BBA -Marketing Management, for 1st and 2nd years.

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MARKETING MANAGEMENT (BBA331)
Acknowledgements
Don’t ever take this Subject for granted.
~Me

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Module 1: Understanding Markets & Marketing Process
Marketing
A management process through which goods & services move from concept to consumer.
It deals with identifying & meeting human and social needs.
The process of identifying, anticipating and satisfying customer requirements profitably.
Scope of Marketing
Marketing involves 10 entities. They are-
• Goods: refers to the physical, tangible merchandise which constitutes the bulk of most
countries’ production followed by marketing efforts. Goods involve food, clothing,
housing and other commodities.
• Services: refers to the intangible products mostly performed by professionals. Most
markets have a variable mix of goods and services. Examples of services include
banking, lawyers, airlines, repairs etc.
• Experiences: A combination of Goods & Services provides an experience (Stage &
Market) to the customer. E.g. Disney World.
• Events: Time based events such as Olympics and other shows are promoted.
• Persons: Celebrity marketing promoting people.
• Places: Tourist attractions that bring importance to history and heritage.
• Properties: Consists of either real property or financial property.
• Organisations: Organisations build an image for the purpose of marketing to the
public.
• Information: Marketing of information is done by institutions, books, cd and other
instruments.
• Ideas: Ideas are implemented through the products and services in the market.
Core Marketing Concepts
Basic Needs: these include Food, Air, Water and Shelter.
Wants: the desire for products or services that are not necessary, but which consumers wish
for.
Demands: the quantity of a good or service that consumers and businesses are willing and able
to buy at a given price in a given time period.

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STP: Segmentation, Targeting and Positioning. It demonstrates the links between an overall
market and how the company choses to act in that market.
Offerings: An offering is more than the product itself and includes elements that represent
additional value to the customers.
Brands: an offering from a known source. A name, symbol or design that identifies and
differentiates a product from other products.
Value & Satisfaction: the amount of benefits a consumer gets from purchasing the product.
Marketing Channels: the people, organisation and activities necessary for transferring the
good from the point of production to consumption.
Supply Chain: the sequence of processes involved in the production and distribution of a
commodity.
Competition: the rivalry between companies selling similar products and services with the
goal of achieving revenue, profit, and market-share growth.
Marketing environment: the internal & external factors of a business that influence its
marketing decisions.
Marketing planning: the process of making a plan to achieve marketing objectives.
Marketing Management
“Marketing Management is the analysis, planning, implementation and control of programmes
designed to bring about desired exchanges with target markets for the purpose of achieving
organisational objectives.”
~Philip Kotler
“The management process responsible for identifying, anticipated and satisfying customer
requirements profitably.”
~Chartered Institute of Marketing
The process of management of marketing programmes to achieve organisational objectives.
Marketing Management Philosophies
The philosophies are those that direct the marketing operation of organization. It guides the
marketer to plan and implement their activities. The various Marketing Management
Philosophies are-
• Production Concept: One of the oldest concepts. Consumers prefer products that are
widely available and inexpensive. In this concept, managers prefer to achieve high

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production efficiency, low cost and mass distribution. There’s more focus on the
product rather than its feature. Used for market expansion.
• Product Concept: States that consumers prefer products that offer the most quality,
performance or innovative features. Managers focus on improvising the product hoping
that consumers will prefer products of a superior quality. This concept however leads
to marketing myopia.
• Selling Concept: States that when left alone, consumers will not buy much of the
product. Hence, aggressive selling and promotion must be done to ensure that
consumers buy more of the product. The concept is more focused towards goods which
consumers normally do not think of buying. This concept leads people to believing that
marketing involves just selling and advertising. Hard selling carries high risks.
• Marketing Concept: Evolved in 1950s. It states that in order to achieve organisational
objectives and surpass competition, the business must create, deliver and communicate
customer value to the chosen target markets. Hence, it brings the difference between
selling and marketing. Selling is concerned with converting goods and services to cash.
Marketing is concerned with satisfying the needs of the customer through the products
and services offered. The marketing concept rests on 4 pillars- target market, customer
needs, integrated market and profitability.
• Societal Marketing Concept: not only does a firm deliver consumer satisfaction but also
ensures the well-being of the society. The societal marketing concept calls upon
marketers to build social and ethical considerations into their marketing practices. They
have to take decisions between consumer satisfaction and public interest.
Holistic Marketing
This concept is an integration of Marketing Concept and Societal Marketing Concept. The
holistic marketing concept is based on the implementation of marketing programs that
reorganises the breadth and interdependency of the firm. The concepts under Holistic
Marketing are-
• Relationship Marketing: aims to build mutually satisfying long-term relations with key
parties namely customers, channels and partners.
• Integrated Marketing: integration of marketing programs to create, communicate and
deliver value to customers.
• Internal Marketing: every member within an organisation is a marketer.
• Performance Marketing / Social Responsibility Marketing
Red Ocean Strategy: cut-copy-paste
Blue Ocean Strategy: pure creativity & innovation

