Introduction to Marketing

management

Marketing Environment

Dr. R. Renganathan
Professor, School of Management
SASTRA Deemed University, Thanjavur – 613 401
renganathan@[Link]
Objectives
You should be able to :
1. Understand the environmental forces that affect the
company’s capability to serve its customers
2. Explain how changes in the demographic and
economic environments affect marketing decisions
3. Classify the major trends in the firm’s natural and
technological environments
4. Describe the key changes in the political and cultural
environments
5. Know how companies can react to the marketing
environment

2
The Marketing Environment
The marketing environment contains
the players and forces which are outside
to the marketing that affect marketing
management’s capability to build and
maintain successful relationships with
customers.

Source: Principles of Marketing,3E, Kotler, Keller,Ang,Leong, Tan,,Hon-Ming

3
Marketing Environment
✔ The Company’s
Microenvironment
✔ The Company’s
Macroenvironemnt
✔ Responding to the
Marketing
Environment
Marketing Environment
▪ Task environment (Micro environment)
-Company, suppliers, distributors, dealers,
and the target customers.
▪ Broad environment(Macro environment)
• Demographic , economic, natural,
technological , political-legal , and
social-cultural environment.
-PESTEL

5
 Microenvironment
The microenvironment entails the players close to the
company that affect the company, suppliers, marketing
intermediaries, customer markets, competitors, and
publics.
The macroenvironment
The macroenvironment consists of the larger forces that
affect the company
Microenvironment
Company Suppliers
Internal environment • Offer the required
includes:
resources like raw
• Top management materials to produce
• Finance goods and services
• Accounting • To provide customer
value, firms have to
• Purchasing build rapport with
• Operations suppliers & treat them
as partners

8
Microenvironment
• Marketing Intermediaries
Resellers: Wholesalers; Retailers
Physical distribution firms:
Facilitate the firm to store and
transport the goods from their points
of origin to their final destination
(consumption)
• Customers : Customer markets
(B2C); Business markets (B2B);
Government markets
• Competitors

9
Microenvironment
Publics:
Groups which have an actual or potential
interest in or impact on an firm’s capability
to attain its objectives:
• Financial publics
• Media publics
• Government publics
• Citizen-action publics
• Local publics
• General public
• Internal publics
Source: Principles of Marketing,3E, Kotler, Keller,Ang,Leong, Tan,,Hon-Ming

10
The Company’s
Macroenvironment
• Demographic environment
• Economic environment
• Natural environment
• Technological environment
• Political environment
• Cultural environment
Macroenvironment
Demographic Environment

• Study about human populations in terms of

size, density, location, age, gender, race,
occupation is known as Demography.
• Demographic environment deals with
people, and people make up markets, hence
it is very significant.
• When we consider the trend it entails age,
family structure, geographic population
shifts, educational characteristics, and
population diversity.
Demographic Environment

Source: [Link]
Macroenvironment
Economic Environment
Factors that affect consumer purchasing
power and spending patterns are the major
aspects of Economic environment.
• Consumption of majority of their
own agriculture and industrial output
is known as Subsistence economies .
• Industrial economies are richer
markets.
-Changes in Income
Marketers provide value to the price
sensitive customers with quality
product at a fair price
Macroenvironment
• Income distribution
• Upper-class
• Middle-class
• Lower /Working-class
Changes in the consuer buying
behaviour - Spending
pattern
Macroenvironment
Natural Environment

• Natural environment comprises

marketing activities which are
affected by the inputs that are
obtained from natural resources
• Trends in Natural
environment
• Raw materials shortages
• Pollution
• Government intervention
• Environmentally
sustainable strategies
• Green marketing
Source: Principles of Marketing,3E, Kotler,
Keller,Ang,Leong, Tan,,Hon-Ming
The Company’s Macroenvironment
Technological Environment
• Digital revolution and other main
changes in the business
environment and marketplace
• Fast change
• Paves the way for new markets
and new opportunities
• Internet
• Healthcare
• Compactness
• Weapons
• Debit, Credit cards
• Communication
Source: Principles of Marketing,3E, Kotler, Keller,Ang,Leong,
Tan,,Hon-Ming
The Company’s
Macroenvironment
Political Environment

Political environment
entails many
organizations and
individuals in a
particular society
influenced or limited
by laws, government
agencies, and pressure
groups .
The Company’s Macroenvironment
Political Environment

• Business legislation regulating public

policy to guide commerce—
For the welfare of the society at large
business regulated by sets of laws and
regulations
• Legislation to:
• safeguard companies; consumers
and interests of society

3-19
The Company’s Macroenvironment
Political Environment

Importance given to Ethics and Corporate Social

responsibility
Firms safeguard the long-term interests of their
consumers and the environment is Socially
responsible behavior
• A type of Corporate Social Responsibility
(CSR) is Cause-related marketing

Source: Principles of Marketing,3E, Kotler, Keller,Ang,Leong, Tan,,Hon-Ming

3-20
Cultural Environment

Cultural Environment

The cultural environment

comprises of institutions and
other forces that affect basic
values, perceptions, and
behaviors of a society .
Core beliefs and values
Secondary beliefs and values
• Based on how people
view about ‘themselves;
others ;organization;
society; nature and the
universe’ accordingly a
society’s cultural values
are articulated
How to respond to the dynamic
Marketing Environment?
Opinions on reacting
• Uncontrollable factors
• Marketers can react and adapt to the
forces in the environment either
proactively or reactively or both
• Proactive
• To control the forces in the environment
marketers can take strong actions
• Reactive
• Marketers can watch and react to forces
in the environment
Source: Principles of Marketing,3E, Kotler, Keller,Ang,Leong, Tan,,Hon-Ming
Name of the Course: Marketing Management

Lecture16: Setting Product strategy 2

Packaging, Labeling & Branding

Dr. R. Renganathan
Professor, School of Management
SASTRA Deemed University,Thanjavur – 613 401
renganathan@[Link]

1
Objectives
⚫ To understand the packaging and its
objectives
⚫ To know how can packaging be used as a
marketing tool
⚫ To understand about labeling and its
significant functions
⚫ To understand the various aspects of
branding strategies

2
Packaging
All the activities of designing and producing
the container for a product.
Packaging objectives
✔ Identify the brand
✔ Convey descriptive and persuasive
information
✔ Facilitate product transportation and
protection
✔ Assist at-home storage
✔ Aid product consumption
3
 Packaging-Used as a marketing
tool

❖ Self-service
❖ Consumer affluence
❖ Company and brand image
❖ Innovation opportunity

4
Innovations in Packaging
Direct marketing
Direct selling
Automatic vending
Buying services

5
Labelling
⚫ Labelling is the display of label in a
product.
⚫ A label contains information about a
product on its container, packaging, or the
product itself.
⚫ It helps the product to be unique in
the market, and also identifies it as a part
of a particular brand.

6
 Labelling

Source: [Link]
7
Functions of Labels

✔ Identifies
✔ Grades
✔ Describes
✔ Promotes

8
Brand
⚫ The American Marketing Association
defines a brand as “A name, term, design,
symbol, or any other feature that
identifies one seller's good or service as
distinct from those of other sellers.
⚫ The legal term for brand is trademark.

9
Branding
⚫ Branding is a process which involves
creating a specific name, logo, and an
image of a particular product, service or
company.
⚫ Brand is like the public face and
personality of a company
⚫ Common examples include the Nike
"swoosh," the golden arches of
McDonald's and the apple used by
Apple Computers.

10
 Brands role
Role of brands for consumers
A brand is actually a promise between the
firm and the consumer.
•Brand is able to create & fulfill
expectations
• Brands can help to reduce risk
• Brand can facilitate decision making
• Take on personal meaning
• Brand is part of identity

11
Role of brands for firms
•Brands facilitate handling of product
• Useful for accounting & inventory can
be organized
• Brands provide legal protection
• Brands can create loyalty to the brand
• With the help of brands firm can
leverage competitive advantage

12
Brand equity
⚫ Brand equity determines its worth which
is the value and power of the brand .
⚫ It is an intangible asset to an organization
Elements of Brand equity
⚫ Brand awareness
⚫ Brand loyalty
⚫ Brand association
⚫ Perceived quality

13
Brand promise

•The marketer’s vision of what the

brand must be and do for
consumers
• Brand promise is to enter categories
where customers’ needs are not
well met, do different things, and
do things differently, all in a way
that better meets those needs.
14
Brand elements
⚫ Brand name-Nike
⚫ Logo-
⚫ Slogan-Just do it

15
Brand Positioning
⚫ Positioning
The act of designing a company’s offering
and image to occupy a distinctive place in
the minds of the target market
One result of positioning is the
successful creation of a
customer-focused ‘Value proposition’

16
 Value proposition

Company & Target customers Value proposition

Product

Domino’s Convenience-minde A delicious hot

(Pizza) d pizza lovers pizza, delivered
promptly to your
door

17
Developing Brand positioning
Define target
audience

Define frame of
reference

Establish points of
parity

Establish points of
difference

18
Points -of -Parity & Points- of
difference
⚫ Points-of-difference (PODs)
Attributes/benefits that consumers strongly
associate with a brand, positively evaluate,
and believe they could not find to the same
extent with a competitive brand
⚫ Points-of-parity (POPs)
Attribute/benefit associations that are not
necessarily unique to the brand but may in
fact be shared with other brands

19
Points -of -Parity & Points- of
difference
Points -of –Parity
✔ Categories Points -of -Parity
✔ Competitive Points -of -Parity

Points- of difference
✔ Relevance
✔ Deliverability

20
Brand mantras
⚫ A brand mantra is a three- to
five-word articulation of the heart
and soul of the brand and is closely
related to other branding concepts like
“brand essence” and “core brand
promise.”
Examples:
⚫ Nike: Authentic Athletic Performance. ...
⚫ Disney: Fun Family Entertainment. ...
⚫ BMW: Ultimate Driving Machine. ...

21
Devising a Branding Strategy
⚫ Brand extension
⚫ Sub-brand
⚫ Parent brand
⚫ Master/family brand
⚫ Line extension

22
Name of the Course: Marketing Management

Lecture 5 : Designing Pricing Strategies and Programs

Dr. R. Renganathan
Faculty Member, School of Management
SASTRA Deemed University,Thanjavur – 613 401
renganathan@[Link]

1
Objectives
We will address the following questions:
⚫ How companies price a new good or
service?
⚫ How prices can be adapted to meet
varying situations?
⚫ When price changes should be initiated?
⚫ How soon companies should react to
competitive price changes?

2
Many Names of Prices
⚫ Rent ⚫ Dues
⚫ Interest
⚫ Tuition
⚫ Donation
⚫ Fare ⚫ Bribe
⚫ Rate ⚫ Salary
⚫ Monthly ⚫ Commission
payment ⚫ Wage
⚫ Tax
⚫ Fee

3
Steps in setting price

4
Step 1: Selecting the Pricing Objective
⚫ Survival
⚫ Maximum current profit
⚫ Maximum market share
⚫ Maximum market skimming
⚫ Product-quality leadership

5
Step 2 Determininig demand
✔ Understand factors that affect
price sensitivity
✔ Estimate demand curves
✔ Understand price elasticity of
demand
•Elasticity
•Inelasticty

6
Inelastic & Elastic demand

7
Factors Leading to Less Price
Sensitivity
⚫ The product is more distinctive
⚫ Buyers are less aware of substitutes
⚫ Buyers cannot easily compare the
quality of substitutes
⚫ The expenditure is a smaller part of
buyer’s total income
⚫ The expenditure is small compared to
the total cost of the end product

8
Conditions Under Which Demand
is Less Elastic
⚫ Buyers are
⚫ There are few
slow to change
or no
their buying
substitutes
habits and
⚫ Buyers do not
search for
readily notice lower prices
the higher
⚫ Buyers think
price
higher prices
are justified9
Step 3 Estimate Costs
⚫ Types of costs and levels of
production must be considered
⚫ Accumulated production leads to
cost reduction via the experience
curve
⚫ Differentiated marketing offers
create different cost levels
10
Cost Terms and Production

11
Cost per Unit as a Function of
Accumulated Production

12
Tata motors developed ‘Nano’its
small car with a target price

13
Key Pricing Terms
Fixed costs: do not vary directly
with changes in level of production
Variable costs: vary with
production
Total costs: sum of fixed and
variable costs a given level of
production
Average cost: cost per unit at a
given level of production 14
Step 4 Analyzing competitors’
costs, prices and offers
❖ Firms must analyze the
competition with respect to:
✔Costs
✔Prices
✔Possible price reactions
❖ Pricing decisions are also
influenced by quality of offering
relative to competition 15
Step 5 Selecting a pricing method
⚫ Price-setting
begins with the
three “C’s”
❖ Select method:
Markup pricing
Target-return
pricing
Perceived-value
pricing
Value pricing
Going-rate pricing
Auction-type
pricing
16
Break-Even Chart

17
Auction-Type Pricing
⚫ Englishauctions
⚫ Dutch auctions
⚫ Sealed-bid auctions

18
Step 6: Selecting the Final Price
Impact of other marketing
activities
Company pricing policies
Gain-and-risk sharing pricing
Impact of price on other parties

19
Price-Adaptation Strategies
⚫ Geographical Pricing
⚫ Discounts/Allowances
⚫ Promotional Pricing
⚫ Differentiated Pricing

20
Price-Adaptation Strategies
Geographical Discounts/
❑ Barter
Allowances
❑ Cash discount
❑ Compensation
❑ Quantity
deal
discount
❑ Buyback
❑ Functional
arrangement discount
❑ Offset ❑ Seasonal
discount
❑ Allowance 21
Promotional Pricing Tactics
⚫ Loss-leader pricing ⚫ Longer payment
⚫ Special-event terms
pricing ⚫ Warranties and
⚫ Cash rebates service contracts
⚫ Low-interest ⚫ Psychological
financing
discounting

22
Differentiated Pricing
❖ Customer-segment pricing
❖ Product-form pricing
❖ Image pricing
❖ Channel pricing
❖ Location pricing
❖ Time pricing
❖ Yield pricing

23
Product mix pricing tactics
⚫ Product-line ⚫ Two-part pricing
pricing ⚫ By-product
⚫ Optional-feature pricing
pricing ⚫ Product-bundle
⚫ Captive-product pricing
pricing

24
Initiating and Responding
to Price Changes
⚫ Strategic Options Include:
◦ Maintain price and perceived quality;
selectively prune customers
◦ Raise price and perceived quality
◦ Partially cut price and raise quality
◦ Fully cut price, maintain perceived quality
◦ Maintain price, reduce perceived quality
◦ Introduce an economy model

25
Brand Leader Responses to
Competitive Price Cuts
⚫ Maintain price
⚫ Maintain price and add value
⚫ Reduce price
⚫ Increase price and improve quality
⚫ Launch a low-price fighter line

26
 Digital Marketing and its Significance

[Link]
Faculty Member
School of Management
SASTRA Deemed to be
University
Thanjavur
Tamil Nadu
 1
Learning Objectives

1. To discuss the digital marketing scenario in India

2. To explain the concept of Digital Marketing
3. To understand the domain of Digital Marketing
4. To discuss the significance of Digital Marketing
Source:[Link]
 Indian Population will be
59%
using internet by 2021
Cisco Visual Networking
Index
 250-260$

120-130$

2011

2017
Falling Smartphone prices
Mobile Phones are
What is Digital Marketing ?

“Digital marketing is the practice of promoting products

and services using digital distribution channels to reach
consumers in a timely, relevant, personal and
cost-effective manner”
(Reitzin, 2007)

Digital Marketing is the process of MARKETING of

Products and services by using internet and
digital devices like computers, tablets, mobile
phones etc
Digital Marketing is the process of MARKETING
of Products and services by using internet and
digital devices like computers, tablets, mobile
phones etc
Marketing is a process of identifying customers’ needs
and satisfying those needs by delivering the products
or services by creating the value for customers as well
as for the business

Identification of needs
Satisfaction of needs
Delivering Products or Services
Creating value for customers
Creating value for customers
Example

And Many
Pricing Product Promotion
More…
Example

And Many
Pricing Product Promotion
More…
Example

And Many
Pricing Product Promotion
More…
 30%

20%

15% 15%

Digital
13%

Cinema
Radio
4%

OOH
TV

Print
Projected Change in % from 2019-20
Recent Development in the Digital Era
Growth of Internet users
Growth of Smart Phone Users Penetration of Social Media
Concept of Digital Marketing
Recent trend in Digital Ad Expenditures
All the Activities which are performed as a part of
digital marketing process
 Website Search Engine
Search Engine
Planning and Optimization
Marketing
Development (SEO)

Email-
Display Social Media
Marketing
Advertising Marketing

Content Mobile Affiliate

Marketing Marketing Marketing

Online Digital
WEB Analytics Reputation Marketing
Management Strategy
Website Planning and Development
Don’t know about HTML
Don’t Know about Computer
No Knowledge of Coding
 Website
Planning and
Development

Developing a website is very important

as we will learn all digital marketing
techniques through our website e
 Website Planning and Development

Website is the backbone of digital marketing and it plays a very significant role in all digital marketing
activities.
Search Engine Optimization
SERP: Search Engine Result Page

In -Organic Results

Organic Results
Application of various SEO tools and techniques helps a website to appear on the First
page of SERP against the search query
Search Engine Marketing
Search Engine
Marketing
How does Google Decide that an Ad will be
visible in Search Results
Quality of Ads
Amount willing to
pay Search Engine
Deciding Factors Marketing
Selection of Key
Words
Amount Competitor ready
to pay
Display Advertising
 Display
Advertising
 Display
Advertising

Designing of display ads and targeting

of the right audience
Social Media Marketing
Social Media
Marketing
How to Design and Target the Right Audience on Social media
Platforms
Email-Marketing
 Email marketing refers to target
your potential customers through Email-Marketing
mail
Content Marketing
 Content
“Content marketing is a strategic Marketing

marketing approach focused on creating

and distributing valuable, relevant, and
consistent content to attract and retain a
clearly defined audience and, ultimately, to
drive profitable customer action”
Content Marketing Institute,
Digital Marketing is not possible without
content. Content marketing is part of
•Social Media Marketing
•SEO
•PPC- Display Advertising
•SEM
 Digital Marketing is not possible without content.
Content marketing is part of
•Social Media Marketing
•SEO
•PPC- Display Advertising
•SEM
Mobile Marketing
 Mobile
Mobile marketing is a multi-channel, digital Marketing

marketing strategy aimed at reaching a

target audience on their smartphones,
tablets, and/or other mobile devices, via
websites, email, SMS and MMS, social
media, and apps.
Affiliate Marketing
 Affiliate marketing is the process of
Affiliate
promoting the others business’ and in Marketing
return getting the commission . This
promotion done usually through blogs,
websites , emails or social media pages
WEB Analytics
 Web Analytics
Measuring and tracking the performance of
marketing efforts is very important part of digital
marketing process
Online Reputation Management
 Online
•Online reputation management (ORM) is the practice of crafting Reputation
strategies that shape or influence the public perception of an Management
organization, individual or other entity on the Internet.
•It helps drive public opinion about a business and its products
and services.
Digital Marketing Strategy
Website Planning and Development
Search Engine Optimization
Search Engine Marketing
Display Advertising
Social Media Marketing
Email-Marketing
Content Marketing
Mobile Marketing
Affiliate Marketing
WEB Analytics
Online Reputation Management
Digital Marketing Strategy
∙ Case study
Gionee
[Link]
Vogue India
Star Sports
Tata Motors
Fevikwik
Paytm
ICICI
What is mobile marketing?

Mobile marketing is a multi-channel, digital marketing strategy aimed at

reaching a target audience on their smartphones, tablets, and/or other mobile
devices, via websites, email, SMS and MMS, social media, and apps. In recent
years, customers have started to shift their attention (and dollars) to mobile.
Because of this, marketers are doing the same in order to create true
omnichannel engagement. As technology becomes more fragmented, so does
marketing. And in order to earn and maintain the attention of potential buyers,
content must be strategic and highly personalized.

