ATH 1106

TOURISM & HOSPITALITY

MARKETING

Dr. Zandee Briones

House Rules
 Turn off your mic
 You can off your cam, once the lecture is
going on
 Self check in available Mon and Tue only
 The content of PPT is from WHILE TASK
 Use the CHAT BOX to comment on the on
going discussion
 Questions will be entertained in the last
part of the meeting
 Module 1
Marketing and It’s Environment
At the end of this module, you will be able to
1. Define marketing
2. Demonstrate a clear understanding of the marketing
concept
3. Identify the total product offering
4. Understand the interplay of factors in macro and micro
environment
5. Explain how marketing creates value for the consumer,
the company, and society
What is M A N A G E M E N T
The Meaning of Management
 MANAGEMENT

OPERATIONS FINANCE MARKETING HR RD

Areas of Management
MARKETING DEFINITION

Marketing is defined by the American

Marketing Association as “the activity, set of
institutions, and processes for creating,
communicating, delivering, and
exchanging, offerings that have value for
customers, clients, partners, and society at
large.”
 Creating.
 The process of collaborating with suppliers
and customers to create offerings that have
value.
 Marketing creates those goods and services
that the company offers at a price to its
customers or clients. That entire bundle
consisting of the tangible good, the intangible
service, and the price is the company’s
offering.
 Communicating.
 Broadly, describing those offerings, as well as
learning from customers.
 learning from customers what it is they want
and like.
 Sometimes communicating means educating
potential customers about the value of an
offering,
 and sometimes it means simply making
customers aware of where they can find a
product.
 Communicating also means that customers
get a chance to tell the company what they
think
 Delivering.
 Getting those offerings to the consumer in a way that
optimizes value.
 Delivering an offering that has value is much more
than simply getting the product into the hands of the
user;
 it is also making sure that the user understands how
to get the most out of the product and is taken care of
if he or she requires service later.
 Value is delivered in part through a company’s supply
chain.
 Logistics, or the actual transportation and storage
of materials and products, is the primary
component of supply chain management.
 Exchanging.
 Trading value for those offerings.
 However, if you were to fly from Manila to
Palawan, you could “pay” for your airline
tickets using frequent-flier miles. You could
also use Accor points to “pay” for your hotel,
and cash back points on your Discover card
to pay for meals. None of these transactions
would actually require cash
 The traditional way of viewing the
components of marketing is via the four
Ps:
 1. Product. Goods and services (creating
offerings).
 2. Promotion. Communication.
 3. Place. Getting the product to a point where
the customer can purchase it (delivering).
 4. Price. The monetary amount charged for
the product (exchange).
The Total Product Offering
The Macro and Micro-environment for businesses
To understand the interplay of factors in
the environment a number of models are
used
PESTLEDI
 PESTLEDI analysis; political, economic,
socio-cultural, technological, legal,
environmental, demographic technological
trends, and if multi-national or exporting,
the International aspects
BCG matrix
 The BCG matrix (aka B.C.G. analysis,
BCG-matrix, Boston Box, Boston Matrix,
Boston Consulting Group analysis,
portfolio diagram) is a chart that had been
created by Bruce Henderson for the
Boston Consulting Group in 1968 to help
corporations with analyzing their business
units or product lines.
 Stars - Stars are high growth businesses or
products competing in markets where they are
relatively strong compared with the competition..
 Cash Cows - Cash cows are low-growth
businesses or products with a relatively high
market share. These are mature, successful
businesses with relatively little need for
investment.
 Question marks - Question marks are
businesses or products with low market share but
which operate in higher growth markets.
 Dogs - Unsurprisingly, the term "dogs" refers to
businesses or products that have low relative
share in unattractive, low-growth markets.
Porter’s Five Forces
 This is useful, you understand the forces
in your environment or industry that can
affect your profitability, you'll be able to
adjust your strategy accordingly.
 For example, you could take fair
advantage of a strong position or improve
a weak one, and avoid taking wrong steps
in future.
Ansoff’s Matrix
The output from the Ansoff product/market
matrix is a series of suggested growth
strategies that set the direction for the
business strategy
 Market penetration - is the name given to
a growth strategy where the business
focuses on selling existing products into
existing markets.
 Market development - is the name given
to a growth strategy where the business
seeks to sell its existing products into new
markets
 Product development - is the name
given to a growth strategy where a
business aims to introduce new products
into existing markets
 Diversification - is the name given to the
growth strategy where a business markets
new products in new markets.
 Module 2
Business Buying Behavior
At the end of this module you will be able to
 1. Understand business markets and
business buying behavior
 2. Compare the different business models
 3. Explain the business buying process
BUSINESS MARKETS AND
BUYING BEHAVIOR
 The business market includes firms that
buy goods and services in order to
produce products and services to sell to
others.
 It also includes retailing and wholesaling
firms that buy goods in order to resell them
at a profit
Major Types of Buying
Situations
 Straight Re-buy - the buyer reorders
something without any modifications.
 Modified Re-buy - the buyer wants to
modify product specifications, prices,
terms, or suppliers.
 New Task Buying - A company buying a
product or service.
Market Places
1.Brick and Mortar
 The term brick-and-mortar business is
often used to refer to a company that
possesses or leases retail shops, factory
production facilities, or warehouses for its
operations.
Market Places
2.Brick and Click
 Brick-and-click is a business model in
which a company operates both an online
store (the clicks) and physical store (the
bricks), integrating the two into a single
retail strategy.
Market Places
3.Brick Click Flip
 The term brick, click and flip is used to describe
multichannel retailers, usually with sales channels
that include:
 A bricks and mortar store (or multiple stores)
 An e-commerce website selling goods online (now
also includes mobile commerce websites and
apps)
 A printed catalogue, which customers can use to
browse products before ordering either via a postal
order form, or via a telephone ordering service.
