Marketing Basics Primer: Page 4 Of 68

Marketing Basics Primer 2018

Marksoc-The Marketing Society, FMS Delhi

Page 4 of 68

Table of Contents 1.

Marketing Vs Selling ..................................................................................................................... 4

2.

Marketing Mix (4Ps & 7P’s) .......................................................................................................... 9

3.

Differentiation ............................................................................................................................ 17

4.

Positioning .................................................................................................................................. 18

5.

Types of Entry Strategies, Specific Attack Strategies ................................................................. 19

6.

Consumer Derived Value............................................................................................................ 20

7.

B2B, B2C and C2C marketing...................................................................................................... 21

8.

4 C’s of Marketing ...................................................................................................................... 26

9.

4 A’s of Rural Marketing ............................................................................................................. 28

10.

ATL, BTL and TTL Advertising...................................................................................................... 29

11.

What is a Brand? ........................................................................................................................ 28

12.

Brand Extension – Category extension and Line extension ....................................................... 29

13.

Brand Equity ............................................................................................................................... 34

14.

Brand Rituals .............................................................................................................................. 36

15.

Brand Rivalry Examples .............................................................................................................. 34

16.

Buyer Decision Process .............................................................................................................. 38

17.

Customer Relationship Management ........................................................................................ 37

18.

Digital Marketing /Online Marketing ......................................................................................... 38

19.

Experiential Marketing ............................................................................................................... 39

20.

Ambush Marketing ..................................................................................................................... 40

21.

Cause marketing......................................................................................................................... 44

22.

Green Marketing ........................................................................................................................ 45

23.

Guerrilla Marketing. ................................................................................................................... 45

24.

Image & Emotional Marketing ................................................................................................... 47

25.

Marketing Myopia ...................................................................................................................... 48

26.

Non-Conventional Advertising mediums ................................................................................... 49

27.

PLC and Strategies at Each Stage ............................................................................................... 49

28.

Sports Marketing ........................................................................................................................ 52

29.

Types of Advertising ................................................................................................................... 57

30.

USP, ESP ..................................................................................................................................... 58

31.

Distribution channels ................................................................................................................. 59

32.

Recent retail strategies being adopted by big players in India .................................................. 58

33.

What can be defined as the luxury market in India? ................................................................. 63

34.

What is defined as BOP Market? ............................................................................................... 64

35.

What is integrated marketing communication (IMC)?............................................................... 64

36.

Services marketing ..................................................................................................................... 64

37.

Viral Marketing........................................................................................................................... 65

38.

Word of Mouth Marketing ......................................................................................................... 66

39.

BCG MATRIX ............................................................................................................................... 67

40.

ANSOFF MATRIX ......................................................................................................................... 68

41.

Porter’s Five Forces .................................................................................................................... 67

1.

Marketing Vs Selling Selling : Selling includes the activities that get customers to make a purchase. Selling is closing sales that make you money. E.g., an insurance agent trying to sell insurance, a salesperson selling encyclopedias door to door. A few things included in selling are: presenting, answering questions, making suggestions, doing proposals or estimates, addressing concerns, negotiating, and most important, asking for the sale and then completing the sales agreement, etc. Selling converts the product in to cash for the company in the short run. Marketing : Marketing as a concept and approach is much wider than selling and is also dynamic as the focus is on the customer rather than the product. Marketing consists of all those activities that are associated with product planning, pricing, promoting and distributing the product or service. The task commences with identifying consumer needs and does not end till feedback on consumer satisfaction from the consumption of the product is received. Mind share is more important than market share in Marketing. It is an integrated communications-based process through which individuals and communities are informed or persuaded that existing and newly-identified needs and wants may be satisfied by the products and services of others. Marketing creates the atmosphere to make it easy for sales to happen. Here are some marketing activities:          

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

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

Management is sales volume oriented

Marketing Customer Focused Company first determines customers needs and wants and then decides out how to deliver a product to satisfy these Management is profit oriented

Profit through sales maximization Cost determines Price Planning is short-run-oriented in terms of today’s products and markets

Profit through customer satisfaction Consumers determine price, price determines cost Planning is long-run-oriented in today’s products and in terms of new products, tomorrow’s markets and future growth

STP – Segmentation, Targeting and Positioning

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

Demographic

Psychographic

Behavioral

Country

Age

Lifestyle

Occasions

Region

Gender

Activities, Interests, Opinions

Benefits Sought

City

Income

Social Class

Usage Rates

Rural & SemiUrban Cities

Occupation

Personality

User Status

Education

Loyalty

Cultural Background

Buyer Readiness

Psychographic Segmentation 1. Lifestyle – Everyone has different habits based on their lifestyle. A customer might be school going, college going, office going or other. Lifestyle could also mean where the customer stands in his life cycle. Similarly, the lifestyle of a rural area customer might be different from

urban areas. Thus a consumer’s lifestyle can put him in one separate segment as per the marketer. Developed by the advertising agency Young & Rubicam, the following framework is called Cross Cultural Consumer Characterization (4Cs) for classification based on lifestyle:

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

c. Opinions – Opinions matter. And in the age of internet, opinions spread fast. There are agencies taking care of brands online such that they can immediately give feedback of what the public opinion about a brand / product is. 3. Social class – Different consumers fall in different social classes. This depends mainly on their buying power. Buying power is affected by the background of the customer, his income as well as his spending habits. Thus premium brands like Gucci, Longines or others always target the Sec A segments because they know that these would be the classes capable of buying their products. 4. Personality – Personality in psychographic segmentation is dependent on both – lifestyle as well as social class. A person will have a rich personality only if he has high buying power as well as the taste in clothes to maintain such a lifestyle. Thus the term “Brand personality” came into effect. The reason for which is that different brands target different personalities. A simple example would be if one asks what comes to mind when you hear “Harley Davidson bikers” more commonly known as Hogs. They would be people unshaven, tall, masculine; who like to live a rough lifestyle. That’s the personality built for Harley over time. Behavioral segmentation The following are commonly applied behavioral segments: 1. Occasions: Groups individuals according to the occasions when they purchase, use or think of buying a product. For example, chocolates sell well during Diwali, Valentine’s Day etc. 2. Benefits Sought: Groups individuals according to the benefits they seek from the product. 3. Usage Rate: Groups individuals according to the level of usage they make of the product, be it Heavy, Medium or Light usage. 4. User Status: Groups individuals according to whether they are non-users, potential users, first-time users, regular users, or ex-users of a product 5. Loyalty Status: Groups individuals according to their level of loyalty to the product. 'Hard core loyals' always purchase the product / brand in question. Whilst 'Soft core loyals' will sometimes purchase another brand, and 'Switchers' will not specifically seek out a particular brand, but rather purchase the brand available to them at time of need, or that which was on sale. 6. Buyer Readiness Stage: Groups individuals according to their readiness to purchase the product. This segmentation model is particularly useful in formulating and monitoring the marketing communication strategies employed to move consumers towards purchase of a product or brand. Stages in Buyer-Readiness Stage

Description

Awareness

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

Knowledge

The audience may well be aware of a product or company, but still have either very little knowledge of what the product or company does, or

possibly worse have the wrong impression of both the product and company. Daewoo when it first entered the UK Car Market, had to go about educating the target market about both its products and the company itself.

Liking

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

Preference

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

Conviction

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

Purchase

The last stage in buyer-readiness is purchase of the product; conviction to buy may still not result in actual purchase. Promotion may offer Sales Promotion discounts, or Personal Selling through Sales Representatives, in order to convert preference and conviction into a sale.

Targeting: Once the parameters are decided and the different groups corresponding to each parameter are decided, the next step for a marketer is to decide the groups he shall target to sell his product.

Positioning: Positioning is the act of designing the company’s offering in a way so as to develop a certain image in the minds of the consumers. It helps create an idea in the minds of the customers of the experience they will have if they choose the product ahead of others. How to write a positioning statement:For [target end user] Who wants/needs [compelling reason to buy]

The [product name] is a [product category] That provides [key benefit]. Unlike [main competitor], The [product name] [key differentiation]

STP Example: Amazon Kindle

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

2.

Marketing Mix (4Ps & 7P’s)

Product

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

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

There are three levels of product:

  

  

Core Product: The need that it satisfies. Eg: A car satisfies the need for transportation. Actual product: It is the product that you have or want to have. Eg: Blue colored BMW with boss speakers and sunroof etc. Augmented Product: It is the non-physical part of the product. It can also be said as the excess that you get beyond the tangible product. Eg: Warranty of 3 years in your car, customer service when you call their number, delivery at your doorstep, etc.

Some examples of the product decisions to be made are product variety, quality, design, features, brand name, functionality, styling, returns, safety, packaging, repairs and support, warranty, accessories and services. Price

The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The following are the five primary pricing strategies: 1. Penetration Pricing The price charged for products and services is set artificially low in order to gain market share. Once market share is achieved, the price is increased. This approach was used Hyundai in US and most airline companies in India. 2. Price Skimming This is opposite of Penetration pricing. Charging a high price initially because you have a substantial competitive advantage or have developed strong loyalty in a set of consumers. However, the

advantage is not sustainable for a long period of time. The high price tends to attract new competitors into the market, and the price inevitably falls due to increased supply or the pool of consumers willing to pay the price is exhausted. Examples would include Gaming consoles, and latest launches of books. 3. Premium Pricing Use a high price where there is uniqueness about the product or service. This approach is used where a substantial competitive advantage exists. For example, Apple, Starbucks, Chanel, etc. 4. Value Pricing This approach is either used when external factors such as recession or increased competition force companies to provide ‘value’ products and services to retain sales; or simply a long term strategy to keep a high barrier for entry in the category. Example: Value meals at McDonalds, Prices offered at Walmart and Big Bazaar. 5. Target Based Pricing In this type of pricing, the ROI is calculated in the first place, and the cost is arrived at by back calculation. This approach is usually used by companies which require a high capital investment like Automobile manufacturers, electric and gas companies etc. In addition to above, following are few more pricing strategies: Trial Pricing This is similar to penetration pricing but differs in the objective. Penetration pricing is used to increase market share of the brand whereas trial pricing is used to increase trials for a new product brand. Eg: Nivea face balm Economy Pricing This is a no frills low price. The cost of marketing and manufacture are kept at a minimum. Supermarkets often have economy brands for soups, spaghetti, etc. Psychological Pricing This approach is used when the marketer wants the consumer to respond on an emotional, rather than rational basis. For example, pricing apparels at 699 or 999; Garnier men’s white face wash at Rs 49. Product Line Pricing The approach used by separating goods into cost categories in order to create various quality levels in the minds of consumers. For example, car washes. Basic wash could be $2, wash and wax $4, and the whole package $6. Another example could be Gym packages. Optional Product Pricing When a company sells a base product at a relatively low price, but sells complementary accessories at a higher price. For example, airlines charge for optional extras such as guaranteeing a window seat or reserving a row of seats next to each. Captive Product Pricing/ Bait and Hook Strategy Low price are offered for the core product, but high prices are placed on captive products which are necessary to use the product. For example, a razor manufacturer will charge a low price and make profits from the sale of the only design of blades which fit the razor. Printer ink is another example. Product Bundle Pricing