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Changes in Business & Marketing
The changes in business are as follows-
• Change in customer needs. New, better & cheaper products.
• New technologies.
• Increase in skill requirement.
• New laws regarding minimum wage and working hours.
• Decrease in reliability of sources of raw material.
• Increase in competition.
• Customization
• Globalization
• E-commerce
The changes in Marketing are as follows-
• Sole focus on Customer: customers more interested in use than ownership, demand for
personal services, rise in tastes & preferences, growth in teenage-young adult market.
There is no such thing called average customer.
• Popularity of Market Research: determines the wants, needs, the right channel etc.
• Use of Technology: use of data analytics for sales performance, taking down orders &
inventories, notes down trend patterns.
• Increase in Test Marketing: To note down cost & investment, to improve product life
span, for profitability.
• Improvement in Field Selling: More than just presentation. Selling products according
to season, maintaining stock, training retail clerks, in-store promotions, tie-ups etc.
• Global Market Planning: Expansion to new markets worldwide.
Characteristics of New Economy
The characteristics of the new economy are as follows-
• More options for production: how to access such techniques. (outsourcing)
• Chances to create new markets: opportunities everywhere.
• Small firms can think big: expansion
• A level playing field: opportunities are available to everyone.

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• Networks are important: to have a good understanding of the market.
• Culture is no constraint: firms should neither be culture-blind nor culture-bound.
• Regionalisation, not Globalisation: most companies follow regionalisation.
Competition in Today’s Marketing
The barriers to enter new markets have lowered. Easy access to venture capitals. Rise in
Entrepreneurship. Use of IP, technology. Study of the practices of other firms. Establishment
of online businesses. Bringing out uniqueness rather than copying other strategies. Focusing
and targeting the weaknesses of others.
Examples for Cases: Barnes & Noble vs Amazon (Kindle)
Moriz vs Apoorva (ignore this, it’s a local example)
Emerging Markets in the Third World

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Module 2: Marketing Mix
Marketing Process
The steps in the marketing process are-
1. Determining Organisational Objectives.
2. Determining Objectives of the Marketing Department.
3. Individual Targets. (Objectives are set in order to attain Mission-Vision)
4. Internal & External Analysis.
5. Formulation of Action Plan.
6. Controlling Measures and Follow Up.
Marketing Mix
It is the combination of the 4 elements that every company has the option of adding, subtracting
or modifying in order to create a desired marketing strategy. It is a tool used by professionals.
It is about putting the right product at the right place, at the right time and at the right price.
The 4P’s of Marketing Mix are-
• PRODUCT: An item created for the purpose of satisfying consumer needs. Tangible in
the form of Goods and Intangible in the form of services. Extensive study is to be done
on the product life cycle. Few elements regarding product mix are Brand, Variety,
Design, Packaging, Usage. The main question here is, “What can I do to offer a better
product than my competitors?”
• PRICE: The amount a customer pays to enjoy the product. Determines the profit &
survival of the firm. Recognised brands find it easier to fix a high price. Too low prices
become an Inferior Good to the customer. The 4 elements to be kept in mind are
Manufacturing Cost, Customer’s Perceived Value, Market Share and Price of
Competitors.
• PLACE: Making the product accessible to consumers. It focuses on Placement &
Distribution and involves the study of the target market in order to attain Efficiency.
• PROMOTION: Refers to the communication methods that improve brand recognition
& sales. The elements involved are Sales Organisation, Advertising, Public Relations

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and Sales Promotion. The combination depends on the budget available, the message
and the target market.
Value Chain
The activities that design, market, deliver and support the product/service. Starts from the Raw
Material to the Finished Product.
The 2 categories in Value Chain are-
• Primary Activities: Operations, Distributions, Sales, Logistics, Service
• Support Activities: Infrastructure, R&D, HRM
Value Delivery Process: Building & Enhancing strong Buyer-Seller Relationships. It is a
strategic marketing approach that differentiates a traditional organisation from a customer
oriented organisation. The steps involved are-
1. Choosing the Value (Product, STP)
2. Providing/Producing the Value (Marketing Mix)
3. Communicate the Value (Sales Promotion, Advertising and other communication tools)
Market Research
It is the process of gathering, analysing and interpreting information about a product/service to
be offered for sale in the market. This also involves elements like the past-present-potential
customers, needs, spending habits, location, the industry and the related competitor. Also
focuses on the problems in Marketing. Uses Primary & Secondary Data.
The steps involved in Market Research are-
• Identification of the Customer Needs.
• Resource Collection.
• Use of Statistical Tools to analyse data.
• Conclusion (Final Report)
Consumer Market & Consumer Buyer Behaviour

