Journals of Marketing

_______________

MASTER IN BUSINESS ADMINISTRATION

From
NARAYANA BUSINESS SCHOOL, AHMEDABAD

Component: (Specify CEC/Internal)

Submitted By
NAME:  VINAYAK PANDLA
BATCH:  MBA 2020-2022
ROLL NO: MBA2020-170

Under The Guidance Of
NAME: Dr. Shivangi Shukla
DESIGNATION: Assistant Professor
 INDEX
S. No. Particulars Page No.
1 Definition of Marketing 01
2 Core Concepts 01
3 Orientation of Marketing 04
4 The 4 P’s of Marketing 05
5 The Value Chain 07
6 What is Marketing Plan? 08
7 Macro Environment 09
8 Customer Value and Customer Perceived Value 11
9 Customer Relationship 12
10 Consumer Behaviour 13
11 Elements of Consumer Decision Making Process 14
12 Business Market and Consumer Market 15
13 Customer and Consumer 16
14 Segmentation, Targeting and Positioning 18
15 Base of Segmentation 19
16 Competitive Strategy 20
17 Product Life Cycle 20
18 Product Mix 22
19 Product Classification 24
20 Product Line and Decision 27
21 Packaging, Labelling and Warranties 28
22 New Product Development with Stages 35
23 Brand Equity 35
24 Branding and Co-branding 35
25 Brand Extension 36
26 Definition of Service 36
27 Service Characteristics 37
28 Price Adaptation and Strategies 37
29 Marketing Channels 37
30 IMC 38
31 5 M’s 40
32 Sales Promotions and Tools 41
33 Public Relation 41
34 Direct Marketing 41
35 Word of Mouth 42
36 Opinion Leader 42
37 Interactive Marketing 43
38 Personal Selling and Process 43
39 Backward, Forward and Horizontal Integrated 43
40 Downsizing 44
41 Marketing Intelligence System 44
42 Marketing Matrix 44
43 Sales Quota 45
44 Market Potential 45
45 Value Proposition 45
46 Customer Delight and Satisfaction 45
47 Customer Lifetime Value 46
48 CRM 46
49 Different Groups 47
1. Definition of Marketing

Marketing is an activity of a company that refers to promote, buying or selling of a product, service or
good. It is a primary function of any business management. Marketing is the set of institutions for
processes for creating, communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large.

2. Core Concepts

Need
Market,
Marketing,
Marketer, Wants
and
Prospect

Relationshi Core
ps and concepts in Demand
Network Marketing

Exchange,
Transaction
Products
, and
Transfer
Utility ,
Cost, and
Satisfaction

 Need
Needs are physiological in nature. Individuals require food, cover, dress, regard, having a place, and
in like manner. Note that needs are not made. They are pre-existed in person. Needs make
physiological pressure that can be delivered by burning-through/utilizing items.
 Wants
Wants are the choices to fulfill a particular need. They are want for explicit satisfiers to address
explicit issue. For instance, food is a need that can be fulfilled by assortment of ways, like sweet,

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 bread, rice, sapati, puff, and so forth These alternatives are known as wants. Truth be told, each need
can be fulfilled by utilizing various alternatives.

 Demand
Demand is the need for explicit items that are supported by the capacity and eagerness (might be
availability) to get them. It is constantly communicated according to time. All needs are not sent in
demand. Such needs which are upheld by capacity and eagerness to purchase can turn as demand.
 Products
Product can likewise be alluded as a heap of fulfillment, physical and mental both. Product
incorporates center product (fundamental substance or utility), product-related highlights (shading,
marking, bundling, naming, assortments, and so on), and product-related administrations (after-deals
administrations, assurance and warrantee, free home conveyance, free fixing, etc). In this way,
substantial product is a bundle of administrations or advantages. Advertiser ought to consider
product advantages and administrations, rather than product itself.
 Utility , Cost, and Satisfaction
Utility means overall capacity of product to satisfy need and want. It is a guiding concept to choose
the product. Every product has varying degree of utility. As per level of utility, products can be
ranked from the most need-satisfying to the least need-satisfying.
Cost means the price of product. It is a financial worth of item. The charges a client needs to pay to
benefit certain administrations can be said as cost. The utility of item is contrasted with cost that he
has with pay. He will choose such an item that can offer greater utility (an incentive) at certain cost.
He attempts to amplify esteem, that is, the utility of item per rupee.
Satisfaction means fulfillment of needs.Satisfaction is conceivable when purchaser sees that item
has more worth contrasted with the expense paid for. Satisfaction intently worries with satisfaction
of the relative multitude of assumptions for purchaser. Satisfaction delivers the strain that has
stimulated due to neglected need(s). To put it plainly, greater utility/esteem with less expense results
into more satisfaction.
 Exchange, Transaction, and Transfer
Exchange is in the focal point of advertising. Showcasing the executives attempts to show up at the
ideal exchange. Individuals can fulfill their necessities and needs in one of the four different ways –
self-creation, intimidation/grabbing, asking, or trading.
Exchange is possible when following five conditions are satisfied:
1. There should be at least two parties
2. Each party has something that might be of value to the other party

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 3. Each party is capable of communication and delivery
4. Each party is free to accept or reject the exchange offer
5. Each party believes it is desirable to deal with the other party

Transaction involves following conditions:

1. At least two things of value
2. Agreed upon conditions
3. A time of agreement
4. A place of agreement
5. A law (legal system) of contract to avoid distrust

Transfer includes acquiring something with no offer or offering anything with no return. For
instance, Mr. X offers blessing to Mr. Y. Transfer is a single direction measure. Yet, unadulterated
transfer is not really found practically speaking. One transfers something for certain unexpressed
assumptions. Offer of cash to bum is to get the courtesy of God.
 Relationships and Network
Relationship marketing results into economical, technical, social, and cultural tie among the parties.
Marketing manager is responsible for establishing and maintaining long-term relations with the
parties involved in business. The present showcasing practice gives more significance to relation
building. Showcasing practice dependent on relation building can be said as relationship promoting.
Relationship promoting is the act of building long haul productive or fulfilling relations with key
gatherings like clients, providers, wholesalers, and others to hold their drawn out inclination in
business.
Network is a definitive result of relationship advertising. A showcasing network comprises of the
organization and its supporting partners – clients, representatives, providers, wholesalers, promoting
offices, schools and colleges, and others – whose job is viewed as fundamental for achievement of
business. It is a lasting arrangement of relations with partners. A decent network of associations with
key partners results into dominating the showcasing execution over the long run.
 Market, Marketing, Marketer, and Prospect
In marketing management, every now and again utilized words are markets, marketing, marketer,
and prospects. A market comprises of all potential clients sharing a specific need or need who may
be willing and ready to participate in return to fulfill this need or need.
Marketing is social and administrative interaction by which people and gatherings get what they
need and need through making and trading item and worth with others.

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 Marketer is one who looks for at least one prospects (purchasers) to participate in a trade. Here,
dealer can be marketer as he needs other to participate in a trade. Typically, organization or specialty
unit can be said as marketer.
Prospect is somebody to whom the marketer recognizes as conceivably willing and ready to
participate in the trade. (If there should be an occurrence of trade between two organizations, both
can be said as prospects just as marketers). For the most part, shopper or client who purchases item
from an organization for fulfilling his necessities or needs can be said as the prospect.

