Marketing Compendium

2023-24
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Table of Contents
1. What is Marketing? ............................................................................................................................................ 3
2. Marketing Mix ................................................................................................................................................... 4
2.1. 4P’s ............................................................................................................................................................. 4
2.2. 7P’s ............................................................................................................................................................. 6
2.3. Segmentation .............................................................................................................................................. 8
2.3.1. Demographic Segmentation................................................................................................................... 9
2.3.2. Geographic Segmentation...................................................................................................................... 9
2.3.3. Psychographic Segmentation ............................................................................................................... 10
2.3.4. Behavioural Segmentation ................................................................................................................... 10
2.4. Targeting ................................................................................................................................................... 11
2.5. Positioning ................................................................................................................................................ 11
3. Ways of Conducting Promotional Activities ....................................................................................................... 13
4. Distribution ...................................................................................................................................................... 14
5. General Trade vs Modern Trade ........................................................................................................................ 15
6. BCG Matrix ....................................................................................................................................................... 16
7. Pricing Strategies .............................................................................................................................................. 17
8. B2B vs B2C ....................................................................................................................................................... 18
9. Product Life Cycle ............................................................................................................................................. 19
9.1. Product Life Cycle Extension ....................................................................................................................... 20
9.2. Brand Extension ......................................................................................................................................... 20
10. Brand Value vs Brand Equity ........................................................................................................................... 21
11. Brand Positioning: Monitoring Competition ..................................................................................................... 21
12. Brand Personality ........................................................................................................................................... 22
13. Digital Marketing............................................................................................................................................ 23
14. Experiential Marketing ................................................................................................................................... 23
15. Social Media Marketing (SMM) ....................................................................................................................... 24
16. Guerrilla Marketing......................................................................................................................................... 24
17. Image and Emotional Marketing ..................................................................................................................... 25
18. Surrogate Marketing....................................................................................................................................... 26
19. How to Make a Marketing Plan ....................................................................................................................... 27
19.1. Purchase Funnel....................................................................................................................................... 28
20. Diffusion of Innovation Curve.......................................................................................................................... 28
21. Marketing Research ........................................................................................................................................ 30

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1. What is Marketing?
Formal definition of Marketing as per American Marketing Association: “Marketing is the activity, set of
institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value
for customers, clients, partners, and society at large.”
Marketing is the process by which a firm profitably translates customer needs into revenue.

“Marketing is the science and art of exploring, creating, and delivering value to satisfy the needs of a target
market at a profit. Marketing identifies unfulfilled needs and desires. It defines, measures, and quantifies the
size of the identified market and the profit potential. It pinpoints which segments the company is capable of
serving best and it designs and promotes the appropriate products and services.” – Dr. Philip Kotler
Marketing covers broad areas ranging from finding the right Target Group (TG) to pricing and communication
strategies.
For now, understand that a successful marketing execution brings prospects to you (it’s a Pull strategy).

Arena Sales Marketing

a) Emphasis on customer needs
a) Emphasis on product b) Wide array of products offered as per
Product b) Push Strategy implemented to customer requirements
increase revenue c) Pull strategy implemented to attract
customers
a) Aim is to capture value
a) Convince people to buy at stated
Price b) To price products based on customer
price
demand analysis
a) Primarily involves interaction with a) Wide audience requiring both internal and
Audience
the buyer external relationship management
a) Short-term oriented a) Long- run oriented
Time
b) Focused on generating revenue & b) Focused on both present customer needs
Horizon
profits thereby improving financials and on future market prospects
a) Focuses on making products available
a) Focuses on pulling the customer towards
to customers through right
Strategy the product and in maintaining long term
channels in the right quantities to meet
engagement
demand
a) Depends on marketing to generate
Dependency a) Depends on sales to close leads
leads
a) Target Market -> Customer Needs ->
a) Factory -> Products -> Sales &
Concept Coordinated Marketing -> Customer
Promotion -> Profits
Satisfaction

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2. Marketing Mix
Do you know what makes a product/service successful in the market?

