MBA204 Final Book

Yashwantrao MBA204
Chavan
Maharashtra
kmZJJm KamoKar Open University
MARKETING MANAGEMENT
Unit 1 : Introduction to Marketing Management 1

Unit 2 : Developing Marketing Strategies and Plans 36
Unit 3 : Capturing Customer Insights 50
Unit 4 : Connecting with Customers 72
Unit 5 : Building Strong Brands 85
Unit 6 : Shaping the Market Offerings 98
Unit 7 : Delivering Value 116
Unit 8 : Communicatig Value 136
Unit 9 : Creating Long Term Growth 156
Unit 10 : Rural Marketing 163
Unit 11 : Technology and Marketing 181
Unit 12 : Marketing Ethics 194
Yashawantrao Chavan Maharashtra Open University
Vice-Chancellor : Dr. M. M. Salunkhe
Director (I/C), School of Commerce & Management : Dr. Prakash Deshmukh
NATIONALADVISORY BOARD
Dr. Pandit Palande Prof. Devanath Tirupati, Dr. Surendra Patole

Hon. Vice Chancellor Dean Academics, Assistant Professor,
Dr. B. R. Ambedkar University Indian Institute of Management School of Commerce &
Muaaffarpur, Bihar (IIM-Bangalore) Bangalore. Management,
Yashwantrao Chavan Maharashtra
Prof. Sudhir .K.Jain Prof. Karuna Jain, Open University, Nashik
Vice Chancellor , Director,
Shri Mata Vaishno Devi University N I T I E, Vihar Lake, Dr. Latika Ajitkumar Ajbani
(SMVDU) Katra Mumbai - 400087 Assistant Professor,
Jammu and Kashmir. School of Commerce &
Management,
Prof. Vinay .K.Nangia, D. Prakash Deshmukh Yashwantrao Chavan Maharashtra
Ex- Head, Director (I/C), School of Commerce Open University, Nashik
Department of Business Studies, & ManagementYashwantrao
Indian Institute of Technology, (IIT- Chavan Maharashtra Open
Roorkee) Roorkee. University, Nashik
Author & Editor

Dr. Vinay Sharma
Associate Professor
Department of Management Studies,
Indian Institute of Technology, (IIT- Roorkee)
Roorkee.
Instructional Technology Editing & Programme Co-ordinator

Dr. Latika Ajitkumar Ajbani
Assistant Professor,
School of Commerce & Management, Yashwantrao Chavan
Maharashtra Open University, Nashik
Production
Shri. Anand Yadav
Manager, Print Production Centre Y. C. M. Open University, Nashik- 422 222
Copyright Yashwantrao Chavan Maharashtra Open University, Nashik.

(First edition developed under DEC development grant)
First Publication : Sept. 2015
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Cover Print :
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Introduction to
UNIT 1 INTRODUCTION TO Marketing Management
MARKETING MANAGEMENT
NOTES
Structure
1.0 Introduction
1.1 Unit Objectives
1.2 Marketing Management
1.3 Marketing is Commitment
1.4 Definition of Marketing
1.5 Marketing Planning and Process
1.6 Association of Needs and Offerings
1.7 Selling and Marketing
1.8 A complete Scenario through a Marketers Imagination
1.9 Consumer Behaviour and Buying Decision Process
1.10 Marketing Mix
1.11 Marketing Research
1.12 Customer Relationship Management
1.13 Sales
1.14 Production to production of technology to production of other goods
1.15 Marketing Mix with a comprehensive perspective
1.16 Holisitic Marketing Dimensions
1.17 Marketing Environment
1.18 Summary
1.19 Key Terms
1.20 Question & Exercises
1.21 Further Reading and References
1.0 Introduction
A true marketer at the onset acknowledges all the human beings as part of a
market and then looks at products and services as a spectrum of offerings analyzing a
foreseen customers desire for those offerings on the basis of value criterion the cus-
tomer possesses relatively matching his value proposition with same on the basis of
value criterion he possesses. Finally its a matter of values which derive value out of a
market transaction.
This unit is the most important unit and gives a wide view of perspective and
definition of marketing management. Readers must read this slowly building up a
spectrum in their minds. Marketing Management : 1
Introduction to This unit focuses on bringing all the elements of marketing together and then
Marketing Management unfolding it in the subsequent units.
Few examples are taken in a story form which also will keep unfolding during the
course and will be discussed all through to sustain continuity and build up the case.
NOTES
1.1 Unit Objectives

After reading this unit you should be able to :
1. Define Marketing
2. Describe Marketing Planning and Process
3. Explain Marketing Mix
4. Explain concept of Customer Relationship Management and Holistic Mar-
keting Dimensions.
1.2 Marketing Management

Must be seen and understood with an all encompassing perspective wherein
disciples of knowledge should have in a mind their own specific role as marketers and
market developers in times to come.
As soon as one finds himself well within scenario and wishes to read so as to
instigate his thoughts to drive marketing plans and programmes the learner will almost
automatically be thinking in correlative terms wherein he would definitely try to analyze
say, need for a product but would map it across one and all.
A true marketer at the onset acknowledges all the human beings as part of a
market and then looks at products and services as a spectrum of offerings analyzing a
foreseen customers desire for those offerings on the basis of value criterion the customer
possesses relatively matching his value proposition with same on the basis of value
criterion he possesses. Finally its a matter of values which derive value out of a market
transaction.
1.3 Marketing is Commitment
Marketing is Commitment and marketing management teaches us about how to

live with commitment. Expressing marketing in terms of commitment has specific
reasons which would become explicit throughout the text as it would unfold but to
enumerate some of those we may start with analyzing a marketers perspective through
the following story based on my own experience as a marketer.
During one of my earliest assignments in India, wherein, I was working with
organizations and institutions responsible for foreseeing developing and establishing
markets for the product produced by rural women spread over a very large geographical
Marketing Management : 2 area, having diversified skill sets, producing many-many different products with no
quality benchmarks, priced as per this desire and quantities as decided by them as per Introduction to
their own convenient time schedule (no regular supplies). Marketing Management
Can you imagine how perplexed a marketer like me in such a situation would feel
when he has a large number of NOTES
(a) Product families
(b) In very small quantities
(c) With no assurance of regular supply
(d) Priced inappropriately ( without any market considerations) to be acquired Check Your Progress
from spread over producers? Marketing is Commitment
and marketing
(e) How would he find customers for such products?
management teaches us
(f) How should he position the product?
about how to live with
(g) What kind of margins should be kept? commitment. Elaborate
(h) Would the next order for similar product fetch the same quality or improved the above statement, with
quality? examples from your daily
(i) Would the product which is sold be associated with any kind of assurance? lives.
(j) And the most challenging aspect in that if any of the products procured or
supplied have to be returned back unsold, next production gets hampered
because sale proceeds of one/few products would propel sale proceeds of
the subsequent products.
A very complicated situation indeed which comprises of all ingredients of
marketing and complete syllabus of marketing management.
1.4 Definition Of Marketing

Lets visit the definition of marketing by American Marketing Association web
source here and then analyze the story above.
American Marketing Association 2007 definition of marketing says Marketing
is the activity, set of institutions and process of creating, communicating, delivering
and exchanging offerings that have value for customers, clients, partners and society at
large.
If we try and analyze this definition with the view point of making it happen or
realizing this we would find out that this only can done through intensity of efforts i.e.
commitment, hence marketing may be termed as commitment.
Now before presenting a more comprehensive and intense account of marketing
let me first elaborate on the above story to justify not only the American Marketing
Association definition but also the associated or derived context of commitment.
Above story is related to a Government of India scheme which was supposed to
work for the development of the women and children in rural area and the area I am
referring to is one of the largest states of India.
Marketing Management : 3
MBA109
Introduction to Women were enrolled as groups under this scheme and trained to become small
Marketing Management entrepreneurs. By virtue of their training they used to produce several things like:
achaars (pickles), murabbas, chickan saris, carpets etc. amounting to the levels of more
than 300 items.
NOTES
Because of the fact that the training provided had customization associated, they
had different abilities, raw material chosen by them was their own choice, they had
different design and taste, orientation they were producing differentiated products. The
number of trained women was in thousands, so here in the situation where you had a
large cumulative produce without any uniformity and consistency. Therefore if you
imagine the complete marketing process and have to generate a marketing plan the
questions raised are
Check Your Progress What are you marketing?
Answer all the questions What are the segments of the market you are addressing?
raised at the time of How would you segment the market?
developing a marketing Which segment would you target and why?
plan with the help of your
How would you position these products?
experience before
proceeding for further What are the components of marketing mix which you foresee in this case?
reading. What would be the competition for these products?
How would you analyze future growth?
How would you imagine the life cycle of these products?
Are there other factors to be understood?
What about Buyers behaviour models which you wish to see and analyze viz a
viz the situation?
Do you have to understand the complete supply chain system for these products
and then steer it with marketing understanding?
How would you create, communicate, deliver and exchange value with the
customer as the definition requires?
And the answer to the previous question will generate the preceding questions in
its entirety will generate a flow to enable us in understanding marketing management.
1.4.1 Marketing is a Committed reflex of Values
Also in the end we would realize that realizing this process and requirement of
the definition we would understand another definition would seem to have emerged
i.e.
Marketing is a committed reflex of values expressed through the transactions
to bring prosperity and sustainability to the human race.
Why would we realize these definitions subsequently is because of the reasons
that creating, communicating, delivering and exchanging value would require
Devotion
Marketing Management : 4 Dedication
Consistency Introduction to
Credibility Marketing Management
Integrity
Clarity NOTES
Learning
Team spirit
Leadership
All of which converges into commitment largely (can you identify a single
character around you with these traits)?
Whereas commitment gets reflected through an established value system propelling
values and deriving value which is the definitional objective to be achieved through
the entire marketing process.
So the preceding elaboration through a practical situation not only elaborates on
what marketing conceptually is but also puts forth various aspects associated with
marketing.
We have briefly gone through the definition of marketing span and scope of
marketing and especially value and commitment oriented perspective of marketing.
Further elaboration requires the following fundamentals associated with marketing
to be explicitly understood:
(a) Markets
(b) Basis of markets being termed as markets
(c) Roots of markets and marketing embedded in other subject areas
(d) What are the factors surrounding or encompassing a market and marketing
hence forth.
To initiate this discussion let me deliberate on few scenarios and structurally put
forth a discussion on marketing process.
Look around yourself. You find a combination of
Check Your Progress
(a) People How far do you agree with
(b) Things the definition?
(c) Places (Marketing is a
(d) Structures and committed reflex of
values) Can you put
(e) Actions and activities
necessary factors
For example we may start with recalling most of things since we may remember, associated with this
like do you recall when you were a little child and followed your mother around the definition so as to create a
house who had all the worries associated with household chores for example picture for your self to
(i) What to serve the family members and especially you which gives you proceed further?
nutrition
(ii) What kinds of clothes would you wear and for how long? Marketing Management : 5
Introduction to (iii) From where to procure those clothes and how to clean them?
Marketing Management (iv) All the goods in the house kitchen appliances, utensils some of which are
still there.
NOTES (v) How to make you learn things?

And then when head of the family would come back home from his daily activities
in the evening you would go out holding his finger to the market to buy your favourite
toffees and toys and how would you choose those? What was the method you used to
reach to the best of the choices with the help of your elders who would always have
price considerations in mind along with the fact that the things you choose are good for
you and your health.
What was the role that the shopkeeper used to play in helping you to buy the best
buy?
When you became little older the school you were sent to and the books you got.
The kind of influence you took from your friends.
The birthdays you celebrated and attended . Did you even notice the discussion
held in your future requirements and the life you should achieve in future?
Did those discussion include the education options in your city, state, country
and more over the kind of savings required for getting such an education?
Along with such discussions followed the discussions on sometimes renovating
the house or purchasing a house which would normally get associated with should or
should not because of some other requirements for the money to be spent.
By the time you reached to the levels of tertiary education you would have been
introduced and were more or less involved in what your family members did/were
doing to earn the living.
The limitation associated with the work financially and the gains associated with
such living socially.
Dear students of marketing I am referring to basics like:
Needs and desires
Options
Associated buying capacity
Planning
Thought process associated with materializing desires
Check Your Progress
Influence on shaping of such desires
Enumerate the basics of
marketing. Now in marketing terms if you translate these basics one gets to know or interprets
those as:
Needs : Fundamental requirements of human beings associated with their lives
and existence which have an association with food (hunger), clothing, shelter,
knowledge, entertainment, work, social recognition, acceptance, health, and so on.
Further translated these are fulfilled through various products and services or a Introduction to
mix of both. Marketing Management
Examples
Options : Alternatives or substitutes available and which may be acquired for NOTES
fulfilling these needs choices made. Sometimes people fulfil needs according to priorities
and allocate resources accordingly though some needs may not be left alone but have
to be minimized. For example health care may require extra allocation of resources
financial as well as time and some other needs may have to be suppressed. This gives
birth to competition which can be seen in terms of share of pocket of customers.
Buying capacity : This is an associated factor which not only limits the allocation
but also compels it to be expanded.
It has an association with desires as well as capability as detailed and described
by Amartya Sen (Sen, 2000) . In fact capability approach can be an intense and core
aspect to become the center of the customer related fundamentals and a marketers
effort to match those.
Planning : Its an imbibed characteristic amongst human beings and also is a
derivative of above stated fundamentals, wherein all of us try to fit in the components
of what do wish for and how should we fulfil those wishes.
This has an association with our demographics; age, gender, race, where we live
etc. and also with how we grow up sometimes even can be visualized with genetics
perspective and here comes in behavioural aspects and also the psycho graphical aspects
of human beings.
Culture is also very important. All these things are associated with the kind of
influence we take i.e. our influences.
One of the important factors is our family state and situation.
Another is the general conditions in the societies and countries we belong to.
1.4.2 Marketers Perspective
Now look at the above stated basics or fundamentals with a marketers perspective.
A marketer has to look at the needs of the people by accepting them as his
customers.
A marketer has to develop (design) and produce products to fulfil the needs of his
customers also considering their buying capacity so as to price the products rightly but Check Your Progress
simultaneously look at his
Explain the basics of
Costs marketing with the
Alternatives and substitutes the customer has i.e. his direct competitors for perspective of a Marketer
example: transportation or the need for mobility may have fulfilment through
own car, taxi service, 2 wheeler, public transport and soon
A customers desires associated with a particular offering for example a house
may be his dream Marketing Management : 7
Introduction to Choices a customer might make because of reasons not only associated with
Marketing Management buying capacity where his family stage, age, gender etc. also plays a role but
also his influences and all this constitutes a marketers thinking in terms of
Economics
NOTES
Sociology
Psychology
Customers Behaviour
Competitors Analysis
Analysis of the environment, his environment as well the customers
environment.
Further to reach to the conclusion that where must start he analyses his
Resources
Categorises every bit of his understanding by segmenting his foreseen market
(his offering in lieu with his customers)
Target a segment
Position his products
Expresses this analysis in terms of McCarthys 4Ps i.e.product, price, place and
promotion
Everything a marketer analyses bears his understanding developed through
continuous market research at every step which helps him further strategizing and also
in sharpening his combination of 4Ps.
1.5 Marketing Planning and Process

Lets look back at the definitions we have gone through in the beginning and
analyze how a marketer works. I will be using marketing terminology in the following
description which I would explain thoroughly. You remember the example of a perplexed
marketer thats me who was supposed to be generally marketing for a whole lot of
product families (You will get to learn the details of a Product Family in later Units)
Now what should have I done?
First of all a marketer largely when has a production process responsible for
putting forth a product in place foresees a customer(s).
I followed few steps which I try to put up in a sequential and logically associated
manner.
(a) I developed an inventory of available products and also analyzed the potential
those products to be produced in future.
(b) Listed all the purchasers with their details along with documenting their past
production record.
Marketing Management : 8 (c) Now as I had a large list of many products with me, I tried to categorize them
according to their class (You will get to learn the details of a Product Family Introduction to
in later Units) along with foreseeing customers who could be wanting a Marketing Management
particular product from a class or many product from many classes
(d) As even the similar products were being produced at highly dispersed
NOTES
locations and were having different quality, there was a question of
categorizing customers accordingly as well. Therefore,
(e) Before going ahead I conducted a customer survey or market survey as a
pact of a marketing research exercise ,wherein I interviewed customers of
similar products i.e. my potential customers as well as non-customers in an
unstructured as well as structured manner to understand their perspective
about a possible combination of 4Ps I may offer.
(f) This research enabled me to segment the market for my products. But as I
mentioned quality was highly disparate and production was also inconsistent.
I had to be very careful while targeting a segment so I targeted multiple
segments parallelly.
(g) But a major question is how to position such products.
The answer is primarily to position them with their generic context for
example you say you have an array of carpets. You must have visited a saree
shop with huge variety as they say.
(h) Subsequently a combination of 4Ps emerged which was again followed by
marketing research to keep on developing it and furthering it in right direction.
1.5.1 Process Across the Definition of Marketing
Now lets try to put the process I followed across the definitions of marketing.
As 2007 American Marketing Association definition says Marketing is the Check Your Progress
activity, set of institutions and processes for creating, communicating, delivering and Explain Marketing
exchanging offerings that have value for customers, clients, partners and society at Planning and Process
large.
(i) I tried to categorise the products as best as possible and because quality is
relative. Conceptually I tried to project and match my categorization with
the multiple targets I chose.
Also I tried to communicate with producers assuring upgradation and consistency
in products with perspective of quality and supply.
Further effort was made to simultaneously establishing and enhancing sales and Check Your Progress
distribution of the products along with efficiently structuring an Integrated Marketing Observe the definition of
Communication exercise including all the possible components of IMC such as: marketing and enumerate
Advertising the components of the
Sales promotion same
Public relations and publicity
Events and experiences
Direct and indirect marketing Marketing Management : 9
Introduction to Word of mouth marketing
Marketing Management Personal Selling
This communication mix also had considerations of cost which had to be absorbed
NOTES in the price itself.
(3) Effective distribution channels were further established and this we refer to as
channel management
(4) The objective as we tend to understand is generating value.
1.5.2 Value as a Key and Perceived Factor
Now lets focus on the concept of value as it is the objective of the whole process
and revisit another definition we discussed earlier which says Marketing is a committed
reflex of values expressed through the transactions to bring prosperity and sustainability
to human race.
Furthering this and associating it with our objective of deriving value we
understand that it is achieved when a reflex of values takes place. I will further expand
the concept of reflex of values in other sections as well.
But just to brief you here that if marketers understand the customer would
experience value in the offering by the marketers is because of the aspect that at some
stage values would be working and would match in the terms of value derived.
Further establishing the perspective of marketing planning and process lets refer
to few examples:
Gyanesh Pandey
Narayan Hrudayalaya
Himachal Tourism
Private Universities
Offerings
Check Your Progress
Bring in some live Structurally associating all the needs with offerings we get:
examples to establish the 1.6.1 Goods
defnition given and Offerings with physical Attributes generally termed as Goods which may range
justify those examples from food & clothes to books and vehicles to communication equipment etc.
with context to reference
of the definition.
1.6.2 Services
These do not hold physical attributes and are intangibly provided but hold value
and are felt with regards to the quality. Services can be standardized but have an intense
relationship with intensity and integrity of the provider for example a doctor may well
treat you but may not treat you well.
1.6.3 Experiences
Whenever you find yourself saying that it was an experience good or bad is relative.
For example the train journey in Rajasthan called Palace On Wheels where you feel
Marketing Management : 10 royal as treated and pass through historical places and scenic beauty overwhelm you.
Another example is, if someone visits Elephant Orphanage in Sri Lanka. You will Introduction to
find hundreds of wild tuskers passing through in front of you playful though disciplined Marketing Management
and all the humans would stand still as there is no other option. But the sight in
mesmerizing especially when the elephants bath and play in the sea.
NOTES
1.6.4 Events
India, recently hosted mega sporting event the Common Wealth Games formula1
racing event in National Capital Region. Can examinations such as competitive
examinations be termed as events?
1.6.5 Places
Check Your Progress
Recently you must have seen/viewed Gujarat being marketed through an Explain the concept of
advertisement showing Indian Cinemas megastar Amitabh Bacchan telling various Offerings in terms of
features of Gujarat as a tourism destination. Goods, Services,
1.6.6. Information and Ideas Experiences, Events,
Places, Information and
Price information, weather information, statistical information and ideas like
Ideas,
children teaching adults or ideas like making children ambidextrous in literal sense or
ideas like e-books are marketable and well be translated in value terms as well. Have
you heard of Chotu Kool the small refrigerator by Godrej & Boyce. This a product
based on an idea, which has immense marketability.
Properties, persons, organizations, courses and many things have value to offer
and may genuinely be termed as offerings and the most important part is that each
offering has an association with some human need at the core and does hold an alternative
sometimes substitutes also.
An important question? (Answer to be found in subsequent units).
Where do you keep congregations like Kumbh Mela as an offering is concerned?
1.7 Selling and Marketing
Did I mention sales, personal Selling or selling somewhere in preceding

discussions?
Or did you find anything in last so many pages where you realized that it should
have been termed or being seen with the perspective of being termed as selling.
Well this has to be fundamentally understood at this stage only, that marketing
Check Your Progress
though is an encompassing word and we have seen in definitions and description the
vast span of marketing but selling though seems simple by nature is embedded in Explain Selling in
marketing at many stages especially if seen with its functional responsibility selling comparison and
(the sales force) becomes one of the modes of forecasting, future product changes, association with
customer relations, an organisations image, the trust an organization enjoys amongst Marketing
its customers, capitalizing on opportunities, corporate branding and so on. For example,
if you analyze example like LIC of India, Eureka Forbes, Amway, Oriflame, Scholastic Marketing Management : 11
Introduction to Books, College books by publishers like Lengage, Sage, and many others. Have you
Marketing Management seen carpets being sold door to door? What is your take on this? Is it more of selling or
marketing or equal or so intertwined that one cannot make a difference.
NOTES
1.8 A Complete Scenario Through Marketers Imagination
This is an effort to consolidate the discussion we have gone through till now.
1.8.1 Offerings to needs or Needs to offerings
Marketers initiate by thinking of need and then matching it with an offering or
vice versa as they might have an offering at hand and they reach a need for that offerings.
For example as a teacher (a marketer) I have an offering in terms of my knowledge and
I may address the need of students (a customer) for gaining knowledge.
1.8.2 Marketing Research
Check Your Progress Why and how well the needs and the offerings would meet and should meet?
Marketing research is also done at various other stages.
Develop a complete
scenario of the process of 1.8.3 Production
Marketing through a Though not directly responsible for this activity but understands and foresees the
marketer's perspective associated factors because he makes commitments and has to fulfil those commitments
through expected production.
Further, his future planning and forecasting is also associated with this aspect
intensely. I would deliberate in further sections that a marketers plan for expanding or
reducing product line and width or largely product mix is quite intensely associated
with his understanding of production and production lines.
1.8.4 Segmenting targeting and positioning
Marketers do this exercise however complex the situation is i.e. even if a segment
includes large number of people from various demographics but marketers do find
some consistency in their behaviour or vice versa to justifiably meet the need and
offering match criterion. Then they target a particular segment and position the product
or products amongst targeted customers. For example it became imperative for me to
market the products I mentioned to multiple targets simultaneously but many products
because of being associated with a particular Socio economic class in a family situation
of lets say a family of four were targeted at them. (I will disclose the SEC and family
in the end of this section).
1.9 Consumer Behaviour and Buying Decision Process
Our marketer must be beware of :

(a) How behaviour in general gets formed
(b) How behaviour is expressed
(c) What are the factors and steps involved in a customers buying decision
process, as in how a customer starts looking for products and what comes in Introduction to
between his final decision? Marketing Management
Because of the reason that as we understood in previous point no. 4 has to position
product and for this they have to generate proper Integrated Communication. NOTES
Now I will elaborate on my example further, as I said I had products ranging from
woollen carpets to apparels (hand woven), handicrafts, eatables (pickles, jams etc) I
chose a target segment having characteristics of say a family having four members
with parents and two or more kids with lets say 5 or 6 years plus staying in urban areas
with an household income of 6-10 lakh rupees annually because of the reasons that:
(a) I had cost considerations and margins to be met which requires higher buying
capacity (more of this in pricing segment).
(b) Families in urban areas use carpets and wear hand woven apparels for their
decorative appeal and uniqueness.
(c) I wanted families having kids because this is the stage where families in
general have an attraction towards such products especially like carpets
because kids would not hamper the maintenance and mothers also can spare
time for maintaining such products.
(d) But as these families may not find time to produce their own handicrafts and
handmade homemade eatables like pickles and jams and are looking for
purity would appreciate these products.
These can be many other aspects and factors along with the above mentioned
which may add value to a marketers proposition and match values with values. Such
factors as I said would enable him to generate a specific Integrated Marketing
Communication to position the products.
I generated an integrated marketing communication based on a combination of
sales and advertising through first organizing exhibitions then generating customer
database and simultaneously positioning the products for their originality, purity and
the efforts put in to produce those.
SELL and TELL as you may call it.
1.10 Marketing Mix
Now the questions related to Product, Price, Promotion and Place have to be
addressed by the marketer. For example which we are pursuing there are questions
related to quality, design, features, packaging warranties and returns (other components
being product variety, Brand name, sizes, services etc.) as far as Product the P is
concerned.
1.10.1 `P the Product
I revealed earlier that the main component of the marketing challenge I had with
those products was that Marketing Management : 13
Introduction to Being produced by groups of women having different business orientation, profit
Marketing Management and profitability concerns, different training background and scattered in a very large
geographical area. These differences percolated into major forms i.e.
(i) Inconsistent supply of finished goods
NOTES
(ii) Inconsistent quality
Check Your Progress (iii) Disparate quality in goods produced by different groups
1. Explain Marketing Mix (iv) Difficulty of monitoring the production
2. Explain with examples (v) No communication amongst groups
'P' the Product, Place,
But if you may look positively at this situation from a marketers side/perspective
Price and Promotion.
you would realize that
(a) You have a huge volume ( no. of goods at hand)
(b) Product variety is high
(c) Quality has a range to accommodate many targets (SEC in this case) if
you like
(d) Design has a strong association with the background of the producers and
has regional impression
(e) Features one can categorize and crystallize
(f) Packaging can be worked upon.
The questions those would remain to be addressed were warranties and returns
where one has to take a call that if things do not work as positioned?
1.10.2 P the Price
As you may have realized by now that once you have set the target, have been
working upon this targets consumer behaviour/behavioural aspects and have been willing
to position the products with the matching of values perspective you very well have a
price in front of you because:
(a) Costs are evident and clear
(b) You understand the offering and the value proposition of the offering
(c) You have an idea of values of producers and customers
(d) You understand how much a customer would wish to pay in the light of
(i) elasticities and in elasticities of demand associated with the products offered.
(ii) Competition direct, indirect and share of pocket based
(e) You also understand about how much the producer wishes to charge for
looking at his understanding and perception of all the above mentioned
aspects.
1.10.3 `P the Place
`Place is one of the most important marketing mix. Place strategy is important
and it incorporates the distribution through which company provides its product and
services. The customer should get products or service where they want and place too
affects all other tools of marketing. Introduction to
Marketing Management
1.10.4 P the promotion
Positioning though has component which are not only related to creating an image/
picture in the minds of the customers but also associated with how that picture gets NOTES
established and sustains itself as a promise, which may further be interpreted in terms
of branding. But the big questions are how to convey, what to convey and who would
convey so as the process of desired positioning gets initiated and promotion gets into
being.
Promotion which has components ranging from sale force, advertising sales
promotion, public relations and direct marketing and is executed through actionable
steps which compositively is termed as Integrated Marketing Communication.
But as we see that the first thing is what is to be communicated? And the answer
is value and the subsequent question is how one justifies this value and the answer is
through expressing and communicating values.
As suggested in earlier sections also that values and commitment go hand in hand
here it is imperative to understand the most important resultant of values based
commitment is HOPE which is expressed through proposal and scope for HOPE.
For example:
Zindagi ke saath bhi Zindagi ke baad bhi , you remember LIC being suggestive
of its commitment.
Dar ke aagey Jeet Hai Mountain Dew
Kit Kat Break Banta Hai Kit Kat (Nestle)
Khushion Wali Maggi Maggi
Now referring back to the case we have been taking along I started organizing
exhibitions and events as I revealed earlier and started projecting the products with
regards to their handmade and effortful value expressing uniqueness in every single
product even of the same category. You see here you have to train your sales force to
associate and attach uniqueness, history and story of process attached with almost
every product at hand except for very small products which are not price sensitive and
could be sold in batches.
For example, when you have carpet at hand you express all the nitigrities and you
have pickles you suggest purity and preparation and when you have woollen Jackets
you mention effort and when you have saris you mention beauty and regional aesthetics
and again if you are selling glassware from Firozabad you mention brightness of glass
and brightness of life- for example I bought a bell made of glass and its sound was
music to my ears. I Started telling it to many and this is how word of mouth (one of
the major components of Integrated Marketing communication) spread and the bell
became one of the fastest selling goods in that particular exhibition cum sale.
This is an inevitable and a very natural aspect which has to be addressed to
physically reach the customer. Where and How are the key words.
Introduction to For example have you heard of boat hospitals/clinics on Brahmaputra river
Marketing Management providing health services to the people in remote areas. You must have heard of boat
departmental stores in back waters of Kerala.
NOTES You must have seen cycle salesmen.

On the other side you have flipkart using courier. You have many products and
organizations utilizing Indian Portal Services/post offices for distributing and selling
their products. Here it is very important to mention that P the place has and intense
relation with P the promotion which has deep linkage with P the price which is
derived from P the product which has a deep association or reflective association
with P the positioning.
For example, promotion and channels (place or distribution) can become intensely
complimentary to each other as in the case of ITC e-choupal or scholastic books where
channel promotes the products (please refer to their websites for details).

Now lets have a retrospective view of what we have discussed. The key
words are
(1) Segmentation
(2) Targeting
(3) Positioning
(4) Consumer behaviour
(5) Product
(6) Price
(7) Promotion
(8) Place
And if you revisit the story which I have gone through you would realize that
Marketing Research is such a key element that it is there before the process i.e. at the
earliest most stage where you were assessing needs and matching the offerings or having
the offerings and were matching the needs.
Then you had to segment the market and you wanted to list the attributes of
the foreseen customer. How would one do this? Through Marketing Research.
Then you wished to target and position,
Suggest product attributes like variety, design, quality, features etc.
Decide on price and assess competition
Promote i.e. sell and tell or tell and sell and
Distribute.
Marketing Management : 16 Now at every stage you have to ask questions as you have those in mind inevitably.
And to whom would you ask those questions? Off course your foreseen customer. Introduction to
This is Marketing Research. Marketing Management
How would you ask those questions? And analyze the data is the marketing research
process where you have to choose NOTES
(a) Research approach
(b) Research Design
(c) Sample Design
(d) Collection mode for Data
(e) Analysis tools
And so on.
Before initiating this you definitely look for any existing research i.e. secondary
data, because what you do is primary research.
1.12 Customer Relationship Management

It is inevitable that after such an elaborate procedure involving so much of
understanding, analysis, deliberations and actions one doesnt get involved with the
subject (here customer).
The involvement I am referring to has its roots in the intention to match values of
both sides which has a derivative in the value derived. Once this aspect is fundamentally
realized the relationship gets sustenance. The customer lives with the product proposition
and appreciates the intentions of the marketer (producer) providing strength (in the
form of brand recognition).
The marketer on the other hand enjoys
(a) Customer satisfaction
(b) Customer loyalty hence Check Your Progress
(c) Repeated purchases Explain the concept of
(d) Referrals Customer Relationship
Management.
(e) Influence on other customers
(f) General word of mouth appreciation hence
(g) Less cost of marketing (especially advertising) hence
(h) More benefits to the customer as
(1) Product innovation
(2) Longer distribution
(3) After sales benefits
(4) Commitment intensity from the channel partners as well further
(5) Strengthening the confidence of all the value chain members.
For example you name any product or service as MCDONALDs burgers, Bata Marketing Management : 17
Introduction to Naughty boy shoes, Titan watches, Amul milk and ice -creams, Hertz and Avis car
Marketing Management rentals, Malaysian Tourism, Dainik Jagran, ASICS shoes etc.
And you will appreciate customer relationship has evolved as discussed above.
NOTES But management of this relationship is the key factor and the basics have to be
attended i.e. never loose sight of the relevant point where values matched and value
emerged.
Keep strengthening the reasons of the derived value. For example, Life Insurance
Corporation LIC customers say that the company stands by them. Maruti 800, Alto,
Swift, Swift desire and so many other products have been known and loved for efficiency,
low maintenance, reasonable price and good mileage and that is what one of the Maruti
campaigns says: The country obsessed with mileage.
1.13 Sales
Coming back to the discussion on sales I initiated with the perspective of

synonimity of sales and marketing in few cases. Here it is very important for us to
understand that business, revenue generation, earning profits and other such terms
become synonymous with sales or selling as per the usage, interpretation and vocabulary
is concerned.
Starting from the literal meaning of the word Sale (as per Websters Dictionary)
says
The act of selling
The amount sold
The exchange or transfer of a commodity for an agreed upon price
An offering of goods at reduced prices
Public transfer of the highest bidder
Auction
Opportunity of selling
Even interpreted in term of demand
Plural: the collective operation of promoting, selling and distributing goods or
services.
Look closely at the above definition (dictionary meaning precisely) and you would
realize it actually is mentioning all discussed in previous sections. But this was discussed
reference to the context of marketing which according to many largely accepted
definitions has encompassing meaning as compared to selling/sales which is more
concerned with a specific function.
But this is the very point I wish your attention to be drawn that sales/ selling is
not just a function but it is the mode of execution foe almost all aspects/factors
marketing is comprised of.
Now just to endorse this proposition/thought lets have a look at the dictionary Introduction to
meaning of marketing from the same Websters dictionary. Marketing:- The entire Marketing Management
process of storing, shipping, advertising, and selling which promotes and actualizes a
sales transaction.
NOTES
Observe a sense of synonymity between the two terms/concepts and one needs to
go into retrospective analysis or lets say a little historical account of social change or
it would be better if you call it socio-economic wherein goods invented were propelling
employment through rapid industrialization (because of large market potential)
generating demand where focus was more on production.
As you know thoughts germinate thoughts and ideas trigger ideas. It becomes
a general culture of the thinking community to find solutions of universally relevant
problems of their times and that is how an Era comes into being. That particular Era
becomes an inspiration and exposure for new thoughts simultaneously accompanied
by relevant discovers and intentions and transforming society into a whole new Eras
period focussing on few aspects looking through a particular lens.
So production and goods of a particular kind trigger production of associated
products. This can be testified if you look back and analyze that there has been a period
where for example white goods, electronics and many other products have enjoyed a
Check Your Progress
triggered development or so to say Product Mutation. These particular periods I am Explain the concept of
referring to is also accompanied by appropriate Human skill development as well where Sales.
institutions focus on such streams as courses and people adopt it for example aviation
industry production as well as a transport in past 25 years has done well through this
sequence.
1.14 Production to Production of Technology to

Production of other Goods
This production oriented flow of societies and people associated modularize
processes and standardize capital goods and machinery for sometime (at least) and
then production and distribution of technology grows. In the meanwhile, demand starts
getting saturated, which instigates production of other products.
Further, efficiency of processes to curtail costs and synchronizing operations comes
into being which leads to stronger sales efforts because by this stage other efforts
(functionalities) have already been optimized.
Sales orientation not only caters to
(a) Competition and enhances competitiveness through market (customer)
feedback and sales team based marketing research but also
(b) Creates demand
(c) Handles grievances i.e. after sales support
(d) Is instrumental in forecasting hence supporting marketing plan
Introduction to Here two examples can be sighted for strengthening above arguments.
The production to product to sales to product orientation not only is justified by
economic principles but also is evident through Axis bank advertising/campaign which
NOTES says [Zindagi Ke Highway par koi Akeley Nahin Chalta] implying the association of
actions and choices of an individual with that of others.
Further sales aspect and its functionality can be understood with the help of
examples like Eureka Forbes where in sales team and sales orientation of the company
developed the market for vacuum cleaners and water purifiers first and then while
propelling demand catered to customer relationship management also supporting
marketing research finally helping the initiation of Product orientation i.e. design changes
and new segments reflected in Product line and Product width changes. This stage
almost completes the cycle where requirement of product changes either leads to
(a) Corporate strategy changes calling for business integration or diversification
or
(b) Production and Redevelopment and production process changes triggering
to STP and 4Ps i.e. Segmentation, Targeting and Positioning and various
components of Marketing Mix under P the Product, P the Price, P the
Promotion and P the Place.
The above cycle can be visualized with the help of time periods/Eras and product
or organization stories.
For example Seiko, Ikea, automotive industry, kitchen appliances, white goods,
Brown goods, electrical and electronics
There are two important aspects which have to be realized and understood in
accordance with the above stated deliberations and discussions:
(1) The factor of marketing organization along the flow of the business from Production
to Production of technology, to sales, to product development to marketing and
back with a larger perspective, and
(2) The factor of authors (different authors) and thinkers views along the course.
I will discuss on these aspects one by one through valid examples.
(1) Marketing organization :- The general perception associated with marketing
organization is are per the flow/depiction below:
Marketing organization as depicted implies the role of specific people involved
in the marketing process and the synchronization amongst not only the roles but also
Check Your Progress
the people involved. This aspect of synchronization you would later realize is very
Explain the concept of important in the light of market development in rural areas or with the prospective of
Production to production on central organization which I have been referring to where many product families
of technology to have to be marketed with the central characteristics of inconsistency of production,
production of other goods quality and flow of output.
Now lets wonder about marketing organization in the production era.
1.14.1 Marketing organization in production Era Introduction to
Before visualizing about marketing organization in production era, we also must Marketing Management
acknowledge the fact that the eras (periods) do not have a universal span in this world
i.e.
NOTES
For example when mechanization and technological advancement was taking
place in Europe say in textile manufacturing we were producing / growing cotton and
then Jamshetji Tata brought in textile machinery and put up first manufacturing facility
called Empress Mills in Nagpur in initiating textile production Era in India.
Further to add to this thought one may argue that globalization, faster
transportation, communication and so on has reduced the gap in the time triggering of
a type of period in one country or region by other but an important thing which emerges
despite of this reduction of time in the mental orientation of the era originator and
acceptance levels of the adopters.
For example Plastic money (cards) spread in very fast in America and Europe and
percolated down to India as well but still in struggling to penetrate or accepted to the
levels analyzed and in the meanwhile the initiators (western world) have started looking
in more comprehensive terms towards credit cards and credit system especially after
subprime crisis.
Hence in the light of the above argument lets understand that for example when
Tata Steels started rolling steel in India in 1911, Pittsburgh in America had so many
steel mills which were then working and expanding the usage of steel hence production
of various types of steel.
But never the less that was the time when we may say production era started in
India and got impetus after independence. That was the time when all the organization
involved were focusing a production, not only because of demand and supply gap but
supply actually could fetch its own demand.
Lets see which all organizations were producing and it all got absorbed in the
economy almost by itself.
For example: Production era in India was propelled on two accounts- Government
and private sector. It practically started before independence when Tata group (the
visionaries of Tata family) especially Jamshetji Nussurwanji Tata initiated production
of many industrial goods as well as provision of essential services knowing and
understanding that people of India require those.
Here demand and supply was not the only perspective, but also
Check Your Progress
(a) the vision,
Explain with examples
(b) the need of the people
Marketing Organization in
(c) the perspective how overall development where the development of their Production Era
own company would be realized
(d) along with the performing was involved.
Here again it is imperative to mention that some countries like China have long
Introduction to been production focus not only because of their
Marketing Management (a) Business and Marketing Environment and
(b) Because of the size of their markets but also because of the reason that by the
NOTES time they opened up their economy for Global integration, other economies
entered into a different phase and China had to continue with their role of
production orientation but now for whole of the globe.
Second aspect was associated with the Government of India working with
production orientation and initiating the production of essential and industrial goods
on the one hand and on the other hand providing services like banking, health, education
and insurance with the same orientation and mass approach. Examples of LIC, SBI etc.
Referring to the marketing organization in this Era, if you read the history of such
organizations you would understand that the focus was on the people who understood
(a) Technology
(b) Production
(c) Policy
(d) Regulations
and another part of the focus was bringing and then developing capital goods and
machinery for facilitating the production and infrastructure for providing services.
-A digression- Here it is very important to mention that this orientation (production
orientation) during the particular era became the part of the culture and one may find it
to exist in some markets or regions in pockets where one may find a group of
manufacturers still producing goods with the pretext of production like in case of soaps
in detergents in rural areas same capital goods manufacturers say textile machine
manufacturing in a small industrial city of Panipat in Haryana though with little
modification in their orientation approaching with the change in the generation of
entrepreneurs.
1.14.2 Marketing Organization in the Era of Sales
Late 50s and early 60s many organizations and even Government realized that
infrastructure and production capacity continually being developed at that time (though
strangely being consumed during the wars which took place in 60s and 70s) could not
be well utilized as also reflected during the process and in accounts.
Check Your Progress
Explain with examples of Hence almost everyone (organizations) started including a new community in
Marketing Organization in their organizations called agents or sales agents. These people at first were the people
Era of Sales who had been playing specific roles earlier and then a new class of sales people was
also trained and brought in the picture.
This sales community kept on evolving till late 80s also rising in the organizational
hierarchy. They were taken with a relevant stream based background largely with
Bachelors degrees in sciences, arts and commerce as associated with peculiarity of the
products and services they had to sell.
For example: sales representatives in pharmaceutical industry were usually science
graduates. You remember very elegant, nicely dressed executives carrying a unique Introduction to
leather bag with reference material and medicine samples. Marketing Management
1.14.3 Marketing Organization in the Era of Production
Orientation NOTES
Subsequently came in a time when organizations especially with the backdrop of
the data (market feedback) about their
(a) Products
(b) Customers changing needs (desires) as per the enhancement in their exposure
(c) Competitors and with reference to
(d) The change in technology which they were experiencing
Realized that they must call for
Check Your Progress
Conceptually Explain with
(a) Addressing the costumers opinion through product changes and
examples Marketing
(b) Structuring their distribution and
Organization in the Era of
(c) After sales services Production Orientation
This inevitably triggered a) a process of looking towards technological changes
in the production process based on the foreseen product changes (design, structure,
form, features etc.) b) a process of looking towards more rational distribution process,
structure and modes c) avenues and aspects of larger after sales services setup.
Hence initiating a process to bring in
(a) People who were technically qualified but costumers need oriented and had
larger market exposure, so as to bring in rational but radical product changes
(b) People who could enhance distribution efficiency by developing channels
and partners
(c) People who were customer friendly and could understand relevance of
customer service and also could train after sales service teams
For example late 80s and early 90s, one could find almost all the organizations
developing their organizational (marketing organization) structure which got reflected
in their products as well as enhanced customer satisfaction through enhanced customer
response increasing their sales. Like refrigerators, televisions (remember colour TVs
coming to India in early to mid 80s), sports cycles, ladies cycles, beautiful wrist watches,
footwear, jeans and all such products visible everywhere.
Here comes 90s and onwards when manufacturing competitiveness, sales
effectiveness and product changes were not enough. India was radically opening up to
the world. Worlds large auto makers like Suzuki, Yamaha, Kawasaki, electronic giants
like Samsung, LG, Sansui white goods manufacturers, air conditioning specialists like
Carrier, Hitachi and many-many others were coming in with huge plans and everyone
seemed to wish for customers attention.
Advertising world and Integrated marketing communication companies were
having their plates full and their creative teams were working overtime to help the Marketing Management : 23
Introduction to companies to reach out to the world.
This is the triggering thought dear readers Reaching out to the customers and
consumers and this now must be co-related with what we discussed earlier while
NOTES elaborating the definitions of marketing.
Here came in some new places (in marketing organization) not only driven by the
experience of multi-nationals coming in but also because of the need of the hour and
because of the reason that marketing by definition had to be realized.
Therefore people like Marketing managers, sales managers, brand managers,
Marketing support functions, market analysis managers, market research managers,
communication managers, customer relationship managers and so many of them
emerged. These people were specifically trained for their positions and designations.
For example we have seen all major organizations becoming extremely market
and marketing driven. People contacting you on phone, in person, through messages
for the products specifically designed for you to justifiably convince you that its you
whom they have always foreseen as the customer and finally trying to standby their
offerings till you use their products and refer it further or repurchase it.
To specify you revisit the process how you chose this course and you would
evidence a strong marketing process wherein even people from academics would have
been trying to convincingly justify your choice.
1.14.4 Marketing organization in the present era of sales and
Marketing
Now from a decade and inevitable and a genuine development has been taking
place and has been strengthening as if a full circle situation has come and that is
integration of the orientation during each era into one especially with a strong focus on
the integration of sales and marketing functions which were highly demarcated.
Here comes in a situation where functional merger of both the positions took
Check Your Progress place and designations like Vice President Sales and Marketing got created. These
Conceptually Explain with people understand why it should be termed together and suggest that marketing is
examples Marketing looking at things holistically and sales execute that. For example, marketing wishes to
Organization in the fathom the market i.e. to analyze the market which it does through sales which is at the
present Era of Sales and forefront.
Marketing Further, these people understand every aspect of the complete value chain by
virtue of their qualification and orientation.
Introduction to
1.15 Marketing Mix with a Comprehensive Perspective Marketing Management
Marketing mix NOTES
Product Place
Product variety Channels
Quality Target market Coverage
Design Assortment
Features Locations
Brand name Inventory
Packaging Transport
Sizes Price Promotion
Services List price Sales promotion
Warranties Discounts Advertising
Returns Allowances Sales force
Payment period Public relations
Credit terms Direct marketing
Now lets look at the components of marketing mix more comprehensively so as

to understand the same with the perspective of:
(a) Services and Institutions
(b) To lay the grounds for understanding
The concepts like
(i) Product life cycle
(ii) Association of Product life cycle with 4Ps
(iii)Competition and so on.
Lets take the example of school and management education.

