MARKETING CLUB
MARKETING
COMPENDIUM
Created by: MarC, Marketing Club of
IIM Calcutta
01
WHAT IS
MARKETING?
According to the latest approved definition by American
Marketing Institute: “Marketing is the activity, set of institutions,
and processes for creating, communicating, delivering, and
exchanging offerings that have value for customers, clients,
partners, and society at large.” (Approved 2017) ​​
Marketing is the science and art of exploring, creating, and
delivering value to satisfy the needs of a target market at a
profit. Marketing identifies unfulfilled needs and desires. It
defines, measures, and quantifies the size of the identified
market and the profit potential. It pinpoints which segments
the company is capable of serving best, and it designs and
promotes the appropriate products and services."
– Dr. Philip Kotler
Putting formal definitions aside Marketing is simply about
identifying a consumer need and then meeting it through the
right solution thereby adding value to the consumer or for lack
of better words making their lives easier! ​
GOODS VS SERVICES
So, let's begin the fun(for us) and torture (for you) by gradually adding
complexity. To begin with- there is something a marketeer "offers" (as
per AMA definition) to make the lives of consumers easier; this
"offering" will be broadly divided into two parts first Product
(something you can touch and feel) and second Service (something
you can “experience").​
The Key Properties that differentiate a Service from a Product are
Intangibility, Simultaneous production & consumption, difficulty to
standardize & extremely high user involvement. ​
Hold on! Don't try to categorize things into products & services yet
because it's generally not very easy to do so
Example: Is Lenskart a product or service? Eh! It’s both. We hope
you got the point, majority of the offerings are a combination of
both Products & services and lay somewhere on the straight line as
projected in the above image. So, what is this Compendium? A
product? A service? Well, it’s up to you. ​
MARKETING
VS SALES
02
Talking about Marketing and not talking about Sales isn't done. After
all, both of them are the same thing, or if not the same, they are very
similar! Right?
SALES
MARKETING
Needs:
This is the basic human requirement without which we cannot
survive. These needs are not created by marketers, but they exist
naturally. It can be of different types:
a)Physical Needs: Food, water clothing, clean air, warmth, safety, etc.
b)Social Needs: Affection & Belongingness
c)Individual Needs: Knowledge & Self Expression
Maslow’s Hierarchy of Needs
So called “Five-tier Model of Human Needs” has specified human
Needs into five levels as in the following:
1. The first level of needs are the Physiological needs which are
essential for us to survive. So this can include anything from air for
breathing, water, food, sleep, shelter, and clothing.
2. The second level of needs are the needs for Safety. The safety needs
can include personal security, safety of resources, safety of
employment, safety in property and health. All the safety needs are
the basic needs for humans as well.
3. The third level of Maslow’s Hierarchy of Needs is the need for Love;
the need to belong, the need to have friends and family. So this level
of needs is called the social needs.
4. The fourth level is the needs for Esteem, self-esteem. In this level,
we like to feel confident and have a sense of achievement in what we
do. So this level is also called as the level of respect. We like to gain
respect from others in this level.
5. The fifth level is called Self-actualization level. Self-actualization is
basically our need for wanting morality, a sense of morality, a need for
acceptance and also creativity. In other words, the level of selfactualization can be called as the level of our full potential.
Types of Needs in Marketing:
The “Five Types of Needs” that marketers should know in order to
distinguish the type of customer’s needs are as following:
1) Stated Needs: I want a car
2) Real Needs: I want a car for going to work with low operation costs
3) Unstated Needs: I want good after sales service from the Dealer
4) Delight Needs: I want the dealer to include some gifts wih the car.
5) Secret Needs: I want a car for the status symbol
Wants:
Wants are means to fulfill the needs but are not crucial for survival.
They are highly dependent on Culture and personal preference based
on experience shape a person's wants. A want is basically shaped by a
person's social and described in terms of objects that satisfy their
needs. Like clothing & food preferences are mostly influenced by the
culture we belong to.
Example: I want to eat Chicken Noodles
Desire:
A want that is not backed by the purchasing power of a consumer.
We all might have a desire to order Chicken Noodles from the Night
mess of our hostels at Joka, but… well you get it! (pun intended). Not
the best example but had to put it out there; for someone who is
broke like us here's one that fits.
Example: I want to eat Chicken Noodles from ITC Royal Bengal
Demand:
Demands are consumers wants backed by purchasing power.
Example: I want to eat Chicken Noodles from a nearby Chinese
restaurant.
Capacity to buy & Willingness to Buy:
Willingness:
Willingness to buy is consumers inclination to buy some product;
he/she might or might not be able to afford the offering.
Example: I want to own a Gucci Handbag (well by now you know
we're broke!)
Capacity:
The capacity to buy is a consumer's economic capability to be able to
afford a product; he/she might not be interested in buying it.
Example: I can buy a kimono, but I might not be interested in buying.
BUSINESS
MODELS
03
C2C Marketing
Customer-to-Customer (C2C) markets are innovative ways to allow
customers to interact with each other. In customer-to-customer
markets, the business facilitates an environment where customers
can sell these goods and or services to each other.
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 a spouse or parents. Alternatively, the person may be a
friend, a relative, a colleague, or even a salesperson.
2. Influencer
An influencer is a person within or outside the customer's immediate
family 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. But in nuclear and single families and with the increase in
literacy among women and the number of working couples, one
finds more often than not, decisions are joint. The husband, the wife,
and even the entire family taking the decision, particularly on major
purchases, is quite common in urban and metro areas. The decider/s
considers both economic and non-economic parameters before
selecting a brand.
B2C Marketing
A B2C sale is to an individual. That individual may be influenced by
other factors such as family members or friends, but ultimately it's a
single person that pulls out their wallet.
B2C features a large target market, a single-step buying process, and
a shorter sales cycle. Repetition and imagery create its brand identity.
B2C focuses on merchandising and point-of-buying activities,
including coupons, displays, and storefronts. Any business that offers
a retail product to the public comes under this type. In B2C markets,
the brand encourages the shopper to purchase, remain Loyal and
potentially pay a higher price.
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 and use them as
components in products or services they offer or use them to support
their operations. This is also known as Industrial marketing.
In B2B, the customers can be:
1. Companies - that consume products or services, e.g., automakers,
who buy gauges to put in their cars
2. Government agencies - this includes center, state, and local
governments
3. Institutions - schools, hospitals, nursing homes, churches, and
charities
4. Resellers - wholesalers, brokers, and industrial distributors
Some B2B Marketing Strategies:
B2B Branding – Closely align corporate, divisional, and
product/service brands and apply brand standards to material often
considered informal, such as email and other correspondence.
Product – cost-saving or revenue-producing benefits of
products/services
should
factor
throughout
the
product
development and marketing cycle.
People – The target market for business products is usually smaller
and has more specialized needs. Thus, there can be multiple
influencers on purchase decisions that must be marketed.
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 reasonably common to each
industry/product area. In essence, with proper knowledge of your
industry/product, the promo strategy almost writes itself.
Place – The importance of a knowledgeable, experienced and
effective direct (inside or outside) sales force is often critical in the
business market. If you sell through distribution channels also, the
number and type of sales forces can vary tremendously, and your
success as a marketer is highly dependent on their success.
MARKET SITUATION
ANALYSIS FRAMEWORKS
SWOT
ANALYSIS
4-A
SWOT Analysis
Helps you Develop a Business strategy
Strengths:
What do you want?
Include things that your company or project
does extremely well.
E.g. Brand attributes, people, leadership, etc.
Weaknesses:
Where do you need to Improve?
Include things that your company is not doing well or needs
improvements
E.g. Shortage of skilled people, financial limitations, or lack of clearly
defined USP.
Opportunities:
What are your growth prospects?
Include everything you could do to grow as a company. All
possibilities
E.g. Tapping other markets to improve sales and using advanced
technology for better results.
Threats:
What Obstacle do you face?
Include things that pose a risk to the company.
E.g. Emerging competitors, fin risks, changes in regulatory law, etc.
The SWOT analysis is divided into two parts internal & external:
Internal: These are the components a company has some control
over. This includes strengths & Weaknesses.
Strengths are the components a company highlights in its
campaigns and can even become the USP.
Weaknesses might be gaps in which the company couldn't perform
well or the strength of competitors in that space.
External: These are exogenous factors that a company has little to no
control over. This includes Opportunity & Threat.
4-B
5C'S
ANALYSIS
The 5c's of marketing area commonly-used situation analysis
technique used to help marketers make informed business decisions.
The "5 C's" stand for
Collaborators, and Climate.
Company,
Customers,
Competitors,
In a nutshell, a 5C analysis will help us evaluate the most critical
factors facing a company. By focusing on the essential parts of a
company and identifying what's working well and what isn't, we’ll be
able to make better-informed and more profitable decisions.
PORTER'S
5 FORCES
4-C
Porter's five forces model is an analysis tool that uses five industry
forces to determine the intensity of competition in an industry and its
profitability level.
https://consulterce.com/five-forces-analysis/
PERCEPTUAL
MAPPING
4-D
Perceptual mapping is a visual representation of where a brand,
product, or service stands among competitors. It is also known as
positional mapping.
This type of competitive analysis framework generally consists of two
key attributes as a basis. Once you've chosen the attributes you want
to focus on, the next step is plotting the brands, products, or services
to see how they're positioned among them.
4A'S
ANALYSIS
4-E
Acceptability: A product or service offering must meet or exceed the
needs(functional or psychological) and expectations of customers in
a given target market.
Affordability: Affordability refers to whether customers in the target
market are economically able and psychologically willing to pay a
product's price.
Accessibility: It describes whether customers can easily acquire and
use a product or service. The two dimensions of Accessibility are
availability and convenience.
Awareness: Judges whether the customers are adequately informed
about a product's attributes and benefits in a way that persuades
potential buyers to try the product and reminds existing users why
they should continue to purchase a product. The two dimensions of
Awareness are product knowledge and brand awareness.
Source: https://customerthink.com/for-effective-marketing-you-need-both-the-4as-and-the-4ps/
4A's of Rural Marketing
The rural market is widely different from the urban market because of
many factors, including income level, social infrastructure, low shop
availability, and limited awareness. Each company is making its way
to Rural India. Most of them have studied the market, analyzed the
things over there, and are ready to fight in Rural India. Some
companies have already written their success stories in the rural
market. Companies like HUL, ITC, LG, and Mahindra have given a new
format for rural marketing. The marketing mix is such an element in
the rural market which gives the sense to think of marketing
activities: this 4A model is similar to the 4P model of Marketing; the
difference it shows is the main streamline and rural market. 4A is
perceived to be more customer oriented. The 4A's are affordability,
availability, awareness, and acceptability.
Acceptability:
Nokia 1100, LG Sampoorna TV (runaway hit, with 100,000 sales in the
very first year), and HUL Pure-IT are a few examples of how MNCs are
customizing their products for rural markets with the aim of low price
and high quality.
Insurance companies are not lagging in tapping this market. They
tailor-made their products; HDFC Standard LIFE topped private
insurers by selling policies worth Rs3.5 crore. The company partnered
with non-governmental organizations and offered reasonably-priced
policies like group insurance covers. Innovation is the key.
Availability:
Ensuring the product or service availability is another challenge with
poor infrastructure. Coke's strategy, “Coke is "available where even
water is not available," is successful via their popular hub & spoke
distribution model, where they give low-cost ice boxes to distributors.
HUL is ensuring the availability of products by using unconventional
transport methods like tractors, bullock carts, and even boats in the
backwaters of Kerala.
Affordability:
Rural market is low price, high volume market, and companies like
HUL have addressed it by launchingLifebuoy atRs.2 for 50 gm.
Cavinkare's Chik shampoo for 50 paise (the innovator of shampoo
sachets), Britannia Tiger Biscuit for Rs.5, and Marico's Parachute for
Rs.1 are examples of how FMCG companies target rural markets with
low pricing strategy.
Awareness:
Radio, TV, and street play remain advertising mediums. Example:
Coca-Cola uses a combination of TV, cinema, and radio to reach 53.6
percent of rural households. It doubled advertising spending on
Doordarshan, reaching 41 percent of rural households. Tag lines like
"Thanda matlab Coca-cola," & “what an idea sirjee", create a rural feel.
COMPANYANALYSIS
FRAMEWORKS
ANSOFF
MATRIX
5-A
Ansoff Matrix is vital for strategic planning to find out opportunities
that can help grow a business by developing new products & services
or tapping into new markets. It's also known as the Product-Market
Matrix.
It is a tool used by brands to plan and analyze their growth by putting
their product portfolio (existing or new) in different categories.
The entire product portfolio of a brand can be divided into one of the
4 categories mentioned below:
Market Penetration
This involves increasing market share within existing market
segments. This can be achieved by selling more products/services to
established customers or by finding new customers within existing
markets. The risk involved in its marketing strategies is usually the
least since the products are already familiar to the consumers and so
is the established market.
Product Development:
Product Development involves developing new products for existing
markets. It involves thinking about how new products can meet
customer needs more closely and outperform the products of
competitors. It can also involve the modification of an existing
product so that it can appeal more to the already existing market. It is
slightly riskier, because you're introducing a new product into your
existing market.
Example:
ITC introduced ready to eat gourmet cuisine ‘Kitchens of India’ which
specialises in bringing to life age old Indian dishes from across the
country, especially from the gourmet cuisines of Dum Pukht ,
Bukhara and Dakshin. ITC developed this new product for an existing
RTE market.
Marketing Development:
This strategy entails finding new markets for existing products.
Market research and further segmentation of markets helps to
identify new groups of customers. This strategy assumes that the
existing markets have been fully exploited thus the need to venture
into new markets.
There are various approaches to this strategy, which include: New
geographical markets, new distribution channels, new product
packaging, and different pricing policies.
