to develop
strategies in order to cope with ever changing environment.
● iii. Conduct marketing analysis in order to understand the markets needs and wants so as to modify its
products to satisfy these market requirements.
● iv. Decide on matters related to Government-legal-regulatory policies in a particular country so as to
formulate its strategies successfully amidst these policies.
● v. Allocate its resources effectively and diversify either into a new market segment or totally into a new
business which is outside the scope of its existing business.
● vi. Identify the threats from the environment in terms of new competitors, price wars, competitor’s new
products or services, etc.; and prepare its strategies on the basis of that.
● vii. Identify the opportunities in the environment and exploit these opportunities to firm’s advantage.
These opportunities can be in terms of emergence of new markets; mergers, joint ventures, or alliances;
market vacuum occurred due to exit of a competitor, etc.
● viii. Identify its weaknesses such as lower quality of goods or services; lack of marketing expertise; or
lack of unique products and services; and prepare strategies to convert its weaknesses into strengths.
● ix. Identify its strengths and fully exploit them in firm’s advantage. These strengths can be in terms of
marketing expertise, superior product quality or services, or giving unique innovative products or
services.

● Market segmentation is a process of dividing the market of potential

customers into smaller and more defined segments on the basis of certain
shared characteristics like demographics, interests, needs, or location.
Importance Of Market Segmentation:
● Makes it easier for the marketer to develop a different marketing mix for each
customer segment which is more likely to bring results.
● Increases the results of the marketing efforts as each of the groups witness
personalised marketing messages according to what stimulates them to do the task.
● Segmenting is dividing a group into subgroups according to some set bases. These bases range from age,
gender, etc. to psychographic factors like attitude, interest, values, etc.
● Gender
Gender is one of the most simple yet important bases of market segmentation. The interests, needs and
wants of males and females differ at many levels. Thus, marketers focus on different marketing and
communication strategies for both. This type of segmentation is usually seen in the case of cosmetics,
clothing, and jewellery industry, etc.
● Age Group
Segmenting market according to the age group of the audience is a great strategy for personalized
marketing. Most of the products in the market are not universal to be used by all the age groups. Hence,
by segmenting the market according to the target age group, marketers create better marketing and
communication strategies and get better conversion rates.

● Income
● Income decides the purchasing power of the target audience. It is also one of the key factors to decide
whether to market the product as a need, want or a luxury. Marketers usually segment the market into
three different groups considering their income. These are
● • High Income Group
● • Mid Income Group
● • Low Income Group
● This division also varies according to the product, its use, and the area the business is operating in.
● Place
● The place where the target audience lives affect the buying decision the most. A person living
in the mountains will have less or no demand for ice cream than the person living in a desert.
● Occupation
Occupation, just like income, influences the purchase decision of the audience. A need for an
entrepreneur might be a luxury for a government sector employee. There are even many
products which cater to an audience engaged in a specific occupation.

● Geographic Segmentation
● Geographic segmentation divides the market on the basis of geography. This type of market segmentation
is important for marketers as people belonging to different regions may have different requirements. For
example, water might be scarce in some regions which inflates the demand for bottled water but, at the
same time, it might be in abundance in other regions where the demand for the same is very less.
 ● Demographic segmentation divides the market on the basis of demographic variables like age, gender,
marital status, family size, income, religion, race, occupation, nationality, etc. This is one of the most
common segmentation practice among marketers. Demographic segmentation is seen almost in every
industry like automobiles, beauty products, mobile phones, apparels, etc and is set on a premise that the
customers’ buying behaviour is hugely influenced by their demographics.

● Behavioural Segmentation
● The market is also segmented based on audience’s behaviour, usage, preference, choices and decision making. The
segments are usually divided based on their knowledge of the product and usage of the product. It is believed that the
knowledge of the product and its use affect the buying decision of an individual. The audience can be segmented into –
● • Those who know about the product,
● • Those who don’t know about the product,
● • Ex-users,
● • Potential users,
● • Current Users,
● • First time users, etc.
● People can be labelled as brand loyal, brand-neutral, or competitor loyal. They can also be labelled according to their
usage. For example, a sports person may prefer an energy drink as elementary (heavy user) and a not so sporty person
may buy it just because he likes the taste (light/medium user).
● Psychographic Segmentation
● Psychographic Segmentation divides the audience on the basis of their personality, lifestyle and attitude.
This segmentation process works on a premise that consumer buying behaviour can be influenced by his
personality and lifestyle. Personality is the combination of characteristics that form an individual’s
distinctive character and includes habits, traits, attitude, temperament, etc. Lifestyle is how a person lives
his life.

