B.E.

- VII semester

Start-up Management
21HSS752
(Open Elective)

MODULE 4
Marketing and its Importance for Start-ups
Content
Marketing concept, salient features, Elements of marketing
mix, Methods of marketing, marketing channel – channel
design, functions of channel design, marketing institutions
– Marketing services offered by SIDO, Export promotion
councils, e-commerce – benefits, future, Export possibility
– institutional assistance to exporters.
 Marketing
Marketing is about identifying and meeting human and social
needs.

Marketing is about meeting needs profitably.

 Marketing
As per American Marketing Association “Marketing is the activity, set
of institutions and processes for creating, communicating , delivering
and exchanging offerings that have value for customers, partners and
society at large.”
Salient features
Want and Needs - Marketing deals with the function of satisfying
and fulfilling the wants and needs of the organization and
individuals.
Creating Offers in the Market - Marketing helps create a
complete market offer for a service or product.
Salient features
Consumer Value - It helps provide value to the money invested by
the consumer and provides the greatest benefit to their money.

Exchange Mechanism - Exchange services/ products for money or

something that is of value for them, like a barter system.
Importance of Marketing for Start-ups
 Creating Brand Awareness
Start-ups are typically new entrants in the market. Marketing helps
establish their brand identity, communicate their unique value
proposition, and build recognition among potential customers.

 Attracting Customers
Through targeted campaigns, digital marketing, and customer
engagement strategies, start-ups can attract their ideal audience and
convert them into paying customers.
Importance of Marketing for Start-ups
 Building Credibility and Trust
A strong marketing strategy can help start-ups appear professional and
trustworthy. Consistent branding, quality content, and transparent
communication play a significant role in gaining customer trust.

 Understanding the Market

Marketing efforts, like surveys and feedback collection, provide insights
into customer preferences, behaviours, and market trends. This data
helps start-ups refine their products and services.
Importance of Marketing for Start-ups
 Competing with Established Players
Start-ups often operate in highly competitive markets. Effective
marketing allows them to differentiate themselves from
established competitors and carve out their niche.
 Driving Revenue Growth
By reaching a wider audience and creating compelling offers,
marketing contributes directly to sales and revenue generation,
essential for a start-up’s growth and sustainability.
Importance of Marketing for Start-ups
 Enhancing Customer Engagement
Interactive marketing strategies (like social media campaigns) help
start-ups engage with customers, building loyalty and fostering
long-term relationships.
What is Marketed?
STP
Segmentation
Segmentation is the process of dividing a heterogeneous
market into several sub-markets or segments.
Targeting
Targeting involves following steps:
 Evaluating the segment attractiveness
 Selecting the segment for targeting
 Choosing coverage strategy
 Positioning
Positioning is act of designing the company’s offering and
image so that it occupies a distinctive place in the mind of
the target segment.
Elements of Marketing Mix
Product
Meaning
A product is anything that can be offered to a market to
satisfy a want or need.
Products that are marketed include physical goods,
services, experiences, events, persons, places, properties,
organizations information and ideas.
Product
Definition
A product is a bundle of physical services and symbolic particulars
expected to yield satisfactions or benefits to the buyers.
- Philip Kotler

A product is a bundle of utilities consisting of various features and

accompanying services.
- W. Alderson
 New Product Development Process
.
Idea generation

