Unit - 1

Marketing Management

Market - A market is a place where parties can gather to facilitate the exchange of goods and services.
The parties involved are usually buyers and sellers.

Marketing - Marketing consists of the performance of business activities that direct the flow of
goods and services from producer to consumer or user.

Management - Management is the process of planning, organizing, directing, staffing and controlling the
use of. resources to accomplish the performance goals.

The term “Marketing “is derived from “Market”, which can be defined as –
“a place where buyers and sellers gather to buy and sell the products”. But
Marketing is not only about selling; because in order to sell the product we
must know the needs (basic requirements) of the customers.
Marketing management means management of the marketing function. In other words,
marketing management refers to planning, organising, directing and control of the activities
which facilitate exchange of goods and services between producers and consumers or users
of products and services.

 "Marketing is the performance of business activities that direct the flow of goods and
services from producer to consumer or user."

 According to Philip Kotler, the term ‘marketing’ is a social and managerial process by
which individual groups obtain what they need and want through creating, offering
and freely exchanging product and services of value with others.

Meaning of Some Important Terms

 Needs: It refers to an individual's basic requirement, i.e., those items which are
necessary and fundamental for existence.
 Wants: It refers to the desire for a particular product. It tends to be ‘satisfier specific’.
 Demands: It refers to the number of customers who are willing and able to buy
products at various prices during a given period. Demand for any commodity implies
the consumer’s desire to purchase the goods, the willingness and the ability to pay.
 Utility: It refers to the satisfying power of a product.
 Nature of Marketing
1. Human activity: Originally, the term marketing is a human activity under which human
needs are satisfied by human efforts. It’s a human action for human satisfaction.
2. Consumer-oriented: A business exist to satisfy human needs, hence business must find out
what the desire of customer (or consumer) and thereby produce goods & services as per the
needs of the customer. Thus, only those goods should be produce that satisfy consumer
needs and at a reasonable profit to the manufacturer (or producer).
3. Art as well as science: In the technological arena, marketing is the art and science of
choosing target markets and satisfying customers through creating, delivering, and
communicating superior customer value. It is a technique of making the goods available at
right time, right place, into right hands, right quality, in the right form and at right price.
4. Exchange Process: By exchange we mean transfer of something for one party to another.
Every stage of marketing is an exchange and therefore we can rightly say that marketing
is an exchange process. It also involves exchange of technology, exchange of information
and exchange of ideas.
5. Starts and ends with customers: Marketing is consumer oriented and it is crucial to know
what the actual demand of consumer is. This is possible only when required information
related to the goods and services is collected from the customer.
6. Creation of Utilities: Marketing creates four components of utilities viz. time, place,
possession and form. The form utility refers to the product or service a company offers to
their customers. The place utility refers to the availability of a product or service in a
location i.e. Easier for customers. By time utility, a company can ensure that products and
services are available when customers need them.
7. Goal oriented: Marketing seeks to achieve benefits for both buyers and sellers by satisfying
human needs. The ultimate goal of marketing is to generate profits through the satisfaction
of the customer.
8. Guiding element of business: Modern Marketing is the heart of industrial activity that tells
what, when, how to produce. It is capable of guiding and controlling business.
9. System of Interacting Business Activities: Marketing is the system through which a business
enterprise, institution or organization interacts with the customers with the objective to
earn profit, satisfy customers and manage relationship. It is the performance of business
activities that direct the flow of goods and services from producer to consumer or user.
10.Marketing is a dynamic processe. Marketing is a complex, continuous and interrelated
process. It involves continuous planning, implementation and control.
 Or
What is the nature of marketing?

 Managerial Function: Marketing is all about successfully managing the

product, place, price, and promotion of a business to generate revenue.

 Human Activity: It satisfies the never-ending needs and desires of human

beings.

 Economic Function: The crucial second marketing objective is to earn a

profit.

 Both Art and Science: Creating demand for the product among consumers is
an art and understanding human behavior, and psychology is a science.

 Customer-Centric: Marketing strategies are framed with the motive of

customer acquisition.

 Consumer-Oriented: It practices market research and surveys to know about

consumers’ tastes and expectations.

 Goal-Oriented: It aims at accomplishing the seller’s profitability goals and the

buyer’s purchasing goals.

 Interactive Activity: Marketing is all about exchanging ideas and information

among buyers and sellers.

 Dynamic Process: Marketing practice keeps on changing from time to time

to improve its effectiveness.

 Creates Utility: It establishes utility to the consumer through four different

means; form (kind of product or service), time (whenever needed), place
(availability), and possession (ownership).
Scope of Marketing

1. Study of Consumer Wants and Needs

Goods are produced to satisfy consumer wants. Therefore the study is done to identify
consumer needs and wants. These needs and wants motivate the consumer to purchase.

2. Study of Consumer Behaviour

Marketers perform a study of consumer behavior. Analysis of buyer behavior helps

marketers in market segmentation and targeting.

3. Production Planning and Development

Product planning and development starts with the generation of product ideas and ends
with product development and commercialization. Product planning includes everything
from branding and packaging to product line expansion and contraction.

4. Pricing Policies

The marketer has to determine pricing policies for their products. Pricing policies differ from
product to product. It depends on the level of competition, product life cycle, marketing
goals, and objectives, etc.

5. Distribution

The study of distribution channels is important in marketing. For maximum sales and profit,
goods are required to be distributed to the maximum consumers at minimum cost.

6. Promotion

Promotion includes personal selling, sales promotion, and advertising. The right promotion
mix is crucial in the accomplishment of marketing goals.

7. Consumer Satisfaction

The product or service offered must satisfy the consumer. Consumer satisfaction is the
major objective of marketing.

8. Marketing Control

The marketing audit is done to control the marketing activities.

 Objectives of Marketing

Following are the illustration of different aims of marketing practices:

 Customer Satisfaction: The primary motive of a company is to satisfy the

needs of customers.

 Ensure Profitability: Every business is run for profit, and so goes for
marketing.

 Building Organizational Goodwill: It portrays the product and the company’s

positive image in front of the customers.

 Create Demand: It works for generating the demand for products and services
among the customers.

 Increase Sales Volume: It is a rigorous process of increasing the sale of

products or services to generate revenue.

 Enhance Product Quality: Marketing initiates customer feedback and reviews

to implement them for product enhancement.

 Create Time and Place Utility: It makes sure that the product or service is
available to the consumer whenever and wherever they need it.

Importance of Marketing

1. Marketing Promotes Product Awareness to the Customers

All forms of marketing promote product awareness to the market at large. Offline and
online marketing makes it possible for people to be educated about the various products
and services that they can take advantage of

2. Marketing Helps Boost Product Sales

Apart from public awareness about a company’s products and services, marketing helps
boost sales and revenue growth. Whatever your business is selling, the more people hear
and see more of your advertisements, the more they will be interested to buy.
3. Marketing Improves Standard of Living
Marketing promotes large scale production and sales which bring down the cost of
production and increases the amount of profit.

