Module-V

Emerging trends in marketing -modern marketing –direct marketing –E-

marketing –Tele-marketing-viral marketing –relationship marketing –
social marketing –de-marketing – remarketing –synchro marketing –
service marketing

CHAPTER-11
EMERGING TRENDS IN MARKETING

*DIGITAL
MARKETING*

“According to Harshil Karia , co-founder, FoxyMoron, “Digital is the only

medium which is like a rally taking place every day , where the brand is taking to
thousands of people together”

A Song that literally exploded onto the digital medium with these words :”why
this Kolaveri Di?”(loosely translated into English it would mean “ why this killer rage ,

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girl”). Words from a song that defies musical logic or synchronized lyrics and a melody
yet you can hear its infectious tune in a local train on someone’s mobile device.. Lyrics
are downloaded and shared , as more and more curious consumers search online wanting
to understand the trend .

The song has crossed 10 million hits online in a short time. It is now both a
local and international phenomenon. It has been viewed multiple times on You tube .
commented and spread on twitter. Downloaded and spread on twitter . Downloaded and
played from mobile device .It is a part of a deliberate campaign by Sony music to promote
a song using the digital medium .A campaign that exemplifies the power of social and
digital media to gather interest , engage consumers and grow exponentially as it catches
on and spreads.

The song exemplifies how consumption patterns of digital consumers have

evolved. Consumers are increasingly impatient and mobile. They are constantly on the go
and they want their information on the finger tips all the time. Mobile devices have helped
deepen penetration and have helped overcome concerns of limited broadband access in
India According to the latest Telecom Regulatory Authority of India (TRAI) subscriber
figures , broad band subscription reached 12.98 million in October 2011 while active
wireless subscribers in the same period of stood at 626.18 million . The opportunity for
mobile industry in immense and vast.

Certain factors must be known when creating a successful digital marketing campaign.

i. Build content that is differentiated , relevant , intriguing and engaging :-

Kolaveri Di is a phenomenon thanks to a well- planned , well executed
digital marketing campaign . But the campaign itself could not have
succeeded if the product it was promoting itself both
compelling ,intriguing ,and unlike anything else , yet something people
( especially the young generation ) could relate to .Consumers want to
engage when the social content is great and an idea has captured their
imagination .Simply posting daily polls , questions , promotional offers and
updates is not enough to hold the attention of already engaged consumers
nor will it be sufficient to attract new consumers

ii. Set trends , be unconventional :Trending on the digital medium is real . It

can be tracked , monitored , measured and assessed. Set the trend and a bran
can stand out .Follow the trend and a brand could get lost in the trend .
Unilever ‘s ‘Campaign for Real Beauty ‘ for its leading personal care
brand “DOVE” was a risky choice for a personal care product. The
campaign featured regular women instead of super models or celebrities.
This campaign was well appreciated by many real women .The Dove
‘Campaign for Real Beauty’ generated plenty of buzz, wide media
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 coverage for the Dove brand and resulted in increased sales of Dove
products. It talked about real issues that real women faced and allowed
these real women in turn to express themselves across digital platforms.

iii. Facilitate media consumption on mobile device: Mobile device are

changing the way media is consumed. Smart phones platforms enable
mobile consumption of individuality and locally relevant news , culture and
entertainment .Leverage multiple digital media avenues to ensure 360-degree
coverage:

iv. Digital space is now so vibrant and ripe with multiple platforms –
publishing , gaming , search engines, content streaming , messaging , peer-to-
peer sharing , web –based e-commerce enterprises, personal web pages that
success cannot be built on only one platform. Successful campaign
succeed by targeting their end stakeholders using at least two platforms and
then fostering an online environment where the campaign can grow and
effectively multiply .New and emerging technology and near field
communication will allow marketers to be more innovative and targeted on
their end stakeholders.

v. Gather and mine data ;evaluate online campaigns: The explosion of digital
content, access to the web and social media offers brands the ability to
collect and analyze detailed information that was previously unavailable.
Data is the key to the interface between consumer and brand . And the
digital media provides ready access to the data. It is a vibrant and evolving
medium and data gathering , and analysis not provides insight into what
consumers want but also gives pointers to emerging consumption
preferences. As wi-fi spots proliferate , mobile devices will increasingly
become the platform through which people socialize, communicate and
share their brand preferences , thoughts and complaints . Brand that
knows what their consumers like and want , will enjoy advantage.

Marketers need to innovate to create lasting relationships between the

consumer and brand. Listening and responding to consumers will give them a
personal understanding of a brand .