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Consumer Market: refers to all of the personal consumption of final consumers.
Consumer Buyer Behaviour: refers to buying behaviour of all final consumers.
Buying Decision Process: Decision making process used by consumers. The steps involved are
1. Identify the Problem
2. Information Search
3. Evaluation of Alternatives
4. Purchase Decision
STP (Segmentation, Targeting, Positioning)
The most popular marketing models. Approach based on customer instead of product. Helps
to identify the niche market.
Segmentation: Dividing the market into segments and determines the important
characteristics of each market segment. It involves-
• Demographic: focuses on age, family size, gender, income, occupation and education.
• Geographic: focuses on region, city (rural & semi-urban)
• Behaviour: focuses on occasions, benefits, status, usage and attitude towards product.
• Psychographic: focuses on the personality traits, emotions and the lifestyle.
Targeting: refers to the selection of the market segment. It involves either one of the
following-
• Single Segment Concentration
• Selective Specialisation- Differentiated marketing
• Product Specialisation
• Market Specialisation
• Full Market Coverage- Undifferentiated marketing
Note: Micromarketing is smaller than Niche Marketing
Positioning: decides how the product should be fixed in the minds of the consumers. The
way the customer defines the product.

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Branding & Packaging
A Brand is a name, term, symbol, design or a combination of them that identifies a product
in a market and differentiates them from competitors. Branding is the process of affixing a
brand to the particular product. When the brand name is legalized, it becomes a Trade Mark.
Brand Equity refers to strength of the product in the market and its value to the parent
company. Brand Loyalty refers to the commitment the consumers have towards a particular
brand.
Packaging is the wrapping material around the product that identifies, protects, displays and
markets the product.
Functions of Packaging-
• Protection from damage.
• Acts as an advertisement.
• Presentation.
• Explains the product.
• Helps in Transportation.
• Provides instructions on using the product
Rural Marketing
• 70% of India’s population live in Villages. (800 million)
• MNCs like Colgate, Godrej & HUL are focusing on rural markets.
• Village market: Local Gathering
• Rural Marketing is a 2-way process.
• Urban >> Rural: Agriculture Inputs & FMCGs. Rural >> Urban: Agricultural
Produce.
• Also includes movement of products within different rural areas.
• Large population.
• Increase in purchasing power of people in rural areas.
• Potential for Market Growth.
• Different Marketing Mix

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Strategies
For Market Leaders
• Covering Global & Local Market.
• Expand Smartly.
• Control costs.
• Implementing good marketing plans.
• Finding the right person & their retainment.
• Focus towards the customers.
• To be informed about the market.
• Should adopt defense strategies
For Followers
• To adapt to the situation.
• Imitation.
• Clone. (making them alike with a different name)
• Counterfeit. (making them alike with the same name)
For Competitors
• Signing up to the newsletter
• Exploring the website and other online resources.
• Following on social media.
• Direct Enquiry.

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Module 3: Development of New Product
Stages of New Product Development
The stages involved in Product Development involvement are-
• Idea Generation: systematic search for new product opportunities.
• Product Screening: picking the best ideas and discarding the rest.
• Concept Testing: early stage. Product proposed to the consumer.
• Business & Financial Analysis:
• Product Development: conversion of the idea into a physical form.
• Test Marketing: placing the product for sale in a certain area to note down demand.
• Commercialization: implementing a total marketing plan & full production.
Classification of New Products
There are 3 categories of New Products.
Consumer Goods: goods used for consumption rather than for manufacturing. The goods
under this category are-
• Convenience Goods: widely available and effortlessly purchased. (daily groceries)
• Shopping Goods: a little comparison is involved before making a purchase decision.
(clothes)
• Speciality Goods: unique enough to motivate people to make an unusual effort to buy
it. (luxury cars)
• Unsought Goods: Normally not purchased but when purchased, it is due to fear &
lack of desire. (fire extinguisher, funeral service)
Durability & Tangibility: goods that are used by both consumers & manufacturers for
production & consumption. The goods under this category are-
• Non-Durable Goods: Can be usable only for a short period of time as they perish.
(fresh vegetables)
• Durable: Need not be purchased frequently as they last for a long time. (furniture)