Here sellers combine several products in the same package. This also serves to move old stock. Videos and CDs are often sold using the bundle approach. Promotional Pricing Pricing to promote a product is a very common application. There are many examples of promotional pricing including approaches such as BOGO (Buy One Get One Free) or giving 20% off, etc. Price Discrimination Price Discrimination is a pricing strategy where identical or largely similar goods or services are transacted at different prices by the same provider in different markets. Example – Different costs of soft drinks at different channels like airports and retail stores. Cost Plus Pricing Cost-plus is a pricing method used by companies because it is easy to calculate and requires little information. One first calculates the cost of the product, and then includes an additional amount to represent profit. Cost-plus pricing is often used on government contracts. Loss Leader Pricing Loss leader is a product sold at a low price (at cost or below cost) to stimulate other, profitable sales. The price can even be so low that the product is sold at a loss. A loss leader is often a popular article. Eg: Supermarkets selling one thing at exceptionally low price and hence inviting footfall. These people end up buying a lot many things making an overall profit for the supermarket. Place

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

Do we use direct or indirect channels? (e.g. 'direct' to consumer, 'indirect' via a wholesaler). Single or multiple channels. Cumulative length of the multiple channels. Types of intermediary. Number of intermediaries at each level (e.g. how many retailers in Southern India). Which companies as intermediaries to avoid 'intra-channel conflict' (i.e. in-fighting between local distributors) Market coverage (inclusive, selective, or exclusive distribution) Transportation, reverse logistics

Selection Consideration - how do we decide upon a distributor?

 

  

Market segment - the distributor must be familiar with your target consumer and segment Changes during the product life cycle - different channels can be exploited at different points in the PLC e.g. Foldaway scooters are now available everywhere. Once they were sold via a few specific stores. Producer - distributor fit - Is there a match between distributors’ policies, strategies, image, and yours? Look for 'synergy'. Qualification assessment - Establish the experience and track record of your intermediary. Training - How much training and support will your distributor require?

Promotion

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

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

The Promotions Mix Let us look at the individual components of the promotions mix in more detail. 1. Personal Selling Personal Selling is an effective way to manage personal customer relationships. The sales person acts on behalf of the organization. They tend to be well trained in the approaches and techniques of personal selling. However, sales people are expensive and should only be used where there is a genuine return on investment. For example, salesmen are often used to sell cars or home improvements where the margin is high. 2. Sales Promotion

Sales promotion tends to be thought of as being all promotions apart from advertising, personal selling, and public relations. Sales promotion is of two types – consumer promotions (targeted at consumers) and trade promotions (targeted at retailers to ensure they buy more of the product to be kept in the store). Examples of consumer promotion include the BOGO promotion. Others include couponing, moneyoff promotions, competitions, free accessories, introductory offers (such as buy digital TV and get free installation), and so on. Examples of trade promotion include – trade schemes, gifts to retailers on purchase of particular amount of SKU, extra SKUs when purchase crosses a particular number etc. 3. Public Relations (PR) Public Relations is defined as 'the deliberate, planned and sustained effort to establish and maintain mutual understanding between an organization and its public. Successful strategies tend to be longterm and plan for all eventualities. For example, the PR team of an airline company is quick to respond in case of a mishap. 4. Direct Mail Direct mail is a highly focused consumer targeting strategy based upon a database. As with all marketing, the potential consumer is 'defined' based upon a series of attributes and similarities. Creative agencies work with marketers to design a highly focused communication in the form of mailing. The mail is sent out to potential consumers and responses are carefully monitored. For example, if you are marketing medical text books, you would use a database of doctors as the basis of your mail shot. 5. Trade Fairs and Exhibitions Such approaches are very good for making new contacts and renewing old ones. Companies seldom sell much at such events. The purpose is to increase awareness and to encourage trial. Trade fairs offer the opportunity for companies to meet with both the trade and the consumer. 6. Advertising Advertising is a 'paid for' communication. It is used to develop attitudes, create awareness, and transmit information in order to gain a response from the target market. There are many advertising 'media' such as newspapers (local, national, free, trade), magazines and journals, television, cinema, outdoor advertising (such as posters, bus wraps). 7. Sponsorship Sponsorship is where an organization pays to be associated with a particular event, cause or image. Companies will sponsor sports events such as the Olympics or Formula One. The attributes of the event are then associated with the sponsoring organization. The elements of the promotional mix are then integrated to form a unique, but coherent campaign. Extended marketing mix

In the 1980s Booms and Bitner included three additional 'Ps' to accommodate trends towards a service or knowledge based economy:   

People Process Physical evidence

Services are a special kind of product. What is different about services is the dominance of intangible attributes in the make-up of the “service product”. They may require special understanding and special marketing efforts. The need for the extension is due to the high degree of direct contact between the providers and the customers, the highly visible nature of the service process, and the simultaneity of the production and consumption. People

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

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

Banks that send out Credit Cards automatically when their customer’s old one has expired require an efficient process to identify expiry dates and renewal. Physical Evidence

Physical evidence is the material part of a service. Strictly speaking there are no physical attributes to a service, so a consumer tends to rely on material cues. There are many examples of physical evidence, including some of the following:          

Packaging (considered in the product dimension in the traditional 4Ps) Internet/web pages Paperwork (such as invoices, tickets and dispatch notes) Brochures Furnishings Signage (such as those on aircraft and vehicles) Uniforms Business cards The building itself (such as prestigious offices or scenic headquarters) Mailboxes and many others

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

3.

Differentiation

The market is flooded with similar products and offerings which creates a huge clutter of brands and products. It is essential for a marketer to be able to differentiate his product to break through the clutter. Differentiation based on product features is a difficult task with competitors taking no time in copying /adopting that feature. At the same time, differentiations based on incremental product improvements /features are difficult to develop and sustain in the market. Methods of differentiation: 1. Invest in R&D The market is moving in a direction where only those brands will succeed who can innovate. For example, Tata Nano. 2. Protect the Differentiation An important determinant of a successful differentiation is the brand’s ability to protect the differentiation. Smart brands use ingredient branding to protect their key differentiators. Ingredient branding is where a particular product feature or an ingredient is branded by the company. There are two kinds of ingredient brands. a. Where the ingredient is owned by another company. Intel is a pioneer in ingredient branding. Intel has built ingredient brands like Pentium, Celeron and Atom etc. b. Where the feature/ingredient is owned by the company itself. Bajaj has a powerful ingredient brand DTSI (which is also a patented technology) which it now uses for all of its two wheeler brands. 3. Connect to a Relevant Need When products become standardized, it is important for marketers to create differentiation focusing on consumer needs. ‘Brand laddering’ is a strategy that can be used by marketers to create differentiation on a need rather than on a product feature (attribute to value). Raymond is a brand that has created a space for itself by effectively laddering up to a customer need (Complete Man). The benefit of such a strategy is that competitors find it difficult to copy the differentiation since it is based on an intangible attribute. 4. Long Term Vision through Brand Charter A brand charter is an overall strategy that sets the course for a brand. This outline identifies the long-term goals of the brand and how it will interact with and overcome the challenges of its marketplace. It is important for marketers to create a brand charter which will spell out the long term vision for the brands, its differentiation and positioning platforms, guidelines and strategies. Types of Differentiation: Personnel Differentiation: By using better trained employees. Singapore airlines are well regarded because of its flight attendants. Channel Differentiation: By efficiently and effectively designing distribution channels coverage, expertise and performance. Eureka Forbes water purifiers and vacuum cleaners gained popularity due to their differentiated positioning through their direct to home channel.

Positioning Differentiation: It is the 'relative competitive comparison' a product occupies in a given market as perceived by the target market. For example, a car manufacturer might target buyers for whom safety is a major concern. The company "positions" its cars as the safest vehicles that customers can buy. Brands usually position themselves using certain parameters. These parameters highlight the most relevant features of its product and the image, the brands wishes to portray to its consumers. Product differentiation: You can differentiate products physically or through the services your company provides in support of the product. In business terms, to differentiate means to create a benefit that customers perceive as being of greater value to them than what they can get elsewhere. (Other words that mean virtually the same thing: Competitive Advantage; Unique Selling Proposition; or Value Proposition.) Ad: https://www.youtube.com/watch?v=fKunpnL4g0w&ab_channel=UnboxViews Products' physical distinctions include: form—size, shape, physical structure; for example, aspirin coating and dosage features—such as word processing software's new text-editing tool performance quality—the level at which the product's primary characteristics function conformance quality—the degree to which all the units of the product perform equally durability— product's expected operating life under natural or stressful conditions reliability—the probability that the product won't malfunction or fail reparability—the ease with which the product can be fixed if it malfunctions style—the product's look and feel Products' service distinctions include: ordering ease—how easy it is for customers to buy the product delivery—how quickly and accurately the product is delivered installation—how well the work is done to make the product useable in its intended location customer training—whether your company offers to train customers in using the product customer consulting—whether your company offers advising or research

4.

Positioning

A product's position is how potential buyers see the product. Positioning is expressed relative to the position of competitors. The term was coined in 1969 by Al Ries and Jack Trout in the paper "Positioning is a game people play in today’s me-too market place" in the publication Industrial Marketing. It was then expanded into their ground-breaking first book, "Positioning: The Battle for Your Mind". Positioning is something (perception) that happens in the minds of the target market. It is the aggregate perception the market has of a particular company, product or service in relation to their perceptions of the competitors in the same category. The ‘positioning statement’ of a brand consists of the following 4 things: 1. Who am I? – Obvious.

2. Who are my customers? – Your target market. This is included in the positioning statement as well. Something we probably didn’t include earlier. But this makes sense since the target audience is always considered in positioning. 3. Who are my competitors? - Positioning could be thought of simply as choosing your competitors, or, choosing the space you want to operate in. 4. Why me? – Here, you talk about what you usually study about positioning (How you want consumers to perceive the brand, distinctive place in the minds of the consumer, etc.) For example: Cadbury Dairy Milk 1) Kuch Meetha ho jaye 1) Cadbury Dairy Milk 2) 3) Competitors are traditional Indian sweets. I’m trying to occupy the mind space currently taken up by Indian mithai. 4) Me because of assured quality, standardization, taste, etc. etc. An alternate way of doing it: 2) Khaane Waalon ko Khaane ka bahaana chahiye 1) Cadbury Dairy Milk 2) 3) Here, competitors are regular snacks like chips, peanuts, etc. I’m trying to occupy the mind space currently taken up these snacks. Thus, the competition I’ve chosen is distinct from that in the previous example and this is where this positioning is different. 4) Me because of assured quality, standardization, taste, etc. etc. The positioning statement influences and can be seen in all brand communication.

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

5.

