Unit- 1

New Age Marketing

References: George Belch, Michael Belch - Advertising and Promotion - An Integrated Marketing
Communications Perspective (2021)
Kevin Lane Keller, Ambi M. G. Parameswaran, Isaac Jacob - Strategic Brand Management -
Building, Measuring, and Managing Brand Equity (2015)

Integrated Marketing Communications

What is it?

• Integrated marketing communication (IMC) combines many marketing channels to

create a cohesive and consistent brand message.

• In simpler terms, IMC involves coordinating the various promotional elements and
other marketing activities that communicate with a firm’s customers.

• Formal Definition:
“Integrated marketing communications is a concept of marketing communications planning
that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a
variety of communication disciplines—for example, general advertising, direct response, sales
promotion, and public relations—and combines these disciplines to provide clarity,
consistency, and maximum communications impact.”
• American Association of Advertising Agencies

• IMC encompasses a broad spectrum of channels, including online platforms such

as social media channels and websites, as well as offline avenues like television and
print. Regardless of how consumers engage with your brand, the objective is to provide
a uniform and unchanging experience.

• It’s worth noting that IMC bears similarities to multi-channel marketing, but it’s not
identical. Multi-channel marketing involves running campaigns across various
channels, while integrated marketing communication centres on delivering the same
experience/messaging across these diverse channels.

Advantages/Importance of IMC
1. Constant Brand Communication: IMC makes ensuring that a single brand message is
communicated over all channels of communication, supporting the maintenance of the brand’s
identity and core values at different touchpoints.
2. Improved Consumer Participation/Engagement: IMC helps businesses engage
consumers more successfully by combining marketing initiatives, which builds stronger bonds
and relationships.
3. Efficient Resource Allocation: By coordinating marketing initiatives, reducing effort
duplication, and optimizing the impact of each campaign, IMC makes it possible to allocate
resources efficiently.
4. Better ROI: IMC may increase marketing campaigns’ efficacy and therefore their return on
investment and overall cost-efficiency by aligning marketing channels in a synergistic way.
5. Enhanced Brand Loyalty: IMC’s consistent and well-coordinated communication fosters
consumer trust and loyalty, which promotes advocacy and repeat business.
6. Flexibility in Changing Markets: By incorporating real-time data and insights into
communication plans, integrated marketing communications (IMC) helps businesses to adjust
to changing customer preferences and market trends.
7. Competitive Advantage: Organizations that successfully integrate IMC stand out from the
competition by offering a smooth and engaging brand experience that appeals to customers.

4 Cs of IMC
IMC performed well are steered by four principles (Killian & McManus, 2015):1
1. Consistency – organisational alignment and consistent messages across all marketing
communication platforms
2. Commitment – to the platform and understanding the audience engaging with the
brand on the platform, and the conversations that are being conducted.
3. Customisation – tailored brand messages that build a personal connection with
consumers.
4. Caution – responding with caution to consumer commentary on social media
platforms.

Some Common Mistakes

1. Not having an overarching campaign goal or messaging: The enemy of integrated
marketing is disconnected marketing. This happens when you lack alignment in your
channels, messaging, and strategies. If your messaging is offensive, hypocritical, or
unjustifiably controversial, you're setting your entire integrated marketing campaign up
for failure. Example: Levi's "Hotness comes in all shapes and sizes" campaign.
2. Limited understanding of your audience: Knowing your audience is essential for
building marketing programs that work. With a strong understanding of your audience,
you’ll be able to tailor messaging and content to fit their. Without that baseline

1
Killian, G. & McManus, K., 2015. A marketing communications approach for the digital era: Managerial
guidelines for social media integration. Business Horizons, Volume 58, p. 539—549.
 understanding, you’re unlikely to reach your audience in a meaningful way, and
therefore unlikely to convert potential prospects into customers.
Take the time to build out your ideal customer profile (ICP) and document everything
from their demographic information and revenue to their motivations and challenges.
Refer to your ICP to guide your integrated marketing strategy and channel selection so
that you’re focusing on the places where your audience is most active to maximize ROI.
You can also dive into audience behavior and engagement data from your tech stack to
further understand your audience and tailor your programs accordingly.
3. Ignoring the data you collect: Successful integrated marketing efforts often rest on
lessons learned from previous campaigns. Your integrated marketing initiatives need to
be the byproduct of creativity within parameters set by knowledge and experience —
accrued, in large part, through results analysis. That's why it's surprising to see so many
companies hastily analyzing campaign data or neglecting to do so altogether.
4. Not using the results on one platform to enrich others: Each time you learn
something new about your leads, are you using this to enrich future interactions and
provide the most personalized experience – not just on that channel, but on all others,
too?
One of the easiest integrated marketing mistakes to make is not using the data collected
on one channel to reinforce other channels.
5. Poor communication between channel owners: It’s crucial to have a cohesive
communication strategy on your team, meaning the person who owns your Instagram
strategy knows what’s being scheduled for print media, event advertising, and all other
channels that you’re using to share your message. A simple way to facilitate
collaboration is by using an all-in-one platform to manage your channels in one place
and provide a bird’s eye view of what’s currently in place and scheduled.
6. Lacking a clear view of performance: If your reporting is limited, you won’t see the
full picture of your integrated marketing performance. This can lead to uninformed
decisions or not having sufficient information to pivot a campaign when you most need
to.

Success Story
Coca-Cola’s “Share-A-Coke” Campaign
About the campaign:
Coca-Cola used personalised packaging where they replaced the iconic logo with a wide range
of popular names, nicknames, and terms, effectively personalising the product. They used a
variety of names to cater to as many consumers as possible. Coca-Cola featured a diverse list
of names, ensuring a broad appeal.
The campaign’s website also allowed users to create virtual Coca-Cola cans with their names
or custom messages, which could be shared on social media. This was then turned into a
successful NFT campaign in future months.

Coca-Cola encouraged consumers to share photos and stories of their personalized Coke cans
on social media platforms using the hashtag #ShareaCoke. This helped create a buzz and user-
generated content which ended up going viral.

On top of all this, Coca-Cola hosted various events and promotions in stores, allowing
consumers to personalise their Coca-Cola cans on the spot. This proved to be a huge success
in boosting customer engagement which increased their brand strength.