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• Services: Intangible Goods.
Industrial Goods: goods that are used for the manufacturing process. The goods under this
category are-
• Materials & Parts: the matter from which something can be made. (bricks, nails)
• Capital Items: Categorised in ‘Accessory’ and ‘Installation’.
• Supply & Services
Reasons for Failure of New Products
Most products fail because of a poorly planned STP. The list of reasons for product failure
are as follows-
• Change in needs & wants.
• Change in Innovation.
• Incorrect Forecasting.
• Lack of Planning.
• Leadership failure.
• Ignoring customer needs.
• Poor location.
• Lack of Profit.
• Inadequate Inventory Management.
• Poor Financial Management.
• Over Expansion
• Macro-Economic factors
Product Life Cycle
There are 4 phases involved in the Product Life Cycle. They are-
Introduction Phase: Building of Product awareness and market development.
• Product branding established. IP protection obtained.
• Pricing kept low to build market share.

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• Distribution kept selective until customers show acceptance.
• Promotion aimed at early adopters. To build product awareness.
Growth Phase: To build brand preference and improve market share.
• Product quality maintained and new features added.
• Pricing maintained at the same level as demand increases with less competition.
• Distribution channels increased.
• Promotion aimed at a broader audience.
Maturity Stage: Defending market share while maximizing profit due to increased
competition and diminishing sales.
• Product features enhanced to differentiate it from competitors.
• Pricing lowered due to competition.
• Distribution intensified and incentives offered.
• Promotion to emphasize product differentiation.
Decline Stage: Decline of sales. The following options are left for the firm.
• Maintain the product by adding more features.
• Harvest the product and offer it to a loyal niche segment. (they should’ve done that to
Cadbury bites)
• Discontinue the product.

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Module 4: Distribution Decisions
Marketing Channels
A marketing channel refers to the people, organizations, and activities necessary to transfer
the ownership of goods from the point of production to the point of consumption.
It is the pathway from which goods move goods and services move from the producer
towards the end-user. Also called Distribution Channel.
They are categorised as follows-
Direct Channels: Producer and Consumer deal with each other.
Indirect Channel: Intermediaries are inserted between Producer and Consumer to perform
channel functions.
Functions of Intermediaries
The number of transactions reduce making it easier to categorise. The various functions
performed are-
• Buying & Selling
• Risk taking in the form of inventories
• Assorting & Sorting
• Storing
• Transportation
• Financing by providing credit facilities
• Grading & Inspection
• Providing Market Information

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Marketing Channels for Consumer Marketing
Marketing Channels for Business Marketing
An Agent is an intermediary who acts on the behalf of the company to negotiate sales of
products & services. Manufacturers’ Agents work for several producers. Selling Agents focus
on only one product.
Industrial distribution deals with providing goods or services that businesses then use in their
own production of goods and services.
Dual Distribution: 2 or more distribution channels for the same product.

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Strategic Channel Alliances: using one firm’s distributor channels to market another firm’s
product.
Merchant Wholesaler: Independent firms who handle their own merchandise.
Brokers: they bring buyers and sellers together to makes sales.
Factors Affecting the Criteria for selecting a Channel
The factors being Internal and External are as follows-
• Environmental factors
• Consumer factors
• Product factors
• Company factors
The steps involved in the selection of a channel are as follows-
1. Determining channel objectives
2. Identifying the required functions
3. Matching the channel to product attributes
4. Evaluation of legal aspects
5. Assessing competitors’ channels
6. Assessing company resources to match with the channel
7. Selection of the best channel design
Physical Distribution
The group of activities associated with the supply of finished product from the production
line to the consumers. The physical distribution considers many sales distribution channels,
such as wholesale and retail, and includes critical decision areas like customer service,
inventory, materials, packaging, order processing, and transportation and logistics.
‘Physical Distribution involves planning, implementing and controlling the physical flow of
materials and final goods from place of production to the place of end-use to satisfy buyers’
needs.’ -Philip Kotler