Screening

Concept Development and

testing

Marketing strategy and

development

Business analysis

Product development

Test marketing

Commercialization –
launching the product
 Price

According to Philip Kotler “Price is the only element in the

marketing mix that creates sales revenue; All the other
elements are costs”
Price is the amount of money charged for a product or
service.
 Price
More broadly, price is the sum of the values that
consumers exchange for the benefits of having or
using the product or service.
Promotion
Promotion refers to the strategies and tactics a business
uses to communicate with its target audience, increase
brand awareness, and encourage potential customers to
make a purchase.
Promotion is essential in building a brand’s visibility,
attracting customers, and driving sales.
Promotion Mix
Advertising:
Any paid form of nonpersonal presentation and promotion of ideas,
goods, or services by an identified sponsor via print media
(newspapers and magazines), broadcast media (radio and
television), electronic media and display media (billboards, posters).
Promotion Mix
Sales promotion:
A variety of short-term incentives to encourage trial or purchase of a
product or service including consumer promotions (such as samples,
coupons etc.), trade promotions (such as advertising and display
allowances).
Promotion Mix
Events and experiences—Company-sponsored activities
and programs designed to create daily or special brand-
related interactions with consumers, including sports, arts,
entertainment, and cause events as well as less formal
activities.
Publicity—A variety of programs directed internally to
employees of the company or externally to consumers, other
firms, the government, and media to promote or protect a
company’s image or its individual product communications.
Promotion Mix
Direct marketing—Use of mail, telephone, fax, e-mail to
communicate directly with or solicit response or dialogue
from specific customers and prospects.
Interactive marketing—Online activities and programs
designed to engage customers or prospects and directly
or indirectly raise awareness, improve image, or elicit
sales of products and services.
Promotion Mix
Word-of-mouth marketing—People-to-people oral,
written, or electronic communications that relate to the
merits or experiences of purchasing or using products
or services.
Personal selling—Face-to-face interaction with one
or more prospective purchasers for the purpose of
making presentations, answering questions, and
procuring orders.
Marketing Channel
The system of marketing institutions that promotes the
physical flow of goods and services, along with ownership
title, from producers to consumer or business user; also
called a Marketing Channel.
Functions of channel design
 Gather information about potential and current customers,
competitors, and other actors and forces in the marketing
environment.
 Develop and disseminate persuasive communications to stimulate
purchasing.
 Negotiate and reach agreements on price and other terms so that
transfer of ownership or possession can be affected.
 Place orders with manufacturers.
Functions of Channel
• Acquire the funds to finance inventories at different levels in the
marketing channel.
• Assume risks connected with carrying out channel work.
• Provide for the successive storage and movement of physical
products.
• Provide for buyers’ payment of their bills through banks and
other financial institutions.
• Oversee actual transfer of ownership from one organization or
person to another.
Channel Levels
Channel Design Decision
 Analysing Customer needs and wants
 Establishing Objectives and constraints
 Identifying Major Channel alternatives
 Evaluating Major Channel Alternatives
 Analysing Customer needs and
wants

Consumer Choose their Channel based on:

a. Price
b. Product Assortment
c. Convenience
d. Shopping Goal (Economic, Social & Experimental)
 Establishing Objectives and Constraints

Channel Objectives Vary with product characteristics:

a. Bulky Products: building material: require channel that
minimize the shipping distance and amount of handling
 Establishing Objectives and Constraints

b. Non-standard Product: Custom built machineries: These

are sold directly by sales representatives.
C. Product requiring Installations or Maintenance services:
Heating and Cooling systems: Sold and maintained by
company or franchised dealers.
Establishing Objectives and Constraints
d. High Unit value product: Generator: Sold through
company sales force rather through intermediaries
Establishing Objectives and Constraints
Apples Channel objective of creating a dynamic retail
experience for consumers was not being met by
existing channels, so it chose to open it’s own stores.
 Identifying Major Channel Alternatives
Channel alternative differ in three ways:
 Types of Intermediaries

 Number of Intermediaries
 Identifying Major Channel Alternatives
Type of Intermediaries:
E.g. Satellite Radio
Intermediaries:
Directly to Automobile Manufacturers
Auto Dealers
Rental Car Company
Company Stores
Online retailers
Identifying Major Channel Alternatives
Type of Intermediaries:
Sometimes Companies chooses a new or Unconventional
channel because of the difficulty, cost , or ineffectiveness of
working with the dominant channel

https://www.youtube.com/watch?v=ZKrtUB-kMJc
 Identifying Major Channel Alternatives
Number of Intermediaries
Intensive Distribution:
Places the goods or services in as many outlets as possible
E.g.: Snack Food
 Evaluating Major Channel Alternatives
a. Economic Criteria
Every Channel member will produce a different
level of sales and costs
Evaluating Major Channel Alternatives
b. Control and Adaptive Criteria
Using sales agency may pose a control problem.
Agent may concentrate on customers who buy the most,
not necessarily those who buy the manufacturer’s goods
Evaluating Major Channel Alternatives
b. Control and Adaptive Criteria
To develop a channel, members must commit to each
other for a specified period of time.
The producer needs channel structure and policies that
provide high adaptability
Marketing Services offered by SIDO
SIDO, which stands for Small Industries Development
Organisation, primarily offers marketing services focused
on supporting small and medium enterprises (SMEs) by
providing market research, business development
assistance, promotional support, and facilitating access to
market linkages, essentially helping them reach a wider
customer base and improve their market visibility.
 Marketing Services offered by SIDO
• Market research and analysis:

• Conducting market studies to identify potential markets, analyze competitors,

and understand customer behavior to help SMEs make informed marketing
decisions.

