Infrastructure University: Marketing, Customer Value, Product and Price Strategy, New Marketing Offerings, Global Marketing

1. Himalayan College of Management
MBA 1st
Semester
Marketing Management MKTG 5210
Course Content Outline
2021
Chapter 1: Defining marketing for the 21st century and developing marketing strategies and
plans.......................................................................................................................................... 2
Chapter 2: Gathering information and scanning the environment and conducting marketing
research and forecasting demand.............................................................................................. 6
Chapter 3: Creating customer value, satisfaction, loyalty and analyzing consumer markets....... 8
Chapter 4: Analyzing business markets and identifying market segments and targets. .............12
Chapter 5: Creating brand equity and crafting brand positioning ...............................................20
Chapter 6: Setting product strategy...........................................................................................24
Chapter 7: Developing pricing strategies and programs............................................................27
Chapter 8: Designing and managing integrated marketing communications .............................29
Chapter 9: Managing mass communications: advertising, sales promotions, events and public
relations. Managing personal communications: direct marketing and personal selling. .............39
Chapter 10: Introducing new market offerings...........................................................................40
Chapter 11: Tapping into global markets and managing a holistic marketing organization ........41
Exam Questions and Solutions .................................................................................................43

2. Chapter 1: Defining marketing for the 21st century
and developing marketing strategies and plans
The importance and scope of marketing
Importance of Marketing
1. It informs:
On a base level, marketing is useful for customer education. Sure, you know the ins-
and-outs of your product but do your consumers? In order to buy into a product, your
audience needs to have a solid understanding of what it does and how it works.
According to Creativs, marketing is the most effective way to communicate your value
proposition to your customers in a fun and interesting way. If consumer education is on
your priority list then marketing should be too.
2. It equalizes:
Modern marketing is a less expensive game than ever before. Social media platforms
and email campaigns have made reaching out to consumers a much more finance-
friendly possibility. For SMBs, smart marketing can help even the playing field when it
comes to competing against big name competitors, explained Business 2 Community
contributor La Mancha Sims. In fact, marketing may even give SMBs a leg up. Due to
the smaller nature of their businesses, SMB leaders often have much more time to pay
attention to every client individually via the various marketing platforms. Modern
consumers value experience over pricing, so this kind of one-on-one interaction could
push customers in your direction over bigger brands.
3. It sustains:
According to Forty, marketing is more like food than it is medicine. Essentially, marketing
is meant to sustain a company’s presence – not remedy a lack of engagement. In this
sense, marketing is something that businesses need to create and manage every day to
maintain a healthy relationship with their consumers. Marketing is important because it
allows businesses to maintain long-lasting and ever-present relationships with their
audience. It is not a one-time fix, it is an ongoing strategy that helps businesses flourish.
4. It engages:
Customer engagement is the heart of any successful business – this is especially true
for SMBs. Marketing solves the question of how to keep a conversation going once your
customer has walked out the door. In the past, face-to-face interactions made up much
of B2C engagement. You walk in the pizza shop, talk to the hostess, laugh with the
waiter, wave hello to the owner etc. While that in-person engagement is still alive and
well, it’s no longer enough. Consumers want to be engaged outside the store. This is
where marketing comes in, and whatever the medium, you can send your customers
content to keep them engaged beyond store hours. Your audience wants to form a
relationship with your brand, and marketing can be used to do just that.

3. 5. It sells:
Marketing is important because it helps you sell your products or services. The bottom
line of any business is to make money and marketing is an essential channel to reach
that end goal. Creative explained that without marketing many businesses wouldn’t exist
because marketing is ultimately what drives sales. Sure, you need to have a good
product but if people don’t know about your offerings to begin with then how can you
generate sales? Put simply: You can’t. SMBs need to create fresh and inviting content to
draw customers in and lead them to a purchase. Marketing helps sales and sales help
your business – what more could you ask for?
6. It grows:
Marketing is an important strategy to ensure the growth of your business. While your
current customers should always be your main priority, marketing efforts can help you
expand this base. Little efforts like social media posts and email campaigns can not only
engage existing consumers but spread the word to new potential customers. In essence,
marketing secures your business’s future through new and old customer engagement.
Scope of Marketing: 7 Major Scope of Marketing
1. Everything you need to know about the nature and scope of marketing. What is all
covered in marketing is considered as the scope or area of marketing.
2. Marketing has a very wide scope. It covers all the activities from conception of ideas to
realization of profits.
3. Marketing is pervasive in scope; any type of entity which is of value to a market segment
can be marketed.
4. The scope of marketing is determined by the marketing offering of an organization.
Market offering is a combination of goods, services, ideas, persons, places, information,
etc. offered to a market to satisfy specific needs and wants of people.
5. Market offerings are not limited to physical goods. They also include services like
banking, air travel, hotel stay, tourism, etc. which are not tangible in nature and can’t be
owned by the buyers.
6. In this article we will discuss the scope of marketing. Learn about the areas, aspects and
entities covered in marketing.
7. Also learn about the scope of marketing as suggested by international institutes like, U.
K. Institute of Marketing and American Marketing Association.
The new marketing realities
1. Globalization
Globalization is a primary process of integration and interaction among companies,
people and governments of different countries. It is a force that is driven by global trade
and investment and supported by advanced information technology.