Types of Entry Strategies, Specific Attack Strategies

Type of entry strategy depends upon the market share that a company has. Market strategy for a market leader, market challenger, market follower and market niche would be different. The details of the kind of strategy to be followed is summarized in brief in (http://www.public.iastate.edu/~sjwong/pdf540/leader_follower_strategy.pdf) A GTM Strategy is a plan/framework that a firm develops with the intention of delivering better value proposition to the customers and to achieve a competitive advantage.

Three

aspects

are taken into

consideration when developing a GTM

Strategy,

Customers

Company

Competition

• Identifying needs, wants & desires • Delivering exceptional customer experience to build loyalty and advocacy of the customer

• Identifying core competencies of the company • Company's vission and mission statement are guiding principles

• Understanding the competition and their relative market position • Identifying gaps in the market yet to be fulfilled by the competition

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

6.

Consumer Derived Value

Marketing is about meeting the needs of your targeted market, but also providing them with a value. This value is determined when subtracting the benefits a customer gets from the product with the customer costs he does to get it. Cost here is not only the monetary cost that the consumer gives to buy a particular product. Cost is in terms of Psyche (the mind that he used to buy that product), Energy (the energy that he spent in buying), Time (time spent by the consumer to buy a particular product), monetary (actual price paid) and total cost (summation of all this). Value derived out of this is image (what will people think of me), personnel (how does the staff treat me), services (what all am I being offered), product (the actual tangible thing) and total (summation of all the values). Only if the value derived is more than the cost incurred, we will say that the consumer will be motivated to buy the product/ service. Consumer Behaviour is about how individuals make decisions to spend their available resources, such as time and money, on consumption-related items. In economic terms, the latent satisfaction or enjoyment received from consuming goods or services is called utility. Consumer purchasing decisions: Different consumers engage in different types of decisionmaking depending on how involved they are with the product, and whether it is necessary to engage in external research. For example, consumers have a different approach to purchasing small, routine items like toothpaste or dishwashing detergent, than they do if they are purchasing a home, investing in mutual funds, taking out a mortgage, or buying a personal computer. Although consumers still weigh alternatives and utilities across competing goods, the amount of information sought, and the cost of making an error, is much lower with simple purchases than with complex ones. High involvement purchase decisions (complex) involve products or services that are important to the consumer and more often than not are infrequent, but large, purchases. These types of purchases have greater risks associated with them, and as such, often require greater

involvement and research to mitigate these risks. For example, services like vacations, choice of physician, financial advisor or for products like houses, cars, and household furnishings, or personal computers). Consumers often search extensively for information, collecting it from a variety of sources, to evaluate alternative products or brands before making the purchase. However, some frequently purchased products, like perfume or cologne, can also be considered high involvement products because these products are tied to the social needs and ego of the individual. Although the frequency of repeat purchase and lower costs minimize the risks of a poor decision, these factors also enable a customer to judge which brand is best, with little thought given to competing alternatives. This process is frequently referred to as brand loyalty. Although the effect that the “brand influence” has on consumer behaviour varies from product to product, it is an important antecedent of product choice. Low involvement purchase decisions (simple) decisions are not as important to consumers, and are characterized by having lower risks; the search for information is likely to be minimal. As a result, decisions to purchase products such as cookies or cereals are often made within the store, either impulsively on the basis of the brand familiarity, or as a result of comparisons of the brands on the shelf. Consumers are more influenced by aesthetically pleasing packaging for low involvement decisions, and if they think of the products as having similar attributes, are more likely to be influenced by price. Consumption decisions made about frequently purchased items, via simple transactions, are easier to make on a trial-and-error basis and can easily be improved on. Because these decisions are routine and relatively inexpensive, they exert a much smaller influence on the life of the consumer.

7.

B2B, B2C and C2C marketing

Customer to Customer (C2C) Marketing In customer to customer markets, the business facilitates an environment where customers can sell goods and or services to each other. The quality of a product is vital for the continued success of a business. A terrific marketing strategy might bring a customer to your door, but if the product you deliver fails to satisfy, they will never return. "Customer to Customer includes all activities involving interaction between consumers. Customer to Customer activities include auctions between consumers that are facilitated by firms such as e-bay, personal, classified ads, ad games etc."

Word of Mouth is defined as "Personal communication about a product between target buyers and neighbors, friends, family members and associates." The following illustration focuses on the success behind Toyota Innova: Toyota Innova is a car that has a tag of a taxi, than that of a personal or a private car. And one of the sole reasons behind the huge volume of sales is its taxi tag. Now how did they get this taxi tag? It all happened because of the word of mouth – the best medium of advertisement. Private taxis are the most roughly-driven cars and if these drivers swear by a car, then it's the best ad for its reliability and toughness. How was Toyota able to win over these drivers? They won over them because they delighted them by exceeding their expectations, and making every moment and aspect of the relationship a pleasant - or better yet, an exhilarating experience.

Often we find that in a consumer decision process several individuals get involved. Each of them plays an influencing role. At times, more than one role may be played by an individual. These roles are: 1. Initiator: This is the person who sows the seed in a prospective customer's mind to buy the product. This person may be a part of the customer's family like spouse or parents, a friend, a relative, a colleague or even the sales person. 2. Influencer: Influencer is a person within or outside the immediate family of the customer who influences the decision process. The individual perceived as an influencer is also perceived as an expert. In consumer durable sales the dealer plays an influencing role. 3. Decider: He is the person who actually takes the decision. In a joint family often it's the head of the family or the elders in the family who take a decision. Husband, wife and even the entire family taking the decision, particularly on major purchases, is also quite common in urban and metro areas. The decider/s considers both economic and non-economic parameters before selecting a brand. It is important to note that the people who play these roles seek different values in the product or service. The perception of the value is to a large extent influenced by their prior experience of others, media reports and the marketing cues created by the firm. These values, which may also be referred to as market value is the potential of a product or service to satisfy customer's needs and wants. The most common and widely used example of C2C marketing is Ebay. Ebay provides sellers a platform to freely hawk their goods as well as interact with customers. These sellers themselves are non-business individuals. Another example is auctions, where sellers, who were initially customers themselves, sell goods that they have bought to other individual customers.

Business to consumer (B2C) Marketing Business to consumer marketing is when a business markets products to a consumer market. B2C products include goods and services such as food, clothes, cars, houses, phone services, credit repair services, etc. B2C features a large target market, single step buying process and shorter sales cycle. Repetition and imagery create its brand identity. Basically any business that offers a retail product to the public comes under this type. B2C marketing may involve advertising through newspapers, television and radio for better communication. Examples A family is at home on a Sunday night and is watching television. An advertisement appears that advertises home delivered pizza. The family decides to order a pizza. Walking down a supermarket aisle, a single man in his early 30's sees a hair care product that claims to reduce dandruff. He picks the product and adds it to his shopping cart. Business-to-Business (B2B) Marketing Business to Business marketing is the practice of individuals or organizations (commercial businesses, governments and institutions) facilitating the sale of their products or services to other companies or organizations that in turn resell them, use them as components in products or services they offer, or use them to support their operations. This is also known as Industrial marketing.

In B2B, the customers can be: 1. Companies that consume products or services eg. automakers, who buy gauges to put in their cars 2. Government agencies – this includes centre, state and local governments 3. Institutions - schools, hospitals and nursing homes, churches and charities 4. Resellers – wholesalers, brokers and industrial distributors The volume of B2B transactions is much higher than the volume of B2C transactions. The main reason is that in any supply chain, there will be many B2B transactions, e.g. involving subcomponent or raw materials, and only one B2C transaction, i.e. the finished good’s sale to customer. Some B2B Marketing Strategies: 

B2B Branding – Branding is defined as “the process of creating a unique name and image in a customer’s mind.” B2B branding is about developing the space that your brand takes up in the mind of the customer and having a “consistent value system” in how you interact with that customer.  Product – cost-saving or revenue-producing benefits of products/services should factor throughout product development and marketing cycle.  People – The importance of a knowledgeable, experienced and effective direct (inside or outside) sales force is often critical in the business market. Also, the target market for business products are smaller and have more specialized needs. Thus, there can be multiple influencers on purchase decision, and these need to be marketed to as well.  Pricing – Business markets can pay premium prices if the pricing and payment terms are structured well. This is particularly true in the case of a strong brand.  Promotion – Specific trade shows, analysts, publications, blogs and retail/wholesale outlets tend to be fairly common to each industry/product area.  Place – Being strategic about distribution channels Business Marketing vs. Consumer Marketing Although on the surface the differences between business and consumer marketing may seem obvious, there are more subtle distinctions between the two with substantial ramifications. Dwyer and Tanner (2006) note that business marketing generally entails shorter and more direct channels of distribution. While consumer marketing is aimed at large demographic groups through mass media and retailers, the negotiation process between the buyer and seller is more personal in business marketing. According to Hutt and Speh (2004), most business marketers commit only a small part of their promotional budgets to advertising, and that is usually through direct mail efforts and trade journals. While that advertising is limited, it often helps the business marketer set up successful sales calls.

8.

4 C’s of Marketing

Note that the four Ps represent the seller’s view of the marketing tools available for influencing the buyer. From a buyer’s point of view, each

marketing tool is designed to deliver a customer benefit. The shift from 4P’s to 4C’s isn’t just an exercise in semantics. It reflects a change in mindset overtime. Robert Lauterborn suggested that the seller’s four P’s correspond to the customer’s four Cs. Consumer You can't develop products and then try to sell them to a mass market. You have to study consumer wants and needs and then attract consumers one by one with something each one wants. This not only will help you in developing a desired product but also will help you:  

in developing a positioning strategy for your product, and in marketing your product as per your customer’s needs.

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

to research and find out all the channels of distribution your customers consider while making a purchase. to walk on your customer’s path and selling your product on the channels he is searching on to remove all the barriers your customers face while buying your product. The convenience aspect of marketing 4C’s is often neglected by businesses who prioritize greater profit margins over customer’s convenience. However, convenience result in more benefits to the brand in the long run.

Communication While promotion is manipulative and is forced to the buyer, communication is cooperative and is approved by both the seller and the buyer. Communication requires a give and take between the buyer and seller (that's nicer). Be creative and you can make any advertising "interactive". Consumer always want to hear ‘what’s in it for me?’, while the seller always want to tell ‘this is the best product in the market’. An effective communication considers both the sides and results in a win-win situation. Communication aspect of marketing 4C’s asserts a give and take relationship between the seller and the buyer, unlike promotion aspect of marketing 4P’s which doesn’t consider consumer’s point of view at all.

9.

