Table of Contents

1. Marketing Vs Selling 4
2. Marketing Mix (4Ps & 7P’s) 12
3. Differentiation 18
4. Positioning 22
5. Types of Entry Strategies, Specific Attack Strategies 23
6. Consumer Derived Value 24
7. B2B, B2C and C2C marketing 25
8. 4 C’s of Marketing 28
9. 4 As of Marketing 29
10. ATL, BTL and TTL Advertising 31
11. What is a Brand? 33
12. Brand Extension– Category extension and Line extension 35
14. Brand Rituals 38
15. Brand Rivalry Examples 39
16. Consumer Buying Behavior and Buyer Decision Process 40
17. Customer Relationship Management 42
18. Digital Marketing /Online Marketing 43
19. Experiential Marketing 44
20. Ambush Marketing 44
21. Cause marketing 46
22. Green Marketing 46
23. Guerrilla Marketing. 47
24. Image & Emotional Marketing 48
25. Marketing Myopia 49
26. Non-Conventional Advertising mediums 50
27. PLC AND STRATEGIES AT EACH STAGE 53
28. Sports Marketing 60
29. Types of Advertising 60
30. USP, ESP 61
31. Distribution channels 62
32. Recent retail strategies being adopted by big players in India 65
33. What can be defined as the luxury market in India? 66
34. What is defined as BOP Market? 67
35. What is integrated marketing communication (IMC)? 67
36. Services marketing 67
37. Viral Marketing 68
38. Word of Mouth Marketing 69
39. BCG MATRIX 71
40. ANSOFF MATRIX 72
41. Porter’s Five Forces? 73
1. Marketing Vs Selling

Selling: Selling includes the activities that get customers to make a purchase. Selling is closing
sales that make you money. E.g., an insurance agent trying to sell insurance, a salesperson selling
encyclopedias door to door. A few things included in selling are: presenting, answering
questions, making suggestions, doing proposals or estimates, addressing concerns, negotiating,
and most important, asking for the sale and then completing the sales agreement, etc. Selling
converts the product in to cash for the company in the short run.

Marketing: Marketing as a concept and approach is much wider than selling and is also dynamic
as the focus is on the customer rather than the product. Marketing consists of all those activities
that are associated with product planning, pricing, promoting and distributing the product or
service. The task commences with identifying consumer needs and does not end till feedback
on consumer satisfaction from the consumption of the product is received. Mind share is more
important than market share in Marketing.

It is an integrated communications-based process through which individuals and communities

are informed or persuaded that existing and newly-identified needs and wants may be
satisfied by the products and services of others. Marketing creates the atmosphere to make it
easy for sales to happen. Here are some marketing activities:

∙ Handling incoming inquiries

∙ Networking and building relationships
∙ Advertising and public relation; Direct mails and e-newsletters
∙ Special promotional events
∙ Merchandising and merchandise selection
∙ Getting articles published, Blogging, Social Media
∙ Cold-calling to set appointments
∙ Market research, customer surveys
∙ Branding, creating your sales message
∙ Market planning and strategizing

The Difference: In general, we use ‘marketing’ and ‘selling’ as synonyms but there is a
substantial difference between both the concepts. The selling concept takes an inside-out
perspective. It starts with the factory, focuses on the company’s existing products, and calls for
heavy selling and promoting to produce profitable sales. The marketing concept takes an
outside-in perspective. It starts with a well-defined market, focuses on customer needs,
coordinates all the activities that will affect customers, and produces profits through creating
customer satisfaction.
Thus, we can say that:
∙ Marketing is money OUT the door (marketing is a cost centre)
∙ Selling is money IN the door (selling is a revenue centre)

Selling Marketing
Product Focused Customer Focused
 Company manufactures the product first
Management is sales volume oriented
Profit through sales maximization
Cost determines Price
Planning is short-run-oriented in terms of
today’s products and markets
Company first determines customers’ needs and
wants and then decides out how to
deliver a product to satisfy these
Management is profit oriented
Profit through customer satisfaction
Consumers determine price, price determines cost
Planning is long-run-oriented in today’s products
and in terms of new products, tomorrow’s markets
and future growth

STP – Segmentation, Targeting and Positioning

Segmentation: The basic idea of segmentation is to identify the different parameters based on
which you further group your customers into segments which will have common needs or will
respond similarly to a marketing action.

Geographic Demographic Psychographic Behavioral

Country Age Lifestyle Occasions

Activities,
Benefits
Region Gender Interests,
Sought
Opinions

City Income Social Class Usage Rates

Rural & Semi-

Occupation Personality User Status
Urban Cities

Education Loyalty

Cultural Buyer
Background Readiness
Psychographic Segmentation

1. Lifestyle – Everyone has different habits based on their lifestyle. A customer might be
school going, college going, office going or other. Lifestyle could also mean where the
customer stands in his life cycle. Similarly, the lifestyle of a rural area customer might be
different from urban areas. Thus, a consumer’s lifestyle can put him in one separate segment
as per the marketer.

Developed by the advertising agency Young & Rubicam, the following framework is called
Cross Cultural Consumer Characterization (4Cs) for classification based on lifestyle:

2. Activities, interests and opinions – Can also be called a subset of lifestyle, activities,
interest and opinions also affect consumer buying behavior.
a. Activities – The way a person carries out his work or tells a lot about a person. If
he works and is also involved in numerous sports, then we have a highly active
person. Similarly, if we have a computer operator who likes indoor sports then we
have someone who is unlikely to head out of home on weekends. Thus depending
on the activities of an individual, we can determine what would be his travelling
habits, his working habits, so on and so forth.
 b. Interests – A consumers’ interests also help a marketer decide on the right
marketing message that needs to be communicated. For example, if you have a
consumer who is interested in technology products, it’s useless to pitch recreation
plans to him (he might use it, but he is not your primary target).
c. Opinions – Opinions matter. And in the age of internet, opinions spread fast. There
are agencies taking care of brands online such that they can immediately give
feedback of what the public opinion about a brand / product is.

3. Social class – Different consumers fall in different social classes. This depends mainly on
their buying power. Buying power is affected by the background of the customer, his income
as well as his spending habits. Thus, premium brands like Gucci, Longines or others always
target the Sec A segments because they know that these would be the classes capable of
buying their products.

4. Personality – Personality in psychographic segmentation is dependent on both – lifestyle

as well as social class. A person will have a rich personality only if he has high buying power
as well as the taste in clothes to maintain such a lifestyle. Thus, the term “Brand personality”
came into effect. The reason for which is that different brands target different personalities.
A simple example would be if one asks what comes to mind when you hear “Harley
Davidson bikers” more commonly known as Hogs. They would be people unshaven, tall,
masculine; who like to live a rough lifestyle. That’s the personality built for Harley over time.

Behavioral segmentation

The following are commonly applied behavioral segments:

1. Occasions: Groups individuals according to the occasions when they purchase, use or think
of buying a product. For example, chocolates sell well during Diwali, Valentine’s Day etc.
2. Benefits Sought: Groups individuals according to the benefits they seek from the product.
3. Usage Rate: Groups individuals according to the level of usage they make of the product,
be it Heavy, Medium or Light usage.
4. User Status: Groups individuals according to whether they are non-users, potential users,
first-time users, regular users, or ex-users of a product
5. Loyalty Status: Groups individuals according to their level of loyalty to the product. 'Hard
core loyals' always purchase the product / brand in question. Whilst 'Soft core loyals' will
sometimes purchase another brand, and 'Switchers' will not specifically seek out a particular
brand, but rather purchase the brand available to them at time of need, or that which was
on sale.
6. Buyer Readiness Stage: Groups individuals according to their readiness to purchase the
product. This segmentation model is particularly useful in formulating and monitoring the
marketing communication strategies employed to move consumers towards purchase of a
product or brand.

Stages in Buyer-Readiness

Stage Description
 At the launch of a new product, the target market may not be aware that
the product exists, even established products seeking to enter new
Awareness
segments of the market may need to raise awareness of both their
company and their product.

The audience may well be aware of a product or company, but still have
either very little knowledge of what the product or company does, or
possibly worse have the wrong impression of both the product and
Knowledge
company. Daewoo when it first entered the UK Car Market, had to go
about educating the target market about both its products and the
company itself.

Knowing about a company or product does not mean the audience will
necessarily like either, they may well be ambivalent, have no feeling at all,
or even dislike the product. An audience with knowledge of a product
must therefore be moved to the stage of liking the product. IKEA
Liking
addressed the target markets concerns that much of their furniture has to
be assembled after purchase, and that there are limited staff available on
the shop floor head-on; cleverly turning what the audience may well have
originally perceived as negatives into positives of shopping at IKEA.

Given the level of competition in markets today, it is often the case that
the potential customer will like several competing products on the market,
promotion must now therefore seek to develop within the audience a
Preference
preference for their product. Promotion will now therefore underline the
advantages of the product in terms of these key features, which
differentiate it from the competition.

An audience which prefers a particular product, may still not buy that
product based on pure preference. Promotion must now build confidence
in the audience that their preference for the product is justified, and
Conviction
convince them through a range of promotion tools including for example
the use of positive press reviews, and expert recommendations that their
product is the right one to buy.

The last stage in buyer-readiness is purchase of the product; conviction to

buy may still not result in actual purchase. Promotion may offer Sales
Purchase
Promotion discounts, or Personal Selling through Sales Representatives,
in order to convert preference and conviction into a sale.

Targeting: Once the parameters are decided and the different groups corresponding to each
parameter are decided, the next step for a marketer is to decide the groups he shall target to sell his
product.
Positioning: Positioning is the act of designing the company’s offering in a way so as to develop a
certain image in the minds of the consumers. 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. The way to write a
positioning statement-
For [target end user] Who wants/needs [compelling reason to buy]
The [product name] is a [product category]
That provides [key benefit].
Unlike [main competitor],
The [product name] [key differentiation]

STP Example: Amazon Kindle

Segmentation: Urban vs Rural, City, Income, Education, Lifestyle, Personality, Benefits, Usage
Rate, Readiness Stage, Attitude towards Product
Targeting: Urban, Tier-I and Tier- II cities, Income > 5 LPA, graduates, Culture-oriented,
Ambitious and information seeking, people seeking a convenient mode of reading and buying
books, voracious readers and people who read while on the move, People with high awareness of
such a technological product, people enthusiastic and positive about an alternative way of reading
books which makes it more convenient for them
Positioning: An alternative way of reading books which makes it more convenient and offers a
technological solution which feels closest to reading a physical book.

2. Marketing Mix (4Ps & 7P’s)

Product
Product refers to any tangible object or an intangible service that can be offered to the markets.
Intangible products are often service based like the tourism industry & the hotel industry.
Typical examples of a mass produced tangible object are the motor car and the disposable razor. A
less obvious but ubiquitous mass produced service is a computer operating system. Methods used
to improve to differentiate the product or to gain competitive advantage:

• Extension Strategies
• New Edition of Product
• Improvement
• Changed packaging
• Technology
• Specialized Versions

There are three levels of product:

● Core Product: The need that it satisfies. E.g.: A car satisfies the need for transportation.
● Actual Product: It is the product that you have or want to have. E.g.: Blue colored BMW
with boss speakers and sunroof etc.
● 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. E.g.: Warranty of 3 years in your car,
customer service when you call their number, delivery at your doorstep, etc.
Some examples of the product decisions to be made are product variety, quality, design, features,
brand name, functionality, styling, returns, safety, packaging, repairs and support, warranty,
accessories and services.

Price
The price is the amount a customer pays for the product. It is determined by a number of factors
including market share, competition, material costs, product identity and the customer's perceived
value of the product. The following are the five primary pricing strategies:

Penetration Pricing: The price charged for products and services is set artificially low in order to
gain market share. Once market share is achieved, the price is increased. This approach was used
Hyundai in US and most airline companies in India.

 Price Skimming: This is opposite of Penetration pricing. Charging a high price initially
because you have a substantial competitive advantage or have developed strong loyalty in a
set of consumers. However, the advantage is not sustainable for a long period of time. The
high price tends to attract new competitors into the market, and the price inevitably falls
due to increased supply or the pool of consumers willing to pay the price is exhausted.
Examples would include Gaming consoles, and latest launches of books.
 Premium Pricing: Use a high price where there is uniqueness about the product or service.
This approach is used where a substantial competitive advantage exists. For example, Apple,
Starbucks, Chanel, etc.
 Value Pricing: This approach is either used when external factors such as recession or
increased competition force companies to provide ‘value’ products and services to retain
sales; or simply a long-term strategy to keep a high barrier for entry in the category.
Example: Value meals at McDonalds, Prices offered at Walmart and Big Bazaar.
 Target Based Pricing: In this type of pricing, the ROI is calculated in the first place, and
the cost is arrived at by back calculation. This approach is usually used by companies which
require a high capital investment like Automobile manufacturers, electric and gas companies
etc.

In addition to the above, following are few more pricing strategies:

 Trial Pricing: This is similar to penetration pricing but differs in the objective. Penetration
pricing is used to increase market share of the brand whereas trial pricing is used to increase
trials for a new product brand. E.g.: Nivea face balm
 Economy Pricing: This is a no frills low price. The cost of marketing and manufacture are
kept at a minimum. Supermarkets often have economy brands for soups, spaghetti, etc.
 Psychological Pricing: This approach is used when the marketer wants the consumer to
respond on an emotional, rather than rational basis. For example, pricing apparels at 699 or
999; Garnier men’s white face wash at Rs 49.
 Product Line Pricing: The approach used by separating goods into cost categories in order
to create various quality levels in the minds of consumers. For example, car washes. Basic
wash could be $2, wash and wax $4, and the whole package $6. Another example could be
Gym packages.
 Optional Product Pricing: When a company sells a base product at a relatively low price,
but sells complementary accessories at a higher price. For example, airlines charge for
optional extras such as guaranteeing a window seat or reserving a row of seats next to each.
  Captive Product Pricing/ Bait and Hook Strategy: Low prices are offered for the
core product, but high prices are placed on captive products which are necessary to use
the product. For example, a razor manufacturer will charge a low price and make profits
from the sale of the only design of blades which fit the razor. Printer ink is another example.
 Product Bundle Pricing: Here sellers combine several products in the same package. This
also serves to move old stock. Videos and CDs are often sold using the bundle approach.
 Promotional Pricing: Pricing to promote a product is a very common application. There
are many examples of promotional pricing including approaches such as BOGO (Buy One
Get One Free) or giving 20% off, etc.
 Price Discrimination: Price Discrimination is a pricing strategy where identical or largely
similar goods or services are transacted at different prices by the same provider in different
markets. Example – Different costs of soft drinks at different channels like airports and
retail stores.
 Cost Plus Pricing: Cost-plus is a pricing method used by companies because it is easy to
calculate and requires little information. One first calculates the cost of the product, and
then includes an additional amount to represent profit. Cost-plus pricing is often used on
government contracts.
 Loss Leader Pricing: Loss leader is a product sold at a low price (at cost or below cost) to
stimulate other, profitable sales. The price can even be so low that the product is sold at a
loss. A loss leader is often a popular article. E.g.: Supermarkets selling one thing at
exceptionally low price and hence inviting footfall. These people end up buying a lot many
things making an overall profit for the supermarket.