*CONSUMER GENERATED MEDIA (CGM)*

A revolution in Marketing

“With the economy nose-diving and marketing budgets crunched , the pricey
commercial on TV may no longer be the answer to all troubles. It’s because the first
screen many consumers turn to and turn on may well be Laptop, desktop or tablet .
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With eyeballs of the affluent consumer moving to these screens , can marketers
afford to be far behind”- Brand equity- The economic Times , 12 September 2012

The rules of business are changing .The traditional way of marketing has undergone a
considerable change .Marketers will focus more on the new media and methodologies . The
Virtual World will overshadow and overtake the Real world. A burst of social networks
and the resulting eruption of large online families have given marketers a shiny new pony
to show off. Marketers have stressed on the many advantages of branding on these
networks, unleashing the market message on these online communities. Indeed ,it is the
place to see and be seen : Branding their products and services on “community platform” is
the new age way to make the sale

The previous year (June 2011) the Nike premiered its new Advertisement campaign
titled “The Chosen” not on TV, but on Face-book. The campaign was used to launch a video
contest , inviting people to submit their videos of extreme action sports like surfing,
skateboarding ,snow- boarding etc. The finalist were then judged by a group of
professionals within Nike and the winner was selected and titled as the “Chosen One”. The
marketing strategy adopted by Nike definitely evoked a positive response from the Youth
segment .

The same year Ford Introduced its new model –The Ford Explorer –not in an auto show,
something that they had been doing for an half a century ,but on Face-Book.

The social media has been playing a very crucial role in marketing the brands. So if
your Brands has a page on Face-Book ,it’s time you made sure that it becomes more
interactive and engaging, for that’s going to be the key success in the future”

The cosmetic company ‘Benefit ‘ did just that . With no marketing on TV or in the
print media , Benefit used only the ‘virtual platform’ for all its marketing endeavors . Using
fun and quirky online content and giving away freebies and having beauty sessions
online, the company built an awareness around its products and kept its fans engaged
with the brand, It asked the fans to review its products on its Face-Book page and even
reward its most active reviewers. Finally these ‘reviewers’ shared with other Face-Book
friends about this brand ;and soon ‘ Benefit ‘ become the most talked about brand in the
virtual space. Similar to viral marketing ;but just that this time ,it’s happening online, for
that is where most of the your consumers will be in the future .

It’s going to be an era of the “virtual”. Be it brand Building or increasing market

share, everybody is thinking ‘virtual'

A leading automobile company was preparing to launch a C-segment sedan for

emerging markets. There were already several models by competitors in the same
segment. The company wants to make a splash in the market by offering something unique
to ensure that their product was a class apart from the rest . But analyzing the existing
model of cars from the customers perspective was not only an easy task. That’s when the

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automobile company explored the possibilities of using the existing “listening tools” to
get an idea of what current car owners and potential customers were saying online. During
its research , the auto major found out that plenty of car owners were voicing their
views on this class of cars on Face-Book , Twitter, Blog-posts, review sites etc

It was revealed that car owners were dis-satisfied with the absence of key features ,
such as body-colored bumpers ,outside rear view mirrors ,key-less entry , factory fitted in-
car entertainment etc., amongst the C-segment cars . Taking the cue from these inputs ,the
automobile company not only included these key features in their new product , but also
reworked its marketing campaign for the new car surrounding these aspects.

Social media and Networking platforms serve a higher purpose than just staying in
touch or posting pictures; they have emerged a s important tools for companies operating
in the consumer and enterprise product space for a clear perspective of customers attitude
,their thought process, expectations and criticisms.

The content generated by consumers through any of the social networking platforms,
discussions forums or blogs are collectively termed Consumer Generated
Media(CGM).CGM is a powerful medium for any company planning to make an impact in
the market.

Now a days ,discussions forums relating to any product , be it a mobile handset or

an anti-virus solution ,are extensively present on the internet . Consequently ,the whole
exercise of listening to customers on the internet on various social media websites is now
a dedicated domain with several companies offering custom- made tools and solutions for
specific requirement . CGM is touted to be the next big wave of business strategy

According to Forrester Research ,businesses have to move to the next big process
in Social Media Listening in order to sustain the customer confidence . With Business now
understanding the importance of CGM, social media listening tools have evolved from
just collecting data to “Social Intelligence”. Organization need to make the best use of the
unstructured data that is flooding social media and transform into meaningful data.