4. Marketing Connects the Producers and Consumers

The producers produce goods and services for the purpose of selling. Therefore, the
producers should be in touch with the consumers who require such goods and services. In
the absence of a marketing process, it would have been extremely difficult for producers
to find out what customers want.

5. Marketing Provides Employment Opportunities

Marketing results in large scale production which in turn creates good number of
employment in the production process. Thousands of people are employed to manage
the retail and wholesale establishments.

6. Marketing Helps to Provide Economic Stability

A good marketing system enables maintaining the price level stable by matching the
demand and supply at various places and different period. This is possible by creating
time and place utility.

7. Marketing Helps to Utilize our Natural Resources

It is marketing which collects the needs, wants, desires, preferences etc. of domestic
consumers and international consumers and analyzes the information to produce goods
and services for better satisfaction of consumers. In the process of producing various
goods, they are utilizing the national resources up to the optimum level.

Marketing Orientations

Market orientation is an advertising approach in which a business creates new products

based on an analysis of consumer needs. Market Orientation focuses on the customer in
order to identify, design, develop and supply products that needs their needs and wants.

1. Product orientation

A business that focuses on product orientation centers itself around the quality of its
products or services. It might prioritize customer satisfaction by developing new products to
meet evolving needs or compete with similar products on the market.
2. Production orientation

Production-oriented businesses can typically offer lower product prices by focusing on mass
production. The lower prices may attract more customers as long as the product quality
remains competitive with similar products.

3. Societal orientation

The societal orientation approach focuses heavily on the business's impact on the world.
These businesses create products and services that benefit the environment, particular
groups of people or the community in which they operate. A societal orientation can help
the business's image by embracing social responsibility and supporting social causes that
resonate with its customers.

4. Sales orientation

A sales orientation approach focuses on selling products to the customer. While sales
orientation focuses somewhat on customer needs, the business's top priority is making sales
and moving inventory. This approach helps the business improve profit margins and appeal
to the target audience, though some customers might see this approach as uncaring or
negative.

5. Market Orientation

The marketing concept plays a significant role in the growth and development of the
company. Market-oriented businesses focus on analyzing the target audience to determine
their needs and design a product to fit those needs.
Core Concept of Marketing
As Dr Kotler defines; Marketing Management is a social and managerial process by which
individuals or firms obtain what they need or want through creating, offering, exchanging
products of value with each other.

1. Needs: Needs are the basic requirements which human beings require for existence.
These mainly consist of air, water, food, clothing and shelter. Along with these needs, some
other needs which are required to be satisfied are education, medical care, entertainment,
and recreation. It is a difficult task for a marketer to identify the needs of the customers
since costumers may not be conscious of their needs, and even if they are, then they might
be unable to put forth their needs clearly.

2. Want: Desire for specific satisfier of need. eg.- Indians needs food – wants paneer tikka/
tandoori chicken. Americans need food- wants hamburger/ French fries.

3. Demand: A demand is generated when a customer is willing to buy a particular product

and has an ability to pay for it. A company should study not only how many people want
their product but also how many would actually afford to buy the product. E.g. Many people
would be desirous to buy Ferrari car; however, there is only a small segment which can
afford to buy it which reflects the demand for Ferrari car in the market.

Demand = Willingness to pay + Ability to pay

4. Exchange: Marketing occurs when individuals decide to satisfy needs and wants through
exchange. Marketing helps to create a business environment where exchange of value can
take place.

5. Customer and Consumer: Customers and consumers are used interchangeably to define
the same individual but there is a difference. The path of the product, after it is purchased,
differentiates the customer from a consumer.

6. PRODUCTS- GOODS/ SERVICES

Product is anything that can satisfy need/ want. Product component-

1. Physical Good.
2. Service.
What Are the Four Ps of Marketing?
The 4 Ps of Marketing

Marketing is the activity, set of institutions, or processes for creating, communicating, delivering, and
exchanging offerings that have value for customers, clients, partners, and society at large. The four Ps of
marketing is a marketing concept that summarizes the four key factors of any marketing strategy. The four
Ps are: product, price, place, and promotion.

Product

The product is what your company sells.A product is defined as a bundle of attributes (features, functions,
benefits, and uses) capable of exchange or use, usually a mix of tangible and intangible forms.

A product may be an idea, a physical entity (goods), or a service, or any combination of the three. It exists
for the purpose of exchange in the satisfaction of individual and organizational objectives.

Price

Price is the amount of money you charge customers for the previously determined product or service. Price
is the formal ratio that indicates the quantity of money, goods, or services needed to acquire a given
quantity of goods or services.

It is the amount a customer must pay to acquire a product.

Place (or Distribution)

The third P of marketing is place. This is the place where you should sell your product and how it should be
delivered to the market. Distribution refers to the act of carrying products to consumers. It is also used to
describe the extent of market coverage for a given product.

In the 4 Ps, distribution is represented by place or placement.

Promotion

Promotion includes all of the advertising and public relations that make up your promotional strategy for
your product. Promotion includes tactics that encourage short-term purchase, influence trial and quantity
of purchase, and are very measurable in volume, share and profit.

Examples include coupons, sweepstakes, rebates, premiums, special packaging, cause-related marketing
and licensing.

People

It refers to the people– both your customers & employees – who are directly related to the product or
service.

Process

Systems and processes play an important role in building and delivering a quality service to your customer.

Make sure that you process is free of bottlenecks and blockers in order to reduce the unnecessary expenses
associated with executing the service.

Physical Evidence

Physical evidence refers to what the customers see when consuming your product or service. This could
include your branding, packaging, the physical environment where you are selling your product etc

Importance of Marketing Mix

There are several benefits of the marketing mix that makes it important to businesses;

1. Helps understand what your product or service can offer to your customers
2. Helps plan a successful product offering
3. Helps with planning, developing and executing effective marketing strategies
4. Helps businesses make use of their strengths and avoid unnecessary costs
5. Helps be proactive in the face of risks
6. Help determine whether your product or service is suitable for your customers
7. Helps identify and understand the requirements of customers
8. Helps learn when and how to promote your product or service to your customers.
Concept of Customer Value

Customer value is best defined as how much a product or service is worth to a customer. It's a measure
of all the costs and benefits associated with a product or service. Examples include price, quality, and
what the product or service can do for that particular person.
Customer value is the difference between what a customer pays for a product or service and the benefits
s/he receives from it.
Customer value is the difference between total customer value and total customer cost. Total customer value is
the sum of product value, service value, personnel value, and image value. Total customer cost is the sum of
monetary cost, time cost, physics cost, and energy cost

Types of Customer Value

There are different ways to categorize customer value, but one common framework identifies four types
of customer value: functional, monetary social, and psychological value.

Functional value
This type of value is derived from the product's ability to perform its intended function effectively and
efficiently. For example, a laptop's functional value is based on how well it performs tasks like word
processing, web browsing, and running software applications. Customers look for products that offer
high functional value.
1. Appropriate features and characteristics – quality, aesthetics, creativity, and customization.