The campaign was supported by several TV commercials featuring people sharing a Coke with
friends and loved ones. To this day, this campaign has been one of Coca-Cola’s most successful
ad campaigns.

Objectives of the campaign:

The campaign had three main objectives:

• Increase customer engagement

• Drive more sales
• Boost social media reach
Result:
The campaign resulted in a 33% increase in sales globally. By personalising the cans,
consumers felt a stronger emotional connection to the brand, leading to higher purchase intent.

Consumers enthusiastically embraced the campaign by sharing their personalised Coke cans
and stories on social media. The #ShareaCoke hashtag trended worldwide, generating 25
million new Facebook followers. The “Share a Coke” campaign successfully reinforced its
brand’s emotional appeal, making consumers feel more connected to the brand. This led to
improved brand loyalty and long-term customer relationships, receiving several awards and
accolades for its innovative approach to marketing, including a Cannes Lions award.

Failure Example
Dove’s “Racist” Body Lotion Ad
For years Dove had been successfully running its ‘Real Beauty’ campaign. The campaign
featured real women of various ages, sizes, ethnicities, and backgrounds as opposed to
professional models. This authenticity aimed to reflect the diversity of beauty.
Dove has created a wide range of compelling videos that explore the concept of beauty. They
feature interviews and discussions with the women participating in the campaign. These videos
were shared online and through traditional advertising channels. Alongside the videos, Dove
conducted workshops and educational programs in schools and communities to promote self-
esteem and positive body image among girls and young women.

Objectives of the campaign:

The primary objectives of the Dove “Real Beauty” campaign were to:

• Promote Self-Esteem
• Challenge Stereotypes
• Increase Brand Affinity

All was going well until Dove released an ad for its body lotion.

In early October of 2017, personal care brand Dove received a huge wave of negative
feedbacks from social media users about its new marketing campaign for a body wash – a 3-
second GIF image posted on Facebook featuring 3 women of different origin, each removing
a top similar to her skin colour to reveal the next woman. The most provocative part of the
advertisement was an image with viral showing African-American woman removing her brown
t-shirt with a bottle of Dove and revealing herself as an Eastern European in a light-coloured
top. As it turned out, the principle behind the product Dove, that it “suits all skins”, was
misinterpreted into the racist statement by those who saw the ad. Using such idea as an
incentive, many people expressed unwillingness to purchase any more products from this
brand. Dove had to apologize on twitter stating “An image we recently posted on Facebook
missed the mark in representing women of color thoughtfully. We deeply regret the offense it
caused.”

Dove did not immediately learn from their mistake in this ad and continued releasing ads that
seemed tone-deaf, which was very unusual for the brand. It also made consumers feel like Dove
was lying about their mission of empowering women.
Moving forward, Dove learned from their mistake and focused more on listening to their
consumers. The newer ads have focused more on how beauty standards negatively affect
women. The brand is working toward more inclusion and aligning itself closer with its values.

Tools of IMC
1. Advertising
Advertising is defined as any paid form of nonpersonal communication about an organization,
product, service, or idea by an identified sponsor.

Importance of Advertising in IMC:

a. Cost-effective and wide reach: First, media advertising is still the most cost-effective
way to reach large numbers of consumers with an advertising message. Television in
particular is an excellent way for marketers to reach mass markets. Thus, for marketers
who want to build or maintain brand awareness and reach mass markets with their
advertising messages, media advertising remains an excellent way to do so.

b. Brand Equity: Advertising is also a valuable tool for building company or brand equity
because it is a powerful way to provide consumers with information as well as to
influence their perceptions. Advertising can be used to create favorable and unique
images and associations for a brand, which can be very important for companies selling
products or services that are difficult to differentiate on the basis of functional
attributes. Brand image plays an important role in the purchase of many products and
services, and advertising is still recognized as one of the best ways to build a brand.

2. Direct Marketing

• In direct marketing organizations communicate directly with target customers to

generate a response and/or a transaction.
• Direct marketing is much more than direct mail and mail-order catalogues. It involves
a variety of activities, including database management, direct selling, telemarketing,
and direct-response advertising through direct mail, online, and various broadcast and
print media. Some companies, such as Tupperware, Avon, and Amway, do not use any
other distribution channels, relying on independent contractors to sell their products
directly to consumers.
• One of the major tools of direct marketing is direct-response advertising, whereby a
product is promoted through an ad that encourages the consumer to purchase directly
from the manufacturer. Traditionally, direct mail has been the primary medium for
direct-response advertising, although television and the Internet have become
increasingly important media.
• More recently, the rapid growth of mobile devices to access the Internet is fueling the
growth of direct marketing. Many consumers go straight to their smartphones or tablets
 to search for information about a product or service, and they are very comfortable with
making purchases through a mobile device. The convenience of shopping through
catalogues or on a company’s website and placing orders online has become very
appealing to many consumers, and marketers recognize that this can be an effective
way to augment their sales through traditional retail channels.
• One of the major trends in marketing that has emerged over the past decade is that of
omnichannel retailing, whereby companies sell their products through multiple
distribution channels including retail stores, online, catalogues, and mobile apps.
However, it is about more than just offering a product or service through multiple
channels. An omnichannel strategy involves using a combination of physical or offline
channels as well as digital or online channels to influence a customer’s shopping
experience including research before a purchase and service after a sale.

Importance in IMC:

Direct marketing plays a big role in the integrated marketing communications programs of
consumer product companies and business-to-business marketers.

a. Direct contact: They use telemarketing to call customers directly and attempt to sell
them products and services or qualify them as sales leads. Marketers also send out e-
mails, direct-mail pieces ranging from simple letters and flyers to detailed brochures,
catalogues, and other promotional materials to give potential customers information
about their products or services. Direct-marketing techniques are also used to distribute
product samples.

b. Customer information: Many companies now have extensive databases containing

customer names; mail and e-mail addresses; geographic, demographic, and
psychographic profiles; purchase patterns, media preferences, credit, and other
financial information; and other relevant customer characteristics. Marketers use this
information to target their current and prospective customers through a variety of direct-
marketing methods such as direct mail, e-mail marketing, telemarketing, and others.
These databases are an integral part of companies’ customer relationship management
(CRM) programs, which involve the systematic tracking of customer preferences and
behaviors and modifying a product or service to meet individual needs and wants.

