Module I: Corporate Image &

Marketing Mix

By- Dr. Arif Hasan

UNDERSTANDING CORPORATE IMAGE

 "Corporate image" was once advertising jargon but today a

common phrase referring to a company's reputation. The
"image" is what the public is supposed to see when the
corporation is mentioned.

 A good corporate image is a genuine asset.

 The concept is usually associated with large corporations, but

small businesses also have a corporate image.

 In the absence of active efforts, corporate image "simply

happens": it is how a company is perceived.

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 Management, however, may actively attempt to shape the
image by communications, brand selection and promotion, use
of symbols, and by publicizing its actions.

 Corporations trying to shape their image are analogous to

individuals who will dress appropriately, cultivate courteous
manners, and choose their words carefully in order to come
across competent, likeable, and reliable.

 In the personal as in the corporate case, the image should

match reality.

 When it does not, the consequence will be the opposite of the

one intended.

 A corporate image is, of course, the sum total of impressions

left on the company's many publics.

 In many instances a brief, casual act by an employee can either

lift or damage the corporate image in the eyes of a single
customer or caller on the phone. But the overall image is a
composite of many thousands of impressions and facts.

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 A corporate image of a company can be defined as an image
that people hold in their mind about the company, its products,
and its services. The corporate image of a company is
the product of a company’s performance, media coverage, and
its activities.

 The corporate image of a company keeps on changing

continuous and can be changed by putting the right efforts in
the right direction.

 The corporate image of a company is referred to as the

reputation of the company in the market place or how others
view it outside the company. The opinion of your customers
about your company is highly influenced by the corporate
image of your company in the market.

ELEMENTS OF CORPORATE IMAGE

1) The core business and financial performance of the company

2) The reputation and performance of its brands ("brand

equity")

3) Its reputation for innovation or technological prowess,

usually based on concrete events

4) Its policies toward its salaried employees and workers

5) Its external relations with customers, stockholders, and the

community

6) The perceived trends in the markets in which it operates as

seen by the public.

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 IMPORTANCE OF CORPORATE IMAGE

#1 Increase the loyalty of your customers and strengthen your

relationship with them:

 In present times, people have many options when they decide to

buy one product. In a highly competitive environment,
companies use various strategies to gain the loyalty of their
customers and attract new customers.
 A positive corporate image can help you to attain customers and
helps in gaining their loyalty. For example, nowadays,
companies participate in social activities such as helping poor,
providing education to underprivileged children, or activities
associated with environmental causes.
 Contribution in such activities creates a positive image of the
company in the eyes of people.

#2 Enhance the performance of products:

 The performance of products produced by a company is largely

impacted by its image in marketing. People have become aware
more than ever, and they also have options to reject the products
of one company and choose the products of another company.

 A company with a positive image can easily sell its products

with investing less in advertising. People have blind trust in the
quality of the Phones and other technological devices produced
by the Apple company.

 Because Apple, since its inception has managed to sustain a

positive corporate image and always presented itself as a leader
in the smartphones’ market.

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#3 Influence the actions of the employees of a
company:

 Employees of a company represent the company in

the market, and their actions play an important role in
building or ruining the image of a company.
 However, it is not wrong to say that the corporate
image of a company also influences the actions of its
employees.
 If employees are associated with a company with a
strong and positive corporate image, then they will
feel liable to act accordingly so that they will not harm
the image of the company.

#4 Strengthen the business image of the company:

 People are wise when it comes to the investment of

their money. Their investment decisions largely
influenced by the corporate image of the company.
 A bad corporate image will not only harm the sales,
but it will also repel investors.

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 How To Build A Corporate Image?

#1 Define the purpose of your company:

 To make your company stand tall in the crowd and let

people choose your products over the products of your
competitors you need not only to produce quality
products (although it is very important), but also to
work on the “why people should choose your
products.”
 If you have a mentioned reason why people should
choose your products you can advertise it in
your marketing strategies and let people remember
you with this.

#2 Work on your identity tools:

 Your identity tools are the logo of the company,

slogan, name, etc. people know you with these
identity tools.

 Therefore, don’t make a mistake of ignoring them.

You identity tools should tell the purpose of your
company.

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#3 Make your employees aware of your purpose and
train them to take actions accordingly:

 Employees are representative of your company. They

are the ones who directly interact with your
customers.

 Their behaviour will play an important role in

building the image of your company. Therefore, invest
in training your employees to act following your
purpose to build the corporate image of the company.