4. 2. Technology
Development of technology is one of the major forces that are driving new realities in
today’s market. There is a significant revolution in digital technology. This revolution in
technology has developed an information era, which commits to direct to more precise
levels of manufacturing and production, more targeted interactions and more appropriate
and competitive pricing.
In marketing, technology is defined as a medium that assists the marketers circulate
his/her deliverables to the end users. The best result of bringing in technology has been
innovation[4]. This technology has been vibrant throughout right from the television
advertisement to internet marketing. Technology is the major factor that assists the
organization and marketers in generating new company capabilities like; they can utilize
the internet as a most strong channel for information and sales. They can gather the
information about the customers, prospects, markets and competitors. Furthermore,
these marketers can tap into social media to intensify their brand message.
3. Social Responsibility
In today’s business environment, social responsibility is another force that is driving new
marketing realities, because people are becoming very concerned about the welfare of
the environment and themselves. So, the organization needs to include social
responsibility in their practices. In marketing, it is very important as it includes
emphasizing on enticing the customers, who wish to make a positive experience with
their purchases. There are so many companies, which have implemented social
responsibility strategies in the marketing process because it assists the community and
manufactures the products, which benefit the targeted society[5]. Engaging in corporate
social responsibility also offers new company capabilities, like; it will promote the brand
image and reputation of the company that can primarily affect profitability and
productivity positively.
Marketing and customer value
Customer value : customer value is the sum total of benefit that customers will accrue from a
service or product in relation to its cost.
As per marketing, customer value proposition (CVP) would be the total amount of benefits which
is offered by the seller in return for the payment made for its respective goods or services. It is a
clearly defined statement that is formulated so as to convince customers that this one particular
product or service will add more value than competitor’s product or service.

5. Corporate and business unit strategic planning
The structure of SBU consist of operating units; wherein the units serve as an autonomous
business. The top corporate officer assigns the responsibility of the business to the managers,
for the regular operations and business unit strategy. So, the corporate officer is accountable for
the formulation and implementation of the comprehensive strategy and administers the SBU by
way of strategic and financial controls.
Strategic Planning
Strategic Planning: Is a systematic process of envisaging the long term goals of an organisation
and identifying the best approach for achieving it.
Formulating effective marketing strategies requires a comprehensive understanding of the
strategic planning process. An overall understanding of the corporate policies, objectives,
business plans are imperative for this purpose.
A strategic plan defines the organization's strategy and the direction it should take. For
determining the right direction that the organisation should take, its present situation and the
possible avenues needs to be analysed. A firm needs to carry out extensive investigation into its
competencies, identify its competitive advantage, detect its weaknesses, the business that they
want to be in.
The uncertainty and risk in business environments makes it necessary for firms to focus on
competitive strategic plans. Every firm would like to have a guide-map showing directions that it
should take, rather than treading on an unknown and ambiguous path. A strategic plan provides
this guide-map by which firms can respond to entirely unexpected developments in their internal
and external environments.
Strategic plan helps keep firms well ahead of competition and to realise its mission in the long
run. The most significant decisions of the firms are taken under strategic planning.

6. Formulating a strategic plan is no easy job, it takes considerable forethought, experience and
effort to come up with an effective strategic plan. The success and growth of a firm considerably
depends on how effective and competitive its strategic plan is.
Chapter 2: Gathering information and scanning the
environment and conducting marketing research and
forecasting demand
Steps in developing marketing plan
1. Assessing the market- tools is SWOT
2. Setting objectives- smart objectives
3. Developing marketing strategies
4. Implementation plan- budgeting and forecasting
Step 1: Document Your Business Goals and Budget
Before jumping into the tactics and execution, your marketing team should ask the leadership
team to define their business goals for the next 1-3 years. Your goals can be externally focused,
internally focused, or perhaps a mix of both.
Step 2: Conduct A SWOT Analysis
Ultimately, you want marketing that provides a consistent flow of high-quality leads to help fuel
new sales opportunities and drive growth. You want your technical target audiences and
customers to be happy to hear from you and not dread it. And you have a limited budget and
tight bandwidth.
The way to achieve all of this is to use a smart marketing approach that builds a marketing
strategy and execution plan aligned to your business goals and starts with a SWOT of your
current marketing program. Document strengths, weaknesses, opportunities, and threats in
terms of your competitive position, target markets, target audiences, current
positioning/messaging, the maturity of your offerings, channel partners, etc.
Step 3: Identify Your Target Personas
You probably know the profile of your most valuable prospects and the sales process your
company uses to convert them from leads to opportunities to customers. However, as your
company grows, you won’t know each prospect’s unique situation, and one message won’t work
for all. You’ll need to customize your marketing approach by creating buyer personas.

7. Step 4: Develop Your Marketing Goals
Armed with your business strategy, areas of greatest opportunity, and defined persons, you are
now ready to create your marketing goals. Goal setting is critical to aligning your marketing
organization, narrowing your focus, and setting your overall marketing strategy.
Step 5: Build Your Activity Plan
Now that you’ve created your marketing goals and have a budget, you are ready to develop
your activity plan.The most effective way to approach turning your marketing strategy into an
execution plan is by using a campaign structure. You can think of campaigns as buckets of
activities focused on a common theme or goal.
Population And Demographics
● Population growth
● Population age mix
● Ethic markets
● Educational groups
● Household partners
● Geographical shifts
Economic environment
● Income Distribution - very low, mostly low, very low & high, low & medium, low &
medium & high, mostly high
● Consumer psychology-consumer confidence index
● Saving, debt, and credit
● Levi’s has responded to changes in income distribution by offering an upscale
line and a mass market line
Socio-Cultural Environment
1. Views of themselves
2. View of others
3. Views of organizations
4. Views of society
5. Views of nature
6. Views of universe

8. Chapter 3: Creating customer value, satisfaction,
loyalty and analyzing consumer markets
Maximizing customer lifetime value and cultivating customer
relationships.
Customer lifetime value
Customer lifetime value is the total worth to a business of a customer over the
whole period of their relationship. It's an important metric as it costs less to keep
existing customers than it does to acquire new ones, so increasing the value of your
existing customers is a great way to drive growth.
Customer perceived value is the difference between the prospective customer’s
evaluation of all the benefits and all the costs of an offering and the perceived
alternatives.
Determinants of Customer Perceived Value
● Image benefit
● Psychological cost
● Personal benefit
● Energy cost
● Services benefit
● Time cost
● Product benefit
● Monetary cost
● Total customer benefit
● Total customer cost
Steps in a Customer Value Analysis
1. Identify major attributes and benefits that customers value
2. Measure the qualitative importance of different attributes and benefits
3. Evaluate the company’s and competitor’s performances on the different customer
values against rated importance
4. Examine ratings of specific segments
5. Monitor customer values over time