● Segmenting the market offers the following benefits to the businesses –

● • Better Matching Of Customer Needs: Different customers have different needs. By segmenting the
target market and developing homogeneous groups, it becomes easier for the marketer to cater to the
customer needs better.
● • Identification Of Gaps In The Market: Market segmentation also results in the identification of target
groups that are not targeted well in the market. This opens up opportunities for the business to exploit and
make profits from.
● • Increased ROI: Since market segmentation helps serve the customer needs better, it not only decreases
spending unnecessarily but it increases repeated sales, and customers also return the favour in the form of
referrals, word of mouth, etc.
● • Customer Retention: Customers retain with a business which understands their needs and fulfils them as
they require. Segmentation helps in this.
● • Increased Market Share: Through market segmentation and targeted communication, a competitive
advantage can be built which results in increased market share.
● Even though there are many advantages of market segmentations, there are some disadvantages and
limitations as well.
● • Extensive Research And Development: The process of market segmentation requires the business to do
extensive research which is not feasible for some of the businesses.
● • Expensive Process: Segmentation is an expensive process, both in terms of time and money. It requires
the business to spend a lot to identify different groups and market to them differently according to their
needs.

● Usage
● Product usage also acts as a segmenting basis. A user can be labelled as heavy, medium or light user of a
product. The audience can also be segmented on the basis of their awareness of the product.
● Lifestyle
● Other than physical factors, marketers also segment the market on the basis of lifestyle. Lifestyle
includes subsets like marital status, interests, hobbies, religion, values, and other psychographic factors
which affect the decision making of an individual.
● The marketing mix definition is simple. It is about putting the right product or a combination thereof in
the place, at the right time, and at the right price.

● PRODUCT
● A marketing mix always begins with a product to sell. In the early development phase of your product, it
is extremely important to carry out extensive research on the life cycle of the product you are creating.
All products have their own life cycle including the growth phase, the maturity phase, and the sales
decline phase. Once a product reaches the sales decline phase, marketers need to find new ways to
increase sales again. When developing the right product, it’s important to ask yourself a series of
questions to make sure your product is better than your competitors, i.e. what does the client want from
the product? Or, how, where and why the client uses the product?

● PLACE
● In a marketing mix, place refers to the position and distribution of the product you are selling in a place
that is accessible to your target audience, this could be a high street shop, an online store, or mail order.
Examples of distribution strategies include:intensive, exclusive, selective and franchising.
● To make sure you position your product in the best possible place, it’s vital to understand your customer
and what their shopping habits may be. Therefore, to develop a distribution strategy, you need to ask
yourself the following questions:
● • Where do clients look for my product?
● • Where do clients usually shop for products?
● • Should I sell the product online?
● PRICE
● Pricing is an extremely important component to your marketing mix as it determines your profit and
costing of your product. Altering the price of a product can affect the entire marketing strategy, whilst
also affecting the sales and demand of your product.
● As a newcomer to the market, it’s tempting to set your prices high, especially if you know your product is
worth the price you are asking for. However, it’s unlikely that your target audience will be willing to pay
the price, simply because your brand is only starting out so you’re not as recognisable or trustworthy –
this comes with time.
Pricing also helps consumers to determine the perception of your product. For example, a lower priced
product is deemed less inferior in terms of quality and ability, as opposed to a highly priced product.

● PROMOTION
● In a marketing mix, promotion is an element that can boost sales and brand recognition through
advertising, sales promotion, sales organisation, and public relations. When promoting a product, you
may decide on all of the promotion elements above, or simply choose the techniques that will target your
audience more effectively. However, in order to create a successful product promotion strategy, here are a
number of questions to ask yourself first:
● • When is the best time to promote my product?
● • What is the strategy my competitors are using?
● • Should I use social media to promote the product?
● How can I send marketing messages to my target audience?
● • What marketing channel is the best to promote my product for my audience?
● The promotional strategy you use is also dependent on your budget, your communication and how you
want to get your message across, and your target market.
● PEOPLE
● Another important element in the marketing mix is people. This includes whether or not your target
audience is large enough, and if there is a large enough demand for your product or not.
● Consumers aren’t the only important people to consider in your marketing strategy, you also have to take
into the account the people who will be delivering the marketing and sales of your product. To make sure
you deliver excellent service and marketing, you’ll need people who are fully trained for the job, whether
this is customer service assistants, copywriters, designers or a sales representative for example.