• Brand development and positioning:

• Assisting SMEs in crafting their brand identity, messaging, and positioning

strategies to stand out in the market
 Marketing Services offered by SIDO
 Exhibition and trade show participation:
Facilitating participation in trade shows and exhibitions to
showcase products and services to potential customers on a larger
platform.

 Digital marketing support:

Providing guidance on online marketing strategies including
website development, SEO optimization, social media marketing,
and online advertising.
Marketing Services offered by SIDO
• Business networking opportunities:
• Connecting SMEs with potential customers, distributors, and
other industry players through networking events and business
missions.

• Market intelligence dissemination:

• Sharing market trends, industry updates, and relevant information
to help SMEs stay informed about market dynamics
Marketing Services offered by SIDO
Marketing training and capacity building:
Providing training programs to entrepreneurs and marketing
personnel on effective marketing techniques and strategies.
Export Promotion Councils of India
Export Promotion Councils (EPCs) in India are organizations set up
to promote and support the export of Indian goods and services.
They work under the guidance of the Ministry of Commerce and
Industry, Government of India.
These councils facilitate exporters by providing guidance,
technical support, and promotional activities in international
markets.
 Export Promotion Councils of India
 Cashew Export Promotion Council of India (CEPCI)
 Chemicals and Allied Products Export Promotion Council
(CAPEXIL)
 Council for Leather Exports (CLE)
 Engineering Export Promotion Council (EEPC)
 The Gem and Jewellery Export Promotion Council (GJEPC)

https://www.cgierbil.gov.in/Export-Promotion-Councils-of-India.php
Marketing services offered by Export
promotion councils
Trade Fair Participation and Exhibitions
• Organization of Trade Fairs: EPCs arrange Indian pavilions at
international trade fairs, showcasing Indian products and services.
• Subsidized Booths: Members are often provided subsidized rates
for exhibition space.
• Sector-Specific Exhibitions: Focused fairs for textiles, engineering
goods, pharmaceuticals, etc.
Marketing services offered by Export
promotion councils
Buyer-Seller Meets (BSMs)
• Domestic Meets: Connecting foreign buyers with Indian exporters
in India.
• International Meets: Organizing interactions in foreign countries
to promote Indian products.
• Virtual BSMs: Online platforms for exporters to connect with
buyers post-pandemic.
Marketing services offered by Export
promotion councils
Market Research and Intelligence
• Market Trends Analysis: Detailed reports on global demand,
pricing, and competitors.
• Potential Market Identification: Insights into regions with high
demand for specific Indian exports.
• Customized Reports: Sector-specific reports tailored to exporters’
needs.
Marketing services offered by Export
promotion councils
Branding and Promotion
• Indian Product Promotion: Campaigns to build a global image for
Indian goods and services.
• Product Catalogs: Publishing directories and online catalogs of
Indian exporters.
• Social Media Campaigns: Promoting Indian industries on global
platforms like LinkedIn, Instagram, and Facebook.
Marketing services offered by Export
promotion councils
Digital Marketing Support
• E-Commerce Integration: Helping exporters list on global
platforms like Amazon and Alibaba.
• Website Development Assistance: Enabling exporters to build
and optimize their online presence.
• B2B Portals: Hosting platforms for exporters to connect with
international buyers.
E-commerce
E-commerce has revolutionized how businesses operate,
providing unparalleled convenience and opportunities for
growth.
In India, it is a rapidly expanding sector, driven by
increasing internet penetration, smartphone adoption,
and a young, tech-savvy population.
E-commerce – Benefits to business
Wider Market Reach:
 Access to national and international markets without physical
presence.
 Small and medium enterprises (SMEs) can compete globally.

Cost Efficiency:
 Reduced operational costs compared to brick-and-mortar stores.
 Savings on inventory management with just-in-time systems.
E-commerce – Benefits to business
 Data-Driven Insights:
 Ability to track customer behavior and preferences.
 Use of analytics to improve product offerings and
marketing strategies.

 24/7 Availability:
 Round-the-clock sales opportunities.
 Enhanced customer convenience leading to higher sales.
E-commerce – Benefits to customers
 Convenience:
•Shop anytime and anywhere without geographical constraints.
•Home delivery of products.