The first step is to get the Market Mix right!

The marketing mix is about putting the right product or a combination thereof in the
right place, at the right time, and the right price.

There are broadly 2 concepts in the marketing Mix: 4P’s & 7P’s:

2.1. 4P’s
E. Jerome McCarthy created the Marketing 4Ps in the 1960s. It stands relevant even today and is used by
various companies for their GTM strategy.

1) Product:
A product is anything tangible and intangible which fulfill our customers’ needs or wants. A product must be
relevant & adaptable to the changing needs of the user.

2) Price:
To Buy or Not to Buy? Probably the main question that comes to our mind after seeing the Price tag.
A great product at the wrong price can fail terribly. E.g. Nissan Murano Cross Cabriolet.

The Primary determinants of Pricing of a product are the perceived value, the utility of the product and the price
the target segment is willing to pay.

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3) Place:
So how does a product move from production to consumption? Place is basically the channels of distribution a
company chooses to increase the reach of its products.

Various distribution channels that can used:

• Direct Sales: Door to door, Selling at Manufacturer’s Plant
• Indirect Marketing Channel: One-Level Channel, Hybrid Distribution Channel or Multi-Channel
aDistribution System
• Ecommerce

4) Promotions:
How does a new product reach people? It begins with inception of the new product idea, price is fixed and
then the product is distributed but how will people know about it? Promotions play a major role in increasing
the awareness of the product.

Promotion helps in increasing brand/product awareness and in lead generations. Marketing campaigns
include apromotional activities to engage and attract consumers.

There are two types of Promotions:

1) Sales Promotion: Bundle offers, Discounts, BTL activities etc.
2) Marketing Promotions: Digital Campaigns, Sponsorships, etc.

2.2. 7P’s

Extending the marketing mix by adding Physical Evidence, Process and People to 4P, bring marketing function
closer to human resource management and operations.

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5) People:
The people in the framework represent the employees, consultants, and freelancers who deliver the service to
customers.

People are the most critical factor in providing knowledge-based services as they add value to the experience of
the consumer.

Hence, training, personal selling, and customer service are key ways to ensure good service from the employees
facing consumers. Waiters of a restaurant, Hairstylists in a Salon, business analyst in IT companies, etc.

6) Process:
The processes are the steps that are required to deliver the service to a customer. The aim of all service
companies is to have a seamless process flow, making it easier for the consumer.

These companies share process maps for employees to make sure that work is repeatable and successful.

7) Physical Evidence:
The physical evidence is a combination of the environment and branding where the service is provided to a
customer.

The physical evidence capital would be:

1) A service brochure
2) Franchise Layouts
3) Uniform & Mascots of brand
4) Social media accounts
5) A corporate website
6) Company Service center/Point of Sales

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SEGMENTATION, TARGETING AND POSITIONING (STP)

2.3. Segmentation
It is the process of defining and subdividing a large market into clearly identifiable segments having similar
needs, wants, or demand characteristics i.e. dividing a whole into parts based on various criteria like
geography, demography, behaviour, gender, personality etc.
Why do we need segmentation?

Not all individuals have similar needs. A male and a female would have varied interests and liking towards
different products. A kid would not require something which an adult needs. A school kid would have a
different requirement than an office goer. Market segmentation helps the marketers to bring together
individuals with similar choices and interests on a common platform.

Market segments must rate favourably on five key criteria (MSADA) for them to be useful:

1) Measurable: The size, characteristics & purchasing power of the segments can be measured.
2) Substantial: The segments are large and profitable enough to serve. A segment should be the largest
possible homogeneous group worth going after with a tailored marketing program.
3) Accessible: The segments can be effectively reached and served.

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4) Differentiable: The segments are conceptually distinguishable and respond differently to different
marketing-mix elements and program.
5) Actionable: Effective programs can be formulated to attract and serve segments.

2.3.1. Demographic Segmentation

Based on demographic variables, the firm can decide which group they need to cater to.