9. Loyalty is a deeply held commitment to rebuy or re-patronize a preferred product or
service in the future despite situational influences and marketing efforts having the
potential to cause switching behavior.
The Value of Proposition
A value proposition refers to the value a company promises to deliver to customers should they
choose to buy their product. A value proposition is part of a company's overall marketing strategy.
The value proposition provides a declaration of intent or a statement that introduces a company's
brand to consumers by telling them what the company stands for, how it operates, and why it
deserves their business.
A value proposition can be presented as a business or marketing statement that a company uses
to summarize why a consumer should buy a product or use a service. This statement, if worded
compellingly, convinces a potential consumer that one particular product or service the company
offers will add more value or better solve a problem for them than other similar offerings will.
Measuring Satisfaction
● Periodic Surveys: Periodically surveys are conducted to gather feedback on the quality
of program delivery.
● Customer Loss Rate: The customer attrition rate is measured for a given period by
dividing the number of customers the company had at the beginning of the period by the
number of customers at the end of the period.
● Mystery Shoppers: method used by marketing research companies and organizations
that wish to measure quality of sales and service, job performance, regulatory
compliance, or to gather specific information about a market or competitors, including
products and services.
● Monitor Competitive Performance: process of monitoring all of the competition’s
moves, especially market and product prices. With this, a business can change their
prices along with the market and the competition in order to retain or gain new
customers. Holding on to prices for a long time means that competitors could already
have lowered theirs, attracting some of the business’ customers.
Quality is the totality of features and characteristics of a product or service that bear on its
ability to satisfy stated or implied needs.

10. Maximizing Customer Lifetime Value
CRM is the process of carefully managing detailed information about individual customers and
all customer touchpoints to maximize customer loyalty.
Framework for CRM
● Identify prospects and customers
● Differentiate customers by needs and value to company
● Interact to improve knowledge
● Customize for each customer
CRM Strategies
● Reduce the rate of defection
● Increase longevity
● Enhance “share of wallet”
● Terminate low-profit customers
● Focus more effort on high-profit customers
Customer Retention
● Acquisition of customers can cost five times more than retaining current customers.
● The average customer loses 10% of its customers each year.
● A 5% reduction to the customer defection rate can increase profits by 25% to 85%.
● The customer profit rate increases over the life of a retained customer.

11. The Customer Development Process
Customer databases and database marketing
Database Key Concepts
● Customer database
● Database marketing
● Mailing list
● Business database
● Data warehouse
● Data mining
Using the Database
● To identify prospects
● To target offers
● To deepen loyalty
● To reactivate customers
● To avoid mistakes
Don’t Build a Database When
● The product is a once-in-a-lifetime purchase
● Customers do not show loyalty
● The unit sale is very small
● The cost of gathering information is too high

12. Key psychological processes
The buying decision process: the five stage model
● Problem Recognition
● Information Search
● Evaluation of Alternatives
● Purchase Decision
● Post-Purchase Evaluation
Chapter 4: Analyzing business markets and
identifying market segments and targets.
Participants and stages in the business buying process
Acquiring:
It analyses the factors that influence the product choice of consumers. It includes the study of the
process through which consumers become aware of their needs and products that can satisfy the
needs, evaluation of the products in terms of end benefits and purchase actions.
Consumption:
It analyses how consumers actually use a product and the experiences the consumers obtain
from such use. It includes the study of the post-purchase satisfaction from the product's use.
Disposition:
It studies what consumers do with the product once they have completed its use
Organizational Product: For use in the operation of a business or organization. To
manufacture other products For resale to others
Consumer Product: For personal or household use
The purchasing/procurement process
Organizational Purchase
● Nature and size of customers
● Economic and technical choice criteria
● Risks

13. ● Derived demand
● Complexity of buying
● Buying to specific requirements
● Reciprocal buying
● Negotiations
Difference between Consumer and Organizational Buying or Distinctive characteristics
● Fewer organizational buyers
● Close, long-term relationship between organizational buyers and sellers
● Organizational buyers are more rational
● Organizational buying may be to specific requirements
● Reciprocal buying may be important in organizational buying
● Organizational selling/ buying may be more risky
● Organizational buying is more complex
● Negotiation is often more important in organizational buying
A Personal Consumer buys goods and services for personal, household, or for the use of a
family member, or for a friend.
Organizational Customer: a business, government agency, or other institution (profit or
nonprofit) that buys the goods, services, and/or equipment necessary for its function.
Industrial Buying Decision Process
It is also known as the organizational buying process or business buying process. Industrial
purchasing decision making involves more physical and observable stages. There are many
decision makers involved in each of the eight stages as elaborated by the buy grid framework.
Phase 1 – Need or Recognition of a problem
The purchasing /buying process begins when someone in company recognizes a problem or
need that can be met by acquiring goods or services. The common events that lead to this
phase could be – a machine break down and require replacement or new parts, company
decides to diversify or expand business, the company decides to develop new products.
Phase 2 – Description of the need
This phase involves determination of the characteristics and quantity needed of them. The
general characteristics could be reliability , durability , price etc. and the marketer along with the
purchasing manager ,engineers and users can describe the needs. The question can arise like
– what type of goods /services should be considered, what quantities should be needed, what
performance specification need to be met.
Phase 3- prepare Product specification
Obtaining the input from the second phase , the buying organization has to develop the
technical specifications of the needed items. In this phase, the product is broken down into

