Marketing Management Notes - by Gillu

Unit 1

Review of Segmentation Criteria- NCCS & SEC Model:

The NCCS (National Consumer Classification System) and SEC (Socio-Economic
Classification) model are both widely used segmentation criteria in marketing
research and consumer behavior analysis. Here's a review of each:
1. NCCS (National Consumer Classification System):
The NCCS is a segmentation model developed by the Market Research Society of
India (MRSI) to classify Indian households based on their socio-economic status (SES).
It categorizes households into various segments based on parameters such as
education, occupation, income, and lifestyle indicators. The NCCS segmentation
criteria include:
• Education: Classifies households based on the highest level of education
attained by the primary earner or head of the household.
• Occupation: Segments households based on the primary occupation of the
main breadwinner, distinguishing between professionals, skilled workers,
unskilled laborers, and other occupational categories.
• Income: Divides households into income brackets or classes based on the
annual household income, providing insights into purchasing power and
spending behavior.
• Lifestyle Indicators: Considers additional factors such as household size,
ownership of assets (e.g., cars, houses), access to modern amenities, and
consumption patterns to further refine segmentation.
The NCCS model provides marketers with a comprehensive understanding of the
socio-economic diversity within the Indian market, allowing for targeted marketing
strategies and product offerings tailored to specific segments' needs and preferences.
2. SEC (Socio-Economic Classification):
The SEC model, also known as the socio-economic classification system, is a
segmentation framework commonly used in market research and consumer
segmentation, particularly in the United Kingdom. Developed by the National
Readership Survey (NRS), the SEC model categorizes households based on occupation
and social status. The segmentation criteria include:
 • Social Grade: Classifies households into categories ranging from A to E, with
Grade A representing higher managerial and professional occupations, and
Grade E representing routine and manual occupations.
• Occupational Prestige: Considers the nature of the occupation, level of
responsibility, income, and social status associated with different job roles.
• Educational Attainment: Takes into account the highest level of education
achieved by household members, which is often correlated with occupational
prestige and socio-economic status.
• Income: Although not explicitly part of the SEC model, income may be
considered as a secondary criterion to further refine segmentation within each
social grade category.
The SEC model provides marketers with insights into the socio-economic
characteristics and purchasing behaviors of different consumer segments, helping to
tailor marketing communications, product positioning, and distribution strategies to
effectively reach and engage target audiences.

Choice of Target Markets and Niche Marketing:

The choice of target markets and niche marketing are crucial aspects of marketing
strategy that involve identifying and focusing on specific segments of the market that
offer the greatest potential for success. Here's a breakdown of each:
1. Choice of Target Markets:
The choice of target markets involves selecting specific segments of the market that a
company wants to focus its marketing efforts and resources on. This decision is based
on factors such as market size, growth potential, competition, and alignment with the
company's capabilities and objectives. Here's how companies typically approach the
choice of target markets:
• Market Segmentation: Companies often use market segmentation to
divide the broader market into smaller, more manageable segments
based on factors such as demographics, psychographics, behavior, and
geographic location. By understanding the unique needs and
preferences of different segments, companies can tailor their marketing
strategies to better meet the needs of specific target audiences.
• Target Market Selection: Once segments have been identified,
companies evaluate the attractiveness of each segment based on
criteria such as size, growth potential, profitability, competition, and
 compatibility with the company's resources and capabilities. Companies
may choose to target one or more segments, depending on their
strategic objectives and market opportunities.
• Positioning Strategy: After selecting target markets, companies develop
a positioning strategy to differentiate their products or services and
create a distinct value proposition for the target audience. Effective
positioning involves identifying the unique benefits and attributes that
set the company apart from competitors and resonate with the needs
and preferences of the target market.
2. Niche Marketing:
Niche marketing involves targeting a specialized segment of the market with unique
needs and preferences that are not adequately addressed by mainstream products or
services. Niche markets are typically characterized by their small size, high level of
specialization, and strong customer loyalty. Here's how companies approach niche
marketing:
• Identifying Niche Opportunities: Companies identify niche
opportunities by conducting market research to identify underserved or
unmet needs within specific market segments. Niche opportunities may
arise from emerging trends, technological advancements, changes in
consumer behavior, or gaps in the market that competitors have
overlooked.
• Tailoring Products or Services: Once a niche opportunity has been
identified, companies develop products or services that are specifically
tailored to meet the unique needs and preferences of the target niche.
This may involve customizing features, functionalities, pricing,
packaging, and marketing messages to appeal to the niche audience.
• Building Relationships: Niche marketing relies heavily on building
strong relationships and connections with customers within the target
niche. Companies often use targeted marketing strategies, personalized
communication, and niche-specific channels to engage with niche
customers and foster loyalty.
• Becoming an Expert: Successful niche marketers position themselves as
experts or authorities within their niche by providing valuable content,
insights, and solutions to niche-specific problems. By establishing
credibility and trust, niche marketers can strengthen their brand
presence and attract loyal customers within the niche.
Positioning:
In revisiting segmentation, targeting, and positioning (STP), positioning refers to the
strategic process of creating a distinct and desirable image or perception of a
product, brand, or company in the minds of target consumers relative to competitors.
Positioning aims to differentiate offerings and establish a unique value proposition
that resonates with the target market, influencing purchasing decisions and fostering
brand loyalty. Here's an explanation of positioning within the context of STP:
1. Understanding the Market: Before positioning a product or brand, it's crucial
to have a deep understanding of the target market, including demographics,
psychographics, preferences, needs, and behaviors. Market research helps
identify gaps, opportunities, and competitive dynamics within the market
landscape.
2. Identifying Points of Differentiation: Positioning involves identifying and
emphasizing unique points of differentiation that set the product or brand
apart from competitors. These points of differentiation may be based on
product features, performance, quality, price, design, innovation, customer
service, or brand values.
3. Defining the Value Proposition: The value proposition articulates the benefits
and value that the product or brand promises to deliver to customers. It
answers the question, "Why should customers choose our product or brand
over competitors?" The value proposition should be clear, compelling, and
relevant to the target market's needs and preferences.
4. Creating a Positioning Strategy: Based on the identified points of
differentiation and value proposition, a positioning strategy is developed to
communicate the desired image or perception to the target market. This
involves crafting a unique positioning statement or tagline that succinctly
conveys the brand's value proposition and positioning relative to competitors.
5. Communicating the Positioning: Effective communication is essential for
conveying the desired positioning to target consumers through various
marketing channels and touchpoints. This may include advertising, branding,
messaging, packaging, pricing, distribution, and customer interactions.
Consistent and cohesive messaging helps reinforce the brand's positioning and
build brand equity over time.
6. Monitoring and Adjusting: Positioning is not static and may evolve over time
in response to changes in the market, competition, consumer preferences, or
business objectives. It's important to continuously monitor market dynamics,
gather feedback from customers, and assess the effectiveness of the
 positioning strategy. Adjustments may be needed to stay relevant and
maintain a competitive edge.

Sustainable & Green Marketing:

Sustainable and green marketing refers to the strategic approach adopted by
businesses to promote products or services that are environmentally friendly, socially
responsible, and economically viable. It involves integrating sustainability principles
and practices into various aspects of marketing strategy, including product
development, production processes, packaging, distribution, promotion, and
communication. Here's an overview of sustainable and green marketing:
1. Focus on Environmental Sustainability: Sustainable and green marketing aims
to minimize the environmental impact of products and operations by reducing
resource consumption, waste generation, pollution, and carbon emissions.
This may involve using renewable energy sources, eco-friendly materials,
recyclable packaging, and implementing energy-efficient practices throughout
the supply chain.
2. Social Responsibility: In addition to environmental considerations, sustainable
and green marketing also addresses social issues such as labor rights, fair
trade, community engagement, and diversity and inclusion. Businesses strive
to uphold ethical standards and contribute positively to society by supporting
social causes, investing in local communities, and fostering inclusive
workplaces.
3. Consumer Education and Awareness: Sustainable and green marketing
initiatives often focus on educating consumers about the environmental and
social benefits of sustainable products and practices. This may involve
providing transparent information about product sourcing, manufacturing
processes, certifications, and eco-labels to help consumers make informed
purchasing decisions.
4. Product Innovation and Differentiation: Sustainable and green marketing
encourages product innovation and differentiation by developing eco-friendly
alternatives to conventional products, incorporating sustainable design
principles, and leveraging emerging technologies such as renewable energy,
biodegradable materials, and circular economy models. Businesses strive to
create products that meet consumer needs while minimizing environmental
impact.
 5. Stakeholder Engagement and Collaboration: Sustainable and green marketing
requires collaboration and engagement with various stakeholders, including
customers, suppliers, employees, investors, regulators, and advocacy groups.
Businesses seek to build partnerships, alliances, and networks to address
sustainability challenges collectively, share best practices, and drive industry-
wide change.
6. Corporate Transparency and Accountability: Transparency and accountability
are essential principles of sustainable and green marketing. Businesses are
expected to be transparent about their sustainability practices, goals, and
performance metrics, providing stakeholders with access to relevant
information and data to assess their environmental and social impact. Regular
reporting and disclosure help build trust and credibility with consumers and
investors.
7. Long-term Value Creation: Sustainable and green marketing emphasizes the
importance of long-term value creation and stakeholder value beyond short-
term profits. By adopting sustainable business practices, businesses can
enhance brand reputation, mitigate risks, attract environmentally conscious
consumers, and create shared value for society and the environment while
driving business growth and profitability.