Market Places
 4. Affiliate marketing is the process of
earning a commission by promoting other
people's (or company's) products.
 You find a product you like, promote it to
others and earn a piece of the profit for each
sale that you make.
Market Places
5. Multi-level marketing (MLM)
 also called pyramid selling, network
marketing, and referral marketing
 Revenue of the MLM company is derived
from a non-salaries workforce selling the
company's products/services, while the
earnings of the participants are derived from
a pyramid-shaped or binary compensation
commission system.
Market Places
6.Pyramid scheme is a business model that
recruits members via a promise of payments or
services for enrolling others into the scheme,
rather than supplying investments or sale of
products.
 Participants in the Business
Buying Process
 • Users are members of the organization
who will use the product or service. In many
cases, users initiate the buying proposal and
help define product specifications.
 • Influencers often help define specifications
and also provide information for evaluating
alternatives. Technical personnel are
particularly important influencers.
 Participants in the Business
Buying Process
 • Buyers have formal authority to select the
supplier and arrange terms of purchase. Buyers
may help shape product specifications, but their
major role is in selecting vendors and negotiating.
In more complex purchases, buyers might include
high-level officers participating in the negotiations.
 • Deciders have formal or informal power to select
or approve the final suppliers. In routine buying,
the buyers are often the deciders, or at least the
approvers.
 Participants in the Business
Buying Process
 • Gatekeepers control the flow of
information to others.
 For example, purchasing agents often have
authority to prevent salespersons from
seeing users or deciders.
 Other gatekeepers include technical
personnel and even personal secretaries.
Business Models (E-Commerce)

 As the development of globalization,

consumerism, and trading has continued,
there has been a lot of talk about four
models for business B2C (Business to
Consumer), B2B (Business to Business),
C2C (Consumer to Consumer) and C2B
(Consumer to Business).
 The Business Buying Process
 1. Problem Recognition
A member of a company decides they need a
certain product to fix a problem.
 2. General Need Descriptions
Once the need has been recognized, the buyer
describes the need and why the company
needs to make the purchase. For standard
items like office supplies, this is easy. For more
complicated items, or more expensive items,
this is often more difficult.
 The Business Buying Process
 3. Product Specification
This step is when the buying center decides on the
product and its specifications. This step is also when
the team tries to find the best value for their purchase.
The team will rank the products by price and
specifications, to determine which product is the best
value.
 4. Supplier Search
Once the product has been decided on, the buyer
searches for a vendor. The buyer will make a list of
suppliers that can meet their needs, and then order
them by the best value. Finding suppliers is often made
easier due to the Internet.
 The Business Buying Process
 5. Proposal Solicitation
At this point in the buying process, the buyer asks
suppliers to submit proposals, or submit their best bid.
Large suppliers might just send a catalog, while smaller
suppliers might provide a detailed proposal. The
business marketer must be careful to send informative
and detailed proposals, and their behavior will influence
the buyer.
 6. Supplier Selection
Once the buying center has received all the proposals, it
is time to decide which supplier to choose. The buying
center will often make a list of the most favored suppliers,
and decide which of them provides the best value.
 The Business Buying Process
 7. Order-Routine Specification
This step involves the buyer specifying the order. It will
include the final order, which will detail the quantity,
price, specifications and terms. It will also detail
delivery times and terms.
 8. Performance Review
In this last step, the buyer reviews the supplier, and
decides whether to purchase from them again. Often
times the supplier will reach out to the buyer to gauge
customer satisfaction.
 Module 3
Market Segmentation, Targeting
and Positioning
At the end of this module you will be able to
 1. Understand business markets and
business buying behavior
 2. Compare the different business models
 3. Explain the business buying process
 You will recall that the essence of the
marketing concept is the idea of placing
customer needs at the center of the
organization’s decision-making.
At the heart of the marketing concept is a
process of STP. This starts with trying to
understand the market by segmenting it.
 Marketers we need to adopt an approach
that considers such factors as, increased
competition, better-informed and-educated
customers and, most importantly, changing
patterns of demand.
STP is used to;
 Segment; determine which kinds of customers
exist, then
 Target; select which ones we are best off
trying to serve and, finally,
 Position; implement our segmentation by
optimizing our products/services for that
segment and
 communicating that we have made the choice
to distinguish ourselves that way.
The Process of STP (Segmenting, Targeting, Positioning)
 Generically, there are three approaches to
marketing and this reflects into the STP needs of
each strategy.
 1. Undifferentiated strategy, all consumers are
treated equally and the company makes no
effort to satisfy particular groups. This usually
only works for commodities where the product
is standard and where one competitor really
can’t offer much more any other. Here there is
little to no need for segmentation.
 Generically, there are three approaches to
marketing and this reflects into the STP needs of
each strategy.
 2. Concentrated strategy, one firm chooses to
focus on one of several segments that exist
while leaving other segments to competitors.
All low cost or ‘budget’ airlines follow a
concentrated strategy. They therefore need to
understand the particular segment they are
operating in depth but not the whole market.
 Generically, there are three approaches to
marketing and this reflects into the STP needs of
each strategy.
 3. Differentiated strategy: They offer a variety
of classes and tickets, geared to convenience,
prestige, etc. in an effort to capture as much
of the disparate needs of travelers as they
can. They need to understand the whole
market and to be able to segment it on
differing customer needs.
SEGMENTATION
 Market segmentation can be defined as the
process of breaking down the total market for a
product or service into distinct sub-groups or
segments where each segment may conceivably
represent a separate target market to be reached
with a distinctive marketing mix.
 Segmentation and the subsequent strategies of
targeting and positioning start by recognizing that
increasingly, within the total demand/market for a
product, specific tastes, needs and demand may
differ.