Forrester has estimated that by 2015 ,the worldwide market for social media
listening tools is expected to grow to a phenomenal US$ 60 billion from the existing US$
35 Billion, as organization try to understand the customer at a deeper level even before n
developing a product .Effectively measuring ,interpreting and acting on CGM offers key
competitive advantage for today’s consumer –centered brands. The vast unstructured ,
unprompted online conversation is a powerfully rich source of meaningful insights ,
intelligence and information that can provide sustainable competitive advantage for
organization .

Social media presents business with vast amounts of customer information as well
as a lot of irrelevant discussion .But ,by harnessing the right social technologies ,mining
for insights and taking informed marketing decisions, brands have the opportunity to

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make the most of social media.

Marketers are looking at the digital medium actively , be it to launch their films or
to create a buzz when launching a new brand . Tripiti Lochan , chief executive officer ,
VML Qais , a digital agency , “digital Indian consumers love content – and brands will start
trying to tell stories to their customers , rather than trying to push messages to them”

Cosmetic brand Maybelline launched its BB(Bright Benefit)cream in India

through digital campaign , ‘with little print and no TV’. The confidence stemmed
from the fact that it is one of the strongest women’s brands online that has reached
95% of all women on Facebook over the last two years according to Leena shoor ,
marketing manager – Maybelline ,New York .

Italian iconic brand Vespa, when decided to launch in India ,it opted to do so with
a digital engagement via an interactive contest ‘Once Upon a Vespa’. Surprisingly
an overwhelming 125000 plus people visited the brand website and over 75000
people visited the contest micro-site in a single month during which the campaign
was run . The brand saw over 50,000 test rides requests and plenty of dealership
enquiry on its websites in just 4 months .

Flipkart ,did something out of the ordinary . Its 5 million- user base found
themselves playing the role of a preview audience –albeit in the virtual world,
getting a first look at the latest commercial even before they went on live on TV.

The digital campaign is an interesting archetype for the brand in its pursuit of
promoting Indian values and traditions such as spending time with family’, ‘Celebrating
festivals’, ‘being there friends and family always’-all in order to stay relevant and close
in the lives of the Indian consumer .

Digital will mature as marketers realize that they need to focus on providing
experiences to their customers at the right time and right place to be relevant . “TV will
continue to remain TV and allow marketers to have quality reach for sometimes at least .
It is the digital that will be the space for being provocative and also meaningful”-
Harshil Karia, co-founder, FoxyMoron.

Digital advertising as a simple extension of online advertising that include mobiles

and tablets is grossly inadequate Reaching today’s consumer is a daunting ,highly complex
interplay of mediums, messages and moments ,requiring a radical shift from conventional
marketing and a wide array of diverse ,yet complementary capabilities .It is about weaving
stories that integrate the brand or a product into buyers’ world . It is about weaving stories
in such a way that behavior and actions are influenced and monetized .These stories need to
span across all touch points-web, mobile, social in-store and span across time and space

With social networks becoming part of the consumer’s life , more and more
marketers are dabbling with the user-generated content such as viral videos, instant tweets
and active online communities .Many brands have associated themselves actively on to the
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social networking . The Old spice created a series a series of personalized “You Tubes”
videos, the campaign suddenly made the 40-plus brand relevant to a whole new generation
of consumers . According to IMRB and Internet and Mobile Association of India (IAMAI)
data, there are 121 million internet user in India . This is set to reach 300 million by 2050,
almost a three –fold growth . Only 10% of Indians conduct transactions online. Also e-
commerce companies are setting up outlets to acquire more customers and to cater to the
“touch and feel” consumer behavior exhibited by Indian consumer .

350

300

250

200
in million
150

100

50

0
0 2007 2008 2009 2010 2011 2015

Source :- Internet World Stats, IMRB and IAMAI

It is interesting to note that from categories like baby products to fashion and
expensive ornaments(Gold and Diamond) ,Indian customer prefer to buy from physical
stores and still prefer to “feel and touch”. They still do not trust the online media
completely . When compare to China , which has 480 million internet user with 145
million transacting online ,Indian e-commerce has a long way to go .Also Indian e-
commerce players have to present a alternative to English if they aspire to
success .Language is Barrier to do business . Communication and promotion should be
localized to get nearer to customer .