When it comes to mobile marketing, this means keeping devices in mind and
utilizing SMS/MMS marketing and mobile apps. Mobile marketing is an
important piece of the puzzle when it comes to building out any short-term or
long-term marketing plan. From email, to pay-per-click (PPC), search engine
optimization (SEO), content marketing, and social media marketing, there is a
mobile marketing channel to reach every part of your audience where they are
most comfortable. For mobile marketing to be effective, you need to curate a
cohesive experience that customers expect—and that can be a real challenge as
you work to acquire, engage, and retain users across a variety of platforms.

Mobile marketing can do wonders for driving brand value and demand for your
products or services by leveraging mobile devices to connect with more
consumers in real time at any point in the customer lifecycle. Mobile is also
growing steadily. According to eMarketer, mobile versus desktop usage stats in
the United States in 2018 show that the mobile-only audience will grow to 55.7
million (nearly 19%) by 2022, and Adweek estimates that 79% of smartphone
users have their phones on or near them all but two hours a day. Today, there are
more mobile devices in the world (8.7 billion) than people (7.1 billion), due
largely in part to our voracious appetite for new technology. U.N. data analysts
have found that in the United States, 71.5% of citizens over the age of 13 have a
smartphone, and 66.5% have smartphones globally (WorldoMeters U.N. data,
GSMA Intelligence). To harness the growing power of mobile marketing, you
must focus on creating a seamless experience that your audience expects.

"For me, the future of mobile marketing lies in connecting the dots between
online and offline media. Mobile is such a powerful tool when used in
conjunction with other, more traditional, media and should be seen as the glue
that binds everything together.”

Mobile Marketing

Mobile marketing is the kind of marketing, where the advertisements need to

 appeal to the mobile device users. Mobile marketing provides potential
customers using smartphone with their own personalized convenient time at
their own comfortable location, according to their choice, to browse through
the options they are entitled to, on the go.

In todays world, if one does not have mobile marketing, they should that the
era of mobile has already arrived and its been a while.

Strategies of Mobile Marketing

-​ App- based Marketing
-​ In-game Marketing
-​ QR Codes
-​ Location-based Marketing
-​ Mobile search ads
-​ Mobile Image ads
-​ SMS

Best Practices for Mobile Marketing

-​ Be clear and concise
-​ Optimize for Local
-​ Consider your Audience
-​ Experiment with Different Strategies
-​ Benchmark Your Results
Mobile marketing campaign
Mobile marketing is a way to promote products or services through mobile
devices. With this strategy, target consumers access location and time-sensitive
customized content that promotes certain products, services, or ideas. After
registering with SendPulse, you can start your mobile marketing.

#2 Ford: Send us a Text

THE CAMPAIGN: To promote the release of their new Escape and Taurus
models, Ford asked people to text the word ‘FORD’ to them for more
information. These prospective customers were then asked in a return text for
the type of vehicle they were inquiring about, their name, and zip code. Later, a
local Ford dealer would follow up.
THE RESULTS: a 15.4% conversion rate for dealers representing millions in
sales.

#6 Dominos Pizza Creation App

THE CAMPAIGN: This Dominos app is essentially a pizza creation game that
allows participants the opportunity to order the exact pizza they create in the
game.

THE RESULTS: 53% of digital sales through the app, 50% cost reduction in
cost per click, created 3 times more mobile users, 63% overall increase in sales.
The Content Marketing Institute, an online resource for information on all
things content marketing related, defines content marketing thusly:

Content marketing is a marketing technique of creating and distributing

valuable, relevant and consistent content to attract and acquire a clearly
defined audience – with the objective of driving profitable customer action.

The key word here is “valuable.” It’s what changes this definition from one that
could describe almost any form of advertising or marketing. You can tell if a
piece of content is the sort that could be part of a content marketing campaign
if people seek it out, if people want to consume it, rather than avoiding it.
If you want to win in today’s digital landscape, your success is going to rely
heavily on quality content that meets user intent. With every algorithm
update, Google representatives have stressed the importance of relevant
content and, in many cases, improving content quality has become their
sole piece of advice.
In order to establish what ‘relevant content’ means to your brand, you’ll
need to know who your audiences are, what queries they are typing into
search engines and what they talk about amongst themselves. Based on
the gaps in your existing content – and that of your competitors – you’ll
need to tackle the challenge of developing content campaigns that are
specifically designed to achieve your (digital) marketing goals.
What is Content?
What is Copy?
If you want to make the most of your content marketing, understanding the
difference between content and sales copy is crucial. After all, journalists,
bloggers and industry experts are less likely to share or link to heavily branded
content that obviously tries to sell your products or services. So what is content
and what is sales copy – and how are they different?

Sales copy is created for advertising and marketing purposes, and its purpose is
to sell. It is written to persuade customers of the value of your offering and
convert them into leads. Sales copy may include product specifications, unique
selling points and call to actions.

Content extends far beyond copy: it tells a story. It aims to educate, help,
inspire or entertain your target audience. Content can take the form of videos,
infographics, images, calculators and many other assets. The main power of
content, however, lies in the creativity of the idea.

84% of people expect brands to provide content that entertains, tells stories,
provides solutions and creates experiences and events.
Source: Meaningful Brands
Copy aims to sell your products and persuade people to convert, whereas
content aims to engage your audience.
The Benefits of Content Marketing
So if copy sells and content tells, surely copy is the more important of the two?
Not necessarily. Good content marketing can increase your organisation’s E-A-T
(Expertise, Authority and Trust) factors. It establishes your brand as an
authority in your industry, letting your audience know that you hold expertise
in your field and that they can trust you to have their best interests at heart.
This type of reputation improvement is invaluable in the digital landscape.

Solid content projects can also win backlinks – improving your site’s domain
authority and channelling traffic to your site. This can make it a key factor in
achieving your wider marketing goals. However, unlike other strands of digital
marketing, content helps you reach your audience in a mostly organic way.

Annual growth in unique site traffic is 7.8x higher for content marketing leaders
compared to followers (19.7% vs 2.5%).
Source: Aberdeen
A brand that regularly offers its audience insightful content is difficult to ignore,
and certainly difficult to doubt.
Choosing Your Content Marketing Metrics
There are various content marketing metrics out there that can help you
measure whether the content you’re producing is effective.

To see whether it hit the spot with your audience, try measuring social shares,
unique page views and the average time spent on the site. To find out whether
it helped SEO (Search Engine Optimisation), monitor how your content ranks,
how much organic traffic it receives and how visible it is in search engines. The
number and quality of backlinks to your content page – along with brand
mentions and referral traffic – can tell you how well your content was picked up
by the press, bloggers and other publications.

Finally, well set-up Google Analytics can tell you whether your visitors
performed any actions after engaging with your content. They might have
proceeded to sign up to your mailing list, visit a product landing page or even
make a purchase. Even if your web visitors did not convert directly, accurate
tracking will show you whether they returned to your site at a later stage to go
further down the marketing funnel.

65% of marketers agree that link building is the most difficult tactic to perform.
Source: Advanced Web Ranking
For the very best content marketing results, you must keep your objectives in
mind from the very beginning
Defining Your Content Strategy
Once you are clear about your content marketing goals and have decided on
your success metrics, it’s time to start the content strategy process.

Your first step is the research stage, in which you can use advanced analytics,
persona mapping, social listening and search intent modelling to gain the
necessary insights into your audience and opportunities. On top of that,
analysing your best performing content – and that of your competitors – can
help inspire you and identify content gaps.
Then it’s time for the second phase: the brainstorm. Armed with the results of
their research, members of different disciplines will come up with creative
content ideas – at this stage, no idea is a bad idea! The brainstorm should
result in a shortlist of ideas which will go into stage three: the justification
stage.

In the justification stage, each of your favourite ideas will need to be backed up
by relevant key phrases as well as outreach justifications: are your target
influencers interested in covering this story? Each idea that’s generated enough
interest has passed the test – it can be integrated into your content strategy
presentation.
73% of B2B organisations have a person dedicated to overseeing content
marketing strategy.
Source: CMI
Don’t waste your time and money – test your ideas before you start executing
them.
Creating Your Content Marketing Plan
Your creatives are bursting with ground-breaking content ideas, and now a firm
content plan is needed.

A content roadmap is an ideal way to ensure that your campaigns are

complementing, rather than competing against, each other in your content
timeline. You might also want to look at key dates and events throughout the
year, and how your content can gain more visibility around these dates.

Perhaps your brand appeals to film enthusiasts: have you been sure to
schedule Oscars-related content to go live close to the award ceremony date?
Are you spending the winter period preparing content that ties into the
summer’s big blockbuster releases?
All these things and more need to be considered when creating your content
strategy and roadmap. You want users to see you as a switched-on organisation
that will always satisfy their content desires.

60% of marketers create at least one piece of content each day.

Source: eMarketer
Social Media Marketing :Introduction
and Significance
[Link]
Faculty Member
School of Management
SASTRA Deemed to be
University
Thanjavur
Tamil Nadu
 What will you learn
specifically?
What is Social Media Marketing?
What are the important statistics
about
Social Media?
What are various platform of
Social Media Marketing?
 What is Social Media?
Social media is the collective of online
communications channels dedicated to
community-based input, interaction,
content-sharing and collaboration
 What is Social Media?
Websites and applications dedicated

Forums Micro
blogging Social
networking Social
bookmarking
Social Curation
Wikis
What is Social Media?
Social Media is EVERYWHERE !!!!
It’s UNAVOIDABLE !!!
it’s POWERFUL !!!
It’s here to STAY !!!
 Large Number of people are on
Social Media

42%
3.2 billion Social
media users
worldwide
 Generation wise breakup of Social
Media Usage

77.5%
90.% 48.2
%
Baby Boomers
Millennial Generation X

Emarketer, 2019.
How much time we spend on Social
Media?

digitalinformationworld
Facebook is Market Leader

Pewinternet, 2018
 Social Media Marketing , Is it a
serious business?

Marketers

Somewhat Effective or Very Effective

Buffer, 2019
 Do customers really use Social Media?

Social browsers use

social media
to research products

GlobalWebIndex,2018
 Positive Customer Experience on
Social media matters!

Continuously ENGAGED with your audience

likely to recommend the brand to

their friends
and family
Lyfema
rketing,
2018
 Influencer Marketing and Social Media

Depend on influencer
recommendations on social
media

Fourcommunications,
2018
 Social Media: Mobile Phones

Access social channels via mobile devices

Lyfemarketing, 2018
 Social Media: Mobile Phones

Total time spent on social

media sites occurs on
mobile

Lyfemarketing, 2018
 What is Social Media
Marketing?

“Social Media Marketing refers to the

process of gaining traffic or attention through
social media sites”
Searchengineland
 What is Social Media
Marketing?

“Social media marketing is a form of internet

marketing that involves creating and sharing
content on social media networks in order to
achieve your marketing and branding goals”

Wordstream
 What is Social Media
Marketing?

Social media marketing includes activities

like posting text and image, updates, videos,
and other content that drives audience
engagement, as well as paid social media
advertising

Wordstream
What is Social Media
Marketing?
 How to start with Social Media
Marketing?

Social Media Marketing Plan

1. What are you hoping to achieve through social

media marketing?
2. Who is your target audience?
3. Where would your target audience hang out and
how would they use social media?
4. What message do you want to send to your
audience with social media marketing?
 Why Social Media
Marketing?

▪ Bringing the traffic to the website

▪ Increasing conversions
▪ Enhancing brand awareness
▪ building brand identity and association
▪ Improved communication and
audience interaction
It is very important to understand the unique
features of various social media platforms to
develop social media strategy for each
platform
 Facebook

Monthly Active Users

(June 30, 2019)

Facebook Newsroom
Facebook
 Google+
Google plus can be used to upload and share
photos, videos, links, and view

Google+ circles: Segment your followers into

smaller groups, enabling you to share
information with some followers while barring
others
Google+
 Pinterest

One of the fastest growing social

media marketing
trends
Image-centered
 Twitter

Broadcast messages immediately across

the net

Dialog and communication

LinkedIn is a professional social networking
site

LinkedIn
Enter into the dialogue with the people
in similar industries and provides a
place to share content with like-minded
individuals
YouTube is the leader in creating and
sharing the videos
content
Viral Video
 Reddit

(Per Month)
Only true, Unique,
interesting content works
to engage the audience
Social media marketing refers to marketing campaigns conducted through social
media channels. Of the 7.7 billion people on Earth, approximately 4.4 billion are
internet users. With this in mind, it shouldn’t be surprising that companies worldwide
are funneling more resources into social media marketing campaigns. Not only are
the eyes there, but these eyes can see companies from across the world.
Furthermore, a tried-and-true standby of marketing is to build and maintain
relationships with customers. Social media accounts allow companies to reach out to
their customers and keep them involved with much less effort on the part of both the
business and the customer.

What Is a Successful Social Media

Campaign?
The measure of success depends on each individual business and its goals, as with
any form of marketing. While one business may be most concerned about actual
conversions, another may be focusing on increasing view counts or click-through
rates.

Social Media Metrics That Define Success

Because the social media marketing goals of different companies vary, so too do the
means and metrics by which the results of each campaign are assessed. The
following are several of the most common means by which brands track the success
of their social media outreach:

●​ Engagement: This is how often the company’s social media posts are actively
engaged with by other users, e.g. clicks, likes, and shares.
●​ Reach and Impressions: “Impressions” are how often a post shows up in
followers’ timelines, while “reach” is an estimate of how many unique viewers
could have seen the post.
●​ Referrals and Conversions: These refer to how often a user visits a landing
page or makes a purchase as a result of being redirected from a social media
post.

Examples of Successful Social Media

Campaigns
Examples of wildly successful social media campaigns are easy to find; by their
nature, they are all over the internet. In fact, some such campaigns enjoyed not just
national, but international success.

Oreo: Dunk in the Dark

Ad slots for the Super Bowl are highly sought after, with a 30-second ad setting a
company back $5 million. However, as Oreo demonstrated, it is possible for brands
to ride the Super Bowl wave without spending anything near that sum. In 2013, there
was a blackout during the Super Bowl, and within minutes, Oreo had posted a
tweet in response which read: “Power Out? No Problem,” along with a graphic which
read: “You can still dunk in the dark.”
The catchy phrase and the timely response paid off for Oreo, which reportedly had
300 employees work together to throw together the image within minutes. The post
was retweeted over 10,000 times within the first hour. Commenting on and
responding to trending subjects has become a staple of many companies’ social
media campaigns in recent years, and this may have been at least partially inspired
by this success story.

How to Create Successful Social Media

Strategies
However, while it may seem like garnering the success of one of these campaigns is
like catching lightning in a bottle, their success was largely due as much to strategy
and planning as luck. Great social marketing necessitates having your fingers in
many pies, building connections and keeping track of a lot of moving parts. This is
very complex, and a campaign must be carefully thought out before the idea is
executed. Strategy and communication are key to a business’s marketing success,
especially as it concerns social media. In fact, given the lucrative potential of
effective social media campaigns, there is a demand for individuals with a degree in
business communication.
Set Social Media Marketing Goals
The task of strategizing, planning and carrying out a social media campaign is
incredibly complex. Therefore, it is in one’s best interest to set marketing goals
beforehand, to both provide strategic direction and more effectively monitor the
success of the campaign once it has been launched. Concrete goals and
benchmarks will add some much-needed structure to the process.

Implementing SMART goals is one way to help ideate and set marketing goals.
SMART stands for specific, measurable, attainable, relevant and timely. Following
these standards can help ensure that goals and expectations stay on the rails, and
do their job of simplifying the process rather than complicating it. In conjunction with
adhering to SMART or a similar system, it will be helpful to research competition
and/or audit your audience on social media to help determine what those goals
should be and what can reasonably be expected.

Research the Different Social Media Platforms

It is important to know where your audience is, rather than assuming or blindly
throwing a wide net. Your focus should be on the primary platforms that your
audience seems to engage with, and base a strategy around the particulars of that
platform. A strategy designed for Facebook likely will not be very effective if used for
an Instagram campaign.

Additionally, it is just as important to tailor the campaign to the audience, rather than
copying what has worked for other people or trying something easy. It is better to put
more effort into greater results. Research on different platforms should help you find
your audience and create a strategy geared toward their interests. For example, it is
definitely in the best interest of a social media marketer to check the demographics
of different websites. Someone selling cars probably does not want to focus their
social media outreach on platforms that are largely used by preteens.
It is also worth becoming familiar with the tools available to you on a given platform,
and how traffic generally operates on the site, e.g. what time of day the site
experiences the highest traffic volume.

Track Analytics
Tracking your social media analytics is arguably the most important step; without
knowing if your strategy is showing results or not, the campaign won’t have any real
direction. This is another reason to ensure that you have an in-depth understanding
of your chosen platform. Many popular social media platforms, such as Facebook,
Instagram, Twitter and LinkedIn, have built-in analytics to help users track their
following and engagement. These built-in analytics are an invaluable, free asset for a
social media campaign. However, it is also possible to use third-party software to pull
and analyze statistics. Looking into such available services is another helpful realm
to research.
It is incredibly important to track your analytics to make sure you are meeting your
goals, and/or able to determine why you are or are not. It may be helpful to keep a
record of your progress, such as a monthly content calendar. This can provide a
more digestible overview of progress over time.
 Google Analytics: Introduction and Significance

Hello everyone, Welcome to the session on : Introduction and significance. In this

session, our focus will be on just understanding the basic concepts of Google Analytics
and why a website owner should use Google analytics to understand the insight of
visitors behavior.

Just tell me one thing, as website owners what is the important information you would
like to know about your visitors. Just think for a while. (Pause)

Very right , you would like to know about , how many visitors are coming to website,
how much time they spend, From which location are they coming, are they coming
through desktops or through mobile phone etc. Similarly, there can be so many other
aspects about which you would be interested to know.

Now the question is, how I can get this type of information. There is no button on the
website, we have discussed any WordPress plug in so.

Don’t worry at all. We have one very powerful tool called Google Analytics. In this
background, this module is dedicated to the fundaments of Google Analytics and you
will specifically learn

What is Google Analytics Platform?

How does Google Analytics works?

Why every digital marketer should make use of Google Analytics?

So let us jump into another phase of digital marketing. Hope you will not only enjoy it ,
but also learn a lot in this Module. So, let us begin.

If you remember, in the very first week, I have discussed with you the process of digital
marketing and the most important phase of this process was measurement and
tracking. We discussed, it is very important to measure and track your marketing efforts
so that you may take the corrective actions, if there is any gap in the performance.

No doubt, in the offline marketing, over a period of time, we have developed many
methods to measure the performance of marketing efforts. However, the accuracy of
such methods, tools, techniques is still questionable and marketer are hesitant to use
the data produced by these tools.

The scenario is different in case of Digital marketing. Here you can measure and track
the results of marketing efforts with 100 % accuracy with sophisticated tools available
like Google Analytics and others.

So first let us see, what is Google Analytics?

Google Analytics is a free tool from the Google for Web analytics. Google analytics was
launched by the Google in the year of 2005 when it acquired the Urchin, a web statistics
analysis program. Presently Google analytics is available inside the brand of Google
Marketing Platform, a product from the Google.

Google analytics tracks the information collected from the website or mobile app and
present in in very structured form to the admin or users . It helps in understanding the
audience insight and you can track the ROI of marketing efforts. Let me briefly explain,
how Google Analytics works.

There are four phases of the Google Analytics.

Collection

Filtering

Processing

And Reporting

In the very first phase that is collection, Google Analytics collects the raw information
from your website or mobile app with the help of a Tracking Code. A tracking code is
unique code, generated by the GA that we have to embed in our website. Once you
embed this code in the website, GA will immediately, start collection the information.
The information is collected on various parameters as defined by GA algorithm. GA
uses various signals like browser settings , cookies, browsing behavior etc with the help
of code embedded in the website to collect the information

How to set up Google accounts and embed the code in a website that we will learn in
the next Module.

The next phase is filtering.

Google analytics collects lot of information from the websites in very huge volume. But
all the information may not be relevant for the marketers and other users. So, in this
stage, GA filters information and keeps the relevant information only for further
processing.

Third phase is Organization

The information is filtered in at the back end and GA organizes this information into
various meaning full segments or categories. There are number of categories in which
the information is classified

The last phase is presentation

After the organization of information GA presents this information to the user in very
understandable and meaningful way in the form of various reports that you can easily
browse and download to further analyze the data and to take the decisions. What are
those reports?, we will discuss them time to time in the subsequent modules.