 It breaks down the total market for a product or
service into individual clusters of customers, or
segments.
 Common kinds of variables can be used for
segmentation.
  Geographic variables refer to location and include
region of the world, continent or
country,East/West/North/South/Central/Coastal/Upland
etc., country size, area size & type; urban, rural, semi-
urban, town, village, city and importantly climate, Hot,
Cold, Humid, Arid, Rainy
  Demographic variables essentially refer to personal
statistics such as income, age, gender, education,
occupation, ethnicity, religion, nationality/race, language
and family size.
  Psychographic variables take this a step farther, to
segment on lifestyle, attitudes, personality and values.
 Common kinds of variables can be used for
segmentation.
 Another basis for segmentation is behaviour. Some consumers
are “brand loyal”, they tend to stick with their preferred brands
even when a competing one is on sale. Some consumers are
“heavy” users while others are “light” users; classic examples for
this are smoking and alcoholic drinks. Buying status, buying
role, user type are other common behavioral segmentation
variables.
  Segmentation by usage occasion is similar to behaviour but
focuses on when the product is used, e.g. Wedding dresses.
  Segmentation on benefits sought, is a special form of
behavioral segmentation essentially bypassing demographic
explanatory variables, e.g. soap powder on better whitening, or
non-run of colors.
 Effective segmentation is achieved when customers sharing
similar patterns of demand are grouped together and where
each group or segment differs in the pattern of demand from
other segments in the market. Theoretically, the base(s) used
for segmentation should lead to segments that are:
 1. Measurable/identifiable Here, the base(s) used
should preferably lead to ease of identification in
terms of who is in each segment. It should also be
capable of measurement in terms of the potential
customers in each segment.
 2. Accessible Here, the base(s) used should ideally
lead to the company being able to reach selected
market targets with their individual marketing efforts.
 Effective segmentation is achieved when customers sharing similar
patterns of demand are grouped together and where each group or
segment differs in the pattern of demand from other segments in the
market. Theoretically, the base(s) used for segmentation should lead to
segments that are:
 3. Meaningful The base(s) used must lead to
segments which have different preferences or needs
and show clear variations in market behavior and
response to individually designed marketing mixes.
 4. Substantial The base(s) used should lead to
segments which are sufficiently large to be
economically and practically worthwhile serving as
discrete market targets with a distinctive marketing
mix.
TARGETING
Targeting
 In the next step, we decide to target one or more segments. Our choice
should generally depend on several factors

 First, what is the existing level of competition

and how good at serving customer needs are
they? The greater the numbers and better
they are able to meet customer needs the
more difficult it will be for another business to
also be a success.
  Secondly, how large is the segment, and
how can we expect it to grow? (Note that a
downside to a large, rapidly growing segment
is that it tends to attract competition).
Targeting
 In the next step, we decide to target one or more segments. Our choice
should generally depend on several factors

 Thirdly, do we have strengths as a company

that will help us appeal particularly to one
group of consumers? Firms may already have
an established reputation.
 Fourthly, are we able to actual communicate
with the segment?
 While McDonald’s has a great reputation for fast, consistent quality, family friendly food,
it would be difficult to convince consumers that McDonald’s now offers gourmet food.
Thus, McDonalds would probably be better off targeting families in search of consistent
quality food in nice, clean restaurants. This is the first important lesson in targeting –
most firms cannot meet ALL market needs.
 Target marketing is thus defined as the
identification of the market segments that
are identified as being the most likely
purchasers of a company’s products.
Specifically, the advantages of target
marketing are:
 Marketing opportunities and unfilled ‘gaps’ in
a market may be more accurately appraised
and identified.
 Market and product appeals through
manipulation of the marketing mix can be
more delicately tuned to the needs of the
potential customer.
 Marketing effort can be concentrated on the
market segment(s) which offer the greatest
potential for the company to achieve its goals
- be they goals to maximize profit potential or
to secure the best long-term position for the
product or any other appropriate goal.
POSITIONING
Positioning
 After segmentation and market targeting, the
next important step in developing an effective
marketing strategy is product positioning.
Product positioning refers to the way in
which an organization sets itself apart in
the market and how its products and
services are perceived by the target
market as a whole; this incorporates the
concept of all stakeholders of the company.
 To compete successfully in a target market,
an organization must have a form of
differential advantage.
 Taking Porter’s work we know that this has to
take one of three formats – cost leadership,
differentiation or focus
 Positioning is about the communication of the
overall value proposition such that it creates
and maintains this clearly to customers,
thus creating a distinctive and ideally
unique, place in the market for the
organization.
 To be effective, the basic value proposition offered
by an organization must be something that is
relevant to the target market, it must be
differentiated from the competition and it must be
sustainable and communicated clearly to that
market.
 Indeed differentiation at product, brand or corporate
level, is now regarded as a key element of
establishing a sustainable market position. The
differentiating variable may be actual - based on the
physical attributes and features of the product, or
perceived - based on the image of the product or the
supplier; as is the case with many services.
Positioning and Perception
The concept of positioning has two dimensions:
  What the organization wishes to achieve
(how it wants its products to be viewed by
consumers). This will involve deciding where
the organization wants to compete and how it
sets about competing.
  What consumers actually believe about a
particular product or service
Perceptual Mapping
 In understanding product positioning, it is
important to remember that what is being
positioned is not simply the product itself but
rather the total product offering
 It must also, through marketing research,
establish which features are considered to be
important by consumers. This provides the
basic information for a positioning strategy.
Rationale behind perceptual mapping
  Perceptual mapping plots the dimensions of
the total product offering which are significant
to the customer.
  The closer the positioning of two brands on
the map, the more likely they are to compete.