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 1,07,800

100,000

80,000 77,100

60,000 55,600
Total online conumer revenue in CRORE

40,300
40,000
28,500

21,700
20,000 16,600

0
2009 2010 2011 2012 2013 2014 2015

Source:IAMAI digital commerce 2011;Avendus estimate(Business standard-The strategist,

Monday 1, October 2012)

Advertisement Medium And The Customized Message

Print:- Quick Response or QR codes(black and white matrixes that appear in Advertisement)help
interact with a particular target audience .Retail giants Target used QR codes to link up a
target audience to style and fashion experts via internet .Ford used it in India when
launching the Figo to show an ad video to smartphone users who scanned the print ad. But
in India one need a Smart phone to download .

Television:-Solution like commerce to TV and “Return Path Technology” can help

customized ads as consumer will be able to interact with brands they want to. “Return
Path Technology” refers to the ability of viewers to communicate directly with the brand
they see on TV commercials via remote or swipe credit cards on remotes to pay for a
service or product . In India, so far the use has been limited to DTH providers selling
movies.

Digital:-Almost all the leading brands are finding it easier to do focused campaign on
digital media .Quasar, Tyroo, Squad are some important companies , actively involved in
digital marketing and advertising .

Twitter :-In US and Europe brands are also using T-Commerce or Twitter –commerce.
Dell has been actively involved in promotion through twitter

LinkedIn:- Volkswagen recently ran an Application Program Interface(API) based

campaign on Linkedin’s viewer pages. The company got 2,700 product recommendation in
30 days by viewers ,viewing the brand of their interest .

“ Our social media strategy uniquely allows us to listen to and engage with customers;
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directly and through online communities and channel/retail partners, to create technology and
service that help customers do more and do it better, with maximum long-term value”-
Shishir Singh, Marketing Director –Product planning DELL India (2012)

“Overall we spend Rs.90-100 million a year in marketing our products and blogging ,
undoubtedly ,is one of the important parts of this media mix”- Mohit Anand- Managing
Director , Belkin India Sub-Continent

Role of Digital marketing and Internet in Consumer education/awareness

program

There is a tremendous and serious need for consumer education to allow them
to make the right choices. The Internet as a mass medium of information , will play a major
role in driving consumer awareness. Health care industry is one such industry
where we see a huge knowledge gap among consumers .Because of their
ignorance they sometimes make a wrong choice or buy a wrong product and
miss or avoid the much needed one .

Consumer education and mass media communication have helped build trust
and acceptance of nutraceutical products in India .The new entrant are very much anxious in
creating an awareness program regarding food supplements and vitamin and mineral
supplements. Consumer in Indian are confused with regular drugs and life style drugs .
There is widespread fear , suspicion and doubts regarding food supplement and health
enhancing drugs .
People are constantly worried about premature graying , baldness, sexual problems ,
impotency , obesity ,acnes and pimples , dark spot etc , these are not “life threatening
diseases” but “lifestyle disorders”. But unnecessary worries and concern may pave for
tension/hyper tension, diabetes, heart problems etc that are very apparently “life threatening”

The solution is creating an effective advertising campaign through mass media and
consumer generated media. The advertising campaign must not be some colorful
exaggerations and gimmicks, but it should be realistic and effectively constructive .Educate
the people systematically ,convince them of the benefits and usages and leave no fear and
doubts and moreover clarify immediately about any doubts and questions raised by them.
We are in a technological age . Social media is only one among the many gifts of
technology .It has got a tremendous influence on the people .For Companies, it is a powerful
and potent platform to educate and create an awareness among the people .
“Social network offer a unique insight into customer behavior and now companies can
access and harness that information”.
The content generated by consumers through any of the social networking
platform , discussion forums or blogs are collectively termed consumer generated
media(CGM).These days , discussion forums relating any product , be it a mobile handset or
an anti-virus solution , are extensively present on the internet . Several companies are now
offering custom-made tools and solution .According to Forrester research , businesses
have to move to the next big process in “Social Media Listening” in order to sustain the
customer confidence. Businesses cannot remain stuck to traditional means of collecting
data fro social media but must move into next generation listening platform , which have
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much more sophisticated offerings . Social media presents business with vast amounts of
customer information ,extract and filter the useful and relevant information that will help in
building a long-lasting relationship .

It is encouraging to see a lot of Indian companies across industries engaging customers in

the digital landscape. While some have successfully created high volume of conversation
across various channels including blogs, forums, and social media sites, others are reportedly
engaging customers through contests, humorous videos and events on social media.
Leaders are also putting together digital strategies to understand what customer value most
and creating operating models that take advantage of what’s possible for competitive
differentiation .