14. items. The specification about product and items are listed. Companies do not encourage the
supplier participation at this stage.
Phase 4 – Supplier Search
This phase pertains to the search for the qualified suppliers among the potential sources. The
marketer has to ensure that he is in the list of potential suppliers. For this to happen , he has to
make periodic visits to all potential companies and create awareness. Brochures have to be
circulated and advertisements placed in specific media like trade journals. This phase only
involves making a list of qualified suppliers.
Phase 5- Proposal Solicitation
The list of qualified suppliers are now further shortened based on some critical factors. Than the
purchasing departments ask for proposals to be sent by each supplier. After evaluations , base
on specified criteria , some firms are asked to come over for formal presentations. The proposal
must include all specification like price , delivery period , charged taxes, and so on. For
technically complex product and services , a lot of time spent in analyzing proposals in terms of
comparison on product services, deliveries and the landed cost.
Phase 6- Supplier Selection
Each of the supplier’s presentation are rated according to certain evaluation models. The buying
organization may also attempt to negotiate with its preferred suppliers for better prices and
terms before making a final decision. Various parameters like reliability , delivery ,flexibility,
price, service etc. are used for supplier selection and their rating.
Phase 7- placing the purchase Order
After the suppliers have been selected , the buyer negotiates the final order, listing the technical
specifications , the quantity needed , the expected time of delivery etc. Buyers are increasingly
moving towards Blanket contracting rather than periodic purchase orders.
Phase 8- post purchase evaluation
The final phase in the purchasing process consists of a formal or informal review and feedback
regarding product performance as well as vendor performance. The buyer may contact the end
user and ask for their evaluations which are in turn given to the supplier or he may rate the
supplier on several criteria using a weighted score method. The performance review might lead
to the buyer to continue , improve or drop a supplier

15. Market segmentation and target market
Market Segmentation
Dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviors
who might require separate products or marketing mixes.
● The company identifies different ways to segment the market.
● Market consists of buyers, and buyers differ in one or more ways.
● They may differ in their wants, resources, locations, buying attitudes and buying
practices.
● Through market segmentation, companies divide large, heterogeneous markets into
smaller segments that can be reached more efficiently and effectively with products and
services that match their unique needs.
Levels of Market Segmentation
● Mass Marketing
● Segment Marketing
● Niche Marketing
● Local Marketing
● Individual Marketing
MASS MARKETING
● Mass production, mass distribution and mass promotions about the same product in the
same way to all consumers.
● Under the mass marketing companies view the entire market as homogenous in need
and characteristics and applies same marketing mix.
● The argument for mass marketing is that it creates the largest potential market, which
leads, to the lowest costs that in turn can lead to lower prices or higher margins.
SEGMENT MARKETING
● Isolating broad segments that make up a market and adapting the marketing offer to
match the needs of one or more segments.
● The market can be approached efficiently by targeting its products or services, channels,
and communications programs towards only consumers that it can serve best and more
profitably.
● And it can also be approached effectively by fine tuning its products, prices and
programs to the needs of carefully defined segments.

16. NICHE MARKETING
● Focusing on sub-segments or niches with distinctive traits that may seek a special
combination of benefits.
● Niche provides opportunity to serve customer in better way and probably have less
competition.
● Niche marketers aim to understand their customer's need so well that the customers
willingly pay a premium.
● For example, if you sell sports cars, then you may find that your global target market is
males from the ages of 18 to 55. But, within that global segment, you have niches of
consumers that prefer red cars, cars with leather seats and cars with racing pinstripes.
LOCAL MARKETING
● Brands and Promotions being tailored to the needs and wants of local customer groups
in trading areas, neighborhoods, even specific stores. E.g. Retail branches of banks,
local language promotional schemes etc.
● Local marketing reflects a growing trend called grassroots marketing.
● If you find that the majority of the consumers in the red sports car niche mentioned
above are located in the eastern side of nepal, then your billboards and magazine
advertising will feature red sports cars and you will try to stock as many red sports cars
in that geographic region as possible.
INDIVIDUAL MARKETING
● Ultimate level of segmentation; customized marketing.
● Tailoring products and marketing programs to the needs and preferences of individual
customers.
● Customization is certainly not for every company. Difficult for complex products; raise
the cost of goods; some customers even may not know what they really want in the
product.
Effective Segmentation Criteria
Measurable:
Information on the buyer’s needs and wants should be obtainable and measurable like age,
income level, life style. However, some of the variables may not be measurable in absolute term
like desires, attitudes, preferences etc.
Accessible:
Market segment should be accessible through existing marketing institutions such as, channels
of distribution and advertising media and the sales force.
Substantial
The market segment should be large or profitable enough to serve.
Differentiable
Market must have significant difference in the buyer’s need and characteristics.
Actionable

17. The market segment should have environment and opportunity to design an effective programs
for attracting and serving the customer needs.
Bases of Segmentation
1. Demographic
○ Age
○ Income level
○ Family
○ Education
2. Geographic
○ Region
○ Size of metropolitan area
○ Population density
○ Climate
3. Behaviour/Usage
○ Occasion,
○ benefit(functional or emotional)
○ User status(regular user, first time user, ex user, potential user, non-user),
○ user rate, loyalty status(hard core, split, shifting, switcher)
○ buyer readiness stage(unaware of the product, some are aware, some are
informed, some are interested, some desire the product, and some intend to buy)
○ Attitude
4. Psychographic
○ Social class