  The closer the brand is to the ideal position,
the more likely it is to be preferred.
  Gaps in the market can be identified that
represent potential market niches.
To summarize, here are the steps in Product
Positioning:
  Define market segments
  Determine which segments to target
  Understand targeted customers' needs /expectations
/priorities
  Develop (or modify) product/service to address these needs
  Evaluate perceived positioning of competitors' products/
services/ brands
  Select positioning bases (criteria) for product/service vis-a-vis
targeted customers' needs and competitors' position in the
market
  Communicate the selected positioning/ image/ proposition to
the targeted customer.
Module 4
Branding
At the end of this module you will be able to
 1. Define branding
 2. Examine the different types of branding
 3. Discuss USP
Branding
 The process involved in creating a unique
name and image for a product in the
consumers' mind, mainly through advertising
campaigns with a consistent theme. Branding
aims to establish a significant and
differentiated presence in the market that
attracts and retains loyal customers.
 Brands are interesting, powerful concoctions
of the marketplace that create tremendous
value for organizations and for individuals.
Because brands serve several functions, we
can define the term “brand” in the
following ways:
A brand is an identifier: a name, sign, symbol,
design, term, or some combination of these things
that identifies an offering and helps simplify
choice for the consumer.
 A brand is a promise: the promise of what a
company or offering will provide to the people
who interact with it.
A brand is an asset: a reputation in the
marketplace that can drive price premiums and
customer preference for goods from a particular
provider
 A brand is a set of perceptions: the sum total of
everything individuals believe, think, see, know,
feel, hear, and experience about a product,
service, or organization.
 A brand is “mind share”: the unique position a
company or offering holds in the customer’s mind,
based on their past experiences and what they
expect in the future.
 A brand consists of all the features that
distinguish the goods and services of one
seller from another: name, term, design, style,
symbols, customer touch points, etc.
Together, all elements of the brand work as a
psychological trigger or stimulus that causes
an association to all other thoughts one
has had about this brand.
 Brands are a combination of tangible and
intangible elements, such as the following:
 Visual design elements (i.e., logo, color,
typography, images, tagline, packaging, etc.)
 Distinctive product features (i.e. quality, design
sensibility, personality, etc.)
 Intangible aspects of customers’ experience with
a product or company (i.e. reputation, customer
experience, etc.)
 Branding–the act of creating or building a
brand–may take place at multiple levels:
company brands, individual product brands,
or branded product lines. Any entity that
works to build consumer loyalty can also be
considered a brand, such as celebrities (Lady
Gaga, e.g.), events (Susan G. Komen Race
for the Cure, e.g.), and places (Las Vegas,
e.g.).
branding is now a strategy used ‘to differentiate
products and companies, and to build economic
value for both the consumer and the brand
owner’
 Now brands are denoted by their unique
names, logos, packaging and associated
images. This makes up their brand identity.
That identity is designed to represent the
brand’s values and to signal them to potential
customers. An appreciation of those values
then helps the customers to form a brand
image in their minds
Why do we brand products?
 Companies invest millions in the development
and protection of their brands; they do so
because branded products have distinct
advantages over non-branded ones, this is
akin to differentiated versus generic product
positioning.
A strong brand is now seen as key to commercial success by
providing the following main advantages:
  high brand equity
  increased product awareness levels
  the ability to charge a premium price
  reduced susceptibility to price wars
  competitive edge
  a sound basis for building strong customer
relationships
  higher likelihood of repeat purchases
  retail leverage
  new products have a better chance of success
thanks to the brand name
High brand equity
 The basis of brand equity lies in the
relationship that develops between a
consumer and the company selling the
products or services under the brand name. A
consumer who prefers a particular brand
basically agrees to select that brand over
others based primarily on his or her
perception of the brand and its value. Thus a
well-known brand adds value to a product
both from the customer perspective and from
the company’s
Increased product awareness
 Clearly it is crucial that potential customers
should be aware of a product, it is the first
stage on their journey to buying it
 One of the key roles of advertising is to build
that awareness and an easily recognized
brand makes that task much more achievable.
Product and packaging design play key roles
here as well by making the product more
visible and reinforcing the brand’s values.
Premium pricing and reduced susceptibility
to price wars
 A good brand name helps a firm achieve a
premium price for its products. Think of the
differences in the prices of trainers. The well-
known brands, e.g. Nike and Reebok, can
charge much more for their products than
lesser known brands. It is not just a question
of having a well-known name, the strength of
the brand depends upon the values
associated with it in that particular market.
Competitive edge
 A branded product simplifies shopping by
assisting with the customer’s product adoption
process. If the marketing communications
have worked well, then the potential customer
will already have built up a set of associations
with the brand, short-circuiting a lot of the
information searching that they might
otherwise have to do
Building relationships
 The strength of the customer’s relationship
with a brand is central to that brand’s growth.
 The relationship is normally between the
customer and the brand, rather than between
the customer and the brand’s owner who may
even be a company that the customer has
never heard of.
Building relationships
 The importance of this brand relationship has
prompted companies to develop various
relationship- building activities which establish
a two-way flow of communication with their
customers and encourage them to integrate
brands into their lives. Examples of these
activities include: club memberships, loyalty
card schemes, registration of warranties,
other products such as T-shirts and bags with
the brand name and logo on and website
activities
Repeat purchases
 A brand that has been bought before and
found to be satisfactory reduces these risks
and so people are more likely to buy that
trusted brand again.
 A good experience of a brand results in a
happy customer who continues to purchase.
Conversely, a bad experience can lead to an
unhappy customer who may very well reject
future offerings bearing this brand, no matter
how attractive the offering appears to be
TYPES OF BRANDING
Corporate Branding
 One of the more reputation-focused types of
branding, corporate branding is about making a
cultivated name for an entire corporation. The public
will associate the organization’s name with a
promise – that they stand behind the services they
offer, and that they have a verifiable, positive
performance record.