Place

The Place comprises a set of institutions which perform all of the activities utilized to move a
product and its title from production to consumption. Place is also known as channel, distribution,
or intermediary. It is the mechanism through which goods and/or services are moved from the
manufacturer/ service provider to the user or consumer. There are a few basic 'channel' decisions:

● Do we use direct or indirect channels? (e.g. 'direct' to consumer, 'indirect' via a

wholesaler). Single or multiple channels.
● Cumulative length of the multiple channels. Types of intermediary.
● Number of intermediaries at each level (e.g. how many retailers in Southern India).
 ● Which companies as intermediaries to avoid 'intra-channel conflict' (i.e. in-fighting
between local distributors)
● Market coverage (inclusive, selective, or exclusive distribution)
● Transportation, reverse logistics
Selection Consideration - how do we decide upon a distributor?
● Market segment - the distributor must be familiar with your target consumer and segment
● Changes during the product life cycle - different channels can be exploited at different
points in the PLC e.g. Foldaway scooters are now available everywhere. Once they were
sold via a few specific stores.
● Producer - distributor fit - Is there a match between distributors’ policies, strategies,
image, and yours? Look for 'synergy'.
● Qualification assessment - Establish the experience and track record of your
intermediary.
● Training - How much training and support will your distributor require?
Promotion

Promotion includes all of the tools available to the marketer for marketing communication. As
with Neil H. Borden's marketing mix, marketing communications has its own 'promotions mix.'
Think of it like a cake mix, the basic ingredients are always the same. However, if you vary the
amounts of one of the ingredients, the final outcome is different. One can 'integrate' different
aspects of the promotions mix to deliver a unique campaign. The elements of the promotions mix
are:

● Personal/Direct Selling
● Sales Promotion
● Public Relations
● Direct Mail
● Trade Fairs and Exhibitions
● Advertising
● Sponsorship
● Social Media Marketing
The Promotions Mix

Let us look at the individual components of the promotions mix in more detail.
1. Personal Selling

Personal Selling is an effective way to manage personal customer relationships. The sales person
acts on behalf of the organization. They tend to be well trained in the approaches and techniques
of personal selling. However, sales people are expensive and should only be used where there is a
genuine return on investment. For example, salesmen are often used to sell cars or home
improvements where the margin is high.
2. Sales Promotion

Sales promotion tends to be thought of as being all promotions apart from advertising, personal
selling, and public relations. Sales promotion is of two types – consumer promotions (targeted at
consumers) and trade promotions (targeted at retailers to ensure they buy more of the product to
be kept in the store).

Examples of consumer promotion include the BOGO promotion. Others include couponing,
money- off promotions, competitions, free accessories, introductory offers (such as buy digital TV
and get free installation), and so on. Examples of trade promotion include – trade schemes, gifts
to retailers on purchase of particular amount of SKU, extra SKUs when purchase crosses a
particular number etc.

3. Public Relations (PR)

Public Relations is defined as 'the deliberate, planned and sustained effort to establish and maintain
mutual understanding between an organization and its public. Successful strategies tend to be long-
term and plan for all eventualities. For example, the PR team of an airline company is quick to
respond in case of a mishap.

4. Direct Mail

Direct mail is a highly-focused consumer targeting strategy based upon a database. As with all
marketing, the potential consumer is 'defined' based upon a series of attributes and similarities.
Creative agencies work with marketers to design a highly-focused communication in the form of
mailing. The mail is sent out to potential consumers and responses are carefully monitored. For
example, if you are marketing medical text books, you would use a database of doctors as
the basis of your mail shot.

5. Trade Fairs and Exhibitions

Such approaches are very good for making new contacts and renewing old ones. Companies
seldom sell much at such events. The purpose is to increase awareness and to encourage trial.
Trade fairs offer the opportunity for companies to meet with both the trade and the consumer.

6. Advertising
 Advertising is a 'paid for' communication. It is used to develop attitudes, create awareness, and
transmit information in order to gain a response from the target market. There are many
advertising 'media' such as newspapers (local, national, free, trade), magazines and journals,
television, cinema, outdoor advertising (such as posters, bus wraps).

7. Sponsorship

Sponsorship is where an organization pays to be associated with a particular event, cause or image.
Companies will sponsor sports events such as the Olympics or Formula One. The attributes of
the event are then associated with the sponsoring organization.

The elements of the promotional mix are then integrated to form a unique, but coherent campaign.

Extended marketing mix

In the 1980s Booms and Bitner included three additional 'Ps' to accommodate trends towards a
service or knowledge based economy:
● People
● Process
● Physical evidence
Services are a special kind of product. What is different about services is the dominance of
intangible attributes in the make-up of the “service product”. They may require special
understanding and special marketing efforts. The need for the extension is due to the high degree
of direct contact between the providers and the customers, the highly visible nature of the service
process, and the simultaneity of the production and consumption.

People

People are the most important element of any service or experience. Services tend to be produced
and consumed at the same moment, and aspects of the customer experience are altered to meet the
'individual needs' of the person consuming it. Most of us can think of a situation where the personal
service offered by individuals has made or tainted a tour, vacation or restaurant meal. Remember,
people buy from people that they like, so the attitude, skills and appearance of all staff need to be
first class.
Process

For the purposes of the marketing mix, 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.
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.
Banks that send out Credit Cards automatically when their customer’s old one has expired require
an efficient process to identify expiry dates and renewal.

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:

➢ Packaging (considered in the product dimension in the traditional 4Ps)

➢ Internet/web pages
➢ Paperwork (such as invoices, tickets and dispatch notes)
➢ Brochures
➢ Furnishings
➢ Signage (such as those on aircraft and vehicles)
➢ Uniforms
 ➢ Business cards
➢ The building itself (such as prestigious offices or scenic headquarters)
➢ Mailboxes and many others

For example, a sporting event is packed full of physical evidence. Your tickets have your team's
logos printed on them, and players are wearing uniforms. The stadium itself could be impressive
and have an electrifying atmosphere. You travelled there and parked quickly nearby, and your seats
are comfortable and close to restrooms and store. Some organizations depend heavily upon
physical evidence as a means of marketing communications, for example tourism attractions and
resorts (e.g. Disney World).
3. Differentiation

The market is flooded with similar products and offerings which creates a huge clutter of brands
and products. It is essential for a marketer to be able to differentiate his product to break through
the clutter. Differentiation based on product features is a difficult task with competitors taking no
time in copying /adopting that feature. At the same time, differentiations based on incremental
product improvements /features are difficult to develop and sustain in the market.

Methods of differentiation:

1. Invest in R&D
The market is moving in a direction where only those brands will succeed who can innovate. For
example, Tata Nano.

2. Protect the Differentiation

An important determinant of a successful differentiation is the brand’s ability to protect the
differentiation. Smart brands use ingredient branding to protect their key differentiators.
Ingredient branding is where a particular product feature or an ingredient is branded by the
company. There are two kinds of ingredient brands.
a. Where the ingredient is owned by another company. Intel is a pioneer in ingredient branding.
Intel has built ingredient brands like Pentium, Celeron and Atom etc.
b. Where the feature/ingredient is owned by the company itself. Bajaj has a powerful ingredient
brand DTSI (which is also a patented technology) which it now uses for all of its two-wheeler
brands.

3. Connect to a Relevant Need

When products become standardized, it is important for marketers to create differentiation focusing
on consumer needs. ‘Brand laddering’ is a strategy that can be used by marketers to create
differentiation on a need rather than on a product feature (attribute to value). Raymond is a brand
that has created a space for itself by effectively laddering up to a customer need (Complete Man).
The benefit of such a strategy is that competitors find it difficult to copy the differentiation since it
is based on an intangible attribute.

4. Long Term Vision through Brand Charter

A brand charter is an overall strategy that sets the course for a brand. This outline identifies the
long-term goals of the brand and how it will interact with and overcome the challenges of its
marketplace. It is important for marketers to create a brand charter which will spell out the long-
term vision for the brands, its differentiation and positioning platforms, guidelines and strategies.

Types of Differentiation:

Personnel Differentiation: By using better trained employees. Singapore airlines are well regarded
because of its flight attendants.

Channel Differentiation: By efficiently and effectively designing distribution channels coverage,

expertise and performance. Eureka Forbes water purifiers and vacuum cleaners gained popularity
due to their differentiated positioning through their direct to home channel.
Positioning Differentiation: It is the 'relative competitive comparison' a product occupies in a
given market as perceived by the target market. For example, a car manufacturer might target buyers
for whom safety is a major concern. The company "positions" its cars as the safest vehicles that
customers can buy. Brands usually position themselves using certain parameters. These parameters
highlight the most relevant features of its product and the image, the brands wishes to portray to
its consumers.

Product differentiation: You can differentiate products physically or through the services your
company provides in support of the product. In business terms, to differentiate means to create a
benefit that customers perceive as being of greater value to them than what they can get elsewhere.
(Other words that mean virtually the same thing: Competitive Advantage; Unique Selling
Proposition; or Value Proposition.)
Ad: https://youtu.be/XaNsuFSflbw

Products' physical distinctions include:

➢ form—size, shape, physical structure; for example, aspirin coating and dosage
➢ features—such as word processing software's new text-editing tool
➢ performance quality—the level at which the product's primary characteristics function
➢ conformance quality—the degree to which all the units of the product perform equally
➢ durability— product's expected operating life under natural or stressful conditions
➢ reliability—the probability that the product won't malfunction or fail
➢ reparability—the ease with which the product can be fixed if it malfunctions
➢ style—the product's look and feel

Products' service distinctions include:

➢ ordering ease—how easy it is for customers to buy the product
➢ delivery—how quickly and accurately the product is delivered
➢ installation—how well the work is done to make the product useable in its intended location
➢ customer training—whether your company offers to train customers in using the product
➢ customer consulting—whether your company offers advising or research

4. Positioning

A product's position is how potential buyers see the product. Positioning is expressed relative to
the position of competitors. The term was coined in 1969 by Al Ries and Jack Trout in the paper
"Positioning is a game people play in today’s me-too market place" in the publication Industrial
Marketing. It was then expanded into their ground-breaking first book, "Positioning: The Battle
for Your Mind".

Positioning is something (perception) that happens in the minds of the target market. It is the
aggregate perception the market has of a particular company, product or service in relation to their
perceptions of the competitors in the same category.
 The ‘positioning statement’ of a brand consists of the following 4 things:
1. Who am I? – Obvious.
2. Who are my customers? – Your target market. This is included in the positioning
statement as well. Something we probably didn’t include earlier. But this makes sense since
the target audience is always considered in positioning.
3. Who are my competitors? - Positioning could be thought of simply as choosing your
competitors, or, choosing the space you want to operate in.
4. Why me? – Here, you talk about what you usually study about positioning (How you want
consumers to perceive the brand, distinctive place in the minds of the consumer, etc.)

For example:
Cadbury Dairy Milk
1) Kuch Meetha ho jaye
1) Cadbury Dairy Milk
2) <Target Audience>
3) Competitors are traditional Indian sweets. I’m trying to occupy the mind space currently
taken up by Indian mithai.
4) Me because of assured quality, standardization, taste, etc. etc.

An alternate way of doing it:

2) Khaane Waalon ko Khaane ka bahaana chahiye
1) Cadbury Dairy Milk
2) <Target Audience>
3) Here, competitors are regular snacks like chips, peanuts, etc. I’m trying to occupy the
mind space currently taken up these snacks. Thus, the competition I’ve chosen is distinct
from that in the previous example and this is where this positioning is different.
4) Me because of assured quality, standardization, taste, etc. etc.
The positioning statement influences and can be seen in all brand communication.

Re-positioning involves changing the identity of a product, relative to the identity of competing
products, in the collective minds of the target market.

De-positioning involves attempting to change the identity of competing products, relative to the
identity of your own product, in the collective minds of the target market.

5. Types of Entry Strategies, Specific Attack Strategies

Type of entry strategy depends upon the market share that a company has. Market strategy for a
market leader, market challenger, market follower and market niche would be different. The details
of the kind of strategy to be followed is summarized in brief
in
(https://www.youtube.com/watch?v=EXRiKB3t_8I

https://nscpolteksby.ac.id/ebook/files/Ebook/Business%20Administration/Strategic%20Marketing%20Plannin
g%20(2009)/13.%20Chapter%2012%20-%20The%20Formulation%20of%20Strategy%203-
Strategies%20for%20Leaders-Followers-Challengers%20and%20Nichers.pdf
 https://www.yourarticlelibrary.com/marketing/competitors-and-their-marketing-strategies-with-diagram/48758
)

A GTM Strategy is a plan/framework that a firm develops with the intention of delivering bettervalue proposition
to the customers and to achieve a competitive advantage.
Three aspects are taken into consideration when developing a GTM Strategy,

Customers Company Competition

 Identifying  Identifying core  Understanding
needs, wants & competencies of the competition
desires the company and their relative
 Delivering  Company's market position
exceptional vision and  Identifying gaps
customer mission in the market yet
experience to statement are to be fulfilled by
build loyalty and guiding the competition
advocacy of the principles
customer

Please note this is not structure for a GTM strategy, this merely states the various stakeholders
that are to be considered.

6. Consumer Derived Value

Marketing is about meeting the needs of your targeted market, but also providing them with a
value. This value is determined when subtracting the benefits, a customer gets from the product
with the customer costs he does to get it. Cost here is not only the monetary cost that the consumer
gives to buy a particular product. Cost is in terms of Psyche (the mind that he used to buy that
product), Energy (the energy that he spent in buying), Time (time spent by the consumer to buy
a particular product), Monetary (actual price paid) and Total Cost (summation of all this). Value
derived out of this is image (what will people think of me), personnel (how does the staff treat
me), services (what all am I being offered), product (the actual tangible thing) and total (summation
of all the values). Only if the value derived is more than the cost incurred, we will say that the
consumer will be motivated to buy the product/ service.

Consumer Behavior is about how individuals make decisions to spend their available resources,
such as time and money, on consumption-related items. In economic terms, the latent satisfaction
or enjoyment received from consuming goods or services is called utility.