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Intensive Distribution involves placing the product/service in as many outlets as possible.
Exclusive Distribution refers to selling the product in only one outlet in a specific
geographic area.
Selective Distribution involves few outlets in a specific geographic area.
Components of Physical Distribution-
• Order Processing: Receiving & filling customer orders
• Transportation: Shipment, Carrier, Freight forwarders, Railroads
• Warehousing: receiving & storing goods. Public & Private Warehouses.
• Material Handling:
• Inventory Management and Control: Managing inventories in order to reduce costs.
Wholesaling
It involves the sale of goods to specific customers in large quantities at low prices.
‘Wholesale consists of all the activities involved in selling goods and services to those who
buy for resale or for business use.’ -Philip Kotler
Wholesalers sell to retailers, merchants, industrial, institutional and commercial users. Not to
ultimate consumers. Low intensity competitive industry.
It’s Characteristics-
• Direct buying from producers in large quantities.
• Goods are purchased mainly in cash and sold on credit.
• Small profit margin. Sales volume has to be maximized in order to maximize profit.
• Deals with limited line of products.
• Maintaining warehouses at various locations to minimize transportation costs.
Types of Wholesalers include-
1. Merchant Wholesalers: buys goods in large quantities and sells to other wholesalers,
retailers, institutions etc.
2. Agent Wholesalers: deals in marketing activities and are paid a commission.

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3. Manufacturers’ Sales Branches and Officers: the merchant wholesaler and agent
wholesaler controlled by manufacturer.
Retailing
‘Retailing consists of those activities involved in the selling of goods & services directly to
the ultimate consumers.’ -Cundiff and Still
Sold for non-business use, it is the final step in the distribution of merchandise for
consumption by the end consumers.
Retailing is responsible for matching the final consumer demand with the supplies of
different marketers. High intensity competitive industry.
Easier access to products and variety of products & services. Also classified as Store
Retailers and Non-Store Retailers.
It’s characteristics-
• Direct interaction with consumers.
• Done in market places.
• Involves product display and promotion.
• Acts as a communication link to the Wholesalers and Producers regarding the
consumers demands.
Store Retailing includes Speciality Store, Departmental Store, Super Market, Convenience
Store, Drug Store, Discount Store, Hard Discount Store, Off-Price Retailers, Super Store.
Non-Store Retailing includes Direct Selling, Catalogue Marketing, Telemarketing, Vending
Machine, Online Retailing etc.
E-Marketing Distribution
It refers to the buying or selling of services or goods over a public network without the
physical media. This type of distribution is accessible to a large number of customers and is
more cost effective for businesses.

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E-Commerce involves buying and selling of goods over an electronic medium.
E-Marketing is the communication, promotion and sale of products and services over the
internet.
• Wide range
• Scope of creativity widens
• Use of social media and properly designed websites
• Improves efficiency and flexibility
• Database Management enables CRM
• Lowers sales and distribution costs
Disadvantages include-
• Inability to view product in physical form
• Time delay
• Available to those who have internet access and electronic devices
• Clutter of Internet
• Security & privacy concerns
Channel Conflicts
Arises due to belief that channel members are not meeting the goals intentionally. Classified
into-
1. Vertical: between members of the same channel, different levels.
2. Horizontal: between members of the same level of distribution channels.
3. Multi-Channel: between 2 or more channels dealing with the same product.

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Module 5: Pricing
Pricing
Pricing is the process where a business sets the price at which it will sell its products and
services. Pricing is the method of determining the value a producer will get in the exchange
of goods and services.
Price: the sum of values that consumers exchange for the benefits of using the
product/service.
‘Price is the amount of money charged for a product or service.’ -Philip Kotler
Pricing Process (Setting a Price)
The steps involved in the pricing process are-
1) Selecting the pricing objective.
2) Determining Demand.
3) Estimating Costs.
4) Analysing competitors’ costs and prices.
5) Selecting a pricing method.
6) Setting the Final Price.
Types of Pricing
The types of pricing include the following-
Customer Value-Based Pricing
• Uses buyers’ perceptions of value as the key to pricing.
• The consumers’ needs & value perceptions are assessed.
• Determines the costs that can be incurred.
• Designs the product to deliver the desired value at target price.
Cost-Based Pricing

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• A fixed sum (percentage of the total cost) is added to the cost of the product to fix its
selling price. The easiest method of pricing.
• The product is designed, then the costs are determined. (Fixed Cost + Variable Cost)
• The price is determined based on the costs and it’s percentage.
• Lastly, the buyers should be convinced about the value of the product.
Competition-Based Pricing
• Setting of prices based on competitors’ strategies, costs, prices and market offerings.
• Consumers tend to judge prices on the prices that competitors charge for similar
products.
Value Pricing
• A low price is charged for a high-quality offering.
• The aim is to become a low-cost producer without sacrificing quality and attracting
value-conscious customers.
• One strategy includes Every Day Low Pricing (EDLP) which takes place at retail
level. The prices are kept low every day with few or no temporary discounts.
• Value Pricing is not based on competitors pricing.
Discriminatory Pricing
• A product or service is sold at 2 or more prices. Doesn’t reflect a proportional
difference in costs.
• Customer Segment pricing: Different groups of customers pay different prices for the
same merchandise. E.g.- Adult and Child Fares.
• Product-form pricing: Different versions of the product are priced differently. E.g.-
Small and Large Packets.
• Image Pricing: Pricing the same product at different levels based on image difference.
• Location Pricing: The same product at the same cost is sold at different prices based
on different locations. E.g.- Movie Seats.
• Time Pricing: Prices vary by the time factor. E.g.- Prices of Air Tickets by
Weekday/Weekend. Holiday Season prices.
Premium Pricing
• Keeping the prices higher than competitors to highlight the premium features.