Data Categorization By GA

Let us see how GA categories the information

Primarily , Google analytic Categorizes the whole data into three main categories like

Acquisition

Behavior

Conversions

Let me briefly discuss , about these categories

First we have the Acquisition

Acquisition simply means how you are acquiring the traffic to your website. We know
there may be many sources from where the traffic is coming to the website like direct by
using our domain name, through organic search, through social media, by referral. But
we don’t know with which proportion the traffic is coming to our website from these
sources. Here GA will provide us the complete information in this regard. We will see
more details of acquisition category in the Google Analytics Interface.

The Second Category is , Behavior

The behavior data is related to what visitors are actually doing on our website. Here,
you will get the information how the content of the website is performing, is it engaging
or not? . Here the information is provided on sessions, page views, bounce rate, exits
etc. If these terms are new for you, don’t worry at all , I am going to explain them very
soon.

The third is conversion.

What is the meaning of conversion; it is defined in the context of the objectives of

website. For someone, it may be sales, for someone, it may subscription, for someone,
it may be registration and so on. In this section GA will show you how people convert
on your website, which is very essential to improving the conversion [Link]
reports are further classified into different sections like goals, eCommerce, multi-
channel funnel, and attribution. I will talk about these reports in the subsequent
modules.

So, this was the just basics introduction to the Google Analytics and how does GA
Works. In the next part I will talk about why GA is a must tool for every digital marketer.
Just join me there.

PART-2

I hope , you got a little bit idea about what Google analytics can do for us . There are
large number of metrics that GA is providing to its users to take the various decisions.
Let us discuss, why is it important for every digital marketer to understand and use this
tool.

Google Analytics is Free:

Google Analytics is very powerful tool. Many people think that it will be very costly. but
to your surprise the Google Analytics is totally free. You need not to pay even a single
penny to the Google to use Google Analytics.

Just create an account with Google Analytics and it will start working for you
immediately. So what else do we want? Thanks to the Google.

Data collection process is automatic

Google Analytics save your lot of time as the data collection process is automatic. As I
have discussed you need to just embed an unique code in your website, the process of
Data Collection from your website will start immediately. Google Analytics presents the
reports in a very simple and understandable way. You can access these reports directly
from the Google Analytics dashboard in various formats.

Detailed insights of the audience:

The audience reports of Google analytics, provides a detailed information about the
people who visit our website like their age, gender, interests, devices, and location and
much more. This type of data is very useful to the digital marketers to take the decision
timely.

Customization of Reports

As web analyst or digital marketers, there are so many instances when we need reports
in a customized form. A report will be called customized when we want data according
to our requirements not a standard format.

GA Google Analytics comes very handy in this regard. There is a full flexibility in a
Google Analytics to create the reports in a desired format.

In Google Analytics, there is a specific tab called Customization and you can use this
tab create your own reports

So I will talk about the customization of reports in detail at an appropriate time

Integration with other platforms

This is a very good feature of Google Analytics you can integrate the Google Analytics
with so many other platforms without any problem. For example, Google Analytics
perfectly works with the Google ads. Although a rich data is provided by the Google ads
to measure performance of Ads, but you can further have the insights about your ads
and customers who are clicking on the ads by analyzing it in Google Analytics.

Google Analytics is not restricted to the desktop only it perfectly works on tablets and
mobile phones both on android and IOS platforms.

I will talk about how to integrate the Google Analytics with the Google AdWords in the
subsequent Modules.

Real time reporting

You need not to wait for hours to collect the data from Google Analytics. There is a very
good feature in Google Analytics where you can have the real-time reporting like how
many customers are there right now on a site, how much time they have spent, from
which source they are coming, which device are they using and so on . So it will help
you to take the decisions in the real time as well. For example if you want to change the
price of a product you can change the price of a product on the basis of real-time
demand by analyzing the data in real time

GA Add- ons are available

There is no doubt that Google Analytics is a great tool at its own to capture the web
analytics. But There are a number of add-ons available for Google Analytics. These
add- ons are released every month and These addons are very useful to increase the
quality of data and the productivity of Google analytics . Google Tag Assistant, GA
Debugger, Tag Manager Injector and many more are examples of GA Ad-ons.

Ability to measure internal site search

Most of the websites have internal search box to search their site internally. Like, you
can see in e-commerce sites the search box is there to search for various products and
product categories. Google Analytics can provide you the detail about what people are
actively searching for on site. It will help you to

Discover Keywords for SEO

Discover Keywords for PPC

Expand Your Product Assortment

Optimize Performance of Site Search Visitors

Data from social platform

Another very good feature of Google Analytics that you can analyze the traffic that is
coming from social media sites. As we know that social media is a good source of
traffic. So there is a need to understand such Audience in a better way

Google Analytics can clearly measure from which social media platform traffic is coming
to your website most. So accordingly, you can change your budget of promotion in
favor that platform.

So, this was an introductory discussion on Google Analytics. We understood What is

GA, How does GA work and why every digital marketer should Google Analytics to
analyze the web data.

Thank you so much.

Business owners looking to establish their online presence have several tough
decisions to make when it comes to marketing. One of these is whether to start
a blog or a podcast to enhance their content.

Podcasts and blogs have both been used successfully to launch new businesses.

Defining podcast vs. blog

First, let’s clarify what these two media are:

●​ A podcast is a digital audio file made available for download on the

internet.
●​ A blog is an educational, informative, or entertaining website where new
pieces of content — blog posts — are regularly published.
●​ Podcasting pros and cons

Some advantages to podcasting include the following:

●​ It’s a newer medium: the first podcast was created in 2004 (versus the
first blog in 1994).
●​ It showcases your personality and establishes a deep connection with
your audience.
●​ It’s popular with younger audiences: 70 percent of listeners are 18 to 54
years old, according to Edison Research.
●​ The number of podcast listeners is growing, from 18 percent of the U.S.
population in 2008 to 44 percent in 2018, Edison Research reports.

On the other hand, the challenges to podcasting include:

●​ It’s more technically complicated and expensive to create than blog

posts (Entrepreneur Magazine details 10 tools you’ll need to start
podcasting).
●​ It’s more of a time commitment (expert podcaster Daniel Lewis says a
one-hour podcast takes five hours to produce).
Blogging pros and cons

Some advantages to blogging include the following:

●​ It’s less of a time commitment (Orbit Media says the average blog post
takes three-and-half hours to write).
●​ Blogs require less technical expertise and fewer tools to create than a
podcast.
●​ Because it’s text-based, it may offer more robust search engine
optimization (SEO) benefits for your website.
 ●​ Blogs take less time for your target audience to consume, typically three
to 10 minutes compared to 30 minutes or more for a podcast.
●​ Nearly 47 percent of internet users 18-29 years old read blogs at least
once every four weeks.

Some challenges in blogging include:

●​ You’ll need to have good writing skills or develop them.

●​ You may need to learn a new publishing platform to start blogging.
Getting started

Your choice doesn’t have to be either-or. You can also choose to have both a
podcast and a blog.

In fact, you can cross-pollinate your marketing efforts across all your
marketing channels (blog, podcast, social media, website, etc.) to bring in new
fans and customers from each channel. Just be aware of the investment of
time, money, and resources required to blog and podcast well.

Regardless of which medium you choose, the right website platform can be
critically important to your success. [Link] has powerful tools for
both blogging and podcasting built into its free plans, as well as advanced
plugins for paid accounts. And yes, you can also have a podcast and blog on
the same [Link] website.
 Digital Marketing

Pay Per Click Advertising: Google Ads

1
What will you Specifically Learn ?

1 What is Google Ads Platform?

2 How does PPC

Works?
3 How to register for Google Ads?

4 What are various types of Keywords Match ?

What is Google Ads Platform ?

Online platform where advertisers can manage their different types

of campaigns to show their products, services, video content and
promote mobile apps installation
Google Ads Campaigns
Auction or
Bidding
Model
Quality and
Quality Size
Relevance
Keywords Ads Keywords Bids
AD RANK CPC BID Quality Score
 CPC BID

Amount an advertiser is willing to pay to the Google, if someone clicks

on ad
CPC BID
Quality Score
The quality score for an ad is calculated by taking into
account click-through rate, relevance of keywords, and
landing page quality

Click-through Expected number of clicks which an ad will click. Google

Rate (CTR) predicts it by using it own algorithm
Quality Score
The quality score for an ad is calculated by taking into
account click-through rate, relevance of keywords, and
landing page quality

Relevance of Relevant to the Pool of Keywords with respect

Keywords to content of your advertisement
 Quality Score
The quality score for an ad is calculated by taking into
account click-through rate, relevance of keywords, and
landing page quality

Landing Measured on the basis of relevant content and a

Page clear call-to-action and other parameters
Quality negative
 Max CPC BID
Advertiser Quality Score AD RANK Ad Position Price
(RS.)

I 2 10 20 1 16/10+.01=1.61

II 4 4 16 2 12/04+.01=3.01

III 6 2 12 3 08/02+.01=4.01

IV 8 1 8 Not Qualified

Price Per Click =Ad Rank of the person below you/ Quality Score + Google Margin
What is a KeyWord

Words or phrases either people are using to

search for information or present in various
WebPages
An Ad will be triggered against these keywords

To optimize the keyword selection, we have to

understand different Google Ad Match
1 Broad Match

2 Broad Match Modifier

3 Phrase match

4 Exact match

5 Negative Match
1 Broad Match

Board match is the default match and it allows you to

reach to the widest audience

If the audience is searching for any word of your

phrase or couple of words, your ad is eligible to be
part of the auction process
1 Broad Match
Ad will be
Trigged

Digital Marketing Course in Digital Marketing Course

Chandigarh
Digital Marketing Course in Mumbai

It is evident that broad match will increase

you ad frequency and clicks
 1 Broad Match

Example Ad may be shown

Match Type Special Symbol Example search
Keywords of Searches that

Misspellings,
synonyms, related
Broad Match None Women’s Buy Ladies Hats
searches, and other
hats
relevant variations
2 Broad Match Modifier

Broad match modifier gives more control to the advertisers to

tell the Google that their ad should be only shown if these words
are included in the query no matters in which order and
where in the search query

4 Exact match
2 Broad Match Modifier

Buy women’s Buy men’s

hats hats

Buy+women’s Buy men’s

hats hats
To narrow downs your audience to bring the quality traffic
to website, Broad match modifier is quite useful
2 Broad Match Modifier

Example Ad may be shown

Match Type Special Symbol Example search
Keywords of Searches that

Contains the
modified terms (or
Broad Match +Women’s
+ Keyword close variations, but Hat for women
Modifier +hats
not synonyms) in
any order
3 Phrase Match

An ad will only appear when a user searches for your

exact keyword phrase, in its exact order, but maybe
with some additional words at the beginning and the
end of the query
3 Phrase Match

red women’s hats

women’s hats for

weddings
“women’s hats
women’s blue hats

hats for women

3 Phrase Match

Example Ad may be shown

Match Type Special Symbol Example search
Keywords of Searches that

“Women Are phrase and close

Phrase match “Keyword” Buy women’s
’s variant of the phrase
hat
hats”
4 Exact Match

Ad will be triggered only if someone is searching for the exact

phrase, in the same order, not anything else before or after the
phrase

It is very restrictive in targeting the audience

 4 Exact Match

Example Ad may be shown

Match Type Special Symbol Example search
Keywords of Searches that

Are exact terms

and close Are phrase and close
Exact Match [Keyword]
variant that variant of the phrase Women’s hats
term
4 Exact Match

[women’s Women’s
hats] hats
Buy women’s
hats
5 Negative Match

It will help you to precisely target your audience

and avoid un necessary clicks on the ads

“Free Phones”

Negative Broad Match

Negative Phrase Match
Negative Exact Match
5 Negative Match

Negative Broad Match Negative Phrase Match Negative Exact Match

Negative Broad Match

Setting that stops your ad from showing if all the

negative keywords are searched, regardless of
order

Free Course Digital Marketing Course for Free

Negative Phrase Match

Stops your ads from showing if the search

includes your exact
keywords In this case order
matters

Free Course Digital Marketing Course for Free

Negative Exact Match

Prevents your ads from showing if the search query is

exactly your negative keyword

Free Course Free Course

Free Course on Digital Marketing
Google Analytics : Introduction and Significance

[Link]
Faculty Member
School of Management
SASTRA Deemed to be
University
Thanjavur
Tamil Nadu
What will you specifically Learn?
What is Google Analytics Platform?
How does Google Analytics work ?
Why every digital marketer should make use of Google Analytics?
What important information you would like to
know about your visitors?
 Process of Digital Marketing

(Marketing efforts)
 Methods to measure the
performance of Marketing efforts
Measure and track the results of
Marketing efforts
What is Google Analytics?

Google Analytics is a free tool from the

Google for Web analytics
 Google analytics tracks the
information collected from the website
or mobile app and present in in very
structured form to the admin or users
 How Does Google Analytics works

Collection 1

Filtering 2

Organization 3

Presentation 4
 Collection 1

Collects Raw Information Website/Mobile App

Tracking Code

(Browser settings , cookies, browsing behavior)

 Filtering 2

Website
Information
(Large Volume)
All Information may not be relevant

Filtering of Relevant
Information Information
 Organization 3

The information is filtered in at the back end

(Segments and Categories)
 Presentation 4

Presents this information to

the user in very
understandable and
meaningful way in the form
of various reports

What are reports ?

Data Categorization By Google Analytics
 Data Categorization By Google Analytics

Acquisition 1

Behavior 2

Conversion
3
 Acquisition 1

Acquiring the traffic to website

 Behavior 2

What visitors are actually doing

on our website

Performance of Content of Website

 Conversion
3

What is conversion?
Sales
Subscription
Registration
 Google Analytics is Free

Google Analytics is very powerful tool

 Data collection process is automatic

Tracking Code
<script>
 Detailed insights of the audience

Age
|Gender
|Interests|
Devices|
Location
Customization of Reports

Customization of Reports
Customize reports are needed
When we want data
according to our
requirements not a
standard format
 Integration with other platforms

Google Analytics can be Integrated with

other platforms without any problem
Real time reporting
Real time reporting
 GA Add-ons are available

Number of Add-ons available for Google Analytics

Google Tag Assistant

GA Debugger
Tag Manager Injector
 Ability to measure internal site
search

Discover Keywords for SEO

Discover Keywords for PPC
Expand Your Product Assortment
Optimize Performance of Site Search Visitors
 Data from social platform

Social media is a good source of traffic

Google Analytics can clearly measure from which

social media platform traffic is coming to your
website most
Managing a Holistic Marketing
organization
P3
Dr. R. Renganathan
Faculty Member, School of Management
SASTRA Deemed University, Thanjavur – 613 401
renganathan@[Link]
Learning objectives
• To understand the contribution of services to the
economy of a nation
• To know the major industries of the service
sector
• To understand the differences between goods
and services
• To understand the factors influencing change of
service economy
• To classify the four broad categories of services
Services marketing
What is a Service?
• Service is an act or performance
offered by one party to another
(performances are intangible,
but may involve use of physical
products)
• An economic activity that does
not result in ownership
• A process that creates benefits
by facilitating a desired change
in customers themselves,
physical possessions, or
intangible assets
Source: Lovelock & Wright Principles of Services Marketing and Management 2/E
Service Sector
• Service Sector includes businesses,
government agencies, nonprofits
• High-paid professionals ,technicians and
minimum-wage positions are range of jobs in
service Sector
• When it comes to size of service
organizations it ranges from huge global
corporations to local small businesses
• Service Sector contributes to economy of
majority of the countries than agriculture,
raw materials and manufacturing combined
Industries in the Service
Sector
• Banking, • Health care-
stockbroking Hospitals
• Insurance • Education
• Lodging • Wholesaling and
retailing
• Catering, • Laundries,
restaurants, bars, dry-cleaning
• News and • Repair and
entertainment maintenance
• Transportation • Professional (e.g.,
law, architecture,
(freight and consulting)
passenger)
India: Distribution of GDP across
economic sectors from 2009 to 2019

Source:
[Link]
tors-in-india
Changing Structure of Employment
as Economic Development Evolves
Internal Services
• Service elements within an organization that
facilitate creation of or add value to its final
output
• Includes:
• accounting and payroll administration
• recruitment and training
• legal services
• transportation
• catering and food services
• cleaning and landscaping
• Increasingly, these services are being outsourced
Differences between Goods
and Services
• Customers can not obtain ownership of
services
• Intangibility in the performance of service
products
• In some service production process, customers
act as co-producers of services
• In some service production process, other
people may form part of product experience
Differences between Goods and
Services
• Because of the heterogeneity of services operational inputs
and outputs tend to vary
• Due to intangibility, customers may find it difficult to
evaluate and understand the quality of service
• Due to perishability, several service products can’t be
inventoried
• In services, time factor is very vital
• With the help of electronic and physical channels,
distribution of services will be done
Marketing Challenges
posed by Services
• Four important characteristics of
Services
• Intangibility
• Heterogeneity (variability of
quality)
• Inseparability of production and
consumption and
• Perishability
…IHIP
Tangible Vs Intangible Elements
in Goods and Services

Source: Lovelock & Wright Principles of Services Marketing and Management 2/E
The “8Ps” of Service sector
vs. the “4Ps”
• Product elements
• Price
• Place, cyberspace, and time
• Promotion and education
• People
• Process
• Physical evidence
• Productivity and quality
Factors influencing change of
service economy
• Policies of the Government (e.g., regulations, trade agreements)
• Social Changes in the society (e.g., rich, lack of time, search for
experiences)
• Trends in Business
Services offered by the manufacturers
Development of franchising & chains
Stress on productivity , quality & cost savings
More strategic alliances and outsourcing
The aspect of nonprofits emphasized in marketing
Quality & customer satisfaction are the priority
• Development in IT (e.g., speed, digitization, wireless, Internet)
• Globalized environment (travel, transnational companies)
Categories of Services

Source : Jochen Wirtz, Christopher Lovelock , Jayanta Chatterjee-Services Marketing, Pearson 2018
Marketing & other
Management functions

Source : Jochen Wirtz, Christopher Lovelock , Jayanta Chatterjee-Services Marketing, Pearson 2018
Levels of Customer Contact
with Service Organizations

Source: Lovelock & Wright Principles of Services Marketing and Management 2/E
High & Low contact: Banking
services
• Visit bank, and transact
• Make use of ATM
• Net banking
• Contact through telephone
Managing Service
Encounters
• Service encounter: A period of time during
which customers interact directly with a service
• Moments of truth: Defining points in service
delivery where customers interact with
employees or equipment
• Critical incidents: specific encounters that
result in especially satisfying/dissatisfying
outcomes for either customers or service
employees
Source: Lovelock & Wright Principles of Services Marketing and Management 2/E
Service marketing Triangle
Customer switching behavior
factors

Pricing
Inconvenience
Core service failure
Service encounter failures
Response to service failure
Competition
Ethical problems
 Managing a Holistic
Marketing organization
P4
Dr. R. Renganathan
Faculty Member, School of Management
SASTRA Deemed University, Thanjavur – 613 401
renganathan@[Link]
Learning objectives
• To understand the meaning of retailing &
retailer
• To know about the functions of a retailer
• To understand the changing retail landscape
• To understand the importance of retailing
• To know the nature of retailers
• To understand the impact of technology in
retailing
What is retail?
• Retail – derived from the
French word “retaillier”,
which means to break bulk.
• Retailing is the last
stage in the movement
of goods and services
to the consumer.
• Retail therefore consists of
all activities involved in
the marketing of goods and
services directly to the
consumers for their
personal, family or
household use.
Retailer/retail store

Any business
enterprise whose
sales volume
comes primarily
from retailing
Functions of a Retailer
• Form utility
• Time utility
• Place utility
• Ownership utility
The Marketing– Retail
Equation
The Changing Retail
Landscape
• Proximity to the customer
• The Rise of consumerism
• Introduction of the Private Label
• Technology
Why retailing so important?
• Retailer links Producers to
Customers
• Retailer is a person, agent,
agency, company or
organization reaching the
Goods or Services to
ultimate consumer
• Retailer is in close contact
with the customers
• Sell small quantities of
items on a frequent basis
Why retailing so important?
• Convenience in terms of location ,
payment and credit facilities , range of
merchandise , after sales service, etc.
• Offer selection – merchandise assortment
• Retailers perform specific activities:
• Anticipate customer wants
• Stock product assortments
• Acquire market information
• Finance Retail business
Retail Industry in India