4 A’s of Marketing

The components of the 4A model are a set of conditions that must be fulfilled to achieve success with any given product or service offering. To use a food analogy, the 4P's describe the raw ingredients available to the chef, and the 4A's describe the attributes of meals that will delight diners. Acceptability Acceptability has two dimensions - functional acceptability, and psychological acceptability. Functional acceptability refers to the "objective" performance attributes of a product or service. Does the product have the features that customers in the target market expect? Is it reliable? Does it perform as expected? Psychological acceptability refers to the more "subjective" attributes of a product or service. We often see psychological acceptability associated with so-called "luxury" brands. So, for example, a mid-priced automobile may be as objectively functional as a vehicle of comparable size made by Mercedes or BMW. But those brands are more psychologically acceptable to a certain segment of buyers. Affordability Affordability refers to whether customers in the target market are able and willing to pay a product's price. As this definition indicates, affordability also has two dimensions - economic affordability and psychological affordability. Economic affordability refers to whether the potential customers in the target market have sufficient economic resources to pay a product's price. Psychological affordability refers to a customer's willingness to pay, which is primarily determined by the customer's perception of the value he or she will obtain from a product or service relative to the cost of the product or service. Accessibility The third component of the 4A model is Accessibility, which describes whether customers can easily acquire and use a product or service. The two dimensions of accessibility are availability and convenience. Availability measures whether a selling company has enough of a product to match customer demand. Convenience refers to how easy it is for potential customers to acquire a product or service. Robert Woodruff, the former chairman of Coca-Cola, captures the essence of

Accessibility when he said in 1923 that Coca-Cola should always be "within an arm's length of desire." Awareness The final component of the 4A model is Awareness, which refers to whether customers are adequately informed about a product's attributes and benefits in a way that persuades potential buyers to give the product a try and reminds existing users whey they should continue to purchase a product. The two dimensions of Awareness are product knowledge and brand awareness. The basic idea here is that most potential customers will not buy unless they have a positive perception of the brand and adequate information regarding the specific product or service.

10. ATL, BTL and TTL Advertising

Above the line (ATL) 

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

Advantages of Above the line marketing:   

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

Below the line(BTL) 

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

Advantages of Below the line marketing: 

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

Examples of BTL Campaigns 

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

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

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

Through the Line (TTL)  

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

11. What is a Brand? 

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A brand is the identity of a specific product, service, or business. It is basically the perception the consumers have about the product. A brand can take many forms, including a name, sign, symbol, color combination or slogan. It is the emotional and psychological relationship you have with your customers. A legally protected brand name is called a trademark. Eg: Coca Cola, Apple A brand is a name or trademark connected with a product or producer. Brands have become increasingly important components of culture and the economy, now being described as "cultural accessories and personal philosophies". A brand is the essence or promise that a product, service or company will deliver or be experienced by a buyer.

Brand name The brand name is often used interchangeably within "brand", although it is more correctly used to specifically denote written or spoken linguistic elements of any product. In this context, a "brand name" constitutes a type of trademark, if the brand name exclusively identifies the brand owner as the commercial source of products or services. Effective brand names build a connection between the brand personalities as it is perceived by the target audience and the actual product/service. The brand name should be conceptually on target with the product/service (what the company stands for). Typically, sustainable brand names are easy to remember, transcend trends and have positive connotations. Brand experience and image Some people distinguish the psychological aspect of a brand from the experiential aspect. The experiential aspect consists of the sum of all points of contact with the brand and is known as the brand experience. The psychological aspect, sometimes referred to as the brand image, is a symbolic construct created within the minds of people and consists of all the information and expectations associated with a product or service. Brand identity A product identity, or brand image are typically the attributes one associates with a brand, how the brand owner wants the consumer to perceive the brand - and by extension the branded company, organization, product or service. The brand owner will seek to bridge the gap between the brand image and the brand identity. Brand identity is fundamental to consumer recognition and symbolizes the brand's differentiation from competitors.

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

12. Brand Extension – Category extension and Line extension Brand extension is a part of brand management to diversify and leveraging the existing brand by entering into new product category by new product development. A firm uses an established brand to introduce a new product, the product is called a brand extension. Advantages:

Helps in enhancing parent brand image. Helps in avoiding risk of developing new names. Major disadvantages:   

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

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

Surf, Surf Excel, Surf Excel Blue Coke, Diet Coke, Vanilla Coke Clinic All Clear, Clinic Plus Colgate Fresh, Colgate Total, Colgate Cibaca

A line can comprise related products of various sizes, types, colors, qualities, or prices. Line depth refers to the number of product variants in a line. Line consistency refers to how closely relate the products that make up the line are. Line vulnerability refers to the percentage of sales or profits that are derived from only a few products in the line. When you add a line extension that is of better quality than the other products in the line, this is referred to as trading up or brand leveraging. A Word of Caution - Although we might tend to think that Line Extension leads to more sales due because of more products and the company is anyways leveraging the brand equity that it has created. But it can sometime lead to drop in sales too, because it creates confusion in the minds of the consumer as to what the brand means. On example of that is 7Up. It became popular as a Lemon Uncola but in 1978 introduced many flavours such as 7Up Gold and Cherry 7Up and various diet versions too. As a result its sales dropped from 5.7% of the soda beverage market to 4.2%. Its advantages are:    

It helps in satisfying the changing desires of customers that is variety-seeking. It reduces risk associated with new product introduction in customers and distributors. It provides a convenient route for infusing new values into an ongoing brand and gaining presence in new market. It decreases the cost of gaining distribution and trial.

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It increases efficiency of promotional expenditures and allow for packaging and labeling efficiencies.

In a category extension, marketers use the parent brand to enter a different product category, such as Swiss Army watches. Honda has used its company name to cover such different products such as automobiles, snow blowers, lawn mowers, marine engines and snowmobiles. Research Insights on Brand Extensions  Successful brand extensions occur when the parent brand is seen as having favourable associations and there is a perception of fit between parent brand and the extension product.  There are many bases of fit: product related attributes and benefits, as well as nonproduct-related attributes and benefits related to common usage situations or user types.  A brand that is seen as prototypical of a product category can be difficult to extend outside the category  It can be difficult to extend into a product class that is seen as easy to make  A successful extension cannot only contribute to the parent brand image but also enable a brand to be extended even farther  An unsuccessful extension does not prevent a firm from 'backtracking' and introducing a more similar extension  The most effective advertising strategy for an extension emphasizes information about the extension(rather than reminders about the parent brand)

13. Brand Equity When developing a new product, branding is an important decision. The brand can add significant value when it is well recognized and has positive associations in the mind of the consumer. This concept is referred to as brand equity. There are several perspectives from which to view brand equity: 

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

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

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

Strong brand equity provides the following benefits:   

Facilitates a more predictable income stream. Increases cash flow by increasing market share, reducing promotional costs, and allowing premium pricing Brand equity is an asset that can be sold or leased.

However, brand equity is not always positive in value. Some brands acquire a bad reputation that results in negative brand equity. Negative brand equity can be measured by surveys in which consumers indicate that a discount is needed to purchase the brand over a generic product. Building and Managing Brand Equity In his 1989 paper, Managing Brand Equity, Peter H. Farquhar outlined the following three stages that are required in order to build a strong brand: 1. Introduction - introduce a quality product with the strategy of using the brand as a platform from which to launch future products. A positive evaluation by the consumer is important. 2. Elaboration - make the brand easy to remember and develop repeat usage. There should be accessible brand attitude, that is, the consumer should easily remember his or her positive evaluation of the brand. 3. Fortification - the brand should carry a consistent image over time to reinforce its place in the consumer's mind and develop a special relationship with the consumer. Brand extensions can further fortify the brand, but only with related products having a perceived fit in the mind of the consumer. Alternative Means to Brand Equity Building brand equity requires a significant effort, and some companies use alternative means of achieving the benefits of a strong brand. For example, brand equity can be borrowed by extending the brand name to a line of products in the same product category or even to other categories. In some cases, especially when there is a perceptual connection between the products, such extensions are successful. In other cases, the extensions are unsuccessful and can dilute the original brand equity. Brand equity also can be "bought" by licensing the use of a strong brand for a new product. As in line extensions by the same company, the success of brand licensing is not guaranteed and must be analysed carefully for appropriateness. Managing Multi Brands

Different c o m p a n i e s have opted for different brand strategies for multiple products. These strategies are: 

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

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

Cadbury Oreo: Oreo‘s “Twist Lick Dunk” is a very popular ritual among kids. Close up: The HA-HA thing which we do by holding our palm in front of our mouth to check the fresh breath. Pepsi My can: The way they hold the can in the ads to ask the viewers to do the same.

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Kitkat: Push the chocolate out of the paper wrap. Pull your thumb across the lines between the chocolate bars. Break it. Unwrap and eat. Tequila Shots: The trademark way of consuming tequila with salt and lemon wedges. Bru Cappuccino: Sip, Lick... Ummm..!! Denoted how to enjoy the cool drink and the coffee froth. Wrigley's Chiklets: - Shake the box of chewing gums 2 make that chik-chik noise. Ponds Googly Woogly wooksh:- Squeeze both the cheeks of the person who has used Ponds cold cream Boomer: The bubble that everyone started making while chewing the gum. Horlicks: Epang Opang Jhapang. Try and make a chocolate shake with Horlicks by using their freebie and this technique. Corona Beer: Put a piece of lime on the bottleneck.

15. Brand Rivalry Examples 

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McDonald’s Vs. Burger King: McDonald's Corporation founder Ray Kroc summed up the intensity of the fast food business best when he said of his competitors, "If they were drowning to death, I'd put the hose in their mouth." In the quick-serve restaurant industry, no two brands have waged war over customer loyalty as publicly as McDonald's and Burger King. The rivalry dates back to the mid-20th century as both companies emerged on the national scene, battling for territory and franchisees. There are only so many ways you can innovate when it comes to a hamburger, so copying competitors' ideas is standard practice. Take the Big Mac, which was launched in 1968 as McDonald's answer to the Whopper. Burger King declared all-out war in 1982 by launching an advertising campaign that claimed customers preferred the Whopper to McDonald's and Wendy's. Both chains countered by suing for false and misleading advertising. Ad: https://www.youtube.com/watch?v=KAupGnoG3m4&ab_channel=BuzzmanTV Samsung Vs. Apple in the extremely competitive American smartphone market. http://www.theverge.com/2014/9/14/6147301/samsung-ads-mocking-apple-history (Heinz)Complan vs (GSK) Horlicks: Complan has never been an aggressive player compared to the market leader Horlicks. This explains the reason why such a powerful brand is languishing in a distant position of 15% market share compared to the 60 % share of Horlicks. While Horlicks has been breaking new grounds with a series of variants aiming at the entire family segment, Complan was lying low all these years. The major happening for this brand in 2008 was the launch of the new flavor Kesari Badam . In the promotional front, the brand was in a low key mode continuing with the extension of its earlier campaign focusing on EXTRA growth. Article: http://www.mouthshut.com/diary/fecjmqtqm/COMPLAN-vs-HORLICKS Ad: www.youtube.com/watch?v=LcbLBJSTtQg (Nestle) Munch vs (Cadbury) Dairy Milk: Fighting with advertisements is not new in the Indian consumer market. First we saw two cola companies making ads against each other, then came two hot beverage products doing this and now it’s the turn for the chocolates - Dairy Milk vs Nestle Munch. Article: http://vettyofficer.blogspot.com/2009/08/dairy-milk-vs-nestle-munch-adwar.html http://themanmeetsabharwalblog.com/?tag=dairy-milk (Coca Cola) Sprite vs (Pepsi) Mountain Dew: Sprite came up with an ad hitting on mountain dew’s jingle. Ad: http://www.youtube.com/watch?v=QRIwkKF2cm8