Consumer Purchasing Decisions: Different consumers engage in different types of decision-

making depending on how involved they are with the product, and whether it is necessary to engage
in external research. For example, consumers have a different approach to purchasing small, routine
items like toothpaste or dishwashing detergent, than they do if they are purchasing a home, investing
in mutual funds, taking out a mortgage, or buying a personal computer. Although consumers still
weigh alternatives and utilities across competing goods, the amount of information sought, and the
cost of making an error, is much lower with simple purchases than with complex ones.

High involvement purchase decisions (complex) involve products or services that are
important to the consumer and more often than not are infrequent, but large, purchases. These
types of purchases have greater risks associated with them, and as such, often require greater
involvement and research to mitigate these risks. For example, services like vacations, choice of
physician, financial advisor or for products like houses, cars, and household furnishings, or personal
computers. Consumers often search extensively for information, collecting it from a variety of
sources, to evaluate alternative products or brands before making the purchase.
However, some frequently purchased products, like perfume or cologne, can also be considered
high involvement products because these products are tied to the social needs and ego of the
individual. Although the frequency of repeat purchase and lower costs minimize the risks of a poor
decision, these factors also enable a customer to judge which brand is best, with little thought given
to competing alternatives. This process is frequently referred to as brand loyalty. Although the
effect that the “brand influence” has on consumer behavior varies from product to product, it is an
important antecedent of product choice.

Low involvement purchase decisions (simple) decisions are not as important to consumers, and
are characterized by having lower risks; the search for information is likely to be minimal. As a
result, decisions to purchase products such as cookies or cereals are often made within the store,
either impulsively on the basis of the brand familiarity, or as a result of comparisons of the brands
on the shelf. Consumers are more influenced by aesthetically pleasing packaging for low
involvement decisions, and if they think of the products as having similar attributes, are more likely
to be influenced by price. Consumption decisions made about frequently purchased items, via
simple transactions, are easier to make on a trial-and-error basis and can easily be improved on.
Because these decisions are routine and relatively inexpensive, they exert a much smaller influence
on the life of the consumer.

7. B2B, B2C and C2C marketing

Customer to Customer (C2C) MARKETING

In customer- to- customer markets, the business facilitates an environment where customers can
sell goods and/ or services to each other. The quality of a product is vital for the continued success
of a business. A terrific marketing strategy might bring a customer to your door, but if the product
you deliver fails to satisfy, they will never return.
"Customer- to- Customer includes all activities involving interaction between consumers.
Customer- to- Customer activities include auctions between consumers that are facilitated by firms
such as e-bay, personal, classified ads, ad games etc."

Word of Mouth is defined as "Personal communication about a product between target buyers and
neighbors, friends, family members and associates."
The following illustration focuses on the success behind Toyota Innova:
Toyota Innova is a car that has a tag of a taxi, than that of a personal or a private car. And one of
the sole reasons behind the huge volume of sales is its taxi tag. Now how did they get this taxi tag?
It all happened because of ‘word of mouth’ – the best medium of advertisement. Private taxis are
the most roughly-driven cars and if these drivers swear by a car, then it's the best ad for its reliability
and toughness.
How was Toyota able to win over these drivers? They won over them because they delighted them
by exceeding their expectations, and making every moment and aspect of the relationship a pleasant
- or better yet, an exhilarating experience.
Often, we find that in a consumer decision process several individuals get involved. Each of them
plays an influencing role. At times, more than one role may be played by an individual. These roles
are:
1. Initiator: This is the person who sows the seed in a prospective customer's mind to
buy the product. This person may be a part of the customer's family like spouse or parents,
a friend, a relative, a colleague or even the sales person.
2. Influencer: Influencer is a person within or outside the immediate family of the
customer who influences the decision process. The individual perceived as an influencer
is also perceived as an expert. For example, in consumer durable sales the dealer plays an
influencing role.
3. Decider: He is the person who actually takes the decision. In a joint family, often it's
the head of the family or the elders in the family who take a decision. Husband, wife and
even the entire family taking the decision, particularly on major purchases, is also quite
common in urban and metro areas. The decider(s) considers both economic and non-
economic parameters before selecting a brand.

It is important to note that the people who play these roles seek different values in the product or
service. The perception of the value is to a large extent influenced by their prior experience of
others, media reports and the marketing cues created by the firm. These values, which may also be
referred to as market value is the potential of a product or service to satisfy customer's needs and
wants.
The most common and widely used example of C2C marketing is Ebay. Ebay provides sellers a
platform to freely hawk their goods as well as interact with customers. These sellers themselves are
non-business individuals.
Another example is auctions, where sellers, who were initially customers themselves, sell goods that
they have bought to other individual customers.

Business- to- Consumer (B2C) marketing

Business- to- consumer marketing is when a business markets products to a consumer market. B2C
products include goods and services such as food, clothes, cars, houses, phone services, credit repair
services, etc.
B2C features a large target market, single step buying process and shorter sales cycle. Repetition
and imagery create its brand identity. Basically, any business that offers a retail product to the public
comes under this type. B2C marketing may involve advertising through newspapers, television and
radio for better communication.

Examples
A family is at home on a Sunday night and is watching television. An advertisement appears that
advertises home-delivered pizza. The family decides to order a pizza.
Walking down a supermarket aisle, a single man in his early 30s sees a hair care product that claims
to reduce dandruff. He picks the product and adds it to his shopping cart.

Business-to-Business (B2B) Marketing

Business-to-Business marketing is the practice of individuals or organizations (commercial
businesses, governments and institutions) facilitating the sale of their products or services to other
companies or organizations that in turn resell them, use them as components in products or services
they offer, or use them to support their operations. This is also known as Industrial Marketing.
In B2B, the customers can be:
1. Companies that consume products or services e.g. automakers, who buy gauges to put in
their cars
2. Government agencies – this includes centre, state and local governments
3. Institutions - schools, hospitals and nursing homes, churches and charities
4. Resellers – wholesalers, brokers and industrial distributors

The volume of B2B transactions is much higher than the volume of B2C transactions. The main
reason is that in any supply chain, there will be many B2B transactions, e.g. involving subcomponent
or raw materials, and only one B2C transaction, i.e. the finished good’s sale to the customer.

Some B2B Marketing Strategies:

➢ B2B Branding – Branding is defined as “the process of creating a unique name and image
in a customer’s mind.” B2B branding is about developing the space that your brand takes
up in the mind of the customer and having a “consistent value system” in how you interact
with that customer.
➢ Product – Cost-saving or revenue-producing benefits of products/services should factor
throughout product development and marketing cycle.
➢ People – The importance of a knowledgeable, experienced and effective direct (inside or
outside) sales force is often critical in the business market. Also, the target market for
business products are smaller and have more specialized needs. Thus, there can be multiple
influencers on purchase decision, and these need to be marketed to as well.
➢ Pricing – Business markets can pay premium prices if the pricing and payment terms are
structured well. This is particularly true in the case of a strong brand.
➢ Promotion – Specific trade shows, analysts, publications, blogs and retail/wholesale
outlets tend to be fairly common to each industry/product area.
➢ Place – Being strategic about distribution channels

Business Marketing vs. Consumer Marketing

Although on the surface the differences between business and consumer marketing may seem
obvious, there are subtler distinctions between the two with substantial ramifications. Dwyer and
Tanner (2006) note that business marketing generally entails shorter and more direct channels of
distribution. While consumer marketing is aimed at large demographic groups through mass media
and retailers, the negotiation process between the buyer and seller is more personal in business
marketing. According to Hutt and Speh (2004), most business marketers commit only a small part
of their promotional budgets to advertising, and that is usually through direct mail efforts and trade
journals. While that advertising is limited, it often helps the business marketer set up successful sales
calls.
8. 4 C’s of Marketing

Note that the four Ps represent the seller’s view

of the marketing tools available for influencing
the buyer. From a buyer’s point of view, each
marketing tool is designed to deliver a customer
benefit. The shift from 4P’s to 4C’s isn’t just an exercise in semantics. It reflects a change in mindset
overtime. Robert Lauterborn suggested that the seller’s four Ps correspond to the customer’s four
Cs.

Consumer
You can't develop products and then try to sell them to a mass market. You have to study
consumer wants and needs and then attract consumers one by one with something each one wants.
This not only will help you in developing a desired product but also will help you:

● in developing a positioning strategy for your product, and

● in marketing your product as per your customer’s needs.
Cost
Price is only a subset of total cost incurred to satisfy the want or need. The consumer incurs much
more expenditure in acquiring your good or service. The cost subset of marketing 4Cs include
monetary as well as non-monetary costs. Some of them are:
● Price – The is the amount the customer pays to the seller to acquire the product.
● Additional cost of acquiring – The cost incurred to drive to an outlet to purchase your
product, or the cost incurred while researching about your product, etc.
● Cost of conscience – Suppose you’re dealing in a non-vegetarian food product. Your
consumer might incur a cost of conscience when he buys and eats that product.
● Opportunity cost – This refers to a benefit your consumer could have received, but gave
up, to buy your product or service.
● The cost subset of Marketing 4Cs is a reflection of total cost of ownership unlike the Price
subset of Marketing 4Ps which consider only the price aspect of the cost.
Convenience
Convenience is the key to more sales. Most of your customers choose a product based on the
convenience of purchase. The focus should be on –

● to research and find out all the channels of distribution your customers consider while
making a purchase.
● to walk on your customer’s path and selling your product on the channels he is searching
on
● to remove all the barriers your customers face while buying your product.
● The convenience aspect of marketing 4Cs is often neglected by businesses who prioritize
greater profit margins over customer’s convenience. However, convenience results in more
benefits to the brand in the long run.
Communication
While promotion is manipulative and is forced to the buyer, communication is cooperative and is
approved by both the seller and the buyer. Communication requires a give and take between the
buyer and seller (that's nicer). Be creative and you can make any advertising "interactive".
Consumer always want to hear ‘what’s in it for me?’, while the seller always wants to tell ‘this is the
best product in the market’. An effective communication considers both the sides and results in a
win-win situation. Communication aspect of marketing 4Cs asserts a give and take relationship
between the seller and the buyer, unlike promotion aspect of marketing 4Ps which doesn’t consider
consumer’s point of view at all.

9. 4 As of Marketing

The components of the 4A model are a set of conditions that must be fulfilled to achieve success
with any given product or service offering. To use a food analogy, the 4Ps describe the raw
ingredients available to the chef, and the 4As describe the attributes of meals that will delight
diners.

Acceptability
Acceptability has two dimensions - functional acceptability, and psychological acceptability.
Functional acceptability refers to the "objective" performance attributes of a product or service.
Does the product have the features that customers in the target market expect? Is it reliable? Does
it perform as expected?

Psychological acceptability refers to the more "subjective" attributes of a product or service. We

often see psychological acceptability associated with so-called "luxury" brands. So, for example, a
mid-priced automobile may be as objectively functional as a vehicle of comparable size made by
Mercedes or BMW. But those brands are more psychologically acceptable to a certain segment of
buyers.

Affordability
Affordability refers to whether customers in the target market are able and willing to pay a
product's price. As this definition indicates, affordability also has two dimensions- economic
affordability and psychological affordability.

Economic affordability refers to whether the potential customers in the target market have
sufficient economic resources to pay a product's price. Psychological affordability refers to a
customer's willingness to pay, which is primarily determined by the customer's perception of the
value he or she will obtain from a product or service relative to the cost of the product or service.

Accessibility
The third component of the 4A model is Accessibility, which describes whether customers can
easily acquire and use a product or service. The two dimensions of accessibility are availability and
convenience.

Availability measures whether a selling company has enough of a product to match customer
demand. Convenience refers to how easy it is for potential customers to acquire a product or
service. Robert Woodruff, the former chairman of Coca-Cola, captures the essence of
Accessibility when he said in 1923 that Coca-Cola should always be "within an arm's
length of desire."
Awareness
The final component of the 4A model is Awareness, which refers to whether customers are
adequately informed about a product's attributes and benefits in a way that persuades potential
buyers to give the product a try and reminds existing users whey they should continue to purchase
a product. The two dimensions of Awareness are product knowledge and brand awareness.
The basic idea here is that most potential customers will not buy unless they have a positive
perception of the brand and adequate information regarding the specific product or service.

10. ATL, BTL and TTL Advertising

Above the line (ATL)

● Consist of advertising activities that are largely non-targeted and have a wide reach. ATL
communication is done to build the brand and inform the customers about the product.
Conversions are given less importance in above the line advertising.
● Above the line marketing includes mass marketing strategies which are largely
untargeted and are focused on building the brand.
● By ‘untargeted’ we mean that the communication isn’t directed towards a specific group.
The mediums convey the message to everyone who has access to them.

Advantages of Above the Line marketing:

● Wider Reach: Above the line advertising mediums have a wide (national/international)
reach.
● Better Connect with the audience: The mediums like TV and radio use audio-visuals
which have a better connect with the audience.
● Brand Building: Media advertising is a crucial tool in defining and realizing brand identity.
A brand is built by the customers. The role of marketers in brand building is to reach as
many prospective customers as they can and communicate to them about the brand and
its benefits creatively. Above the line marketing, hence, plays an integral role when it comes
to brand building.
Below the Line(BTL)

● Consists of very specific, memorable and direct advertising activities focused on targeted
groups of consumers. Often known as direct marketing strategies, below the line strategies
focus more on conversions than on building the brand.
● Below the line marketing include direct marketing strategies directed to specific target
groups and focused on conversions rather than building the brand.

Advantages of Below the Line marketing:

● Extremely Targeted: Conversions are better when the communication is done according
to the customer wants. Since BTL marketing strategies are extremely targeted, results are
better in terms of conversions.
● Better ROI: Below the line promotional efforts are focused on the specific target group,
have a better reach, can be easily executed, tracked, and controlled. Hence BTL strategies
provide a better ROI and MROI in terms of conversion.
● Easy Control: The return from these activities can be easily tracked and monitored and
steps can be taken to improve ROI.
● Tailor-Made: Below the line advertising strategies are designed according to the needs of
a specific target group and hence can be molded differently for different customer groups.

Examples of BTL Campaigns

● Scotch Brite Wash Your Bill: In April 2015, Scotch-Brite, the scrub-sponge brand owned by
3M, launched an innovative on-ground activity where participants could quash their bill at an
expensive restaurant by merely washing a few utensils. Titled 'Wash Your Bill', the campaign
was executed in four cities across India - Mumbai, Delhi, Pune and Bengaluru. The brand tied
up with Barbeque Nation and gave people the option of washing their dishes instead of paying
their bill.