3. Digital/Internet Marketing (Interactive Media)

• Interactive media allow for a two-way flow of communication whereby users can
participate in and modify the form and content of the information they receive in real
time.

• Unlike other forms of marketing communication—such as traditional media

advertising—that are one-way in nature, the digital media allow users to perform a
 variety of activities such as receive, alter, and share information and images; make
inquiries; respond to questions; and make purchases online. The rapid growth of the
Internet and, more recently, social media has forever changed the nature of how
companies do business and the ways they communicate and interact with consumers.

Internet a multifaceted marketing communication tool:

• It is an advertising medium as many marketers pay to run display and video ads
promoting their products and services on the websites of other companies,
organizations, and web publishers.
• Advertisers also pay Internet search engines such as Google, Bing, and Yahoo! to place
ads in or near relevant search results based on keywords.
• It is a medium that can be used to execute all of the elements of the promotional mix.
In addition to advertising on the Web, marketers offer sales promotion incentives such
as coupons, contests, and sweepstakes online, and they use the Internet to conduct direct
marketing, personal selling, and public relations activities more effectively and
efficiently.
• Further, social media have revolutionized how companies communicate with, listen to,
and learn from their customers and have become a major marketing tool for most
companies. Companies and organizations are using social media as well by creating
Facebook and Instagram pages, YouTube channels or Twitter accounts, or by posting
advertisements and videos on YouTube and other sites.
• Mobile Marketing is another form of Internet Marketing, which is promotional activity
designed for delivery to cell phones, smartphones, tablets, and other handheld devices
including apps, messaging, commerce, and customer relationship management.

Advantages and Role in IMC:

Interactivity: The interactive nature of the Internet and social media is one of their major
advantages. This capability enables marketers to gather valuable personal information from
customers and prospects and to adjust their offers accordingly, in some cases in real time.

Measurability: It provides marketers with the capability to more closely and precisely measure
the effects of their advertising and other forms of promotion. There are a number of metrics
that can be generated when consumers visit websites or spend time on social media, which
allow marketers to determine how consumers are responding to their campaigns, how well they
are engaging them, and the return on investment they are receiving from their promotional
money.

4. Sales Promotion

It is defined as those marketing activities that provide extra value or incentives to the sales
force, the distributors, or the ultimate consumer and can stimulate immediate sales.
Sales promotion is generally broken into two major categories: consumer-oriented and trade-
oriented activities.
Consumer-oriented sales promotion is targeted to the ultimate user of a product or service and
includes couponing, sampling, premiums, rebates, contests, sweepstakes, and various point-of-
purchase materials. These promotional tools encourage consumers to make an immediate
purchase and thus can stimulate short-term sales.

Trade-oriented sales promotion is targeted toward marketing intermediaries such as

wholesalers, distributors, and retailers. Promotional and merchandising allowances, price
deals, sales contests, and trade shows are some of the promotional tools used to encourage the
trade to stock and promote a company’s products.

5. Publicity/Public Relations

Publicity refers to nonpersonal communications regarding an organization, product, service,

or idea not directly paid for or run under identified sponsorship. It usually comes in the form
of a news story, editorial, or announcement about an organization and/or its products and
services.

Like advertising, publicity involves nonpersonal communication to a mass audience, but unlike
advertising, publicity is not directly paid for by the company. The company or organization
attempts to get the media to cover or run a favorable story on a product, service, cause, or event
to affect awareness, knowledge, opinions, and/or behavior. Techniques used to gain publicity
include press releases, press conferences, feature articles, photographs, films, and video news
releases.

Advantages of Publicity:
1. Credibility: Consumers generally tend to be less skeptical toward favorable
information about a product or service when it comes from a source they perceive as
unbiased.
2. Low cost: the company is not paying for time or space in a mass medium such as TV,
radio, or newspapers. While an organization may incur some costs in developing
publicity items or maintaining a staff to do so, these expenses will be far less than those
for the other promotional programs.

Publicity is not always under the control of an organization and is sometimes unfavorable.
Negative stories about a company and/or its products can be very damaging. For example,
United Airlines has had several major PR crises recently, including one incident where a
passenger was dragged off an overbooked flight even though he was holding a ticket. A video
of the forceful removal was captured on the smartphone of another passenger and quickly went
viral.

Public Relations
Public relations (PR) is defined as “a strategic communication process that builds mutually
beneficial relationships between organizations and their publics”.

How is it different from Publicity?

When an organization systematically plans and distributes information in an attempt to control
and manage its image and the nature of the publicity it receives, it is really engaging in public
relations.
Public relations generally have a broader objective than does publicity, as its purpose is to
establish and maintain a positive image of the company among its various publics.

Role in IMC:
Public relations use publicity and a variety of other tools—including special publications,
participation in community activities, fund-raising, sponsorship of special events, and various
public affairs activities—to enhance an organization’s image. Companies also use advertising
as a public relations tool.

Traditionally, publicity and public relations have been considered more supportive than
primary to the marketing and promotional process. However, many companies now make PR
an integral part of their IMC strategy. PR firms are increasingly touting public relations as a
communications tool that can take over many of the functions of conventional advertising and
marketing.

6. Personal Selling

It is a form of person-to-person communication in which a seller attempts to assist and/or

persuade prospective buyers to purchase the company’s product or service or to act on an idea.

Unlike advertising, personal selling involves direct contact between buyer and seller, either
face to face or through some form of telecommunications such as telephone sales. This
interaction gives the marketer communication flexibility; the seller can see or hear the
potential buyer’s reactions and modify the message accordingly.

Personal selling also involves more immediate and precise feedback because the impact of
the sales presentation can generally be assessed from the customer’s reactions.

It can be an effective tool in IMC as a salesperson directly communicates with the buyer,
resolves their issues on spot, improvise his pitch as per the need of the buyer, and focuses on
building a long-term relationship with end-users.
Not only does this technique build relationships, but it also improves customer satisfaction,
builds trust, and helps build brand awareness.