18. ○ Lifestyles
○ Psychological characteristics
Advantages of Segmentation
● Focus of the Company
● Increase in competitiveness
● Market expansion
● Increases profitability
Disadvantages of Segmentation
● Segments are too small
● Consumers are misinterpreted
● There are too many brands
● Costing is not taken into consideration
Market Targeting
Evaluating and Selecting the Market Segments
The company must collect and analyze data on current segment sales, growth rates, and
expected profitability for various segments.
● Segment size and growth
● Segment structural attractiveness
● Competitor
● Substitute product
● Power of buyer
● Power supplier
● Company’s objective and resources
After evaluating different segments, the company can consider five patterns of target market
selection.
1. Single-segment concentration
produces a typical product for a single type of market like Royal Enfield. The company
may adopt this strategy if it has strong market position, greater knowledge About
Segment-specific-needs, specified reputation and probable leadership position.
2. Selective specialization
If the company X produces plasma TV as well as Walkman, the two different types of
products obviously for two different types of markets
3. Product specialization
company X produces only a particular type of toaster that is consumed by all type of
people, they we can say that the company uses Product Specialisation strategy.
4. Market specialization

19. The company X can implement Market Specialisation strategy by producing all sorts of
home appliances like TV, washing machine, refrigerator and micro oven for middle class
people
5. Full market coverage
a. Undifferentiated marketing or convergence:
The company ignores market segment differences and goes after the whole
market with one market offer. It focuses on a basic buyer need rather than on
differences among Buyers.
b. Differentiated marketing or divergence:
The company operates in several market segments and designs different
programmes for each segment. It creates more total sales than the former.
In carbonated soft drink market, Coca-Cola follows Full Market Coverage
approach to their product-market matrix. They have Thums-Up, Coca-Cola,
Limca, Sprite, Fanta that are different tastes and are consumed by different types
of people and even in mineral water (KINLEY)
Additional Consideration
Two other considerations in evaluating and selecting segments are segment-by-segment
invasion plan and ethical choice of market targets.
1. Segment-by-segment invasion plan
It is wiser to enter into the one segment at a time. Having long-term invasion strategy will
be more beneficial and competition will also feel less vulnerable from the strategy. Under
this strategy, the marketer takes cautious move from one segment to another on a
gradually and strategically.
2. Ethical choice of market targets
Market targeting generates public controversy. The public is concerned when marketers
take unfair advantage of vulnerable groups or promote potentially harmful products.
Marketers must target segments carefully to avoid consumer backlash (adverse
reaction).
While targeting some customers groups may have ethical problem (cigarette adv
targeting to youth, moreover students).
Types of positioning
● Attribute positioning(size, color, taste, speed, durability)
● Benefit positioning(Brightening teeth, freshening breath)
● User positioning( high, low, middle)
● Usage positioning(breakfast and dinner …medicines)
● Competitive positioning(quality, utility, price)
Positioning Statement first states the product’s membership in a category (wireless
connectivity solution) and then shows its point of difference from other members of the category
(easier, more reliable connections to data, people, and resources). Placing a brand in a specific

20. category suggests similarities that it might share with other products in the category. But the
case for the brand’s superiority is made on its points of difference.
Process of segmentation
1. Identify market segments
2. Develop profile of each segments
3. Evaluate market segments
4. Select target market
5. Developing a positioning strategy
6. Establishing a marketing plan program
Marketing Lessons to learn from Apple
1. Less Is More
2. Product Placement
3. Leverage reviews (User Experience )
4. Focus on unique value proposition not price
5. State Your Core Values
6. Give Your Customers An Experience
7. Use Simple Language & Less Jargons
8. Mystery Is Everything
9. Appeal to emotions
10. Visual Effects
Chapter 5: Creating brand equity and crafting brand
positioning
Brand
A brand is a name, term, sign, symbol or design, or a combination of them, intended to identify
the goods or services of one seller or group of sellers and to differentiate them from those of
competitors.
The Role of Brands
1. Identify the maker
2. Simplify product handling
3. Organize accounting

21. 4. Offer legal protection
5. Signify quality
6. Create barriers to entry
7. Serve as a competitive advantage
8. Secure price premium
Branding
Branding is awarding products and services with the power of the brand.
Branding Equity
Brand equity is the added value endowed on products and services, which may be reflected in
the way consumers think, feel, and act with respect to the brand.
Branding Promise
A brand promise is the marketer’s vision of what the brand must be and do for consumers.
Steps in strategic brand management
1. Identifying and establishing brand positioning
2. Planning and implementing brand marketing
3. Measuring and interpreting brand performance
4. Growing and sustaining brand value
Drivers of Brand Equity
1. Brand Elements
2. Marketing Activities
3. Meaning Transference
Crafting Brand Positioning
Positioning is the act of designing the company’s offering and image to occupy a distinctive
place in the mind of the target market.
Brand Elements
1. Brand Names
2. Slogans
3. Logos
4. Symbols
5. Characters
6. URLs
7. Elements

22. 8. Symbols
9. Colors
Brand Element Choice Criteria
● Memorable
● Meaningful
● Likeability
● Transferable
● Adaptable
● Protectible
Product Differentiation
1. Product form
2. Features
3. Performance
4. Conformance
5. Durability
6. Reliability
7. Reparability
8. Style
9. Design
10. Ordering ease
11. Delivery
12. Installation
13. Customer training
14. Customer consulting
15. Maintenance
Measuring Brand Equity
● Brand Audits => Value of brand
● Brand Tracking => Let taste without showing packaging
● Brand Valuation =>

23. Claims of product life cycles
1. Limited life
2. Profits rise and fall at different stages
3. Pass through distinct stages each with different challenges and opportunities
4. Require different strategies in each life cycle stage
5. Style, Fashion, Fad life cycle
a.