Source: [Link]
Top 10 Retail Companies in
India
• Aditya Birla Fashion & Retail Ltd (Pantaloons)
• Avenue Supermarts Ltd (D-Mart)
• Future Enterprises Ltd.
• Future Lifestyle Fashions Ltd.
• Future Retail Ltd.
• Reliance Retail Ltd.
• Shoppers Stop Ltd.
• Trent Ltd (Westside)
• V Mart Retail Ltd.,
• V 2 Retail Ltd.,(V2 kart)
Types of retailers

• Store retailers
• Non-store retailers
• Retail organizations
Type of retailers
Store retailers
• Specialty store • Drug store
• Department • Discount store
store • Off-price retailer
• Supermarket • Superstore
• Convenience • Catalog showroom
store
Store retailers- Levels of
service
✔Self-service
✔ Self-selection
✔ Limited service
✔Full service
Non-store retailing
• Direct
marketing
• Direct selling
• Automatic
vending
• World Wide
Web
Retailing and Franchising
• Franchising is a business
model in which franchisor
owns a product or service
or a method of doing
business
• Franchisee get a product,
or a business format from
franchisor in return for a
fee and compensation
• Ex. Bata, McDonald’s,
Domino’s Pizza, KFC, Pizza
Hut, Subway, Baskin &
Robbins, Burger King and
service businesses like
NITT, Green Trends….
Franchising…
Product/ Trademark
• Franchisee obtains the identity of a franchisor
by agreeing to sell products and/or function
under the franchisor name
• Autonomy of operation for franchisee
Business Format
❑ Franchisee receives assistance from franchisor
for location, quality control, accounting
systems, start-up practices, management training
❑ Common for restaurants, real estate

17
Retail Franchising-Structural
arrangements

Source: Berman, Evans-Retail management, A strategic approach, 9/e, Pearson

18
 Marketing Decisions
✔ Target market✔Services
✔ Channels ✔Store
✔ Product atmosphere
assortment ✔ Store activities
✔ Procurement and
✔ Prices experiences
✔Communication
s
✔ Location
Types of Retail Locations
•Free standing or isolated store
•Business district location
•Shopping centre

11-Nov-24 20
 Free standing or isolated store

• Started as unplanned location & mostly based

on high ways or link roads or other arterial
roads
• Advantages:
Low rental costs, ample parking, High vehicular
traffic, Fewer restrictions on signage,
visibility working hours & type of goods to be
kept
Disadvantages:
Bigger stores, low pedestrian traffic,travel some
distance to visit the location
21
Business district
• Is a traditional place of business, centre of commerce &
trade
• Can be classified as Centre Business District (CBD),
Secondary Business District (SBD) or Neighbourhood
Business District
• Centre Business District (CBD),is the main centre of
commerce & trade in the city . Ex. In Chennai,
Broadway/George town, Mount Road & [Link], MG
Road in Bangalore, Connaught Place in Delhi, Nariman
point in Mumbai
• Secondary Business District (SBD), evolved over a
period of time with the spread of population within the
city. Ex. Bandra Kurla complex in suburban Mumbai.
Velacherry, Anna Nagar, OMR, GST Road in Chennai
• Neighbourhood Business District , is an unplanned
shopping area to serve the needs of the neighbourhood
and characterised by the presence of super market,
stationery stores, medical shops, etc.
22
Shopping centre

•Neighbourhood Shopping centre

•Community Shopping centre
•Regional Shopping centre
•Super Regional centre
•Fashion / Speciality centre
•Power centre
•Theme centre
•Outlet centre
23
Shopping centre…
• Neighbourhood Shopping centre-
Cater to the Neighbourhood residents
• Community Shopping centre-
Located on arterial roads leading to the
neighbourhood, offer all kinds products & service but
to neighbourhood
• Regional Shopping centre
• Super Regional centre
• Fashion / Speciality centres-Are Destination stores,
customers will have to travel. High end fashion
stores, high quality & high price merchandise
24
Shopping centre…
• Power centre:
Deals with tiles, furniture, sanitary wares….
• Theme centre:
Rows of stationers, furniture dealers, cloth
stores- Royapettah in Chennai has a number of
furniture shop in close proximity
• Outlet centre:
Company or factory outlet centre located on
roadside and thoroughfare locations. They sell
merchandise at a discount

25
 Technology in Retail
Electronic Data Interchange(EDI) -Exchange of business
info., through standard interfaces, by using computers
IT applied
✔ For product identification
✔ Quick billing
✔ Settlement of bills electronically
✔ Specialised logistics applications
✔ POS terminals
✔ Barcode scanner
✔ Software for managing inventory
✔ Data warehousing/mining for trend analysis & customer
management
✔ Specialised solutions for SCM
11-Nov-24 26
Universal Product Code (UPC)
• The Universal Product Code (UPC) or the
bar code is basically a product identifier,
made up of series of bars and spaces ,
which represent alphanumeric information
• Electronic Data Interchange (EDI) is
defined as the exchange of business
information, through standard interfaces,
by using computers
• Radio Frequency Identification (RFID)
can be described as a wireless barcode
which provides wireless communication
between objects & readers
11-Nov-24 27
Services
Retailers have to offer services mix to
customers:
✔Prepurchase services
✔Postpurchase services
✔Ancillary services
Managing a Holistic Marketing
organization
P2
Dr. R. Renganathan
Faculty Member, School of Management
SASTRA Deemed University, Thanjavur – 613 401
renganathan@[Link]
Learning objectives
• To understand the role of CRM
• To know about the relevance of customization
& customerization
• To know how can industry convergence
augment the growth opportunity
• To understand the various aspects of services
marketing
Customer Relationship
Management-CRM

Source: [Link]
Customer Relationship
Management-CRM
• CRM is a technology used to manage
interactions with customers and
prospects
• CRM can be used by a firm to build
relationships with customers and
update processes
• With the help of CRM an organization
can increase sales, improve customer
service, and increase profitability.
Customer Relationship
Management-CRM
∙ Software, cloud computing, and artificial
intelligence are the main areas of
development in CRM technology
∙ Customer's overall experience with an
organization can be improved with the help
of CRM
∙ Generally CRM Software is used in sales,
marketing and call centers.
∙ Now CRM in used in retail stores, city
malls, hotels , small businesses, startups,
enterprises etc., .
CRM process
• Creation and
management of Data
mining &
warehousing
• Development of
appropriate
organization structure
• Investment in
technology
• People development
Benefits of Data warehousing
in CRM
• Customization of marketing mix
• Product planning
• Targeted promotions
• Salesforce productivity
• Customized services
• Relationship marketing
• Management of intermediaries
Building Customer relationships &
Loyalty
Importance of Customer loyalty & Firm’s
profitability
Profit from increased purchases
Loyal customers increase their purchases as their
families grow
Profit from reduced operating costs
Regular customers are more experienced, may
make fewer mistakes, contributing to more
productivity
Profit from referral to other customers
Profit from price premium
New customers may expect discounts whereas
log-term customers are more likely to pay regular
prices
Customer Life Time Value &
Equity
Customer Life Time Value (CLV)
Discounted value of individual customer
throughout his or her lifetime as customer
-Acquisition revenues less costs, Annual
revenues & costs, Value of referrals and Net
present value
Customer equity
Refers to the total sum of the discounted life
time values of all the current customers
Customer/Firm relationship

Transactional Marketing

Database Marketing

Interaction Marketing

Example: Self-service technology, interactive

websites, call centers

Network Marketing
The Wheel of Loyalty

Source: Christopher Lovelock, Jochen Wirtz & Jayanta Chatterjee- Services Marketing and Management 8/E,
Pearson
Customization &
Customerization
• Customization is a modification made to a product
or service to suit a specific purpose
• Customerization is a strategy by which firm's
products or services are customized through
interaction with its customers
• Through customization firms can create product
value .
• Through customerization firm’s can co-create value
with the help of customers and prospects
• Value to the product or service can be created both
by the firm and customers in customerization
strategy
CRM
customization-Benefits

[Link]
Industry convergence
• “Industry convergence represents the most
fundamental growth opportunity for
organizations” .
• “It will redefine industry boundaries by
shifting the focus from individual products to
cross-industry value experiences, based on
digital business principles”.
Source:
[Link]
evolution

• The fundamental development for any

organization can be achieved with the help of
industry convergence
Digital convergence

[Link]
Industry convergence-Examples
• 1) AgTech and FinTech. ...
• 2) Retail and Healthcare. ...
• 3) Tech companies and Autonomous Vehicles. ...
• 4) Manufacturers and IT. ...
• 5) Telcos and Media. ...
• 6) FinTech and Healthcare. ...
• 7) Ecommerce and IT. ...
• 8) Pharma and Quantum Computing.
• 9) Energy and Computing Companies
• 10) Ecommerce and Financial Services
Services marketing
What is a Service?
• Service is an act or performance offered by
one party to another (performances are
intangible, but may involve use of physical
products)
• An economic activity that does not result in
ownership
• A process that creates benefits by facilitating
a desired change in customers themselves,
physical possessions, or intangible assets
Source: Lovelock & Wright Principles of Services Marketing and Management 2/E
Service Sector
• Service Sector includes businesses, government
agencies, nonprofits
• High-paid professionals ,technicians and
minimum-wage positions are range of jobs in service
Sector
• When it comes to size of service organizations it
ranges from huge global corporations to local small
businesses
• Service Sector contributes to economy of majority of
the countries than agriculture, raw materials and
manufacturing combined
Industries in the Service Sector
• Banking, • Health care-
stockbroking Hospitals
• Insurance • Education
• Lodging • Wholesaling and
retailing
• Catering, • Laundries,
restaurants, bars, dry-cleaning
• News and • Repair and
entertainment maintenance
• Transportation • Professional (e.g.,
law, architecture,
(freight and consulting)
passenger)
India: Distribution of GDP across
economic sectors from 2009 to 2019

Source:
[Link]
tors-in-india
Changing Structure of Employment
as Economic Development Evolves
Internal Services
• Service elements within an organization that
facilitate creation of or add value to its final
output
• Includes:
• accounting and payroll administration
• recruitment and training
• legal services
• transportation
• catering and food services
• cleaning and landscaping
• Increasingly, these services are being outsourced
Differences between Goods
and Services
• Ownership of services can not be acquired by customers
• Performances of the service products are intangible
• Customers act as co-producers in production process of
services
• Other people may form part of product experience
• Operational inputs and outputs tend to vary since services
are heterogenous
• Difficult for customers to evaluate and understand service
due to intangibility
• Many service products can’t be inventoried because service
output is perishable
• Time factor is very important in services
• Distribution may include electronic and physical channels
Marketing Challenges
posed by Services
• Four important characteristics of
Services
• Intangibility
• Heterogeneity (variability of
quality)
• Inseparability of production and
consumption and
• Perishability
…IHIP
 Rural Marketing

Dr. R. Renganathan
Faculty Member, School of Management
SASTRA Deemed University, Thanjavur – 613 401
renganathan@[Link]
Learning objectives
We will address the following
questions:
• What are rural and rural marketing?
• What are the features of rural
marketing?
• What is the significance of rural
market?
• How can companies tap the rural
market?
• How can companies strategize the
marketing mix elements to meet the
challenges?

2
Rural & Urban
Urban Area-Census 2011
• i) A minimum population 5,000; ii) at least
75 per cent of male working population
engaged in non-agricultural pursuits; and
iii) a density of population of at least 400
per sq. km. (1,000 per sq. mile)
• The overall literacy rate in Rural India
is 64.7 per cent.
• In rural India, the literacy rate among
females is 56.8 per cent and among males
is 72.3 per cent. Sep 8, 2019
 Rural & Urban
population-India
✔ Population : As per the
Provisional Population totals
of Census 2011, the
total population of India was
1210.2 million. Of this, the rural
population stands at 833.1 million
(68.84%) and the urban
population 377.1 million (31.16%).
✔ The proportion of rural population
declined from 72.19% to 68.84%
Rural market
• There are around 649,481 villages in
India, according to Census 2011.
• Of these, 593,615 are inhabited.
Aug 2, 2017
• Among the States Bihar tops the list
which has 1,129 inhabited villages
followed by Kerala (797) and Uttar
Pradesh (545) which inhabited
villages in 2011 Census.
• Around 90 per cent of the rural
population is concentrated in villages
with a population of less than 2,000.
India-Urban Vs Rural
population

Source:[Link]
Per capita Income-Rural
areas
• The government has compiled the
estimates of rural and urban per
capita income in terms of Net Value
Added (NVA), which is Rs 98,435 in
urban areas and Rs 40,925 in the rural
areas, Rao Inderjit Singh, MoS
(Independent Charge), MOSPI, said in a
reply to a question in Rajya Sabha.
Dec 12, 2019
Rural marketing
It is a process of
developing, pricing,
promoting, distributing
product and service for
rural areas which satisfies
the demand of rural
consumers and also
accomplishes the objectives
of firm
Rural marketing
• As per the needs and requirements of the people living
in the rural areas rural marketing activities are planned
.
Basic transactions of rural marketing can be −
• Urban to Rural − Urban marketers selling the
products and services in rural areas. These products
mostly include pesticides, FMCG products, consumer
durables, etc.
• Rural to Urban − Rural producer sells his products in
urban market. Transaction may or may not be direct,
but mostly through middlemen, agencies, government
co-operatives etc. who do the selling process with an
apt price.
• Rural to Rural − Selling or exchange of agricultural
products, tools, cattle, carts and others to another close
village.
 Features of Rural Market
✔ Agriculture is important and also the main source of
income.
✔ Income is seasonal and fluctuates due to production
of crops, laborer's category receives income on daily
or weekly basis.
✔ Different socio-economic background
✔ Large, varied and scattered population
✔ Disparities in caste, religion, culture and economy
✔ Low density of population, Low standard of living,
low per capita income and backwardness
✔ Lack of proper infrastructure
✔ Traditional outlook
Features of Rural Marketing
• Social norms, strong belief and impact of caste and
religion
• Limited exposure to product, low awareness, minimum
retail outlets.
• TV advertising campaign, radio, melas, road shows .
• Educated youth volunteers may be useful to provide
help
• Assistance from Block Development Officer (BDO) is
more useful.
• Infrastructure, distribution logistics, attitude and
background of local intermediaries, rural consumer life
style and buying pattern.
Significance of rural markets
• Competition in urban markets
• Socio-economic changes in rural India
• Impact of technology in rural India
• Govt. initiatives to provide urban amenities in
rural areas
• Generation of income with the help of SHGs
• Access and ownership
 Rural marketing in India
✔ Rural marketing structure across
India is not constant.
✔ In a particular state or region,
variation exists in agriculture
development, literacy level,
income, road facilities, logistics,
communication facilities, buying
behaviour pattern and purchase
power

Source:[Link]
g-in-india/31957
Indian Rural Market
• The Fast Moving Consumer Goods
(FMCG) sector in rural and semi- urban
India is estimated to cross US$ 100 billion
by 2025
• The rural FMCG market is anticipated to
expand at a CAGR of 17.41 per cent to US$
100 billion during 2009–25
• Rural FMCG market accounts for 40 per
cent of the overall FMCG market in India,
in revenue terms
 Indian Rural Market
✔ Amongst the leading
retailers, Dabur
generates over 40-45 per
cent of its domestic
revenue from rural sales.
✔ HUL rural revenue
accounts for 45 per cent
of its overall sales
✔ Other companies earn
30- 35 per cent of their
revenues from rural area
Source:
[Link]
Market size of FMCG across rural India from
financial year 2009 to 2018, with an estimate for
2025(in billion U.S. dollars)

Source: [Link]
FMCG sales-India
• In overall FMCG sales, contribution from
Rural India is 36%
• In rural areas, FMCG sales is rising
around 300 to 500 basis
points quicker than urban areas.
• This is because growing affordability,
and better availability due to MNCs'
supply chain.
• Higher demand due to change of a
commodity to brand .
Myths about Rural markets
• Population of all villages are
similar
• Consumers from rural areas are
homogenous
• Consumers from rural areas are
unable to differentiate between
products and brands due to
illiteracy
• Small size, minimum quantity
and low-priced products can
only be sold in rural India
• Difficult to sell consumer
durables in rural India
Marketing mix for rural
markets
Product-Rural marketing
Distribution –Rural marketing
Promotion-Rural marketing
 4Ps and 4 As

Tools (4Ps) Challenges (4 As)

Product Acceptability

Price Affordability

Place Availability

Promotion Awareness
Corporate sector initiatives in
Rural India
• Hindustan Lever Limited
(HLL)-Project Shakthi-SHGs
• ITC-e Choupal
• Asian paints- opinion leaders in the
villages and painted their houses
• LIC- puppet shows to create
awareness
• ICICI Prudential- Haats, mandis
 Rural
marketing-Challenges and
way ahead
• Consumers in the rural regions
are also likely to buy products
through online ( e retail) over
time.
• Rural regions also have
telecommunication coverage,
computers and smartphones .
• Companies are trying to enter
and capture the rural market
through online portals
• Due to the advent of
cost-effective internet
,companies are trying to
overcome geographical
barriers and extend its horizon.
Rural marketing-Challenges and
way ahead
• By the year 2025, as per the
report of market research firm
Nielsen, FMCG market in
India is anticipated to reach a
size of US$ 100 billion .
• According to McKinsey
Global Institute , annual real
income of the rural household
in India is expected to
increase to 3.6 per cent by
2025
Source:[Link]
 Managing a Holistic
Marketing organization
Dr. R. Renganathan
Faculty Member, School of Management
SASTRA Deemed University, Thanjavur – 613 401
renganathan@[Link]
Learning objectives
• To understand about internal marketing
• To know how modern marketing departments
can be organized
• To understand the various aspects of
marketing implementation and marketing
control
Internal Marketing
• Requires everyone in the organization to
accept the concepts and goals of
marketing
• Everyone in the organization has to
engage in identifying, providing, and
communicating customer value
Marketing organization
Ways of organizing Marketing
Department
• Functional Organization
• Geographic Organization
• Product- or Brand-Management
Organization
• Market-Management Organization
• Matrix-Management Organization
Functional Organization

Vice President
Marketing

Manager Manager
Administration Manager
Advertising Manager
manager Marketing New
& Sales Sales
Marketing products
promotion
 Geographic Organization
✔ A company selling in various parts of the country
often organizes its sales force or its marketing
based on geographical area
✔ National sales manager may supervise regional
sales managers
✔ Each regional sales managers may supervise
salespeople
✔ Some companies may add market specialists or
regional/local marketing specialists to support
sales efforts in high volume markets
The Product-Management
Organization

Source: Kotler,Keller-Marketing management, Pearson education,2011

Tasks of Product/Brand
manager
• To develop long-range/competitive
strategy for each product
• To prepare annual marketing plan/sales forecast
• To work with Ad & merchandising agencies for
campaigns development
• To get support among channel members for
products
• To collect information from the market
• To initiate improvements in products
 Product teams
• Product teams are formed in Product management
organization
Types
Vertical team Triangular team

Triangular team
Horizontal team

Source: Kotler,Keller-Marketing management, Pearson education,2011

Market-Management Organization
• Many companies sell their products to different
markets.
• This type is required when companies have to
market their products for different user groups with
varied buying preferences
• Organizing around customer segments instead of
products
• With the help of qualitative and quantitative
research customers needs and preferences can be
understood
Matrix-Management Organization
• It is known as Product/Marketing-Management
Matrix System
• Companies that produce many products for many
markets may adopt a matrix organization
• It can employ both product and market managers.
Marketing Implementation &
Control
Marketing Implementation
The process that turns marketing plans into action
assignments and ensures they accomplish the plan’s
stated objectives
Marketing control
The process by which firms assess the effects of their
marketing activities and programs and make
necessary changes and adjustments
Types of marketing control
• Annual Plan Control
• Profitability Control
• Efficiency Control
• Strategic Control
Annual Plan Control

Source: Kotler,Keller-Marketing management, Pearson education,2011

Annual plan
control-Approaches
• Sales analysis
• Market share analysis
• Sales-to-expense ratios
• Financial analysis
• Market-based scorecard analysis
Strategic Control
• Each firm has to periodically reassess its
strategic approach to the marketplace with a
good marketing audit
• Marketing audit is a comprehensive,
systematic, independent, periodic
examination of a company’s or business unit’s
marketing environment, objectives,
strategies, and activities with a view to
determining problem areas and
opportunities, and recommending a plan of
action to improve the company’s marketing
performance.
Characteristics of
Marketing Audits
• Comprehensive
• Systematic
• Independent
• Periodic
 Corporate Social Responsibility
(CSR)
CSR, is the act of incorporating environmental and social
concerns into a company’s planning and operations.

