Marketing Management

LECTURE 1
Fundamentals and Scope of
Marketing in the 21st Century
Marketing offers several benefits to businesses. Here are some key
benefits of marketing:

§ Increased Sales and Revenue: Effective marketing strategies

can drive customer demand, resulting in increased sales and
revenue for businesses.
For example, Myntra, a leading online fashion retailer in India,
implemented effective marketing strategies to drive customer
demand. They leveraged personalized recommendations and social
media promotions to engage their audience. By offering exclusive
discounts, flash sales, and limited-time offers, Myntra attracted a
large customer base, increased sales, and achieved significant
revenue growth.

§ Brand Awareness and Recognition: Marketing plays a crucial

role in creating brand awareness and establishing a recognizable
brand identity.
For example, Parle-G, a popular Indian biscuit brand, built brand
awareness through mass media advertising, including television
commercials and radio ads. Their memorable jingle, ‘G for Genius’,
and widespread availability in local stores helped establish
a strong brand identity among Indian consumers.

§ Customer Engagement and Loyalty: Marketing efforts help build

strong customer relationships and foster loyalty.
For example, Titan launched a loyalty program called ‘Titan Rewards’
where customers earn points for their purchases and enjoy exclusive
benefits. Titan also organized customer appreciation events and
offered personalized recommendations through their online platform,
fostering a sense of belonging and enhancing the overall customer
experience. Through these efforts, Titan created a loyal customer
base that continues to support and advocate for the brand.

§ Competitive Advantage: Marketing enables businesses

to differentiate themselves from competitors and gain a
competitive edge.
For example, Dabur focused on promoting its range of Ayurvedic
products, highlighting their natural and herbal formulations. Through
targeted advertising campaigns, Dabur effectively positioned itself
as a trusted brand with a heritage of Ayurvedic expertise, setting
them apart from competitors who primarily offered conventional
products. This differentiation helped Dabur capture a unique market
segment and gain a competitive edge in the consumer goods industry.

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§ Market Expansion and Growth: Marketing initiatives can help
businesses enter new markets, reach untapped customer
segments, and expand their market reach.
For example, OYO Rooms utilized marketing strategies to expand
its market presence and reach untapped customer segments. They
focused on targeting budget-conscious travelers and promoting
their affordable accommodations through various channels, including
online travel agencies, social media, and targeted advertising
campaigns. By offering attractive discounts, flexible booking options,
and a wide range of hotel choices, OYO Rooms successfully entered
new markets and attracted a diverse customer base, contributing to
their market expansion and overall growth.

§ Product Development and Improvement: Marketing research

provides valuable insights into customer preferences, market
trends, and competitor analysis.
For example, Amul, a renowned dairy brand in India, leverages
marketing research to understand customer preferences and analyze
competitor offerings. This research helps Amul identify gaps in the
market and develop new dairy products, such as flavored milk or
cheese variations, that cater to changing consumer tastes. By
constantly innovating and improving its product line, Amul
maintains its leadership in the dairy industry and meets the evolving
demands of its customers.

§ Customer Feedback and Insights: Marketing facilitates two-way

communication with customers, allowing businesses to gather
feedback, insights, and preferences directly from their target
audience.
For example, Zomato actively gathers customer feedback through its
website and app. By encouraging customers to rate and review their
dining experiences, Zomato collects valuable insights to improve
their services. This customer feedback loop helps Zomato enhance
its platform and offerings, ensuring a better experience for its users.

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Now, let us see some of the best marketing campaigns.

1. Campaign: Amul Utterly Butterly Delicious

Amul's iconic ‘Utterly Butterly Delicious’ campaign
focused on catchy slogans and captivating visuals
featuring their beloved mascot, the Amul girl. They
leveraged print advertisements and outdoor billboards
to engage consumers.

Analysis: Amul's campaign captured attention through its witty and timely advertisements, often
commenting on current events and social issues. The campaign established Amul as a relatable and
humorous brand, leading to increased brand awareness and loyalty among consumers.

2. Campaign: Tata Tea Jaago Re

Tata Tea's ‘Jaago Re’ campaign aimed to raise social awareness
and drive civic engagement. They used thought-provoking
commercials, print advertisements, and digital content to
address social issues and encourage people to take action.

Analysis: Tata Tea's campaign successfully linked the brand to

social activism, resonating with socially conscious consumers.
The campaign created a positive brand image, increased
consumer engagement, and strengthened brand loyalty by
associating Tata Tea with social responsibility and empowerment.

3. Campaign: Fevicol ka Jod

Fevicol, a leading adhesive brand, created the memorable
‘Fevicol ka Jod’ campaign that showcased the strength and
durability of their product. They used humorous and relatable
advertisements across multiple media channels.

Analysis: Fevicol campaign effectively conveyed the message of strong bonding through amusing
and memorable advertisements. The campaign not only reinforced Fevicol's position as a reliable
adhesive brand but also generated brand recall, customer trust, and increased market share.

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Let’s move to the next topic i.e. components of marketing.
Marketing is the process of creating, communicating, and delivering value to customers by
identifying their needs and wants through market research. It involves developing products or
services to meet those needs and establishing strong customer relationships while ensuring
awareness and accessibility of the offerings.

Let’s understand the components of marketing in detail.

§ Creating Value: Creating value means offering products

or services that meet customers' needs and provide them
with benefits or solutions.
For example, a company that sells organic food products
creates value by offering healthier alternatives to customers
who prioritize natural and sustainable ingredients.

§ Communicating: Communicating involves sharing information

about products or services with customers through various
channels to inform and persuade them.
For example, a local bakery communicates its daily specials
and promotions through social media posts, enticing customers
to visit the store and try their freshly baked goods.

§ Value: Value refers to the benefits or advantages that

customers perceive when purchasing and using a product
or service.
For example, a car manufacturer offers value to customers
by producing vehicles that are fuel-efficient, reliable, and
packed with safety features.

§ Developing Products: Developing products refers to the

process of creating new products or improving existing
ones based on customer needs and preferences.
For example, an electronics company develops a new
smartphone with a larger screen, faster processor, and
enhanced camera features in response to customer
demands for more advanced and user-friendly devices.

§ Awareness: Awareness involves making customers aware of

a product or service's existence and its benefits.
For example, a new restaurant in town increases awareness by
distributing flyers and placing advertisements in local newspapers,
attracting potential customers to try their cuisine.

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§ Customer Relationships: Building customer relationships involves
fostering connections and maintaining engagement with customers
to create loyalty and repeat business.
For example, a clothing retailer offers personalized recommendations
and sends exclusive discounts to customers who have signed up for
their loyalty program, aiming to strengthen relationships and
encourage them to keep coming back.

§ Market Research: Market research involves collecting and

analyzing data about customers, competitors, and market
trends to make informed business decisions.
For example, a software company conducts surveys and interviews
to gather feedback from users, helping them identify areas for
improvement and develop new features for their software product.

Now, let us explore the difference between sales and marketing.

A transaction between the buyer and the seller in which the seller sells intangible or tangible
goods, assets, or services against money is known as a sale. For example, a customer walks into a
clothing store, and the salesperson assists them in choosing a dress by providing information,
offering styling suggestions, and ensuring a smooth transaction.

Sales
Sales refers to the activities and processes involved in directly selling
a product or service to customers. It focuses on converting leads into
customers and generating immediate revenue.

Here's how sales would apply to a street vendor selling

handmade crafts:
§ Customer Interaction: The street vendor engages with potential customers who pass by
their stall and showcases the crafts they have for sale.
§ Product Demonstration: The vendor highlights the unique features, quality, and craftsmanship
of each handmade craft, demonstrating their value to interested customers.
§ Negotiation and Pricing: The vendor discusses the price and negotiates with customers
to finalize the sale. They may offer discounts or promotions to encourage customers to
make a purchase.
§ Closing the Deal: Once the customer agrees to buy a specific handmade craft, the
vendor completes the transaction, collects payment, and provides any necessary receipts
or documentation.

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Marketing
Marketing, on the other hand, refers to the broader set
of activities aimed at promoting a product or service,
creating awareness, and attracting customers. It involves
understanding customer needs, developing a compelling
value proposition, and implementing strategies to reach
and engage with the target audience.

Here's how marketing would apply to the street vendor selling handmade crafts:
§ Product Positioning: The vendor identifies the unique selling points of their handmade crafts,
such as the use of eco-friendly materials or intricate designs, to differentiate themselves from
other vendors.
§ Targeting the Right Audience: The vendor determines the target audience for their crafts,
considering factors such as age, preferences, and buying behavior, and tailors their marketing
efforts accordingly.
§ Promotion and Advertising: The vendor uses various marketing channels to create awareness
and attract potential customers. This can include distributing flyers, leveraging social media
platforms, or participating in local craft fairs or events.
§ Building Relationships: The vendor focuses on building relationships with customers to
encourage repeat business and word-of-mouth referrals. They may offer loyalty programs
or provide personalized recommendations to enhance the customer experience.
§ Branding: The vendor establishes a brand identity by ensuring consistent quality, using
attractive packaging, and showcasing the crafts in an appealing and eye-catching manner.
§ Market Research: The vendor stays updated on market trends, customer preferences, and
competitors' offerings to make informed decisions about product assortment, pricing, and
marketing strategies.

References:
§ Bhasin, H. (2023). Pricing strategies. Marketing91. https://www.marketing91.com/pricing-strategies/
§ https://www.outbrain.com/help/advertisers/benefits-of-marketing/. (n.d.).
https://www.outbrain.com/help/advertisers/benefits-of-marketing/
§ https://www.surveysparrow.com/blog/role-of-market-research-in-product-development/. (n.d.).
https://www.surveysparrow.com/blog/role-of-market-research-in-product-development/
§ https://www.hubspot.com/sales/what-is-sales. (n.d.).
https://www.hubspot.com/sales/what-is-sales

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Marketing Management

LECTURE 2
Marketing Mix
The 4Ps represent the four key components that a company needs to consider when developing
its marketing strategy. They are:
§ Product
§ Price
§ Promotion
§ Place

Let’s start with the first P i.e. Product.

Product
A product can be anything that satisfies a customer's
wants or needs.
A product can be tangible, such as a vehicle or a piece
of clothing, or intangible, such as a cruise or house
cleaning service.
For example, before the iPhone was launched, most consumers
did not realize the need for a phone to access everything at their
fingertips. The way Apple marketed its product compelled people
to simplify their lives by carrying a smartphone that could also
serve as a GPS, calendar, search engine, flashlight, weather guide,
and calculator.

Now, let’s move to the second P i.e. Price.

Price
Price refers to the amount of money customers have to pay to
acquire the product or service.
Setting the right price is crucial as it directly affects the
demand for the product, profitability, and perceived value.
For example,
§ Apple Inc is a well-known example of a company that
strategically sets its product prices based on market
trends, consumer demand, and brand positioning.
Specifically, their pricing strategy for iPhones exemplifies
how businesses can adapt their prices to align with different
market segments and product cycles.
§ Royal Enfield, a well-known motorcycle brand in India maintains higher prices to
maintain the exclusivity of their brand and attract consumers who seek a unique
and iconic biking experience.

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Next comes the third P i.e. Promotion.

Promotion
Promotion refers to reaching the target audience with
the right message at the right time.
A promotional strategy aims to show consumers why
they would need a certain product and the reasons
for buying it over other products.
The core of marketing communications, product
promotions push out specific and meaningful advertising
through popular channels:
§ Word-of-mouth seeding
§ Social networking
§ Instagram campaigns
§ Print marketing
§ Television Commercial
§ Email marketing campaigns
§ Social media marketing and more
For example, Apple is known for its engaging and emotionally-driven television commercials that
showcase the features and benefits of its products, particularly iPhones. These commercials focus on
how iPhones can make a difference in people's lives and highlight innovative functionalities. By using
storytelling and high quality production, Apple effectively grabs the attention of its target audience
and reinforces its brand identity.

Now, come to the last P i.e. Place.

Place
This is where and how the product or service is purchased
by the customers. It also entails where the product is stored
and manufactured.
This marketing plan also considers where the product is
advertised and in which format, such as magazines, online ads,
radio, infomercials, or film product placements.
For example, Apple Inc strategically uses its retail stores as a
crucial component of its ‘Place’ strategy. The company designs, develops, and sells its products, such
as iPhones, MacBooks, and iPads, through its chain of Apple retail stores.

References:

§ Yasar, K. (2022). 4 P’s marketing mix. WhatIs.com. https://www.techtarget.com/whatis/definition/Four-Ps

§ Team, C. (2023). 4 p’s of marketing. Corporate Finance Institute.
https://corporatefinanceinstitute.com/resources/management/4-ps-of-marketing/

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 Marketing Management

LECTURE 3
4 P's of Marketing: Product
Product
A product is a tangible or intangible offering that
satisfies a customer's wants or needs. It can be a
physical item, such as a car, smartphone, or clothing,
or it can be an intangible service, such as banking,
healthcare, or consulting.
Products are created to provide value to consumers
and address specific problems or desires they may
have. A successful product is one that effectively
meets customer demands, provides value, and
differentiates itself from competitors.

Types of Products
Products can be broadly classified into two main types based on their characteristics: tangible
products and intangible products.

1. Tangible Products: Tangible products are physical goods that can be seen, touched, and
physically interacted with. These products have a physical presence and can be stored,
shipped, and displayed. Tangible products are typically produced, manufactured, and sold to
customers. Some examples of tangible products include:
a. Consumer Goods: Items purchased by individual consumers for personal use, such as
clothing, electronics, furniture, and household appliances.
b. Industrial Goods: Products bought by businesses for use in their operations, such as raw
materials, machinery, equipment, and office supplies.
c. Fast-Moving Consumer Goods (FMCG): Products with a quick turnover rate, like packaged
foods, beverages, toiletries, and cleaning products.
d. Durables: Products that have a relatively long lifespan and can be used multiple times, such
as cars, smartphones, and home appliances.
e. Non-Durables: Products that are consumed or used up quickly, like perishable food items,
toiletries, and stationery.

2. Intangible Products (Services): Intangible products, also known as services, are experiences,
performances, or actions provided to customers. Unlike tangible products, services cannot be
held, touched, or physically possessed. Instead, they are performed or delivered to customers
in real-time. Some examples of intangible products (services) include:
a. Professional Services: Services offered by professionals in various fields, such as legal
advice, accounting, consulting, and medical services.
b. Hospitality Services: Services provided by the hospitality industry, such as hotels,
restaurants, travel agencies, and entertainment venues.
c. Financial Services: Services related to banking, insurance, investments, and financial
planning.
d. Transportation Services: Services involved in moving people or goods, such as taxi
services, shipping companies, and airlines.

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 e. Health and Wellness Services: Services related to healthcare, fitness, and wellness, such
as spa treatments, fitness classes, and counseling.

Intangible products often require direct interaction between the service provider and the customer,
and the quality of service delivery plays a significant role in customer satisfaction and loyalty.

Difference between Product and Service

Aspect Product Service

Nature Tangible and physical goods Intangible actions or performances

Can be owned and transferred to

Ownership Cannot be owned, only experienced
others

Produced and manufactured in

Production Produced and delivered in real-time
advance

Perishability Generally not perishable Perishable (cannot be stored for later use)

May have limited customization Often highly customizable for each

Customization
options customer

Evaluation Can be evaluated before purchase Often difficult to evaluate before purchase

Quality Can be assessed based on physical Quality is often evaluated based on

Assessment attributes outcome

Smartphone, laptop, clothing, food

Examples Haircut, legal advice, healthcare, education
products

Product Differentiation and USP

Product differentiation and Unique Selling Proposition (USP) are two essential concepts in
marketing that help businesses stand out in a competitive marketplace.

Product Differentiation
Product differentiation refers to the process of
distinguishing a company's products or services
from those of its competitors. It involves creating
unique characteristics, features, or benefits that
set a product apart in the minds of consumers. The
goal of product differentiation is to create a perceived
value that makes the product more appealing and
attractive to the target market.

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Product differentiation can be achieved through various means, including:
§ Unique Features: Offering distinctive features or functionalities that competitors do not have.
For example, a smartphone with groundbreaking camera technology or a car with an innovative
safety system.
§ Quality: Emphasizing superior quality and craftsmanship to position the product as a premium
choice compared to lower-quality alternatives.
§ Design: Creating aesthetically pleasing and innovative designs that catch the attention of
consumers and provide a competitive edge.
§ Branding: Developing a strong brand identity and associating it with certain positive attributes
or values that resonate with the target audience.
§ Customer Service: Providing exceptional customer service and support, which can be a
significant differentiator in many industries.
§ Pricing: Employing a pricing strategy that aligns with the perceived value of the product, such
as premium pricing for luxury goods or competitive pricing for budget-friendly options.

Differentiation is crucial because it allows companies to compete based on factors other than just
price, which can lead to higher profit margins and customer loyalty.

Unique Selling Proposition (USP)

A USP is a clear and compelling statement that
communicates the unique benefits of a product or service
to the target customers. It answers the question, ‘Why
should customers choose this product over competitors?’
A well-crafted USP highlights what makes a product or
service special, and it should be relevant, distinct, and
meaningful to the target market. It is a key element of a
company's marketing and branding strategy. A strong USP
helps businesses attract and retain customers by clearly
communicating the value they offer.

A USP can be expressed in a single sentence or a concise phrase, and it should address one or
more of the following points:
§ Specific Benefits: Clearly state the specific benefits that the product or service offers to
customers. For example, ‘Our vacuum cleaner provides 50% more suction power for faster and
more efficient cleaning.’
§ Unique Features: Highlight any unique features or functionalities that competitors do not
provide. For instance, the only smartphone with an unbreakable and scratch-resistant display.
§ Target Market: Specify the particular target audience the product is designed for. For
example, a skincare line formulated exclusively for sensitive skin.
§ Problem Solving: Emphasize how the product or service addresses a particular problem or pain
point that customers commonly experience. For instance, relief for chronic back pain with our
ergonomic office chair.

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Features and Benefits of a Product
Features and benefits are two essential aspects of a product that serve different purposes in
marketing and communication. Understanding the distinction between them is crucial for effective
product promotion.
Let's break down their differences:

Features
Features refer to the characteristics, attributes, or specifications of a product. These are the
specific details about what the product can do or what it includes. Features are tangible and
can be objectively described. They focus on the product itself and its technical aspects.

Some examples of features for a smartphone could be:

§ 6.5-inch display
§ 128GB storage capacity
§ 12MP dual-camera system
§ Water-resistant design
§ Fast charging support

Benefits
Benefits, on the other hand, address the positive outcomes and advantages that customers can gain
from using the product. These are the ways the product fulfills the needs or desires of the customers.

Benefits are more customer-centric and focus on how the features provide value. Using the
same smartphone features mentioned above, some corresponding benefits could be:
§ Enjoy a larger and clearer display for a better viewing
experience.
§ Store more data, apps, and media without worrying
about running out of space.
§ Capture stunning photos and videos with high-quality
camera capabilities.
§ Use the phone confidently even in wet conditions
without fear of damage.
§ Charge the phone quickly and spend less time waiting
for it to be ready for use.

Features are the factual aspects of a product, while benefits are the positive outcomes and
advantages that customers receive from those features.

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While features provide necessary information about what the product offers, benefits appeal to the
emotions and needs of the customers, helping them understand how the product can improve their
lives or solve their problems.

However, are benefits derived from features?

Yes, benefits are derived from features. Features are the specific characteristics and capabilities of
a product, while benefits are the positive outcomes and advantages that customers gain from those
features. The relationship between features and benefits is essential for marketing and selling a
product effectively.

For the smartphone example:

§ The high-resolution camera feature might result in stunning, professional-quality photos and
videos, allowing users to capture precious moments in vivid detail.
§ The long-lasting battery feature might ensure that users can use their phone for an extended
period without needing to recharge frequently, providing convenience and uninterrupted usage.

Ultimately, customers are not just interested in the technical specifications of a product; they want
to know how it will improve their lives, solve their problems, or fulfill their desires.

So, while features provide the foundation, benefits are what drive customer interest and purchasing
decisions.

References:

§ Praxie. (2023, January 6). Kotler’s five product levels Model Template – Strategy Software Online tools. Praxie.com.
https://praxie.com/kotlers-five-product-levels-model-online-tools-templates/

§ O’Shea, J. (2022). What is a USP? Growthonics. https://growthonics.com/insights/what-is-a-usp/

§ Hasa. (2020). Difference between product and service. Pediaa.Com. https://pediaa.com/difference-between-
product-and-service/

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 Marketing Management

LECTURE 4
4 P’s of Marketing: Price
Price is the cost of the product that the consumer pays. During
product marketing, it is important to set a price that reflects
the current market trends and is affordable for consumers, yet
at the same time is profitable for the business. Price can
fluctuate based on supply, demand, and the product's sales
cycle. While some companies might lower the price to compete
with the market, others might inflate it, especially if they are
promoting a luxury brand.

A pricing strategy is a model or method to establish the best

price for a product or service. It helps you choose prices to
maximize profits and shareholder value while considering
consumer and market demand.

The five most common pricing strategies that the company uses are as follows:
§ Cost-Plus Pricing: This strategy involves calculating the total production cost of a product or
service and then adding a markup (profit margin) to determine the final price. The markup is
usually a percentage of the production cost, and it ensures that the company covers its
expenses and earns a profit.
For example, Tata Motors, an Indian automotive
company, uses cost-plus pricing for its commercial
vehicles. Let's say Tata calculates that the cost of
manufacturing a specific truck model is ₹8,00,000
(including materials, labor, and overhead). They
decide to add a 20% markup for profit.
Cost of Manufacturing: ₹8,00,000
Markup (20%): ₹1,60,000
Selling Price: ₹8,00,000 + ₹1,60,000 = ₹9,60,000

§ Competitive Pricing: With competitive pricing, a company sets its prices based on what
competitors are charging for similar products or services. The aim is to stay competitive
in the market and avoid being significantly higher or lower than the competition.
For example, Flipkart, a major e-commerce platform
in India, uses competitive pricing for various products.
If they notice that Amazon is selling a popular
smartphone model for ₹15,000, they might set a
similar price to remain competitive.
Competitor's Price: ₹15,000
Flipkart's Price: ₹15,000 (similar to a competitor)

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§ Skimming Pricing: This strategy is the opposite of penetration pricing. Companies start
by setting a high price for their new and innovative products to target early adopters
and customers who are willing to pay a premium. As demand from these price-insensitive
segments decreases, the company may gradually lower the price to attract more price-
sensitive customers.
For example, Apple uses price skimming for its iPhones.
When launching a new model, let's say the production
cost is ₹40,000. They aim for a profit margin of 50%, so
they set an initial high price.
Production Cost: ₹40,000
Desired Profit (50%): ₹20,000
Initial Price: ₹40,000 + ₹20,000 = ₹60,000

§ Penetration Pricing: With this strategy, a company sets a relatively low initial price for its
product or service to quickly gain market share and attract customers. The idea is to enter
the market aggressively, enticing buyers with a competitive price, and then raise prices later
once a substantial customer base is established.
For example, Xiaomi, a smartphone brand, applies
penetration pricing for its budget-friendly models. If the
cost to produce a new smartphone is ₹8,000, they might
set the price lower to capture market share.
Production Cost: ₹8,000
Initial Low Price (Penetration): ₹7,000

§ Value-Based Pricing: In this approach, the price is set based on the perceived value of the
product or service to the customer. The company assesses how much customers are willing
to pay for the benefits and value they receive from the offering. This strategy often results in
premium pricing for products perceived as high value by customers.
For example, Tanishq, a brand under Titan Company,
practices value-based pricing for its gold and diamond
jewelry. For a necklace with intricate design and high-
quality diamonds, they set the price based on the
perceived value it holds for customers.
Perceived Value: High craftsmanship, premium
materials
Selling Price: ₹2,50,000 (based on perceived value)

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Now, let’s understand the pricing tactics.