Socially Responsible Marketing:

Socially responsible marketing refers to the practice of promoting products, services,
and brands in a manner that demonstrates ethical and responsible behavior towards
society and the environment. It involves aligning marketing strategies and activities
with principles of social responsibility, sustainability, and ethical conduct, while also
addressing the needs and concerns of various stakeholders. Here are key aspects of
socially responsible marketing:
1. Ethical Business Practices: Socially responsible marketing requires businesses
to adhere to ethical standards and principles in all aspects of their operations.
This includes conducting business with honesty, integrity, and transparency,
and avoiding deceptive or misleading marketing practices that may harm
consumers or exploit vulnerable populations.
2. Environmental Sustainability: Socially responsible marketing involves
minimizing the environmental impact of products, services, and business
operations. This may include using sustainable materials, reducing energy
consumption, minimizing waste generation, and adopting environmentally
friendly production processes and packaging.
3. Social Impact: Socially responsible marketing considers the broader social
impact of business activities and seeks to address societal issues such as
poverty, inequality, health, education, and human rights. Businesses may
engage in corporate social responsibility (CSR) initiatives, philanthropy,
community engagement, and partnerships with nonprofit organizations to
make a positive difference in the communities they serve.
4. Consumer Welfare: Socially responsible marketing prioritizes the well-being
and interests of consumers by providing accurate information, ensuring
product safety and quality, respecting consumer privacy and data protection
rights, and empowering consumers to make informed choices. Businesses
should avoid engaging in predatory or exploitative marketing practices that
harm vulnerable or disadvantaged consumers.
5. Cultural Sensitivity and Diversity: Socially responsible marketing recognizes
and respects cultural diversity, values, and norms, and avoids engaging in
cultural appropriation or stereotyping. Businesses should tailor their
marketing messages and campaigns to resonate with diverse audiences while
promoting inclusivity, equality, and cultural sensitivity.
6. Transparency and Accountability: Socially responsible marketing requires
businesses to be transparent about their business practices, policies, and
performance, and be accountable for their actions. This includes providing
clear and accurate information to consumers, stakeholders, and regulatory
authorities, and being responsive to feedback, concerns, and grievances.
7. Long-Term Value Creation: Socially responsible marketing emphasizes the
importance of long-term value creation and sustainable business practices
that benefit both the company and society. By integrating social and
environmental considerations into marketing strategies, businesses can
enhance brand reputation, build customer trust and loyalty, and drive long-
term business growth and profitability.
 Unit 2
Product vs Service: characteristics of services:
Here are some key characteristics of services:
1. Intangibility: One of the primary characteristics of services is intangibility,
meaning that services cannot be seen, touched, or physically possessed like
tangible products. Instead, services are experienced or consumed by
customers through interactions with service providers or through the use of
facilities or equipment.
2. Inseparability: Services are often produced and consumed simultaneously,
which means that the production and delivery of services are inseparable from
the customer experience. Unlike products, which can be manufactured and
stored in inventory before being sold to customers, services are typically
created and consumed in real-time.
3. Variability: Services are highly variable and can vary in quality, consistency,
and delivery from one service encounter to another. This variability is often
influenced by factors such as the skills and capabilities of service providers,
customer preferences, environmental conditions, and the nature of the service
itself.
4. Perishability: Services are perishable and cannot be stored or inventoried for
future use like physical products. Once a service has been provided, it cannot
be reused or resold to another customer. This perishability poses challenges
for service providers in managing capacity, demand fluctuations, and resource
allocation.
5. Heterogeneity: Services are heterogeneous or diverse, meaning that each
service encounter is unique and influenced by numerous factors such as
customer expectations, preferences, and interactions with service providers.
Unlike products, which can be standardized and mass-produced, services often
require customization and personalization to meet individual customer needs.
6. Customer Involvement: Customers play a significant role in the co-creation of
value in services by actively participating in the service delivery process. Unlike
products, which are typically produced and consumed independently of
customer involvement, services often require collaboration and interaction
between customers and service providers to achieve desired outcomes.
7. Time-based Performance: Services are often evaluated based on their
performance over time, including factors such as responsiveness, reliability,
timeliness, and effectiveness. Unlike products, which can be assessed based
 on physical attributes or specifications, the quality of services is often judged
based on the overall experience and outcomes achieved by customers.

Service Differentiation through Excellence:

Service differentiation through excellence refers to the strategic approach of
distinguishing a company's offerings from competitors by consistently delivering
exceptional service quality, exceeding customer expectations, and creating
memorable experiences that differentiate the brand in the marketplace. Here's how
companies can differentiate their services through excellence:
1. Focus on Customer Needs and Preferences: Service excellence begins with a
deep understanding of customer needs, preferences, and expectations.
Companies should conduct market research, gather feedback, and listen to
customer insights to identify areas for improvement and tailor services to
meet customer requirements.
2. Deliver Consistent Quality: Consistency is key to service excellence.
Companies should strive to deliver consistently high-quality services across all
touchpoints and interactions with customers. This involves setting clear
service standards, training employees, implementing quality control measures,
and continuously monitoring and improving service delivery processes.
3. Empower Employees: Employees play a crucial role in delivering excellent
service experiences. Companies should empower and train employees to
provide personalized, responsive, and empathetic service to customers. This
may involve investing in employee training and development, fostering a
positive work culture, and empowering frontline staff to make decisions and
solve customer problems autonomously.
4. Create Memorable Experiences: Service excellence goes beyond meeting
basic customer needs; it involves creating memorable and differentiated
experiences that leave a lasting impression on customers. Companies should
focus on delighting customers, exceeding expectations, and adding value at
every interaction. This may involve personalized greetings, anticipating
customer needs, providing unexpected perks or rewards, and going above and
beyond to resolve customer issues.
5. Innovate and Differentiate: Service excellence requires ongoing innovation
and differentiation to stay ahead of competitors. Companies should
continuously seek new ways to enhance service offerings, introduce innovative
features or technologies, and differentiate themselves in the market. This may
involve leveraging customer feedback, monitoring industry trends, and
 benchmarking against best practices to identify opportunities for
improvement and innovation.
6. Build Trust and Loyalty: Trust is a fundamental component of service
excellence. Companies should prioritize transparency, integrity, and reliability
in all their interactions with customers. By consistently delivering on promises,
demonstrating competence, and building trust-based relationships, companies
can foster customer loyalty and advocacy, leading to long-term success and
sustainable growth.
7. Measure and Improve Performance: Continuous improvement is essential for
maintaining service excellence over time. Companies should establish key
performance indicators (KPIs), metrics, and feedback mechanisms to measure
service quality, customer satisfaction, and loyalty. By analyzing performance
data, identifying areas for improvement, and implementing corrective actions,
companies can drive ongoing improvement and ensure sustained excellence in
service delivery.

Elements of ServQual Model:

The SERVQUAL model, developed by Parasuraman, Zeithaml, and Berry, is a widely
used framework for measuring and managing service quality. It consists of five
dimensions, often referred to as the RATER model, which stands for Reliability,
Assurance, Tangibles, Empathy, and Responsiveness. Here are the elements of the
SERVQUAL model:
1. Reliability: Reliability refers to the ability of a service provider to perform
promised services accurately, dependably, and consistently. It involves
delivering services on time, as promised, and without errors or disruptions.
Reliability also encompasses the consistency of service delivery across
different channels and interactions with customers.
2. Assurance: Assurance relates to the knowledge, competence, credibility, and
professionalism of service providers. It involves instilling confidence and trust
in customers by demonstrating expertise, providing accurate information, and
addressing customer concerns effectively. Assurance also includes aspects
such as courtesy, politeness, and friendliness of service staff.
3. Tangibles: Tangibles refer to the physical facilities, equipment, and appearance
of service providers, as well as the visual elements associated with service
delivery. Tangibles create the first impression of service quality and influence
customers' perceptions of the service experience. This includes factors such as
cleanliness, ambiance, layout, signage, and the appearance of service staff.
 4. Empathy: Empathy refers to the ability of service providers to understand,
anticipate, and address the needs, preferences, and emotions of customers. It
involves showing empathy, care, and concern for customers' well-being,
listening actively to their concerns, and providing personalized assistance and
support. Empathy also includes aspects such as responsiveness to customer
inquiries and willingness to accommodate special requests.
5. Responsiveness: Responsiveness refers to the willingness and promptness of
service providers to help customers and address their needs in a timely
manner. It involves being proactive, attentive, and flexible in responding to
customer inquiries, requests, and complaints. Responsiveness also
encompasses aspects such as speed of service, availability of assistance, and
ease of reaching service providers.