(A) With the perspective of Product, Product variety includes not only the types
of courses but also the delivery variation which infuses the required variety
so as to include more targets within a segment or to include more segments.
For example, schools you must have noticed have been delivering with
virtual class room aids, with improved teachers training and also including
International Baccalaureate courses for different segments. Management and
Business Administration education has been orienting itself more on
customization of course structures.
(B) Product Quality as another component if we notice in the case of chosen
examples is an integrated part when we focus on variety in course structures
and delivery because variety not only requires re-orientation of the process
but also re-orientation in the training of teachers which inevitably effects
quality. You must have heard people talking of their experience and perception
of quality of various schools and institutions.
(C) Design and features get shaped in lieu with variety and quality wherein
Introduction to especially in case of school and management education how do you deliver
Marketing Management and what do you deliver are the main aspects of concentration. For example,
some management courses are completely designed for practical thinking
NOTES with lot of industry interaction and delivered through visiting faculty.
In schools also virtual classrooms, contents delivery through lot of
practical aids based on student exposure has been becoming a prominent
feature.
(D) Brand Name: Structured flow of integrated elements of marketing mix, not
only Product quality design etc. but also price, promotion and place
develops(establishes) the brand name inevitably.
(E) Price Promotion and Place: Price if one would realize actually emerges on
the basis of cost component on the one hand and on the other hand Quality
and brand perception of the customer along with other elements like
competition and the economic concepts comprising of quantity demanded,
Check Your Progress elasticity, income, share of pocket allocations and the reasons allocated by a
Conceptually Explain with person (customer) to the purchase of a service or product. Here, promotion
examples Marketing Mix and place also play an important role by justifiably reaching out to the
with a comprehensive customer.
perspective
For example- there is an interesting simulation one of my management students
prepared on the basis of market perception of management education students. The
simulation specifically categorizes about the price preferences in combination with
other features and Marketing Mix Components, whereas, it is an input for the marketer
to support his marketing logic as well.
Introduction to
1.16 Holistic Marketing Dimensions Marketing Management
Senior Products &

Management Services NOTES
Marketing Other
Department Departments Communications Channel
Internal Integrated
Marketing Marketing
Holistic
Marketing
Socially Relationship
Responsible Marketing
Marketing
Ethics Community Customers Partners

Environment Legal Channel
Fig. 1.2 Holistic Marketing Dimensions
(Source : Kotler Keller Koshi and Jha, Marketing Management, 13th edition, Person
Publication)
Kotler Keller Koshi and Jha in their book Marketing Management, a South Asian
Perspective 13th Edition, have explained Holistic Marketing Concept. They say that,
Holistic marketing recognizes that everything matters in marketing and that a broad
integrated perspective is often necessary. Further, the authors have provided a schematic
overview of four broad components characterizing holistic marketing i.e.
(a) Relationship Marketing
(b) Integrated Marketing
(c) Internal Marketing and
(d) Socially Responsible Marketing
1.16.1 Relationship Marketing
This component suggests development of relationships with the key constituents
(organizations and people) associated with the success of a firms marketing activities,
hence building a strong marketing network.
Indeed, for example, the story of thousands of women producing Hundreds of
product categories we have been following since the beginning of this text if logically
seen and infused with this component we would realize that fundamental success of
ensuring a synchronized production, quality and distribution was a must in this case
and this was one of the steps we took. First of all, we started developing institution
Introduction to based relationship, subsequently converted into informal trust based relationships with
Marketing Management the local village heads, government officials (disbursing loans and channelizing sales
proceeds to the producers) and the producers themselves connecting them into a network
as much. Further, as I revealed earlier we started developing their interconnectivity
NOTES
along with bringing in relevant NGOs as channel partners first. Next step was, exhibitions
all around which brought in perspective customers and the network became composite.
But , the most important thing as the concept also puts it is that the relationship
development justifiably should suggest benefits to all and there we had to struggle
because of the reason that products produced were large in number of categories and
every category was produced in small quantities in pockets across where training the
producer on universal quality standards was costly. Another example is of management
educational institutions and you would realize that all of them bearing fruits of success
have strong emphasis of developing relations with industry, academia, and students (
alumni as well as prospects).
1.16.2 Integrated Marketing
This component is suggestive of integrating marketing programmes for creating
communicating and delivering value to the customers. This, the authors say should be
done by integrating activities of a marketing programme. Such activities seen as the
components of 4Ps of McCarthy should have a seem less relational logic.
For example when I teach the course of Rural Marketing I have to make sure that
the students look at their future in association with this course, they understand rurality
and rural marketing, they must find a radical difference between urban marketing and
rural marketing approaches on the hand and industry should also feel that rural marketers
may create difference.
For example recently we have also been designing special courses for students
who would belong to rural marketing approach, pricing the modules as such, specifically
promoting and positive those and delivering those in relevant settings.
1.16.3 Internal Marketing
If I say that every person in a school must like and love children, all the actions
and functions they are involved into must be directed towards the development growth
and betterment of the children, we all would feel that yes this is right but how to do it
is associated with how we think on a universal platform and all cohesive in not only
maintaining this thought but integrate all our functions to practically realize the same.
This you may interpret as internal marketing.
1.16.4 Performance Marketing
Check Your Progress Remember the definitions discussed in earlier sections especially the composite
Conceptually Explain with definition by American Marketing Association given in 2007, which is suggestive of
examples Holisitic marketing being responsible to the society at large. Therefore the description of
Marketing Dimensions performance marketing as given in Marketing Management, a south Asian perspective,
13th edition elaborates on the correlation of marketing and its actions on everything
i.e. every aspect it touches. It is suggestive of the marketing actions being answerable
to marketing environment not only in terms of financial accountability terms but also Introduction to
in terms of socio-environmental accountability. Here marketing calls for complete Marketing Management
transparency, hence to be further defined as
A transparent Commitment. NOTES
For example visit the website www.tata.com and you may find a history of
transparent commitment. Also visit- (Each case link Vinay Sharma).
-Please appreciate that Holistic marketing concept supports the integration of
value amongst all the participants of a marketing process and as discussed earlier as
well this can be seen with the perspective of integration of values all concerned with
a particular marketing process. Recently we have been conducting a research on
management education in India about management- its relevance, rise and direction
and the major aspect which emerged is that direct benefits of management education
could only be realized if and only the values of all concerned i.e. students, academia
and industry are integrated into a value system. Marketing Environment (in continuity
with examples discussed till now)
1.17 Marketing Environment
I strongly recommend that please keep revisiting the definition(s) of marketing

we have been discussing till this stage and please keep analyzing the examples and
stories we have been referring to.
Once you reiterate the definition of marketing where it refers to activities, set of
institutions and processes we/you immediately realize that any activity, set of institutions
and process is surrounded by factors which it influences though but is also influenced
by being surrounded these factors. Hence, factors surrounding Marketing (activities
we do or set of institutions or processes which create, communicate, deliver and exchange
offerings that have value for customers, clients, partners and society at large) constitute
marketing environment.
And if you try and analyze that what those factors may be through the point of
definition of marketing itself you would appreciate that those definitely on the one
hand are associated with creating, communicating, delivering and exchanging the
offerings and on the other hand customers, clients, partners and society of large are
also those factors. Logically categorizing these factors they may be classified under
micro and macro environment or controllable and non controllable factors as well. One
may also look at them as parts of directly associated environmental factors and indirectly
associated factors and also as parts of internal environment and external environment.
Some of the factors have this uniqueness of being seen as part of both the sides depending
upon how you wish to address them.
For example if an organization is capable of developing technology for itself and
many others for that matter it may look at technology as a part of its micro, controllable,
directly associated, or internal environment. Marketing Management : 29
Introduction to But for larger application and consideration we can classify marketing environment
Marketing Management into execution environment (directly addressable factors) and adjustment environment
(which has to be watched, observed and adjusted with).
NOTES Factors associated with these two parts may be:

(a) All the components of production or constitution of a service, meaning thereby
people, material etc.
(b) All the components of distribution
(c) All the components of promotion
But in the meanwhile I wish if you may recollect McCarthys 4Ps and
briefly look at the components of distribution and promotion especially.
(d) Most important component though we must acknowledge here is the customer.
Please remember that people and entities who support business in any ways from
procurement to the satisfaction and retention of customer.
Adjustment Environment includes
(a) Socio-economic environment
(b) Physical environment
(c) Technological environment
(d) Political-legal environment
(e) Demographic environment and
(f) Economic environment
Please appreciate that all these components are to be observed, mentioned and
adjusted with timely. But just to give you a clue that effective marketing is also associated
with efficient forecasting of probable changes in the aforesaid components and make
adjustments or at least start adjustment process before hand, because post happening
adjustments are recuperative in nature which give way to competition in the long run.
Let me explain the aspects of environment with the help of the examples we have
been referring to.
(a) Try to analyze the components of execution environment for the products
produced by the women in rural areas (which we have been discussing since
the beginning of this text). These components include Government because
they provided the seed money for the produce, training institutions as they
trained the women, banks as they managed the transactions, raw material
providers, buyers and intermediaries like Government agencies themselves
as they facilitated exhibitions i.e. distribution and promotion avenues.
(b) Adjustment environment for these producers included their socio-economic
environment specifically related to their rural settings.
Further, these women were highly affected by the technological changes for which
they could not do much and it did affect the scale of their production, uniformity of
their quality and so on.
Another example I have been using is of Management Education and we do Introduction to
understand that though Management education is meant to provide an impetus to Marketing Management
leadership abilities, entrepreneurship, decision making and organizational and
management skills at large but admissions, syllabus and other things get affected by
NOTES
the industry requirements not only in numbers but also about the course and the skill
combinations required.
Here, I wish for you to understand that adjustments which are called for by the Check Your Progress
components of adjustment environment are to be made in the or through the components Conceptually Explain with
of the execution environment. examples Marketing
For example, demographic environment may be adjusted with the education Environment
delivery execution i.e. if you have more working executives because of people getting
absorbed in industry immediately after their Bachelors education because of large
young population proportionately and growing requirement of the industry then there
would be a larger number of working executives looking for higher or Management
education hence requiring delivery structure adjustments.
1.18 Summary
Marketing management must be seen and understood with an all encompassing

perspective wherein disciples of knowledge should have in the mind their own specific
role as marketers and market developers in times to come.
As soon as one finds himself well within scenario and wishes to read so as to
instigate his thoughts to drive marketing plans and programmes the learner will almost
automatically be thinking about the correlative terms wherein he would definitely try
to analyze say, need for a product.
"Marketing is the activity, set of institutions and process of creating,
communicating, delivering and exchanging offerings that have value for customers,
clients, partners and society at large".
If we try and analyze this definition with the view point of making it happen or
realizing this we would find out that this only can done through intensity of efforts i.e.
commitment, hence marketing may be termed as commitment.
'Marketing is a committed reflex of 'values' expressed through the transactions to
bring prosperity and sustainability to the human race'.
Why would we realize these definitions subsequently is because of the reasons
that creating, communicating, delivering and exchanging value would require
Devotion
Dedication
Consistency
Credibility
Integrity
Clarity
Introduction to Learning
Marketing Management Team spirit
Leadership
All of which converges into commitment largely (can you identify a single
NOTES
character around you with these traits)?
Whereas commitment gets reflected through an established value system propelling
values and deriving value which is the definitional objective to be achieved through
the entire marketing process.
Elaboration In this Unit through a practical situation not only elaborates on what
marketing conceptually is but also puts forth various aspects associated with marketing.
1.19 Key Terms

Marketing : Marketing is the activity, set of institutions, and processes for creat-
ing, communicating, delivering, and exchanging offerings that have value for custom-
ers, clients, partners, and society at large. Source: The MASB Common Language
Project. http://www.themasb.org/common-language-project/ Source: http://
en.wikipedia.org/wiki/Marketing. http://www.marketingpower.com/_layouts/
dictionary.aspx?dLetter=M
Demand : 1. (economic definition) A schedule of the amounts that buyers would
be willing to purchase at a corresponding schedule of prices, in a given market at a
given time. 2. (business executive definition) The number of units of a product sold in
a market over a period of time. Source:http://www.marketingpower.com/_layouts/
dictionary.aspx?dLetter=D
Sales : Any of a number of activities designed to promote customer purchase of a
product or service. Sales can be done in person or over the phone, through e-mail or
other communication media. The process generally includes stages such as assessing
customer needs, presenting product features and benefits to address those needs and
negotiation on price, delivery and other elements. Source:http://
www.marketingpower.com/_layouts/dictionary.aspx?dLetter=S
Product : 1. A bundle of attributes (features, functions, benefits, and uses) ca-
pable of exchange or use; usually a mix of tangible and intangible forms. Thus a prod-
uct may be an idea, a physical entity (a good), or a service, or any combination of the
three. It exists for the purpose of exchange in the satisfaction of individual and organi-
zational objectives. (2) Occasional usage today implies a definition of product as that
bundle of attributes for which the exchange or use primarily concerns the physical or
tangible form, in contrast to a service, in which the seller, buyer, or user is primarily
interested in the intangible. Though to speak of "products" and "services" is conve-
nient, it leaves us without a term to apply to the set of the two combined. The term for
tangible products is goods, and it should be used with services to make the tangible/
intangible pair, as subsets of the term product. Source: http://www.marketingpower.com/
_layouts/dictionary.aspx?dLetter=P
Price : The formal ratio that indicates the quantities of money goods or services Introduction to
needed to acquire a given quantity of goods or services. Source:http:// Marketing Management
www.marketingpower.com/_layouts/dictionary.aspx?dLetter=P
The amount a customer pays for the product. The price is very important as it NOTES
determines the company's profit and hence, survival. Adjusting the price has a profound
impact on the marketing strategy, and depending on the price elasticity of the product,
often it will affect thedemand and sales as well. The marketer should set a price that
complements the other elements of the marketing mix.
When setting a price, the marketer must be aware of the customer perceived value
for the product. Three basic pricing strategies are: market skimming pricing, market
penetration pricing and neutral pricing. The 'reference value' (where the consumer refers
to the prices of competing products) and the 'differential value' (the consumer's view of
this product's attributes versus the attributes of other products) must be taken into ac-
count Source:https://en.wikipedia.org/wiki/Marketing_mix
Place : refers to providing the product at a place which is convenient for consum-
ers to access. Various strategies such as intensive distribution, selective distribution,
exclusive distribution and franchising can be used by the marketer to complement the
other aspects of the marketing mix Source:https://en.wikipedia.org/wiki/Marketing_mix
Promotion : all of the methods of communication that a marketer may use to
provide information to different parties about the product. Promotion comprises ele-
ments such as: advertising, public relations, personal selling and sales promotion.
Advertising covers any communication that is paid for, from cinema commercials,
radio and Internet advertisements through print media and billboards. Public relations is
where the communication is not directly paid for and includes press releases, sponsor-
ship deals, exhibitions, conferences, seminars or trade fairs and events. Word-of-mouth
is any apparently informal communication about the product by ordinary individuals,
satisfied customers or people specifically engaged to create word of mouth momentum.
Sales staff often plays an important role in word of mouth and public relations (see
'product' above). Source:https://en.wikipedia.org/wiki/Marketing_mix
Planning : An iterative process framework for organizing myriad information flows,
analyses, issues, and opinions that coalesce into strategic decisions. There are four stages
to this process: (1) Situation assessment- the analysis of internal and environmental
factors that influence business performance, combined with a comparison of past per-
formance relative to objectives and expectations, (2) Strategic thinking- identification
of key issues that have a major impact on performance and the generation of creative
strategic options for dealing with each issue, (3) Decision making- selection of strate-
gic thrust, choices of options, and allocation of resources in light of mutually acceptable
objectives, and (4) Implementation- ongoing activities that translate strategic decisions
into specific programs, projects, and near-term functional action plans. The process is
iterative because the implementation phase will eventually be followed by a revised
situation assessment. Source:http://www.marketingpower.com/_layouts/dictionary.aspx?
dLetter=A#adaptive+planning
Introduction to Environment : The complex set of physical and social stimuli in the external
Marketing Management world of consumers. Source:http:// www.marketingpower.com /_layouts /
dictionary.aspx? dLetter=E
NOTES
1.20 Questions and Excercises
1. Discuss the concept of marketing. How is marketing orientation relevant to
business?
2. Several competing philosophies such as the Selling concept, Production concept
and Product concept exist. How are these different from one another? How are
these different from the marketing concept?
3. Define marketing management in present content
4. Distinguish between marketing and selling as the basis of
(a) Meaning
(b) Objective and
(c) Scope
5. Explain any six facilitating functions of Marketing.
6. What are the functions of marketing? Explain all with suitable examples.
7. Define and explain different principles and objectives of Marketing Management.
8. Define & explain the concept of marketing management in present content.
9. Distinguish between marketing and selling as the basis of Definition, meaning,
Objectives, Importance and Scope .
10. What are the Similarities and Differences between Selling and Marketing?
11. Marketing and selling are synonymous terms. Do you agree? Give reasons.
12. Marketing is something more than just selling. Do you agree? Justify.
13. Marketing mix is the instrument that can keep the organization successful, though
its product may rise & decline in their respective life cycles. Discuss quoting
examples.
14. What are the factors affecting on Marketing Mix.
15. What are the reasons for extended Marketing Mix for Services?
16. Explain Extended Ps of the marketing mix with suitable corporate examples.
17. Define labeling and Explain functions of labeling.
18. Design a Marketing Mix for following products. Justify your answer. (Make
Assumptions wherever necessary)
a) Portable MP3 player.
b) Branded wheat flour (Ata).
19. The important role played by 4Ps in a competitive environment. Discuss.
20. Explain how marketing mix should be changed during various stages of the PLC.
Introduction to
1.21 Further Reading and References Marketing Management
1. Kotler, P., Armstrong, Agnihotri and Haque ``Principles of Marketing, 13th

Edition, Pearson India. NOTES
2. Kotler, Keller, Koshi and Jha, `Marketing Management, 14th Edition, Pearson
India
Reference Reading :
1. Kotler Philip, Hermawan Kartajaya, Iwan Setiawan ``marketing 3.0, 2013,
John Wiley & Sons.
2. Sharma Vinay, ``Affordability for the Poor and Profitability for the Provider
2009, Verlag, Germany
3. Aakers David, ``Managing Brand Equity, 2nd Edition, 199, Free Press.
4. Dawn lacobucci, ``Kellogg on Marketing, 2001, John Wiley & Sons, New
York.
Developing Marketing
Strategies and Plans UNIT 2 DEVELOPING MARKETING
STRATEGIES AND PLANS
NOTES
Structure
2.0 Introduction
2.1 Unit Objectives
2.2 What does value implies literally?
2.2.1 Value offered has to justifiably match with the value perception of
customer
2.3 Value and Value Chain
2.3.1 Focus- Value Chain and Value
2.3.2 Enhancing Value throughout
2.4 Planning-Span, Scope and Attributes
2.4.1 Span
2.4.2 Scope
2.4.3 Attributes/ Components of a Marketing Plan
2.5 Summary
2.6 Key Terms
2.7 Questions & Exercises
2.0 Introduction
What does value implies literally - its origin and perspective
Value propositions are the derivatives of the values of the customers as well as
the producers because it is quite an understood fact that none of the educators would
even have tried to teach their students with utilities and text which is considered im-
moral. No doctor however calculative about his services would ever tell patients that
he would harm them i.e. if soft drink marketers say that they are quenching thirst
customer must have values associated with thirst being quenched through such prod-
ucts.
2.1 Unit Objectives

After reading this unit, you should be able to-
Describe the concept of value and value chain with a diagram.
Explain the three aspects of Marketing Plan.
Developing Marketing
2.2 What does Value Implies Literally Strategies and Plans
Its origin and perspective

NOTES
I will discuss the literal meaning of value and would try to associate it with different
facets of humans existence and would be giving you a glimpse of all pervasive
characteristic interpretation of this word. But to initiate with I would just give an example.
On, 10th March 2013 I am visiting Kumbh Mela at Allahabad and writing this portion
sitting in a cottage herein the Mela ground near the confluence of the Holy Rivers
Ganga and Yamuna called Sangam. As I also been writing all through in many papers
about congregations one unique aspect as observed at such religiously and more over
spiritually oriented events is that producers, organizations, brands and individuals try
to associate their products with the spirit of the moment (which is done otherwise also)
but the point to be noticed here is that only such products which can justifiably share
the values associated with people visiting such congregations can share the spirit and
subsequently can offer a value proposition in terms of tangible economic terms as well.
For example I saw Tata tea serving tea to the pilgrims today. Meaning thereby that
value propositions are the derivatives of the values of the customers as well as the
producers because it is quite an understood fact that none of the educators would even
have tried to teach their students with utilities and text which is considered immoral.
No doctor however calculative about his services would ever tell patients that he would
harm them i.e. if soft drink marketers say that they are quenching thirst customer must
have values associated with thirst being quenched through such products.
You visit shrines and religious places and stay in guest houses and would not find
a philosophy of being entertained there and you would also not like to be entertained
there.
I will keep on elaborating on these aspects but hopefully I have made my point
here where values evolve value and value exchange.
Another example I wish to touch is of Sahara group. As I was reading an article
called Jack in the Box published in Business Today, March 17, 2013 page 40 onwards.
There are so many aspects which are discussed about Saharas ways of collecting public
money but undeniably so because of the trust they have been enjoying from their
customers but why so? Because of shared values evolving value proposition and value
Check Your Progress
exchange. Same sequence may be observed in a different example which I saw when I
What do you understand
visited Vrindavan- a holy place of Hindus. There I found a guide who accompanied us
by Value? Explain the
places around but this man actually justified him being a guide when he actually drew
concept in terms of its
our soul towards the reason we visited Vrindavan and also made sure that we get that
context.
experience when he made us heartily laugh by saying that you have come here to leave
your sorrows behind and be happy. You must have got my point by now.
2.2.1 Value offered has to justifiably match with value
perception of customer
Lets understand this with the help of an example. In 2012, I visited a resort town Marketing Management : 37
Developing Marketing called Antalya in Turkey. This is an integrated resort city which has a large integrated
Strategies and Plans transportation system and other infrastructural facilities. What we could gather during
this visit was facilities. What we could gather during this visit was that apart from an
integrated infrastructure and its management, the resorts in the city work on the basis
NOTES
of an integrated supply chain management system wherein all the supplies to all the
resorts are routed through large purchasing system though not commonly managed.
Now the next part, this resort city has many large units and roughly about a cumulative
strength of ten thousand rooms or around twenty-five thousand beds. Further, as there
are largely two seasons here and the city hosts people coming largely for vacation
experience. Winter season is extremely cold wherein we visited but the beauty of the
place and marketing proposition offered (though logically based seasonal changes) is
that pricing and offering do not change too much but the type of visitors change. During
summers, families and younger lot and in winters, retired and elderly people along
with conference groups visit such places. And the most important part is that for example
for 50 per day, you get a suit, all the facilities in the resort including gym, entertainment
shows etc., all three meals and drinks and beverages all day through along with airport
pick up and drop facility.
What I intend to propose here is that on the one hand while managing the cost
through an integrated system this resort city creates a mechanism of maximising the
benefits of vacation seekers in a very appropriate pricing frame because value perception
of vacation seekers is that they dont wish to excessively yield for being entertained,
they do not wish to tell themselves that they excessively paid for the thing/experience
which was supposed to make them happy.
Antalya is the largest city on the Turkish Mediterranean coast, and is one of the
hubs of the so-called Turkish Riviera.
Understand
Yacht marina and part of old city of Antalya

Having entered the scene in 150 BC as Attalia, named after its founder, Attalos II,
king of Pergamon, Antalya has ever attracted a wide array of travellers, including Paul
the Apostle, and Ibn Battuta among others. Antalya had replaced Phaselis-beautiful
ruins of which now lie to south of the city, between Kemer and Olympos-as the main
harbour of the surrounding region during the reign of Seljuks, in early 1200s, but the
Marketing Management : 38 lack of a large hinterland (or, rather, lack of good connections with its mountainous
hinterland) meant for much of its history eversince that it was a provincial coastal Developing Marketing
town, albeit with a multicultural community of Muslims, Christians, and Jews. As the Strategies and Plans
centre of a region with beautiful beaches, verdant mountains, and a mindblowing number
of ancient ruins, the tourism investments started in 1970s, which changed the fate of
NOTES
the city considerably. However, as most of the visitors (make no mistake-they are in
the range of millions annually) to the region are actually on "all-inclusive" vacation
packages nowadays, they are immediately taken from the airport to the huge resorts
lining the coastline of hundreds of kilometres, where they stay until the end of their
holidays except perhaps a raid or two to the nearest and the most popular attractions, so
Antalya itself, especially the old town (Kaleii), is more of an independent traveller
destination, where you will meet the other travellers of a similar mind, and the locals.
Climate
Around April, when you can perfectly get a suntan and the weather is much more
bearable than summer months, is one of the best times to visit the city.
Get in
Antalya is the closest airport, served by inexpensive flights from Istanbul. (As
low as $50, early booking is also available for lower prices).
http://www.gitapress.org/GP_intro.htm PG23 in L-1
Founded in 1923 by Divine inspiration to propagate the Gita.
Gita Press is a unit of Gobind Bhawan Karyalaya registered under the Societies
Registration Act, 1860 (presently governed by the West Bengal Societies Act, 1960).
The institution's main objective is to promote and spread the principles of Sanatana
Dharma, the Hindu religion among the general public by publishing Gita, Ramayana,
Upanishads, Puranas, Discourses of eminent Saints and other character-building books
& magazines and marketing them at highly subsidised prices.
The institution strives for the betterment of life and the well-being of all. It aims
to promote the art of living as propounded in the Gita for peace & happiness and the
ultimate upliftment of mankind. The founder, Brahmalina Shri Jayadayalji Goyandka,
was a staunch devotee and an exalted soul. He was much given to the Gita as the
panacea for mankind's plight and began publishing it and other Hindu scriptures to
spread good intent and good thought amongst all.
The Governing Council (Trust Board) manages the institution. Its members
(Trustees) have no selfish or monetary motive. The institution neither solicits donations
nor accepts advertisements in its publications. The deficit is met by the surplus from
other departments of the society which render services at reasonable cost, in accordance
with the objects of the society.
In the Gita Press, the day starts with a morning prayer. A person roams around
throughout the day to remind the name of God to each worker several times.
Over the years, the institution has made available more than 370 million copies
of the Gita, Ramayan, Bhagvat, Durga Saptashati, Puranas, Upanishads, Bhakta-Gathas,
and other character-building books in Sanskrit, Hindi, English, Gujarati, Tamil, Marathi,
Bangla, Oriya, Telugu, Kannada, and other Indian regional languages.
The "Kalyan" in Hindi and the "Kalyana-Kalpataru" in English are monthly
Developing Marketing magazines brought out by the institution. Information about latest releases, and essays
Strategies and Plans are provided in the house-magazine "Yug Kalyan".
Nityalilalina Bhaiji Shri Hanuprasadji Poddar is especially remembered as the
life-time editor of the Kalyan monthly magazine.
NOTES
Subject Copies Sold
Shrimad Bhagvad Gita in different editions 71.9 million
Shri Ramcharitamanas & other works by Goswami Tulsidas 70.0 million
Puranas, Upanishads, Ancient Scriptures 19.0 million
Small books especially for Women and Children 94.8 million
Bhakta-Gathas (Biographies of Saints) & Bhajans 65.1 million

(Devotional Songs)
Others 87.4 million
Total 408.2 million
Language Publications
Hindi & Sanskrit 739
Gujarati 152
Telugu 123
Oriya 94
English 76
Bangla 89
Marathi 97
Tamil 60
Kannada 72
Assamiya 9
Malyalam 2
Nepali 2
Urdu 2
Punjabi 2
Another example is of a publisher called Geeta Press which publishes religious
books and has a vast distribution network coupled with a strong trust and reliability
Marketing Management : 40 level they have achieved due to the justice they have been doing through publishing
unbiased, honest and well researched scriptures with a very appropriate pricing. You Developing Marketing
see though the religious scriptures are fundamentally possessions but still the customer Strategies and Plans
expects a low and genuine pricing with a high quality printing and publishing which
this publication has been maintaining.
NOTES
The other day (during monsoon season), we were roaming in the fruits and the
vegetables market and I inevitably compared the pricing and proposition of two products Check Your Progress
i.e. one Dhaniya (coriander) which was being sold for Rupees 100 per kilo and people
Explain the following
were buying that with a very resentment (though it has a flavour and a decorative
statement, 'Value offered
value) on the other side Guavas were being sold for Rs 40 a kilo and people were
has to justifiably match
unhappy saying that how come Guava can be sold for such an exorbitant price though
with value perception of
we all know the nutritious value of a Guava and its vitamin C content and its contribution
customer'.
to our immune system.
2.3 Value and Value Chain

As we may observe now that values to value exchange may also be seen with the
perspective of conceiving STP, segmentation, targeting and positioning and developing
combination of McCarthys 4Ps, product/service, price, place and promotion.
Now lets give a structured impetus to our thought process through the value
chain perspective given by Michael Portar of Harvard
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(source and copyright) value chain model proposes for a business to be seen with
the logic of value and cost creating primary and support activities. One of the strengths
of this simple but effective approach is that it refers to value creation and costs
simultaneously, which enables us to understand the role of costs and value creation in
association with each other and also to visualize the extent of costs for maximizing
Developing Marketing value. For example- A very luxurious hospital and a clean and good hospital both are
Strategies and Plans having appropriate equipment and equally qualified team.
As can be seen from the figure, that the primary activities from inbound logistics
NOTES to Service are associated with execution and delivery and have a scope of directly
being addressed, while having an immediate effect on the business. Here action, control
and monitoring are the key words. Support activities are specialized in natural and
have a dual role of visualization and analysis on the one hand, and strategic role of
deciding the course of primary activities by augmenting their path from inception till
end. For example, lets look at primary education in India. One may appreciate the
structure, the delivery, the process, the result a decade back and now. Further, let us
discuss on a pertinent example of refrigeration manufactured and marketed by Godrej
for rural markets in India called chotukool. If one looks at the products, its inception
and reasons for inception, production, positioning and the complete marketing process
one realizes the relevance of Michael Porters Value Chain concept. Chotukool is
Check Your Progress conceived with two important aspects at the backdrop one customers need of having
Explain the concept of such a product and two constraints of electricity and price associated with such a product/
Value Chain with need. The complete design, technology, even colour chosen for this innovative product
reference to Value, is associated with provision of value through creating value throughout the value chain
especially highlighting the of this product. Please read about this product through other web sources and analyze
aspects of reliability and the information and details with the reference of the Value Chain figure.
trust.
2.3.1 Focus-Value Chain and Value
It is very important and pertinent to understand that there is a limitation to what
an organization can do effectively throughout the Value Chain. This limitation not
only is because of the technological or other constraints but also due to the orientation
of its human resource which can also be expressed in terms of focus of an organization.
For example, in case of even highly established organizations offering renowned
products like Fiat in India, you would find that they found difficulties in terms of
distribution, Marketing and Sales and Service despite of the fact that they had good
products, design and tried and tested technology. Therefore, they joined hand with
Tatas to sell their products.
The areas where an organization has limitations may bring in additional costs,
therefore, it is always desired and advisable for the organizations to focus on the areas
of their strength to take competitive advantage on the one hand and maximize the value
throughout the value chain so as to maximize the value in the end.
The focus area in due course may expand where in all along the process of value
provision the organization acquires competency in other areas as well and sometimes
may change its focus areas altogether. For example, Ghari detergent a famous detergent
in northern India established its competences in production and then acquired
competency in marketing and sales strongly focus on distribution and reaching out to
people while creating trust and releasing strong messages on the same, remember Pehely
istemal karein phir vishwas karein their tag line (first use it and then trust it).
2.3.2 Enhancing Value throughout Developing Marketing
Now look at the scenario comprehensively once again. Strategies and Plans
Values!value!value exchange
Values!value perception!value !value exchange NOTES
Values!value perception!value (throughout the value chain) !value exchange
Looking at this evolving process what we may comprehend here is that because
of the fact that values had a match or have to have a match in the initial most stages
when the producer or service provider has an offering the roots of value enhancement
are embedded in the strengthening of the values which would give the right impetus to
value perception and motive to enhance value throughout the chain facilitating value
exchange where in customer not only pays the price but also feels satisfied is loyal and
becomes the brand ambassador of the product for example ASICS. Visit their website,
learn about their process and one realizes the practicality of value exchange.
Another example is Lego toys and specifically the blocks they produce. Lego has
been named the toy of the century and one realizes that a company manufacturing
around 1.7 million bricks an hour has to have a strong assurance of almost automatic
sales so as to complement their completely automatic manufacturing and inventory
management.
Let me elaborate the concept of enhancing value throughout with the help of an
example. A builder/developer ( not specifically by profession) was doing something
else in life when in his mid-50s he realized that elderly people and couples who have to
retire and settle down alone because of their children working far away, must have a
society of their own wherein they feel physically, mentally and spiritually comfortable
and assured of help and care. He designed a colony wherein he designed comfortable
homes complimented by housekeeping, cooking and health maintenance, security,
spiritual experience, mental happiness, calm and tranquillity and provided emergency
bells, electronic gadgets and other equipment backed up by a strong human resource Check Your Progress
support system attending the residents at all times delicately and professionally. The Give examples to
residential area sold out immediately and he too integrates it with other residential elaborate upon aspects of
complexes now becoming a specialized builder and developer. Another futuristic Enhancement of Value
example can be production of devices reading books to you whenever you feel like throughout.
think about it and try and prepare a B-plan on this.
2.4 Planning : Span, Scope and Attributes

Marketing plan or a plan per say has three aspectsspan, scope and attributes or
components.
2.4.1 Span
This includes the time frame and the time context i.e. when things/actions have to
be initiated and when those actions would/might fundamentally be changed denotes
the time frame. Marketing Management : 43
Developing Marketing Time context is associated with the actions being thought of and executed with
Strategies and Plans reference to the marketing environment.
We must acknowledge here that span has an intense association with vision,
NOTES mission and objectives of the organization hence involving about whole of the
organization. Structurally, other two aspects of span are:
(a) Course of action in the longer term which definitely considers the industry
situation growth and course, organizations foreseen changes and course of
market changes i.e. largely the life of an offering foreseen with the upcoming
life of an organization and the industry itself.
(b) Course of action in the shorter term which considers specific actions to be
taken and managed for example promotional program and strategy, product
line changes, pricing adjustments, channel and distribution management and
so on.
2.4.2 Scope
This entails the application and operational connect of a marketing plan with
other functionalities and components/ parts of an organization itself. Very simply putting
up one may like to visualize that if a marketing plan has product-line changes (product
line concept would be discussed in detail in later chapter/units) or simply product
alterations to include more number of customers under consideration then production
and design departments would have to play an important role and vice versa too, for
then the suppliers and many other people would also have a direct bearing of the scope
of planning.
2.4.3 Attributes/ Components of a Marketing Plan
Lets take one or more examples to discuss components of a marketing plan along
with the imbibed requirements of integration of the said components.
There is a school with multiple branches in lucknow city. The name of the school
Is city Montessori school and holds recognition by the Guinness book of world records
Check Your Progress for having largest number of students in a school in a city. If you visit the website of the
Marketing plan or a plan school and analyse the history which as per the number of years is not too long but with
per say has three aspects- reference to the vision, mission, objectives, analysis, segmentation, targeting,
span, scope and attributes positioning, product, price, place and promotion is intense.
or components, explain
This school is initiated with a vision and with a small branch was foreseen with
with examples.
the perspective of requirement of world class education to a large number of students
along with the factors associated with industry development.
Branches and the number of students were added in continuation to the up gradation
of delivery, delivery methodology and the educators themselves. Promotion got an
impetus because of the activities and intensity with which the students were attended
in due course evident in the development of students as a resultant strengthening the
branch subsequently backed up by the infrastructure development. Another important
part has always been the cohesiveness of the team with objectives and intense
Marketing Management : 44 involvement of the promoters.
External environment Developing Marketing
(opportunity & threat Strategies and Plans
analysis
SWOT
Business analysis Goal Strategy Program Implementa- Feedback
mission formulation formulation formulation tion and control NOTES
Internal environment
(strengths/ weaknesses
analysis)
Kotler Keller Koshi and Jha, Marketing Management, 13th edition, Pearson
Publication
Therefore, we may observe that a marketing plan has two types of components:
(a) The components which are large and a plan has to synchronize itself in
consonance with these;
(b) The components which are executed in a marketing plan
Larger components requiring synchronization from the side of a marketing
plan are:
(a) Vision of the organization itself;
(b) Policy structure of the organization;
(c) Culture of the organization;
(d) Structure of the organization, wherein, though we must remember that the
structure follows strategy in general but marketing plan requires several
adjustments with reference to the organizational structure itself;
(e) Industry growth phase/stage;
(f) Organization own life cycle stage. For example, a relatively new organization
still has to gain larger trust of its stakeholders as in its suppliers and channel
partners.
(g) Organizational positioning. For example, organizations known for a particular
reason have to justify that reason and positioning in whatever they do.
(h) Product/ service own life cycle;
(i) Competition- direct, indirect, and share of pocket;
(j) Resources- financial, human, technical, etc.;
(k) Readiness of the organization to propel innovation. Innovation in process,
research and market.
The components which are executed in a marketing plan are:
(a) Clearly stated objectives which are explicit in terms of
i. What business we are into?
ii. Segmentation, targeting and positioning- why and how?
iii. All the attributes associated with product, price, place, promotion- what
and how? For example, if an organization decides to deliver a particu
lar model of a washing machine in a particular city then they must have
Developing Marketing all the reasons for it apart from the basic reason of customer being there,
Strategies and Plans i.e. would they be able to provide after sales service, for example.
Another is that if a marketer is marketing a refrigerator which requires
continuous electricity supply to hold cooling to a particular place where there
NOTES
are lot of power cuts then it definitely would harm them.
(b) External and internal environmental analysis- this is simultaneously done
and carried on throughout planning because it not only helps in developing
and augmenting objectives but also for finding opportunities weighing them
Check Your Progress
across strengths, weaknesses and threats throughout the value chain.
Explain the two types of
(c) Then comes in projections in terms of market share benchmarked on the
components of a
basis of market potential, financial projections and brand development
marketing plan.
projections.
(d) Finally, a system which may suggest the time for augmentation called as
monitoring and control mechanism. The backbone for this mechanism is
customer feedback which should be structured and intense.
2.5 Summary
Please revisit the stages of marketing plan and planning and the major components
which we have discussed i.e. the large components and the executed components. The
questions those primarily come to the mind are:
(a) What is that a company should understand? and
(b) What is that a company should know?
Trying and finding answers to these is that a company should understand:
(i) The factors associated with it at macro level. For example, where the economy
would head to? Would it be more service oriented or else?
(ii) What is the socio-political environment and policy structure indicating? For
example, yesterday i.e. 15th march 2013, I was watching discussion on 12th
five year plan at 5:00 p.m. and there are specific indicators pointing at the
growth and support from the side of government and education quality is one
of those which can be interpreted in a scope for building greater attraction of
trainers/ educators to join in the field on the one hand and on the other hand
greater impetus would be given on the training of the educators.
(iii) Then there are aspects associated with trade policy. For example, IKEA
furniture is about to enter into the country with a large business plan backed
up by the foreign investment policy structure which is attractive enough for
them. This indicates market growth on the one hand and on the other hand
and competition for companies like Godrej, who have long been doing well
in the furniture market.
(iv) A company must also understand the changes which socio-culture structure
Marketing Management : 46 of the market would be going through.
(v) The technological changes which may come especially in the longer run Developing Marketing
especially in context to the changes they may bring in the processes of Strategies and Plans
production and distribution and what they would be the integrated (cumulative)
effect of such changes. For example, if a company is into travel facilitation
NOTES
business i.e. travel agency kind of business it should have imagined that the
process of planning travel would become automated like SOTC, Thomas cook
and other large agencies imagined and either started integrating services and
rationalizing prizes or diversifying their portfolios.
Now, here comes in the need for a company to find out answer to the second
question and to enlist the things that they should know become this only would enable
actions. The things that a company should know are:
(a) Demography i.e. age, income and other indicators with respect to the flow and
growth of these indicators. For example, how the age of the country and specifically
the segment they have been foreseeing in morning. For example, a cycle
manufacturer like Hero Cycles always has an eye on these aspects so as to think
about the changes in the product offerings beforehand.
As the demographic data says that a large portion in India's population is young
below the age of 35 years and this says a lot.
But remember this aspect should be known beforehand so that appropriate
changes in STP and McCarthy's 4 Ps could be brought in the appropriate time.
(b) Concurrent flow of income with respect to inclination towards the spending. For
example, as we know income levels in India have been rising but there are associated
aspects.
(a) Income is supported more by the growth in service sector
(b) Urbanization as job seekers see larger opportunity in cities hence
(c) Spending on fast food, transport, rents along with mobile communication,
entertainment and so on.
(d) Further a larger tilt towards say gadgets like smartphones despite of the price.
This though has a backdrop in economic principles but as a marketer one has
to understand the socio-culture aspect behind it and know the number of those
would get associated with these kinds of purchases.
2.6 Key Terms

Values
(1) Important and lasting beliefs or ideals shared by the members of a culture
about what is good or bad and desirable or undesirable. Values have major
influence on a person's behavior and attitude and serve as broad guidelines in
all situations. Some common business values are fairness, innovation and
community involvement.
(2) The monetary worth of something in areas such as accounting, economics,
marketing or mathematics. See also value.
Developing Marketing Source: http://www.businessdictionary.com/definition/values.html
Strategies and Plans
Strategy
(1) A method or plan chosen to bring about a desired future, such as achievement
NOTES of a goal or solution to a problem.
(2) The art and science of planning and marshalling resources for their most
efficient and effective use. The term is derived from the Greek word for
generalship or leading an army. See also tactics.
Source:http://www.businessdictionary.com/definition/strategy.html
Strategy:
a (1) the science and art of employing the political, economic, psychological, and
military forces of a nation or group of nations to afford the maximum support to
adopted policies in peace or war (2) : the science and art of military command
exercised to meet the enemy in combat under advantageous conditions
b (a) variety of or instance of the use of strategy
(2)
(a) a careful plan or method : a clever stratagem
(b) the art of devising or employing plans or stratagems toward a goal
(3)
an adaptation or complex of adaptations (as of behavior, metabolism, or structure)
that serves or appears to serve an important function in achieving evolutionary
success<foraging strategies of insects>
Source: http://www.merriam-webster.com/dictionary/strategy
Planning : Planning (also called forethought) is the process of thinking about and
organizing the activities required to achieve a desired goal.
Planning involves the creation and maintenance of a plan. As such, planning is a
fundamental property of intelligent behavior. This thought process is essential to the
creation and refinement of a plan, or integration of it with other plans; that is, it combines
forecasting of developments with the preparation of scenarios of how to react to them.
An important, albeit often ignored aspect of planning, is the relationship it holds
with forecasting. Forecasting can be described as predicting what the future will look
like, whereas planning predicts what the future should look like.[1] The counterpart to
planning is spontaneous order.
Source: http://en.wikipedia.org/wiki/Planning
2.7 Questions and Exercises

(1) Does marketing orientation impact business performance? Discuss.
(2) Effectiveness in serving the customer is paramount for the survival of the business.
Comment?
(3) Distinguish between efficiency and effectiveness in terms of serving the needs of
the customer?
(4) What is mean by strategic marketing plan? Developing Marketing
(5) How does the marketers commitment affect his ability to serve customers? Strategies and Plans
(6) What barriers may a marketing managers face when trying to convince other people
within an organization that they should adopt the marketing concept? NOTES

1. Kotler, P., Armstrong, Agnihotri and Haque ``Principles of Marketing, 13th Edition,
Pearson India.
India
Reference Reading :
John Wiley & Sons.
York.
Capturing Customer Insights
UNIT 3 CAPTURING CUSTOMER
INSIGHTS
NOTES
Structure
3.0 Introduction
3.1 Unit Objectives
3.2 Marketing research, analysis and forecasting
3.2.1 What is that a company should understand?
3.2.2 How should companies get to know and learn?
3.3 Information gathering and analysis a synchronized approach
3.4.1 Definition, relevance and process of marketing research
3.4.2 Marketing research process
3.4.3 Research planning (research approach and research in methodology)
3.4.4 Types of research design
3.4.5 Data collection
3.4.6 Sample size
3.4.7 Analysis
3.5 Forecasting
3.5.1 Demand Forecasting methods and Logic
3.6 Understanding Consumers and Customers to achieve their Satisfaction and Loyalty.
3.6.1 Factors influencing Consumer Behaviour
3.7 Decision on Buying
3.8 Summary
3.9 Key Terms
3.0 Introduction
What is that a company should understand? and
What is that a company should know?
Have you ever heard someone saying that what is your problem? and suddenly
you realize that yes there is some problem but the question remains what is that?
A marketing research process starts with clearly defining a problem and the
objectives of the research.
Broadly there are two approaches to marketing research or research for that matter
in management, marketing and social sciences. Those are qualitative and quantitative
research approaches. Capturing Customer Insights
The prime objective of this unit is to emphasize on the need and fundamentals
associated with the market research and forecasting because of the simple reason that
rational forecasting brings in profitability.
NOTES
3.1 Unit Objectives

1. Define Marketing Research and describe its approaches.
2. Describe Marketing Research Process.
3. Describe the typs of Research Design.
4. Describe the tools required for research analysis.
3.2 Marketing Research, Analysis and Forecasting

Please revisit the stages of marketing plan and planning and the major components
which we have discussed i.e. the large components and the executed components. The
questions those primarily come to the mind are:
(a) What is that a company should understand? and
(b) What is that a company should know?
3.2.1 What is that a Company?
Trying and finding answers to these is that a company should understand
(i) The factors associated with it at macro level. For example, where the economy
would head to? Would it be more service oriented or else?
(ii) What is the socio-political environment and policy structure indicating? For
example, yesterday i.e. 15th march 2013, I was watching discussion on 12th
five year plan at 5:00 p.m. and there are specific indicators pointing at the
growth and support from the side of government and education quality is one
of those which can be interpreted in a scope for building greater attraction of
trainers/ educators to join in the field on the one hand and on the other hand
greater impetus would be given on the training of the educators.
(iii) Then there are aspects associated with trade policy. For example, IKEA
furniture is about to enter into the country with a large business plan backed
up by the foreign investment policy structure which is attractive enough for
them. This indicates market growth on the one hand and on the other hand
and competition for companies like Godrej, who have long been doing well
in the furniture market.
(iv) A company must also understand the changes which socio-culture structure
of the market would be going through.
(v) The technological changes which may come especially in the longer run
especially in context to the changes they may bring in the processes of
Capturing Customer Insights production and distribution and what they would be the integrated (cumulative)
effect of such changes. For example, if a company is into travel facilitation
business i.e. travel agency kind of business it should have imagined that the
process of planning travel would become automated like SOTC, Thomas
NOTES
cook and other large agencies imagined and either started integrating services
and rationalizing prizes or diversifying their portfolios.
Now, here comes in the need for a company to find out answer to the second
question and to enlist the things that they should know become this only would enable
actions. The things that a company should know are:
(a) Demography i.e. age, income and other indicators with respect to the flow
and growth of these indicators. For example, how the age of the country and
specifically the segment they have been foreseeing in morning. For example,
a cycle manufacturer like Hero Cycles always has an eye on these aspects so
as to think about the changes in the product offerings beforehand.
As the demographic data says that a large portion in Indias population is
young below the age of 35 years and this says a lot.
Check Your Progress
But remember this aspect should be known before hand so that appropriate
What is that a company
changes in STP and McCarthys 4 Ps could be brought in the appropriate
should understand?
time.
(b) Concurrent flow of income with respect to inclination towards the spending.
For example, as we know income levels in India have been rising but there
are associated aspects.
(a) Income is supported more by the growth in service sector
(b) Urbanization as job seekers see larger opportunity in cities hence
(c) Spending on fast food, transport, rents along with mobile communication,
entertainment and so on.
(d) Further a larger tilt towards say gadgets like smartphones despite of the price.
This though has a backdrop in economic principles but as a marketer one has
to understand the socio-culture aspect behind it and know the number of
those would get associated with these kinds of purchases.
3.2.2 How should Companies get to know and learn?
Fundamentally, we all has an imbibed characteristics of being inquisitive and we
may all appreciate that companies and organizations which have teams of intelligent
people with them and have growth as a universal target would definitely be more
enthusiastic to know.
Companies create systems for regular flow of information on the basis of the need
of type of information they are more interested in along with the accessibility of the
information.
(a) There is universal information like census and government surveys which
have a periodicity and universal accessibility through required to be interpreted
Marketing Management : 52 with respect to a companys orientation. There are industry surveys, agriculture
surveys, sector surveys, health and education surveys, analytical reports, Capturing Customer Insights
reports by planning commission and so on.
(b) Then there is investment analysis, advertising and integrated marketing
communication analysis which enables company to understand and interpret,
NOTES
consumer preferences, competitors orientation, inclination of industrial
environment orientation of the members of their as well as others supply
chain system. Check Your Progress
How should Companies
(c) Trade and commerce reports tell about the export / import possibilities, hence
get to know and learn?
market for their products.
(d) Human resource surveys are indicative of manpower availability and trends.
For example, educational institutions are on the rise and there is a faculty
shortage which could have been foreseen beforehand if the information about
the kind of courses and the research focus people were having.
(e) The come in the flow of information from a companys own sources and
environment i.e. sales team, dealers, distributors and most importantly the
customer in terms of feedback. There are very important sources because of
the reason that the information shared by them has an immediate bearing on
the companys actions. For example, pricing and discounts, advertising, sales
promotion, packaging, delivery and distribution and so on.
For example, recently Mahindra and Mahindra (India Today, March
13, 2013, http://indiatoday.intoday.in/story/mahindra-recalls-xuv500-from-
2011-12-batch/1/257423.html) recalled a batch of their products XUV500
from customers to correct some problems which otherwise could have created
dissatisfaction, hence wrong message. The requirement or such a recall could
come in because of customer feedback through dealers helping the
manufacturer to address the problem timely and in increasing the customer
confidence.
(f) Now comes in the requirement for specifically collected information through
structured and devised process and features. We will see in the next section
that how actually this is done.
Check Your Progress