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Duracell Vs. Energizer Batteries: Both of these major battery brands chose qualities of actual batteries to base their marketing upon. While one chose durability, the other chose energy (or the ability to energize). Clearly, Duracell wants to be the durable battery; the reliable battery; the battery that will be there for you. The Duracell marketing slogan? "Trusted everywhere." Then, there's Energerizer. The brand that's all about energy -- energy that keeps things going, and going, and going. Whereas Duracell is known for its copper top, the classic Energizer battery uses red and yellow in its design, two colors that are both associated with energy. The Energizer marketing slogan? "That's Positivenergy." Ad: https://www.youtube.com/watch?v=0l023ewk10Q&ab_channel=ClassicTVAds Starbucks Vs. Dunkin Donuts: Together, Dunkin’ Donuts and Starbucks control 60% of USA’s coffee market–36% Starbucks, 24% Dunkin’, according to a Harvard report. The two companies coexisted peacefully during Starbucks’s early growth, with the Boston-based Dunkin’ focused on its baked goods and the Seattle-based Starbucks teaching Americans how to say “macchiato.” But in 2003, sensing an opportunity, Dunkin’ introduced a line of lattes and cappuccinos, while continuing to emphasize its working-class bona fides. “You order [our drinks] in English, not Fritalian,” the company boasted in a 2006 commercial. Recent marketing campaigns continue to emphasize the brand’s sense of humor–“I’ve been craving, I’ve been craving–I get hungry when I see that billboard, baby,” a Beyoncé stand-in sings in the Dunkin’ parody of Queen B’s “Drunk in Love.” HUL v/s Eureka Forbes: Eureka Forbes making mockery of the Pureit Mascot, ie the guy in the yellow raincoat. There is a case filed by HUL regarding the same in the high court. Mercedes Vs. Jaguar: Refer to this link https://www.youtube.com/watch?v=ZJHt2qiMyr4 Other Rivalries includeo Sony vs Nintendo o AMD vs INTEL o Huggies vs Pampers o BMW vs Mercedes Benz

16. Consumer Buying Behavior and Buyer Decision Process Complex buying behavior – three-step process – develops belief about the product, attitude about the product and then makes a thoughtful choice. Dissonance reducing buying behavior – consumer is highly involved in a purchase but sees little difference in brands. Marketing communication should supply beliefs and evaluations that help the consumer feel good about his/her brand choice. Habitual buying behavior – bought under conditions of low involvement and absence of significant brand differences. Variety seeking buying behavior – characterized by low involvement but significant brand differences. Research suggests that customers go through a five-stage decision-making process in any purchase. This is summarized in the diagram below:

The model implies that customers pass through all stages in every purchase. However, in more routine purchases, customers often skip or reverse some of the stages. For example, a student buying a favorite hamburger would recognize the need (hunger) and go right to the purchase decision, skipping information search and evaluation. However, the model is useful when it comes to understanding any purchase that requires some thought and deliberation. 

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The buying process starts with need recognition. At this stage, the buyer recognizes a problem or need (e.g. I am hungry, we need a new sofa, I have a headache) or responds to a marketing stimulus (e.g. you pass Starbucks and are attracted by the aroma of coffee and chocolate muffins). An “aroused” customer then needs to decide how much information (if any) is required. If the need is strong and there is a product or service that meets the need close to hand, then a purchase decision is likely to be made there and then. If not, then the process of information search begins. A customer can obtain information from several sources: Personal sources: family, friends, neighbours, etc. o Commercial sources: advertising; salespeople; retailers; dealers; packaging; point-of-sale o displays o Public sources: newspapers, radio, television, consumer organizations; specialist magazines o Experiential sources: handling, examining, using the product The usefulness and influence of these sources of information will vary by product and by customer. Research suggests that customers value and respect personal sources more than commercial sources (the influence of “word of mouth”). The challenge for the marketing team is to identify which information sources are most influential in their target markets. In the evaluation stage, the customer must choose between the alternative brands, products and services. How does the customer use the information obtained? An important determinant of the extent of evaluation is whether the customer feels “involved” in the product. By involvement, we mean the degree of perceived relevance and personal importance that accompanies the choice. High-involvement purchases include those involving high expenditure or personal risk – for example buying a house, a car or making investments. Low involvement purchases (e.g. buying a soft drink, choosing some breakfast cereals in the supermarket) have very simple evaluation processes.

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Post-purchase evaluation - Cognitive Dissonance The final stage is the post-purchase evaluation of the decision. It is common for customers to experience concerns after making a purchase decision. This arises from a concept that is known as “cognitive dissonance”. The customer, having bought a product, may feel that an alternative would have been preferable. In these circumstances that customer will not repurchase immediately, but is likely to switch brands next time. To manage the post-purchase stage, it is the job of the marketing team to persuade the potential customer that the product will satisfy his or her needs. Then after having made a purchase, the customer should be encouraged that he or she has made the right decision.

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

17. Customer Relationship Management Main aim: customer retention and customer satisfaction According to the industry’s view, CRM consists of: 

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

Customer retention efforts involve considerations such as the following: 

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Customer valuation - describes how to value customers and categorize them according to their financial and strategic value so that companies can decide where to invest for deeper relationships and which relationships need to be served differently or even terminated. Customer retention measurement - This is simply the percentage of customers at the beginning of the year that are still customers by the end of the year.

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In accordance with this statistic, an increase in retention rate from 80% to 90% is associated with a doubling of the average life of a customer relationship from 5 to 10 years. This ratio can be used to make comparisons between products, between market segments, and over time. Determine reasons for defection - Look for the root causes, not mere symptoms. This involves probing for details when talking to former customers. Other techniques include the analysis of customers' complaints and competitive benchmarking. Develop and implement a corrective plan - This could involve actions to improve employee practices, using benchmarking to determine best corrective practices, visible endorsement of top management, adjustments to the company's reward and recognition systems, and the use of "recovery teams" to eliminate the causes of defections.

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

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Search Engine Optimization (SEO): The process of optimizing your website to ‘rank’ higher in search engine results pages, therefore increasing the amount of organic (or free) traffic that your website receives. Content Marketing: The creation and promotion of content assets for the purpose of generating brand awareness, traffic growth, lead generation, or customers. Inbound Marketing: Inbound marketing refers to the ‘full-funnel’ approach to attracting, converting, closing, and delighting customers using online content. Social Media Marketing: The practice of promoting your brand and your content on social media channels to increase brand awareness, drive traffic, and generate leads for your business. Pay-Per-Click (PPC): A method of driving traffic to your website by paying a publisher every time your ad is clicked. One of the most common types of PPC is Google AdWords. Affiliate Marketing: A type of performance-based advertising where you receive commission for promoting someone else’s products or services on your website.

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Native Advertising: Native advertising refers to advertisements that are primarily content-led and featured on a platform alongside other, non-paid content. BuzzFeed sponsored posts are a good example, but many people also consider social media advertising to be ‘native’- for example, Facebook advertising and Instagram advertising. Marketing Automation: Marketing automation refers to the software that exists with the goal of automating marketing actions. Many marketing departments have to automate repetitive tasks such as emails, social media, and other website actions. Email Marketing: Companies use email marketing as a way of communicating with their audiences. Email is often used to promote content, discounts and events, as well as to direct people towards the business’ website. Online PR: Online PR is the practice of securing earned online coverage with digital publications, blogs, and other content-based websites. It’s much like traditional PR, but in the online space.

19. Experiential Marketing It's a type of marketing strategy that engages an audience with a real-life invitation to engage with - or experience - a brand and what it makes or represents. It's participatory, hands-on, and tangible. It's the difference between telling people about features of a product or service and letting them experience the benefits for themselves. Examples:  “I Wanna Have a Sleepover in IKEA” of IKEA (2011) - When furniture retail giant IKEA found out about the Facebook group that called themselves “I wanna have a sleepover in IKEA”, it invited 100 winners out of the almost 100,000 members to a sleepover inside its furniture warehouse in Essex in the UK. 

“Probably the Best Poster in the World” of Carlsberg (2015) - Carlsberg is readily identifiable the world over for its tagline “Probably the best beer in the world”. “Probably the best poster in the world” campaign consisted of a giant, rectangular poster with a green background and the words visibly printed, in white, in the company’s identifiable font style. The poster was set up in an area in London known as a hub for beer drinkers. Londoners – specifically those who are 18 years old and above – queued up to get their one free pint of Carlsberg beer. http://www.adsoftheworld.com/media/outdoor/carlsberg_probably_the_best_poster_ in_the_world

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“Weather Rooms” of Globetrotter (2016) - German outdoor and sporting clothing and equipment company Globetrotter took the concept of a “fitting room” to another level by introducing the “weather room” in its stores. The weather room is essentially a chamber that lets customers get to prove the claims of Globetrotter products in a simulated environment.

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Hyundai “Drive-In” California event - The event was organized to get a real feel of driving a Hyundai Car. They gave customers a trial ride of Hyundai car on a special track made of obstacles. They were asked about the pick-up, speed, control, handling and breaking comfortability, along with interiors of the car. http://www.youtube.com/watch?v=lHVjPydAiKE http://www.youtube.com/watch?v=2PWWghyHpCQ&feature=related

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Coca Cola New Grip Bottle http://www.youtube.com/watch?v=Rs8YyYAXf2A&feature=player_embedded

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

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Coca-Cola: Unlock your inner 007 https://www.youtube.com/watch?v=RDiZOnzajNU&ab_channel=Coca-ColaZero

20. Ambush Marketing The definition of ambush marketing has changed over time. Originally it was a brand’s attempt to associate itself with a team or event without buying the rights so as to steal the spotlight from the rival that paid to be an official sponsor. However, these days, the platform has included advertisements in addition to just sponsorship. Ambushing occurs when the event is hijacked by any party who hasn’t sponsored it. It can be brand’s competitors or any other unrelated brand too. For instance, if company A and B are sponsoring an event, and A goes on an advertising blitzkrieg making it seem like the sole sponsor for the event, then B would be said to have been ambushed by A. When a company capitalize on the resources bought by some other company, who is not aware of it, to promote itself (or any of its products), it’s said to be using ambush marketing strategies. Examples of Ambush Marketing  Nike Olympics: It all started with the 1966 Olympics. Reebok was the official sponsor for the tournament. Nike paid the world’s fastest man of that time, Michael Johnson and gave him a golden pair of Nike shoes. He won his race and a few weeks later appeared on the cover of TIME magazine with the same pair of Nike shoes around his neck. Nike even opened a Nike Centre right beside the Athlete’s Village. They also distributed flags to fans guaranteeing that they would be seen in the stadiums.  Pepsi ambushed Coca Cola in 2014 Football World Cup: Coca Cola signed a contract and became the official marketing partner of FIFA and had a marketing, branding and activation exclusivity in the category relating to FIFA and World Cup efforts of every Football World Cup. Pepsi ambushed this marketing effort of Coca Cola by signing 19 renowned football players and launching its ‘Live for Now’ Campaign. Though not associated with the actual event, Pepsi’s marketing activities made it look like it was associated with it and this affected Coca Cola.  130 year old Mercedes Benz wished BMW its 100th birthday: Mercedes Benz effectively capitalized on the event of BMW’s 100th birthday and wished its competitor on social media while advertising for itself.  Pepsi’s ‘Nothing official about it’ Campaign: In 1996, Coca Cola acquired the rights of being the official sponsor of the cricket world cup held in India. However, to tackle the same, Pepsi launched a campaign named – “Nothing official about it’ and stole the limelight from Coca Cola. The instance perhaps marks the most famous example of

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ambush advertising in India. One of its effects was the stringent anti-ambush marketing laws that cricketers had to sign in 2002. https://www.youtube.com/watch?v=riwOAtmMhZY DHL vs The Competitors: DHL is one of the most known brand when it comes to delivery. Apart from being fast, they do have a witty minds when it comes it ambush marketing. DHL, instead of advertising this fact, played a trick on their competitors by making them deliver a big box which said – DHL is faster. American Express: In 1986, credit card company American Express—rival to official sponsor Visa Inc., began a marketing campaign in Asia promoting merchandise from a fictitious "Olympic Heritage Committee", supposedly based in Switzerland. American Express halted the campaign following complaints by the International Olympic Committee.