24. Ways to increase sales volume
● Convert nonusers
● Enter new market segments
● Attract competitors’ customers
● Have consumers use the produce on more occasions
● Have consumers use more of the product on each occasion
● Have consumers use the product in new ways
Marketing Program Modifications
Prices
Distribution
Advertising
Sales promotion
Services
Market Evolution Stages
1. Emergence
2. Growth
3. Maturity
4. Decline
Chapter 6: Setting product strategy
Product
Product is critical element of marketing mix;
Anything that can be offered to a market for attention, acquisition, use or consumption and that
might satisfy a want or need.
Physical object, service, person, place, organization, idea
Product is the set of tangible and intangible attributes including packaging color, price, quality
and brand plus the service and reputation of the seller.
A product may be a tangible goods, services, place, person or idea
Level of Product

25. 1. Core Product:
a. Provides basic service
b. Service or benefit the consumer is actually buying
c. Eg: Sleep and rest in case of a hotel guest
2. Basic Product
a. Represents the qualities of the product
b. Provide primary services
c. Service or benefit is given more tangibility
d. Eg: Hotel room includes bed, towel, desk, etc.
3. Expected Product
a. Attributes and conditions buyers usually expect
b. Eg: Clean room, fresh towels, etc.
4. Augmented product
a. Additional service
b. Exceed expectation
Note
c. Augmentation adds to cost
d. Soon becomes expectation
5. Potential product

26. Product characteristics and classification
● On the basis of product characteristics
○ Durable: Tangible goods that survive many uses, Require more personal selling
and service, Higher margins and requires seller guarantee
○ Non durable: Tangible goods consumed in one or few uses, Purchased
frequently, Strategy : availability , low priced , heavily advertised
○ Service- intangible product, Requires more quality control and credibility
● On the basis of type of buyers and product use
○ Consumer goods
○ Industrial goods
Consumer product classification
● Marketing consideration for convenience products: Those products which are
brought frequently and are low price are convenience products. These products can be
found easily in the market which means it has many purchase locations. This includes
staple goods, emergency goods, impulse goods.
○ Advertisement, very aggressive and attractive
○ Retailer should be in convenient location
○ Better product display
○ Wider distribution network
○ Attractive packaging
○ Regularity in supply
○ Short and memorable brand name
● Market consideration of shopping products: Those products which are brought less
frequently and are compared for sustainability & quality and price & style. These
products have fewer purchase locations and people gather information before
purchasing.
○ Retailers should be carefully chosen as retailer have a role to play in these
purchase
○ Few retailers as per accessibility of consumers
○ Provide periodical information about the product as customers do not have
always access to information about these products
○ Proper display of product
○ Reputable, memorable, attractive and easily pronounceable store name
○ Improve quality rather than packaging
● Market consideration Speciality product: Products with unique characteristics and
brand identification are specialty products. Purchase locations are very limited
○ Limited distribution channel and marketing manager should have information
about quality, packaging, discount and new marketing strategy about these
products

27. ○ Collaborative ads
○ Important role of retailer
○ Packaging is not given importance
○ Provide after sale service
○ POP display should be managed
○ Brand name should be attractive and memorable
● Market consideration UNSOUGHT product: Innovative product which consumer can’t
think about is unsought product. Requires much advertising and personal selling
○ Direct distribution channels should be used
○ Advertising and personal selling should be used
○ Premium pricing
○ Packaging should be suitable and brand name should not be similar
Product and brand relationship
Packaging, labeling, warranties and guarantees.
Chapter 7: Developing pricing strategies and
programs
Understanding, setting and adapting the price
Common Pricing Mistakes
● Determine costs and take traditional industry margins
● Failure to revise price to capitalize on market changes
● Setting price independently of the rest of the marketing mix
● Failure to vary price by product item, market segment, distribution channels, and
purchase occasion
Consumer Psychology and Pricing
● Reference Prices
● Price-quality inferences
● Price endings
● Price cues
When to Use Price Cues
● Customers purchase item infrequently
● Customers are new
● Product designs vary over time

28. ● Prices vary seasonally
● Quality or sizes vary across stores
Steps in Setting Price
1. Select the price objective
2. Determine demand
3. Estimate costs
4. Analyze competitor price mix
5. Select pricing method
6. Select final price
Price-Adaptation Strategies
● Geographical Pricing
● Discounts/Allowances
● Differentiated Pricing
● Promotional Pricing
Price-Adaptation Strategies
● Countertrade
○ Barter
○ Compensation deal
○ Buyback arrangement
○ Offset
● Discounts/ Allowances
○ Cash discount
○ Quantity discount
○ Functional discount
○ Seasonal discount
○ Allowance
Initiating and responding to price changes
Promotional Pricing Tactics
● Loss-leader pricing
● Special-event pricing
● Cash rebates
● Low-interest financing
● Longer payment terms
● Warranties and service contracts
● Psychological discounting
Differentiated Pricing
● Customer-segment pricing

29. ● Product-form pricing
● Image pricing
● Channel pricing
● Location pricing
● Time pricing
● Yield pricing
Increasing Prices
● Delayed quotation pricing
● Escalator clauses
● Unbundling
● Reduction of discounts
Brand Leader Responses to Competitive Price Cuts
● Maintain price
● Maintain price and add value
● Reduce price
● Increase price and improve quality
● Launch a low-price fighter line
Chapter 8: Designing and managing integrated
marketing communications
Integrated Marketing Communications
Promotional function was dominated by mass media advertising.
Relied on ad agency for mass media and for other activities like SP, DM, Publicity as well as
package designing considered as auxiliary services and often used on a per-project basis.
Many marketers treat various marketing and promotional functions as separate practices but to
have effective communication, all tools must be coordinated and present a consistent image to
target markets.
Importance of IMC
● The IMC approach to marketing planning and strategy is being adopted by both large
and small companies and has become more popular.
● By coordination, companies can
○ Avoid duplication
○ Have synergy among promotional tools
○ Develop more efficient and effective marketing communication programs.