● Classmate launched the Classmate Man of the Match campaign in 2011: The CMOM
activity worked simply. It allowed the target group to earn 'runs' or points on purchase of
Classmate stationery products. Participants with the maximum number of runs got a chance
to meet Classmate's brand ambassador Yuvraj Singh, and be gratified with Pune Warriors India
merchandise (the IPL team that Classmate was partnering at the time). The campaign made
major use of roadshows and tie ups with CCD to increase its on ground reach.

ATL and BTL terms were coined at Proctor & Gamble in 1954 where accountants differentiated
advertising agencies’ payments vis-à-vis those who undertook promotional activities other than
advertising for fixed fees. Gradually, marketers started to differentiate activities other than
advertisements as separate marketing practice called Below the Line (BTL).
Today, ATL is used for branding effect, to generate mind share while BTL is used to generate
loyalty and repeat sales. ATL is tailored for mass audience while BTL promotions are targeted at
individual level according to their needs and preferences. ATL promotions are difficult to measure
while BTL are measurable in terms of sales and feedback and it gives marketers valuable insights
on their return on investment (ROI). Since BTL focus is targeted and customer centric, it is
efficient and cost effective, apt for start-ups.
Through the Line (TTL)

● Involves the use of both ATL & BTL marketing strategies. The recent consumer trend in
the market requires integration of both ATL & BTL strategies for better results.
● Through the Line marketing involves marketers to create marketing campaigns
which include both ATL & BTL strategies. It refers to 360-degree advertising where
campaigns are developed with the vision of brand building as well as conversions.
● Sometimes Above the Line strategies are used to execute their direct marketing
strategies. This too comes under TTL marketing.
● 360° Marketing: Marketing strategies can be planned and carried out with an integrated
approach of using both ATL & BTL advertising mediums to get the maximum
advantage. Most of the marketing campaigns today are TTL campaigns.

11. What is a Brand?

● A brand is the identity of a specific product, service, or business. It is basically the

perception the consumers have about the product. A brand can take many forms, including
a name, sign, symbol, color combination or slogan. It is the emotional and psychological
relationship you have with your customers. A legally protected brand name is called a
trademark. E.g.: Coca Cola, Apple
● A brand is a name or trademark connected with a product or producer. Brands have
become increasingly important components of culture and the economy, now being
described as "cultural accessories and personal philosophies".
● A brand is the essence or promise that a product, service or company will deliver or be
experienced by a buyer.
Brand name
The brand name is often used interchangeably with "brand", although it is more correctly used to
specifically denote written or spoken linguistic elements of any product. In this context, a "brand
name" constitutes a type of trademark, if the brand name exclusively identifies the brand owner as
the commercial source of products or services. Effective brand names build a connection between
the brand personalities as it is perceived by the target audience and the actual product/service. The
brand name should be conceptually on target with the product/service (what the company stands
for). Typically, sustainable brand names are easy to remember, transcend trends and have positive
connotations.

Brand experience and image

Some people distinguish the psychological aspect of a brand from the experiential aspect. The
experiential aspect consists of the sum of all points of contact with the brand and is known as the
brand experience. The psychological aspect, sometimes referred to as the brand image, is a
symbolic construct created within the minds of people and consists of all the information and
expectations associated with a product or service.

Brand identity
A product identity, or brand image are typically the attributes one associates with a brand, how the
brand owner wants the consumer to perceive the brand- and by extension the branded company,
organization, product or service. The brand owner will seek to bridge the gap between the brand
image and the brand identity. Brand identity is fundamental to consumer recognition and
symbolizes the brand's differentiation from competitors.

Examples:
● Harley Davidson is a great brand because Harley Davidson motorcycle owners rarely
switch to another brand. Nor do Apple users want to switch to Microsoft. The brand
amounts to a contract with the customer regarding how the product will perform.
● Richard Branson’s Virgin brand is about fun and creativity. These attributes are projected
in all of Virgin’s marketing activities. Some of Virgin Atlantic’s Airways’ flights include
massages, live rock bands, and casinos. Flight attendants are fun-loving and enjoy joking
with the passengers. Branson uses public relations to project his daring, such as attempting
to fly around the world in a hot-air balloon. To launch Virgin Bride (bridal wear), Branson
dressed up in drag as a bride.
● Philips as a Brand talks about “Sense and Simplicity”. This is reflected in nearly every
product of the company.
12. Brand Extension– Category extension and Line extension

Brand extension is a part of brand management to

diversify and leveraging the existing brand by entering
into new product category by new product
development. A firm uses an established brand
to introduce a new product, the product is called a
brand extension.

Advantages:

∙ Helps in enhancing parent brand image.

∙ Helps in avoiding risk of developing new names.

Major disadvantages:

● Poorly executed extension of brand to new product categories can jeopardize current image of
parent brand.
● The image and financial figures of parent brand may be endangered due to the failure of
strategy implementation.
● It may cannibalize sales of the parent brand.

Line Extension: A product line extension is the use of an established product’s brand name for
a new item in the same product category. Line extensions happen when the brand launches the
new product in the same category targeting a new segment through new forms, colors, added
ingredients, package sizes etc. Product Extensions help in the growth stage of PLC.

Examples:

● Surf, Surf Excel, Surf Excel Blue

● Coke, Diet Coke, Vanilla Coke
● Clinic All Clear, Clinic Plus
● Colgate Fresh, Colgate Total, Colgate Cibaca

A line can comprise related products of various sizes, types, colors, qualities, or prices. Line depth
refers to the number of product variants in a line. Line consistency refers to how closely relate
the products that make up the line are. Line vulnerability refers to the percentage of sales or
profits that are derived from only a few products in the line.
When you add a line extension that is of better quality than the other products in the line, this is
referred to as trading up or brand leveraging.

A Word of Caution - Although we might tend to think that Line Extension leads to more sales
due because of more products and the company is anyways leveraging the brand equity that it has
created. But it can sometime lead to drop in sales too, because it creates confusion in the minds of
the consumer as to what the brand means. On example of that is 7Up. It became popular as a
Lemon Uncola but in 1978 introduced many flavors such as 7Up Gold and Cherry 7Up and various
diet versions too. As a result, its sales dropped from 5.7% of the soda beverage market to 4.2%.

Its advantages are:

 ● It helps in satisfying the changing desires of customers that is variety-seeking.
● It reduces risk associated with new product introduction in customers and distributors.
● It provides a convenient route for infusing new values into an ongoing brand and gaining
presence in new market.
● It decreases the cost of gaining distribution and trial.
● It increases efficiency of promotional expenditures and allow for packaging and labeling
efficiencies.
In a category extension, marketers use the parent brand to enter a different product category,
such as Swiss Army watches. Honda has used its company name to cover such different products
such as automobiles, snow blowers, lawn mowers, marine engines and snowmobiles.

Research Insights on Brand Extensions:

● Successful brand extensions occur when the parent brand is seen as having favorable
associations and there is a perception of fit between parent brand and the extension
product.
● There are many bases of fit: Product related attributes and benefits, as well as non-
product-related attributes and benefits related to common usage situations or user types.
● A brand that is seen as prototypical of a product category can be difficult to extend outside
the category
● It can be difficult to extend into a product class that is seen as easy to make
● A successful extension can not only contribute to the parent brand image but also enable
a brand to be extended even further
● An unsuccessful extension does not prevent a firm from 'backtracking' and introducing a
more similar extension
● The most effective advertising strategy for an extension emphasizes information about
the extension (rather than reminders about the parent brand)

13. Brand Equity

When developing a new product, branding is an important decision. The brand can add significant
value when it is well recognized and has positive associations in the mind of the consumer. This
concept is referred to as brand equity.

There are several perspectives from which to view brand equity:

● Financial - One way to measure brand equity is to determine the price premium that a
brand commands over a generic product. For example, if consumers are willing to pay
$100 more for a branded television over the same unbranded television, this
premium provides important information about the value of the brand. However,
expenses such as promotional costs must be taken into account when using this method
to measure brand equity.

● Brand extensions - A successful brand can be used as a platform to launch related

products. The benefits of brand extensions are the leveraging of existing brand awareness
thus reducing advertising expenditures, and a lower risk from the perspective of the
consumer. Furthermore, appropriate brand extensions can enhance the core brand.
 However, the value of brand extensions is more difficult to quantify than are direct
financial measures of brand equity.

● Consumer- based- A strong brand increases the consumer's attitude strength toward the
product associated with the brand. Attitude strength is built by experience with a product.
This importance of actual experience by the customer implies that trial samples are more
effective than advertising in the early stages of building a strong brand. The consumer's
awareness and associations lead to perceived quality, inferred attributes, and eventually,
brand loyalty.

Strong brand equity provides the following benefits:

● Facilitates a more predictable income stream.

● Increases cash flow by increasing market share, reducing promotional costs, and allowing
premium pricing
● Brand equity is an asset that can be sold or leased.

However, brand equity is not always positive in value. Some brands acquire a bad reputation that
results in negative brand equity. Negative brand equity can be measured by surveys in which
consumers indicate that a discount is needed to purchase the brand over a generic product.

Building and Managing Brand Equity

In his 1989 paper, Managing Brand Equity, Peter H. Farquhar outlined the following three stages
that are required in order to build a strong brand:

1. Introduction - introduce a quality product with the strategy of using the brand as a platform from
which to launch future products. A positive evaluation by the consumer is important.
2. Elaboration - make the brand easy to remember and develop repeat usage. There should be
accessible brand attitude, that is, the consumer should easily remember his or her positive
evaluation of the brand.
3. Fortification - the brand should carry a consistent image over time to reinforce its place in the
consumer's mind and develop a special relationship with the consumer. Brand extensions can
further fortify the brand, but only with related products having a perceived fit in the mind of the
consumer.

Alternative Means to Brand Equity

Building brand equity requires a significant effort, and some companies use alternative means of
achieving the benefits of a strong brand. For example, brand equity can be borrowed by extending
the brand name to a line of products in the same product category or even to other categories. In
some cases, especially when there is a perceptual connection between the products, such
extensions are successful. In other cases, the extensions are unsuccessful and can dilute the original
brand equity.
Brand equity also can be "bought" by licensing the use of a strong brand for a new product. As in
line extensions by the same company, the success of brand licensing is not guaranteed and must
be analyzed carefully for appropriateness.
Managing Multi Brands

Different companies have opted for different brand strategies for multiple products. These
strategies are:

● Single brand identity- A separate brand for each product. For example, in laundry
detergents Procter & Gamble offers uniquely positioned brands such as Tide, Cheer, Bold,
etc. Also known as House of Brands Strategy.
● Umbrella branding/ family branding- all products under the same brand. For example,
Sony offers many different product categories under its brand.
● Multi-brand categories- Different brands for different product categories. Campbell Soup
Company uses Campbell's for soups, Pepperidge Farm for baked goods, and V8 for juices.
● Family of names -Different brands having a common name stem. Nestle uses Nescafe,
Nesquik, and Nestea for beverages.

14. Brand Rituals

Brand ritual is the performance of an act by the consumers as defined by the brand (Owners).
These days, brand rituals are a common strategy adopted by marketers. Some rituals become a part
of our behavior over time. Few examples are as follows:

● Cadbury Oreo: Oreo’s “Twist Lick Dunk” is a very popular ritual among kids.
● Close up: The HA-HA action which we do by holding our palm in front of our mouth to
check the fresh breath.
● Pepsi My Can: The way they hold the can in the ads to ask the viewers to do the same.
 ● Kitkat: Push the chocolate out of the paper wrap. Pull your thumb across the lines between
the chocolate bars. Break it. Unwrap and eat.
● Tequila Shots: The trademark way of consuming tequila with salt and lemon wedges.
● Bru Cappuccino: Sip, Lick... Ummm...!! denotes how to enjoy the cool drink and the coffee
froth.
● Wrigley's Chiklets: - Shake the box of chewing gums 2 make that chik-chik noise.
● Ponds Googly Woogly wooksh: - Squeeze both the cheeks of the person who has used
Ponds cold cream
● Boomer: The bubble that everyone started making while chewing the gum.
● Horlicks: Epang Opang Jhapang. Try and make a chocolate shake with Horlicks by using
their freebie and this technique.
● Corona Beer: Put a piece of lime on the bottleneck.

15. Brand Rivalry Examples

● McDonald’s v/s Burger King: McDonald's Corporation Founder Ray Kroc summed up the
intensity of the fast food business best when he said of his competitors, "If they were
drowning to death, I'd put the hose in their mouth." In the quick-serve restaurant industry,
no two brands have waged war over customer loyalty as publicly as McDonald's and Burger
King. The rivalry dates back to the mid-20th century as both companies emerged on the
national scene, battling for territory and franchisees. There are only so many ways you can
innovate when it comes to a hamburger, so copying competitors' ideas is standard practice.
Take the Big Mac, which was launched in 1968 as McDonald's answer to the Whopper.
Burger King declared all-out war in 1982 by launching an advertising campaign that claimed
customers preferred the Whopper to McDonald's and Wendy's. Both chains countered by
suing for false and misleading advertising.
Ad: https://www.youtube.com/watch?v=KAupGnoG3m4&ab_channel=BuzzmanTV
● Samsung v/s Apple in the extremely competitive American smartphone market.
http://www.theverge.com/2014/9/14/6147301/samsung-ads-mocking-apple-history
● (Heinz)Complan v/s (GSK) Horlicks: Complan has never been an aggressive player
compared to the market leader Horlicks. This explains the reason why such a powerful
brand is languishing in a distant position of 15% market share compared to the 60 % share
of Horlicks. While Horlicks has been breaking new grounds with a series of variants aiming
at the entire family segment, Complan was lying low all these years. The major happening
for this brand in 2008 was the launch of the new flavor Kesari Badam. In the promotional
front, the brand was in a low key mode continuing with the extension of its earlier campaign
focusing on EXTRA growth.
Article: http://www.mouthshut.com/diary/fecjmqtqm/COMPLAN-vs-HORLICKS
Ad: www.youtube.com/watch?v=LcbLBJSTtQg
● (Nestle) Munch v/s (Cadbury) Dairy Milk: Fighting with advertisements is not new in the
Indian consumer market. First we saw two cola companies making ads against each other,
then came two hot beverage products doing this and now it’s the turn for the chocolates-
Dairy Milk v/s Nestle Munch.
Article: http://vettyofficer.blogspot.com/2009/08/dairy-milk-vs-nestle-munch-ad-
war.html
● (Coca Cola) Sprite v/s (Pepsi) Mountain Dew: Sprite came up with an ad hitting on
mountain dew’s jingle.
Ad: http://www.youtube.com/watch?v=QRIwkKF2cm8
 ● Duracell v/s Energizer Batteries: Both of these major battery brands chose qualities of
actual batteries to base their marketing upon. While one chose durability, the other chose
energy (or the ability to energize). Clearly, Duracell wants to be the durable battery; the
reliable battery; the battery that will be there for you. The Duracell marketing slogan?
"Trusted everywhere." Then, there's Energerizer. The brand that's all about energy --
energy that keeps things going, and going, and going. Whereas Duracell is known for its
copper top, the classic Energizer battery uses red and yellow in its design, two colors that
are both associated with energy. The Energizer marketing slogan? "That's Positivenergy."
● Ad: https://www.youtube.com/watch?v=0l023ewk10Q&ab_channel=ClassicTVAds
● Starbucks v/s Dunkin Donuts:
Together, Dunkin’ Donuts and Starbucks control 60% of USA’s coffee market–36%
Starbucks, 24% Dunkin’, according to a Harvard report. The two companies coexisted
peacefully during Starbucks’s early growth, with the Boston-based Dunkin’ focused on its
baked goods and the Seattle-based Starbucks teaching Americans how to say “macchiato.”
But in 2003, sensing an opportunity, Dunkin’ introduced a line of lattes and cappuccinos,
while continuing to emphasize its working-class bona fides. “You order [our drinks] in
English, not Fritalian,” the company boasted in a 2006 commercial. Recent marketing
campaigns continue to emphasize the brand’s sense of humor– “I’ve been craving, I’ve been
craving–I get hungry when I see that billboard, baby,” a Beyoncé stand-in sings in the
Dunkin’ parody of Queen B’s “Drunk in Love.”
● HUL v/s Eureka Forbes: Eureka Forbes making mockery of the Pureit Mascot, i.e. the guy
in the yellow raincoat. There is a case filed by HUL regarding the same in the high court.
● Mercedes v/s Jaguar: Refer to this link: https://www.financialexpress.com/auto/car-
news/ad-wars-when-bmw-audi-mercedes-benz-jaguar-prove-prowess-through-
advertisements/628678/
Other Rivalries include-
o Sony v/s Nintendo
o AMD v/s INTEL
o Huggies v/s Pampers
o BMW v/s Mercedes Benz