 Good corporate branding has long-term effects, as
these companies can rely on name brand-
recognition; customers tend to automatically trust
new products when they are associated with a brand
they already recognize.
Personal Branding
 This usually refers to branding for the
individual person, as opposed to branding a
whole business. Personal branding is
particularly important for celebrities, politicians
or even digital marketers who want to
maintain a positive public image (usually
because it benefits them in their career to be
endorsed).
Product Branding
 Ever notice how ‘Colgate’ has become a word
synonymous with ‘toothpaste’? That’s
because the product has reached the
pinnacle of product branding success – the
type of branding that gets consumers to
choose one product over another based on
the brand alone. You’ll often see logos or
colors on specific items that jump out at you;
this is because you’ve learned to associate
the two together as a result of effective
product branding.
Geographical Branding
 If you work in the tourism industry, this type of
branding is for you. Geographical branding
focuses on the unique traits of a specific area
or region as the selling point of a particular
place and why you should visit.
 for example, did a great job of this with their “I
Amsterdam” rebrand, turning the focus away
from their Red Light District and onto the
cultural diversity of the city instead.
Online branding
 Also referred to as “internet branding”, this
type of branding refers to how you position
your company (or yourself) online. This could
refer to building a website, establishing a
social media presence, publishing a blog –
anything that happens on the web under your
name.
Offline Branding
 As the name suggests, this refers to branding
that happens off the web. From doling out
business cards to staging sit-down lunches
with desired clients or leads, offline branding
requires a mix of good design and outgoing
spokespeople to represent your brand.
Co-branding
 This is the moment where branding meets
partnerships. Co-branding is when 2+
company brands are connected by the same
product. For example, Uber and Spotify
partnered on the “soundtrack for your ride”
campaign, providing users of both apps with a
better ride-sharing experience by allowing
them to be the DJs of their trips.
Service Branding
 This type of branding puts a strong emphasis on the
customer, and on providing your clients with impeccable
services. While every brand should do their best not to
alienate their customers, service branding takes this one
step further; it focuses specifically on adding perceived
value to customer service, and uses this as their selling
point.
 People who interact with service brands look forward to
the “extras” they get, whether it’s an airline giving out hot
chocolate chip cookies on international flights, or a local
coffee art store handing out “how-to DIY” packets with
every purchase.
Ingredient Branding
 When you highlight the achievements of one
specific ingredient within a product, or one
specific branch within a business –
those become the lure of the brand rather
than the product or business as a whole.
Activist Branding
 If there’s a cause you believe in with all your
heart, you may be able to channel it into your
brand strategy. Specifically, activist branding,
or “conscious branding” is a way to make a
positive social impact through your brand,
so that your brand ultimately becomes
synonymous with the cause. Companies
like Gillette have used this type of branding as
of late (although whether or not it worked in
the razor company’s favor is too soon to tell).
“No-brand” Branding
 Also known as “minimalist branding,” this
approach assumes that a product alone is enough
to capture consumer attention without needing to
rely on any bells or whistles.
 In line with this philosophy, Brandless, a company
that seeks to make quality food affordable,
emphasizes their lack of brand as a way to show
customers that they don’t have to pay a penny
more than necessary for “branded” food. Instead,
consumers have direct access to healthy,
affordable food – of which the quality speaks for
itself
Additional Topic which can be registered at IPO
 A trademark is a word, a group of words,
sign, symbol, logo or a combination thereof
that identifies and differentiates the source of
the goods or services of one entity from those
of others. If you’re a business, distinguishing
your goods or services from others gives you
a competitive edge. Learn more about
trademarks, how to apply for protection, and
how to manage them at IPO or Intellectual
Property Office
 An industrial design is the ornamental or
aesthetic aspect of an article. Design, in this
sense, may be three-dimensional features
(shape or surface of an article), or the two-
dimensional features (patterns or lines of
color). Handicrafts, jewelry, vehicles,
appliances - the subject of industrial designs
range from fashion to industrial goods.
 Copyright is the legal protection extended to
the owner of the rights in an original work.
“Original work” refers to every production in
the literary, scientific and artistic
domain. Among the literary and artistic works
enumerated in the IP Code includes books
and other writings, musical works, films,
paintings and other works, and computer
programs. Copyright laws grant authors,
artists and other creators automatic protection
for their literary and artistic creations, from the
moment they create it
 A patent is an exclusive right that allows the
inventor to exclude others from making, using,
or selling the product of his invention during
the life of the patent. Patent owners may also
give permission to, or license, other parties to
use their inventions on mutually agreed terms.
Owners may also sell their invention rights to
someone else, who then becomes the new
owner of the patent.
What is a unique selling proposition?
 A unique selling proposition, more commonly
referred to as a USP, is the one thing that
makes your business better than the
competition. It’s a specific benefit that makes
your business stand out when compared
to other businesses in your market.
“What makes you different from the
competition?”
 Your USP plays to your strengths and should
be based on what makes your brand or
product uniquely valuable to your customers.
Being “unique” is rarely a strong USP in itself.
You have to differentiate around some aspect
your target audience cares about, otherwise
your messaging won’t be nearly as effective.
What a unique selling proposition isn't
 Specific marketing offers—like 10% off, free
shipping, 24/7 customer service, or a strong
return policy—are not USPs. Convincing and
effective though they may be, they’re not
unique on their own, nor are they positions
that are easy to defend as any of your
competitors can copy them.
 A unique selling proposition is a statement
you choose to embody that differentiates your
products and your brand from your
competitors.