21. Cause marketing In 1983 for the Statue of Liberty Restoration project, a penny for each use of the American Express card, and a dollar for each new card issued was given to the Statue of Liberty renovation program. Over a four-month period, $2 million was raised for Lady Liberty, transaction activity jumped 28 % and the concept that doing good was good for business, was born. Cause marketing, also called cause-related marketing, refers to two related, but slightly different forms of marketing. The first involves a collaborative effort between a for-profit brand and a non-profit organization for mutual benefit. The term can also be used in a more general sense to refer to marketing by for-profit brands based around a social or charitable cause. There are also two other related but separate phenomena: corporate social responsibility (CSR) and corporate giving. CSR can (but doesn’t always) go beyond ensuring compliance to engage in actions that further some social good. This pursuit of high ethical standards drives good public relations for the business. Corporate giving generally involves a specific donation that is taxdeductible. Advantages:  Attracting and Retaining Customers  Market Differentiation  Outreach to Niche Markets There are a variety of types of cause marketing campaigns and they differ considerably in structure:  Portion of Purchase  Buy One Give One  Point of Sale  Proud Supporter  Event Sponsorship  License Agreement  Social Advocacy  Digital Engagement

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

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Health and hygiene: typical examples are the Unilever’s Lifebuoy hand wash campaign which focuses on the role of hand washing to enable a child to reach the age of five and the Domex Toilet Academy. Education: P&G’s Shiksha seeks to provide funds to build infrastructure in rural schools and Coca-Cola’s Support my School initiative. Ecology and environment: this includes Toyota’s Greenathon, a campaign to create environmental awareness; Aircel’s Save the Tiger campaign; and Unilever’s Kissanpur initiative to encourage children in the cities to grow tomatoes. Water: Kent water purifier’s Saaf Pani Swastha Bharat (Clean Water, Healthy India) initiative

22. Green Marketing The marketing of products that are presumed to be environmentally safe. Refers to the process of selling products and/or services based on their environmental benefits. Such a product or service may be environmentally friendly or produced and/or packaged in an environmentally friendly way Incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising. Also called Environmental Marketing and Ecological Marketing Examples 

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

23. Guerrilla Marketing Guerrilla Marketing is a marketing technique where marketers use creative, imaginative yet unconventional marketing tactics to get maximum reach and better results without involving heavy costs and resources. The term was coined and defined by Jay Conrad Levinson in his book Guerrilla Marketing. Guerrilla marketing involves unusual approaches such as intercept encounters in public places, street giveaways of products, PR stunts. Objective: The main objective of Guerrilla Marketing is to get maximum reach and brand engagement without incurring a large expense. Features:  Pocket-Friendly Campaigns: Guerrilla marketing usually involves campaigns that are more economical as well as effective.

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

Examples: 1)

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

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Colgate

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

24. Image & Emotional Marketing “Rational only generates interest in the product the ultimate driver is emotion” Emotional marketing appeals include personal and social needs, such as: security, comfort, happiness, acceptance, self-esteem, and status, achievement, saving money, or making money. These are basic underlying feelings that drive our decisions and buying behaviour. It may be a need for financial security, which is associated with an image of a safe investments and insurance, or it could be a desire for status and achievement, reinforced by the mental picture of luxury possessions. Your marketing can target positive emotions through the use of unusual words, word rhythms and rhymes, colours or shapes, pictures, numbers, or symbols, which reveal the associated feelings of a previous experience, like the pleasant smell of food cooking, or a day at the beach. Appealing to an underlying desire that triggers an automatic memory image can cause an emotional response that reinforces logical thoughts, which converge and lead to a buying decision. Rather than using ads with dull corporate speak, unfamiliar industry jargon, or selling how good you are, try tapping into the direct process of brain patterns and emotional images with sharp, specific, and relevant details that can sway the buying choices of your potential customers. Emotional marketing can be done via:    

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

Examples:  Nike succeeds because its core belief - its brand promise, its love of the potential for the athlete inside everyone lives inside the people in Beaverton. When that love is manifested in their gear, consumers manifest it in their own lives. The result is not only an emotional connection but an individual one.  Starbucks is one of the strongest global brands – without following the marketing text book. So what is the success factor of the Starbucks brand? The emotional experience of its consumers – they feel sophisticated and part of what many brand experts refer to as a "coffee house" community. For the Starbucks community, coffee is not just a beverage, but it is a ritual, a habit, a treat, and a satisfying reward all rolled in one. That’s the reason why Starbucks’ cup sizes are "grande" and "venti," not medium or large. Each cup of coffee is also freshly made by a "barista" at a separate counter and never behind a wall or out of sight from the customer. The Starbucks store has tables and chairs for congregating or reading and working, and many have plush sofas and armchairs. Many Starbucks also have Internet connection for their customers’ convenience. Maggi- We Miss You Too Kab wapas ayegaa yaar? Miss you."

"I miss you yaar. Come back, man." "Ab aa bhi jao. Miss you yaar."

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These are lines from the latest three-film digital campaign released by Nestlé Maggi. The ads are crafted to resemble a series of personal messages to an old buddy. As Nestle was making efforts to get Maggi Noodles back on the shelves, these ads were crafted to reflect the spontaneity and affection between consumers and Maggi. Singapore Airlines - Not only employs the more common consistent visual themes one might expect from an airline, but incorporates the same scent, Stefan Floridian Waters, in the perfume worn by flight attendants, in their hot towels, and other elements of their service.” Consumers then link the airline to the scent and, should they be smell Stefan Floridian Waters again, will be reminded of the airline and the pleasant emotions it brought them.

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

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

26. Non-Conventional Advertising mediums Non-traditional advertising is a form of advertising that is atypical. Non-traditional advertising can encompass alternative media and outdoor media. New emerging methods of advertising, the use of mediums that break from traditional advertising models. More traditional companies find it difficult to embrace non-traditional advertising, but are slowly becoming more aware and open-minded that it is a way of reaching consumers with a greater impact. There are two parts of such advertisements; the virtual world of engagement and the Physical world of engagement. Online Advertising: Display Ads or banner ads are small, rectangular boxes containing text and perhaps a picture that companies pay to place on relevant Web sites. Traditional these banners were placed on top of the web site or on the side panels, however now YouTube videos also have such ads below the video. Interstitials: Advertisements often with a video or animation, that pops up between changes on a Website. Sponsorships: Companies get their name of the web site by sponsoring certain content on the site. Online Communities: many companies sponsor online communities whose members communicate through postings, instant messaging and chat discussions about special interests to the company’s brands and products. GlaxoSmithKline when launched their first weight-loss drug ‘Alli’, they sponsored a weight-loss online community.

Social Media: Companies use social networking websites as a platform for advertising too. They project display ads to focus on their target audience using information given by users on the website. Examples: Facebook, Instagram, Pinterest, Tumblr, L’Oreal Paris’ Instagram Mobile Marketing: Every 2 minute mobile episode of Fox’s show Prison Break starts with a 10 second message that show cases Toyotas new subcompact sedan Yaris. Place advertising: Out Of Home Advertising (OOH), is a broad category including many creative and unexpected forms to grab customer’s attention. The rationale is that markers are better off reaching people where they work, play and of course shop. Billboards have been transformed and now use colorful digitally produced graphics, backlighting, sounds movement and usual 3 dimensional images. Examples:

Product placement in movie: Movie 3 Idiots, where Madhavan and Sharman Joshi travel in a Volvo XC90. Movie Taal where Coca Cola products are displayed during a song “Ishq Bina” , MakeMyTrip is shown in the movie Yeh Jawaani Hai Deewani. Product Sampling: Giving free samples of the product at malls or through other means. Contextual Advertising: Contextual advertising is a form of targeted advertising for advertisements appearing on websites or other media, such as content displayed in mobile browsers. The advertisements themselves are selected and served by automated systems based on the content displayed to the user. Wrapped Vehicles can include public transportation buses, trucks, shuttles, vans, automobiles, etc. This high-impact format reaches both pedestrian and vehicular traffic and provides market penetration by traveling throughout the target region. Entirely covered by full-colour advertising design, which is specifically for the vehicle. The customized overall design of this format provides eye-catching attention, promotional value and makes a statement about the advertiser. Examples:

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

Some of the examples above can fall in the ambit of Guerrilla Marketing. Another recent phenomenon is to create brand awareness by solving community problems. Two great examples of this are: Aircel stuck an empty raft on a billboard near the Milan Subway in Mumbai (which is notorious for flooding during the monsoons). The copy simply said, ‘In case of emergency, cut rope’. Sure enough, on July 13, Mumbai was flooded and so was Milan Subway. People in and around the area promptly removed the raft and used it to get around. This functional innovation was the talk of the town and got wide coverage in local media. Apart from the goodwill it generated among consumers (some of whom were referring to it as the Aircel boat), the buzz that it generated in unpaid media was huge. The world’s first solar powered billboard was introduced in Africa by Nedbank. It harnesses the solar energy of the sun into a much needed necessity: electricity. It currently powers the kitchens of a township primary school, and will, in time, completely generate the school’s required power needs.

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

Stage 1: Introduction It can be argued that this stage can influence the length of the PLC and so the product/service should be introduced in the market as effectively as possible. This is the time when the product/service is new in the market and a high degree of marketing will be needed such as promotions and advertising to increase commercial awareness. Sales will be slow during the introduction stage and so you should not become impatient and spend more money than necessary to try to increase the speed of sales: it will take time for people to use and trust your product/service. Stage 2: Growth Once your product/service has become established in the market, you can expect the number of sales to increase rapidly and marketing expenditure may now be used for brand building. Services over products will generally have far longer periods of growth. Products, particularly those that are new, will soon attract the attention of competitors. Once competitors join the bandwagon, the sales will gradually slow down and force you into marketing new prices: consequently resulting in fewer profits. If you have released your own version of an existing product (making you the competitor), then the growth stage may be short depending on how long the existing product has been available in the market.