Pricing tactics are specific strategies and methods that

companies use to set and adjust prices for their products or
services with the aim of achieving certain business objectives,
influencing consumer behavior, and maximizing revenue and
profitability. These tactics are designed to take advantage of
various psychological, market, and competitive factors to attract
customers, increase sales, and gain a competitive edge.

Pricing tactics that companies use to influence consumer behavior and improve sales:

§ Discounts: Offering temporary price reductions or

discounts on products is a popular pricing tactic. This
can be in the form of percentage discounts (e.g., 20% off),
cash discounts (e.g., ₹100 off), or volume discounts (e.g.,
buy 2, get 1 free). Discounts create a sense of urgency
and encourage customers to make a purchase, especially
during promotional periods or seasonal sales events.
For example, Myntra often offers percentage discounts
during its annual sales events like "End of Reason Sale"
Customers can enjoy discounts ranging from 50% to 80%
on a wide range of products.

§ Promotions: Companies often run special promotions,

such as ‘buy one, get one free’ (BOGO), ‘limited-time
offers’, or ‘flash sales’. These time-limited promotions
incentivize customers to take immediate action, creating
a sense of excitement and urgency around the purchase.
For example, BigBasket, an online grocery delivery
platform, runs promotions like "Buy One Get One Free"
on selected products to encourage customers to buy in
larger quantities.

§ Price Bundling: Bundling involves offering two or more

products or services together at a lower combined
price than if they were purchased separately. For
example, a fast food restaurant may offer a combo meal
that includes a burger, fries, and a drink at a lower price
than buying each item individually. Price bundling can
boost sales and encourage customers to try additional
products they might not have considered otherwise.
For example, Pizza Hut offers combo deals where
customers can get pizzas, sides, and drinks at a reduced
price compared to purchasing each item individually.

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§ Psychological Pricing: This tactic leverages the
psychology of pricing perception to influence consumer
behavior. Examples include setting prices just below
round numbers (e.g., ₹999 instead of ₹1000) or using
charm pricing (e.g., ₹19.99 instead of 2000). The aim is to
create the perception of a lower price and increase the
likelihood of a purchase.
For example, SpiceJet, an airline company, often prices
its domestic flights at amounts like ₹999 instead of
rounding up to ₹1000, using psychological pricing to make
the price seem more affordable.

§ Loss Leader Pricing: In this tactic, a company

deliberately sells a product below cost or at a very
low price to attract customers to their store or website.
The idea is that once customers are in, they may make
additional purchases of other products with higher profit
margins, offsetting the loss incurred from the initial low-
priced item.
For example, Reliance Digital, an electronics retailer,
might sell a popular smartphone model below cost during
a sale event to attract customers. While they might incur
a loss on that particular item, they expect customers to
buy other higher-margin electronics as well.
§ Price Matching: Price matching involves a company
offering to match or beat a competitor's lower price
for the same product. This tactic assures customers
that they are getting the best deal and prevents them
from switching to competitors with lower prices.
For example, Flipkart, an e-commerce platform, has a
policy of price matching. If a customer finds a lower price
for the same product on a competitor's website, Flipkart
will match that price, ensuring customers get the best
deal.

§ Dynamic Pricing: Online retailers and airlines often use

dynamic pricing, adjusting prices in real-time based on
factors like demand, inventory levels, and customer
browsing behavior. This tactic allows companies to
optimize revenue by setting prices at the highest level
customers are willing to pay at any given time.
For example, OYO Rooms uses dynamic pricing for hotel
rooms. Prices can change in real-time based on factors
like demand and availability.

Are you aware of the factors affecting price? Let’s learn about them.

5
The pricing of a product or service is influenced by a variety of factors, including

§ Cost of Production: The cost of producing the product or

delivering the service is a fundamental factor in
determining the price. Companies need to cover their
production expenses and include a margin for profit.
For example, Tata Steel, a major steel manufacturing
company in India, considers the cost of raw materials,
labor, energy, and operational expenses when
determining the prices of its steel products.

§ Customer Demand: The level of demand for the product

or service can affect pricing. When demand is high and
supply is limited, companies can often charge higher
prices. Conversely, in a situation of low demand,
companies may lower prices to stimulate interest.
For example, Samsung, a well-known electronics brand,
adjusts the prices of its smartphones and other gadgets
based on consumer demand, especially during new model
launches or festive seasons.

§ Perceived Value: The perceived value of the product or

service to the customer plays a crucial role in pricing. If
customers believe the product offers unique benefits or
solves their problems effectively, they may be willing to
pay a premium.
For example, Apple, renowned for its premium products,
prices its iPhones and other devices higher than
competitors, relying on the perceived value of its brand
and product quality.

§ Brand Image: The reputation and image of the brand can

influence pricing. Well-established and trusted brands
may command higher prices compared to lesser-known
brands.
For example, Titan Watches, positions itself as a trusted
and established brand, allowing them to price its watches
at a premium compared to lesser-known competitors.

6
§ Product Differentiation: The extent to which a product
or service is unique or differentiated from competitors
can impact pricing. Unique features or exclusive
offerings may justify higher prices.
For example, Amul, a prominent dairy brand,
differentiates its products through quality and variety,
enabling them to charge higher prices for premium dairy
items compared to generic brands.

§ Market Segmentation: Companies may adopt different

pricing strategies based on the different segments of
customers they target. For example, they might offer
premium versions for certain customer groups and
budget friendly options for others.
For example, Mahindra offers different pricing for its
range of SUVs, targeting different customer segments,
from entry-level to luxury.
§ External Factors: Economic conditions, inflation,
exchange rates, and government policies can all affect
pricing decisions.
For example, Tata Power, a major energy company in
India, adjusts electricity pricing based on external factors
like changes in fuel prices (coal, gas) and regulatory
policies to ensure a cost-effective energy supply to
customers.

§ Distribution Channels: The choice of distribution

channels can impact pricing. Products sold directly to
consumers might have different pricing compared to
those sold through wholesalers or retailers.
For example, Patanjali sets prices differently due to its
unique distribution model of selling products through its
own outlets.

§ Competition: The level of competition in the market can

significantly impact pricing decisions. In highly
competitive markets, companies may lower prices to
attract customers, while in less competitive markets,
they might have more flexibility to set higher prices.
For example, Flipkart adjusts its prices to stay
competitive with other e-commerce platforms like
Amazon India.

7
Picture Credits:
bigbasket.com | SpiceJet twitter | zeebusiness | Samsung | Apple | Titan | Mahindra

References:

§ 280 Group. (2023, January 30). What are Product Pricing Strategies? (Examples) | 280 Group.
https://280group.com/what-is-product-management/skills/product-pricing-strategies/
§ NI Business Info. (n.d.). Different types of pricing tactics | nibusinessinfo.co.uk.
https://www.nibusinessinfo.co.uk/content/different-types-pricing-tactics
§ What is Competitor price analysis? (2023, June 19). Sniffie. https://www.sniffie.io/pricing-vocabulary/competitor-
price-analysis/#:~:text=Competitor%20price%20analysis%20involves%20regularly,prices%20offered%20by%
20their%20competitors.
§ My, D. (2023). Factors affecting product pricing. en.hocmarketing.org. https://en.hocmarketing.org/factors-
affecting-product-pricing

8
 Marketing Management

LECTURE 5
4 Ps of Marketing: Place
Place:
This is where and how the product or service is purchased by the customers. It also entails where
the product is stored and manufactured.
For example, Amul, the renowned dairy cooperative, ensures its dairy products are available across
thousands of local grocery stores and supermarkets throughout India.
A distribution channel is the network of businesses or intermediaries through which a good or
service passes until it reaches the end consumer.

There are three main types of distribution channels:

1. Direct Distribution: This involves selling your product directly to customers without any
middlemen. For example, Mother Dairy sells its products like milk, butter, and cheese directly
to consumers through its own network of milk booths and retail outlets.
2. Indirect Distribution, Offline: In this approach, intermediaries like retailers or wholesalers help
get products to customers. For example, Maruti Suzuki sells cars through a network of
authorized dealerships and showrooms across various locations.
3. Indirect Distribution, Online: This type involves using online platforms to reach customers
indirectly. For example, Selling Levis's jeans through websites like Myntra, Flipkart, and
Amazon.

Omnichannel Distribution:
Mamaearth offers natural and organic skincare and baby care products, primarily operated through
an online model. It involves partnering with physical retail stores, supermarkets, and beauty shops
to make their products available offline as well.

Channel conflicts are disagreements, clashes, or disputes that can arise among different
entities or intermediaries involved in the process of distributing and selling products to customers.
It can take different forms:

Case 1: In 2014, Samsung, LG, Sony, and many other brands were angry with Flipkart’s Big Billion
Day Sale. They wanted to take legal action for predatory pricing.
The offline channel partners raised the issue that the e-retailers were providing high discounts to
attract more customers, which ultimately affected the offline sale of the product.
Many retailers and distributors in the offline market, distanced themselves from the brand and its
products.
This type of conflict, known as Multichannel Conflict, happens between various channels (like
online and physical stores).

2
How did Brands and Flipkart resolve the conflict?
§ Flipkart's founders had to issue an apology letter to calm them.
§ Samsung provided the right to sell 48 models of its brand exclusively through the offline
distribution channel.
§ Despite e-commerce growth, nearly 95% of business in India is generated by offline retailers.
§ Brands are worried about online stores offering very low prices, which could hurt their
business. Some brands were thinking about not selling their stuff online anymore because of
this.

Case 2: Croma and Vijay Sales, both wanted to sell a new ‘Canon Camera’. They competed by
offering special deals and lower prices to get more customers, making their fight to sell the camera
a big competition.

This type of conflict, known as Horizontal Conflict, happens between channels at the same level.

How did Croma and Vijay Sales resolve the conflict?

§ Canon mediated the conversation to guide the discussion, ensure fairness, and help find
common ground.
§ Having clear pricing rules can stop arguments between Croma and Vijay Sales by giving
everyone a fair way to set prices and preventing disagreements.

Case 3: In 2017, Nike declined to sell and distribute apparel and footwear on Amazon.
Nike and Amazon had a disagreement because many third-party sellers were selling fake Nike
products on Amazon.
This made Nike upset and they decided to stop selling their products directly on Amazon because
they couldn't control the quality and authenticity of what was being sold.
This type of conflict, known as Vertical Conflict, happens between different levels in the
distribution chain, like manufacturers and retailers.

How did Nike and Amazon resolve the conflict?

§ Nike acknowledged that third-party sellers are cannibalizing its direct revenues and is
counting on recapturing lost sales by selling products directly on Amazon.
§ Nike negotiated its differences with Amazon and found a way to sell through the platform
without the threat of third-party sellers.
§ Nike bridged the gap between its online and offline partners to leverage their combined selling
strength.

3
E-commerce
E-commerce is the buying and selling of goods and services over the Internet. It involves
conducting business transactions electronically, where customers can browse products, place
orders, and make payments online. For example, Flipkart, Myntra, Snapdeal, Nykaa, Bigbasket and
many more.

E-commerce is further divided into two categories:

§ Marketplace Model: A platform where multiple sellers offer products or services to customers.
For example, Amazon, Flipkart, and many more.
§ Inventory-led Model: A business approach where a company maintains ownership and control
over its inventory. For example, Apple, Croma, Reliance, Lenskart, and many more.

E-commerce challenges are as follows:

§ Customer Acquisition
§ Changing Consumer Behavior
§ Product Return and Refund Policies

Customer Acquisition Cost (CAC) is how much a company must spend to get a new customer. For
example, Flipkart spends ₹ 400 on acquiring a new customer on average.
Customer Acquisition Cost = Total Marketing Spend (Sales + Marketing) / No. of Customers
Acquired

Question:
Lenskart spent ₹500,000 on marketing to acquire customers. With the assistance of a sales team
consisting of four executives earning ₹25,000 each, they reached out to 4,000 leads in a month. If
15% of these leads were successfully converted, what is the Customer Acquisition Cost?

Solution:
Marketing Cost: ₹500,000
Sales Team Cost: 4 x ₹25,000 = ₹100,000
Total Cost: ₹500,000 (Marketing) + ₹100,000 (Sales Team) = ₹600,000

Customer Acquisition Cost (CAC) = Total Cost / Number of Customers Acquired

4
Conversion rate = 15%
The number of customers acquired = 15% of 4,000 leads
= 0.15 x 4,000 = 600 customers

CAC = ₹600,000 / 600 customers = ₹1,000 per customer

So, the Customer Acquisition Cost is ₹1,000 per customer

Customer Lifetime Value is the net profit contribution of the customer to the firm over time.

Customer Lifetime Value = (Customer revenue per year x Duration of the relationship in years) –
Customer Acquisition Cost

Question:
Customer Acquisition Cost: ₹500
Revenue per order: ₹45
Transactions per month: 1 (since the customer visits once per month)
Average lifetime on Swiggy Platform: 24 months (2 years)

What is Customer Lifetime Value?

After how long does the customer become profitable?

Solution:
Customer Lifetime Value = (₹45×1×24) − ₹500 = ₹580

This means that from the 12th month onwards, the customer would become profitable for the
company.

5
Changing Consumer Behavior

Online shopping is not highly popular in India, as only about 40% of the population chooses to shop
online. 60% of people still prefer traditional in-person shopping methods.

Online sales constituted just 3.7% of total sales four years ago, but disappointingly, they have only
risen to 8.6% now, and projections suggest only a slight increase to approximately 10% in the
future.

6
Consumer electronics made up the highest share of 26 percent of e-commerce retail sales across
India in 2022. This was followed by apparel and footwear, food and grocery, jewelry and personal
goods with a share of 17 percent.

Product Return and Refund Policies

At least 30% of all products ordered online are returned as compared to 8.89% in physical stores.

In 2021, online purchase returns in almost all major product categories, ranging from 8% to 88%.
Clothing retailers experience e-commerce returns the most, 88% of consumers had decided to
return their order.

For example, Myntra's product return rate is 12-14% of all orders. Due to this Myntra faces huge
losses every year.

Tactics to reduce return:

§ If the rate of returns exceeds the average, Myntra reserves the right to levy additional charges
for order deliveries.

7
§ In cases where the return rate is high, an extra fee of ₹100 will be applicable, while for
instances categorized as having a 'very high return rate, customers will be required to pay a
convenience fee of ₹300 per order.
§ Myntra provides comprehensive product details to ensure customers make informed choices
and reduce surprises upon delivery.
§ High quality images from various angles provide an accurate representation of products,
reducing surprises upon delivery.
§ Authentic feedback from other customers helps guide purchasing decisions and builds trust in
product quality.

References:

§ Lutkevich, B., Shiao, D., & Moore, J. (2022). distribution channel. IT Channel.
https://www.techtarget.com/searchitchannel/definition/distribution-channel
§ Nel, L. (2023). Distribution Channels: Definition, Types, And Examples. MarketSplash.
https://marketsplash.com/distribution-channels/
§ Indeed Editorial Team. (2023a). Types of Distribution Strategies (With Definition, Tips and Benefits). Indeed.com.
https://www.indeed.com/career-advice/career-development/distribution-strategies
§ Donlan, K. (2023, June 8). What is E-Commerce Marketing? Strategies & Tips | Emarsys. Emarsys.
https://emarsys.com/learn/blog/what-is-ecommerce-marketing/
§ Fathima, F. (2022). Top 10 Ecommerce Challenges For Your Business. Logistics Brew. https://stockarea.io/blogs/10-
major-challenges-of-ecommerce/

8
 Marketing Management

LECTURE 6
4P’s of Marketing: Promotion
Promotion
Promotion refers to the act of promoting or advertising
a product, service, idea, event, or organisation to
increase its visibility, attract potential customers or
users, and ultimately achieve specific objectives such
as sales, brand recognition, or audience engagement.
Promotions are essential marketing strategies that aim
to create awareness, generate interest, and encourage
action from the target audience.

Elements of Promotion
Promotion can be categorised into various types, each with specific objectives and strategies. The
main types of advertising include:
§ Advertising: Paid promotion through
various media channels like television,
radio, newspapers, magazines, billboards,
online ads, and social media platforms to
reach a broad audience and create brand
awareness.
§ Sales Promotion: Short-term tactics
designed to stimulate immediate sales,
often involving discounts, coupons, special
offers, contests, giveaways, or limited-time
deals to incentivise customers to purchase.
§ Public Relations (PR): Managing the public
image of a company or individual through
media coverage, press releases, interviews,
events, and other communication efforts to
build a positive reputation and maintain
goodwill with the public.
§ Personal Selling: Direct communication
between a salesperson and potential
customers, often in person or through
phone calls, where the salesperson tailors
their pitch to persuade the customer to buy
a product or service.
§ Direct Marketing: Reaching out to potential
customers directly, using direct mail, email
marketing, telemarketing, or SMS
marketing, to deliver personalised
messages and offers.
§ Content Marketing: Creating and
distributing valuable and relevant content
(such as blog posts, articles, videos, or
infographics) to attract and engage a
target audience, ultimately leading them to
the brand or product.
§ Social Media Marketing: Leveraging social
media platforms to build a brand presence,
engage with customers, and promote
products or services.
§ Influencer Marketing: Collaborating with
influencers (individuals with a substantial
following on social media) to promote
products or services to their audience,
leveraging their credibility and reach.
§ Sponsorship: Associating a brand with a
specific event, organisation, or individual to
gain exposure and create positive
associations with the target audience.
§ Trade Shows and Events: Participating in
industry-specific trade shows, exhibitions,
or organising promotional events to
showcase products, connect with potential
customers, and build business
relationships.
§ Referral Programs: Encouraging existing
customers to refer new customers by
offering rewards or incentives for
successful referrals.

2
The selection of promotion types depends on the target audience, product or service being
promoted, budget, and overall marketing objectives.

Promotional Campaign
Step 1: Campaign Name: Choose a catchy and relevant name for your promotional campaign. This
name should reflect the essence of the movement and make it easy for your audience to remember.
Example: ‘Summer Adventure Sweepstakes

Step 2: Campaign Objective: Define the specific goals you want to achieve with your campaign.
Are you looking to increase brand awareness, boost sales, drive website traffic, or engage with your
audience on social media? Your objective will guide the rest of your campaign decisions.
Example: Increase online engagement and attract new customers through an exciting summer-
themed giveaway.

Step 3: Target Audience: Identify your ideal customers for this campaign. Understand their
demographics, interests, behaviours, and pain points. This information will help you tailor your
campaign to resonate with your audience.
Example: Young adults aged 18-30 who enjoy outdoor activities and are active on social media
platforms.

Step 4: Promotional Elements: Determine the elements that will make up your campaign. This
could include contests, discounts, freebies, content creation, partnerships, etc. These elements
should align with your campaign objective and audience.
Example: ‘Summer Adventure Sweepstakes’ will include a photo contest where participants submit
their outdoor adventure photos, a coupon code for 15% off summer gear, and a free downloadable
guide to planning the perfect summer getaway.

Step 5: Choice of Media: Select the channels and platforms through which you'll promote your
campaign. Depending on your target audience, this could involve social media (Facebook,
Instagram, Twitter), email marketing, influencer partnerships, your website, or even traditional
media like print or radio.
Example: Promotion will be primarily carried out on Instagram and Facebook, where our target
audience is most active. We'll also send out promotional emails to our existing customer base."

Step 6: Evaluation and Results: Define how you'll measure the success of your campaign. Set key
performance indicators (KPIs) such as website traffic increase, social media engagement,
conversion rates, etc. After the campaign ends, analyze the results against these KPIs.
Example: We will track the number of contest submissions, coupon code usage, website traffic during
the campaign period, and the increase in our social media follower count. After the campaign, we'll
evaluate these metrics to gauge the campaign's success.

3
References:

§ The team, M. S. (2014). Promotional campaign - meaning & definition. MBA Skool.
https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/11925-promotional-
campaign.html
§ Ayling, J. (2023). 20+ Successful Marketing Campaign Examples That’ll Inspire You. Smart Blogger.
https://smartblogger.com/marketing-
campaign/#:~:text=Coke%20started%20its%20Share%20a,their%20friends%20or%20loved%20ones.

4
Marketing Management

LECTURE 7
7 Ps of Marketing
Welcome to the course on Marketing Management

The 7Ps of marketing are

§ Product
§ Pricing
§ Place
§ Promotion
§ Physical evidence
§ People
§ Processes

Since the 1960s, the 4Ps of marketing strategy have been applied to support the mix concept. The
4Ps are a set of four letters that stand for the following:
§ Product
§ Price
§ Place
§ Promotion

The marketing mix process has changed in response to changes in the company and consumer
markets. Marketing professor Jerome McCarthy's concept was extended in 1981 by marketing
experts Bernard H. Booms and Mary J. Bitner into the 7Ps of the marketing mix we know today.

The original 4Ps are still in place, but Booms and Bitner added three more:
§ People
§ Process
§ Physical evidence

We already discussed the first 4Ps of marketing. Now, let’s understand the next 3Ps.

People refer to individuals who are directly involved in providing services or interacting with
customers within a business. They significantly influence customer experiences and perceptions.

2
For example,
Taj Hotels is a famous name in the hotel business. People love their fancy rooms and their
hospitality.

Personalized Greetings:
When you arrive at any Taj hotel, the staff welcomes you with a big smile.
It makes you feel nice and comfortable.

Attentive Engagement:
All the people who work there, like those at the front desk or in the
housekeeping, pay close attention to what you need. They want to make
sure your stay is just the way you like it.

Proactive Assistance:
The staff doesn't just do their regular jobs, they do extra stuff too. If you
want to know where to go around the city, or if you're celebrating something
special, they're there to help.

Genuine Interaction:
One of the hallmarks of Taj Hotels is the genuine interaction between staff
and guests. The staff doesn't just act nice, they really care. They have friendly
chats with guests and make them feel like they're talking to friends.

Long-lasting Impressions:
When it's time to leave, the staff makes sure you remember the nice things
about your stay. They bid you a warm goodbye, and this makes people want
to return again.