What a unique selling proposition isn't
 A USP is also not just the header copy on
your homepage. It’s a position your small
business takes as a whole that can be
incorporated into your products, your brand,
the experience you provide, and any other
touch point your customers have with your
business.
 Module 5
Customer Relationship Management
What is Customer Relationship Management ?
 1.CRM is a business strategy to select and
manage customers to optimize long term
value.
 2.CRM is a comprehensive strategy and
process of acquiring, retaining and partnering
with selective customers to create superior
value for the company and the customer
What is Customer Relationship Management ?
 3. CRM is a complete system that
 a.)provide means and method to enhance
experience of the individual customers so that
they will REMAIN CUSTOMERS FOR LIFE
 b.) provides both technological and functional
means of identifying, capturing, and retaining
customers c.) provides a cohesive view of the
customer across the enterprise.
 To put it simply, CRM revolves around the management of
customer life cycle as shown in the figure below:
 The customer life cycle starts with a clear and
precise assessment of customer needs and
then attracting them with the traditional modes
of advertising or through recommendations.
 The next step would be customer
development i.e. please the customer by
offering him a product of his dreams by
learning about it from him through close
relations with him.
 Then comes the stage of leveraging customer
equity wherein cross selling and up selling are
resorted to but while keeping in mind that
there must be mutual value creation.
 The last part of customer life cycle
management is retaining the existing
customers and trying for more customers
through referrals of these satisfied customers.
In spite of all these efforts there will be a
certain amount of customer migration at
various stages due to various reasons.
 CRM tries to work out ways to identify
the reasons of defections and introspect
about the methods and assumptions that are
made during the whole process
Need for CRM
 CRM typically cost 5-10 times to acquire a
new customer
 Some companies can boost profits by almost
100% by retaining just 5% more of their
customers
 Most companies lose 50% of their customers
in 5 years
 70% of the repeat purchases are made out of
indifference to the seller, NOT loyalty.
Ingredients of CRM:
It is necessary to understand the basic ingredients that make CRM.
What CRM is not ?
It is necessary to understand what CRM is
not to clear a few misconceptions about CRM.
CRM is not just a sales or a technical issue. It is
not a new technology and software applications
but an enabler in achieving the CRM objective
(of understanding, anticipating, managing and
personalizing needs of the customers).
 CRM also means Call Center or Contact
Center to some. CRM is also not just a goody
goody gesture or offering discounts to solve a
problem/dispute.
To summarize, it can be said that CRM is not:
A software solution
 Sales gimmicks
 Call Center Services
 Relationship building by behavioral attributes of
the contact person.
 Empowerment to sanction goodwill waivers.
 A much hyped tool
Types of CRM
 1. Proactive versus Reactive CRM :
a. In proactive CRM a company anticipates
and responds to the customer needs with
suitable offerings.
 b. The reactive CRM is a company’s reaction
to the suggestions or complaints of the
customers which acts as a stimulus. Proactive
CRM generally increases the level of
personalization as in one to one marketing.
Types of CRM
 2.Operational, Collaborative and Analytical
CRM
 a. Operational CRM:
 It is also known as front office CRM as it deals
with all those areas where the customer comes in
direct contact with the organization ie. the front
liners. Since the customer is in touch with the
organization through these front liners, these
contact points are called customer touch points.
The customer touch points are of the following
types:
 Face to face touch points
Sales/Service/Channel/Events/Stores/Promoti
ons
 Database driven touch points -
Telephones/Email/MailSMS/Fax/Loyalty
Cards/ATM’s.
 Mass Media touch points
 Advertising/PR/Website
The transactions that take place at these touch
points are of the following types
 Financial transaction
 Sales
 Payments
 Return of sales
 Information transactions, Request for
information
 Complaints
 Suggestions
 Operational CRM enables a company to
collect all the possible information about all
the transactions of customers, monetary or
nonmonetary, from all touch points i.e. point
of sale, call centers, web. etc. It is an effort to
understand the customer better to give a
consistent client service and thus improve the
prospects of customer loyalty and retention.
 Operational CRM enables and streamlines
communication to and from the customer.
Types of CRM
 2.Operational, Collaborative and Analytical
CRM
 b. Collaborative CRM:
This enables a two-way communication
between a company and its customers. These
interactions are made possible through a
variety of channels and the benefit is that the
quality of customer interactions improve and
gradually work towards building long term and
‘profitable’ relationship with the valuable
customers.
Types of CRM
 2.Operational, Collaborative and Analytical
CRM
 c. Analytical CRM:
The data collected at the front office is interpreted
and analyzed to understand the customer activities
and correlating it with the data already possessed
through data warehousing and data mining. This
cross functional data collected is used in formulating
strategies for cross sell and up sell after studying the
consumer behavior, patterns of purchase and
decision making, levels of service expected etc
Benefits of CRM are :
 Better opportunity management for better sales
 Decreased cost of sales
 Expand the base of loyal customers
 Deliver high customer service standard
 Give a holistic-view of the activities in the organization
 A higher hit rate by a systematic and scientific sales
process
 Better quality of business decisions due to better reporting
capability
 Making the whole system process driven rather than
personality driven
 Increased sales force productivity
Module 6
Marketing Mix
Marketing mix refers to the combination of
elements that shape how a business delivers
value to its customers. These elements are
called the 7Ps: Product, Price, Promotion,
Place, People, Process, and Physical evidence.
 The concept was originally introduced in
1960 as the 4Ps: Product, Price, Promotion,
and Place.
 As the marketing landscape evolved, the 4Ps
expanded to 7Ps, adding People, Process,
and Physical Evidence to the mix. It’s thought
that the additional elements better address
modern competitive environments affected by
the rise of technology and the changes in how
people communicate.
“Product” refers to the goods or services
that you offer and how they meet your
customers’ needs and desires. This extends
to quality, warranties, packaging, features,
variety of products or service levels,
and so on.