3.3 Information Gathering and Analysis a Synchronized What do you understand
Approach by Information gathering
and analysis?
Companies create a marketing information system which when is associated with
analytical tools and manpower gets converted into marketing intelligence system.
Every activity in the complete value chain is tracked and monitored through a
system which enables continuous flow of information on one hand and information
analysis on the other hand.
For example, as soon as a product in a store is sold a companys marketing
department through its sales department, then its inventory management department, Marketing Management : 53
Capturing Customer Insights further its suppliers get to know them. Any subsequent information not only compliments
this information but also starts suggesting trends which may include design and colour
acceptance as on apparels and toys, which may also suggest seasonality and therefore
enables the companys focus on the elements to be addressed for example, to increase
NOTES
or lower down the supply on one item in comparison to the others and this as you may
appreciate has an intense and direct bearing on its manufacturing systems as well as to
bring flexibility in manufacturing lines.
The Times of India, New Delhi, Thursday, March 7, 2013, Page 10- under the
heading In Gujarat, KFC, Subway go vegetarian says and quotes a statement suggestive
of marketing strategy on the basis of marketing research of a multinational fast food
chain called Subway. It says, we carried out a survey in Gujarat and sent a proposal to
the US headquarters to open an all-veg outlet with a pure Jain counter in Ahmedabad.
We will now add more vegetarian items on the menu in Gujarat, which is the only state
that contributes 60% of the total sales from vegetarian food.
Notice the keywords in this quoted statement
(a) Survey
(b) 60 % of the total sales from vegetarian food
(c) A pure Jain counter
(d) Proposal
Assimilation the interpretation of these key words, and the statement we understand
the reasons, relevance and process of marketing research.
Reason : every organization wishes to move forward according to the vision,
mission, and objectives they have. But future has to be foreseen and unknown customer
along with his behaviour has to be visualized i.e. predicting and forecasting as precisely
as possible because of the reason of not only averting risk and losses but also maintaining
speedy growth in an era of fierce competition. Appropriately imagining the unknown
enables a company to prepare, plan and strategize, hence establishing the need of
marketing research as this is the only means of interpreting about how and why things
may turn up in a certain fashion so as to enable a company to think about what should
be done? For example, the action and strategy of subway developing all vegetarian and
Jain outlets in Gujarat is the result of their marketing research/ survey as they say.
3.4.1 Definition, Relevance and Process of Marketing Research
According to the October 2004 definition of marketing research by American
Marketing Association Marketing research is the function that links the consumer,
customer and public to the marketer through information- information used to identify
and define marketing opportunities and problems; generate refine and evaluate marketing
actions; monitoring marketing performance; and improve understanding of marketing
Marketing Management : 54 as a process. Marketing research specifies the information required to address these
issues, designs the method for collection process, analyses the results, and communicates Capturing Customer Insights
the findings and their implications.
The definition above emphasizes on
(a) Marketing research being a function that links the consumer, customer and NOTES
public to the marketer through information.
(b) It further describes/ qualifies the said information which can be / or is used to
identify and define marketing opportunities and problems.
(c) Information that may be used to generate refine and evaluate marketing
actions,
(d) Information which is used to monitor marketing performance and improve
understanding of marketing as a process.
(e) Further, as a process marketing research
(i) Specifies the information required
(ii) Designs the method for collecting information
(iii)Manages and implements the data collection process
(iv) Analyses the results and
(v) Communicates the findings and their implications.
Points (a) and (b) as you may appreciate are the objectives of marketing research.
Points (c) and (d) describe the relevance of the marketing research and point (e)
Through points (i) to (v) defines marketing research as a process.
Keywords from the definition those emerge are:
Consumer, customer, public, information, marketing, opportunities and problems,
marketing actions, performance.
Task : Just reiterate and remember what we discussed while understanding value
chain and providing value to the customer. Now go back to the porters value chain
diagram/ figure and try and look at it with the perspective of role of marketing research
at every step of value chain whether the support activities or the primary activities and
one realizes that marketing research starts at the stage of conceiving the market goes
along while segmenting it plays a prominent role in targeting, positioning and all through
the Ps of marketing along with assuring value based linkage between the components
of value chain as discussed while re-emphasizing its role at every stage of a products
life cycle, because of the reason that whenever you have problems, questions have to be
answered and those only would be answered by the consumers/ customers/ people.
Answers to the questions bring solutions and that enables achievement of the objectives.
Did you read somewhere that in 2012-2013 Nokia did not do well in comparison
to its competitors Blackberry despite of its steady growth in past lost many of its
customers in 2012-2013?
Hero motors for example has been facing reduced growth along with other
manufacturers like Bajaj and TVA as per SIAM (Society for Indian Automobile
Manufacturers) since April 2012, while Honda in two wheelers segment has seen a
growth of 33%.
Capturing Customer Insights 3.4.2 Marketing Research Process
Have you ever heard someone saying that what is your problem? and suddenly
you realize that yes there is some problem but the question remains what is that?
NOTES A marketing research process starts with clearly defining a problem and the
objectives of the research. For example, generally speaking reducing sales in an indicator
or reducing market share may be an indicator as in the previous example of SIAM
report about 2 wheeler manufacturers but what are the reason for this is the research
problem or problem statement. Why those reasons have to be found would constitute
the objectives of the research?
For example, while finding the reasons of reducing sales we came across fuel
price as a reason then solution may be more fuel efficient cars which not only would
address the reducing sales but also address the objective of research if company wishes
to generate new marketing actions in the coming years.
3.4.3 Research Planning (Research Approach and Research in
Methodology)
Broadly there are two approaches to marketing research or research for that matter
in management, marketing and social sciences. Those are qualitative and quantitative
research approaches. As the name suggest in crispy quantitative terms, where data is
collected in such a manner that the output nos. have a strong scope of statistical analysis
hence bringing out numbers to be interpreted. Qualitative research is radical and
unstructured at large. Here approach to the data is with the backdrop of finding answers
to the radical questions or even for establishing answers themselves i.e. defining
problems.
There are several methodologies associated with both the approaches which have
been used to satisfy the needs. Methodologies are actually the sets of procedures chosen
for conducting research and are constituted for
a. Choosing data sources
b. Extracting data
c. Assimilating data and
d. Analysing and interpreting the analysis
Here while defining a methodology under the chosen research approach one should
define a research design to be chosen which subsequently is associated with logically
integrated sets of steps [here it is imperative to suggest that though any of the research
approaches may effectively be used in consonance with a logically viable research in
design but depending upon the research objectives and identified problem(s) many times
there is a natural fit between an approach and a design.
3.4.4 Types of Research Design
There are three types of research design at large
(a) Exploratory research design
Marketing Management : 56 This design is associated with situations where a problem is not defined
or a problem is identified and as we understand no problem no solution. Capturing Customer Insights
(b) Descriptive research design
This design has a peculiar association with a defined problem and need
for understanding or observing or analysing phenomenon is there. NOTES
c. Causal research design
This design is associated with generation of a cause and monitoring of the
effect i.e. generating a phenomenon to be understood along with its effects.
3.4.5 Data Collection
It is almost natural to research for existing data which is termed as secondary data
and has been gathered or exists because of some or the other reason. Secondary data
helps in creating a boundary or frame of further research wherein the depth and span of
primary data (data to be collected with specific research objective) gets established.
Primary data is collected through
(a) Observation- by observing phenomenon, people and process
(b) Interviews- structured or unstructured
(c) Focus group discussions or brainstorming
(d) Surveys
Research /data collection instruments:
(a) Questions asked through questionnaires or otherwise
(b) Devices- mechanical, electronic or other scientific devices. For example
cameras in shopping malls support observation method of data collection to
support observation method of data collection to analyse behaviour f customers.
3.4.6 Sampling Size : (unit, size and procedure)
The most important now comes is about the composition of the sample i.e.
who are those people, lets say their demographic attributes. For example,
education scenario of the country requires to be understood with the perspective
of educators as well as the educated.
Then comes in the aspect of the number of people. How many? There are
several statistical techniques suggestive of an appropriate size, but it depends
on two important aspects also,
a. The fundamental research objectives and problem
b. The procedure followed by the researcher i.e. a researchers discretion
is important.
Now comes in sampling procedure where in depending upon above two points
and the research design one may think of probability to be involved or to
work with judgement and convenience i.e. non probability then if probability
is to be involved; should there be stratification or clusterization within the
sampling unit chosen?
These questions suggest two major types of sampling procedures: Marketing Management : 57
Capturing Customer Insights (a) Probability sample where there are:
(i) Simple random sample- every member of the population has an equal
chance of solution.
NOTES (ii) Stratification random sample- though randomized but population is

divided into exclusive groups like age group.
(iii)Cluster / are sample- population is divided by geography and then the
random sample in research.
(b) Non-probability sample
(i) Judgement sample- knowing that specific people are required to be con
tact a list is prepared.
(ii) Convenience sample- accessibility in the factor for example someone
wishes to know the fashion trends and talks to people within his col
lege.
(iii) Quota sample- specific number of people is decided in specific catego
ries.
3.4.7 Analysis
Now comes in the analysis part which requires tools (statistical and analytical
tools) software based or otherwise to be deployed and then interpretation to be done.
Try and appreciate that when we call something as a tool it almost is imbibed that
it has a specific purpose properties and requirements to be used effectively. For example
chi-square test or ANOVA i.e. analysis of variance etc. but the most important part is
interpretation because this leads to crucial decision making. For example management
education in the country. Despite of the following are the procedures of research and
analysis things did not go as perceived in the end. The evidence for this is that through
there is calculated demand and supply gap in the number of executives required by the
industry today in India and the number of management graduates produced on the on
hand. On the other hand growth in the number of institutions required to fill this gap in
receding. Therefore, either the problem of the research has not yet been clearly defined
or the researches done have not been rightly interpreted, because in any case the number
of aspirants of management education is rising.
An example to corroborate the discussion
Now lets systematically look at the above example in the light of the preceding
discussion on research approach and design.
If you go through the related literature on management education scenario in India
one finds the following important aspects:
a. MBA degree enjoys a brand equity
b. Strong career prospects are associated with getting an MBA
c. This education has been enjoying an elite status plus has a different status
because government sector jobs in India enjoyed a priority over private sector
Marketing Management : 58 jobs in India especially till liberalization when private sector started growing.
d. Institutions providing MBA degree started evolving at a pace. Capturing Customer Insights
e. Definite hierarchy of the universities remained intact (at least for 50 odd
institutions) despite of the fact that
i) Curriculum now may not be differentiated at large NOTES
ii) Faculty and delivery have similar qualifications
iii) Infrastructure is similar
f. Scenario got changed private sector opened up for MBA and the other
management degrees
g. Models got replicated
h. Industry expressed demand, it did absorb people but with huge hierarchical
difference.
i. Number of institutions increased and stagnated without fulfilling industry
demand.
j. Though number of aspirant is rising including working people colleges hold
vacant seats
k. Placement remains an issue even for the top ranking institutions especially at
times of economic recession.
The question that emerges is:
What is the problem?
Say hypothetical answer or as we call, hypothesis is faculty quality is the problem.
Then when we weigh this hypothesis to be dealt specifically with a research process
we feel that if it is a problem then is it a problem even at the levels of best of the
institutions because relatively they also are struggling with quality level and output.
Next we feel no faculty may be a problem but the major problem is segmentation,
targeting and positioning of MBA student but then the question arises that is process not
doing any justice to improve the quality of students. The situation keeps becoming
complex because identification of problem is itself a problem here.
Then in such a scenario a researcher inevitably starts talking to people
associated with the management education. Here, it is important to understand
that this can be done through quantitative procedures as well but then opinions
and radical questions require discussions and if you wish to learn it with an
historical perspective then you have to talk to people who have been with
MBA and management education all through hence justifying a qualitative
research approach, which is targeted towards problem identification hence
associated with an exploratory research design which inevitably requires non-
probabilistic sampling and judgemental in this case because you just cannot
randomize it as judgement and randomization do not go hand in hand.
Further say the problem that emerges is that management education is not
seen with the perspective of a knowledge earning mode and strong academic Marketing Management : 59
Capturing Customer Insights orientation.
Then emerges definite hypothesis. But remember we have to keep monitoring
the objectives of the research deducted at the initiation which were understood
NOTES as say the relevance of management education and MBA programme.
Once the hypothesis comes in we have a population in mind and sampling
technique and data collection instruments may be chosen along with the
Check Your Progress
analysis tools.
Explain the definition,
But remember interpretation is always required which a researcher does in
relevance and the process
the light of everything that has been learned and understood in due course.
of Marketing Research
with examples. As you have seen since the emergence of hypothesis the research design that
comes to fore in descriptive research design accompanied with probability
sampling precisely stratified random sample in the case where in you talk to/
ask questions to students, faculty, industry representatives, owners, education
leaders or random.
If one experiments with answering the emerged problem through a cause and
effect relationship and focus on education delivery and then monitor the
response in due course of time it is causal research design i.e. you organize
an institution as an experiment with controlled factors of education
delivery, develop students and then let them work with industry for a period
and then again interpret the data collected from them and the industry about
the effect.
3.5 Forecasting
Forecasting have an intense broad look at the discussion we have had about
marketing research till new and the key words those merge as the resultant are:
a. direction and
b. target and objectives
Both of these things are associated with marketing research enabled Forecasting.
The reasons are understandably obvious that no organization wishes to feel blind or
over confident in moving ahead and commit mistakes which averse the customers on
the one hand and on the other hand gives a natural advantage to the competitors. Further,
if specifically crafted marketing plan supported by meticulous marketing research is
executed profitably tends to be high and in the end it is profitability which propels an
organization through justifying every aspect if a value chain.
3.5.1 Demand Forecasting Methods and Logic
Whenever a company analyses its segment, competition and customer come
together in the picture. Customer comes to fore in the form of characteristics based on
demographic profile, behavioural profile and psychographic profile whereas the
competition may be thought of in terms of direct, indirect and even share of pocket
Marketing Management : 60 (depending upon the factors a company chooses to acknowledge the competition) for
example mobile phones may have competition with motorbikes if they focusing on young, Capturing Customer Insights
middle income based, undergraduates. Further this picture when has to be sharpened
marketing research as a tool is used which gives a four faceted outlook suggestive of:
a. industry potential
NOTES
b. industry stage
c. company potential
d. company profile
i.e. where does the particular industry actually stands and what potential it has. For
example, fast food industry which has a range of fast food vendors selling samosa and
jalebi and burger or rolls at the two ends and where McDonalds stand and what does is
the potential that it holds. Do they have to focus on getting market share from within the
industry or they getting market share from within the industry or they can grow with the
growth of the industry.
Let me elaborate on this
For example people associated with McDonalds target segment are growing in
number then their thought process in terms of 4Ps and positioning would be different.
But if they have to attract consumers / users of other products and the market is not
growing steadily then they have to offer Rs.20 burger to attract customers. In both the
cases potential and stage analysis with number outcomes must be done.
Forecasting Methods: logically speaking if one analyses about the positive means
of forecasting demand on the basis of four parameters those should be stated first in the
first place as discussed in the preceding paragraphs, some methods emerge. But most
important aspect which underlines all the possible methods is knowledge about customers
perspective and desire.
Perception and desire that may have been expressed through past purchases or a
companys past sales, the trend that emerges in a response to the efforts in terms of 4Ps
accompany makes.
A company may choose to analyse its sales hence its efforts in terms of industry
comparison and then ask questions to the current buyers and the potential buyers which
may help in estimating brand recall, recognition and strength along with projection of
future response of the customer i.e. future demand.
Check Your Progress
Asking questions to the buyers, potential buyers and the people like sales force, 1. How is forecasting
dealers etc. who are in touch with them termed as surveys and opinion surveys associated with
corroborated with expert opinions, past analysis and market testing give a number which marketing research?
then is adjusted on the basis of its sensitivity to unprecedented possibilities gives a 2. Explain demand
possible forecast. forecasting methods and
This may look complex but becomes simple if continuously pursued throughout a Logic.
marketing programme and the data in terms of answers and feedback is continuously
analysed quantitatively as well as qualitatively.
For example despite of sales growth on the decreasing side two wheelers Marketing Management : 61
Capturing Customer Insights manufacturers in India according to SIAM (The society of Indian automotive
manufacturer) have planned to raise their production capacity in 2013.
NOTES 3.6 Understanding Consumers and Customers to Achieve

their Satisfaction and Loyalty
Profiling customer may start with demographic data but why customer would
choose to buy a particular product is answered by understanding customer.
Here to initiate with I would refer to the consumer i.e. buyer purchasing goods
directly to use/ consumer first
To understand a consumer one has to understand consumer behaviour.
Then to understand a consumers behaviour or consumer behaviour in general
one has to understand what is behaviour and the factors constituting ones
behaviour and factors influencing behaviours.
American marketing association dictionary says that
a. Behaviour is the overt acts or active of consumers that can be directly
observed.
b. Consumer behaviour is the dynamic interaction of affect and cognition
behaviour and the environment by which human beings conduct the exchange
aspects of their lives.
c. Cognition is the sum total of an individuals beliefs, attitudes, perceptions,
needs, goals and learned reactions about some aspect of individual world or
the mental process of interpretation and decision making, including the beliefs
and meanings they create.
d. Affect is the feelings a person has towards an attitude object such as a brand,
advertisement, salesperson etc. affect is growing in importance in attempts
to understand and predict consumer behaviour or the affective responses
include states such as emotions, specific feelings and moods that vary in
levels of intensity and arousal.
Now look at the interpretation of points (c) and (d) i.e. cognition and affect to
further understand point (b) i.e. consumer behaviour. You would appreciate that for
example you wanted to buy a pair of shoes for yourself, the interpretation of youre the
sum total of your ( beliefs+ attitudes+ perceptions+ needs+ goals+ learned reactions=
cognition) with your (feeling + mood= affect) will be your consumer behaviour towards
the offerings.
Before I explain this further let me quote some more relevant definitions from the
dictionary of American Marketing Association.
i) Belief: a cognition or cognitive organization about some aspect of the
individuals world. Unlike an attitude, a belief is always emotionally or
motivationally neutral. Also a belief is synonymous with knowledge or
meaning in that all refer to consumers interpretations of important concepts. Capturing Customer Insights
ii) Goal: A concrete short term point of measurement that the business unit
intends to meet in pursuit of its objectives and an overall objective converts
into specific short run goals.
NOTES
iii) Perception: Based on prior attitudes, beliefs, needs, stimulus factors and
situational determinants, individual perceive objects events or people in the
world about them; perception is the cognitive impression that is formed of
reality which in turn influences the individuals actions and behaviour
towards that object.
3.6.1 Factors influencing Consumer Behaviour
Major influencers of consumer behaviour are:
a. Cultural factors
b. Social factors
c. Personal factors
d. Psychological factors
(a) Cultural factors
Culture pertains to customer of a society or a nation or a group of people per say.
Have your heard this line of song somewhere mehmaan jo hamara hota hai wohjaan se
pyara hota hai i.e. a guest is precious than life to us. This is what we may call a cultural
aspect. Marketers focus on cultural aspects in all the propositions or say that they strongly
consider cultural aspects in the combination of 4Ps they create/ design for their target
customer. For example, Indians have a strong orientation towards organizing marriages.
Marriage is a long thought off, well discussed, well organized event in India, where so
many people from both sides are involved and many types of rituals and customs are
met. Marriages are seasonal especially amongst Hindus and therefore are followed by
marketers specifically. Try and find out TVC specifically directed and oriented towards
marriages and you would find that almost all the companies some or the other time
would have released such advertisements,
(b) Social factors
Family is the unit of society as they say and then there are social reference groups
whom you refer to or affiliate to for consideration or you compare yourself with. For
example, McDonalds Happy Meal definitely is associated with family influencers where
children tend to influence whole of the family to go to their outlet and almost all find
something to eat. Another example is uski saree mere saree se safed kaisey or a motor
bike advertisement where two riders while waiting for the red signal light to go green
are comparing the features of their bikes along with the price and its a general
phenomenon otherwise also that whenever ones neighbour or someone from ones social
circle purchases something, comparison becomes inevitable. Another example could be
when you hear people saying that in one defence forces, this is how we think or for
example as they say that doctors keep their vehicles quite well maintained.
Capturing Customer Insights (c) Personal factors
Most important aspect of personal factors is personality. As per American
Psychological Association http://www.apa.org/research/action/glossary.aspx,
personality is the unique psychological qualities of an individual that influence a variety
NOTES
of characteristics behaviour patterns (both overt and covert) across different situations
and over time. This has a relationship with stimuli a person gets exposed to. Please
revisit the discussion on value chain where we discussed about matching of values of
the marketer and the customer. Here, again that discussion becomes pertinent because a
customers personality has context to his values and personality to synchronize not
only the segmentation, targeting and positioning effort but also to sustain the purchase
related satisfaction and gain loyalty at large. For example, SUVs are preferred by specific
consumers/ customers whose personality matches with SUVs brand personality. Another
example would be colour of shirts or apparels wherein some people may like brighter
colours and some may prefer darker shades.
Then comes the age and life cycle stage of a consumer which have a direct bearing
and relationship with personality and its traits. For example, a person of 40 years of age
and single may behave differently than a person of same age having family with two
school going children and so on. Another fundamental aspect is occupation which
definitely influences personality on the one hand and on the other hand has a relationship
with the reference group as far as social factors are concerned. For example, have you
noticed teachers and academicians and on the other hand try and analyse sales executives
now look at government officials, bureaucrats, and also look at chefs of known restaurants
and hotels and the difference is just evident so does the approach of marketers towards
them.
(d)Psychological factors
Again referring to APA (http://apa.org/research/action/glossary.aspx) psychology
is the scientific study of the behaviour of individuals and then mental processes.
Psychological factors those must be understood properly are:
a. Perception
b. Learning
c. Memory and
d. Motivation
(a) Perception
Please refer to the definition of perception by American Marketing Association in
the preceding paragraphs and you would appreciate that stimuli is the key word in the
definition which in relation to ones prior beliefs and attitude make a person react
accordingly.
Now refer to 4Ps once again and we may see that product, price, place, promotion
may be a stimulus independently or conjointly. For example, when marketers call
products as green products or they say that it is organic food, when special discounts
are being offered or when special kind of pricing is being consistently kept for prolonged
Marketing Management : 64 time duration like Borolene has kept its pricing quite consistent like coke in USA has
kept in pricing quite consistent and have you herd of Zindagi ke saath bhi zindagi ke Capturing Customer Insights
baad bhi a key line by LIC especially for its policy called Jeewan Anand which suggests
a long term promise and sum assurance after maturity as well as after the life of assured.
(b) Learning NOTES
According to American Marketing Association dictionary according to Hilgard,
learning refers to more or less permanent change in behaviour that occurs as a result of
practice. It is a process by which an activity originates or is changed through reacting to
an incountered situation, but does not include those changes induced by maturation,
genetic response tendencies or temporary situations such as fatigue or drug influence. It
includes such activities as the learning of facts and skills, brands, jingles, purchase
behaviour, beliefs and attitudes.
(c) Memory
APA, http://apa.org/research/action/glossary.aspx says that Memory is the mental
capacity to encode, store and retrieve information.
(d) Motivation
There are several theories in association with motivation which have largely been Check Your Progress
used and implemented in the field of human resource management. For example, 1. Elaborate on Consumer
Maslows needs hierarchy theory which has large span of applicability and is also Behaviour with its
fundamentally associated with consumer behaviour as well, where in marketers tend to important aspects and
address the stage of consumer as per the categorization given by Maslow that a person factors.
has lower order and upper order needs and first he tends to fulfil physiological needs, 2. Elaborate on the factors
then safety needs, then social needs, then esteem needs and then self-actualization needs. influencing Consumer
Further some theorists add and have analysed that in some socio-cultural and individual Behaviour
circumstances the order may merge or even change. Some have found the relationship 3. Elaborate on the
of these needs with age as well but the larger context is that the understanding of such components of the
theories helps marketers on addressing consumers with a relevant combination of 4Ps. Psychological Factors
For example, some insurance products/ companies focus on safety and social needs of of Consumer Behaviour
their plans focus on esteem needs by saying sar utha kae jiyo
According to APA http:// www.apa.org/research/action/glossary.aspx, motivation
is the process of starting, directing and maintaining physical and physiological activities;
includes mechanics involved in preferences for one activity over another and the vigour
and persistence of responses.
Therefore in simplistic terms a consumer has to be motivated. For example: march
24, 2013 Sunday times life, page 3 an article under the subheading of travel trend called
quest for simple life reads about the increasing charm for rural tourism, it say that it is
a stress buster, put you in touch with your roots and so on. It motivates people who
desire for such changes/ wants in their lives.
3.7 Decision on Buying

Its admission season in India. As this is the month of March and for admission
every parent and student is looking for admission to some class within a school, from
Capturing Customer Insights one school to other and from school to college. How would one decide on joining a
particular class/ course in a college and a school? It goes like this:
a. Identification of need or recognition of problem as both of these are the aspects
related to each other. Hence admission (because of earning education) is the
NOTES
need or the problem is where to get good education. Remember good education
is a relative word and has to be defined by the consumer/customer.
b. How by evaluating the alternatives in terms of your own requirements,
behaviour (which may not even be known to you but would play a role in
your exposition) economic limitations and offerings available. For example
ambience, then faculty, then distance from home, then fee to be charged and
then teaching pedagogy may be the sequence which you monitor while
evaluating your alternatives. Remember all the attributes of behaviour and
factors influencing the same we have discussed till now would play a specific
role in reaching to the decision. Several models in various contexts can also
be referred to here, but context is always associated with reaching to a decision
and making best of the choices whereas marketer wishes to learn about how
consumer makes best of the choices?
I will be elaborating on consumer behaviour and buying decision process in later

units as well other courses where evaluation process would also be adequately dealt
with.
3.8 Summary
There are three types of research design at large:
a. Exploratory research design : This design is associated with situations where a
problem is not defined or a problem is identified and as we understand no prob-
lem no solution.
b. Descriptive research design : This design has a peculiar association with a de-
fined problem and need for understanding or observing or analyzing phenomenon
is there.
c. Causal research design : This design is associated with the generation of a cause
and monitoring of the effect i.e. generating a phenomenon to be understood along
with its effects.
Analysis : Now comes in the analysis part which requires tools (statistical and
analytical tools) software based or otherwise to be deployed and then interpretation to
be done.
Forecasting have an intense broad look at the discussion we have had about
marketing research till now and the key words those merge as the resultant are:
a. Direction and
b. Target and objectives
Capturing Customer Insights
3.9 Key Terms
Marketing research: Marketing research is the process or set of processes that
links the consumers, customers, and end users to the marketer through information NOTES
information used to identify and define marketing opportunities and problems; generate,
refine, and evaluate marketing actions; monitor marketing performance; and improve
understanding of marketing as a process. Marketing research specifies the information
required to address these issues, designs the method for collecting information, manages
and implements the data collection process, analyzes the results, and communicates the
findings and their implications.
It is the systematic gathering, recording, and analysis of qualitative and quantitative
data about issues relating to marketing products and services. The goal of marketing
research is to identify and assess how changing elements of the marketing
mix impacts customer behavior. The term is commonly interchanged with market
research; however, expert practitioners may wish to draw a distinction, in
that market research is concerned specifically with markets, while marketing research
is concerned specifically about marketing processes. Marketing research is often
partitioned into two sets of categorical pairs, either by target market:
Consumer marketing research, and
Business-to-business (B2B) marketing research
Or, alternatively, by methodological approach:
Qualitative marketing research, and
Quantitative marketing research
Consumer marketing research is a form of applied sociology that concentrates on
understanding the preferences, attitudes, and behaviors of consumers in a market-based
economy, and it aims to understand the effects and comparative success of marketing
campaigns. The field of consumer marketing research as a statistical science was
pioneered by Arthur Nielsen with the founding of the ACNielsen Company in 1923.
Thus, marketing research may also be described as the systematic and objective
identification, collection, analysis, and dissemination of information for the purpose of
assisting management in decision making related to the identification and solution of
problems and opportunities in marketing.
Source: http://en.wikipedia.org/wiki/Marketing_research
Reason: Reason is the capacity for consciously making sense of things,
applying logic, for establishing and verifying facts, and changing or justifying practices,
institutions, and beliefs based on new or existing information. It is closely associated
with such characteristically human activities as philosophy, science, language,
mathematics and art, and is normally considered to be a definitive characteristic of human
nature. The concept of reason is sometimes referred to as rationality and sometimes
as discursive reason, in opposition to intuitive reason.
Reason or reasoning is associated with thinking, cognition, and intellect. Reason,
Capturing Customer Insights like habit or intuition, is one of the ways by which thinking comes from one idea to a
related idea. For example, it is the means by which rational beings understand themselves
to think about cause and effect, truth and falsehood, and what is good or bad.
NOTES In contrast to reason as an abstract noun, a reason is a consideration which explains

or justifies some event, phenomenon or behaviour. The ways in which human beings
reason throughargument are the subject of inquiries in the field of logic.
Reason is closely identified with the ability to self-consciously
change beliefs, attitudes, traditions, and institutions, and therefore with the capacity for
freedom and self-determination.
Psychologists and cognitive scientists have attempted to study and explain how
people reason, e.g. which cognitive and neural processes are engaged, and how cultural
factors affect the inferences that people draw. The field of automated reasoning studies
how reasoning may or may not be modeled computationally. Animal
psychology considers the controversial question of whether animals can reason.
Source: https://en.wikipedia.org/wiki/Reason
Definition: A definition is a statement that explains the meaning of a term
(a word, phrase, or other set of symbols). The term to be defined is the definiendum.
The term may have many different senses and multiple meanings. For each meaning,
a definiens is a cluster of words that defines that term (and clarifies the speakers
intention). As an example: To successfully define the word Vegan, the definiendum
(the word Vegan itself) must be given a definiens (actually vegan has at least two
definiens: One is someone who avoids using animal products, and another definiens
is someone from a place called Vega, Norway).
A definition will vary in aspects like precision or popularity (e.g. globally, the
word Vegan rarely refers to the definiens someone from Vega, Norway). There are
also different types of definitions with different purposes and focuses (e.g. intensional,
extensional, descriptive, stipulative, and so on).
A chief difficulty in the management of definitions is the necessity of using other
terms that are already understood or whose definitions are easily obtainable or
demonstrable.
A dictionary definition typically contains additional details about a word, such as
an etymology and the language or languages of its origin, or obsolete meanings.
Source: http://en.wikipedia.org/wiki/Definition
Information: Information, in its general sense, is Knowledge communicated or
received concerning a particular fact or circumstance.Information cannot be predicted
and resolvesuncertainty. The uncertainty of an event is measured by its probability of
occurrence and is inversely proportional to that. The more uncertain an event is more
information is required to resolve uncertainty of that event. The amount of information
is measured in bits.
Marketing Management : 68 Example: information in one fair coin ip: log2(2/1) = 1 bit, and in two fair coin
flips is log2(4/1) = 2 bits. Capturing Customer Insights
Information, in its most restricted technical sense, is a sequence of symbols that
can be interpreted as a message. Information can be recorded as signs, or transmitted
as signals. Information is any kind of event that affects the state of a dynamic system. NOTES
Conceptually, information is the message (utterance or expression) being conveyed. The
meaning of this concept varies in different contexts. Moreover, the concept of information
is closely related to notions of constraint, communication, control, data, form,
instruction, knowledge, meaning, understanding, mental stimuli, pattern, perception,
representation, and entropy.
Source: http://en.wikipedia.org/wiki/Information
Marketing Opportunities: Newly identified need, want, or demand trend that a firm
can exploit because it is not being addressed by the competitors.
Source: http://www.businessdictionary.com/definition/market-opportunity.html
Problems: A problem is the relation between human will and reality. When will
and reality do not coincide, the resolution of this gap between reality and will is the
solution of the problem. A problem implies a desired outcome coupled with an apparent
deficiency, doubt or inconsistency that prevents the outcome from taking place.
Source: http://en.wikipedia.org/wiki/Problem
Designs: Design is the creation of a plan or convention for the construction of an
object or a system (as in architectural blueprints, engineering drawing, business
process, circuit diagrams and sewing patterns). Design has different connotations in
different fields (see design disciplines below). In some cases the direct construction of
an object (as in pottery, engineering, management, cowboy coding and graphic design)
is also considered to be design.
More formally design has been defined as follows.
(noun) a specification of an object, manifested by an agent, intended to
accomplish goals, in a particular environment, using a set of primitive components,
satisfying a set of requirements, subject to constraints;
(verb, transitive) to create a design, in an environment (where the designer operates)
Another definition for design is a roadmap or a strategic approach for someone to
achieve a unique expectation. It defines the specifications, plans, parameters, costs,
activities, processes and how and what to do within legal, political, social, environmental,
safety and economic constraints in achieving that objective.
Here, a specification can be manifested as either a plan or a finished product,
and primitives are the elements from which the design object is composed.
With such a broad denotation, there is no universal language or unifying
institution for designers of all disciplines. This allows for many differing philosophies
and approaches toward the subject (see Philosophies and studies of design, below).
The person designing is called a designer, which is also a term used for people
who work professionally in one of the various design areas, usually also specifying
Capturing Customer Insights which area is being dealt with (such as a fashion designer, concept designer or web
designer). A designers sequence of activities is called a design process. The scientific
study of design is called design science.
NOTES Designing often necessitates considering the aesthetic, functional, economic and
sociopolitical dimensions of both the design object and design process. It may involve
considerable research, thought,modeling, interactive adjustment, and re-
design. Meanwhile, diverse kinds of objects may be designed,
including clothing, graphical user interfaces, skyscrapers, corporate identities, business
processes and even methods of designing.
Source: http://en.wikipedia.org/wiki/Design

1. Why should a company attempt to emotionally engage its customers.
2. Why is it important for a company to study its environment?
3. What are the important requirements for commissioning a good research?
4. Discuss the difference between marketing research and MIS?
5. Discuss the usefulness of marketing research in understanding customers and
competitors?
6. It is always better to hire a professional marketing research firm rather than engaging
ones own staff for this purpose. Comment.
7. Distinguish between ad-ho research and continuous research?
8. Discuss types of continuous research methods that are adopted by companies?
9. For what type of data can the following prove to be useful:
I) Consumer panels? II) Retail audits?
10. Is continuous research better than ad-hoc research?
11. What is a research proposal? What are the contents of a research proposal? What
are the essential characteristics of an effective research proposal?
12. What is exploratory research? What are the various methods of carrying out
exploratory research?
13. Distinguish between qualitative and quantitative methods of MR?
14. How do companies establish initial contact with marketing research agencies?
15. Discuss the impact of technology on business.
16. How does the competitive environment affect business?
17. How can a company track changes in its social-cultural environment
18. Discuss the difference between microenvironment and macro environment?
19. How can companies incorporate technologies in their business models?
20. Discuss the following stages of an MR process:
Marketing Management : 70 a. Data analysis and interpretation
b. Report preparation and presentation Capturing Customer Insights
21. Differentiate between probability and nonprobability sampling methods? Under
what conditions should each of these methods be used?
22. Discuss various survey methods, illustrating the advantages and disadvantages of NOTES
each?
23. Discuss the impact of various economic forces on a company?
24. How do changes in socio-cultural forces affect businesses? Do some industries get
affected more easily than others due to changes in social-cultural factors?
25. Discuss some prominent changes in various demographic segments that have
affected businesses globally?
26. Explain the role of culture, social class and reference groups in influencing the
decision making process of a consumer?
27. In the Indian rural markets, consumers generally buy sachets / small packs of
FMCG products. This also facilitates the process of trial for companies that sell
their products to these customers. Traditionally, small, unorganized players
dominated this market. However, now MNCs is increasingly focusing on the rural
markets to increase their revenues. A regional player wants to find out what he
should do to tackle competition from large multinationals. What type of research
framework will you adopt for this regional player? Keep in mind the social, cultural
and economic background of the intended market while designing the research
framework?

Edition, Pearson India.
India
Reference Reading :
John Wiley & Sons.
York.
Connecting with Customers
UNIT 4 CONNECTING WITH
CUSTOMERS
NOTES
Structure
4.0 Introduction
4.1 Unit Objectives
4.2 Understanding Customers
4.3 Achievement of Satisfaction and Loyalty
4.4 Segmentation Targeting and Positioning
4.5 Basis of Segmentation
4.5.1 Geography
4.5.2 Demography
4.5.3 Psychography
4.5.4 Behavior
4.6 Business Market Segmentation
4.7 Summary
4.8 Key Terms
4.0 Introduction
To understand a consumer one has to understand consumer behaviour.

Then to understand a consumers behaviour or consumer behaviour in general
one has to understand what is behaviour and the factors constituting ones
behaviour and factors influencing behaviours.
Analysis of markets and segmentation is an art and necessity and the prime most
objective of the business is to look at the markets with the view those may be served best.
Therefore this unit tends to develop a view of the readers about why and how
markets should be segmented and what is targeting and positioning alongwith the fact
that how positioning plays a significant role in marketing management, market
development and market capitalization at large.
4.1 Unit Objectives

1. Define Segmentation
2. Explain Customer Satisfaction and Customer Loyalty.
3. Explain Segmentation based on Geography, Demography, Psychography & Connecting with Customers
Behavior.
4.2 Understanding Customers NOTES
Now consider organizations and institutions as the point of concern. Lets try and
differentiate them with the direct consumers. There may be the channel partners, industrial
organizations using the products to finish their own products to be marketed (like auto
manufacturers buying tyres), manufacturer who require products to produce new
products, hence called raw material buyers, buyers who purchase products in bulk to
complement their services like airlines purchasing food for passengers.
The fundamental difference from the discussions about understanding consumer
behaviour we have had until now with the customers we are referring to here lies in
a. Bulk purchase
b. Direct contact i.e. scope for discussion and negotiation
For example, an automotive manufacturer has to buy tyres for all its
products, and then the situation has few special characteristics:
(i) Quality of tyres would definitely affect the response of automotive user.
(ii) Tyre production/ supply have to be aligned with automotive production.
(iii) Prices have to be in accordance with the purchase volume.
(iv) Terms and conditions are to be negotiated.
Because of such sensitivities involved there would be dedicated buyers from the
side of the customers and negotiations would be on one-to-one basis.
Here, scenario would change a bit if the bulk buyer is a reseller of the products
where manufacturer would be involved in the process of reaching to the consumer or
the user but factors (i) to (iv) above would persist in one form or the other.
You may refer to one of the case studies called JAUSS POLYMERS to understand
the context of customer/ business buyer buying decision making process and supplier
buyer relationship wherein you would learn that through Jauss Polymers has been one
of the initial most companies in the field of PET business in India but still had to go for
a process where:
a. Buyers important concerns was that of they would be able to supply right
product with right price at the right time, because for example, if they are
supplying to say an FMCG company then the supply of that FMCG company
to the distributor, retailer and its customer would be dependent in this PET
(Polyethylene Triathlete) plastic bottle/ Jar or packaging supplier without
which you may not reach to the market.
b. On the other side there is a consideration for Jauss Polymers that they cannot
go as far as they can to various parts of the country because of the transportation
cost as PET packaging is low margin product and acquires larger space. Marketing Management : 73
Connecting with Customers c. Another consideration of Jauss Polymers is that if the orders of their buyers
change their orders would change too.
Therefore all the above mentioned considerations are involved in the buying
NOTES decision process which is not actually a one sided process, it also involves the limitations
of manufacturing on the side of the supplier as well.
Check Your Progress Not to mention customer search for the manufacturers is through primary markets
What is that a company contact is often through websites, exhibitions (which are very popular), trade meetings
should understand about and forums. Another analogy and example in information technology based solutions
customers and how should where in organization which develop IT based tools for example ERP (Enterprise
that be done? Resource Planning) have to concerned about the needs of the clients they serve in lieu
with the customer of their clients. For example, McDonalds has a great importance of
inventory turnover of their raw material which has strong support in terms of their IT
systems and definitely an association with business understanding of their business by
their IT solutions partner. McDonalds on the other hand analyses how well their IT
solutions supplier may be able to understand their complete value chain system and
supply chain system management.
E-procurement, e-technology, e-transactions or in totality e-commerce has become
pertinent. Where in e-made not only synchronizes the complete supply chain on the one
hand but also starting from need/ problem recognition to negotiations and association is
done through robust, reliable and safe because of the banking and financial institutions
acquiring robust and strong systems including reliable and relentless connectivity.
4.3 Achievement of Satisfaction and Loyalty

Lets start this discussion with few examples like: Scorpio, i-next, Geetapress,
Syntax, LIC, Narayan Hrudayalaya, Aravind Eye Care, Bata, VIP and so on (assignment
on this).
Read the history of these products and organizations and one realizes few
things i.e.
a. They did their marketing research well
b. They understood their customers and consumers well
c. They developed a suitable and specific combination of 4Ps while meticulously
segmenting and targeting their customers.
Lets elaborate with the help of two examples:
i) Scorpio : strong brand equity, regular self-propelled sales, equal preference
amongst all kinds of buyers where some of the peculiarities of multi utility vehicles
which Mahindra and Mahindra to produce earlier. As I fondly mention in some of my
classes that there was this grey coloured multi utility vehicle always shown in movies
especially in chase scenes when police and dacoits drove the vehicle alike. Was there
no option for army, police, government officers and dacoits as well other than choosing
this soft top multi utility vehicle or were they enjoying it and did not want to change it.
Or Mahindra and Mahindra thought that this popular vehicle should and would sell Connecting with Customers
forever. There were specific reasons associated with production and technology
compulsions on the one hand and on the other hand associated with continued and
effortless sales. The value chain was actually working well. But market scenarios started
NOTES
changing and options like Maruti Gypsy, then Tata Sumo, Toyota Qualis and others
which generated instant response came in.
Sudden a steep fall in demand instigated a process of rejuvenation where in
Mahindra and Mahindra focused on
a. Analysing and understanding buyer once again
b. Analysing and understanding customer once again
c. Simulating development of product
d. Rejuvenation of processes of production
e. Rejuvenation of business processes
f. Industry and market potential analysis as well
In totality while working on a new product complete value chain was analysed
and worked upon and a whole new combination of 4Ps emerged. Rest is history Scorpio
experienced roaring success.
ii) Syntax : you must have seen cemented water tanks on the roofs, periodically
being cleaned, maintained and worried about. Still some roofs they adorn these tanks.
Around three decades back syntax came in and today almost every roof has a black
plastic tank. Again methodical understanding of consumers and customers and complete
value chain augmentation led to the success.
These successes got converted into sustained success which is interpreted as
satisfaction and loyalty of customers.
Now look at this with the perspective of expectations. Customers/ buyers they
have expectations in the form of:
a. Needs
b. Imagination associated with those needs
c. Price they might / may pay, price they can pay, price they should pay and the
price they would pay.
I would elaborate on the difference of this may, can, should and would
later on somewhere in the units where I would refer to pricing aspects and
methods and other course as well.
d. Satisfaction they might earn out of the fulfilment of those needs. Now the
range of expectations to satisfactions has peculiarity in terms of when
expectations are not precisely known, because if expectations though are
rightly fulfilled satisfaction in any case would be earned, but the first question
comes down to
i) Knowing the expectations and
ii) Raising the fulfilling those expectations
Connecting with Customers Both of these aspects are very important in terms of the fact that if right expectations
are not understood and even if the customer/ buyer has latent expectations organizations
do not raise buyers expectations along with raising his offering level, value and capacity
then buyer might look for
NOTES
i) Alternative products and
ii) Substitute products which would raise the competition and shorten the
products life cycle as in the case of Mahindra and Mahindras multi utility
vehicle of cement overhead tank manufacturers or even ink pen manufacturers
if you would appreciate. Question ink pen and emergence of gel pen
Once the right expectations are known and met one may say that value has been
generated as in the case of syntax or Scorpio.
Then comes in customer/ buyer satisfaction to customer loyalty:
Sustained satisfaction which is a function of fulfilment of expectations and
association of marketer with the buyer for long time after the sales of the products.
For example you must have noticed Eureka Forbes people coming to you and
asking about which of the Eureka Forbes products you are using, since when and if you
are satisfied and yes then why not to buy more or replace the older ones with newer
ones.
The achievement is customer retention and addition because customer retention
is not only less expensive but also it facilitates customer addition saves on customer
development cost and supports brand equity enhancement. There are methods and modes
to analyse and calculate costs of customer acquisition and retention on the one hand
and analysing what customer got relatively in terms of derived value on the other hand
but the most important part is that it actually its happening and s being sustained which
I reiterate comes through commitment.
Question on commitment and all the units till now
Please revisit unit 1- in unit 1 for the discussion on commitment.
As we understand that satisfaction is achieved through matching of expectations
and offerings through right realization of value. But understanding this process of
achievement of satisfaction we would appreciate that it is relative in nature. Let me
elaborate a bit on this through literal / dictionary meaning of:
a. Relative: In comparison to something else or considered in relation to
something else.
b. Satisfaction: fulfilment of needs or wants
Meaning there by that satisfaction by a buyer/ customer is seen in comparison.
This comparison is with anything else which he would have achieved. That can be
indirect comparison or even not remotely connected. For example: Have you seen that
advertisement of Master card where they say price of X product is y and price of
product is B i.e. few things cannot be brought everything else its MasterCard. Another
Marketing Management : 76 important thing here is that satisfaction and loyalty has a relationship of perceived
quality of the product or service. Quality again is a matter of relative understanding Connecting with Customers
which depends on factors associated with options and competition. For example:
Health care provision: to understand this look at these conditions:
a. Health care perception of a very poor rural person would be different from NOTES
b. Health care perception of rural but affluent person
c. Health care perception of an urban poor person would be different from
Check Your Progress
d. Health care perception of an urban middle income person which would be
Demonstrate with
different from
examples about how
e. Health care perception of a very rich person. satisfaction and loyalty of
But this perception is not only related to buying capacity but also to services customers is achieved?
exposure, accessibility, awareness, concern and so on.
That is why you would appreciate that a concept of medicity is working well,
where health care is a matter if experience along with care.
Same analogy starts well with provision of primary education as well where after
a stage it becomes a matter of experience although learning may be more in case of
government schools for example in Madhya Pradesh a small school teaches its students
to write two different texts in two different languages with two hands simultaneously.
4.4 Segmentation Targeting and Positioning