Example:
ITC's Agri Business Division, has conceived eChoupal , an initiative by
ITC to link directly with rural farmers via the Internet for procurement
of agricultural and aquaculture products. This will help develop the
market in the rural sector
Diversification:
This involves moving new products into new markets at the same
time. It is the riskiest strategy among the others as it involves two
unknowns, new products being created and the business does not
know the development problems that may occur in the process.
Additionally, you're introducing a new, unproven product into an
entirely new market that you may not fully understand.
Different types of Diversification
Related diversification:
Unrelated diversification:
This means that the business
remains in the same industry in
which it is familiar with.
TIn this, there are usually no
previous industry relations or
market experiences. One can
diversify from a food industry to a
mechanical industry for instance.
Example:
Coca Cola is using a number of strategies including introduction of
new products in existing markets and introducing products in new
segments to increase its market share.
Ansoff Matrix of Xiaomi
Ansoff Matrix of MCDonalds
BCG
MATRIX
5-B
BCG matrix is a product of the Boston Consulting Group. It is a 2*2
matrix that helps in the portfolio analysis of a business unit. It helps
to determine which products to invest in, expand &which to sell.
Relative Market share: The portion of a market controlled by a
particular company or product.
Relative Growth Rate: An increase in the number of people who buy
a particular product or service or an increase in the number of
products.
Stars: High Market share High Growth
These are market leading products & generate huge income.
Requires huge investments to retain their top position.
QuestionMarks: Low Market Share High Growth
Potential to become stars if the market share can be increased.
Careful analysis is needed to determine whether to invest or not.
Cash Cows: High Market share Low Growth
Require less investment to maintain its existing market share. No
further investment should be undertaken.
Dogs: Low Market Share Low Growth
Mostly won’t generate large profit and may just break even. Mostly
ought to divest, as they have a negative effect on the overall
profitability of the company.
Stars: High Market share High Growth
The business units or products that have the best market share
and generate the most cash are considered stars. Monopolies and
first-to-market products are frequently termed stars.
However, because of their high growth rate, stars also consume
large amounts of cash. This generally results in the same amount
of money coming in that is going out.
Stars can eventually become cash cows if they sustain their
success until a time when the market growth rate declines.
Companies are advised to invest in stars
Question Marks: Low Market Share High Growth
Question marks are growing rapidly and thus consume large
amounts of cash, but because they have low market shares they
do not generate much cash. The result is a large net cash
consumption.
They have the potential to gain market share and become a star,
and eventually a cash cow when the market growth slows.
If the question mark does not succeed in becoming the market
leader, then after perhaps years of cash consumption it will
degenerate into a dog when the market growth declines
Cash Cows: High Market share Low Growth
Cash cows are the leaders in the marketplace and generate more
cash than they consume.
They provide the cash required to turn question marks into
market leaders, to cover the administrative costs of the company,
to fund research and development, to service the corporate debt,
and to pay dividends to shareholders.
Companies are advised to invest in cash cows to maintain the
current level of productivity, or to "milk" the gains passively.
Dogs: Low Market Share Low Growth
Dogs have low market share and a low growth rate and thus
neither generate nor consume a large amount of cash.
They are cash traps because of the money tied up in a business
that has little potential. Such businesses are candidates for
divestiture.
The company can either divest the product altogether.
Product can be revamped through rebranding / innovation /
adding features etc.
Disadvantages of BCG Matrix:
The model uses only two dimensions (i.e. growth and share) to
assess competitive position, others are ignored.
More emphasis on cost leadership rather than differentiation as a
source of competitive advantage.
A high market share does not necessarily lead to profitability at all
times.
Assumes that each business unit is independent of the others. In
some cases, a business unit that is a "dog" may be helping other
business units gain a competitive advantage.
BCG Matrix of AMUL
Amul has diversified their offerings, entering into different milk and
milk product markets, let us understand BCG Matrix of Amul.
Cash Cows:
The 3 products mentioned in the figure (milk, butter, cheese)
generate steady, high revenue. They are the “flagship” products of the
brand.
Star:
Amul invests a lot of cash coming from cash cow into star-product
promotions. Amul Ice Creams have targeted & appealing ads in order
to improve awareness.
Question Marks:
Lassi falls under this category. Considering the increasing demand for
healthy products, this category shows a huge potential to grow.
Dogs:
Due to the heavy competition & limited innovation in these products,
it’s difficult for Amul to gain market share & generate huge revenue.
BCG Matrix of Amazon
BCG Matrix of Google
BCG Matrix of Coca Cola
https://www.edrawmind.com/article/best-10-bcg-matrix-examples-for-students.html
PRODUCT
LIFE CYCLE
6
PLC describes the various stages that a product goes through from
the time it was initially thought of until it is finally removed from the
market.
1. Introduction
Once a product has been developed, the first stage is its
introduction stage. At this stage, the product is being released into
the market. When a new product is released, it is often a highstakes time in the product's life cycle - although it does not
necessarily make or break the product's eventual success.
During the introduction stage, marketing and promotion are at a
high, and the company often invests the most in promoting the
product and getting it into the hands of consumers. In this stage,
the company is first able to get a sense of how consumers respond
to the product, if they like it and how successful it may be. However,
it is also often a heavy-spending period for the company with no
guarantee that the product will pay for itself through sales.
The principal goals of the introduction stage are to build demand
for the product and get it into the hands of consumers, hoping to
later cash in on its growing popularity.
2. Growth
By the growth stage, consumers are already taking to the product
and increasingly buying it. The product concept is proven and is
becoming more popular - and sales are increasing.
Other companies become aware of the product and its space in the
market, which are beginning to draw attention and increasingly
pull in revenue.
As a result of the product grows, the market itself expands.
Marketing in this stage is aimed at increasing the product's market
share.
3. Maturity
When a product reaches maturity, its sales tend to slow or even
stop - signaling a largely saturated market.
Pricing at this stage can tend to get competitive, signaling margin
shrinking as prices begin falling due to the weight of outside
pressures like competition or lower demand.
Marketing at this point is targeted at fending off competition, and
companies will often develop new or altered products to reach
different market segments.
Given the highly saturated market, it is typically in the maturity
stage of a product that less successful competitors are pushed out
of competition - often called the "shake-out point."
4. Decline
Although companies will generally attempt to keep the product alive in the
maturity stage as long as possible, a decline for every product is inevitable.
In the decline stage, product sales drop significantly, and consumer behavior
changes as there is less demand for the product. The company's product
loses more and more market share, and competition tends to cause sales to
deteriorate.
Marketing in the decline stage is often minimal or targeted at already loyal
customers, and prices are reduced.
Eventually, the product will be retired from the market unless it is able to
redesign itself to remain relevant or in demand.
STRATEGIES FOR DIFFERENT STAGES OF PLC
1. Introduction stage of PLC
The need for immediate profit is not a pressure. The product is promoted to
create awareness. A skimming price strategy is employed if the product has few
competitors. Limited numbers of products are available in a 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
Speeding up innovation is essential in an age of shortening product life
cycles
The rapid-Skimming strategy involves launching the new product at a high
price and high promotion levels
The slow-skimming strategy involves launching the new product at a high
price and low promotion.
The rapid-Penetration strategy involves launching the new product at a low
price and high promotion.
The slow-Penetration strategy involves launching the new product at a low
price and low level of promotion.
For Example, Philips Airfryer is right now in the introduction stage.
2. Growth stage of PLC
Competitors are attracted to the market with very similar offerings. Products
become more profitable, and companies form alliances and joint ventures and
take each other over. Advertising spending is high and focuses on building a
brand. Market share tends to stabilize. Advertising establishes participation in
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
A lower price to attract the next layer of price-sensitive buyers
Shifts from product awareness advertising to product-preference advertising.
Example: Flipkart, Hike
3. Maturity stage of PLC
Those products that survive the earlier stages tend to spend the longest in this
phase. Sales grow at a decreasing rate and then stabilize. Producers' attempts to
differentiate products and brands are 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 the 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.
Convertnonusers
Enternewmarketsegments
Win competitor customers
Promote more frequent use
Use more of the product on each occasion
New and morevarieduses
Eg: Johnson & Johnson promoted its baby shampoo to adult users. Pears
introduced pink soap to target children
Product modification: The manager also tries 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 Eg: Pfizer embarked on feature
improvement for its Listerine brand
Style improvement – increase the product's aesthetic appeal.
Marketing mix modification: Modify other marketing program elements such as
Pricing – cuts, discounts, special occasions, credit terms, increased price, and
quality
Distribution – more outlets and new distribution channels
Advertising – increasing expenditure, changing message, timing, and
frequency of advertising
Sales promotion - stepping up or reducing sales promotion
Personal selling – increase the quality of sales force and sales territories
Services – speed up delivery and technical assistance.
4. 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 spending 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
CONSUMER
BEHAVIOUR
and go right to the purchase
decision, skipping information
search and evaluation.
Research
suggests
that
customers go through a fivestage decision-making process
in any purchase. This is
summarized in thediagram
below:
However, the model is very
It is useful to understand any
purchase that requires some
thought and deliberation.
This model is important for
anyone making marketing
decisions.
It
forces
the
marketer to consider the
whole buying process rather
than
just
the
purchase
decision (when it may be too
late for a business to influence
the choice).
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)
The buying process starts with
the need for recognition. At
this
stage,
the
buyer
recognizes a problem or
condition (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
must decide how much
information (if any) is required.
If the need is strong and there
is a product or service that
meets the need close to hand,
then a purchase decision is
likely to be made there and
then. If not, then the process of
information search begins.
A
customer
can
obtain
information
from
several
sources:
Personal
sources:
family, friends, neighbors, etc.
Commercial
sources:
advertising;
salespeople;
retailers; dealers; packaging;
point-of-sale displays
Public sources: newspapers,
radio, television, consumer
organizations;
specialist
magazines
Experiential
sources: handling, examining,
and using the product
The usefulness and influence
of these sources of information
will vary by product and
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.
The customer must choose
between alternative brands,
products, and services in the
evaluation stage. 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.
When a purchase is "highly
involving," the customer will
likely conduct an extensive
evaluation. High-involvement
assets
include
high
expenditure or personal risk–
for example, buying a house or
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.
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 highinvolvement 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.
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, the customer will not repurchase immediately but is
likely to switch brands next time.
To manage the post-purchase stage, the marketing team's job is 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.
CONSUMER BEHAVIOR: SEARCH DYNAMICS
Another framework that marketers generally use, is Search
Dynamics. This framework basically describes how a brand moves
over the consumer decision-making process.
The first box in the framework is the Total Set. This includes all the
brands available in the category, where the category is the one
that is seen to be able to solve the "PROBLEM” (Stage 1 above).
Hence the Total Set for Raj would be - Asus, Viao, Samsung, Dell,
HP, Microsoft, Macbook, Compaq, Toshiba, Lenovo, etc
The 2nd level is the Awareness Set - these are the brands the
consumer knows about in the category. Hence for Raj, the
awareness set could be - Asus, HP, Lenovo, Viao, Dell, and
Macbook, where Raj doesn't know that Samsung and Microsoft
make laptops as well.
The 3rd level is the Consideration Set - these are the brands that
Raj is considering buying on basis of the most important
elimination criteria. For example, Raj has a budget of only 30 to
45,000, and hence Macbook is not in his consideration set, or
suppose he wants a Windows OS and hence his consideration set
now is only - Asus, HP, Lenovo, Viao, and Dell.
Choice Set - This includes brands that the consumer prefers as a
result of various parameters. For example, Raj looks at the reviews
online, feedback from his friends, the product's longevity,
warranty, screen size options, etc, and his choice set is now Dell
orHP.
The last level is the decision set- the brand Raj finally buys.
This Search Dynamics level is important as this tells you the kind of
effort you need as a marketer. For a new product launch, you need to
first enter the Awareness set that ensures that all consumers in your
target group know about your brand. Then with the help of correct
pricing and positioning, you enter the consideration set. Further, you
need to employ effective advertisements, demonstrations, and
reviews from key resources in the category you move to the choice
set and further. The inputs required from the marketing side are very
different depending on where your brand currently is in terms of the
consumer buying process.
AIETA ADOPTION PROCESS MODEL
As we now know the consumer buying process, we need to
understand their adoption process. The difference between the two
is a thin line. The consumer buying process and the adoption process
is that adoption process is generally used as a framework for how
consumers react to an innovation or what a consumer perceives as
new. This framework does not involve the "fulfilling consumer's need”
stage. Hence, to understand consumers' response to a new,
innovative launch and classify consumers on the basis of their
response, let us start with understanding the Consumer Adoption
Process. The 5 stage model is as follows –
Awareness - at this stage, the consumer is aware of the
information but lacks information about it. For example, your
friend in the US tells you he has purchased a new iPhone with
wireless earphones. You have heard about it and listened to some
of its advantages from your friend, but you do not know the
complete information.
Interest- at this stage, the consumer searches for information
about the innovation and uses multiple sources. For example,
after you get to know about the air pods from your friend, you
search the same on Google, look at its pictures, reviews of the
product on websites like Amazon, Bestbuy, etc., blogs by techbloggers, and you search YouTube for unboxing, review or even
the official launch videos. You are actively seeking the information
at this stage because the innovation seemed interesting.
Evaluation - At this stage, the consumer considers if he wants to
try the innovation. He would weigh out all the reviews he has
received so far, analyze if he needs or wants to try the innovation,
his ability to pay for the trial, or how easy it is to try the product in
terms of price or accessibility, and then he would make a choice.
For example, once you have collected all the information, you call
your friend in the US and ask him if he has had a good experience,
what is different with these earphones instead of the conventional
ones, etc. You also check the price and if there is an Apple store
nearby where you can try it free of cost.
The 4th stage is TRIAL - where the consumer tries the innovation
to improve their product evaluation. This stage will depend on the
nature of the product. For high-investment products like air pods,
you might want to go to an Apple store and try the product or ask
one of your friends who have taken the product to make you try
their product. On the contrary, you might buy it yourself if it is a
low-price, low-risk development. For example, when Vanish was
launched as a stain removal agent for the first time in India, many
consumers just bought a small bottle to try it.