2. Appropriate performance – performance quality, reliability, and service-support outcomes.

3. Appropriate outcomes – effectiveness, operational benefits, and environmental benefits.

For example – Apple focus mainly on creating appropriate features and attributes. Ford focus on
performance and Pfizer focus on appropriate outcomes and consequences.

Monetary value
This type of value is related to the price that a customer pays for a product or service in relation to its
perceived worth.

Social value
Social value is created when a product is associated with a specific social group or status. For example,
luxury cars are often associated with wealth and status, and owning one can provide the owner a sense
of social value. Social value can be created by the product's design, branding, or marketi ng and it can be
an important factor in the purchase decision for many consumers.

Psychological value
This type of value relates to the emotional or psychological benefits a product or service provides to the
customer. It includes factors such as the product's aesthetics, sensory appeal, self-expression, and the
emotional response that it elicits. Customers seek psychological value to satisfy their emotional and self-
expressive needs.
Consumer Behaviour

Meaning and Definition:

Consumer behaviour is the study of how individual customers, groups or organizations
select, buy, use, and dispose ideas, goods, and services to satisfy their needs and wants. It
refers to the actions of the consumers in the marketplace and the underlying motives for
those actions.

Marketers expect that by understanding what causes the consumers to buy particular goods
and services, they will be able to determine—which products are needed in the
marketplace, which are obsolete, and how best to present the goods to the consumers.

According to Engel, Blackwell, and Mansard, ‘consumer behaviour is the actions and
decision processes of people who purchase goods and services for personal consumption’.

Nature of consumer behavior

1. Complex in Nature
Consumer behaviour is complex in nature as all persons differ in their needs and wants.
Each individual has their own unique needs and accordingly, they behave differently in
the market. It is a very difficult task for marketers to recognise the needs and patterns of
each individual.

2. Systematic Process
Consumer behaviour is a systematic process consisting of a series of steps involved in
buying decisions of consumers. It is related to how consumers make their buying decision.
The buying decision of consumers involves different steps which are: Need identification
to buy product, searching for information related with the product, marking list and
evaluating different options available, finally making a purchase decision and at last post-
purchase evaluation done by the marketer.

3. INFLUENCED BY VARIOUS FACTORS

Consumer behaviour is influenced by a number of factors. The factors that influence
consumers are : marketing, personal, psychological, situational, social, cultural etc.
 4. DIFFERENT FOR ALL CUSTOMER
All consumers do not behave in the same manner. Different consumers behave differently.
The difference in consumer behaviour is due to individual factors such as nature of the
consumer’s life style, culture, etc.
5. DIFFERENT FOR DIFFERENT PRODUCTS
Consumer behaviour is different for different products. There are some consumers who may
buy more quantity of certain items and very low/no quantity of some other items.
6. REGION BOUNDED
The consumer behaviour varies across states, regions and countries. For instance, the
behaviour of urban consumers is different from that of rural consumers. Normally, rural
consumers are conservative (traditional) in their buying behaviour.
7. VITAL FOR MARKETERS
Marketers need to have a good knowledge of consumer behaviour. They need to study the
various factors that influence consumer behaviour of their target customers. The knowledge
of consumer behaviour enables marketers to take appropriate marketing decisions.
8. REFLECTS STATUS
Consumers buying behaviour is not only influenced by status of a consumer, but it also
reflects it. Those consumers who own luxury cars, watches and other items are considered
by others as persons of higher status.
9. SPREAD – EFFECT
Consumer behavior has a spread effect. The buying behaviour of one person may influence
the buying behavior of another person. For instance, a customer may always prefer to buy
premium brands of clothing, watches and other items etc. This may influence some of his
friends, neighbors, colleagues. This is one of the reasons why marketers use celebrities like
Shahrukh Khan , Sachin to endorse their brands.
10.STANDARD OF LIVING
Consumer buying behaviour may lead to higher standard of living. The more a person buys
the goods and services, the higher is the standard of living.
11.KEEPS ON CHANGING
The consumer’s behaviour undergoes a change over a period of time depending upon
changes in age, education and income level. Etc, for instance,, kids may prefer colorful
dresses, but as they grow up as teenagers and young adults, they may prefer trendy clot.
Stages in Consumer Buying Decision Process

1. Problem recognition: Recognizes the need for a service or product

2. Information search: Gathers information
3. Alternatives evaluation: Weighs choices against comparable alternatives
4. Purchase decision: Makes actual purchase
5. Post-purchase evaluation: Reflects on the purchase they made

1. Problem recognition:
As we know, according to Maslow’s hierarchy of needs every Individual will have different
types of needs at a different stage.
The need is triggered either by internal stimuli (for example, a person feels hungry) or
external stimuli (for example, advertisements like BigBillion day offers).

2. Information Search
Once a customer/consumer identifies the need he starts collecting information to find a
solution, the search can take seconds, days, or more time, it depends on the primary
information he has, the surrounding he lives in and the technology he is aware of.

The customer collects the information through different sources such as mouth to mouth,
billboards, banners, advertisements in television, radio, social media, internet, etc.

3. Evaluation of Alternatives
This stage is crucial because in a bunch of alternatives considering your product/service as
the best is a difficult task. Any buyer evaluates the product and services with the available
alternatives, there are several factors he considers like brand, features, cost, benefits, and
trust-worthiness are compared.

3. Purchase Decision
This is the stage where the buyer intends to purchase the specific product/service after
evaluating the alternatives and considering the factors including his income level, benefits,
discounts, and offers.

5. Post Purchase Behaviour

After the purchase made by the consumer, he or she get satisfied or dissatisfied, the
information has to be collected by the marketer through feedback and improve the product
or service as per the consumer expectations.

In this stage, the consumer comes to the conclusion of whether he made the right decision or
not.
Types Of Consumer Buying Decision Process

1. Complex Buying Behavior:

Complex buying behaviour occurs when consumers face a high level of involvement in the
purchase decision and encounter significant differences among available options. This type
of behaviour is commonly observed when consumers are purchasing expensive, risky,
infrequently purchased, and highly self-expressive products, such as a house, a car, or a
computer.
For example, suppose a consumer wants to buy a new laptop. He would likely spend time
researching different brands, comparing specifications/features, reading customer
reviews, and seeking recommendations from friends or technology experts before
finalising their purchase.

2. Dissonance-reducing buying behavior

In dissonance-reducing buying behavior, consumer involvement is very high. This might be
due to high prices and infrequent purchases. In addition, there is low availability of
choices with fewer significant differences among brands. In this type, a consumer buys a
product that is easily available.
For example, consumers buying split type air conditioner may face a high-involvement
decision because air conditioning is costly and self-expressive.

3. Habitual Buying Behavior:

Habitual Buying Behavior occurs when consumers face a low level of involvement in the
purchase decision along with little significant brand differences. This type of behaviour is
commonly observed when consumers are purchasing products like salt, etc.
For example, buying a specific brand of toothpaste, snack items, or toiletries from a
particular store without much thought or consideration falls under habitual buying
behaviour. Consumers may choose these products based on familiarity, past positive
experiences, or simply because it is part of their routine.