Its a producers/ manufacturers/ marketers dream to reach out to all the living
human beings. Starting from that span which is attempted by organization like coke and
PepsiCo, Unilever and Proctor and Gamble, Nestle, Microsoft and many others a stage
comes in where organizations limit themselves to say a geography for example Indian
railways, Life insurance corporation of India, Tata salt, Brooke Bond India, Vodafone
India, Cello, Pens, Luxor Pens, Reynolds pens, Lego toys, Barbie dolls, McDonalds,
Dominos, Pizza Hut and so many. Then comes in where organizations touch/ address
demographics with in geographies for examples career reaching places where a
conditioning is required but also only to people with particular income buying capacity.
There is another situation wherein geography, income and age are considered together
for example Hondas bike Unicorn or Nike shoes or reebok shoes. Then there is an add
of gender to this combination for example Honda Activa. Now one may add on literacy
to this for example Management education from a premier B-school. Further addition
may be family life cycle stage for the products like premium segment sports utility
vehicles or SOTCs travel products. you further keep on adding factors like occupation,
then some psychographic aspects like lifestyle and personality along with behavioural
aspects like occasion benefits, loyalty, attitude etc. (Table 8.1 unit 8 Kotler) and you
may find products and organizations focusing on customer/ consumers through one or
through a suitable combination of aspects presented in the table.
Connecting with Customers Look at apple i-phone 5, Samsung Galaxy S III, Hush Puppies shoes, Dabang II
(the movie), Burfi (the movie), NDTV
24*7 News, Doordarshan National News and regional news, VIP luggage, Relaxo
NOTES chappal (bathroom sleepers), Wheel, Nirma, Zee Mount Litera schools, Delhi Public
Schools, Nurture group, city Manterson school (school having largest number of students
in one school in a city), Haldirams, Bikaner, Hero cycles, Dabur, Geeta press, Meru
Taxi, Parle G biscuits, Uncle chips, Tiger biscuits, Kurkure and the list is endless.
What do we learn through the process these products/ brands address us? We
learn that
a. By virtue of products itself i.e. its association with a particular customer
because of its own tangibility and usage it may or may not tend to address a
combination of aspects (in a customer and all the similar customers) from the
table. For example almost all the children in India would have played Ludo
one or the other time.
b. By virtue of production limitation
c. By virtue of distribution limitation
d. By virtue of competition in terms of alternatives and substitutes
e. By virtue of changing marketing environment including socio-political
conditions, value system, culture organizations choose to address a type of
customer in a particular number and this choice is led by dividing the
population and then possible customers into segments. Segmentation
according to the American marketing association (AMA), The process of
subdividing a market into distinct subsets of customers that behave in the
same way or have similar needs. Each subset may conceivably be chosen as
a market target to be reached with a distinct marketing strategy. The process
begins with a basis of segmentation-a product-specific factor that reflects
differences in customers requirements or responsiveness to marketing
variables (possibilities are purchase behaviour, usage, benefits sought,
intentions, preference, or loyalty). Segment descriptors are then chosen, based
on their ability to identify segments, to account for variance in the
segmentation basis, and to suggest competitive strategy implications
(examples of descriptors are demographics, geography, psychographics,
customer size, and industry). To be of strategic value, the resulting segments
must be measurable, accessible, sufficiently different to justify a meaningful
variation in strategy, substantial, and durable.
Hence most important aspect is that marketers have to identify the segment to be
targeted accurately. While targeting the segment as we have seen there may be several
approaches which a marketer may utilize. For example
a. Coke and Pepsi or Rin like products they exercise a mass market approach.
b. Then another example is McDonalds Mac Aloo Tikki burger which is the
outcome of a localized approach
c. Sensodyne like toothpastes go with niche marketing approach wherein they Connecting with Customers
target a very special customer with very specific needs.
d. Another approach is associated with customization of products for/according
to the individual customers needs. For example, DC i.e. Dileep Chabaria a
NOTES
car and automotive designing company customizes needs and desires.
Mahindra and Mahindra have a programme for interactivity vehicles with
customers in case of their product called Quadra. Check Your Progress
1. Explain Segmentation,
4.5 Basis of Segmentation Targeting and
Positioning?
2. Explain the factors
The process of subdividing a market into distinct subsets of customers that behave
associated with the
in the same way or have similar needs. Each subset may conceivably be chosen as a
process and criteria of
market target to be reached with a distinct marketing strategy. The process begins with
segmentation.
a basis of segmentation-a product-specific factor that reflects differences in customers
requirements or responsiveness to marketing variables (possibilities are purchase
behaviour, usage, benefits sought, intentions, preference, or loyalty). Segment descriptors
are then chosen, based on their ability to identify segments, to account for variance in
the segmentation basis, and to suggest competitive strategy implications (examples of
descriptors are demographics, geography, psychographics, customer size, and industry).
To be of strategic value, the resulting segments must be measurable, accessible,
sufficiently different to justify a meaningful variation in strategy, substantial, and
durable.
4.5.1 Geographical Segmentation
For example you must have heard a designation called vice president marketing
for Asia and the Pacific. Now this implies that someone is looking after marketing of a
product for a particular geographic area. Another example is of the banks having rural
banking divisions. As we have discussed in preceding paragraphs, you must acknowledge
and remember that in geographic segmentation, geography is a point of concentration
and then further aspects of demography, psychology and behaviour are included while
targeting a customer. For example some banks may segment markets into rural and
urban but then target rural farmers having land holding of more than 5 acres.
4.5.2 Demographic Segmentation
Factors of age, income, gender, family size, occupation and education, sequentially
or solely in combination or else are pertinent in this kind of segmentation. But as in the
case of geographic other factors get associated and target is formed. For example, have
you seen this advertisement on television saying why should boys have all the fun?
next an advertisement saying mein retire hounga apne kaam se recent advertisement
showing Rhithik Roshan holding mountain dew in his hands and overcoming a fear
of sea diving. All these messages are prominent by targeting particular age group and
the first one is targeting gender with it and so on.
Connecting with Customers 4.5.3 Psychographic Segmentation
According to the American Marketing Association it is defined as, the process of
dividing markets into segments on the basis of consumer life styles. Here as you can
observe psychological aspects of consumers/ customers are observed in association
NOTES
with demographic aspects we have discussed personality earlier as well but just to
reiterate its a combination of unique qualities (psychological) of an individual, now
these unique qualities within age group with some commonality are important to the
marketer for example movie choices may have commonality within an age, so may the
automotive choices and there can be a stark difference also expressing the uniqueness
of personality. For example, choice of books, courses, colours and designs.
Further, if lifestyle aspects can be combined with personality within a demography
you may appreciate why Bajaj auto in advertising and focusing on (sporty looks of a
bike, with efficiently a regular person with a need and desire of some excitement in
daily life) BAJAJ AD
Source
Marketers by segmenting the market through psychographic concentration not
only enable themselves with more specific approach of developing and delivering the
value but also this aspect makes them think more intensely on buying decision process
on the one hand and on the other hand marketers combine this understanding with their
expression i.e. promotion of the products. Remember marketing research and the process
of understanding the customer keeps working over here. For example, you may appreciate
that many institutions and universities not only market the course content but also that
their promises are centrally are conditioned the quality of food which is served in the
hostels, entertainment facilities which they have for the students and so on. But the
important factor in psychographic segmentation is proper classification of people. A
whole lot of categorization is available which organization combines with continuous
marketing research to reach to the conclusion.
Another important and interesting example is exterior wall paint colour choices,
Marketing Management : 80 recently on 30th march 2013 I was on a visit to Orissa and we travelled by road to many
of the places wherein a very interesting fact came up about the exterior colour choice of Connecting with Customers
people there i.e. people in Orissa like beautiful and bright colours to paint their home.
Now this interesting fact can be sued as a targeting tool for paint manufacturers and
marketers.
NOTES
4.5.4 Behavioural Segmentation
Please reiterate the definition of behaviour from the receding unit and try and
associate that definitional background with the table being referred to in this unit and
then recall the advertisements shown with marriages as backdrop for example luggage
advertisement, cosmetics, insurance and so on, where in marketers do understand and
analyse markets with the perspective of marriage kind of special occasion. You may try
and gather information on how many kinds of products have utilized marriages as the
significant occasional point and one appreciates that largely all the product categories
have associated themselves with this important occasion in India one or the other time.
Mobile marketers have initially banked upon utility aspect of products, then they focused
upon utility aspect of products, then they focused on attitudinal segmentation and so on.
Another exercise you may do is to analyse that if all the manufacturers at some or
the other stage of their products life cycle prioritize user aspect i.e. user status and usage
rate to benefits to attitudinal exposition and so on. For example, resort marketers
marketing resort membership focus on attitude, benefits and then usage aspects of their
services. Whereas, if you visit Lake Chilika in Orissa, worlds largest salt water lake the
boatman taking you for a pleasure trip would tell you benefits first and then mould his
proposition according to your attitudinal exposition all other segmentation aspects
remaining static. For example, he would judge by expressions that if you are first time
visitor and then would categorize you as a benefit maximizing user, furthering his
proposition with guaranteed dolphin view, crab view and sea mouth view, further looking
at you reaction on the proposition he would mould his offering with the time you would
spend and pleasure you would gain. To elaborate on this try and visit Orissa tourism
website (www.orissatourism.gov.in).
4.6 Business Market Segmentation
A little exercise on what segmentation characteristics the business markets would

require would comfortably suggest that all the aspects which we have distance would
have to be catered to but with a bifocal view:
a. While segmenting business markets a marketer has to see/ keep in view the
consumers, users, process on the end results of their buyers.
b. People who would negotiate would be involved with the purchase process
would be individuals having personality, age, experience and behavioural
exposition as such and they would be exercising all the traits in organizational
context: for example, when a marketer is supplying raw food to a five star
hotel he must not lose sight of the customer of that hotel and must analyse his
proposition with the perspective of chef he would be dealing with. Another Marketing Management : 81
Connecting with Customers example is when a book supplier markets books for young children to the
school, principal and librarian here apart from syllabus, utility and user
friendliness the marketer has to consider attitude and perspective of the
principal and teachers and behavioural aspects of the librarian.
NOTES
Put another example for the similar market in scholastic books, where they send
in attractive brochures and order forms to the homes of children through school authorities
and let the children choose books according to their interest while taking views of
parents on the utility of books and prices as well. Here, school is playing the role of a
model buyer where marketing is done through them while targeting the end user.
4.7 Summary
This Unit is about understanding customer and segregating them into segments
i.e. sgementation which is based on geography, demography, psychography and
behavioural. These segmentation plays an important role in targeting and then positioning
its product or service accordingly. The proper alignment and implementation results
into effective marketing which help a marketer to reach customers and increase
acceptability of their products and services.
4.8 Key Terms
Consumer Behaviour: Consumer behaviour is the study of individuals, groups, or

organizations and the processes they use to select, secure, and dispose of products,
services, experiences, or ideas to satisfy needs and the impacts that these processes
have on the consumer and society. It blends elements from psychology, sociology,
social anthropology and economics. It attempts to understand the decision-making
processes of buyers, both individually and in groups. It studies characteristics of
individual consumers such as demographics and behavioural variables in an attempt to
understand peoples wants. It also tries to assess influences on the consumer from groups
such as family, friends, reference groups, and society in general.
Customer behaviour study is based on consumer buying behaviour, with the
customer playing the three distinct roles of user, payer and buyer. Research has shown
that consumer behaviour is difficult to predict, even for experts in the field. Relationship
marketing is an influential asset for customer behaviour analysis as it has a keen interest
in the re-discovery of the true meaning of marketing through the re-affirmation of the
importance of the customer or buyer. A greater importance is also placed on consumer
retention, customer relationship management, personalisation, customisation and one-
to-one marketing. Social functions can be categorized into social choice and welfare
functions.
Each method for vote counting is assumed as social function but if Arrows
possibility theorem is used for a social function, social welfare function is achieved.
Some specifications of the social functions are decisiveness, neutrality, anonymity,
monotonicity, unanimity, homogeneity and weak and strong Pareto optimality. No social Connecting with Customers
choice function meets these requirements in an ordinal scale simultaneously. The most
important characteristic of a social function is identification of the interactive effect of
alternatives and creating a logical relation with the ranks. Marketing provides services
NOTES
in order to satisfy customers. With that in mind, the productive system is considered
from its beginning at the production level, to the end of the cycle, the consumer
(Kioumarsi et al., 2009). Check Your Progress
Explain the basic criteria
Source: https://en.wikipedia.org/wiki/Consumer_behaviour
of business market
Influencers: influence segmentation.
1. A power affecting a person, thing, or course of events, especially one that operates
without any direct or apparent effort: relaxed under the influence of the music; the
influence of television on modern life.
2. Power to sway or affect based on prestige, wealth, ability, or position: used her
parents influence to get the job.
3. A person who exerts influence: My parents considered my friend to be a bad
influence on me.
4. An effect or change produced by influence.
a. A determining factor believed by some to affect individual tendencies and
characteristics understood to be caused by the positions of the stars and planets
at the time of ones birth.
b. Factors believed to be caused by the changing positions of the stars and planets
in relation to their positions at the time of ones birth.
tr.v. influenced, influencing, influences
1. To produce an effect on by imperceptible or intangible means; sway.
2. To affect the nature, development, or condition of; modify. See Synonyms
at affect.
Idiom:
under the influence
Intoxicated, especially with alcohol.
Source: http://www.thefreedictionary.com/influencers

1. What is consumer behaviour? Why is it important to study consumer behavior?
2. What do you understand by buying role? Explain the different roles played by
consumers during the buying process?
3. Should a company serve all its loyal customers? Explain.
4. What are the differences between extended problem solving and limited problem
solving?
Connecting with Customers 5. Does a consumer play the same role in every purchase process? Explain the
dynamics of consumer roles in the decision making process?
6. What is customer portfolio, and how can it be managed effectively?
NOTES 7. The consumers attitude towards a product plays an important role in the evaluation
of alternatives. Explain.
8. What are the characteristics of habitual problem solving by consumers? What
strategies should a marketer adopt for such products where consumers exhibit
habit forming behavior?
9. Describe the relationship between consumer loyalty and profitability?
10. Discuss the significance of segmentation, targeting and positioning in a companys
marketing strategy?
11. How do customer centric companies build concern for their customers throughout
the company?
12. Are internally driven businesses geared to meet customer needs? Explain.

India
Reference Reading :
John Wiley & Sons.
York.
Building Strong Brands
UNIT 5 BUILDING STRONG
BRANDS
NOTES
Structure
5.0 Introduction
5.1 Unit Objectives
5.2 Positioning
5.2.1 Positioning Defined
5.3 Competition
5.4 Brand Identity
5.5 Brand Strength
5.6 Brand Equity
5.7 Product life cycle and positioning
5.8 Summary
5.9 Key Terms
5.0 Introduction
What would you say when someone makes you recall the name of Kodak, HMT
watches, Campa orange, Dalda, Bush TV, Texla, Dynora, Murphy radio, etc? You defi-
nitely would acknowledge the brand name which can be termed as that the brand has a
recall. But if some of such products like Ambassador Car from Hindustan motor which
one still marketed are offered to you! Would you buy one, you may not. Here comes in
an analogous relationship of brand recall, equity, product life cycle and positioning.
Readers must have heard the word brand with various references and contexts.
What is branding and how and why brands are built? What purpose does brand
development solves and achieves? This unit carries the objective of presenting brand
and branding with context to marketing.
5.1 Unit Objectives

1. Explain positioning, Competition & brand identity.
2. Describe Product Life Cycle & Positioning.
Building Strong Brands
5.2 Positioning
After segmenting and targeting a set of consumers/ user and customers comes in
NOTES positioning of products and services. It is imperative for us to understand that with
reference to the definition of positioning as per American Marketing Association (AMA)
which says:
5.2.1 Positioning is defined as
1. The way consumers, users, buyers, and others view competitive brands or types of
products. As determined by market research techniques, the various products are
plotted onto maps, using product attributes as dimensions. This use of product
positioning is perceptual, not necessarily valid as based on measured product
attributes. Historically, the competitive product positionings were based on sales
rank in the market, but this limited perception has long since given way to the full
range of product assessments, including psychological ones.
2. For new products, product positioning means how the innovator firm decides to
compare the new item to its predecessors. For the new item, the mental slates of
persons in the market place are blank; this is the only chance the innovator will
have to make a first impression. Later, after the introduction is over, the earlier
definition of positioning will take over, as persons make their own positioning
decisions.
3. For both new and established products, a products positioning may be combined
with a target segment to integrate the marketing tool decisions. Its earlier use
exclusively in advertising is no longer appropriate.
Its a matter of creating an image in the minds of consumers. Creating image
consists of few aspects like
a) Commitment standing by what you say
b) Suggesting that you are standing by your commitment
c) Creating messages about your commitment not just through integrated
marketing communication but also through every step throughout the value
chain (please refer to the value chain chart in preceding units)
d) Exercising and justifiably suggesting you commitment meets competition
which may be direct, indirect or out of pocket i.e. within the product category,
with substitutes. With unrelated products and with any product of service
extracting share of pocket of the customer.
e) Focusing on commitment and meeting competition relatively can be done
effectively through competition based view or through blue ocean approach
i.e. pushing the competition aside.
f) This further goes on to develop a product and a companys brand strength,
brand identity and brand equity.
g) This further reduces the cost of customer acquisition and companies may
focus on product innovation, marketing innovation, hence adding on value
for the customer and value response towards itself. Building Strong Brands
Let us take an example here to understand the above sequence.
Management education got impetus in India in mid 90s when authorities decided
that private institutions may come up and deliver MBA degree programme under NOTES
university affiliations. Basic guidelines about the infrastructure, course structure, content,
delivery, faculty and other elements were provided and periodically monitored. Identical Check Your Progress
institutions started getting developed. Admissions were taken centrally through university 1. Explain the basic
exams and also through relevant examinations as per the guidelines. Fee structure was understanding of the
same. But still different positioning with different brand equity evolved. Why? This is concept of Positioning.
because of the difference in the levels of commitment and the exposition of that 2. Define and elaborate
commitment. The institutions which could establish their brand equity could focus on Positioning.
product and service innovation. In due course institutions had to focus on competition,
direct, indirect with other courses and share of pocket expenses when customers think
of spending on other things other than MBA education. Although there is a less scope
of blue ocean approach here but not yet prominently utilized and executed by many
institutions. For referring to blue ocean strategy you may visit relevant websites and
text. But just to give you a context it says push the competition aside. It suggests to
pay attention on the non-user group and to eliminate, raise, reduce and create on the
aspects of an offering.
Now lets visit some important definitions by American Marketing Association
for
a. Competition
b. Brand identity
c. Brand strength
d. Brand equity
5.3 Competition
http://en.wikipedia.org/w/index.php? title= Competition &printable = yes

Merriam-Webster defines competition in business as the effort of two or more
parties acting independently to secure the business of a third party by offering the most
favorable terms. It was described by Adam Smith in The Wealth of Nations (1776)
and later economists as allocating productive resources to their most highly-valued
uses. and encouraging efficiency. Later microeconomic theory distinguished
between perfect competition and imperfect competition, concluding that no system of
resource allocation is more efficient than perfect competition. Competition, according
to the theory, causes commercial firms to develop new products, services and
technologies, which would give consumers greater selection and better products. The
greater selection typically causes lower prices for the products, compared to what the
price would be if there was no competition (monopoly) or little competition (oligopoly).
However, competition may also lead to wasted (duplicated) effort and to
Building Strong Brands increased costs (and prices) in some circumstances. For example, the intense competition
for the small number of top jobs in music and movie acting leads many aspiring musicians
and actors to make substantial investments in training which are not recouped, because
only a fraction become successful. Critics have also argued that competition can be
NOTES
destabilizing, particularly competition between certain financial institutions. Experts
have also questioned the constructiveness of competition in profitability. It has been
argued that competition-oriented objectives are counterproductive to raising revenues
and profitability because they limit the options of strategies for firms as well as their
ability to offer innovative responses to changes in the market. In addition, the strong
desire to defeat rival firms with competitive prices has the strong possibility of causing
price wars.
Three levels of economic competition have been classified:
1. The most narrow form is direct competition (also called category competition or
brand competition), where products which perform the same function compete
against each other. For example, one brand of pick-up trucks competes with several
other brands of pick-up trucks. Sometimes, two companies are rivals and one adds
new products to their line, which leads to the other company distributing the same
new things, and in this manner they compete.
2. The next form is substitute or indirect competition, where products which are close
substitutes for one another compete. For example, butter competes with margarine,
mayonnaise and other various sauces and spreads.
3. The broadest form of competition is typically called budget competition. Included
in this category is anything on which the consumer might want to spend their
available money. For example, a family which has $20,000 available may choose
to spend it on many different items, which can all be seen as competing with each
other for the familys expenditure. This form of competition is also sometimes
described as a competition of share of wallet.
In addition, companies also compete for financing on the capital markets (equity
or debt) in order to generate the necessary cash for their operations. An investor typically
will consider alternative investment opportunities given his risk profile and not only
look at companies just competing on product (direct competitors). Enlarging the
investment universe to include indirect competitors leads to a broader peer universe of
comparable, indirectly competing companies.
Competition does not necessarily have to be between companies. For example,
business writers sometimes refer to internal competition. This is competition within
companies. The idea was first introduced by Alfred Sloan at General Motors in the 1920s.
Sloan deliberately created areas of overlap between divisions of the company so that
each division would be competing with the other divisions. For example,
the Chevy division would compete with the Pontiac division for some market segments.
The competing brands by the same company allowed parts to be designed by one division
and shared by several divisions, for example parts designed by Chevy would also be
used by pontiac. Also, in 1931, Procter & Gamble initiated a deliberate system of internal
brand-versus-brand rivalry. The company was organized around different brands, with Building Strong Brands
each brand allocated resources, including a dedicated group of employees willing to
champion the brand. Each brand manager was given responsibility for the success or
failure of the brand, and compensated accordingly. This is known as intra-brand
NOTES
competition.
Finally, most businesses also encourage competition between individual employees.
An example of this is a contest between sales representatives. The sales representative
with the highest sales (or the best improvement in sales) over a period of time would
gain benefits from the employer.
Shalev and Asbjornsen also found that success (i.e. the saving resulted) of reverse
auctions correlated most closely with competition. The literature widely supported the
importance of competition as the primary driver of reverse auctions success. Their
findings appear to support that argument, as competition correlated strongly with the
reverse auction success, as well as with the number of bidders.
It should also be noted that business and economic competition in most countries is
often limited or restricted. Competition often is subject to legal restrictions. For example,
competition may be legally prohibited, as in the case with a government monopoly or
a government-granted monopoly. Tariffs, subsidies or other protectionist measures may
also be instituted by government in order to prevent or reduce competition. Depending
on the respective economic policy, pure competition is to a greater or lesser extent
regulated by competition policy and competition law. Another component of these
activities is the discovery process, with instances of higher government
regulations typically leading to less competitive businesses being launched.
Competition between countries is quite subtle to detect, but is quite evident in
the world economy. Countries compete to provide the best possible business environment
for multinational corporations. Such competition is evident by the policies undertaken
by these countries to educate the future workforce. For example, East Asian economies
such as Singapore, Japan and South Korea tend to emphasize education by allocating a
large portion of the budget to this sector, and by implementing programmes such as gifted
education.
5.4 Brand Identity
http://en.wikipedia.org/w/index.php?title=Brand&printable=yes Brand identity

The outward expression of a brand including its name, trademark,
communications, and visual appearance is brand identity. Because the identity is
assembled by the brand owner, it reflects how the owner wants the consumer to perceive
the brand and by extension the branded company, organization, product or service.
This is in contrast to the brand image, which is a customers mental picture of a brand. The
brand owner will seek to bridge the gap between the brand image and the brand identity.
Effective brand names build a connection between the brand personality as it is Marketing Management : 89
Building Strong Brands perceived by the target audience and the actual product/service. The brand name should
be conceptually on target with the product/service (what the company stands for).
Furthermore, the brand name should be on target with the brand demographic. Typically,
sustainable brand names are easy to remember, transcend trends and have positive
NOTES
connotations. Brand identity is fundamental to consumer recognition and symbolizes
the brands differentiation from competitors.
Brand identity is what the owner wants to communicate to its potential consumers.
However, over time, a products brand identity may acquire (evolve), gaining new
attributes from consumer perspective but not necessarily from the marketing
communications an owner percolates to targeted consumers. Therefore, brand
associations become handy to check the consumers perception of the brand.
Brand identity needs to focus on authentic qualities real characteristics of the
value and brand promise being provided and sustained by organizational and/or
production characteristics.
5.5 Brand Strength
http://en.wikipedia.org/w/index.php?title=Brand_strength_analysis&printable=yes
Brand strength analysis
From Wikipedia, the free encyclopedia
Brand strength analysis describes efforts to determine the strength a brand has
compared with its competitors.
5.6 Brand Equity
http://en.wikipedia.org/w/index.php?title=Brand_equity&printable=yes
Brand equity
Brand equity is a phrase used in the marketing industry which describes the value
of having a well-known brand name, based on the idea that the owner of a well-known
brand name can generate more money from products with that brand name than from
products with a less well known name, as consumers believe that a product with a well-
known name is better than products with less well known names.
Some marketing researchers have concluded that brands are one of the most
valuable assets a company has, as brand equity is one of the factors which can increase
the financial value of a brand to the brand owner, although not the only one. Elements
that can be included in the valuation of brand equity include (but not limited to): changing
market share, profit margins, consumer recognition of logos and other visual
elements, brand language associations made by consumers, consumers perceptions of
Marketing Management : 90 quality and other relevant brand values.
Consumers knowledge about a brand also governs how manufacturers and Building Strong Brands
advertisers market the brand. Brand equity is created through strategic
investments incommunication channels and market education and appreciates
through economic growth in profit margins, market share, prestige value, and
NOTES
critical associations. Generally, these strategic investments appreciate over time to
deliver a return on investment. This is directly related to marketing ROI. Brand equity
can also appreciate without strategic direction. A Stockholm University study in 2011
documents the case of Jerusalems city brand. The city organically developed a brand,
which experienced tremendous brand equity appreciation over the course of centuries
through non-strategic activities. A booming tourism industry in Jerusalem has been the
most evident indicator of a strong ROI.
Brand equity is strategically crucial, but famously difficult to quantify. Many
experts have developed tools to analyze this asset, but there is no universally accepted
way to measure it. As one of the serial challenges that marketing professionals and
academics find with the concept of brand equity, the disconnect between quantitative and
qualitative equity values is difficult to reconcile. Quantitative brand equity includes
numerical values such as profit margins and market share, but fails to capture qualitative
elements such as prestige and associations of interest. Overall, most marketing
practitioners take a more qualitative approach to brand equity because of this challenge.
In a survey of nearly 200 senior marketing managers, only 26 percent responded that
they found the brand equity metric very useful
An important digression about competition:
One must understand that competition is inevitable because of the reason that
there is no segment which is not simultaneously addressed by more than one product/
company. For example, a family may think in terms of buying LED high definition
television or they may choose to take a package tour to Bangkok. Depending upon the
attractiveness of 4Ps combination a company may produce it may think in terms of
developing its market and enhancing its market share. There are few important factors
related to this fact:
a. How do you acknowledge your competition?
b. How do you measure the competition?
c. How do you monitor the competition?
A relevant exercise on this gives several models and tolls like BCG Matrix to
acknowledge your own situation and then there are models like:GE Nine Cell Matrix
and Porters Five Forces Model to acknowledge competition. Measuring competition
can be simplistically against the potential of the category then including substitutes and
then if one may include unrelated products as well. Further analysis of ones own strength
has to be done; here porters five forces model is equipped to guide the measurement
criterion and analysis- reference and chart description here.
If an organization/ company realizes that it is capable of committing resources
where it
Building Strong Brands a. Can develop and lead the market
b. Expand the market
c. Focus on direct, indirect as well as unrelated competition then
NOTES
Threat of
new
entrants

Bargaining COMPETITIVE Bargaining
power of
suppliers
RIVALRY power of
Buyers

Threat of
substitute
Products
Check Your Progress http://www.google.co.in/imgres?imgurl= http://vectorstudy.com/wp-content /gallery/

1. Define and elaborate managementtheories /porters_five_forces.png&imgrefurl= http://vectorstudy.com/
Competition. management-theories /porters-five-forces&h=600&w=800&sz=115&tbnid=OYA68-
2. Define and elaborate KxEJHwUM:&tbnh=90&tbnw=120&zoom=1&usg=__3dE6_wSx-
Brand Equity. G6UZJX0AYhSDQEfIe4= &docid= JOfXB3FgFkeVxM&sa= X&ei=
eZWwUfHfDI3JrAfokYHYBw&sqi= 2&ved= 0CDoQ9QEwAg&dur =365
It may analyse and measure competition in terms of complete market potential.

For example, apple i-phones or Samsung galaxy. But if a company or product has limited
resources to commit then it may choose to focus only on direct competition and that too
for a shorter span of time where it may acknowledge itself as a follower of the leader for
example, several footwear marketers who choose to keep their combinations of 4Ps just
right to address to address the leader. Sometimes even the leader wishes to focus on
direct competition but that may be harmful in a particular time span for example Kodak
in the end extracted itself from camera business by announcing fall.
Here again it is important to know that even of the company is following blue
ocean approach it may face competition if it does not keep on pushing the competition
aside.
Relevant acknowledgement of where a product stands, along with relevant
competitors analysis, then relevant measurement tools generate appropriate monitoring
which dont let one die like a course like MCA (Master of Computer Application),
Marketing Management : 92 Kodak cameras, Shaving foams or struggle like dishwashers, mopeds, mosquito nets,
landlines, pedestal fans, ink pens even companies like Yahoo. Building Strong Brands
Brand equity, Product life cycle and positioning:
What would you say when someone makes you recall the name of Kodak, HMT
watches, Campa orange, Dalda, Bush TV, Texla, Dynora, Murphy radio, etc? You NOTES
definitely would acknowledge the brand name which can be termed as that the brand
has a recall. But if some of such products like Ambassador Car from Hindustan motor
which one still marketed are offered to you! Would you buy one, you may not. Here
comes in an analogous relationship of brand recall, equity, product life cycle and
positioning.
5.7 Product Life Cycle and Positioning

A concept given by Theodore Levitt in Harvard Business Review (HBR) article Check Your Progress
titled Exploit the Product Life Cycle published in year 1965 says AMA that Define and elaborate
1. (Product development definition) (from biology) the four stages that a new Product Life Cycle.
product is thought to go through from birth to death: introductory, growth, maturity,
and decline. Controversy surrounds whether products do indeed go through such cycles
in any systematic, predictable way. The product life cycle concept is primarily applicable
to product forms, less to product classes, and very poorly to individual brands. 2.
(Strategic marketing definition) this describes the stages in the sales history of a product.
The product life cycle (PLC) has four premises: (1) that products have a limited life; (2)
that product sales pass through distinct stages, each stage having different implications
for the seller; (3) that profits from the product vary at different stages in the life cycle;
and (4) that products require different strategies at different stages of the life cycle. The
product life cycle has four stages: (1) introduction-the slow sales growth that follows
the introduction of a new product; (2) growth-the rapid sales growth that accompanies
product acceptance; (3) maturity-the plateauing of sales growth when the product has
been accepted by most potential buyers; and (4) decline-the decline of sales that results
as the product is replaced (by a substitute) or as it goes into disfavour.
This acknowledges- one most important aspect i.e. growth in the number of
consumers and users. Sometimes, the industry growth potential if matches properly the
product keeps on growing for example saving bank deposit of State Bank of India,
money back policies of LIC, Colgate toothpaste, Bata shoes (naughty boy school shoes).
Sometimes industry does not grow all along but product keeps on doing well and the
number of customers keeps on growing. For example, Titan watches. As Levitt suggests
life cycle stages are inevitable but how well they are steered depends upon the timely
moves and strategies of the company which are related to
a. Right market analysis
b. Potential analysis
c. Competition analysis
and augmentation in offerings or 4Ps combination at large converting it into brand Marketing Management : 93
Building Strong Brands equity. Here comes in the role of positioning and manoeuvring of positioning at different
life cycle stages. As discussed before also for example MBA programme was positioned
as a career advancer and job getter by all the institutions individually or even separately
hence putting into a question mark as a knowledge provider. When it reached to a
NOTES
maturity level where admission seekers stabilized or started reaching back slowly, then
few of the institutions repositioned it as status getter especially for small city students
who now look at it with neither as knowledge providing course nor a placement provider
course.
But the brighter side is that because of the fact that established and excellence
pursuing institutions did not increase their intake at large and these premier institutions
slightly augmented their positioning as best job opportunity providers along with their
delivery excellence, they are being seen as life changers which is capitalized upon by
entrance coaching providers who provided themselves rightly to achieve higher number
of students/ customers through the brand equity of premier MBA/ management degree
programme institutions.
Hence to be concluded here that your positioning is what your customer looks for
and if it is not right as per the perceive target segment or if not maintained during course
of different life cycle stages or of not augmented well in time as per the need of each life
cycle stage then would let loose the brand equity which moves a product towards decline.
Now, lets reinvent the product life cycle concept with its details as suggested by
the author as I would be associated the specificities of a product life cycle with all the
4Ps which would be discussed one by one onwards.
Product life cycle in detail
PRICE
INTRODUCTION
DEVELOPMENT
MATURITY AND
SITUATION
GROWTH
PROFIT
DECLINE
LOSS TIME
Just to add to the detailed description of product life cycle we have has let me give
you an example of one of the worlds largest newspaper Dainik Jagaran with the
perspective of a products life cycle. Dainik Jagaran got initiated with a city based
circulation. Initial phase required a focus on circulation where in reaching the reader at
the right time in the days when distribution was an issue was important. News and
content had to be maintained, production was a tough call because of the technology.
Another important aspect is the printing cost because of the reason that the paper i.e.
newsprint is costly and prices had to be kept low to enhance circulation hence
advertisements had to be brought in to offset this cost and to earn profit, here agencies
have to be dealt with. Because of the localized readership/ circulation larger advertising
could not be achieved, hence circulation had to be enhanced. Situation till this stage is
termed as Inception stage. Then came the next phase when circulation and readership
was enhanced by focusing on other Hindi reading areas, here it is very important to Building Strong Brands
understand that a newspaper has consumers as readers and customers as advertisers and
secondary customers as advertising agencies. Number of readers, advertisers and agencies
had to be increased through enhanced circulation.
NOTES
Thus came in as a growth phase. Now came in a situation when the competition
started becoming intense because of many other competitors like Amar Ujala, Hindustan
and others growing though the readership not growing so much because of the English
dailies on the one hand increasing their foothold and television and internet increasing
its footholds. Here readership proportionately got dipped in comparison to the growth
potential which you may call as saddle effect (Chandrasekaran and Tellis (2011). Then
came in strategies further enhancing the readership and circulation by focussing on
content and advertising simultaneously while focusing in larger and genuinely new
content and expansion in whole of the Hindi belt which enabled Dainik Jagaran to
become one of the largest read newspaper. Here it is growth phase continued. Then has
to come saturation or maturity phase where in number of readers have to get stagnated
and advertising revenue too. This may lead to decline. There are other very important
aspects during every phase to be understood and considered:
a. Utilization of technology to increase quality production required by enhanced
circulation.
b. Promotion of the product itself, to develop, and establish the brand equity as
Dainik Jagran did, and called itself patra hi nahin mitra bhi.
c. Adding relevant supplements like Sunday, employment and others.
d. Adding avenues for getting more news
e. Bring product differentiation enhance the growth phase because as discussed
the saddle effect when comes in has to be dealt with strong life extending
product differentiation which not only averts competition but also keeps away
the maturity.
Sometimes maturity apparently comes because a products sales saturates due to a
reduction in the enthusiasm of the customer (especially non user) towards the product
and customer/ consumer acquisition becomes costlier, hence the requirement for a newer
version maintaining similar production, distribution and other aspects of value chain.
5.8 Summary
Its a matter of creating an image in the minds of consumers. Creating image
consists of few aspects like
a) Commitment standing by what you say
b) Suggesting that you are standing by your commitment
c) Creating messages about your commitment not just through integrated marketing
communication but also through every step throughout the value chain (please refer to
the value chain chart in preceding units) Marketing Management : 95
Building Strong Brands d) Exercising and justifiably suggesting you commitment meets competition which
may be direct, indirect or out of pocket i.e. within the product category, with substitutes.
With unrelated products and with any product of service extracting share of pocket of
the customer.
NOTES
e) Focusing on commitment and meeting competition relatively can be done
effectively through competition based view or through blue ocean approach i.e. pushing
the competition aside.
f) This further goes on to develop a product and a companys brand strength,
brand identity and brand equity.
This further reduces the cost of customer acquisition and companies may focus on
product innovation, marketing innovation, hence adding on value for the customer and
value response towards itself.
5.9 Key Terms
Brand: Brand is the name, term, design, symbol, or any other feature that iden-
tifies one sellers product distinct from those of other sellers[1] Initially, Branding was
adopted to differentiate one persons cattle from anothers by means of a distinctive
symbol burned into the animals skin with a hot iron stamp, and was subsequently used
in business, marketing and advertising. A modern example of a brand is Coca Cola which
belongs to the Coca-Cola Company.
A brand is often the most valuable asset of a corporation. Brand owners manage
their brands carefully to create shareholder value, and brand valuation is an important
management technique that ascribes a money value to a brand, and allows marketing
investment to be managed (e.g.: prioritized across a portfolio of brands) to maximize
shareholder value. Although only acquired brands appear on a companys balance sheet,
the notion of putting a value on a brand forces marketing leaders to be focused on long
term stewardship of the brand and managing for value.
The word brand is often used as a metonym, referring to the company that is
strongly identified with a brand.
Check Your Progress
Marque or make are often used to denote a brand of motor vehicle, which may be
Define Product Life Cycle
distinguished from a car model. A concept brand is a brand that is associated with an
Correlatively.
abstract concept, like breast cancer awareness orenvironmentalism, rather than a spe-
cific product, service, or business. A commodity brand is a brand associated with
a commodity. Got milk? is an example of a commodity brand.
Source: http://en.wikipedia.org/wiki/Brand
Product life Cycle: Product life cycle is a business analysis that attempts to iden-
tify a set of common stages in the life of commercial products, for example, introduc-
tion, promotion, growth, maturity and decline.
Source: http://en.wikipedia.org/wiki/Product_lifecycle
Positioning: In marketing, positioning is the process by which marketers try to Building Strong Brands
create an image or identity in the minds of their target market for its product, brand, or
organization.
Re-positioning involves changing the identity of a product, relative to the iden- NOTES
tity of competing products.
De-positioning involves attempting to change the identity of competing prod-
ucts, relative to the identity of your own product.
The original work on positioning was consumer marketing oriented, and was not
as much focused on the question relative to competitive products as on cutting through
the ambient noise and establishing a moment of real contact with the intended recipi-
ent. In the classic example of Avis claiming No.2, We Try Harder, the point was to
say something so shocking (it was by the standards of the day) that it cleared space in
your brain and made you forget all about who was #1, rather than making some philo-
sophical point about being hungry for business.
Source: http://en.wikipedia.org/wiki/Positioning_(marketing)

1. Define and Explain the term Branding with examples.
2. Define branding. State any four advantages of branding.
3. A company in the consumer durables industry has just added an electric, cordless
broom to its product line & has approached you for its positioning. The product is
targeted at middle income households & is priced Rs. 2200. The company is a
leader in its product lines. Work out a positioning strategy & its rationale for this
wonderful product.