● PROCESS
● As for processes in the marketing mix, the process of your organisation can affect the performance of the
service you provide, involving the delivery of your product to consumers. As a business, it’s crucial to
make sure you’re easy to do business with, meaning you’re efficient, helpful and timely.
● By making sure your business has a good process in place, you will also save time and money due to
greater efficiency, and your standard of service to customers will remain consistent, which is excellent for
developing a brand reputation and customer loyalty.
● PHYSICAL EVIDENCE
● The final P in a marketing mix stands for physical evidence and it refers to everything your customers
sees or hears when interacting with your business. This includes your branding, your product packaging,
a physical space such as a shop, and even the way your staff and sales representatives act and dress – it’s
not all about the product! The way that you portray your brand physically has a great impact on
consumers and can either lead or an increase, or decrease, in sales.

MARKET THE SEGMENT: IDENTIFICATION OF SEGMENT

TARGETING THE MARKET: SELECTION OF THE SEGMENT

POSITIONING THE MARKET: PLACEMENT OF THE PRODUCT

● Decide on which segment to serve. STRATEGIES-
1. UNDIFFERENTIATED STRATEGY- Whole market is one, also known as scattergun approach.Basically offering a
basic product for all age group. Ex: Petrol

● Advantages- Maximum utilisation of resources, cost effective and specialisation. Disadvantages- Ignores consumer
concerns.
2. DIFFERENTIATION STRATEGY (Multisegmented)- means concentrating on two or more segments, offering a

differentiated marketing mix for each. Ex: Hotels.

Advantages- Varied coverage, Efficient use of resources, increased sale. Disadvantages- Multiple marketing mix,

increased cost.
3. NICHE/CONCENTRATED MARKETING- The niche marketer concentrates on being the very best within a single tiny
segment. Ex: Women Wear
Advantages- Useful for small firms, Specialisation, cost effective.

● Disadvantages- Risk, Competition.

4. MICRO MARKETING- Products suited to specific needs of specific individuals or local

customer group. Ex: Women Athleisure

●Advantages- Higher customer satisfaction, efficiency etc.

●Disadvantages- Costly and time consuming
The way in which a firm’s product is perceived by the customers in relation to competitor's
product.

Consumers build up a position for a product based on what they expect and believe to be
the most pertinent features of the product class. Marketers therefore need to find out first
what the pertinent features of the products are in the target consumers’ perceptions.

●POSITIONING STRATEGY: Top of the range,

● Service,
●Value for money,
●Reliability,
●Attractiveness,
●Country of Origin,
●Brand Name

● IDENTIFICATION OF Competitors
● Identify how customers perceive competitors
● Analyzing Competitors position
● Understanding customer requirements
● Selecting the position
● Monitoring the position
 Pricing Strategies

● Pricing Strategies
● Steps adopted in selecting the right price.
● Various pricing strategies
●
● Managing Channels
● Channel functions,
● Types of Marketing Channels
● Selecting channel partners,
● Conflict and cooperation in channel members,
● Sales force management.
● Definition of pricing
● Pricing is defined as the amount of money that you charge for your products, but
understanding it requires much more than that simple definition. Baked into your pricing are
indicators to your potential customers about how much you value your brand, product, and
customers. It's one of the first things that can push a customer towards, or away from, buying
your product. As such, it should be calculated with certainty.
● Pricing Strategy is a tool used to fix the price of a particular product or
service by considering various factors like the consumption of resources,
Market conditions, the ability of customers, demand and supply, need of the
product like regular item or occasional, etc.