16. Consumer Buying Behavior and Buyer Decision Process

Complex buying behavior – three-step process – develops belief about the product, attitude
about the product and then makes a thoughtful choice.
Dissonance reducing buying behavior – consumer is highly involved in a purchase but sees
little difference in brands. Marketing communication should supply beliefs and evaluations that
help the consumer feel good about his/her brand choice.
Habitual buying behavior – bought under conditions of low involvement and absence of
significant brand differences.
Variety seeking buying behavior – characterized by low involvement but significant brand
differences.

Research suggests that customers go through a five-stage decision-making process in any purchase.
This is summarized in the diagram below:
The model implies that customers pass through all stages in every purchase. However, in more
routine purchases, customers often skip or reverse some of the stages.

For example, a student buying a favorite hamburger would recognize the need (hunger) and go
right to the purchase decision, skipping information search and evaluation. However, the model is
useful when it comes to understanding any purchase that requires some thought and deliberation.

● The buying process starts with need recognition. At this stage, the buyer recognizes a
problem or need (e.g. I am hungry, we need a new sofa, I have a headache) or responds to
a marketing stimulus (e.g. you pass Starbucks and are attracted by the aroma of coffee and
chocolate muffins).
● An “aroused” customer then needs to decide how much information (if any) is required.
If the need is strong and there is a product or service that meets the need close to hand,
then a purchase decision is likely to be made there and then. If not, then the process of
information search begins. A customer can obtain information from several sources:
Personal sources: family, friends, neighbors, etc.
o Commercial sources: advertising, salespeople, retailers, dealers, packaging, point-
of-sale
o Displays
o Public sources: newspapers, radio, television, consumer organizations, specialist
magazines
o Experiential sources: handling, examining, using the product
The usefulness and influence of these sources of information will vary by product and by
customer. Research suggests that customers value and respect personal sources more than
commercial sources (the influence of “word of mouth”). The challenge for the marketing
team is to identify which information sources are most influential in their target markets.
● In the evaluation stage, the customer must choose between the alternative brands,
products and services. How does the customer use the information obtained?
An important determinant of the extent of evaluation is whether the customer feels
“involved” in the product. By involvement, we mean the degree of perceived relevance
and personal importance that accompanies the choice. High-involvement purchases
include those involving high expenditure or personal risk – for example buying a house, a
car or making investments. Low involvement purchases (e.g. buying a soft drink, choosing
some breakfast cereals in the supermarket) have very simple evaluation processes.
● Post-purchase evaluation- Cognitive Dissonance
The final stage is the post-purchase evaluation of the decision. It is common for customers
to experience concerns after making a purchase decision. This arises from a concept that
 is known as “cognitive dissonance”. The customer, having bought a product, may feel that
an alternative would have been preferable. In these circumstances that customer will not
repurchase immediately, but is likely to switch brands next time.
To manage the post-purchase stage, it is the job of the marketing team to persuade the
potential customer that the product will satisfy his or her needs. Then after having made a
purchase, the customer should be encouraged that he or she has made the right decision.

Why should a marketer need to understand the customer evaluation process? The answer lies in
the kind of information that the marketing team needs to provide customers in different buying
situations. In high-involvement decisions, the marketer needs to provide a good deal of
information about the positive consequences of buying. The sales force may need to stress the
important attributes of the product, the advantages compared with the competition; and maybe
even encourage “trial” or “sampling” of the product in the hope of securing the sale.

17. Customer Relationship Management

Main aim: customer retention and customer satisfaction

According to the industry’s view, CRM consists of:

● Helping an enterprise to enable its marketing departments to identify and target their best
customers, manage marketing campaigns and generate quality leads for the sales team.
● Assisting the organization to improve telesales, account, and sales management by
optimizing information shared by multiple employees, and streamlining existing processes
(for example, taking orders using mobile devices).
● Allowing the formation of individualized relationships with customers, with the aim of
improving customer satisfaction and maximizing profits; identifying the most profitable
customers and providing them the highest level of service.
● Providing employees with the information and processes necessary to know their
customers understand and identify customer needs and effectively build relationships
between the company, its customer base, and distribution partners.

Customer retention efforts involve considerations such as the following:

● Customer valuation - describes how to value customers and categorize them according
to their financial and strategic value so that companies can decide where to invest for
deeper relationships and which relationships need to be served differently or even
terminated.
● Customer retention measurement - This is simply the percentage of customers at the
beginning of the year that are still customers by the end of the year. In accordance with
this statistic, an increase in retention rate from 80% to 90% is associated with a doubling
of the average life of a customer relationship from 5 to 10 years. This ratio can be used to
make comparisons between products, between market segments, and over time.
● Determine reasons for defection - Look for the root causes, not mere symptoms. This
involves probing for details when talking to former customers. Other techniques include
the analysis of customers' complaints and competitive benchmarking.
● Develop and implement a corrective plan - This could involve actions to improve
employee practices, using benchmarking to determine best corrective practices, visible
 endorsement of top management, adjustments to the company's reward and recognition
systems, and the use of "recovery teams" to eliminate the causes of defections.

18. Digital Marketing /Online Marketing

Digital marketing is an umbrella term for all of your online marketing efforts. Businesses leverage
digital channels such as Google search, social media, email, and their websites to connect with their
current and prospective customers.
Assets
● Website
● Blog posts
● E-books and whitepapers
● Infographics
● Interactive tools
● Social media channels (Facebook, LinkedIn, Twitter, Instagram, etc.)
● Earned online coverage (PR, social media, and reviews)
● Online brochures and look-books
● Branding assets (logos, fonts, etc.)

Tactics
● Search Engine Optimization (SEO): The process of optimizing your website to ‘rank’
higher in search engine results pages, therefore increasing the amount of organic (or free)
traffic that your website receives.
● Content Marketing: The creation and promotion of content assets for the purpose of
generating brand awareness, traffic growth, lead generation, or customers.
● Inbound Marketing: Inbound marketing refers to the ‘full-funnel’ approach to attracting,
converting, closing, and delighting customers using online content.
● Social Media Marketing: The practice of promoting your brand and your content on
social media channels to increase brand awareness, drive traffic, and generate leads for your
business.
● Pay-Per-Click (PPC): A method of driving traffic to your website by paying a publisher
every time your ad is clicked. One of the most common types of PPC is Google AdWords.
● Affiliate Marketing: A type of performance-based advertising where you receive
commission for promoting someone else’s products or services on your website.
● Native Advertising: Native advertising refers to advertisements that are primarily
content-led and featured on a platform alongside other, non-paid content. BuzzFeed
sponsored posts are a good example, but many people also consider social media
advertising to be ‘native’- for example, Facebook advertising and Instagram advertising.
● Marketing Automation: Marketing automation refers to the software that exists with the
goal of automating marketing actions. Many marketing departments have to automate
repetitive tasks such as emails, social media, and other website actions.
● Email Marketing: Companies use email marketing as a way of communicating with their
audiences. Email is often used to promote content, discounts and events, as well as to
direct people towards the business’ website.
● Online PR: Online PR is the practice of securing earned online coverage with digital
publications, blogs, and other content-based websites. It’s much like traditional PR, but in
the online space.
19. Experiential Marketing

It's a type of marketing strategy that engages an audience with a real-life invitation to engage with -
or experience - a brand and what it makes or represents. It's participatory, hands-on, and tangible.
It's the difference between telling people about features of a product or service and letting them
experience the benefits for themselves.

Examples:
● “I Wanna Have a Sleepover in IKEA” of IKEA (2011) - When furniture retail giant IKEA
found out about the Facebook group that called themselves “I wanna have a sleepover in
IKEA”, it invited 100 winners out of the almost 100,000 members to a sleepover inside its
furniture warehouse in Essex in the UK.
● “Probably the Best Poster in the World” of Carlsberg (2015) - Carlsberg is readily
identifiable the world over for its tagline “Probably the best beer in the world”. “Probably
the best poster in the world” campaign consisted of a giant, rectangular poster with a green
background and the words visibly printed, in white, in the company’s identifiable font style.
The poster was set up in an area in London known as a hub for beer drinkers. Londoners
– specifically those who are 18 years old and above – queued up to get their one free pint
of Carlsberg beer.
http://www.adsoftheworld.com/media/outdoor/carlsberg_probably_the_best_poster_i
n_the_world
● “Weather Rooms” of Globetrotter (2016) - German outdoor and sporting clothing and
equipment company Globetrotter took the concept of a “fitting room” to another level by
introducing the “weather room” in its stores. The weather room is essentially a chamber
that lets customers get to prove the claims of Globetrotter products in a simulated
environment.

● Hyundai “Drive-In” California event - The event was organized to get a real feel of driving
a Hyundai Car. They gave customers a trial ride of Hyundai car on a special track made of
obstacles. They were asked about the pick-up, speed, control, handling and breaking
comfortability, along with interiors of the car.

http://www.youtube.com/watch?v=lHVjPydAiKE

● Coca Cola New Grip Bottle

https://www.youtube.com/watch?v=KPwp_c78USY

● T- Mobil Angry Birds Campaign

A real time simulation of the game Angry Birds
http://www.youtube.com/watch?v=jzIBZQkj6SY

● Coca-Cola: Unlock your inner 007

https://www.youtube.com/watch?v=LMLSMxi99xk

20. Ambush Marketing

The definition of ambush marketing has changed over time. Originally it was a brand’s attempt to
associate itself with a team or event without buying the rights so as to steal the spotlight from the
rival that paid to be an official sponsor. However, these days, the platform has included
advertisements in addition to just sponsorship.

Ambushing occurs when the event is hijacked by any party who hasn’t sponsored it. It can be
brand’s competitors or any other unrelated brand too. For instance, if company A and B are
sponsoring an event, and A goes on an advertising blitzkrieg making it seem like the sole sponsor
for the event, then B would be said to have been ambushed by A.

When a company capitalizes on the resources bought by some other company, that is not
aware of it, to promote itself (or any of its products), it’s said to be using ambush marketing
strategies.

Examples of Ambush Marketing

● Nike Olympics: It all started with the 1966 Olympics. Reebok was the official sponsor for
the tournament. Nike paid the world’s fastest man of that time, Michael Johnson and gave
him a golden pair of Nike shoes. He won his race and a few weeks later appeared on the
cover of TIME magazine with the same pair of Nike shoes around his neck. Nike even
opened a Nike Centre right beside the Athlete’s Village. They also distributed flags to fans
guaranteeing that they would be seen in the stadiums.
● Pepsi ambushed Coca Cola in 2014 Football World Cup: Coca Cola signed a contract and
became the official marketing partner of FIFA and had a marketing, branding and
activation exclusivity in the category relating to FIFA and World Cup efforts of every
Football World Cup. Pepsi ambushed this marketing effort of Coca Cola by signing 19
renowned football players and launching its ‘Live for Now’ Campaign. Though not
associated with the actual event, Pepsi’s marketing activities made it look like it was
associated with it and this affected Coca Cola.
● 130-year-old Mercedes Benz wished BMW its 100th birthday: Mercedes Benz effectively
capitalized on the event of BMW’s 100th birthday and wished its competitor on social
media while advertising for itself.
● Pepsi’s ‘Nothing official about it’ Campaign: In 1996, Coca Cola acquired the rights of
being the official sponsor of the cricket world cup held in India. However, to tackle the
same, Pepsi launched a campaign named – “Nothing official about it’ and stole the
limelight from Coca Cola. The instance perhaps marks the most famous example of
ambush advertising in India. One of its effects was the stringent anti-ambush marketing
laws that cricketers had to sign in 2002.
https://www.youtube.com/watch?v=riwOAtmMhZY
● DHL vs The Competitors: DHL is one of the most known brand when it comes to
delivery. Apart from being fast, they do have a witty mind when it comes to ambush
marketing. DHL, instead of advertising this fact, played a trick on their competitors by
making them deliver a big box which said – DHL is faster.
● American Express: In 1986, credit card company American Express—rival to official
sponsor Visa Inc., began a marketing campaign in Asia promoting merchandise from a
fictitious "Olympic Heritage Committee", supposedly based in Switzerland. American
Express halted the campaign following complaints by the International Olympic
Committee.
21. Cause marketing

In 1983 for the Statue of Liberty Restoration project, a penny for each use of the American Express
card, and a dollar for each new card issued was given to the Statue of Liberty renovation program.
Over a four-month period, $2 million was raised for Lady Liberty, transaction activity jumped 28%
and the concept that doing good was good for business, was born.
Cause marketing, also called cause-related marketing, refers to two related, but slightly different
forms of marketing. The first involves a collaborative effort between a for-profit brand and a
non-profit organization for mutual benefit. The term can also be used in a more general sense to
refer to marketing by for-profit brands based around a social or charitable cause.