• On April 1, 2014, India became the first country to

legally mandate corporate social responsibility.
• The new rules in Section 135 of India's Companies Act
make it mandatory for companies of a certain turnover
and profitability to spend two percent of their average
net profit for the past three years on CSR.
CSR relies on
✔ Socially responsible behavior
✔ Legal behavior
✔ Ethical behavior
 Top-Rated Companies for
Social Responsibility
1. Rolex
2. Lego
3. Disney
4. Adidas Group
5. Microsoft
6. Sony
7. Cannon
8. Michelin
9. Netflix
10. Bosch
Top Indian Companies for
CSR in 2019
• Tata Chemicals
• Infosys Ltd.
• Bharat Petroleum Corporation Ltd.
• Mahindra & Mahindra Ltd.
• ITC Ltd.
• Ambuja Cement Ltd.
• Tata Motors Ltd.
• Vedanta Ltd.
• Hindalco Industries Ltd.
• Toyota Kirloskar Motor India
Cause-Related Marketing
• Links the firm’s contributions to a designated
cause to customers engaging directly or
indirectly in revenue-producing transactions with
the firm.
• It is a part of corporate societal marketing (CSM)
Cause-Related Marketing in India
Examples:
Vistara #FlyTheNewFeeling
• Vistara is the joint venture of an airline from Tata
Group as well as Singapore Airlines.
• It has partnered with Salaam Baalak’s trust which is a
non-profit, as well as a non-governmental organization,
is providing support to street children of Delhi and
Mumbai to fly 12 kids on its first flight ever.
Cause-Related Marketing in India
Johnson Tiles ‘Red Ramp Project’
• Bath tile maker, Johnson Tiles always wanted to
sensitize the Indian society towards making public
places disable-friendly.
• Johnson Tiles launched the Red Ramp
Project where a ramp was built on Kiri beach in
Goa. Since the disabled people could now visit the
beach via the tiled ramp as well as feel the waters
lapping their feet.
Cause-Related Marketing in
India
Dark is beautiful
• Women of Worth launched
the Dark is Beautiful campaign in
India because such a campaign
was required more than anything
else.
• Country’s deep-seated history of
belief that continues the myth that
light-skinned girls are beautiful and
darker girls are not.
How to brand a Cause
Marketing Program?
• Self-branded: Create own cause program
• Co-branded: Link to existing cause program
• Jointly branded: Link to existing cause Program

Source: Kotler,Keller-Marketing management, Pearson education,2011

Social Marketing
• Social marketing :The welfare of people and
also their physical, social and economic
environment can be developed with the help
of commercial marketing
• Nonprofits or government organizations may
involve in Social marketing which fosters a
cause
Social Marketing Campaigns
-Objectives
• Cognitive campaigns: Explain the value of
nutritional foods
• Behavioural campaigns: Demotivate cigar rete
smoking; alcohol consumption
• Action campaigns: Inspire people to donate
blood
• Value campaigns: Alter ideas about suicide;
abortion
Social Marketing
programs-Success factors
• Target markets which are willing to respond be
chosen
• In clear, simple terms a single possible behavior
can be promoted
• With the help of persuasion benefits can be
explained
• To accept the behavior , it can be made simple
• Messages can be developed to grab the attention
• Approach like education-entertainment be
considered.
Name of the Course: Marketing Management

Managing Retailing,
Lecture13:

Wholesaling &Logistics

Dr. R. Renganathan
Faculty Member, School of Management
SASTRA Deemed University,Thanjavur – 613 401
renganathan@[Link]

1
Objectives
⚫ To understand the significant types of
marketing intermediaries.
⚫ To know about the marketing decisions
of marketing intermediaries
⚫ To understand some crucial issues in
Supply chain management and logistics
⚫ To identify the transportation factors

2
Retailing
Retailing includes all the activities involved
in selling goods or services directly to final
consumers for personal, non business use.

Retailer/retail store
Any business enterprise whose sales volume
comes primarily from retailing

3
Types of retailers
⚫ Store retailers,
⚫ Nonstore retailers,
⚫ Retail organizations

4
Store retailers
⚫ Specialty store
⚫ Department store
⚫ Supermarket
⚫ Convenience store
⚫ Drug store
⚫ Discount store
⚫ Off-price retailer
⚫ Superstore
⚫ Catalog showroom
5
Levels of service for store
retailers

Self-service
Self-selection
Limited service
Full service

6
Non store retailing
Direct marketing
Direct selling
Automatic vending
Buying services

7
Marketing Decisions
✔ Target market
✔ Channels
✔ Product assortment
✔ Procurement
✔ Prices
✔ Services
✔ Store atmosphere
✔ Store activities and experiences
✔ Communications
✔ Location 8
Retailer Services Mix
⚫ Pre purchase services
⚫ Post purchase services
⚫ Ancillary services

9
Store Atmosphere
Walls
Lighting
Signage
Product placement
Floors
Surface space
Music

10
Wholesaling
Wholesaling includes all the activities in
selling goods or services to those who
buy for resale or business use

11
Major wholesaler types
❖ Merchant
❖Full-service
❖ Limited-service
❖Brokers & agents
❖ Manufacturers
❖ Specialized wholesaler

12
Wholesaler functions
• Selling and promoting
• Buying and assortment building
• Bulk breaking
• Warehousing
• Transportation
• Financing
• Risk bearing
• Market information
• Management services and counseling
13
Supply chain & Market logistics
Supply chain management (SCM)
Market logistics
Integrated logistics systems (ILS)
Lean manufacturing

14
Market logistics planning

✔ Deciding on company’s value proposition

✔ Selecting best channel design and network
strategy
✔ Developing operational excellence
✔ Implementing solution

15
Market-Logistics Decisions
⚫ Order processing: Handling orders
⚫ Warehousing: Location of stock
⚫ Inventory: Quantity of stock
⚫ Transportation: shipping goods

16
Optimal Ordering Quantity

Source: Kotler,Keller.,Marketing Management, 15e. Pearson

Education Ltd.2016 17
Transportation Factors
Speed
Frequency
Dependability
Capability
Availability
Traceability
Cost

18
Transportation
Containerization
◦ Piggyback, fishyback, trainship, and
airtruck
Private vs. contract vs. common carriers

19
Name of the Course: Marketing Management

Lecture11: Distribution Management

Dr. R. Renganathan
Faculty Member, School of Management
SASTRA Deemed University,Thanjavur – 613 401
renganathan@[Link]

1
Objectives
⚫ To understand about marketing channel
system & value network
⚫ To know about the various flows & types
of channels
⚫ To understand about how marketing
channels are designed
⚫ To identify the decisions companies face
in managing their channels
⚫ To know about how companies should
integrate marketing channels
2
Marketing Channels & Value
network
A marketing channel system is the
particular set of interdependent
organizations involved in the process of
making a product or service available for
use or consumption.

3
Channels and Marketing
Decisions
⚫ A push strategy uses the manufacturer’s
sales force, trade promotion money, and
other means to induce intermediaries to
carry, promote, and sell the product to
end users.
⚫ A pull strategy uses advertising,
promotion, and other forms of
communication to persuade consumers
to demand the product from
intermediaries.

4
Multichannel marketing

✔ Using two or more marketing channels to

reach customer segments in one market
area
✔ Omnichannel marketing
✔ Integrated marketing channel system

5
Value network

– A system of partnerships and alliances that a

firm creates to source, augment, and deliver
its offerings
– Demand chain planning

6
Channel member key functions
⚫ Gather information
⚫ Develop and disseminate persuasive
communications
⚫ Reach agreements on price and terms
⚫ Acquire funds to finance inventories
⚫ Assume risks
⚫ Provide for storage
⚫ Provide for buyers’ payment of their bills
⚫ Oversee actual transfer of ownership
7
Marketing Channel Flows
A variety of programs directed internally to
employees of the company or externally
to customers, other firms, the
government, and media to promote or
protect a company’s image or its
individual product communications
Philip Kotler et al., (2016)

Source: Kotler,Keller.,Marketing Management, 15e. Pearson

Education Ltd.201
8
Consumer Marketing Channels

Source: Kotler,Keller. Koshy,Jha,Marketing Management, 13e.

Dorling Kindersley (India) Pvt. Ltd..2009

9
Industrial marketing channels

Source: Kotler,Keller. Koshy,Jha,Marketing Management, 13e.

Dorling Kindersley (India) Pvt. Ltd..2009

10
Channel-Design Decisions
⚫ Analyze customer needs
⚫ Establish channel objectives
⚫ Identify major channel alternatives
⚫ Evaluate major channel alternatives

11
Analyze customer needs

❖ Desired lot size

❖ Waiting and delivery time
❖ Spatial convenience
❖ Product variety
❖ Service backup

12
Identifying major channel
alternatives
⚫ Types of intermediaries

⚫ Number of intermediaries
◦ Exclusive distribution
◦ Selective distribution
◦ Intensive distribution

13
Identifying major channel
alternatives
⚫ Terms/responsibilities of channel
members
❖Price policy
❖ Conditions of sale
❖ Distributors’ territorial rights
❖ Mutual services and responsibilities

14
Evaluating major channel alternatives
▪ Economic criteria
▪ Control and adaptive criteria

Source: Kotler,Keller.,Marketing Management, 15e. Pearson

Education Ltd.2016
15
Channel-Management Decisions
⚫ Selecting channel members
⚫ Training channel members
⚫ Motivating channel members
⚫ Evaluating channel members
⚫ Selecting channel members
⚫ Modifying channel members

16
Training and Motivating Channel
Members
Channel Power
⚫ Coercive
⚫ Reward
⚫ Legitimate
⚫ Expert
⚫ Referent

17
Channel Members - Training &
Motivation
❖ Channel partnerships and ECR (Efficient
Consumer Response ) practices
✔ Demand-side management
✔ Supply-side management
✔ Enablers and integrators

18
Channel Integration and Systems
Vertical marketing systems
✔ Corporate VMS
✔ Administered VMS
✔ Contractual VMS
▪ Wholesaler-sponsored voluntary chains
▪ Retailer cooperatives
▪ Franchise organizations
Horizontal marketing systems
Multichannel systems
19
E-Commerce & M-Commerce
Marketing practices
⚫ E-commerce-Uses a Web site to
transact or facilitate the sale of
products and services online
-Pure-click vs. brick-and-click companies
• M-Commerce- Uses mobile channels
and media to keep consumers as
connected and interacting with a brand as
they choose
•

20
Channel Conflict & Types
❖ Channel conflict occurs when one
member’s actions prevent another
channel from achieving its goal.
❖ Types of channel conflict
Vertical
Horizontal
Multichannel

21
Causes of channel conflict

▪Goal incompatibility
▪ Unclear roles and rights
▪ Differences in perception
▪ Intermediaries’ dependence
on manufacturer

22
Strategies for Managing
Channel Conflict
Adoption of superordinate goals
Exchange of employees
Joint membership in trade
association
Cooptation
Diplomacy
Mediation
Arbitration
Legal recourse 23
Name of the Course: Marketing Management

Lecture 9 : Promotion Management-

Marketing Communication mix-II

Dr. R. Renganathan
Faculty Member, School of Management
SASTRA Deemed University,Thanjavur – 613 401
renganathan@[Link]

1
Objectives
We will address the following questions:
▪ How should sales promotion decisions

be made?
⚫ How can companies exploit the potential
of public relations?
⚫ What decisions do companies face in
designing and managing a sales force?
⚫ How can salespeople improve selling,
negotiating, and relationship marketing
skills?
2
Objectives
▪ How can companies conduct direct
marketing for competitive advantage?
▪ What are the pros and cons of database
marketing?

3
Sales Promotion
⚫ Sales promotions consist of a
collection of incentive tools, mostly short
term, designed to stimulate quicker or
greater purchase of particular products or
services by consumers or the trade.

4
Major decisions-Sales
promotion
⚫ Establish objectives
⚫ Select tools
⚫ Develop program
⚫ Implement & evaluate the program

5
Sales promotion tools
Consumer-directed Trade-directed
⚫ Samples ⚫ Price offs
⚫ Coupons ⚫ Allowances
⚫ Cash refund offers ⚫ Free goods
⚫ Price offs ⚫ Sales contests
⚫ Premiums ⚫ Spiffs
⚫ Prizes ⚫ Trade shows
⚫ Patronage rewards ⚫ Specialty advertising
⚫ Free trials
⚫ Tie-in promotions

6
Sales Promotion
How to implement and evaluate the
program?
❑Lead time
❑ Sell-in time
❑ Sales/scanner data
❑ Consumer surveys
❑ Experiments

7
Public relations & Publicity
A variety of programs directed internally to
employees of the company or externally
to customers, other firms, the
government, and media to promote or
protect a company’s image or its
individual product communications
Philip Kotler et al., (2016)

8
Public Relations
PR department functions
⚫ Press relations
⚫ Product publicity
⚫ Corporate communications
⚫ Lobbying-Dealing with legislators &
[Link] to promote or defeat
legislation and regulation
⚫ Counseling- Advising mgmt. about public
issues and company positions & image in
good& bad times
9
Marketing public relations (MPR)
tasks
⚫ Launching new products
⚫ Repositioning a mature product
⚫ Building interest in a product category
⚫ Influencing specific target groups
⚫ Defending products that have
encountered public problems
⚫ Building the corporate image in a way that
reflects favorable on products

10
Major Tools in Marketing PR
⚫ Publications
⚫ Events
⚫ Sponsorships
⚫ News
⚫ Speeches
⚫ Public Service Activities
⚫ Identity Media

11
Public Relations
⚫ Major decisions in marketing PR
❖ Establishing objectives
❖ Choosing messages and vehicles
❖ Implementing the plan
❖ Evaluating results

12
Personal selling
⚫ Face-to-face interaction with one or
more prospective purchasers for the
purpose of making presentations,
answering questions, and procuring
orders.
Philip Kotler et al., (2016)

13
Personal Selling
Designing a Sales Force
⚫ Sales force objectives
⚫ Sales force strategy
⚫ Sales force structure
⚫ Sales force size
⚫ Compensation

14
Sales Force Objectives and
Strategy
⚫ Selling teamwork
-Top management, technical people,
customer service representatives, and
office staff
⚫ Direct (company) sales force
⚫ Contractual sales force

15
Objectives and Strategy-Sales
force
✔ Prospecting
✔ Targeting
✔ Communicating
✔ Selling
✔ Servicing
✔ Information gathering
✔ Allocating

16
Sales Force Structure
Four types of sales forces
❑ Strategic market sales force assigned to
major accounts
❑ A geographic sales force calling on
customers in different territories
❑ A distributor sales force calling on and
coaching distributors
❑ An inside sales force marketing and taking
orders online and via phone

Source: Kotler,Keller.,Marketing Management, 15e. Pearson

Education Ltd.2016
17
Sales Force Size
⚫ Workload approach to sales force size
1. Group customers into size classes according to
annual sales volume
2. Establish desirable call frequencies for each
customer class
3. Multiply the number of accounts in each size class
by the corresponding call frequency to arrive at the
total workload for the country
4. Determine the average number of calls a sales
representative can make per year
5. Divide the total annual calls required by the
average annual calls made by a sales
representative to arrive at the number of sales
representatives needed
18
Types of Sales Representatives
• Deliverer
• Order taker
• Missionary
• Technician
• Demand creator
• Solution vendor

19
Managing the Sales Force
⚫ Recruiting, selecting
⚫ Training
⚫ Supervising
⚫ Motivating
⚫ Evaluating

20
Sales Force Compensation
⚫ Four components of sales force compensation
– Fixed amount
– Variable amount
– Expense allowances
– Benefits
⚫ Straight salary, straight commission, and
combination of two

21
Steps in Effective Selling
⚫ Prospecting/Qualifying
⚫ Pre approach
⚫ Approach
⚫ Presentation
⚫ Overcoming objections
⚫ Closing
⚫ Follow-up

22
Direct marketing
The use of consumer-direct (CD) channels
to reach and deliver goods and services
to customers without using marketing
middlemen

23
Direct marketing channels
⚫ Direct mail
⚫ Catalog marketing
⚫ Telemarketing
⚫ Other direct-response marketing
. -Newspapers and magazines carry ads
offering books, clothing, appliances,
vacations, and other goods and services
that individuals can order via toll-free
numbers. Radio ads present offers 24 hours
a day.
24
Constructing a Direct-mail Campaign
Choose objectives
Choose target markets and prospects
Choose offer elements
Test elements
Measure success: lifetime value

25
Public and ethical issues in Direct
marketing
⚫ Irritation
⚫ Unfairness
⚫ Deception/fraud
⚫ Invasion of privacy

26
Name of the Course: Marketing Management

Promotion Management-
Lecture 7 :

Marketing Communication mix

Dr. R. Renganathan
Faculty Member, School of Management
SASTRA Deemed University,Thanjavur – 613 401
renganathan@[Link]

1
Objectives
We will address the following questions:
⚫ What is the role of marketing
communications?
⚫ How do marketing communications
work?
⚫ What are the major steps in developing
effective communications?
⚫ How should the communications mix be
set and evaluated?
2
 Horlicks’s Campaign for Stronger,
Taller, Sharper

Source: [Link]
3
Marketing Communications
Marketing communications are
the means by which firms attempt to
inform, persuade, and remind
consumers, directly or indirectly,
about the products and brands they
sell.

4
Marketing Communications mix
• Advertising ⚫ Events and
• Sales promotion experiences
• Public relations and • Online and social
publicity media marketing
• Personal selling • Mobile marketing
• Direct and
database marketing

5
Communication platforms
Advertising Personal selling
⚫ Print and broadcast ads ⚫ Sales presentations
⚫ Packaging inserts
⚫ Sales meetings
⚫ Motion pictures
⚫ Incentive programs
⚫ Brochures and booklets
⚫ Posters ⚫ Samples
⚫ Billboards ⚫ Fairs and trade
⚫ POP displays shows
⚫ Logos
⚫ Videotapes

6
Communication platforms
Public Relations and
Publicity Sales Promotion
⚫ Press kits ⚫ Contests, games,
⚫ Speeches sweepstakes
⚫ Seminars
⚫ Premiums
⚫ Annual reports
⚫ Sampling
⚫ Charitable donations
⚫ Trade shows, exhibits
⚫ Publications
⚫ Coupons
⚫ Community relations
⚫ Lobbying ⚫ Rebates

⚫ Identity media ⚫ Entertainment

⚫ Company magazine ⚫ Continuity programs
7
Communication platforms
Events/ Direct Marketing
Experiences ⚫ Catalogs
⚫ Sports ⚫ Mailings
⚫ Entertainment ⚫ Telemarketing
⚫ Festivals ⚫ Electronic shopping
⚫ Arts ⚫ TV shopping
⚫ Causes ⚫ Fax mail
⚫ Factory tours ⚫ E-mail
⚫ Company museums ⚫ Voice mail
⚫ Street activities ⚫ Blogs
⚫ Websites
8
Word-of-Mouth Marketing

✔Person-to-person
✔Chat rooms
✔Blogs

9
The Communications Process

❖ Selective attention
❖ Selective distortion
❖ Selective retention

10
Response Hierarchy Models

Source: Kotler,Keller,Koshy,Jha Marketing Management, 13e.