● Premium Pricing:In the premium Pricing Strategy, the prices of goods and
services are a bit higher than the general prices. These are especially
concentrated on premium segment people. Some people may have a
perception that if the price of the product is high, then only the quality
maintains up to the mark. If anyone announces a discounted sale or half
price, they even suspect the reliability and quality of that product.
Especially for those people, the premium Pricing Strategy was used at the
same time they needed to maintain the quality, which means that price.
● Penetration Pricing:Penetration Pricing Strategy is one of the three major
Pricing Strategies. Generally, it is used by the new traders to gain a foothold
in the market. The sellers wanted to attract more customers by decreasing
the price of the product. So that the customers can show interest in
purchasing them and they can know the users and the quality of that
particular product. Once the customers get used to that product, the price
may increase.
● Economy Pricing:Economy pricing is one of the best Pricing Strategies,
which considers the generalized category of customers. These are majorly
affordable and reasonable prices as much as they can provide. The
economy class can be easily understood if we consider the scenario of flight
tickets. The least amount required for the entire journey will be fixed as the
price for the economy category.
● Price Skimming:It is an occasional Pricing Strategy where the well-known
product has reduced its sales drastically. Even though its market share is
very good for some time, with any kind of factor, they may be reduced, yeah
abnormally. Then to regain the market share and to get back its customers,
the price will be reduced.
● Psychological Pricing:Among the three major Pricing Strategies,
psychological pricing is also there. This Pricing Strategy can be seen
everywhere. For example, Bata introduces a new kind of shoes, and the
price is rupees 1,999 /-. The psychology of the human brain is ready to
accept 1999 rupees, and it is not ready to take 2,000 figure . That's the reason
several companies use this psychological Pricing Strategy. Usually,
electronic appliances were tagged with this Pricing Strategy. Bata, Samsung,
Amazon, etc., can be considered as examples of Pricing Strategies.

● Product Line Pricing:It is one of the differential Pricing Strategies. Here the
prices may vary based on the size of the product. Even though the product is
the same if we purchase a single product, the price may be 10 rupees. If we
purchase 5 pieces, the price may be rupees 45. Similarly, 100gm oil is 20/-
500ml is 80/-.
● Pricing Variations:Another differential Pricing Strategy is variations in the
pricing structure. It is usually observed in travel agencies. For example, if
we book an air ticket 2 months before, the price will be less. If we book the
ticket as we thought it would be before, the price may increase slightly. If we
want to buy Tatkal tickets, the price may increase more.These are the
various types of product Pricing Strategies. It is to be noted that apart from
these types, we have different kinds of classifications based on the
requirement, scenario, product, etc. So, the company needs to choose
according to its product, Market share, competitors, etc.
● Each of these seven strategies offers different advantages and downsides. At the very least, you must make sure
your pricing strategy covers your costs and includes a margin for profit. Determining your needs upfront can
clarify which strategies are ideal for your business.
● If you’ve already launched your business, you can experiment with these strategies until you determine what
works best for your business. You can also vary strategies between products depending on the market for each
good or service.
● To price your products so that they drive cash flow, you need to be clear on these things:
• The cost of producing your product, or
• The value of your services to your clients
• How much your customers have and want to spend
• The overall running costs of your business
• What critical costs need to be covered short-term (e.g. loan repayments)
• How your competitors price their products

● A marketing channel consists of individuals and firms involved in the process of

making a product or service available for use or consumption by consumers or
industrial users.
● Marketing channels are the ways that goods and services are made available for use by
the consumers. All goods go through channels of distribution, and marketing depends
on the way goods are distributed. The route that the product takes on its way from
production to the consumer is important because a marketer must decide which route
or channel is best for his particular product.
 ● a. Information – The marketing channels perform the task of collecting and disseminating of
marketing information about customers, competitors as well as potential customers and other
market forces.
● b. Promotion – Persuasive communication is disseminated through the channels to the customers.
The channels also often help in the design of these communication messages.
● c. Negotiation – The channel members are the ones who negotiate with other channel members and
customers to facilitate the transfer of ownership.
● d. Financing – The marketing channels work towards the acquisition and allocation of funds
required to finance inventories at different levels of the marketing channels.
● e. Risk taking – The channel members assume the risk for carrying out the channel work.
● f. Physical possession – The channel members also take the responsibility of storage of goods during
the successive stages to the final consumers.
● g. Ordering – This function is with regards to the communication of channel members regarding the
intention to purchase.
● h. Payment – The channel members also assume responsibility for the buyers honouring their
payments to the sellers through banks and other financial instruments.