2.3.2. Geographic Segmentation

Categorizing customers according to the geographic units and customizing group requirements accordingly.
This type of marketing strategy can be explained with some examples:

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2.3.3. Psychographic Segmentation

The art of marketing is such that the marketer needs to highlight that part of the commodity that appeals most
to a customer and tell him the features of the product and how it will benefit him, as a part of the advertising
process.

2.3.4. Behavioural Segmentation

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2.4. Targeting
Target Marketing involves breaking a market into segments and then concentrating your marketing efforts on
one or a few key segments consisting of the customers whose needs and desires are first identified and then
attempted to be met by your product or service offerings. It can be the key to attract new business, increasing
your sales or profitability.

2.5. Positioning
Positioning is defined as the act of designing the company’s offering and image to occupy distinctive place in
thetarget market’s mind.
Positioning is all about ‘perception’. As perception differs from person to person, so do the results of the
positioning map e.g. what one perceives as quality, value for money in terms of worth, etc. will be different to
any other person’s perception. However, there will be similarities in certain cases.

Elements of positioning:

1. Target Audience: For whom the product is intended.

2. Points of Parity (POP): Attributes like other products in the category. Points of parity are important because
customers expect basic offerings from a category. For example, when purchasing a toothpaste, a customer will
expect that it should have freshness as well as it tastes well.

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3. Points of Difference (POD): Attributes that differentiates the products from others in the category. The
morethe number of PODs the better the positioning. PODs should satisfy the following criteria-

• It should be desired by the customer.

• It should be sustainable for the producer.
• It should be differentiated from its competitors.

PRODUCT MIX

Product Line: Similar kind of products having different colour, size, taste, etc. sold under one brand name.
E.g. Oreo’s Chocolate, Normal, Orange, etc. flavours & its different weights.

Product Line Length: It is defined as the number of products in a single product line. If we see the previous
example,Oreo has product line length of 3.

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Product Line Width: It is defined as the number of similar product lines parallel to each other. You may have
twoor more brands under biscuits or beverage category.
E.g. Coca-Cola has Minute maid line, Coke line, Sprite, Powerade. Each of these lines has different variants &
SKUswhich makes product length.

Product Mix Width: It is a sum total of all different kind of product lines under all the categories. If we see
Unilever’s product mix, we will find various categories such as skin soap, detergent, deodorant, ice-cream,
shampoo, etc. Sum total of entire range makes the Width.

3. Ways of Conducting Promotional Activities

• Reach entire market as a whole to build brand awareness and inform masses about product.
• Focused communication for specific target group through individual level interaction.
• Combination of ATL and BTL, using mass advertising forming a customer database to focus on conversion.

FMCG and personal care brands use ATL marketing techniques to increase brand recall and subconsciously
influence the purchase.

How do we measure an ATL campaign?

• The reach of members watching the ad
• The frequency of views
• The number of impressions across various platforms

Companies use BTL activities in places such a College, university, societies. high foot-fall areas to target its
prospects.

How do we measure a BTL campaign?

• Sales achieved at place of activity.
• New customer acquired at the site.
• Conversion rates on site (at place of activity).
• Impression estimates via footfalls.
• Open rate of email campaigns.

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TTL can help brands use an integrated approach to advertise products to both mass & focused markets together.

4. Distribution

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5. General Trade vs Modern Trade

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6. BCG Matrix
• BCG matrix is a product of the Boston Consulting Group
• It is a 2*2 matrix which helps in the portfolio analysis of a business unit.
• It helps to determine in which products to invest, expand & which to sell.

BCG Matrix of Amazon

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7. Pricing Strategies
Price is the total amount that a consumer pays for a product/service.