There are also two other related but separate phenomena: Corporate Social Responsibility
(CSR) and corporate giving. CSR can (but doesn’t always) go beyond ensuring compliance to
engage in actions that further some social good. This pursuit of high ethical standards drives good
public relations for the business. Corporate giving generally involves a specific donation that is tax-
deductible.

Advantages:
● Attracting and Retaining Customers
● Market Differentiation
● Outreach to Niche Markets
There are a variety of types of cause marketing campaigns and they differ considerably in structure:
● Portion of Purchase
● Buy One Give One
● Point of Sale
● Proud Supporter
● Event Sponsorship
● License Agreement
● Social Advocacy
● Digital Engagement

The socio-environmental causes that are being addressed by the Indian cause marketing campaigns
fall into four broad domains: -

● Health and hygiene: Typical examples are the Unilever’s Lifebuoy hand wash campaign
which focuses on the role of hand washing to enable a child to reach the age of five and
the Domex Toilet Academy.
● Education: P&G’s Shiksha seeks to provide funds to build infrastructure in rural schools
and Coca-Cola’s Support My School initiative.
● Ecology and environment: This includes Toyota’s Greenathon a campaign to create
environmental awareness; Aircel’s Save the Tiger campaign; and Unilever’s Kissanpur
initiative to encourage children in the cities to grow tomatoes.

22. Green Marketing

The marketing of products that are presumed to be environmentally safe, green marketing refers
to the process of selling products and/or services based on their environmental benefits. Such a
product or service may be environmentally friendly or produced and/or packaged in an
environmentally friendly way. This incorporates a broad range of activities, including product
modification, changes to the production process, packaging changes, as well as modifying
advertising.
It is also called Environmental Marketing and Ecological Marketing.

Examples:

● Under Philips Light Marathon they launched a CFL bulb as "Marathon", underscoring its
new "super long life" positioning and promise of saving $26 in energy costs over its five-
year lifetime.
● HP’s promise to cut its global energy use by 20% by the year 2010. The Hewlett-Packard
Company announced plans to deliver energy-efficient products and services and institute
energy-efficient operating practices in its facilities world-wide.
● Indica EV- an electric car from Tata Motors which runs on polymer lithium ion batteries

23. Guerrilla Marketing.

Guerrilla Marketing is a marketing technique where marketers use creative, imaginative yet
unconventional marketing tactics to get maximum reach and better results without involving heavy
costs and resources. The term was coined and defined by Jay Conrad Levinson in his book
Guerrilla Marketing. Guerrilla marketing involves unusual approaches such as intercept encounters
in public places, street giveaways of products, PR stunts.

Objective: The main objective of Guerrilla Marketing is to get maximum reach and brand
engagement without incurring a large expense.

Features:
● Pocket-Friendly Campaigns: Guerrilla marketing usually involves campaigns that are more
economical as well as effective.
● Targeted Reach: Guerrilla marketing focuses on creating campaigns which get more reach
through word of mouth & publicity.
● Minimalism: Fewer resources, big message. That’s what guerrilla marketing is all about.
● Channels: Communication of the campaign is done through word of mouth, social media,
and publicity, etc. That is, business doesn’t do much to communicate it. They just
implement the campaign and rest of the communication is done by people who become a
part of it.

Examples

1) Axe

Story Creation
Axe Body Spray uses custom
stickers attached to the classic
“exit man” signs that are so
commonplace in
establishments everywhere.
The added stickers create a
story about the familiar exit
man – and to think all this
time we thought he was
escaping from a fire!
2) Colgate

Surprise!
Colgate creates toothbrush-
shaped wooden popsicle
sticks to insert into ice cream
bars, reminding children
(and adults) of the
importance of
brushing. Presumably, the
importance of brushing with
Colgate.

< -------- More

Examples

24. Image & Emotional Marketing

“Rational only generates interest in the product, the ultimate driver is emotion”

Emotional marketing appeals include personal and social needs, such as: security, comfort,
happiness, acceptance, self-esteem, and status, achievement, saving money, or making money.
These are basic underlying feelings that drive our decisions and buying behavior. It may be a need
for financial security, which is associated with an image of safe investments and insurance, or it
could be a desire for status and achievement, reinforced by the mental picture of luxury
possessions.

Your marketing can target positive emotions through the use of unusual words, word rhythms and
rhymes, colors or shapes, pictures, numbers, or symbols, which reveal the associated feelings of a
previous experience, like the pleasant smell of food cooking, or a day at the beach. Appealing to
an underlying desire that triggers an automatic memory image can cause an emotional response
that reinforces logical thoughts, which converge and lead to a buying decision. Rather than using
ads with dull corporate speak, unfamiliar industry jargon, or selling how good you are, try tapping
into the direct process of brain patterns and emotional images with sharp, specific, and relevant
details that can sway the buying choices of your potential customers. Emotional marketing can be
done via:

● Word of mouth- people trust other people that tell them a product works or if it is the
best.
● Forums- this is basically electronic word of mouth.
● Trials- if you have concrete results, and the people who participated in the trials are
satisfied, you have proof that your product works, which appeals to people's skeptical side.
● Testimonials - again, people trust other people. If people are willing to take the time to
give a testimonial, others will know you have a great product.

Examples:
● Nike succeeds because its core belief - its brand promise, its love of the potential for the
athlete inside everyone lives inside the people in Beaverton. When that love is manifested
in their gear, consumers manifest it in their own lives. The result is not only an emotional
connection but an individual one.
● Starbucks is one of the strongest global brands, without following the marketing text book.
So what is the success factor of the Starbucks brand? The emotional experience of its
consumers – they feel sophisticated and part of what many brand experts refer to as a
“coffee house" community. For the Starbucks community, coffee is not just a beverage, it
is a ritual, a habit, a treat, and a satisfying reward all rolled in one. That’s the reason why
Starbucks’ cup sizes are "grande" and "venti," not medium or large. Each cup of coffee is
also freshly made by a "barista" at a separate counter and never behind a wall or out of
sight from the customer. The Starbucks store has tables and chairs for congregating or
reading and working, and many have plush sofas and armchairs. Many Starbucks also have
Internet connection for their customers’ convenience.
● Maggi- We Miss You Too
“Kab wapas ayegaa yaar? Miss you."
"I miss you yaar. Come back, man."
"Ab aa bhi jao. Miss you yaar."
These are lines from the latest three-film digital campaign
released by Nestlé Maggi. The ads are crafted to resemble a
series of personal messages to an old buddy. As Nestle was making efforts to get Maggi
Noodles back on the shelves, these ads were crafted to reflect the spontaneity and affection
between consumers and Maggi.
● Singapore Airlines - Not only employs the more common consistent visual themes one
might expect from an airline, but incorporates the same scent, Stefan Floridian Waters, in
the perfume worn by flight attendants, in their hot towels, and other elements of their
service. Consumers then link the airline to the scent and, should they be smelling Stefan
Floridian Waters again, they will be reminded of the airline and the pleasant emotions it
brought them.

25. Marketing Myopia

Marketing Myopia, first defined in an article by Theodore Levitt in Harvard Business Review, is a
short-sighted and inward-looking approach to marketing which focuses on fulfillment of
immediate needs of the company rather than focusing on marketing from consumers’ point of
view. When a company focus more on sales than on marketing and knowing about the consumers’
needs, that’s when marketing myopia strikes
Marketing Myopia is the lack of vision on the part of companies, particularly in failing to spot
customer’s desires through excessive product focus.
Marketing Myopia is the failure to define an organization's purpose in terms of its function from
the consumers' point of view. For example, railway companies that define their markets in terms
of trains, rather than transportation, fail to recognize the challenge of competition from cars,
airlines, and buses. It is therefore necessary to define the needs of the consumer in more general
terms rather than product-specific terms.

Examples:

● Kodak lost much of its share to Sony cameras when digital cameras boomed and Kodak
didn’t plan for it. Kodak became a franchise in the mind of consumers as far as
photography, cameras and film. The company’s iconic brand was built through a
combination of quality products and services, strong visuals like
the K logo and memorable advertising and PR
campaigns. But Kodak also suffered from Marketing Myopia.
The digital camera was invented at Kodak in 1975. Instead of
marketing the new technology, the company kept it under wraps
for fear of hurting its lucrative film business. Kodak had the
myopic view that the company was in the film business rather
than the story telling business. We aren’t buying cameras and
film as much as we are buying a record of our memories. We want to be able to tell our
stories for years and want the quickest, easiest tool to do so. Kodak would have been better
off embracing the new digital technology it invented. Companies like Sony and Canon took
a proactive and aggressive approach to marketing digital cameras and when Kodak decided
to get in the game it was too late. The company saw revenues and market share decline as
digital imaging became the dominant technology.
● Nokia losing its market share to android and IOS.
● Hollywood didn’t tap the television market as it was
focused just on movies.
● Yahoo (worth $100 billion dollars in 2000) lost to
Google and was bought by Verizon at approx. $5
billion (2016).
● The downfall of Government postal services can be understood as an outcome of in-
adaptability and a very passive marketing strategy.

26. Non-Conventional Advertising mediums

Non-traditional advertising is a form of advertising that is atypical. Non-traditional advertising can
encompass alternative media and outdoor media, new emerging methods of advertising, the use of
mediums that break from traditional advertising models. More traditional companies find it difficult
to embrace non-traditional advertising, but are slowly becoming more aware and open-minded that
it is a way of reaching consumers with a greater impact. There are two parts of such advertisements;
the virtual world of engagement and the physical world of engagement.
Online Advertising
Display Ads or banner ads are small, rectangular
boxes containing text and perhaps a picture that
companies pay to place on relevant websites.
Traditionally these banners were placed on top of
the web site or on the side panels, however now
YouTube videos also have such ads below the
video.

Interstitials: Advertisements often with a video

or animation, that pops up between changes on a
Website.

Sponsorships: Companies get their name of the website by sponsoring certain content on the site.
Many companies sponsor online communities whose members communicate through postings,
instant messaging and chat discussions about special interests to the company’s brands and
products. When GlaxoSmithKline launched their first weight-loss drug ‘Alli’, they sponsored a
weight-loss online community.

Social Media: Companies use social networking websites as a platform

for advertising too. They project display ads to focus on their target
audience using information given by users on the website.
Examples: Facebook, Instagram, Pinterest, Tumblr
L’Oreal Paris’ Instagram >

Mobile Marketing: Every 2-minute mobile episode of Fox’s show

Prison Break starts with a 10 second message that show cases Toyota’s
new subcompact sedan Yaris.

PLACE ADVERTISING:

Out Of Home Advertising (OOH), is a broad category including many creative and unexpected
forms to grab customer’s attention. The rationale is that markers are better off reaching people
where they work, play and of course shop.
Billboards have been transformed and now use colorful digitally produced graphics, backlighting,
sounds movement and usual 3 dimensional images.
Examples:
Product placement in movie: In the movie 3 Idiots, where Madhavan and Sharman Joshi travel
in a Volvo XC90, in the movie Taal where Coca Cola products are displayed during a song “Ishq
Bina”, MakeMyTrip is shown in the movie Yeh Jawaani Hai Deewani, etc.

Product Sampling: Giving free samples of the product at malls or through other means.

Contextual Advertising: Contextual advertising is a form of targeted advertising for

advertisements appearing on websites or other media, such as content displayed in mobile
browsers. The advertisements themselves are selected and served by automated systems based on
the content displayed to the user.

Wrapped Vehicles can include public transportation buses, trucks, shuttles, vans, automobiles,
etc. This high-impact format reaches both pedestrian and vehicular traffic and provides market
penetration by traveling throughout the target region. Entirely covered by full-colour advertising
design, which is specifically for the vehicle. The customized overall design of this format provides
eye-catching attention, promotional value and makes a statement about the advertiser. Examples:

Another new trend is elevator advertising. High resolution ads are placed on a screen in bustling
high-rise condos or office buildings. The average number of riders per day is at least 500, which
translates to approximately 90,000 views in a six-month period.

Some of the examples above can fall in the ambit of Guerrilla Marketing.
Another recent phenomenon is to create brand awareness by solving community problems.
Two great examples of this are:

 Aircel stuck an empty raft on a billboard near the Milan Subway in Mumbai (which is
notorious for flooding during the monsoons). The copy simply said, ‘In case of emergency,
cut rope’. Sure enough, on July 13, Mumbai was flooded and so was Milan Subway. People
in and around the area promptly removed the raft and used it to get around. This functional
innovation was the talk of the town and got wide coverage in local media. Apart from the
goodwill it generated among consumers (some of whom were referring to it as the Aircel
boat), the buzz that it generated in unpaid media was huge.

 The world’s first solar powered billboard was introduced in Africa by Nedbank. It
harnesses the solar energy of the sun into a much needed necessity: electricity. It currently
powers the kitchens of a township primary school, and will, in time, completely generate
the school’s required power needs.

27. PLC AND STRATEGIES AT EACH STAGE

THE PRODUCT LIFE CYCLE

The PLC is a model that illustrates the different stages that a product or service will pass through.
Each stage has its own attributes and will vary in length (time) with different products and
services. The time that it takes for your product/service to move through the PLC will largely be
determined by how effective your marketing plan is. It should therefore be stressed that the PLC
is a marketing tool to assist you when compiling a marketing plan. After a period of development,
it is introduced or launched into the market; it gains more and more customers as it grows;
eventually the market stabilizes and the product becomes mature; then after a period of time the
product is overtaken by development and the introduction of superior competitors, it goes into
decline and is eventually withdrawn.

Below is a diagram of the Product Life Cycle:

 Stage 1: Introduction

It can be argued that this stage can influence the length of the PLC and so the product/service
should be introduced in the market as effectively as possible. This is the time when the
product/service is new in the market and a high degree of marketing will be needed such as
promotions and advertising to increase commercial awareness.
Sales will be slow during the introduction stage and so you should not become impatient and spend
more money than necessary to try to increase the speed of sales: it will take time for people to use
and trust your product/service.
Examples: Product categories such as solar panels, electric car, air purifier, air fryer

Stage 2: Growth

Once your product/service has become established in the market, you can expect the number of
sales to increase rapidly and marketing expenditure may now be used for brand building.
Services over products will generally have far longer periods of growth. Products, particularly those
that are new, will soon attract the attention of competitors. Once competitors join the bandwagon,
the sales will gradually slow down and force you into marketing new prices: consequently, resulting
in fewer profits. If you have released your own version of an existing product (making you the
competitor), then the growth stage may be short depending on how long the existing product has
been available in the market.
Examples: Online streaming services, e-books, e-commerce

Stage 3: Maturity

The stage of maturity begins when the product/service sales peak and become stable mainly due
to the introduction of competitors during the end of the growth stage (influencing the move into
the maturity stage).
Maturity does not only result from increased competition, but also by new alternative
products/services in the market becoming more popular. Quite often, services in particular are
withdrawn because they are no longer needed, unfavorable or out of fashion.
Example: Shampoo, salt, ball pen, soft drink, etc.