Brand Elements & Recent Trends in Branding:

Brand elements are the components or building blocks that contribute to the identity
and recognition of a brand. They help differentiate a brand from its competitors and
influence consumer perceptions and preferences. Common brand elements include:
1. Brand Name: The brand name is the word or phrase used to identify and
distinguish a brand from others in the market. It plays a crucial role in brand
recognition, recall, and association. Examples of iconic brand names include
Coca-Cola, Nike, and Apple.
2. Logo: The logo is a visual symbol or design that represents the brand and is
typically displayed on products, packaging, marketing materials, and digital
platforms. It serves as a visual identifier and helps create a strong visual
identity for the brand. Well-designed logos are memorable, versatile, and
instantly recognizable.
3. Tagline or Slogan: A tagline or slogan is a brief and memorable phrase that
communicates the brand's key message, value proposition, or positioning. It
often accompanies the brand name and logo in marketing communications
and serves to reinforce brand identity and connect with consumers
emotionally. Examples include Nike's "Just Do It" and McDonald's "I'm Lovin'
It."
4. Color Palette: The color palette consists of the specific colors associated with
the brand and is used consistently across various brand assets and
touchpoints. Colors evoke certain emotions and associations and play a crucial
role in shaping brand perceptions. For example, red is often associated with
 energy and excitement (e.g., Coca-Cola), while green may symbolize freshness
and eco-friendliness (e.g., Starbucks).
5. Typography: Typography refers to the style, size, and arrangement of text used
in brand communications. It includes the choice of fonts, font weights, and
typographic treatments such as kerning, leading, and letter spacing.
Typography helps convey the brand's personality, tone, and visual identity.
Examples of distinctive typographic styles include the bold and modern font
used by Google and the elegant script font used by Coca-Cola.
6. Iconography: Iconography consists of visual symbols, icons, or graphics
associated with the brand that represent its unique attributes, values, or
offerings. Icons can be used to simplify complex concepts, convey messages
quickly, and enhance brand recognition. Examples include the Nike swoosh,
the Apple icon, and the Twitter bird.
As for recent trends in branding, several key developments have emerged in response
to shifts in consumer behavior, technological advancements, and market dynamics.
Some notable trends include:
1. Purpose-Driven Branding: Consumers increasingly expect brands to stand for
something beyond just products or services. Purpose-driven branding involves
aligning the brand with a social or environmental cause and demonstrating a
commitment to making a positive impact on society. Brands that authentically
embrace a purpose-driven approach can build stronger emotional connections
with consumers and differentiate themselves in the market.
2. Digital and Experiential Branding: With the rise of digital channels and
platforms, brands are focusing on creating immersive and interactive
experiences that engage consumers in meaningful ways. Digital branding
involves leveraging digital technologies, such as augmented reality (AR), virtual
reality (VR), and interactive content, to create memorable brand experiences
across online and offline touchpoints. Experiential branding goes beyond
traditional advertising and focuses on creating real-world experiences that
connect with consumers on a personal level, such as pop-up events, brand
activations, and immersive installations.
3. Personalization and Customization: Brands are increasingly leveraging data
and technology to deliver personalized and customized experiences tailored to
individual consumer preferences and needs. Personalization involves using
data analytics, artificial intelligence (AI), and machine learning algorithms to
segment audiences, predict behavior, and deliver targeted content,
recommendations, and offers. Customization allows consumers to co-create
 products, services, and experiences that meet their unique requirements,
preferences, and tastes, fostering a sense of ownership and loyalty.
4. Sustainability and Ethical Branding: Sustainability and ethical considerations
are becoming increasingly important factors in consumer purchasing
decisions. Brands are embracing sustainable and ethical practices across their
value chains, including sourcing, production, packaging, and distribution.
Ethical branding involves transparently communicating these efforts to
consumers and demonstrating a commitment to social responsibility,
environmental stewardship, and ethical business practices. Brands that
prioritize sustainability and ethics can enhance their reputation, attract
socially conscious consumers, and drive long-term value.
5. Authenticity and Transparency: In an era of information overload and
skepticism, authenticity and transparency are essential for building trust and
credibility with consumers. Authentic branding involves staying true to the
brand's values, heritage, and identity, and avoiding superficial or opportunistic
marketing tactics. Transparency involves openly sharing information about the
brand's practices, processes, and performance, including product ingredients,
sourcing origins, and business practices. Brands that prioritize authenticity and
transparency can foster stronger relationships with consumers and
differentiate themselves from competitors.

Defining Brand Equity:

Brand equity refers to the intangible value and assets associated with a brand that
contribute to its overall worth and competitive advantage. It represents the added
value that consumers attribute to a brand beyond its functional attributes and
tangible benefits. Brand equity is built over time through consistent branding efforts,
positive brand associations, and favorable customer experiences. It encompasses
various dimensions, including:
1. Brand Awareness: Brand awareness refers to the extent to which consumers
recognize and recall a brand and its products or services. Strong brand
awareness ensures that the brand is top-of-mind among consumers when
making purchasing decisions, increasing the likelihood of consideration and
purchase.
2. Brand Associations: Brand associations are the unique attributes,
characteristics, and perceptions that consumers associate with a brand. These
associations may include product quality, reliability, innovation, prestige,
affordability, and emotional appeal. Positive brand associations differentiate
 the brand from competitors and influence consumer attitudes and
preferences.
3. Brand Loyalty: Brand loyalty reflects the extent to which consumers exhibit
repeat purchases, preference, and commitment to a particular brand over
time. Strong brand loyalty leads to higher customer retention, increased
lifetime value, and reduced susceptibility to competitive offerings. Loyalty
programs, incentives, and rewards can help cultivate and reinforce brand
loyalty among consumers.
4. Perceived Quality: Perceived quality refers to consumers' subjective
evaluation of a brand's product or service quality relative to competitors.
Brands that are perceived to offer superior quality and value tend to command
premium pricing, enjoy stronger customer loyalty, and sustain competitive
advantage in the marketplace.
5. Brand Associations: Brand associations are the unique attributes,
characteristics, and perceptions that consumers associate with a brand. These
associations may include product quality, reliability, innovation, prestige,
affordability, and emotional appeal. Positive brand associations differentiate
the brand from competitors and influence consumer attitudes and
preferences.
6. Brand Loyalty: Brand loyalty reflects the extent to which consumers exhibit
repeat purchases, preference, and commitment to a particular brand over
time. Strong brand loyalty leads to higher customer retention, increased
lifetime value, and reduced susceptibility to competitive offerings. Loyalty
programs, incentives, and rewards can help cultivate and reinforce brand
loyalty among consumers.
7. Brand Assets: Brand assets refer to the tangible and intangible elements that
contribute to brand equity and recognition. These assets may include brand
names, logos, slogans, trademarks, patents, copyrights, and proprietary
technology. Strong brand assets serve as valuable intellectual property assets
that can be leveraged to generate revenue, protect against competition, and
expand into new markets and product categories.