3. Orientation of Marketing
An organisation focus (and subsequently its marketing) is centred around five key categories,
classified into the following orientation concepts: Production Concept, Product Concept, selling
Concept, holistic Concept and marketing orientation.
 Production Concept
A production orientated association generally works a large scale manufacturing model and
smoothes out this production interaction for its item offering. This direction approach expects that its
clients esteem cost, and hence, it centers around bringing production costs down to meet such value
needs of this client base.
Advantages: Economies of scale, efficiency, low cost to customers.
Disadvantages: Disregards customer needs, set-up costs are usually high.
 Product Concept
It may be accepted that a product direction approach is like a production direction approach. In any
case, it is by and large the inverse. This way to deal with business concerns its products and
constantly improving and refining them so the product can generally be better than that of its rivals.
Thus, as the past direction was revolved around cost, product direction is based on quality, which
regularly builds the cost.
Advantages: Focus on quality, innovation, skills development/outsourcing.
Disadvantages: Potential missed market opportunities, obsolescence.
 Selling Concept
A selling concept association centers most of its assets on offering its items and administrations to its
intended interest group. As it were, it focuses on its clients however not one might say of tuning in to
their necessities and needs – it just needs to offer to them.
Advantages: Immediate short-term sales are generated.
Disadvantages: Risks customer confidence, costs, not always sustainable.
 Marketing Concept

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 A marketing concept association takes a gander at the market and its intended interest group first,
before any creation or deals exercises happens, to take in what potential clients need from
associations. The item or administration offering is subsequently made considering the client,
bringing about a genuine client first methodology.
marketing concept in marketing technique terms, ordinarily rotates around culture, values and other
inward practices zeroed in on fulfilling client needs that are generally well-informed earlier.
Advantages: Customer satisfaction, loyalty, continual investment in research.
Disadvantages: Reactive, not always innovative, market al
 Holistic Concept
The holostic concept association, thinking about its item, cycle and its showcasing, to a degree,
centers around the effect its association and items has inside the social orders it works inside, just as
the more extensive climate. Moral contemplations as such have gotten profoundly famous inside the
drug and life science ventures.
Advantages: Image is enhanced, appeals to upcoming markets, ethical.
Disadvantages: Marketing message is sometimes distorted, limited budget.

4. The 4 P’s of Marketing

The marketing mix is a tool used to help brands understand what elements must be combined in
order to meet their marketing goals and objectives. Ultimately, this includes the 4 Ps of marketing:
product, price, place and promotion.

Product
A product refers to any item that intends to satisfy the needs and wants of a target customer. It can be
a tangible good, such a clothing item or piece of software, or intangible, like a service or experience
(think legal services or a cruise).
Marketers must always have a clear concept of what their products stand for, and what differentiates
them from the competition, before they can be marketed successfully. Today, the internet can be
considered either the medium for purchase, via e-commerce, or the product itself, such as a social
media service. Because of this, it’s vital that marketers fully understand the product they are selling,
how it meets the needs of their target customer, and what makes their product stand above the
competition.

Some key questions that marketers need to answer include:

 What do customers want from your product/service? Does it satisfy their needs?
 What features of your product/service work to meet your customer’s needs? Have you missed out on
any features?
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 How and where will the customer use it?
 How will the customers experience it?

Price
First comes the product, and immediately after comes a determination of its value among target
audiences. Pricing strategy is an art and a science, in that it involves both market data and careful
calculations, as well as skillfully balancing between pricing that is too high or too low, and
understanding how skewing either way might damage the brand.
Price not only refers to the monetary value of a product, but also the time or effort the customer is
willing to expend to acquire it. Determining this will be a critical factor in revenue for the brand as it
will impact profit, supply, demand, and how much marketers should spend on a promotion or
marketing strategy. This, in and of itself, is why this ‘P’ is one of the most important. If a product is
priced too high or too low, the product – and brand – could fail.

Some key questions that marketers need to answer include:

 What is the value of the product or service to the buyer?
 How will your price compare to competitors?
 Are there any possible established price points for the product/service in this area?

Place
The internet age has introduced new challenges when it comes to reaching your customers. Place
refers to providing customers access to the product, and it also calls into play convenience for the
customer. Marketing, through digital means or otherwise, is about putting the right product, in the
right place, at the right price, at the right time, in front of the customer.
Some key questions that marketers need to answer include:
 Where are target customers shopping?
 Are they using desktops or mobile devices?
 Are they shopping for similar products online, or in brick-and-mortar stores?
 Where are they engaging on social media?

Even though transactions with your company may take place exclusively in-store or online,
customers likely interact with your brand or your specific products in a variety of places. It’s
important to consider how each of these places influences the overall customer experience.

Promotion

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 Now, how to make an audience aware of the product? Within the framework of the four Ps,
promotion refers primarily to marketing communications.
These communications use channels such as public relations, advertising, direct marketing, email
marketing, social media marketing, or sales promotions; think of it as any way marketers
disseminate relevant product information to their target customers.
Promotion is the area that has arguably seen the greatest growth and change as a result of the
digital age. With the exceptional access offered by B2C marketing solutions, marketers can now
promote products easier, more effectively, and with more personalization than ever before, thus
leading to greater outcomes and ever-increasing expectations.

Some key questions that marketers need to answer include:

 How will you reach your target audience?
 Where will you send your marketing messages to your target audience?
 How does your competition promote their product? Does that influence your own promotional
activity?

 When is the best time to promote?

5. The value chain

A value chain is a business model that describes the full range of activities needed to create a product
or service. The purpose of a value-chain analysis is to increase production efficiency so that a
company can deliver maximum value for the least possible cost.

KEY TAKEAWAYS
 A value chain is a step-by-step business model for transforming a product or service from
idea to reality.
 Value chains help increase a business's efficiency so the business can deliver the most value
for the least possible cost.
 The end goal of a value chain is to create a competitive advantage for a company by
increasing productivity while keeping costs reasonable.
 The value-chain theory analyses a firm's five primary activities and four support activities.

Components of Value Chain

There are mainly 2 components of Value Chain
1. Primary
2. Support
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 Primary Activities
Primary activities consist of five components, and all are essential for adding value and creating
competitive advantage:
 Inbound logistics include functions like receiving, warehousing, and managing inventory.
 Operations include procedures for converting raw materials into a finished product.
 Outbound logistics include activities to distribute a final product to a consumer.
 Marketing and sales include strategies to enhance visibility and target appropriate customers—
such as advertising, promotion, and pricing.
 Service includes programs to maintain products and enhance the consumer experience—like
customer service, maintenance, repair, refund, and exchange.

Support Activities

The role of support activities is to help make the primary activities more efficient. When you
increase the efficiency of any of the four support activities, it benefits at least one of the five
primary activities. These support activities are generally denoted as overhead costs on a
company's income statement:

 Procurement concerns how a company obtains raw materials.

 Technological development is used at a firm's research and development (R&D) stage—like
designing and developing manufacturing techniques and automating processes.
 Human resources (HR) management involves hiring and retaining employees who will fulfil
the firm's business strategy and help design, market, and sell the product.
 Infrastructure includes company systems and the composition of its management team—such
as planning, accounting, finance, and quality control.

6. What is Marketing Plan

The marketing plan details the strategy that a company will use to market its products to customers.
The plan identifies the target market, the value proposition of the brand or the product, the
campaigns to be initiated, and the metrics to be used to assess the effectiveness of marketing
initiatives.
The marketing plan subtleties the methodology that an organization will use to showcase its items to
clients. The plan distinguishes the objective market, the incentive of the brand or the item, the
missions to be started, and the measurements to be utilized to survey the adequacy of marketing
activities. The functions and components of a marketing plan include the following:

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  Market research to support pricing decisions and new market entries
 Tailored messaging that targets certain demographics and geographic areas
 Platform selection for product and service promotion—digital, radio, Internet, trade
magazines, and the mix of those platforms for each campaign
 Metrics that measure the results of marketing efforts and their reporting timelines

7. Macro Environment
In the field of marketing, the macro environment is the set of external factors and forces, not
controlled by the company, that influence its development. It mainly includes demographic,
economic, cultural, technological, legal or political elements.
 The Macro Environment consists of 6 different forces. That also called DESTEP Model

Demographic
Force

Technologica Economic
l Force Force

Force in Macro
Environment

Socio-
Political
Culture
Force
Force

Ecological
Force

 Demographic Force

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 Demographic forces identify with people. The name alludes to the term Demography. The
last alludes to the investigation of human populations. This incorporates size, density, age,
gender, occupation and other statistics. Why are people significant? Since, in general, their
necessities are the justification organizations to exist. In other words, people are the main
impetus for the advancement of business sectors. The enormous and different demographics
both offer freedoms yet additionally challenges for organizations. Particularly in the midst of
fast total populace development, and generally demographic changes, the investigation of
people is urgent for advertisers. The reason is that changing demographics mean changing
markets. Further, changing markets mean a need for adjusted marketing strategies.

 Economic Force
The Economic forces relate to factors that affect consumer purchasing power and spending
patterns. For instance, a company should never start exporting to a country before having
examined how much people will be able to spend. Important criteria are: GDP, GDP real
growth rate, GNI, Import Duty rate and sales tax/ VAT, Unemployment, Inflation,
Disposable personal income, and Spending patterns.