Role of Personal Selling:

A very important role is played by Personal Selling in marketing goods and services. Its
importance to businessmen, customers, and society are discussed below:
Importance of Personal Selling to Marketers
Sales of a firm are increased with the help of Personal Selling. It is significant for marketers in
the following manner:
Effective Promotional Tool: It increases the sales of the firm by influencing prospective
customers about the product, its quality, features, uses, etc., and thus, acts as an effective
promotional tool.
Flexible Tool: Personal selling is more flexible than other promotional tools, like advertising
and sales promotion. The message, offer, etc., can be changed in varying purchase situations.
Minimises Wastage of Efforts: As the target audience is pre-decided, personal selling
involves minimum wastage, which leads to bringing economy in the efforts of business person.
Consumer Attention: Customer attention can be easily achieved in the case of personal
selling as there is direct contact between the salesperson and the customer. This helps sales
persons and businessmen to achieve their sales targets.
Lasting Relationship: Long-lasting relationships are maintained with the help of personal
selling between the salespersons and customers, and this helps in increasing sales of the
product.
Personal Rapport: Personal rapport is developed with the efforts of the salesperson.
Salesperson gains the trust and confidence of the customers, which increases the competitive
strength of the business.
Role in Introduction Stage: Personal Selling plays a very significant role in the introduction
stage of a new product. This is possible because sales persons can influence and inform
customers about the merits, features, and uniqueness of the product.
Link with Customers: Salesperson performs three different roles: persuasive role, service
role, and informative role, which links business with the customers.
Importance of Personal Selling to Customers
Personal Selling plays a very important role in informing and educating the customers. It
benefits the customers in the following manner:
Helps in Identifying needs and means to fulfil them: Customers are able to identify their
needs and wants better with the help of Personal Selling. It also helps them to understand how
these needs can be satisfied.
Latest Market Information: Personal Selling helps customers in getting the latest
information about a product, its price, uses, etc. It also assists in making purchase decisions.
Expert Advice: Expert advice and guidance are provided by the salesperson to the customers
in purchasing various products and services.
Importance of Personal Selling to Society
A very productive role is played by Personal Selling in the economic progress of society. The
benefits of personal selling to society are:
Employment Opportunities: It creates employment opportunities for people as it requires a
lot of sales persons. A lot of youth gets employed because of personal selling.
Career Opportunities: It creates many attractive opportunities for career advancement and
job satisfaction. Security, respect, and independence are provided to the youth through personal
selling.
Mobility of Sales People: It also boosts travel and tourism in the country, as the salesperson
is required to move from one place to another.
Product Standardisation: Personal selling brings uniformity in consumption patterns in a
diverse society by selling standardised products.
Personal Selling Process

The personal selling process typically includes several steps, each designed to move the
potential customer closer to making a purchase. Understanding these personal selling
techniques is crucial so you can optimize the selling process.
By following these steps, salespeople can effectively move prospects through the customer
journey and increase their chances of making a successful sale.

1. Prospecting
This involves identifying potential customers who may be interested in the product or service
being sold. Prospecting can be done through various means, such as referrals, cold calling,
networking events, or social media.

2. Pre-approach
Once potential customers have been identified, the salesperson needs to do some research and
preparation before making contact.
This involves gathering information about the customer, such as their needs, preferences, and
buying habits, as well as information about the product or service being sold.

The salesperson may also prepare a sales presentation or demonstration to use during the
approach stage.

3. Approach
The approach stage is where the salesperson makes initial contact with the potential customer.
The goal is to make a good first impression and establish rapport with the customer. The
salesperson may use various techniques, such as a warm greeting, a compliment, or an opening
question to engage the customer and start a conversation.

4. Presentation
Once the salesperson has established a rapport with the customer, they will move on to the
presentation stage. This involves showcasing the product or service being sold and explaining
its features, benefits, and value proposition.
The salesperson may use various presentation techniques, such as product demonstrations,
testimonials, or case studies, to illustrate the product's benefits and persuade the customer to
make a purchase.

5. Overcoming objections
During the presentation, the potential customer may raise objections or concerns about the
product or service being sold. The salesperson needs to be prepared to address these objections
and provide satisfactory answers that alleviate the customer's concerns.

This may involve providing additional information, offering solutions, or addressing any
misconceptions the customer may have.

6. Closing
The final stage in the personal selling process is closing the sale. This involves asking for the
customer's business and finalizing the transaction. By the closing stage, you should have
formed a personal connection with the customer.
The salesperson may use various closing techniques, such as offering a discount, creating a
sense of urgency, or emphasizing the benefits of the product or service, to encourage the
customer to make a purchase.

After the sale, following up with the customer to get feedback after the purchase is key to
strengthening the personal relationship and nurturing future sales.

It's important to note that not every sales conversation will lead to a sale, but by understanding
the personal selling process, salespeople can increase their chances of success, build stronger
customer relationships, and improve the customer experience.

ROLE OF IMC IN MARKETING PROCESS

Marketing and Promotions Process Model

As the model shows, the marketing process begins with the development of a marketing
strategy and analysis in which the company decides the product or service areas and particular
markets where it wants to compete. The company must then coordinate the various elements
of the marketing mix into a cohesive marketing program that will reach the target market
effectively.

MARKETING STRATEGY AND ANALYSIS

Any organization that wants to exchange its products or services in the marketplace
successfully should have a strategic marketing plan to guide the allocation of its resources.
A strategic marketing plan usually evolves from an organization’s overall corporate strategy
and serves as a guide for specific marketing programs and policies.
Marketing strategy is based on a situation analysis—a detailed assessment of the current
marketing conditions facing the company, its product lines, or its individual brands. From this
situation analysis, a firm develops an understanding of the market and the various opportunities
it offers, the competition, and the market segments or target markets the company wishes to
pursue.

Opportunity Analysis
• A careful analysis of the marketplace should lead to alternative market opportunities
for existing product lines in current or new markets, new products for current markets,
or new products for new markets.
• Market opportunities are areas where there are favourable demand trends, where the
company believes customer needs and opportunities are not being satisfied, and where
it can compete effectively.