India
Reference Reading :
John Wiley & Sons.
York. Marketing Management : 97
Shaping the Market Offerings
UNIT 6 SHAPING THE MARKET
OFFERINGS
NOTES
Structure
6.0 Introduction
6.1 Unit Objectives
6.2 A composite view of products and services
6.2.1 Product by Definition
6.2.2 Definition of Product by American Marketing Association
6.2.3 Services by Definition
6.3 Classification and attributes of products
6.3.1 Classification and attributes differentiation
6.4 Differentiation and the 4Ps
6.5 Steering the product life
6.6 Product hierarchy
6.7 Product system and Mix
6.8 Packaging
6.9 Labeling
6.10 Warranties
6.11 Guarantees
6.12 A view of services as offerings
6.13 Pricing
6.13.1 Price and quality Perception
6.13.2 Broader process of setting prices and few types of prices
6.13.3 Some important pricing methods
6.14 Summary
6.15 Key Terms
6.0 Introduction
Product by definition is a bundle of attributes/ features, functions, benefits and

(uses) capable of exchange or use usually a mix of tangible and intangible forms. Thus
a product may be an idea, a physical entity (a good), or a service or any combination of
three. It exists for the purpose of exchange in satisfaction of individual and organiza-
Marketing Management : 98 tional objectives.
a) Mark up pricing Shaping the Market Offerings
(Source: http://www.marketingpower.com/_layouts/Dictionary.aspx?dLetter=M)
1. (Pricing Definition) The amount of increase in price over total unit costs.
2. (Retailing Definition) The difference between merchandise cost and the re- NOTES
tail price. It is also referred to as markon.
3. The increase in the retail price after the initial markup percentage has been
applied, but before it is placed on the selling floor.
b) Target return pricing
(Source: http://en.wikipedia.org/wiki/Rate_of_return_pricing)
Target rate of return pricing is a pricing method used almost exclusively by mar-
ket leaders or monopolists. You start with a rate of return objective, like 5% of invested
capital, or 10% of sales revenue. Then you arrange your price structure so as to achieve
these target rates of return. For example, assume a firm invests $100 million in order to
produce and market designer snowflakes, and they estimate that with demand for de-
signer snowflakes being what it is, they can sell 2 million flakes per year. Further, from
preliminary production data they know that at that level of output their average total
cost (ATC) is $50 per flake. Total annual costs would be $100 million (2 million units
at $50 each). Next, management decides they want a 20% return on investment (ROI).
That works out to be $20 million (20% of a $100 million investment). Profit margin will
need to be $10 dollars per flake ($20 million return over 2 million units). So the price
must be set at $60 per designer flake ($50 costs plus $10 profit margin). Similar calcu-
lations will determine price based on rate of return to sales revenue.
An unusual consequence of this pricing model is that to keep the target rate of
return constant, the firm will have to continuously be changing its price as the level of
demand changes. This can be seen in the diagram below. Based on market demand
expectations, the firm estimates it will be operating at 70% capacity. Given its produc-
tion function and cost structure, it knows its average total costs at that output level will
be represented as point A . If its predetermined rate of return requirement is amount A,
B, then it will set its price at P*. Because profit is equal to (P-ATC)*Q, then their total
profit will be defined by area P*, B, A, P70%.
c) Received value pricing / Perceived value pricing
(Source: http://www.marketingpower.com/_layouts/Dictionary.aspx?dLetter=P)
A method of pricing in which the seller attempts to set price at the level that the
intended buyers value the product. It is also called value-in-use pricing or value-ori-
ented pricing.
d) Value pricing
(Source: http://www.marketingpower.com/_layouts/Dictionary.aspx?dLetter=V)
A method of setting prices based upon the perceived value the product gives a
specific consumer or group of consumers.
This unit presents product and services with the perspective of personality and Marketing Management : 99
Shaping the Market Offerings association with the customers. What are the products and services by definition and
conceptually as well and how understanding these concepts helps in effective market-
ing is the prime objective of this unit.
NOTES
6.1 Unit Objectives
1. Define Product, Service & Product Hierarchy.
2. Describe Product System & Product Mix.
3. Define Packaging, Labeling, Warranties & Guarantees and Pricing.
6.2 A Composite View of Products and Services
6.2.1 Product by Definition

Product by definition is a bundle of attributes/ features, functions, benefits and
(uses) capable of exchange or use usually a mix of tangible and intangible forms. Thus
a product may be an idea, a physical entity (a good), or a service or any combination of
three. It exists for the purpose of exchange in satisfaction of individual and organizational
objectives.
6.2.2 Definition of Product by American Marketing
Association
Another definition of Product by AMA defines service as, Occasional usage
Check Your Progress today implies a definition of product as that bundle of attributes for which the exchange
1. Conceptually define or use primarily concerns the physical or tangible form, in contrast to a service, in
products and service. which the seller, buyer, or user is primarily interested in the intangible. Though to
2. Exactly define products speak of products and services is convenient, it leaves us without a term to apply
and service as per to the set of the two combined. The term for tangible products is goods, and it should
American Marketing be used with services to make the tangible/ intangible pair, as subsets of the term product.
Association Definition 6.2.3 Services by Definition
Service by definition is AMA definition of service defines it as, 1. Products,
such as a bank loan or home security, that is intangible or at least substantially so. If
totally intangible, they are exchanged directly from producer to user, cannot be
transported or stored, and are almost instantly perishable. Service products are often
difficult to identify, because they come into existence at the same time they are bought
and consumed. They comprise intangible elements that are inseparable; they usually
involve customer participation in some important way; they cannot be sold in the sense
of ownership transfer; and they have no title. Today, however, most products are partly
tangible and partly intangible, and the dominant form is used to classify them as either
goods or services (all are products). These common, hybrid forms, whatever they are
called, may or may not have the attributes just given for totally intangible services.
2. Services, as a term, is also used to describe activities performed by sellers and
others that accompany the sale of a product and aid in its exchange or its utilization Shaping the Market Offerings
(e.g., shoe fitting, financing, an 800 number). Such services are either presale or post-
sale and supplement the product, not comprise it. If performed during sale, they are
considered to be intangible parts of the product.
NOTES
As we observe a product has form, value associated with usage (economic value),
perceived value, and derived value in association with value structure and system of the
consumer. A product also has personality it gets evolved, it has all the properties which
may be felt, observed, experienced or may be said that products have expressible
properties. For example, bottled water can be expressed as pure, Tea as Taaza, Mango
drink as Maaza, Kerala as Gods own country. People get emotionally associated with
their vehicles; people call their two wheelers as their horse, cars as their queen, house as
their dream. Please refer to the figure below that is suggestive of product levels and
customer value hierarchy as per (reference Kotler).
Potential product
Augmented product
Expected product
Basic product
Core
benefit
Fig. 6.1 : Different levels of Product

For example MBA programme as a product at its core or as one of its core benefits
profits education, or if you may call it qualification.
Then the core benefits turn into a basic product and MBA programme as a
basic product has syllabus, standard procedures, books, faculty, infrastructure
along with regular classes, delivery, basic infrastructure etc. one may say
basically a product should fulfil its fundamental criterion for example tea
should taste like tea. Management education on MBA programme should be
associated with learning and delivering business administration.
Next is expected product. What does a buyer expects out of MBA programme.
He may expect qualified and motivated faculty, good collection of books and
journals, software and hardware, ambience and infrastructure, relevant
exposure and finally a job out of it.
Now augmented product: which means how marketer would exceed
customers expectations? He may provide assured jobs with handsome salary,
continued industry interaction, wonderful infrastructure, and world class
faculty and so on. Marketing Management : 101
Shaping the Market Offerings Then the authors as in the figure and text mentions about the potential product,
which implies whatever that may possibly be offered in the form of a product.
Now the question is how do you space MBA programme in this customer value
NOTES hierarchy? Or should you space a product for example a book on this hierarchy,
medicines, insurance policy for a rural market, detergent for a BOP market, a pressure
cooker for BOP markets, health care for rural BOP markets (BOP is bottom of the
pyramid).
6.3 Classification and Attributes of Products

Lets visit the definition again and understandably the reference of durability,
tangibility, non-durability, non-tangibility comes in with the perspective of a product
itself.
If you look at common perspective then convenience, shopping or speciality or
other forms of usage may come to fore for classifying goods.
There is another classification related to the usage of goods in the industrial markets
where
a. Where those goods would be used
b. The process through which those goods would be used and
c. The end result those goods would produce
becomes the basis for the classification of such goods. Supplies, maintenance
equipment and goods.
Now going back to the product and consumer based view of the goods we must
remember few points:
a. Durability and non-durability are relative aspects and change according to
the tendency, perception, experiences and culture of the consumers. For
example some of the goods which have been seen as durables have started
coming in or being used as disposables as well, as disposable cameras,
disposable shoes, one time raincoats and so on.
But largely durability and non-durability is associated with time factor.
b. Tangibility and intangibility is as per the literal meaning associated with
physical form and services in association with goods or alone belong to
intangible classification.
From the consumers point of view: General shopping approach and special
shopping approach along with the usage and analysis i.e. process to purchase classified
goods onto shopping, convenience or speciality goods. For example, a newspaper may
be a convenience good, clothes can be shopping goods, and video camera can be a
speciality good.
6.3.1 Classification and Attributes Differentiation
Remember that whole of the marketing processes starting from identification of
consumers and their needs is largely a commitment based matching exercise where Shaping the Market Offerings
values meet values through derived value for the marketer as well as the customer/
consumer.
This exercise almost inevitably requires classification of customers on the one NOTES
hand and the classification of products on the other hand because of the reasons that a
marketer wishes to:
a. Address or cater to a set of consumers at one point of time.
b. Wishes to say/ tell the consumers that the offering he has is especially for
them which actually gives them the reason to buy that offering only from
him (the marketer). For example management education, school education,
shoes shirts or anything else.
Therefore, to say that this offering is just for you a marketer differentiates the
form, features, design, structure and other attributes of the products and services.
Marketers even customize the attributes according to the specific choice of the customer
for example, pizza by choice, a customized vehicle, customized software, and a
customized course curriculum and so on. There are other aspects of differentiation like
quality (which is a relative and has criterion, mutually accepted by marketer and the
customer) reparability (which is associated with the life of the product), finishing and
style associated services and so on. For example, there is a restaurant in a city in Uttar
Pradesh called Marwadi Bhoj where a good assortment of vegetarian food is served in
a customized manner through highly personalized service and the most important aspect
is that prices are optimal, offering is of high quality and served to the extent of hunger
a person has and charged for only one serving.
Check Your Progress
Define product attributes
6.4 Differentiation and the 4Ps
Revisit the figure explaining McCarthys 4Ps and one can appreciate that the
differentiation of the offerings may be led by any of the components of 4Ps for example.
Air conditioners giving 7 years warranty against 6 years. Another example can be
differentiation through credit terms, differentiation through packaging, distribution
avenues/ locations, ease of installation as in the case of collapsible furniture, ease of
access for example insurance companies provide facilitation to pay premiums or to
buy policies at anytime from anywhere. Another aspect is that customer wants to be
reassured of his decisions and facilitation for returns, pay after use, pay after delivery,
buy backs, free demonstrations and customer trainings, lifelong repair and maintenance
assurance wherever the customer goes etc. provides a differentiation and assurance as
well.
6.5 Steering the Product Life

A marketers desire after he has taken the right actions through a marketing process
and has been able to match the value proposition with the perceived value proposition Marketing Management : 103
Shaping the Market Offerings with the perceived value is that the offering keeps on growing in terms of the number
of units sold along with the addition in the number of customers. The utmost desire of
the marketers is that this growth takes place with spontaneity and sustenance. The
achieved sustenance can be understood in terms of brand equity which has its roots as
NOTES
discussed throughout the text in right classification and right approach. Steering the
process of marketing to achieve brand equity requires fundamental understanding of
product hierarchy, systems, and mixes on the one hand and strategically utilizing this
understanding on the other hand.
6.6 Product Hierarchy
Again referring to the dictionary of American Marketing Association a product

hierarchy consists of product family, class, line and type and at the base of it is need
which is fundamental to this hierarchy whereas the farthest end is the item which is
Check Your Progress stated in (Kotler reference ____ page no. 320) a distinct unit within a brand or product
Define product Hierachy line distinguishable by size, price, appearance or some other attribute. Lets look at
the specific definitions of the components of product hierarchy.
6.7 Product System and Mix

Product system: (def. not available on AMA website)
Product Systems and Mixes
A product system is a group of diverse but related items that function in a com-
patible manner. For example, the Palmone handbeld and smartphone product lines
come with attachable products including headsets, cameras, keyboards, presentation
projectors, e-books. MP3 players, and voice recorders. A product mix (also called a
product assortment) is the set of all products and items a particular seller offers for sale.
A product mix consists of various product lines. Seagate now makes 29 kinds of
drives that are essential to servers, PCs, and consumer electronic products such as
video games, DVKs, and cameras. In General Electrics Consumer Appliance Division,
there are product-line managers for refrigerators, stoves, and washing machines. NEC's
(Japan) product mix consists of communication products and computer products. The
Codrej Agrovel division has a wide range of products In animal feeds, agricultural
inputs, horticulture, tissue culture. and retailing. The consumer product portfolio of
Nirma Limited consists of fabric-care products, personal-care products, food products,
and scouring products. In each of these categories, the company has different brands
and variants.
A company's product mix has a certain width, length, depth, and consistency.
These concepts are illlistrated in Table 12.1 for the consumer-product division of
Hindustan Unilever Limited (HUL).
The width of a product mix refers to how many different product lines the
company carries. Table 12.1 shows a product-mix width of eleven lines. (In
fact. HUL has other businesses as well.) * The length of a product mix Shaping the Market Offerings
refers to the total number of items in the mix. In Table 12.1. it is 28. We can
also talk about the average length of a line. This is obtained by dividing the
total length (here 20) by the number of lines (here 12), or an average product
NOTES
length of less than 3.
The depth of a product mix refers to how many variants are offered of each
product in the line. If Lux comes in four variants (exotic flower petals and
jojoba oil, almond oil and milk cream, fruit extracts and honey in milk cream,
and sandal saffron in milk cream) and in two sizes, then it has a depth of
eight. The average depth of HUL's product mix can be calculated by averag-
ing the number of variants within the brand groups.
The consistency of the product mix refers to how closely related the various
product lines are in end use, production retjuirements, distribution channels,
or some other way, HULs product lines are consistent in so far as they are
consumer goods that go through the same distribution channels. The lines
are less consistent in so far as they perform different functions for the buy-
ers.
TABLE 6.1 Product-Mix and Product Line Length for
Product-Mix width
Home & Personal Care Foods
Personl Laundry Skin Hair Oral Deodorants Ayurvedic Personal Color Tea Coffee Foods Ice
Wash Care Care Care & Heath care Cosmetics Cream
Product- Lux Surf Fair & Sunsllk Pepsodent Axe Ayursh Lakme Brooke Brooke Kissan Kwality
Line Excel Lovely Naturals Bond Bond Walls
Length Lifton Bru
Lifeboy Rin Prods Clinic Close-up Rexona Annapurna
Liril Wheel Vaseline
Hamam
Breeze
Dove
Pears
Rexona
Product system: Product system: http://en.wikipedia.org/w/index.php? title=

Production_system&printable= yes Production system
A production system (or production rule system) is a computer program typically
used to provide some form of artificial intelligence, which consists primarily of a set of
rules about behavior. These rules, termed productions, are a basic representation found
useful in automated planning, expert systems and action selection. A production system
provides the mechanism necessary to execute productions in order to achieve some Marketing Management : 105
Shaping the Market Offerings goal for the system.
Productions consist of two parts: a sensory precondition (or IF statement) and
an action (or THEN). If a productions precondition matches the current state of the
NOTES world, then the production is said to be triggered. If a productions action is executed,
it is said to have fired. A production system also contains a database, sometimes
called working memory, which maintains data about current state or knowledge, and a
rule interpreter. The rule interpreter must provide a mechanism for prioritizing
productions when more than one is triggered.
Product width: http://wiki.answers.com/Q/What_is_product_widthProduct width
refers to the number of product lines sold by one company. The product line refers to
the same kind of product but falls in same categories products are similar in their main
characteristics. for example the products produced by Hindustan Unilever : soaps,
beverages, washing powders etc. soap is one product line and beverages is other. But
sum total of all of these product line is width of product mix.
Product depth: http://wiki.answers.com/Q/What_is_Product_DepthThe no of
variants of a particular product is called product depth for example if we consider
shampoo of a particular brand say head n shoulder,then the different types of head n
shoulder(anti dandruff,soft n silky.normal,natural,etc)is called product depth.
Product consistency: http://wiki.answers.com/Q/What_is_product_consistency
People who purchase the same product from the same store or manufacturer have built
up a product image of what to expect each time they make a purchase. Thats what
gives a product meaning and value. Manufacturers should bear that in mind and ensure
their products quality standards as well as make sure they run the right advertising
campaigns when making significant changes in their stuff to avoid losing customers.
Hope this helps!
also this is how closely related the various product lines are in the end use
Pricing by definition as stated by American Marketing Association is pricing
price: is the formal ratio that indicates the quantities of money goods or services needed
to acquire a given quantity of goods or services.
a. Is the quality of their products related to the price tag?
b. Is there lot of extra premium associated with these products
And the answer is highly relative and situational which is justified for a person
who buys and not for the person who does not. The fact remains that price of product
has to justify itself before being accepted in normal economic circumstances and longer
run.
Product Mix: According to American Marketing Association (AMA) it is defined
as, The full set of products offered for sale by an organization. The product mix includes
all product lines and categories. It may be defined more narrowly in specific cases to
mean only that set of products in a particular product line or a particular market.
Product width: Not available on AMA website Shaping the Market Offerings
Product depth: Not available on AMA website
Product consistency: Not available on AMA website
Exercise: give 10 examples of product systems, mix, width, depth, and consistency. NOTES
The fundamental logic to understand the concept of product hierarchy, product

system, and mix, as discussed earlier also is to accurately match value but as we have
seen while we were discussing segmentation, targeting, positioning along with product
life cycle that a marketers desire to
a. Cater to the segment decided at large will motivate him to expand the target
or to bring in more targets where he may include mom-users by bringing in
little changes to products he is making for example, there is always a range
of shoes when you visit Bata, Reebok, Nike etc. or he may add products for
the target he is addressing for example FMCG (Fast Moving Consumer Goods
manufacturers) products introduce detergents along with personal wash soaps
or woodland has shoes as well as t-shirts, zodiac has ties and shirts as well.
Therefore either he is extending line length or width.
b. Desire of extension and expansion is also associated with building brand
strength and establishing brand equity. Further,
c. A desire to capitalize upon the established brand equity by saying / presenting
say Dettol is now offering dish washing solution/ liquids etc.
d. A desire to capitalize upon the complete marketing process including
distribution channels, pricing mechanisms, integrated marketing
communication process, marketing workforce or organization and so on.
For example, as well known institution initiates different courses. For example
Samsung, LG and others sell TVs, refrigerators and other products from the
same outlets. For example they also offer bundle price or bonanza offers on
several of their products purchased together during Diwali and other
occasions.
e. Another important desire is to propel the life of the product and to maximize
the period of growth and this desire is of utmost importance where a marketer
thinks for his product to repeatedly sell to the target, expansion of the target,
with continuous enhancement in the number of customer and that too without
special marketing efforts and costs.
This happens by the fulfilment of all the above desires in totality. For example,
have you ever felt that products of a particular company would keep on selling by
themselves? If yes, name at least 10 such products of 10 companies each. (Exercise)
Lets not forget packaging
6.8 Packaging
According to American Marketing Association (AMA) packaging is defined as,

Shaping the Market Offerings the process by which packages are created. Occasionally, it is used as synonymous
with package.
NOTES 6.9 Labeling

American Marketing Association (AMA) defines Label as, the information
attached to or on a product for the purpose of naming it and describing its use, its
dangers, its ingredients, its manufacturer, and the like. A label is usually thought of as
printed material, but labeling in the broader sense has been ruled to include spoken
information and separate promotional pieces, if they serve the information purpose
and are closely allied to the product.
6.10 Warranties
According to American Marketing Association (AMA) warranty is defined as,
A statement or promise made to the customer that a product being offered for
sale is fit for the purpose being claimed. The promise concerns primarily what the
seller will do if the product performs below expectations or turns out to be defective in
some way. The promise (warranty) may be full (complete protection) or limited (some
corrective steps), under terms of the Magnuson-Moss Warranty-Federal Trade
Commission Improvement Act (1975). It may also be expressed (orally or in writing)
or only implied, and it may have time restrictions.
6.11 Guarantees
According to American Marketing Association (AMA) guarantee is defined as,
the assurance, expressed or implied, of the quality of goods offered for sale. Expressed
guarantee, with definite promise of money back or other specific assurance, is often
used as a sales aid, especially in nonstore retailing.
Packaging, labelling, warranties and guarantees offer transportability,

Check Your Progress
attractiveness, recall, information and assurance which altogether is associated with
Define Packaging,
steering life of a product, enhancing the life, enhancing brand strength and reflects the
Labeling, Warranties and
commitment of the marketer. There are researches which suggest packaging as even
Guarantees
the 5th P of marketing.
6.12 A view of Services as Offerings

Early 70s Air India was considered to be one of the best and most efficient airlines
in the world. Aravind eye care provides ophthalmic services to highest of the satisfaction
levels. Satisfaction level of students studying in city Montessori school Lucknow is
Marketing Management : 108 very high. DHL became a truly international company because of their efficient services
and LIC is one of the most trusted brands because of the service efficiency. Maruti Shaping the Market Offerings
Suzuki (Suzuki India) is known for its after sales services, Narayan Hrudayalaya, All
India Institute of Medical Sciences (AIIMS), Bansal classes in Kota, Eureka Forbes
and the list may go on. Services have to be felt and to generate feelings the service
NOTES
provider has to get associated emotionally with the service to transfer the effect in the
customer. Fundamental of service is that someone is doing something for me and
that says it all as far as service differentiation is concerned. The greater the involvement
of the provider the larger is the level of satisfaction in the customer.
Just an old example might say it all. Remember the good postman especially in
the rural areas, where he brought the mails, read it for the person concerned, wrote and
Check Your Progress
answer for him and also made him aware of any other service of the postal department.
Define Services as
Handled money of the depositors, facilitated telegraphs and even telephone service as
Offerings
well. He was and still in a part of village life and life of the villagers.
6.13 Pricing
Pricing by definition as stated by American Marketing Association is pricing

price: is the formal ratio that indicates the quantities of money goods or services needed
to acquire a given quantity of goods or services.
As can be noticed there are few important and fundamental aspects of pricing
a. Price brings in revenues
b. Price is adjustable and controllable
c. Price has association with brand perception, utility consumer psychology
and product differentiation as well.
d. Price has association with quality and quality perception from the side of the
consumer as well as the marketer.
e. Price influences demand Check Your Progress
f. Price is a tool to fight competition Define Pricing and its
aspects
g. Price is associated with accounting markets like breakeven decided by the
marketer.
h. Price is associated with financial mark-ups like rate of return etc., and
i. Price is the resultant of a marketers vision about his product/ services market
association along with his desire of profits.
Now lets address these aspects and try and understand pricing along with
observing some of the pricing methodologies along with their logic:
Economic analysis gives us a relationship of price and quantity and elasticity and
inelasticity is that respect. Economics also explain price of a product in correlation
with alternative and substitute products. Having these economic aspects associated
with prices and pricing of products the most important aspect is cost. Marketing Management : 109
Shaping the Market Offerings Marketers on the one hand do a cost analysis then market and competitors analysis
along with market potential analysis to reach a number. Along with the 3 parameters
above there are few factors associated with pricing, which can be explained through
following examples. Primary and secondary education should be priced high or
NOTES
moderately high or low after analysing the parameters is a major question. Institutions
tend to associate the pricing of education with the profile of the city and the infrastructure
but same schools when open up their branches with similar curriculum, teacher training
and other components price their education at a low price. This may technically be
seen as differentiated pricing or even going rate pricing.
Therefore, looking at pricing with the perspective of a consumers psychology
lower and higher prices can both be an attractions and detergents regardless of the
demographic segment. For example, in case of management text books students feel
that the books should moderately price whereas medical text books are generally priced
high. Another example is a large number of customers that a parking ticket should not
be priced high although it is for the safety of a vehicle costing a lot, same is the case of
insurance premium. Even low priced television was not such an attractive proposition
when Konka and TCL launched their TVs in India despite of the fact that Konka has
one of the established electronic majors.
6.13.1 Price and Quality Perception
Whenever you pass through an airport lounge you have mixed feelings about
price, relative quality and consumer psychology. For example, think of the time just
before one enters into an airport and one feels thirsty or hungry, the price bracket you
get outside and the price bracket you get inside is different. You may add additional
taxed levied inside but still the prices are high for the same products. Then you visit the
shopping lounge and try and analyse pricing of perfumes, wrist watches, fountain pens,
leather goods, books and novels, assortment of chocolates the questions those come to
your mind are:
a. Is the quality of their products related to the price tag?
b. Is there lot of extra premium associated with these products
And the answer is highly relative and situational which is justified for a person
who buys and not for the person who does not. The fact remains that price of product
has to justify itself before being accepted in normal economic circumstances and longer
run.
6.13.2 Broader Process of Setting Prices and Few Types of
Prices
Broader process of setting prices and few types of prices are as follows:
a. First the criterion for pricing is fixed i.e. how you wish to position the product
in terms of
i. Your target segment
ii. Competition
iii. Your product mix offering
iv. Market potential and growth Shaping the Market Offerings
v. Desire for profits
For example, McDonalds when came to India offered one of their burgers at
Rs.20, Maggi is offering their chotu (small) Maggi at Rs.5, Reebok in Bangladesh NOTES
offered one of their shoes for Rs.50, BSNL these days is offering PENTA a computer
for Rs.3200, Hush puppies is charging Rs.6000 for one of their shoes, Van Heusen is
pricing its shirts for Rs.2500 or above whereas Peter England is priced at Rs.800 and
above.
Criterion is based on objectives, market analysis and life foreseen for the product
for example McDonalds objective was market acceptance first whereas Hush Puppies
had product quality leadership in the view.
b. As discussed earlier as well elasticity and non- elasticity has to be considered
through research and product testing for example Apple when initially
launched its i-phone could not get the response they desired from the Indian
customer.
c. Cost analysis for self and competition (competition, direct, substitutes, indirect
and share of pocket): here segment analysis along with the production costs
are the important issues. Cost analysis also depends upon the technology
employed for example when few of the companies i.e. newspapers in India
started, glazed printing then it has to costly but to enhance the market share
it has to be done while keeping up the prices uniform. Another example is
when whirlpool initiated production for CFC (Chlorofluorocarbons) free
compressors and refrigerators in India, the cost on one hand was more and
on the other hand they did not have sales matching their production capacity.
Further cost analysis is peculiar when services are to be priced for example
consulting services, tourism services etc.
Another aspect of cost analysis when market has to be developed and research
and development cost has to accompany the cost analysis.
For example, today 7th April 2013 its a huge debate on the kind of pricing patented
drugs offer as the companies which hold patents claim for large research and Check Your Progress
development costs, but again the questions is that even if such costs are involved then 1. Define Pricing and
also should prices hold a larger premium component because of the reason that medicines Quality in relation to
have to reach the patients so shouldnt the disease get over before the breakeven in a each other.
complex question. 2. To be inserted Pg-55
Cost has also to be analysed with the perspective of long term resource Elaborate upon the
development. For example, management colleges may or may not charge for the reasoning and the usage
intellectual capital they are building in the long run. Cities developed far away from of some of the
metropolitans may charge for the peace of mind they might offer or it may be a part of important Pricing
their offering. Methods.
Medicities are building infrastructure and charging for the deprivations of building
Shaping the Market Offerings and equipment along with the cost of appreciable land as a part of the pricing from
their customers. Getting treatment is an experience.
6.13.3 Some Important Pricing Methods
NOTES Some important pricing methods are
a. Mark up pricing
b. Target return pricing
c. Received value pricing
d. Value pricing
e. Going rate pricing
f. Auction pricing
6.14 Summary
This Unit defined product as bundles of attributed, features, befefits and (use)
capable of exchange or use usually a mix of tangible and intangible forms. Then it
considered about different type of pricing like Markup, target return, received/per-
ceived value and value pricing. Definition of American Marketing Association has
been considered and various levels of products and customer value hierarchy as per
Kotler is taken, i. e. core benefit, basic product, expected product, augmented product
and potenial product. Classification of product on the basis of tangibility and durabil-
ity and other common aspects like convenience, shopper or specialty. 4Ps by McCarthy
and how to use them for steering the product life. Product mix: length and width are
explained. Packaging, labeling warranties and guarantees affects a product. A view of
services as offerings are taken and pricing and its various types and methods of pricing
is also explained.
6.15 Key Terms
Product: In marketing, a product is anything that can be offered to a market that

might satisfy a want or need. In retailing, products are called merchandise.
In manufacturing, products are bought as raw materials and sold as finished
goods.Commodities are usually raw materials such as metals and agricultural prod-
ucts, but a commodity can also be anything widely available in the open market.
In project management, products are the formal definition of the project deliverables that
make up or contribute to delivering the objectives of the project. In insurance, the
policies are considered products offered for sale by the insurance company that created
the contract.
In economics and commerce, products belong to a broader category of goods.

The economic meaning of product was first used by political economist Adam Smith.
A related concept is subproduct, a secondary but useful result of
a production process. Shaping the Market Offerings
Dangerous products, particularly physical ones, that cause injuries to consumers

or bystanders may be subject to product liability.
Source: http://en.wikipedia.org/wiki/Product_(business) NOTES
Service: Service provision is often an economic activity where the buyer does not
generally, except by exclusive contract, obtain exclusive ownership of the thing pur-
chased. The benefits of such a service, if priced, are held to be self-evident in the
buyers willingness to pay for it. Public services are those society (nation state, fiscal
union, regional) as a whole pays for through taxes and other means.
By composing and orchestrating the appropriate level of resources, skill, ingenuity,

and experience for effecting specific benefits for service consumers, service providers
participate in aneconomy without the restrictions of carrying inventory (stock) or the
need to concern themselves with bulky raw materials. On the other hand,
their investment in expertise does require consistent service marketing and upgrading
in the face of competition.
Source: http://en.wikipedia.org/wiki/Service_(economics)
Price: In modern economies, prices are generally expressed in units of some form
of currency. (For commodities, they are expressed as currency per unit weight of the
commodity, e.g. euros per kilogram.) Although prices could be quoted as quantities of
other goods or services this sort of barter exchange is rarely seen. Prices are sometimes
quoted in terms of vouchers such as trading stamps and air miles. In some circum-
stances, cigarettes have been used as currency, for example in prisons, in times of
hyperinflation, and in some places during World War 2. In a black market economy,
barter is also relatively common.
In many financial transactions, it is customary to quote prices in other ways. The

most obvious example is in pricing a loan, when the cost will be expressed as the
percentage rate of interest. The total amount of interest payable depends upon credit
risk, the loan amount and the period of the loan. Other examples can be found in pric-
ing financial derivatives and other financial assets. For instance the price of inflation-
linked government securities in several countries is quoted as the actual price divided
by a factor representing inflation since the security was issued.
Price sometimes refers to the quantity of payment requested by a seller of goods

or services, rather than the eventual payment amount. This requested amount is often
called theasking price or selling price, while the actual payment may be called
the transaction price or traded price. Likewise, the bid price or buying price is the quan-
tity of paymentoffered by a buyer of goods or services, although this meaning is more
common in asset or financial markets than in consumer markets.
Economists sometimes define price more generally as the ratio of the quantities
of goods that are exchanged for each other.
Shaping the Market Offerings Source: http://en.wikipedia.org/wiki/Price

NOTES
1. Define a new product. Explain the different types of new products. Explain the
procedure of new product development.
a) Which is the most important step
b) Which step can be ignored?
2. Explain the concept of Product Mix in detail. Also mention various product mix
strategies.
3. Explain the concept of Product life cycle with the help of a neat diagram of a
PLC for standardized product.
4. Classify products on the basis of their nature, consumers intentions and
preferences, and social benefits.
5. Explain the various factors affecting pricing of products.
6. Explain the process of New product development in detail.
7. What is PLC (product life cycle)? Draw and explain PLC for a standardized
product.
8. Discuss the steps in new product development.
9. Define Product. Explain different types of products with suitable examples.
10. Company X has a dominant share in the Indian Sauce market and also owns
a successful brand in the category. Research showed that there was a need for
sauce with unique taste which could be taken with Indian as well as western snack
foods. The company introduced Tomi Imli, a new tomato sauce with tamarind
and tangy spices. The product is targeted at children in the age group of 14 years
and above. As a marketing manager, which steps would you like to take while
launching this product? How will you conduct the test marketing for this product?
11. Discuss the pricing techniques applicable to FMCG products being launched in a
highly competitive market.
12. What are the factors influencing pricing decisions? Explain in detail.
13. What are the basic steps to develop new product. Explain this with Indian context.
14. What are the factors influencing on Pricing Decisions? How to manage price
change?
15. What are the functions of Packaging?
16. What are the new trends in Packaging? Explain this with the list of new packaging
techniques and suitable examples.
17. Q7) Write short notes (any two):
a) Current trends in packaging.
b) Levels of Product.
c) Psychological Pricing. Shaping the Market Offerings
d) Franchising.
18. Define a new product. Explain the different types of new products.
19. Explain the procedures of the new product development process NOTES
a. Which is the most important step
b. Which step can be ignored?
20. Which internal & external factors influence the setting of the price of a product &
eventual changes therein? Explain citing examples.

India
Reference Reading :
John Wiley & Sons.
York.

Delivering Value
UNIT 7 DELIVERING VALUE
Structure
NOTES
7.0 Introduction
7.1 Unit Objectives
7.2 Distribution- Channel Management
7.3 Channels
7.3.1 Role and type of channels
7.4 Channel Management
7.5 E-Business, Retailing and Wholesaling
7.5.1 Retailing
7.5.2 Life cycle phases in retailing
7.5.3 Non-store retailing
7.5.4 Retailing organizations
7.5.5 Wholesale
7.6 Summary
7.7 Key Terms
7.0 Introduction
Reaching the customer. This short statement is true and holds importance for a
raw material supplier, a component supplier, a manufacturer, a clearing and forwarding
agent, a distributor, a retailer, a service provider and all of them who belong to a value
chain system. Therefore, looking at the big picture as they say value once created gets
materialized only when it is delivered to the right person at the right place and at the
right time.
How to reach the customers and what are the modes of reaching the customers
has to be understood for not only executing the marketing plan well but also to capitalize
the other four Ps of marketing.
Main objective of this Unit is to strengthen the knowledge of the readers with the
perspective of reaching to the customers.
7.1 Unit Objectives

1. Explain role & types of Marketing channel.
2. Describe Channel Management Delivering Value
3. Explain E-Business, Retailing & wholesaling
4. Explain M-Commerce.
NOTES
7.2 Distribution- Channel Management
Reaching the customer. This short statement is true and holds importance for a
raw material supplier, a component supplier, a manufacturer, a clearing and forwarding Check Your Progress
agent, a distributor, a retailer, a service provider and all of them who belong to a value Elaborate upon the
chain system. Therefore, looking at the big picture as they say value once created gets concept of Distribution
materialized only when it is delivered to the right person at the right place and at the and Channel Managment.
right time.
Imagine food grains lying in the field when they are supposed to be delivered or
one may image farmers not interested in producing cotton for example. One example
as we understand is the shortage of doctors, another example can be doctors not attending
patients as per their capacity, hospitals having only 30-40 per cent occupancy rates.
We have been witnessing in case of management education there are places where
there is mushrooming of education providers and on the other side there are students
unable to achieve/ gain proper education.
Preceding examples not only are referring to a proper delivery mechanism
throughout a value chain but also are mentioning the interrelationships of a delivery
mechanism with other aspects/factors of a marketing process. For example, e-choupal
not only ensured the two way benefits for the producers and their own organizations/
buyers by integrating both ends but also ensured price as per quality, purchase of any
quantity available, from where it is available thus empowering the producer and the
production, hence fundamentally and positively effecting and correlatively strengthening
all the 4Ps (McCarthys product, price, place, promotion).
Marketing channels
Marketing channel system
Other channel related definitions (AMA)
Other value and network related definitions
Channel integration
Vertical marketing system (VMS)
E-business, e-commerce and e-marketing practices
Brick and click
M-commerce
Marketing channels
Marketing channel system
(Source: http://www.marketingpower.com/_layouts/Dictionary.aspx?dLetter=M)
Delivering Value A set of institutions necessary to transfer the title to goods and to move goods
from the point of production to the point of consumption and, as such, which consists
of all the institutions and all the marketing activities in the marketing process.
NOTES (Source: http://en.wikipedia.org/wiki/Marketing_channel)

A marketing channel is a set of practices or activities necessary to transfer the
ownership of goods, and to move goods, from the point of production to the point
of consumption and, as such, which consists of all the institutions and all
the marketing activities in the marketing process. A marketing channel is a useful tool
for management.
Roles of marketing channel in marketing strategies
Links producers to buyers.
Performs sales, advertising and promotion.
Influences the firms pricing strategy.
Affecting product strategy through branding, policies, willingness to stock.
Customizes profits, install, maintain, offer credit, etc.
An example of this is an apple orchard: Apple orchard > Transport > Processing
factory > Packaging > Final product to be sold > Apple pie eaten
An alternative term is distribution channel or route-to-market. It is a path or
pipeline through which goods and services flow in one direction (from vendor to the
consumer), and the payments generated by them flow in the opposite direction (from
consumer to the vendor). A marketing channel can be as short as being direct from the
vendor to the consumer or may include several inter-connected (usually independent
but mutually dependent) intermediaries such as wholesalers, distributors, agents, retailers.
Each intermediary receives the item at one pricing point and moves it to the next higher
pricing point until it reaches the final buyer.
Marketing Channels can be long term or short term.
Armstrong, G. (2009). Marketing: an introduction ([European ed.). Harlow,
England: Financial Times Prentice Hall.
Short term channels are influenced by market factors such as: business users,
geographically concentrated, extensive technical knowledge and regular servicing
required, and large orders. Short term product are influenced by factors such as:
perishable, complex, and expensive. Short term producer factors include whether the
manufacturer has adequate resources to perform channel functions, Broad product line,
and channel control is important. Short term competitive factors include: manufacturing
feels satisfied with marketing intermediaries performance in promoting products.
Long term market factors include consumers, geographically dispersed, little
technical knowledge and regular servicing is not required, and small orders. Product
factors for long term marketing channels are: durable, standardized, and inexpensive.
Producer factors are manufacturer lacks adequate resources to perform channel functions,
limited product line, and channel control not important. The competitive factors are:
manufacturer feels dissatisfied with marketing intermediaries performance in promoting Delivering Value
products
Armstrong, G. (2009). Marketing: an introduction ([European ed.). Harlow,
England: Financial Times Prentice Hall. NOTES
References
1. ^ American Marketing Association
Retrieved from http://en.wikipedia.org/w/index.php? title= Marketing_
channel&oldid =557506137
Other channel related definitions (AMA)
(Source: http://www.marketingpower.com/_layouts/Dictionary.aspx?dLetter=C)
channel The actual impact that a channel member achieves on an associated channel
control channel members beliefs, attitudes, and behavior. power
channel The willingness of channel members to work together to
cooperation ensure important channel functions are performed.
channel A channel performance dimension based on how well the channel channel
effectiveness satisfies customer needs and wants, such as for lot size, delivery time, efficiency
location convenience, and assortment breadth. channel
productivity
channel
profitability
channel A channel performance dimension focusing on how well the firm
efficiency minimizes costs associated with performing necessary channel functions. channel
effectiveness
channel
productivity
channel
profitability
channel equity Refer to See Also column to the right.
channel The marketing functions performed by manufacturers, wholesalers, channel
flows retailers, and other channel members within the channel. Eight functions
universal channel flows that have been identified include physical and channel
possession, ownership, promotion, negotiation, financing, risking, specialization
ordering, and payment.
channel The job tasks or activities that need to be performed in the channel. channel flows
functions
channel The degree to which a channel relationship is stable, loyalty has been
member built, and each channel member is willing to make sacrifices to maintain
commitment the exchange.
channel A channel members need to maintain a particular channel relationship

Delivering Value member in order to achieve desired goals.
dependence
channel A channel members affective state reflecting its overall approval or
member disapproval of a channel relationship with another firm.
NOTES
satisfaction
channel of An organized network (system) of agencies and institutions which, in channel
distribution combination, perform all the functions required to link producers with performance
end customers to accomplish the marketing task.
channel of Refer to See Also column to the right. distribution
distribution models
model
channel An outcome measure of the channel of distribution. The performance of a
performance distribution channel can be assessed by considering a number of
performance dimensions, including channel effectiveness, channel
efficiency, channel productivity, and channel profitability.
channel The ability of a particular channel member to control or influence the channel
power decision making and behavior of another channel member, or one channel control
member's potential for influence with another channel member.
channel A channel performance dimension based on the degree to which the channel
productivity channels' total investment in the various inputs necessary to achieve a fectiveness
given distribution objective can be optimized in terms of outputs. channel
efficiency
channel
profitability
channel A channel performance dimension based on the financial performance channel
profitability of channel members in terms of ROI, liquidity, leverage, growth in sales effectiveness
and profits, etc. channel
efficiency
channel
productivity
channel The channel members' choice of unique positions in the channel based
specialization on their capacities, interests, goals, expectations, values, and frames of
references. Hence, each performs those tasks (participates in those
channel flows) which it can perform at a comparative advantage.
Vertical Marketing System (VMS)

(Source: http://www.marketingpower.com/_layouts/dictionary.aspx?dletter=v )
1. (channels of distribution definition) The channel systems consisting of
horizontally coordinated and vertically aligned establish-ments that are
professionally managed and centrally coordinated to achieve optimum
operating economies and maximum market impact. The three types of vertical
marketing systems are administered vertical marketing system, contractual
vertical marketing system, and corporate vertical marketing system.
2. (physical distribution definition) A long-term channel relationship in which Delivering Value
two or more firms acknowledge and desire interdependence
E-business
(source: http://www.marketingpower.com/_layouts/Dictionary.aspx?dLetter=E) NOTES
A term referring to a wide variety of Internet-based business models. Typically, an
e-commerce strategy incorporates various elements of the marketing mix to drive users
to a Web site for the purpose of purchasing a product or service.
e-commerce
(Source: http://www.marketingpower.com/_layouts/Dictionary.aspx?dLetter=E)
A term referring to a wide variety of Internet-based business models. Typically, an
e-commerce strategy incorporates various elements of the marketing mix to drive users
to a Web site for the purpose of purchasing a product or service.
Online Marketing
(Source: http://www.marketingpower.com /_layouts/Dictionary.aspx? dLetter=O#
online+ marketing)
Term referring to the Internet and e-mail based aspects of a marketing campaign.
Can incorporate banner ads, e-mail marketing, search engine optimization, e-commerce
and other tools.
Brick and Click
(Source: http://en.wikipedia.org/wiki/Bricks_and_clicks )
Bricks and clicks (aka clicks and bricks, click and mortar, or bricks, clicks and
flips) is a business model by which a company integrates both offline (bricks) and
online (clicks) presences, sometimes with the third extra flips (physical catalogs).
Additionally, many will also offer telephone ordering as well, or at least provide telephone
sales support.
A popular example of the bricks and clicks model is when a chain of stores allows
the customer to order products either online or physically in one of their stores, also
allowing them to either pick-up their order directly at a local branch of the store or get
it delivered to their home. There are many alternative combinations of this model.
The bricks and clicks model has typically been used by traditional retailers who
have extensive logistics and supply chains, but are well known and often respected for
their traditional physical presence. Part of the reason for its success is that it is far easier
for a traditional retailer to establish an online presence than it is for a start-up company
to employ a successful purely online one, or for an online only retailer to establish a
traditional presence, including a strong and well recognised brand, without having a
large marketing budget.[citation needed] Although the major factor in the success or
failure of this business model is in the control of costs, as usually maintaining a physical
presence paying for many physical store premises and their staffing requires larger
capital expenditure which online only businesses do not usually have. Some business
sectors may lend themselves better to a bricks and clicks model than others. For example, Marketing Management : 121
Delivering Value supermarkets often have different customers types requiring alternative shopping options;
one group may wish to see the goods directly before purchase and like the convenience
of quickly shopping on-the-fly, while another group may require a different convenience
of shopping online and getting the order delivered when it suits them. Conversely, a
NOTES
business selling more luxurious, often expensive, or only occasionally purchased
products like cars may find sales are more common with a physical presence, due
to the more considered nature of the purchasing decision, though they may still offer
online product information.
The success of the model in many sectors has lessened the credibility of some
analysts who argued that the Internet would render traditional retailers obsolete through
disintermediation.[citation needed]
On the other hand, an online-only service can remain a best-in-class operation
because its executives focus on just the online business. It has been argued that a
bricks and clicks business model is more difficult to implement than an online only
model.[1] In the future, the bricks and clicks model may be more successful, but in
2010 some online only businesses grew at a staggering 30%, while some bricks and
clicks businesses grew at a paltry 3%.[2] The key factor for a bricks and clicks business
model to be successful will, to a large extent, be determined by a companys ability to
manage the trade-offs between separation and integration of their retail and online
businesses.[3]
M-commerce
(Source: http://en.wikipedia.org/wiki/Mobile_commerce)
The phrase mobile commerce was originally coined in 1997 to mean the delivery
of electronic commerce capabilities directly into the consumers hand, anywhere, via
wireless technology.[1] Many choose to think of Mobile Commerce as meaning a
retail outlet in your customers pocket.
According to BI Intelligence[2] in January 2013, 29% of mobile users have now
made a purchase with their phones. Walmart estimated[3] that 40% of all visits to their
internet shopping site in December 2012 was from a mobile device. Bank of America
predicts[4] $67.1 billion in purchases will be made from mobile devices by European
and U.S. shoppers in 2015.
Products and services available
Mobile Money Transfer
In Kenya money transfer is mainly done through the use of mobile phones. This
was an initiative of a multimillion shillings company in Kenya. Mobile money transfer
services in Kenya are now provided an (ZAP). the oldest has and is now generally used
to refer to mobile money transfer services even by other companies other than.
Mobile ATM
With the introduction of mobile money services for the unbanked, operators are
Marketing Management : 122 now looking for efficient ways to roll out and manage distribution networks that can
support cash-in and cash-out. Unlike traditional ATM, sicap Mobile ATM have been Delivering Value
specially engineered to connect to mobile money platforms and provide bank grade
ATM quality. In Hungary, Vodafone allows cash or bank card payments of monthly
phone bills.[7] The Hungarian market is one where direct debits are not standard practice,
NOTES
so the facility eases the burden of queuing for the postpaid half of Vodafones subscriber
base in Hungary.
Mobile ticketing
Tickets can be sent to mobile phones using a variety of technologies. Users are
then able to use their tickets immediately, by presenting their mobile phone at the ticket
check.
Mobile vouchers, coupons and loyalty cards
Mobile ticketing technology can also be used for the distribution of vouchers,
coupons, and loyalty cards. These items are represented by a virtual token that is sent to
the mobile phone. A customer presenting a mobile phone with one of these tokens at the
point of sale receives the same benefits as if they had the traditional token. Stores may
send coupons to customers using location-based services to determine when the customer
is nearby.
Content purchase and delivery
Currently, mobile content purchase and delivery mainly consists of the sale of
ring-tones, wallpapers, and games for mobile phones. The convergence of mobile phones,
portable audio players, and video players into a single device is increasing the purchase
and delivery of full-length music tracks and video. The download speeds available with
4G networks make it possible to buy a movie on a mobile device in a couple of seconds.
Location-based services
Main article: Location-based service
The location of the mobile phone user is an important piece of information used
during mobile commerce or m-commerce transactions. Knowing the location of the
user allows for location-based services such as:
Local discount offers
Local weather
Tracking and monitoring of people
Information services
A wide variety of information services can be delivered to mobile phone users in
much the same way as it is delivered to PCs. These services include:
News
Stock quotes
Sports scores
Financial records
Traffic reporting Marketing Management : 123
Delivering Value Customized traffic information, based on a users actual travel patterns, can be
sent to a mobile device. This customized data is more useful than a generic traffic-
report broadcast, but was impractical before the invention of modern mobile devices
due to the bandwidth requirements.
NOTES
Mobile banking
Main article: Mobile Banking
Banks and other financial institutions use mobile commerce to allow their customers
to access account information and make transactions, such as purchasing stocks, remitting
money. This service is often referred to as Mobile Banking, or M-Banking.
Mobile brokerage
Stock market services offered via mobile devices have also become more popular
and are known as Mobile Brokerage. They allow the subscriber to react to market
developments in a timely fashion and irrespective of their physical location.
Auctions
Over the past three years[when?] mobile reverse auction solutions have grown in
popularity.[by whom?] Unlike traditional auctions, the reverse auction (or low-bid
auction) bills the consumers phone each time they place a bid. Many mobile SMS
commerce solutions rely on a one-time purchase or one-time subscription; however,
reverse auctions offer a high return for the mobile vendor as they require the consumer
to make multiple transactions over a long period of time.
Mobile browsing
Main article: Mobile browser
Using a mobile browsera World Wide Web browser on a mobile device
customers can shop online without having to be at their personal computer.
Mobile purchase
Catalog merchants can accept orders from customers electronically, via the
customers mobile device. In some cases, the merchant may even deliver the catalog
electronically, rather than mailing a paper catalog to the customer. Some merchants
provide mobile websites that are customized for the smaller screen and limited user
interface of a mobile device.
In-application mobile phone payments
Payments can be made directly inside of an application running on a popular
smartphone operating system, such as Google Android. Analyst firm Gartner expects
in-application purchases to drive 41 percent of app store (also referred to as mobile
software distribution platforms) revenue in 2016. In-app purchases can be used to buy
virtual goods, new and other mobile content and is ultimately billed by mobile carriers
rather than the app stores themselves. Ericssons IPX mobile commerce system is used
by 120 mobile carriers to offer payment options such as try-before-you-buy, rentals and
subscriptions.
Mobile marketing and advertising Delivering Value
Main article: Mobile marketing
In the context of mobile commerce, mobile marketing refers to marketing sent to
mobile devices. Companies have reported that they see better response from mobile NOTES
marketing campaigns than from traditional campaigns. Mobile campaigns must be based
on the global Content Generationor what is called Generation C and four other Cs:
Creativity, Casual Collapse, Control, and Celebrity. A brief introduction... Creativity:
lets face it, were all creatives, if not artists! (Notice we didnt mean talented artists ;-
). And as creativity normally leads to content, the link with GENERATION C is obvious.
Which then brings us to Casual Collapse: the ongoing demise of many beliefs, rituals,
formal requirements and laws modern societies have held dear, which continue to
collapse without causing the apocalyptic aftermath often predicted by conservative
minds. From womens rights to gay marriage to not wearing a tie to work if you dont
feel like it [unreliable source?]
Research demonstrates that consumers of mobile and wireline markets represent
two distinct groups who are driven by different values and behaviors, and who exhibit
dissimilar psychographic and demographic profiles. As a result, successful mobile
commerce requires the development of marketing campaigns targeted to this particular
market segment.
Fig. 7.1 Distribution Channel

forklift trucks. If these flows were superimposed in one diagram, the tremendous
complexity of even simple marketing channels would be apparent.
A manufacturer selling a physical product and services might require three channels:
a sales channel, a delivery channel, and a service channel. To sell its Bowflex fitness
equip-ment, the Nautilus Group historically has emphasized direct marketing via
television infomercials and ads. inbound/outbound call centers, response mailings, and
the Internet as sales channels; UPS ground service as the delivery channel; and local
repair people as the service channel. Reflecting shifting consumer buying habits. Nautilus
now also sells Bowflex through commercial, retail, and specialty retail channels.
Delivering Value The question is not whether various channel functions need to be performed
they must bebut rather, who is to perform them. All channel functions have three
things in common: They use up scarce resources; they can often be performed better
through specialization; and they can be shifted among channel members. When the
NOTES
manufacturer shifts some functions to intermediaries, the producers costs and prices
are lower, but the intermediary must add a charge to cover its work. If the intermediaries
are more efficient than the manufacturer, prices to consumers should be lower. If
consumers perform some functions themselves, they should enjoy even lower prices.
Changes in channel institutions thus largely reflect the discovery of more efficient ways
to combine or separate the economic functions that provide assortments of goods to
target customers.
Channel Levels
The producer and the final customer are part of every channel. We will use the
number of intermediary levels to designate the length of a channel. Figure 15.3 (al
illustrates several consumer-goods marketing channels of different lengths.
A zero-level channel (also called a direct marketing channel) consists of a
manufacturer selling directly to the final customer. The major examples are door-to-
door sales, home parties, mail order, telemarketing, TV selling, Internet selling, and
manufacturer- owned stores. Eureka Forbes sales representatives sell their products
door-to-door; Tupperware representatives sell kitchen goods through home parties; Otto
Burlington sells its products through mail order; ICICI Batik uses the telephone to
prospect for new customers or sell enhanced services to its existing customers; Asian
Sky Shop sells products through TV commercials or longer infomercials; Amazon
and 11 iil:,ji nin % % sell their products online; and Bata and IndianOil/Bharat Petroleum
sell products through the manufacturer-owned stores and petrol pumps, respectively.
A one-level channel contains one selling intermediary, such as a retailer. A two-
level channel contains two intermediaries. In consumer markets, these are typically a
wholesaler and aretailer.
7.3 Channels
As evident from the standard definitions and the conceptual explanation of the
terms explained and defined by American Marketing Association (Source: ____) in the
preceding paragraphs, goods and services
Check Your Progress a. Travel and transmit from one place to another
Elaborate upon some
b. Treated by various organizations, set of people (experts) and individuals
important concepts related
c. Pass through various process
to Distribution and
d. Change form, structure, shape or packaging on the way
Channel Management.
e. Linked to various price mechanisms
f. Promoted in various ways
Marketing Management : 126 g. Stored, kept and displayed and before finally being displayed
h. Are supported by various modes of transportation and transmission. Delivering Value
For example there is a valuable essay written by Reed Pencil (Lawrence W. Reed,
1958), http://www.fee.org /library /detail /i-pencil-audio-pdf-and-html#
axzz2QgyGN132) NOTES
This beautifully written essay justifiably express how a simple thing like a pencil
reaches its end customer most of all children.
Another expressive example is of a digestive tablet called Panchvati made in
Roorkee (http://www.panchwati.in/digestive_tablets.html). Looking at the production
and the capacity of the product a broad analysis is that around 100 million tablets are
produced in a production period say a year now looking at the requirement of the raw
materials, labour, machine, casting dies, and most of all distribution avenues for so
many tablets we definitely get a larger view of points (a) to (h).
7.3.1 Role and Type of channels
Fig. 7.2 Marketing Channels

Let us start imagining channels at zero level i.e. from the stage where producer
sells directly to the customer for example a small vegetable vendor grows
vegetables and sells on a highway or in a mandi (unorganized Indian market)
directly.
The next stage is he sells it to another retailer at his own farm and does not
need to go to sell anywhere. Here, he saves on logistics and burden of carrying
back unsold vegetables and simultaneously compromising on the kinds of
profit margins he would get by not only commanding his own price but also
by directly rationalizing his quality and location of sales with respect to the
price he asks for.
Further, in the process he loses the opportunity of
a. Learning the market dynamics
b. Competition
c. Alternative and substitute products
d. His customer
e. Customer relationship and
f. Developing his brand (own brand at large) Marketing Management : 127
Delivering Value g. He might have suitably agreed for business and business process integration
also.
You see just by introducing one intermediary there are aspects which emerge but
NOTES then why should one do so? The simple answer apart from an individuals own limitations
in volume of the goods produced. If the
Volume is not too small and not large enough to be distributed and retailed
through channel integration then number of intermediaries would be more.
Then comes in geography if volume is neither too small nor too large
geographical span may not be covered rationally.
Lets further elaborate upon the situation by taking another example of saying
rubber based bathroom slippers.
A small footwear vendor would buy sole and straps assemble them, decide on the
basis of going on rate pricing and would supply in small quantities to smaller retailers
in the vicinity.
Then as and when the demand grows the retailers start asking for more and the
assembler/ supplier
a. Enhances his capacity
b. Purchases more raw material
c. Enhances the levels of negotiations and credit terms with his own suppliers.
Next stage is where, his retailers to attract more suppliers start paying him
cash or even advance then he starts looking for his raw material from better
suppliers on better terms and adds machinery to assemble and to even produce.
Now he adds a brand name to his products and starts rationalizing costs,
price, inventory, terms of business.
Next stage he adds an intermediary called say the wholesaler. His job is to
deal with the retailers and keep adding retailers. In return he gets a cut or
margin. He adds value to the process by enhancing the flow and dividing the
risk through sharing the distribution responsibly. He also commits
transportation and warehousing to the retailer and sometimes from the
manufacturer.
Next stage comes in when the retailer starts promoting the brand looking at
the customer response. This enhanced brand value motivates the producer to
enhance geographical span which brings in channels on both sides i.e. more
raw material suppliers, more manufacturing integration hence more machine
and maintenance vendors. On the other side he enhances another level of
Check Your Progress channels the stockist whose job is to stock things at regional levels, another
Elaborate upon Channels, channel for getting cleared and forwarded is brought in for accommodating
roles and types of larger production and this is referred to as C&F agent.
Channels.
Here, a situation comes in where brand strength enhances and producer starts
advertising slowly generating pull factor complimented by a push factor
wherever required. Pull factor is where customer asks for the products by
themselves. This enhances the bargaining strength of the manufacturer push Delivering Value
factor is when a producer has more dependency on his channels to reach to
the consumers. And this is how brands like Relaxo, Paragon and others come
into being.
NOTES
7.4 Channel Management

As understood by now one cannot deliver value without effective channels.
Effective channels mean
Check Your Progress
a. Selecting efficient channel partners Describe Channel
b. Developing and involving them as partners Management.
c. Assuring profitability for them
Assurance of profitability requires continuous production sales and also effective
channel management which has a two way relationship with the profitability and growth
of the vendors and suppliers of ones own business and the channels to whom the business
supplies.
Effective channel management requires a logical combination of channel partners
which may be
Only your own sales force
Sales force and agents like LIC
Agents and retailers like travel companies
Retailers and wholesalers like book producers
Stockists, wholesalers and retailers like for medicines
C&F agents, stockists, agents, wholesalers and retailers like capital goods,
electrical supplies and so on.
Effective channel management also requires robust legal understanding and
agreement based arrangement. It also requires that there should not be any scope of
conflict amongst the channel partners.
Therefore, there are many arrangements like legal rights, brand rights, franchise
arrangement, lease arrangement, profit sharing, commission, payment after sales, advance
before supplies depending upon mutual trust and the need of the partners.
Also depending upon the brand strength the producer may use coercion, negotiation,
reward/ incentives, legal mode for dealing with then channel partners. Conflict
management may only be done by creating strong demarcation between the roles and
benefits of the channel partners and laying down logical cost and legal considerations
around the said roles and the benefits. For example, retailer has less space, costly space;
more selling effort and greater loss of goods are unsold hence larger margins and backup
of service and returns.