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• Unique competitive advantage
Penetration Pricing
• Low prices compared to competition.
• Targeting price sensitive customers.
• Price changes once the market share is captured.
Economy Pricing
• Extremely Low-cost approach targeting only a specific set of market that’s highly
price sensitive.
• Prices remain low.
Price Skimming
• Initial price is kept high as customers pay a high price for new innovation. It is the
best way to get maximum revenue.
• Once duplicates are in the market, the prices are dropped.
Psychological Pricing
• Setting up a small incentive which practically doesn’t make a difference but
psychologically makes a huge difference to customers.
• Observed in small retail stores.
Neutral Pricing
• Prices kept at the same level and do not change.
• No opportunity to make higher profits.
Captive Product Pricing
• Focuses on captive products accompanying the core products.
• Captive products are priced high so customers would be willing to pay in order to
make the core product work.
Optional Product Pricing
• Extra facilities are priced more generating extra revenue.

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Bundling Pricing
• Combined 2 or more products in one and charging a joint price as the deal.
• Used to get rid of excess stocks.
Promotional Pricing Strategy
• Involves bundling but is used to distribute samples of a new product.
Factors to Consider on Setting Prices
Internal Factors
• Marketing Objective: Deciding the target market and positioning
• Marketing Mix: Either price is set first and the other elements follow or vice versa
• Costs: To ensure that the price covers fixed costs and variable costs
• Organisational Considering: Top Level decides for small organisations while Line
Managers decide the price in large organisations.
External Factors
• Nature of Markets & Demand: consumers tend to compare prices
• Competition: Analysing competitor’s prices, strategies and offers
• Other environmental elements: Economic, Government etc.
Break Even
The intersection of Total Revenue and Total Cost is the break-even point. Break even volume
must be crossed to attain profits.
Attack Strategies
Competitors use the following strategies to attack and maintain their sales-
1. Frontal Attack: Focuses on same product line and is used as a direct attack.
Competitors’ strengths are highlighted rather than weaknesses. The firm matches its

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competitors’ advertising, price and distribution. Works in a homogenous market
where the product differentiation is low. Rarely used and is expensive.
Example: Pepsi vs Coca Cola
2. Flank Attack: Direct attack by focusing on their weaknesses. It can also be done with
an existing product rather than launching a new product.
Example: Apple vs Microsoft
3. Encirclement Attack: Strengths and Weaknesses are attacked simultaneously. One
must have superior resources and decentralised structure to successfully implement
this structure.
Example: Java vs Microsoft
4. Bypass Attack: Strategy of diversifying into new and unrelated products. Hence,
overtaking is done through innovation and new technologies.
Example: Apple iPod vs Sony Walkman
5. Guerrilla Attack: Attacks are in several forms and are done in several locations.
Destabilizing the competitors in the form of small attacks.
Other attack strategies include discounts, premium goods, low-priced goods, value-priced
goods, product innovation, improved services, manufacturing-cost reduction, intensive
advertising promotion etc.

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Module 6: Promotion
Promotion (sales promotion)
Promotion is the process of advertising a product or brand, generating sales, and
creating brand loyalty. Refers to the communication methods that improve brand recognition
& sales. Sales Promotion
Sales Promotion refers to the tools used in persuading a potential customer to buy the
product or service. Examples of Sales Promotion include coupons, prizes, samples, rebates
etc. Sales promotion is used at both end-consumers and channel members. Not used
regularly; only used to smoothen sales.
Steps involved in Sales Promotion are setting objectives, selecting the tools for promotion,
developing the program, pretesting, implementing & controlling and evaluation of results.
Advertising
‘Advertising is any paid form of nonpersonal presentation & promotion of ideas, goods, or
services by an identified sponsor.’ -Philip Kotler
Not only used by businesses but also by non-profit organisations, government agencies etc. in
order to direct messages to target the public.
Useful for building brand preferences as well as educating people.
The 5 M’s of Advertising include-
• Mission (for increased sales and brand building)
• Money (the right budget requirement)
• Message (generation, evaluation, selection, execution and Social Responsibility
review)
• Media (frequency, timing, geographical allocation)
• Measurement (Feedback, communication impact, sales impact)
Product Advertising involves the following 3 purposes-