The reason for the focus on the digital landscape are :- a).Customers are .leaving
behind a lot of data about themselves in the digital landscape ,b) The opportunity to
leverage this data to connect with customers as individuals at the appropriate time,
c)Increasing transparency as a result of activities in the digital space is leading companies
top rework their internal culture .

The increasing focus on the digital landscape is also a reflection of the shift in balance
of power between customer and brands with the former taking charge of the relationship. It
is also an indication of the opportunities and challenges that marketing function will
experience in the days to come.

The digital technology is influencing and transforming the market industry . While
marketing has always been responsible for knowing the customer ,it is now required to
understand and respond to customers as individuals .Marketing can only do this if it
manages vast amounts of unstructured data ,makes sense of it with analytics, and generates
insights that are predictive ,not just historical- all on a massive scale .To connect with
customers at every touch point effectively , marketing needs a system of engagement that
maximizes value with each interaction . It should marry the culture of the organization
with the brand to create authentic experiences that consistently delivers the brand’s
promise. This can be achieved through technology.
Interestingly ,marketing and IT functions have undergone tremendous change in the last
five years. Technology and the insights derived through marketing and IT have
completely transformed how organization –and indeed , society-think, work and innovate.

Re-thinking the market function.

The proliferation of digital natives are giving rise to customers who are more informed . In
the past , marketers profiled broad demographics such as ‘women 25-35 years old’ and ot
really as individuals .Today ,the scenario is very different .Customers are leaving behind a
trail of data about them in the digital landscape and marketers are shifting through this
enormous amounts of data to paint a vivid picture of each person as individuals.
Today ,customers are judging brands by what they do and what they say. In turn, because
of the stream of instant customer feedback via social media, companies are constantly
rethinking the way they design ,produce and market products and services.
With customers increasingly switching between web sites, social networks ,mobile
applications and phone calls in their interactions with companies ,this lack of a unified
approach can have a critical impact on business. Simultaneously the deluge of online
activities that customers are engaged in gives marketers the opportunities to start
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 connecting with individuals one-on –one, to understand what customers expect from the
brands they do business with , to learn how their tastes are changing ,and to target the new
products and services that customers want .To thrive in the new era of the digitally
empowered, socially connected customers, marketers have to leverages the power of
analytics ,big data and social media.
Digitally empowered customers have transformed the market place. So marketers are
remaking their profession. They are trying to develop new skills and relationship and
becoming more crucial to their companies

* Service Marketing Mix*

“Services Marketing Mix refers to the combination of

marketing activities an organization engages in to promote and
sell intangible services, as opposed to tangible products. In
addition to the four Ps of traditional product marketing--
product, price, place and promotion--the services marketing
mix includes the three Ps of service marketing--people, process
and physical evidence. The Services Marketing Mix is also
referred to as the Extended Marketing Mix”
Deterioration in their traditional manufacturing industries, and a growth in the service
economies. The Traditional marketing mix has been extended and adapted to create the
services marketing mix, also known as the 7P's or the extended marketing mix – “physical
evidence, process and people”.

7 Ps of Service Marketing MIX

Product Price Place Promotion People Process Physical

evidence

The extended marketing

mix

The 7Ps of the marketing mix can be discussed as:

Product: - It must provide value to a customer but does not have to be tangible at the same
time. Hotel service or Education industry are best example for service product .The most
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important issue in the service product is understanding what benefits and satisfaction the
consumer is seeking from services. The Benefits, Offers and Forms of service are in
accordance with the perception of the customer

Price: - Pricing must be competitive and must entail profit. The pricing strategy can comprise
discounts, offers and the like. It is mostly labor based. The perishability nature of service
makes service difficult .The higher the intangibility the more difficult it is to calculate cost
and greater the tendency toward non-uniform services, such as consultants fees, fees of
lawyers . But for a tangible product like bike service, a uniform fees can be fixed and
measured at any level.

Place: - It refers to the place where the customers can buy the product and how the product
reaches out to that place. This is done through different channels, like Internet, wholesalers
and retailers. Even making calls to the customer , and dropping in for periodic visit for
checking

Promotion: - It includes the various ways of communicating to the customers of what the
company has to offer. It is about communicating about the benefits of using a particular
product or service rather than just talking about its features.

People: - People refer to the customers, employees, management and everybody else
involved in it. Because quality depends upon the people who constitute the organization .
It is essential for everyone to realize that the reputation of the brand that you are involved
with , is in the people's hands. How the employees of the Organization behaves with
customer ,is reflected on the product and services.