Delivering Value
7.5 E-Business, Retailing and Wholesaling
Internet, telecommunication or largely if called connectivity has brought in very
NOTES effective mode of transactions, information, advertising & promotion, sales and
marketing.
Check Your Progress E-commerce as it is largely termed has enabled organizations to base their
Discuss E-Business marketing process completely through internet as in the case of famous examples like
Amazon.com, Naukri.com, Shaadi.com and so on.
Some organizations and institutions like Indian Railways have been effectively
using it, while IGNOU, Indira Gandhi National Open University has also utilized this
channel well. Banks, airlines and many others are moving faster towards completely
structuring their operations on e-basis.
There are others who are only using it for reaching to customers, some like Flipkart,
Naaptol, Indiamart and so on working effectively on developing channels for one and
all.
Then there is mobile commerce called m-commerce which is again effectively
getting developed and complimenting e-commerce for reaching out to customer and
advertising.
Fundamental objective of e-commerce and m-commerce is not to replace
conventional channels and modes because goods have to physically reach to the customer
and service have to be delivered but the complimentary role that e-commerce is playing
has:
a. Strengthen the reach of the producers to customers.
b. Reach of the customer towards producer at will and that too at any time.
c. It has also supported the rationalization of space utilized for display of goods.
d. Transportation, physical search of goods, bargaining power of the customer,
information base before purchase.
Remember the buying decision process of customers where search and decision
making are linked to each other intensely. E-commerce has this strong ability for
empowering the customers for information search and evaluating the alternatives. These
too time taking activities complimented with transactional ease has reduced the space
occupancy for the unsold goods and enhanced the shelf utilization. Larger context is
related to the movement of goods and less inventory which positively effects the
statements and profitability at large.
7.5.1 Retailing
Check Your Progress The corner grocery shop having an assortment of goods stored and displayed
Elaboratre upon Retailing. according to the current most requirements of the customers from the surroundings.
Prices offered are usually quite competitive, rationale; even credit terms with the regular
customers are available.
Grocery owner is well aware of his customers needs, has good customer Delivering Value
relationship and is very effective in placing things around or utilizing the shelf space.
He maintains the flow of inventory of goods on first in first on basis and fulfils
special requirements of the customers separately. He is expert in generating display NOTES
value by putting up point of purchases in that small space and capitalizes upon special
schemes offered by companies. He negotiates with organizations on the basis of what
kind of display value he may offer to their goods and also the volume of sales. He has
the capacity of developing their market by motivating customers to buy their goods. Check Your Progress
He has started delivering goods on need basis through telephone and even internet Elaboratre upon Life
service. He is by all definition an entrepreneur, a channel partner a retailer. Cycle Phases in Retailing.
7.5.2 Life Cycle Phases in Retailing

Retailing is a very unique experience not only because of the reasons those are
mentioned in the preceding paragraph but also because of two other important aspects:
a. Retailing evolves and cyclically moves with experience.
b. Type of store retailing also changes with the learning.
For example, there can be self-service retailing self-selection retailing, limited
service retailing and full service retailing.
Indian retail has been to a large extent a full service retailing where customer is
completely served by the retailer starting from asking for the goods to asking for the
assistance and then after sales support as well.
With reference to the evolution of retailing in a cyclical mode, the story goes like
this:
A retailer with reference to the context of his observation around the market starts
planning the assortment of goods, the movement of goods motivates him to rationalize
the assortment and after a stage he eliminates few goods and starts specializing when
he watches his major profitability levels associated with particular goods.
After a specific period of time his customers especially loyal ones and few new
ones whom he writes to acquire demands for few goods which he does not sells or has
stopped selling and cyclically again a new assortment comes into being.
This cyclicality of retail business also in association with the life cycle situation
which rises with the increase in the number of customers then stabilizes with reduction
in size of assortment and limited number of perceived profitable customers then declines
with the reduction in the number of loyalty switching customers and then again turns
around with increase in the number of goods and the size of assortment.
7.5.3 Non-Store Retailing
Reasons for this kind of retailing are numerous including:
a. Door to door customer contact
b. Customer to customer referral
c. Scope of detailed product demonstration in customers own environment Marketing Management : 131
Delivering Value d. Sustained brand equity development
e. Grievance handling
f. Offloading of similar tasks through automatic vending arrangement
NOTES g. Reaching out to customer rather than to wait for them to come.
The above aspects help in recalling names like Eureka Forbes, Oriflame, Amway,
vending machines of coke, Pepsi, bank ATMs, auto vending machines issuing boarding
passes at the airports, vending machines selling train and air tickets and so on.
7.5.4 Retailing Organizations
As we have observed in the case of store retailing the characteristics of the retailer
are suggestive of him being a multifaceted personality who on the one hand is a marketing
expert and understands the complete value chain and on the other hand is a learner who
throughout the course keeps adjusting his plans and strategies.
Now just try and blow up the size of the operations of our talked about retailer to
a departmental store level and you would find his replication into few people and the
store being a part of an integrated supply chain system having similar branches
rationalizing procurement, private labels (manufactured/ produced or purchased under
the retailers own brand name) and reach of similar goods to a very large number of
Check Your Progress customers. The examples may be Spencers, Easy day and so on.
Discuss Retailing Now try to blow up the situation a bit more by increasing the covered floor area
Organizations into few hectares and as expected footfall of few million people every year. These
types of organizations are bound to have many types of sellers, vendors, resellers,
producers involved not only as a part of the floor but also as suppliers. Try and surf
about Shoemart and Robbinsons in Manila, Sears and Walmart in USA, Coop in
Switzerland and so on.
The most important things one learns about such large retailing organizations
are:
a. They continuously observe and analyse their customers
b. They have systems and people in place to monitor and assure a flow of
inventory to the level of single items.
c. Their marketing objective is to bring in people and make shopping an
experience for them.
d. Volume is their strength and volume has to be logically controlled.
7.5.5 Wholesale
This includes activities associated with selling goods and services to those who
Check Your Progress buy reselling or business purposes. Warehousing, assortment building, transportation,
Discuss Wholesale market information dissemination and management services provision are the main
functions of the wholesaler. Wholesalers are categorized on the basis of their major
function. For example, one of the functions is associated with facilitation of trade
between manufacturer and retailers through getting orders and these types of wholesalers
Marketing Management : 132 are called brokers and agents as they get brokerage on the deals. Manufacturers may
become their own wholesalers by adding supply and storage function before goods Delivering Value
reach retailers. As in the case of retailers wholesalers also have to analyse their segment
and target their customer. All the 4Ps, i.e. product, price, place, promotion have to be
attended in synchronizing with the goods and services at hand in correlation with push
NOTES
and pull factor involved.
Some organizations have started specifically focusing on the logistics part of the
wholesaling process utilizing information technology effectively as in the case of UPS,
Federal Express, DHL and many other serving more specialised customer. They focus
on storage and movement of goods, coordination between suppliers, purchasing agents,
channel members, customers and off course manufacturers.
Some other form of wholesaling functions are sales and purchase at large levels,
assembling, auction and even retailing when retailing and wholesaling are clubbed in
together.
7.6 Summary
Reaching out to the customers is an art and it is one of the most important modes
which can be used as an important marketing strategy as well. One of the functions of
this aspect of marketing is to integrate and capitalize upon all the other Ps and the
decided segment.
7.7 Key Terms
Distribution: Product distribution (or place) is one of the four elements of

the marketing mix. Distribution is the process of making a product or service available
for use or consumption by a consumer or business user, using direct means, or using
indirect means with intermediaries.
The other three parts of the marketing mix are product, pricing and promotion.
Source: http://en.wikipedia.org/wiki/Distribution_(business)
Channel Management : The process by which a producer or supplier directs
marketing activity by involving and motivating parties comprising its channel of
distribution.
Source:http://www.businessdictionary.com/definition/channel-management.html
E-Business: Electronic business, or e-business, may be defined as the application
of information and communication technologies (ICT) in support of all the activities of
business. Commerce constitutes the exchange of products and services between
businesses, groups and individuals and can be seen as one of the essential activities of
any business. Electronic commerce focuses on the use of ICT to enable the external
activities and relationships of the business with individuals, groups and other businesses.
e-business may be defined as the conduct of industry,trade,and commerce using Marketing Management : 133
Delivering Value the computer networks.The term e-business was coined by IBMs marketing and
Internet teams in 1996. Electronic business methods enable companies to link their
internal and external data processing systems more efficiently and flexibly, to work
more closely with suppliers and partners, and to better satisfy the needs and expectations
NOTES
of their customers. The internet is a public through way. Firms use more private and
hence more secure networks for more effective and efficient management of their internal
functions.
In practice, e-business is more than just e-commerce. While e-business refers to
more strategic focus with an emphasis on the functions that occur using electronic
capabilities, e-commerce is a subset of an overall e-business strategy. E-commerce seeks
to add revenue streams using the World Wide Web or the Internet to build and enhance
relationships with clients and partners and to improve efficiency using the Empty
Vessel strategy. Often, e-commerce involves the application of knowledge
management systems.
Source: http://en.wikipedia.org/wiki/Electronic_business
Retail: Retail is the sale of goods and services from individuals or businesses to
the end-user. Retailers are part of an integrated system called the supply chain. A retailer
purchases goods or products in large quantities from manufacturersdirectly or through
a wholesale, and then sells smaller quantities to the consumer for a profit. Retailing
can be done in either fixed locations like stores or markets, door-to-door or by delivery.
Retailing includes subordinated services, such as delivery. The term retailer is also
applied where a service provider services the needs of a large number of individuals,
such as for the public. Shops may be on residential streets, streets with few or no
houses or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes
a shopping street has a partial or full roof to protect customers from precipitation. Online
retailing, a type of electronic commerce used for business-to-consumer (B2C)
transactions and mail order, are forms of non-shop retailing.
Shopping generally refers to the act of buying products. Sometimes this is done
to obtain necessities such as food and clothing; sometimes it is done as
a recreational activity. Recreational shopping often involves window shopping (just
looking, not buying) and browsing and does not always result in a purchase.
Source: http://en.wikipedia.org/wiki/Retail
Wholesaling: Definition of Wholesaling
The sale and distribution of goods to users other than end consumers. Wholesaling
involves selling merchandise to retailers, wholesalers and merchants, or to industrial,
commercial and institutional users. A wholesaler can act as a middleman, brokering
deals between these businesses. Wholesaling often occurs when large quantities of
merchandise are reassembled, sorted, then repackage, and distribute in smaller lots.
In banking, the term wholesaling refers to services that are designed for large,
institutional clients, including real estate developers, pension funds and large
Marketing Management : 134 corporations, as opposed to retail banking which provides services to standard, individual
customers. A wholesaler can also be a sponsor of a mutual fund, or act as an underwriter Delivering Value
in a new issue.
Source: http://www.investopedia.com/terms/w/wholesaling.asp
NOTES
1. Explain the various Channels of distribution with suitable diagram and examples.
2. What does physical distribution mean? Explain four important decision areas in
management of physical distribution.
3. Physical Distribution is a network of blood vessels which is necessary for the
existence of an organization. Critically analyze the statement.
4. Describe various factors influencing the design of distribution channels.
5. Discuss the role played by physical distribution in support of channels of marketing.
6. Warehousing decisions are growingly becoming more critical. Discuss quoting
examples.
7. Present a scheme of your choice of the distribution channels for a low price, low
tech domestic consumption product. Margins could be small but sales quantum
will be huge. Justify each channel option.
8. What are the major activities involved in the physical distribution of goods.
9. What are the characteristics of channels of Distribution? (Marketing Channel)
10. What are the different factors affecting on decisions of channels of distribution?
11. Enlist and explain various channels of Distribution with examples.
12. Write a short note on wholesalers and their types.
13. Technology and the Internet have great impact on Distribution. Do you agree
with this statement? Justify your opinion.
14. Channel intermediaries are essential for effective distribution of a product?
Discuss.
15. Wholesalers perform so many important functions that it is not possible to
eliminate them from the channels of distribution. Do you agree with it? Critically
evaluate the statement considering the types of wholesalers & functions performed
by them?

1. Marketing Management (A South Asian Perspective), 2009, 13th edition- chapter
12th, 13th
2. Principles of Marketing (A South Asian Perspective), 2011, 13th edition- chapter
15th, 16th.
Communicating Value
UNIT 8 COMMUNICATING VALUE
NOTES Structure
8.0 Introduction
8.1 Unit Objectives
8.2 Integrated marketing communication
8.3 Advertising
8.4 Sales promotion
8.5 Public relations and publicity
8.6 Direct and interactive marketing
8.7 Word-of-mouth marketing
8.8 Personal selling
8.9 Direct Marketing
8.10 Brand Equity
8.11 Brand Awareness
8.12 Brand Images
8.13 Elements of the communication process
8.13.1 Steps of effective communication
8.14 Sales promotion
8.15 Personal form of communications
8.16 The sales force
8.17 Summary
8.18 Key Terms
8.0 Introduction
Welcome to the mesmerizing world of Integrated Marketing Communications.

Pick up a magazine, a newspaper or switch on television and FM in the morning and
someone in addressing you about his products and services. You move out of the house
you see billboards, signboards, hoardings. You reach your destination and find someone
trying to contact you through mailers, in person. Someone is referring to some products
merits and demerits during discussions and you may be invited to some event show or
exhibition. Someone is contacting you on a companys behalf just providing you some
information.
Now look at the figure and table and we get to learn all the things which we have
been referring to may be termed as advertising, direct marketing, personal selling,
word of mouth, public relations and events together called as marketing communications.
Objectives of this unit is to establish the role of Integrated Marketing Communicating Value
Communication in Marketing Management and to make the readers understand that
why some of emphasis is given on this P od marketing and why should it be so? How
its effectively executed and what are the effects of IMC in the marketing process?
NOTES
8.1 Unit Objectives

1. Explain Integrated Marketing Communication
2. Define Advertising, Sales Promotion & Public relations, Direct & Interactive
Marketing.
3. Describe Elements of Communication Process & Sales Promotion.
8.2 Integrated Marketing Communication

Welcome to the mesmerizing world of Integrated Marketing Communications.
Pick up a magazine, a newspaper or switch on television and FM in the morning and
Advertising Sales Events & Public Direct & World-of- Personal

Promotion Experiences relations Interactive mouth Selling
& Publicity Marketing Marketing
Print and Contests, games, Sports Press kits Catalogs Person- Sales
Broadcast ads sweepstakes, Entertainment Speeches Mallings toperson presentations
Packaging-Outer lotteries Festivals Seminars Telemarketing Chat rooms Sales
Packaging insets Premiums and gifts Arts Annual reports Electronic Blogs meetings
Motion pictures Sampling Causes Charitable shopping Incentive
Brochures and Fairs and trade Factory tours Donations TV shopping programs
Booklets shows Company PublicationsCommunity Fax mail Samples
Posters and Exhibite Museums relations E-mail Fairs and
leaflets Demonstrations Street Activities Lobbying Voice mail trade
Directories Coupons Identity media Blogs shown
Reprints of ads Rebates Company magazine Web sites
Bkboards Low-Interest
Display signs financing
Point-of-purchase Entertinment
displays Trade-in allowances
Audovisual Continuty programs
material Tie-ins
Symbols and
logos
videotapes
Table 8.1 Integrated Marketing Communication
Communicating Value
Advertising
Sales
promotion
NOTES Events & Brand

experiences awareness
Public relations Brand

& publicity Marketing image
Brand
Communications Equity
Direct & Interactive Program Brand
marketing responses
Word-of-mouth Brand
marketing relationships
Personal
selling
Direct
marketing
Fig 8.1 Integrated Marketing Communication
someone in addressing you about his products and services. You move out of the house
you see billboards, signboards, hoardings. You reach your destination and find someone
trying to contact you through mailers, in person. Someone is referring to some products
merits and demerits during discussions and you may be invited to some event show or
exhibition. Someone is contacting you on a companys behalf just providing you some
information.
Now look at the figure and table and we get to learn all the things which we have
Check Your Progress been referring to may be termed as advertising, direct marketing, personal selling, word
Zindagi ka saath bhi of mouth, public relations and events together called as marketing communications.
zindagi k baad bhi Now closely observe the components of any form of communications in the table
implies recall, which _ say advertising, print and broadcast ads and try and associate any print and broadcast
primarily is an important you remember say LIC Zindagi ka saath bhi zindagi k baad bhi with
objective. Explain with
a. Your recall or just recall
reference to context of the
b. Buying decision-especially the information and the evaluation stage
purpose of Integrated
Marketing c. Positioning of the product/organization/ service/ institutions
Communication especially d. Ask that are you one of the targets of this advertisement through the story
Advertising. board associated and the line said?
e. What is that you learn about the product, price, and the place associated with
the product?
f. Have you seen this advertisement anywhere else?
g. Has someone been talking about this product?
h. Did you ever search for an LIC agent to contact you in relation to this
advertisement?
Marketing Management : 138 i. Did anyone ever contact you for the sales of this product?
j. Have you ever been to an event associated with this product? Communicating Value
There are few important fundamentals which come to fore while we try and answer
these questions, which are as follows?
a. None of the modes of communications we say stand alone in terms of reaching NOTES
the customer and instigating a process of selling and buying.
b. Therefore there has to be a well thought of and specifically crafted set of
communications for materializing the sales.
c. This communications should be relevant to
i. The target customer
ii. Position the product rightly
iii. Must have a strong recall value
iv. Should be associated with the way the product would get associated
with a customers life for example a soft drink, must be chilled if you
say thanda matlab coca-cola.
Meaning thereby that
d. This integrated communication must be capable of enhancing the brand equity
i.e. (Brand awareness+ Brand Image + Brand Response+ Brand Relationship).
e. The components of the Integrated Marketing Communication (IMC) have to
be budget, timed and monitored for their desired and specified results.
f. IMC then has to be regularly accompanied with the continuous marketing
feedback and research so as to be re-crafted and re-associated with the
concurrent requirements of a marketing plan.
Before going for further discussion and analysis lets get familiar with few concepts
Advertising
Print and broadcast ads
Packaging Outer
Packaging inserts
Motion pictures
Brochures and booklets
Posters and leaflets
Directories
Reprints of ads
Billboards
Display signs
Point of purchase displays
Audio-visual material
Symbols and logos
Videotapes Marketing Management : 139
Communicating Value Sales promotion
Contests, games, sweepstakes, lotteries
Premiums and gifts
NOTES Sampling
Fairs and trade shows
Exhibits
Demonstrations
Coupons
Rebates
Low-interest financing
Entertainment
Trade-in allowances
Continuity programs
Tie-ins
Events and experiences
Sports
Entertainment
Festivals
Arts
Causes
Factory tours
Company museums
Street activities
Public relations and publicity
Press kits
Speeches
Seminars
Annual reports
Charitable donations
Publications
Community relations
Lobbying
Identity media
Company magazine
Direct and interactive marketing
Catalogues

Mailings
Telemarketing Communicating Value
Electronic shopping
TV shopping
Fax mail NOTES
E-mail
Voice mail
Blogs
Web sites
Word-of-mouth marketing
Person-to-person
Chat rooms
Blogs
Personal selling
Sales presentations
Sales meetings
Incentives programs
Samples
Fair and trade shows
Marketing communication programme
8.3 Advertising
According to American Marketing Association, Advertising is defined as, The
placement of announcements and persuasive messages in time or space purchased in
any of the mass media by business firms, nonprofit organizations, government agencies,
and individuals who seek to inform and/ or persuade members of a particular target
market or audience about their products, services, organizations, or ideas.
Message
Message generation
Message evaluation and
selection
Message execution
Money
Social responsibility
Factors to consider:
review
Mission Stage in PLC Measurement
Sales goals Market share and Communication
Advertising objectives consumer base impact sales impact
Competition and
clutter Advertising
Media
frequency product
Reach, frequency, impact
substitutablity
Major media types
Specific media vehicles
Media timing
Geographical media
allocation
Fig 8.2 5Ms of Advertising
Communicating Value
8.4 Sales Promotion
According to American Marketing Association, Sales promotion is defined as
NOTES the media and nonmedia marketing pressure applied for a predetermined, limited period
of time at the level of consumer, retailer, or wholesaler in order to stimulate trial, increase
consumer demand, or improve product availability.
Events and experiences:
Definition not on AMA
8.5 Public Relations and Publicity

American Marketing Association defines Public Relations as, that form of
communication management that seeks to make use of publicity and other nonpaid
forms of promotion and information to influence the feelings, opinions, or beliefs about
the company, its products or services, or about the value of the product or service or the
activities of the organization to buyers, prospects, or other stakeholders.
However, Publicity is defined as, The non-paid-for communication of information
about the company or product, generally in some media form by the American
Marketing Association.
8.6 Direct and Interactive Marketing

According to American Marketing Association, direct marketing is defined as,
1. (retailing definition) A form of nonstore retailing in which customers are exposed to
merchandise through an impersonal medium and then purchase the merchandise by
telephone or mail. 2. (channels of distribution definition) The total of activities by
which the seller, in effecting the exchange of goods and services with the buyer, directs
efforts to a target audience using one or more media (direct selling, direct mail,
telemarketing, direct-action advertising, catalog selling, cable selling, etc.) for the
purpose of soliciting a response by phone, mail, or personal visit from a prospect or
customer.
8.7 Word-of-Mouth Marketing

According to American Marketing Association, Word-of-mouth marketing is
defined as, 1. (Consumer behaviour definition) This occurs when people share
information about products or promotions with friends. UPP/JCO] 2. (consumer
behaviour definition) The information imparted by a consumer or individual other than
the sponsor. It is sharing information about a product, promotion, etc., between a
consumer and a friend, colleague, or other acquaintance. For example, a consumer
Marketing Management : 142 may tell a friend about a particularly good price he or she received on a product. Research
has found that word-of-mouth communication about products is more likely to be Communicating Value
negative than positive.
8.8 Personal Selling NOTES
According to American Marketing Association, personal selling is defined as

selling that involves a face-to-face interaction with the customer.
8.9 Direct Marketing

According to American Marketing Association, Direct marketing is defined as,
1. (Retailing Definition) A form of nonstore retailing in which customers are exposed
to merchandise through an impersonal medium and then purchase the merchandise
by telephone or mail.
2. (Channels of Distribution Definition) The total of activities by which the seller,
in effecting the exchange of goods and services with the buyer, directs efforts to a
target audience using one or more media (direct selling, direct mail, telemarketing,
direct-action advertising, catalogue selling, cable selling, etc.) for the purpose of
soliciting a response by phone, mail, or personal visit from a prospect or customer.
8.10 Brand Equity

American Marketing Association defines Brand Equity as, The value of a brand.
From a consumer perspective, brand equity is based on consumer attitudes about positive
brand attributes and favorable consequences of brand use.
8.11 Brand Awareness

Brand awareness is a marketing concept that enables marketers to quantify levels
and trends in consumer knowledge and awareness of a brands existence. At the aggregate
(brand) level, it refers to the proportion of consumers who know of the brand. Source:
The MASB Common Language Project.http://www.themasb.org/common-language-
project/ http://en.wikipedia.org/wiki/Brand_awareness
8.12 Brand Image

According to American Marketing Association, it is defined as, The perception
of a brand in the minds of persons. The brand image is a mirror reflection (though
perhaps inaccurate) of the brand personality or product being. It is what people believe
about a brand-their thoughts, feelings, expectations.
Brand response: Marketing Management : 143
Definition not available on AMA
Communicating Value Brand relationships
Definition not available on AMA
NOTES
8.13 Elements of the Communication Process
Sender Encoding Message Decoding Receiver

Media
Noise
Feedback Response
Fig 8.3 Elements of the Communication Process
Models
Stages AIDA Hierachy-of-Effects Innovation-Adoption Communications

Model Model Model Model
Awarecess Exposure
Cognitive stage Attention Awarecess Reception
Knowledge Cognitive response
Interest Liking Interest attitude
Affective Stage Perference
Desire Conviction Exatuation Interntion
Trial
Behavior stage Action Purchase Behavior
Adoption
As we have seen and observed there are few elements of a communication process-
a. Sender
b. Receiver
c. Message
d. Media
e. Encoding
f. Decoding
g. Response
h. Feedback
i. Noise
Message encoding in an effective manner is an important marketing task because Communicating Value
it not only has to get associated with the right positioning but also has to bring in the
right response which we have seen is directly associated with brand equity development.
Now comes in the role of an effective combination of efficient media. This depends NOTES
upon the message itself, the characteristics of the receiver, the behavioural and the
value traits of the sender as well as the receiver, the allotted/ allocated budget and the
reach and effectiveness of media itself.
There are two important things which we must understand while referring to the
choice of media i.e.
a. Though there has been a lot of research done on the effectiveness and response
generated by separate media and in combination of other formulae as well
but there is not one single formula to explain the relationship of choice of
media, timing of this choice and level of response of the customer.
b. Its a matter of continuous learning and monitoring of ones on actions through
response and customer analysis which leads to a desired result.
8.13.1 Steps of Effective Communication
Identify target audience
Determine objectives
Design communications
Select channels
Establish budget
Decide on media mix
Measure results
Manage intergrated marketing communications
Developing effective communication is associated with the following procedure

and steps:
a. Identification of the right target audience
b. Determining and stating the exact communications objectives. This includes
target audience and purpose.
c. Design and development of the communications. This includes story boards,
visuals, and tag lines from initial most stage to the extent because of the
simple reason that the actual positioning of the product has to live and has to
be strengthened.
d. Selection of communication channels. This is associated with a cumulative
and combined effectiveness and reach of the channel either in a sequence or Marketing Management : 145
Communicating Value at random but the purpose is increasing recall through complimentarity.
e. Budget allocation. This is relative and depends upon the part experience,
sales and foreseen role of communication along with the stage of the life
cycle of the product.
NOTES
f. Then comes in actual communication mix result measuring criterion and
analysis.
g. In the end rethinking and re-planning on the components through the
feedback.
Budget- Brand awareness /recall-advertising and sales promotion
A very crucial decision as we have understood is associated with allocation of
money on integrated marketing communications mix. The fundamental objective is to
achieve first the brand awareness and recall and then to strengthen the brand equity,
because of the reason that it is going to propel sales and keep up the levels of growth.
But again the question remains at what cost?
The answer is highly subjective and inexperience and learning based. But there
are few insights concentrated to the circumstances and the objectives of an organization.
For example,
a. If budget itself is a consideration then low cost integrated communications
mix would be preferred however big the plans are an advertiser may initiate
IMC with local media like FM radio, hoardings, etc.
b. If competition is the concentric objective then it goes by competition for
example RIN and Ariel, coke and Pepsi, Pampers and Huggies, food
supplements and so on
c. If result of a specific advertisement or IMC exercise within a specific time
frame is the objective then objective and task method where marketer
predetermines, the kind of sales, market share and recall he wishes to generate
and then focus on the budget evaluating the possible result of each and every
penny he would spend but this form of budgeting is largely associated with
the sales based IMC.
d. Now comes in a precedence based IMC which is simple but adopted by
experienced and also suitably large organizations who not only have
understood
i. Generating suitable IMC mix
ii. Generating sales through IMC but also know the long term association
of IMC with brand equity.
Advertising as we have seen in definitions is any paid form of non-personal
communication. Advertising may be an individual, institution or organizations. The
procedure of advertising is again similar to the objectives of a communication mix or
may say that it is a subset of IMC. Step one is the decision on objectives for example if
a student is being launched and its global brand equity has to be capitalized for generating
awareness in India. Then the campaign might be Now in India or after conquering
the world now in India. This would require TV, newspapers (in a reducing mode), FM Communicating Value
and hoardings and the budget accordingly and this is step 2. Step three is what has to be
said and how it has to be said? What has the answer in the creativity i.e. the visuals,
the words, the expressions, the design, the music, the storyboard and everything for
NOTES
example Tandursti ki raksha and Lifebuoy or yeh dil maangey more or khushiyon
ki chabi or desh ki Dhadkan and so many others. Here one has to decide on recall
generating points i.e. music, visual, character, model, location, length of storyboard
because all these will affect the budget as well as legal boundations of not changing
models often as well as restricting or expressing oneself in a frame which has to be
reduced or enlarged along with the length of the campaign and the number of media to
be involved. For example, a full length 30 seconds advertisement appear on television
about Gujarat reflective of its tourism attraction having Shri Amitabh Bachchan as the
model, the messenger. A part of the same advertisement appears in newspapers FM on
hoardings and so on making it a complete campaign.
Next and the final step is the evaluation of the campaign for example there was a
campaign called athithi devo bhava for developing tourism in India especially foreign
tourism. This campaign when evaluated supported in increasing number of tourists by
ten times as per the reports of the tourism industry analysis and various industry surveys.
Now comes in the sales promotion part
8.14 Sales Promotion

All the type of short term incentive tools offered to customers with channel partners
or either of them to instigate/stimulate the level of product sales and services sales.
These may include direct-discounts, offers, cash refunds, free trials, samples, warranties,
extra period of guarantee, goods with goods and any designed attraction.
Then come in events and public relations. The objective is attracting people
(customers), increase sales and proper growth.
8.15 Personal form of Communications

Direct marketing where channels are not used is related to interaction through
sales force, mail, catalogues, telemarketing, interactive TV marketing through dedicated
channels, Kiosks, websites and mobile devices and telecommunications.
There are different advantages associated with all the possible direct marketing
avenues. For example, mail can carry a larger content and may be consistent as in the
case of Readers Digest.
In case of telemarketing refutation of the customer brings risk but follow ups are
easy and it involves less cost. For example, have you heard this voice that sir Im
calling from such and such organization and wish to make you aware of few of our new
schemes? Home TV where you find so many products which you would not otherwise Marketing Management : 147
Communicating Value and then as per the buying behaviour and models associated with it we tend to buy
those products.
Web is becoming an important source of information and purchase and marketers
NOTES are trying enhancing the interactive levels and the attraction of the websites.
Again the marketers know that they cannot do without channels but its natural
and beneficial if they reduce their dependency on them and of the customer reaches to
the marketers by themselves/himself.
8.16 The Sales Force

The most important, reliable, answerable, trustworthy mode of direct marketing
because of the simple reason that an organization is personally and physically represented
and humans best interacts with humans.
We need to talk of sales force as a mode there comes in a need for us to understand
and associated.
a. Human behaviour with consumer and workforce
b. Maslows need hierarchy in terms of consumer satisfaction and work
satisfaction.
c. Human resource retention in relation to customer retention.
d. Human resource management in relation to customer relationship
management, customer satisfaction and customer loyalty.
And these requirements and relative understanding brings in:
1. Recruiting and selecting right sales force
2. Training and motivating them
3. Right supervision
4. Appraisal and rewards
5. Evaluation of performance and processes of recruitment, selection, training,
supervisions appraisal and rewards along with right compensation.
The objective is to develop self-motivated, propelled and efficient workforce with
dignity and integrity which effectively enhances the brand equity of products and the
company by prospecting, materializing and establishing sales through right customer
forecasting, approach, representation, offer, delivery and trust for grievance handling
if any.
Proposition of sales force effort with other communications
Ideally LIC, Eureka Forbes, Amway, Inalsa, Indian Postal Services, Banks and
many others have utilized a large proportion of sales force with other communications,
but again its cyclical in most of the cases where cost, competition and customer
requirements compels a company to swing between the two creating a time required
balance either completely equated or tilted.
Communicating Value
8.17 Summary
This unit is about integrating marketing communication is how to reach a customer

and fulfil the objective of the marketing campaign and stategically using modes of NOTES
communication effectively. This unit dealt with advertising, sales promotion, public
relations and publicity, direct marketing and word-of-mouth and personal selling etc.
Communication process is explained and also how various types of model works and
what is an effective way of communication.
8.18 Key Terms
Integrated Marketing Communication (IMC) : Is a term that emerged in the late

20th century regarding application of consistent brand messaging across myriad
marketing channels. The term has varying definitions depending upon the source cited.
These definitions continue to form an . ongoing discussion in marketing - and therefore
are included here for review, as the differences in these discussions can play a part in
how IMC is viewed and utilized.
1. The first definition for integrated marketing communication came from the
American Association of Advertising Agencies (also 4A's) in 1989, defining
IMC as "an approach to achieving the objectives of a marketing campaign
through a well-coordinated use of different promotional methods that are
intended to reinforce each other." The 4A's definition of IMC recognizes the
strategic roles of various communication disciplines (advertising, public
relations, sales promotions, etc.) to provide clarity, consistency, and increased
impact when combined within a comprehensive communications plan.
Basically, it is the application of consistent brand messaging across both
traditional and non-traditional marketing channels.
2. The Journal of Integrated Marketing Communication from the Medill School
of Journalism at Northwestern University refers to IMC as "a strategic
marketing process specifically designed to ensure that all messaging and
communication strategies are unified across all channels and are centered
around the customer." IMC is used practically to allow one medium's weakness
to be offset by another medium's strength, with elements synergized to support
each other and create greater impact.
3. A more contemporary definition states, 'True IMC is the development of
marketing strategies and creative campaigns that weave together multiple
marketing disciplines (paid advertising, public relations, promotion, owned
assets, and social media) that are selected and then executed to suit the
particular goals of the brand." Instead of simply utilizing various media to
help tell a brand's overall story, with IMC the marketing leverages each
communication channel's intrinsic strengths to achieve a greater impact
together than each channel could achieve individually. It requires the marketer Marketing Management : 149
Communicating Value to understand each medium's limitation, including the audience's ability/
willingness to absorb messaging from that medium. This understanding is
integrated into a campaign's strategic plan from the very beginning of planning
- so that the brand no longer simply speaks with consistency, but speaks with
NOTES
planned efficacy. This concept inherently provides added benefits that include:
a singular/synchronized brand voice and experience, cost efficiencies
generated through creativity and production, and opportunities for added
value and bonus.
Source: http://en.wikipedia.org/wiki/lntegrated marketing communications
Advertising : Is a form of communication for marketing and used to encourage,
persuade, or manipulate an audience (viewers, readers or listeners; sometimes a specific
group) to continue or take some new action. Most commonly, the desired result is to
drive consumer behavior with respect to a commercial offering, although political and
ideological advertising is also common. This type of work belongs to a category called
affective labor. In Latin, ad vertere means "to turn toward." purpose of advertising may
also be to reassure employees or shareholders that a company is viable or successful.
Advertising messages are usually paid for by sponsors and viewed via various traditional
media; including mass media such as newspaper, magazines, television commercial,
radio advertisement.outdoor advertising or direct mail; or new media such as blogs,
websites or text messages.
Commercial advertisers often seek to generate increased consumption of their
products or services through "branding," which involves associating a product name or
image with certain qualities in the minds of consumers. Non-commercial advertisers
who spend money to advertise items other than a consumer product or service include
political parties, interest groups, religious organizations and governmental agencies.
Nonprofit organizations may rely on free modes of persuasion, such as a public service
announcement (PSA).
Modern advertising was created with the innovative techniques introduced with
tobacco advertising in the 1920s, most significantly with the campaigns of Edward
Bernays, which is often considered the founder of modern, Madison Avenue advertising.
In 2010, spending on advertising was estimated at $142.5 billion in the United
States and $467 billion worldwide
Internationally, the largest ("big four") advertising conglomerates are Interpublic,
Omnicom, Publicis, and WPP.
Source: https://en.wikioedia.org/wiki/Advertising
Sales promotion : Is one of the seven aspects of the promotional mix. (The other
six parts of the promotional mix are advertising, personal selling, direct marketinq,
publicity/public relations,corporate image and exhibitions.) Media and non-media
marketing communication are employed for a pre-determined, limited time to increase
consumer demand, stimulate market demand or improve product availability. Examples
Marketing Management : 150 include contests, coupons, freebies, loss leaders, point of purchase displays, premiums,
prizes, product samcles. and rebates Communicating Value
Sales promotions can be directed at either the customer, sales staff, or distribution
channel members (such as retailers). Sales promotions targeted at the consumer are
called consumer sales promotions. Sales promotions targeted at retailers and wholesale NOTES
are called trade sales promotions. Some sale promotions, particularly ones with unusual
methods, are consideredgimmicks by many.
Sales promotion includes several communications activities that attempt to provide
added value or incentives to consumers, wholesalers, retailers, or other organizational
customers to stimulate immediate sales. These efforts can attempt to stimulate product
interest, trial, or purchase. Examples of devices used in sales promotion include coupons,
samples, premiums, point-of-purchase (POP) displays, contests, rebates, and
sweepstakes.
Source: http://en.wikipedia.org/wiki/Sales promotion
Public relations (PR) : Is the practice of managing the spread of information
between an individual or an organization and the public. Public relations may include
an organization or individual gaining exposure to their audiences using topics of public
interest and news items that do not require direct payment. The aim of public relations
by a company often is to persuade the public, investors, partners, employees, and other
stakeholders to maintain a certain point of view about it, its leadership, products, or of
political decisions. Common activities include speaking at conferences, winning industry
awards, working with the press, and employee communication.
Source : http://en.Wikipedia.org/wiki/Public relations
Publicity : Is the deliberate attempt to manage (he public's perception of a subject.
The subjects of publicity include people (for example, politicians and performing artists),
goods and services, organizations of ail kinds, and works of art or entertainment. Publicity
is the act of attracting the media attention and gaining visibility with the public, it
necessarily needs the compliment of the media it cannot be done internally because it
requires the attention of the publicist and it is the publicist that carries out publicity
while
PR is the strategic management function that helps an organization communicate,
establish and maintain relation with the important audiences, It can be done internally
without the use of media
From a marketing perspective, publicity is one component of promotion which is
one component of marketing.
Source: http://en.wikipedia.org/wiki/Publicity
Direct and interactive marketing : Direct marketing is a channel-agnostic form
of advertising that allows businesses and nonprofits organizations to communicate
straight to the customer, with advertising techniques that can include Cell Phone Text
messaging, email, interactive consumer websites, online display ads, fliers, catalog
distribution, promotional letters, and outdoor advertising.
Communicating Value Direct marketing messages emphasize a focus on the customer, data, and
accountability. Characteristics that distinguish direct marketing are:
1. Marketing messages are addressed directly to the customer and/or customers.
Direct marketing relies on being able to address the members of a target
NOTES
market. Addressability comes in a variety of forms including email addresses,
mobile phone numbers, Web browser cookies, fax numbers and postal
addresses.
2. Direct marketing seeks to drive a specific "call to action." For example, an
advertisement may ask the prospect to call a free phone number or click on a
link to a website.
3. Direct marketing emphasizes trackable, measurable responses from customers
regardless of medium.
Direct marketing is practiced by businesses of all sizes from the smallest start-
up to the leaders on the Fortune 500. A well-executed direct advertising campaign can
prove a positive return on investment by showing how many potential customers
responded to a clear call-to-action. General advertising eschews calls-for-action in favor
of messages that try to build prospects' emotional awareness or engagement with a
brand. Even well-designed general advertisements rarely can prove their impact on the
organization's bottom line.
Source: http://en.wikipedia.org/wiki/Direct marketing
Interactive Marketing refers to the evolving trend in marketing whereby marketing
has moved from a transaction-based effort to a conversation. John Deighton argued that
interactive marketing features "the ability to address an individual and the ability to
gather and remember the response of that individual" leading to "the ability to address
the individual once more in a way that takes into account his or her unique
response"(Deighton 1996). Interactive marketing is not synonymous with online
marketing, although interactive marketing processes are facilitated by internet
technology. The ability to remember what the customer has said is made easier when
we can collect customer information online and we can communicate with our customer
more easily using the speed of the internet. Amazon.com is an excellent example of the
use of interactive marketing, as customers record their preferences and are shown book
selections that match not only their preferences but recent purchases.
Source: http://en.wikipedia.org/wiki/lnteractive marketing
Word-Of-mouth marketing : Word-of-mouth marketing (WOMM, WOM
marketing), also called word of mouth advertising, is an unpaid form of promotion
oral or writtenin which satisfied customers tell other people how much they like a
business, product, service, or event. According to Entrepreneur Media, word-of-mouth
is one of the most credible forms of advertising because people who don't stand to gain
personally by promoting something put their reputations on the line every time they
make a recommendation.
Marketing Management : 152 Source: http://en.wikipedia.org/wiki/Word-of-mouth marketing

Personal Selling : In the language of sales and marketing, "personal selling" singles Communicating Value
out those situations in which a real human being is trying to sell something to another
face-to-face. One might well ask what other type of genuine selling there is. The answer
is that personal selling has a functional equivalent. The modern differentiation between
NOTES
"personal" and other selling arises from the fact that a very substantial volume of ordinary
purchasing of food, textiles, household goods, entertainment, travel, subscriptions, fuel,
books, etc., takes place without the presence of a live facilitator. The only human contact
is usually the check-out clerk; and corporations are laboring hard to replace even this
humble functionary by machines that read barcodes and recognize credit cards. In the
vast majority of these situations whatever persuasion has been applied to the shopper
has been delivered by disembodied images on television, radio, in print, by coupons, by
signage, and by packaging. Thus "impersonal selling" is by advertising, sales promotion
and public relations.
Source: http://www.inc.com/encycJopedia/personal-selling.html
Sales promotion : Sales promotion is one of the seven aspects of the promotional
mix. (The other six parts of the promotional mix are advertising, personal selling, direct
marketing, publicity/public relations,corporate image and exhibitions.; Media and non-
media marketing communication are employed for a pre-determined, limited time to
increase consumer demand, stimulate market demand or improve product availability.
Examples include contests, coupons, freebies, loss leaders, point of purchase displays,
premiums, prizes, product samples, and rebates
Sales promotions can be directed at either the customer, sales staff, or distribution
channel members (such as retailers). Sales promotions targeted at the consumer are
called consumer sales promotions. Sales promotions targeted at retailers and wholesale
are called trade sales promotions. Some sale promotions, particularly ones with unusual
methods, are consideredgimmicks by many.
Sales promotion includes several communications activities that attempt to provide
added value or incentives to consumers, wholesalers, retailers, or other organizational
customers to stimulate immediate sales. These efforts can attempt to stimulate product
interest, trial, or purchase. Examples of devices used in sales promotion include coupons,
samples, premiums, point-of-purchase (POP) displays, contests, rebates, and
sweepstakes.
Source: http://en.wikipedia.org/wiki/Sales promotion

1. State briefly the objectives of Advertising.
2. Distinguish between advertising and personal selling.
3. Define & Explain promotion mix with suitable examples.
4. Acer wants to promote its sales in the market. Suggest any three sales Promotion
techniques for the purpose. Marketing Management : 153
Communicating Value 5. What are the major roles of Promotion and Advertising in Marketing?
6. Advertising expenses are usually wasteful, with no guarantee of enhanced sales or
higher loyalty from among the target audience. Do you agree with this statement?
Present your view point.
NOTES
7. A multinational FMCG company known for its confectionery products, is planning
to launch a new brand of chewing gum in Indian markets. Chewing gum will be
available nationwide in orange, mint and strawberry flavor. Design a suitable
promotional mix for the above product. Assume your own brand name and clearly
specify the target markets.
8. How personal selling is important to a. Business men b. Customer and c. Society
9. What are the basic features, Constituents and components of products. Explain
with suitable examples.
10. Explain the importance of personal selling.
11. Suggest two ways to promote killing mosquitoes Device in Indian market. Channel
intermediaries are essential for effective distribution of a product? Discuss.
12. Which media will you choose to advertise refined oil product and why?
13. Is there any difference between Public Relations and Publicity? Justify your answer.
14. Enumerate and explain the importance and various Techniques of sales promotion.
15. Write short notes (Any two):
a) Latest Trends in packaging.
b) Functions of advertising.
c) Direct Marketing.
16. Write Short Notes: a) New Trends in Packaging. b) Internal Marketing. c) Online
Marketing.
17. The overall objective of the promotion is to stimulate demand for a product. Through
the television advertisement, Govt. of India promotes the benefits of sanitization,
of hands to stay away from various diseases which is aimed at stimulating primary
demand.
Advertisements of various Sanitizers are aimed at stimulating specific demand.
Identify any 2 television commercials of one aim at stimulating primary demand
& one aimed at stimulating selective demand. Discuss how each attempts to achieve
its objective.
18. How do target market characteristics determine which promotional methods to
include in a promotion mix? Assume a company is planning to promote a health
drink to both adults & children. Along what major dimensions the promotional
efforts have to be different?
19. Which of the various promotional methods would you emphasize if you were
developing the promotion mix of the following products?
a. Washing machine
Marketing Management : 154 b. Cereal
c. Chocolate candy Communicating Value
d. Compact dick
e. Big TV
20. What is public relations? Who can an organization reach through Public Relations? NOTES
21. What is personal selling? How does it differ from other types of promotional
activities?
22. Identify the elements of the personal selling process. Must a sales person include
all these elements when selling a product to a customer? Why or Why not?
28. What is sales promotion? Why is it used? Discuss with e.g.
a. Consumer sales promotion methods
b. Trade sales promotion methods
23. A company wishes to launch a new toothpaste which can effectively prevent cavities
& tooth decay. But the toothpaste market is highly crowded with multiple brands.
Assume you were to evolve a marketing communication strategy. Which concept
/ appeal you will use & why?
24. Apply the major elements of the promotional mix to market CRY- Child Relief &
you in India.
References
Deepa Chandrasekaran, Gerard J. Tellis (2011). Getting a Grip on the Saddle:
Chasms or Cycles? Journal of Marketing: Vol. 75, No. 4, pp. 21-34.
1. Marketing management (A South Asian Perspective), 2009, 13th edition- chapter
15th, 15th, 16th, 17th.
2. Principles of Marketing (A South Asian Perspective), 2011, 13th editon- chapter
17th, 18th, 19th.