Dorling Kindersley (India) Pvt. Ltd. 2009
11
An ideal ad campaign
At the right place and time, the right consumer is
exposed to the message
The ad has to grab the attention of the consumer.
The ad reflects consumer’s level of
understanding of brand
Points-of-difference and points-of-parity have to
be positioned by the ad
Buyers have to be motivated by the ad to think
about purchase
Strong brand associations has to be generated
by the ad
Source: Kotler,Keller.,Marketing Management, 15e. Pearson Education Ltd.2016

12
Steps in Developing Effective Communications

Source: Kotler,Keller.,Marketing Management, 15e. Pearson

Education Ltd.2016
13
Communications Objectives
⚫ Category Need
⚫ Brand Awareness
⚫ Brand attitude
⚫ Purchase Intention

14
Designing the Communications
⚫ Message strategy
⚫ Creative strategy
-Informational &Transformational appeals
⚫ Message source-Celebrity characteristics
Expertise
Trustworthiness
Likeability
⚫ Global adaptation

15
Issues facing Global Adaptations
⚫ Is the product restricted in some
countries?
⚫ Are there restrictions on advertising the
product to a specific target market?
⚫ Can comparative ads be used?
⚫ Can the same advertising be used in all
country markets?

16
Select Communication channels
⚫ Personal channels-Advocate channels,
Expert channels, Social channels
⚫ Nonpersonal channels-Media, Sales
Promotion, Events and Experiences, Public
Relations
⚫ Integration of channels

17
Establish the Marketing
Communications Budget
⚫ Affordable method
⚫ Percentage-of-sales method
⚫ Competitive-parity method
⚫ Objective-and-task method

18
Decide on Media mix
Characteristics of the marketing
communications mix
Advertising Sales Promotion
⚫ Pervasiveness ⚫ To grab the attention
⚫ Amplified ⚫ Incentive
expressiveness ⚫ Invitation
⚫ Control

19
Decide on Media mix
Characteristics of the marketing
communications mix
Public Relations and Personal Selling
Publicity ⚫ Customized
⚫ High credibility ⚫ Relationship oriented
⚫ Ability to reach ⚫ Response oriented
hard-to-find buyers
⚫ Dramatization

20
Decide on Media mix
Characteristics of the marketing
communications mix

Direct Marketing Events and

⚫ Customized Experiences
⚫ Up-to-date ⚫ Relevant

⚫ Interactive ⚫ Involving
⚫ Implicit

21
Factors in setting the Marketing communications mix
❑ Type of product market
▪ Consumer vs. business marketers
▪ Advertising/sales promotion vs. personal
selling
❑ Product –life cycle stage
❑ Buyer readiness stage

22
Measuring communication results
⚫ Reach & Frequency-the percentage of
target market exposed to a
communication & the [Link] exposures
⚫ Recall & recognition
⚫ Persuasion changes
⚫ Cost-per-thousand calculations

23
What is Advertising?
Advertising is any paid form of
nonpersonal presentation and
promotion of ideas, goods, or
services by an identified sponsor.
-AMA

24
Developing and Managing
an Advertising Program
⚫ The Five M’s of Advertising

Source: Kotler,Keller.,Marketing Management, 15e. Pearson

Education Ltd.2016
25
Evaluating Advertising Effectiveness
⚫ Communication-effect research
◦ In-home tests, trailer tests, theater tests,
on-air tests
⚫ Sales-effect research
◦ Historical approach
◦ Experimental data

Source: Kotler,Keller.,Marketing
Management, 15e. Pearson
Education Ltd.2016
26
Sales Promotion
⚫ Sales promotions consist of a
collection of incentive tools, mostly short
term, designed to stimulate quicker or
greater purchase of particular products or
services by consumers or the trade.

27
Sales promotion tools
Consumer-directed Trade-directed
⚫ Samples ⚫ Price offs
⚫ Coupons ⚫ Allowances
⚫ Cash refund offers ⚫ Free goods
⚫ Price offs ⚫ Sales contests
⚫ Premiums ⚫ Spiffs
⚫ Prizes ⚫ Trade shows
⚫ Patronage rewards ⚫ Specialty advertising
⚫ Free trials
⚫ Tie-in promotions

28
Public relations & Publicity
A variety of programs directed internally to
employees of the company or externally
to customers, other firms, the
government, and media to promote or
protect a company’s image or its
individual product communications
Philip Kotler et al., (2016)

29
Public Relations
PR department functions
⚫ Press relations
⚫ Product publicity
⚫ Corporate communications
⚫ Lobbying-Dealing with legislators &
[Link] to promote or defeat
legislation and regulation
⚫ Counseling- Advising mgmt. about public
issues and company positions & image in
good& bad times
30
Marketing public relations (MPR)
tasks
⚫ Launching new products
⚫ Repositioning a mature product
⚫ Building interest in a product category
⚫ Influencing specific target groups
⚫ Defending products that have
encountered public problems
⚫ Building the corporate image in a way that
reflects favorable on products

31
Major Tools in Marketing PR
⚫ Publications
⚫ Events
⚫ Sponsorships
⚫ News
⚫ Speeches
⚫ Public Service Activities
⚫ Identity Media

32
Personal selling
⚫ Face-to-face interaction with one or
more prospective purchasers for the
purpose of making presentations,
answering questions, and procuring
orders.
Philip Kotler et al., (2016)

33
Personal Selling
Designing a Sales Force
⚫ Sales force objectives
⚫ Sales force strategy
⚫ Sales force structure
⚫ Sales force size
⚫ Compensation

34
Sales Force Objectives and Strategy
⚫ Selling teamwork
-Top management, technical people,
customer service representatives, and
office staff
⚫ Direct (company) sales force
⚫ Contractual sales force

35
Types of Sales Representatives
• Deliverer
• Order taker
• Missionary
• Technician
• Demand creator
• Solution vendor

36
Managing the Sales Force
⚫ Recruiting, selecting
⚫ Training
⚫ Supervising
⚫ Motivating
⚫ Evaluating

37
Sales Force Compensation
⚫ Four components of sales force compensation
– Fixed amount
– Variable amount
– Expense allowances
– Benefits
⚫ Straight salary, straight commission, and
combination of two

38
Steps in Effective Selling
⚫ Prospecting/Qualifying
⚫ Pre approach
⚫ Approach
⚫ Presentation
⚫ Overcoming objections
⚫ Closing
⚫ Follow-up

39
Name of the Course: Marketing Management

Lecture 18 Product Life Cycle (PLC)

Dr. R. Renganathan
Professor, School of Management
SASTRA Deemed University,Thanjavur – 613 401
renganathan@[Link]

1
Objectives
⚫ To understand the various stages of
Product Life Cycle.
⚫ To analyze the marketing objectives &
strategies at each stage of the product life
cycle.
⚫ Be familiar with common alternative
product life cycle patterns.
⚫ To analyze the special categories of
product life cycles.

2
Product Life Cycle (PLC)
⚫ Product life cycle (PLC) is the path
that a product’s sales and profits take
over its lifetime
Stages
✔ Product development
✔ Introduction
✔ Growth
✔ Maturity
✔ Decline

3
Product Life Cycle (PLC)

Source: Kotler,Keller.,Marketing Management, 15e. Pearson Education

Ltd.2016
Product life cycle (PLC)-Stages
Introduction: Slow sales growth in this
period, since the introduction of product
in the market. Due to heavy expenses
to introduce the product, profits are
nonexistent.
Growth: In this period, considerable
progress in the profit because of the
quick acceptance of product in the
market

5
Product life cycle (PLC)-Stages
Maturity: Slowdown in sales growth
due to the acceptance of the product
by most of the potential buyer.
Because of the stringent competition,
profits may be stabilized or declined.
Decline: Sales come down and profits
erode.

6
Product Life Cycle- Stages
Introduction
⚫ Low sales
⚫ High costs per customer
⚫ Negative profits
⚫ Innovator customers
⚫ Few competitors

7
Product Life Cycle- Stages
Growth
⚫ Rising sales
⚫ Average costs
⚫ Rising profits
⚫ Early adopters customers
⚫ Growing competition

8
Product Life Cycle- Stages
Maturity
⚫ Peak sales
⚫ Low costs
⚫ High profits
⚫ Middle majority customers
⚫ Stable/declining competition

9
Product Life Cycle- Stages
Decline
⚫ Declining sales
⚫ Low costs
⚫ Declining profits
⚫ Laggard customers
⚫ Declining competition

10
Product Life Cycle- Objectives
& Strategies
Introduction stage
Objective:
⚫ To create awareness and trial
Strategies:
Offer a basic product
Price at cost-plus
Selective distribution
Awareness – dealers and early adopters
Induce trial via heavy sales promotion
11
Product Life Cycle- Objectives &
Strategies
Growth stage
Objective:
To maximize market share
Strategies:
⚫ Spending money on product
improvement, promotion, and distribution,
the firm can capture a dominant position.
⚫ It trades off maximum current profit for
high market share and the hope of even
greater profits in the next stage.
12
 Product Life Cycle-
Objectives & Strategies
Maturity stage
Objective:
To maximize profit while defending
market share
Strategies:
✔ Market modification
✔ Product modification
✔ Marketing program modification

13
Product Life Cycle- Objectives &
Strategies
Decline-stage
Objective:
Reduce costs and milk the brand
Strategies:
⚫ Eliminating Weak Products
⚫ Harvesting and Divesting

14
Common alternative pattern

Source: Kotler,Keller.,Marketing Management, 15e. Pearson Education

Ltd.2016
15
 Special categories of product life
cycles
⚫ Style is a basic and unique mode of
appearance appearing in human endeavour.
Clothing: Formal; casual; sporty
⚫ Fashion is a currently accepted popular
style in a given field. Stages:
distinctiveness; emulation; mass
fashion; decline.
• Fads are adopted with great enthusiasm and
decline very fast; and acceptance cycle-short
16
Special categories of product life cycles

Source: Kotler,Keller.,Marketing Management, 15e. Pearson Education

Ltd.2016
17
 Product life cycle (PLC)-Uses
PLC analyzes product class, form,
product and brand
Product class
• Product classes have the longest life
cycles, with sales of many product
classes in the mature stage for a long
time.
Example : laundry soaps

18
 Product life cycle (PLC)
Product form
• Product forms have the standard PLC—
shape, introduction, rapid growth, maturity,
and decline. Example: powdered
detergents
Brand
• Due to the threats from competition,
Brands have changing PLCs . Example:
Surf

19
Name of the Course: Marketing Management

Lecture 17 New Product Development (NPD)

Dr. R. Renganathan
Professor, School of Management
SASTRA Deemed University,Thanjavur – 613 401
renganathan@[Link]

1
Objectives
⚫ To understand how companies find and develop
new-product ideas
⚫ To understand the reasons for success & failure
of New product
⚫ To know the various steps of New product
development process.
⚫ To understand the major considerations in the
New product development process.

2
Product
⚫ A product is anything that can be offered
to a market to satisfy a want or need
⚫ It includes physical goods, services,
experiences, events, persons, places,
properties, organizations, information, and
ideas.

3
New-Product Development
Strategy

New products can be possible for a firm

through:
• Acquisition
• New-product development
Acquisition :
Buying of a whole company, a patent, or a
license to produce someone else’s
product.
4
What is a “New” Product?
• New-to-the-world of products
• New product lines
• Additions to existing product lines
• Improvements and revisions of existing
products with the help of organization’s own
R&D
• Repositioned products
• Cost reduction products

5
Reasons for New product failure
• Wrong estimation of market size
• Improper design
• Incorrect positioning
• Incorrect launch timing
• Shorter development time
• Not appropriate Price
• Ineffective promotion
• High development costs
• Competition
• Fragmented markets
• Lack of organizational support
• Social, economic & government
constraints 6
Reasons for New products success
•Product with sustainable competitive
advantage
•Better product as per customer needs
•Better performance of the product -to-cost
ratios and with good contribution margins
•Product launched with appropriate budgets
•Support of the top management

7
New Product Development (NPD)
process
⚫ Idea Generation
⚫ Idea Screening
⚫ Concept Development and Testing
⚫ Marketing Strategy Development
⚫ Business Analysis
⚫ Product Development
⚫ Test Marketing
⚫ Commercialization

8
 Idea Generation
⚫ It is systematic search of new product ideas.
⚫ New product development starts with good
new product ideas.
Internal idea sources:
⚫ R&D
⚫ Firm -Executives; salespeople, scientists,
engineers, manufacturing staff
⚫ Development of internal social networks &
intrepreneurial programs to encourage
employees to develop new product ideas
9
 Idea Generation
External idea sources:
⚫ Customers
⚫ Suppliers & Distributors
⚫ Competitors
⚫ Trade magazines; trade shows; websites;
workshop; seminars
⚫ Government agencies
⚫ Advertising agencies
⚫ Marketing research firms
⚫ University & commercial labs.
⚫ Crowdsourcing
10
Idea screening
⚫ To reduce the number of ideas
⚫ To identify good ideas and reject poor ideas
One marketing expert describes “R-W-W”
What is “R-W-W”?
• Is it Real?
Is there a real need for the product?
Is there a real desire for the product?

11
Idea screening
Can we Win?
✔ Does the product offer a SCA?
✔ Whether the firm's resources are
conducive to make such a product
success?
• Is it Worth doing?
⚫ Whether the product ensures the
company’s overall growth strategy?
⚫ Does it fetch adequate profit potential?
If the company has positive answers to all
the R-W-W questions, then only they can 12
Concept development & testing
✔ Consumers don’t buy product ideas;
they buy product concepts.
✔ A product idea can be turned into
several concepts.
Product idea is an idea for a possible
product that the company can see itself
offering to the market
Product concept is a detailed version of
the idea stated in meaningful consumer
terms
Product image is the way consumers
perceive an actual or potential product
13
Concept development & testing
Concept development
⚫ Product positioning map:
Example: breakfast drink, which offers low
cost and quick preparation.
Competitors: cold cereal and breakfast
bars; distant is bacon and eggs
• These differences can help to
communicate & promote the concept in
the market.

14
Concept development
⚫Brand positioning map
:
A perceptual map
showing the current
positions of three
existing brands of
instant breakfast
drinks (A–C) as seen
by consumers

15
Source: Marketing management, Philip
Concept testing responses

⚫ Communicability & believability

⚫ Need level; Gap level
⚫ Perceived value
⚫ Purchase intention
⚫ Target customers, , purchase occasions &
frequency.
⚫ Concept testing
Testing to the new-product concepts with
groups of target consumers
16
 Marketing Strategy Development

Marketing strategy development refers to

the initial marketing strategy for
introducing the product to the market
Marketing strategy statement
• Description of the target market
• Product positioning, sales, market share,
and profit goals
• Price, distribution, and budget
• Long-term sales, profit goals, and
marketing
17
Business analysis
⚫ It involves review about the sales, costs,
and profit projections satisfy the
company’s objectives
• Product development involves the
creation and testing of one or more
physical versions by the R&D or
engineering departments
• Product development obviously involves
sufficient investment
18
Test marketing
✔ This stage involves the introduction of
product and marketing program in the
real marketing settings,

✔ Before the launch of the actual product,

test marketing of the product and
marketing program will be useful to the
marketer.

19
 Test marketing
When firms have to do test marketing?
• Huge investment for new product
• The product or marketing program is not
convinced.
When firms have not to do test
marketing?
• Product is just extension
• Imitation of competitor product
• Costs of the product is relatively low.
• Management is highly confident.

20
Commercialization
Commercialization is the introduction of
the new product
• When to launch?
• Where to launch?
• Planned market rollout.

21
Successful new product
development
It should be:
• Customer-centered
Based on customer requirements
• Team-centered
To save time and increase effectiveness, various
departments of the company work
together in cross-functional teams

22
Successful new product
development
⚫ Systematic
This approach collects, reviews, evaluates,
and manages new-product ideas and it is
innovative

23
Name of the Course: Marketing Management

Lecture15: Setting Product strategy

Dr. R. Renganathan
Professor, School of Management
SASTRA Deemed University,Thanjavur – 613 401
renganathan@[Link]

1
Objectives
⚫ To understand the characteristics of
products and how marketers classify
products
⚫ To know how can companies differentiate
products
⚫ To understand how can a company build
and manage its product mix and product
lines
⚫ To understand the importance of
product design and different approaches
2
Product
⚫ Anything that can be offered to a
market to satisfy a want or need
⚫ Includes physical goods, services,
experiences, events, persons, places,
properties, organizations, information,
and idea

3
Components of the Market
offering

Source: Kotler,Keller.,Marketing Management, 15e. Pearson

Education Ltd.2016
4
Product Levels:The
customer-value hierarchy- Five
product levels

Source: Kotler,Keller.,Marketing Management, 15e. Pearson Education

Ltd.2016
5
Product Classifications schemes
⚫ Durability
⚫ Tangibility
⚫ Use

6
Classification-Consumer goods
⚫ Convenience goods
⚫ Shopping goods
⚫ Specialty goods
⚫ Unsought goods

7
Classification-Industrial goods
⚫ Materials and parts – raw materials
⚫ Capital items – machineries and
equipments
⚫ Supplies/ business services – maintenance
and repair items.

8
Product Differentiation
⚫ Product form – Size, shape
⚫ Features-
⚫ Customization
⚫ Performance – low; average; high;
superior
⚫ Conformance-
⚫ Durability
⚫ Reliability -
⚫ Repairability
⚫ Style
9
Service Differentiation
❖Ordering ease – easy to place the
order
❖ Delivery -
❖ Installation
❖ Customer training
❖ Customer consulting
❖ Maintenance and repair
❖ Returns

10
The Product Hierarchy
Item

Product type

Product line

Product class

Product family

Need family

11
Product Mix

Product mix/assortment
Width – [Link] different product lines
Length – total no. of items
Depth – no. of versions
Consistency

12
Product line length
⚫ Line stretching – Ferrari cars ( High
range)
Down-market stretch (Low range )
Up-market stretch (VW
Two-way stretch(Tata )
⚫ Line filling – Samsung laptops (new
variants)
⚫ Line modernization
⚫ Line featuring
⚫ Line pruning 13
 Consumer Behaviour,
Product & Branding
Strategies
L1
Dr. R. Renganathan
Professor, School of Management
SASTRA Deemed University, Thanjavur – 613 401
renganathan@[Link]
Learning objectives
• To know the meaning of consumer
behaviour & its relevance in marketing
• To understand how do consumer
characteristics influence buying behavior
• To know how major psychological
processes influence consumer responses to
the marketing program
Consumer market buying
behavior
• Purchasing behavior of the final
consumer like individuals and
households who purchase goods and
services for personal consumption is
known as consumer buyer behavior
• Buyers who buys goods and
services for personal
consumption rather than resale
purpose refers to consumer market
Consumer behavior
•‘The study of how individuals,
groups, and organizations select,
buy, use, and dispose of goods,
services, ideas, or experiences to
satisfy their needs and wants’
Kotler, Keller (2016)
•Cultural, social, and personal
factors influence consumer
behavior
Factors influencing consumer
behavior

Cultural factors

Social
Culture Subcultures
classes
Culture & Subcultures
• Culture is the Indian Culture, Customs
fundamental determinant & traditions
of a person’s wants and
behavior.
• Individuals acquire these
through socialization
processes with family and
other key institutions.
• Subcultures comprise of
nationalities, religions,
racial groups, and
geographic regions.
Social Classes
• Upper class
• Middle class
• Lower class
• Working class
Social Factors
• Reference groups
• Family
• Cliques
• Roles and status
Reference Groups
Attitudes or behavior influenced directly
through face to face or indirectly by the group
is known as ‘Reference Groups’.