The final stage in the adoption process is the Adoption stage - at
this stage, the consumer decides to make full and regular use of
the innovation. This is after he is convinced of the innovation's
quality, benefit, and need.
CONSUMER BEHAVIOR: PURCHASE FUNNEL
The purchase/purchasing funnel is a model which describes the
theoretical customer journey from the moment of first contact with
your brand to the ultimate goal of a purchase.
This model is important when marketing your business as it provides
a method of understanding and tracking the behaviour of an average
customer throughout the sales process.
This can help with the following:
Planningmarketingcampaigns
Highlighting areas in order to improve your conversion rate(from
potential to actual customers)
Evolving the sales process
Designing a customer relationship management (CRM)System
CONSUMER BEHAVIOR: AIDA MODEL
Awareness: This stage focuses on creating brand awareness or
affiliation with your product or service. How to make buyers aware of
our products or services? What is our outreach strategy? What is our
brand awareness campaign? Which tools orplatforms do we use?
What should the messages be?
Awareness can be measured through brand recall, it can be aided
awareness or unaided awareness. Unaided brands can achieve Topof-mind awareness (the first brand name that comes to mind) and
dominance (the only brand name a consumer recalls in that
category).
Interest: The objective of this stage is to generate interest in the
benefits of your product or service and sufficient interest to
encourage the buyer to start to research further. How will we gain
their interest? What is our content strategy? Is social proof available
to back up our reputation? How do we make this information
available and where? ie. on the website, via videos, customer ratings,
etc
Desire: Focuses on generating desire for your product or service
through an 'emotional connection,' showing your brand personality.
Move the consumer from 'liking' it to 'wanting it.
Action: The ultimate goal is to drive the receiver of the marketing
campaign to initiate action and purchase the product or service.
PRODUCT ADOPTION CURVE
The product adoption curve is a visual representation of how different
groups of people are willing to try out your product over time. The
curve and its respective phases don't indicate whom you should sell
your product to, but rather about how and when you target
segments of your ideal customers. Across your customers, there are
those who will purchase on the early side and those on the later side.
Incorporating messaging and marketing tactics for each of these
phases is an important aspect of crafting your go-to-market strategy.
Innovators:
These are the first people who will purchase your product.
Generally defined as tech enthusiasts, customers in this phase are
open to risk and eager to try new things.
One of the greatest advantages of innovators is that they are an
excellent source of feedback and advice regarding the
development of your product. They're not especially concerned
about your product's general use case as they're more interested
in trying the latest technology.
Early adopters:
The next and slightly larger portion of customers are your early
adopters. Unlikeinnovators, early adopters are more aligned with
your day-to-day, long-term users.
Early adopters can provide fantastic insight into how to position
your product in your marketing and sales efforts based on how it
is solved for their needs.
Early adopters generally want a faster time to value and a more
customized approach to your product. Addressing large issues
brought up during the innovator's phase is important to meeting
the needs of your early adopters.
With that in mind, the greatest advantage of this phase is the
case studies you can generate from it. When planning your go-tomarket strategy, your product should most solve the pain points
of these earliest buyers.
Early Majority:
Reaching the early majority phase is a clear sign that you have
found product-market fit. While you have likely gone through
many rapid changes and iterations to reach this point, the early
majority offers the largest market size and growth potential.
There is a chasm between early adopters and the early majority.
Customers in the early majority are pragmatists who want
something finalized that solves their needs.
The best way to reach these customers is to have bonafide case
studies and testimonials on the success of your innovators and
early adopters. Failing to impress your innovators and early
adopters can halt your product's progress over the chasm.
Late majority:
At this point, there is a certain degree of confidence that you
should have. The late majority make up a smaller percentage of
your customers and are generally conservatives that are either
apprehensive about changing or less aware of it happening.
Your advantage with this group is the opportunity for more
transactional sales and lower expectations. Your messaging
doesn't need to convince or educate the late majority the same
way it may have to convince earlier customers.
In this stage, your messaging isn't revealing new information.
Instead, it should focus on overcoming the late majority's
preconceived notions that have prevented them from purchasing
sooner.
Laggards:
A tiny percentage of your customers are laggards. Buyers at this
stage are very skeptical of your product and whether it can
genuinely satisfy their needs.
While you can hone messaging to challenge their skepticism,
there is a certain degree to which you shouldn't be selling to
laggards. If you've reached this point, you may be saturating the
market or losing out on market share to competing products.
With that in mind, reaching the laggard stage means it's time to
re-evaluate your product and consider innovations or new
product offerings to continue to scale your business effectively
and sustainably.
Targeting & Demand Forecast:
When looking at a target consumer or trying to do a demand
forecast always look at the following two factors:
Willingness to buy: Willingness to pay is known as the maximum
agreeable extent a singular person pays for a product or service; it is
autonomous to the budget limitation. E.g. I am willing to pay $2000
for a Gucci Handbag.
Capacity to buy: uh! This is like a reality check, it measures whether a
consumer has the income levels required to afford the product.
E.g. I definitely cannot buy that Gucci Handbag now, can I?
When we marry both these sets, the common ground would help us
understand the size of our target group leading to the demand
forecast.
CONSUMER BUYING BEHAVIOR
The process of buying behavior is shown in the following figure
Types of values:
Buyer's black box:
GO-TO-MARKET STRATEGY
As the name suggests it’s a strategy or a blueprint that specifies how
a company will reach target customers and achieve competitive
advantage while taking into account all the stakeholders as well as
plan all the dimensions to introduce this product/service in the
market successfully.
The process is pretty simple :P. It involves two simple frameworks the
STP (Segment Target Positioning) & 4P’s also called as marketing mix
(Product place price &promotion).
In this section, we’ll explain this in detail and introduce another
framework for GTM. So, if you've somehow managed to survive till
now, hold one there’s more.
SEGMENTATION,TARGETING& POSITIONING(STP)
Segmentation:
Identifying and profiling distinct groups of buyers who differ in
their needs & wants.
The marketer's task is to identify market segments' appropriate
numbers and nature and decide which ones to target.
Market segments must rate favorably on five critical criteria (MSADA)
for them to be useful:
Measurable: The segments' size, characteristics & purchasing
power can be measured.
Substantial: The segments are large and profitable enough to
serve. A segment should be the largest possible homogeneous
group worth going after with a tailored marketing program.
Accessible: The segments can be effectively reached and served.
Differentiable: The segments are conceptually distinguishable
and respond differently to different marketing-mix elements and
programs.
Actionable: Effective programs can be formulated to attract and
serve segments.
SEGMENTATION CRITERIAS:
POSSIBLE LEVEL OF SEGMENTATION
For example, Courtyard by Marriott® hotels focuses on travelers on
the road, who want a nice, clean place to stay during their trip.
Ritz-Carlton® hotels target those who don't mind paying a
premium for luxury.
Marriott ExecuStay® hotels are aimed at professionals who need
a long-term & comfortable place to stay.
Marriott International does not communicate the same
marketing message to all its customers.
Each hotel is designed and positioned to appeal to the unique
wants and needs of a specific group.
TARGETING
The segments that fit into the company objective that can be
serviced are identified & targeted. The firm can sell one product to
several segments with product specialization.
Firm focus on serving many needs of a specific customer segment
with market specialization.
POSITIONING
Creating a favorable & distinctive image (or position) for the product
in the mind of the consumer.
To Develop a conducive position, a brand requires optimal Points-ofparity (POPs) and Points-of-difference(PODs)
Example: Positioning map of cars
Points-of-difference
These are attributes unique to the brand that is strongly held &
favorably evaluated by the consumers.
Three criteria determine whether a brand association can truly be a
POD: desirability, deliverability, differentiability
Points-of-parity
Those attributes are not unique to the brand but are shared with
other brands. POPs are in three basic forms:
Category: Attributes or benefits that consumers view as essential
to a credible offering within a product/service category.
(Necessary but not sufficient conditions for brand choice)
Correlational: Potentially negative Attributes that arise from the
existence of positive associations for the brand. Ex: Ifit's
inexpensive, it may not be of good quality.
Competitive: Attributes designed to overcome the weakness of
the brand in the light of competitors (Competitors' PODs suggest
the brand's POPs)
TYPES OF DIFFERENTIATION
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.
Examples: The Himalaya drug company differentiates itself by using
ayurvedic ingredients.
TYPES OF MARKET:
Whenever we decide to launch a
product we need to make sure that
we are aware of the kind of market
we aim to launch in. This is necessary
because our marketing strategies
would change with the nature of the
market. The markets can be divided
into the following ways -
Potential Market - this is a set of consumers interested in your
offering, but their interest is not enough. They need to have the
income to afford and access your product. An example is an
intelligent furniture with laptop screens embedded on the table
tops. Consumers would be interested in them, but they don't have
the kind of disposable income for that.
Available Market - this is a set of consumers interested in your
offering and have income and access to it, but there are
restrictions on their purchase. For example, the government will
not allow a 19-year-old to buy a motorcycle even if he has the
interest and the income for it
.
Target Market refers to the consumers you aim to sell your
offering to. All your marketing communication, distribution, and
efforts should focus on this consumer group. For example, stores
like Nature's basket target upper-middle-class and high-class
urban families in Tier 1 and Tier 2 cities in India. They would not
focus on spending money on billboards or radio advertisements in
Tier 3 cities or towns.
Penetrated Market - This Market talks about your achievements
so far. This refers to the set of people who already buy your
offering. For example, you belong to the penetrated Market for
InsideIIM as you already use their offering.
MARKETING FUNNEL
Once you know the market you want to play in, you need to
concentrate on another external factor: the Marketing funnel of
consumers. The marketing funnel is a very famous lingo used in most
companies. This helps you divide your consumer base into different
types. The marketing funnel has the following levels –
Target Market - this level includes all the consumers who fall under
your target group. For example, if you are the marketing manager of
Bournvita, this level consists of all mothers in urban areas who have
kids aged 5 to 12 years.
The 2nd level is the "Aware" level - the mothers who say that they
have heard of Bournvita - either through advertisements, their
friends or relatives, etc.
The 3rd level is the "Open to Trial" level, including those mothers who
are open to trying Bournvita for their kids as they have heard about it.
The driving trial is one of the most challenging jobs of a marketer
because it is difficult to persuade a consumer to buy a product he has
never tried before, and giving it for a free drive trial is an expensive
investment. Hence, these are potential consumers who need to focus
on
The 4th level is the "Trial" - this includes a consumer who has tried
Bournvita and would want to use it again but has not purchased it for
the past three months. Some people call this level "Non-rejecters" as
these consumers haven't rejected the brand after trying it.
The 5th level is "Recent user" - this includes those mothers who have
purchased and used Bournvita in the past three months but are not
regular users.
This gets us to the 6th level - the "Regular user" - someone who uses
the brand at least once every two weeks. Please focus on the fact that
this level talks about USING and not purchasing. Hence if a mother
buys a big pouch of Bournvita and uses it at least once every two
weeks for her kid, she is a regular user, even if the bag lasts her for
four weeks.
The 7th level of consumers is the "Most often used," which includes
mothers who use Bournvita most often, but she also uses Complan
when she gets a goodie free with it or when she gets a better deal on
Horlicks.
The last level is the favorite level for all marketers - "Loyal" - this
includes consumers who ONLY use Bournvita as long as they can find
it in the store. Hence no amount of promotion or free goodies will
make her switch to Horlicks or Boost. Loyal consumers are like a
double-headed sword. They are a boon when they are dedicated to
you and a bane when they are loyal to your competitors. It would be
best if you had much effort to make them switch to your brand then.
Hence, in this way, you can figure out the two most external factors the type of market you are launching in and the marketing funnel of
consumers.
MARKETING MIX
Do you know what makes a product/service successful in the
market?
The first step is to get the Market Mix right!
The marketing mix is about putting the right product or combination
in the Right place, at the right time, and at the right price.
There are broadly 2 concepts in the marketing Mix: 4PS & 7PS
4 Ps: E.Jerome McCarthy created the Marketing 4Ps in the 1960s. It is
relevant even today and used by various companies for their GTM
strategy.
Product: A product is anything tangible and intangible that fulfill our
customers' needs or wants. A product must be relevant & adaptable
to the changing needs of the user.
ASPECTS OF PRODUCT
PLACE
So how do products move from production to consumption?
The place is basically the channel of distribution a company chooses
to increase the reach of its products.
Various distribution channels that can be used:
Direct Sales: Door to door, Selling at the Manufacturer's Plant
Indirect Marketing Channel: One-Level Channel, Hybrid
Distribution Channel, or Multi-Channel Distribution System.
Ecommerce
PRICE
To Buy or Not to Buy?
The main question comes to our mind after seeing a Pricetag. A great
product at the wrong price can fail terribly. E.g. Nissan Murano Cross
Cabriolet
The Primary determinants of the Pricing of a product are the
perceived value, the utility of the product, and the price the target
segment is willing to pay.
The price of a product is the total amount a consumer pays for a
product/service.
Companies tend to determine the optimum price for their product/
service based on market share, positioning,
competition, and
perceived value.
TYPES OF PRICING
Premium Pricing
Penetration Pricing
Predatory Pricing
Geographical Pricing
Bundle Pricing
Skimming Pricing
Psychological Pricing
Dynamic Pricing
Captive Pricing
Premium Pricing:
Product/Service is unique
Perceived Benefit of the product is high
A high competitive advantage must exist with the marketer
E.g. Ferrari, iPhone, Gucci
Penetration Pricing:
Setting the price low with the goal of attracting customers and
gaining market share
Price is raised once the market share is gained
E.g. Netflix used this when it entered the market
Predatory Pricing:
Selling at an extremely cheap rate to quickly increase the market
share
Works for service-based industries like Telecom, Insurance,
Banking, IT, etc.