 Political Force
Every business is limited by the political environment. This involves laws, government
agencies and pressure groups. These impact and restrict organizations and individuals in a
society. Therefore, marketing decisions are strongly impacted and affected by developments
in the political environment.
Before entering a new market in a foreign country, the company should have a deep
understanding of the legal and political environment. What will the legislation mean for the
business? What rules does it have to comply? What laws may limit the company's ability to
be successful? For example, laws cover in protection, product safety regulations,
competition, pricing etc. might issues such as environmental t require the firm to adapt
certain aspects and strategies to the new market.
As we have seen, the company is surrounded by a complex environment. The Macro
Environment consists of a huge variety of different forces. All of these may shape
opportunities for the company, but could also pose threats. Therefore, it is of critical
importance that marketers understand and have an eye on development in the Macro
Environment, to make their business grow in the long term.

 Ecological Force

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 Ecological, or natural forces in the Macro Environment are important since they are about the
natural resources which are needed as inputs by marketers or which are affected by their
marketing activities. Also, environmental concerns have grown strongly in recent years,
which makes the ecological force a crucial factor to consider. For instance, world, air and
water pollution are headlines every marketer should be aware of. In other words, you should
keep track of the trends in the ecological environment.
Important trends in the ecological environment are the growing shortage of raw materials and
the care for renewable resources. In addition, increased pollution, but also increased
intervention of government in natural resource management is an issue.
Because of all these concerns and the increased involvement of society in ecological issues,
companies more than ever before need to consider and implement environmental
sustainability. This means that they should contribute to supporting the environment, for
instance by using renewable energy sources. Thereby, businesses do not only support the
maintenance of a green planet, but also respond to consumer demands for environmentally
friendly and responsible products.

 Socio-Culture Force
The Socio-Cultural forces link to factors that affect society’s basic values, preferences and
behaviour. The basis for these factors is formed by the fact that people are part of a society
and cultural group that shape their beliefs and values. Many cultural blunders occur due to
the failure of businesses in understanding foreign cultures. For instance, symbols may carry a
negative meaning in another culture. To understand these forces, Hofstede’s cultural
dimensions can be used: Power Distance, Individualism versus Collectivism, Masculinity
versus Femininity, Uncertainty Avoidance etc.

 Technological Force
Technological forces form a crucial influence in the Macro Environment. They relate to
factors that create new technologies and thereby create new product and market
opportunities.
A technological force everybody can think of nowadays is the development of wireless
communication techniques, smartphones, tablets and so further. This may mean the emerge
of opportunities for a business, but watch out: every new technology replaces an older one.
Thus, marketers must watch the technological environment closely and adapt in order to keep
up.

8. Customer Value and Customer perceived value

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 Customer Value is the perception of what a product or service is worth to a Customer versus the
possible alternatives. Worth means whether the Customer feels s/he or he got benefits and services
over what s/he paid.
Value in marketing, also known as customer-perceived value, is the difference between a
prospective customer's evaluation of the benefits and costs of one product when compared with
others. Value may also be expressed as a straightforward relationship between perceived benefits and
perceived costs: Value = Benefits - Cost.
The basic underlying concept of value in marketing is human needs. The basic human needs may
include food, shelter, belonging, love, and self-expression. Both culture and individual personality
shape human needs in what is known as wants. When wants are backed by buying power, they
become demands.
 Functional Value: This type of value is what an offer does, it's the solution an offer provides
to the customer.
 Monetary Value: This is where the function of the price paid is relative to an offerings
perceived worth. This value invites a trade-off between other values and monetary costs.
 Social Value: The extent to which owning a product or engaging in a service allows the
consumer to connect with others.
 Psychological Value: The extent to which a product allows consumers to express themselves
or feel better.
9. Customer Relationship
The ways in which your company communicates and deals with existing customers. When it comes
in increasing profits, it's tempting to concentrate on making new sales or pursuing bigger accounts.

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 Align system
with goal and
strategy

Re-evalution and
Consolidate
recalibrate CRM
customer date
strategy

Personalise
Segment
customer
Customers
intractions

10. Consumer Behaviour

Consumer behaviour is the study of how people are making purchase decisions to satisfy their needs,
wants or desires, and how their emotional, mental, and behavioural responses influence the buying
decision. To analyse consumer behaviour, people are using concepts and ideas from various fields
such as psychology, economics, biology, and chemistry.
There are four main types of consumer behaviour:
 Complex buying behaviour. This type of behaviour is encountered when consumers are
buying an expensive, infrequently bought product.
 Dissonance-reducing buying behaviour.
 Habitual buying behaviour.
 Variety seeking behaviour.

Example of consumer behaviour

Let's take planning a city break for two as an example of consumer behaviour. For someone that just
starting dating, it might be extensive decision-making, but for a couple that spent 5+ years together,
it could be limited decision-making. Another example of consumer behaviour can be observed when
making a reservation at a restaurant. For a friends' night out, it requires a limited time investment,
while making a reservation for an anniversary or a proposal is a more complex decision making.
Factors for Consumer Behaviour

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  Social Factors: Most of the time, consumer behaviour is influenced most by the social
environment of the customer. The family of a person can directly affect the buying
behaviour.
 Cultural Factors: Larger culture can also influence the consumer behaviour. Religion,
community etc. play an important role.
 Psychology: Individual psychology is one of the most important factor in affecting one’s
consumer behaviour. Attributes like beliefs, attitudes (VALS), personality, experiences etc.
are quite critical in deciding how a consumer would buy and interact with a product or a
brand. Customer perception is defined by psychology of an individual.
 Economic: Economic factors are also quite important in consumer behaviour. These days’
socio-economic status is also considered.

various factors influencing consumer behaviour.

Society

Family Culture

Consumer Behaviour

Economic Personality

Attitude Psychology

11. Elements of Consumer Decision Making Process

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Consumer decision making process involves the consumers to identify their needs, gather
information, evaluate alternatives and then make their buying decision. The consumer decision
making behaviour is a complex procedure and involves everything starting from problem recognition
to post-purchase activities.

5 steps of the consumer decision making process

Problem recognition

Information search

Alternatives evaluation

Purchase decision

Post-purchase evaluation

 Problem recognition: Recognizes the need for a service or product

 Information search: Gathers information
 Alternatives evaluation: Weighs choices against comparable alternatives
 Purchase decision: Makes actual purchase
 Post-purchase evaluation: Reflects on the purchase they made

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12. Business Market and Consumer Market
Business markets refer to organizations, businesses or entities that acquire products and services for
use in the production of other services and products. On the other hand, consumer markets refer to
markets whereby businesses or producers sell their products or services directly to the final
consumers.

Difference between Business Market and Consumer Market

Characteristics Business Market Consumer Market

Refers to markets whereby

Refers to organisation, business or
business or producers sell
entities that acquire products and
Definition their product or service
service for use in the production of
directly to the final
other service and products.
consumer.
Have elastic demand.
Demand Have inelastic demand.

Have many buyers who

Have fewer buyers who often buy in purchase in small quantities.
Number of Buyers
large quantities.

Have formalized buying process Does not have formalized

whereby the purchasing process involve buying process.
Buying Process
followings the organization’s protocol
and the complete chain of command.
Decision making fast since
The decision making before purchases impulse buying is rampant.
Decision Making
are made is slow.

Invest heavily in marketing

and promotional activity.
Investments Invest heavily in capital equipment.

Segment there business

Segment their business based on the based on demographic
Market Segment industry, ownership, level of technology behaviouristic,
and market reached. psychographic and
geographic characteristics.

13. Customer and Consumer

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 A customer is an individual or business that purchases another company's goods or services.
Customers are important because they drive revenues; without them, businesses cannot continue to
exist.
A customer is a person or company that receives, consumes or buys a product or service and can
choose between different goods and suppliers. The main goal of all commercial enterprises is to
attract customers or clients, and make them purchase what they have on sale.

Difference between Customer and Consumer

Customer Consumer 
Definition

Customer is the one who is purchasing the goods. Consumer is the one who is the end user of any
goods or services.

Ability to resell

Customer can purchase the good and is able to resell Consumers are unable to resell any product or
service.