4. Variety-Seeking Buying Behavior:

Variety-Seeking Buying Behavior occurs when consumers exhibit a desire for new
experiences, change, and novelty in their purchases. It means that when consumers face a
low level of involvement
For example, when buying cookies, a consumer may hold some beliefs, choose a cookie
brand without much evaluation, then evaluate that brand during consumption.
Major Factors Influencing Consumer Behavior
Consumer Behaviour is influenced by many different factors. The five major factors that
influence consumer behaviour are as follows –

1. Psychological Factors

Human psychology plays a major role in understanding consumer behaviour. Difficult to

measure, but psychological factors are powerful enough to influence a buying decision.

Some of the important psychological factors are as follows −

a)Motivation

Motivation to do something often influences the buying behaviour of the person.

Individuals have different needs such as social needs, basic needs, security needs, esteem
needs, and self-actualization needs. Out of all these, the basic needs and security needs
take a position above all other needs, and these motivate a consumer to buy products and
services.
b)Perception

Our perception is shaped when we gather information regarding a product and examine it
to generate a relevant image regarding a certain product. Whenever we see an
advertisement, review, feedback, or promotion regarding a product, we form an image of
that item. As a result, our perception plays an integral role in shaping our purchasing
decisions.

c)Learning

When a person buys a product, the general tendency is to learn something more about
the product. Learning also comes over a period through experience. This learning depends
on skills and knowledge. While skill can be gained through practice, knowledge can be
acquired only through experience.

d)Attitudes and Beliefs

Consumers’ attitudes and beliefs also influence the buying decision. Based on this
attitude, the consumer behaves in a particular way towards a product. This attitude plays
a significant role in defining the brand image of a product. Hence, marketers try hard to
understand the attitude of a consumer to design their marketing campaigns.

2. Social Factors

Humans are social beings, and the society or the people they live around influence their
buying behaviour. Human beings try to imitate other humans and nurture a desire to be
socially accepted. Hence, their buying behaviour is influenced by other people around
them. These factors are considered as social factors.Some of the social factors are as
follows −

a)Family

Family plays a significant role in shaping the buying behaviour of a person. A person
builds his/her preferences from his childhood by watching their family buy certain
products and continues to buy the same products even when they grow up.

b)Reference Groups

A reference group is a group of people with whom a person associates himself. Generally,
all the people in the reference group have common buying behaviour and influence each
other.
c)Roles and status

A person is influenced by the role that he holds in the society. If a person is in a high
position, his buying behaviour will be influenced largely by his status. A person who is a
Chief Executive Officer in a company will buy according to his status while a staff or an
employee of the same company will have different buying pattern.

3. Cultural Factors

A group of people is associated with a set of values and ideologies that belong to a
particular community. People coming from particular communities have behaviours highly
influenced by their culture. Cultural factors also include the concepts of subculture and
social class.

4. Personal Factors

Factors that are personal to the consumers influence their buying behaviour. These
personal factors vary from person to person, thereby producing different perceptions and
consumer behaviour. Some of the personal factors include −

a)Age

The buying choices of individuals depend on which age group they belong to. Elderly
people will have totally different buying behaviours as compared teenagers.

b)Income

Income influences the buying behaviour of a person. Higher income gives higher
purchasing power to consumers. When a consumer has higher disposable income, it gives
more opportunity for the consumer to spend on luxurious products. Whereas low-income
or middle-income group consumers spend most of their income on basic needs such as
groceries and clothes.

c)Occupation
Occupation of a consumer influences the buying behaviour. A person tends to buy things
that are appropriate to this/her profession. For example, a senior corporate professional
would tend to buy formal clothing whereas a creative designer would tend to spend on
casual wear.

d)Lifestyle

Lifestyle is an attitude, and a way in which an individual stay in the society. The buying
behaviour is highly influenced by the lifestyle of a consumer. Someone who leads a
healthy lifestyle would spend more or healthy food alternatives.
5. Economic Factors

Consumer buying habits greatly depend on the economic situation of a country or a

market. When a nation’s economy is strong, it leads to a greater money supply in the
market and higher purchasing power for consumers. Some of the important economic
factors are as follows −

a)Personal Income

When a person has a higher disposable income, the purchasing power increases
simultaneously. Disposable income refers to the money that is left after spending towards
the basic needs of a person. When there is an increase in disposable income, it leads to
higher expenditure on various items. But when the disposable income reduces, parallelly
the spending on multiple items also reduced.

b)Family Income

Family income is the total income from all the members of a family. When more people
are earning in the family, there is more income available for shopping basic needs and
luxuries. Higher family income influences the people in the family to buy more.

c) Consumer Credit

When a consumer is offered easy credit to purchase goods, it promotes higher spending.
Sellers are making it easy for the consumers to avail credit in the form of credit cards,
easy instalments, bank loans, hire purchase, and many such other credit options. When
there is higher credit available to consumers, the purchase of comfort and luxury items
increases.

d) Liquid Assets

Consumers who have liquid assets tend to spend more on comfort and luxuries. Liquid
assets are those assets, which can be converted into cash very easily. Cash in hand, bank
savings and securities are some examples of liquid assets. When a consumer has higher
liquid assets, it gives him more confidence to buy luxury goods.

e) Savings

A consumer is highly influenced by the amount of savings he/she wishes to set aside from
his income. If a consumer decided to save more, then his expenditure on buying reduces.
Whereas if a consumer is interested in saving more, then most of his income will go
towards buying products.
 Unit -2
Market segmentation
Market segmentation is the process of dividing a market into distinct groups of customers
with similar characteristics, needs, or preferences. This helps businesses identify and target
specific customer segments with tailored marketing strategies and messages.

Segmentation bases are the characteristics marketers use to separate an audience into
groups, or segments, that can be targeted with specific marketing efforts.

Factors of Market Segmentation

1. Demographic segmentation: This involves dividing the market based on demographic
factors such as age, gender, income, occupation, education, and family size. For example, a
company may target a specific age group or income bracket with their products or services.

2. Geographic segmentation: This segmentation is based on geographic factors such as

location, region, climate, urban vs. rural areas, or even specific neighborhoods. Businesses
may adjust their marketing strategies to meet the unique needs and preferences of
customers in different geographic areas.

3. Psychographic segmentation: Psychographic segmentation looks at customers' lifestyles,

interests, attitudes, values, and personality traits. By understanding their target customers'
psychographic profiles, businesses can develop marketing messages that resonate with their
specific preferences and motivations.

4. Behavioral segmentation: This segmentation is based on customers' behaviors, such as

their purchasing habits, product usage patterns, brand loyalty, or response to marketing
stimuli. Businesses can target customers based on their behavior, such as frequent
purchasers, first-time buyers, or customers who have shown interest in a particular product
or service.