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8. B2B vs B2C

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9. Product Life Cycle

PLC describes the various stages that a product goes through from the time it was initially thought of until it is
finally removed from the market.
PLC is classified in 4 or 5 stages.
1 & 2 : R&D and Introduction
3: Growth Phase
4: Maturity
5: Decline

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9.1. Product Life Cycle Extension

PLC extension is a way for firms to compete for sales and market share. This can take place in a number of ways:

• Increase use of the product among current users

• Obtain more varied use among current users
• Identify new users
• Bring in product line extension

9.2. Brand Extension

Brand extension is a method used by companies to launch a new product by using an existing brand name. Brands
Extensions fall into general categories:

Disadvantages of brand extension

Brand dilution: It occurs when consumers start thinking less of the brand. If a firm launches extensions consumers
find inappropriate, they may question the brand integrity or become confused or even frustrated.
E.g. Tata Nano being launched as a “cheap” vehicle hit the positioning of Tata Motors hard.

Brand confusion: Line extensions may cause the brand name to be less strongly identified with one product.
E.g. By getting into powdered milk, soups and beverages, Cadbury ran the risk of losing its more specific meaning
as a chocolate and candy brand.
Cannibalization: Consumers may switch to extensions from parent-brand offerings, hence cannibalizing the
brand sales.

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10. Brand Value vs Brand Equity

11. Brand Positioning: Monitoring Competition

Brand positioning describes how a brand is different from its competitors and where, or how, it sits in
customers’ minds.
• It requires an organizational commitment.
• It is not something that is constantly changed.
• At the same time, it is important to regularly monitor the desirability, deliverability and differentiability of
the brand’s POPs and PODs in the marketplace to understand how the positioning might have to evolve or
rarely replaced.
• When analysing potential threats posed to the brand positioning by competitors three high level variables
are useful.

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12. Brand Personality

Specific mix of human traits that we can attribute to a particular brand.

The theory is that consumers are more likely to choose brands with which they can associate their own
personalities.Brands are generally positioned in the following 5 traits:

Some marketers carefully orchestrate brand experiences to express brand personalities. For example, Axe, the
popular deodorant, caters to consumers who want others to view them as attractive and appealing.
These traits may vary depending on the socio-economic factors in different geographies with different people.

For example, Japan lacks ‘Ruggedness’ and has Peacefulness instead. China lacks ‘Ruggedness’ and ‘Sincerity’ and
instead has ‘Joyfulness’, ‘Traditionalism’ and ‘Trendiness’.

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13. Digital Marketing

Digital marketing is an umbrella term for the marketing of products or services using digital technologies,
mainly on the Internet, but also including mobile phones, display advertising, and any other digital medium
that may or may not require the internet. It consists of search engine optimization, search engine marketing,
content marketing, influencer marketing, e-commerce marketing, social media optimization, email direct
marketing, etc.

14. Experiential Marketing

Experiential marketing sometimes used interchangeably with “live marketing” or “event marketing,” is a
marketing strategy that engages consumers using branded experiences. These experiences could include an
event, a part of an event, or a pop-up activation not tied to any event. Rather than looking at consumers as a
passive entity in marketing, this branch believes that consumers should be involved in the production and co-
creation marketing programs, developing relationship with brand.

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15. Social Media Marketing (SMM)

Social media marketing is a form of Internet marketing that utilizes social networking websites as a marketing
tool. The goal of SMM is to produce content that users will share with their social network to help a company
increase brand exposure and broaden customer reaches. This form of marketing is driven by word- of-mouth,
meaning it results in earned media rather than paid media.

16. Guerrilla Marketing

Guerrilla Marketing is an advertising strategy that focuses on low-cost unconventional marketing tactics that
yield maximum results. The original term was coined by Jay Conrad Levinson in his 1984 book ‘Guerrilla
Advertising’.

In other words, guerrilla marketing is the act of executing an unusual or unexpected marketing activity in a
common, everyday place in order to generate a buzz for products or services. The main point of guerrilla
marketing is to get your business's name in front of as many people as possible in an unexpected way. Guerrilla
marketing is usually a low or no-cost form of marketing that can reap substantial profits if implemented
correctly.