Need for purchase

Customers need to purchase a product or service in For a consumer purchasing a product or service is
order to use it. not essential.

Motive of buying

The motive of buying is either for resale or for The motive of buying is only for consumption
consumption

Is payment necessary

Must be paid by customer May or may not be paid by the consumer

Target group

Individual or Company Individual, family or group

Types of Customers

In business, customers play a vital role. In fact, customers are the actual boss and responsible for a
company to make a profit. A few different types of customers are:

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  Loyal Customer- They are less in numbers but increase more profit and sales as they are
completely satisfied with the product or service.
 Discount Customers- They also regular visitors but buy when they are offered discounts or
they purchase only low-cost goods.
 Impulsive Customers- These types of customers are hard to convince, as they don’t go for a
specific product, but buy whatever they feel is good and fruitful at that particular point of
time.
 Need-Based Customers- These customers buy only those products which they are in need of
or habituated with.
 Wandering Customers- These are the least valuable customers as they themselves don’t
know what to purchase.

Types of Consumers

A service or product producing firm has to recognise different types of consumers when they target
them with its product to gain profits. Some of the different types of consumers are:

 Commercial Consumer- They buy goods in large numbers whether they need the product or
not and sometimes associate special needs with their purchase orders.
 Discretionary Spending Consumers- They have unique buying habits and purchase a lot of
clothes and electronic gadgets.
 Extroverted Consumer- They prefer brands that are unique and become a loyal consumer
once they gain that trust as a customer.
 Inferior Goods Consumer- Consumer having low-income buy goods having low price.

14. Segmentation, Targeting and Positioning

Segmentation means to divide the marketplace into parts, or segments, which are definable,
accessible, actionable, and profitable and have a growth potential. Segmentation allows a seller to
closely tailor his product to the needs, desires, uses and paying ability of customers.
Targeting in marketing is a strategy that breaks a large market into smaller segments to concentrate
on a specific group of customers within that audience. ... Instead of trying to reach an entire market,
a brand uses target marketing to put their energy into connecting with a specific, defined group
within that market.

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Positioning defines where your product (item or service) stands in relation to others offering similar
products and services in the marketplace as well as the mind of the consumer. A good position gives
the product a USP (Unique selling proposition).
In marketing, segmenting, targeting and positioning (STP) is a broad framework that summarizes
and simplifies the process of market segmentation. Targeting is the process of identifying the most
attractive segments from the segmentation stage, usually the ones most profitable for the business.
How to use Segmentation, Targeting and Positioning (STP) to develop marketing strategies
Today, the STP marketing model (Segmentation, Targeting, Positioning) is a recognizable vital
methodology in modern marketing. It is quite possibly the most normally applied marketing models
by and by.
In our survey getting some information about the most well-known marketing model it is the second
generally famous, just beaten by the respected SWOT/TOWs matrix. This notoriety is moderately
later since beforehand, marketing approaches were based more around products as opposed to
clients. During the 1950s, for instance, the primary marketing technique was 'product differentiation'.
The STP model is valuable when making marketing correspondences plans since it assists
advertisers with focusing on suggestions and afterward create and convey customized and pertinent
messages to draw in with various crowds.

Market Segmentation
Identify base for segmentation
Determine importent characteristics of each market segment.

Market Targeting
Evalute potential and commercial attrectiveness of each segment
Select one or more segment

Product Positioning
Develop detailed product positioning for select segment
Develop a marketing mix for each select segment

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15. Bases of Segmentation
 The four bases of market segmentation are:
 Demographic segmentation.
 Psychographic segmentation.
 Behavioural segmentation.
 Geographic segmentation.

16. Competitive Strategies

A competitive strategy may be defined as a long-term plan of action that a company devises towards
achieving a competitive advantage over its competitors after examining the strengths and weaknesses
of the latter and comparing them to its own.

4 competitive strategies are as follows:

 Cost Leadership Strategy or Low-cost strategy.
 Differentiation strategy.
 Best-cost strategy.
 Market-niche or focus strategy.

Four Types of Competitive Strategy: Michael Porter’s Four Generic Strategies

Michael Porter has identified four types of competitive strategies that can be applied in any
business organization irrespective of the size and nature of products. Because of their
susceptibility to common use by all business enterprises, they are labelled as generic strategies.

These are, in fact, basic types of competitive strategies.

In addition to these, there are also other strategies that a company can employ when deemed
necessary, such as strategic alliance, collaborative partnerships, merger, acquisition, vertical
integration, outsourcing strategies, etc.

17. Product Life Cycle

The term product life cycle alludes to the time allotment a product is acquainted with purchasers into
the market until it's eliminated from the racks. The life pattern of a product is broken into four phases
—introduction, growth, maturity, and decline. This idea is utilized by the board and by marketing
20
professionals as a factor in choosing when it is suitable to build promoting, lessen costs, expand to
new business sectors, or update bundling. The interaction of planning approaches to consistently
uphold and keep a product is called product life cycle the board.

The Product Life Cycle Stages

Ideation
Ideation is the informal beginning to the product life cycle. It begins with an idea that is formed into
a concept. Ideation is the process that includes evaluating the goals for the new product, market fit
research, market demand, competitive analysis, usability research, potential revenue opportunity, and
potential costs. Many parts of the organization are typically included at this stage including
Marketing, Product, Engineering, Design, and the organization’s leadership.

Development
Development begins after market demand is assessed and ideation has resulted in a formalized plan
for a new product. Artefacts of the development stage include final designs, written requirements,
and acceptance criteria. Engineers, Product Managers, UX Designers, QA Analysts are typically the
main contributors at this stage. Marketers find themselves in the strategy stage as the product enters
development and they begin planning market positioning and pricing for the Introduction stage.

Introduction
Introduction starts after advancement is finished. In an Agile framework, "complete" can be relative
and introduction would start when a useful product is free for use. At this stage, the market will be
acquainted with the product interestingly. Commonly, marketers start to lead the pack in acquainting
the new product with the commercial centre dependent on the methodology they made during the
advancement stage. The introduction technique incorporates which section of the market they mean
to reach, what channels and methods of promoting will be utilized to present the new product, and
what informing will be utilized when showcasing to consumers.

Growth
Growth is the stage where customers are adopting the new product. Product adoption is continuing to
rise and profits increase. Sales teams may even be incentivized to sell the new product prospects and
existing customers. Development teams are typically continuing to make changes and enhancements
to the product throughout the growth stage. Teams are monitoring the product for the achievement of
the goals they set during ideation. The product is still receiving investment in the form of marketing
and development efforts.

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 Maturity
Maturity is reached when product adoption is no longer growing at an exponential rate and has
reached its market saturation. Teams may decide to continue to invest in the product in order to
remain competitive, or they may leave it unattended while they focus on other earlier stage product
efforts. Many times at the maturity stage, the product is receiving at least minimal development for
maintenance but marketing efforts have become minimal.

Decline
Decline is when the market no longer needs the product in the same way that it did during the earlier
stages of the product life cycle. Customers are leaving the product and sales are likely declining.
Many teams decide to stop supporting the product during the decline stage and they will abandon the
product or they may decide to remove it from the market altogether. This happens when customer
usage declines to a low percentage of the overall customer base. Some teams may reinvent the
product at this stage by adding new features, finding new market segments for the product, or
repackaging the product to allow for new marketing efforts. Whether the product is abandoned or
reinvented, letting a product reach the decline state allows the team to focus on the product life cycle
all over again.

18. Product Mix

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Product mix, also called product assortment or product portfolio, alludes to the total arrangement of
products as well as administrations offered by a firm. A product mix comprises of product lines,
which are related things that customers will in general utilize together or consider as comparative
products or services.
The product mix is the assortment of products an organization delivers or offers to the commercial
centre. A product line regularly advances, as makers need to exploit a brand's worth and the
achievement of different products in the mix. Retailers convey a mixture of products to fulfil
different clients. The product mix incorporates four basic components: Length, expansiveness,
profundity and consistency.
The elements of Product Mix
 Length
 Breadth
 Depth
 Consistency

Length

The length element of the product mix alludes to the quantity of products in a given product line.
You could likewise portray it as the quantity of stock staying with units or SKU's a conveys in a
product line. For example, the length of a staple retailer's soda product line is the quantity of
particular brands it conveys. A more drawn out product line implies shoppers have more choices and
admittance to more noteworthy grouping.