Stage 4: Decline

The product/service moves into the decline stage when sales start to drop continuously and will
be a result of the issues that moved the product through maturity and saturation (competition,
low demand, unfashionable, etc.). The time taken to reach this stage of the PLC will differ with
different products/services: for an extreme example, Kellogg's still have a range of cereals that
are as popular today as when they were first released in the early 1900s. Also note; Kellogg’s may
have the number one cereal, but they have to spend a lot of money advertising that fact: there
being nothing new or exciting about plain old cornflakes makes this a great example of brand
marketing.

In the small business world, when your products/services move into decline, it is a good idea to
either improve your product or remove it completely to avoid damaging your image.
Example: sewing machine, feature phones, landline phones, desktop computer
Extending the PLC: Extension Strategies

The most profitable period of the PLC is during the later stages of growth and maturity. This is
the reason why many businesses try to delay the product/service from reaching the decline stages
for as long as possible. This is done by introducing PLC extension strategies during the maturity
stage.

Although you may have your own ideas, the more common strategies include:

 A move into new markets e.g. supermarkets selling clothing

 Introducing accessories to the product or new additions to the service e.g. introducing
financial management advice in accountancy book keeping services
 Changing the design and functionality of the existing product e.g. the packaging design,
color range, mobile phones used for Internet access. The best example of the same is
Gillette. Gillette keeps changing the product line periodically and this keeps rejuvenating
the market space with line extensions

The Problems of PLC Models

Not all products/services go through every stage of the PLC and it is common to go
straight from the introduction stage to decline (result of poor marketing)

It is often hard to tell which stage the product/service is in and consequently marketing
actions taken, too early or too late

It can be said that the model can only be used to help identify the symptoms of each stage

Every product/service will spend different lengths of time in each stage and there is no
physical way of showing this on the PLC model. However, the better your financial
control, the more you will be able to track individual products/services
Strategies for the differing stages of the PLC (Very important)
Introduction stage of PLC

The need for immediate profit is not a pressure. The product is promoted to create awareness. If
the product has no or few competitors, a skimming price strategy is employed. Limited numbers
of product are available in few channels of distribution. Advertising differentiates the product.

Decide when to enter the market. To be first can be rewarding but very risky and expensive.
But pioneer advantage is inevitable as they set the trend for the market class

Rapid-Skimming strategy involves launching the new product at a high price and high
promotion levels

Slow-skimming strategy involves launching the new product at a high price and low
promotion

Rapid-Penetration strategy involves launching the new product at a low price and high
promotion

Slow-Penetration strategy involves launching the new product at a low price and low level
of promotion

Example: Products for men’s beard like Beard Wash and Beard Softener by Ustra are in the
introduction stage.

Growth stage of PLC

Competitors are attracted into the market with very similar offerings. Products become more
profitable and companies form alliances, joint ventures and take each other over. Advertising
spend is high and focuses upon building brand. Market share tends to stabilize. Advertising
establishes participation with the marketplace.

Improve product quality and add new features and improved styling

Add new models and flanker products (i.e. products of different sizes, flavors, and so
forth that protect the main product.

Enter new market segments.

Increase distribution coverage and enter new distribution channels

Lower price to attract the next layer of price-sensitive buyers

 Shifts from product awareness advertising to product-preference advertising.

Example: Ayurvedic medicine led by the increasing trend of natural products and Smart
Watches can be said to be in the growth stage.

Maturity stage of PLC

Those products that survive the earlier stages tend to spend longest in this phase. Sales grow at a
decreasing rate and then stabilize. Producers attempt to differentiate products and brands are the
key to this. Price wars and intense competition occur. At this point the market reaches saturation.
Producers begin to leave the market due to poor margins. Promotion becomes widespread and
uses a greater variety of media. Advertising puts price ahead of the competition.

Market modification: the company might try to expand the market for its mature brand by
increasing the number of users and/or the usage rate.

 Convert non-users

 Enter new market segments

 Win competitor’s customers

 Promote more frequent use

 Use more of the product on each occasion

 New and more varied uses

Eg: Johnson & Johnson promoted its baby shampoo to adult users. Pears introduced pink soap
to target children

Product modification: Manager also try to stimulate sales by improving the product’s quality,
features or style.

Quality improvement – increase the product’s functional performance. Eg: Pillsbury

advertises its wheat flour as ‘chakki fresh atta’ and ‘good for family’s heart’

Feature improvement – add new features

Style improvement – increase the product’s esthetic appeal.

Marketing mix modification: Modify other marketing program elements such as
Pricing – cuts, discounts, special occasions, credit terms, increase price and quality
Distribution – more outlets and new distribution channels
Advertising – increasing expenditure, change message, timing and frequency of
advertising

Sales promotion - stepping up or reducing sales promotion

Personal selling – increase quality of sales force and sales territories

Services – speed up delivery and technical assistance.

Example:

Decline stage of PLC

At this point, there is a downturn in the market. For example, more innovative products are
introduced or consumer tastes have changed. There is intense price-cutting and many more
products are withdrawn from the market. Profits can be improved by reducing marketing spend
and cost cutting.

Defensive advertising or for revitalization

Increase investment – to dominate or strengthen its competitive position

Maintain its investment level until the uncertainties about the industry are resolved

Decrease its investment level selectively, by sloughing off unprofitable customer groups,
while simultaneously strengthening its investment in lucrative niches

Harvesting investment to recover cash quickly

Divest the business quickly by disposing of its assets as advantageously as possible

Examples:
28. Sports Marketing

Sports Marketing is a branch of the marketing industry that involves the promotion of and the
arrangement of sponsorship deals for sporting events, venues, teams, and individual athletes. Those
who work in the field are often employed by a specialty agency, a sports franchise, or by the
marketing division of a corporation that promotes its products through athletic sponsorship.
It can be classified into 3 subgroups- advertising of sport and sports associations, use of
sporting events, sporting teams and individual athletes to promote various products and
promotion of sport to the public.

Common examples of sport marketing include athlete endorsements, testimonials, event marketing
and stadium advertising.

Sports marketing morphs advertising, sponsorship, promotion, sales promotion, and public
relations into one of marketing's most effective tools to reach and touch consumers.

29. Types of Advertising

Advertising can be classified in different ways.

1. According to the medium used, advertising is of the following types:

▪ Print Advertising – Newspapers, Magazines, Brochures, Fliers

▪ Outdoor Advertising – Billboards, Kiosks, Tradeshows and Events
▪ Broadcast advertising – Television, Radio and the Internet
▪ Covert Advertising/Product placement – Advertising in Movies (Canon in ‘Barfi’)

2. Advertising can also be categorized as the following:

o Surrogate Advertising – Advertising Indirectly (Cigarettes, Alcohol)

 o Public Service Advertising – Advertising for Social Causes (Polio Campaign,
Sarva Shiksha Abhiyaan)
o Celebrity Advertising (Trump, SRK)
o Infomercials
o Business to Business advertising
o Co-op advertising
3. On the basis of intent, Advertising can be split into two main types:
▪ Persuasive advertising - this tries to entice the customer to buy the product by informing
them of the product benefit. (eg. Patanjali advertising its health benefits)
▪ Informative advertising - Providing the customer with information. Mostly one by the
government (e.g. health campaigns, new welfare benefits, Consumer Awareness Campaigns
etc.)

https://www.thebalance.com/different-types-of-advertising-methods-38548

https://www.business.qld.gov.au/running-business/marketing-sales/marketing-
promotion/advertising/types

30. USP, ESP

USP (Unique Selling Point): “THE LOGICAL BENEFITS”

The task of projecting your product as something which has differentiating factors comes under
the ambit of USP.
USP can be the product (Include features, packaging etc.); the service (Airtel 4G- 4G even in remote
locations); a combination of product and service

They should resonate with the needs and wants of the consumer.

Examples:
1. Samsung’s mobile Marine: Features like Unbreakable, Water Proof
2. Dominos: 30 minutes or less
3. M&Ms: The milk chocolate melts in your mouth, not in your hand
4. NANO, World’s cheapest car
5. Mac Book Air: World’s lightest laptop
6. Slim Cameras
7. Nokia 1100: Torch Light

Emotional Selling Point: “THE EMOTIONAL CONNECTION”

It is said that people buy emotionally and then justify logically.

The Emotional Selling Proposition gives you the opportunity to control the marketing message and
to drive an emotional reaction that creates the connection and triggers "I want this. I am going to
buy it."

E.g.: You can emphasize the end emotion after purchase - L’Oréal’s "Because you're worth it"
emphasizes pride and recognition of your own self-worth.
Examples:
1. Dove: Real Beauty
2. Nike: Just Do It
3. Incredible India Campaign: Kerala “God’s place on Earth”
4. Insurance schemes like “SarUthakeJeeyo”, Almost all of them
5. Polio Campaign “Do Boond Zindagi Ki” and other social cause campaigns against poverty,
AIDS etc.
6. Hero Honda Pleasure “Why should boys have all the fun”
7. L’Oréal’s "Because you're worth it" emphasizes pride and recognition of your own self
worth
8. "Finger lickin' good" from KFC
9. "Make safe sex feel sexy" (Durex condoms)

So, think about the feelings and the emotions that you want to stir up with your prospects and
clients
and use them in your sales. Can your product/service make the prospect-
* Feel valued
* Feel part of a unique group or select band of people
* Feel attractive
* Feel trendy

"USPs are great but ESPs are even better"

31. Distribution channels

Marketers use distribution channels to display, sell or deliver the physical product or service to the
buyer or user. They include distributors, wholesalers, retailers and agents.
There have also been some innovations in the distribution of services. For example, there has
been an increase in franchising and in rental services- the latter offering anything from televisions
through tools. There has also been some evidence of service integration, with services linking
together, particularly in the travel and tourism sectors. For example, links now exist between
airlines, hotels and car rental services. In addition, there has been a significant increase in retail
outlets for the service sector. Outlets such as estate agencies and building society offices are
crowding out traditional grocers from major shopping areas. Activities involved in the channel are
wide and varied though the basic activities revolve around these general tasks:

 Ordering
 Handling and shipping
 Storage
 Display
 Promotion
 Selling
 Information feedback

CHANNEL MEMBERS: Distribution channels can thus have a number of levels. Kotler
defined the simplest level as that of a direct contact with no intermediaries involved, as the 'zero-
level' channel. The next level, the 'one-level' channel, features just one intermediary; in consumer
goods a retailer, for industrial goods, a distributor. In small markets (such as small countries) it is
practical to reach the whole market using just one- and zero-level channels. In large markets (such
as larger countries) a second level; a wholesaler for example, is now mainly used to extend
distribution to the large number of small, neighborhood retailers or dealers.

Retailers- Retailers can promote your product by making consumers aware of its availability and
bypassing on technical information that could encourage the sale. Because there are thousands of
retailers located all around the country, they are an excellent intermediary for distributing your
product to a wide geographical range of consumers.

Wholesalers- reaching a potentially large number of consumers. The main function of a

wholesaler is to provide a link between the producer and the retailer. Once selling to a wholesaler,
there are three ways that your product will reach the consumer. Firstly, the consumer will purchase
directly from the wholesaler: this is the less common route out of the three. Alternatively, your
products will be sold on by the wholesaler to retailers.
The advantages of selling to a wholesaler are that:
i. They may have strong links with quality retailers: research will help discover this fact.
ii. Because they buy in bulk, it reduces the burden of on-site storage at your premises
reducing overhead costs.
The disadvantage of using a wholesaler to distribute your products is that:
i. They cannot market your products extensively
ii. Because they buy in bulk, it is often you will sell at a price much lower than the final retail
price.
Direct Distribution/ Sales Force: Very common for small businesses; products/services can be
sold directly to the consumer on-site i.e. directly from your shop, office or home by consumers
physically coming into the premises to make a purchase. This can be related with, for example, a
village baker or a hand-made furniture business where the products are made and sold at the same
place. Works well only when the TG is in the local region only.

Telemarketing- Selling your product/service through telemarketing is becoming increasingly

popular. Telemarketing allows sales to be made on a local, national and global scale, although the
costs will increase with the time and distance of phone calls.

Internet (E-Commerce) - Now a booming sector, dominated majorly by few major players. E-
commerce offers a chance to direct engage customers without investing in brick and mortar stores.
Though each e-commerce firms do invest in setting up distribution systems.
But it is to be noted that currently e-commerce firms have to incentivize customers to use an e-
commerce portal for their purchase. This means that e-commerce firms spend money to attract
customers, this is called CAC, Customer Acquisition Cost. At the same time, firms also have to
look at CLV, Customer Lifetime Value, which is the value the customers bring to the firm. If
the CAC is greater than the CLV, then the firms will not be able to survive for long.
Many FMCG companies use e-commerce sites to launch their new products; this helps in reducing
distribution costs and helps them focus primarily on the marketing of the product. E.g. Nestle tied
up with Snapdeal for the re-launch of Maggi Noodles.
Agents/Brokers- An agent or broker will help sell your product/service, but will not take
ownership of what they are selling at any time. They usually work on commission taking a
percentage of the total sales made by themselves. An agency or brokerage will sell your product or
service, for example insurance, tickets for entertainment, accommodation, etc. Perhaps the most
common example of an agent would be a travel agency. They never own the holidays or credit the
full amount of the sale to their business. Instead, they act as a link between the holiday resort and
the consumer, taking a commission on the sales.

Below is a diagrammatic representation of the most common distribution network for FMCG
companies.

The following types of Channel Memberships are possible:

Intensive distribution- Where the majority of resellers stock the 'product' (with convenience
products, for example, and particularly the brand leaders in consumer goods markets) price
competition may be evident.
Selective distribution- This is the normal pattern (in both consumer and industrial markets)
where 'suitable' resellers stock the product.
Exclusive distribution- Only specially selected resellers or authorized dealers (typically only one
per geographical area) are allowed to sell the 'product'.