Law may curtail & punish if found anti-competitive E.g. Jio
Geographical Pricing:
The price variation in different parts of the world can be a
business strategy or forced upon by the local market
It usually occurs due to a difference in PPP, taxes, duties, etc.
E.g. Gasoline and Alcohol
Skimming Pricing:
Charge a high price initially because the product is unique and
you have a competitive advantage
The advantage is not sustainable, and eventually, the price is
reduced due to enhanced competition
E.g. Flagship smartphones and other electronics
Psychological Pricing:
The marketer wants to entice a customer into thinking that the
product is cheaper
The product is available at Rs199/- instead of Rs200
E.g. Max
Dynamic Pricing:
Pricing of Airlines & Hotel keeps on changing based on current
availability
It helps them to optimize revenue at the same time keep
demand intact because of low pricing during low days
E.g. Flight tickets, Uber rid
Captive Pricing:
If products have complements, the core products are generally
offered at a lower price while the captive products which are
necessary to use the core product are priced highly
E.g. Razors and Blades, Printers and Cartridges
Bundle Pricing:
Sellers combine several products in the same package
Can be a part of sales promotion
Can be used to dispose of off inventory
E.g. Combo meal at McDonald
PLACE
Channel of distribution
Distribution channel intermediaries are
middlemen who play a crucial role in the
distribution process. These middlemen
facilitate the distribution process through
their experience and expertise. There are
four main types of intermediaries:
Agent [C&F]: The agent is an independent entity who acts as an
extension of the producer by representing them to the user. An agent
never actually gains ownership of the product and usually makes
money from commissions and fees paid for their services.
Wholesaler: Wholesalers are also independent entities. But
theyactually purchase goods from a producer in bulk and store them
in warehouses. These goods are then resold in smaller amounts at a
profit. Wholesalers seldom sell directly to an end user. Their customers
are usually another intermediary such as a retailer.
Distributor: Similar to wholesalers, distributors differ in one regard. A
wholesaler may carry a variety of competition brands and product
types. A distributor however, will only carry products from a single
brand or company. A distributor may have a close relationship with the
producer.
Retailer: Wholesalers and distributors will sell the products that they
have acquired to the retailer at a profit. Retailers will then stock the
goods and sell them to the ultimate end user at a profit.
TYPES OF DISTRIBUTION
Intensive DIstribution: Intensive distribution aims to provide
saturation coverage of the market by using all available outlets. For
many products, total sales are directly linked to the number of outlets
used (e.g., cigarettes, beer). Intensive distribution is usually required
where customers have a range of acceptable brands to choose from.
In other words, if one brand is not available, a customer will simply
choose another.
Selective Distribution: Selective distribution involves a producer
using a limited number of outlets in a geographical area to sell
products. An advantage of this approach is that the producer can
choose the most appropriate or best-performing outlets and focus
effort (e.g., training) on them. Selective distribution works best when
consumers are prepared to "shop around" – in other words, they
prefer a particular brand or price and will search out the outlets that
supply it.
ExclusiveDistribution: Exclusive distribution is an extreme form of
selective distribution in which only one wholesaler, retailer, or
distributor is used in a specific geographical area. When the firm
distributes its brand through just one or two major outlets in the
market, which exclusively deal with it and not all competing brands,
it is said that the firm is using an exclusive distribution strategy. This
is a common form of distribution in products and brands that seek a
highly prestigious image.
GENERAL TRADE VS MODERN TRADE
General Trade: It is associated with a
complex network of small retailers,
dealers,
stockists,
wholesalers,
distributors, open markets, corner stores,
kiosks, and street vendors. Traditional
Trade builds on interpersonal relations
between customers and retailers. Erratic
demand is prevalent, leading to ad hoc
orders which strains the last mile delivery
planning.
Modern Trade involves a more planned
and organized approach to distribution
and logistics management. Modern Trade
includes more significant players such as
supermarket
chains,
mini-markets
(Indonesia), hypermarkets, etc. This
involves the aggregation of demand
across a diverse product range.
PROMOTIONS
How does a new product reach people?
It begins with the inception of the new product idea, the price is
fixed, and then the product is distributed…..but how will people know
about it? Promotions play a significant role in increasing the
awareness of the product. Promotion helps in increasing
brand/product awareness and leading generations. Marketing
campaigns include promotional activities to engage and attract
consumers.
There are two types of Promotions:
Sales Promotion: Bundle offers, Discounts, BTL activities, etc.
Marketing Promotions: Digital Campaigns, Sponsorships, etc.
Promotional Mix: Let us look at the individual components of the
promotions mix in more detail. Remember that all elements are
'integrated' to form a specific communications campaign.
Personal Selling is an effective way to manage personal customer
relationships. The salesperson acts on behalf of the organization.
They tend to be well trained in the approaches and techniques of
persSellinglling. However, salespeople are very expensive and
should only be used where there is a real return on investment.
For example, salesmen are often used to sell cars or home
improvements where the margins are high.
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 have couponing, money-off promotions, competitions, free
accessories (such as free blades with a new razor), introductory
offers (such as buying digital TV and getting free installation), and
soon.
Examples of trade promotions include–trade schemes, gifts to
retailers on purchase of a particular amount of SKU, extra SKUs
when purchase crosses a specific number, etc.
Public Relations (PR) is 'the deliberate, planned and sustained
effort to establish and maintain mutual understanding between
an organization and its public' (Institute of Public Relations). It is
relatively cheap, but certainly not cheap. Successful strategies
tend to be long-term and plan for all eventualities. All airlines
exploit PR; watch what happens when there is a disaster. The preplanned PR machine clicks in quickly with a very effective,
rehearsed plan.
Direct Mail is very highly focused on targeting consumers based
on 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 highly focused
communication in the form of a mailing. The mail is sent to
potential consumers, and responses are carefully monitored. For
example, if you are marketing medical textbooks, you would use a
database of doctors' surgeries as the basis of your mailshot.
Trade Fairs and Exhibitions Such approaches are good for making
new contacts and renewing old ones. Companies will seldom sell
much at such events. The purpose is to increase awareness and
encourage trial. They offer the opportunity for companies to meet
with both the trade and the consumer.
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 (local, national,
terrestrial, satellite), cinema, and outdoor advertising (such as
posters, bus sides).
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 promotional mix elements are then integrated to form a unique
but coherent campaign.
6M FRAMEWORK AND 3C-3D ANALYSIS
MARKETING MIX (4P) FOR IPHONE 13 PRO MAX
7P ANALYSIS
The 7Ps is generally used in the service industries
Extending the marketing mix by adding Physical Evidence, Process,
and People to 4P, bring the marketing function closer to human
resource management and operations.
People: The people in the framework represent the employees,
consultants, and freelancers who deliver the service to customers.
People are the most critical factor in providing knowledge-based
services as they add value to the experience of the consumer.
Hence, training, personal selling, and customer service are key ways
to ensure good service from the employees facing consumers.
E.g. Waiters in a restaurant, Hairstylists in a Salon, business analysts in
IT companies, etc.
Process: The processes are the steps that are required to deliver the
service to a customer.
The aim of all service companies is to have a seamless process flow,
making it easier for the consumer. These companies share process
maps for employees to make sure that work is repeatable and
successful.
Physical evidence is a combination of the environment and branding
where the service is provided to a customer.
The physical evidence capital would be a service brochure, franchise
Layouts, Uniform & Mascots of the brand Social media accounts,
corporate website, Company Service center/Point of Sales
Here is an example of a digital marketing agency providing PPC
services to their clients:
Product— Pay-per-click advertising services
Price— $499 — $1,999
Place— Remote work
Promotion — Run ads on Google AdWords and send prospects to
a custom landing page.
People — Google AdWords certified resources to work on client
accounts. Processes — The steps needed to deliver the PPC
service to the customer. Physical evidence — Send brochures,
customer testimonials, company reviews, and proposals.
•
TYPES OF ADVERTISING: ATL, BTL, TTL
Companies can choose to conduct promotional activities in three
ways
Reach the entire market as a whole
to build brand awareness and inform
the masses about the product
Focused communication for specific
target group through individual level
interaction
Using mass advertising, a combination of ATL and BTL forms a
customer database to focus on conversion.
FMCG and personal care brands use ATL marketing techniques to
increase brand recall and subconsciously influence the purchase.
How do we measure an ATL campaign?
The reach of members watching the ad
The frequency of views
The number of impressions across various platforms Companies
use BTL activities in places such as colleges, universities, societies,
and high footfall areas to target their prospects.
How do we measure a BTL campaign?
Sales achieved at the place of activity.
A new customer was acquired at the site.
Conversion rates on site (at the place of activity).
Impression estimates via footfalls.
The open rate of email campaigns.
TTL can help brands use an integrated approach to advertise
products to both mass & focused markets together.
As part of ATL advertising, Vodafone books key places for hoardings
of its upcoming initiatives.
For example hoardings at airports, High streets, City roads, etc.
For BTL advertising, you will often see a booth of Vodafone inside the
malls.
APPEALS IN ADVERTISING
POSITIONING IN ADVERTISING
Media Planning
The process by which marketers determine where, when, and how
often they will run an advertisement in order to maximize
engagement and ROI. The media plan might split advertising
spending and resources between various online and offline channels
such as broadcast, print, paid ads, video ads, or native content.
GRP=ReachxFrequency
Types of Ad frequency or
scheduling
GRP- Gross Rating Point
Reach- Number of customers
exposed to the Ad
Frequency- Number of times
exposed
COMPETITIVE ADVANTAGE: VRIO FRAMEWORK
The VRIO framework is a strategic analysis tool designed to help
organizations uncover and protect the resources and capabilities that
give them a long-term competitive advantage
Value: The first question of the framework asks if a resource adds
value by enabling a firm to exploit opportunities or defend against
threats. If the answer is yes, then a resource is considered valuable.
Resources are also valuable if they help organizations to increase
perceived customer value. Not all resources are equally easy to
obtain.
Rareness: Resources that a few companies can only acquire are
considered rare. Rare and valuable resources grant a temporary
competitive advantage.
Imitability: An ideal resource cannot be obtained by competing
businesses.
Organized to Capture Value: The resources themselves do not confer
any advantage for a company if it's not organized to capture its value.
A firm must manage its management systems, processes, policies,
organizational structure, and culture to realize the potential of its
valuable, rare, thorough, and costly imitate resources and capabilities.
Only then can the companies achieve sustained competitive
advantage.
MARKET RESEARCH
Marketing Research is a process of gathering, analyzing, and
reporting information that may be used to solve a specific
marketing problem.
BRAND IDENTITY PRISM
The Physical: The tangible
physical characteristics of
a
brand.
This
brand
element includes things
like logos, colors, shapes,
and other brand assets
strongly associated with
your brand in the minds of
consumers.
Brand Personality: The brand's character and personality traits
include fun-loving, happy and playful, honest and kind, and so on.
This element is often conveyed in the brand's voice, but a brand's
design assets also play an essential role.
Culture: A company's internal culture is also an integral facet of a
brand's identity. Google, Tesla, Starbucks, Nike, and Amazon – for
better or worse, these major brands have all become almost as
recognized for their workplace cultures as they are for their
products and services.
Customer Reflection: What does the target audience look like or the
brand's ideal buyer? Most brands have a few different buyer
personas, but there's usually one that's a stand-out, go-to win for the
brand – the loyalists. It's this target buyer that brands should be
targeting with their messaging, speaking to that go-to buyer who is
more likely than other personas to become an ambassador for the
brand.
•
Customer Self-Image: The customer self-image flips the customer
reflection on its head, instead representing the customer's ideal self.
What are the target customer's aspirations and goals, and how do
they want to look and behave? Brands should aim for messaging
that cultivates this vision of the customer's ideal self to resonate with
their audiences.
WHAT IS A BRAND?
A Brand is a mixture of tangible and intangible attributes, symbolized
in a trademark, which, if properly managed, creates influence and
generates value.
A perception that the customers have about your product or services.
It is an emotional and psychological bond between your customer
and your brand.
In order to find a Job, the first thing you do is build a CV.
What does the CV represent? It represents an image of you, a
perception, a promise that will be fulfilled once you are hired.
This is your brand!!
A brand is a customer's perception of your product or service. It is an
emotional and psychological bond between your customer and your
brand.
A trademark is a brand name that is
legally differentiated from all the other
brands.
For Example, Tesla is a trademark.
BRAND EXPERIENCE AND BRAND IMAGE
Two terms are used to talk about a brand: Brand image and Brand
experience. In marketing terms, they have two distinct meanings.
Brand experience is the total of all contact points with the brand. For
example, Advertisements, Buying, Using, Longevity, etc.
Brand Image is a virtual construct of a brand inside the minds of the
customer; it is the total of all the expectations a customer has about
the brand.
BRAND ELEMENTS
Different brand elements
that make a brand:
Examples:
Apple has been one of the most valuable brands in
recent years because it has maintained its core
brand values– Perfection, Innovation, uniqueness,
and sleek design.
Closer home, OYO has created an enviable brand
image that is rooted deeply in cost effectiveness,
hasslefree experience, and availability.
BRAND VALUE
Brand value is the financial worth of the brand.
To determine brand value, businesses need to estimate how much
the brand is worth in the market– in other words, how much
someone would pay for your brand name.
We can also define it as ,The difference between what a customer
pays for getting the branded product, i.e.from the brand point of
view, and a similar product without a revered brand name.
The main steps for creating brand value are:
BRAND EQUITY
It is a value added to a product or service by linkage to a brand
identity (name,
logo, symbol, tagline, etc.)
Brand Equity creates value for both customers & firms
Brand Equity affects how consumers think, feel & act with respect
to a brand, as well as the price, market share & profitability that the
brand commands
The added value is both psychological & financial & is created
through a set of intangible assets linked to the brand
Each Brand Equity asset creates value in a variety of very different
yet measurable ways
Managing Brand Equity involves investment to create & enhance
these assets
BRAND VALUE VS BRAND EQUITY
Basis for comparison
Brand Equity
The investment community will then consider market performance,
replacement cost, and purchase price in acquisitions (among other
factors) to assess shareholder value in general and the value of a
brand in particular.