Brand Models: Brand Resonance Model:

The Brand Resonance Model, developed by Kevin Lane Keller, is a comprehensive
framework for understanding and building strong brand relationships with
consumers. It outlines the stages that consumers go through in developing deep and
meaningful connections with brands, ultimately leading to brand loyalty and
advocacy. The model consists of four key stages, often represented as a pyramid:
1. Identity: The first stage of the Brand Resonance Model is Identity, which
focuses on establishing brand presence and awareness among consumers. At
this stage, the goal is to ensure that consumers recognize and recall the brand
name, logo, and other brand elements. Building brand identity involves
creating a distinctive brand image, positioning the brand in the minds of
consumers, and communicating its unique value proposition. Effective
marketing activities such as advertising, branding, and promotion play a
crucial role in building brand identity and awareness.
2. Meaning: The second stage of the model is Meaning, which involves
establishing strong and positive brand associations in the minds of consumers.
At this stage, consumers develop perceptions about the brand based on its
attributes, benefits, and values. Brands need to convey a clear and consistent
message about what they stand for, what they offer, and how they differ from
competitors. This requires identifying and communicating key brand
attributes, benefits, and values through marketing communications, product
experiences, and customer interactions.
3. Response: The third stage of the model is Response, which focuses on creating
favorable consumer responses to the brand. At this stage, consumers develop
attitudes, feelings, and preferences towards the brand based on their
perceptions and experiences. Brands aim to elicit positive emotional
responses, such as trust, admiration, and loyalty, from consumers through
effective brand positioning, messaging, and customer experiences. This
involves delivering on brand promises, exceeding customer expectations, and
building strong emotional connections with consumers.
4. Resonance: The fourth and final stage of the model is Resonance, which
represents the highest level of brand relationship and loyalty. At this stage,
consumers develop a deep and enduring connection with the brand,
characterized by strong brand loyalty, advocacy, and engagement. Brands
become a meaningful part of consumers' lives, influencing their purchasing
decisions, behaviors, and attitudes. Brand resonance is built through
consistent delivery of superior value, exceptional customer experiences, and
ongoing engagement with consumers. This stage is marked by high levels of
brand loyalty, repeat purchases, positive word-of-mouth, and willingness to
pay premium prices for the brand's products or services.
Brand Value Chain & Brand Equity Surveys:
The Brand Value Chain and Brand Equity Surveys are two important tools used in
brand management to assess and enhance the value and equity of a brand. Let's
delve into each of them:
1. Brand Value Chain:
The Brand Value Chain, developed by Kevin Lane Keller, is a strategic framework that
outlines the steps involved in building and managing brand equity. It identifies key
activities and processes that contribute to the creation and enhancement of brand
value. The Brand Value Chain consists of the following components:
• Marketing Program Investment: This stage involves investing resources
in marketing activities such as advertising, promotion, and product
development to build brand awareness and associations.
• Customer Mindset: Marketing programs influence consumer
perceptions and attitudes towards the brand, shaping their brand
knowledge, beliefs, and preferences.
• Market Performance: Customer mindset impacts market performance
metrics such as market share, sales revenue, and profitability. Strong
brand equity leads to positive market outcomes and financial
performance.
• Shareholder Value: Ultimately, the financial performance of the brand
translates into shareholder value, representing the long-term value and
profitability of the brand to the company and its stakeholders.
The Brand Value Chain provides a structured approach for assessing the effectiveness
of marketing activities in building brand equity and driving business performance. By
understanding and optimizing each stage of the value chain, companies can
strategically manage their brands and maximize their long-term value and
competitiveness.
2. Brand Equity Surveys:
Brand equity surveys are research tools used to measure and evaluate various
dimensions of brand equity, including brand awareness, associations, perceptions,
loyalty, and purchase intent. These surveys typically involve collecting quantitative
and qualitative data from consumers to assess their attitudes, behaviors, and
perceptions towards a brand.
Key components of brand equity surveys may include:
 • Brand Awareness: Assessing the level of brand awareness among
consumers, including aided and unaided recall of the brand name, logo,
and other brand elements.
• Brand Associations: Identifying and evaluating the key attributes,
benefits, and values associated with the brand in consumers' minds.
• Brand Perceptions: Understanding consumer perceptions of the
brand's quality, reliability, credibility, and relevance relative to
competitors.
• Brand Loyalty: Measuring customer loyalty and commitment to the
brand, including repeat purchase behavior, brand preference, and
willingness to recommend the brand to others.
• Purchase Intent: Gauging consumers' likelihood to purchase or consider
the brand in future buying decisions.
Brand equity surveys provide valuable insights into the strength and health of a
brand, helping companies identify areas for improvement, track brand performance
over time, and make informed strategic decisions to enhance brand equity and
competitiveness.

Unit 3

Strategy Levels & Core Competencies:

1. Strategy Levels:
Strategy operates at various levels within an organization, ranging from overarching
corporate strategy to more specific functional or operational strategies. The three
primary levels of strategy include:
a. Corporate Strategy: Corporate strategy concerns the overall direction and scope of
the organization as a whole. It involves decisions about which industries to compete
in, how to allocate resources among different business units or divisions, and how to
achieve synergies and create value across the entire organization. Corporate strategy
typically addresses questions related to diversification, mergers and acquisitions,
strategic partnerships, and portfolio management.
b. Business Unit Strategy: Business unit strategy focuses on how individual business
units or divisions within the organization compete within their respective markets. It
involves setting objectives, defining competitive positioning, identifying growth
opportunities, and allocating resources to maximize performance and profitability.
Business unit strategy often entails market segmentation, target market selection,
product differentiation, and competitive positioning.
c. Functional Strategy: Functional strategy pertains to the specific functional areas or
departments within the organization, such as marketing, operations, finance, human
resources, and information technology. Functional strategies align with and support
the broader corporate and business unit strategies, outlining how each function
contributes to achieving organizational goals and objectives. Functional strategies
address issues such as resource allocation, process optimization, capability
development, and performance improvement within each functional area.
Effective strategic management involves aligning strategies across these different
levels to ensure coherence, synergy, and integration in pursuit of organizational
objectives.
2. Core Competencies:
Core competencies are the unique strengths, capabilities, and advantages that
distinguish an organization from its competitors and enable it to achieve sustainable
competitive advantage. Core competencies represent the collective knowledge, skills,
technologies, and resources embedded within the organization that are difficult for
competitors to replicate or imitate. Core competencies serve as the foundation for
organizational strategy and value creation.
Key characteristics of core competencies include:
• Distinctiveness: Core competencies are unique to the organization and
set it apart from competitors. They represent areas of excellence and
expertise that define the organization's identity and competitive
positioning.
• Strategic Importance: Core competencies are strategically valuable
because they enable the organization to deliver superior value to
customers, achieve differentiation, and outperform competitors in the
marketplace.
• Applicability across Markets and Products: Core competencies are
versatile and applicable across different markets, products, and
business units within the organization. They provide a basis for
diversification, innovation, and expansion into new areas of business.
• Difficult to Imitate: Core competencies are difficult for competitors to
replicate or imitate due to their complexity, embeddedness, and
integration within the organization. They often involve a combination of
 tangible and intangible resources, including technology, know-how,
culture, and relationships.
• Dynamic and Evolving: Core competencies evolve over time in
response to changes in the external environment, market dynamics,
and organizational capabilities. Organizations must continuously invest
in and nurture their core competencies to maintain their competitive
edge and adapt to emerging opportunities and challenges.
Identifying, leveraging, and leveraging core competencies is essential for formulating
and executing effective strategies at all levels of the organization. Core competencies
inform decisions about resource allocation, capability development, competitive
positioning, and value creation, enabling organizations to build sustainable
competitive advantage and achieve long-term success in their chosen markets.

Porter’s Generic Strategies:

Porter's Generic Strategies, developed by Michael Porter, are strategic approaches
that businesses can use to gain competitive advantage and position themselves
effectively within their respective industries. Porter identified three generic strategies
that companies can pursue to achieve competitive advantage:
1. Cost Leadership Strategy:
Cost leadership involves becoming the lowest-cost producer in the industry while
maintaining acceptable levels of quality. Companies pursuing this strategy focus on
reducing costs through efficient operations, economies of scale, technology
investments, process improvements, and tight cost controls. By offering products or
services at lower prices than competitors, cost leaders can attract price-sensitive
customers, gain market share, and achieve higher profitability. Cost leadership is
particularly effective in industries where customers are price-sensitive, competition is
intense, and product differentiation is minimal.
2. Differentiation Strategy:
Differentiation involves offering unique and distinctive products or services that are
perceived as superior in quality, features, design, performance, or other attributes
valued by customers. Companies pursuing a differentiation strategy invest in product
innovation, brand building, customer service, and marketing to create a strong and
differentiated brand image. Differentiation enables companies to command premium
prices, build customer loyalty, and reduce price sensitivity. It also creates barriers to
entry, as competitors may find it difficult to replicate or match the unique features or
attributes of the differentiated product or service.
 3. Focus Strategy:
Focus involves concentrating on a specific segment or niche within the broader
market and tailoring products, services, and marketing efforts to meet the needs and
preferences of that target segment more effectively than competitors. Focus
strategies can take two forms:
• Cost Focus: Cost focus involves targeting a narrow market segment and
offering products or services at lower prices than competitors within
that segment. Companies pursuing cost focus aim to become the
lowest-cost provider within their target market niche, often by serving a
specialized customer segment with unique needs or preferences.
• Differentiation Focus: Differentiation focus involves targeting a narrow
market segment and offering products or services that are
differentiated and perceived as superior within that segment.
Companies pursuing differentiation focus seek to create a unique and
distinctive value proposition tailored to the specific needs and
preferences of their target market niche, often through product
customization, specialization, or premium features.
Focus strategies allow companies to avoid direct competition with larger rivals by
catering to the unique needs of a smaller, more defined customer segment. Focus
can be particularly effective in markets where customer needs are diverse, and larger
competitors may overlook or underserve specific niche segments.