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1. Pioneering (Informational)
2. Competitive (Comparing with other products)
3. Reminder (To refresh memory & introduce new themes to existing products)
Institutional Advertisements help in building goodwill of an organisation and DOES NOT
focus on a single product. Example: Amul- The Taste of India. The purposes are-
1. Advocacy (Company position)
2. Pioneering (Informational)
3. Reminder (Company promotion)
Infomercials are 30-minute advertisements communicating in an educational manner.
Example- I’m guessing Telemarketing. (I so love that Nicer-Dicer)
Product Placement uses brand names and the product in the TV program. Example- Coles
and MasterChef Australia.
Cooperative Advertising involves the manufacturer paying a % of the retailer’s advertising
expense. (cos after all, the retailer helped him)
Personal Selling
This technique uses people in ‘Face-to-Face’ selling in which one person (the salesman) tries
to convince the other (the customer) in buying a product or service.
The sales rely on the skills and abilities of the salesperson.
Commonly used for new product awareness.
Different pitching is required for different customers.
Sales Management
Sales Management focuses on the practical application of sales techniques and the
management of the sales operations. The most important function as net sales determines the
profit. It is the attainment of sales force goals in an efficient and effective manner.

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Functions of Sales Management-
• Overview of Sales Environment (Market Research)
• Planning
• Recruiting
• Training
• Motivating
• Supervising
Importance of Sales Management-
• Introduction of new products in the market.
• Reduced costs of sales.
• Export Market.
• Rise in per capita income
Public and Customer Relations
Public Relations is the way Companies communicate with the public and media. It refers it
the image the company builds of itself to the public. The PR Department maintains
relationships with 4 groups- public, shareholders of the company, non-profit organisations
and government officials.
Customer Relations is the process of the business developing, establishing and maintaining
relationships with its customers. It involves of effective communication with the customers
and addressing their complaints to find scope for improvement. Customer has a perceived
performance value on the product and if the actual performance exceeds the perceived value,
then customer satisfaction is earned.
Impact of Public Relations-
• Improves public awareness at a lower cost than advertising.
• It automatically improves customer relations.
• Works hand in hand with advertising.
• Tools of Public Relations include News, Special Event, Public Services, Written
Materials et.

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CRM-
• CRM is achieved by delivering customer value and satisfaction.
• Nowadays, niche markets are targeted instead of masses.
• This also involves maintaining good relations with the companies one is associated
with.
• Tools of CRM include frequency marketing & club marketing
• Partner-Relationship Management involves working with others inside and outside
the organisation, bringing more value to customers.
• To capture Customer Lifetime Value (the value of the entire stream of purchases of
the product the customer would make over a lifetime)
• Total of CLV= Customer Equity
• Different types of customers require different management strategies.
Direct Marketing
It is a form of marketing where the firm gets to communicate directly to the customers. It is
also called direct response. It is the most widely used method of promotion. Direct
Marketing is done in various forms such as mail, telephone calls, emails, brochures etc. It
works best for products that have a high appeal. No intermediaries. Direct marketing uses
customer databases to organise data and determine the strategies to improve sales.
The concepts relevant to a direct marketing concept are-
1. To ensure that Direct Marketing is appropriate for the product/service.

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2. To ensure that the campaign generates enough revenue to cover the expenses.
3. To ensure support from other forms of marketing.
Online Marketing
It is the process of selling goods/services over digital networks such as the internet. It
involves finding the right online marketing mix of strategies that appeals to the target market
and translate it into sales.
Commercial Online Services offer marketing services to subscribers who pay a fee. It is an
interactive, convenient and immediate form of marketing to consumers. In the company form
of perspective, it involves low costs, improves flexibility and efficiency.
Multilevel Marketing
It is also known as pyramid selling, network marketing etc. In this strategy, multiple levels of
people are marketing a product to consumers. The revenue is derived from a non-salaried
workforce who are known as participants. The earnings of the participants are derived from a
pyramid shaped commission system.
Products and services are not marketed through a distribution channel but through people
selling to more people. Sales Reps get customers, trains another sales rep to do the same.
E.g.- ‘Refer a Friend for a discount on the next purchase.’
Advantages of MLM-
• Low costs
• More demand for good quality products
• No employees to hire
• No inventory
• Residual Income