Creating Long Term Growth
UNIT 9 CREATING LONG TERM
GROWTH
NOTES
Structure
9.0 Introduction
9.1 Unit Objectives
9.2 Why do Companies introduce new Product and Services
9.3 Product Development and emergence of new Products.
9.3.1 New Product Development
9.4 Global Markets
9.5 Holistic Marketing - The Future
9.6 Summary
9.7 Key Terms
9.0 Introduction
New in itself is a motivating term and when associated with products, services
and customers brings in hope, strategy, innovation, span, scope and a larger picture,
which summarily means growth and execution and action of everything that is understood
and practiced.
Prime objective of this unit is to take readers to the culmination of the understanding
developed till now in the course and to expand the horizon of the view developed to the
universal and global levels.
9.1 Unit Objectives

1. Describe Product Development, Global Market & Holistic Marketing.
9.2 Why do Companies Introduce New Products and

Services?
To enter into new markets i. e. new customer.
To include non consumers into their customer list.
To expand into their segment by introducing new target customers.
To expand the life of the existing products.
To enhance market share. Creating Long Term Growth
To beat competition.
Precause of techrological changes.
Precause of research and Development. NOTES
Precause the customer wants it.
Actually because of all of the above reasons.
9.3 Product Development and Emergence of New

Products
In an ineritable process. If one carefully watches and lists down the member of
products any company in developing and lamching, one get to learn that companies
have a large and intense focus on their activity. For exam ple lets look at types of tooth
brushes, hair oils, tooth pastes, shampoos, water purifiers (go to the websites of all the
water purifiers brands one by one and count the models) shoes, pens, wrist watches,
have you ever
It is ever imperative to understand and vishalize at this stage the about the role this Check Your Progress
particular products in going to play i. e. is it an extension to same existing product in a Product development and
new form or is it a new product satufying a particular need earlier satisfied by some emergence of new
other product. products is an inevitable
process.
In it against the competition or beyond the competition? Then comes in the past of
production process analysis and analysis on the complete supply chain management
system.
New comes the IMC and positioning process but before this market testing and
once the responce is as expected the delivery schedule and the process. Sometimes
when the costs and prices (or volume) in suppored to be high the product may be tested
intermediarcity and may be launched in an intermediary stage for example it often
happens in case of automotives wherein the product which in conciered at the end has
one or two intermediary births sometimes it can be for the same target in terms of model
intermechiaries and sometimes different models for different target with in the same
segment.
Same happens with 2 different specializations in an MBA programme or 2 different
MBA programmes or 2 different business based courses notices types of cookers are
there in the market? beds, Dinning tables, offcourse mobile phones, televisions, Laptops,
bicycles, burgers and even management courses.
9.3.1 New Product Development
New product development requires innovation.
Irmovation in research and development.
Irmovationof production and processes.
Irmovation in marketing process. Marketing Management : 157
Creating Long Term Growth i. e. Irmovation in marketing organizational structure and funchioning.
For example visit the website of a company called Ideo and you will find hundreds
of movies associated with what they have been doing on all the above accounts. Starting
NOTES from designing bicycles to aeroplane ..... to clean room chairs and so many other things
ever contest they have been innovation on many accounts.
Further on the basis of their innovations many organizations have been innovation
on their production processes, marketing processes and organization to cater to more
customers and for a continued growth.
There are stages associated with the evolution and development of new products.
Either a need comes in for example mahindra automotives was finding a decline in their
sales when they started thinking about a new product or technology changes which
either changes the production process or the raw material processing or legality becomes
a reason that a particular form of product and production has to be discontinued. medical
equipment and drugs can be two important examples for the above two conditions. or
competition in breaking away and doing something unique or an idea that emerges by
itself for example someone wants to handle everything by remote control even data
transfer and access.
The need and the complimentary idea in then met with in conceptual development
where one imaginess through product on paper, the fundamental science and mathematics
associated with and then about how it would work for example a digital diary invented
by Mr. Sam Pitroda.
Then comes in the part of idea and concept testing where prosentations and
discussions amongst the poor group and then with prospective customers takes place.
The idea / concept get further strengthened.
- Now comes in the market analysis part which converts into market planning
which further expands into business analysis where the feasibility in analysed and the
future in .....
The whole process of a new product development becomes successful with the
acceptability of customers. for example water purifiers, Washing Machines, computers
but there are few not so successful or accepted products for example dish washers,
byhind vehicles, book readers and so on. Some get extremely acceptable and popular in
the process like maggi and some vanish out largely like vacumizers, sharing .... etc.
9.4 Global Markets

Prut first of all, in there any local market new specifically there in but broadly
every product categery new has a global market and every product has a global market
scope. This scope has relavance Because of many reasons especially that production
capacities, competition, technology and trade conditions (intergation) requires for one
and all to think globally. For example would DHL, UPS, Federal Express be what they
Marketing Management : 158 are if they would not have gone global? Maruti Suzuki, Hyundai, Nokia, Apple, Samsang,
LG, TATAs, Reliance, Airtel, Videocon, Hero, Infosis, Lognazent Technologies, Tubilant Creating Long Term Growth
and you have a long list.
Going global requires international marketing understanding objectives, policies,
processes, production capacity and strategic human resource management. NOTES
Now comes in the decision on how to go global? By simply reaching out to customer
through exports, framchise, licensing or investment. The choice actually depands upon Check Your Progress
the market prospect, legalities and growth span. For example Suzuki has long associated 1. Going global requires
in belongingness to India which chevrolet has not done so effectively. The committment international marketing
at all the levels and the stages of a marketing plan and programme would then depend understanding
upon the intensity of belongingness a company wants to have with a particular market. objective, policies,
Because if the delongingness in high investment and organizational stake would be processes, production
high and then STP and 4 ps would reflect it for example Mc Denalds, Dominoz, Samsung, capacity and strategic
LG, Hyundai, Suzuki and others. For example TATAs in united kingdom are on of the human resource
biggest foreign employers. management.
2. New product
Organizations have to adopt the culture of the countries they are going to cultural development process
adoptation in an intense and a sensitive process if someone does it carefully it reaches to requires innovation
the roots of a country like HUL and it doesn't then goes back from the doorsteps like
virgin mobile.
9.5 Holistic Marketing - The future

Remember the discussion in the beginning of this course when we build to realize
that `Marketing is committment'. But who's committment?
live with the personality, utility or image of the products.
Check Your Progress
Marketing in everyones
They should be aware of the procause inverted the customer, the competition
committment. People from
and other shareholders.
any functionality with in
For example I ured to work with a Newspaper in its marketing department, but if an organization should
I didnot understand how the production is done, what it takes to ..... in the news, how
the newspaper in circulated, would I ever justify my function? Similarly if the editorial
people donot understand the target segment of a newspaper i. e. the readers and the
advertisers then developing the growth of the readership and advertisement revenue is
not possible.
In totality every person in an organization has to be the brand ambasiader of the
company then only all the process can be integrated to project the products rightly and
to live up to the committment levels desired.

Creating Long Term Growth Type of Control Prime Responsibility Purpose of Control Approaches
1. Annual-plan Top management To examine whether the planned * Sales analysis
control Middle management result are being achieved * Market share analysis
* Sales-to-expense ratios
NOTES * Financial analysis
* Market-based scorecard
analysis
II.Profitablity Marketing controller To examine where tha company Profitablity by:
control is making and losing money * product
* temtory
* customer
* segment
* trade channel
* order size
III. Effciency Line and staff To evaluate and improve the Effciency of:
control management Marketing spending efficiency and impact * sales force
controller of marketing expenditures * advertising
* sales promotion
* distribution
IV. Strategic Top management To examine whether the company * Marketing effictiveness
control Marketign auditor is pursuing its best opportunities rating instrument
with respect to markets, products * Marketing audit
and channels * Marketing excellence
review
* Company etical and
social
responsiblity review
Table 9.1
in suggestive of measurement outerion and points of all marketing programme
and plan. We gather from here that all the elements of marketing which we have least in
this course are to be benchmarked and monitored prut the most important point is that
the execuition at every level in done through appropriate marketing organizational
structure where functionalities are in coherence with the objectives and the complete
value chain ..... i. e. functions and functionaries (i. e. people) are linked with each other
and the customer.
But remember committment is strengthered with cause and cause must have
intensity. Therefore society, sustainability, Social responsibility cannot be seen as `other'
aspects but are well imbibed within the business and the marketing process itself.
For example it can be the Tctarri way that they empharized upon developing the
workforce from within the area they were producting or it can be AMULS way, HULs
way, Narayan Hrudayalaya's way, Arvind Eye cares way, Tata Steels, Hero cycles, Cipla,
companies produsing pine brickets, integrated sugar plants (working on cogeneration)
and hundreds of organizations are living upto be called as examples of committment
towards marketing / markets or proving marketing as committment'.
9.6 Summary
The unit about product development and how new products emerge and the process
of new product development is also dealt in detail and innovation is the key in each and Creating Long Term Growth
every step. The global markets function and new products are seen into it and about
holistic marketing which is the future of marketing.
NOTES
9.7 Key Terms
New Product Development : In business and engineering, new product development

(NPD) is the complete process of bringing a new product to market. A product is a set of
benefits offered for exchange and can be tangible (that is, something physical you can
touch) or intangible (like a service, experience, or belief). There are two parallel paths
involved in the NPD process: one involves the idea generation, product design and
detail engineering; the other involves market research andmarketing analysis. Companies
typically see new product development as the first stage in generating and
commercializing new product within the overall strategic process of product life cycle
management used to maintain or grow their market share.
Source; https://en.wikipedia.org/wiki/New product development
Global Marketing : (global marketing definition) A marketing strategy that
consciously addresses global customers, markets, and competition in formulating a
business strategy. 2. (consumer behavior definition) An approach to international strategy
that argues for marketing a product in essentially the same way everywhere in the world.
Source: http://www.marketingpower.com/ layouts/dictionary.aspx?dletter=g
Holistic Marketing : A marketing strategy that is developed by thinking about the
business as a whole, its place in the broader economy and society, and in the lives of its
customers. It attempts to develop and maintain multiple perspectives on the company's
commercial activities.
Source: http://www.businessdictionary.com/det1nition/holistic-marketing.html

1. Explain the need and process of new product development, with relevant examples
like Mahindra Scorpio.
2. What is Global Marketing? Explain with the perspective of marketers and customers
as well.
3. Why do we term Holisitic Marketing as the future, explain with the context
developed in due course of time during this course.

Rural Marketing 2. Kotler, Keller, Koshi and Jha, `Marketing Management, 14th Edition, Pearson
India
Reference Reading :
NOTES 1. Kotler Philip, Hermawan Kartajaya, Iwan Setiawan ``marketing 3.0, 2013,
John Wiley & Sons.
York.

Rural Marketing
UNIT 10 RURAL MARKETING
Structure NOTES
10.0 Introduction
10.1 Unit Objectives
10.2 Rural Marketing
10.2.1 Meaning and Concept
10.2.2 Comparison of Rural and Urban Markets
10.3 Strategies of Rural Marketing
10.3.1 Understanding Rural Market
10.3.2 Communicating to Rural Audience
10.3.3 Developing Rural Specific Products
10.3.4 Adapting Localized Way of Distribution
10.4 Challenges in Rural Markets
10.5 Opportunity in Rural Marketing
10.6 Importance of Rural Market
10.7 Socio Economic Changes in Rural India
10.8 Information Technology and Rural India
10.9 Four As of Rural Marketing
10.10 Summary
10.11 Key Terms
10.13 Books for Further Reading
10.14 References
10.15 Case Study
10.0 Introduction
This unit defines concept of rural marketing.The overall new way of looking at
market in a dichotomy.The comparison between rural and urban market is done.The
opportunity and why rural market are important for the economy and the business
world is discussed. The communication channels and the way it is established by the
example is elaborated in the unit. The different strategies that could be applied for
reaching,acquiring and keeping the customer in rural market is discussed in detail.The
distribution channel,Socio-Economic factors and others are elaborated in detail.The
four As of Rural Marketing is discussed and information technology role in rural
market is explained through examples which changed the dynamics of the rural market.
The major objective of this Unit is to familiarize the readers with rural marketing
meaning definitions and provisions so as to enable them to visualize that how these
are important for the business organizations to understand these things so as to steer
the businesses well.
Rural Marketing

NOTES 1. Describe meaning and concept of rural marketing.
2. Explain the strategies of rural marketing.
3. Explain importance Rural Market.
4. Describe Socio Economic changes in Rural India.
10.2 Rural Marketing
10.2.1 Meaning and Concept

Indias Rural Market for consumer products and services is growing at an
accelerated pace. An urban marketer interested to tap these marketing opportunities in
rural India needs to develop a deeper understanding of the rural marketing ecology.
Further, a marketer requires better insights on the logic of organizing marketing efforts
in rural areas considering these rural specificities. Therefore it is essential to clearly
format the rural marketing tasks looking at the complexities in Indias rural milieu.
https://www.iimk.ac.in/academics/mdp/MDP2013/201314MDPOP67.html
Rural marketing is now a two-way marketing process. There is inflow of products
into rural markets for production or consumption and there is also outflow of products
to urban areas. The urban to rural flow consists of agricultural inputs, fast-moving
consumer goods (FMCG) such as soaps, detergents, cosmetics, textiles, and so on.
The rural to urban flow consists of agricultural produce such as rice, wheat, sugar, and
cotton. There is also a movement of rural products within rural areas for consumption.
http://www.yourarticlelibrary.com/essay/rural-marketing-in-india-definition-and-
features-of-rural-marketing/32335/
Over half of Indias villages are linked to all weather roads. It has allowed
marketers to engage with rural consumers like never before. This is only the starting
point. Disposable incomes are on an upward trajectory, aspiration and brand acquisition
growing each day. Driven also by the governments budgetary impetus, FMCG growth
has remained in healthy double digits and outpaced urban growth significantly and
consistently.
http://articles.economictimes.indiatimes.com/2014-08-27/news/53284870_
1_marketers- rural- fmcg-sales- upward-trajectory
With a focus on the rural and the semi-urban market, that has been assessed to
grow to $1.9 billion by 2015 by international consultancy Celent, IDE ensures that the
products it designs not only deliver on cost for a price-sensitive market, but also satisfies
the utilitarian demands from a product. Sachdev, R. (2009, Sep 08). Rural marketing
has emerged as a distinct academic discipline. Pioneered by agri-input companies,
today rural markets provide opportunity for almost all organizations. From the slogan
of no-rural many years back, now the mantra for majority of organizations is Gaon
Chalo (in Hindi) which means go to village or go to rural. Majority of companies
today adopt go-rural as their main strategy for survival, growth or market leadership
at a national level. Ajith, P. (2015)
Rural Marketing
NOTES
Perspectives on Rural Marketing
Source: Modi, P. (2009)

National commission on agriculture (XII report, 1976) defined agricultural
marketing as, Agriculture marketing is a process which starts with a decision to produce
a saleable farm commodity, and it involves all the aspects of market structure or system,
both functional and institutional, based on technical and economic considerations and
includes pre and post harvest operations such as assembling, grading, storage,
transportation and distribution.
http://shodhganga.inflibnet.ac.in:8080/jspui/bitstream/10603/7868/5/
05_introduction.pdf.

Rural Marketing Dogra and Ghuman (2008) have defined rural marketing as planning and
implementation of marketing function for the rural areas. Gopalaswamy (1997)
borrowed from Jhas (1988) conceptualization and defined rural marketing as a two-
way marketing process concerned with the flow of goods and services from urban to
NOTES
rural, rural to urban and rural to rural areas. Kotler et al.s (2007) They defined rural
marketing as any marketing activity in which one dominant participant is from the
rural area Modi, P. (2009).
Characteristics of Rural Marketing
a) Traditional Outlook
a) The rural customers value old customs and traditions.
b) Basic cultural values are still dominant in rural India.
c) Buying decisions are highly influenced by social customs.
b) Levels of Literacy
a) The literacy rate being low in the rural areas as compare to urban area.
c) Language and Dialects
a) The number of languages dialects varies widely from state to state
d) Low per Capita Income
a) The per capita income in the rural areas is low.
b) He will prefer a low unit priced product. Sinha, A. (2014).
10.2.2 Comparison of Rural and Urban Markets
Source: Ajith, P. (2015)

Rural Marketing
10.3 Strategies of Rural Marketing
10.3.1 Understanding Rural Market

NOTES
a) Large Population: 742 million Indians constituting 138 million households
reside in 6,38,365 villages (Census, 2001).
b) Growth in Market: The market has been growing at 3-4% per annum adding
more than one million new consumers every year.
c) Increasing Income and Purchasing Power: The agricultural development
programs of the government have helped to increase income in the
agricultural sector.
d) Accessibility of Markets: The attraction of a market depends not only on its
potential but also on its accessibility.
http://www.zenithresearch.org.in/images/stories/pdf/2011/Nov/ZIJMR/
9_ZIBERMR_VOL1_ISSUE%202.pdf.
10.3.2 Communicating to Rural Audience
The large parts of rural India can be accessed through conventional media for
building awareness. Electronics uses Vans and roads shows to reach rural customers.
Source: Siddique,& Siddique, R. (2012).

10.3.3Developing Rural Specific Products
A prime need for any firm to emerge as a strong player in the rural market is by
carefully identifying gaps in the rural market and crafting the right product offering
for consumers.
a) Small packing: Small packing stand a good chance of acceptance in rural
markets like shampoos, pickles, biscuits etc.
b) Utility oriented products: The rural consumers are more concerned with
utility of the product and its appearance.
http://marketinglessons.in/2015/04/08/product-strategies-for-rural-market-indian-
perspective/
c) New product designs: R&D activities become lot more important when
company enters into unexplored territory. Marketing Management : 167
Rural Marketing d) Robust products: Rural people give immense importance to durability of a
product.
e) Avoid complexity: Too much of intricacies in the product add up to its
complexity.
NOTES
f) Easy to maintain: To keep the maintenance cost of the product low is equally
important while manufacturing the product for the rural market.
http://ajtmr.com/papers/vol1issue2/capturing-rural-market.pdf.
10.3.4 Adapting Localized Way of Distribution
They have to reach the local Paanwala, Local Baniya or Kirana Shop Owners
only they can succeed. Big Multinational companies in India capture the rural market
share in India if they have to go the local market shoe sellers and with the low priced
products.
https://www.academia.edu/4893075/Rural_ Marketing_ Strategies_ for_ Selling_
Products_ and_ Services_Issues_and_Challenges
Sturdy Products
Consumer durables designed for rural markets have to be sturdier than those sold
in urban markets. This is because of the poor infrastructure for transportation. Besides,
rural buyers prefer heavy and sturdy goods. Forthem, heavier weight means morepower
and durability. Seeing this,
Philips made their radios and two-in ones bigger and louder for the rural market,
Patro, (2000).
Understanding Cultural and Social Value of Rural Market
It is recognized that social and cultural values have a very strong hold on the
people. Cultural values play major role in deciding what to buy. Moreover, rural people
Check Your Progress are emotional and sensitive. Gulati, N. (2013)
What are the
Using Indian Words for Promotion
characterstics of Rural
Marketing? Companies use Indian words for brands. Like LG has used India brand name
Sampoorna for its newly launched TV. The word is a part of the Bengali, Hindi,
How rural and urban
Marathi and Tamil tongue. In the past one year, LG has sold one lakh 20-inch Sampoorna
customers are different
TVs, all in towns with a population of around 10,000. By the end of 1999, roughly
from each other?
12% of LGs Rs 950 crore turnover came from Sampoorna sales. Rakshit, et al. (2006)
How different marketing
activities is changed in The major objective of this Unit is to familiarize the readers with national income,
the Rural market? business cycle, human development and poverty their meaning definitions and
provisions so as to enable them to visualize that how these are important for the business
organizations to understand these things so as to steer the businesses well.
10.4 Challenges in Rural Markets
Although the rural market does offer a vast untapped potential, it should also be
Marketing Management : 168 recognized that it is not that easy to operate in rural market because of several problems.
http://www.mbaskool.com/business-articles/marketing/5690-rural-marketing- Rural Marketing
challenges-opportunities-and-beyond.html
A. Communication Barriers
a) Low Literacy Rate NOTES
b) Communication to be made in the local language
c) Lower facilities for communication
B. Seasonal Demand
a) Dependence on agriculture business
C. Transportation and Distribution
a) Poor transport infrastructure
b) Access limited to outer areas only
D. Buying Decisions
a) Cautious buyers hence slow in buying decisions
E. Availability of duplicate and cheap brands
a) Customers in rural India are very cost sensitive. Therefore the existence of
duplicate brands, which are quite common in rural parts, at lesser prices
gives considerable competition to the firms.
http://www.mbaskool.com/business-articles/marketing/5690-rural-marketing-
challenges-opportunities-and-beyond.html
10.5 Opportunity in Rural Marketing
Untapped Potential: It offers a great chance for different branded goods as well
as services for large number of customers.
Market Size and Potential: In India, rural household farm about 72% of total
household constitutes a huge market by any standard.
Increasing Income: Different programs undertaken have helped to improve the
economic the economic situation of the rural areas.
Accessibility Markets: The road network has facilitated a systemized product
distribution system to villages.
Competition in Urban Areas: The urban market is getting saturated and thus is
enable to provide the much needed market to many companies
Kumar, & Swamy, (2013)
10.6 Importance of Rural Market

a) About three-fourth of Indias population live in rural areas, thus rural
development is needed to develop nation as whole.
Rural Marketing b) Nearly half of the countrys national income is derived from agriculture,
which is major occupation of rural India.
c) Around seventy per cent of Indian population gets employment through
agriculture.
NOTES
d) Bulks of raw materials for industries come from agriculture and rural sector.
Check Your Progress e) Increase in industrial population can be justified only in rural population s
What are the opporunity motivation and increasing the purchasing power to buy industrial goods.
in rural markets? http:// www.aau.in /sites /default /files /Unit%204% 20RURAL%
Why Rural market is 20DEVELOPMENT.pdf
important in todays
business world?
10.7 Socio Economic Changes in Rural India
Forget those images of ravaged villagers, kids with distended bellies and ragged
clothes and a future as grim as the cracked, sun-baked earth. Islands of poverty still
exist but most of rural India is transformed beyond imagination thanks to a host of
factors which has put unprecedented wealth into the hands of farmers across the country
and turned it into a huge consumer market.
http://indiatoday.intoday.in/story/Changing+face+of+rural+India/1/82472.html
A survey by Indias premier economic research entity, National Council for
Applied Economic Research (NCAER) indicates that rise in rural incomes is keeping
pace with the rise in urban incomes. The rural middle class is growing at 12 percent,
close to the urban middle class which is growing at 13 percent. Punjab, Kerala, Haryana,
Rajasthan, Gujarat, Andhra Pradesh and Maharashtra are considered highly prosperous
states, Kalotra, (2013). In recent years, rural markets have acquired significance in
countries like China and India, as the overall growth of the economy has resulted into
substantial increase in the purchasing power of the rural communities. On account of
the green revolution in India, the rural areas are consuming a large quantity of industrial
and urban manufactured products Singh, & Sharma, (2012).
10.8 Information Technology and Rural India
Rural economy can be developed by improving rural markets. It may seem

paradoxical that modern information technology (IT), associated in our minds with
developed country markets and capital intensive methods of production, has any
relevance for a country where many millions still lack basic needs. Nevertheless, there
are many efforts underway in India and other developing countries to demonstrate the
concrete benefits of IT for rural populations, and to do so in a manner that makes
economic sense, Sharma, (2011). The reach of IT in rural areas will provide unique
opportunities to producers of rural products, agriculture/agro-processing products, rural
handicrafts etc. to have direct access to markets. Internet will enable advertising of
Marketing Management : 170 rural products produced even in the remotest villages to global markets.
The agriculture extension worker can access latest information on farm technology Rural Marketing
and products, and disseminate the same to villages. http://pib.nic.in/feature/feyr2000/
faug2000/f030820002.html. For example e-Choupals deliver relevant technology in
the hands of the farmers, which can improve the economic condition of the entire
NOTES
village. E-Choupal is one of the very few ICT projects in India that has effectively
utilized e-commerce transactions for poverty alleviation. One of the key lessons is
that ICT can reduce the number of middlemen involved between agriculture commodity
producers and final consumers. http://www.indianmba.com/Faculty_Column/FC1027/
fc1027.html.
FOUR AS OF RURAL MARKETING
a) Availability of the products in remote places becomes the major challenge for
the marketers. Poor infrastructure becomes the roadblock for the distribution &
in the way of reaching the people in the far-flung villages. Marketers need to be
creative enough to tackle this high distribution cost that sticks with the products.
Few giants like HUL & Coke have strengthened their distribution network to
reach the large customer base. http://marketingbloggers.in/2012/07/30/the-4as-
roadblock-to-the-rural-marketing-strategy/
b) Affordability The second challenge is to ensure affordability of the product or
service. With low disposable incomes, products need to be affordable to the rural
consumer, most of who are on daily wages. Some companies have addressed
the affordability problem by introducing small unit packs. Godrej recently
introduced three brands of Cinthol, Fair Glow and Godrej in 50-gm packs, priced
at Rs 4-5 meant specifically for Madhya Pradesh, Bihar and Uttar Pradesh
the so-called Bimaru States. http://www.scribd.com/doc/2462654/4-A-s-of-rural-
market#scribd
c) Awareness: Radio, TV, street plays, remains the medium to advertise. Example:
Coca-Cola uses a combination of TV, cinema and radio to reach 53.6 per cent of
rural households. It doubled its spend on advertising on Doordarshan, which
alone reached 41 per cent of rural households. Tag lines like thanda matlab
cocacola, what an idea sirjee, creates rural feel. Godrej uses radio in local
language for its FMCG products, where as HUL started Lifebuoy Swasthya
Chetana, as contact program. http://www.coolavenues.com/marketing-zone/rural-
marketing%3A-are-companies-finally-taking-the-rural-customers-seriously%3F
d) Acceptability: The next challenge is to gain acceptability for the product or service.
Therefore, there is a need to offer products that suit the rural market.
a) LG Electronics have developed a customized TV for the rural market named
Sampoorna. It was a runway hit selling 100,000 sets in the very first year.
b) Coca-Cola provided low-cost ice boxes in the rural areas due to the lack of
electricity and refrigerators. It also provided a tin box for new outlets and
thermocol box for seasonal outlets. http://managementstudiesentries.
blogspot.in/ 2008/12/ 4-ps-and-4-as-of-rural-marketing.html

Rural Marketing
10.9 Summary
This unit has defined concept of rural marketing.The overall new way of looking
NOTES at market in a dichotomous way. The comparison between rural and urban market is
done.The opportunity and why rural market are important for the economy and the
business world is discussed. The communication channels and the way it is established
by the example is elaborated in the unit. The different strategies that could be applied
for reaching,acquiring and keeping the customer in rural market is discussed in
detail.The distribution channel, Socio-Economic factors and others are elaborated in
detail.The four As of Rural Marketing is discussed and information technology role in
rural market is explained through examples which changed the dynamics of the rural
market.
10.10 Key Terms
Rural Marketing: Rural marketing is the process of marketing in rural areas. it

includes the adoption of various marketing strategies and policies in rural market with
a view to convert the needs and wants of rural people into demand.
http://www.answers.com/Q/Definition_of_rural_marketing
Information and Communication Technology : Information and communications
technology (ICT) is often used as an extended synonym for information technology
(IT), but is a more specific term that stresses the role of unified communications and
the integration of telecommunications (telephone lines and wireless signals), computers
as well as necessary enterprise software, middleware, storage, and audio-visual systems,
which enable users to access, store, transmit, and manipulate information.
https://en.wikipedia.org/wiki/Information_and_communications_technology

1) Discuss in detail the profile of rural consumers and how is it different from
2) Discuss the benefits and limitations of cooperatives in rural marketing.
3) There is a huge untapped market in rural India. Critically examine this
4) Discuss the various marketing communication media in the context of rural
5) Discuss internet as medium of marketing communication for rural market.
6) Companies will have to innovate for achieving greater penetration in rural
market. Explain with examples.
7) Discuss the problems associated with marketing of agri-produce.
8) Discuss the concept of Customer Relationship Management in rural context.
9) Explain the concept of Self Help Groups. How does it help in development
of agricultural finance?
10) Discuss the important traits of rural sales persons. Rural Marketing
11) Discuss in detail the profile of rural consumers and how is it different from
their urban counterpart.
12) Discuss the benefits and limitations of cooperatives in rural marketing. NOTES
13) There is a huge untapped market in rural India. Critically examine this
statement.
14) Discuss the various marketing communication media in the context of rural
marketing.
10.12 Books for further Reading

1) Rural Marketing: Concepts and Practices by B. Dogra, and K. Ghuman.
New Delhi: Tata McGraw-Hill.
2) Rural Marketing: Environment, Problems, and Strategies by T.P.
Gopalaswamy, New Delhi: Wheeler Publishing.
3) Strategies of Rural Marketing in India, N. Gulati.
4) Rural Marketing: Text and Cases by C.S.G. Krishnamacharyulu and L.
Ramakrishnan. Delhi: Pearson Education.
5) Rural Marketing: Targeting the Non-urban Consumer by S.K. Velayudhan,
New Delhi: Response Books.
6) Marketing Management: A South Asian Perspective by P. Kotler, K. Keller,
A. Koshy and M. Jha. New Delhi: Pearson Prentice-Hall.
7) Rural Marketing: Development, Policy, Planning & Practice by Rajagopal,
Jaipur: Rawat Publications.
10.13 References
8) Ajith, P. (2015). Rural to international : Blueprint for marketing. SCMS
Journal of Indian Management, 12(2), 5-16. Retrieved from http://
search.proquest.com/docview/1695027373?accountid=62831
9) Bijapurkar, R. 2003. But are Marketers Ready, Businessworld, 28
December: 2936.
10) Dogra, B. and K. Ghuman. 2008. Rural Marketing: Concepts and Practices.
New Delhi: Tata McGraw-Hill.
11) Gopalaswamy, T.P. 1997. Rural Marketing: Environment, Problems, and
Strategies. New Delhi:Wheeler Publishing.
12) Gulati, N. (2013) Strategies of Rural Marketing in India.
13) http://ajtmr.com/papers/vol1issue2/capturing-rural-market.pdf.
14) http://articles.economictimes.indiatimes.com/2014-08-27/news/
53284870_1_marketers-rural-fmcg-sales-upward-trajectory Marketing Management : 173
Rural Marketing 15) http://fmcgmarketers.blogspot.in/2006/01/itc-echoupal-case-study-
rural.html
16) http://indiatoday.intoday.in/story/Changing+face+of+rural+India/1/
82472.html
NOTES
17) http://managementstudiesentries.blogspot.in/2008/12/4-ps-and-4-as-of-
rural-marketing.html
18) http://marketingbloggers.in/2012/07/30/the-4as-roadblock-to-the-rural-
marketing-strategy/
19) http://marketingbloggers.in/2012/07/30/the-4as-roadblock-to-the-rural-
marketing-strategy/
20) http://marketinglessons.in/2015/04/08/product-strategies-for-rural-market-
indian-perspective/
21) http://pib.nic.in/feature/feyr2000/faug2000/f030820002.html.
22) http://shodhganga.inflibnet.ac.in:8080/jspui/bitstream/10603/7868/5/
05_introduction.pdf.
23) http://www.coolavenues.com/marketing-zone/rural-marketing%3A-are-
companies-finally-taking-the-rural-customers-seriously%3F
24) http://www.indianmba.com/Faculty_Column/FC1027/fc1027.html.
25) http://www.mbaskool.com/business-articles/marketing/5690-rural-
marketing-challenges-opportunities-and-beyond.html
26) http://www.scribd.com/doc/2462654/4-A-s-of-rural-market#scribd
27) http://www.yourarticlelibrary.com/essay/rural-marketing-in-india-definition-
and-features-of-rural-marketing/32335/
28) http://www.zenithresearch.org.in/images/stories/pdf/2011/Nov/ZIJMR/
9_ZIBERMR_VOL1_ISSUE%202.pdf.
29) https://mantrasmsalert.wordpress.com/case-studies/case-study-unilever-in-
india-rural-marketing-initiatives/
30) https://www.iimk.ac.in/academics/mdp/MDP2013/201314MDPOP67.html
31) Jha, M. 1988. Rural Marketing: Some Conceptual Issues, Economic and
Political Weekly, 23 (9): M8M16.
32) Kalotra, A. (2013). Rural Marketing Potential in IndiaAn Analytical
Study.International Journal, 3(1).
33) Kotler, P., K. Keller, A. Koshy and M. Jha. 2007. Marketing Management:
A South Asian Perspective. New Delhi: Pearson Prentice-Hall.
34) Krishnamacharyulu, C.S.G. and L. Ramakrishnan. 2002. Rural Marketing:
Text and Cases. Delhi: Pearson Education.
35) Modi, P. (2009). Rural Marketing Its Definition and Development
Perspective. International Journal of Rural Management, 5(1), 91-104.

36) Patro, S. K. (2000). Rural Marketing: The Relevance, Challenges and Rural Marketing
Strategies. Management and Labour Studies, 25(3), 191-201.
37) Rajagopal. 1994. Marketing Channels for Rural Industries, Journal of Rural
Development, 13 (4): 593601.
NOTES
38) Rajagopal. 1998. Rural Marketing: Development, Policy, Planning &
Practice. Jaipur: Rawat Publications.
39) Rakshit, R., Narasimham, M. L., Gudhe, A., Vaddadi, K., & Narayanan, K.
(2006). Strategies For Rural Marketing By An Organization.
40) Rao, K.L.K. and R.G. Tagat. 1985. Rural Marketing: A Developmental
Approach, Vikalpa,10 (3): 31526.
41) Sachdev, R. (2009, Sep 08). Cheap is not necessarily the best for rural
consumers. Financial Express, Retrieved from http://search.proquest.com/
docview/872810368?accountid=62831
42) Sahu, P.K. 2003. Marketing of Jute Products of Non-Farm Sector: An
Appraisal, paper presented at NIRD Conference, Hyderabad.
43) Sharma, P. (2011). Impact of information technology on the development of
rural economy of India. International Journal of Information Technology
and Knowledge Management, 4(1), 187-190.
44) Siddique, S., & A Siddique, R. (2012). RURAL MARKETING IN INDIA:
OPPORTUNITIES, CHALLENGES AND STRATEGIES. International
Journal of Retailing & Rural Business Perspectives, 1(2), 142-147.
45) Singh, P. 1992. Marketing Strategy to Tap Rural Market, Journal of Rural
Development, 11 (2): 17585.
46) Singh, P., & Sharma, A. (2012). The changing face of Rural marketing in
Indian Economy. A Journal of Economics and Management, 1(7), 47-60.
47) Sinha, A. (2014). TRENDS IN RURAL MARKETING IN
INDIA. International Journal of Retailing & Rural Business
Perspectives, 3(3), 1079-1082. Retrieved from http://search.proquest.com/
48) Taori, K. and S.N. Singh. 1991. Marketing Rural Industry Products:
Experiments and Experiences in Uttar Pradesh, Economic & Political
Weekly, 26 (8): M21M26.
49) Vaswani, L.K., R. Aithal, D. Pradhan and G. Sridhar. 2005. Rural Marketing
in Development Paradigm, International Journal of Rural Management, 1
(2): 24562.
50) Velayudhan, S.K. 2002. Rural Marketing: Targeting the Non-urban
Consumer. New Delhi:Response Books.

Rural Marketing
10.14 Case Study
Case Study: Unilever in India Rural Marketing Initiatives

NOTES
Unilever Lever Ltd. Case Study will help students to know importance of rural
marketing. Unilever took its inciative in Rural Marketing concept and introduced
various distribution channels to understand the need of rural consumers. 70% of the
Indian population lives in rural areas. This segment, commonly referred to as the bottom
of the pyramid, presents a huge opportunity for companies. Unilevers Indian
subsidiary, Hindustan Lever Ltd (HLL), considered one of the best-managed companies
in India, understands the importance of rural marketing.
Unilever Lever Ltd.

The trigger point came when a local firm Nirma, through its new product
formulation, pricing and distribution challenged HLLs detergent business. Nirmas
attack from below made HLL realise its vulnerability as well as identify a new
opportunity. Since then, HLL has launched various initiatives to reach out to the rural
consumer. It has changed its product formulations and deliveries.
It has begun a number of initiatives in terms of widening distribution reach through
traditional as well as unconventional channels. HLL has also empowered rural women
by assisting them in obtaining financial assistance through its project shakti.
Everybody wants brands. And there are a lot more poor people in the world than
rich people. To be a global business and to have a global market share you have to
participate in all segments.
Keki Dadiseth, erstwhile Chairman, HLL.
The basic objective of Project Shakti is to economically empower underprivileged
rural women by creating income-generating capabilities and providing a sustainable
micro-enterprise opportunity in addition to improving rural living standards through
health and hygiene awareness.
Sharat Dhall, Marketing Manager -Rural, HLL
NCAER projections indicated that the number of middle income and above
households was expected to grow to 111 million in rural India by 2007, compared to
59 million in urban India.
Gone were the days when a rural consumer had to go to a nearby town or city to Rural Marketing
buy a branded product. The growing power of the rural consumer was forcing big
companies to flock to rural markets. At the same time, they also threw up major
challenges for marketers.
NOTES
Servicing rural markets involved ensuring availability of products through a sound
distribution network, overcoming prevalent attitudes and habits of rural customers
and creating brand awareness. Price-sensitivity was another key issue.
Rural income levels were largely dependent on the vagaries of monsoon, and
demand was not easy to predict. Thanks to TV, consumer awareness in rural areas had
increased.
Rural expenditures on Fast Moving Consumer Goods (FMCG) were growing at
an impressive rate of 20 -25%.5 Several companies were taking rural marketing
seriously, one of them being Hindustan Lever Ltd (HLL), Unilevers Indian subsidiary.
In 2004, HLL was Indias largest FMCG company, with 30 power brands (Exhibit:
I), turnover of over Rs. 10,000 crores and 40,000 employees. HLL derived around
50% of its sales from rural areas. HLLs rural marketing initiatives began way back in
1988, when the company had launched Wheel for the rural and lower income urban
consumer.
These efforts had intensified since the late 1990s when HLL like many other
companies faced flat growth in the urban markets. In early 2004, as it reviewed its past
performance, HLL realized that bulk of its future growth was likely to come from rural
areas. The challenge for HLL was to exploit this opportunity in a profitable manner.
Background Note
HLLs history could be traced back to 1885 when the Lever Brothers set up
William Hesketh Lever, in England. In 1888, the company entered India by exporting
Sunlight, its laundry soap. In 1895, the Lifebuoy soap was launched in India followed
by Pears in 1902, Lux flakes in 1905 and Vim scouring powder in1913. In 1930,
the company merged with Margarine Unie (a Netherlands based company which
exported vanaspati to India), to form Unilever. In 1931, Unilever set up it first Indian
subsidiary, the Hindustan Vanaspati Manufacturing Company for production of
vanaspati
Reaching Out he Rural Consumer:
Prior to the late 1990s, HLL like any other company had used traditional modes
of reaching out to the rural consumer wholesalers and retailers
Product Development
HLLs experience with rural consumers dated back to the mid-1980s, when Nirma
had been a serious threat to HLLs detergent business. Nirmas success demonstrated
that rural India did have the money and willingness to buy packaged goods
Communication
Mass media reached only 57% of the rural population. HLL realized that it had
to use unconventional media to enhance awareness. In late 1999, HLL engaged Ogilvy
Outreach , to take care of its rural communication campaign Marketing Management : 177
Rural Marketing Looking Ahead
Indias rural population comprising 12% of the worlds population presented a
huge, untapped market. HLL had signaled its commitment to the rural market in various
ways.
NOTES
Management trainees had to begin their career with the company by spending a
month or two in a rural village. Senior managers continued to emphasize the importance
of rural markets.
Various innovations in the marketing mix had been introduced, with the
requirements of the rural markets in mind!
https://mantrasmsalert.wordpress.com/case-studies/case-study-unilever-in-india-
rural-marketing-initiatives/
ITC eChoupal Case Study .. Rural Transformation
Agriculture is vital to India. It produces 23% of GDP, feeds a billion people, and
employs 66% of the workforce. Because of the Green Revolution, Indias agricultural
productivity has improved to the point that it is both self-sufficient and a net exporter
of a variety of food grains. Yet most Indian farmers have remained quite poor. The
causes include remnants of scarcity-era regulation and an agricultural system based
on small, inefficient landholdings. The agricultural system has traditionally been unfair
to primary producers. Soybeans, for example, are an important oilseed crop that has
been exempted from Indias Small Scale Industries Act to allow for processing in
large, modern facilities. Yet 90% of the soybean crop is sold by farmers with small
holdings to traders, who act as purchasing agents for buyers at a local, government-
mandated marketplace, called a mandi. Farmers have only an approximate idea of
price trends and have to accept the price offered them at auctions on the day that they
bring their grain to the mandi. As a result, traders are well positioned to exploit both
farmers and buyers through practices that sustain system-wide inefficiencies. ITC is
one of Indias leading private companies, with annual revenues of US$2 billion. Its
International Business Division was created in 1990 as an agricultural trading company;
it now generates US$150 million in revenues annually. The company has initiated an
e-Choupal effort that places computers with Internet access in rural farming villages;
the e-Choupals serve as both a social gathering place for exchange of information
(choupal means gathering place in Hindi) and an e-commerce hub. What began as an
effort to re-engineer the procurement process for soy, tobacco, wheat, shrimp, and
other cropping systems in rural India has also created a highly profitable distribution
and product design channel for the companyan e-commerce platform that is also a
low-cost fulfillment system focused on the needs of rural India. The e-Choupal system
has also catalyzed rural transformation that is helping to alleviate rural isolation, create
more transparency for farmers, and improve their productivity and incomes. This case
analyzes the e-Choupal initiative for soy; efforts in other cropping systems (coffee,
wheat, and shrimp aquaculture), while different in detail, reflect the same general
approach.