Analysis Tools for Strategy Formulation:

There are several analysis tools and frameworks available to businesses to aid in
strategy formulation. These tools help organizations assess their internal capabilities,
understand market dynamics, identify opportunities and threats, and make informed
strategic decisions. Some commonly used analysis tools for strategy formulation
include:
1. SWOT Analysis:
SWOT analysis is a strategic planning tool used to identify an organization's Strengths,
Weaknesses, Opportunities, and Threats. It involves assessing internal factors
(Strengths and Weaknesses) such as resources, capabilities, and competencies, as
well as external factors (Opportunities and Threats) such as market trends,
competitive forces, and regulatory changes. SWOT analysis provides insights into the
organization's current position and helps in developing strategies to leverage
strengths, address weaknesses, capitalize on opportunities, and mitigate threats.
 2. PESTEL Analysis:
PESTEL analysis is a framework for analyzing the external macro-environmental
factors that impact an organization's business environment. It examines Political,
Economic, Social, Technological, Environmental, and Legal factors that may influence
the organization's operations, strategies, and decision-making. PESTEL analysis helps
businesses anticipate changes in the external environment, identify emerging trends
and risks, and adapt their strategies accordingly.
3. Porter's Five Forces Analysis:
Porter's Five Forces analysis is a framework for assessing the competitive intensity
and attractiveness of an industry. It examines five competitive forces—Supplier
Power, Buyer Power, Threat of New Entrants, Threat of Substitutes, and Competitive
Rivalry— that shape the industry's profitability and competitive dynamics. Porter's
Five Forces analysis helps organizations understand the underlying drivers of
competition, identify key sources of competitive pressure, and develop strategies to
enhance their competitive position within the industry.
4. Value Chain Analysis:
Value Chain analysis is a tool for understanding the sequence of activities involved in
delivering a product or service to customers and identifying opportunities for cost
reduction and value creation. It involves breaking down the organization's activities
into primary activities (such as inbound logistics, operations, marketing, and service)
and support activities (such as procurement, technology development, and human
resource management). Value Chain analysis helps organizations identify areas where
they can improve efficiency, reduce costs, and differentiate their products or services
to gain a competitive advantage.
5. Benchmarking:
Benchmarking involves comparing an organization's performance metrics, processes,
and practices against those of industry peers or best-in-class companies to identify
areas for improvement and best practices. It helps organizations set performance
targets, learn from industry leaders, and implement strategies to enhance
performance and competitiveness.
6. Scenario Planning:
Scenario Planning involves developing multiple plausible scenarios or future outlooks
for the business environment based on different assumptions and uncertainties. It
helps organizations anticipate potential future developments, identify strategic risks
and opportunities, and develop contingency plans to navigate uncertainty and adapt
to changing circumstances.
Preparing a marketing plan is a critical step for businesses to effectively promote
their products or services, attract customers, and achieve their marketing objectives.
Here are the key steps involved in preparing a comprehensive marketing plan:
1. Executive Summary:
• Provide a concise overview of the marketing plan, including the
business goals, target market, key strategies, and anticipated outcomes.
2. Business Overview:
• Describe the business, its mission, vision, values, and unique selling
proposition (USP).
• Provide background information about the industry, market trends,
competitive landscape, and SWOT analysis (Strengths, Weaknesses,
Opportunities, Threats).
3. Marketing Objectives:
• Define specific, measurable, achievable, relevant, and time-bound
(SMART) marketing objectives aligned with the overall business goals.
Examples may include increasing brand awareness, expanding market
share, or launching a new product.
4. Target Market Analysis:
• Identify and profile the target market segments based on
demographics, psychographics, behaviors, and needs.
• Conduct market research to understand customer preferences,
purchase behavior, and decision-making processes.
5. Competitive Analysis:
• Analyze key competitors, their strengths, weaknesses, market
positioning, and marketing strategies.
• Identify opportunities and threats posed by competitors and develop
strategies to differentiate the business and gain a competitive
advantage.
6. Marketing Strategies:
• Outline the marketing strategies and tactics to achieve the marketing
objectives.
• Include the 4Ps of marketing (Product, Price, Place, Promotion) and
additional strategies such as positioning, branding, distribution, and
customer service.
• Specify the marketing channels and platforms (e.g., digital marketing,
traditional advertising, social media, events) to reach the target
audience effectively.
7. Marketing Mix Implementation:
• Detail the specific actions, initiatives, and campaigns to implement the
marketing strategies.
• Develop a timeline, budget, and resource allocation plan for each
marketing activity.
• Assign responsibilities and roles to team members or external partners
involved in executing the marketing plan.
8. Measurement and Evaluation:
• Define key performance indicators (KPIs) to measure the effectiveness
of the marketing plan.
• Monitor and track metrics such as website traffic, lead generation, sales
conversion rates, customer acquisition cost (CAC), and return on
investment (ROI).
• Regularly review and evaluate the performance of marketing activities
against the predefined objectives and KPIs.
9. Adjustment and Optimization:
• Continuously analyze the marketing performance data and customer
feedback to identify areas for improvement.
• Adapt the marketing strategies and tactics based on insights gained
from monitoring and evaluation.
• Test and iterate different approaches to optimize marketing
effectiveness and achieve better results over time.
10. Budget and Resource Allocation:
• Determine the budget required to execute the marketing plan and
allocate resources accordingly.
• Consider factors such as advertising costs, marketing technology
expenses, personnel costs, and other marketing-related investments.
11. Risk Management:
• Identify potential risks and challenges that may impact the success of
the marketing plan.
• Develop contingency plans and mitigation strategies to address
unforeseen circumstances and minimize risks.
12. Conclusion:
• Summarize the key points of the marketing plan and reiterate the
objectives and strategies.
• Emphasize the expected outcomes and benefits of implementing the
plan for the business.
 Unit 4
Product mix:
1. Product Lines: These are groups of related products or services that serve a
similar purpose or cater to a specific market segment. For example, a clothing
retailer might have product lines for men's apparel, women's apparel, and
children's apparel.
2. Product Width: Refers to the number of different product lines a company
offers. A company with a wide product width offers a diverse range of product
categories, while one with a narrow product width focuses on a smaller range
of categories.
3. Product Depth: Indicates the variety of products within each product line. A
product line with greater depth includes multiple variations of products, such
as different styles, sizes, colors, or models.
4. Product Length: Represents the total number of products within the entire
product mix. This includes all variations across different product lines.
5. Product Consistency: Refers to the extent to which the products within a
company's product mix are related in terms of their use, production
requirements, distribution channels, or target market. A consistent product
mix aligns with a company's overall brand and strategy.

Line Stretching, Pruning and Modernisation:

1. Line Stretching: Line stretching involves expanding a product line by adding
new products that target different market segments or offer additional
features, benefits, or price points. This strategy allows a company to cater to a
broader range of customer needs and preferences while leveraging its existing
brand equity and distribution channels. Line stretching can be either upward,
downward, or both:
• Upward Line Stretching: Introducing higher-priced products with
enhanced features, quality, or prestige to attract customers seeking
premium offerings.
• Downward Line Stretching: Introducing lower-priced products with
fewer features or scaled-down versions of existing products to target
budget-conscious consumers or new market segments.
 2. Pruning: Pruning involves selectively removing products or product lines from
the portfolio that are underperforming, obsolete, or no longer aligned with
the company's strategic objectives. Pruning allows companies to streamline
their product mix, reduce complexity, and allocate resources more efficiently.
By eliminating products that are not contributing to overall profitability or
brand value, companies can focus on strengthening their core offerings and
investing in more promising opportunities.
3. Modernization: Modernization involves updating or refreshing existing
products within a product line to enhance their relevance, competitiveness,
and appeal to customers. This may involve incorporating new technologies,
improving design aesthetics, updating packaging, or refining product features
to better meet evolving consumer preferences or market trends.
Modernization helps companies stay competitive in dynamic markets, prolong
the lifecycle of existing products, and maintain customer interest and loyalty.