Breadth

Breadth of the product mix refers to the number of product lines that a company offer or the variety a
company offers. Offering a wider array of product lines is common for discount and department that
sell products in a number of different product categories. Manufacturers develop breadth to diversify
risks of a given product becoming obsolete. Retailers with wide variety often attempt to market
themselves in a virtual one-stop shop.

Depth

Depth is closely related to length in the product mix in the sense that it offers the consumer options
when selecting a given product. Depth refers to the different ways that you can buy a particular
product in a product line. For instance, you can buy soft drink in a 2-Liter bottle, a six or 12-pack of

23
cans, a 20-ounce bottle or other sizes. You can buy dish soap in liquid, powder or gel form. These
options further enhance your flexibility as a buyer.

Consistency

The consistency element of the product mix refers to the connection between products within the
product line and the way they reach the consumer. For manufacturers, consistency refers to how
firmly related production processes are for various products. The more reliable production is, the
more proficient and practical. For retailers, consistency in a product mix makes it easier to perform
intriguing selling and suggest close products. Distinct products in the mix typically translate to a
unique selling process for that product.

Dimension of Product Mix

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 Company

Product Line 1 Product Line 2 Product Line 3

Product 1 Product 1 Product Sub Product Sub

line 1 Line 2

Product 2 Product 2
Product 1 Product 1

Product 3
Product 2 Product 2

Product 3

19. Product Classification

Goods or products are classified as either consumer goods or industrial goods. ... There are many
goods, such as typewriters and stationery can be classified as both industrial and consumer goods.
Marketers have traditionally classified products on the basis of three characteristics – durability,
tangibility and use.
Product classification or product taxonomy is a type of economic taxonomy which organizes
products for a variety of purposes. However, not only products can be referred to in a standardized
way but also sales practices in form of the “Incoterms” and industries can be classified into
categories.

Classification of Product
We can classify product as follow:

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 Product

Consumer Industrial
Product Product

Convenience Material and

products Parts

Shopping
Capital Item
Product

Speciality
Supplies
Product

Unsought
Service
Product

I. Consumer Product
Consumer products are those products that are bought by the final customer for consumption.

Consumer products are of four types:

 Convenience Products:
Convenience Products are usually low priced, easily available products that customer buys
frequently, without any planning or search effort and with minimum comparison and buying effort.
Such products are made available to the customers through widespread distribution channels-through
every retail outlet. This category includes fast moving consumer goods (FMCG) like soap,
toothpaste, detergents, food items like rice, wheat flour, salt, sugar, milk and so on.

 Shopping Products:
Shopping products are high priced (compared to the convenience product), less frequently purchased
consumer products and services. While buying such products or services, consumer spends much
time and effort in gathering information about the product and purchases the product after a careful
consideration of price, quality, features, style and suitability.
26
 Such products are distributed through few selected distribution outlets. Examples include television,
air conditioners, cars, furniture, hotel and airline services, tourism services.
 Speciality Products:
Speciality Products are high priced branded product and services with unique features and the
customers are convinced that this product is superior to all other competing brands with regard to its
features, quality and hence are willing to pay a high price for the product. These goods are not
purchased frequently may be once or twice in lifetime and are distributed through one or few
exclusive distribution outlets. The buyers do not compare speciality products.

 Unsought Products:
Unsought product is consumer products that the consumer either does not know about or knows
about but does not normally think of buying. In such a situation the marketer undertakes aggressive
advertising, personal selling and other marketing effort. The product remains unsought until the
consumer becomes aware of them through advertising. The price of such product varies. Examples
of unsought product are cemetery plots, blood donation to Red Cross, umbilical cord stem cell
banking services.

II. Industrial Product

Industrial Products are purchased by business firms for further processing or for use in
conducting a business. The distinction between consumer product and industrial is based on
the purpose for which the product is bought. Like a kitchen chimney purchased by a
consumer is a consumer product but a kitchen chimney purchased by a hotel is an industrial
product.

 Material and parts

Material and parts include raw material like agricultural products, crude petroleum, iron ore,
manufactured materials include iron, yarn, cement, wires and component parts include small motors,
tires, and castings.

 Capital items
Capital items help in production or operation and include installations like factories, offices, fixed
equipment’s like generators, computer systems, elevators and accessory equipment’s like tools office
equipment’s.

 Supplies

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 Supplies include lubricants, coal, paper, pencils and repair maintenance like paint, nails brooms.

 Services
Services include maintenance and repair services like computer repair services, legal services,
consultancy services, and advertising services.
20. Product Line and Decisions
Product Line Decisions means a company offers similar products to solve a whole range of similar
problems that target customers have. This is where the concept of product line comes in.
Product decisions revolve around decisions regarding the physical product (size, style, specification,
etc.) and product line management. Product decisions are based on how much the organisation has to
adjust the product on the standardisation - adaptation continuum to differing market conditions.

A product line is a group of products that are closely related because they function similarly, are sold
to the same customer groups, are marketed through the same types of outlets, or fall within given
price ranges.

For example;

 Toyota produces several lines of cars.

 Colgate Palmolive produces several lines of toiletries.
 Apple or Samsung provides smartphone and related hardware that smartphone users need.
 Microsoft, Google, Apple provides the operating system, the hardware to run the OS, software, and
apps to make use of the operating system and hardware.
 Coca-Cola and Pepsi provide a whole range of soft drinks to just water.
 Just look at any furniture company; they just don’t sell a dining table or chair. They try to provide all
your furniture needs.
 Philips doesn’t just make lightbulbs; they provide a range of home appliances that you can think of,
from toaster to micro-over, hairdryer to shaver. Just name any electronics appliances you use in your
home, and chances are Philips has you covered.
 If you visit iEduNote.com, you can find notes and articles not just on marketing but also other
subjects like management, accounting, organization, leadership, and much more.

So, groups of products that are used together, sold to the same customer group, fall within given
price ranges, or marketed through the same channels are known as product lines.

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 These groupings are typically made based on product use, but can also be made based on the
manufacturing method, size, or some other direction.\
So the product line means a group of products that are related because;
 they perform similar functions,
 they perform complementary functions,
 they are marketed and sold to the same customer groups,
 they fall in the same price range.

Product Line Decision

Product Line Product Line Product Line

Expansion Reposition Contraction

Wide Product Modification

Harvest

Depth Product TrAding

Continuation

Dual
Concentration

21. Packaging, Labelling and Warranties

o Packaging
A common use of packaging is marketing. The packaging and labels can be used by marketers to
encourage potential buyers to purchase the product. Packaging is also used for convenience and

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information transmission. Packages and labels communicate how to use, transport, recycle, or
dispose of the package or product.

 Types of Packaging
Primary Packaging
Secondary Packaging
Tertiary Packaging

Primary Packaging
Primary packaging is the packaging in direct contact with the actual product and is some of the time
alluded to as a purchaser unit. The principle reason for primary packaging is to contain, ensure as
well as safeguard the finished product, particularly against contamination. This is the main layer
containing the finished product, for example, a plastic pocket holding entire grain cereal or the
cardboard box containing the pocket of oat. This sort of packaging is frequently planned for the end
client or purchaser. As well as making it simpler for consumers to deal with products, it makes the
products look really engaging and can be utilized for correspondence purposes to pass on printed
data about the products to consumers.

Secondary Packaging
This type of packaging is used outside of primary packaging to group a specific number of products
to make a stock-keeping unit, normally alluded to as a SKU. It works with the treatment of more
modest products by examining them into a solitary pack. This type of packaging additionally gives
supplementary security to help keep up the trustworthiness of the primary packaging. Moreover, it
can fill in as a steel trailer for little shipments, making it exceptionally valuable in internet business.
Secondary packaging is frequently made up of multiple components (box, padding, separators,
reinforcements, bags, paper, etc.). It might likewise be customized to make a product effectively
recognizable in the stockroom setting. On account of cereal, for instance, the secondary packaging
would be the layered cardboard box containing multiple individual boxes of cereal.