Selection Criteria in Taj Hotel:

The selection process is designed to carefully evaluate candidates' skills, experience, cultural fit,
and passion for hospitality, ensuring that those who make the cut truly embody the values and
excellence that Taj is renowned for.
§ Skills and Experience: Relevant skills, qualifications, and experience in the hospitality industry
are often key factors.
§ Language Proficiency: Depending on the location, proficiency in languages commonly spoken
by guests (such as English) can be a requirement.
§ Cultural Fit: Being aligned with the hotel's values, culture, and customer-centric approach is
often considered.
§ Professional Appearance: A polished and professional appearance is important, as staff often
interact with guests.
§ Passion for Hospitality: Demonstrating a genuine passion for providing excellent hospitality
experiences can set candidates apart.

3
How do their staff’s friendly chats with guests and helpful gestures make Taj Hotels look really
good to people?

Let’s now talk about the next P.

The process is the set of organized steps and procedures that a company follows to create,
deliver, and support its products or services.

For example, Zomato Order process

Customer browses the options:

Customers look through the available food choices on Zomato.

Adding the food to the delivery cart:

They select the food they want and put it in their online cart.

Picking the order:

Customers confirm their choices and proceed to place the order.

Flexible payment method:

They can pay using various methods that suit them.

Store owner receives payment:

The restaurant owner gets the payment from the order.

Restaurant prepares the food:

The restaurant starts preparing the chosen dishes.

Third-party/Inhouse delivery service:

Zomato arranges delivery either through their service or a third party.

Delivery received by the customer:

The customer gets their order delivered to them.

How does Zomato make ordering food easy and exciting for its users?

The last P is Physical Evidence.

4
Physical evidence means the real things that customers can see, touch, and experience when they
interact with a company's products or services. It includes how things look, how they're packaged,
and the feeling customers get when they're in a store or using something.

For example, Asian Paints

Asian Paints doesn't just sell paint, it creates a special experience when you visit their shops.
Showroom Ambiance: When you enter Asian Paints' shops, it feels inviting and nice. The way
the place is set up with lights and decorations makes you want to explore.

Color Visualizers: The Asian Paints showrooms have special tools that let you try out different
colors on a wall without actually painting it. It's like magic, you can see what colors would look
best in your home.

5
Demo Walls: The showrooms also have big walls with different colors and textures. You can touch
them and see how they really look, which helps you decide what you like.

Expert Assistance: The people working there know a lot about paint. They can help you choose
the right colors and give you advice about what's popular and stylish.

6
Digital Integration: You can also use your phone to learn more about the paint. There are special
codes you can scan to get more information about colors and products.

What special things do Asian Paints do in its shops to help you decide on the best paint colors for
your home?

Picture Credits:
https://www.quora.com/Why-are-food-delivery-businesses-not-found-in-tier-3-cities
https://www.asianpaints.com/store-locator/signature-store.html
https://www.asianpaints.com/store-locator/colour-ideas-store.html
https://www.asianpaints.com/store-locator/signature-store.html

References:

§ Assemblo. (2023). What are the 7 Ps of marketing? Assemblo. https://assemblo.com/guides/what-are-the-7-ps-of-

marketing/
§ Barrington, R. (2020, October 8). The 7Ps of The Marketing Mix | Oxford College Of Marketing. Oxford College of
Marketing Blog. https://blog.oxfordcollegeofmarketing.com/2020/10/08/understanding-the-7ps-of-the-
marketing-mix/

7
Marketing Management

LECTURE 9
B2B v/s B2C
B2B Market
B2B market refers to business-to-business transactions where goods, services, or information are
exchanged between companies, not consumers. It involves larger quantities, and complex
negotiations and addresses specific business needs to enhance efficiency and competitiveness.

In the B2B arena, companies cater to the unique needs of other businesses. It is like a backstage
pass to the business world's most exclusive club.

Think about tech giants like Intel. It does not sell microprocessors directly to you and me; it
supplies manufacturers who craft sleek laptops that we drool over. It is a symphony of
collaboration and expertise, where one business's offering becomes another's essential ingredient.

For example,

§ Tata Consultancy Services (TCS): TCS is one of India's largest IT services

and consulting companies. It provides a wide range of IT services, including
software development, consulting, and business solutions, to clients
worldwide. TCS primarily operates in the B2B space, offering services to
other businesses and organizations looking to enhance their technological
capabilities.

§ Aditya Birla Chemicals: It supplies chemicals and solutions to industries like

textiles, automotive, agriculture, and construction, serving as a B2B provider
for raw materials and additives in manufacturing processes.

Components of B2B Marketing:

§ Purchase Volume: It often involves larger quantities and higher transaction values due to bulk
buying. For example, Reliance Industries provides petrochemicals in bulk quantities to meet
the production needs of businesses in the plastics, chemicals, and industrial sectors.

§ Decision-making: It involves complex and long decision-making processes with multiple

stakeholders from various departments. For example, Reliance Industries involves multiple
stakeholders, such as procurement managers, production managers, and executives from
client companies.

§ Relationship: Building long-term relationships based on trust and reliability is crucial in B2B
interactions. Reliance invests in personalized account management and collaborative
initiatives to foster client trust and loyalty.

§ Marketing Channels: It utilizes channels such as trade shows, industry events, content
marketing, professional networks, and targeted industry advertising to reach and engage with
businesses effectively. For example, Reliance Industries uses direct sales, industry events,
trade publications, and online platforms to reach B2B customers.

2
§ Product Customization: Its offerings are often tailored to each business client's unique
requirements, including custom products, pricing structures, and service-level agreements. For
example, Reliance offers tailored products to meet the unique requirements of different
businesses in the petrochemical sector.

B2C Market
The B2C market refers to transactions between businesses and individual consumers. Consumers
buy products for personal use. It involves smaller quantities, simpler processes, and targets
individual preferences. B2C marketing aims to build loyalty and create positive experiences for
consumers.

Think of global giants like Apple. It creates captivating advertisements, design sleek stores, and
craft an entire brand experience to woo us into buying their iPhones, iPads, and more. It is a world of
emotion, personal connection, and understanding customers' needs.

In the B2C market, Hindustan Unilever Limited (HUL) directly sells its products to individual
consumers. This includes popular brands like Dove, Lux, and Surf Excel, readily available in
supermarkets, online stores, and local shops across India. HUL focuses on understanding consumer
preferences and marketing its products to meet their needs, making it a classic B2C player in the
Fast-moving consumer goods sector.

Take another example:

§ Think about Nike, the sportswear powerhouse. It doesn’t just sell sneakers; it
sells the dream of being faster, stronger, and cooler. With eye-catching
advertisements and iconic swoosh logos, they bond with individual consumers,
making every pair of shoes a statement of personal achievement and style.

§ Amazon: On the flip side, we have Amazon, the digital marketplace that
seemingly has everything under the sun. From books to blenders, they cater to
the cravings of individual shoppers. Amazon's strength lies in its ability to
understand consumer behaviors, predict what we might want next, and deliver
it to our doorsteps in hours. It's like a digital genie granting your shopping
wishes!

3
Difference between B2B and B2B market

Aspect B2B Market B2C Market

Other businesses, organizations,

Target Audience Individual consumers
institutions

Purchase Volume Larger purchase volumes Smaller individual purchases

Usually made by an individual

Decision-Making Involves multiple decision-makers
or a family

Relatively straightforward
Complexity of Sales More complex sales process
sales process

Often builds long-term Generally transactional

Relationship
relationships relationships

Emphasizes efficiency, ROI, Focuses on emotions,

Marketing Approach
and value desires, and needs

Trade shows, industry events, Advertising, social media,

Marketing Channels
networking e-commerce

Product/Service Often tailored to specific

Customization may be limited
Customization business needs

Sales Cycle Longer sales cycle Shorter sales cycle

Negotiated contracts, bulk

Pricing Fixed or tiered pricing
pricing

Customer Support Personalized, dedicated support Standardized support

Focused on trust, reliability, and Emotional connections and

Brand Loyalty
expertise brand loyalty

Immediate payments,
Payment Terms Invoicing, net payment terms
credit cards

4
Adopting Both B2B and B2C Markets:
A Common Business Strategy

Can a company operate in both B2B and B2C markets?

A company can simultaneously operate in the Business-to-Business (B2B) and Business-to-

Consumer (B2C) markets. Many companies adopt a hybrid approach and serve both types of markets
to diversify their revenue streams and reach a broader customer base. This strategy allows
companies to leverage their products, services, and expertise to cater to market segments.

For instance,
1. While Amazon is known for its massive B2C e-commerce platform, it also offers Amazon Web
Services (AWS), a cloud computing platform that serves businesses and developers (B2B).
B2B Presence: B2B Presence:
§ AWS Cloud Services § AWS Cloud Services
§ Scalable Solutions § Scalable Solutions
§ Global Data Centers § Global Data Centers
§ Diverse Clients § Diverse Clients
§ Innovation Innovation

2. Coca-Cola sells beverages directly to consumers (B2C) through various distribution channels but
also supplies its products to restaurants, cafes, and other businesses (B2B).

B2B Presence: B2B Presence:

§ B2B Presence § B2C Presence
§ Bulk Supply § Vast Product Range
§ Foodservice Partnerships § Global marketing and event sponsorships
§ Efficient Distribution § Retail Presence
§ Customizes product offerings and § Engagement through social media,
supply chain solutions promotions, and interactive campaigns
§ Account management and customer
support to B2B clients

5
3. Samsung manufactures consumer electronics and home appliances for individual consumers
(B2C), and it also provides components, displays, and other technology solutions to various industries
(B2B)

B2B Presence:
B2B Presence:
§ B2B Presence § B2C Presence

§ Supplies electronic components to § Wide range of Consumer Electronics

industries § Innovation
§ Tailored technology solutions, § Home Appliances
including software development and
§ Accessible through dealers, stores, and
security systems
online markets.
§ Industrial Displays
§ Invests in marketing to build brand
loyalty

SaaS Companies
Software as a Service (SaaS) is a cloud computing model where software applications are hosted and
delivered over the internet on a subscription basis. This approach eliminates the need for users to
install and maintain software on their own devices. SaaS companies provide various applications and
services to businesses and individuals, making accessing, using, and scaling software solutions
easier.
For example, Google Workspace provides cloud-based productivity tools such as Google Docs,
Sheets, and Slides. Users can access these applications through web browsers on any device with an
internet connection, allowing seamless collaboration and work from various locations.

SaaS companies offer software on a subscription basis, generating revenue through recurring fees
while prioritising customer retention and scalability for sustainable growth.

Characteristics of SaaS Companies:

1. Subscription-Centric Revenue Model:

SaaS companies primarily rely on subscription-based revenue models, allowing users to access
their software through recurring payments rather than large one-time purchases. This approach
provides financial predictability and avoids substantial upfront expenses for customers.

For example, Zoho offers a suite of SaaS applications with a subscription-based pricing model,
including CRM, project management, and office tools. Users pay regular fees for access to these
cloud-based services.

2. Cloud-Based Accessibility:
SaaS companies host their applications in the cloud, enabling users to access the software
from any Internet-connected device equipped with a web browser. This cloud-based
accessibility promotes remote work, collaboration, and user flexibility, aligning with modern
work trends.

6
 For example, Freshworks provides cloud-based customer engagement software accessible
from any internet-connected device. Their suite includes customer support, marketing
automation, and sales solutions.

3. Managed Updates and Maintenance:

SaaS providers take responsibility for ongoing software maintenance, including tasks such as
bug fixes, security enhancements, and the introduction of new features. This ensures that users
consistently access the latest software version without manual updates or maintenance
hassles.

For example, Microsoft offers SaaS products such as Microsoft 365 and Azure, which take care
of software updates, security patches, and improvements. Indian businesses using these
services always have access to the latest features and security enhancements.

4. Scalability to User Needs:

SaaS solutions are inherently scalable, allowing users to adapt their subscription plans to
accommodate changing requirements effortlessly. This may involve adding or removing user
licenses, or upgrading to higher-tier plans. Scalability empowers businesses to align their
software usage with evolving operational demands, minimizing resource waste.

For example, Salesforce, a leading CRM provider, allows businesses to scale their subscription
plans up or down to match their changing user and feature requirements. This scalability
ensures businesses can adapt their CRM usage as they grow.

Have you ever felt 'stuck' with a particular software or online service, unable to switch to an
alternative even if you wanted to?

Why do you think this happens, and what might be the consequences of being locked into a
specific software or platform?

This is known as SaaS lock-in.

Some of the SaaS lock-ins are:

• Data lock-in
• Integration Lock-in
• User Training and Familiarity Lock-In

For example, Zoho offers customer relationship management (CRM) software. When a company
integrates Zoho CRM into its processes, it becomes accustomed to its features data. Switching to a
different CRM provider may disrupt workflows and require retraining, creating a lock-in.

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SaaS lock-in:
1. Data Lock-In:
SaaS companies often store customers' data in a proprietary format or structure on their
servers. This can make it challenging for customers to extract and migrate their data to another
service, especially if the data is extensive or complex.

For example, Zoho CRM stores your critical customer data, sales records, and other valuable
information within its platform. Over time, as business relies more on Zoho CRM to manage and
store this data, it becomes challenging to migrate to a different CRM system. Transferring data
from Zoho CRM may involve data format differences and potential data loss. The fear of losing
or compromising valuable customer data can lead to data lock-in, making it difficult for
businesses to switch to another CRM solution.

2. Integration Lock-In:
Many businesses customize and integrate SaaS products into their workflows. This creates a
dependency on the specific SaaS solution. Switching to a different provider might disrupt these
integrations, requiring significant time and resources to rebuild or reconfigure.

For example, Zoho CRM offers integration capabilities with various third-party applications and
services such as email marketing tools, analytics software, and accounting systems. If anyone
has extensively customized their business processes around these Zoho CRM integrations,
switching to a different CRM might disrupt these connections. Integration lock-in can occur
because reconfiguring integrations and ensuring they work smoothly with a new CRM can be
complex and time-consuming.

3. User Training and Familiarity Lock-In:

Employees become accustomed to using specific SaaS tools. They become proficient in using
these tools, and switching to a new software solution often entails a learning curve. This
familiarity can make convincing users to adopt a different platform difficult.

For example, employees become proficient in using Zoho CRM and become familiar with its user
interface, features, and workflows. Shifting to a different CRM system would require retraining
employees and potentially dealing with resistance to change. The time and effort invested in
training and the adjustment period can act as barriers to switching away from Zoho CRM,
creating a lock-in related to user training and familiarity.

References:
§ Heaslip, E. (2022). B2B vs B2C: What's the Difference? https://www.uschamber.com/co/.
https://www.uschamber.com/co/start/strategy/b2b-vs-
b2c#:~:text=B2B%20and%20B2C%20are%20two,individual%20as%20the%20end%20customer.
§ Author, G. (2023, April 20). B2B vs B2C Marketing: 5 Differences Every Marketer Needs to Know. WordStream.
https://www.wordstream.com/blog/ws/2019/05/20/b2b-vs-b2c
§ Coleman, B. (2022, October 4). What is a SaaS Company? [+ 36 Companies & Products to Watch in 2022].
hubspot.com. https://blog.hubspot.com/service/top-saas-companies

8
Marketing Management

LECTURE 10
Segmentation
Market segmentation is a technique to divide your customer base into subgroups based on
shared characteristics, such as age, income, hobbies and location. It aims to tailor marketing efforts
to the company’s ideal customer profile (ICP), i.e. customers most likely to buy your product or
service.

For example, customers at an organic food shop typically fall in the 25-44 age group, earn ₹10 lakh
or more annually, own homes without children, and are interested in healthy eating, sustainability,
and sports.

Rather than broad marketing, it will be wiser to target this specific group. Therefore, an Instagram
campaign promoting sustainable products is ideal for our hypothetical organic shop.

Importance of Market Segmentation

Segmentation techniques are major profit drivers because they help you define your target market
and qualify customers as product or service users. Companies can focus on sending the right
message to customers through the right channel at the right time.

Market segmentation also helps you to:

§ Build products that solve customer pain points
§ Streamline sales processes
§ Improve return on investment (ROI) from targeted marketing expenditures.
§ Increase customer retention

Demographic segmentation: The Who

It is a marketing approach that categorizes customers based on factors like age, gender, income,
and more to tailor products and marketing strategies better. For instance, the ‘Fastrack’ brand
targets the youth with trendy and affordable products, while the ‘Titan Raga’ collection targets
women seeking elegant and premium watches.

The Demographic segmentation are based on objective information, such as:

§ Age:
FirstCry clothes are specifically designed and marketed for
children up to age 10

§ Gender:
Beardo offers various products such as beard oil and peel-off
mask for only men.

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 § Religion:
During festivals like Eid or Diwali, Haldiram’s promotes
specific sweets and snacks tailored to the respective religious
celebrations.

§ Income level:
Tata Nano was designed as an affordable car for lower-income
families, making car ownership accessible to budget-
conscious individuals.

§ Size of household:
LG offers refrigerators in various sizes to accommodate small
and large families.

§ Occupation:
LinkedIn Premium offers advanced networking and job search
features for professionals aiming to boost their careers.

§ Education:
WhiteHat Jr targets children aged 6 to 18 in primary and
secondary education levels for coding education.

§ Marital status:
Shaadi.com connects individuals seeking life partners.

Psychographic segmentation: The Why

Psychographic segmentation groups people based on similar personal values, political opinions,
aspirations and psychological characteristics.
§ Personal Values:
Psychographic segmentation considers people's values, beliefs
and principles that guide their behavior and decision-making.
Companies use this to understand what matters most to their
customers.

For example, Amul connects with people who value locally

sourced and cooperative dairy practices. They emphasize
traditional Indian values in their marketing, appealing to
consumers who share these beliefs.

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 § Political Opinions:
This aspect of psychographic segmentation looks at individuals'
political beliefs and affiliations.

For example, NDTV caters to viewers with various political

opinions by providing news and analysis that align with diverse
perspectives, attracting a broad audience with different political
affiliations.

§ Aspirations:
Psychographic segmentation also considers people's aspirations
and life goals.

For example, Titan offers watches for various aspirations. Their

premium collections target those aspiring for luxury, while their
youth-oriented watches appeal to individuals aspiring for trendy
and affordable accessories.

§ Psychological Character:
Psychological characteristics delve into the individual's
personality traits, emotions, and attitudes.

For example, Cult.fit focuses on users motivated by health and

fitness goals. Their app and services cater to people seeking
physical well-being, self-improvement, and a positive mindset.

For example, companies can group customers according to their:

§ Personality: Royal Enfield targets individuals with bold and

adventurous personality, offering rugged and classic
motorcycles for those who value authenticity

§ Hobbies: Decathlon caters to consumers with active and

sports-oriented hobbies by providing a wide range of
sports equipment and apparel.

§ Social status: Taj Hotels appeals to consumers with higher

social status, offering opulent and exclusive hotel
experiences for affluent travelers.

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 § Opinions: The Times of India provides diverse editorial
content to accommodate readers with varying opinions and
interests

§ Life goals: Bajaj Allianz Life Insurance offers insurance

and investment products tailored to consumers' life goals,
prioritizing financial security and milestone achievements.

§ Values and beliefs: Patanjali Ayurved aligns with

consumers valuing natural and traditional healthcare,
offering Ayurvedic products for holistic wellness.

§ Lifestyle: Fabindia targets consumers preferring

sustainable and handcrafted lifestyle products, catering to
those embracing an eco-friendly and culturally rich
lifestyle.

Geographic segmentation: The Where

Geographic segmentation groups customers based on where they live and shop. People who live in
the same city, state or zip code typically have similar needs, mindsets and cultural preferences.
The real advantage of geographic segmentation is it provides an insight into what your customers’
location says about several geo-specific variables, such as their:

§ Climate: Voltas Air Conditioners offers tailored air

conditioning solutions for varying climates across India,
meeting specific cooling needs.

§ Culture: Starbucks offers special Lunar New Year-themed

products in Asian markets and unique holiday drinks in
various countries.

§ Language: Hindustan Unilever Limited (HUL) adapts

packaging and advertising to multiple Indian languages,
ensuring effective communication with consumers in
different regions.

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 § Population density (urban vs rural): Mahindra Tractors
focuses on rural areas, tailoring their approach to reach and
serve farmers effectively.

For example,
McDonald's, one of the world's largest fast food chains, uses geographic segmentation to adapt its
menu and marketing strategies to various regions and countries:
§ Regional Menu Items: McDonald's offers region-specific menu items to cater to local tastes
and preferences.
For example, in India, they have various vegetarian options like the ‘McAloo Tikki’ burger to
align with cultural dietary preferences.

§ Breakfast Timings: The availability of breakfast items at McDonald's varies by region. In some
countries, breakfast is served all day, while in others, it is only available during specific hours,
reflecting local preferences for certain breakfast foods.

§ Promotions and Seasonal Items: McDonald's introduces promotions and limited-time menu
items often tied to local events, festivals, or seasons.
For instance, they may offer a ‘Sakura Teritama’ burger during the cherry blossom season in
Japan.

Behavioral segmentation: The How

Behavioral segmentation is the process of grouping customers based on common behaviors they
exhibit when they interact with your brand.

For this type of segmentation, you can group your audience based on their:

§ Spending and Purchasing habits:

Flipkart personalizes product recommendations based on
users' past purchases, search queries, and browsing habits.

§ Browsing habits:
Instagram uses your interests and behavior, such as your
engagement with fitness accounts, to show you ads for
workout equipment or activewear brands that align with
your browsing habits and preferences.

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 § Interactions with your brand:
Zomato pays attention to how people rate and review
restaurants, so they can suggest places that match what
users like.

§ Loyalty to your brand:

HDFC Bank rewards customers who have been with them
for a long time with special perks, so they stay loyal to the
bank.

For example,
Spotify, a music streaming service, effectively employs behavioral segmentation to understand
users' music preferences and habits, enhancing their overall experience on the platform:
• Listening History: Spotify tracks the songs, albums, and playlists users listen to regularly.
This data creates personalized playlists like ‘Discover Weekly’ and ‘Release Radar’ featuring
music aligned with users' listening habits.

• Playlist Creation: Users who create playlists on Spotify are segmented based on the genres,
artists, and moods they include in their playlists. Spotify then suggests new music and
playlists aligning with users' content.

• Repeat Listening: Spotify identifies songs that users listen to repeatedly. This behavior
signals a strong preference, and the platform may suggest similar tracks or artists.

• Device Usage: Spotify segments users based on the devices they use to access the service,
such as smartphones, tablets, smart speakers, or desktop computers. This information helps
optimize the user interface for each device.

• Engagement Levels: Users frequently engage with Spotify's social features, like sharing
songs and playlists, which are segmented differently. Spotify may highlight social
interactions or suggest friends connect based on these behaviors.

• Subscription Status: Spotify offers both free and premium subscription options. Users are
segmented based on their subscription status, and marketing messages may vary to
encourage free users to upgrade to premium.