30. ● IMC approach is the ongoing revolution that is changing the rules of marketing and the
role of the traditional ad agencies. The major characteristics of this marketing revolution
include:
The major characteristics of this marketing revolution include:
1. A shifting of media advertising to sales promotion activities.
2. Target customer oriented from mass media (e.g. event marketing and sponsorship,
direct mails, sales promotion, internet etc.)
3. A shift in marketplace power from manufacturer to retailers.
4. The rapid growth and development of database marketing
5. Demand for greater accountability for advertising agencies and changes in the way
agencies are compensated. (incentive based compensation linked to sales volume &
profitability.)
6. The use of the Internet in business and communication.
The Promotional Mix: The tools of IMC /structure of Promotion world
Promotion has been defined as the coordination of all seller-initiated efforts to set up channels
of information and persuasion to sell goods and services or promote an idea.
Promotional Mix – tools used to accomplish an organization’s communication objectives.
Advertising, sales promotion, public relation and personal selling were 4 elements traditionally
and direct marketing and internet marketing has been considered in this text.

31. Advertising
Any paid form of non-personal
communication about an organization,
product, services, or idea by an identified
sponsor.
● Is non-personal, one way
communication.
● Can reach masses of geographically
dispersed buyers.
● Can repeat a message many times.
● Cost effective for a large audience
but it can be very costly for some media
types.
● Can be used to create brand image
● It has the ability to strike a
responsive chord with consumers. Popular
advertising campaigns attract consumers’
attention and can help generate sales.
Direct Marketing
Organizations communicate directly with target
customers to generate a response and/or a
transaction.
It involves a variety of activities, including
database management, direct selling,
telemarketing, and direct-response ads through
direct mails, internet and various broadcast and
print media.
Many forms that share four primary
characteristics:
1. Nonpublic
2. Immediate
3. Customized
4. Interactive
Well suited to highly targeted marketing.

32. Personal Selling
“Everyone lives by selling something.”
Selling is one of the oldest professions.
Selling is a personal presentation by the
firm’s sales force for the purpose of
making sales and building customer
relationships.
Personal selling is a form of person-to –
person communication in which a seller
attempts to assist and/or persuade
prospective buyers to purchase the
company's product or service or to act on
an idea.
Sales Promotion
Sales promotion is those marketing
activities that provide extra value or
incentive to the sales force, distributor, or
the ultimate consumer and stimulate
immediate sales.
Consumer promotion
● Increase short-term sales
● Help build long-term market share
● Generate product trial
Trade promotion
● Persuade resellers to carry a brand.
● Give a brand shelf space.
● Promote brands in advertising.
● Push brand to customers.
Business promotion
● Generate business leads.
● Stimulate purchases.
● Reward customers.
● Motivate salespeople.
Promotion and sales promotion are different terms.

33. Publicity/Public Relations
Publicity refers to non-personal communications
regarding an organization, product, service, or idea
not directly paid for or run under identified
sponsorship.
Techniques include press releases/conferences,
news, feature articles, photographs, and short films.
Public Relation is the management function which
evaluates public attitudes, identifies the policies and
procedures of an individual or organization with public
interest, and executes a program of action to earn
public understanding and acceptance.
Tools: special publications, participation in community activities, sponsorship of special events,
fund raising, various public affair activities.
Public Relations/Publicity
Publicity refers to non-personal communications
regarding an organization, product, service, or idea not
directly paid for or run under identified sponsorship.
Techniques include press releases/conferences, news,
feature articles, photographs, and short films.
Public Relation is the management function which
evaluates public attitudes, identifies the policies and
procedures of an individual or organization with public
interest, and executes a program of action to earn
public understanding and acceptance.
Tools: special publications, participation in community activities, sponsorship of special events,
fund raising, various public affair activities.

35. OBJECTIVES OF ADVERTISING
1. Informative advertising: Promotion that seeks to develop initial demand for a good,
service, organization, person, place, idea, or cause.
2. Persuasive advertising: Promotion that attempts to increase demand for an existing
good, service, organization, person, place, idea, or cause.
3. Reminder advertising: Advertising that reinforces previous promotional activity by
keeping the name of a good, service, organization, person, place, idea, or cause before
the public.
4. Advertisers: coordinate advertising objectives with the product’s stage in the product
life cycle.
ADVERTISING STRATEGIES
Advertising is a means of bringing buyers and sellers together. Marketers often combine several
strategies to meet their objectives.
1. COMPARATIVE ADVERTISING: Comparative advertising is a marketing strategy where
a company shows that its product or service is better than the product or service of its
competitors. A comparative advertisement is comparing the costs and benefits within the
advertisement itself. Comparative Adv. is widely used as a persuasion tool. Marketers
use this type of advertising to convince people that their product is the best choice. This
type of advertising can be either direct or indirect. Direct comparative advertisements
identify a competitive brand by name and will describe the advertised brand being better
than the competing brand. The picture below is an example of a direct comparative
advertisement.
2. CELEBRITY TESTIMONIALS: Celebrity testimonial is the celebrities themselves
vouching for the product by giving testimonials about it. The products or services are
promoted through the help of the fame of the celebrities.
a. Use of celebrity spokespeople for products.
b. Can build brand equity but can hurt a brand if a celebrity is hit by scandal.
3. RETAIL ADVERTISING: Retail Advertising refers to advertising for the retail business,
in connection with the private business of branches. Furthermore, the designation Retail
is used also in the tourism and banking industry.Includes all advertising by retail stores
that sell goods or services directly to the consuming public.
4. INTERACTIVE ADVERTISING: Involves two-way promotional messages transmitted
through communication channels that induce message recipients to participate actively
in the promotional effort.Changes balance between marketers and consumers.