• Membership groups
• Primary groups; Secondary groups
• Aspirational groups
• Dissociative groups
• Opinion leader
Status, Cliques, Family
• Degree of status is related with various
occupational roles
• Members in a small groups interact
frequently and network is known as
Cliques.
• In society the family is the most significant
consumer buying organization , and
members of the family create the most
influential primary reference group.
-Family of orientation vs. family of
procreation
Personal Factors
• Age
• Stage in life cycle
• Occupation
• Personality and
self-concept (how we view
ourselves)
• Lifestyle : Expressed in
activities, interests, and
opinions (AIOs).
• Values
• Wealth
Key Psychological Processes
• Motivation
• Perception
• Learning
• Memory
Motivation theories
According to Sigmund Freud behavior is guided
by subconscious motivations
According to Abraham Maslow behavior is
driven by lowest, unmet need
According Frederick Herzberg behavior is
guided by satisfiers & dissatisfiers
Maslow’s Hierarchy of
Needs

Source: Kotler,Keller-Marketing management, Pearson education,2016

What is Perception
• Perception is a process by which
individuals select, organize, and
interpret information inputs/stimuli to
create a meaningful picture of the
world
• Selective attention
• Selective distortion
• Selective retention
• Subliminal perception
Perception
Learning

•Any change in our behavior on

account of our experience
•Drive and cues
•Generalization and
discrimination
Memory

• Short-term vs.
long-term memory
• Associative
network memory
model
• Brand associations
• Memory encoding
• Memory retrieval

Source: Kotler,Keller-Marketing management, Pearson education,2016

Emotions
• Many different kinds of emotions can be linked to
brands

Source: [Link]
BCG and GE Matrix
•Learning Objectives

•To understand the concept of

BCG and GE Matrix.
 Portfolio Analysis --
■ Portfolio analysis is a systematic way to analyze the products and
services that make up an association's business portfolio.
■ Each of these is one of the association's strategic business units
(SBUs). Each business consists of a portfolio of products and
services.
❑ Resource commitment on best
products to ensure continued success

❑ Resource commitment on new costly

products high risk
• The Boston Consulting
group’s product portfolio
matrix (BCG matrix) is
designed to help with
long-term strategic
planning, to help a business
consider growth
opportunities by reviewing
its portfolio of products to
decide where to invest, to
discontinue or develop
products. It's also known as
the Growth/Share Matrix.
BCG Matrix
The BCG model is a well-known portfolio management
tool used in Product life cycle theory that was invented in the early 1970’s
by the Boston Consulting Group. The BCG model can be used to determine
what priorities should be given in the product portfolio of a business unit.
Placing products in the BCG model results in 4 categories in a portfolio of a company.

1. Stars
2. Question Marks
3. Cash Cows
4. Dogs
 -high growth, high market share
-high market share in a growing market
-generate large amounts of cash because of their
strong relative market share,
but also consume a lot of cash due to their growth
rate
-If market share is kept, Stars are likely to grow into cash
cows
-These products are in growing markets but have low market
share.

-Question marks are essentially new products where buyers have

yet to discover them.

-The marketing strategy is to get markets to adopt these

products.

- Question marks have high demands and low returns due to low
market share.

- These products need to increase their market share quickly or

they become dogs.

-- The best way to handle Question marks is to either invest

heavily in them to gain market share or to sell them.
-Cash cows are in a position of high market share in a
mature market.

- If competitive advantage has been achieved, cash

cows have high profit
margins and generate a lot of cash flow.

-Because of the low growth, promotion and placement

investments are low.

- Investments into supporting infrastructure can

improve efficiency and increase
cash flow more.

- Cash cows are the products that businesses strive

for.
-Dogs are in low growth markets and have low
market share.

-Dogs should be avoided and minimized.

- Expensive turn-around plans usually do not

help.
 BCG Matrix
Limitations:

■ Too simplistic
■ The link between market share
and profitability is questionable
■ Growth rate is only one aspect
of industry attractiveness
■ Product lines or business units
are considered in relation to the
one market leader
■ Market share is only one aspect
of overall competitive position
BCG-MATRIX FOR THE PRODUCT LINE OF

Coca-Cola
 QUESTION MARKS
(HIGH GROWTH, LOW MARKET SHARE
 STARS
(HIGH GROWTH, HIGH MARKET SHARE)
 CASH COWS
(LOW GROWTH, HIGH MARKET SHARE
 DOGS
(LOW GROWTH, LOW MARKET SHARE)
QUESTION MARKS
 STARS
Invest for growth
 CASH COWS
( MILK TO FUND OTHER BUSINESS)
DOGS
CONCLUSION
Though BCG matrix has its limitation it is one of the
most famous & simple portfolio planning matrix,
used by large companies having multi-products.
GE matrix
• The GE matrix helps a strategic
business unit evaluate its overall
strength. Each product, brand,
service, or potential product is
mapped in this industry
attractiveness/business strength
space. The GE multi factorial was
first developed by McKinsey
for General Electric in the 1970s.
GE/McKinsey Matrix
C
Winners Winners
A Question
High B Marks

Industry Attractiveness
Winners
E Average
Businesses
Medium F
Losers

H
Losers
G
Low
Profit
Producers Losers

Strong Average Weak

Business Strength/Competitive Position
 GE/McKinsey Matrix
■ Business strengths reflect market share,
technological advantage, product quality,
operating costs, and price
competitiveness.
■ Industry attractiveness reflects market
size and growth, capital requirements and
competitive intensity.
■ Both business strength and industry
attractiveness are categories as low,
medium, and high.
■ Combining the business strength and
industry attractiveness variables yields
a nine-cell matrix that identifies business
units as “winners,” “question marks,”
“average businesses,” “profit producers,”
or “losers.”
 GE/McKinsey Matrix
Limitations:

■ It can get quite complicated and

cumbersome
■ The numerical estimates of industry
attractiveness and business
strength/competitive position give the
appearance of objectivity, but they
are in reality subjective judgments
■ It cannot effectively depict the
positions or business units in
developing industries
 Portfolio
Advantages of Analysis
portfolio
analysis:

■ It encourages top management to

evaluate each of the businesses
individually and set objectives and
allocate resources for each.
■ It stimulates the use of externally
oriented data to supplement
management’s judgment.
■ It raises the issue of cash flow
availability for use in expansion and
growth.
■ Its graphic depiction facilitates
communication.
Portfolio Analysis
Limitations of portfolio
analysis:

■ It is not easy to define

product/market segments.
■ It suggests the use of standard
strategies that can miss
opportunities or be impractical.
■ It provides an illusion of scientific
rigor when in reality positions are
based on subjective judgments.
■ It is not always clear what makes an
industry attractive or where a
product is in its life cycle.
Name of the Course: Marketing
Management

Topic: Segmentation, Targeting and Positioning

1
Target marketing
⚫ Target marketing requires marketers to
take three major steps:
◦ Market segmentation: Identifying and profiling
distinct groups of buyers who differ in their needs
and preferences.
◦ Market targeting: Selecting one or more
market segments to enter.
◦ Market positioning: Establishing and
communicating the key distinctive benefit(s) of
the company’s market offering to each target.

2
Market Segmentation -Example

Three customer Segment

[Link] seekers

[Link]

[Link] recruiters
3
Market Segmentation -Example

4
Market Segmentation -Example

5
Bases for Segmentation

⚫ Geographic
⚫ Demographic
⚫ Psychographic
⚫ Behavioral

6
Geographic

⚫ Nation or country
⚫ State or region
⚫ City or metro size
⚫ Density
⚫ Climate

7
Demographic

⚫ Age, race, gender

⚫ Income, education
⚫ Family size
⚫ Family life cycle
⚫ Occupation
⚫ Religion, nationality
⚫ Generation
⚫ Social class

8
Psychographic

⚫ Lifestyle
◦ Activities
◦ Interests
◦ Opinions
⚫ Personality
⚫ Core values

9
Behavioral

⚫ Occasions
⚫ Benefits
⚫ User status
⚫ Usage rate
⚫ Loyalty status
⚫ Buyer-readiness
⚫ Attitude

10
Bases of Segmenting Business Market

⚫ Demographic
⚫ Operating Variables
⚫ Purchasing approaches
⚫ Situational Factors
⚫ Personal Characteristics

11
Business Market-Demographic
⚫ Industry: Which industries should
we serve?
⚫ Company size: What size
companies should we serve?
⚫ Location: What geographical
areas should we serve?

12
Business Market-Operating Variables
⚫ Technology: What customer
technologies should we focus on?
⚫ User or nonuser status: Should we
serve heavy users, medium users, light
users, or nonusers?
⚫ Customer capabilities: Should we
serve customers needing many or few
services?
13
Business Market-Purchasing Approaches

⚫ Purchasing-function
organization: Should we serve companies
with a highly centralized or decentralized
purchasing organization?
⚫ Power structure: Should we serve
companies that are engineering dominated,
financially dominated, and so on?
⚫ Nature of existing relationship: Should
we serve companies with which we have
strong relationships or simply go after the
14
Business Market-Purchasing Approaches
⚫ General purchasing policies: Should we serve
companies that
Prefer leasing?
Service contract?
Systems purchases?
Sealed bidding?
⚫ Purchasing criteria: Should we serve Companies
that are
⚫ Seeking quality?
⚫ Service?
⚫ Price? 15
Business Market-Situational Factors
⚫ Urgency: Should we serve companies that
need quick and sudden delivery or service?

⚫ Specific application: Should we focus on a

certain application of our product rather than
all applications?

⚫ Size or order: Should we focus on large or

small orders?
16
Business Market-Personal Characteristics

⚫ Buyer-seller similarity: Should we serve

companies whose people and values are
similar to ours?

⚫ Attitude toward risk: Should we serve

risk-taking or risk-avoiding customers?

⚫ Loyalty: Should we serve companies that

show high loyalty to their suppliers?
17
Effective Segmentation Criteria
✔ Measurable
Size, Purchasing power, Characteristics
✔ Substantial
Large and Profitable
✔ Accessible-
Effectively reached and served
✔ Differentiable
✔ Actionable

Effective Programs-Attracting -segments

18
Positioning
⚫ The act of designing a company’s
offering and image to occupy a
distinctive place in the minds of the
target market.

◦ Value proposition

19
Value Proposition
⚫ Dominos’ Pizza-Company
⚫ Convenience Minded Pizza
Lovers-Segment
⚫ A delicious hot Pizza delivered at your
door-Value Proposition

20
21
 Introduction to Marketing
management

Customer Value, Satisfaction &

Loyalty

Dr. R. Renganathan
Professor, School of Management
SASTRA Deemed University, Thanjavur – 613 401
renganathan@[Link]
Learning objectives
We will address the following
questions:
• What are customer value, satisfaction,
and loyalty?
• How can companies deliver customer
value, satisfaction, and loyalty?
• How to create long-term Loyalty
relationships with customers?
• How can companies cultivate strong
customer relationships?
• How can companies attract and retain
the right customers and cultivate
strong customer relationship?
2
Customer Value, Satisfaction &
Loyalty
How to connect with customers?
Creating Long-term Loyalty
relationships with customers

3
Services offered by HDFC to
satisfy customers
Organizational Charts-Traditional,
Modern

Source: Marketing Management,15E, Kotler, Keller, Koshy, Jha,13/e, Pearson,Dorling Kindersley (India) Pvt. Ltd.,2009

5
Customer value analysis
• Company has to identify for which major
attributes and benefits that customers give
value
• For these different attributes and benefits
evaluate the quantitative significance
• Measure the performances of the firm and
its competitors on the different customer
values against their rated importance
• Study how customers in a particular
segment rate the performance of the firm
compared to a specific main competitor on
an individual attribute or benefit basis
• Observe customer values over time

6
Customer-perceived value
(CPV)
Customer-perceived value
(CPV)
✔ "Customer perceived value is "the expected
benefit from a consumer's viewpoint of a
product or service.
✔ The customer perceived value depends on
the tangible, psychological and social
advantages of the products
✔ When customers purchase a product, they
value a product's benefit more than its
function.
✔ "Customer perceived value is the difference
between the prospective customer’s evaluation
of all the benefits and all the costs of an
offering and the perceived alternatives.
-Kotler, Keller

Total customer benefit vs. total customer cost

8
How to determine
Customer Perceived Value (CPV)?
Customer Loyalty
Customer Loyalty is a
strong commitment of
the customer to re-buy
or re-patronize a
favorite product or
service in the future in
spite of the situational
influences of the
marketing efforts to
cause switching
behavior.
-Kotler, Keller
Value proposition
• A value proposition is a promise of value to be
delivered by a company to the customers when they
buy their products
• In the company's overall marketing strategy a value
proposition is a part .

Source:[Link]
Customer satisfaction
‘A person’s feelings of
pleasure or
disappointment which
resulted from
comparing a product’s
perceived performance
(or outcome) against
his or her expectations’
-Philip Kotler
Customer satisfaction
• If the performance(P) or experience is less
than expectations (E), the customer is
dissatisfied ( P less than E).
• If performance (P) matches expectations (E),
the customer is satisfied. ( P = E).
• If performance (P) exceeds expectations, the
customer is highly satisfied or delighted.
( P greater than E).
Measuring Customer
Satisfaction
• Periodic Surveys
• Customer Loss Rate
• Mystery Shoppers
• Monitor Competitive
Performance
How to maximize Customer Lifetime
Value (CLV)
Customer lifetime value (CLV) refers to the net
present value of the stream of future profits anticipated
over the customer’s lifetime purchases.
✔Customer Profitability

✔ Customer Equity

✔ Lifetime Value
15
Customer-Product
Profitability Analysis

Source: Marketing Management,15E, Kotler, Keller, Koshy, Jha,13/e, Pearson, Dorling

Kindersley (India) Pvt. Ltd.,2009
 Estimating Lifetime Value

✔Annual customer revenue: Rs.1000

✔Average number of loyal years: 20
✔Company profit margin: 10%
✔Customer lifetime value: Rs.2000

17
Customer Relationship
Management (CRM)
‘CRM is the process of
carefully managing
detailed information
about individual
customers and all
customer touchpoints to
maximize customer
loyalty.’
-Kotler, Keller
CRM Framework

•Classify prospects and customers

•Distinguish customers by needs
and value to company
•Interact to improve knowledge
•Customize for each customer

19
How to retain Customers?
• As per the research, acquisition of
customers can cost five times more than
retaining existing customers.
• A 5% reduction to the customer defection
rate can increase profits approximately
by 25% to 85%.
• The customer profit rate increases over
the life of a retained customer

20
CRM Strategies- Attracting and
Retaining Customers
How to manage the customer
base?
•Lessen customer defection
•Boost customer longevity
•Share of wallet & cross/upselling
•Stop low-profit customers
•Focus on high-profit customers
21
The Customer Development
Process
How to build loyalty?

•Interact closely with customers

•Develop loyalty programs
•Create institutional ties

23
The Wheel of Loyalty

Source: Christopher Lovelock, Jochen Wirtz & Jayanta Chatterjee- Services Marketing and
Management 8/E, Pearson
Loyalty Bonds…
Social Bonds
Personal relationships between service
providers and customers
Customization Bonds
Customized service for loyal customers
Structural Bonds
Frequently in b2b settings like joint
investments in projects, sharing information,
processes, equipment,
 Introduction to Marketing
management
L2
Dr. R. Renganathan
Professor, School of Management
SASTRA Deemed University, Thanjavur – 613 401
renganathan@[Link]
Learning objectives

• What are the essential concepts in

marketing?
• What are the components of marketing
environment?
• How business and marketing are
changing?
• How has marketing management
changed?
Core Marketing Concepts
⚫ Marketers and Prospects
⚫ Needs, Wants, and Demands
Type of Needs
Core Marketing Concepts

⚫ Segmentation (S)
⚫ Target market (T)
⚫ Positioning (P)
(STP)

4
Core Marketing Concepts
• Offerings and Brands
⚫ Value and Satisfaction
-Customer value triad (qsp)
Value
Value=Benefit/Cost
= (Functional benefits + Emotional
benefits) / (Monetary costs + Time
costs + Energy costs + Psychic
costs)

5
Core Marketing Concepts
Relationships and Networks
• Relationship marketing
• Marketing network
Marketing Channels
COMMUNICATION
DISTRIBUTION
SERVICE

6
Core Marketing Concepts
• Paid media: TV, magazine and
display ads, paid search, and
sponsorships
• Owned media: a company or brand
brochure, web site, blog, Facebook
page, or twitter account
• Earned media: word of mouth, buzz,
or viral marketing

7
Core Marketing Concepts

Supply Chain
Competition
-Brand competition
-Industry competition
-Form competition
-Generic competition

8
Core Marketing Concepts
▪ Impressions: occur when
consumers view a
communication
▪ Engagement: the extent of a
customer’s attention and active
involvement with a
communication

9
Marketing Environment
▪ Task environment
-Company, suppliers, distributors, dealers,
and the target customers.
▪ Broad environment
• Demographic , economic, natural,
technological , political-legal , and
social-cultural environment.

10
Marketing mix elements-Four Ps

Source: Kotler, Keller Marketing Management,15E, Pearson

11
Marketing mix
element-4Ps and 4Cs
4Ps 4Cs

Product Customer value

Price Cost
Place Convenience
Promotion Communication

12
Company orientations
toward The Marketplace
• The Production Concept
• The Product Concept
• The Selling Concept
• The Marketing Concept
• The Societal Marketing Concept
• The Holistic Marketing Concept

13
Holistic approach
Four components of the Holistic approach
❖ Relationship marketing
❖ Integrated marketing
❖ Internal marketing and
❖ Social responsibility marketing.
The following configuration provides the
schematic overview of four broad themes
that characterise holistic marketing.`

14
Holistic Marketing

Source: Marketing Management,15E, Kotler, Keller

15
How business and marketing are
changing?
• Reengineering
• Outsourcing
• E-commerce
• Benchmarking
• Alliances
• Partner–suppliers
• Market-centered
• Global and local
• Decentralized
16
The New Marketing Realities

• Technology
• Globalization
• Social responsibility

17
Changed marketplace
• New consumer capabilities
• New company capabilities
• Changing channels
-Retail transformation
-Disintermediation

18
Changed marketplace
• Heightened competition

– Private brands

– Mega-brands

– Deregulation

– Privatization

19
Marketing in practice
• Marketing balance

• Marketing accountability

• Marketing in the organization

20
Introduction to Marketing
management
L1
Dr. R. Renganathan
Professor, School of Management
SASTRA Deemed University, Thanjavur – 613 401
renganathan@[Link]
Learning objectives

• What is the scope of marketing?

• What is the relevance of marketing?
• What are the states of demand and
marketing tasks?
• How does selling differ from marketing?
What is Marketing?
❖ Marketing is about identifying
and meeting human and social
needs
❖ “Meeting needs profitably.”
Marketing is a societal process by which
individuals and groups obtain what they
need and want through creating,
offering, and exchanging products and
services of value freely with others.
Social definition
Managerial definition
• Marketing has often been described as “the
art of selling products.”
• Marketing (management) is the process of
planning and executing the conception,
pricing, promotion, and distribution of
ideas, goods, and services to create
exchanges that satisfy individual and
organizational goals
-American Marketing Association
What is Marketing
management?
“Marketing management is the art and
science of choosing target markets and
getting, keeping, and growing
customers through creating, delivering,
and communicating superior customer
value”.
Philip Kotler

5
Selling
▪ But Peter Drucker, a leading management
theorist, says that “the aim of marketing is
to make selling superfluous”.
▪ The aim of marketing is to know and
understand the customer so well that the
product or service fits him and sells itself.
▪ Ideally, marketing should result in a
customer who is ready to buy.”
MARKETS
• Traditionally, a “market” was a physical
place where buyers and sellers gathered
to buy and sell goods.
• Economists describe a market as a
collection of buyers and sellers who
transact over a particular product or
product class (such as the housing
market or the grain market).
• Five basic markets and their connecting
flows are shown in Figure 1.1.