References:
§ Contributor, T. (2023). market segmentation. Customer Experience.
https://www.techtarget.com/searchcustomerexperience/definition/market-segmentation - :~:text=Market
segmentation is a marketing,targeted products, offers and experiences.
§ Tarver, E. (2023). Market segmentation: definition, example, types, benefits. Investopedia.
https://www.investopedia.com/terms/m/marketsegmentation.asp
§ Market segmentation: Everything to know in 2022. (2023, June 19). Qualtrics.
https://www.qualtrics.com/au/experience-management/brand/what-is-market-segmentation/

7
 Marketing Management

LECTURE 11
Targeting and Positioning
Myntra sells a wide range of fashion and lifestyle products segmented
for men, women, and kids. Their diverse product offerings include clothing,
footwear, accessories, beauty products, and more.
Myntra runs marketing campaigns during festivals, holidays, and special
occasions such as Valentine's Day, Diwali, summer holidays, and
Christmas holidays.

Do you find any difference in these advertisements?

The advertisements are targeted at different categories of customers such as children,
women, and men.

This is an example of Targeting.

Targeting means aiming your messages and marketing at specific groups of people who are
most likely to be interested in what you're offering. This way, you don't waste time and resources on
people who might not be interested.

Let’s understand the types of Targeting.

1. Mass marketing
§ Colgate-Palmolive manufactures and markets various oral care
products, including toothpaste, toothbrushes, and mouthwashes.

§ Colgate employs mass marketing strategies through extensive

advertising campaigns on television, in print media, and on digital
platforms.

§ Colgate aims to maintain a strong presence in the oral care market and
attract consumers from various age groups and backgrounds, making
their products a common choice for many Indian households.

Colgate is an example of mass marketing. It is a marketing strategy that involves promoting a

product or service to a broad and undifferentiated audience with a single marketing message.
The aim is to reach as many people as possible, assuming that the product or service has universal
appeal.

2. Differentiated marketing
§ Maruti Suzuki Alto: This budget-friendly model is targeted at price-
sensitive consumers who seek affordable transportation solutions.

§ Maruti Suzuki Swift: The Swift appeals to young, urban drivers looking
for a combination of style, performance, and fuel efficiency.

2
§ Maruti Suzuki Ertiga: This model targets families, offering space and comfort with multiple
seating configurations.

§ Maruti Suzuki Vitara Brezza: This model emphasizes sportiness and ruggedness and attracts
those interested in SUVs.

Maruti Suzuki is an example of differentiated marketing. Differentiated marketing is also known

as segmented marketing. A company creates different products or marketing strategies for
different groups of customers.

3. Concentrated Marketing
§ Royal Enfield produces motorcycles with a distinctive vintage look and
a simple, rugged design. They don't chase the latest trends or technological
advancements but instead focus on a classic and timeless style.

§ There is a sense of nostalgia, adventure, and freedom associated with

driving classic motorcycles. It creates a strong sense of community among
Royal Enfield riders.

§ The company engages with its niche audience through exclusive events, rides,
and gatherings that resonate with the brand's ethos.

Royal Enfield is an example of concentrated marketing. Concentrated marketing, also known as

niche marketing, is a strategy where a company focuses its efforts and resources on serving a
specific, well-defined segment of the market.

4. Micromarketing
§ Netflix analyzes each user's viewing history and ratings to provide personalized
movie and TV show recommendations. The ‘Recommended for You’ section is
tailored to individual tastes and preferences.

§ The platform categorizes content into various genres, and it showcases

recommendations based on what a user has watched before.

§ If someone frequently watches romantic comedies, Netflix will prominently

display similar content.

Netflix is an example of micromarketing. Micromarketing is when a company pays very close

attention to what each customer likes and needs. It uses this information to make personalized
products and messages just for each customer or very small groups of similar customers. It's like
getting a special recommendation or offer that's just for you.

Now, understand Positioning.

3
Positioning appeals to the desired target market needs by creating a strong alignment between
what a product or brand offers and what the target audience wants or values.
Let’s understand better with the help of an example.

Example 1: Kurkure: ‘Tedha Hai Par Mera Hai’

Kurkure positioned itself with the tagline ‘Tedha Hai Par Mera Hai’. This positioning strategy aims
to convey a sense of uniqueness and personal ownership of the snack.
§ Target Audience: Kurkure target audience included consumers, especially young adults and
children. The positioning appealed to those looking for a snack with a unique shape and a
quirky, enjoyable eating experience.
§ Effectiveness: This positioning effectively sets Kurkure apart from conventional snacks with
uniform shapes. It created a memorable and recognizable brand identity, emphasizing the
snack's distinctive characteristics.

Example 2: Airtel: ‘The Smartphone Network’

Airtel positioned itself as ‘The Smartphone Network’. This strategic positioning aimed to highlight
Airtel's dedication to providing robust network connectivity and services tailored to the needs of
smartphone users.
§ Target Audience: Airtel's target audience consisted of tech-savvy consumers who owned
smartphones and valued reliable network coverage, fast data speeds, and seamless
connectivity.
§ Effectiveness: Airtel ‘The Smartphone Network’ positioning worked really well because it
showed that Airtel was ready for the fast-changing world of smartphones. It told people that
Airtel was the best choice for those who used smartphones a lot.

References:
§ What is Targeting in Marketing? | Wrike Marketing Guide. (n.d.). https://www.wrike.com/marketing-guide/faq/what-
is-targeting-in-marketing/
§ Team, C. (2023a). Market positioning. Corporate Finance Institute.
https://corporatefinanceinstitute.com/resources/management/market-positioning/
§ Difference between differentiated marketing strategy and concentrated marketing strategy. (2019, January 31).
Small Business - Chron.com. https://smallbusiness.chron.com/difference-between-differentiated-marketing-
strategy-concentrated-marketing-strategy-30462.html
§ Hofacker, M. (2022, November 21). What is differentiated marketing, concentrated, and undifferentiated marketing?
Referral Rock Blog. https://referralrock.com/blog/differentiated-concentrated-undifferentiated-marketing/

4
 Marketing Management

LECTURE 14
Consumer Behavior
Consumer Behavior
Consumer Behavior is the study of when, why, how, and where
people do or do not buy a product. It basically depends on the
psychology of the consumer.

§ Example 1: A customer decides to buy a Tata Nexon EV car

over a Tata Nexon petrol car due to concerns about
environmental impact and long-term cost savings.

§ Example 2: A person cancels their local cable TV subscription in

favor of Jio multiple streaming services because they find it more
convenient and cost-effective.

Let’s understand the need to study consumer behavior.

The need to study consumer behavior is for these reasons:

§ To make better strategies for increasing profits

§ To know the buying decisions and how consumers consume

§ To observe consistent changes in consumers' tastes or preferences

§ To draft pricing policies

§ To avoid future market failures

Let’s explore the factors influencing consumer behavior.

Factors Influencing Consumer Behavior

The main factors influencing consumer behavior are as follows:

1. Cultural Factors
In India, weddings are a social event where people often spend heavily.
Popular jewelry brand Tanishq's advertising campaigns often highlight
how their jewelry enhances social status and family bonds. Tanishq
reported a 34% increase in sales during the wedding season in 2020.

This is an example of a Cultural Factor. Cultural factors are the

cultural values, beliefs, customs, and traditions that influence
consumer behavior.

2
2. Social Factors
Instagram, a social media platform, gained immense popularity in India
due to its visual appeal and the desire to share life moments with family,
friends, and followers. There were 324M Instagram users in India in
February 2023, which accounted for 22.5% of its entire population.

This is an example of a Social Factor. Social factors encompass the

impact of friends, family, and reference groups on consumer choices.

3. Personal Factors
Luxury car brands such as Mercedes-Benz and BMW focus on selling
expensive cars to affluent people. In 2020, Mercedes-Benz in India sold
40% more luxury cars, which shows that households with higher incomes
were buying these expensive cars. This illustrates that personal income
levels play a big role in the kind of cars people buy.

This is an example of a Personal Factor. Personal factors include age,

income, education, and lifestyle, which affect what people buy.

4. Psychological Factor
Colgate, a toothpaste brand, uses psychological factors such as trust and
familiarity to maintain its market dominance in India. Colgate advertising
often emphasizes the reliability and effectiveness of their products,
creating a sense of trust among consumers. Colgate held a market share
of around 51% in the Indian toothpaste market in 2020.

This is an example of a Psychological Factor. Psychological

factors relate to thoughts, feelings, and perceptions that
influence consumer behavior.

Now, come to the types of consumer behavior.

Types of Consumer Behavior

1. Complex Buying Behavior

When you buy a car, you need to put in a lot of effort to research
various aspects such as location, price, amenities, and legal
considerations. So, buying a new car is an example of Complex
Buying Behavior

Complex Buying Behavior occurs when consumers are deeply

involved in the purchase decision and perceive significant
differences between brands or products. They conduct extensive
research, compare options, and often seek input from friends
or experts.

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2. Dissonance-Reducing Buying Behavior
When you purchase a laptop, you may perceive minimal
differences between brands such as Dell and HCL in terms of
performance and features. Even after making a purchase, you
may experience post-purchase doubts. So, this kind of purchase
is an example of Dissonance-Reducing Buying Behavior

In Dissonance-Reducing Buying Behavior, consumers are

deeply involved in the purchase but perceive minimal
differences between brands. They may experience post-
purchase doubts and seek information to confirm their choice.

3. Habitual Buying Behavior

Many of you may not know which detergent is used at home
while others may be using two-three different brands of
detergents at home. So, this kind of purchase is an example
of Habitual Buying Behavior.

Habitual buying behavior occurs when consumers have low

involvement in the purchase decision and minimal brand
differentiation. They often buy out of habit or routine and
do not invest much time in evaluating alternatives.

4. Variety-Seeking Buying Behavior

Whichever soft drink you may prefer now, after a while you will
switch to another brand only to change the taste. So, this kind
of purchase is an example of Variety-Seeking Buying Behavior.

In Variety-Seeking Buying Behavior, consumers have low

involvement but perceive differences between brands.
They may occasionally switch brands to add variety or
excitement to their consumption.

References:
§ Bhat, A. (2023). Consumer Behavior: Definition, factors and methods. QuestionPro.
https://www.questionpro.com/blog/consumer-behavior-
definition/#:~:text=Consumer%20behavior%20is%20influenced%20by,factors%2C%20family%2C%20and%20cult
ure.
§ Rangaiah, M. (n.d.). 5 factors influencing consumer Behavior | Analytics Steps.
https://www.analyticssteps.com/blogs/5-factors-influencing-consumer-behavior

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Marketing Management

LECTURE 15
Buying Decision
Buying Decision
A buying decision, or a purchase decision, refers to the process by
which a consumer or business evaluates various options and
chooses a product, service, or solution to acquire.

Buying Decision Process

This decision-making process typically involves several stages and
factors influencing the final choice.

1. Problem Recognition: The process begins when the consumer or business recognizes a
problem or a need. This could be triggered by various factors, such as a desire for a new
product, a need for a replacement, or the identification of a specific issue that requires a
solution.

2. Information Search: Once the problem or need is recognized, the individual or organization
seeks information about potential solutions. This information can be gathered from various
sources, including:
a. Personal sources (friends, family, colleagues)
b. Commercial sources (advertisements, product literature)
c. Public sources (reviews, articles)
d. Experiential sources (personal experience with similar products)
e. Marketing channels (websites, social media, email)

3. Evaluation of Alternatives: The buyer evaluates the available options after gathering
information. This stage involves comparing different products or services based on various
factors, including price, quality, features, brand reputation, and how well they meet the
specific needs and preferences of the buyer.

4. Purchase Decision: In this stage, the buyer purchases a specific product or service. Evaluating
alternatives and personal factors such as budget, timing, and individual preferences influence
the choice.

5. Purchase: This is the stage where the actual transaction takes place. The buyer acquires the
chosen product or service, which can involve making a payment, signing a contract, or
completing the transaction.

6. Post-Purchase Evaluation: The buyer assesses their decision and the product or service
they've acquired after the purchase. This evaluation can lead to satisfaction or dissatisfaction.
If the buyer is satisfied, it can result in positive word-of-mouth, repeat purchases, and brand
loyalty. If there is dissatisfaction, it can lead to returns, complaints, or negative feedback.

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Factors Influencing Consumer Decision
A wide range of factors influences consumer buying decisions. These factors can be grouped into
several categories, including:

1. Cultural Factors: Culture refers to the shared values, beliefs, customs, and norms of a
particular society or group. It can significantly impact consumer behavior.

For example, cultural factors can influence the types of products people prefer, their
purchasing decisions, and their attitudes toward brands.

2. Social Factors:
§ Reference Groups: These are the people or groups an individual looks for guidance and
influence. They can be direct (family and friends) or indirect (celebrities and social media
influencers).
§ Family: Family structure, roles, and dynamics can play a substantial role in shaping
consumer choices.
§ Social Class: A person's social class, often determined by income, occupation, education,
and other factors, can affect the brands and products they prefer.

3. Personal Factors:
§ Age and Life Stage: A consumer's age and the stage of life they are in can influence their
preferences and needs. For example, a teenager's buying decisions are typically different
from those of a retiree.
§ Occupation and Income: A person's occupation and income level can determine their
purchasing power and the types of products or services they can afford.
§ Lifestyle and Personality: An individual's lifestyle, values, interests, and personality traits
can influence buying decisions.
§ Perception and Attitudes: How a consumer perceives a product or brand and their general
attitudes and opinions can affect their choices.

4. Psychological Factors:
§ Motivation: What drives a person to purchase, such as the need for necessities or the
desire for self-esteem or status.
§ Perception: How an individual interprets and makes sense of the information around them,
which can affect their preferences.
§ Learning: The process of acquiring knowledge and experience can influence consumer
decisions.
§ Memory: What consumers remember about a product or brand can impact their choices.

3
5. Situational Factors:
§ Purchase Context: The immediate environment and situation in which a purchase is made
can influence buying decisions. For example, buying groceries is different from purchasing
a luxury item.
§ Time Constraints: The amount of time available for making a decision can affect the
choices consumers make.

6. Marketing and External Influences:

§ Advertising and Promotion: Marketing and advertising campaigns and promotional
activities can sway consumer preferences and choices.
§ Brand Image and Reputation: A brand's image and reputation can influence consumer
trust and loyalty.
§ Price and Discounts: Pricing strategies, discounts, and perceived value for money can
impact buying decisions.

IEDA Model
The IEDA model is not a widely recognized or standard marketing or
consumer behavior model. It may have been created or used in a
specific context, but it's not a widely accepted or established
framework.

In general, when discussing the stages a consumer goes through in

the decision-making process, the most commonly cited model is the
AIDA model, which stands for:
§ Attention: Attracting the consumer's attention to the product or service.
§ Interest: Generating interest and providing information about the product's features and
benefits.
§ Desire: Building desire or a strong inclination to purchase the product.
§ Action: Encouraging the consumer to take action, such as purchasing.

This model is often used to understand and guide marketing and advertising strategies to move
consumers through these stages toward making a purchase.

Marketing Funnel
A marketing funnel, often called a sales funnel, is a conceptual framework that represents the
stages through which potential customers or leads move from their initial awareness of a product
or service to the final conversion or purchase.

4
The idea behind the marketing funnel is to visualize and understand the customer journey
and the process of turning leads into paying customers. It helps marketers and businesses
plan their marketing strategies and optimize their efforts at each funnel stage.

The typical stages in a marketing funnel are as follows:

§ Awareness: This is the top funnel, where potential customers become aware of a product or
service. Awareness can be created through various marketing channels such as advertising,
content marketing, social media, or search engine optimization (SEO).

§ Interest: Some individuals are interested in the product or service after becoming aware. They
seek more information, explore features and benefits, and consider how it might solve their
problems or meet their needs.
§ Consideration: Potential customers actively evaluate the product or service at this stage. They
might compare it with alternatives, read reviews, and assess its suitability for their specific
needs.

§ Intent: Once potential customers have gathered enough information and feel the product or
service is a good fit, they express their intent to purchase. This may involve signing up for a
newsletter, requesting a quote, or adding items to a shopping cart.

§ Purchase: This is the bottom of the funnel, where potential customers become actual
customers by purchasing or taking the desired action (e.g., subscribing, signing a contract,
etc.).

§ Post-Purchase: Some funnels include a post-purchase stage where customer retention and
loyalty are emphasized. This includes providing excellent customer support, asking for reviews,
and encouraging repeat purchases.

Buying Capacity
The buying capacity of consumers refers to their ability
to purchase goods and services based on their financial
resources, including their income, savings, and access
to credit.
It is a crucial factor in their buying decisions, as it directly
influences what they can afford and how much they are
willing to spend on various products and services.
Understanding a consumer's buying capacity is essential for
businesses to target the right market segments and tailor
their marketing strategies accordingly.

5
Ways Companies Increase the Buying Capacity of Consumers
Companies can take various strategic approaches to increase the buying capacity of their
consumers. Increasing buying capacity often involves improving consumers' financial well-being,
making products or services more accessible, and enhancing the overall value proposition. Here are
several ways in which companies can work to increase their consumers' buying capacity:

§ Offer Financing Options: Provide flexible payment plans or financing options to spread the
cost of a purchase over time. This can make expensive products or services more affordable for
consumers.

§ Discounts and Promotions: Offer discounts, promotions, or loyalty programs that provide cost
savings and incentives for repeat purchases. Special offers can make products or services
more attractive to price-sensitive consumers.

§ Provide Value for Money: Ensure your products or services offer a good value proposition. This
can include providing high-quality products, exceptional service, or additional features that
justify the price.

§ Education and Financial Literacy: Invest in consumer education and financial literacy
programs to help consumers better manage their finances. Well-informed consumers are more
likely to make prudent financial decisions and have a greater buying capacity.

§ Salary Advances and Wage Increases: Provide your employee's salary advances or wage
increases if feasible. Companies that pay competitive wages can help employees improve their
financial stability, which, in turn, can increase their buying capacity.

§ Employee Benefits: Offer comprehensive benefits, including healthcare, retirement plans, and
wellness programs. These benefits can reduce financial stress and improve employees' overall
financial situation.

§ Product Diversification: Expand your product or service offerings to cater to a broader range
of consumers, including those with varying income levels. This can help reach a wider audience.

§ Credit Building Programs: For companies that offer financing or credit products, consider
implementing credit-building programs to help consumers improve their credit scores and
access more favorable credit terms.

§ Invest in Emerging Markets: Explore opportunities in emerging markets with potential for
economic growth and an expanding middle class. Entering such markets can tap into new
customer segments with increasing buying capacity.

§ Online and Mobile Payment Options: Make it easier for consumers to make purchases by
offering a variety of payment methods, including online and mobile payment options. This can
improve convenience and accessibility.

§ Customization: Provide options for customization, allowing consumers to tailor products or

services to their specific needs and budget.

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§ Social Responsibility Initiatives: Engage in social responsibility initiatives that contribute to
the community's economic development and financial well-being. This can help build goodwill
and trust among consumers.

§ Partnerships and Alliances: Form strategic partnerships or alliances with other companies,
financial institutions, or organizations to offer joint programs, discounts, or special deals that
benefit consumers.

References:
§ DealHub Experts. (2023). Buying decision process. DealHub. https://dealhub.io/glossary/buying-decision-process/
§ What is consumer buying power? (2021, April 26). Small Business - Chron.com.
https://smallbusiness.chron.com/consumer-buying-power-68682.html

7
 Marketing Management

LECTURE 16
Competitive Analysis
Competitive Analysis
Competitive analysis, also known as competitive intelligence or
competitor analysis, is the process of evaluating and
understanding the strengths and weaknesses of any business
concerning its competitors.

The primary goal of competitive analysis is to gain insights to

help companies make informed decisions, identify opportunities,
and formulate effective strategies to gain a competitive
advantage in their industry or market.

For example,
§ Tata Motors conducts competitive analysis to assess its position in the Indian automotive
market, benchmarking against rivals like Maruti Suzuki and Mahindra & Mahindra to refine its
product offerings and marketing strategies.
§ Reliance Jio employs competitive analysis to stay ahead in the telecommunications industry,
constantly analyzing competitors like Airtel and Vodafone Idea to adapt its pricing and service
offerings.

Steps of Competitive Analysis

Competitive analysis is a crucial component of business strategy that involves assessing your
competitors' strengths, weaknesses, and strategies to gain a competitive advantage.
While there is no one-size-fits-all approach, here are six common steps in conducting a competitive
analysis:

Step 1: Identify Competitors: Start by identifying who your competitors are in the market. They can
be direct competitors who offer similar products or services and indirect competitors who may
serve the same customer needs with slightly different offerings.

Step 2: Gather Information: Collect relevant data and information about your competitors. This
includes their market share, financial performance, product/service offerings, pricing strategies,
distribution channels, target customer segments, and marketing tactics. Utilize sources like
industry reports, websites, social media, and customer feedback.

Step 3: SWOT Analysis: Perform a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis
for each competitor. Identify what they excel at (strengths) and where they may be lacking
(weaknesses). Also, assess the opportunities and threats that exist in their external environment.

Step 4: Analyze Competitive Strategies: Study how your competitors go to market. This includes
their marketing and advertising strategies, pricing models, product development and innovation
approaches, distribution networks, and customer relationship management. Identify patterns and
trends in their strategies.

2
Step 5: Monitoring and Adapting: After gathering and analyzing the information, draw insights
about your competitors' strengths and weaknesses, market positioning, and strategies. Use these
insights to make informed decisions about your business strategy. Determine how you can
differentiate yourself, exploit competitor weaknesses, or capitalize on opportunities in the market.

Competitive Advantage
A competitive advantage is a distinctive edge or superiority that a business or organization has over
its competitors in the same industry or market.

It sets a company apart and enables it to outperform its rivals, attract customers, and achieve long-
term success.

Types of Competitive Advantage

Competitive advantages can take various forms and are critical for a company's growth and
sustainability. Here are some common competitive advantages:

§ Cost Leadership: This advantage is achieved by producing goods or providing services at a

lower cost than competitors while maintaining acceptable quality. It allows a company to offer
customers competitive prices and maintain healthy profit margins.
For example, Amazon's efficient supply chain and bulk purchasing power offer lower prices
than many competitors.

§ Product Differentiation: Companies with this advantage create products or services that are
unique or perceived as superior in some way. Customers are willing to pay a premium for these
differentiated offerings.
For example, Lenskart's product differentiation strategy relies on its products' design, user
experience, and ecosystem, such as virtual try-on technology for online shopping and home eye
checkup services.

§ Market Focus: Some businesses focus on serving a specific niche or target market
exceptionally well. They understand their customers' unique needs and preferences better
than their competitors.
For example, Whole Foods Market and Patanjali targets health-conscious consumers looking
for organic and natural products.

§ Innovation: Companies that consistently innovate in their products, processes, or business

models can gain a competitive advantage. Innovation can lead to cost savings, improved
product quality, or the introduction of new and better products.
For example, Tesla's innovation in electric vehicle technology and autonomous driving has
given it a strong competitive edge in the automotive industry.

3
§ Brand and Reputation: A strong brand and positive reputation can be a competitive advantage.
Customers are often more willing to trust and buy from companies with well-established
brands and a track record of reliability.
For example, Coca-Cola's brand is recognized and valued worldwide, allowing it to command a
premium in the soft drink market.

§ Geographic Advantage: A company's location or access to specific resources can provide a

competitive edge. This is particularly relevant in industries like agriculture, mining, and
tourism.
For example, the State Bank of India (SBI) has an extensive branch network, giving it a
significant presence and access to a vast customer base in the Indian banking and financial
services sector.