5. Socioeconomic segmentation: Socioeconomic segmentation considers factors such as

social class, occupation, and income level. It helps businesses tailor their marketing efforts
to customers within specific socioeconomic groups who may have different purchasing
behaviors and preferences.
6. Benefit segmentation: This segmentation is based on the specific benefits or solutions
that customers seek from a product or service. Businesses may divide the market based on
the primary benefit customers seek, such as convenience, affordability, durability, or
aesthetics.

7. Usage-based segmentation: Usage-based segmentation categorizes customers based on

their usage patterns or frequency of using a product or service. This segmentation allows
businesses to tailor their marketing messages and strategies to infrequent users, heavy
users, or non-users of a particular product or service.

Basis of Segmentation
Basis of Segmentation Segmenting is dividing a group into subgroups according to some set
‘basis’. These bases range from age, gender, etc. to psychographic factors like attitude,
interest, values, etc.

1. Gender

Gender is one of the most simple yet important bases of market segmentation. The
interests, needs and wants of males and females differ at many levels. Thus, marketers
focus on different marketing and communication strategies for both. This type of
segmentation is usually seen in the case of cosmetics, clothing, and jewellery industry, etc.

2. Age group

Segmenting market according to the age group of the audience is a great strategy for
personalized marketing. Most of the products in the market are not universal to be used by
all the age groups. Hence, by segmenting the market according to the target age group,
marketers create better marketing and communication strategies and get better conversion
rates.

3. Income

Income decides the purchasing power of the target audience. It is also one of the key
factors to decide whether to market the product as a need, want or a luxury. Marketers
usually segment the market into three different groups considering their income. These are
High Income Group, Mid Income Group, Low Income Group
4. Place

The place where the target audience lives affect the buying decision the most. A person
living in the mountains will have less or no demand for ice cream than the person living in a
desert.

5. Occupation

Occupation, just like income, influences the purchase decision of the audience. Aneed for an
entrepreneur might be a luxury for a government sector employee. There are even many
products which cater to an audience engaged in a specific occupation.

6. Usage

Product usage also acts as a segmenting basis. A user can be labelled as heavy, medium or
light user of a product. The audience can also be segmented on the basis of their awareness
of the product.

7. Lifestyle

Other than physical factors, marketers also segment the market on the basis of lifestyle.
Lifestyle includes subsets like marital status, interests, hobbies, religion, values, and other
psychographic factors which affect the decision making of an individual.

Market aggregation
Market aggregation is also known as 'mass marketing' or 'undifferentiated marketing.
Market aggregation is a marketing strategy in which marketing is done to a mass number of
people belonging to the same segment of demographics having similar kinds of needs &
wants.

When multiple market segments are combined and targeted together through a single
marketing strategy, we refer to it as Aggregation Marketing.

Aggregation Marketing is a marketing strategy where several market segments are

combined by ignoring their differences and instead focusing on their commonality.

During Aggregation Marketing we target a characteristic that is common across the different
segments that are being aggregated. The common characteristic could be age, gender,
buying behavior, purchasing power or some other need or requirement that cuts across all
segments.
Examples of Aggregation Marketing

Sugar
When most of us buy sugar, we buy just that – sugar. When we add sugar to coffee … we
add just that – sugar. Most of us would care about the brand of coffee we’re having but
probably not care about the brand of sugar that we’re adding to the coffee.

Because, after all, for most of us sugar is sugar. Right?

Sugar is a commodity that is marketed across a single customer segment. Different types of
customers will buy sugar in the exact same way, and it will always fulfill the same need in all
customers.

This is why an Aggregated Marketing strategy can work for a commodity product like Sugar
where brand recognition almost doesn’t matter.

Benefits of Aggregation Marketing

More Efficient Marketing Strategies
Aggregation marketing results in fewer market segments to target making it easier to create and execute
marketing programs. This means Aggregation Marketing can produce higher returns on marketing
investments, resulting in more revenue per dollar spent on advertising or media buying.

Simplified Brand Management

A brand is easier to manage across a single market segment rather than in parallel across multiple market
segments.

Lower Costs, Higher Profits

Since Marketing Strategies, Brand Management and Product Development are combined across several
segments, duplication of costs is minimized. This reduces the overall cost of marketing, production and
customer management, which in turn can mean higher profits.
 Branding
Brand - A brand is a product, service or concept that is publicly distinguished from other products, services
or concepts so that it can be easily communicated and usually marketed.

Branding - Branding is the process of creating a distinct identity for a business in the mind of your target
audience and consumers. At the the most basic level, branding is made up of a company's name and logo,
visual design, mission, and tone of voice.

Branding is the process where a business makes itself known to the public and differentiates itself from
competitors. Branding typically includes a phrase, design or idea that makes it easily identifiable to the
public.

Branding is the process of creating a strong, positive perception of a company, its pr oducts or services in
the customer’s mind by combining such elements as logo, design, mission statement, and a consistent
theme throughout all marketing communications. Effective branding helps companies differentiate
themselves from their competitors and build a loyal customer base.

Why is branding important?

Branding is important for the following reasons:

 Establishes your company within an industry: The right brand identity can potentially help you get
established within your industry. This can also help you compete with those who offer similar
services as your brand gets more recognition.
 Conveys your purpose to consumers: Your brand is also important because it helps convey the
value that your products or services can provide for consumers. For example, if your cleaning
products company has the slogan: "Less time for cleanup, more time for fun," then you imply to
consumers that your product line helps clean up messes fast so customers can do more of what they
enjoy.
 Increases company awareness: Having a strong and recognizable brand could potentially attract
new customers.
 Reminds existing customers of your products and services: Your brand can also help remind
existing customers about what you have to offer. For example, if you own a pest control business,
running advertisements or revamping your logo could remind previous customers that you provide
organic pest control for their lawn.
  Creates Trust within the Marketplace
A professional appearance and well-strategised branding will help the company build trust with
consumers, potential clients and customers. People are more likely to do business with a company
that has a polished and professional portrayal. Being properly branded gives the impression of being
industry experts and makes the public feel as though they can trust your company, the products and
services it offers and the way it handles its business.
 Branding Increases Business Value
Branding is important when trying to generate future business and a strongly established brand can
increase a business’ value by giving the company more leverage in the industry. This makes it a
more appealing investment opportunity because of its firmly established place in the marketplace.
 Branding Generates New Customers
A good brand will have no trouble drumming up referral business. Strong branding generally means
there is a positive impression of the company amongst consumers, and they are likely to do business
with you because of the familiarity and assumed dependability of using a name they can trust. Once
a brand has been well-established, word of mouth will be the company’s best and most effective
advertising technique.

21 Different Types of Brands

There are many types of branding, so understanding the different strategies may help you decide what kind
of branding is right for your business. Here are 21 different types of branding:

1. Personal branding
Personal branding refers to creating a public persona that represents an individual and their work.
Celebrities often use this kind of branding because their name, image and talents are all part of the work
that they do. Other professionals who use personal branding may include freelancers who maintain a
portfolio or professional website that shows their work and expresses details about the products or services
they provide.