● A marketing channel system decisions affects the other marketing decisions also, and therefore
are among the most critical decisions. Channel choices themselves depend on the company’s
marketing strategy with respect to segmentation, targeting, and positioning. Marketing
channels must not just see markets but they must also make markets as one of the chief roles of
marketing channels is to convert potential buyers into profitable customers.
● In addition channel decisions include relatively long-term commitments with other firms as
well as a set of policies and procedures. Marketers in the present dynamic market should adopt
the holistic perspective and ensure that marketing decisions in all these different areas are
made to collectively maximize value.
● The following factors influence the design and selection of marketing channels:
● 1. Nature of the product
● 2. Buyer behavior
● 3. Environment
● 4. Competition
● 5. Organization.

● Usually, perishable products have a short channel. This does not mean that
perishables can be sold only in areas close to the place of production. Roses from
Kashmir fly to London every day, and milk from Haryana comes to Delhi in
refrigerated vans every day.

● Factor # 2. Buyer Behavior:

● Service support required by buyers may vary from product to product and market to
market. The services expected can be home delivery, availability of all products under
one roof, credit facilities, short lead-time, i.e. the time between placing the order and
receipt of the product, help during installation of the product, and after-sales service.
● Many environmental factors such as technology, economy conditions and government
regulations affect the choice of distribution channels.
● Improved transportation facilities have helped many companies to avoid or reduce a
number of intermediaries. Vending machines are used in the developed countries to
sell a number of products. Recent advancements in the field of electronics is bringing a
lot of changes in the way business is conducted. A consumer sitting in front of his
computer terminal can connect himself to a specialty store and place orders.
● Factor # 4. Competition:
● It is worthwhile to see what the competitors do before designing a distribution system.
Copying the competitor’s game plan may be the easiest thing to do. While middlemen
can also be won over to carry a company’s product line if the company is willing to pay
more commission than its competitors, the power might shift to the channel.

● If companies want better control, they can go for direct distribution. Big companies
like Brooke Bond and Bata have direct distribution facilities. But, in such cases,
problems such as the distribution staff forming unions, increase in the cost of
maintaining infrastructure, and wage rise, might hamper the organization. A small
organization may not be able to afford direct distribution, and it may be better to give
that job to some other big company or sole-selling agent.
● Producers of services also need to think about distributing, i.e., making their services
available to their customers. Thus the concept of marketing channels is not restricted
to the physical goods only. However, they are not concerned about transportation,
warehousing, inventory, etc. like the intermediaries for tangible goods and thus have
limited role. Marketing channels can make the services “available” and “accessible” to
the target customers.
● Because of the features like intangibility, perishability, inseparability, distribution of
services becomes critical. Generally shorter channels are observed. Mostly direct
channel, i.e. zero level is used. Most services are sold directly from provider to the
consumer or industrial buyer. However, some service providers may take help of
agents who can provide the information to the customers, book the orders, and collect
the payment on behalf of the service providers.

● Direct Channel
● Direct Channel is also termed as Zero-level channel because there are zero intermediaries
involved in this channel. Producers directly deliver their products to their customers without
using any middlemen. This channel is basically used by businesses to sell perishable or
expensive goods. The direct channel is one of the oldest forms of distribution channels used by
businesses to sell their products.
● The advantage of this channel is that it cuts all profit margins of the intermediaries. Businesses
are able to deliver at a lower rate to their customers. It also reduces the time involved in
delivering process as product directly flows between manufacturers & customers.
 ● Indirect Channel
● The indirect channel is those in which manufacturers do not directly sell to customers. There
are various middlemen & intermediaries involved in the distribution channel. Intermediaries
work for their commission. They purchase products in bulk from manufacturers & supply
products to final customers as per their demand.
● This type of channel saves manufacturers from the risk of delivering products. They sell all
their products to intermediaries & receive payment in cash. There are 3 types of indirect
channels
• One level,
• Two-level, &
• Three-level channels.

● One level channel

● It is a distribution channel where there is one intermediary involved in
between manufacturer & customers. This intermediary is termed as a
retailer. Manufacturers instead of selling their products directly to customers
sell them to retailers. These retailers then sell them to customers as per their
requirements. Retailers set their profit margin over the price they pay to
manufacturers. This channel is used for consumer goods like clothes,
furniture, watches, mobiles, etc.