Other important factors which contribute to the brand value are the Marketing Program Quality, Market place condition, and
thegeneralInvestorsentiment
Methodologies to calculate brand value:
BRAND EXTENSION
Brand Extension is using the leverage of a well-known brand name in
one category to launch a new product in a different category.
Three Types of Brand Extension:
1. Vertical Extension: Leveraging a brand to access a market segment
above (Premium) or below (Value/Economy) vis-à-vis its current
position
2. Line Extension: Extending the existing brand into different variants
of the same product market (alternative flavors, models, packs, sizes,
etc.)
3. NewProduct-Market Extension: Extending an existing brand into a
new product-market
BRAND ARCHITECTURE
BRAND RIVALRY
It can be defined as the competition between brands offering similar
lines of products to the same target audience at similar prices to
increase market share and overall revenue.
BRAND LADDER
Brand Ladder refers to the various benefit levels that a brand
provides to its consumers. Over a brand's lifecycle, marketers project
a brand to gain customer loyalty. The term was coined by Kevin Lane
Keller, Profess who wrote the book StrategicBrandManagement’.
The Brand Ladder consists of the 3 levels:
Attributes: It refers to the product's physical features like
specifications. If we consider the example of a mobile phone–the
attributes could be the size, weight, processor, operating system
Functional Benefits: These refer to the benefits that are rendered
to the consumer by the attributes. In a mobile phone, functional
benefits include speed, memory, interface experience
Emotional Benefits: It refers to how the product/ service connects
with the consumer in daily life through its usage. A mobile phone
can provide different benefits for its users like gaming,
messaging, browsing
A brand over its lifecycle must travel through these levels to gain a
loyal customer base. Some of the most successful brands have
existed for decades because they have successfully passed through
the 3 levels. Please refer to the following Starbucks example.
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 ofUSP.
USP can be:
1. Product(Include features, packaging etc.)
2. Service
3. Combination of product and service
They should resonate with the needs and wants of the consumer.
Examples:
Samsung's mobile Marine: Features like Unbreakable, WaterProof
Dominos: 30 minutes or less
M&Ms: The milk chocolate melts in your mouth, not in your hand
NANO: World's cheapest car
MacBook Air: World's lightest laptop, SlimCameras
Nokia1100: TorchLight
ESP (Emotional Selling Point):
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."
Eg: You can emphasize the end emotion after purchase-L'Oreal's
"Because you're worth it" emphasizes pride and recognition of your
own self-worth,
Caveat: You can't abandon logical benefits supported by credible
features in the name of an ESP approach.
Examples:
Dove: Real Beauty
Nike: Just Do It
Incredible India Campaign: Kerala “God’s place on Earth”
Insurance schemes like “Sar Uthake Jeeyo”, Almost all of them
Polio Campaign“Do Boond Zindagi Ki” and other social cause
campaigns against poverty, AIDS, etc.
Hero Honda Pleasure “Why should boys have all the fun”
L'Oreal's "Because you're worth it" emphasizes pride and
recognition of your own self worth
"Finger-lickin' good" from KFC
"Make safe sex feel sexy"(Durex condoms)
"USPS ARE GREAT BUT ESPS ARE EVEN BETTER"
BRAND PURPOSE
BRAND RITUAL
Behaviors, habits, or ceremonies that are associated with a brand.
They have an enormous impact on brand loyalty and increase brand
attractiveness.
Consumers appreciate rituals, as these give them a sense of
belonging and significance. It offers a chance to interact with the
consumer, to give a welcome break from the humdrum of everyday
life
MARKETING STRATEGIC PROCESS
INTEGRATED MARKETING COMMUNICATION
The integrated marketing communication of IMC, as it is so famously
called, focuses on one single thing - CONSISTENCY. The message you
want to drive about your offering should be consistent across all the
marketing tools you use. Yes, depending on differences in the
segments within the target consumer, we drive different messages,
but that means we are changing how much focus we put on which
part. The overall message is consistent. For example, a men's
deodorant might advertise on the price or longevity on TV, but online
advertising might focus on how wearing that brand makes you look
cool. But in the online ads, they would still slightly concentrate on
longevity. This is a classic case of IMC.
The IMC or MCM - Marketing Communication Mix comprises 8 major
modes of communication. Let us understand each one of them and
then talk about how we choose which ones to use when and how.
The 8 modes are –
Advertising - the most common mode of advertising includes
print media (newspapers, magazines), broadcast video (radio and
TV), and network media (telephone, cable, satellite) remember
Those phone calls from banks asking you if you need a credit
card?, electronic media (audio or video tape, CDs, Web page), and
display media (posters, signs, and billboards)
Sales promotion - as discussed previously, these are short-term
incentives that are given to retailers or consumers to drive the
purchase of the product, trade promotions (where you pay a part
of the cost incurred when you ask the retailer to advertise your
product -for example, hypothetically HUL agrees to pay 30% of
the price of the standees that a retailer makes for his outlet for
the display of Lakme) and promotions also include sales force
promotions where you give incentives to your sales force or
retailers if their sales exceed the target.
Events and experiences - The company would like to organize an
event for the product- either a launch event like Microsoft and
Google organize, or sponsor some events like Marathons - For
example, the Standard Chartered Mumbai Marathon, or organize
an event for a good cause like P&G organizes events to support its
Shiksha initiative. These events can be of any nature or size and
be held at any location.
Public relations and publicity - This mode of communication
includes programs for consumers or employees. For example,
loyalty cards by Big Bazaar. This is a part of Customer Relationship
Management and requires integration with the company and
retailer.
Online and social media marketing - I am sure I do not need to
elaborate on this. This is rising to be the most commonly used
source to generate awareness as even purchasing is now moving
to online mode. This is the first source where consumers turn to
for information and hence can be the make or break for the
marketing of any product
Mobile marketing - yes, those irritating in-app ads are planned
and paid for. This type of advertising helps marketers to bombard
those consumers with advertisements that search for related
products online. Hence if you read about an electric shaver online,
you will soon begin to see the ads in your apps reminding you to
buy it.
Direct and database marketing involves using mail, telephone,
fax, or the internet to communicate or initiate dialogue with
specific consumers. This is not a mode of mass communication
and hence has limited applicability
Personal selling - this is the most convenient method of selling.
This includes face-to-face interaction with prospective customers
and helps in detailing them about the product, answering their
questions, getting orders, and sometimes also hearing their
reviews. This is the form of house-to-house selling. This was
explicitly used for water purifiers due to complexity in installation,
a large number of queries that people had which could not be
solved in store as there were too many customers at the same
time, and also because the target consumer and critical decision
maker was the mother of the household who could be found at
home easily.
Hence, it would help to decide which channel to use once you know
the communication channels. You generally will be asked which
track you would focus the most on and why.
The investment division should be decided on the following basis –
1. Costs involved- is it per square cm as in newspapers, per second of
broadcast, printing and setup cost, brand ambassador cost, etc
2. Return on investment- which channel is more capable of driving
final purchase, as this would change with product category and
target consumer. Every company wants to maximize the ROI
3. Target consumer - Which media mode does he consume the
most? For a dish wash bar like Vim, making a YouTube web series
would be barely adequate compared to sponsoring one for brands
like Flipkart or Swiggy, which target consumers who are active on
YouTube
Hence, depending on all the variables, choose the media wisely
because no matter how good your product is and how affordable it is,
if you cannot communicate this message powerfully to the right
consumer at the right moment in the right way, it will not translate
into sales.
CAUSE MARKETING
Tata Tea: "Jaago re"
This campaign took up social
activism allowing the company
to connect with issues such as
voter registration,
corruption,
and women's rights
Before this campaign, TATA
Global
accounts for 18.7%of
market share and ranked
number 2 after HUL (21.5%
market share)
Post this campaign launch they
captured the number #1 position
with 22% (currently at 19%)
market share
Lifebuoy: "Gondappa"
Lifebuoy: "Best a man can be"
Launched on January 13, 2019,
with the digital release of a
short film entitled We Believe:
The Best Men Can Be, to
address
negative
behavior
among men, including bullying,
sexism, sexual misconduct, and
toxic masculinity
Amassed over 11 million views in
just eight months
Once a week, a volunteer visits
homes to make the villagers
aware of the need to wash
their hands with soap
Overall diarrhea incidence
reduced from 36% to 5%
The campaign has reached out
to 180 Million people
Why? – Diarrhea alone killed
13% of children under the age
of five, and as per UNICEF, 31%
of children have access to basic
sanitation
CocaCola: "5 by 20"
Program to help 5 million
female
entrepreneurs—from
fruit farmers and artisans to
recyclers and retailers —
become
part of our value
chain by 2020
3.2 million women in 92
countries
have
started
businesses as part of our 5 by
20 program
Horlicks: "Ahaar Abhiyaan"
Horlicks: "Ahaar Abhiyaan"
Provide
children
from
underprivileged backgrounds
access to holistic education.
Focused efforts in three main
areas- improving education
infrastructure,
empowering
marginalized girls through
education, and improving
learning outcomes.
Launched in 2005, raised over
Rs 22 Crore for the cause
Overall sales increased by 5
times
The campaign will aim to
address
issues
of
malnutrition among the
youth. Under the campaign,
a contribution of Re 1 will be
made towards the initiative
from the sale of Horlicks in
the state
14% lift in sales because of
this
campaign(in
West
Bengal)
VISTARA: FLY THE NEW FEELING
Partnered
with
Salaam
Baalak's trust, which is a nonprofit, as well as a nongovernmental organization, is
providing support to street
children of Delhi and Mumbai
to fly 12 kids on its first flight
ever
Mahindra: Seed the rise
A digitally-driven crowdfunding
campaign
to
enhance the lives of farmers
Got donations amounting to
INR 1 crore and
will be
utilized for farmer welfare
through five carefully handpicked
projects
in
collaboration with Four
NGOs
Nestle: "Educate the girl child"
In partnership with Mumbaibased education reform nonprofit Nanhi Kali in late 2016 in
order
to Educate the Girl
Child in a long term project of
the same name
FORMS OF CAUSE MARKETING
CAUSE MARKETING DURING COVID-19
"We’re all in this together.” That is the message many companies are
communicating to customers and the general public while the world
grapples with the COVID-19 health crisis
CO-BRANDING
One of the fantasies that almost all kids in the Indian subcontinent
had during the late 1990s and early 2000s was, "What if we had a
Cricket team with India's Batsmen and Pakistan's Bowling?"
We wanted a new team that would be a strategic alliance between
the two teams, benefiting them both. This is precisely what CoBranding is!
Co-Branding is the coming together of 2 or more brands in a
partnership to create a product or to have a common promotional
event.
E.g., Oyo Hotels partnering with Unilever for a hygiene postCovid-19
As Brand Matters put sit – the main purpose is to create value
equivalent to 1+1=3, that is, to increase the cumulative market
strength, profitability, cost savings, and perceived value.
Pepsi
Co-owned
Lay's
has
partnered with brands like
Cadbury, KFC, Urban Company,
Zomato, and Spotify for special
co-branded packs with a custom
gratitude message thanking the
brand and the unsung heroes.
The name of the campaign is
“HeartWork".
Swiggy
/
Zomato
offering
discounts on the payment of
orders with Amazon Payor
PhonePe.
GUERILLA MARKETING
Guerrilla marketing is all
about
unconventional
communications.
These
tactics need a heightened
imagination put into the
campaign lot of investment of
time & energy. This often
happens
in
unexpected
places but makes a highimpact impression.
Outdoor Guerrilla Marketing: This adds something to pre-existing
urban environments, like temporary artwork on onside walks and
streets. Viral marketing is a highly visible form of guerrilla marketing
these days. A successful viral campaign basically spreads like wild
fire. Like you tell two friends, they each tell two friends soon. Hence,
doesn't require much in terms of resources and has the potential to
be unstoppable.
Indoor Guerrilla Marketing: Similar to outdoor guerrilla marketing,
only it takes place in indoor locations like train stations, shops, and
university campus buildings.
Experiential Guerilla Marketing: A mixture of everything said until
now but probably executed in a way that requires the public to
interact with the brand.
Budget-Friendly: What marketers can cherish about implementing
guerrilla marketing is that it's fairly low-cost. But this is in terms of
monetary value. The real investment here is a creative & intellectual
brain that is needed for its implementation.
SURROGATE MARKETING
An advertisement that shows a substitute product in the guise of
the real one otherwise cannot be legally advertised through print
and electronic media.
Why don't we see Imperial Blue advertising its product directly as
Whisky or Wills as cigarettes?
It is because the advertising standards council of India has banned
direct liquor and tobacco ad in the media and hoardings.
How are they advertising then?
Creating Brand extensions
In their ads, bagpipers communicate its products as soda and music
CDs instead of whisky. So they create alternative products to
improve brand recall
Eg: Budweiser ventured into the clothing industry with the name
Budweiser street wear coin collaboration with Myntra
Creating Proxy commercials
“Men will be Men" the famous tagline was created by Imperial blue
to recall the brand's name
Promotion through movies and celebrities
The products are marketed by using famous celebrities and movies
to create an ever-lasting bond in the minds of customers
Eg: Vodka Martini "Shaken, Not Stirred" is made famous in James
Bond movies, and Vimal is advertised using Ajay Devgn and
Shahrukh Khan
Using Campaigns:
Wassup Bud by Budweiser was a campaign made to remind people
to check on their buddies and family during the COVID19 lockdown
Heineken's "Connectioff"-pitfalls of social distancing during the
COVID19 pandemic
Organizing events and sponsorships:
The
brands
use
events
to
engage
people
such
as
#BacardiHouseParty, and Royal Stag Mirchi Music awards This gives
them brand visibility, and people connect with the products of these
brands
Royal Stag Barrel Select Large short films is a famous event that
uses youtube content to advertise the brand to young people
MEME MARKETING
The word meme is coined from the
Greek
word
‘mimeme’
which
means"to imitate".