Thus, it is a marketing tactic in which a company uses surprise and/or unconventional interactions in order to
promote a product or service. Guerrilla marketing is different than traditional marketing in that it often relies
onpersonal interaction, has a smaller budget, and focuses on smaller groups of promoters that are responsible
for getting the word out in a particular location rather than through widespread media campaigns.

For instance (clockwise from top left), Kitkat came up with a brilliant billboard campaign, trying to highlight its
punch line, but in an unconventional way. Similarly, Netflix, in order to scale up the viewership of its flagship
series- House of Cards in India, celebrated the birthday of Kevin Spacey in a way birthdays of any typical Indian
leaders are celebrated. Ikea re-modelled an entire bus stop with furniture at Hyderabad, before launching their
first store in India. Nike funnily modified a park bench to encourage running.

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17. Image and Emotional Marketing

Companies are increasingly turning to image and emotional marketing to win customer mind share and heart
share. Although this has gone on from the beginning of time, today it is accelerating. In today’s economy,
companies rapidly copy any competitor’s advantage until it no longer remains. Volvo’s benefit of making the
safest car means less when customers start seeing most cars as safe.

More companies are now trying to develop images that move the heart instead of the head. Those addressed
to the head tend to state the same benefits. So, companies are trying to sell an attitude like Nike’s “Just do it.”
Celebrities are shown wearing “milk moustaches.” These campaigns work more on affect than cognition.
Below are few more examples to demonstrate:

From top left, clockwise: Zomato (Conscience), Mentos: Dimaag Ki Batti (Humour), Tata Tea: Jaago Re (Self
Awakening), Royal Enfield: Himalayan (Travel Emotion), Ponds: Googly WooglyWoosh (Happiness) Happydent
White (Humour), Indian Army: Live a Life Less Ordinary (Pride and Motivation), Maggi: Miss You Maggi
(Nostalgia), Coca Cola: Ummedon Wali Dhoop/Reasons to Believe (Trust), Fortune Oil: Maa Ki Haath Ka Khana
(Family Emotion), Maruti Suzuki: India Comes Home (Homecoming Emotion), Fevicol (Humour)

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18. Surrogate Marketing

Surrogate marketing uses the marketing campaign of a brand or product, to convey a message which is related
to another brand or product. This is done due to various reasons. Primary reason is to circumvent the ban on
advertising for a particular type of product(s).
Example: Kingfisher’s campaign in IPL: “Divided by Team, United by Kingfisher”. Here they say Kingfisher is
the
partner of good times. They never talk about the product they intend to market.

Surrogate marketing may also be used in cases where the use of a product is linked to a service. In such cases,
the service is advertised widely, and the service provider uses only the product in question.
Example: Custom Fitness Tracker Apps of brands like Nike and Under Armour may be advertised. But, without
a Nike Shoe or a UA pad, the app can’t function anyway. So, it would be surrogate marketing for the products
through the app service.

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19. How to Make a Marketing Plan

Marketing Plan: It is a document that summarizes what the marketer has learned about the marketplace
and indicates how the firm plans to reach its marketing objectives. A marketing plan focuses on winning and
keeping customers; it's strategic and includes numbers, facts and objectives. A good marketing plan spells out all
the tools and tactics you’ll use to achieve your sales goals. It’s your plan of action—what you’ll sell, who'll want
to buy.

Steps to create an efficient Marketing Plan:

Situation Analysis: Gather data on current sales, market share, cost to company. Analyse your product’s
features and decide how they distinguish your product from its competitors. Make your situation analysis a
succinct overview of your company’s strengths, weaknesses, opportunities and threats.

Determine Target Market: List anything and everything about the ideal customer. This includes basic
demographic information, such as gender, age, sex, family composition, earnings and geographic location—as
well as lifestyle. Gather relevant customer traits such as are they conservative or innovative? Leaders or
followers? Timid or aggressive? Traditional or modern? Introverted or extroverted? How often do they
purchasewhat I offer? In what quantity?