Competitive Analysis

• In developing the firm’s marketing strategies and plans for its products and services,
the manager must carefully analyse the competition to be faced in the marketplace. For
example, recently the U.S. market has seen significant growth in the high-end luxury
market, with more consumers spending more of their money on luxury goods than ever
before. High-end products from Coach, Tiffany’s, and Ralph Lauren are all benefiting
from this change in consumer spending habits. Interestingly, it is not just the wealthy
that are purchasing these very expensive products, but the middle class is doing so as
well. Leading marketers apply labels such as the “massification of luxury,” “luxflation,”
or the “new luxury” segments.
• This may range from direct brand competition (which can also include its own brands)
to more indirect forms of competition, such as product substitutes.
• An important aspect of marketing strategy development is the search for a competitive
advantage, something special a firm does or has that gives it an edge over competitors.
For example: character marketing (Vodafone ZooZoo)
• Competitors’ marketing programs have a major impact on a firm’s marketing strategy,
so they must be analyzed and monitored. The reactions of competitors to a company’s
marketing and promotional strategy are also very important. Competitors may cut
prices, increase promotional spending, develop new brands, or attack one another
through comparative advertising. One of the more intense competitive rivalries is the
battle between Coca-Cola and Pepsi.

TARGET MARKET SELECTION

After evaluating the opportunities presented by various market segments, including a detailed
competitive analysis, the company may select one, or more, as a target market. This target
market becomes the focus of the firm’s marketing effort, and goals and objectives are set
according to where the company wants to be and what it hopes to accomplish in this market.

Target Marketing Process

Identifying Markets

• Target market identification isolates consumers with similar lifestyles, needs, and the
like, and increases our knowledge of their specific requirements.
• The more marketers can establish this common ground with consumers, the more
effective they will be in addressing these requirements in their communications
programs and informing and/or persuading potential consumers that the product or
service offering will meet their needs
Market Segmentation

Dividing up a market into distinct groups that have common needs and will respond similarly
to marketing action. The Process involves the following steps:
• Finding ways to group consumers according to their needs
• Finding ways to group the marketing actions—usually the products offered available to
the organization
• Developing a market-product grid to relate the market segments to the firm’s products
or actions
• Selecting the target segments toward which the firm directs its marketing actions
• Taking marketing actions to reach target segments
Bases for Segmentation
- Geographic Segmentation (Region, City size, Density)
- Demographic Segmentation (Gender, Age, Race/ethnicity, Life stage, Birth era,
Household size, Marital status, Income, Education, Occupation)
- Psychographic Segmentation (Personality, Values, Lifestyle, Needs)
- Behaviouristic Segmentation (Usage rate, User status, Awareness/intentions)
- Benefit Segmentation

Selecting a Target Market

1. Determining how many segments to enter:

• Undifferentiated marketing involves ignoring segment differences and offering just
one product or service to the entire market. For example, Apple iPhone.
• Differentiated marketing involves marketing in a number of segments, developing
separate marketing strategies for each. For example, Samsung smartphone range.
• Concentrated marketing is used when the firm selects one segment and attempts to
capture a large share of this market. For example, Maruti Suzuki-economy car segment.

2. Determining which segments offer potential:

 The second step in selecting a market involves determining the most attractive segment.
The firm must examine the sales potential of the segment, the opportunities for growth, the
competition, and its own ability to compete. Then it must decide whether it can market to
this group.

Market Positioning
Positioning has been defined as “the art and science of fitting the product or service to one or
more segments of the broad market in such a way as to set it meaningfully apart from
competition.” Positioning strategies generally focus on either the consumer or the competition.
Developing a Positioning Strategy: To create a position for a product or service, managers
must ask themselves six basic questions:
- What position, if any, do we already have in the prospect’s mind?
- What position do we want to own?
- What companies must be outgunned if we are to establish that position?
- Do we have enough marketing money to occupy and hold the position?
- Do we have the guts to stick with one consistent positioning strategy?
- Does our creative approach match our positioning strategy?
Approaches:
i. Positioning by Product Attributes and Benefits (eg Volvo- safety, Apple – user-
friendly)
ii. Positioning by Price/Quality (eg. Rolex is positioned as a luxury watch brand with
a focus on superior craftsmanship and status; Walmart positions itself as the low-
price leader with its slogan “Save Money. Live Better,” appealing to cost-conscious
consumers)
iii. Positioning by Use or Application (eg. Gatorade - positioned as a sports drink that
enhances athletic performance, specifically marketed to athletes and active
individuals)
iv. Positioning by Product Class- brand is positioned not directly against a competitor
but rather as an alternative within a broader product category (eg. 7-Up originally
positioned itself as the "Uncola," distinguishing itself from cola drinks and offering
consumers a refreshing alternative).
v. Positioning by Product User (g. Dove positions itself for “real beauty,” targeting
women of all shapes, sizes, and ages, promoting body positivity)
vi. Positioning by Competitor (eg. Burger King positions itself as a better choice than
McDonald’s with its “Have it Your Way” campaign, emphasizing customization,
Pepsi vs Coca-Cola, etc.)
vii. Positioning by Cultural Symbols (Vodafone Zoozoos, Ronald McDonald)
viii. Repositioning (Tata Nano- ‘World’s Cheapest Car’ to the ‘Smart City Car’)
DEVELOPING THE MARKETING PLANNING PROGRAM
Product Decisions
Product planning involves decisions not only about the item itself, such as design and quality,
but also about aspects such as service and warranties as well as brand name and package design.
Consumers look beyond the reality of the product and its ingredients. The product’s quality,
branding, packaging, and even the company standing behind it all contribute to consumers’
perceptions.
The term product symbolism refers to what a product or brand means to consumers and what
they experience in purchasing and using it. For example, designer clothing such as Versace,
Gucci, and Prada is often purchased on the basis of its symbolic meaning and image,
particularly by teenagers and young adults. Advertising plays an important role in developing
and maintaining the image of these brands.
In an effective IMC program, advertising, branding, and packaging are all designed to portray
the product as more than just a bundle of attributes. All are coordinated to present an image or
positioning of the product that extends well beyond its physical attributes.

Branding
Branding is about building and maintaining a favorable identity and image of the company
and/or its products or services in the mind of the consumer. The brand identity consists of the
combination of the name, logo, symbols, design, etc. that differentiate the products of one
company from that of another.
The goal of branding is to -
(1) build and maintain brand awareness and interest;
(2) develop and enhance attitudes toward the company, product, or service; and
(3) build and foster relationships between the consumer and the brand
One important role of advertising in respect to branding strategies is creating and maintaining
brand equity, which can be thought of as an intangible asset of added value or goodwill that
results from the favourable image, impressions of differentiation and/or the strength of
consumer attachment to a company name, brand name, or trademark.
Packaging
Packaging is another aspect of product strategy that has become increasingly important. The
package is often the consumer’s first exposure to the product, so it must make a favourable first
impression. Many companies view the package as an important way to communicate with
consumers and create an impression of the brand in their minds eg., perfume brands.