It was first used by Richard Dawkins
in his book ‘The Selfish
Gene’ in
1976. He argued that virality didn't
just apply to infectious diseases, but
also to anthropological settings.
He defined a meme as any
shareable cultural artifact that
spreads through like wildfire.
Memes are also considered cultural
analogs to genes as they selfreplicate, mutate, and respond to
selective pressures.
MEMES-THE FUTURE
OF SOCIAL MARKETING
Meme marketing is a kind of marketing in which memes from
various mediums like word of mouth and social media networks
are used to fulfill marketing goals.
It is the practice of using users to promote a brand or product by
creating appealing, engaging, and fast-spreading news or
content.
Millennials spend over 200 minutes online every day. Memes are
so prolific that millennials and Gen Z laugh and share thousands
of memes daily. This gives brands plenty of opportunities to
engage with their audience.
The drawback of traditional brand marketing on social media is
that it often has low interaction. People tend to skip over lame,
commercialized content and get to their normal proceedings.
GenZ is very ad-averse. They can smell promotion from a mile
away and prefer staying away from it. Memes aren't overly
promotional - they make people laugh with a casual reference
to your brand.
What Does Meme Do?
Increases Engagement
Entertains Audience
Easy to Create
Allows to be Creative
Allows to show Brand personality
IMPORTANT ELEMENTS
OF MEMES MARKETING
Be native- It is essential that a digital native writes and shares the
brand's memes so the lingo is on point. Otherwise, the audience will
immediately pick up that the brand is trying too hard to be cool,
ultimately hurting the brand.
Be relatable- It's guaranteed that only the liver of the population
will understand a meme, and it will not appeal to everyone. So a
meme should be directed toward the target audience and
should cater to their interests.
Watch the timing- An existing meme should only be used if it is
still trendy, and the cultural climate should be correct if a new
meme is created. Otherwise, it could come off as tone deaf and
out of touch.
Heinz is a perfect example of meme creation in action. The
condiment brand wanted to increase brand awareness and
engagement on its social media. It implemented a meme
marketing campaign that earned 4 million impressions with
80k engagements.
Heinz cleverly fed into the timeless debate on tomatoes being
a fruit or a vegetable. They asked people to take sides with
hashtags and posted graphics saying, “If you had to decide
right now if a tomato is a fruit or a vegetable?"
Meme marketing helps brands increase their brand exposure
and drives their marketing goals, be it to familiarize the target
group with the product or bring traction on site. Meme
marketing as against traditional marketing is relatively
inexpensive, which is why brands are including meme
marketing in their core marketing strategy.
EMOTIONAL
MARKETING
Most customers' buying decisions are driven by emotions rather than
logic, which makes emotional marketing important.
Emotional Marketing is a marketing strategy that uses basic emotions
to elicit customer response. It tells a story that connects with the
customers in a humane way. All the emotions are aligned with the
brand's objective, vision, and mission.​
Emotional marketing leads the audience to notice, remember, and later
buy. It reaches more audiences through shares on social media and
results in brand loyalty.​
The first impression (which lasts only a few seconds) makes the best
impression. Emotional marketing can make a great first impression. If
marketed wisely, the brand tends to stand out in the consumer's mind.
Studies show that emotional marketing campaigns work twice as better
as other marketing campaigns. Emotions are primarily divided into four
broader groups, namely anger, sorrow, happiness, and surprise/fear.
Here are a few things that work well with Emotional marketing.​
Color psychology plays a huge role. A
movement towards a good cause – An
example is the "One day without shoes"
campaign started by TOMS.
Creating Viral campaigns – Dollar Shave club
took an everyday problem, and the
advertisement (our blades are f*cking great)
became viral overnight Building a
community through word of mouth.
Examples of Emotions​
1. HAPPINESS
Positive emotions like happiness increase
engagement. Android's "Friends Furever"
shows pairs of different animals together in
Harmony. This ad automatically brings a smile.
2. FEAR
Through fear, there
will be a sense of
urgency, and the
audience will start
acting immediately.
Ads like Smoking is
injurious to health
and can cause lung
cancer elicit fear.
3. SORROW
Sad news spreads faster and
creates awareness among
people. WWF created an
awareness campaign on
how human actions lead to
animal cruelty. How animals
have been mistreated, and
human interferences are
affecting their habitat.
4. ANGER
Negative sentiments like anger can
immediately impact and change the
audience's perspective. Earlier, the
phrase "Like a Girl" was mostly used
in a belittling way. P&G's Always
brand launched the "LikeAGirl"
Campaign. Through this campaign,
the positive sentiment of Women
empowerment was portrayed, which
attracted women all over the world.
SERVICE MARKETING
Service marketing is marketing based
on relationships and value.
It refers to the application of a special
set of tactics or strategies to predict the
consumer's need for an intangible
product. And hence, meet their
requirements accordingly to provide
maximum value for them from their
purchase.
SERVICE MARKETING TRIANGLE
It depicts the relationship between three essential elements of a service
industry, i.e., company, employees, and consumers.
Examples of Service Marketing:
Urban Company Home Salon
Urban Company started with
Home Salon booking after
LockDown3.0 was over, and
120000 people were waitlisted
for the service.
Extensive use of PPEs to
safeguard customer's wellbeing &
communicate
safety
Filling the Gap for male
grooming space amidst
lockdown
Aspects of Service:
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
usable in its intended location.
CUSTOMER TRAINING - whether your company offers to train
customers in using the product.
CUSTOMER CONSULTING - whether your company offers advice or
research services to buyers.
MAINTENANCE AND REPAIR - how well your company helps
customers keep the product in good working order.
Bottomline:
The actual design of the product or service should be guided by a
deep understanding of what customers need, want, and are willing
to pay for.
AMBUSH
MARKETING
Ambush marketing or ambush advertising is a marketing strategy in
which an advertiser "ambushes" an event to compete for exposure
against competing advertisers. Coined by marketing strategist Jerry
Welsh while he was working as the manager of global marketing
efforts for American Express in the 1980s.
Most forms of ambush marketing capitalize on the prominence of a
major event through marketing campaigns that associate an
advertiser with it, but without actually having paid sponsorship fees
to the event's organizer to identify themselves as an "official" partner
or sponsor.
Action against ambush marketing is most common in sports; the
practice has been a growing concern to the organizers of major
sporting events-such as FIFA (FIFA World Cup), the International
Olympic Committee, and the National Football League, as ambush
marketing can devalue the exclusive sponsorship rights that are sold
to other companies, dilute the exposure of official sponsors, and in
some cases, infringe upon the organizers' intellectual property.
DIRECT VS INDIRECT AMBUSH MARKETING:
Direct ambush marketing is an approach where a brand works
aggressively to associate itself with an event or property when that
brand has not purchased rights as the official sponsor. Indirect
ambush marketing, on the other hand, doesn't force the association
but seeks to align a brand through suggestions or references to an
event or property.
Types of Direct Ambush
Marketing
Types of Indirect Ambush
Marketing
Predatory Ambushing
Associative Ambushing
Coattail Ambushing
Distractive Ambushing
Property Infringement
Values Ambushing
Self-Ambushing
Insurgent Ambushing
Parallel Property Ambushing
EXAMPLES OF AMBUSH MARKETING:
SOCIETAL
MARKETING
Societal marketing is a marketing concept that holds that a company
should make marketing decisions by considering consumers' wants,
the company's requirements, and society's long-term interests.
The social marketing concept holds that the organization's task is to
determine the needs, wants, and interests of a target market and to
deliver the desired satisfactions more effectively and efficiently than
competitors in a way that preserves or enhances the consumer's and
society's well-being. Therefore, marketers must endeavor to satisfy
the needs and wants of their target markets in ways that preserve
and enhance the well-being of consumers and society as a whole. It is
closely linked with the principles of corporate social responsibility and
of sustainable development.
BIGGEST TROUBLING QUESTION WHICH HAS LED TO THE
INTRODUCTION OF THIS CONCEPT:
Some have questioned whether the
marketing concept is an appropriate
philosophy in an age of environmental
deterioration,
resource
shortages,
explosive population growth, world
hunger and poverty, and neglected social
services. Are companies that successfully
satisfy consumer wants necessarily acting
in the best, long-run interests of
consumers and society?
The societal marketing concept calls upon marketers to build social
and ethical considerations into their marketing practices. They must
balance and juggle the often conflicting criteria of company profits,
consumer wants satisfaction, and public interest. Yet a number of
companies have achieved notable sales and profit gains by adopting
and practicing the societal marketing concept. Some companies
practice a form of societal marketing concept called cause-related
marketing. Pringle and Thompson define this as "activity by which a
company with an image, product, or service to market builds a
relationship or partnership with a 'cause,' or a number of 'causes,' for
mutual benefit.
BEST EXAMPLES OF SOCIETAL MARKETING:
Lifebuoy's "Swasthya Chetna" (LSC)
was a five-year health and hygiene
education program initiated by
Lifebuoy by Hindustan Lever
Limited (HLL), the Indian arm of
the fast-moving consumer goods
(FMCG) major, Unilever. The
program was formally launched in
2002, in eight states across India.
The objective of this program was to educate around 200 million
people in rural and urban areas about the importance of adopting
good 'health and hygiene 'practices. The program spread awareness
about germs and their adverse effects on health, and how proper
'health and hygiene 'practices, such as bathing and washing hands
with soap, could prevent diseases like diarrhea.
According to HLL, LSC was not a philanthropic activity but a
marketing program with a social benefit. HLL sought to grow the
Lifebuoy brand in India by attracting those consumers who had
never used soap. In the process, the company sought to bring about
a behavioral change by convincing people to use soaps more
frequently, thus creating more users for its brand.
This program was also seen as a successful case for public-private
partnerships. Impact of this program:
In 2003-04, the sales of Lifebuoy grew by 20 percent. According to
Unilever, the sales of Lifebuoy were showing "directly attributable
growth" as sales from the eight states where the program operated
was particularly strong.
COLGATE
The toothpaste brand's Smile
Facebook page, which has close to
40,000
"likes,"
encourages
Facebook users to upload photos
of themselves smiling. Those
images are then put together into
large collages that are used in the
company's
advertising
in
supermarkets and malls. There's
even an iPhone app to help them
upload those smiley photos.
An analysis by WaveMetrix, which "tracks online buzz for major global
brands," indicates that Colgate's strategy "has a positive effect on
purchase discussion." As the campaign continues, the consumer
becomes more likely to talk about buying toothpaste. Plus,
WaveMedia points out, the whole thing gives Colgate "a sense of
community and 'fun'" to consumers.
That sense of community that the brand exudes is also partially due
to the fact that Colgate will donate money to charity if the company
can collect a million smiles, WaveMedia notes. This concept of
combining brand engagement with charity had improved its overall
sales in that period by 20%.
EXPERIENTIAL
MARKETING
Experiential marketing gives customers an opportunity to engage
and interact with brands, products, and services in sensory ways that
provide exact and precise information. Personal experiences help
people connect to a brand and make intelligent and informed
purchasing decisions. It's the difference between telling people about
the features of a product or service and letting them experience the
benefits for themselves.
Examples:
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 on a Hyundai car on a special track
made of obstacles. They were asked about the pick-up, speed,
control, handling, and breaking comfortability, along with the
interiors of the car.
http://www.youtube.com/watch?v=lHVjPydAiKE
http://www.youtube.com/watch?
v=2PWWghyHpCQ&feature=related
Nokia 5800 Xpress Music Activation Launch:
They had their associates helping the customers in activating the
service and giving a demo on how to use it. It was totally new to
the market, and the customers had no idea about it. They opened
several music outlets and gave the customers a real feel of Xpress
Music on Nokia Phones. They also had Nokia handsets to
experiment with. This allowed customers to actually analyze the
quality
of
music
and
other
handset
features.
http://www.youtube.com/watch?v=3BN4n3Qihac&feature=related
Coca-Cola New Grip Bottle:
http://www.youtube.com/watchv=Rs8YyYAXf2A&feature=player_emb
edded
RC&M: GRAMEENO KE BEECH:
A multi-village fair with participation from various corporate under
one roof, where customers can actually feel the experience of the
product by using it. Products vary from refrigerators to motorbikes.
http://www.rcmindia.com/case_GKB.html
T- Mobil Angry Birds Campaign:
A
real-time
simulation
of
the
game
http://www.youtube.com/watch?v=jzIBZQkj6SY
Angry
Birds
Carlsberg:
Carlsberg unveiled its billboard named 'Probably the best poster in
the world' in Brick Lane, London, and for many people, this genuinely
delivered on its promise
https://www.youtube.com/watchv=ZwB3kGCXeWY&ab_channel=Carl
sbergUK.
Coca-Cola:
Unlock your inner 007
https://www.youtube.com/watchv=RDiZOnzajNU&ab_channel=CocaColaZero
The Cake Shop in the Garden:
For the launch of a new novel by Carole Matthews, The Cake Shop in
the Garden, Tin Man Comms built an edible garden in Central
London last month, constructed from 15 different types of cake, 4kg
of icing, a Swiss-roll bird bath, and 300 leaves of edible ivy.
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:
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 promised to cut its global energy use by 20% by the year
2010. The Hewlett-Packard Company announced plans to deliver
energy-efficient products and services and institute energyefficient operating practices in its facilities worldwide.
·Indica EV- an electric car from Tata Motors which runs on
polymer lithium-ion batteries.
For green marketing to be effective, you have to do three things; be
genuine, educate your customers, and give them the opportunity to
participate.