Product & Package Design Decisions:

Product Design Decisions: Product design decisions involve the process of
conceptualizing, creating, and refining the physical attributes, features, and
functionalities of a product to meet the needs and preferences of consumers. These
decisions encompass various elements such as aesthetics, usability, functionality,
materials, and technology, with the ultimate goal of developing products that are
innovative, attractive, and marketable. Product design decisions are informed by
consumer insights, market trends, brand identity, manufacturing capabilities, and
cost considerations, aiming to deliver value to customers while achieving business
objectives such as differentiation, competitive advantage, and profitability.
Package Design Decisions: Package design decisions refer to the strategic planning
and execution of the visual and structural elements of product packaging. This
includes the design of the outer container or wrapping that houses and protects the
product, as well as any labeling, graphics, and branding elements applied to the
packaging surface. Package design decisions are crucial in capturing consumer
attention, communicating product attributes and benefits, enhancing brand
recognition, and influencing purchasing decisions. Factors such as packaging
materials, size, shape, color, typography, sustainability, and regulatory compliance are
considered in package design decisions to create packaging solutions that effectively
convey brand identity, differentiate products on the shelf, and deliver a positive
customer experience.
Factors affecting Product & Package Design Decisions:
1. Consumer Needs and Preferences
2. Brand Identity and Positioning
3. Functionality and Usability
4. Aesthetics and Visual Appeal
5. Differentiation and Innovation
6. Sustainability and Environmental Considerations
7. Cost and Manufacturing Constraints
8. Regulatory Compliance and Safety

Psychological Pricing, Reference Prices, Price Sensitivity:

1. Psychological Pricing: Psychological pricing is a pricing strategy that leverages
psychological principles to influence consumer perceptions and behavior.
Instead of simply setting prices based on production costs or market
conditions, psychological pricing considers how consumers perceive prices and
make purchasing decisions. Common techniques used in psychological pricing
include:
• Odd-Even Pricing: Pricing products at slightly below a round number
(e.g., $9.99 instead of $10) to make them appear more affordable and
psychologically attractive to consumers.
• Prestige Pricing: Setting prices higher than competitors to create a
perception of premium quality or exclusivity.
• Anchor Pricing: Displaying a higher-priced product next to a lower-
priced one to make the latter seem like a better value.
• Bundling: Offering multiple products or services together at a
discounted price to create the perception of greater value.
2. Reference Prices: Reference prices are the internal or external benchmarks
against which consumers compare the prices of products or services. Internal
reference prices are based on individuals' past experiences, expectations, or
perceptions of a fair price for a product. External reference prices, on the
other hand, are derived from factors such as advertised prices, competitor
 prices, or industry norms. Consumers use these reference prices to assess
whether a product's price represents a good deal, value, or quality. Marketers
often seek to influence reference prices through pricing strategies and
promotions.
3. Price Sensitivity: Price sensitivity, also known as price elasticity of demand,
refers to the degree to which consumers' purchasing behavior changes in
response to changes in the price of a product or service. It measures the
responsiveness of quantity demanded to changes in price. Price sensitivity
varies among consumers and is influenced by factors such as the perceived
value of the product, income levels, availability of substitutes, and the
necessity or urgency of the purchase. Businesses analyze price sensitivity to
determine optimal pricing strategies for maximizing revenue, profitability, and
market share.

Advances in Pricing- Online Vs Offline

"Advances in Pricing - Online vs. Offline" refers to the evolution of pricing strategies
and techniques in the context of digital (online) and traditional (offline) retail
environments.
Online Pricing Advances: Online pricing advances pertain to the utilization of digital
technologies and data analytics to optimize pricing strategies in e-commerce settings.
This includes techniques such as dynamic pricing, personalized pricing, real-time
pricing adjustments, and the use of algorithms to analyze consumer behavior, market
trends, and competitor pricing. Online retailers leverage these advancements to offer
competitive prices, tailor pricing to individual consumers, implement targeted
promotions, and maximize revenue in the dynamic and fast-paced online
marketplace.
Offline Pricing Advances: Offline pricing advances refer to innovations in pricing
strategies adopted by brick-and-mortar retailers to remain competitive in traditional
retail settings. This includes tactics such as omni-channel pricing integration, price
matching policies, dynamic pricing technologies for physical stores, and the
implementation of customer loyalty programs. Offline retailers utilize these advances
to provide consistent pricing across channels, match prices offered by online
competitors, optimize pricing in response to market conditions, and enhance
customer loyalty through tailored incentives and rewards.
Channel Conflicts: Reasons, Types and Resolution:
Channel conflicts refer to disputes, disagreements, or tensions that arise among
entities within a distribution channel or supply chain. These conflicts can occur
between different levels of the channel, such as manufacturers, wholesalers,
retailers, and end consumers, or among entities at the same level, such as competing
retailers or distributors. Channel conflicts can manifest in various forms, including
disagreements over pricing, territorial issues, product differentiation, communication
breakdowns, or power imbalances.

Reasons for Channel Conflicts:

1. Price Disputes: Disagreements over pricing strategies, discounts, or profit
margins can lead to conflicts among channel members.
2. Territorial Issues: Conflicts may arise when channel partners compete for the
same geographic territories or customer segments.
3. Product Differentiation: Manufacturers offering different products, exclusive
deals, or promotions to different channel partners can cause conflicts due to
perceived unfairness.
4. Communication Breakdowns: Lack of effective communication regarding
expectations, goals, or strategies can lead to misunderstandings and conflicts.
5. Channel Overlaps: Conflicts occur when channels overlap, resulting in sales
cannibalization or customer confusion.
6. Conflicting Goals: Misalignment of goals, priorities, or objectives among
channel partners can lead to conflicts over resources, strategies, or market
share.
7. Market Changes: Shifts in market dynamics, consumer preferences, or
competitive landscape can trigger conflicts as partners adapt to new
challenges or opportunities.

Types of Channel Conflicts:

1. Vertical Channel Conflict: Occurs between different levels of the distribution
channel, such as manufacturers, wholesalers, retailers, and consumers.
 2. Horizontal Channel Conflict: Arises among entities at the same level of the
distribution channel, like competing retailers or distributors.
3. Multichannel Conflict: Arises when companies use multiple distribution
channels, leading to conflicts among these channels.

Resolution Strategies:
1. Effective Communication: Open and transparent communication among
channel partners can help clarify expectations, address concerns, and prevent
misunderstandings.
2. Conflict Mediation: Utilizing third-party mediators or neutral parties to
facilitate discussions and negotiations can help resolve conflicts impartially.
3. Establish Clear Agreements: Developing clear contracts, agreements, and
policies that outline roles, responsibilities, and expectations can reduce
ambiguity and prevent conflicts.
4. Joint Planning and Collaboration: Collaborative planning and decision-making
processes involving all channel members can foster mutual understanding and
consensus.
5. Compromise and Flexibility: Willingness to compromise and adapt to the
needs and interests of other channel partners can help find mutually
acceptable solutions to conflicts.
6. Channel Integration: Integrating channels or aligning incentives to encourage
cooperation and coordination among channel partners can mitigate conflicts.
7. Continuous Monitoring and Feedback: Regular monitoring of channel
performance and soliciting feedback from partners can help identify potential
conflicts early and address them promptly.

E- commerce and M-commerce Channels:

1. E-commerce (Electronic Commerce):
• E-commerce refers to the buying and selling of goods and services over
the internet or other electronic networks.
• It encompasses a wide range of online transactions, including online
retailing, business-to-business (B2B) transactions, online auctions,
digital products distribution, and more.
 • E-commerce platforms enable businesses to reach a global audience,
reduce overhead costs associated with physical storefronts, and offer
convenience to customers through 24/7 access to products and
services.
• Examples of e-commerce platforms include online marketplaces (e.g.,
Amazon, eBay), standalone online stores (e.g., Shopify,
WooCommerce), and social commerce platforms (e.g., Facebook
Marketplace, Instagram Shopping).
2. M-commerce (Mobile Commerce):
• M-commerce refers to the buying and selling of goods and services
using mobile devices such as smartphones and tablets.
• It includes various mobile-based transactions, such as mobile shopping
apps, mobile-optimized websites, mobile payments (e.g., mobile
wallets, in-app purchases), and location-based services.
• M-commerce offers consumers the flexibility to shop anytime,
anywhere, using their mobile devices, and it provides businesses with
opportunities to deliver personalized experiences, leverage mobile-
specific features (e.g., push notifications, geotargeting), and capitalize
on impulse purchases.
• Examples of M-commerce applications include mobile banking apps,
mobile payment platforms (e.g., Apple Pay, Google Pay), mobile
shopping apps (e.g., Amazon Mobile App, Walmart App), and ride-
sharing apps (e.g., Uber, Lyft).