Pricing
The price variable refers to what the consumer must give up to purchase a product or service.
While price is discussed in terms of the monetary amount exchanged for an item, the cost of a
product to the consumer includes time, mental activity, and behavioural effort. A firm must
consider a number of factors in determining the price it charges for its product or service,
including costs, demand factors, competition, and perceived value.
From an IMC perspective, the price must be consistent with the perceptions of the product, as
well as the communications strategy. Higher prices, of course, will communicate a higher
product quality, while lower prices reflect bargain or “value” perceptions. A product positioned
as highest quality but carrying a lower price than competitors would only confuse consumers.
In other words, the price, the advertising, and the distribution channels must present one unified
voice speaking to the product’s positioning.
Distribution Channel
Marketing channels, the place element of the marketing mix, are “sets of interdependent
organizations involved in the process of making a product or service available for use or
consumption”.
The distribution strategy should take into consideration the communication objectives and the
impact that the channel strategy will have on the IMC program. For example beauty products
being sold at Lifestyle stores will carry the ‘value and economical beauty products’ perceptions
while those being sold at Sephora or Nykaa Luxe will carry ‘premium’ perceptions.
Developing Promotional Strategies: Push or Pull?
Promotional push strategy: The goal of this strategy is to push the product through the
channels of distribution by aggressively selling and promoting the item to the resellers, or
trade.

Promotional pull strategy: Spending money on advertising and sales promotion efforts
directed toward the ultimate consumer. The goal of a pull strategy is to create demand among
consumers and encourage them to request the product from the retailer. Seeing the consumer
demand, retailers will order the product from wholesalers (if they are used), which in turn will
request it from the manufacturer. Thus, stimulating demand at the end-user level pulls the
product through the channels of distribution.

Role of Advertising and Promotion

Marketers use the various promotional-mix elements—advertising, sales promotion, direct
marketing, publicity/public relations, and personal selling—to inform consumers about their
products, their prices, and places where the products are available. Each promotional mix
variable helps marketers achieve their promotional objectives, and all variables must work
together to achieve an integrated marketing communications program. The development and
implementation of an IMC program is based on a strong foundation that includes market
analysis, target marketing and positioning, and coordination of the various marketing-mix
elements.
 BRANDING

What is a brand?
According to the American Marketing Association (AMA), a brand is a “name, term, sign,
symbol, or design, or a combination of them, intended to identify the goods and services of one
seller or group of sellers and to differentiate them from those of competition.”
Brands are a combination of tangible and intangible elements, such as the following:

• Visual design elements (i.e., logo, colour, typography, images, tagline, packaging, etc.)
• Distinctive product features (i.e. quality, design sensibility, personality, etc.)
• Intangible aspects of customers' experience with a product or company (i.e. reputation,
customer experience, etc.)

What are the functions of a brand?

When practiced to its full vision, branding performs four specific core functions:
• Differentiation: To differentiate your organization from those in your field
• Authenticity: To show the authenticity of your product or service. Tell your audience
a story that enables them to connect with you and trust you better. For example: Mama
Earth was born when its founders could not find toxin-free products for their baby.
• Value setting and centering: To reinforce the values that your company places at the
forefront of each action.
Branding is a way of life that uncovers and formalizes the core values of an
organization. The storytelling step is one of the best ways to bring a company’s mission
to the forefront, but first you have to set your values.
The branding process should uncover the values that an organization truly believes in.
Once it does this, it’s up to the power of branding to weave that into the story in a
compelling way. Also at this time, an organization should center itself on these values
as an operating procedure.
• Unification: To unify each department within your organization.
Everyone should be on the same page as far as the general rules that go into making
everything work. Branding is a way of life. It’s not meant to be dealt with in one
department. Simple day to day tasks are all part of a company’s brand.
A brand isn’t a vertical department. It’s a horizontal force that should span across all
departments, actions and practices.

What is the role of a Brand?

• A brand is an identifier: a name, sign, symbol, design, term, or some combination of

these things that identifies an offering and helps simplify choice for the consumer.
• A brand is a promise: the promise of what a company or offering will provide to the
people who interact with it. In doing so, it reduces the perceived risk in transactions.
• A brand is an asset: a reputation in the marketplace that can drive price premiums and
customer preference for goods from a particular provider.
 • A brand is a set of perceptions: the sum total of everything individuals believe, think,
see, know, feel, hear, and experience about a product, service, or organization.
• A brand is "mind share": the unique position a company or offering holds in the
customer's mind, based on their past experiences and what they expect in the future.
• A brand is a legal instrument: Just as brands act as identifiers for consumers, they are
a legal instrument for organizations. That is, in addition to providing visual
distinctiveness, brands also designate legal ownership and protect against emulation
and other infringements to intellectual properties from copycats.
• Brand acts as a behavioral compass: Last, brands take on the role as a compass of
behavior for the entire organization. All the way from the leadership team on the top to
the front-line employees at the lower levels.

Evolution of Brands
Brand evolution is the ongoing process of shaping a brand around changing consumer and
market behaviours. This process naturally happens little by little, but even the smallest changes
can lead to an impact on your audience and sales. It is key to evolve your brand over time to
ensure you keep up with the latest industry trends and stay ahead of your competition.
Advantages of brand evolution
• By evolving your brand over time, you are positioning yourself as modern and
current to your audience.
• Brand evolution helps your brand to be reactive with design trends and the needs of
your customers.
• Brand evolution is an extremely effective way of keeping your current audience and
engaging with communities.
• Solid brand evolution ensures that your brand is easily recognisable through
evolution and shows the ever-changing values of your company.
• Brand evolution builds a culture around continuous improvement within your
workplace.

How you can evolve your brand?