Being genuine means that you are actually doing what you claim
to be doing in your green marketing campaign and that the rest
of your business policies are consistent with whatever you are
doing that's environmentally friendly. Both these conditions must
be met for your business to establish the environmental
credentials that will allow a green marketing campaign to
succeed. Also, read about "Green
Washing"- a form of spin in
which green marketing is deceptively used to promote the
perception that an organization's products, aims, or policies are
environmentally friendly.
Educating your customers isn't just a matter of letting people
know you're doing whatever you're doing to protect the
environment, but also a matter of letting them know why it
matters. Otherwise, for a significant portion of your target market,
it's a case of "So what?" and your green marketing campaign goes
nowhere.
Giving your customers an opportunity to participate means
personalizing the benefits of your environmentally friendly
actions, normally through letting the customer take part in
positive environmental action.
SPORTS
MARKETING
Using sports to market products is 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:​
The first is the advertising of sports and sports associations such
as the Olympics, the Spanish Football league, and the NFL​
The second concerns the use of sporting events, sporting teams,
and individual athletes to promote various products​
The third is the promotion of sports to the public in order to
increase participation
Common examples of sports marketing include athlete
endorsements, testimonials, event marketing, and stadium
advertising.
The origination of the marketing discipline known as sports
marketing coincided with the advent of the first MLB (Major
league Baseball ) game ever televised on August 26, 1939 and as a
result made Babe Ruth the first six-figure athlete in the history of
professional sports.
Sports marketing morphs advertising, sponsorship, promotion,
sales promotion, and public relations into one of marketing's most
effective tools to reach and touch consumers.
Sports today utilize corporate sponsorships and television money
in order to compete and pay for top quality athletes. Those
companies use teams, leagues, colleges, and individual s to
differentiate their products in a very competitive business
environment. IPL is good example of sports marketing. However
rising cost of sponsoring cricket events are forcing
sponsorstoothersports.
VIRAL
MARKETING
Viral Marketing is known as 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 Orkut, 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. Companies could even use non-internet mediums such as
phone, SMS, etc. t market their products. The two basic differentiators
of viral marketing from other marketing mediums are:​
It is rather inexpensive in its use and also value for money since, at
times, it may be more effective a marketing tool than
contemporary marketing media. For example, Cadbury uses the
Gorilla advertising campaign.​
It uses the basic tenet of a virus in its spreading, i.e., it spreads
from one person to another just as a virus would spread.
Prominent examples of viral marketing are:​
​
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 that 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.
Always: #LikeAGirl on Twitter - Although it originally aired at the
Superbowl, the campaign continued to trend on various social
accounts, large part through the #LikeAGirl hashtag. The content
of the campaign is perfect here because it makes you think about
an issue in a completely different way by showing different age
groups of women so we can see where things start to go wrong.​
#LikeAGirl started trending on Twitter, was retweeted by several
celebrities, and before you knew it – the video was viewed more
than 85 million times, 30 million of those the first week it was
released.
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.
Ex Machina on Tinder: This was a campaign at SXSW festival back,
and it quickly became viral and was shared on multiple social
platforms. At the festival, there was a woman named Avo on the
Tinder dating app that was speaking very similarly to the woman
in the movie Ex Machina. You could actually interact with her,
even though she was supposed to be a robot.​ What is particularly
interesting about this campaign is the fact that it is for a movie.
Movies already have their way of getting a lot of publicity, so you
may not feel this can relate to your business, but what they did
was create a viral campaign that simply used the movie, not to
advertise it per se.
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 (literal 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 offline. Three noteworthy characteristics are:​
​
1. Credible—People trust others they know and respect, and 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.​
3. Timely— It occurs when people want it to and when they are most
interested, and it often follows noteworthy or meaningful events
or 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
trustworthy is the easiest path to a product sale, link, or new
subscriber. This is because recommendations are generally perceived
as incentive-free, unlike the obvious motivation of advertisers, who
may over-promise in a bid to increase sales.​
Difference between Word of Mouth and Viral marketing?
​
The major difference between word-of-mouth marketing and viral is
that word-of-mouth is often driven by you, the marketer or business
owner, and viral marketing is driven by the passion of your
consumers, and its success does not depend on you.
How to increase the power of WOMM​?
​
1. Leverage Existing Social Networks: Online communities have a
tightly knit group of users who can help to increase brand
awareness for the product. Tap into these communities with tools
or content targeting their specific sub-culture, and you are likely
to get a lot of attention.​
2. Target the Influencers. Look for individuals who are trendsetters
or authorities on a specific topic. They should preferably be
individuals who have many personal connections or a large and
loyal audience. If these people spread your message, your website
or product will very easily be disseminated to a targeted group of
potential users. Identify these influencers, build a relationship with
them, and market through their existing sphere of social
influence. Examples of influencers include celebrities, power users
on social websites, and popular webmasters or bloggers with
many loyal supporters.​
3. Exclusivity and Scarcity. Many websites or businesses launch
virally by offering a limited number of site invites. Some dangle
the bait of limited edition products or temporal discounts.
Combine this with influencer marketing, and you'll have an
excellent method to disseminate brand awareness for new
websites, products, or services. Exclusivity invites curiosity, and
scarce products generate consistent demand and conversation.​
4. Micro-Market. While online viral marketing leverages the
interconnectedness of the web to spread unique content or usersupported promotional schemes, micro-marketing focuses on
marketing to the individual by providing highly customizable
products. Nike and Puma's Mongolian Buffet are examples of
micro-marketing schemes which allow you to design and
purchase your own unique sneaker online.​
Successful examples​:
​
Gmail - Google did no marketing. They spent no money. They
created scarcity by giving out Gmail accounts only to a handful of
"power users." Other users who aspired to be like these power
users aspired for a Gmail account, and this manifested itself in
their bidding for Gmail invites on eBay. Demand was created by
limited supply; the cachet of having a Gmail account caused word
of mouth rather than any marketing activities by Google.​
Tupperware popularization​
Red Bull is the market leader in the worldwide energy drink
market, and they continue to grow awareness through word-ofmouth-focused activities. Among the initiatives that drive Red
Bull's WOM:
1. Red Bull Wings Team – a group of Red Bull employees that drive
around in Red Bull branded vehicles distributing samples​
2. Student Brand Manager Program – Red Bull sponsors student
advocates to discuss Red Bull at events around their respective
schools.​
3. Red Bull Bedroom Jam – A talent show event focused on their
targeted student demographic​
4. Red Bull Reporter – A program where Red Bull sponsors
journalism and film students to create news stories around the
Red Bull brand​
Unsuccessful examples​:
​
Hotmail - Hotmail "piggybacked" on personal emails from one
person to another to publicize their free email service. At a time
when few people had email, the first and only free email service in
the marketplace was appealing and novel -- hence their rapid
adoption and spread. But the Hotmail users did not voluntarily
pass it on; they had no choice about Hotmail adding the "sign up"
link at the end of their personal emails.​
McDonald's Lincoln Fry - a fake blog was discovered, and it
generated lots of negative word of mouth and little participation.
SOCIAL MEDIA
MARKETING
What is Social Media?
"A category of sites that is based on user
participation and user-generated content.
They include social networking sites like
LinkedIn or Facebook, social bookmarking
sites like Del.icio.us, social news sites like
Digg or Reddit, and other sites that are
centered on user interaction." - search
enginewatch.com/define It's not that simple.
We need to first understand media channels.
Types of Media?
Analogue and Digital Analogue: Television, Radio, Print, Outdoor
(Billboards etc.), Retail, Cinema.
Digital equivalents: Television (Netflix, Amazon Prime, HBO Go,
Starsports.com), Radio (iTunes), Print (ePapers, News Websites),
Outdoor (Online ads and banners), Retail (Flipkart, eBay), Cinema
(YouTube), Social Media is, therefore, a networked function of
Analogue and Digital Media mostly, but can include any content on
the web.
Brand Behaviour: There is no 'digital marketing strategy. There is
only a marketing strategy tailored to fit into the digital world. Using
Social Media, brands should build stories and engage a few users
very actively, as opposed to engaging many users passively.
Examples of Great Social Media Campaigns:
Axe: The Mating Game
Cadbury Bournville: Not so sweet
BMW: Story of Joy
The social media impact is measured through Engagement,
Influence, Advocacy, Sales, Search Results, Content, Insight into the
brand, Support, Credibility, and Loyalty. All of this is measured using
analytics software like Sprout Social and TweetDeck.
Important Media Terms and Trade-Offs:
Reach: The total number of different people who are exposed to a
message.
Frequency: The average number of times the target audience was
exposed to a message in any medium.
Smaller Audience More Times = Frequency increases, Reach
decreases
Bigger Audience Lesser Times Reach increases, Frequency
decreases
Optimal Reach x Optimal Frequency = Optimal Result
Marketing Through Media
Marketing through media hinges mainly on the communication.
Communication strategy consists of two components:
Media Strategy Essentials
Consumer Classification in the Media
Consumers in India, especially in the media, are classified based on
ownership. Their product ownership status determines what SEC
system they fall under. The ownership parameters used, in increasing
order, are: Electricity-Fan-Pressure Cooker-Colour TV-Utensil CleanerTwo Wheeler-Refrigerator-Kitchen Sink-Dining Table-Air Conditioner
The most basic category i.e. those having only electricity is classified
as E1, then there is D2, D1, C2, C1, B2, B1, A3, A2 and the highest
category where the consumer owns all these items is A1.
Blog Marketing & Designing a Social Media Campaign:
Before we analyze the social media campaigns, we need to
understand the channel from which most of these campaigns are
run. That is the social media channel from which the companies use
as a home hub to launch, monitor, and control their campaigns. The
possible channels in social media marketing are.
Normally in social media marketing, people tend to go to Facebook,
Twitter & Instagram as a preferred digital home for their marketing
activities. But a well-informed digital marketer would consider Blog
as the single most important social media channel for the following
benefits:
Constant link building helps to gain visibility in Google indexes Increase in SEO value Valued as a social sharing resource from
which other social media can link and share
Soft sell with supporting content that goes with your product
sales.
Deep topical links to specific articles/other content outside the
prominent landing pages RSS distribution/email subscriptions to
keep in constant touch with your customers.
Feedback from conversation with customers.
Blog Marketing: Benefits and Pitfalls
Let us look at how awesome blog marketing can be in two cases, one
which was hugely beneficial to a brand and another which was
extremely damaging.
Case: I love Zappos
This was a blog post linking with zappos.com by the lady impressed
by the customer service of Zappos. Seeing this blog, other customers
of Zappos started commenting and posting their own stories with
this. The blog started gaining visibility resulting in 1000s of mentions
on social media. It eventually received coverage from mainstream
media. People looking for reviews about Zappos started seeing this
blog resulting in more referral traffic to zappos.
CONTENT MARKETING MATRIX
It is no longer a secret that content marketing is central to every
social media marketing activity. A successful social media campaign
needs a multitude of content generation reaching the customers
through several touch points. But what type of content will suit your
target customer? This is wonderfully depicted by the content
marketing matrix.
X-axis: This variable describes the stage of purchasing cycle your
customer is in.
Y-axis: This variable is the type of customer profile/ product profile.
The four quadrants of Entertain, Inspire, Educate & Convince describe
the type of effect your content intends on your customers.
Blog Marketing: Benefits and Pitfalls
Piggy backing on the success of Isaiah Mustafa's ad "Smell like a
man" commercial old spice decided to take the campaign to social
media. The campaign was intended to change the perception of old
spice as a grandpa product to alpha male grooming product. As part
of the live YouTube campaign they created customized videos as a
response to the questions put up by the audience. Almost half of all
global conversations revolved around this campaign. This is quite an
achievement for low involvement category such as deodorants.
Brand impact - innocent smoothies
Tell your story-> spread the story -> Prove your story
Story: Smoothies covered with a hat knit by the charity
organization.
Gave a positive personality to the brand.
Customers Posted pictures of caps on social media - free
advertising.
Engagement impact - Birchbox
Find reach engage
"What is a birch box? Customized high-end samples of beauty
products (waiting for line exclusivity)
Blog reviews - social media posts -review videos -conversations
about the products
Sneak peek videos of products unlocked after a certain number of
comments
Conversion impact - Smarty had a party
Exposure + Credibility = Conversions
Socialized conversion points, direct link access & content
integration
Party supplier with a great blog following with posts about
product ideas
Conversion links with the posts and discounts coupons through
social media
Designing a digital marketing campaign
Key points to note:
DEFINE GOALS
Brand awareness? Followers
growth?
Conversions?
Lead generation?
DEFINE TARGET MARKET
Business or consumers?
Find a niche market
DEVELOP BUYER PERSONA
Describe age, salary, likes, etc.
Identify touchpoints
SELECT CHANNELS
Based on budget Covering all
touchpoints identified
Essential Digimark tools
ARTIFICIAL INTELLIGENCE:
can analyze search patterns, social media, blog post data, etc. to
connect your content with the right audience - relevance is
essential to create brand emotion
Can be used for an AI-powered chat box that also gathers
feedback and improves via machine learning
Can be used for the Personalisation of content
AI = higher user involvement + lower search time
VIDEO MARKETING: live videos, behind the scene glimpses, Video
SEO, 360-degree content
SOCIAL MEDIA APPS such as Instagram, and Facebook, to send
personalized messages and reminders - improve user experience
VISUAL SEARCH: take a photo of a Business card to save phone no
Book to get reviews about it Landmark to find location & route
VOICE SEARCHES can be used to be found by devices like Alexa and
Google Home on specific audio keywords. e.g., Can order a Dominoes
via Alexa
INFLUENCER MARKETING: choosing the right ambassador (common
product user/celebrity), using an effective #hashtag
Examples of successful Digimark campaigns
PAPERBOAT
#Floataboat - To build brand love
Make a paper boat, share it on social
media with #, and the paper boat will
donate Rs.20 for a child's education.
In alignment with the purpose of
drink - to bring back childhood
memories.