§ Economies of Scale: Companies that can achieve economies of scale benefit from lower
average costs as they produce more units of a product or service. This cost advantage can be a
barrier to entry for smaller competitors.
For example, Amazon's vast distribution network and customer base enable it to benefit from
significant economies of scale in e-commerce.

Discussion Question:
Imagine you are starting a new restaurant in a competitive neighborhood. What strategies can you
adopt to gain a competitive advantage over other eateries in the area, and why do you think these
strategies would work?

References
§ Arrow, K. J., & Hahn, F. (1971). General competitive analysis. http://ci.nii.ac.jp/ncid/BA03401158
§ Twin, A. (2023b). Competitive Advantage Definition with types and examples. Investopedia.
https://www.investopedia.com/terms/c/competitive_advantage.asp#:~:text=Competitive%20advantage%20refers%
20to%20factors,compared%20to%20its%20market%20rivals.

4
 Marketing Management

LECTURE 17
SWOT and BCG Matrix
SWOT Analysis
SWOT analysis is a strategic planning tool individuals and
organizations use to identify and evaluate the Strengths,
Weaknesses, Opportunities, and Threats related to a specific
objective, project, or situation. This analysis helps understand
the internal and external factors that can impact the success
or failure of a particular endeavor.

Here's a breakdown of each component in a SWOT analysis:

§ Strengths: These are the internal, positive attributes and resources the entity conducting the
analysis possesses. Strengths include a strong brand, a talented workforce, proprietary
technology, cost advantages, and an excellent reputation.

§ Weaknesses: Weaknesses are also internal factors but represent limitations or shortcomings
that may hinder progress. Weaknesses can include needing more resources, adequate
infrastructure, better management, or outdated technology.

§ Opportunities: Opportunities are external, favorable factors or circumstances that can be

leveraged to achieve the objective. Opportunities arise from market trends, changes in
customer behavior, technological advancements, or favorable economic conditions.

§ Threats are external factors that pose potential challenges or risks to the objective. Threats
can include competition, regulatory changes, economic downturns, shifts in consumer
preferences, or emerging technology that disrupts the industry.

Purpose of a SWOT analysis

§ Identify: Recognize and list the internal and external factors relevant to the situation.
§ Evaluate: Assess each factor's significance and potential impact on the goal or project.
§ Strategize: Use the analysis to develop strategies that capitalize on strengths, address
weaknesses, seize opportunities, and mitigate threats.

SWOT analyses are commonly used in business and strategic planning to make informed decisions
and set priorities. They can also be applied to personal development, product launches, marketing
campaigns, and other situations where understanding the internal and external landscape is
essential for success.

BCG Matrix
The BCG Matrix, or the Boston Consulting Group Matrix, is a strategic management tool used to
assess and analyze a company's portfolio of business units or products.

It was developed by the Boston Consulting Group in the early 1970s and is designed to help
organizations decide on resource allocation, investment, and strategic planning.

2
The BCG Matrix categorizes a company's products or business units into four quadrants based on
two key dimensions:

§ Market Growth Rate: This dimension assesses the market growth rate in which a product or
business unit operates. It measures how quickly the market for that product is expanding. The
market growth rate is typically expressed as a percentage and can be high, moderate, or low.

§ Relative Market Share: This dimension evaluates a product or business unit's market share
compared to its largest competitor in the same market. Relative market share indicates the
strength of the product or business unit, with a higher market share signifying a stronger
position.

Based on these two dimensions, the BCG Matrix categorizes products or business units into four
quadrants:

§ Stars: Products or business units with high market share in high-growth markets. Stars have
strong competitive positions and are expected to continue growing. Companies should invest
heavily in Stars to maintain or expand their market dominance.

§ Question Marks: Products or business units with low market share in high-growth markets.
Question Marks have growth potential but have yet to dominate their markets. Companies may
invest in Question Marks to turn them into Stars or divest if growth prospects are limited.

§ Cash Cows: Products or business units with high market share in low-growth markets. Cash
Cows generate significant cash flow but have limited growth potential. Companies should milk
Cash Cows to generate funds for other investments.

§ Dogs: Products or business units with low market share in low-growth markets. Dogs do not
have a competitive advantage and are not expected to grow significantly. Companies may
consider divesting or phasing out Dogs.

The BCG Matrix is a valuable tool for portfolio analysis, helping organizations allocate resources
effectively and decide which products or business units to invest in, divest from, or maintain. It
visually represents the company's product or business unit mix and guides strategic planning to
optimize the overall portfolio's performance.

References:
§ Kenton, W. (n.d.). SWOT Analysis: How To With Table and Example. Investopedia.
https://www.investopedia.com/terms/s/swot.asp
§ What is the growth-share matrix? (n.d.). BCG Global. https://www.bcg.com/about/overview/our-history/growth-
share-matrix

3
Marketing Management

LECTURE 18
Case Study III
Patanjali
Patanjali Ayurved Limited is a prominent Indian consumer
goods and healthcare company focusing on natural and
herbal products.
Founded by Yoga guru Baba Ramdev and Acharya
Balkrishna, Patanjali has gained recognition for its
extensive Ayurvedic and organic offerings, appealing to
health-conscious consumers in India and beyond.

Patanjali SWOT Analysis

The Patanjali SWOT analysis delves into the internal dynamics and external factors influencing the
trajectory of Patanjali Ayurved Ltd., a global leader in the FMCG sector.

Strengths of Patanjali
Strengths are always internal to a company. These could be the points of competitive advantage
that make them unique or could simply be what a company does well, which may not be unique.
Here are the strengths from the SWOT Analysis of Patanjali Ayurveda.
1. Founding Father Baba Ramdev: Baba Ramdev, a Hindu spiritual guru, drives Patanjali's rapid
growth. His influence and popularity as the brand ambassador have significantly contributed to
the company's success.

2. Pricing Strategy: Patanjali offers budget-friendly products, priced 20-30% lower than
competitors, making them accessible to the Indian lower- and middle-class, giving the brand a
pricing advantage.

Price Comparison Patanjali Other Brands

Chyawanprash ₹115 (500 gm) ₹160 (500 gm)

Honey ₹135 (500 gm) ₹199 (500 gm)

Shampoo ₹110 (200 gm) ₹159 (200 gm)

3. Launch of New Products: Patanjali has expanded its product range to include dairy products,
frozen vegetables, packaged drinking water, cattle feed, and solar production, diversifying its
offerings.

4. Ayurveda and Herbal Focus: Patanjali emphasizes using natural and organic materials,
leveraging the appeal of Ayurveda and herbal products, which resonates well with Indian
consumers.

2
5. Strong Distribution Channels: With over 15,000 outlets, including medical centers and non-
medical centers, Patanjali has built a robust distribution network, enhancing its reach and
customer trust.

6. Word of Mouth Marketing: Patanjali initially relied on word-of-mouth marketing, benefiting

from Baba Ramdev's yoga camp followers and later adopting more formal promotional
campaigns to strengthen its market position.

7. E-commerce Presence: Patanjali leverages e-commerce platforms, allowing consumers easy

access to its products online giving it a digital edge over competitors.

Weakness of Patanjali
The weaknesses of Patanjali are, again, internal. Weaknesses are the points that the companies
should be mindful of. A company should ensure that it builds upon its strengths well so that
weaknesses do not pose the kinds of problems they can.
§ Reliance on Baba Ramdev: Patanjali heavily depends on Baba Ramdev, a public figure, which
poses a risk due to his involvement in controversies, like a recent apology for insensitive
comments made by a Patanjali employee.

§ Current Pricing Strategy: While necessary for survival, Patanjali's existing pricing strategy
offers low-profit margins and may need revision to address rising labor and raw material costs.

§ Excessive Product Offerings: Patanjali has a wide product range, but only a few, like shampoo
and toothpaste, generate substantial revenue. Consider discontinuing low-profit products or
enhancing their profitability.

§ Lower Margins for Distributors: Patanjali prioritizes volume over distributor margins, making it
a demand-driven company with a unique approach to distribution.

§ Limited International Presence: Despite international appeal, Patanjali primarily focuses on

the Indian market. Leveraging Baba Ramdev's international audience and targeting tech-savvy
Indian demographics could benefit expansion.

Opportunity of Patanjali
§ Natural and Herbal Products: Patanjali should invest more in organic farming and promote the
health benefits of its natural and herbal products to tap into the growing demand for organic
and natural goods.

§ Global Markets: Leveraging its association with Yoga and spirituality through Baba Ramdev,
Patanjali should expand into markets like Africa, Asia, and the Middle East, with a strong
interest in mysticism.

§ Food Business: To strengthen its image in the Indian market, Patanjali can open quick-service
restaurants offering natural and organic food items, similar to brands like Haldiram.

3
§ Rural Expansion: Patanjali needs to extend its operations into Indian rural areas, where there's
a preference for natural and affordable products, to ensure broader market coverage and
reach rural consumers.

Threats to Patanjali
§ Controversies: Patanjali faced backlash for promoting the ‘Putrajeevak Beej’, a product
promising male childbirth, resulting in a government inquiry and harming the brand's image and
revenue.

§ Negative Publicity: The Nepal Department of Drug Administration found some Patanjali
medical products to be of ‘sub-standard quality’, damaging the company's reputation and
leading to negative word of mouth.

§ Increased Competition: Established players like Marico, HUL, Dabur, and newcomers like Sri
Ayurveda, are intensifying competition for Patanjali in the market.

§ Poor Harvest: Patanjali's dependency on weather and the monsoon season for crop production
can pose risks, necessitating a contingency plan in case of natural disasters or adverse climate
conditions.

Source: https://bstrategyhub.com/patanjali-swot-analysis-2019-swot-analysis-of-patanjali/

The SWOT analysis of Patanjali shows that the company is well on its way to greater success. The
company must manage its communications and abstain from anything that directly impacts Baba
Ramdev. It needs to place more confidence in itself to pursue worldwide markets and connect with
more consumers interested in its brand and offerings.

4
Patanjali BCG Matrix
The BCG Matrix for Patanjali Ayurved Limited Disruption
or Innovation will help Patanjali Ayurved Limited
Disruption or Innovation implement business-level
strategies for its business units. The analysis will first
identify where the strategic business units of Patanjali
Ayurved Limited Disruption or Innovation fall within the
BCG Matrix for Patanjali Ayurved Limited Disruption or
Innovation.

§ Stars: Patanjali toothpaste Dant Kanti is growing at an increasing speed and holds a high
market share. Since Patanjali launched this, the other competing brands have declined. Hence,
this fits well in the star category.

§ Cash Cows: Patanjali Ghee is a cash cow with a 33% market share in the slow-growing Ghee
industry. Though the industry growth may be slow, it gives the company ample reasons to
strengthen its investment in the product.

§ Question Marks: Patanjali Atta noodles have been marketed to compete with some of the top
brands like Maggi. However, even in the high-growth market, it has yet to maintain a good
market share for its product.

§ Dogs: This is one category where neither the growth rate nor the market share increases. A
face oil product of Patanjali, Kayakalp Oil, fits well into this category. It has almost
disappeared from the market.

References:

§ Patanjali. (n.d.). Ayurvedic Products Online Shopping: Shop Online for Food, Herbal cosmetics, Juices, Ayurvedic
medicines, Books, CD, DVD - Patanjaliayurved.net. https://www.patanjaliayurved.net/
§ Applied Strategic Management. (n.d.). Google Books.
https://books.google.co.in/books?id=HJSdEAAAQBAJ&pg=PA40&lpg=PA40&dq=patanjali+swot+and+bcg+matr
ix&source=bl&ots=JWw0xgw-UN&sig=ACfU3U2s8FxG0nDhSyv58Qc-
NswfTTUFRA&hl=en&sa=X&ved=2ahUKEwiCm9f5pfCBAxUpcGwGHczrAms4HhDoAXoECAIQAw#v=onepage&q
=patanjali%20swot%20and%20bcg%20matrix&f=false

5
Marketing Management

LECTURE 19
Market Research
Market research is the process of gathering and analyzing information about a particular
market, including its consumers, competitors, and trends, to make informed business decisions and
develop effective marketing strategies.

The process of market research can be done through deploying surveys, interacting with a group of
people, also known as a sample, conducting interviews, and other similar processes.

Video Link: https://www.youtube.com/watch?v=MCvFAmcmqic

For example, Dove's ‘Campaign for Real Beauty’ in the early 2000s is a great example of how
thorough research can lead to big successes. Dove conducted research and discovered that only 2%
of people felt beautiful. They used this information to create a successful campaign that featured
real people. This campaign not only helped Dove but also inspired other companies to use real people
in their advertising.

Depending on the methods and tools required, market research can be of two types:
§ Primary Market Research (A combination of both Qualitative and Quantitative Research)
§ Secondary Market Research

Let’s discuss each type in detail.

Primary market research is a process where organizations or businesses get in touch with
the end consumers or employ a third party to carry out relevant studies to collect data. The data
collected can be qualitative data (non-numerical data) or quantitative data (numerical or statistical
data).

OYO conducts primary research to understand market trends and demands in various regions. For
example, before expanding to a new city or region, they may conduct surveys and interviews with
residents and potential customers to gauge the demand for budget accommodations in that area.

While conducting primary market research, one can gather two types of information, Exploratory
and Specific.

Exploratory research is open-ended, where a problem is explored by asking open-ended questions

in a detailed interview format usually with a small group of people, also known as a sample. Here
the sample size is restricted to 6-10 members.

Specific research is more pinpointed and is used to solve the problems that are identified by
exploratory research.

2
Qualitative market research study involves semi-structured or unstructured data collected through
some of the commonly used qualitative research methods like
§ Focus groups
§ One-to-one interviews
§ Ethnographic research

§ Focus Group: A Focus group is a small group of people (6-10) who typically respond to online
surveys sent to them. The best part about a focus group is the information can be collected
remotely, and can be done without personally interacting with the group members. However,
this is a more expensive method as it is used to collect complex information.

§ One-to-one interview: As the name suggests, this method involves personal interaction in the
form of an interview, where the researcher asks a series of questions to collect information or
data from the respondents. The questions are mostly open-ended and are asked to facilitate
responses. This method heavily depends on the interviewer’s ability and experience to ask
questions that evoke responses.

3
§ Ethnographic research: This type of in-depth research is conducted in the natural settings of
the respondents. This method requires the interviewer to adapt himself/herself to the natural
environment of the respondents which could be a city or a remote village. Geographical
constraints can be a hindering factor in conducting this kind of research. Ethnographic
research can last from a few days to a few years.

Secondary research uses information that is organized by outside sources like government
agencies, media, chambers of commerce, etc. This information is published in newspapers,
magazines, books, company websites, free government and non-government agencies, and so on.

For example
§ McDonald's uses secondary research to study market reports and industry data to enter or
expand into a new market in India. These reports would contain information on market size,
growth trends, and key competitors.
§ Ola is likely to rely on secondary market research, such as industry reports and market
analysis, to gain insights into the broader ride-hailing and transportation industry. This helps
them understand market trends, competitive landscapes, and regulatory changes.

The secondary source makes use of the following:

§ Public sources: Public sources such as libraries are an awesome way of gathering free
information. Government libraries usually offer services free of cost and a researcher can
document available information.

§ Commercial sources: Commercial sources although reliable are expensive. Local newspapers,
magazines, journals, and television media are great commercial sources to collect information.

4
§ Educational Institutions: Although not a very popular source of collecting information, most
universities and educational institutions are a rich source of information as more research
projects are carried out there than in any business sector.

Let’s understand the importance of secondary research.

Conducting research is one of the best ways of achieving customer satisfaction, reducing customer
churn, and elevating business. Here are the reasons why market research is important and should
be considered in any business:
§ Valuable information: It provides information and opportunities about the value of existing and
new products, thus, helping businesses plan and strategize accordingly.

§ Customer-centric: It helps to determine what the customers need and want. Marketing is
customer-centric and understanding the customers and their needs will help businesses design
products or services that best suit them. Remember that tracing your customer journey is a
great way to gain valuable insights into your customers’ sentiments toward your brand.

§ Forecasts: By understanding the needs of customers, businesses can also forecast their
production and sales. Market research also helps in determining optimum inventory stock.

§ Competitive advantage: To stay ahead of competitors market research is a vital tool to carry
out comparative studies. Businesses can devise business strategies that can help them stay
ahead of their competitors.

References:
§ Market Research: What it is and why you need it | Zoho Academy. (2020, May 16). Zoho Academy.
https://www.zoho.com/academy/marketing/market-research/introduction-to-market-research.html
§ Why Market Research Is Important | Benefits Of Market Research. (2022, June 2). CintTM.
https://www.cint.com/blog/why-market-research-is-important
§ Marketing Research Process: Complete guide | SurveyMonkey. (n.d.). SurveyMonkey.
https://www.surveymonkey.com/market-research/resources/marketing-research-process-guide/
§ Bhat, A. (2023c, October 12). Market Research: What it Is, Methods, Types & Examples. QuestionPro.
https://www.questionpro.com/blog/what-is-market-
research/#:~:text=Another%20more%20specific%20definition%20could,knowledge%20of%20the%20market%20c
onsumer.

5
 Marketing Management

LECTURE 20
Introduction to Branding
Brand
A brand is a product, service, or concept publicly
distinguished from other products, services, or
ideas so that it can be easily communicated and
usually marketed. For example, Tata Group,
Mahindra & Mahindra, Asian Paints, Maruti Suzuki,
Taj Hotels, Titan, Flipkart, Amul, Paytm, Royal
Enfield, and Airtel are all examples of a brand.

Let’s understand how branding works.

Branding works by creating a distinct and

memorable image for a product or company, often
through consistent visual and messaging elements,
to build recognition and trust among customers.

Branding works through several key mechanisms

and strategies:

§ Creating Identity: It involves defining the unique characteristics, values, and personality of a
product or company. This identity helps it stand out in a crowded marketplace. For example,
Tata Motors has created a strong identity by focusing on values such as innovation, reliability,
and trust. Their branding emphasizes these characteristics in their vehicles and marketing
materials.

§ Consistency: Maintaining a consistent look, feel, and message across all marketing materials
and touchpoints, from logos and advertisements to customer interactions. For example, Amul, a
dairy cooperative, is known for maintaining a consistent brand image. Their iconic ‘Amul Girl’
mascot and witty advertisements have remained consistent for decades, creating a strong and
recognizable brand.

§ Building Trust: A strong brand builds trust with customers. When they recognize a brand and
have positive associations with it, they are more likely to make a purchase. For example, the
State Bank of India (SBI) is India's largest and most trusted public sector bank. SBI's long
history, extensive branch network, and commitment to customer trust have helped build a
strong brand in the banking sector.

§ Emotional Connection: Effective branding creates an emotional connection with customers,

which can lead to brand loyalty and advocacy. Customers feel a personal connection with the
brand. For example, Titan Company, a subsidiary of the Tata Group, creates an emotional
connection with customers through its brand Tanishq. The brand's emphasis on trust and purity
in its jewelry has built a deep emotional bond with consumers.

§ Differentiation: It helps a product or company stand out from competitors by highlighting its
unique selling points, values, and benefits. For example, Patanjali is a prime example of a brand
that differentiates itself by promoting products with natural and Ayurvedic ingredients. They

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 emphasize the traditional values of purity and wellness, setting themselves apart from many
other consumer goods brands.

§ Perceived Value: A well-established brand often commands a higher perceived value, allowing
it to charge premium prices for its products or services. For example, Royal Enfield is an iconic
Indian motorcycle brand that commands a higher perceived value. Known for its classic and
rugged designs, Royal Enfield can charge premium prices compared to other motorcycle brands
in India.

Role of Brands and Scope of Branding

What is the role of brands?

Hero MotoCorp distinguishes itself in the Indian two-

wheeler industry by focusing on fuel-efficient and
affordable motorcycles. They offer a wide range of bikes
tailored to the preferences of diverse customers.

Hero's logo and the iconic Hum Mein Hai Hero slogan
make its motorcycles easily recognizable and gives the
brand a strong presence in the market.

The brand's long-standing reputation for reliability, fuel

efficiency, and a wide service network has built trust and
credibility among Indian consumers.

Hero has an emotional connection with Indian consumers as it represents a sense of freedom,
mobility, and aspiration, making it a popular choice for commuters.

Hero MotoCorp maintains a consistent brand image through its logo, visual identity, and a focus on
customer satisfaction, ensuring that customers can rely on them.

A brand is a product or service that helps the organization differentiate its products or services from
others. The role of the brand is critical for the organization as it translates into loyalty and higher
margins in the long run.

The differentiation of a brand can be:

Related to Product Performance: For example, Gillette, Merck, Sony, 3M

§ Functional
§ Rational
§ Tangible

Related to Brand Identity: For example, Coca-Cola, Calvin Klein, Gucci, Tommy Hilfiger, Marlboro
§ Symbolic
§ Emotional

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§ Intangible

Benefits of Brand for the Consumer

§ It helps to identify the source of the manufacturer of the product and simultaneously assigns
responsibility to an organization for the branded product.
§ Experience of customers with products of the same brand helps them to quickly decide whether
they will want to go with their purchase decision or not making their decision easier.
§ Brands bring with them a certain level of quality assurance.

Benefits of Brand for a Firm

§ For a firm, the brand provides legal protection towards unique features or aspects of the
product.
§ Brand loyalty helps organizations retain their existing customers when diversifying from one
line of products to another. It provides security of demand and creates barriers for other
manufacturers to easily tap existing customers.
§ Firms can charge a premium for owning a brand boosting profit on every sale.
§ The product can be copied, but the brand cannot. Once a brand is established, it’s an invaluable
asset for an organization.
§ A well-established brand adds towards the overall value of the firm while calculating its net
worth.

Scope of Branding
A brand is a perceptual entity that is rooted in
reality but reflects the perceptions and perhaps
even the idiosyncrasies of consumers. Ultimately a
brand is something that resides in the minds of
consumers. Therefore the scope of branding
expands beyond boundaries.

To successfully brand a product it is necessary to

teach consumers:
§ Who the product is for
§ What the product does
§ Why consumers should choose that particular
brand

A branding strategy shall be considered successful only when the consumers have an answer to the
above three questions which is strong enough to make them believe that there are significant
differences in the products or services provided by a brand and others. Making sure the above three
takes a deep understanding of consumer and therefore the scope of branding becomes critical

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The concept of branding can be applied to:
§ Physical Goods: Parle-G biscuits, Tata Tea, Maruti SX4, etc.
§ Services: Indigo Airlines, ICICI Bank, etc.
§ Stores: Future Retail, Central, 99 Store, Amazon, etc.
§ Person: Sachin Tendulkar, Amitabh Bachchan, etc.
§ Place: Gujarat Tourism, Incredible India, etc.
§ Idea: Abortion rights, free trade, or freedom of speech

Brand Equity
Brand equity means that a company can charge more for a product with a well-known name
compared to a no-name version. To build brand equity, companies make their products memorable,
easily recognized, and better in quality. They also use big advertising campaigns to make their
brand well-known.