● Two-level channel
● Two-level distribution channel is one in which there are 2 intermediaries involved in
distribution network of business. These intermediaries are wholesalers & retailers. Producer’s
sells goods in large quantities to wholesalers; wholesalers sell them in small quantities to the
retailers. Retailers finally deliver the goods to customers in quantities demanded by them. They
both charge their commission for supplying the goods from producers to customers. This
channel is more convenient in case of durable & inexpensive products.
● Three-level channel
● Three-level distribution channel is longest form of distribution channel. Here there are 3
intermediaries involved: Agents, Wholesalers & Retailers. Agents are the person who
represents the producer & company. In place of manufacturers, the agents deal with
intermediaries. These agents do not have ownership of goods but they work on remuneration
basis for companies.
● In this channel, agents sell goods to wholesalers on behalf of the company. Wholesalers then
sell these goods to retailers & retailers sell these to final customers. This channel is used when
demand for the product is very high & customers are scattered largely all over the country.

● Channel conflict refers to the dispute, discord and difference among channel partners where
one prevents other from attaining their objectives. It is simply a situation in which partners of
channel compete against each other or with internal sales department of vendor. Channel
conflict results in huge losses for partners as it disturbs their business cycle. These conflicts
arise when producer disintermediate the channel partners like distributors, wholesalers,
retailers, sales personnel’s etc. by selling its products directly to client. The manufacturers sell
their products over the internet or using various general market method without involving any
intermediaries.
1. Vertical level conflict: Vertical level conflict is a conflict among the channel partners at different level within
the same channel. The member of channel at a higher level enters into dispute with the member at lower level
or vice versa. It involves conflict among wholesalers and retailers or retailers and dealers.
2. Horizontal level conflict: Horizontal level conflict is simply a dispute in-between channel partners of same
level within the same channel. It can be among two or more retailers belonging to distinct region or Stocklists
on grounds of manufacturer’s biases, pricing, promotional schemes, area coverage and target of sales.
3. Multi-channel level conflict: This type of conflict arises whenever a manufacturer uses distinct channel for
selling off its products. Multi-channel level conflict is a conflict of channel partner belonging to particular
channel with the partner of some other channel. It is a dispute among partners of different channels that are
participating in common sale for same brand. Example: Suppose if a manufacturer is using 2 channels for
selling its products like online channel using website and other one a traditional channel comprising of
wholesalers, distributors and retailers. Now, if the product is available at a cheap price on its website as
compared to retailer then it will result in multi-channel conflict.
4. Inter-type channel conflict: Inter-type channel conflict arises in case of scrambled merchandising. When
large retailers challenge the small retailers by entering into a product line which is distinct from their normal
product range then it results in conflicts among channel partners.

● Some of the major reasons for conflict are:

● i. Goal Incompatibility:
● When there is a goal incompatibility issue between the manufacturer and the channel
member, it can give rise to a channel conflict. For example, if the manufacturers prefer
to have lower prices and larger volumes whereas the dealers want higher prices and
medium volumes, it can lead to a conflict.
● ii. Unclear Role and Rights:
● A conflict may arise on account of unclear roles and rights. For example, if an
organisation sells to customers that are within the territory of the agents, this can lead
to a conflict.
● iii. Differences in Perception:
● Differences in perception about the market requirements and their responses may
lead to conflict. An example of differences in perception is when the manufacturer is
hoping for higher sales and expects the channel member to carry higher inventory,
while the channel member perceives the market conditions to be otherwise.
● iv. Greater Dependence:
● Conflicts might arise if the channel member is highly dependent on the manufacturer.
For example, if the channel member is an exclusive dealer, he may have to comply
with all the manufacturer’s terms, even if he does not want to.

MANAGEMENT OF CHANNEL
CONFLICT
● Common goal:
● Exchanges of employees
● Regular communication
● Fair pricing:
● Legal procedure
 Sales Force Management (SFM) is a sub-system of marketing management. It is Sales
Management that translates the marketing plan into marketing performance. That is
why sales force management is sometimes described as the muscle behind the
marketing management. Actually sales force management does much more than serving
as the muscle behind marketing management.

Personal selling is a very important component of the marketing activity. The success of
a business concern depends considerably upon the performance of its salesperson.
Salesperson play a crucial role in communicating company and product information to
customers. The task of selling company’s products and services is entrusted to the
salesmen of the company.