Process: - It refers to the methods and process of providing a service and is hence essential to
have a thorough knowledge on whether the services are helpful to the customers, if they are
provided in time, if the customers are informed in hand about the services and many such
things.

Physical (evidence): - It refers to the experience of using a product or service. When a

service goes out to the customer, it is essential that you help him see what he is buying or not.
For example- brochures, pamphlets etc. serve this purpose. Besides the infrastructure of the
shop /company too play an influential *GREEN
role
MARKETING*

In late (eighties) 1980 a document prepared by the world commission on Environment

and Development, defined sustainable development as meeting the needs of the present
without compromising the ability of future generation to meet their own need. This makes
essential to have environmentally friendly products.
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Green marketing means promotion of products with environmental characteristics e.g.
recyclable, refillable, ozone friendly, phosphate free and environmentally, friendly. But it is
not limited to it. It is much wider concept and applicable to consumer goods, industrial goods,
and even services some like hotels & resorts. In short green marketing includes a broad range
of activities like, product modification, changes in the production process, changes in
packaging and truthful advertising.
As we know pollution is the price we pay for our industrial progress, and everyone is affected
by it. Industrialization is mainly responsible for the problem of environmental pollution. It
disturbed the ecological balance and gives very visible adverse effects. Here every
businessman efforts are to be directed & diverted to maintain cleans and healthy environment
to fulfill their social responsibilities.
Definition:-
Green marketing is the marketing of products that are presumed to be environmentally safe‖
American Marketing association

IMPORTANCE OF GREEN MARKETING

1. Sustainable Development. The benefit of green marketing is sustainable
development. Nature‘s resources should be used for development and improving the
quality of life of not only present generation, but also to ensure that the environment
is not degraded so that the future generation does not suffer.

2. Less Pollution. Green marketing helps in reducing pollution. The technologies that
are use under green technology keep pollution to the minimum and make the life
comfortable & suitable to live.

1. Less Government Control. There are certain regulation are made by government to
protect the consumer in a different ways. There are some regulations relating to
environmental marketing like, Reduction of harmful goods, Modifying consumer &
industries consumption of harmful goods & ensure that consumers have the ability to
evaluate the environmental consumption of goods. The organization which produces
goods are in the interest of the society then there are less control of government as
organization hare taken care of societies expectation.
2. Capital Influence .A company adopting green technology is likely to receive more
capital influence not only from people within the country but also from outside. With
such a good inflows of capital organization can further or for better technology which
is environmental friendly

Chapter-12
MARKETING RESEARCH –DEFINITION, SCOPE AND PROCESS.
MARKETING RISK AND MARKETING AUDIT

13
MARKETING RESEARCH

Definition:-
• According to American Marketing Association:- “The function that links the
consumer , customer and public to the marketer through information –information
used to identify and define marketing opportunities and problems; generate , refine
and evaluate marketing actions; monitor marketing performance ;and improve the
understanding of marketing as a process. Marketing research specifies the
information required to address these issues , designs the method for collecting
information ,manages and implements the data collection process, analyses the result
, and communicates the findings and their implication.”

• Market research refers to “ finding out information about the market for a
particular product or service”.

• Marketing and market research provides information ,which can be used in making
decision .
Marketing Research process:

Steps in the marketing research process.

Step.1:-Setting marketing Objectives .

What is the purpose of this process and Why this Research is been conducted?.
Identify the problem that has to be rectified and resolved.-Whether the problem is internal
or external – with the product(its quality, shape size ,color etc.) or with the promotion (not
creating the intended awareness program to the target market , etc.).When the problem is
properly identified the rest of the planning or research , process will be easy
Step.2:-Define the research Problem.
Make no mistake in defining the research problem. It establishes the area of research and
the type(s) data required .
One must have to decide the type of research design is required. The various types of
research approaches /design are:-
– Exploratory research.
– Descriptive research.
– Causal research.
•
• Exploratory:- Exploratory Research is a blanket term covering whatever style is
adopted before the main research effort is enacted. The need for this research is
required in the following situations:
i). Where the researcher is totally ignored about the subject.
ii).Where the researcher wants to generate a meaningful hypothesis before the starting
the main study and to diagnose the problem in the meaningful way

• Descriptive:-Descriptive research calculates the intensity and frequencies with

which things happen and the degree of correlation between different variables. It
aims to reveal the ‘facts’.
Descriptive research is often designed to secure specific information and find answer to
the question such as:
-what is the favorite…?
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-what type of people like…?
- How many people like…?