“Price” is how much customers pay — or
are willing to pay — for your product or
service. It encompasses factors such as
payment methods, financing/credit terms,
discounts, price-matching, referral bonuses,
affiliate payments, loyalty discounts, free
trials, subscription options, etc.
 Premium pricing, is used where there is
uniqueness about the product or service. This
approach is used where a substantial
competitive advantage exists, that is also
sustainable in the long-term.
 Penetration pricing is designed to maximise
the capture of market share in a short
timescale. In this the price charged for
products and services is set artificially low in
order to gain market share. Once this is
achieved, the price is generally increased
 Economy pricing. Exactly as the name
implies this is a no frills low price. The cost of
marketing and manufacture are kept at a
minimum. Supermarkets often have economy
brands for soups, spaghetti, etc.
 Price skimming. Price skimming is a
product pricing strategy by which a firm
charges the highest initial price that
customers will pay and then lowers it over
time.
“Promotion” refers to the way you
communicate with potential customers. It
includes what you say, who you say it to,
what channels you use to reach them, and
how often you do it. Activities in the
promotional mix fall within advertising, PR,
direct marketing, and personal selling and
can encompass search engine
marketing, social media, billboards and
signage, print advertising, and much more.
“Place“ is where and how a company will
make its products available to its
customers. It includes the channels a
company uses to sell its products, such as
local stores, ecommerce websites, personal
networks, direct sales, affiliates, and so on.
It also includes logistics such as distribution
centers, product transport, and warehouses
and inventory.
What is the most in demand PLACE
The “People” component of the marketing
mix encompasses everyone who is on your
team. This includes managers, customer
service reps, product engineers, production
workers, salespeople, and support staff. It
also includes the hierarchy of relationships
at an organization, which is meant to help
employees get things done efficiently and
work together smoothly.
“Process” in the marketing mix refers to the
flow that a company uses to deliver its
product or service to the customer. This
includes the logistics involved in building
and marketing a product, from R&D through
to the final production line. It can also
extend to how the marketing team works
together to create campaigns.
“Physical evidence” includes tangible items
that a customer can see or touch, like
documentation, receipts, product reviews,
demos, packaging, your website, and other
materials that provide information about
your brand. It functions as proof for the
customer that the company or product lives
up to its promises. For a restaurant, the
components that make up ambiance or
dining atmosphere can function as physical
evidence: the colors and decor, menu
designs, even staff uniforms.
 The Four Cs of a Marketing Mix
 Consumer. The wants and needs of the consumer.
Under this model, a business should be focused on
solving problems for consumers rather than creating
products. This requires studying consumer behavior
and needs, along with interacting with potential
customers to find out what they want.
 Cost. The total cost of acquiring a product or service,
which goes beyond the price tag. Cost includes the time
it takes to research a product and make a purchase. It
also may include the cost of trade-offs that consumers
must make, such as forgoing another purchase, or the
cost of guilt they experience for buying or not buying a
product.
 The Four Cs of a Marketing Mix
 Convenience. How easy or difficult it is for
consumers to find and purchase a product. The
rise of Internet marketing and purchasing has
made convenience more important in customer
decisions than physical place.
 Communication. A dialogue that depends as
much on the consumer as on the seller. This
includes advertising, marketing, and media
appearances. In the digital world, however, it also
includes emails that customers either opt into or
initiate, brand ambassadors, blog posts, websites,
sponsored product placement, and social media
channels.
How to Identify Your Marketing Mix
 To bring in early sales and build a customer
base, any business must begin by identifying
its marketing mix.
 The first step in this process is identifying
your .
target customer
How to Identify Your Marketing Mix
 Second, identify your goals for sales and
growth, as well as your budget for marketing
initiatives.
 Then, choose a marketing tactic that will help
you reach your target audience and achieve
those goals.
Recit
 Be firm with your answer
 Prepare an example
 If I pass the question, that means?
 Module 7
Market Research
Market Research Definition
 Collecting, Analysis, and Forecast of information
concerning the market. Market research produces
the fundamental information for marketing.
 The process begins with the definition of the
problem, and ends with a report containing the
necessary steps or action.
 The aim of public-opinion polls is usually not the
broadening of the knowledge of the market;
however, its methods are similar to that of market
research.
 Information: in a large sense, it is everything that
influences the convictions of people.
 A company has three sources of
information
 Internal research. Usually, the easiest way is to
obtain its own data. This is the corporate data
asset. The level of expenses, the sales data,
warranty data, planning data etc. are all
important
 Primary, focused research: the company
carries out the market research itself e.g.
creating and maintaining an address list
 Secondary research the purchase of external
information, the commission of a market research
company
Three different data collection
Alert collection of data.
 Its purpose is to prevent surprises. Alert
market research creates protection for the
products. This is proactive, that is, initiative,
anticipating the demands, not a
subsequent market research, thus,
providing the chance to alter the decision, or
action. University students often talk with their
fellow students from upper classes, which
greatly influence their studying habits.
Three different data collection
Passive collection of data.
 Its purpose is benchmarking. The
determination of the dividing value, the
standard, the benchmark compared to others,
like a lighthouse to the evaluation of the
company performance. Even athletes glance
at the scoreboard sometimes to see where
they are compared to their rivals. This is
reactive, that is follow-up market research.
Three different data collection
Attacking data collecting
 to discover possibilities on the market. This,
again, is proactive market research.
 The early discovery of significant new
markets, target groups and customer
tendencies is an advantage over the
competitors, according to the old wisdom:
”feeding on the past, living in the present
and thinking about the future!”. The real
mistakes derive from the missed chances!