2. Product branding
A product brand focuses on distinguishing what makes your items different from others. For example, if
your company specializes in manufacturing gourmet pet food, you may communicate how your pet food
differs from other types through how you design your packaging and logo. Businesses may also use this kind
of branding to differentiate between their own products.

3. Service branding
Similar to product branding, service branding identifies what makes one company's services different from
another business's. Service branding can also identify different services offered by the same business. For
example, a car wash business may offer three different packages to their customers. They may brand each
service option by describing what extra benefits each level of car care service provides.
4. Retail branding
Retail stores create their brand through the physical design of their store. Features like the store's layout,
lighting, music and flooring contribute to the experience a customer has when they visit the establishment.
Retailers that offer similar products or services can distinguish themselves from each other by creating a
unique shopping experience for their customers. An example of retail branding may be two clothing stores
that offer similar products but differ through the music they play, the displays they use and the clothing
models they feature.

5. Cultural or geographic branding

In the tourism and travel industries, geographic and cultural branding is common. This kind of branding
uses recognizable cultural or regional symbols to promote a product or service. For example, a bakery that
specializes in French pastries may use the symbol of the Eiffel Tower or the colors of the French flag in their
logo to communicate their affiliation to their customers.

6. Corporate branding
A corporate brand is how a corporation expresses its values, mission and exclusivity to customers and
clients. Corporate branding includes design choices such as the organization's logo and name, but it also
includes how a corporation conducts its business. Everything from the way a company designs its marketing
campaigns to how it recruits its associates can affect how the public perceives its brand.

7. Online branding
Online branding refers to the aspects of a business's identity that they manage on the internet or through
apps. This could include social media accounts, online stores or other services offered digitally. Some
businesses may only have an online identity, while others may use online branding as an extension of their
physical branding.

8. Offline branding
Offline branding encompasses every type of branding that happens in the real, physical world. It can include
print media, the design of a retail establishment or any physical materials you bring with you to a client
meeting. This kind of branding might also include a company uniform that all associates wear to work or
physical advertisements like those printed on billboards or distributed through fliers.

9. Disruptive branding
This kind of branding strategy challenges existing methods and introduces different ways of establishing a
brand or marketing a product. Businesses may use this strategy to change the way the public perceives
their brand, or they may use it as part of their marketing strategy to advertise a new service or product.
Disruptive branding works by challenging accepted conventions and introducing new concepts.

10. Conscious branding

Conscious branding considers current social issues as part of its branding approach. It engages with social or
environmental concerns and promotes a mission to make a positive social impact. An example of conscious
branding may be a fashion design company that only uses sustainable methods to produce its clothing.

11. Innovative branding

Innovative branding focuses on introducing unconventional products or services. This kind of branding
promotes products and services that are new in the marketplace or have not been publically available
before. Technology companies often use this kind of branding to promote new software or other hardware
products.
12. Value branding
The value branding strategy promotes the cost-effectiveness of a product or service. For example, a grocery
store may promote its brand by advertising the cost of its products compared to the same product at a
competitor's store. It focuses on developing a brand that attracts financially conscious customers.

13. Performance branding

This style of branding offers products that deliver a high-quality experience. Some product or service
performance characteristics marketers may use in this type of branding include dependability, efficiency
and consistency. An example of this kind of branding could be a car manufacturer that emphasizes the
reliability of the vehicles it produces.

14. Luxury branding

Luxury branding may focus on the high quality and exclusivity of a company's products or services. This kind
of branding expresses that there's a rarity, extraordinariness or expense to the product or service in
question. Businesses that use luxury branding may include high fashion labels, luxury car dealers and
jewelers.

15. Style branding

A style brand focuses on how products look and feel when compared to similar items. Sometimes this
strategy may elevate the looks of a product over its performance. This style of branding often embraces a
tone that endorses a creative and contemporary perspective.

16. Experience branding

Experience branding relies on promoting the interactions or feelings the customer has when using their
product or service. This kind of branding is common in industries that promote specific events or
opportunities. For example, an arena advertising for an upcoming concert at their venue may use
experience branding to communicate the necessity of attending an event to potential customers.

17. Individual branding

Individual branding generally refers to any tangible, individual product. A specific toothpaste or soap can be
an example of an individual brand. This kind of branding may extend a product brand, service brand or
personal brand.

18. Group branding

A group brand is a situation where several brand identities overlap under a single entity. An example of
group branding may be a company that owns an animation studio and a live-action film studio but also
manufactures merchandise based on the entertainment media it produces. Though its merchandise brand,
animation brand and live film brand may each have an independent brand identity, they are all united
under the overreaching idenity of the company that produces them.

19. Event branding

Event branding works similarly to experience branding. It promotes an event or opportunity for potential
customers to attend. When used effectively, It entices participants to take part in a planned occasion.
Examples of events could be a show, sporting game or contest.

20. Private-label branding

Companies that use private-label branding manufacture products that are sold by a different retailer.
Private-label brands often include generic store brands or own brands, and some common private-label
products may be cosmetics, clothing or cleaning products. The private-label branding strategy often
promotes products as a more cost-effective alternative to brand-name products.
21. Media branding
Media branding specifically refers to how media outlets construct their company images. News outlets,
magazines and television broadcast networks develop brands that communicate their content to a target
audience. For example, the way a local news channel brands itself may differ from how a national news
channel brands itself to distinguish the type of viewers they expect to watch and interact with their
content.

22. Public brand

A brand which is owned and managed by the government has called public brand. At times even, the
government is seen as a public brand in the eyes of normal people.

Brand Positioning
Brand positioning refers to “target consumer’s” reason to buy your brand in preference to others. It is
ensures that all brand activity has a common aim; is guided, directed and delivered by the brand’s
benefits/reasons to buy; and it focusses at all points of contact with the consumer.

Positioning creates a bond between the customer and the business. It’s that friend of the customer who’ll
always stay in their subconscious mind and will make them recall about the company whenever they hear
about the any of its product or a particular feature which makes it stand out.

Examples of Brand Positioning

 Colgate is positioned as protective.
 Patanjali can be trusted as it is fully organic.
 Woodland is tough and perfect for outdoors.
 Coca-Cola brings happiness.
 Axe deodorants have a sexual appeal.

Characteristics of a Good Brand Positioning Strategy

Relevant: The positioning strategy you decide should be relevant according to the customer. If he finds the
positioning irrelevant while making the purchase decision, you’re at loss.
Clear: Your message should be clear and easy to communicate. E.g. Rich taste and aroma you won’t forget
for a coffee product gives out a clear image and can position your coffee brand differently from
competitors.
Unique: A strong brand positioning means you have a unique credible and sustainable position in the
customers’ mind. It should be unique or it’s of no use.
Desirable: The unique feature should be desirable and should be able to become a factor which the
customer evaluates before buying a product.
Deliverable: The promise should have the ability to be delivered. False promises lead to negative brand
equity.
Points of difference: The customer should be able to tell the difference between your and your
competitor’s brand.
Recognizable Feature: The unique feature should be recognizable by the customer. This includes keeping
your positioning simple, and in a language which is understood by the customer.
Validated by the Customer: Your positioning strategy isn’t successful until the time it is validated by the
customer. He is the one to decide whether you stand out or not. Hence, try to be in his shoes while deciding
your strategy.