Stage 3: Maturity The stage of maturity begins when the product/service sales peak and become stable mainly due to the introduction of competitors during the end of the growth stage (influencing the move into the maturity stage). Maturity does not only result from increased competition, but also by new alternative products/services in the market becoming more popular. Quite often, services in particular are withdrawn because they are no longer needed, unfavourable or out of fashion. Stage 4: Decline The product/service moves into the decline stage when sales start to drop continuously and will be a result of the issues that moved the product through maturity and saturation (competition, low demand, unfashionable, etc). The time taken to reach this stage of the PLC will differ with different products/services: for an extreme example, Kellogg's still have a range of cereals that are as popular today as when they were first released in the early 1900s. Also note; Kellogg’s may have the number one cereal, but they have to spend a lot of money advertising that fact: there being nothing new or exciting about plain old cornflakes makes this a great example of brand marketing. In the small business world, when your products/services move into decline, it is a good idea to either improve your product or remove it completely to avoid damaging your image.

Extending the PLC: Extension Strategies The most profitable period of the PLC is during the later stages of growth and maturity. This is the reason why many businesses try to delay the product/service from reaching the decline stages for as long as possible. This is done by introducing PLC extension strategies during the maturity stage. Although you may have your own ideas, the more common strategies include: A move into new markets e.g. supermarkets selling clothing Introducing accessories to the product or new additions to the service e.g. introducing financial management advice in accountancy book keeping services Changing the design and functionality of the existing product e.g. the packaging design, colour range, mobile phones used for Internet access. The best example of the same is Gillette. Gillette keeps changing the product line periodically and this keeps rejuvenating the market space with line extensions The Problems of PLC Models  Not all products/services go through every stage of the PLC and it is common to go straight from the introduction stage to decline (result of poor marketing)  It is often hard to tell which stage the product/service is in and consequently marketing actions taken, too early or too late  It can be said that the model can only be used to help identify the symptoms of each stage  Every product/service will spend different lengths of time in each stage and there is no physical way of showing this on the PLC model. However, the better your financial control, the more you will be able to track individual products/services

Strategies for the differing stages of the plc (Very important)

Introduction stage of PLC The need for immediate profit is not a pressure. The product is promoted to create awareness. If the product has no or few competitors, a skimming price strategy is employed. Limited numbers of product are available in few channels of distribution. Advertising differentiates the product.  Decide when to enter the market. To be first can be rewarding but very risky and expensive. But pioneer advantage is inevitable as they set the trend for the market class  Rapid-Skimming strategy involves launching the new product at a high price and high promotion levels  Slow-skimming strategy involves launching the new product at a high price and low promotion

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

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

Growth stage of PLC Competitors are attracted into the market with very similar offerings. Products become more profitable and companies form alliances, joint ventures and take each other over. Advertising spend is high and focuses upon building brand. Market share tends to stabilise. Advertising establishes participation with the marketplace.  Improve product quality and add new features and improved styling  Add new models and flanker products (i.e. products of different sizes, flavors, and so forth that protect the main product.  Enter new market segments.  Increase distribution coverage and enter new distribution channels  Lower price to attract the next layer of price-sensitive buyers  Shifts from product awareness advertising to product-preference advertising. Example: Ayurvedic medicine led by the increasing trend of natural products and Smart Watches can be said to be in the growth stage.

Maturity stage of PLC Those products that survive the earlier stages tend to spend longest in this phase. Sales grow at a decreasing rate and then stabilise. Producers attempt to differentiate products and brands are the key to this. Price wars and intense competition occur. At this point the market reaches saturation. Producers begin to leave the market due to poor margins. Promotion becomes widespread and uses a greater variety of media. Advertising puts price ahead of the competition. Market modification: the company might try to expand the market for its mature brand by increasing the number of users and/or the usage rate.  Convert non users  Enter new market segments

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Win competitor’s customers Promote more frequent use Use more of the product on each occasion New and more varied uses

Eg: Johnson & Johnson promoted its baby shampoo to adult users. Pears introduced pink soap to target children Product modification: Manager also try to stimulate sales by improving the product’s quality, features or style.  Quality improvement – increase the product’s functional performance. Eg: Pillsbury advertises its wheat flour as ‘chakki fresh atta’ and ‘good for family’s heart’  Feature improvement – add new features  Style improvement – increase the product’s esthetic appeal. Marketing mix modification: Modify other marketing program elements such as  Pricing – cuts, discounts, special occasions, credit terms, increase price and quality  Distribution – more outlets and new distribution channels  Advertising – increasing expenditure, change message, timing and frequency of advertising  Sales promotion - stepping up or reducing sales promotion  Personal selling – increase quality of sales force and sales territories  Services – speed up delivery and technical assistance. Example:

Decline stage of PLC At this point there is a downturn in the market. For example more innovative products are introduced or consumer tastes have changed. There is intense price-cutting and many more products are withdrawn from the market. Profits can be improved by reducing marketing spend and cost cutting. Defensive advertising or for revitalization  Increase investment – to dominate or strengthen its competitive position  Maintain its investment level until the uncertainties about the industry are resolved  Decrease its investment level selectively, by sloughing off unprofitable customer groups, while simultaneously strengthening its investment in lucrative niches  Harvesting investment to recover cash quickly  Divest the business quickly by disposing of its assets as advantageously as possible Examples:

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

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

29. Types of Advertising Advertising can be classified in different ways. 1. According to the medium used, advertising is of the following types: Print Advertising – Newspapers, Magazines, Brochures, Fliers Outdoor Advertising – Billboards, Kiosks, Tradeshows and Events Broadcast advertising – Television, Radio and the Internet Covert Advertising/Product placement – Advertising in Movies (Canon in ‘Barfi’) 2. Advertising can also be categorized as the following: o o o

Surrogate Advertising – Advertising Indirectly (Cigarettes, Alcohol) Public Service Advertising – Advertising for Social Causes (Polio Campaign, Sarva Shiksha Abhiyaan) Celebrity Advertising (Trump, SRK)

o o o

Infomercials Business to Business advertising Co-op advertising

3. On the basis of intent, Advertising can be split into two main types: Persuasive advertising - this tries to entice the customer to buy the product by informing them of the product benefit. (eg. Patanjali advertising its health benefits) Informative advertising - Providing the customer with information. Mostly one by the government (e.g. health campaigns, new welfare benefits, Consumer Awareness Campaigns etc.) https://www.thebalance.com/different-types-of-advertising-methods-38548 https://www.business.qld.gov.au/running-business/marketing-sales/marketingpromotion/advertising/types http://www.smalltownmarketing.com/sixads.html

30. USP, ESP USP (Unique Selling Point): “THE LOGICAL BENEFITS” The task of projecting your product as something which has differentiating factors comes under the ambit of USP. USP can be the product (Include features, packaging etc.); the service (Airtel 4G- 4G even in remote locations) ; a combination of product and service They should resonate with the needs and wants of the consumer. Examples: 1. Samsung’s mobile Marine: Features like Unbreakable, Water Proof 2. Dominos: 30 minutes or less 3. M&Ms: The milk chocolate melts in your mouth, not in your hand 4. NANO, World’s cheapest car 5. Mac Book Air: World’s lightest laptop 6. Slim Cameras 7. Nokia 1100: Torch Light Emotional Selling Point: “THE EMOTIONAL CONNECTION” It is said that people buy emotionally and then justify logically. The Emotional Selling Proposition gives you the opportunity to control the marketing message and to drive an emotional reaction that creates the connection and triggers "I want this. I am going to buy it." E.g.: You can emphasize the end emotion after purchase - L’Oréal’s "Because you're worth it" emphasizes pride and recognition of your own self-worth. Examples: 1. Dove: Real Beauty 2. Nike: Just Do It 3. Incredible India Campaign: Kerala “God’s place on Earth”

4. Insurance schemes like “SarUthakeJeeyo”, Almost all of them 5. Polio Campaign “Do Boond Zindagi Ki” and other social cause campaigns against poverty, AIDS etc. 6. Hero Honda Pleasure “ Why should boys have all the fun” 7. L’Oréal’s "Because you're worth it" emphasises pride and recognition of your own self worth 8. "Finger lickin' good" from KFC 9. "Make safe sex feel sexy" (Durex condoms) So think about the feelings and the emotions that you want to stir up with your prospects and clients and use them in your sales. Can your product/service make the prospect* Feel valued * Feel part of a unique group or select band of people * Feel attractive * Feel trendy "USPs are great but ESPs are even better"

31. Distribution channels Marketers use distribution channels to display, sell or deliver the physical product or service to the buyer or user. They include distributors, wholesalers, retailers and agents. There have also been some innovations in the distribution of services. For example, there has been an increase in franchising and in rental services - the latter offering anything from televisions through tools. There has also been some evidence of service integration, with services linking together, particularly in the travel and tourism sectors. For example, links now exist between airlines, hotels and car rental services. In addition, there has been a significant increase in retail outlets for the service sector. Outlets such as estate agencies and building society offices are crowding out traditional grocers from major shopping areas. Activities involved in the channel are wide and varied though the basic activities revolve around these general tasks: Ordering • Handling and shipping • Storage • Display • Promotion • Selling • Information feedback Channel Members: Distribution channels can thus have a number of levels. Kotler defined the simplest level that of a direct contact with no intermediaries involved, as the 'zero-level' channel. The next level, the 'one-level' channel, features just one intermediary; in consumer goods a retailer, for industrial goods a distributor. In small markets (such as small countries) it is practical to reach the whole market using just one- and zero-level channels. In large markets (such as larger countries) a second level; a wholesaler for example, is now mainly used to extend distribution to the large number of small, neighborhood retailers or dealers.