Tertiary Packaging
Often also referred to as bulk or transit packaging, this type of packaging is used to group larger
quantities of SKUs to transport them from point A to point B (e.g. from production facility to point
of sale). During this stage, products are handled as distribution units. This type of packaging makes
it easier to transport large and/or heavy loads safely and securely. In addition to helping prevent
damage, it consequently facilitates the handling, storage and transport of goods. An example of

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tertiary packaging is a stretch-wrapped pallet containing a quantity of cardboard boxes (secondary
packaging) to enable efficient product shipping.

o Labelling
Labelling is used for packaging the product. In marketing, a marketer can also use a sticker inedible
products to impart knowledge of the ingredients of the food items. This helps to spread awareness
among the customers about the item they are consuming and labelling also helps to mention
ingredients.

 Types of Labelling

Brand label:
A brand label is a brand alone applied to the product or to the package. The example of the brand
label are some clothes “Vimal and Raymond” or soaps carry the brand “OK”, Lux. MAUR, JUNELI,
etc.

Grade label:
A grade label identifies the quality of a product by a letter, number or words. For instance, grapes
may be labelled as A, B, or C and corn and wheat may be labelled as number 1 and number 2. Some
stores grade their products as good, better and best.

Descriptive label:
The descriptive label means placing on the label details such as component part of the products,
chemical analysis, weight, size use of artificial colour, the percentage of wool, thread count, age, use
of product, directions for its use etc. It can also be used on products impossible or difficult to grades,
such as clothing, furniture, and mechanical goods. It gives instructions for washing, use, and care.

Informative label:
The informative label is a term which is used for labels. It carries a large amount of information. It is
distinguished from descriptive labelling in the sense that it contains fuller instruction on the use and
care of the product. Such labels may contain recipes, instructions for clearing and other information
of similar nature.

 Functions of Labelling

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The following are the functions of labelling:

Identifies the product:

Labelling identifies the product or brand easily. It prevents substitution of competitive product. For
example, Wai -Wai noodles or Horlicks are identified by label even by uneducated people.

Grading:
Labelling is helpful in grading the product according to quality and features. A package of fruits and
vegetables can be the example of grading.

Description:
Labelling helps to describe the product, its size, quality, quantity, and method of use. For example, a
label used in medicine.

Product promotion:
Labelling plays the significant role in the promotion of the product. The graphic designs of the label
attract the customers to buy the product. For example, information about free or extra product
published on a label like a free brush for the purchase of Close up, free Dabur honey for the purchase
of Dabur Chyawanprash.

Protect the consumer:

labelling protects the consumer from adulteration. For example, information about ingredients and
date of manufacture and expiry published in a label like food items, medicine, cosmetics, etc.

Makes product attractive:

Labelling helps in promotion of the product through attractive designing. The product looks very
attractive when it is labelled. It is the source of attraction to the consumers too.

 Important functions of labelling

There is various function of labelling. Instead of them some of the important function of labelling are
as follow:

Describe the Product and Specify its Contents:

A label helps to provide complete information regarding the product. It mainly includes ingredients
of the product, its usage, and caution in use, cares to be taken while using it, date of manufacturing,
batch number, etc.
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Identification of the Product or Brand:
Labelling helps to identify particular product among many. It makes easier to find out the product.
For example, you as a consumer want to select CINTHOL SOAP. The task of finding the desired
soap from a heap of various branded soaps becomes easier with the help of labelling.

Grading of Product:
Labelling helps in the grading of the product too. When a product has different qualities, labelling
helps to find out which pack contains what type of quality. For example, Hindustan Unilever Ltd.
manufactures three types of tea and to differentiate each type of tea, the company uses Green, Red,
and Yellow coloured labels.

Help in Promotion of Products:

Labelling helps in the promotion of the products too. The fourth function of labelling is to promote
sales. Sometimes a consumer gets encouraged to buy a product simply due to an attractive label.
Nowadays, labelling is used as effective sales promoting tool.

Providing information required by Law:

labelling helps to provide statutory warning required by law. To put ‘smoking is injurious to health’
on the package of cigarette and ‘Chewing Tobacco is Injurious to Health’ on the package of Pan
Masala are the examples of statutory warning. Similarly, in a case of hazardous or poisonous
products, appropriate statutory warning need to be put on the label. It provides important information
of the product applied in the law.

o Warranties
A warranty is a type of guarantee that a manufacturer or similar party makes regarding the condition
of its product. It also refers to the terms and situations in which repairs or exchanges will be made if
the product does not function as originally described or intended.

Types of Warranty
Implied Warranty
An implied warranty is a presumed assurance in product sales. The assurance is treated as a
warranty whether or not the product dealer has given assurances of the same either in writing or
even orally. Under implied warranty there are several other warranty types including the
following:
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 Warranty of Merchantability
This type of warranty is implied unless the phrase ‘with all faults’ or ‘as is’ has been used in
the identification of the sale. The warranty is also implied unless a disclaimer by its name has
been issued in an express manner. For goods to be considered ‘merchantable’ they must
conform in a reasonable manner to the expectations of an ordinary consumer.

 Warranty of Fitness for A Particular Purpose

This type of warranty is implied when the buyer is relied upon by the buyer to select products
or goods that will fit a particular request. For instance, if a motorist requests a mechanic for
tyres that are safe for use in snowy conditions and the mechanic provides tyres that are unsafe
for use in such conditions then this warranty will have been breached.

 Warranty of Title
This type of implied warranty is used to imply that a person selling products has the right to
do so, that is, the goods are legitimate. This saves the customer from ‘double payment’ if by
any chance the products are confiscated (in the event that the goods are illegitimate), if the
seller can easily be found then he/she can make restitution.

 Warranty of Habitability
This warranty is used to imply that by purchasing a property that is residential, the seller of
the property is guaranteeing that it is suitable and safe to be occupied. If water, electricity and
other amenities are unavailable on the property then the warranty is considered to have been
violated and hence a legal remedy can be sort.

Extended Warranty
Also called service agreement, an extended warranty is usually offered to customers on top of
the standard warranty that is issued on new products (vehicles). It is also known as Vehicle
Service Contract. It can be offered by a retailer, manufacturer or warranty administrator.
This type of warranty is prolonged in nature and is a bit costlier. From time to time, multiple
years extended warranties have it in in writing that for the duration of the first year of the
warranty, in the event that a product is defective, customers must deal with the producer and
not the seller.

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 Terms and conditions in extended warranties may sometimes not match the terms that were
set originally. Some of the exclusions include; malicious destruction, owner abuse and acts of
God. Parts that wear after some time like car tyres may also be excluded.
Extended warranty has several benefits some of which are explained by taking cars as
examples:

 Guaranteed Ability to Repair

As with most machines, all cars need repair and maintenance from time to time in order to
remain in peak condition. It is because of this reason that an extended car warranty is
essential for all car owners. Extended car warranty basically ensures that your car is repaired
and maintained regardless of the financial situation you are in at the time.

 More Comprehensive Coverage

Most cars when bought come with a new or used car warranty. Although useful, this
warranty is limited in terms of what it covers meaning that you will shoulder the repair and
maintenance costs or if they are covered when they are partially covered. Getting an extended
car warranty will offer more comprehensive coverage for the unforeseen eventuality and
therefore save you the stress of having to start sourcing for funds.

 Peace of Mind
This is a fundamental reason why most car owners choose to get an extended car warranty.
Generally, the hope is that the coverage will not be needed but unexpected events occur and
that is when one is justified in getting a cover in the first place. For cars, owners do not
anticipate repairs, new transmission systems or even engine overhauls but more often than
not this need usually arises and it involves lots of cash. With an extended car warranty, you
will not have to worry about anything as everything is already covered.

 Savings
An extended car warranty can be likened to a savings plan where potential repairs and
maintenance are financed at below the normal cost. Also, depending on the warranty cover
chosen, you might not spend even a single cent on the repairs since all the costs will already
be covered. Essentially, the monthly premium becomes the cost of the repairs which is highly
reasonable compared to what the charge would be without the cover.

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 Increased Resale Value
If your car has a warranty, then its resale value increases. When selling your car, you have to
offer the buyer some good selling points for him/her to seriously consider buying your car.
One of the best ways of doing this is by offering the buyer an extended warranty. This will go
a long way in assuring the buyer that the car was very well maintained because most of the
car issues were well taken care of.

With the current unpredictability of the economy, having a warranty is a great way of
safeguarding against unexpected occurrences. It guarantees safety and bails you out when
you are not in the financial position to incur unwarranted expenditure.