• Causal research:-If descriptive research discovers facts- causal research , as it

name suggest, aims to ensure the cause of happenings taking place.

[Link] the value of the research:-

• The proposed research must assessed in terms of cost and expense. Whether it is
practical , economical and feasible enough.

• [Link] the research proposal:-

After defining the problem of the research and selecting the research type ,the next
step is to a proposal must be made by which both the parties must confirm on .

• [Link] the data Collection method:-

There are two types of information in marketing research that may be collected
through one of the three research designs:-
• Quantitative –Involves the analysis of numerical information. it ranges from the
simple ,counting to the more complex statistical methods. The main question to be
answered is “how many?”
• Qualitative-Involves the collection of information on attitudes , beliefs and
behavior. It answers the question “why?”

Data can be –either Primary or Secondary

Primary data- Is an on-hand information some primary sources of data collection methods
are ;
• Surveys.
• Observation research.
• Experimentation.

• Surveys:
-postal research questionnaire
-telephone research
-face-to-face interviews
-diary panels.
-internet search.

• Secondary data:-Are those data that are already available and are used for reference
etc. some sources of secondary data are:-
• Trade sources-industrial magazines, journals etc
• Government statistics.
• Media
• Off-the-self reports-project etc
• Directories.
• Syndicated services-agencies
• Libraries.
• Online sources
• Financial reports and other internal data relate various functional
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 areas.

• [Link] the Techniques of measurement.

Measurement is the process of turning the factors under investigation into
quantitative data .It requires an appropriate scale of measurement on which features
can be measured. For example:-

Scale of for attitude towards a product:

Positive Negative Neutral.

• Step.7 Sample selection.

Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern,
especially for the purposes of finding answer

• Sample may be selected on the basis probability and non-probability.

The sampling question that a researcher must answer are:

[Link] or what is the target population?

[Link] population list will be used as the basis from selecting a

sample(sampling frame)?

[Link] sampling approach will be use(sampling procedures)?

[Link] big the sample size?

– Target population.- ‘Population’ in statistical terms does not necessary refer

to people ;it means the entire body of items about which the information is
required.

b).Sampling frame-is a list of all those in the population of interest

c).Sampling procedure- an important step in sampling. There are two types of

sampling procedures:-

[Link]
[Link]-probability

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 • Probability sampling.
Samples must be preferred for selection on their basis of their known probability.

[Link] random Sampling :-when each member of the population has equal chances of
being selected.

• [Link] sampling:- Divide the population into mutually exclusive sub-group or

strata(such as age, sex, income etc.)

• [Link] Sampling:- A group or cluster of sample elements (members are selected

at a time)
• Non-Probability.
• Non-Probability.
• Samples are selected
in a non-random manner.
• [Link]:-Occurs when researcher selects the sample on the basis of
convenience of the researcher and the sample selected.
•
• [Link]:- In quota sampling, the population is first segmented into mutually
exclusive sub-groups, just as in stratified sampling, and is used to select the subjects
or units from each segment based on a specified proportion. For example, an
interviewer may be told to sample 50 girls and 100 boys between the age of 16 and
19. This means that individuals can put a demand on who they want to sample . Quota
sampling is useful when time is limited and a sampling frame is not available
•
• Step8. Data collection

• The next step is Data collection and that is done with the help of Questionnaire and
other sources-The researcher actually goes out and gets the data.

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 • Step9. Analysis and Evaluation of Results

• Analyze the results , check whether the result matches with the objectives and
answers the problems .

• Step [Link] the Findings

• Once the research process has been completed , the researcher will usually present
the findings.

I).Market Risk :
Market is always dynamic in nature .Sometimes things do not go according to the plans. The
uncertainty in the market sometimes prevents the organization to actually follow as per the
standards laid down. The types of risk one face in the market are:-

• Time Risk:-The organization go for mass production , in anticipation

of the demand for the demand for the product .But sometimes the customer
preference may change and there will be no demand for the product.
Unfortunately the Wholesaler and the Retailer have to bear the cost and expense
of the piled up stocks, since there is a shift in the customer/consumer behavior.