BUSINESS MODEL Rural Marketing
A pure trading model does not require much capital investment. The e-Choupal
model, in contrast, has required that ITC make significant investments to create and
maintain its own IT network in rural India and to identify and train a local farmer to NOTES
manage each e-Choupal. The computer, typically housed in the farmers house, is
linked to the Internet via phone lines or, increasingly, by a VSAT connection, and
serves an average of 600 farmers in 10 surrounding villages within about a five kilometer
radius. Each e-Choupal costs between US$3,000 and US$6,000 to set up and about
US$100 per year to maintain. Using the system costs farmers nothing, but the host
farmer, called a sanchalak, incurs some operating costs and is obligated by a public
oath to serve the entire community; the sanchalak benefits from increased prestige and
a commission paid him for all e-Choupal transactions. The farmers can use the computer
to access daily closing prices on local mandis, as well as to track global price trends or
find information about new farming techniqueseither directly or, because many
farmers are illiterate, via the sanchalak. They also use the e-Choupal to order seed,
fertilizer, and other products such as consumer goods from ITC or its partners, at
prices lower than those available from village traders; the sanchalak typically aggregates
the village demand for these products and transmits the order to an ITC representative.
At harvest time, ITC offers to buy the crop directly from any farmer at the previous
days closing price; the farmer then transports his crop to an ITC processing center,
where the crop is weighed electronically and assessed for quality. The farmer is then
paid for the crop and a transport fee. Bonus points, which are exchangeable for
products that ITC sells, are given for crops with quality above the norm. In this way,
the e-Choupal system bypasses the government-mandated trading mandis. Farmers
benefit from more accurate weighing, faster processing time, and prompt payment,
and from access to a wide range of information, including accurate market price
knowledge, and market trends, which help them decide when, where, and at what
price to sell. Farmers selling directly to ITC through an e-Choupal typically receive a
higher price for their crops than they would receive through the mandi system, on
average about 2.5% higher (about US$6 per ton). The total benefit to farmers includes
lower prices for inputs and other goods, higher yields, and a sense of empowerment.
The e-Choupal system has had a measurable impact on what farmers chose to do: in
areas covered by e-Choupals, the percentage of farmers planting soy has increased
dramatically, from 50 to 90% in some regions, while the volume of soy marketed
through mandis has dropped as much as half. At the same time, ITC benefits from net
procurement costs that are about 2.5% lower (it saves the commission fee and part of
the transport costs it would otherwise pay to traders who serve as its buying agents at
the mandi) and it has more direct control over the quality of what it buys.

Rural Marketing The system also provides direct access to the farmer and to information about
conditions on the ground, improving planning and building relationships that increase
its security of supply. The company reports that it recovers its equipment costs from
an e-Choupal in the first year of operation and that the venture as a whole is profitable.
NOTES
In mid-2003, e-Choupal services reached more than 1 million farmers in nearly 11,000
villages, and the system is expanding rapidly. ITC gains additional benefits from using
this network as a distribution channel for its products (and those of its partners) and a
source of innovation for new products. For example, farmers can buy seeds, fertilizer,
and some consumer goods at the ITC processing center, when they bring in their grain.
Sanchalaks often aggregate village demand for some products and place a single order,
lowering ITCs logistic costs. The system is also a channel for soil testing services and
for educational efforts to help farmers improve crop quality. ITC is also exploring
partnering with banks to offer farmers access to credit, insurance, and other services
that are not currently offered or are prohibitively expensive. Moreover, farmers are
beginning to suggestand in some cases, demandthat ITC supply new products or
services or expand into additional crops, such as onions and potatoes. Thus farmers
are becoming a source of product innovation for ITC.
DEVELOPMENT BENEFIT
The e-Choupal system gives farmers more control over their choices, a higher
profit margin on their crops, and access to information that improves their productivity.
By providing a more transparent process and empowering local people as key nodes
in the system, ITC increases trust and fairness. The increased efficiencies and potential
for improving crop quality contribute to making Indian agriculture more competitive.
Despite difficulties from undependable phone and electric power infrastructure that
sometimes limit hours of use, the system also links farmers and their families to the
world. Some sanchalaks track futures prices on the Chicago Board of Trade as well as
local mandi prices, and village children have used the computers for schoolwork, games,
and to obtain and print out their academic test results. The result is a significant step
toward rural development.
KEY LESSONS
The e-Choupal model demonstrates that a large corporation can play a major
role in recognizing markets and increasing the efficiency of an agricultural system,
while doing so in ways that benefit farmers and rural communities as well as
shareholders. The case also shows the key role of information technologyin this
case provided and maintained by a corporation, but used by local farmersin helping
bring about transparency, increased access to information, and rural transformation.
Critical factors in the apparent success of the venture are ITCs extensive knowledge
of agriculture, the effort ITC has made to retain many aspects of the existing production
system, including maintenance of local partners, the companys commitment to
transparency, and the respect and fairness with which both farmers and local partners
are treated.
Marketing Management : 180 http://fmcgmarketers.blogspot.in/2006/01/itc-echoupal-case-study-rural.html
Technology and Marketing
UNIT 11 TECHNOLOGY AND
MARKETING
NOTES
Structure
11.0 Introduction
11.2 Technology and Marketing
11.3 Social Media Marketing
11.4 E-Marketing
11.5 Search Engine Optimization (Seo)
11.6 Email Marketing
11.7 Display Advertising
11.8 Pay per Click
11.9 Blogging, Podcasting, Rss
11.10 Social and Business Networking
11.11 Product Opinion Sites. Forums
11.12 Affiliate Marketing and Syndication on the Internet
11.13 Running an Internet Marketing Services Business
11.14 Global Internet Marketing. Localization and Customization
11.15 Trust In Internet Marketing. Ethical and Legal Issues.
11.16 Summary
11.17 Key Terms
11.20 References
11.0 Introduction
This unit is about the new venues created by technology and the changes in way
of marketing. These avenues are like Social media marketing,E-Marketing.The new
methods of search engine optimization,and other ways of revenues pay per click like
for blogging,product opinion sites,display advertisement .This unit also describe internet
based marketing in detail and its effectiveness, ethical and legal issues are also discussed.
The major objective of this Unit is to familiarize the readers with technology and
marketing meaning definitions and provisions so as to enable them to visualize that
how these are important for the business organizations to understand these things so as
to steer the businesses well.


NOTES
1. Explain Technology & Marketing
2. Explain Social Media Marketing, E-Marketing, E-mail Marketing.
3. Describe Display Advertising
4. Explain Blog, Podcast & Rss
5. Describe Business Network & Internet.
6. Explain Global Internet Mrketing.
11.2 New Technology and Marketing
A wave of new technologies exists today to aid marketers in reaching and

researching existing and prospective customers. Even tools thought of as new a decade
ago, such as internet advertising, e-mails, and text messaging, are now seen as the
norm or even antiquated. Newer technologies, including GPS, DVRs, social media and
smart phone applications, are becoming increasingly important. Two major tools being
used today are customer relationship management systems (CRMs) and social media
marketing.( Boundless, 10 Jul. 2015)
11.3 Social Media Marketing
Social media marketing programs usually center on efforts to create content that
attracts attention and encourages readers to share it across their social networks. The
resulting electronic word of mouth (eWoM) refers to any statement consumers share
via the Internet (e.g., web sites, social networks, instant messages, news feeds) about
an event, product, service, brand or company. When the underlying message spreads
from user to user and presumably resonates because it appears to come from a trusted.
https://en.wikipedia.org/wiki/Social_media_marketing
11.4 E-Marketing (Electronic Marketing)
E-marketing is also known as Internet Marketing, Web Marketing, Digital

Marketing, or Online Marketing. E-marketing is the process of marketing a product or
service using the Internet. It not only includes marketing on the Internet, but also includes
marketing done via e-mail and wireless media. It uses a range of technologies to help
connect businesses to their customers.

11.5 Search Engine Optimization (SEO)
As an Internet marketing strategy, SEO considers how search engines work, what
people search for, the actual search terms or keywords typed into search engines and NOTES
which search engines are preferred by their targeted audience. Optimizing a website
may involve editing its content, HTML and associated coding to both increase its
relevance to specific keywords and to remove barriers to the indexing activities of
search engines. Promoting a site to increase the number of backlinks, or inbound links,
is another SEO tactic.
https://en.wikipedia.org/wiki/Search_engine_optimization
Search engine optimization is a methodology of strategies, techniques and tactics
used to increase the amount of visitors to a website by obtaining a high-ranking
placement in the search results page of a search engine (SERP) including Google,
Bing, Yahoo and other search engines.
It is common practice for Internet users to not click through pages and pages of
search results, so where a site ranks in a search is essential for directing more traffic
toward the site. The higher a website naturally ranks in organic results of a search, the
greater the chance that site will be visited by a user.
http://www.webopedia.com/TERM/S/SEO.html
Search Engine Optimization is the process of improving the visibility of a website
on organic (natural or un-paid) search engine result pages (SERPs), by incorporating
search engine friendly elements into a website. A successful search engine optimization
campaign will have, as part of the improvements, carefully select, relevant, keywords
which the on-page optimization will be designed to make prominent for search engine
algorithms. Search engine optimization is broken down into two basic areas: on-page,
and off-page optimization. On-page optimization refers to website elements which
comprise a web page, such as HTML code, textual content, and images. Off-page
optimization refers, predominantly, to back links (links pointing to the site which is
being optimized, from other relevant websites). (WORD 115)
http://www.whatisseo.com/
Online advertising, also called online marketing or Internet advertising, is a form
of marketing and advertising which uses the Internet to deliver promotional marketing
messages to consumers. It includes email marketing, search engine marketing (SEM),
social media marketing, many types of display advertising (including web banner
advertising), and mobile advertising. Like other advertising media, online advertising
frequently involves both a publisher, who integrates advertisements into its online
content, and an advertiser, who provides the advertisements to be displayed on the
publishers content.
https://en.wikipedia.org/wiki/Online_advertising
11.6 Email Marketing
Email marketing can be an extremely effective way to reach out to new customers
NOTES and increase your conversion rates. We offer several ways to take advantage of this
simple and cost-effective method of marketing, including our popular Email Campaign
services. Get access to millions of potential new customers and build your email
campaigns quickly and easily online or have one of our email experts do it for you.
https://www.infousa.com/email-marketing/
11.7 Display Advertising
Display advertising is a type of advertising that is located on websites. It is

Check Your Progress represented by a wide range of different formats and contains items such as text, images,
Briefly describe any new flash, video, and audio. The main purpose of display advertising is to deliver general
E-Marketing method ?
advertisements and brand messages to site visitors. https://en.wikipedia.org/wiki/
Display_advertising
Engaging digital ad formats you can find on the web pages you visit.
These include:
a) Text ads lines of text, similar to search ads, that appear next to articles
youre reading
b) Banner ads images displayed above, below or to the side of the content
youre viewing
c) Rich Media ads that engage the user with animation or interactivity, either
within the ad space or by expanding to take over part or all of the page
youre on.
d) Video ads shown before, during or after a video clip
https://www.advertising.com/displayuniversity/display-fundamentals/what-
display
a) Search ads
In Internet Marketing, Search Advertising is a method of placing online
advertisements on web pages that show results from search engine queries. Through
the same search-engine advertising services, ads can also be placed on Web pages with
other published.
Search advertisements are targeted to match key search terms (called keywords)
entered on search engines. This targeting ability has contributed to the attractiveness of
search advertising for advertisers. Consumers will often use a search engine to identify
and compare purchasing options immediately before making a purchasing decision.
https://en.wikipedia.org/wiki/Search_advertising
b) Recent trends Technology and Marketing
Digital marketing has over the last few years undergone a substantial
transformation, becoming an increasingly important medium for creating an online
brand experience. NOTES
Just like any field that relies on communication technologies, online marketing is
rapidly developing towards some directions and departing from others, rendering some
practices obsolete.
http://www.inboundnow.com/10-online-marketing-trends-predictions-2015/
11.8 Pay per Click
Pay per click (PPC), also called cost per click, is an internet advertising model
used to direct traffic to websites, in which advertisers pay the publisher (typically a
website owner) when the ad is clicked. It is defined simply as the amount spent to get
an advertisement clicked.
https://en.wikipedia.org/wiki/Pay_per_click
PPC is an Internet marketing formula used to price online advertisements. In PPC
programs the online advertisers will pay Internet Publishers the agreed upon PPC rate
when an ad is clicked on, regardless if a sale is made or not.
With pay per click in search engine advertising, the advertiser would typically
bid on a keyword so the PPC rate changes. On single website or network of content
websites the site publisher would usually set a fixed pay per click rate. Also called
cost-per-click (CPC).
http://www.webopedia.com/TERM/P/PPC.html
Pay-per-click is calculated by dividing the advertising cost by the number of
clicks generated by an advertisement. The basic formula is:
Pay-per-click ($) = Advertising cost ($) Ads clicked (#)
https://en.wikipedia.org/wiki/Pay_per_click
Pay-Per-Click Marketing Is Good For Everyone:
a) Its good for searchers Research indicates that searchers click on paid
search ads more often than any other form of digital advertising.
b) Its good for advertisers - Advertisers are offered a unique means of putting
their message in front of an audience who is actively and specifically seeking
out their product.
c) Its good for search engines PPC enables search engines to cater to searchers
and advertisers simultaneously.
http://www.wordstream.com/pay-per-click

11.9 Blogging, Podcasting, Rss
Gone are the days when Arts Marketers had to rely on television and print to
NOTES carry their message. Now, you can send your message directly to the consumer through
new techniques such as blogging, online video, RSS, podcasting, and more. http://
www.prarts.com/Lesson_View.aspx?LessonId=7.
Rss Feeds, Blogging, and Podcasting is a great way to broadcast info to millions
of people. http://www.quistdesigns.com/rss-blog-podcast.html
a) A blog, short for web log, is an online journal or record of sequential postings
with news, commentary, or other material such as images and video. Typically,
blog entries appear in reverse chronological order and allow visitors to add their
own comments. For more information, see the Blog article in Wikipedia.
b) A podcast is a syndicated multimedia program broadcast over the Internet. Podcasts
can be ongoing (e.g., weekly audio taped radio shows), time limited (e.g., a series
of videotaped lectures from last year), or intermittent, and in most cases visitors
can play one program or subscribe to the full series. For more information, see
the Podcast article in Wikipedia. https://www.socialpsychology.org/blogs.htm
c) RSS is Really Simple Syndication i.e. it is the process for publishing content on
the Internet that facilitates moving the content into other environments.
http://www.knowonlineadvertising.com/advertisingdictionary/definition-of-rss/
Blog, podcast and RSS advertising are being driven by some of the same factors
boosting the growth of the overall alternative media sector: continued audience
fragmentation, the perceived ineffectiveness of traditional advertising, and the exclusive
but coveted 18-to-34-year-old demographic, said Patrick Quinn, president of PQ Media.
[They] have demonstrated an ability to reach younger demographics as well as
Check Your Progress influentials.
How advertising method
http://www.emarketer.com/Article/Blog-Podcast-RSS-Advertising-Surge-Ahead/
changed due to digital
1003936#sthash.WhSRfxkf.dpuf
marketing ?
What is Pay-per -click is Feeds are a way for websites large and small to distribute their content well beyond
calculated and revenue just visitors using browsers. Feeds permit subscription to regular updates, delivered
collection is done ? automatically via a web portal, news reader, or in some cases good old email. Feeds
also make it possible for site content to be packaged into widgets, gadgets, mobile
devices, and other bite-sized technologies that make it possible to display blogs, podcasts,
and major news/sports/weather/whatever headlines just about anywhere.
https://support.google.com/feedburner/answer/79408?hl=en

11.10 Social and Business Networking
A business network is a type of business social network whose reason for existing
is business networking activity. There are several prominent business networking NOTES
organizations that create models of business networking activity that, when followed,
allow the business person to build new business relationships and generate business
opportunities at the same time. A professional network service is an implementation of
information technology in support of business networking.
https://en.wikipedia.org/wiki/Business_networking
Consider this: It wasnt until 1997 that the Internet reached 50 million users in
the United States. Facebook gained over 100 million users in the U.S. from January
2009 to January 2010, marking a 145 percent growth rate within one year, according to
research by digital marketing agency Strategy Labs. If youre a business owner that
hasnt embraced social media networking as a major component of your success strategy,
its due time to hop onboard.
http://www.inc.com/guides/using-social-networking-sites.html
The main purpose of the Social Business application is to develop a social network
aimed to business people who want to make their businesses known to other people
and find their business partners easily. Of course with a little imagination the Social
Business application can be transformed in a different kind of social network.
What is Social Business for: - for someone who wants to develop a business
community, a social networking or business networking - for people who own several
businesses - for a user who wants to keep track of the appointments they have.
http://codecanyon.net/item/social-business-social-business-networking/6994093
11.11 Product Opinion Sites, Forums
A review site is a website on which reviews can be posted about people, businesses,
products, or services. These sites may use Web 2.0 techniques to gather reviews from
site users or may employ professional writers to author reviews on the topic of concern
for the site. Early review sites included Epinions.com and Amazon.com.
Review sites are generally supported by advertising. Some business review sites
may also allow businesses to pay for enhanced listings, which do not affect the reviews
and ratings.
https://en.wikipedia.org/wiki/Review_site
11.12 Affiliate Marketing and Syndication on the Internet
Affiliate marketing is a type of performance-based marketing in which a business

rewards one or more affiliates for each visitor or customer brought by the affiliates
Technology and Marketing own marketing efforts. The industry has four core players: the merchant (also known
as retailer or brand), the network (that contains offers for the affiliate to choose
from and also takes care of the payments), the publisher (also known as the affiliate),
and the customer. The market has grown in complexity, resulting in the emergence of a
NOTES
secondary tier of players, including affiliate management agencies, super-affiliates and
specialized third party vendors.
https://en.wikipedia.org/wiki/Affiliate_marketing
There are several other internet marketing strategies that are very similar to Affiliate
marketing in several aspects, as only the usual advertising tactics are applied by affiliates
too. Such tactics are PPC or pay per click seen in paid search engine marketing and
SEO or organic search engine optimization methods. Other methods in common with
internet marketing are the display advertising methods. However, affiliate marketing
can be a little different in some aspects, as they not just adhere to the traditional strategies,
and these include marketing by means of reviews about the affiliate partners products
or services.
http://www.advertisepurple.com/default.asp.pg-AffiliateMarketing_02
Affiliate Marketing Services has emerged as the most powerful way to market a
product online. Through Affiliate Marketing Solutions, it is possible to make thousands
of dollars online in a short time.
When you click an affiliate site and purchases one of your products, you pay your
affiliate a commission on the sale. Its like availing the benefit of a sales staff working
on commission without losing sleep over managing employees.
http://www.sovereign.co.in/Affiliate_Marketing.htm
Affiliate marketing overlaps with other Internet marketing methods to some degree,
because companies often use multiple advertising methods. Generally, the methods
companies use in online marketing include:
a) organic search engine optimization (SEO)
b) paid search engine marketing (also referred to as PPC Pay Per Click)
c) e-mail marketing
d) content marketing
e) and display advertising (banner ads)
The opportunity for a business to use affiliate marketing to its advantage is at its
best when the business either has a low or non-existent marketing budget, or prefers to
share a larger percentage of their sales with affiliates versus taking more marketing
risk with PPC or display advertising channels.
Affiliate marketing is frequently overlooked by advertisers. While search engines,
e-mail, and website syndication capture much of the attention of online retailers, affiliate
marketing carries a much lower profile. Still, affiliates continue to play a significant
role in e-retailers marketing strategies.
https://coverageoneinsurance.com/affiliates/ Technology and Marketing
11.13 Running an Internet Marketing Services Business

NOTES
Internet marketing services are in high demand in an industry that is growing by
leaps and bounds. Anyone who has an online business presence needs to know how
best to effectively market their website on the Internet and most will consult an Internet
marketing firm for assistance. Thats where the independent Internet marketing specialist
comes in.
And, because there are so many facets of Internet marketing, an owner of an
Internet marketing firm might decide to provide a wide variety of Internet marketing
services or specialize in only a few.
http://homebusiness.about.com/od/businessservicesbusiness/p/internet-
market.htm
11.14 Global Internet Marketing. Localization and

Customization
Website localization is the process of adapting an existing website to local language

and culture in the target market.[1] It is the process of adapting a website into a different
linguistic and cultural context[2] involving much more than the simple translation
of text. This modification process must reflect specific language and cultural preferences
in the content, images and overall design and requirements of the site all while
maintaining the integrity of the website. Culturally adapted web sites reduce the amount
of required cognitive efforts from visitors of the site to process information, making
navigation easier and attitudes toward the web site more favorable.
https://en.wikipedia.org/wiki/Website_localization
When you hear the terms Website globalization and Website internationalization,
it generally means the preparation of the site in order to make it easily adapted to
different locals or countries.
Localization is the process of adapting the Website for a specific country.
Localization involves language translation, design and cultural customization.
http://www.eplusm.com/website_localization.html
A successful localization project requires a balance of time, cost and quality.
With preparation and communication, your companys localization process will be
less complex. Communication is the key to maintaining this successful partnership
with your language vendor.
http://fita.org/aotm/0698.html

11.15 Trust in Internet Marketing Ethical and Legal Issues
Applying good ethical standards to the online world is a direct reflection of your
NOTES business online. Ethics affects all aspects of your business. It affects first and foremost
your companys brand image and subsequently how sales, marketing, and advertising
principles are applied to the task of making your company profitable for the long haul.
Ethics affects your employees, and how they represent your company online, on the
phone, in person, and all types of customer service and customer relations when dealing
with buyers, engineers, sales leads, and potential customers in both the business of
B2B and B2C, both of which covers the majority of business types in the world.
http://pwebs.net/i/internet-ethics/
The very nature of the Internet increases the complexity of tackling the above
problems. Internet involves diverse tools like telephone, television, print etc., and cuts
across national boundaries. Hence, Internet complicates the legal, ethical, business and
regulatory issues when compared to other media. Given these complexities and infancy
of Internet, Bush et al. in their study, traverse through these complex legal, ethical,
business and regulatory issues for Internet at three levels viz., societal, industry and
company.
https://chaturvedibraj.wordpress.com/2007/06/29/internet-marketing-some-
ethical-issues/
Ethics and Legal Issues
a) Ethics and law are closely related.
b) Ethics concerns the analysis of what is right and wrong and how we judge the
differences.
c) Modern technology presents a challenge to marketing ethics. Critical issues include:
I. Ownership of intellectual property
II. Freedom of expression
III. Use of data and its collection
IV. Status of children and digital networks
http://www.just.edu.jo/~tawalbeh/aabfs/ethics/presentations/ali.ppt.
11.16 Summary
Check Your Progress
What do you understand This unit is about the new avenues created by technology and the changes in way
by social networking? of marketing. These avenues are like Social media marketing,E-Marketing.The new
How social networking is methods of search engine optimization,and other ways of revenues pay per click like
creating new ways of for blogging,product opinion sites,display advertisement .This unit also describes
marketing? internet based marketing in detail and its effectiveness, ethical and legal issues is also
discussed.
11.17 Key Terms
Social media marketing: Social media marketing refers to the process of gaining
website traffic or attention through social media sites. NOTES
http://mashable.com/category/social-media-marketing/
E-Marketing: e-Marketing is any marketing done online via websites or other
online tools and resources. e-Marketing can include paid services while other methods
are virtually free. A wide variety of eMarketing methods are at your disposal, including:
direct email, SMS/text messaging, blogs, webpages, banners, videos, images, ads, social
media, search engines, and much, much more.
http://northcarolinadeportal.com/eMarketing/what-is-emarketing/
#sthash.UWBvjYNC.dpuf
Email Marketing: Email marketing is directly marketing a commercial message
to a group of people using email. In its broadest sense, every email sent to a potential or
current customer could be considered email marketing. It usually involves using email
to send ads, request business, or solicit sales or donations, and is meant to build loyalty,
trust, or brand awareness. Email marketing can be done to either sold lists or a current
customer database. Broadly, the term is usually used to refer to sending email messages
with the purpose of enhancing the relationship of a merchant with its current or previous
customers, to encourage customer loyalty and repeat business, acquiring new customers
or convincing current customers to purchase something immediately, and adding
advertisements to email messages sent by other companies to their customers.
https://en.wikipedia.org/wiki/Email_marketing
Technology and Marketing: Technology has always changed how marketing
works. What is different today is the unprecedented rate of change in the both the
development of marketing tools and the escalation of expectations for better experiences
from customers.
http://www.forbes.com/ sites/ johnellett/2014/09/30/ technology- is-changing- the-
future-of-marketing-again/

1) Why do you think you need a website?
2) What message would you like your website to convey?
3) Who is your website targeting?
4) Where is your target audience located?
5) When is the right time to employ pay per cost advertising?
6) Which part of SEO (Search engine optimization) advertising?
Technology and Marketing 7) How will you accomplish your internet goals?
8) Discuss the impact of technology on marketing activities. What factors
determine whether a business organization adopts and uses technology?
NOTES
1) Marketing High Technology by William H. Davidow, The free Press A
Division of Simon & Schuster Inc.
2) Packaged Pleasures How Technology and Marketing Revolutionized Desire
by Gary S. Cross and Robert N. Proctor, The University of Chicago Press
3) Marketing of High-technology Products and Innovations by Jakki J. Mohr,
Sanjit Sengupta, Stanley F. Slater, Pearson Education.
4) Fundamentals of High-technology Marketing: What Marketers Need to Know
by Ira S. Kalb, K&A Press
11.20 References
1) Boundless. Use of New Technologies in Marketing and
Research. Boundless Marketing. Boundless, 10 Jul. 2015. Retrieved 12 Jul.
2015 from https://www.boundless.com/marketing/textbooks/boundless-
marketing-textbook/the-marketing-environment-3/technology-32/use-of-
new-technologies-in-marketing-and-research-171-4044/
2) http://codecanyon.net/item/social-business-social-business-networking/
6994093
3) http://fita.org/aotm/0698.html
4) http://homebusiness.about.com/od/businessservicesbusiness/p/internet-
market.htm
5) http://pwebs.net/i/internet-ethics/
6) http://www.advertisepurple.com/default.asp.pg-AffiliateMarketing_02
7) http://www.emarketer.com/Article/Blog-Podcast-RSS-Advertising-Surge-
Ahead/1003936#sthash.WhSRfxkf.dpuf
8) http://www.eplusm.com/website_localization.html
9) http://www.inboundnow.com/10-online-marketing-trends-predictions-2015/
10) http://www.inc.com/guides/using-social-networking-sites.html
11) http://www.just.edu.jo/~tawalbeh/aabfs/ethics/presentations/ali.ppt.
12) http://www.knowonlineadvertising.com/advertisingdictionary/definition-of-
rss/
13) http://www.prarts.com/Lesson_View.aspx?LessonId=7.
14) http://www.quistdesigns.com/rss-blog-podcast.html
Marketing Management : 192 15) http://www.sovereign.co.in/Affiliate_Marketing.htm
16) http://www.webopedia.com/TERM/P/PPC.html Technology and Marketing
17) http://www.webopedia.com/TERM/S/SEO.html
18) http://www.whatisseo.com/
19) http://www.wordstream.com/pay-per-click NOTES
20) https://chaturvedibraj.wordpress.com/2007/06/29/internet-marketing-some-
ethical-issues/
21) https://coverageoneinsurance.com/affiliates/
22) https://en.wikipedia.org/wiki/Affiliate_marketing
23) https://en.wikipedia.org/wiki/Business_networking
24) https://en.wikipedia.org/wiki/Customer_relationship_management
25) https://en.wikipedia.org/wiki/Display_advertising
26) https://en.wikipedia.org/wiki/Online_advertising
27) https://en.wikipedia.org/wiki/Pay_per_click
28) https://en.wikipedia.org/wiki/Pay_per_click
29) https://en.wikipedia.org/wiki/Review_site
30) https://en.wikipedia.org/wiki/Search_advertising
31) https://en.wikipedia.org/wiki/Search_engine_optimization
32) https://en.wikipedia.org/wiki/Social_media_marketing
33) https://en.wikipedia.org/wiki/Website_localization
34) https://support.google.com/feedburner/answer/79408?hl=en
35) https://www.advertising.com/displayuniversity/display-fundamentals/what-
display
36) https://www.infousa.com/email-marketing/
37) https://www.socialpsychology.org/blogs.htm

India
Reference Reading :
John Wiley & Sons.
York.

Marketing Ethics
UNIT 12 MARKETING ETHICS
NOTES Structure
12.0 Introduction
12.2 Marketing Ethics
12.3 Fundamental issues in the Ethics of marketing
12.4 Principles of Ethical Marketing
12.5 Specific issues in marketing ethics
12.6 Responsibilities of the Marketer
12.7 Ethical issues in Political Marketing
12.8 Ethical challenges of social marketing
12.9 Marketing in Synchronization and Synonimity with Social Relevance
12.10 Strategic Businesses with Social Relevance
12.11 Summary
12.12 Key Terms
12.15 References
12.0 Introduction
This unit is about familiarizing reader with ethics of marketing and what are
the responsibilities of marketers. This also discusses about social marketing, the way
in which marketing activities is synchronized with social relevance.
The major objective of this Unit is to familiarize the readers with marketing
ethics, meaning definitions and provisions so as to enable them to visualize that how
these are important for the business organizations to understand these things so as to
steer the businesses well.

1. Explain Marketing Ethics
2. State principles of Ethical Marketing.
3. State responsibilities of the Marketer.
4. Explain ethical issues in Political Marketing.
Marketing Ethics
12.2 Marketing Ethics
Marketing ethics is an area of applied ethics which deals with the moral principles
behind the operation and regulation of marketing. Some areas of marketing ethics NOTES
(ethics of advertising and promotion) overlap with media ethics. https://en.
wikipedia.org/wiki/Marketing_ethics Marketing ethics is the systematic study of how
moral standards are applied to marketing decisions, behaviors, and institutions.
Marketing ethics is mostly focused on marketing behaviors that are not prohibited by
the law but perhaps should not be indulged due to certain moral considerations. And
thus, marketing ethics is often concerned with actions that are currently legal but still
might be judged improper according to some invoked moral standard. Laczniak, E.
(2008). Ethics is concerned with what is right and what is wrong. Many people assume
that only actions that violate laws are considered unethical. While it is true that illegal
activity is also unethical, a business activity can be unethical even though no laws are
violated. For instance, some consider it unethical for marketing companies to
aggressively promote unhealthy foods to children though such promotional practices
are generally not viewed as illegal. http://www.knowthis.com/what-is-marketing/ethics-
in-marketing. It promotes qualitative benefits to its customers, which other similar
companies, products or services fail to recognise. The concern with ethical issues,
such as child labour, working conditions, relationships with third world countries and
environmental problems, has changed the attitude of the Western World towards a
more socially responsible way of thinking. This has influenced companies and their
response is to market their products in a more socially responsible way. https://
en.wikipedia.org/wiki/Ethical_marketing
Ethical marketing expert Horowitz says despite Nikes reputation, its CSR activity
will help the brand: Its trying to do the right thing and that will ward off consumer
backlash and give Nike a stronger foundation to compete. Baveystock also believes
that while Starbucks is vilified for being a big nasty brand, if its CSR work is promoted
consistently and innovatively, it will eventually gain credibility. ETHICAL
MARKETING: A question of ethics.(2005)
12.3 Fundamental Issues in the Ethics of Marketing

a) Value-oriented framework, analyzing ethical problems on the basis of the
values which they infringe (e.g. honesty, autonomy, privacy, transparency).
b) Stakeholder-oriented framework, analysing ethical problems on the basis of
whom they affect (e.g. consumers, competitors, society as a whole).
c) Process-oriented framework, analysing ethical problems in terms of the
categories used by marketing specialists (e.g. research, price, promotion,
placement).
http://www.studymode.com/essays/Fundamental-Issues-In-The-Ethics-Of-
879735.html Marketing Management : 195
Marketing Ethics Principles of Ethical Marketing
12.4 Principles of Ethical Marketing

NOTES
a) All marketing communications share the common standard of truth.
b) Marketing professionals abide by the highest standard of personal ethics.
c) Advertising is clearly distinguished from news and entertainment content.
d) Marketers should be transparent about who they pay to endorse their
products.
e) Consumers should be treated fairly based on the nature of the product and
the nature of the consumer (e.g. marketing to children).
f) The privacy of the consumer should never be compromised.
www.marketing-schools.org/types-of-marketing/ethical-marketing.html
12.5 Specific Issues in Marketing Ethics

a) Market research: ethical danger points in marketing research include: - Invasion
of privacy Stereotyping
b) Pricing ethics: list of unethical pricing practice: - Price fixing - Price skimming -
Price discrimination - Price wars - Bid rigging Dumping
c) Advertising and promotion: ethical pitfall: - Issues over truth and honesty - Issues
with violence, sex and profanity - Taste and controversy - Negative advertising
www.answers.com/Q/What_are_the_main_ethical_issues_of_marketing)
d) Market audience:
a) Excluding potential customers from the market: selective marketing is used
to discourage demand from undesirable market sectors or disenfranchise
them altogether.
b) Targeting the vulnerable (e.g. children, the elderly).
e) Advertising and promotion: ethical pitfall: - Issues over truth and honesty -
Issues with
violence, sex and profanity - Taste and controversy - Negative advertising
http://www.answers.com/Q/What_are_the_main_ethical_issues_of_marketing

Marketing Ethics
12.6 Responsibilities of the Marketer
Marketers must accept responsibility for the consequences of their activities and
make every effort to ensure that their decisions, recommendations and actions function NOTES
to identify, serve and satisfy all relevant publics: customers, organizations and society.
Marketers Professional Conduct must be guided by:
a) The basic rule of professional ethics: not knowingly to do harm;
b) The adherence to all applicable laws and regulations;
c) The accurate representation of their education, training and experience;
d) The active support, practice and promotion of this Code of Ethics.
http://web.csulb.edu/colleges/cba/marketing/code-of-ethics/
12.7 Ethical Issues in Political Marketing
As an area of academic research and teaching, political marketing is a modern

and dynamic field that seeks to understand, learn from, comment on and even influence
such behavior. Political marketing also attracts public attention and debate. It has
become the focus of many recent movies such as Game Change, The Iron Lady, The
Ides of March and No; and TV series such as The West Wing, VEEP and Scandal which
cover strategy, branding, positioning, crisis management and polling, and raise ethical
issues of authenticity, targeting ethnic minorities and gender.
http://flexiblelearning.auckland.ac.nz/political_marketing/
40.html?t=1392702364.73
European political process. It demonstrates the adoption of specialist
communication tools and how they affect referenda, party conferences, campaigning,
direct marketing and media management and explores how strategic lobbying can
influence the political process. It also examines the ethical issues that these
developments create. http://www.amazon.in/Political-Marketing-Chartered-Institute/
dp/0750645377
Political marketing is a concept referring to one of the extensions of marketing
in the social and political field, designating the preparation, implementation and control
of the programs, and focusing on the increase in the adherence to a party, candidate Check Your Progress
or political program within one or several target electoral groups (Potincu,2008) What do you understand
by Marketing Ethics?
For those involved in political marketing, it appears that holding similar views
What are the
in the perception of ethical issues related to political advertising is not the only factor
responsibilities of
to base a good agency-client relationship. Other important factors are involved in
Marketer?
the political advertising process which can effect the agency-client relationship which
should be considered when taking on such accounts. (Waller, 2002)

Marketing Ethics It is clear that there are widespread concerns about ethics in political marketing.
Mainstream marketing in most developed economies exists within a world of product
and advertising regulation with professional codes of conduct. Within these frameworks,
ethical issues do not loom large because the frameworks largely preclude practices
NOTES
which most marketers, advertisers or market researchers would find unacceptable.
http://www.researchgate.net/publication/242347129_Political_marketing_-
12.8 Ethical Challenges of Social Marketing
Accordingly, it might be suspected that social marketing contains ethical problems

that commercial marketing does not. However, with few exceptions, previous studies
of the ethical challenges social marketing faces have not identified such special ethical
issues (see below Table ). This does not make the moral issues they identify less
important as moral issues, but neither does it indicate any particular ways in which
social marketing may itself raise ethical questions. It is the latter, I contend, that deserves
special attention.
Representative Discussion of Ethical Issues Confronting Social Marketing
Source: (Brenkert, 2002)

For marketers in commercial organisations, ethical considerations are essentially
constraints. The ultimate aim is to make profits for shareholders, and ethical
considerations may limit the methods employed to achieve this aim. For social marketers
the situation is different; by definition, their ultimate aims are ethical, and for them the
question of whether the ends justify the means is real and challenging. For social
marketers, therefore, ethical issues are fundamental.
http://wwwdocs.fce.unsw.edu.au/marketing/amj_11_01_kearns.pdf.
Peter Drucker (1974) conceived of executives as follows: As a member of a
leadership group a manager stands under the demands of professional ethicsthe
demands of an ethic of responsibility (p. 368). Marketing managers would do well to
follow this line of thinking in conceiving of their own ethical obligations. Laczniak, et
Marketing Management : 198 al, (2006).
Marketing Ethics
12.9 Marketing in Synchronization and Synonimity with
Social Relevance
NOTES
For almost a century marketing perspective has been dominated with the buying
capacity and the buying power.
Marketers and business organizations have been overwhelmingly perplexed with
the thought of producing goods and segmenting market on the basis of the buying
capacity.
Then came in an era when marketing thinkers like Late C. K. Prahalad, Allen
Hammond, Stuart Hart and other established and influential thinkers of marketing an
strategy started pursuing the core purpose of business and marketing i.e. development
of prosperity and opulence through inclusiveness by justifiably and strategically putting
forth business propositions enabling a combination of Affordability and Profitability.
This thought then got substantial impetus through business efforts logically
directed towards businesses which were earlier categorized as social businesses.
But the questions like which business should not be termed as a social business
at the core of it and what has been the purpose of business since Adam Smith and other
great thinkers expressed their thoughts on Wealth and Money and Amartya Sen
elaborated on opulence to be at the core of everything.
Contemporary definition of Marketing as we have seen in MODULE 1 in 2007
revisited the whole purpose of marketing and every thought got directed towards societal
purpose of marketing.
Lets revisit the definition once again and few verses from Ramayana the great
epic for creating a parity here:
The American Marketing Association formally defines marketing as the activity,
set of institutions, and process for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large.
Subsequent Verses (Chaupaies in Hindi language have been taken from
Ramcharitrmanas an Indian Epic and interpreted in English language hence forth)
Check Your Progress

What are different Ethical
Challenges?

Marketing Ethics -KMNHMN7
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Shri Ram Rajya

Every Citizen of Shri Rams Rajya is happy, content and crystal clear about his
duties, responsibilities and direction. Every person is aware of the range of benefits
they have to look for and expect. The people look towards the society and the world
through a very large and everlasting perspective and on an immensely broad canvas.
There is trade and business and every other activity related to any social structure but
the system functions in a self propelled self sustainable manner.
12.10 Strategic Businesses with Social Relevance
You must have heard of :

Narayan Hrudayalaya
Grameen Bank Bangladesh
Jaldoot
Husk Power Systems
ITC e-Choupal
HULs project Shakti
Several great businesses as described in Earth the Sequel by Fred Krupp Marketing Ethics
And several other such examples of strong business orientation with
Bottom of the Pyramid Orientation
Inclusiveness NOTES
Customer Empowerment
Market and Business Development
OR
AFFORDABILITY FOR THE POOR AND PROFITABILITY FOR THE
PROVIDER perspective. You may refer to one of my books with the same name.
12.11 Summary
This unit is about familiarized reader with ethics of marketing and also described
about the responsibilities of marketers.This also discussed about social marketing,the
way in which marketing activities is synchronized with social relevance.
12.12 Key Terms
Ethics : As a branch of philosophy, ethics investigates the questions What is the

best way for people to live? and What actions are right or wrong in particular
circumstances? In practice, ethics seeks to resolve questions of human morality, by
defining concepts such as good and evil, right and wrong, virtue and vice, justice and
crime. As a field of intellectual enquiry, moral philosophy also is related to the fields
of moral psychology, descriptive ethics, and value theory.
https://en.wikipedia.org/wiki/Ethics
Marketing Ethics : Basic principles and values that govern the business practices
of those engaged in promoting products or services to consumers. Sound marketing
ethics are typically those that result in or at least do not negatively impact consumer
satisfaction with the goods and services being promoted or with the company producing
them.
h t t p : / / w w w . b u s i n e s s d i c t i o n a r y. c o m / d e f i n i t i o n / m a r k e t i n g -
ethics.html#ixzz3hkWDteRg

1) Why is ethics an important consideration in marketing decisions?
2) Define the nature and scope of marketing ethics from both a descriptive and
normative perspective.
Marketing Ethics 3) What can be found in examining the history of marketing ethics that could
be used in understanding marketing ethics today?
4) How does the contingency framework for understanding ethics in a marketing
organization assist in designing an effective program to maintain and improve
NOTES
ethics in marketing?
5) What is the interrelationship between contract law and ethics in building
and sustaining marketing exchanges?
6) Discuss the relationship between corporate ethical values and organizational
performance in marketing.
12.14 Books for Further Readings

1) Ethical Theory and Business 9th Edition by by Denis G. Arnold, Tom L.
Beauchamp, Norman L.. Bowie
2) Marketing Ethics by George G. Brenkert, Wiley-Blackwell
3) Ethical Theory and Business: by Denis G. Arnold, Tom L. Beauchamp,
Norman L.. Bowie, Pearson New International Edition
4) Brief Guide to Marketing Ethics by SAGE Publications Inc.
5) Globalization of Markets, Marketing Ethics and Social Responsibility by
Recep Ycel
12.15 References
1) Brenkert, G. G. (2002). Ethical challenges of social marketing. Journal of
Public Policy & Marketing, 21(1), 14-25. Retrieved from http://
search.proquest.com/docview/211102312?accountid=62831
2) Drucker, Peter F. 1974. Management: Tasks, responsibilities, practices. New
York: Harper & Row.
3) ETHICAL MARKETING: A question of ethics.(2005). Brand Strategy, ,
24-27. Retrieved from http://search.proquest.com/docview/
224186008?accountid=62831
4) http://flexiblelearning.auckland.ac.nz/political_marketing/
40.html?t=1392702364.73
5) http://web.csulb.edu/colleges/cba/marketing/code-of-ethics/
6) http://www.amazon.in/Political-Marketing-Chartered-Institute/dp/
0750645377
7) http://www.answers.com/Q/What_ are_ the_ main_ ethical_ issues_ of_
marketing
8) http://www.knowthis.com/what-is-marketing/ethics-in-marketing
9) http://www.researchgate.net/publication/242347129_Political_marketing_-
10) http://www.studymode.com/essays/Fundamental-Issues-In-The-Ethics-Of- Marketing Ethics
879735.html
11) http://wwwdocs.fce.unsw.edu.au/marketing/amj_11_01_kearns.pdf.
12) https://en.wikipedia.org/wiki/Ethical_marketing
NOTES
13) https://en.wikipedia.org/wiki/Marketing_ethics
14) Laczniak, G. R., & Murphy, P. E. (2006). Normative perspectives for ethical
and socially responsible marketing. Journal of Macromarketing, 26(2), 154-
177.
15) Potincu, C. (2008). ETHICS LIMITS IN POLITICAL
MARKETING. Bulletin of the Transilvania University of Brasov.Economic
Sciences.Series V, 1, 81-86. Retrieved from http://search.proquest.com/
16) Waller, D. S. (2002). Advertising agency-client attitudes towards ethical
issues in political advertising. Journal of Business Ethics,36(4), 347-354.
Retrieved from http://search.proquest.com/docview/198194501? accountid
= 62831
17) www.answers.com/Q/What_are_the_main_ethical_issues_of_marketing)
18) www.marketing-schools.org/types-of-marketing/ethical-marketing.html
India
Reference Reading :
John Wiley & Sons.
York.

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Yashwantrao MBA204

Unit 1 : Introduction to Marketing Management 1

Director (I/C), School of Commerce & Management : Dr. Prakash Deshmukh

Dr. Pandit Palande Prof. Devanath Tirupati, Dr. Surendra Patole

Author & Editor

Instructional Technology Editing & Programme Co-ordinator

Copyright Yashwantrao Chavan Maharashtra Open University, Nashik.

1.1 Unit Objectives

1.2 Marketing Management

1.3 Marketing is Commitment

Marketing is Commitment and marketing management teaches us about how to

1.4 Definition Of Marketing

NOTES (v) How to make you learn things?

1.5 Marketing Planning and Process

1.7 Selling and Marketing

Did I mention sales, personal Selling or selling somewhere in preceding

1.9 Consumer Behaviour and Buying Decision Process

Our marketer must be beware of :

1.10 Marketing Mix

NOTES You must have seen cycle salesmen.

1.11 Marketing Research

1.12 Customer Relationship Management

Coming back to the discussion on sales I initiated with the perspective of

1.14 Production to Production of Technology to

Marketing mix NOTES

Now lets look at the components of marketing mix more comprehensively so as

Lets take the example of school and management education.

Senior Products &

Ethics Community Customers Partners

1.17 Marketing Environment

I strongly recommend that please keep revisiting the definition(s) of marketing

NOTES Factors associated with these two parts may be:

Marketing management must be seen and understood with an all encompassing

1.19 Key Terms

1. Kotler, P., Armstrong, Agnihotri and Haque ``Principles of Marketing, 13th

2.1 Unit Objectives

Its origin and perspective

Yacht marina and part of old city of Antalya

Shrimad Bhagvad Gita in different editions 71.9 million

Shri Ramcharitamanas & other works by Goswami Tulsidas 70.0 million

Puranas, Upanishads, Ancient Scriptures 19.0 million

Small books especially for Women and Children 94.8 million

Bhakta-Gathas (Biographies of Saints) & Bhajans 65.1 million

Others 87.4 million

Total 408.2 million

Hindi & Sanskrit 739

2.3 Value and Value Chain

,QERXQG 2SHUDWLRQV 2XWERXQG 0DUNHWLQJ 6HUYLFH

/RJLVWLFV /RJLVWLFV DQG6DOHV

2.4 Planning : Span, Scope and Attributes

2.6 Key Terms

2.7 Questions and Exercises

2.8 Further Reading and References

3.1 Unit Objectives

3.2 Marketing Research, Analysis and Forecasting

Check Your Progress

3.4 Marketing Research

NOTES (ii) Stratification random sample- though randomized but population is

The question that emerges is:

What is the problem?

Say hypothetical answer or as we call, hypothesis is faculty quality is the problem.

NOTES 3.6 Understanding Consumers and Customers to Achieve

3.7 Decision on Buying

I will be elaborating on consumer behaviour and buying decision process in later