22. New Product Development meaning along with stages

Product development typically refers to all of the stages involved in bringing a product from concept
or idea through market release and beyond. In other words, product development incorporates a
product's entire journey. ... Identifying a market need—Products solve problems.
In business and engineering, new product development covers the complete process of bringing a
new product to market, renewing an existing product or introducing a product in a new market. A
central aspect of NPD is product design, along with various business considerations.

Stages of Product Development

Five phases guide the new product development process for small businesses: idea generation,
screening, concept development, product development and, finally, commercialization.
 Phase One: Idea Generation. ...
 Phase Two: Screening.
 Phase Three: Concept Development.
 Phase Four: Product Development.
 Phase Five: Commercialization and Rollout

23. Brand Equity

Brand equity refers to a value premium that a company generates from a product with a recognizable
name when compared to a generic equivalent. Companies can create brand equity for their products
by making them memorable, easily recognizable, and superior in quality and reliability.

24. Branding and Co-branding

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 Branding
Branding is the marketing practice of actively shaping your brand. ... Branding is what your business
needs to break through the clutter and grab your ideal customer's attention. It's what transforms first-
time buyers into lifetime customers and turns an indifferent audience into brand evangelists.

Co-branding
Co-branding is a marketing strategy that utilizes multiple brand names on a good or service as part of
a strategic alliance. Also known as a brand partnership, co-branding (or "cobranding") encompasses
several different types of branding collaborations, typically involving the brands of at least two
companies.
The forms of co-branding include:
 Ingredient co-branding
 Same-company co-branding
 National to local co-branding
 Joint venture co-branding
 Multiple sponsor co-branding

25. Brand Extensions

A brand extension is the point at which a company uses one of its established brand names on a new
product or new product category. It's sometimes known as brand stretching. The strategy behind a
brand extension is to use the company's already established brand value to help it launch its newest
product. The company relies on the brand loyalty of its present customers, which it hopes will make
them more open to new offerings from the same brand. If successful, a brand extension can help a
company reach new demographics, expand its customer base, increase sales, and boost overall profit
margins.
Types of Brand Extension
 Companion Product Extension.
 Product Form Extension.
 Company Expertise Extension.
 Customer Franchise Extension.
 Brand Distinction Extension.
 Brand Prestige Extension.
 Extension by Transfer of Component.
 Extension by Leveraging a Lifestyle.

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26. Definition of Service
By definition, “a service is a means of delivering value to customers by facilitating outcomes
customers want to achieve without the ownership of specific costs and risks.”

The American Marketing Association, defines services as activities, benefits, or satisfactions that are
offered for sale or provided with sale of goods to the customer, that is, pre-sale and after-sales
services.

27. Service Characteristics

The most important characteristics of services are:
 Lack of ownership.
 Intangibility.
 Inseparability.
 Variability.
 Perishability.
 User participation.

28. Price adaptation and strategies

Price adaptation is the ability of a business to change its pricing models to suit different geographic
areas, consumer demands and prevailing incomes.
Goals of Price Adaptation
Price adaptations are made to pursue a number of goals;
 Change of purchase patterns;
 Market segmentation;
 Market expansion;
 Utilization of excess capacity;
 Implementation of channel strategy; and,
 To meet the competition.
Different price-adaptation strategies are following
 Geographical pricing;
 Price discounts, allowances, and promotional pricing;
 Discriminatory pricing; and
 Product-mix pricing.

29. Marketing Channels

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 marketing channel consists of the people, organizations, and activities necessary to transfer the
ownership of goods from the point of production to the point of consumption. It is the way products
get to the end-user, the consumer; and is also known as a distribution channel.

 Producer → Customer (Zero-level Channel)

 Producer → Retailer → Consumer (One-level Channel)
 Producer → Wholesaler → Retailer → Customer (Two-level Channel)
 Producer → Agent/Broker → Wholesaler or Retailer → Customer (Three-level Channel)

There are basically four types of marketing channels:

 Direct selling
 Selling through intermediaries
 Dual distribution
 Reverse channels.

30. IMC
Integrated Marketing Communications (IMC) is a strategic, collaborative, and promotional
marketing function where a targeted audience receives consistent and persuasive brand messaging
through various marketing channels in an integrated way to move buyers through the decision
making process.
Integrated Marketing Communications is a simple concept. ... At its most basic level, Integrated
Marketing Communications, or IMC, as we'll call it, means integrating all the promotional tools, so
that they work together in harmony. Promotion is one of the Ps in the marketing mix.
8 Key Components of Integrated Marketing
 Print Marketing.
 Banner Ads.
 Landing Pages.
 Email Marketing.
 Social Media.
 Organic Search Engine Marketing.
 Paid Search Engine Marketing.
 Direct Mail Marketing. Last but certainly not least, direct marketing is important and still
brings big results.

Five Steps of IMC

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 Identify your customers from behavioural data
Let’s start with this assumption: For education institutions, the customer is the student.
Behavioural data: Tells us what customers do, how they act, and their history in relation to
our offering.
Demographic data: Tells us a customer’s age, location, gender, income, and so on.
IMC is based on what people do. The key takeaway is that behavioural data is going to yield
better results over demographic data, every single time. Aggregate your customers according
to their behaviours first. After that, enhance it with other types of segmentation.
 Determine the financial value of your customers and prospects
Marketing is traditionally considered an organizational expense. However, an IMC mind-set
requires us to look at marketing as an investment, a strategic tool that influences incoming
dollars. To know what we can spend to attract new students, we must know the financial
value of our current students and prospects. This value becomes the basis for marketing
investment because customers drive revenue. Use this value to set goals and determine what
marketing actions to take.
 Create and deliver messages and incentives
We can now set marketing goals that tie back to our institution’s financial goals, and then
create and deliver meaningful marketing communications to prospects and customers. Tie
marketing objectives to financial outcomes using these two components:
Delivery: Where do customers come into contact with your brand? Where do they want to
come into contact with your brand?
Content: What customer insights can you use to connect what your brand wants to deliver
with what your customer wants to acquire?
While a traditional marketing approach would require you to determine your creative content
first and then select the channel, IMC flips this process around by asking first for an
understanding of where your customers are. With that knowledge, you can meet them there
with content and messaging that is grounded in customer insights.
 Estimate the return on customer investment (ROCI)
Step four focuses on determining ROCI as a result of your marketing and communications.
This is the goal of IMC.
Wouldn’t you rather invest in marketing efforts that will yield the most loyal and profitable
customers? Prove to senior leaders that you can turn a $100 investment into $1,000 in
customer revenue and you’ll never need to fight for budget again.
 Budget, allocate, evaluate, and recycle

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 A true IMC approach requires that you budget at the end, which is the opposite of how most
college and university budgeting processes unfold.
Think like an investor and know important financial numbers: customer acquisition cost,
retention rate, and the difference between your short-term and long-term returns.

31. 5 M’s
The five elements need to be considered as assets which the organisation has committed to its current
marketing strategy and they include
 Manpower (Staffing)
 Materials (Production)
 Machinery (Equipment)
 Minutes (Time)
 Money (Finances)

Manpower
The heart of Kaizen is respect for people. It is the responsibility of managers to engage
employees in continuous improvement. They must constantly seek feedback and create
opportunities for thoughtful changes to process standards. As Trichy Ohno, the father of the
Toyota Production System, said, “Standards should not be forced down from above but rather
set by the production workers themselves.”
It is also essential that managers recognize and reward those who are contributing to positive
change. In fact, improvement should be a key component of employee goals and performance
management.
Machines (Equipment, Technology)
The need for managers to understand the operation of each piece of equipment and tool in a
manufacturing plant is obvious, but technology plays an important role in other sectors as
well. In a hospital, for example, “machines” might include medical equipment and electronic
health records and other software applications. Whether it’s a physical machine or a software
application, managers must ensure that it works as expected and that use of the technology is
achieving the desired goal.
Another element of technology in the practice of Kaizen is software designed to support
continuous improvement. Kaizen software solutions create a platform for employees to

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 suggest opportunities for improvement and managers to guide the selected changes through
the process of finding and implementing solutions.
Materials
The flow of materials is an important element of Kaizen. In an effort to eliminate excess
inventory, a just-in-time model is adopted to chart how materials should flow in a process.
Only necessary materials are in the work area. This applies to information work as well as a
factory line. For example, new code should not be passed along to a QA department that does
not have the current capacity to test it. In healthcare, rarely needed supplies should not be
stocked in patient care areas.
Methods
Helping processes operators develop standard methods is the foundation upon which Kaizen
happens. In the words of Ohno, “Without standards, there can be no improvement.”
Once the best practice for a process is developed and implemented, managers can coach
employees on doing their work correctly. Standard work documentation should be made
available in the place where work is done and include any useful charts, images, or other
assets.
Measurements
In order to know if a process is running smoothly, managers need a set of performance
indicators to measure. Not only will they help identify process breakdowns, but they also
form the baseline from which improvement can be measured. The most effective
measurement tools are visual. People can instantly see when there is an interruption in flow, a
definition from typical results, or a task that has not been completed on schedule.