Market place model vs Inventory model in online retail:

The marketplace model and the inventory model are two distinct approaches used in
online retail, each with its own advantages and disadvantages.
1. Marketplace Model:
In the marketplace model, the online platform serves as an intermediary connecting
third-party sellers with consumers. The platform itself does not own or directly
manage the inventory; instead, it provides a virtual space for sellers to list their
products and for buyers to purchase them. Examples of marketplace platforms
include Amazon Marketplace, eBay, and Etsy.
Advantages:
 • Wide product selection: Since multiple sellers list their products on the
platform, customers have access to a diverse range of products.
• Low upfront investment: The platform does not need to invest heavily
in inventory management, as sellers are responsible for their own stock.
• Scalability: The marketplace model can scale rapidly since it doesn't
require the platform to manage physical inventory.
Disadvantages:
• Quality control: Maintaining consistent product quality can be
challenging since the platform does not directly control the inventory.
• Competition: Sellers often compete directly on price and may engage in
price wars, leading to decreased profit margins.
• Limited control: The platform has limited control over inventory,
shipping, and customer service, which can impact the overall customer
experience.
2. Inventory Model:
In the inventory model, the online retailer owns and manages its inventory. This
means the retailer purchases products from suppliers or manufacturers and stores
them in warehouses until they are sold to customers. Examples of retailers using the
inventory model include Walmart and Target.
Advantages:
• Control over product quality: The retailer has direct control over the
quality of products offered to customers.
• Branding and customer experience: The retailer can maintain consistent
branding and provide better customer service since it controls the
entire shopping experience.
• Pricing control: The retailer can set prices independently without direct
competition from other sellers on the platform.
Disadvantages:
• Higher upfront investment: Managing inventory requires significant
upfront investment in purchasing and storing goods.
• Risk of overstocking or understocking: Poor inventory management can
lead to either excess inventory or stockouts, resulting in financial losses.
 • Limited product selection: Compared to marketplaces, retailers
operating under the inventory model may offer a more limited selection
of products.

Introduction to Integrated Marketing Communications:

Integrated marketing communication (IMC) can be defined as the process used to
unify marketing communication elements, such as public relations, social media,
audience analytics, business development principles, and advertising, into a brand
identity that remains consistent across distinct media channels.

Response Hierarchy: AIDA model

The AIDA model is a classic framework used in marketing and advertising to
understand and analyze the stages that consumers typically go through when making
a purchasing decision. AIDA stands for Attention, Interest, Desire, and Action,
representing the sequential steps that consumers follow in response to marketing
stimuli. Let's break down each stage:
1. Attention:
• At the attention stage, the goal is to grab the consumer's attention and
make them aware of the product, brand, or message.
• Marketers use various attention-grabbing techniques such as eye-
catching visuals, intriguing headlines, or compelling slogans to stand
out amidst the clutter of marketing messages.
• The objective is to break through the consumer's awareness threshold
and make them notice the product or brand.
2. Interest:
• Once attention is captured, the next stage is to pique the consumer's
interest and engage them further with the product or brand.
• Marketers focus on highlighting the key benefits and features of the
product, demonstrating how it meets the consumer's needs or solves
their problems.
• By providing relevant information and addressing consumer concerns,
marketers aim to sustain the consumer's interest and keep them
engaged with the product.
3. Desire:
 • After generating interest, the goal is to stimulate desire or create a
sense of want or need for the product.
• Marketers employ persuasive techniques such as storytelling,
testimonials, or emotional appeals to evoke desire and build an
emotional connection with the consumer.
• The emphasis is on showcasing the product's value proposition and
unique selling points to convince the consumer that the product is
worth purchasing.
4. Action:
• The final stage of the AIDA model is to prompt the consumer to take
action, such as making a purchase, signing up for a trial, or requesting
more information.
• Marketers use clear and compelling calls-to-action (CTAs) to encourage
the consumer to take the desired action.
• It's important to make the action step as easy and seamless as possible
for the consumer to minimize barriers and facilitate conversion.

Digital Marketing in Promotion Mix:

Digital marketing has become an integral component of the promotion mix for
businesses across various industries. It refers to the use of digital channels, platforms,
and technologies to promote products, services, or brands to a target audience.
Digital marketing offers numerous advantages over traditional marketing methods,
making it a highly effective tool for reaching and engaging consumers. Some key
components of digital marketing in the promotion mix include:
1. Website: A well-designed and user-friendly website serves as the central hub
for a company's online presence. It provides essential information about the
business, its products or services, and allows customers to make purchases or
inquiries.
2. Search Engine Optimization (SEO): SEO involves optimizing a website's
content and structure to improve its visibility and ranking on search engine
results pages (SERPs). By targeting relevant keywords and optimizing for
search algorithms, businesses can attract organic traffic and increase their
online visibility.
3. Content Marketing: Content marketing involves creating and distributing
valuable, relevant, and consistent content to attract and retain a clearly
defined audience. Content can take various forms, including blog posts,
articles, videos, infographics, and ebooks, and aims to educate, entertain, or
inspire the target audience while subtly promoting the brand.
4. Social Media Marketing: Social media platforms such as Facebook, Instagram,
Twitter, LinkedIn, and TikTok offer powerful channels for connecting with
customers, building brand awareness, and driving engagement. Social media
marketing involves creating and sharing content, engaging with followers,
running targeted ads, and leveraging influencers to reach a wider audience.
5. Email Marketing: Email marketing remains one of the most effective digital
marketing channels for nurturing leads, retaining customers, and driving
conversions. Businesses can use email marketing to send personalized
messages, promotional offers, newsletters, and product updates to
subscribers, segmented based on their preferences and behavior.
6. Pay-Per-Click (PPC) Advertising: PPC advertising allows businesses to bid for
ad placement on search engines and other digital platforms, paying only when
a user clicks on their ad. Popular PPC advertising platforms include Google Ads
and Bing Ads, which offer targeting options based on keywords, demographics,
interests, and more.
7. Affiliate Marketing: Affiliate marketing involves partnering with third-party
affiliates or influencers who promote products or services in exchange for a
commission on sales or leads generated. It's a cost-effective way to expand
reach and drive conversions, leveraging the affiliate's existing audience and
credibility.
8. Mobile Marketing: With the proliferation of smartphones and mobile devices,
mobile marketing has become essential for reaching consumers on the go.
This includes mobile-responsive website design, SMS marketing, mobile apps,
and location-based targeting to deliver relevant offers and messages to users
based on their geographic location.
 Unit 5

Major Decisions in International Marketing:

1. Market Selection
2. Market Entry Strategy
3. Product Adaptation
4. Promotional Strategy
5. Distribution Strategy
6. Pricing Strategy
7. Legal and Regulatory Compliance

Five modes of Entry into the foreign markets:

Expanding into foreign markets requires strategic decisions regarding the mode of
entry. Companies can choose from several modes, each with its own advantages,
risks, and resource requirements. Here are five common modes of entry into foreign
markets:
1. Exporting: Exporting involves selling products or services produced in the
home country to customers in foreign markets. This can be done through
various methods, including direct exporting (selling directly to foreign
customers), indirect exporting (using intermediaries such as agents,
distributors, or trading companies), or e-commerce platforms. Exporting is
relatively low-risk and requires minimal investment in establishing a presence
in foreign markets, making it suitable for companies new to international
business.
2. Licensing and Franchising: Licensing and franchising are contractual
agreements that allow foreign companies to use intellectual property,
trademarks, or business models owned by the licensor or franchisor in
exchange for royalty payments or fees. Licensing involves granting rights to use
patents, copyrights, technology, or brand names, while franchising involves
granting rights to use a complete business format, including branding,
products, services, and operating systems. Licensing and franchising are
attractive options for companies seeking to expand globally without making
significant investments in physical infrastructure or operations.
 3. Joint Ventures: Joint ventures involve forming partnerships with local
companies or entities in foreign markets to establish a new business entity.
Joint ventures allow companies to leverage the local partner's knowledge,
resources, distribution networks, and market expertise while sharing risks,
costs, and profits. Joint ventures can take various forms, including equity joint
ventures (where both parties invest capital and share ownership) or non-
equity joint ventures (where parties collaborate on specific projects or
ventures without forming a separate legal entity).
4. Strategic Alliances: Strategic alliances involve collaborative agreements
between two or more companies to pursue common goals or projects in
foreign markets. Unlike joint ventures, strategic alliances typically do not
involve the creation of a separate legal entity but rather involve cooperation
on specific initiatives such as research and development, marketing,
distribution, or production. Strategic alliances allow companies to access
complementary resources, capabilities, or markets while sharing risks and
costs.
5. Foreign Direct Investment (FDI): Foreign direct investment involves
establishing a physical presence in foreign markets by investing in or acquiring
existing businesses, assets, or subsidiaries. FDI allows companies to gain full
control over operations, resources, and decision-making processes in foreign
markets, providing greater flexibility and autonomy compared to other modes
of entry. FDI can take various forms, including wholly-owned subsidiaries, joint
ventures, mergers, acquisitions, or greenfield investments (building new
facilities from scratch). FDI requires substantial financial resources,
commitment, and a thorough understanding of local market conditions,
regulations, and cultural factors.