Logos: Adapting your logo overtime is one of the most common forms of brand evolution.
Many successful brands have tweaked their logos over the years and by doing so, remain one
step ahead of their competition.
Update brand guidelines: Regularly changing your brand guidelines will keep your branding
consistent whilst also gradually evolving overtime.
Internal communication: It is more important than ever for businesses to share their values
with their customers, so it is key to keep up to date from the inside of your company to evolve
as a brand.
Monitor competition: Research your competition and identify changes within your industry,
by doing so you can see how other brands are changing and not miss out.
Social channels: Follow the latest trends on your social media profile to stay relevant and up
to date.
User testing: When considering changing your brand, make sure to do research within your
team and identify strengths, weaknesses and opportunities. This will make changing your brand
a straight forward process with strategic thought behind any moves.

Theory of Brand Evolution

Each company goes through these 5 stages of brand growth:
Stage 1. Introduction to the Market
In the initial brand evolution phase, the brand is introduced to the market, focusing on
establishing a clear identity and making a memorable first impression.
Key actions include defining core values, creating a distinctive identity, and implementing
initial marketing strategies.
Stage 2. Development
In this phase, the company’s staff members strategically cultivate and refine the brand's
identity, defining its mission, vision, and values.
Small businesses hone their brand identity to stand out, crafting a compelling brand story and
catchy visual elements.
Stage 3. Growth
As the brand gains recognition, it enters the growth phase, focusing on expanding the customer
base, increasing market share, and optimizing operational processes.
Strategies include leveraging digital platforms, embracing social media, and refining offerings
to thrive in a competitive environment.
Stage 4. Maturity
Brands refine products or services, enhance customer experiences, and invest in a consistent
brand image.
The brand's marketing initiatives are focused on strengthening the brand's position while
adapting to evolving consumer preferences.
Stage 5. Expansion
During expansion, brands explore new markets, introduce innovative products, or diversify
their existing product lines.
Successfully navigating this phase requires a strategic approach that includes market research,
targeted marketing campaigns, and building partnerships that promote further growth.

BRAND EQUITY
Brand equity refers the value of a brand beyond what can be explained by a product’s functional
features. Brand equity is the intangible value a brand holds in the minds of consumers. It
represents how well a brand is recognized, perceived, and trusted in the market. A strong brand
equity equates to higher customer loyalty and increased market share.
Components of Brand Equity: David Aacker’s model
Aacker has derived a simple framework, which features the key components comprising brand
equity: brand awareness, brand association, perceived quality, brand loyalty, and other
proprietary assets.
1. Brand Loyalty
Brand loyalty dictates that a consumer who truly believes in the value of a brand’s offerings
will often make frequent and repeat purchases from it instead of switching between brands.
High brand loyalty ensures that business is stable and consistent, and enables the organization
to capture a larger market share.
2. Brand Awareness
Brand awareness concerns the extent to which a brand is known or recognizable to a consumer.
A brand with high brand equity will spring to mind when a customer searches for a particular
product. This is also termed brand salience; the brand occupies a prominent position in
consumers’ minds.
3. Perceived Quality
This element centers on the brand’s reputation for high-quality products and customer
experience.
Good quality is favored more highly than particular product features, with consumers often
willing to pay premiums for high-quality products relative to other brands.
4. Brand Association
Brand association involves anything related to the brand, which evokes positive or negative
sentiments, for example, a product’s functional, social or emotional benefits.
More broadly, this relates to the brand’s overall image, and what consumers associate with that
image – if consumers associate predominantly positive attributes with the brand, then the brand
possesses high brand equity.
5. Other Proprietary Assets
Proprietary assets include patents, trademarks, and channel or trading partner relationships.
These assets are vital to ensuring that other brands cannot compete by operating under a similar
name or using very similar packaging, which may confuse consumers and compete away from
a brand’s customer base.

BRAND IDENTITY
Brand identity refers to the visual and symbolic elements that represent a brand. These elements
include a brand’s name, logo, color scheme, typography, and design elements. These elements
work together to create a recognizable image for the brand, which consumers can identify and
connect with.

A strong brand identity:

• Is recognizable by consumers and helps the company stand out from the competition
• Stands for a set of values and traits that resonate with the target audience
• Is consistently expressed across a company's channels
• Strengthens a company's popularity and presence in the market
• Contributes to a company's positive reputation, communicating characteristics such as
quality and reliability to build trust with consumers

A clearly defined brand identity brings several benefits, such as:

- Uniqueness: A deep understanding of a brand’s unique qualities and how it sets itself
apart from competitors.
- Personification and emotional connection: An opportunity to build an emotional
connection with target audiences.
- Consistency: Consistent communication and marketing efforts can lead to better brand
recognition.
- Clarity: A distinction between core, unchanging brand elements and ones that can
evolve.

Seven Key Elements of a Brand’s Identity

Brand story

• A brand story is a unique and compelling narrative that defines a brand’s origins.
• It can create a solid emotional connection with customers and make a brand memorable.

A great brand story can include the following:

• Why, when, where, and how the brand started

• A concise profile of the founders
• Key events and turning points in the brand’s lifespan
• Cultural and/or historic aspects
• Entertaining and inspiring events that have occurred over the years

Brand name

• A brand’s name is often the first thing customers hear or see. Therefore, it should
be memorable and easy to spell and say.
• It can be a combination of words, letters, or even numbers, chosen for memorability
and uniqueness.
• A great brand name can help establish brand recognition and evoke emotions.
Brand personality
 • Providing a brand with specific character traits makes it more human. A clearly
defined brand personality generates attachment among its audience. Consumers feel
concerned by its behavior and values, just like they would with a person.
• A brand’s personality corresponds to “its way of being” and forms the basis for building
its visual and verbal identity and behaviors.
Communication style and tone of voice

• A brand’s communication style and tone of voice define how it communicates with
different audiences. It includes the type of vocabulary used, how the brand expresses
its messages, interacts with others, and the emotions it conveys.
• Communication style refers to how a brand interacts with its audience through speech
(factual/analytical/questioning or opinionated); dynamism (calm or energetic); feelings
(depth of feelings vs. being detached and undemonstrative); protagonism (storyteller
vs. good listener); and communication channels.
• Tone of voice can be divided into four main styles: funny/serious; formal/casual;
respectful/irreverent; and enthusiastic/matter of fact.
The brand as a product or service

• Consumers can quickly judge a brand based on its products or services (e.g.,
uniqueness, perceived quality and functionality, added value, feelings conveyed,
product production, and social and environmental impact).
• A brand’s products or services are part of its identity. They represent the brand and
embody the different facets of its identity.
• It is essential to create products and services that are exclusive to the brand and aligned
with its overall identity.