32. Sales Promotions and Tools

Sales promotion is a marketing strategy where the product is promoted using short-term attractive
initiatives to stimulate its demand and increase its sales. This strategy is usually brought to use in the
following cases – To introduce new products, to sell out existing inventories, to attract more
customers
Tools of Sales Promotions
 Advertising,
 Public Relation
 Promotions
 Direct marketing
 Personal selling

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33. Public Relation
Marketing promotes the transfer of goods and services from the producer and provider to the
consumer. Public relations help an organization and its publics adapt mutually to each other. Public
relations' immediate goal is mutual understanding or positioning of the organization with its publics.

34. Direct Marketing

Direct marketing consists of any marketing that relies on direct communication or distribution to
individual consumers, rather than through a third party such as mass media. Mail, email, social
media, and texting campaigns are among the delivery systems used.
Types of direct marketing
 Direct mail
 Telemarketing
 Email marketing
 Text (SMS) marketing
 Leaflet marketing using letterbox drops and handouts
 Social media marketing
 Direct selling

35. Word of Mouth

Word-of-mouth marketing (WOM marketing) is when a consumer's interest in a company's product
or service is reflected in their daily dialogues. Essentially, is it being free advertising triggered by
customer experiences—and usually, something that goes beyond what they expected.

36. Opinion Leader

The process by which one person (the opinion leader) informally influence the consumption action
or attitude of others who may be opinion seeker or opinion recipient.

Types of Opinion Leader

 Mono-Morphic opinion leader
This applies when influence of opinion leader is limited to only one specific topic, this is
typical leadership style of modern societies characterised by specialization.
 Poly-Morphic opinion leader
This applies when influence cover different topics, this is more conventional leadership style.

Characteristics of Opinion Leader

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  Credible source of information
 Provision of both positive and negative product information
 Source of information and advice
 Opinion leader have approximately the same social class position
 Opinion leader possess high level of involvement and interest
 Opinion leader are influential and persuasive

37. Interactive Marketing

Interactive marketing is one to one marketing process that react and changes based on the actions of
individual customers and prospects. This ability to react to the actions of customers and prospects
means that trigger based marketing is dramatically more effective than normal direct marketing.

38. Personal Selling and Process

Personal selling is also known as face to face selling in which one person who is salesman tries to
convince the customer in buying the product. It is a promotional method by which the sales person
uses his or her skills and ability to attempt to make a sale.

The 7-step sales process

 Prospecting.
 Preparation.
 Approach.
 Presentation.
 Handling objections.
 Closing.
 Follow-up.

39. Backward, Forward and Horizontal Integration

Backward Integration
Backward integration is a form of vertical integration in which the company expand its role to full
fill task formally completed by business up the supply chain.
Forward Integration

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 Forward integration is a business strategy that involve a form of downstream vertical integration
whereby the company owns and controls business activities that are ahead in the value chain of its
industry, this might include among other direct distribution or supply of the company’s product.
Horizontal Integration
Horizontal Integration is the process of the company increasing production of goods or service at the
same part of the supply chain. A company may do this via internal expansion, acquisition or merger.
The process can lead to monopoly if a company capture the vast majority of the market for the
product or service.

40. Downsizing
Downsizing is a permanent reduction of a company’s labour through the elimination of unproductive
workers or division. Downsizing is a common organizational practice, usually associate with
economic downturn and failing business.

41. Marketing Intelligence system

A marketing intelligence system is a set of procedure and source used by managers to obtain their
everyday Information about pertinent development in the marketing environment. Marketing
intelligence may be carried on by reading books, newspaper, trade journals.

Importance of Marketing Intelligence System

 Allows business managers to fast-track the decision-making process.
 Knowing what the competitors are up to and staying one step ahead of them.
 Developing knowledge and skills in connecting the customer and the product.
 Help the marketing managers, executives, and management make decisions under certainty,
uncertainty, and risk.
 Used by marketing decision-makers for the overall efficiency and efficacy of business
operations.
 Facilitating inter-functional coordination that permits an agile response to change.
 Enhance the tactical and strategic decision-making process.
 Maintain its competitive position in the industry.
 Identify opportunities in emerging market sectors and new partnership arrangements to
reduce geographic expansion.

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  Provides small business companies with information from the business environment for
decision making.

42. Marketing Matrix

A marketing matrix is essentially a plot on two-dimension plan according to how well they meet
customers key requirement.
4 p’s of Marketing Matrix
 Product
 Place
 Price Promotion

43. Sales Quota

A sales quota is a target sales reps are set for a specific period (month, quarter, year). Sales quotas
can be set in dollar figures or in the number of goods or services sold. And its why sales reps are
under a lot of pressure to hit their sales quota at the end of each month.
Types of Sales Quota
 Basic Revenue Sales Quota
 Forecast Revenue Quota
 Profit Quota
 Basic Volume-Based Sales Quota
 Differentiated Volume-Based Sales Quota
 Persona-oriented volume-based sales quota
 Sales Call/Follow-Up Quota
 Upsell-Oriented Activity Quota

44. Market Potential

Market potential is the entire size of the market for a product at a specific time. It represents the
upper limits of the market for a product. Market potential is usually measured either by sales value or
sales volume. For example, the market potential for ten speed bicycles may be worth $5,000,000 in
sales each year.

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45. Value Proposition
A value proposition is a statement that answers the 'why' someone should do business with you. It
should convince a potential customer why your service or product will be of more value to them than
similar offerings from your competition.

46. Customer Delight and Satisfaction

Customer Delight, the final stage in the inbound methodology, is defined as surprising a customer
by exceeding his/her expectations and thus creating a positive emotional reaction. ... Satisfied
customers use your product, but delighted customers are loyal and actively promote your brand
through word-of-mouth.
Customer satisfaction is defined as a measurement that determines how happy customers are with a
company's products, services, and capabilities. Customer satisfaction information, including surveys
and ratings, can help a company determine how to best improve or changes its products and services.

Customer Satisfaction Model

47. Customer Lifetime Value

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 The lifetime value of a customer, or customer lifetime value (CLV), represents the total amount of
money a customer is expected to spend in your business, or on your products, during their lifetime.

48. CRM
CRM stands for Customer Relationship Management. It's a technology used to manage interactions
with customers and potential customers. A CRM system helps organisations build customer
relationships and streamline processes so they can increase sales, improve customer service, and
increase profitability.
A CRM allows you to harness data about your customers to improve customer understanding and
create better-personalised experiences. ... CRM allows you to cull real-time information and make it
instantly available to the client, so they can make real-time decisions based on market trends.

Marketing
Sales
Support
Feedback

49. Reference Group, Membership Group, Dissociative Group, Aspirational Group

Reference Group
A reference group refers to a group to which an individual or another group is compared.
Sociologists call any group that individuals use as a standard for evaluating themselves and their
own behaviour a reference group.

Types of Reference Group

 Informational,
 Utilitarian
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  Value- expressive.

Membership Group
A social body or organization to which people belong as members, especially when they feel that the
group has formally or informally accepted them into its ranks.
Membership group – The individual is currently a member of this type of group. Among the obvious
groups in this classification are fraternities and sororities, social clubs, social networking circles or
groups. ... Aspiration group – This is a group with which the individual would like to be associated
or identified.

Aspirational Group
An aspirational group is a reference group that an individual consumer wants to join or be similar to.

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