● There are certain distinct advantages and disadvantages of the sales force
management systems as mentioned below:
● i. Understanding the economic structure of an industry
● ii. Identifying segments within a market
● iii. Identifying a target market
● iv. Identifying the best customers in place
● v. Doing marketing research to develop profiles (demographic, psychographic, and
behavioral) of core customers
● vi. Understanding competitors and their products
● vii. Developing new products
● viii. Establishing environmental scanning mechanisms to detect opportunities and
threats
● ix. Understanding one’s company’s strengths and weaknesses
● x. Auditing customers’ experience of a brand in
● xi. Developing marketing strategies for each of one’s products using the marketing
mix variables of price, product, distribution, and promotion
● xii. Coordinating the sales function with other parts of the promotional mix, such as
advertising, sales promotion, public relations, and publicity
● xiii. Creating a sustainable competitive advantage
● xiv. Understanding where brands should be in the future, and providing an empirical
basis to write marketing plans regularly to help get there
● xv. Providing input into feedback systems to help monitor and adjust the process.

i. Difficulty in adopting the system

ii. Too much of time spent on Data Entry
iii. Losing personal touch in the process of automation
iv. Laborious process of continuous maintenance, information updating, information cleansing and system up gradations
v. Cost involved in Sales Force Automation Systems and Maintenance
vi. Difficulty in integration with other management information systems
 MANAGING THE INTEGRATED COMMUNICATION

● Managing the Integrated Communication

● What is communication?
● Advertising management,
● Managing sales promotions,
● Role of public relations and publicity,
● Direct marketing and personnel selling,
● Role of internet marketing,
● Emerging communication trends.
● The Marketing Communication refers to the means adopted by the
companies to convey messages about the products and the brands they sell,
either directly or indirectly to the customers with the intention to persuade
them to purchase.

● In other words, the different medium that company adopts to exchange the
information about their goods and services to the customers is termed as
Marketing Communication.

● The marketer uses the tools of marketing communication to create the brand
awareness among the potential customers, which means some image of the
brand gets created in their minds that help them to make the purchase
decision.

1. Advertising: It is an indirect, paid method used by the firms to inform the customers about
their goods and services via television, radio, print media, online websites etcAdvertising is
one of the most widely used methods of communication mix wherein the complete information
about the firm’s product and services can be communicated easily with the huge target
audience coverage.
2. Sales Promotion: The sales promotion includes the several short-term incentives to
persuade the customers to initiate the purchase of the goods and services. This promotion
technique not only helps in retaining the existing customers but also attract the new ones with
the additional benefits.Rebates, discounts, paybacks, Buy- one –get- one free scheme, coupons,
etc. are some of the sales promotion tools.
1. Public Relations and Publicity: The companies perform several social activities with a
view to creating their positive brand image in the market. The activities that companies are
undertaking such as, constructing the public conveniences, donating some portion of their
purchase to the child education, organizing the blood donation camps, planting trees, etc. are
some of the common moves of enhancing the Public Relations.
2. Direct Marketing: With the intent of technology, the companies make use of emails, fax,
mobile phones, to communicate directly with the prospective customers without involving any
third party in between.

● Personal Selling: This is the traditional method of marketing communication wherein the
salesmen approach the prospective customers directly and inform them about the goods and
services they are dealing in. It is considered as one of the most reliable modes of
communication because it is done directly either orally, i.e., face to face or in writing via
emails or text messages.
● Word-of- Mouth Marketing: It is one of the most widely practiced method of communication
tool wherein customer share their experiences with their peers and friends about the goods and
services they bought recently.This method is very crucial for the firms because the image of the
brand depends on what customer feels about the brand and what message he convey to others.
● Events and Experiences: Several companies sponsor the events such as sports, entertainment,
nonprofit or community events with the intention to reinforce their brand in the minds of the
customers and create a long term association with them.The name of the firm sponsoring the
event can be seen on the playground boundaries, player’s jerseys, trophies, awards in the
entertainment shows, hoardings on stage, etc.
● Interactive Marketing: Interactive Marketing has recently gained popularity as a marketing communication
tool, wherein the customers can interact with the firms online and can get their queries resolved online.
Amazon is one of the best examples of interactive marketing wherein the customers make their choice and can
see what they have chosen or ordered in the recent past. Also, Several websites offer the platform to the
customers wherein they ask questions and get the answers online such as answer.com.
● Social Media Marketing
● Influencer Marketing: is the practice of leveraging an individual’s following for the purpose of promoting, endorsing
or supporting brands. What started as typically using celebrities to pose with cans of cola and talk about how they use
certain makeup each morning has evolved into a highly specialized industry. As social media continues to rise, the ability
for any individual to become an “influencer” in their space of interest is increasingly more attainable.
● Today, brands are utilizing those of all levels of social following to put a face to their products, give consumers someone to
relate to and spread their company name across the individual’s network
● Video Channels:
● Live Chat:

● Integrated marketing communications (IMC) is the use of marketing

strategies to optimise the communication of a consistent message of the
company's brands to stakeholders.
● "IMC is the process of all sources and information managed so a consumer
or prospect is exposed which behaviorally moves the customer more
towards a sale." (Schultz, 1991)
● "The process of strategically controlling or influencing all messages and
encoring purposeful dialogue to created and nourish profitable relationships
with consumers and other stakeholders." (Duncan & Caywood, 1996)
● Advertising is defined as any form of paid communication or promotion for product, service
and idea. Advertisement is not only used by companies but in many cases by museum,
government and charitable organizations. However, the treatment meted out to advertisement
defers from an organization to an organization.
● Advertising development involves a decision across five Ms Mission, Money, Message, Media
and Measurement.
● Mission looks at setting objectives for advertising. The objectives could be to inform,
persuade, remind or reinforce. Objective has to follow the marketing strategy set by the
company.
● Money or budget decision for advertising should look at stage of product life cycle, market
share and consumer base, competition, advertising frequency and product substitutability.

● Message’s development further is divided into four steps, message generation, message
evaluation and selection, message execution, and social responsibility review.
● Once the message is decided the next step is finalizing the media for delivering the message.
The choice of depends on reach of media, frequency of transmission and potential impact on
customer. Based on this choice of media types are made from newspaper, television, direct
mail, radio, magazine and the internet. After which timing of broadcast of the message is
essential as to grab attention of the target audience.
● Checking on the effectiveness of communication is essential to company’s strategy. There are
two types of research communication effect research and sales effect research.
● Promotion is an incentive tool used to drive up short term sales. Promotion can be launched
directed at consumer or trade. The focus of advertising to create reason for purchase the focus
of promotion is to create an incentive to buy. Consumer incentives could be samples, coupons,
free trial and demonstration. Trade incentive could be price off, free goods and allowances.
Sales force incentive could be convention, trade shows, competition among sales people.
● Sales promotion activity can have many objectives, for example, to grab attention of new
customer, reward the existing customer, increase consumption of occasional users. Sales
promotion is usually targeted at the fence sitters and brand switchers.
● Sales promotional activity for the product is selected looking at the overall marketing objective
of the company. The final selection of the consumer promotional tools needs to consider target
audience, budget, competitive response and each tool’s purpose.
● Sales promotion activity should under-go pretest before implementation. Once the activity is
launched it should be controlled as to remain within the budget. Evaluation program is a must
after implementation of the promotional scheme.

● Companies cannot survive in isolation they need to have a constant interaction with customers,
employees and different stakeholders. This servicing of relation is done by the public relation
office. The major function of the public relation office is to handle press releases, support
product publicity, create and maintain the corporate image, handle matters with lawmakers,
guide management with respect to public issues.
● Companies are looking at ways to converge with functions of marketing and public relation in
marketing public relation. The direct responsibility of marketing public relation (MPR) is to
support corporate and product branding activities.
● MPR is an efficient tool in building awareness by generating stories in media. Once the story
is in circulation MPR can establish credibility and create a sense of enigma among sales people
as well as dealers to boost enthusiasm. MPR is much more cost effective tool than other
promotional activities.
● The communication establishes through a direct channel without using any intermediaries is
referred to as direct marketing. Direct marketing can be used to deliver message or service.
Direct marketing has shown tremendous growth in recent years. The internet has played major
part in this growth story. Direct marketing saves time, makes an experience personal and
pleasant. Direct marketing reduces cost for companies. Face to face selling, direct mail, catalog
marketing, telemarketing, TV and kiosks are media for direct marketing.

● It increases the visibility of an organization.

● It allows for two-way communication with customers.
● It enables more detailed market research.