Marketing information system: the people,
machines and methods providing information
necessary for well established marketing
decisions. In short, it is the organized flow of
the relevant information providing a basis
for marketing decisions. Information systems
are not an aim, but an instrument.
Integrated Management System
 – a comprehensive, detailed computer
system controlling the homogenous
conduct of the affairs of the company, and
reviewing and controlling its work process.
The division of market research is the
following:
 – According to the nature of data: primary,
secondary.
 – According to the nature of the research:
desk research, executed far from the process,
and the decision making situation
 – According to the subject of the research:
ecoskopic, demoscopic.
 – According to the nature of the result, the
most frequent division.
Content analysis
Direct. Execute observation by sitting in a
shop and counting how many people walk up to
the shelf, who they are, and how much they
choose of the product. Colgate-Palmolive filmed
the customers at the shelves purchasing its
toothbrush. Many of the pensioners spent a
lotof time trying to read the label, thus the
company enlarged the size of the ptinz and
redesigned the packaging so that the
toothbrush was more visible.
Content analysis
 Mystery Shopping. Its purpose is to check the
level of the service, and on the execution of the
marketing campaigns. The anonymous test customer
checks the service and the shops according to a
questionnaire agreed upon in advance. The mystery
shopping in the retail units of the rivals is a frequent and
cheap method, too. Sometimes, only the prices and the
assortment are checked, in other cases there is a complex
examination based on an evaluation guide. A genuine full
purchase process is not done, just inquiry in the shop of a
competitor. The company’s own shops, or partner shops
to be examined take part in the working out of the plan
preventing any kind of suspicion, moreover, sometimes a
shop manager accompanies the test customer.
Content analysis
 Mechanical, e.g. barcode data and use of regular
card. For example, how much more do regulars
spend than the average customers
 Physical remains. Case in point: the chocolate
consumption of the women working in an office
was checked in the dustbin, because those
concerned did not admit their snacking habits in
a questionnaire that had an “overweight
consequence”. A further example is when
researchers wanted to find which of the exhibits in
a museum was the most popular.
Content analysis
 Test market: a small market is chosen to try
the new product that is typical of the target
market, but can be observed more easily
 laboratory test market: an artificial shop is
built in a room, products are placed in it, and
researchers observe how consumers behave
there. There is an extremely good opportunity
for observation, since the shop was built by
the researchers (hidden mirror).
Secondary Market Research
 Periodical and other publication indexes. They
include the publications of one territory. The
ripple effect of certain professional news,
events can not be left unnoticed.
 Trade directories, yellow pages, address
lists. Lists the companies of a territory,
geographical or professional. Examples:
Kompass Hungária – ”compass of
companies” and Hoppenstedt Bonier – the
„business port”.
Statistical publications, databanks.
 Buying power surveys. The determination of
the income of the consumers is difficult. For
this reason researchers survey the “the
income that a person is free to spend in a
household”
Techniques of Syndicate Information
Collection in Market Research
 Syndicate market research is an observation
carried out continuously and systematically, and
based on standards, that is a multi-client research,
that is paid by numerous clients. The pre-financing
of the syndicate market research is done by the
client companies while the characteristic of the
secondary research is that the researcher begins
the execution, finances it, and then tries to sell it
to as many companies as s/he can
Consumer habit surveys.
 People are not information tanks, but rather
all-round information processors and
analyzers. Quantitative market research
work and focus group discussions lead to
useful experiences in questions that people
have thought over and decided on.
 Module 8
Marketing Communications
 Module 9
Marketing Plan
 A marketing plan is a report that outlines your
marketing strategy for the coming year,
quarter or month.
Typically, a marketing plan will include these elements:
 An overview of your business’s marketing and
advertising goals
 A description of your business’s current marketing
position
 A timeline of when tasks within your strategy will
be completed
 Key performance indicators (KPIs) you will be
tracking
 A description of your business’s target market and
customer needs
Creating a Marketing Plan
 A marketing plan considers the value
proposition of a business. The value
proposition is the overall promise of value to
be delivered to the customer and is a
statement that appears front and center of the
company website or any branding materials.
 The value proposition should state how a product
or brand solves the customer's problem, the
benefits of the product or brand, and why the
customer should buy from this company and not
another. The marketing plan is based on this
value proposition to the customer.
 The marketing plan identifies the target market for
a product or brand. Market research is often the
basis for a target market and marketing channel
decisions. For example, whether the company will
advertise on the radio, social media, through
online ads, or on regional TV.
 The marketing plan includes the rationale for
these decisions.
 The plan should focus on the creation, timing,
and placement of specific campaigns and
include the metrics that will measure the
outcomes of marketing efforts.
Purpose of a Marketing Plan
 Many business owners create a marketing plan and then
set it aside. However, your marketing plan is a road map
providing you with direction toward reaching your business
objectives. It needs to be referred to and assessed for
results frequently.
 While some small business owners include their marketing
plan as part of their overall business plan, because
marketing is crucial to success, having a comprehensive,
detailed marketing plan on its own is recommended. If you
don't want to make a mini-plan as part of your business
plan, you can attach your full marketing plan to the
business plan as an appendix to the business plan.
Benefits to a Marketing Plan
The importance of a detailed marketing plan
can't be overstated. A marketing plan:
 Gives clarity about who your market is. It's
easier to find clients and customers if you
know who they are.
 Helps you craft marketing messages that
will generate results. Marketing is about
knowing what your product or service can do
to help a target market. Your marketing
messages need to speak directly your market.
Benefits to a Marketing Plan
The importance of a detailed marketing plan
can't be overstated. A marketing plan:
 Provides focus and direction. Your choices
for marketing are vast including email, social
media, advertising, guest blogging, direct
mail, publicity, and on and on. With so many
marketing choices, you need a plan for
determining the best course of action for your
business.
Happy Holidays