For example,
§ Starbucks
Rated the sixth-most-admired company in the world by Fortune magazine in 2020, Starbucks is
held in high regard for its pledge to social responsibility. With more than 31,000 stores around
the globe in 2019, Starbucks remains the largest roaster and retailer of Arabica coffee beans
and speciality coffees.

§ Coca-Cola
With a profit margin between 25-30%, Coca-Cola is often rated the most valuable soda brand in
the world. However, the brand itself represents more than just the products—it's symbolic of
positive experiences, a proud history, and even the US itself. Also recognized for its unique
marketing campaigns, the Coca-Cola Corporation has made a global impact on its consumer
engagement.

§ Porsche
Porsche, a brand with strong equity in the automobile sector, retains its image and reliability
through the use of high-quality, unique materials. Viewed as a luxury brand, Porsche provides
owners of its vehicles not only with a product but an experience. In comparison to other vehicle
brands in its class, Porsche was the top luxury brand in 2020, according to US News & World
Report.

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Activity
1. Divide the class into small groups.

2. Ask students to choose one of the following to research: a product (e.g., iPhone), a company
(e.g., Coca-Cola), or a service (e.g., Amazon Prime).

3. Students should find information on the following aspects:

a. Brand's slogan or tagline
b. A few of the brand's most popular marketing campaigns or advertisements
c. What makes the brand unique compared to competitors

4. Instruct students to prepare visual aids for their presentations. This can include posters,
PowerPoint slides, or other creative materials to showcase their research.

References:

§ Hanna, K. T. (2022, July 21). brand. WhatIs.com.

https://www.techtarget.com/whatis/definition/brand#:~:text=A%20brand%20is%20a%20product,name%2C%20its%20
qualities%20and%20personality.
§ Srivastava, A. (2022, January 24). Role of Brands and scope of Branding (Philip Kotler Summary) | Arpit Srivastava. Arpit
Srivastava. https://arpitsrivastava.com/role-of-brands-and-scope-of-branding-philip-kotler-
summary/#:~:text=A%20brand%20is%20a%20product,margins%20in%20the%20long%20run.
§ ROLE OF BRANDS AND SCOPE OF BRANDING. (n.d.). Scribd. https://www.scribd.com/document/443362815/ROLE-OF-
BRANDS-AND-SCOPE-OF-BRANDING

§ Role of brands and scope of branding. (n.d.). PDF. https://www.slideshare.net/tellstptrisakti/role-of-brands-and-scope-

of-branding

§ What is Brand Equity? (n.d.). BigCommerce. https://www.bigcommerce.com/ecommerce-answers/what-is-brand-equity/

6
Marketing Management

LECTURE 21
Word of Mouth
Word of Mouth
Word of mouth marketing (WOM marketing)
happens when consumers talk about a company's
product or service to their friends, family, and
others with whom they have close relationships.

WOM marketing is one of the most powerful forms

of advertising as 88% of consumers trust their
friends' recommendations over traditional media.

For example:
§ When satisfied customers share their positive experiences online, on review platforms, or
through social media, it can influence others.
§ Personal recommendations from trusted individuals in one's social circle are a classic form of
word of mouth marketing.

Types of Word of Mouth Marketing

Word of mouth marketing comes in different forms that businesses can use to connect with
customers. These are some popular ways:

§ Publicity: It's about getting noticed in the media and creating a good image for your business. It
can also involve managing problems, making your brand well-known, and building a good
reputation. For example, Tata Consultancy Services (TCS) is a well-known Indian IT services
company that often gains media attention for its innovations and contributions to the tech
industry, shaping its positive image.

§ Buzz Marketing: This type of marketing tries to create a lot of excitement and talk about a
campaign or product. It's like starting conversations among people, both in person and online.
For example, Xiaomi frequently creates buzz around product launches by offering limited-time
flash sales, encouraging customers to share their excitement on social media.

§ Viral Marketing: This type of marketing relies on getting people to spread the word about a
product or brand. It often starts with a small group and then grows to a larger audience.
Sometimes, even negative reactions can make things go viral. For example, Swiggy, an Indian
food delivery platform, has seen viral success with creative ad campaigns and promotions that
spread rapidly on social media, driving more customers to use their service.

§ Blogging: Businesses write articles, make videos, or create other content online to connect with
their customers. It's a way to build trust and loyalty with your audience. For example, The Better
India, a popular Indian content platform, maintains a blog that focuses on positive and inspiring
stories, helping it build customer trust and a loyal readership.

§ Emotional Marketing: This kind of marketing tries to tap into people's emotions to get them
interested. It often uses images and can be a response to current events or news. For example,

2
 Titan, a well-known Indian watch and jewelry brand, often uses emotional storytelling in its
advertisements, connecting with customers on a personal and emotional level.

§ Referral Marketing: Businesses reward customers who recommend their products to others. It's
like saying, ‘If you tell your friends about us, we'll give you something in return.’ For example,
Zomato, a prominent Indian food delivery and restaurant aggregator, has a referral program
that rewards users who refer friends to use the app, providing discounts and incentives to both
the referrer and the friend.

§ Social Media Marketing: Word of mouth can happen on the internet, too. Social media is a big
part of this. Companies use social networks to connect with customers and get them talking
about their products. For example, Myntra, a popular Indian fashion e-commerce platform,
actively uses social media to showcase user-generated content and engage with customers,
encouraging them to share their fashion choices and experiences on platforms like Instagram.

Importance and Benefits of Word of Mouth

Word of mouth marketing is an area many businesses forget
about or don’t take seriously. Word of mouth is essentially
free advertising or promotion of a brand or its products.
Marketing tactics and best practices can trigger positive
word of mouth for businesses. Here are the benefits of word
of mouth marketing to businesses.

§ Sales: In today’s connected digital world, a single

recommendation can have a far greater impact than
anything else that a business might do to increase its
sales. 83% of people are more interested in buying a
product or service when they’ve gotten a verbal
recommendation from their friend or family member.

§ Costs Nothing: Word of mouth is free, you don’t pay people in conversations who discuss their
experiences with your company with others. In comparison to paid advertising and promotion,
you could spend hundreds or even thousands of euros to run a campaign in print, on the radio, on
television, or on social media.

§ Credibility: One of the strongest benefits of word of mouth is its credibility. Hearing about
something positive about a company or product from a friend or family member carries more
impact and importance to you than hearing it from the company itself. Word of mouth acts as
proof and lets people know your business is credible to do business with.

§ Long-Term Value: People who purchase products or services based on a referral tend to stick
with your company longer than people who find your business by other means. This is because
they trust your business and are loyal. Happy customers will direct their friends and family to
you over time making the value and growth of the first referral huge.

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§ Builds Your Brand: Building your brand is vital in business, this is how you get bigger and
increase profits. Word of mouth marketing helps generate talk about your brand and increases
your sales which builds your company’s brand. A strong brand image will influence your current
and potential customers to positively respond to your products and services.

Measurement of Word of Mouth Impact

Measuring the impact of word of mouth marketing
is crucial for understanding its effectiveness and
making data-driven decisions. Here are some
common methods and key performance indicators
(KPIs) used to measure word of mouth in marketing:

§ Customer Surveys: Conducting surveys or

feedback forms to gather information directly
from customers. Ask questions about how they
heard about your product or service and whether
they were referred by someone. This can help
identify the source of word of mouth. For
example, Amazon India often uses customer
surveys to collect feedback and understand how
customers find out about their products and
services. They might ask questions about
referrals and recommendations from friends or family.

§ Net Promoter Score (NPS): NPS measures customer loyalty and their likelihood to recommend
your business to others. Customers are categorized as Promoters (likely to recommend),
Passives (neutral), or Detractors (unlikely to recommend). A high NPS indicates strong word of
mouth potential. For example, Flipkart, one of India's leading e-commerce platforms, uses the
Net Promoter Score to gauge customer loyalty and their likelihood to recommend the platform
to others. They categorize customers as Promoters (those likely to recommend), Passives, or
Detractors (unlikely to recommend).

§ Social Media Metrics: Monitor social media platforms for mentions, shares, likes, and
comments related to your brand. Analyze the reach and engagement of word of mouth content
to assess its impact. For example, Zomato, a popular restaurant discovery and food delivery
platform in India, closely monitors social media metrics to track mentions, shares, likes, and
comments related to restaurants and their platform. This helps them assess the impact of word
of mouth on user engagement.

§ Online Reviews and Ratings: Track online reviews on platforms like Google, Yelp, or specialized
industry websites. Analyze the number and sentiment of reviews, as well as how they impact
your business's overall rating. For example, MakeMyTrip, a leading online travel company in
India, tracks online reviews and ratings on platforms like Google, TripAdvisor, and its own
website. They pay close attention to customer feedback to enhance their services and assess
the impact of reviews on their overall ratings.

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§ Referral Program Metrics: If you have a referral program in place, track the number of referrals,
the conversion rate of referred customers, and the incentives given to referrers. This data helps
measure the success of your referral program. For example, Paytm, a prominent Indian mobile
commerce platform, offers a referral program where users can invite friends to join and use the
app. Paytm tracks the number of referrals, the conversion rate of referred customers (e.g.,
making their first transaction), and the incentives given to referrers.

§ Word of Mouth Content Tracking: Use tools to monitor and analyze user-generated content,
such as blogs, videos, and discussions related to your brand. Measure the reach and
engagement of this content. For example, Nykaa, a popular e-commerce platform specializing
in beauty and cosmetics, encourages user-generated content on social media. They closely
monitor and analyze content created by users, such as makeup tutorials and product reviews, to
measure the reach and engagement of word of mouth content.

§ Customer Lifetime Value (CLV): Calculate the CLV of customers acquired through word of
mouth. Customers acquired through referrals tend to have a higher CLV due to their loyalty and
longer association with the brand. For example, HDFC Bank, one of India's largest private
sector banks, calculates the Customer Lifetime Value of customers acquired through word of
mouth referrals. These customers tend to have a higher CLV due to their loyalty to the bank.

§ Customer Acquisition Cost (CAC): Compare the cost of acquiring customers through word of
mouth to other marketing channels. A lower CAC through word of mouth indicates its cost-
effectiveness. For example, Swiggy, a well-known food delivery platform in India, compares the
cost of acquiring customers through word of mouth marketing to other customer acquisition
channels like online advertising. They analyze which method is more cost-effective.

Activity
1. Divide students into small groups.

2. Scenario: You are hired as a marketing manager in a newly opened boutique and now you will
plan a campaign to promote the boutique through word of mouth marketing.
[Hint: You can create any one of these Publicity campaigns, Buzz Marketing, Viral Marketing,
Blogging, Emotional Marketing, Referral Marketing, Social Media Marketing]

3. Instruct the students to present the idea to the entire class.

5
References:

§ Carmicheal, K. (2022, September 20). Word of Mouth Marketing: What It Is and How to Make It Work.
https://blog.hubspot.com/agency/how-online-word-of-mouth-marketing-is-changing.
§ Mosley, M. (2017, June 25). Why is Word of Mouth Marketing so Important? Social Media Today.
https://www.socialmediatoday.com/marketing/why-word-mouth-marketing-so-important

§ Christian. (2023, September 20). 5 Benefits Of Word Of Mouth Marketing To Businesses - 3B1. https://3b1.ie/blog/5-
benefits-of-word-of-mouth-marketing-to-businesses. https://3b1.ie/blog/5-benefits-of-word-of-mouth-marketing-to-
businesses

§ https://www.indeed.com/career-advice/career-development/word-of-mouth. (n.d.). https://www.indeed.com/career-

advice/career-development/word-of-mouth.

§ Spahic, H. (2022, January 24). How to measure word of mouth. https://blog.brandops.io/how-to-measure-word-of-mouth.

6
Marketing Management

LECTURE 23
Digital Marketing I
Digital Marketing
Digital marketing, also called online marketing, is the
promotion of brands to connect with potential
customers using the Internet and other forms of digital
communication. This includes not only email, social
media, and web-based advertising, but also text and
multimedia messages as a marketing channel.

For example, Nykaa is an e-commerce platform

specializing in beauty and cosmetic products. They are
known for their effective digital marketing strategies, including social media campaigns, influencer
collaborations, and email marketing to reach and engage with their target audience, making them a
significant player in the Indian beauty and cosmetics industry.

Mass Marketing
What is the marketing strategy that targets the widest possible customer base?

Mass marketing, or undifferentiated marketing, aims to reach the widest possible customer base,
even the entire market. Mass marketing campaigns focus on generating high-volume sales by
appealing to as many people as possible. The broad distribution of advertisements often
corresponds to a large variety of both existing and new products available for purchase.

For example,
§ Billboards: When you drive down a road that receives heavy traffic, you might see billboards
calling for your attention. In these circumstances, mass-market retailers hope to advertise to
every person passing through this geographic location, regardless of any more specific data
about them.

§ Print media ads: Before the internet made it possible to use data to target specific readers and
users, media outlets would send the same magazine or newspaper to everyone. As a result, a
soap or toothpaste company could gain broad market penetration by buying a print ad that
would appeal to as many readers as possible.

§ Television ads: Mass media led to the rise of mass marketing, so it’s no surprise television ads
are one of the most recognizable examples of this approach. Consider a detergent company
hoping to reach the largest audience possible, advertising on TV during a highly watched
sporting event or show puts their product in front of a massive number of people.

2
Comparison of Mass Marketing and Digital
Marketing
Aspect Mass Marketing Digital Marketing

Target Audience Broad and undifferentiated Can be broad or highly specific, often
audience defined by demographics, interests, and
behavior

Communication Traditional media like TV, Online channels, including social media,
Channels radio, print websites, email, and search engines

Personalization Limited personalization or Highly personalized content, often using

customization data and user preferences

Interactivity Limited interaction and High interactivity, with opportunities for

feedback real-time engagement and feedback

Cost Potentially high, especially Generally more cost-effective with various

for traditional media budget options

Analytics Limited data and analytics. Extensive data and analytics, enable
precise measurement of campaign effects

Adaptability Less flexible for quick Adaptable in real-time, allowing

changes adjustments and optimization on the fly

Reach Wider reach across a broad Can target specific niches and reach a
audience global or local audience as needed

How businesses use digital marketing to segment and target audience

Businesses use digital marketing to segment and target their audience by employing various
strategies and tools that leverage the capabilities of the digital landscape. Here's how they do it:

§ Data Analysis: E-commerce giant Flipkart extensively

analyzes customer data to understand demographics,
shopping behavior, and preferences. This data-driven
approach helps them personalize recommendations, offer
targeted promotions, and enhance the overall shopping
experience for their customers.

§ Customer Profiling: Zomato, a food delivery and

restaurant discovery platform, creates detailed customer
personas based on users' dining preferences, location, and
order history. This enables them to provide personalized
restaurant recommendations and targeted promotions to
individual users.

3
§ Email Segmentation: MakeMyTrip, a popular online travel agency, uses email segmentation to
tailor travel deals and promotions based on customers' previous bookings, travel interests, and
locations. This ensures that their email campaigns resonate with the unique preferences of each
segment.

§ Social Media Advertising: Amul, a well-known Indian dairy cooperative, effectively utilizes
social media platforms like Facebook and Instagram to target specific demographics. They run
creative and engaging ad campaigns that resonate with their audience, building brand
awareness and customer loyalty.

§ Content Customization: Indian fashion retailer Myntra offers a variety of clothing lines for
different customer segments. They customize their website content, product recommendations,
and marketing campaigns to suit the diverse tastes and preferences of their customers,
enhancing their shopping experience.

§ Retargeting: Online marketplace Amazon India uses retargeting strategies to reach potential
customers who have browsed products on their site but haven't made a purchase. These
customers see targeted ads showcasing the products they showed interest in, encouraging
them to return and complete their purchase.

§ SEO and SEM: Digital payment company Paytm optimizes its online content and
advertisements for specific keywords related to digital payments and financial services. This
ensures that their platform appears prominently in search engine results when users are looking
for payment solutions.

Understanding the significance of digital marketing in the modern business

landscape
Digital marketing holds immense significance in the modern business landscape for several
reasons:

§ Wider Reach: Reliance Jio, a leading telecommunications company, has significantly expanded
its customer base through digital marketing. By offering attractive data plans and promotions
through online channels, they've reached a vast audience.

§ Cost-Effective: Nykaa, an e-commerce platform for beauty and cosmetic products, efficiently
utilizes digital marketing to reach a highly specific audience. Their targeted ads and email
campaigns make their marketing budget more cost-effective.

§ Targeted Audience: Lenskart, an online eyewear retailer, effectively targets specific

demographics and interests through digital marketing. They tailor their promotions and product
recommendations based on customer preferences and past purchases.

§ Personalization: Indian e-learning platform Byju's employs digital marketing to provide

personalized educational content. They analyze user data to offer tailored learning experiences,
improving student engagement.

4
§ Real-Time Analytics: ICICI Bank, one of the largest private sector banks, uses real-time
analytics in its digital marketing efforts. They track user interactions on their website and
mobile app to offer personalized banking solutions and optimize the customer experience.

• Interactivity: HDFC Life, a life insurance company, engages with customers through
interactive digital marketing campaigns. They use chatbots, social media contests, and online
calculators to foster customer engagement.

• Flexibility: Indian startup Cure.fit offers health and fitness solutions and adjusts its digital
marketing strategies to respond to market dynamics. They can quickly modify their fitness
class schedules and promotions in response to customer demand and COVID-19 restrictions.

• Brand Building: Titan Company, a prominent consumer goods company, employs digital
marketing to strengthen its brand. Through social media campaigns, online advertising, and
interactive content, Titan reinforces its brand image and customer trust.

Activity
1. Divide the students into pairs or small groups.

2. Instruct students to choose a product or service, define a target audience, and create a digital
ad using drawing or graphic design software. The ad should be tailored to their chosen
audience, considering factors like age, interests, and online behavior. They should also consider
the platform where the ad will be displayed (e.g., Facebook, Instagram, or a website).

3. Instruct students to present the advertisement idea to the entire class.

References:

§ What is Digital Marketing? A Beginner’s Guide | Mailchimp. (n.d.). Mailchimp. https://mailchimp.com/marketing-

glossary/digital-marketing/

§ MasterClass. (2022a, March 2). Mass Marketing Definition: 3 Examples of Mass Marketing - 2023 - MasterClass.
https://www.masterclass.com/articles/mass-marketing

§ https://study.com/academy/lesson/customer-segmentation-targeting-in-digital-
marketing.html#:~:text=By%20targeting%20ads%20to%20specific,%2C%20lifestyle%2C%20and%20behavioral%20ch
oices. (n.d.). https://study.com/academy/lesson/customer-segmentation-targeti

§ Marketing Management. (2023, March 11). How do you create personalized and relevant content for different segments
in digital marketing? www.linkedin.com. https://www.linkedin.com/advice/3/how-do-you-create-personalized-relevant-
content#:~:text=This%20involves%20choosing%20the%20right,personalization%2C%20retargeting%2C%20and%20lo
okalike.

§ Pandey, D. (2023, April 13). Importance of digital marketing in the modern business era. Aeologic Blog.
https://www.aeologic.com/blog/importance-of-digital-marketing-in-modern-business-
era/#:~:text=Digital%20marketing%20can%20help%20businesses,aware%20of%20their%20brand%20otherwise.

5
Marketing Management

LECTURE 26
Social Media
Social Media
Social media is digital technology that allows the sharing of ideas and information, including
text and visuals, through virtual networks and communities.

For example, These were the most widely used social media providers as of January 2023,
according to DataReportal:
§ Facebook (2.96 billion users)
§ YouTube (2.51 billion users)
§ WhatsApp (2 billion users)
§ Instagram (2 billion users)
§ WeChat (1.31 billion users)
§ TikTok (1.05 billion users)
§ Facebook Messenger (931 million users)
§ Douyin (715 million users)
§ Telegram (700 million users)
§ Snapchat (635 million users)

Objectives of Social Media

People are using social media for a variety of reasons. The four main uses of social media form the
acronym SLIM: sharing, learning, interacting, and marketing.
§ Sharing: On social media, you can share information and ideas in various ways, including text,
images, videos, and links. Your posts can be either private or public, depending on your
audience and the situation.

§ Learning: Social media also functions as a valuable learning tool. You can stay updated on the
activities of your friends and family, as well as global events. Social media's real-time nature
enables you to access breaking news faster than traditional media outlets.

§ Interacting: Social media offers a powerful interactive platform. It breaks down geographical
and time barriers, allowing you to connect with people around the world through video chats,
text messages, and digital communication on various platforms.

§ Marketing: Businesses, nonprofits, and individuals utilize social media for marketing
purposes. It's a means to promote products, raise funds, find job opportunities, and advocate
for causes that matter to you.

Later is a cloud-based marketing software that enables organizations to manage and schedule
posts on Facebook, Twitter, Instagram, Pinterest, and other social networks. The platform includes
a visual content calendar, which allows users to handle scheduled posts and automatic publishing
via a unified portal.

2
How to Schedule Social Media Posts
with Later?
Some social media platforms have their own built-in social media scheduling tools but it's easier
and more efficient to use a single app, like Later, to schedule all your social media posts.

Here’s how to get started:

Step 1: Connect Your Social Profiles

§ Log in to Later on the Web.
§ Go to ‘Settings’ and select ‘Social Sets & Access Groups.’
§ Click ‘Add Social Profile’ and choose the social platform you want to connect to. Follow the
necessary steps for each platform.

Step 2: Upload Media to the Media Library

§ Drag and drop photos and videos from your computer, Dropbox, or Google Drive into your Later
Media Library.
§ Alternatively, click ‘Manage Your Media’ on the Later dashboard and click ‘Upload Media’.

Step 3: Add Content to Your Calendar

§ Drag the content you want to schedule (images, videos, etc.) from your Media Library to the
content calendar.
§ Customize posts for multiple platforms and set the publishing time for each.

Step 4: Optimize Your Social Media Posts

§ Write your caption, use emojis, and add relevant hashtags to increase engagement.
§ Enhance your posts by clicking ‘Edit Image’ or ‘Edit Video’.
§ Use the crop tool to ensure your content meets platform-specific dimension requirements.
§ Utilize Later's Saved Captions tool to access caption templates and hashtags quickly.

Step 5: Schedule Your Post

§ Set the date and time for your post to go live on the relevant social platform.
§ Click ‘Save’.

Let’s understand about the YouTube Channels.

3
YouTube Channel
A YouTube channel is a dedicated space on the
YouTube platform where users can upload,
organize, and share videos. It serves as a content
hub for creators to connect with their audience,
build a subscriber base, and showcase their video
content to the world.

There are several types of YouTube channels,

each catering to different interests and content
genres. Here are some common types of
YouTube channels:

§ Vlogging Channel: Vloggers (video bloggers) create content that primarily consists of their
daily life experiences, travels, and personal stories. Vlogging channels often offer a glimpse
into the creator's life.

§ Educational Channel: Educational channels provide informative and instructional content on

a wide range of subjects, such as science, history, technology, or DIY tutorials. These channels
aim to teach and inform their viewers.