How to create a strong brand positioning strategy?

Before you decide your brand positioning, ask yourself these three questions.
What does my customer want?
Can I promise him to deliver it better and/or differently than my competitors?
Why will they buy my promise?

What does my customer want?

Not everyone in the market is your customer. You need to divide the market into ‘my customer’ and ‘not
my customer’. This way, it’ll be easier for you to know what exactly is your customers’ wants are.
The division should be followed by you trying to be in your customers’ shoes. A good businessman speaks in
the voice of the consumer.
Your research should not be based on secondary data. You should go out and look for what the customer
actually wants, make the product fit those wants, and they’ll buy it.

Be Better and/or Different

If it’s not just you who is in the market, you’ve got to find a way to deliver your promise better and/or
differently than your competitors. Make a brand which has a recall, which comes to the customer’s minds
when they hear about the particular product category or the feature you’re offering. Every time I hear
about girls being attracted by a deodorant, I get an image of Axe deodorants in my mind.

Give them a reason to buy your promise.

 Decide your product
 List its various characteristics
 Do a research, and
 Divide the characteristics into essential and add-ons.
 Select only those categories, be it essential or add-ons, which customers consider while making a
purchase. (E.g. aesthetics, fragrance, taste, shape, cost, etc.)
 Find out what among these categories can you provide better than the competitors.
 Whatever you decide, don’t lose your focus from the essential characteristics. (E.g. Taste will always
be most important characteristic which a customer consider while buying a food product)
 Provide your unique feature along with the essential characteristics.
Advantage and Disadvantage of Branding
Advantage of Branding:
Awareness
The harder a company works on its branding and identity, in most cases, the more awareness it creates. For
example, Coca- Cola is known worldwide for its product. A consumer can see it in a foreign county, with
labeling in a foreign language and know it is a Coca-Cola product. The red color and shape of the bottle is an
immediate trigger in many minds as to the fact that the drink is a Coca-Cola product. This is branding and
identity at its best.

Consistency in the Marketplace

The more often a customer sees your brand in the marketplace, the more often he will consider it for
purchase. If the brand and identity are truly kept consistent, the customer is more likely to feel that the
quality is consistent and to become a loyal follower of the brand. However, this means that the product
must maintain a consistency that reflects the image as well.

Customer Loyalty
Well-executed branding helps create customer loyalty by reinforcing the purchase of merchandise in the
consumer’s mind. For sporting products, a campaign focused on physical fitness and not on a particular
product helps establish the brand as a leader in the industry for both previous and future customers. When
the product is associated with a lifestyle, it keeps consumers pursuing similar goals coming back.

Protection from Competition

Brands offer a certain amount of legal protection from the competition because of trademark law. A
trademark can be any unique word, device, or symbol that distinguishes a company. Nike’s swoosh and
Apple’s apple are both trademarked items. Companies can trademark their business name as long as they
use it when advertising to customers. Registering a brand as a trademark allows the holder to bring legal
action against any competitors that try to infringe on its branding.

Disadvantage of Branding:
It’s Expensive
One major disadvantage of branding is the expense. Designing a brand involves significant research, naming
development, graphic design and brand identity integration, which aren’t cheap. Business owners may feel
pressured to increase the price of their products to compensate for the increased expense, which could
cause customers to switch products. The increased expense of wages and professional fees to develop a
brand may or may not exceed the financial benefits of branding.

It’s Tough to Change

One of the major benefits of a brand is that it creates a strong product association for customers. However,
this can also be a disadvantage in several situations. If a company wants to change direction with its
products or target a new segment of consumers, an established brand can make it difficult to change the
image of the company. If a company undergoes a public scandal, a strong brand only makes it easier for
consumers to associate the business with past wrongdoings. While brands and even company names can be
changed, it’s an expensive and time-consuming process.
Can Become Commonplace
Many brands strive to be No. 1 in the minds of consumers. For example, in many parts of the U.S., people
request a Coke when they go to a restaurant, not necessarily meaning a Coca-Cola product, but any soda.
While it is the goal of branding to become the standard, it is not the goal to become the generic term of a
line of products.

Negative Attributes
If a product or service experiences a negative event, that will become attached to the brand. For example, a
massive recall or unintentionally offensive ad campaign can tarnish a company’s brand and image, causing
the company to need to build a whole new brand and identity to recapture its place in the market.

Pigeonholes
Sometimes establishing a strong brand identity can backfire when a company needs to pivot in response to
changing market conditions. A bakery known for sweet cakes may find it hard to rebrand as a purveyor of
gluten-free goods when its name calls to mind images of pastries, frosting and sprinkles.

Brand Equity
The Brand Equity refers to the additional value that a consumer attaches with the brand that is unique from
all the other brands available in the market. In other words, Brand Equity means the awareness, perception,
loyalty of a customer towards the brand.

E.g., The additional value a customer is willing to pay for Uncle Chips against any local chips brand
available with the shopkeeper.
Brand Equity is the goodwill that a brand has gained over time.
Brand Equity can be seen in the way the customer thinks, feels, perceives the product along with its price
and market position and also the way brand commands profit and market share for the organization as a
whole.
Customer Brand Equity can be studied in 3 different ways:
1. The Different Responses of a customer towards the product or service helps in determining the brand
equity. The way customer thinks about the brand and considers it to be different from the other brands will
generate a positive response for that brand and will contribute to its goodwill. g., Customer, have a positive
response towards Mac laptops because of its anti- virus software.
2. The responses can be generated only if customers have sufficient knowledge about the brand; thus,
Brand Knowledge is essential to determine the brand equity. The Brand knowledge includes the thoughts,
feelings, information, experiences, etc. that establish an association with the brand. g., Brand Association
reflects the knowledge about the product such as woodland is recognized for its rough and tough styling.
3. The different customer’s response that adds to the brand value depends solely on the Marketing of a
Brand. The strong brand results in substantial revenues for the organization and better understanding
about the product among the customers.

Thus, the marketers basically study the Customer-Based Approach wherein they study the response of a
customer towards the brand that can be reflected in their frequency of purchase. It focuses on customer’s
perception i.e. what they have read, felt, thought, seen about the brand and how it has helped them to
satisfy their urge of need.
Concept and Measure of Brand Equity
Brand Equity is the value and strength of the Brand that decides its worth. It can also be defined as the
differential impact of brand knowledge on consumers response to the Brand Marketing.