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 • Place Risk:-Price of the product vary in accordance with places and
location ,at the same time .The demand and supply of the products vary from
place to place .The risk can be averted if the marketer has a thorough knowledge of
the market and market segmentation.
• Competition Risk:-The whole concept is based on the principle of “survivor of
the Fittest”. The best Organization who can provide superior quality product at
economic price will survive in the long run.
The Competitors can create a lot of problem for the organization .In terms of pricing,
better products in terms of quality, usage and durability.
• II).Natural Risk:-
Certain Risk are inevitable and irreparable. Sometimes Mother Nature cannot be able her
fury over human-being and it is expressed in the form of Earth-quake, Flood, Draught.
Hurricane . tornado etc. These Inevitable calamities create tremendous impact on life and
property. When the Place becomes the victims of these natural calamities the whole
economy of that place is badly affected and takes time recover to normal state.

*Strike, unrest, dispute between management and worker

*New taxation policy and restriction from the part of government.

*Un-necessary loss due to wastage of material and misuse of the

*Material that result in heavy expenses.

• Prevention of Risk: A ’Proactive’ steps must be taken to avoid any sort of

risk.-“prevention is better than cure”. It can be possible when the Organization
takes certain precautions ,these precaution are possible and practical in
implementing .
• -Safety measures has to be installed in order prevent theft and exploitation.
• -Study the environment carefully , make thorough analysis of possible threat and
opportunities.

• Reduction of Risk: Some risk are unavoidable and has to be confronted at any cost.
To mitigate the unforeseen events, the Organization has to take some precautions
like:
-Concentrate on innovation.
-When there is a possibility of low demand /no demand- prepare for stock reduction and
sales promotion activities.
-Conduct proper market research.
-Rethink and re-analyze the marketing strategies and market plan
• Shifting of Risk: Shifting of Risk is another strategy to handle risk. Insurance is
one important steps to shift the risk of the Organization .The importance of
insurance of marketing lies in the fact that it helps in eliminating uncertainty.

MARKETING AUDIT
A marketing audit is a comprehensive systematic, independent and periodic examination of a
company’s marketing environment objectives ,. Strategies and activities with a view to
determine problem areas and opportunities and recommending a plan of action to improve the
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company’s marketing performance
• Marketing Audit Process
Step-1:- Setting the Objective and Scope
The auditor have to work out an agreement on the objectives, coverage, depth, data sources,
report format, and the time period for the audit.
Step-2:-Gathering the Data
The Internal and external source ,the primary and secondary data are selected for collecting
data .

COMPONENTS OF THE MARKETING AUDIT.

A full marketing audit as having six major component.
a).Marketing Environment Audit.
By marketing environment, we mean both the macro-environment surrounding the industry
and the task environment(Internal) in which the organization intimately operates.
b). Marketing Strategy Audit.
The marketing auditor then proceeds to consider whether the company’s marketing strategy is
well stated in the light of the opportunities and problems facing the company. The starting
point for the marketing strategy audit is an analysis of corporate goals and objectives
followed by the marketing objectives

c). Marketing Organization Audit.

A complete marketing audit would have to cover the entire Organization-its functional
department- marketing and sales department , finance, purchasing, and research and
development.
d). Marketing Systems Audit.
A full marketing audit then turns to examine the various systems being used by marketing
management to gather information, plan, and control the marketing operation. Some of the
following systems that are used: sales forecasting, sales goal and quota setting, marketing
planning, marketing control, inventory control, order processing, physical distribution, new
products development etc/
e). Marketing Productivity Audit.
A full marketing audit also includes an effort to examine key accounting data to determine
where the company is making its real profits and what, if any, marketing costs could be
minimized.
f). Marketing Function Audit.
The work done to this point might begin to point to certain key marketing functions which are
performing poorly such things as advertising programs, media, and timing are not evaluated
for their effectiveness etc.

• COMPONENTS OF A MARKETING AUDIT

• The Marketing Environment Audit
• I. Micro-Environment
• Economic-Demographic
– What does the company expect in the way of inflation, material shortages,
unemployment, and credit availability in the short run, intermediate run, and
long run?
– What effect will forecasted trends in the size, age distribution, and regional
distribution of population have on the business?
• Technology
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• What major changes are occurring in product technology? In process technology?
• What are the major generic substitutes that might replace this product?
•
• Political-Legal
• What laws are being proposed that may affect marketing strategy and tactics?
• What federal, state, and local agency actions should be watched? What is happening
in the areas of pollution control, equal employment opportunity, product safety,
advertising, price control etc., that is relevant to marketing planning?
• Socio-Cultural
• What attitudes is the public taking toward business and toward products such as
those produced by the company?
• What changes are occurring in consumer life-styles and values that have a bearing
on the company’s target markets and marketing methods?
•

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