#4 Invest in the promotional and other activities that

will strengthen the corporate image of your
organization:

 You need to promote your purpose through various

promotional techniques such as advertising on social
media, television, and on newspapers, etc. and also
hold events which establish a positive corporate
image.

 For example, you can organize a fundraiser event for

cancer patients. It will create a soft corner in the
hearts of people about your company.

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#5 Accept your mistakes and take corrective actions:

 No matter how smartly you plan your actions, there is

always a room for mistake.
 The image of your company will depend on what you
do after you have made a mistake. Not accepting the
mistakes made by your company will only ruin the
image of your brand.
 On the other hand, if you accept your mistake and
take the matter in your hands and take the required
actions to correct it. You will not only sustain a
customer but will also set an example that you care
about people.

The Marketing Mix

The Tools of Marketing Management

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 MARKETING MIX

 The original marketing mix, or 4 Ps, as originally proposed by

marketer and academic E. Jerome McCarthy, provides a framework
for marketing decision-making.

 McCarthy's marketing mix has since become one of the most

enduring and widely accepted frameworks in marketing.

The Marketing Mix

 Marketing activities divided into four basic elements which are together
referred to as the marketing mix. The marketing mix helps in
successfully implement the marketing strategy.

 The term “mix” is all about select a set of tools from the marketing
toolbox to solve specific problems
example - One selects ingredients to bake a particular type of cake.

 These are the tools of marketing management employed by marketers.

They are as where marketing managers need to make decisions. These
decisions affect the nature of the offering or package of benefits that the
organisation offers to customers.

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 The Marketing Mix – the 7Ps
What are the tools?
The tools are commonly known as
the 4P’s or 7P’s.
Interconnected/ interdependent – actions in
Product
one perfect decisions for the other P’s
Promotio
Each P has countless alternatives Price n

The better you know your target market,

the easier the decisions for the 4 P’s Marketing
Mix – the
Physical 7Ps
Successful combination = profitability Place
evidence

Combining the mix

The manager must understand customers’ Process People

characteristics and buying habits, for
example. He/she has to blend the
components of the mix to formulate
strategies and tactics by which those needs
can be met.

7P & 7C

Four Ps Four Cs
ORGANISATION FACING CUSTOMER FACING
 Product  Customer solution (consumers’ want and needs)
 Price  Customer cost (cost to satisfy needs)
 Place  Convenience (to buy)
 Promotion  Communication
 People  Caring
 Process  Co-ordination
 Physical Evidence  Confirmation

Packaging, Performance, Positioning, Public relation

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 All Mix in Marketing
 Marketing Mix- Product, Price, Place, Promotion

 Promotion Mix- Specific combination of promotion methods used for a

particular product or service viz. Adv, Personal Selling, Promotion, Public
relation, Direct Marketing

 Product Mix- Width, Length, Depth, Consistency

 Retail Mix- Retail Pricing, Store Location, Retail communication;

Merchandise

 Service Mix- Pure Tangible goods (only tangible, no service) (ii) Minor
service Major goods (Car service) (iii) Hybrid (equal part of goods and
services- Display rooms) (iv) Major service-Minor goods (Airline ticket) (v)
Pure service- (insurance)

Product
The product or services offered to your customer – Their physical attributes
what they do, how they differ from your competitors and what benefits they
provide

Quality Features
Style Brand name
Returns Sizes
Services Warranties

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Category Definition/Explanatio Typical Marketing
n/Concept Decisions
Product A product refers to an Product design – features,
item that satisfies the quality.
consumer's needs or Product assortment – product
wants. range, product mix, product
lines.
Products may be tangible Branding
(goods) or intangible Packaging and labelling.
(services, ideas or Services (complimentary
experiences). service, after-sales service,
service level).
Guarantees and warranties
Returns.
Managing products through
the life-cycle.

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PRODUCT LINE V/S RANGE

 A product line is vertical whereas a product range is

horizontal.
 A product line is a family of products derived from the
same ancestry. Say an iPhone 4, 6, 7 then 8.
 A product range is a group of products that generally have
something in common or compliment each other in some
way. Say an iPhone, an iPad and MacBook air are a range,
they all do different things but are related.

PRODUCT LIFE CYCLE

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PRODUCT LIFE CYCLE

 The term product life cycle refers to the length of time a

product is introduced to consumers into the market until it's
removed from the shelves.