 Brand Equity can be determined by measuring:

 Returns to the Share Holders
 Evaluating the brand image for various parameters
 Evaluating the Brand’s earning potential in Long run.
 Helps in increase brand sales potential created by brand compared to the other brand of same class.
 The price premium charge by the brand over the non-branded product.
 OR, An amalgamation of all the above method

Factors contributing to Brand Equity

1. Brand Awareness
People will often buy a familiar brand because they are comfortable with the brand. Or there may be an
assumption that a brand that is familiar is probably reliable, in business to stay, and of reasonable quality. A
recognized brand will thus often be selected over an unknown brand. The awareness factor is particularly
important in contexts in which the brand must first enter the consideration set. It must be one of the
brands that are evaluated.
2. Brand Associations
People will often buy a familiar brand because they are comfortable with the brand. Or there may be an
assumption that a brand that is familiar is probably reliable, in business to stay, and of reasonable quality. A
recognized brand will thus often be selected over an unknown brand. The awareness factor is particularly
important in contexts in which the brand must first enter the consideration set. It must be one of the
brands that are evaluated.
3. Brand Loyalty
Brand loyalty—central construct in marketing, is a measure of the attachment that a customer has to a
brand. It reflects how likely a customer will switch to another brand, especially when that brand makes a
change, either in price or in product features. As brand loyalty increases, the vulnerability of the customer
base to competitive action is reduced.
4. Perceived Quality
It refers to the customer’s perception about the total quality of the brand. While evaluating quality the
customer takes into account the brands performance on factors that are significant to him and makes a
relative analysis about the brand’s quality by evaluating the competitors brands also. Thus quality is a
perceptual factor and the consumer analysis about quality varies. Higher perceived quality might be used
for brand positioning. Perceived quality affect the pricing decisions of the organizations. Superior quality
products can be charged a price premium. Perceived quality gives the customers a reason to buy the
product. It also captures the channel member’s interest. For instance – American Express.
5. Other Proprietary Brand Assets
Patents, Trademarks and Channel Inter-relations are proprietary assets. These assets prevent competitors
attack on the organization. They also help in maintaining customer loyalty as well as organization’s
competitive advantage.
Targeting
Targeting in marketing involves breaking the target audience into segments and then
designing marketing activities that will reach the segments most likely to be responsive to
your efforts. Target marketing can greatly increase the success you have in reaching
potential customers.

The market targeting strategies can be identified under four main segments.

1. Undifferentiated Marketing
2. Differentiated Marketing
3. Concentrated Marketing
4. Micromarketing

Undifferentiated Marketing
This is also known as the Mass marketing strategy. Under this strategy, the organization
decides to ignore the market segmentation and decide to produce it to the entire market.
This is suitable for productions such as garment and necessary food. This type of strategy
focuses on the common needs of the consumers and products to satisfy those common
needs. There is no uniqueness or specification for the product.

Differentiated Marketing
Differentiated Marketing strategy is also known as the segmented marketing strategy. It
decides to select several target markets in the industry and produce customized products
for each market segment. By offering separate product types for each market segment, the
organization is expecting to achieve a higher market share in each market segment and plan
to stabilize separately in each segment. This strategy requires many research and
development skills, innovative and creative skills to produce products that can satisfy all the
selected market segments.

Differentiated marketing is a highly costly strategy. Apart from that, it can be considered as
one of the safest ways of production.

Concentrated Marketing
Concentrated marketing is known as Niche marketing as well. Under the concentrated
marketing strategy, the organization focuses on a large share of one or more small
segments (niches). Through concentrated marketing, the organization is planning to achieve
a strong market share and create brand loyalty in the customers. By focusing on one or a
few niches the organization is planning to obtain better knowledge on the customer needs
and provide exactly what they are expecting from the product.
Micromarketing
Micromarketing strategy is about producing the product and the marketing method to suit
the taste of a specific individual or specific location. Rather than producing for every
customer, micromarketing concentrates on satisfying the needs of specific, prestigious
customers.

Micromarketing can be divided into two categories naming local marketing and individual
marketing.

1. Local Marketing – This is about providing a product or a service based on the

requirement of a customer group
2. Individual Marketing – This is about providing a product or a service based on an
individual customer. This can be identified as one-to-one marketing or mass
customization.

Positioning

Positioning defines where your product (item or service) stands in relation to others offering
similar products and services in the marketplace as well as the mind of the consumer.

For example: A handbag maker may position itself as a luxury status symbol. A TV maker
may position its TV as the most innovative and cutting-edge. A fast-food restaurant chain
may position itself as the provider of cheap meals.

Four main types of positioning strategies

There are four main types of positioning strategies: competitive positioning, product
positioning, situational positioning, and perceptual positioning.

 Competitive positioning involves comparing your product or service with that

of the competitors.
 Product positioning includes creating benefits for customers by aligning those
features with specific needs.
 Situational positioning includes positioning your product as a solution to the
specific needs of targeted customers.
 Perceptual positioning includes changing how people feel about their situation
by altering perceptions.
POSITIONING STRATEGIES
1. Positioning by product attributes and benefits
It is to associate a product with an attribute, a product feature, or a consumer feature.
Sometimes a product can be positioned in terms of two or more attributes simultaneously.
The price/quality attribute dimension is commonly used for positioning the products.
A common approach is setting the brand apart from competitors on the basis of the specific
characteristics or benefits offered. Sometimes a product may be positioned on more than
one product benefit. Marketers attempt to identify salient attributes (those that are
important to consumers and are the basis for making a purchase decision).

2. Positioning by Price/Quality
Marketers often use price/quality characteristics to position their brands. One way they do
it is with ads that reflect the image of a high-quality brand where cost, while not irrelevant,
is considered secondary to the quality benefits derived from using the brand. Premium
brands positioned at the high end of the market use this approach for positioning the
product.
Another way to use price/quality characteristics for positioning is to focus on the quality or
value offered by the brand at a very competitive price. Although price is an important
consideration, the product quality must be comparable to, or even better than, competing
brands for the positioning strategy to be effective.

3. Positioning By Use or Application

Another way is to communicate a specific image or position for a brand to associate it with
a specific use or application. Surf Excel is positioned as stain remover ‘Surf Excel hai na!’
Also, Clinic All Clear – ‘Dare to wear black’.

4. Positioning By Product Class

Often the competition for a particular product comes from outside the product class. For
example, airlines know that while they compete with other airlines, trains and buses are
also viable alternatives. Manufacturers of music CDs must compete with the cassette
industry. The product is positioned against others that, while not exactly the same, provide
the same class of benefits.

5. Positioning By Product User

Positioning a product by associating it with a particular user or group of users is yet another
approach. Motography Motorola Mobile, in this ad the persona of the user of the product
has been positioned.

6. Positioning By Competitor
Competitors may be as important to positioning strategy as a firm’s own product or
services. In today’s market, an effective positioning strategy for a product or brand may
focus on specific competitors.
This approach is similar to positioning by product class, although the competition is within
the same product category in this case. Onida was positioned against the giants in the
television industry through this strategy. Onida colour TV was launched with the message
that all others were clones and only Onida was the leader—‘Neighbour’s envy, owner’s
pride’.

7. Positioning By Cultural Symbols

This is an additional positioning strategy wherein the cultural symbols are used to
differentiate the brands. Examples are Humara Bajaj, Tata Tea, and Ronald McDonald. Each
of these symbols has successfully differentiated the product it represents from competitors.