The marketer must assess the benefits received from utilizing a channel partner versus the cost
incurred for using the services and design the Distribution Channels best suited to his needs.
32. Recent retail strategies being adopted by big players in India

Introduction
The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to
the entry of several new players. It accounts for over 10 per cent of the country’s Gross Domestic
Product (GDP) and around 8 per cent of the employment. India is the world’s fifth-largest global
destination in the retail space.
http://www.ibef.org/industry/retail-india.aspx

Retail Marketing Strategies in India

There are three aspects to be considered here
1. Target Market: Identifying the target segment which we want to cater to, plus we have to
ensure that this is a growing market to enter into
2. Retail Format: Primarily there are Store retailers, Non-store retailers, and Service retailers.
https://www.ukessays.com/essays/marketing/types-of-retail-formats-in-india.php
3. Sustainable Competitive Advantage: Emphasis is put on ensuring that we have a
competitive advantage, as this ensure that we will be able to capture a sufficient market
share for the long term
The following diagram illustrates commonly used strategies for retail marketing.

Private Branding

Products (or services) which are generally manufactured or provided by one company under the
 retailer’s brand. Example: Big Bazaar has its own line of towels and apparels.

The retail marketing mix must be consistent with the expectations of customers and must be
responsive to competition. The important factors in retail marketing include:

1. Store Location
2. People Element
 Staff capability
 Effectiveness
 Customer interaction

33. What can be defined as the luxury market in India?

Luxury retail in India has been a fascinating journey from a socio-economic perspective. The Indian
economy has evoked a lot of interest globally given its statistics of some of the highest disposable
incomes and increase in the number of millionaires.
Luxury clothing, fragrances, premium footwear, home electronics and high-end watches have
achieved good penetration among male Indian consumers, but items such as cufflinks, belts, wallets,
luxury wines, Champagnes and cigars still rate low on the wish-lists of many Indian men seeking
luxury brands. Among women, jewelry, cosmetics and skincare can already boast high levels of
awareness, followed by categories such as underwear, handbags and mobile phones. Low-
penetration sectors that are yet to make an impact include gourmet food, tableware and imported
furniture.
Super-deluxe brands like Porsche, Chanel, Louis Vuitton, Rolls-Royce, Rolex, Bulgari and others
have entered the market.

The luxury consumer in profile

A profile of the Indian luxury consumer, as per a study by research group KSA Tecnopak:
● Primarily resident in urban India
● Lives in a household earning more than about INR 800,000 (US$18,000) a year, where the
chief wage earner is generally male, average age 36–37
● Owns a premium/luxury saloon car such as a Honda Accord, a Vectra or a Skoda Octavia
etc.
● Among women consumers, 65% are housewives
● Most are educated to post-graduate level

Luxury households can also be categorized into segments according to their attitudes to luxury
goods purchasing:

● The Arrived: This is the most affluent group, comprising 49% of the target audience of
luxury goods companies. Traditionally wealthy individuals who are born in rich industrial
families Individuals who have worked diligently to make a name for themselves in their
business circle.
● The Actualized Ascetic: This group comprises largely self-made men, professionals or
business people who are in their late 40s or early 50s. This is the smallest group (15% of the
target audience).
● The Climbers: As the name suggests, this group wants to project a lifestyle image that will
gain them acceptance into the higher echelons of society, yet many lack the discernment
 that comes with exposure to luxury brands and wealth over a long period. These are 19%
of the target universe for luxury brands, says the study.
● The Laggards: Although well-heeled and targeted by luxury brands, this group remains
nonchalant about luxury goods consumption. This group comprises a high proportion of
college drop-outs and graduates who are in business or work as office executives. This group
is 17% of the target consumer base.

34. What is defined as BOP Market?

The bottom of the pyramid is the largest, but poorest socio-economic group. Although they
don’t have a high purchasing power, but by their sheer number there is a lot of money in the
market. Contrary to the popular view, BOP consumers are getting connected and networked. They
are rapidly exploiting the benefits of information networks. Distribution access to the BOP
markets is very difficult and therefore represents a major impediment for the participation of large
firms and MNCs. Initiatives like E-choupal (ITC) and Shakti (HUL) are a part of it.

35. What is integrated marketing communication (IMC)?

A management concept that is designed to make all aspects of marketing communication such
as advertising, sales promotion, public relations, and direct marketing work together as a
unified force, rather than permitting each to work in isolation so that they speak consistently with
one voice all the time, every time. For example, if a company markets its product as being customer
friendly, it should be reflected in all aspects starting from any phone conversation with them and
friendly salesman at the store location to prompt after-sales service.

36. Services marketing

A service is the action of doing something for someone or something. It is largely intangible.
A product is tangible (i.e. material) since you can touch it and own it. A service tends to be an
experience that is consumed at the point where it is purchased, and cannot be owned since is
quickly perishes. So often marketers talk about the nature of a service with the following attributes:
 Lack of ownership: Right of ownership is not taken to the service, since you merely experience
it. For example, an engineer may service your air-conditioning, but you do not own the service,
the engineer or his equipment. You cannot sell it on once it has been consumed, and do not take
ownership of it.

Intangibility: Service is intangible and cannot have a real, physical presence as does a product.
For example, motor insurance may have a certificate, but the financial service itself cannot be
touched i.e. it is intangible.

Inseparability: Service is inseparable from the point where it is consumed, and from the provider
of the service. For example, you cannot take a live theatre performance home to consume it (a
DVD of the same performance would be a product, not a service.)

Perishability: Service is perishable in that once it has occurred it cannot be repeated in exactly the
same way.
Heterogeneity: Since the human involvement of service provision means that no two services
will be completely identical. For example, returning to the same garage time and time again for a
service on your car might see different levels of customer satisfaction, or speediness of work.

Differentiating between Goods and Services:

Goods Services

A physical commodity A process or activity

Tangible Intangible

Homogenous Heterogeneous

Production and distribution are separation from Production, distribution and consumption are
their consumption simultaneous processes

Transfer of ownership is possible Transfer of ownership is not possible

The marketing mix (4P’s) has seen an extension and adaptation into the extended marketing mix
for services, also known as the 7Ps (Discussed earlier).

37. Viral Marketing

Viral Marketing is known as a word of mouth or these days with the increased use of the internet
“word of mouth” with the objective of marketing the product of a company via tools such as
social media networking sites like Instagram, Facebook, social media sharing sites such as
YouTube etc. or sites which have a social connect such as Twitter, BlogSpot etc.

In short it can be defined as any strategy which uses individuals to pass on a marketing message
to others; creating scope for exponential growth in the company’s spread of the intended message.
 Prominent examples of viral marketing are:

● When Hotmail was launched, much of its early success was due to the virility of the signature
line that it attached to every outgoing email inviting the recipient to join. One of the earliest
examples of viral marketing on the internet
● Subservient Chicken - the creepy webcam site made for a Burger King campaign allowed
people to control a guy in a chicken suit. It went viral almost instantly and for a few weeks
was everywhere
● Will It Blend - One of the most recent best viral marketing campaign examples, Blendtec’s
‘will it blend’ video series shows scientists testing if various household items will blend in
their super-powerful blender. This campaign leveraged the popularity of online video
sharing sites
● Dove Evolution Video - Part of a campaign by Dove, this video showed how models’
beauty is often artificial, and really struck a chord with its intended audience of female
viewers
● The Last Selfie: World Wildlife Fund (WWF) on Snapchat: The idea behind this campaign
is to bring awareness to the animal populations at risk of going extinct around the world.
WWF knew that they have a global audience and they needed to reach that audience, and
snapchat was the perfect place to do that. The whole idea behind WWF using Snapchat
was to emphasize the fact that endangered species are disappearing around the world just
as selfies disappear from Snapchat in 10 seconds.

38. Word of Mouth Marketing

Word of mouth is a reference to the passing of information from person to person. Originally
the term referred specifically to oral communication (literally words from the mouth), but now
includes any type of human communication, like face-to-face, telephone, email, & text messaging.
Characteristics of Word of Mouth

Word of mouth also takes many forms online or off-line. Two noteworthy characteristics are:

1. Credible—People trust others they know and respect, word of mouth can be highly
influential.
2. Personal—Word of mouth can be a very intimate dialogue that reflects personal facts,
opinions, and experiences.

Whose Word of Mouth Matters?

According to Mintel, 34% of US Internet users who bought a product or service based on a
recommendation got that tip from a friend or relative, while one-quarter bought based on advice
from a spouse or domestic partner. A recommendation from someone familiar and trust-worthy
is the easiest path to a product sale, link or new subscriber. This is because, recommendations are
generally perceived as incentive-free, unlike the obvious motivation of advertisers, who may over-
promise in a bid to increase sales.

Successful examples

● Gmail - Google did no marketing, they spent no money. They created scarcity by giving
out Gmail accounts only to a handful of "power users." Other users who aspired to be
like these power users aspired for a Gmail account and this manifested itself in their
bidding for Gmail invites on eBay. Demand was created by limited supply; the cachet
of having a Gmail account caused the word of mouth, rather than any marketing
activities by Google.
● Red Bull is the market leader in the worldwide energy drink market, and they continue
to grow awareness through word-of-mouth focused activities. Among the initiatives
that drive Red Bull’s WOM:

➢ Red Bull Wings Team – a group of Red Bull employees that drive around in Red Bull
branded vehicles distributing samples
➢ Student Brand Manager Program – Red Bull sponsors student advocates to discuss Red Bull
at events around their respective schools
➢ Red Bull Bedroom Jam – A talent show event focused on their targeted student
demographic
➢ Red Bull Reporter – A program where Red Bull sponsors journalism and film students to
create news stories around the Red Bull brand

● Pulse candy is a brilliant example of word of mouth marketing:

https://www.livemint.com/Companies/PqOACgao1xQlVTmRmTEYzN/Word-of-mouth-
sends-demand-soaring-for-Pulse-candy.html
39. BCG MATRIX

The BCG Matrix was ideated by the Boston Consulting Group and gets its name from the firm as
well. Aiming to gauge the performance of a portfolio of products, the BCG Matrix plots the
RELATIVE MARKET SHARE of a product against MARKET GROWTH RATE and hence is also
called the Product Portfolio Matrix. It is used for an overview of products, not for a detailed
analysis.

The growth rate of the market dimension is used as a proxy measure of the attractiveness of the
market, with high-growth markets being seen as more attractive and offering more potential and
opportunity. Relative market share is used as a surrogate of competitive strength. The larger the
firm’s market share, relative to its largest competitor, the stronger the firm is in the marketplace.
Therefore, the BCG matrix combines a measure of market attractiveness against overall
competitive strengths in order to identify the quadrant of the model with the firm or business
unit is situated.

It is important to define the market for the BCG matrix. Example: Smartphones are considered to
be stars if Apple defines its market as smartphones, but are question marks, if the market is defined
to be phones.

Dogs: Low Market Share / Low Market Growth: In these areas, your market presence is weak, so it's
going to take a lot of hard work to get noticed. Also, you won't enjoy the scale economies of the
larger players, so it's going to be difficult to make a profit.
Stars: High Market Share / High Market Growth: Use large amounts of cash; they are the leaders in
business so they should produce large amounts of cash as well. These are fantastic opportunities,
and you should work hard to realize them.
Cash Cows: represent the division within a company that has a large market share within a mature
industry. A cash cow can also refer to a business, product or asset that, once acquired and paid off,
will produce consistent cash flow over its lifespan.
Question Marks (Problem Child): Low Market Share / High Market Growth: These are the
opportunities no one knows what to do with. They aren't generating much revenue right now
because you don't have a large market share. But, they are in high growth markets so the potential
to make money is there.
40. ANSOFF MATRIX

The Ansoff Product-Market Growth Matrix is a marketing tool created by Igor Ansoff and first
published in his article "Strategies for Diversification" in the Harvard Business Review (1957). The
matrix allows marketers to consider ways to grow the business via existing and/or new products, in
existing and/or new markets – there are four possible product/market combinations.

Ansoff's matrix provides four different growth strategies:

● Market Penetration- the firm seeks to achieve growth with existing products in their
current market segments. The main objectives of market penetration are:
1. Maintain or increase the market share
2. Secure dominance of growth markets
3. Restructure a mature market by driving out competitors
4. Increase usage by existing consumers
● Market Development - the firm seeks growth by targeting its existing products to new
market segments. The possible ways for approaching this strategy are:
1. New geographical markets
2. New product dimensions
3. New distribution channels
4. Different pricing policies to attract different customers or create new market
segments
● Product Development - the firm develops new products targeted to its existing market
segments.
● Diversification - the firm grows by diversifying into new businesses by developing new
products for new markets.
41. Porter’s Five Forces?

While Porter’s model’s primary use is in case interviews, it can be a useful tool for marketers as
well. Although the Five Forces is an excellent framework in helping you organize your thoughts,
like other frameworks we cover in this guide; its analysis is not complete. The Five Forces should
be used in conjunction with other frameworks to enable you to fully understand the issues at hand.

Five primary forces:

1) The threat of new entrants

 2) The bargaining power of buyers/customers
3) The bargaining power of suppliers
4) The threat of substitute products
5) Rivalry with competitors

Attractiveness of the market depends upon:

∙ Intense competition allows minimal profit margins

∙ Mild competition allows wider profit margins

Barriers to Entry:

There are a number of factors that determine the degree of difficulty in entering an industry:

∙ Economies of scale
∙ Product differentiation
∙ Capital requirements vs. switching costs
∙ Access to distribution channels
∙ Cost advantages independent of scale
∙ Proprietary product technology
∙ Favorable access to raw materials
∙ Favorable location
∙ Learning Curve
∙ Government Policy

Bargaining Power of Buyers: A buyer group is powerful if:

∙ It is concentrated or purchases large volumes relative to seller's sales

∙ The products it purchases front the industry are standard or undifferentiated
∙ It faces few switching costs
∙ Buyers pose a credible threat of backward integration
∙ The industry's product is unimportant to the quality of the buyer's products or services
∙ The buyer has full information

Bargaining Power of Suppliers:

A supplier group is powerful if:

∙ It is not obliged to contend with other substitute products for sales in the industry
∙ The industry is not an important customer of the supplier group
∙ The supplier group is an important input to the buyer's business
∙ The supplier group's products are differentiated or it has built up switching costs
∙ The supplier group poses a credible threat of forward integration

Substitute Products:

Substitute products that deserve the most attention are those that:
 ∙ Compete in price with the industry's products
∙ Are produced by industries earning high profits

Rivalry:

Rivalry among existing competitors increases if:

∙ Numerous or equally balanced competitors exist

∙ Industry growth is slow
∙ Fixed costs are high
∙ There is lack of differentiation or switching costs
∙ Capacity is augmented in large increments

ACKNOWLEDGEMENT

We would like to thank the batches that have come before us for providing us the base for this
material.
All the best to the batch of 2023 from MarkSoc.