 The life cycle of a product is broken into four stages—

introduction, growth, maturity, and decline.

 Introduction: This phase generally includes a substantial investment in

advertising and a marketing campaign focused on making consumers
aware of the product and its benefits.
 Growth: If the product is successful, it then moves to the growth stage.
This is characterized by growing demand, an increase in production, and
expansion in its availability.
 Maturity: This is the most profitable stage, while the costs of producing
and marketing decline.
 Decline: A product takes on increased competition as other companies
emulate its success—sometimes with enhancements or lower prices. The
product may lose market share and begin its decline.

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 Price (make it affordable)
Price plays a role in your marketing strategy with respect to differentiating your
products or services from your competitors. How you price your product or service so
that your price remains competitive but allows you to make a good profit.
The important pricing objectives are survival, profit maximization, sales maximization,
prestige and ROI.

The value that is put on the exchange process

List price (at par)
Discount
Premium
Credit terms

PRICE
Price plays a significant role in the marketing mix by attracting revenue to the
marketer. Pricing decisions are important for determining the value of the service
as perceived by the customer and building of an image for the service.
Price serves as a basis for perception of quality. The pricing strategy should be in
tune with the marketing strategy. Pricing strategy should gain competitive
advantage for the firm.
PRICING Objective
• Volume
• Sales Maximization * Market share
• Profitability
• Profit Maximization * Target return goals
• Other Pricing Objectives
• Image * Social & ethical considerations
• Survival * Product Quality * Keeping parity with competition

PRICE Decisions – Reasons

1. Pricing decisions have an impact on marketing channels. Suppliers, sales people, distributors,
competitors and customers all are affected by the pricing system.
2. Pricing gives customers information about the immediacy of delivery and the importance of
availability. Premium pricing is followed during maximum demand period and discounted
pricing when the demand for the service is low.
3. Pricing allows homogeneous services to be differentiated and facilitates the adoption of a
premium pricing strategy.

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Category Definition/Explanation/Concept Typical Marketing Decisions

Price refers to the amount a customer

pays for a product.
•Price strategy
Price may also refer to the sacrifice
•Price tactics
consumers are prepared to make to
acquire a product (e.g. time or effort).
•Price-setting
Price is the only variable that has
Price •Allowances – e.g. rebates for
implications for revenue.
distributors
Price is the only part of the marketing
•Discounts – for customers
mix that talks about the value for the
firm.
•Payment terms – credit,
payment methods
Price also includes considerations
of customer perceived value.

PRICING STRATEGIES

 Your pricing strategy should reflect your product’s positioning

in the market and the resulting price should cover the cost per
item and the profit margin.
 The amount should not project your business as timid or greedy.
 Low pricing hinders your business’ growth while high pricing
kicks you out of the competition.

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 Select a pricing strategy that’s based on the product itself,
competitive environment, customer demand, and other products
that you offer.

 There are a number of pricing strategies one may choose, which

are as follows:

1. Cost Plus- Cost Plus is taking the production cost and

adding a certain profit percentage. The resulting amount
will be the product’s price. You need to consider variable
and fixed production costs for this pricing method.

2. Value Based- Instead of using the production cost as your

basis, you consider the customer’s perception of the product’s
value. The perception of the buyer is dependent on the
product’s quality, the company’s reputation, and
healthfulness, aside from the cost factors.

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3. Competitive- You take a survey of the pricing
implemented by your competitors on a similar product that
you are trying to market and then decide whether to price
your product lower, the same, or higher. You should also
monitor their prices and be able to respond to changes.

4. Going Rate- This pricing strategy is more common in

selling environments where the companies have little to no
control of the market price. You price your product
according to the going rate of similar products.

5. Skimming- You introduce a high quality product, price it high,

and target affluent customers. When the market has become
saturated, you then lower the price accordingly.

6. Discount- Most commonly used for old product stocks or

when you’re clearing up you inventory. You take the advertised
price and lower the amount. A good example is a discount
coupon.

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7. Loss Leader- You take the production cost and price the
product even lower. The idea is to attract your customers to
your store where they can be convinced to buy your other
products.

8.Psychological- You may have noticed that you rarely see

pricing rounded off to the nearest whole number. This is a
psychological pricing strategy. $5.99 looks more
attractive than $6.00 although you’re only saving a single
cent.

PRICING MARKETING DECISIONS

 Payment Period- This is the length of time before you

receive the payment.