7
Fig 1.1 Structure of Flows in a
Modern exchange economy

Source: Marketing Management,14E, Kotler, Keller

8
Fig 1.2 A Simple Marketing
System

Source: Marketing Management,14E, Kotler, Keller

9
What is Marketed?
Ten main types of entities
❖ Goods,
❖ Services,
❖ Events,
❖ Experiences,
❖ Persons,
❖ Places,
❖ Properties,
❖ Organizations,
❖ Information, and ideas.
10
The Importance of Marketing
✔ Marketing ability can ensure the financial
success of a firm.
✔ Demand for products and services can be
achieved through successful marketing ,
which generates opportunities for jobs.
✔ Firms can very much involve in socially
responsible activities through resources
provided by marketing.
✔ Strong brands and a loyal customer base
are the intangible assets of a firm which
are built by the effort of marketing

11
 Demand States and
Marketing Tasks
Negative
Nonexistent
Latent
Declining
Irregular
Unwholesome
Full
Overfull

12
Key Customer Markets
• Consumer Markets
• Business Markets
• Global Markets
• Nonprofit and Governmental Markets

13
Place, Space, Meta market
• Market place
• Marketspace
• Metamarket

14
Exchange & Transactions
Exchange
For exchange potential to exist, five conditions
must be satisfied:
[Link] are at least two parties.
[Link] party has something that might be of
value to the other party.
[Link] party is capable of communication and
delivery.
4. Each party is free to accept or reject the
exchange offer.
5. Each party believes it is appropriate or
desirable to deal with the other party.
15
Transaction
• A transaction involves at least two
things of value, agreed-upon conditions,
a time of agreement, and a place of
agreement.
• Usually a legal system exists to support
and enforce compliance among
transactors.
• However, transactions do not require
money as one of the traded values.
Example –Barter transaction
16
Functions of Marketing
• Market research
• Financing
• Product/Service Management
• Pricing
• Promotion
• Distribution
• Selling

17
Marketing process
• Market Opportunities analysis
• Selection of target market
• Marketing mix development
• Marketing efforts management

18
Marketing & Selling
Marketing Selling
Includes selling and other activities like Confined to persuasion of consumers
various promotional measures, marketing to buy firm’s goods and services
research, after sales service, etc.

Planning is long-term oriented in terms Planning is short-term oriented, in

of new products, future market and terms of existing products and
growth markets
Concerned with customer satisfaction Concerned with maximization of
sales & profit
Adding value to customers by adopting To reduce cost, confines with
new & relevant technology existing technology
Customers are starting point of business Customers as the last link in the
business
Emphasizes given to Customer Emphasizes given to sales
Examples: Automobiles, Mobile phones, Examples: Insurance, Door to door
Domestic appliances, Airlines… sales..
19
 Introduction to Marketing
management
L2
Dr. R. Renganathan
Professor, School of Management
SASTRA Deemed University, Thanjavur – 613 401
renganathan@[Link]
Learning objectives

• What are the essential concepts in

marketing?
• What are the components of marketing
environment?
• How business and marketing are
changing?
• How has marketing management
changed?
Core Marketing Concepts
⚫ Marketers and Prospects
⚫ Needs, Wants, and Demands
Type of Needs
Core Marketing Concepts

⚫ Segmentation (S)
⚫ Target market (T)
⚫ Positioning (P)
(STP)

23
Core Marketing Concepts
• Offerings and Brands
⚫ Value and Satisfaction
-Customer value triad (qsp)
Value
Value=Benefit/Cost
= (Functional benefits + Emotional
benefits) / (Monetary costs + Time
costs + Energy costs + Psychic
costs)

24
Core Marketing Concepts
Relationships and Networks
• Relationship marketing
• Marketing network
Marketing Channels
COMMUNICATION
DISTRIBUTION
SERVICE

25
Core Marketing Concepts
• Paid media: TV, magazine and
display ads, paid search, and
sponsorships
• Owned media: a company or brand
brochure, web site, blog, Facebook
page, or twitter account
• Earned media: word of mouth, buzz,
or viral marketing

26
Core Marketing Concepts

Supply Chain
Competition
-Brand competition
-Industry competition
-Form competition
-Generic competition

27
Core Marketing Concepts
▪ Impressions: occur when
consumers view a
communication
▪ Engagement: the extent of a
customer’s attention and active
involvement with a
communication

28
Marketing Environment
▪ Task environment
-Company, suppliers, distributors, dealers,
and the target customers.
▪ Broad environment
• Demographic , economic, natural,
technological , political-legal , and
social-cultural environment.

29
Marketing mix elements-Four Ps

Source: Kotler, Keller Marketing Management,15E, Pearson

30
Marketing mix
element-4Ps and 4Cs
4Ps 4Cs

Product Customer value

Price Cost
Place Convenience
Promotion Communication

31
Company orientations
toward The Marketplace
• The Production Concept
• The Product Concept
• The Selling Concept
• The Marketing Concept
• The Societal Marketing Concept
• The Holistic Marketing Concept

32
Holistic approach
Four components of the Holistic approach
❖ Relationship marketing
❖ Integrated marketing
❖ Internal marketing and
❖ Social responsibility marketing.
The following configuration provides the
schematic overview of four broad themes
that characterise holistic marketing.`

33
Holistic Marketing

Source: Marketing Management,15E, Kotler, Keller

34
How business and marketing are
changing?
• Reengineering
• Outsourcing
• E-commerce
• Benchmarking
• Alliances
• Partner–suppliers
• Market-centered
• Global and local
• Decentralized
35
The New Marketing Realities

• Technology
• Globalization
• Social responsibility

36
Changed marketplace
• New consumer capabilities
• New company capabilities
• Changing channels
-Retail transformation
-Disintermediation

37
Changed marketplace
• Heightened competition

– Private brands

– Mega-brands

– Deregulation

– Privatization

38
Marketing in practice
• Marketing balance

• Marketing accountability

• Marketing in the organization

39
 Introduction to Marketing
management

Marketing Environment

Dr. R. Renganathan
Professor, School of Management
SASTRA Deemed University, Thanjavur – 613 401
renganathan@[Link]
Objectives
You should be able to :
1. Understand the environmental forces that affect the
company’s capability to serve its customers
2. Explain how changes in the demographic and
economic environments affect marketing decisions
3. Classify the major trends in the firm’s natural and
technological environments
4. Describe the key changes in the political and cultural
environments
5. Know how companies can react to the marketing
environment

41
The Marketing Environment
The marketing environment contains
the players and forces which are outside
to the marketing that affect marketing
management’s capability to build and
maintain successful relationships with
customers.

Source: Principles of Marketing,3E, Kotler, Keller,Ang,Leong, Tan,,Hon-Ming

42
Marketing Environment
✔ The Company’s
Microenvironment
✔ The Company’s
Macroenvironemnt
✔ Responding to the
Marketing
Environment
Marketing Environment
▪ Task environment (Micro environment)
-Company, suppliers, distributors, dealers,
and the target customers.
▪ Broad environment(Macro environment)
• Demographic , economic, natural,
technological , political-legal , and
social-cultural environment.
-PESTEL

44
 Microenvironment
The microenvironment entails the players close to the
company that affect the company, suppliers, marketing
intermediaries, customer markets, competitors, and
publics.
The macroenvironment
The macroenvironment consists of the larger forces that
affect the company
Microenvironment
Company Suppliers
Internal environment • Offer the required
includes:
resources like raw
• Top management materials to produce
• Finance goods and services
• Accounting • To provide customer
value, firms have to
• Purchasing build rapport with
• Operations suppliers & treat them
as partners

47
Microenvironment
• Marketing Intermediaries
Resellers: Wholesalers; Retailers
Physical distribution firms:
Facilitate the firm to store and
transport the goods from their points
of origin to their final destination
(consumption)
• Customers : Customer markets
(B2C); Business markets (B2B);
Government markets
• Competitors

48
Microenvironment
Publics:
Groups which have an actual or potential
interest in or impact on an firm’s capability
to attain its objectives:
• Financial publics
• Media publics
• Government publics
• Citizen-action publics
• Local publics
• General public
• Internal publics
Source: Principles of Marketing,3E, Kotler, Keller,Ang,Leong, Tan,,Hon-Ming

49
The Company’s
Macroenvironment
• Demographic environment
• Economic environment
• Natural environment
• Technological environment
• Political environment
• Cultural environment
Macroenvironment
Demographic Environment

• Study about human populations in terms of

size, density, location, age, gender, race,
occupation is known as Demography.
• Demographic environment deals with
people, and people make up markets, hence
it is very significant.
• When we consider the trend it entails age,
family structure, geographic population
shifts, educational characteristics, and
population diversity.
Demographic Environment

Source: [Link]
Macroenvironment
Economic Environment
Factors that affect consumer purchasing
power and spending patterns are the major
aspects of Economic environment.
• Consumption of majority of their
own agriculture and industrial output
is known as Subsistence economies .
• Industrial economies are richer
markets.
-Changes in Income
Marketers provide value to the price
sensitive customers with quality
product at a fair price
Macroenvironment
• Income distribution
• Upper-class
• Middle-class
• Lower /Working-class
Changes in the consuer buying
behaviour - Spending
pattern
Macroenvironment
Natural Environment

• Natural environment comprises

marketing activities which are
affected by the inputs that are
obtained from natural resources
• Trends in Natural
environment
• Raw materials shortages
• Pollution
• Government intervention
• Environmentally
sustainable strategies
• Green marketing
Source: Principles of Marketing,3E, Kotler,
Keller,Ang,Leong, Tan,,Hon-Ming
The Company’s Macroenvironment
Technological Environment
• Digital revolution and other main
changes in the business
environment and marketplace
• Fast change
• Paves the way for new markets
and new opportunities
• Internet
• Healthcare
• Compactness
• Weapons
• Debit, Credit cards
• Communication
Source: Principles of Marketing,3E, Kotler, Keller,Ang,Leong,
Tan,,Hon-Ming
The Company’s
Macroenvironment
Political Environment

Political environment
entails many
organizations and
individuals in a
particular society
influenced or limited
by laws, government
agencies, and pressure
groups .
The Company’s Macroenvironment
Political Environment

• Business legislation regulating public

policy to guide commerce—
For the welfare of the society at large
business regulated by sets of laws and
regulations
• Legislation to:
• safeguard companies; consumers
and interests of society

3-58
The Company’s Macroenvironment
Political Environment

Importance given to Ethics and Corporate Social

responsibility
Firms safeguard the long-term interests of their
consumers and the environment is Socially
responsible behavior
• A type of Corporate Social Responsibility
(CSR) is Cause-related marketing

Source: Principles of Marketing,3E, Kotler, Keller,Ang,Leong, Tan,,Hon-Ming

3-59
Cultural Environment

Cultural Environment

The cultural environment

comprises of institutions and
other forces that affect basic
values, perceptions, and
behaviors of a society .
Core beliefs and values
Secondary beliefs and values
• Based on how people
view about ‘themselves;
others ;organization;
society; nature and the
universe’ accordingly a
society’s cultural values
are articulated
How to respond to the dynamic
Marketing Environment?
Opinions on reacting
• Uncontrollable factors
• Marketers can react and adapt to the
forces in the environment either
proactively or reactively or both
• Proactive
• To control the forces in the environment
marketers can take strong actions
• Reactive
• Marketers can watch and react to forces
in the environment
Source: Principles of Marketing,3E, Kotler, Keller,Ang,Leong, Tan,,Hon-Ming
 Introduction to Marketing
management

Customer Value, Satisfaction &

Loyalty

Dr. R. Renganathan
Professor, School of Management
SASTRA Deemed University, Thanjavur – 613 401
renganathan@[Link]
Learning objectives
We will address the following
questions:
• What are customer value, satisfaction,
and loyalty?
• How can companies deliver customer
value, satisfaction, and loyalty?
• How to create long-term Loyalty
relationships with customers?
• How can companies cultivate strong
customer relationships?
• How can companies attract and retain
the right customers and cultivate
strong customer relationship?
63
Customer Value, Satisfaction &
Loyalty
How to connect with customers?
Creating Long-term Loyalty
relationships with customers

64
Services offered by HDFC to
satisfy customers
Organizational Charts-Traditional,
Modern

Source: Marketing Management,15E, Kotler, Keller, Koshy, Jha,13/e, Pearson,Dorling Kindersley (India) Pvt. Ltd.,2009

66
Customer value analysis
• Company has to identify for which major
attributes and benefits that customers give
value
• For these different attributes and benefits
evaluate the quantitative significance
• Measure the performances of the firm and
its competitors on the different customer
values against their rated importance
• Study how customers in a particular
segment rate the performance of the firm
compared to a specific main competitor on
an individual attribute or benefit basis
• Observe customer values over time

67
Customer-perceived value
(CPV)
Customer-perceived value
(CPV)
✔ "Customer perceived value is "the expected
benefit from a consumer's viewpoint of a
product or service.
✔ The customer perceived value depends on
the tangible, psychological and social
advantages of the products
✔ When customers purchase a product, they
value a product's benefit more than its
function.
✔ "Customer perceived value is the difference
between the prospective customer’s evaluation
of all the benefits and all the costs of an
offering and the perceived alternatives.
-Kotler, Keller

Total customer benefit vs. total customer cost

69
How to determine
Customer Perceived Value (CPV)?
Customer Loyalty
Customer Loyalty is a
strong commitment of
the customer to re-buy
or re-patronize a
favorite product or
service in the future in
spite of the situational
influences of the
marketing efforts to
cause switching
behavior.
-Kotler, Keller
Value proposition
• A value proposition is a promise of value to be
delivered by a company to the customers when they
buy their products
• In the company's overall marketing strategy a value
proposition is a part .

Source:[Link]
Customer satisfaction
‘A person’s feelings of
pleasure or
disappointment which
resulted from
comparing a product’s
perceived performance
(or outcome) against
his or her expectations’
-Philip Kotler
Customer satisfaction
• If the performance(P) or experience is less
than expectations (E), the customer is
dissatisfied ( P less than E).
• If performance (P) matches expectations (E),
the customer is satisfied. ( P = E).
• If performance (P) exceeds expectations, the
customer is highly satisfied or delighted.
( P greater than E).
Measuring Customer
Satisfaction
• Periodic Surveys
• Customer Loss Rate
• Mystery Shoppers
• Monitor Competitive
Performance
How to maximize Customer Lifetime
Value (CLV)
Customer lifetime value (CLV) refers to the net
present value of the stream of future profits anticipated
over the customer’s lifetime purchases.
✔Customer Profitability

✔ Customer Equity

✔ Lifetime Value
76
Customer-Product
Profitability Analysis

Source: Marketing Management,15E, Kotler, Keller, Koshy, Jha,13/e, Pearson, Dorling

Kindersley (India) Pvt. Ltd.,2009
 Estimating Lifetime Value

✔Annual customer revenue: Rs.1000

✔Average number of loyal years: 20
✔Company profit margin: 10%
✔Customer lifetime value: Rs.2000

78
Customer Relationship
Management (CRM)
‘CRM is the process of
carefully managing
detailed information
about individual
customers and all
customer touchpoints to
maximize customer
loyalty.’
-Kotler, Keller
CRM Framework

•Classify prospects and customers

•Distinguish customers by needs
and value to company
•Interact to improve knowledge
•Customize for each customer

80
How to retain Customers?
• As per the research, acquisition of
customers can cost five times more than
retaining existing customers.
• A 5% reduction to the customer defection
rate can increase profits approximately
by 25% to 85%.
• The customer profit rate increases over
the life of a retained customer

81
CRM Strategies- Attracting and
Retaining Customers
How to manage the customer
base?
•Lessen customer defection
•Boost customer longevity
•Share of wallet & cross/upselling
•Stop low-profit customers
•Focus on high-profit customers
82
The Customer Development
Process
How to build loyalty?

•Interact closely with customers

•Develop loyalty programs
•Create institutional ties

84
The Wheel of Loyalty

Source: Christopher Lovelock, Jochen Wirtz & Jayanta Chatterjee- Services Marketing and
Management 8/E, Pearson
Loyalty Bonds…
Social Bonds
Personal relationships between service
providers and customers
Customization Bonds
Customized service for loyal customers
Structural Bonds
Frequently in b2b settings like joint
investments in projects, sharing information,
processes, equipment,
 Introduction to Marketing
management

Customer Value, Satisfaction &

Loyalty

Dr. R. Renganathan
Professor, School of Management
SASTRA Deemed University, Thanjavur – 613 401
renganathan@[Link]
Learning objectives
We will address the following
questions:
• What are customer value, satisfaction,
and loyalty?
• How can companies deliver customer
value, satisfaction, and loyalty?
• How to create long-term Loyalty
relationships with customers?
• How can companies cultivate strong
customer relationships?
• How can companies attract and retain
the right customers and cultivate
strong customer relationship?
88
Customer Value, Satisfaction &
Loyalty
How to connect with customers?
Creating Long-term Loyalty
relationships with customers

89
Services offered by HDFC to
satisfy customers
Organizational Charts-Traditional,
Modern

Source: Marketing Management,15E, Kotler, Keller, Koshy, Jha,13/e, Pearson,Dorling Kindersley (India) Pvt. Ltd.,2009

91
Customer value analysis
• Company has to identify for which major
attributes and benefits that customers give
value
• For these different attributes and benefits
evaluate the quantitative significance
• Measure the performances of the firm and
its competitors on the different customer
values against their rated importance
• Study how customers in a particular
segment rate the performance of the firm
compared to a specific main competitor on
an individual attribute or benefit basis
• Observe customer values over time

92
Customer-perceived value
(CPV)
Customer-perceived value
(CPV)
✔ "Customer perceived value is "the expected
benefit from a consumer's viewpoint of a
product or service.
✔ The customer perceived value depends on
the tangible, psychological and social
advantages of the products
✔ When customers purchase a product, they
value a product's benefit more than its
function.
✔ "Customer perceived value is the difference
between the prospective customer’s evaluation
of all the benefits and all the costs of an
offering and the perceived alternatives.
-Kotler, Keller

Total customer benefit vs. total customer cost

94
How to determine
Customer Perceived Value (CPV)?
Customer Loyalty
Customer Loyalty is a
strong commitment of
the customer to re-buy
or re-patronize a
favorite product or
service in the future in
spite of the situational
influences of the
marketing efforts to
cause switching
behavior.
-Kotler, Keller
Value proposition
• A value proposition is a promise of value to be
delivered by a company to the customers when they
buy their products
• In the company's overall marketing strategy a value
proposition is a part .

Source:[Link]
Customer satisfaction
‘A person’s feelings of
pleasure or
disappointment which
resulted from
comparing a product’s
perceived performance
(or outcome) against
his or her expectations’
-Philip Kotler
Customer satisfaction
• If the performance(P) or experience is less
than expectations (E), the customer is
dissatisfied ( P less than E).
• If performance (P) matches expectations (E),
the customer is satisfied. ( P = E).
• If performance (P) exceeds expectations, the
customer is highly satisfied or delighted.
( P greater than E).
Measuring Customer
Satisfaction
• Periodic Surveys
• Customer Loss Rate
• Mystery Shoppers
• Monitor Competitive
Performance
How to maximize Customer Lifetime
Value (CLV)
Customer lifetime value (CLV) refers to the net
present value of the stream of future profits anticipated
over the customer’s lifetime purchases.
✔Customer Profitability

✔ Customer Equity

✔ Lifetime Value
101
Customer-Product
Profitability Analysis

Source: Marketing Management,15E, Kotler, Keller, Koshy, Jha,13/e, Pearson, Dorling

Kindersley (India) Pvt. Ltd.,2009
 Estimating Lifetime Value

✔Annual customer revenue: Rs.1000

✔Average number of loyal years: 20
✔Company profit margin: 10%
✔Customer lifetime value: Rs.2000

103
Customer Relationship
Management (CRM)
‘CRM is the process of
carefully managing
detailed information
about individual
customers and all
customer touchpoints to
maximize customer
loyalty.’
-Kotler, Keller
CRM Framework

•Classify prospects and customers

•Distinguish customers by needs
and value to company
•Interact to improve knowledge
•Customize for each customer

105
How to retain Customers?
• As per the research, acquisition of
customers can cost five times more than
retaining existing customers.
• A 5% reduction to the customer defection
rate can increase profits approximately
by 25% to 85%.
• The customer profit rate increases over
the life of a retained customer

106
CRM Strategies- Attracting and
Retaining Customers
How to manage the customer
base?
•Lessen customer defection
•Boost customer longevity
•Share of wallet & cross/upselling
•Stop low-profit customers
•Focus on high-profit customers
107
The Customer Development
Process
How to build loyalty?

•Interact closely with customers

•Develop loyalty programs
•Create institutional ties

109
The Wheel of Loyalty

Source: Christopher Lovelock, Jochen Wirtz & Jayanta Chatterjee- Services Marketing and
Management 8/E, Pearson
Loyalty Bonds…
Social Bonds
Personal relationships between service
providers and customers
Customization Bonds
Customized service for loyal customers
Structural Bonds
Frequently in b2b settings like joint
investments in projects, sharing information,
processes, equipment,