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Module 7: Marketing and Society
Social Responsibility
The activities conducted by a business to maximize the positive impact on society and
improve its welfare.
Ethical Issues in Marketing
Ethics are the moral principles and values that govern the actions and decisions of an
individual or group. The ethical issues involved in marketing are-
• High prices
• Deceptive practices
• High pressure in selling
• Unsafe Products
• Poor service to disadvantaged customers.
• Privacy issues in data collection (Market Research)
• Problems of Selective Marketing (Targeting certain communities)
• Content in advertisements affecting/offending viewers.
• Disadvantages of other products are highlighted more than the advantages of the
promoted product.
Socially Responsible Marketing
It is a concept of Corporate Social Responsibility (CSR) which states that companies should
act in the best interests of the society at present and for the long term.
This involves the following-
• Consumer-Oriented Marketing
• Innovative Marketing
• Value Marketing
• Societal Marketing

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Old and New Economies
OLD ECONOMY-
• Focus towards Stability
• Product-Oriented
• Lack of Digital medium
• Profit focused
• Marketing does the marketing
• Standardization
• Acquire customers
NEW ECONOMY-
• Less focus towards Stability
• Consumer-Oriented
• Usage of Digital Medium
• Consumer Value focused
• Everyone does the marketing
• Customization
• Retain customers
Demand Side of Marketing
This involves Demand Side Platforms (DSP), a system that allows buyers of the digital
advertising inventory to manage multiple ad exchange and data exchange accounts through
one interface.
With Real-Time bidding, DSP enables advertisers to purchase ads at low prices in an efficient
manner.
Legal Issues in Marketing
The legal issues arising in Marketing are as follows-

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• Privacy and Data Collection: Example- Facebook has a wide marketing platform but
it has been criticised for its lax privacy concerns.
• Problems with Distribution of Information: Example- “Door-to-Door” services have
specific timings but households being unaware of the same end up reporting them for
nuisance.
• Misleading Advertisements: Example- Ads showing 99.9% germ removal but has an
actual rate of 40-60% germ removal.
• Intellectual Property Problems: Counterfeits and clones are being on the rise.
Marketing Skills
The key marketing skills required are-
1. Communication, Negotiation and Networking: this provides more information helping
to deal with suppliers, distributors and customers.
2. Collaboration with Sales team: To have unity amongst all departments and to
facilitate quick sharing of ideas.
3. Knowing the Strengths and Weaknesses: By using the SWOT Analysis, one can
figure out the opportunities to make best use of their strengths and the threats that can
bring out the weaknesses. Choosing the right marketing campaigns will be easier.
4. Conducting a Market Research: Surveys should be conducted to know what the
present consumer needs are and how can the product/service help towards satisfying
those needs. This will determine the market feasibility of the product offering it a
good market scope.
5. Capability in Customer Services: Customer Relations are built with the help of
Customer Services. Today’s marketing focuses towards customer retention. Hence,
loyalty helps firms in the long run.
Brand Marketing Skills
Brand being the identity to the products and services needs to constantly adapt to maintain its
position in the market. Some of the Brand Marketing Skills are-
• Strategic Creativity

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• Effective Product Design
• Quantitative Design (Data Analysis)
• Collaboration with other departments
• Digital Asset Management
• Operating in Real Time
Marketing in Indian Context
India being a country filled with culture has various opportunities for marketing products and
services. The various kinds of marketing done in Indian context are-
• Using current affairs: Print Ads of Amul in newspapers to highlight current affairs.
• Family Welfare: Bajaj stating the Chetak as a ‘Family Vehicle’ proving that it is
economical and useful.
• Use of Mascots: Onida using the Devil (reintroducing once sales began to drop) led
to a rise in sales due to brand recognition.
• Need Awareness and Mass Education: Reliance pushing for the need of Digital India.
• Segmentation of Different Products for Respective Markets: Vodafone having
different plans for families, youth etc.
• Value-Added Service Promotion: Vodafone using the ‘Zoo-Zoo’ to highlight
different value-added services.
Marketing in the 21st
Century
• Intense competition from domestic & international brands
• Changing technology being a challenge
• Customization
• Globalisation
• Customer Empowerment
• More Quality required
• Price Sensitive

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Guerrilla Marketing: to promote products and services in an unconventional manner on a
low budget. Involves high energy and imagination.
Surrogate Marketing: a form of marketing to promote an illegal/banned product in a legal
way. Done either through duplication of brand image or to promote another product of the
same brand.