 Allowance- You give part of the advertised price to the

retailer in return for promotional activities like in-store
display that features your product.

 Seasonal Allowances- You lower the price of certain

products ordered during low sale seasons to attract
customers to buy during non-peak times.

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 Product/Services Bundles- You put in similar or
dissimilar products together and sell them as a bundle at a
discounted price.

 Trade Discounts- You give price discounts as payments to

your distribution channels for doing tasks like shelf stocking
and warehousing.

 Price Flexibility- You let the reseller or the sales person

modify the price according to an agreed range.

 Volume Discounts- You give discounts for wholesale buyers.

 Credit Terms - You allow consumers to pay for your products

at a later date.

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Promotion (Communication)

The method used to communicate the features and

benefits or services to your target customers.
 Advertising - e.g., television commercials
 Personal selling - e.g., door-to-door sales, professional
sales
 Sales promotion - e.g., logo-imprinted giveaways
 Public relations - e.g., press releases
 Direct Marketing – tele-calls

Category Definition/Explanation/Co Typical Marketing Decisions

ncept

•Promotional mix - appropriate balance

Promotion refers to marketing
communications .
Promotion
May comprise elements such
as: advertising, PR, direct
marketing and sales promotion.
of advertising, PR, direct marketing and
sales promotion.
•Message strategy - what is to be
communicated.
•Channel/ media strategy - how to
reach the target audience.

•Message Frequency - how often to

communicate.

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 Place (Distribution)
Where your business sells its product or service
and how it gets those products or services to your
customers may also be used in your marketing
strategy to differentiate you from your competition.
 Channels- Wholesaler, retailer,
 Coverage
 Inventory
 Transport
 Warehousing

Category Definition/Explanatio Typical Marketing Decisions

n/Concept

•Strategies such as intensive distribution,

selective distribution, exclusive distribution

•Franchising;

•Market coverage
Refers to providing
•Channel member selection and channel
customer accessConsiders
Place member relationships.
providing convenience for
consumer.
•Assortment

•Location decisions

•Inventory

•Transport, warehousing and logistics

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The extended 7 Ps:
 People – All companies are reliant on the people who run them from
front line Sales staff to the Managing Director. Having the right people is
essential because they are as much a part of your business offering as the
products/services you are offering.
 Processes –The delivery of your service is usually done with the
customer present so how the service is delivered is once again part of
what the consumer is paying for.
 Physical Evidence – Almost all services include some physical
elements even if the bulk of what the consumer is paying for is intangible.
For example a hair salon would provide their client with a completed
hairdo and an insurance company would give their customers some form
of printed material.

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 The Seven P’s

 Booms and Bitner extended the

traditional 4P (McCarthy)
framework to seven to reflect a
predominantly service economy
 Extended mix:
 People
 Process
 Physical evidence

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5. PEOPLE – the use of appropriate staff & people.
In all the organizations, people play a decisive role. Employees working in the
service organizations are the contact people with the customers. The strength
and success of the service organization lies in the attitudes, Training, observable
behaviour, appearance and accessibility of people.
Ex. - Employees working in a bank, hotel, hair-cutting saloon etc., are all frontline
people. They are in direct contact with the customers who visit their services. The role
of these frontline people decides the success of the service organization.

6. PHYSICAL EVIDENCE -environment (atmosphere) in which the service is delivered

Physical evidences are those tangible things which customers may receive
during the process of receiving the service. The customers evaluate the
worthiness of the service with the physical evidences they receive. EX..- If you
walk into a restaurant or aircraft your expectations are of a clean and ambiences.

7. PROCESSES - The manner in which the service is delivered

The processes by which services are created and delivered to the customers are an
important element of marketing mix like payment methods and waiting times. The
processes involve the procedures, tasks, schedules, mechanisms, activities and
routines by which a service is delivered to the customer. Ex. - Meal delivered within 2
minutes.

ACTIVITY 1

Think of 1 goods and 1 service that you have used in the past
24 hours & write it down. Respond to the following questions
for EACH:
 Name of the goods/services?
 How did you find out about these goods/services?
 Where did you obtain these goods/services?
 How much did these goods/services cost?

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 ACTIVITY - 2

 Pick a random consumer product company and analyze its

marketing, advertising, promotion and selling strategies.

 In teams of 2:

 Out of the 4 P’s of the Marketing Mix, provide 2 examples

for each P

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