36. Advertising Appeal
Advertising appeals are designed in a way so as to create a positive image of the individuals
who use certain products. Advertising agencies and companies use different types of
advertising appeals to influence the purchasing decisions of people.
5 types
1. Rational
2. Emotional
3. Moral
4. Direct
5. Indirect
Rational Appeal
The functional benefits of a product are highlighted. Industrial buyers are most responsive to
rational appeal. This is a generally oriented appeal.
Types:
1. High quality appeals
2. Low price appeals
3. Long life appeals
4. Performance minted appeals
5. Ease to use oriented appeals
Moral Appeal
These appeals are for audiences which appeal to their sense of right and wrong. This appeal
mainly focused on prohibiting adult literacy, social forestry, anti smuggling, consumer protection
etc.
Social Appeal
Social factors cause people to make purchases and include such aspects as recognition,
respect, etc
Humor Appeal
Humor is an element that is used in around 30% of the advertisements. Humor can be an
excellent tool to catch the viewer’s attention.
Indirect Appeal
Music Appeal
Music can be used as types of advertising appeals as it has a certain intrinsic value and can
help in increasing the persuasiveness of the advertisement.

37. Sales Promotions
Types
1. Trade promotions
a. Slotting Allowances – cash paid to retailer for the costs of placing on shelves
b. Buying Allowances – price discounts by manufacturer to the retailer
c. Trade shows and conventions
d. Sales incentives – rewards for selling products
2. Consumer Sales promotions
a. Premiums – low cost items given to customers at a discount or for free
b. Include:
i. Coupons – individual or program
ii. Factory packs or in-packs – free gifts placed inside package
iii. Traffic builders – giveaways to come to a special event
3. Incentives
a. Higher priced items earned and given out through contests
b. Include:
i. Sweepstakes
ii. Rebates
4. Product Samples
a. Free trial size of a product
b. Get at:
i. Mall
ii. Door to door
iii. Mail
iv. In store or trade show
v. Magazine
5. Promotional Tie-Ins
a. Arrangement with other manufacturer to create additional sales for both parties
b. Examples:
i. Happy Meals
ii. Ford F150 Harley Davidson Edition
6. Product placement
a. Feature a product in TV shows or movies
b. Example:
i. Burger King Western Burger and The Apprentice
7. Loyalty Marketing Programs
a. Reward customer for making multiple purchases
b. aka Frequent Buyer Programs
c. Examples:
i. Coffee Cards
ii. Frequent Flyer Miles

38. Strategy of sales promotion
Push Strategy
Producer directs its marketing activities toward channel members to induce them to carry the
product and promote it to the final consumers.
Pull Strategy
Producer directs its marketing activities toward final consumers to induce them to buy the
product

39. Chapter 9: Managing mass communications:
advertising, sales promotions, events and public
relations. Managing personal communications: direct
marketing and personal selling.
Categories of New Products
● New-to-the-world
● Cost reductions
● New product lines
● Additions
● Improvements
● Repositionings
Seven Notions of Innovation
1. See the future through the eyes of your customer
2. Intellectual property and brand power are key assets
3. Use digital technology to create tools for customers
4. Build a championship team
5. Innovation is a state of mind
6. Speed is critical, so push your organization
7. Partner up if you’re not the best
Factors That Limit New Product Development
● Shortage of ideas
● Fragmented markets
● Social and governmental constraints
● Cost of development
● Capital shortages
● Faster required development time
● Shorter product life cycles

40. Chapter 10: Introducing new market offerings.
The New Product Development Decision Process
● Idea generation
● Idea Screening
● Concept Development and Testing
● Marketing strategy development
● Product development
● Test marketing
● Commercialization
Adoption
Adoption is an individual’s decision to become a regular user of a product.
● Stages in the Adoption Process
● Awareness
● Interest
● Evaluation
● Trial
● Adoption

41. Chapter 11: Tapping into global markets and
managing a holistic marketing organization
Global Firm
A global firm is one that operates in more than one country and captures R&D, production,
logistical, marketing, and financial advantages in its costs and reputation that are not available
to purely domestic competitors.
Deciding how to enter the global market
1. Deciding where to go
2. Deciding which markets to enter
3. Deciding how to enter
4. Deciding on the marketing program
5. Deciding on the marketing organization
Four Stages of Internationalization
1. No regular export activities
2. Export via independent agents
3. Establish sales subsidiaries
4. Establish production facilities abroad
Regional Free Trade Zones
1. European Union
2. NAFTA
3. APEC (Organization of the Petroleum Exporting Countries)
4. ASEAN
Desired CountryCharacteristics for Market Entry
● Rank high on market attractiveness
● Rank low in market risk
● Possess a competitive advantage
Five Modes of Entry into Foreign Markets
1. Indirect Exporting
2. Direct Exporting
3. Licensing
4. Joint Ventures
5. Direct Investment
Commitment, Risk, Control, Profit Potential 1 -> 6 increases

42. Trends in marketing practices
Presentation Guidelines
1. Choose Product /Service in Market
2. Meaning of logo/ Name (Brand Element)
3. How it started in Market
4. Product ( Product line and others )
5. STP
6. Pricing Strategies (Penetration or skimming )
7. Promotion strategies
8. Advertising Theme (New advertisement Materials )
9. Future Plan of product line extension
What Marketing Aspects Might Be Adapted for International Marketing?
1. Product features
2. Labeling
3. Colors
4. Materials
5. Sales promotion
6. Advertising media
7. Brand name
8. Packaging
9. Advertising execution
10. Prices
11. Advertising themes
Internal marketing
Cultural Dimensions
1. Individualism vs collectivism
2. Masculine vs Feminine
3. High vs low power distance
4. Weak vs strong uncertainty avoidance
Price Choices
● Set a uniform price everywhere
● Set a market-based price in each country
● Set a cost-based price in each country

43. Socially responsible marketing
Global Organization Strategies
● World as single market
● Multinational
● “Glocal”
Exam Questions and Solutions