§ Entertainment Channel: Entertainment channels focus on creating entertaining content,

which may include comedy sketches, parodies, short films, and web series. These channels
aim to make viewers laugh or captivate them with engaging stories.

§ Gaming Channel: Gamers share video game-related content, including gameplay videos,
reviews, walkthroughs, and live streams. These channels cater to the gaming community and
enthusiasts.

§ Beauty and Fashion Channel: Beauty and fashion channels provide makeup tutorials, skincare
routines, fashion tips, and product reviews. These channels often feature beauty and style
influencers.

§ Cooking and Food Channel: Cooking and food channels offer various culinary content,
including cooking tutorials, recipe demonstrations, food reviews, and restaurant visits. They
appeal to food enthusiasts and aspiring chefs.

§ Tech and Review Channel: Tech channels focus on reviewing gadgets, electronics, and
technology products. They provide insights, comparisons, and recommendations for tech-savvy
audiences.

§ Health and Fitness Channel: Health and fitness channels feature workout routines, dietary
advice, and wellness tips. They target viewers looking to improve their physical and mental
well-being.

§ Travel Channel: Travel channels showcase travel experiences, destination reviews, and travel
tips. Creators share their adventures and inspire viewers to explore new places.

4
§ Music Channel: Musicians and music enthusiasts use YouTube to share music videos,
cover songs, original compositions, and live performances. It's a platform for showcasing
musical talent.

§ News and Commentary Channel: These channels focus on providing news updates,
commentary, and analysis on current events, politics, or specific topics. They aim to inform
and engage viewers in discussions.

§ Lifestyle Channel: Lifestyle channels encompass a wide range of topics, including home
decor, parenting, relationships, and personal development. Creators share advice and
experiences related to everyday life.

§ Pet Channel: Pet channels feature content centered around animals, including pet
care tips, cute animal videos, and vlogs featuring pets. They appeal to animal lovers.

Let’s see what a video thumbnail is.

Video Thumbnail
A video thumbnail is a small image that represents and previews the content of a video. Thumbnails
serve as a visual teaser or snapshot of what viewers can expect to see when they click on the video.
These images are typically displayed alongside video titles and descriptions in search results, on
video-sharing platforms like YouTube, and in playlists.

Video thumbnails are essential for attracting viewers and encouraging them to click on the video. A
well-designed thumbnail can convey the video's subject, capture the viewer's interest, and
potentially lead to more views. Here are some key aspects of video thumbnails:

§ Relevance: The thumbnail should accurately reflect the content of the video. It should convey
the main topic or theme to ensure that viewers who click on it are genuinely interested in the
content.

§ Eye-catching: Thumbnails should be visually appealing and stand out. Bright colors, high
contrast, and compelling imagery can help grab the viewer's attention.

§ Clarity: Thumbnails should be clear and easy to understand, even in a small size. Avoid
cluttered or confusing visuals.

§ Text: While not always necessary, adding concise and relevant text to the thumbnail can
provide context and entice viewers. This text may include a title, branding, or a brief
description.

§ Consistency: Maintaining a consistent style or branding for thumbnails across your channel
can help viewers recognize your content more easily.

§ High Quality: Use high-resolution images for your thumbnails to ensure they look professional
and appealing.

5
Let’s understand the Influencer marketing campaign and identify potential influencers.
Influencer marketing campaigns are strategic collaborations between businesses or brands and
individuals (influencers) who have a significant and engaged following on social media or other
platforms. These campaigns promote products, services, or messages to a target audience through
the influencer's authentic endorsement and content.

Identifying potential influencers and executing a successful campaign involves several key steps
such as:

1. Define Your Goals: Begin by clearly outlining your campaign objectives. Are you looking to
increase brand awareness, drive sales, gain social media followers, or achieve other specific
goals? Understanding your objectives will help you identify the right influencers and measure
success.

2. Identify Your Target Audience: Determine your target demographic and audience
preferences. Knowing who your potential customers are will guide you in finding influencers
who align with your brand and can reach your desired audience.

3. Research Relevant Influencers: Look for influencers who have an audience that matches your
target demographic. You can use various tools and methods to find potential influencers:

§ Social Media Platforms: Search for relevant hashtags or keywords on platforms like
Instagram, YouTube, TikTok, or Twitter to discover influencers in your niche.
§ Influencer Marketing Platforms: Use influencer marketing platforms and databases that
provide data on influencers, their audience size, engagement rates, and more.
§ Google Search: Conduct online searches to identify influencers who may have a blog or
website relevant to your industry.

4. Evaluate Influencer Authenticity: It's crucial to assess the authenticity of potential

influencers. Check their content for genuine engagement, quality, and a consistent theme that
aligns with your brand values.
5. Analyze Engagement Metrics: Review an influencer's engagement metrics, such as likes,
comments, shares, and follower growth over time. High engagement rates often indicate a
more dedicated and active audience.
6. Reach Out and Build Relationships: Once you've identified potential influencers, initiate
contact. Send personalized messages explaining your campaign, how it aligns with their
content, and what's in it for them. Building a positive and mutually beneficial relationship with
influencers is key to a successful partnership.
7. Define Compensation and Expectations: Discuss compensation, expectations, content
guidelines, and any other campaign details with the chosen influencers. Be clear about what
you expect in terms of content, posting schedule, and key performance indicators (KPIs).
8. Monitor and Measure Results: Throughout the campaign, keep an eye on performance metrics,
such as engagement, website traffic, conversion rates, and sales. Evaluate the effectiveness of
the campaign against your predetermined goals.

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9. Legal and Disclosure Considerations: Ensure that influencers disclose their relationship with
your brand, as required by advertising regulations in various countries. Compliance with
relevant laws and ethical standards is crucial.
10. Foster Long-Term Relationships: Building long-term relationships with influencers can lead to
ongoing collaborations and a more loyal and dedicated audience.

Now, understand the YouTube Analytics.

YouTube Analytics
YouTube Analytics is a comprehensive data and insights tool provided by YouTube to content
creators and channel owners. It offers a detailed analysis of the performance of a YouTube channel
and its videos, helping creators make informed decisions to improve content, engage with the
audience, and grow their channel.

YouTube Analytics provides data on various aspects, including:

§ Views
§ Watch Time
§ Audience Demographics
§ Traffic Sources
§ Audience Retention
§ Engagement Metrics
§ Subscribers
§ Revenue and Monetization
§ Playback Locations
§ Traffic Devices
§ Live Streaming Metrics
§ Search Keywords

Here's how to access and use YouTube analytics:

§ Step 1: Log in to your YouTube account and click on your profile icon in the top right corner.

§ Step 2: Select ‘YouTube Studio’.

§ Step 3: You'll find basic analytics on the YouTube Studio dashboard. For more detailed
information, go to the left menu and click on the ‘Analytics’ icon.

§ Step 4: In the analytics section, you can see an overview of your channel's performance or
explore specific areas like content, audience, and research.

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§ Step 5: For even more detailed data, click on ‘Advanced Mode’ in the upper right corner. This
will provide you with in-depth channel metrics, video-specific data, and advanced analytics.

§ Step 6: To download a report, select the metrics you want to track in Advanced Mode, then
click the downward-pointing arrow in the upper right corner. Choose ‘Google Sheets’ or a ‘.csv
file’ to generate your report.

References:

§ The purpose of social media. (n.d.). Thoughtful Learning. https://thoughtfullearning.com/inquireHSbook/pg271

#:~:text=People%20are%20using%20social%20media,learning%2C%20interacting%2C%20and%20marketing.
§ Demeku, A. (2023, August 2). Scheduling social media posts: What you need to know in 2023 | later.
https://later.com/blog/social-media-scheduler/
§ Karch, M. (2021, July 27). What is a YouTube channel? Lifewire. https://www.lifewire.com/channel-youtube-
1616635#:~:text=A%20channel%20is%20a%20member's,visit%20that%20person's%20personal%20channel.
§ Cartay, L. (2023, April 12). How to Find the Perfect Social Media Influencer For Your Brand or Product. Flowbox.
https://getflowbox.com/blog/how-to-find-influencers/
§ What is influencer marketing? | Mailchimp. (n.d.). Mailchimp. https://mailchimp.com/resources/what-is-influencer-
marketing/#:~:text=worth%20looking%20into.-,What%20is%20influencer%20marketing%3F,media%20on%
20a%20daily%20basis.
§ https://blog.hootsuite.com/youtube-analytics/. (n.d.). https://blog.hootsuite.com/youtube-analytics/.

8
Marketing Management

LECTURE 27
SEO
Search engine optimization (SEO)
is a set of methods aimed at improving the ranking
of a website in search engine listings. It
could be considered a subset of Internet or
Web marketing.

The primary objectives of SEO are:

§ Increase Visibility: SEO aims to improve a website's ranking in search engine results pages
(SERPs) so that it appears higher when users search for relevant keywords.

§ Drive Organic Traffic: The goal is to attract more organic, non-paid traffic to the website, as
higher visibility can lead to more clicks.

§ Enhance User Experience: SEO involves optimizing the website's structure, content, and
performance to create a better user experience, which can lead to higher user engagement and
conversions.

§ Build Credibility: Following SEO best practices, websites can establish authority and
credibility in their industry or niche.

§ Achieve Business Goals: Ultimately, SEO serves to achieve various business objectives, such
as increasing sales, leads, or brand awareness, by making the website more accessible and
relevant to the target audience.

Let’s understand the search engine and how it works.

A search engine is a software program that helps

people find the information they are looking for online
using keywords or phrases. Search engines work through
a complex process to provide users with relevant search
results.

Here's a simplified overview of how search engines like Google operate:

§ Crawling: Search engines use automated software called web crawlers or spiders to browse
the web. These crawlers visit websites and follow links to discover web pages.

§ Indexing: Once the web crawlers visit a web page, they analyze its content, including text,
images, and metadata. This information is then stored in the search engine's index, which is a
massive database of web page information.

2
§ Ranking: When a user enters a search query, the search engine retrieves relevant results from
its index. To determine the order of search results, search engines use complex algorithms that
consider various factors, including keyword relevance, website authority, and user experience.

Let’s differentiate between Organic and Inorganic SEO.

Inorganic or On-page SEO techniques are strategies and optimizations that you can
apply directly to your website's pages to improve search engine visibility. These techniques help
search engines understand the content and context of your pages.
Some key inorganic or on-page SEO techniques:
§ Keyword Optimization: Conduct keyword research and strategically place relevant keywords
in your content, titles, headings, and meta tags.
§ Title Tags: Create descriptive and keyword-rich title tags for each page to accurately
represent the content.
§ Meta Descriptions: Craft compelling meta descriptions that summarize the content and
encourage users to click on your search results.
§ Header Tags: Use header tags (H1, H2, H3, etc.) to structure your content and make it more
reader-friendly while incorporating keywords where appropriate.
§ Quality Content: Develop high-quality, original, and valuable content that satisfies the user's
intent and avoids duplicate content.
§ Internal Linking: Add internal links to relevant pages on your website to guide users to related
content and help search engines understand your site's structure.
§ Image Optimization: Optimize images by using descriptive file names and alt text, which can
improve image search and overall SEO.

Now, understand the Organic or Off-page SEO techniques.

Off-page SEO techniques focus on optimizing elements outside your website to improve its
search engine ranking and online authority. These techniques help establish your website's
credibility and authority in the digital landscape.
Some key organic off-page SEO techniques are:
§ Link Building: Acquiring high-quality backlinks from authoritative and relevant websites
remains one of the most critical off-page SEO techniques.

§ Social Media Engagement: Active participation on social media platforms to increase brand
visibility and engagement, which indirectly affects SEO.

§ Content Marketing: Creating valuable, shareable content that others in your industry or niche
want to link to and share.

§ Influencer Marketing: Collaborating with industry influencers to promote your content and
products.

3
§ Local SEO: Optimizing your website for local search by creating a Google My Business profile,
encouraging reviews, and maintaining consistent NAP information.

§ Online Reputation Management: Monitoring and managing online reviews, mentions, and
comments to build a positive online reputation.

§ Brand Mentions: Encouraging others to mention your brand or website in their content to
enhance your online authority.

Now, identify the best-performing keywords.

Identifying top-performing keywords is a crucial step in your

SEO strategy. These are the keywords that are likely to drive
the most organic traffic to your website and help you
achieve your goals.

Let's take Zomato as an example for identifying the best-performing keywords:

§ Goals: Zomato's main objective is to drive online food orders and help users discover
restaurants. They aim to increase user engagement and order values.
§ Keyword Research: Utilizes keyword research tools to find keywords like ‘food delivery India’,
‘best restaurants near me’, and ‘online food ordering’.
§ Competitor Analysis: Analyzes competitors like Swiggy to identify keywords that drive traffic
to their platforms.
§ Search Volume: Prioritizes keywords with substantial search volume, such as ‘food delivery in
Delhi’ and ‘restaurant reviews’.
§ Keyword Relevance: Chooses keywords directly related to food delivery and restaurant
discovery, aligning with their core services.
§ Keyword Difficulty: Select keywords with a moderate level of competition, targeting keywords
like ‘order food online’ with a reasonable chance of ranking.
§ User Intent: Recognizes that users searching for ‘best pizza in Mumbai’ may be looking for
restaurant recommendations, while ‘online pizza delivery’ indicates an intent to order food.
§ SERP Analysis: Studies the search results pages to understand the competitive landscape and
optimize content accordingly.
§ Keyword Trends: Adjusts their promotions and marketing campaigns during peak food delivery
times, like lunch and dinner hours.
§ User Engagement: Monitors click-through rates and engagement metrics, focusing on
improving user interactions with keywords like ‘discounted food delivery’.
§ Conversion Data: Tracks the performance of keywords leading to food orders and restaurant
reservations, optimizing for keywords like ‘food delivery near me’.

4
§ Content Gaps: Identifies opportunities to create content that educates users on topics like
‘choosing the right restaurant for a special occasion’.
§ Testing and Monitoring: Implements the selected keywords and continuously monitors their
performance using analytics tools to refine the strategy.
§ Iterate and Refine: Refines the keyword strategy based on the performance data, allocating
resources to keywords generating the most food orders and user engagement.

References:
§ Vont-Admin. (2021, June 21). What is Search Engine Optimization (SEO)? And Why is it Important? VONT.
https://www.vontweb.com/blog/what-is-search-engine-optimization-
seo/#:~:text=Search%20engine%20optimization%20(SEO)%20is,creates%20a%20larger%20target%20audience.
§ How Search Engines Work - Digital Marketing Lesson - DMI. (n.d.). Digital Marketing Institute.
https://digitalmarketinginstitute.com/resources/lessons/seo-setup_how-search-engines-
work_pfwa#:~:text=Three%20steps,crawling%2C%20indexing%2C%20and%20ranking.
§ Mudalige, D. (2023, June 30). Organic vs Non-Organic Search Engine Optimization explained. CloudKrest.
https://www.cloudkrest.com/organic-vs-inorganic-seo/
§ High performing Keywords - Amazon PPC Campaigns | SellerPrime. (n.d.). SellerApp Knowledge Base.
https://www.sellerapp.com/help/article/high-performing-
keywords/#:~:text=High%20performing%20keywords%20are%20the,and%20a%20low%20ACoS%20value.

5
Marketing Management

LECTURE 28
SEM
Search Engine Marketing (SEM) is a digital
marketing strategy used to increase the visibility of a
website in search engine results pages (SERPs).

Why is SEM important?

SEM is crucial because it enhances a website's visibility
on search engine results pages through paid advertising.
It ensures that your business appears prominently when
potential customers search for relevant products or
services, driving targeted traffic and increasing the
likelihood of conversions.

Let’s understand Google Ads and YouTube Ads.

Google Ads, formerly known as Google AdWords, is an online advertising platform developed by
Google. It allows businesses to create and run ads that appear on Google's search engine results
pages (SERPs) and other Google properties. The platform operates on a pay-per-click (PPC) model,
where advertisers bid on keywords, and they pay for each click on their ads.

For example, MakeMyTrip, a popular online travel company in India, utilizes Google
Ads to promote travel packages, hotel bookings, and flight deals. This helps them
maintain visibility when users search for travel-related services.

YouTube Ads is the advertising platform within Google Ads specifically designed for promoting
video content on YouTube. Advertisers can create engaging video ads that appear before, during, or
after YouTube videos, as well as alongside YouTube search results.

For example, OYO Rooms, a prominent budget hotel chain in India, has used
YouTube Ads to showcase its various hotel properties and attract travelers. Video
ads allow them to visually highlight the features and benefits of staying with OYO.

Now, understand how to craft high-impact paid media campaigns that drive results.

Crafting high-impact paid media campaigns involves a strategic approach that integrates
creativity, data-driven insights, and continuous optimization. Here's a step-by-step guide:

§ Clear Objectives are the Foundation of Success: An effective paid media strategy requires
clearly defined marketing objectives that are specific, measurable, attainable, relevant, and
time-bound, ensuring that campaigns are crafted to support desired outcomes directly.

2
§ Integration with a Broader Marketing Strategy is Crucial: Paid media campaigns should align
with the brand’s positioning, messaging, and value propositions across channels,
complementing organic tactics like SEO and content marketing for better overall performance.

§ Key Performance Indicators (KPIs) Must Align with Objectives: Selecting the right KPIs is
imperative for gauging the success of paid media campaigns, with metrics correlating with
stated campaign objectives and desired outcomes.

§ Audience Segmentation and Targeting are Critical: Thorough audience segmentation and
targeting, using tailored messaging for buyer personas based on demographics,
psychographics, interests, and behaviors are critical for impactful paid media outcomes.

§ Data and Analytics Drive Precision Targeting: Leveraging campaign data, cross-channel
analytics, and testing reveals ideal targets, placements, timing, and content, enabling
continuously refined targeting for greater campaign efficiency.

§ Choosing the Right Channels is Key: Determining the optimal advertising channels based on
campaign goals, target audiences, and KPIs is crucial for paid media success, with each
platform offering unique strengths and limitations.

§ Strategic Budget Allocation Maximizes ROI: Strategic budget allocation, informed by

historical data and ongoing performance, facilitates continual profitability optimization amidst
the complexities of digital advertising.

Now, moving on to the next topic,

Ad Budgeting and Bidding Strategies.

Effective ad budgeting involves allocating financial resources to your

advertising campaigns in a way that maximizes returns. Here are the
key considerations:
§ Set Clear Goals: Define specific marketing objectives, such as increasing sales, driving
website traffic, or raising brand awareness. Your budget should align with these goals. For
example, Byju's sets a clear goal of increasing user subscriptions for their educational app.
Their ad budget is focused on campaigns aimed at driving app downloads and registrations.

§ Understand Cost Structures: Be aware of the costs associated with different advertising
channels. Some platforms operate on a cost-per-click (CPC) model, while others use cost-per-
thousand-impressions (CPM) or cost-per-acquisition (CPA). For example, Urban Company
understands the cost structures of different advertising channels. They allocate budgets
differently for Google Ads (CPC) and Facebook Ads (CPM), considering user engagement
patterns.

§ Consider Historical Performance: Analyze past campaign performance to identify which

channels and strategies have yielded the best results. Allocate more budget to areas that have
demonstrated effectiveness. For example, Zomato analyzes past campaign performance to
identify successful strategies. They allocate more budget to campaigns that have historically
resulted in increased orders and user engagement.

3
§ Allocate Budget Across Campaigns: If running multiple campaigns, distribute your budget
based on the priority and goals of each campaign. High-priority or high-converting campaigns
may warrant a larger share of the budget. For example, PolicyBazaar, running campaigns for
various insurance products, allocates a budget based on the priority and goals of each
campaign, whether it's health insurance or car insurance.

§ Account for Seasonality: Consider seasonality or fluctuations in demand for your products or
services. Adjust your budget accordingly to capitalize on peak periods or navigate slower
seasons. For example, BigBasket adjusts its ad budget to account for seasonality in the
grocery industry. They increase budgets during festive seasons to capitalize on higher demand.

§ Monitor and Adjust: Regularly monitor campaign performance and adjust your budget as
needed. Increase budgets for well-performing campaigns and reallocate funds from
underperforming ones. For example, Myntra regularly monitors campaign performance and
adjusts budgets. They may increase the budget for specific fashion categories based on real-
time demand and sales data.

Bidding strategies determine how you pay for interactions with your ads. Here are some common
bidding strategies:

§ Cost-Per-Click (CPC): Pay when a user clicks on your ad. Suitable for driving traffic to your
website or landing pages. For example, Ola utilizes CPC bidding to pay for clicks on their ride-
hailing service ads, aiming to drive traffic to their app and increase ride bookings.

§ Cost-Per-Mille (CPM): Pay per thousand impressions. Ideal for campaigns focused on brand
visibility and awareness. For example, Lenskart may use CPM bidding for campaigns focused
on brand visibility, ensuring their eyewear ads are seen by a large audience.

§ Cost-Per-Acquisition (CPA): Specify the amount you're willing to pay for a specific action,
such as a purchase or lead. Suitable for campaigns with clear conversion goals. For example,
PharmEasy employs CPA bidding, specifying the amount they are willing to pay for each new
customer acquisition through their healthcare product ads.

§ Target Cost-Per-Acquisition (Target CPA): Set a target cost per conversion, and the platform
adjusts bids to achieve that target. Effective for maximizing conversions within a specified
budget. For example, Blinkit (formerly Grofers) sets a target CPA for acquiring new users on
their grocery delivery app, allowing the platform to adjust bids to efficiently achieve this
target.

§ Maximize Clicks: Allows the platform to automatically set bids to get the most clicks within
your budget. Suitable for campaigns focused on driving website traffic. For example, Pepperfry
uses the ‘Maximize Clicks’ bidding strategy to drive maximum clicks to their furniture product
pages within a specified budget.

§ Enhanced Cost-Per-Click (ECPC): Allows the platform to adjust manual CPC bids to maximize
conversions. Useful for balancing manual control with automated bid adjustments. For
example, Cleartrip employs ECPC to allow the platform to automatically adjust manual CPC
bids to maximize conversions for their travel booking campaigns.

4
§ Target Return on Ad Spend (ROAS): Set a target ROAS, and the platform adjusts bids to meet
that goal. Ideal for e-commerce businesses looking to optimize for revenue. For example,
Paytm Mall, being an e-commerce platform, may use a target ROAS strategy to optimize for
revenue and ensure a profitable return on their ad spend.

Now, understand the Pay-per-click (PPC) Advertising.

PPC, or pay-per-click, is an online advertising model where

advertisers pay a fee every time someone clicks on their ad. It's also
known as the cost-per-click (CPC) model. This model is commonly
offered by search engines like Google and social networks such as
Facebook and Twitter.

Commonly, pay-per-click advertising rates are determined using the flat-rate model or the bid-
based model.
§ Flat-rate Model: Advertisers pay a fixed fee for each click. Publishers often have different
rates for various parts of their websites. Negotiations on prices are common, especially for
long-term or high-value contracts. For example, The Times of India (TOI) Online may adopt a
flat-rate model where advertisers pay a fixed fee for each click on their ads in specific sections
like ‘Business’ or ‘Entertainment’.