Set Goals: Set measurable goals depending on current situation and ambitions. Goals can range from lofty and
grandiose (such as doubling sales or increasing market share) to smaller, more bite-sized ambitions (like
getting 1000 new Instagram followers on your brand’s account or starting a blog for your business).

Distribution Plan: Think through different ways in which you might be able to reach customers and document
them in this section of your marketing plan. The distribution plan should provide details on the buying method
preferences. For example, will customers purchase directly from you on your website? Will they buy from
distributors or other retailers?

Develop Marketing Communication Strategies: Define the marketing methods and decide upon the
advertisement method, using Internet marketing, direct marketing, or public relations?
Depending on the target audience, you will need to pick the best marketing methods to explain, teach, and
promote how your product or service stands out above other competitors.
Set a Budget: Stay focused on marketing related activities. Chalk out a plan and decide the budget allocation
onmarketing and promotion throughout the next year, and the cost of the item. Most importantly, also decide
thesource of these funds.

Models of consumer responses

• Micro models of marketing communication concentrate on consumer’s specific responses to
communication.
• All these models assume the buyer passes through cognitive, affective and behavioural stages.
• Moving from step to step in these models, one loses some percent of prospects. Analysing this structure
helps one understand the root cause of an underperforming communication (advertising/marketing)
campaign.

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19.1. Purchase Funnel

The purchase / purchasing funnel is a model which describes the theoretical customer journey from the moment
of first contact with your brand to the ultimate goal of a purchase.
This model is important when marketing your business as it provides a method of understanding and tracking the
behaviour of an average customer throughout the sales process.
This can help with the following:
• Planning marketing campaigns
• Highlighting areas in order to improve your conversion rate (from potential to actual customers)
• Evolving the sales process
• Designing customer relationship management (CRM)System

20. Diffusion of Innovation Curve

Innovation diffusion process (Everett Rodgers): spread of new ideas from source of invention or creation to its
ultimate users or adopters. The curve is the graphical representation illustrating this concept.

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21. Marketing Research

Market research consists of systematically gathering data about consumers and then analysing it to better
understand their needs. Market research results are then used to identify and define marketing opportunities
and problems; generate, evaluate, refine marketing actions; monitor marketing performance and improve
understanding of marketing as a process. The Market Research process includes:

1. Define the problem and research objectives: Understand the root question that needs to be addressed by
market research. For example, “Business problems” might be “How should we price this new widget?” or
“Whichfeatures should we prioritize?” or “How are customers responding to our offering?

2. Determine research design: 4 types of research approaches depending on the objectives-

• Observational research is used to gather data by observing customers as they shop or consume products.For
Example, Large retail chains use new age technologies to understand consumer behaviour.
• Focus group research is a gathering of 6 to 10 people carefully selected to discuss various topics at length
where the questions are based on the marketing research agenda. For Example: Gathering of women by a
cosmetic company to understand how they view the product and what they expect, etc.
• Survey research is used to assess thoughts, opinions, and feelings of larger set of customers by
standardized questionnaires through online or offline surveys, face to face interviews, telephonic
interviews etc. For Example, Researchers approach people in a mall and ask them to fill out surveys.
• Behavioural research is to trace and analyse consumer purchase behaviour from customer database and in-
store scanning data to make reliable conclusions For Example, Amazon analyses consumer preferencesbased
on usage patterns and then shows customized recommendations.

3. Decide research instrument: The market research instrument to collect the data can be following:
• Qualitative market research data collection ranges from focus group, case study, participation
observation, innovation game and individual depth interview
• Quantitative marketing research involves the construction of questionnaires and scales which aids in the
conduction of surveys and experiments.

4. Sample design: Sampling unit: Whom should we survey? Sample size: How many people should we survey?
Sampling procedure: How should we choose the respondents?

5. Analyse the data: Extract findings by tabulating the data and developing summary measures.

6. Visualize & communicate results: Make decisions.

END [References: Marketing Weekly & other useful sources]

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