Retailers: Retailers can promote your product by making consumers aware of its availability and bypassing on technical information that could encourage the sale. Because there are thousands of retailers located all around the country, they are an excellent intermediary for distributing your product to a wide geographical range of consumers. Wholesalers: reaching a potentially large number of consumers. The main function of a wholesaler is to provide a link between the producer and the retailer. Once selling to a wholesaler, there are three ways that your product will reach the consumer. Firstly, the consumer will purchase directly from the wholesaler: this is the less common route out of the three. Alternatively, your products will be sold on by the wholesaler to retailers. The advantages of selling to a wholesaler are that: i. They may have strong links with quality retailers: research will help discover this fact. ii. Because they buy in bulk, it reduces the burden of on-site storage at your premises reducing overhead costs. The disadvantage of using a wholesaler to distribute your products is that: i. They cannot market your products extensively ii. Because they buy in bulk, it is often you will sell at a price much lower than the final retail price. Direct Distribution/ Sales Force: Very common for small businesses, products/services can be sold directly to the consumer on-site i.e. directly from your shop, office or home by consumers physically coming into the premises to make a purchase. This can be related with, for example, a village baker or a hand-made furniture business where the products are made and sold at the same place. Works well only when the TG is in the local region only. Telemarketing: Selling your product/service through telemarketing is becoming increasingly popular. Telemarketing allows sales to be made on a local, national and global scale, although the costs will increase with the time and distance of phone calls. Internet (E-Commerce): Now a booming sector, dominated majorly by few major players. Ecommerce offers a chance to direct engage customers without investing in brick and mortar stores. Though each e-commerce firms do invest in setting up distribution systems. But it is to be noted that currently e-commerce firms have to incentivize customers to use an ecommerce portal for their purchase. This means that e-commerce firms spend money to attract customers, this is called CAC, Customer Acquisition Cost. At the same time, firms also have to look at CLV, Customer Lifetime Value, which is the value the customers bring to the firm. If the CAC is greater than the CLV, then the firms will not be able to survive for long. Many FMCG companies, use e-commerce sites to launch their new products, this helps in reducing distribution costs and helps them focus primarily on the marketing of the product. E.g. Nestle tied up with Snapdeal for the re-launch of Maggi Noodles. Agents/Brokers: An agent or broker will help sell your product/service, but will not take ownership of what they are selling at any time. They usually work on commission taking a percentage of the total sales made by themselves. An agency or brokerage will sell your product or service, for example insurance, tickets for entertainment, accommodation, etc. Perhaps the most common example of an agent would be a travel agency. They never own the holidays or credit the full amount of the sale to their business. Instead, they act as a link between the holiday resort and the consumer, taking a commission on the sales.

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

The following types of Channel Memberships are possible: Intensive distribution- Where the majority of resellers stock the 'product' (with convenience products, for example, and particularly the brand leaders in consumer goods markets) price competition may be evident. Selective distribution- This is the normal pattern (in both consumer and industrial markets) Where 'suitable' resellers stock the product. Exclusive distribution- Only specially selected resellers or authorized dealers (typically only one per geographical area) are allowed to sell the 'product'. The marketer must assess the benefits received from utilizing a channel partner versus the cost incurred for using the services and design the Distribution Channels best suited to his needs.

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

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

Private Branding Products (or services) which are generally manufactured or provided by one company under the retailer’s brand. Ex: Big Bazaar has its own line of towels and apparels. The retail marketing mix must be consistent with the expectations of customers and must be responsive to competition. The important factors in retail marketing include: 1. Store Location 2. People Element Staff capability Effectiveness Customer interaction

33. What can be defined as the luxury market in India? Luxury retail in India has been a fascinating journey from a socio-economic perspective. The Indian economy has evoked a lot of interest globally given its statistics of some of the highest disposable incomes and increase in the number of millionaires. Luxury clothing, fragrances, premium footwear, home electronics and high-end watches have achieved good penetration among male Indian consumers, but items such as cufflinks, belts, wallets, luxury wines, Champagnes and cigars still rate low on the wish-lists of many Indian men seeking luxury brands. Among women, jewelry, cosmetics and skincare can already boast high levels of awareness, followed by categories such as underwear, handbags and mobile phones. Lowpenetration sectors that are yet to make an impact include gourmet food, tableware and imported furniture. Super-deluxe brands like Porsche, Chanel, Louis Vuitton, Rolls-Royce, Rolex, Bulgari and others have entered the market. The luxury consumer in profile: A profile of the Indian luxury consumer, as per a study by research group KSA Tecnopak:  Primarily resident in urban India  Lives in a household earning more than about INR 800,000 (US$18,000) a year, where the chief wage earner is generally male, average age 36–37  Owns a premium/luxury saloon car such as a Honda Accord, a Vectra or a Skoda Octavia etc.  Among women consumers, 65% are housewives  Most are educated to post-graduate level Luxury households can also be categorized into segments according to their attitudes to luxury goods purchasing: 

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

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

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

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

Inseparability: Service is inseparable from the point where it is consumed, and from the provider of the service. For example, you cannot take a live theatre performance home to consume it (a DVD of the same performance would be a product, not a service.) Perishability: Service is perishable in that once it has occurred it cannot be repeated in exactly the same way. Heterogeneity: Since the human involvement of service provision means that no two services will be completely identical. For example, returning to the same garage time and time again for a service on your car might see different levels of customer satisfaction, or speediness of work. Differentiating between Goods and Services Goods A physical commodity Tangible Homogenous Production and distribution are separation from their consumption Transfer of ownership is possible

Services A process or activity Intangible Heterogeneous Production, distribution and consumption are simultaneous processes Transfer of ownership is not possible

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

37. Viral Marketing Viral Marketing is known as a word of mouth or these days with the increased use of the internet “word of mouse” with the objective of marketing the product of a company via tools such as social media networking sites like Instagram, Facebook, social media sharing sites such as YouTube etc. or sites which have a social connect such as Twitter, BlogSpot etc. In short it can be defined as any strategy which uses individuals to pass on a marketing message to others; creating scope for exponential growth in the company’s spread of the intended message. Prominent examples of viral marketing are:

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When Hotmail launched, much of its early success was due to the virility of the signature line that it attached to every outgoing email inviting the recipient to join. One of the earliest examples of viral marketing on the internet Subservient Chicken - the creepy webcam site made for a Burger King campaign allowed people to control a guy in a chicken suit. It went viral almost instantly and for a few weeks was everywhere Will It Blend - One of the most recent best viral marketing campaign examples, Blendtec’s will it blend video series shows scientists testing if various household items will blend in their super-powerful blender. This campaign leveraged the popularity of online video sharing sites Dove Evolution Video - Part of a campaign by Dove, this video showed how models’ beauty is often artificial, and really struck a chord with its intended audience of female viewers

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The Last Selfie: World Wildlife Fund (WWF) on Snapchat: The idea behind this campaign is to bring awareness to the animal populations at risk of going extinct around the world. WWF knew that they have a global audience and they needed to reach that audience, and snapchat was the perfect place to do that. The whole idea behind WWF using Snapchat was to emphasize the fact that endangered species are disappearing around the world just as selfies disappear from Snapchat in 10 seconds.

38. Word of Mouth Marketing Word of mouth is a reference to the passing of information from person to person. Originally the term referred specifically to oral communication (literally words from the mouth), but now includes any type of human communication, such as face to face, telephone, email, and text messaging. Characteristics of Word of Mouth Word of mouth also takes many forms online or off-line. Three noteworthy characteristics are: 1. Credible—People trust others they know and respect, word of mouth can be highly influential. 2. Personal—Word of mouth can be a very intimate dialogue that reflects personal facts, opinions, and experiences. Whose Word of Mouth Matters? According to Mintel, 34% of US Internet users who bought a product or service based on a recommendation got that tip from a friend or relative, while one-quarter bought based on advice from a spouse or domestic partner. A recommendation from someone familiar and trust-worthy is the easiest path to a product sale, link or new subscriber. This is because, recommendations are

generally perceived as incentive-free, unlike the obvious motivation of advertisers, who may overpromise in a bid to increase sales.

Successful examples

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

Red Bull Wings Team – a group of Red Bull employees that drive around in Red Bull branded vehicles distributing samples

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Student Brand Manager Program – Red Bull sponsors student advocates to discuss Red Bull at events around their respective schools

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Red Bull Bedroom Jam – A talent show event focused on their targeted student demographic

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Red Bull Reporter – A program where Red Bull sponsors journalism and film students to create news stories around the Red Bull brand 

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

http://www.livemint.com/Companies/PqOACgao1xQlVTmRmTEYzN/Word-of-mouth-sends-demandsoaring-for-Pulse-candy.html http://www.afaqs.com/news/story/47821_How-Pulse-candy-captured-the-market-The-Full-Story

39. BCG MATRIX The BCG Matrix was ideated by the Boston Consulting Group and gets its name from the firm as well. Aiming to gauge the performance of a portfolio of products, the BCG Matrix plots the RELATIVE MARKET SHARE of a product against MARKET GROWTH RATE and hence is also called the Product Portfolio Matrix. It is used for an overview of products, not for a detailed analysis. The growth rate of the market dimension is used as a proxy measure of the attractiveness of the market, with high-growth markets being seen as more attractive and offering more potential and opportunity. Relative market share is used as a surrogate of competitive strength. The larger the firm’s market share, relative to its largest competitor, the stronger the firm is in the marketplace. Therefore, the BCG matrix combines a measure of market attractiveness against overall competitive strengths in order to identify the quadrant of the model with the firm or business unit is situated.

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

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

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

Ansoff's matrix provides four different growth strategies:  Market Penetration - the firm seeks to achieve growth with existing products in their current market segments. The main objectives of market penetration are: 1. Maintain or increase the market share 2. Secure dominance of growth markets 3. Restructure a mature market by driving out competitors 4. Increase usage by existing consumers 

Market Development - the firm seeks growth by targeting its existing products to new market segments. The possible ways for approaching this strategy are: 1. New geographical markets 2. New product dimensions 3. New distribution channels 4. Different pricing policies to attract different customers or create new market segments

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Product Development - the firm develops new products targeted to its existing market segments.

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Diversification - the firm grows by diversifying into new businesses by developing new products for new markets.

41. Porter’s Five Forces While Porter’s model’s primary use is in case interviews, it can be a useful tool for marketers as well. Although the Five Forces is an excellent framework in helping you organize your thoughts, like an other framework we cover in this guide, its analysis is not complete. The Five Forces should be used in conjunction with other frameworks to enable you to fully understand the issues at hand. Five primary forces: 1) The threat of new entrants 2) The bargaining power of buyers/customers 3) The bargaining power of suppliers 4) The threat of substitute products 5) Rivalry with competitors Attractiveness of the market depends upon: Intense competition allows minimal profit margins Mild competition allows wider profit margins Barriers to Entry: There are a number of factors that determine the degree of difficulty in entering an industry: Economies of scale Product differentiation

Capital requirements vs. switching costs Access to distribution channels Cost advantages independent of scale Proprietary product technology Favourable access to raw materials Favourable location Learning curve Government policy Bargaining Power of Buyers: A buyer group is powerful if: It is concentrated or purchases large volumes relative to seller's sales The products it purchases front the industry are standard or undifferentiated It faces few switching costs Buyers pose a credible threat of backward integration The industry's product is unimportant to the quality of the buyer's products or services The buyer has full information Bargaining Power of Suppliers: A supplier group is powerful if: It is not obliged to contend with other substitute products for sales in the industry The industry is not an important customer of the supplier group The supplier group is an important input to the buyer's business The supplier group's products are differentiated or it has built up switching costs The supplier group poses a credible threat of forward integration Substitute Products: Substitute products that deserve the most attention are those that: Compete in price with the industry's products Are produced by industries earning high profits Rivalry: Rivalry among existing competitors increases if: Numerous or equally balanced competitors exist Industry growth is slow Fixed costs are high There is lack of differentiation or switching costs Capacity is augmented in large increments

A C K N O W L E D GE M E N T We would like to thank the batches that have come before us for providing us the base for this material. All the best to the batch of 2018 from MarkSoc.