§ Bid-based Model: Advertisers bid on the maximum amount they are willing to pay for an ad
spot. An automated auction takes place whenever a visitor triggers the ad. The winner is
determined by both the bid amount and the quality of the ad content. Content relevance is as
important as the bid amount in winning the auction. For example, MakeMyTrip, a leading online
travel company in India, could utilize a bid-based model for their PPC campaigns. For instance,
they bid on ad spots related to travel destinations, and the winner is determined by the bid
amount and the relevance of the ad content. If MakeMyTrip's ad is more compelling, it secures
the ad placement.

Now, see the Product Listing Ads and Campaign Optimization.

Product Listing Ads (PLAs): Product Listing Ads are a type of online advertising format
used by e-commerce businesses to showcase specific products directly in search engine results.
They typically include an image of the product, a product title, the business name, and the price.
PLAs are commonly used on platforms like Google Shopping.

What is ad campaign optimization?

Ad campaign optimization is the process of improving the performance of advertising campaigns

by making adjustments to certain facets to achieve desired business outcomes. Among the ad
campaign strategies are keyword usage/optimization, audience targeting, dynamic search ads, and
engaging ad copy.

5
Let’s understand the Ad Strategies and Ad Analytics.

The term advertising strategy refers to a brand's long-term plan to reach its target audience. A
marketing strategy encompasses products and pricing offered, as well as brand marketing and the
promotion of products.

Here are four steps to get started with creating the template for a marketing strategy for your
brand:
§ Step 1: Discover Opportunities
Understand what your customers need and find opportunities to reach new ones. Research
existing products in the market to avoid creating something customers don't want.

§ Step 2: Outline Business Goals

Identify the problem your brand wants to solve. Decide on tactics, channels, and audiences for
your marketing. Consider collaborations with other brands to expand reach.

§ Step 3: Launch Products

Once you know your audience's needs, launch a new product. Use a go-to-market plan to
outline the steps. Planning beforehand increases the chances of a successful product launch.

§ Step 4: Analyze Results

§ Monitoring: Keep an eye on growth metrics like reach and sales. Use relevant metrics and
key performance indicators (KPIs) to measure success. Utilize SEO to reach customers
actively searching for products.
§ Feedback and Adaptation: Pay attention to feedback from customers and your team.
Analyze what worked and what didn't. Update your goals and strategy based on this
feedback for long-term success.

In Search Engine Marketing (SEM), advertising analytics is the Sherlock Holmes of the digital
world. It's the process of using tools to investigate and understand how well a company's ads are
performing in search engine results.

Here's a simplified breakdown:

Investigation in SEM:
§ Tool Usage: Marketing folks use digital tools to analyze data from their SEM campaigns. These
tools dig into details like how often people see the ads and if they click on them.

6
§ Effectiveness Measurement: The goal is to figure out how effective the ads are. Are they
reaching the right people, and are those people taking the desired actions, like clicking on the
ad or making a purchase?

§ Channel Assessment: SEM often involves various channels, like paid search ads on platforms
such as Google Ads. Analytics helps in understanding which channels are bringing in the most
value and where adjustments are needed.

§ Optimizing Strategy: Armed with insights from analytics, marketers can fine-tune their SEM
strategy. This could mean adjusting keywords, refining ad copy, or reallocating the budget to
get the best results.

References:
§ What is search engine marketing (SEM)? (n.d.). Optimizely. https://www.optimizely.com/optimization-
glossary/search-engine-
marketing/#:~:text=Search%20engine%20marketing%20(SEM)%20is,engine%20results%20pages%20(SERPs).
§ Brito, M. (2023, October 28). How to Craft High-Impact Paid Media Campaigns that Drive results. Michael Brito.
https://www.britopian.com/data/paid-media-campaigns/
§ Digitalhill. (2019, July 16). Introduction to YouTube ads. Digital Hill Multimedia, Inc.
https://www.digitalhill.com/blog/introduction-to-youtube-ads/
§ Team, C. (2022, December 5). Pay-Per-Click (PPC). Corporate Finance Institute.
https://corporatefinanceinstitute.com/resources/valuation/pay-per-click-ppc/
§ What’s a marketing strategy? Here’s how to make a great one. (2023, November 9). Amazon Ads.
https://advertising.amazon.com/library/guides/marketing-
strategy#:~:text=What%20is%20an%20advertising%20strategy,and%20the%20promotion%20of%20products.
§ https://www.indeed.com/career-advice/career-development/what-is-advertising-analytics. (n.d.).
https://www.indeed.com/career-advice/career-development/what-is-advertising-analytics.

7
 Marketing Management

LECTURE 29
Facebook/ Instagram
Advertisement
Social media advertising is a type of digital marketing
strategy that uses social networks, such as LinkedIn, YouTube,
Facebook, X (formerly Twitter), TikTok, and Instagram, to deliver
paid ads to your target audience.

A social media ad campaign is a quick and effective way to

communicate your value proposition to your prospects and
improve your brand recall. You can even hyper-target your
audiences and deliver personalized content using data and
analytics. Social media ads are also cost-effective, offering a
great return on investment compared to traditional advertising
channels.

For example, Swiggy, the food delivery champion in India, spices up social media with tempting
visuals and quick delivery promises, making your favorite dishes just a click away!

Benefits of Social Media Advertising

Using social media ads is like having a secret weapon for your brand:
§ Achieve a wider reach: Reach a massive audience beyond your regular followers, expanding
into new markets that old-school ads might miss.

§ Refine your target audience: Hit the bullseye with your ads by aiming at your ideal audience
whether they've visited your website, bought from you before, or just can't resist your awesome
products.

§ Improve engagement: It's not just about posting; it's about sparking real connections. Social
media ads turn passive scrolling into likes, comments, shares, and clicks, making your brand
the life of the online party.

§ Attain measurable business outcomes: Know the nitty-gritty details of your ad's success in
real time. From views to clicks to actual purchases, you get the data to tweak your strategy and
make those ads work harder for you.

§ Save a considerable amount of money: Save big bucks compared to old-school ads. Social
media ads are budget-friendly, and you can tailor your spending. It's like getting a high-
powered ad campaign without breaking the bank.

Let’s understand the targeting options and different Ad

formats in Facebook and Instagram Ads.

Following are the targeting options and ad formats for

Facebook and Instagram Ads:

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Targeting Options
§ Demographics: Reach people based on age, gender, education, job title, relationship status,
and more. For instance, if you're selling professional attire, you might target young
professionals aged 25-35.

§ Location Targeting: Specify where your audience is located. Perfect for local businesses, you
can target a city, country, or even a radius around a specific address.

§ Interests: Define your audience by their interests, hobbies, and pages they follow. If you're
selling fitness gear, target those interested in health and wellness.

§ Behavior: Target based on user behavior, like purchase history or device usage. An electronics
store might target users who recently purchased a new smartphone.

§ Custom Audiences: Reach people who have interacted with your business before. This could be
past customers, website visitors, or app users.

§ Lookalike Audiences: Find new people who are likely to be interested in your business because
they're similar to your existing customers.

Ad Formats
§ Image Ads: Simple and effective, these ads use compelling visuals to convey your message.
Great for showcasing products or brand imagery.

§ Video Ads: Engage your audience with dynamic video content. Perfect for telling a story,
demonstrating products, or sharing behind-the-scenes glimpses.

§ Carousel Ads: Display multiple images or videos in a single ad, allowing users to swipe through.
Ideal for showcasing a range of products or highlighting different features.

§ Slideshow Ads: Create lightweight video ads using a series of images. A good option for
businesses without video production resources.

§ Collection Ads: Encourage shopping by displaying a catalog of products within the ad. Users
can click to browse and buy without leaving the platform.

§ Instant Experience Ads (formerly Canvas): Provide a full-screen, mobile-optimized

experience, combining images, videos, and interactive elements. Keeps users engaged within
the ad.

§ Story Ads: Appearing in the Facebook and Instagram stories, these ads are immersive, full-
screen experiences. Great for capturing attention in a more casual, storytelling format.

Now, understand how to analyze ad performance and marketing improvements in Facebook/

Instagram Ads.
Once your Facebook or Instagram ads are up and running, the real magic happens when you analyze
their performance and make strategic improvements. Here's a step-by-step guide:

3
§ Monitor Key Metrics: Keep an eye on metrics like click-through rate (CTR), conversion rate,
reach, and engagement. These metrics give you insights into how well your ads are resonating
with your audience.

§ Check Audience Insights: Use Facebook Insights to understand the demographics, interests,
and behaviors of the people engaging with your ads. This helps in refining your target audience
for better results.

§ A/B Testing: Experiment with different ad variations. Test different images, ad copy, headlines,
and call-to-action to see which combinations perform the best. This helps you optimize for
what resonates most with your audience.

§ Conversion Tracking: If your goal is to drive specific actions (like purchases or sign-ups), set up
conversion tracking. This allows you to see which ads are directly contributing to these actions
and adjust your strategy accordingly.

§ Budget Allocation: Analyze the budget allocation across different ads and campaigns. Identify
high-performing ads and consider reallocating more budget towards them for better results.

§ Ad Placement Review: Evaluate the performance on different placements (Facebook feed,

Instagram feed, Stories, etc.). Some ads might perform better in certain placements, so adjust
your strategy accordingly.

§ Ad Schedule Optimization: Identify the times and days when your audience is most active.
Adjust your ad schedule to ensure your ads are shown when they are likely to get the most
visibility and engagement.

§ Ad Creative Refresh: Keep your content fresh. If you notice a drop in engagement, it might be
time to update your visuals or messaging to keep your audience interested.

§ Engage with Comments: Respond to comments and messages promptly. Engaging with your
audience not only builds a community but also signals to the algorithm that your content is
relevant and valuable.

§ Learn from Analytics: Use the analytics and insights provided by Facebook to understand how
users are interacting with your ads. Identify patterns and use this data to inform your future ad
strategy.

Now, coming on to the next topic, Ad analytics on

Facebook/Instagram.

Ad Analytics on Facebook/Instagram
Facebook/Instagram ads are like exploring a maze. Here's a
simple guide to help you understand how well your ads are
doing:
§ Ad Clicks: Ad clicks are the total number of times people
on Facebook/Instagram tapped on your ads, no matter
where they appeared—whether in stories or the feed.

4
§ Cost Per Click (CPC): CPC is the price tag for each click. It tells you how much you're paying
every time someone takes action and clicks on your ad.

§ Impressions: Impressions are the headcount of your ads showing up on Instagram. It counts
every time your ad is in the spotlight for users to see.

§ Cost Per Thousand (CPM): CPM is like the cost of admission for your ad to be seen by a
thousand people. It measures how much you spend for a thousand impressions.

§ Return on Ad Spend (ROAS): ROAS is your money's report card. It tells you the percentage of
revenue you're getting back for every dollar you spend on ads.

§ Click-Through Rate (CTR): CTR is your ad's popularity contest. It shows the percentage of
Instagram users who not only saw but were curious enough to click on your ad.

§ Conversion Rate: Conversion rate is the success rate. It's the percentage of Instagram users
who did what you wanted them to do, like buying a product.

§ Top Campaigns: Top campaigns are the superheroes of your ads. They're the ones that perform
the best, often based on how many people take action and convert.

References:
§ Moorthi, V. (2023, September 28). Social Media Advertising: In-Depth Guide and Proven Tips (2023).
https://www.sprinklr.com/cxm/social-media-
advertising/#:~:text=On%20the%20other%20hand%2C%20social,to%20reach%20specific%20audience%20segme
nts.
§ 15 successful Facebook ad targeting tips. (2022, March 22). Shopify. https://www.shopify.com/blog/15-facebook-ad-
targeting-tips-to-maximize-your-roi
§ Log in or sign up to view. (n.d.). https://en-
gb.facebook.com/business/help/318580098318734?id=369013183583436
§ Mastering Instagram Ads Analytics: How to track & Optimize ad Campaigns | DashThis. (n.d.). DashThis.
https://dashthis.com/blog/instagram-ads-
analytics/#:~:text=To%20access%20your%20Instagram%20ad,and%20accounts%20reached%20and%20engaged.

5
 Marketing Management

LECTURE 30
Email, SMS, and
Whatsapp Marketing
Email is a digital communication method for sending
messages and files over the internet using email
addresses.

Email segmentation is the division of email marketing

subscribers into smaller groups based on specific
criteria. Segmentation is a core email marketing
tactic. It’s a basic personalization tactic that allows
you to deliver relevant content to your subscribers.

There are five key ways brands should be segmenting email marketing lists.
§ Demographics: Use information like age, gender, marital status, and job title collected during
the signup process to create segments. Gathering more details early on allows for more
advanced segmentation. For example, Titan Company Limited, a leading watch and jewelry
manufacturer, can segment its email list based on age and gender. For instance, they might
send separate email campaigns for their men's and women's watch collections.

§ Geographical: Consider your subscribers' locations, which can be crucial for businesses with
physical stores or delivery services. This approach can encourage spontaneous decisions from
customers seeking convenience. For example, Flipkart, one of the largest e-commerce
platforms, can segment its customer base based on its locations. This can help them send
location-specific offers and promotions to drive sales in particular regions.

§ Marketing Preferences: Always collect marketing preferences, like the topics they're
interested in and how often they want to hear from you. Encourage customers to update their
preferences during the welcome series or re-engagement programs to boost engagement. For
example, the Times of India, a prominent news organization, allows subscribers to choose their
areas of interest, such as politics, business, or entertainment. They can send customized news
updates based on these preferences.

§ Email Engagement: Leverage email engagement metrics, such as open rates and click-through
rates, to segment users based on how they interact with your emails: target non-openers or
those who click specific links for better results. For example, MakeMyTrip, a popular online
travel company, can segment its users based on their interaction with previous emails. Users
who frequently open and click on travel deals can receive personalized offers and
recommendations.

§ Behavioral: This is the most advanced segmentation method, based on customer behavior on
your website or other channels. Consider factors like specific page visits, frequency of visits,
recent activity, purchase history, and average order value to create highly personalized email
segments. This approach adds a personalized touch to your email marketing. For example,
Amazon India, the Indian branch of the global e-commerce giant, can use behavioral
segmentation to recommend products based on a user's browsing and purchase history. For
instance, if a user often shops for electronics, Amazon can send emails with tech-related
product suggestions.

2
Here are some simplified tips for creating a successful email marketing campaign:
§ Choose a Relevant Email List: Send your emails to the right people, segmenting by factors like
location, age, and gender. Avoid buying email lists.

§ Design Your Email: Ensure your email looks good by applying your branding, adding white
space, using images, and making it responsive for both desktop and mobile.

§ Personalize Your Email: Use subscriber data to tailor subject lines, content, and design for a
more personal touch, like using subscriber names and locations.

§ Be Conversational: Talk to your subscribers like people, not businesses, to build better
relationships and engagement.

§ Create Follow-ups: Sometimes, one email isn't enough. Use follow-up emails to nurture and
convert subscribers, but be careful not to overdo it.

§ Send Emails from a Real Person: Use a recognizable sender name to sound more human and
land in subscribers' inboxes.

§ A/B Test Your Emails: Test different email versions to find out what works best for your
audience.

§ Follow Email Regulations: Comply with spam regulations, like CAN-SPAM and GDPR, to avoid
penalties and maintain ethical email practices.

§ Track Email Campaign Success: Monitor key metrics like open rate, click-through rate, bounce
rate, unsubscribes, and spam complaints to evaluate your campaign's effectiveness and make
improvements.

Let’s understand the SMS Marketing.

SMS Marketing
Implementing different types of SMS marketing tactics can
help businesses effectively engage with their target audiences
and drive sales growth. Explore eight common types of SMS
marketing to build an efficient strategy.

§ Opt-in Requests: These are messages where customers give explicit consent to receive
promotional content. For example, ‘Opt-in Requests’, a popular company like Amazon can ask
customers to opt-in for personalized product recommendations via SMS.

§ Promotional Messages: Common SMS marketing messages that inform customers about
special offers. For instance, a retail store might send, ‘Flash Sale Alert! Get 20% off all items
this weekend. Show this text at checkout.’ For example, in ‘Promotional Messages,’ Walmart
can send text alerts about their weekly deals and discounts.

3
§ Transactional Messages: These messages provide information related to a customer's
purchase, like order updates or shipping details. An e-commerce site could send, ‘Your order
#12345 has been shipped. Track your package here.’ For example, ‘Transactional Messages’
could be sent by Uber to update users about their ride status.

§ Loyalty Programs and Rewards Updates: Messages that offer rewards or incentives to loyal
customers. For example, a coffee shop might text, ‘You've earned a free coffee! Visit us today
to claim your reward.’ For example, Starbucks often uses ‘Loyalty Programs and Rewards
Updates’ to offer free drinks or discounts to their loyal customers.

§ Contests and Giveaways: SMS campaigns where customers can participate in contests or win
prizes by texting a keyword. An online retailer might run a contest: ‘Text 'WIN2023' for a
chance to win a $100 gift card.’ For example, ‘Contests and Giveaways’ can be seen with
companies like Coca-Cola, where customers text to participate in sweepstakes.

§ Surveys and Polls: Businesses can send surveys and polls to collect feedback and insights. An
airline could ask, ‘How was your recent flight with us? Reply with a rating from 1 to 5.’ For
example, Companies like American Airlines can use ‘Surveys and Polls’ to gather passenger
feedback.

§ Geofencing Notifications: Messages sent when customers enter or leave specific geographic
areas. For instance, a restaurant near a stadium might send, ‘Game day special: 10% off for the
next hour when you're near the stadium!’ For example, ‘Geofencing Notifications’ are employed
by businesses like McDonald's to alert nearby customers about special offers.

§ Alerts and Notifications: These messages inform customers about product availability or
abandoned carts. An online store might text you, ‘Your favorite item is back in stock! Click the
link to purchase now.’ For example, ‘Alerts and Notifications’ are commonly used by e-
commerce companies like Zappos to inform customers about product restocks or abandoned
carts.

Here are some examples of concise and impactful SMS messages with personalized content:

§ Retail Promotion
"Hi [Customer Name], 24-Hour Sale Alert! 🎉 Enjoy 20% off on your favorite products today. Use
code: SAVE20 at checkout. Shop now at [Store Link]."

§ Restaurant Offer
"Hey [Customer Name], your table is ready at [Restaurant Name]. As a loyal customer, here's a
10% discount on your bill tonight. Join us at [Restaurant Address]."

§ E-commerce Shipping Update

"Hello [Customer Name], your order #[Order Number] has shipped! 🚚 Track your package's
journey here: [Tracking Link]."

4
§ Car Service Reminder
"Hi [Customer Name], it's time for your car's service! Book now at [Service Center] and get 15%
off your next visit. Reply 'BOOK' to schedule."

§ Gym Membership Renewal

"Hey [Customer Name], your fitness journey matters. Renew your gym membership for another
year and get a bonus month FREE! Reply 'RENEW' for details."

Now, let’s come to WhatsApp Marketing.

WhatsApp Marketing
WhatsApp Marketing is promoting your products and services
on the WhatsApp channel to drive sales and revenue for the
brand by sending various available types of messages,
building brand authenticity, and providing instant customer
support solutions on a platform where 2.4 billion global users
spend approximately 18.6 hours per month.

Engaging customers through personalized WhatsApp

messages can be a highly effective way to build strong
relationships and boost customer loyalty. Here are some
strategies and examples for engaging customers through
personalized WhatsApp messages:

§ Welcome Messages
Send a warm welcome message to new customers, thanking them for choosing your business.
Personalize it with their name and express your commitment to their satisfaction.
Example: "Hi [Customer Name], welcome to [Your Business]! We're thrilled to have you with us. If
you have any questions or need assistance, feel free to reach out anytime."

§ Order Updates
Provide real-time updates on orders, deliveries, or service appointments. Share tracking information
and estimated arrival times.
Example: "Good news, [Customer Name]! Your order #[Order Number] is out for delivery and will
arrive at your doorstep by [Estimated Time]."

§ Personalized Recommendations
Analyze customer preferences and purchase history to offer personalized product or service
recommendations.

5
Example: "Hi [Customer Name], based on your recent purchase of [Product], you might also like
[Related Product]. Check it out here: [Product Link]."

§ Exclusive Offers
Send special offers or discounts tailored to the customer's interests and buying habits.
Example: "Hey [Customer Name], here's an exclusive 15% discount on your next purchase. Use
code: SAVE15 at checkout. Happy shopping!"

§ Feedback Requests
Seek feedback on recent experiences or purchases to show you value their opinion.
Example: "We hope you enjoyed your recent visit, [Customer Name]. Please take a moment to share
your feedback with us. Your opinion matters!"

Let’s understand how to utilize broadcast lists and groups for targeted communication.

Utilizing broadcast lists and groups for targeted communication on WhatsApp can help businesses
streamline their messaging efforts and reach specific audiences more effectively. Here's how to use
these features:

A broadcast list allows you to send messages to multiple contacts without creating a group.
However, recipients in a broadcast list don't see the other recipients, and they can't reply to the
group. This is great for sending announcements or updates to a select group of contacts. Here's
how to create and use broadcast lists:

§ Create a Broadcast List

§ Open WhatsApp
§ Tap on ‘Chats’ at the bottom of the screen
§ Tap the three dots in the top-right corner and select ‘New broadcast’
§ Add contacts to the list
§ Tap ‘Create’
§ Send a Message
§ Compose your message and send it to the broadcast list
§ The message will be sent to all contacts in the list individually

WhatsApp groups are a more interactive way to communicate with a defined set of people. You can
create groups for various purposes, such as customer support, project collaboration, or community
engagement. Here's how to create and use groups effectively:

§ Create a Group
§ Open WhatsApp

6
 § Tap on ‘Chats’ at the bottom of the screen
§ Tap the "New group" option
§ Add group members by selecting contacts from your list
§ Choose a group name and add a profile picture
§ Tap ‘Create’

§ Set Group Rules and Description

§ Consider setting group rules and a description to provide context and guidelines for
members.

§ Engage with the Group

§ Use the group to have discussions, share updates, and collaborate with members.
§ Encourage members to ask questions and provide feedback.

• Administer the Group

§ As a group admin, you can manage group settings, add or remove members, and enforce
group rules.

References:
§ Ebisan, T. (2023, October 12). What is email segmentation? Dotdigital. https://dotdigital.com/blog/what-is-email-
segmentation/#:~:text=Email%20segmentation%20is%20the%20division,relevant%20content%20to%20your%20s
ubscribers.
§ West, C. (2022, November 30). What is email marketing? Your 101 guide to email campaigns. Sprout Social.
https://sproutsocial.com/insights/email-marketing/
§ LaFleur, G. (2023, May 19). What are the different types of SMS marketing? Customer Experience.
https://www.techtarget.com/searchcustomerexperience/answer/What-are-the-different-types-of-SMS-marketing
§ Ultimate Guide to WhatsApp Marketing: Top 10 Strategies. (n.d.). https://m.aisensy.com/blog/whatsapp-marketing-
strategies/#:~:text=WhatsApp%20Marketing%20is%20promoting%20your,spend%20approximately%2018.6%20h
ours%20per