Visual identity
A brand’s visual identity is the combination of graphic elements that identify the brand.

Elements of visual identity include:

• Color palette
• Logo
• Typefaces and fonts
• Imagery and photography style
• Graphic design layouts
• Product and packaging design
• Being consistent in visual branding improves brand recognition and inspires trust.

Sensory identity

• Sensory identity includes scent, touch, and sounds associated with a brand.
• Sensory elements can enhance a brand experience and create a lasting impression on
customers, transporting people to experience unique sensations and emotions and
creating new associations with a brand.
 • Defining the sensory identity of a brand is an optional step within a brand strategy.
However, depending on a brand’s industry, smells, sounds, flavors, and touch may be
relevant.

BRAND POSITIONING

Brand positioning is the “act of designing the company’s offer and image so that it occupies a
distinct and valued place in the target customer’s minds.”

Brand positioning creates a guide for the effective communication of a brand’s value and
benefits to the target audience. It also helps in differentiation and establishing competitive
advantage.
Good brand positioning helps guide marketing strategy by clarifying what a brand is all about,
how it is unique and how it is similar to competitive brands, and why consumers should
purchase and use it.

CO-BRANDING
Co-branding is a marketing strategy where two or more brands collaborate to develop a
product, service, or customer experience.
- The goal is to benefit from each other's strengths and resources, such as brand
image, funding, and expertise.
- The brands can leverage each other's customer bases and reputations to increase
visibility, broaden their market reach, and boost customer loyalty.
- Co-branding can reduce the cost of product introduction because it combines two
well-known images, accelerating potential adoption.
- For example: McDonald’s and Oreo – McFlurry, Nike and Apple, Michael Jordan and
Nike
Disadvantages of co-branding
Co-branding can help increase brand recognition and provide access to new markets. However,
there are some potential disadvantages, including:
- Dilution: Both brands must share consumer attention, which could dilute each brand's
identity.
- Disparity: If the brands don't contribute equally to the co-brand, it could cause
inequities and resentments between the brands' management.
- Reputation: If one of the brands experiences a negative response, such as a consumer
boycott or crisis, the other brand could be affected.

BRAND EXTENSION
A brand extension occurs when a firm uses an established brand name to introduce a new
product.
Advantages of brand extension
Here are some of the benefits of brand extension:
- Grows audience: Brand extension often allows companies to reach new customers
and demographics.
- Increased earnings: It can also lead to increased sales due to the increased
opportunities and potential for new markets, leading to overall boosted profit margins
and equity.
- Inexpensive marketing: Because brand extension relies in part on existing fans,
organizations can save on money usually spent on promoting and marketing their
company.
- Trust from customers: It usually takes some time for new products to earn
customers' trust, but consumers may be more open to trying a new product from a
brand with established credibility.
- Promotes the existing products: Releasing a new product may help garner attention
to your brand, which serves as marketing for your existing products.

Disadvantages of brand extension

- Potential changes to the parent brand's image: It could change your brand's
reputation if your new product is less successful than your original offerings, but it can
help to ensure the new product matches your vision and promises.
- Possibility of over-saturation: Participating in too many industries could cause brand
dilution as consumers tire of seeing your brand, so consider competing in a market that's
related to your current market.
- Smaller marketing budgets: Some organizations may rely too much on brand
recognition to attract customers while saving money on marketing, so diversify your
marketing tactics to generate interest in your product.
Types of Brand Extensions:
• Line extension: Marketers apply the parent brand to a new product that targets a new
market segment within a product category the parent brand currently serves. A line
extension often adds a different flavor or ingredient variety, a different form or size, or
a different application for the brand (like Head & Shoulders Dry Scalp shampoo),
Colgate variants.
• Category extension: Marketers apply the parent brand to enter a different product
category from the one it currently serves. For example: Colgate starts selling
toothbrushes; Dove- lotion, body wash, shampoo, Men + Care line; Apple – iPod,
iTunes, iPhone, iWatch, etc.

GLOBAL BRANDING

Global branding refers to creating a consistent brand image and identity across multiple
countries and cultures to achieve worldwide recognition and appeal. This involves harmonising
the brand's core message, visual identity, and values, ensuring they transcend local preferences
while respecting cultural sensitivities.
Benefits of Global Branding
These are some of the major benefits of global branding:
- Offers more consistency: Both brands and consumers can benefit from the consistency
of global branding. While brands can spread their message across all continents,
consumers can be sure they're getting the same quality of product whether they're in,
for example, France or Brazil.
- Increases customer awareness: When the company you work for sells products
around the world, more people may become familiar with your company's offerings.
This familiarity may cause consumers to search for your product instead of one they
haven't seen as often.
- Reduces marketing costs: Rather than changing your campaign based on local
markets, your brand can save money on marketing by keeping your advertisements and
messaging consistent around the globe.
- Saves on production costs: When you can keep your package design the same across
the world, this can save your brand money on production costs. Along with saving
money, this can contribute to less waste, which might be good for the environment.
- Improves brand value: Engaging In global branding can potentially increase the
monetary value of the organization.
- Offers more economic stability: Companies that sell to more markets tend to have
more financial stability. Even if one of their markets provides economic challenges,
other segments in that company's diverse audience base may continue to purchase at
the same pace.
- Optimizes profits: Ultimately, using an effective global branding strategy can increase
your overall sales, which might boost revenue.
Potential drawbacks of Global Branding
Following are some of the potential disadvantages of expanding into international markets,
along with some possible solutions:
- Duration: It can take a company months or potentially years to become established in
a new market. If you want to expand into international markets, it's important to create
a realistic schedule of how long it might take to develop your branding and increase
sales in that market.
- Financial risk: Diversifying your target market can have an increased financial risk,
as you might not see a return on your branding investment immediately. Before you
decide to engage in a global branding strategy, make sure that you have enough in the
budget to sustain your other marketing efforts for several months or longer.
- Legal issues: Expanding into international markets can sometimes mean encountering
unfamiliar legal issues, such as those posed by local legislation. That's why it's crucial
for companies to research any local or national regulations that might affect the
distribution, marketing or sales of their products or services in international markets.