PARLE-G
G for Genius facts - Brand recall Sharing rare and interesting facts
about India invoking patriotism
Parle G's audience - Indians
Brand identity - Rich in heritage, innatelyIndian
OTHER IMPORTANT
CONCEPTS
Marketing Myopia :
Marketing Myopia is the lack of vision on the part of companies,
particularly in failing to spot customers' 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 productspecific terms.
Marketing Myopia is the short-sighted look of the managers in
wrongly identifying the category and goals of the company, not
looking at the whole industry of the product neglecting the fields of
opportunities in their area of industry, and not listening to the
customer's real needs.
Marketing Myopia is a short-sighted and inward-looking approach to
marketing that focuses on the needs of the firm instead of defining
the firm and its products in terms of the customers' needs and wants.
Such self-centered firms fail to see and adjust to the rapid changes in
their markets and, despite their previous eminence, falter, fall, and
disappear. This concept was discussed in an article (titled 'Marketing
Myopia,' in the July-August 1960 issue of Harvard Business Review) by
Harvard Business School emeritus professor of marketing - Theodore
Levitt(1925-), who suggests that firms get trapped in this bind
because they omit to ask the vital question, "What business are we
in?"
Marketing Myopia Example:
Kodak
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
storytelling 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.
Postal Services
Why wasn't it named communication services and seen from a
broader perspective? It was till the late nineties that postal services
and the public PCO booths were widely used in India. But after the
introduction of the Internet and Mobile phones, postal services
everywhere faced major setbacks, and so did the public telephone
booths. The downfall of Government postal services can be very well
understood as an outcome of in-adaptability and a very passive
marketing strategy. In spite of a well-established network and an
immense penetration even to the remote areas, the lack of foresense and proactive response made the postal services see a
downfall.
Moreover, the written form of conversations is sometimes unable to
convey the right emotions and therefore was not convenient for
many people. The ease of sending a message, the speed, the cost
incurred, and the convenience of doing all these outdid the age-old
and reform-less postal service.
No wonder the late reactions to get into the railway ticket booking,
banking, and facilitating other government policies became
deliverable of the postal services. Yet the sector has been facing
losses in recent years.
Customer Relationship Management :
It is a process or methodology used to learn more about customers'
needs and behaviours in order to develop stronger relationships with
them. CRM helps businesses use technology and human resources to
gain insight into the behaviour of customers and the value of those
customers.
Main aim: customer retention and customer satisfaction
We have to make a list of the customers, these serve as the target
lists. The strategy should be:
Save money by not marketing to those who are less likely to
respond.
Make money by making relevant offers to those who need, or
want, or can afford our products.
We build relationships with our best customers, resulting in
higher loyalty, retention, referral, spending rate, and profits.
According to industry view, CRM consists of:
Helping an enterprise to enable its marketing departments to
identify and target their best customers, manage marketing
campaigns and generate quality leads for the sales team.
Assisting the organization to improve telesales, account, and
sales management by optimizing information shared by multiple
employees and streamlining existing processes (for example,
taking orders using mobile devices).
Allowing the formation of individualized relationships with
customers, with the aim of improving customer satisfaction and
maximizing profits; identifying the most profitable customers, and
providing them the highest level of service.
Providing employees with the information and processes
necessary to know their customers understand and identify
customer needs, and effectively build relationships between the
company, its customer base, and distribution partners. The main
aim of CRM is customer retention.
Customer retention efforts involve considerations such as the
following:
Customer valuation - describes how to value customers and
categorize them according to their financial and strategic value so
that companies can decide where to invest for deeper relationships
and which relationships need to be served differently or even
terminated.
Customer retention measurement - This is simply the percentage of
customers at the beginning of the year that is still customers by the
end of the year. In accordance with this statistic, an increase in
retention rate from 80% to 90% is associated with a doubling of the
average life of a customer relationship from 5 to 10 years. This ratio
can be used to make comparisons between products, between
market segments, and over time.
Determine reasons for defection - Look for the root causes, not mere
symptoms. This involves probing for details when talking to former
customers. Other techniques include the analysis of customers'
complaints and competitive benchmarking.
Develop and implement a corrective plan - This could involve
actions to improve employee practices, using benchmarking to
determine best corrective practices, visible endorsement of top
management, adjustments to the company's reward and recognition
systems, and the use of "recovery teams" to eliminate the causes of
defections.
Marketing to the bottom of Pyramid :
What is the Bottom of the Pyramid:
The bottom of the pyramid is the largest, but the poorest socioeconomic group. In global terms, this is the 3 billion people who live
on less than US$2.50 per day. Marketing to the Bottom of the
Pyramid presents some unique challenges which cannot be
conquered using the conventional marketing approach.
What should be different in the marketing approach towards BoP?
The 4Ps of Marketing Mix needs to be replaced by 4As - Affordability,
Awareness, Access, and Availability. The distribution network should
be expanded to involve the BoP in the process rather than just as a
medium to serve them.
Value creation rather than value extraction should be the focus of
companies looking for a sustainable presence in the BoP market.
Information technology can have applications such as tele-education,
telemedicine, micro banking, and agricultural extension services in
BoP.
Retailing:
Retailing is a distribution channel
function where one organization
buys products from supplying firms
or
manufactures
the
product
themselves and then sells these
directly to consumers. A retailer is a
reseller (i.e., obtains the product
from one party in order to sell to
another) from which a consumer
purchases products.
Retail Marketing: It is the range of activities undertaken by a retailer
to promote awareness and sales of the company. This is different
from other types of marketing because of the components of the
retail trade, such as selling finished goods in small quantities to the
consumer or end-user, usually from a fixed location. Retail marketing
makes use of the common principles of the marketing mix, such as
product, price, place, and promotion.
Top Retailers across the world as of 2013: Wal-Mart (number of stores:
4,570), Kroger (3,538), Target (1,778), Costco (435), The Home Depot
(1,965), Walgreen (7821).
Classification of Retailers: Retailers can be classified on the basis of
the following 6 parameters
Marketing Mix for Retailing:
The 4 Ps (Product, Price, Place, and Promotion) of marketing get
further expanded for retail marketing. The following diagram depicts
the additional criteria that come into the picture for retailers. Aspects
of "place" are extended to include "shelf space" and "store layout",
and emphasis is given to making the overall experience of the
customer worthwhile by incorporating elements of customer service.
Major types of retail outlets: The following are the formats in which a
retailer may operate. In a number of cases, retailers operate in more
than one format
Mom-and-Pop: Represent the small, individually owned and
operated retail outlet. In many cases, these are family-run businesses
catering to the local community, often with a high level of service but
a relatively small product selection.
Mass Discounters: These retailers can be either general or specialty
merchandisers, but either way, their main focus is on offering
discount pricing. Compared to department stores, mass discounters
offer fewer services and lower quality products.
Warehouse Stores: This is a form of mass discounter that often
provides even lower prices than traditional mass discounters. In
addition, they often require buyers to make purchases in quantities
that are greater than what can be purchased at mass discount stores.
Category Killers: Many major retail chains have taken what were
previously narrowly focused, small specialty store concepts and have
expanded them to create large specialty stores. These so-called
"category killers" have been found in such specialty areas as
electronic (e.g., Best Buy), office supplies (e.g., Staples), and sporting
goods (e.g., Sports Authority).
Department Stores: These retailers are general merchandisers
offering mid-to-high quality products and a strong level of services,
though in most cases, these retailers would not fall into the fullservice category. While department stores are classified as general
merchandisers, some carry a more selective product line.
For instance, while Sears carries a wide range of products from
hardware to cosmetics, Nordstrom focuses their products on clothing
and personal care products.
Boutique: This retail format is best represented by a small store
carrying very specialized and often high-end merchandise. In many
cases, a boutique is a full-service retailer following a full-pricing
strategy.
Catalog Retailers: Retailers such as Lands' End and LL Bean have
built their businesses by having customers place orders after seeing
products that appear in a mailed catalog. Orders are then delivered
by a third-party shipper.
e-tailers: These retailers offer shopping convenience, including being
open for business all day, every day. Electronic retailers or e-tailers
also have the ability to offer a wide selection of products since all they
really need in order to attract orders is a picture and description of
the product.
Franchise: Franchise is a form of a contractual channel in which one
party, the franchisor, controls the business activities of another party,
the franchisee. Under these arrangements, an eligible franchisee
agrees to pay for the right to use the franchisor's business methods
and other important business aspects, such as the franchise name.
For instance, McDonald's is a well-known franchisor that allows
individuals to use McDonald's name and methods to deliver food to
consumers.
Convenience Store: As the name implies, these general merchandise
retailers cater to offering customers an easy purchase experience.
Convenience is offered in many ways, including through easily
accessible store locations, small store size that allows for quick
shopping, and fast checkout.
Vending: Within this category are automated methods for allowing
consumers to make purchases and quickly acquire products. While
most consumers are well aware of vending machines allowing
customers to purchase smaller items, such as beverages and snack
food, newer devices are entering the market containing more
expensive and bulkier products.
FRAMING
EFFECTS
THINGS BRANDS DON’T WANT YOU TO KNOW!
Framing effect is a cognitive bias
in which the brain makes
decisions based on the way
information is presented to it.
Marketers make use of this effect
to
influence
the
purchase
decisions of their audience.
Which one would you choose?
Frame One
GAIN
Frame Two
LOSS
Frame Three
STATISTICS
Frame Four
EMOTIONS
Frame 1 : GAIN
The Gain frame highlights all
the potential benefits that a
customer can get while using
a particular product.
Frame 3 : STATISTICS
A Statistical frame can support
your brand’s argument in the
most convincing manner and
builds customer trust.
Frame 2 : LOSS
The Loss frame such as scarcity
or Fear of Missing Out prompts
the customers to purchase a
brand’s products.
Frame 4 : EMOTIONS
An Emotional frame is used by
the brands to stress upon the
importance of how their
product
can
make
its
customers feel differently.
FEW
DEFINITIONS
Product Line
Similar kinds of products having different colors, sizes, tastes, etc. are
sold under one brand name.
Eg - Oreo’s Chocolate, Normal, Orange, etc. flavors and its different
weights.
Product Line Length
It is defined as the number of products in a single product line.
E.g. - Oreo has a product length of 3.
Product Line Width
It is defined as the number of similar products parallel to each other.
You may have two or more brands under the biscuits or beverage
category.
E.g.- Coca-Cola has a Minutemaid line, Coke line, Sprite, and
Powerade. Each of these lines has different variants & SKUs which
makes product length.
Product Mix Width
It is a sum total of all different kinds of product lines under all the
categories.
E.g., If we see Unilever's product mix, we will find various categories
such as skin soap, detergent, deodorant, ice cream, shampoo, etc.
The Sum total of the entire range makes the width.
Product Mix Format
SKU: Stock Keeping Unit, means the volume or weight of a product.
E.g. Maggi 70gm SKU1 ,280gm SKU2, 420gm SKU3, etc.
Product Mix Example
CANNIBALIZATION
AMONG BRANDS
Cannibalization
It is a process of creating different sub-brands of the parent brand so
that the parent brand can grow its customer base by targeting large
numbers of customers. Most of the time, after launching a new
product, the new product “eats" up the sales and demand for an old
popular product.
Abhi toh thode time pehle ek iPhone launch
hua tha, ab firse? Chalo, will wait and then
buy the latest one!
Since 2007, Apple has launched a new iPhone
every year. What happens to the sales of the
existing models? They reduce. But why do the
companies do this then?
When Apple invents a new iPhone, it doesn't shy
away from releasing it into the market. It ensures
that their newer version is available in all their
chain stores. It causes the sales of their older
iPhones to drop significantly. However, Apple
makes up for this loss by capturing its
competitors'
current
customers,
hence
increasing its customer base.
Digestive introduced a low-fat
version of its brand. It knows
some of its sales will be
cannibalized from the original
brand, but it hopes to expand its
market share by appealing to
health-conscious consumers who
otherwise would buy a different
brand.
Too much?
The "Starbucks on every corner” is
suffering of cannibalization of
sales through overexpansion. It
had
become
difficult
for
Starbucks to maintain its status
as a premium brand because it
was“everywhere”.
Coca-Cola launched different flavors in
the hope of acquiring a bigger market
share not caring about the initial
cannibalization. Over time, Coca-Cola
realized that loyal customers still
preferred the original formula, which
prompted them to
react by revising their strategy
to
market the original formula as the
“ClassicCoke”
and the rest of
the
flavors as either seasonal or festive
beverages
TYPICAL
JARGONS
Ambush Marketing
Cultural Marketing
Aided recall
Customer Loyalty
Aspirational Brand
Digital Marketing
Brand Rituals
Direct Marketing
Business to Business (B2B)
Evangelism
Business to Consumer (B2C)
Experiential Marketing
Buyer Persona
Franchise
Cause Marketing
Guerilla Marketing
Call to Action
Green Marketing
Co-branding
Inbound Marketing
Commodity Goods
Internal Marketing
Comparative Advertising
Lead
Content Marketing
Lifetime Customer Value
Corporate Identity
Luxury Goods
Margin
Social Media Marketing
Marketing Myopia
SWOT Analysis
Mobile Marketing
Search Engine Marketing (SEM)
Mystery Marketing
Search Engine Optimization (SEO)
Mystery Shopper
Sensory Branding
Niche Market/Business
Surrogate branding
Outbound Marketing
Traditional Marketing
Phygital Marketing
Transactional Marketing
Portfolio
Viral Marketing
Public Relations
Word of Mouth
Research and Development
House of Brands
Referral
Branded House
Relationship Marketing
Endorsed Brands
Sales Funnel
Sub-Brand
GO-TO-MARKETING(GTM)
EXAMPLES
Nivea FaceCream for men
STP Analysis
4P Analysis
THANK
YOU
Content Team:
Content Team:
Ishika Goyal
Riti Jaiswal
Manas Mishra
Aditi Agarwal
Akshitha
Duppala Sree Harsha
Sonali
Soham