Global Marketing Mix Program

The global marketing mix program, often referred to as the international marketing
mix or global marketing strategy, consists of the set of marketing tactics and
strategies that a company employs to promote its products or services in foreign
markets. It encompasses various elements that are adapted or standardized to suit
the needs and preferences of target customers in different countries or regions. The
global marketing mix program typically includes the following components:
1. Product: The product component of the global marketing mix involves
decisions related to the design, features, branding, packaging, and quality of
the products or services offered in foreign markets. Companies must decide
 whether to standardize their offerings across all markets or adapt them to
local preferences and requirements. Product decisions also encompass
product positioning, differentiation, and innovation strategies to meet the
needs of diverse customer segments in global markets.
2. Price: Pricing decisions in the global marketing mix program involve
determining the pricing strategy, structure, and levels for products or services
in foreign markets. Companies must consider factors such as local market
conditions, competitive pricing, currency fluctuations, regulatory
requirements, and purchasing power parity when setting prices. Pricing
strategies may vary from market to market, including standard pricing, market-
based pricing, cost-based pricing, skimming pricing, penetration pricing, or
value-based pricing, among others.
3. Promotion: The promotion component of the global marketing mix includes
various tactics and channels used to communicate with target customers and
create awareness, interest, desire, and action (AIDA) for products or services
in foreign markets. Companies employ a mix of advertising, public relations,
sales promotion, direct marketing, digital marketing, social media, events,
sponsorships, and other promotional activities tailored to local market
preferences, media habits, and cultural norms. Promotional messages may be
adapted or localized to resonate with target audiences in different countries or
regions.
4. Place (Distribution): The distribution component of the global marketing mix
involves decisions related to the distribution channels, logistics, and supply
chain management for delivering products or services to customers in foreign
markets. Companies must select the most efficient and cost-effective
distribution channels, including direct sales, agents, distributors, wholesalers,
retailers, e-commerce platforms, or a combination of these. Distribution
strategies may vary depending on factors such as market size, infrastructure,
regulatory environment, and customer preferences.
5. People: The people component of the global marketing mix focuses on the
human resources, skills, and capabilities needed to implement marketing
strategies and deliver customer value in foreign markets. This includes hiring
and training personnel, developing cultural competency and language skills,
and ensuring effective communication and customer service to meet the
needs of diverse customer segments across different countries or regions.
6. Processes: The processes component of the global marketing mix involves the
systems, procedures, and workflows used to execute marketing strategies and
deliver products or services to customers in foreign markets. This includes
 order processing, inventory management, customer relationship management
(CRM), market research, new product development, and other operational
processes designed to enhance efficiency, effectiveness, and customer
satisfaction in global markets.
7. Physical Evidence: The physical evidence component of the global marketing
mix refers to the tangible and intangible elements that customers perceive as
evidence of the company's products or services in foreign markets. This
includes factors such as store layout, ambiance, signage, packaging,
warranties, guarantees, testimonials, reviews, and other cues that influence
customer perceptions, trust, and confidence in the brand. Companies must
ensure consistency and quality in physical evidence across different markets to
maintain brand reputation and customer loyalty.

Country of Origin Effects:

Country of origin effects refer to the influence that a product's or brand's country of
manufacture or origin has on consumer perceptions, attitudes, and purchasing
behaviour. This effect can manifest in various ways and can significantly impact
consumer preferences, brand perceptions, and purchase decisions. Some key aspects
of country-of-origin effects include:
1. Perceived Quality and Reputation
2. Brand Image and Equity
3. Consumer Preferences and Purchase Intentions
4. Perceived Risk and Trust
5. Globalization and Cultural Adaptation
Rural Marketing in India (a) Characteristic of Rural Markets (b)
Challenges in Rural Markets (c) Marketing Mix Variables in Rural
Markets
(a) Characteristics of Rural Markets in India:
1. Vast Geographical Spread: Rural areas in India cover a significant portion of the
country's landmass, often with dispersed populations and limited
infrastructure. This vast geographical spread pose logistical challenges for
market penetration and distribution.
2. Heterogeneous Demographics: Rural India comprises diverse socio-economic
groups, cultural backgrounds, languages, and lifestyles. Understanding and
catering to the needs and preferences of this heterogeneous consumer base is
essential for effective rural marketing.
3. Low Per Capita Income: Rural households generally have lower income levels
compared to urban counterparts. As a result, price sensitivity is high, and
affordability plays a crucial role in purchase decisions.
4. Agriculture-Based Economy: Agriculture is the primary source of livelihood for
a large proportion of the rural population. Thus, rural markets are heavily
influenced by seasonal variations, agricultural cycles, and dependence on
monsoons.
5. Traditional Consumption Patterns: Rural consumers often exhibit traditional
consumption patterns and preferences, rooted in cultural and societal norms.
Products with strong cultural relevance and practical utility tend to perform
well in rural markets.
6. Limited Infrastructure and Connectivity: Rural areas often lack basic
infrastructure such as roads, electricity, telecommunications, and retail
outlets. Poor connectivity and accessibility can hinder market access and
distribution efficiency.
7. Importance of Interpersonal Relationships: Rural consumers place significant
value on interpersonal relationships, trust, and word-of-mouth
communication. Influencers such as local leaders, community elders, and
opinion leaders play a crucial role in shaping purchase decisions.
(b) Challenges in Rural Markets in India:
1. Accessibility and Distribution: Poor infrastructure, inadequate transportation
networks, and scattered populations pose challenges in reaching rural markets
effectively. Limited access to distribution channels and last-mile connectivity
further complicates distribution logistics.
2. Low Literacy and Awareness: Rural consumers often have low literacy levels
and limited exposure to formal education and media. This poses challenges in
creating awareness about products, brands, and marketing messages.
3. Seasonal Demand Fluctuations: Rural markets are highly dependent on
agricultural cycles and seasonal factors. Fluctuations in crop yields, weather
conditions, and festivals can lead to significant variations in demand for
products and services.
4. Affordability and Price Sensitivity: Rural consumers are highly price-sensitive
due to lower income levels and limited purchasing power. Companies need to
offer products at affordable price points while ensuring profitability.
5. Lack of Infrastructure and Technology: Limited access to basic infrastructure
such as electricity, telecommunications, and internet connectivity hampers the
adoption of modern marketing techniques and e-commerce platforms in rural
areas.
6. Cultural Sensitivity and Language Barriers: Diverse cultural backgrounds and
languages prevalent in rural India require companies to tailor their marketing
communication and branding strategies to resonate with local sentiments and
preferences.
7. Trust and Credibility: Building trust and credibility among rural consumers is
essential due to the reliance on word-of-mouth recommendations and
interpersonal relationships. Companies need to invest in building long-term
relationships and delivering value to earn the trust of rural consumers.
(c) Marketing Mix Variables in Rural Markets:
1. Product: Products in rural markets need to be tailored to meet the specific
needs, preferences, and affordability levels of rural consumers. Companies
may need to adapt product features, packaging sizes, and formulations to suit
rural requirements.
2. Price: Pricing strategies in rural markets must take into account the
affordability levels and price sensitivity of rural consumers. Companies may
need to offer products at lower price points, introduce cost-effective
packaging options, and provide discounts or incentives to attract rural
customers.
3. Place (Distribution): Distribution channels in rural markets need to be
extensive, efficient, and well-suited to the unique characteristics of rural areas.
Companies may need to invest in building a robust distribution network,
including rural distribution centers, village-level retailers, and door-to-door
sales.
4. Promotion: Promotional strategies in rural markets should focus on creating
awareness, educating consumers, and building trust through local media,
events, and community engagement initiatives. Word-of-mouth, influencer
marketing, and experiential marketing are effective promotional tools in rural
areas.
5. People: Building relationships and trust with rural consumers requires trained
and empathetic sales and marketing personnel who understand local customs,
languages, and cultural sensitivities. Companies may need to invest in training
and developing a skilled workforce for effective rural marketing.
6. Process: Streamlining processes and operations to cater to the unique needs
of rural markets is essential for success. Companies may need to adopt
innovative distribution models, leverage technology for last-mile connectivity,
and ensure efficient supply chain management to overcome logistical
challenges.
7. Physical Evidence: Creating a positive brand image and enhancing credibility
through tangible cues such as packaging, branding, signage, and product
displays is crucial in rural markets. Companies should focus on delivering high-
quality products and providing excellent customer service to build trust and
loyalty among rural consumers.