 Variety and Comparison:

•Access to a wide range of products and brands.
•Price comparisons to find the best deals.
E-commerce – Benefits to customers
 Affordability:
•Discounts, offers, and cashbacks are frequently available.
•No need for travel, saving time and transportation costs.

 Enhanced User Experience:

•Secure payment options like UPI, digital wallets, and EMIs.
•User reviews and ratings aid in informed purchasing.
E-commerce – Future
India’s e-commerce sector is poised for exponential growth, with
projections exceeding $350 billion by 2030. The integration of
advanced technologies, government support, and rural market
penetration will be key drivers.
E-commerce – Future
Growth Drivers
Internet Penetration:
◦ Rapid expansion of affordable internet access, especially in rural areas.
◦ Over 900 million internet users by 2025.
Smartphone Usage:
◦ Increasing smartphone affordability fuelling mobile commerce (m-
commerce).
◦ Mobile apps offering seamless shopping experiences.
E-commerce – Future
•Young Demographics:
•A large percentage of the population under 35 years.
•Preference for online shopping due to familiarity with
technology.

•Rural Expansion:
•Untapped rural markets with rising disposable incomes.
•E-commerce companies investing in logistics to reach remote
areas.
E-commerce – Future
•Government Policies:
•Initiatives like Startup India and Make in India boosting e-commerce
startups.
•Relaxation of FDI norms in the e-commerce sector.

Digital Payments:
◦ UPI, e-wallets, and fintech growth driving cashless transactions.
◦ Government initiatives like Digital India promoting digital
payments.
E-commerce – Future
•Omni-Channel Retail:
•Integration of online and offline shopping experiences.
•Click-and-collect models gaining popularity.

•Voice and Visual Search:

•AI-driven technologies enabling voice and image-based
searches.
E-commerce – Future
•Sustainability:
•Focus on eco-friendly packaging and supply chains.
•Green initiatives attracting conscious consumers.

•Artificial Intelligence (AI) and Augmented Reality (AR):

•AI for personalized shopping experiences and chatbot customer support.
•AR for virtual try-ons (e.g., clothing, furniture).
E-commerce – Future
•B2B E-Commerce:
•Growing platforms for wholesale buyers and sellers.
•Digital procurement solutions for businesses.
Export possibility – Institutional assistance to
exporters.
1.Commodity Board
The Commodity boards are responsible for the production, development of
crop quality and export of commodities like tea, tobacco, rubber etc. In India
five commodity boards are dedicated for the development and export
promotion of commodities:
 Tea Board
 Coffee Board
 Rubber Board
 Tobacco Board
 Spices Board
2.Indian Institute of Packaging
(Mumbai)
IIP is an apex and autonomous body working under administrative
control of Ministry of Commerce for the excellence in packaging
for export promotion, it was established in 1966.
The prime functioning of the institute is to improve the standard
of packaging for export promotion.
Indian Institute of Packaging (Mumbai)
Following are the main function of IIP:
 Training & Education- Within the domain of packaging training is
provided to the entrepreneurs where the science of packaging,
technology of packaging and engineering of packaging are bought
within the single roof.
 Research & Development- The Institute is responsible for growth,
development and promotion of packaging technology provision of
consultancy, testing and certification for packaging system
3.Federation of Indian Export
Organizations (New Delhi)
FIEO is an apex body for export promotion organizations
and institutions, which focuses on export promotion of
government recognized export houses and trading
houses in an integrated fashion.
It was established in 1965, as a joint set up of Ministry of
Commerce- Government of India and Private Trade &
Industry, and acts as a partner of Government of India in
promotion of India’s Foreign Trade.
4.Marine Products Export Promotion
Development Authority (Cochin)
MPEPDA was established in 1961 by Government of India, in order to boost
the export potential of India as sea food.
MPEDA focuses mainly on following five areas:
 Capture Fisheries.
 Processing Infrastructure & Value Addition
 Aquaculture (the rearing of aquatic animals or the cultivation of aquatic
plants for food).
 Processing Infrastructure & Value Addition.
 Quality Control & Market Promotion.
5.APEDA
The Agricultural and Processed Food Products Export
Development Authority (APEDA) is established by the
Government of India under the Agricultural and Processed Food
Products Export Development Authority Act that was passed by
the Parliament in December, 1985
5.APEDA
APEDA holds responsibility of export promotion and development of the following scheduled
products:
 Fruits, Vegetables and their Products.
 Meat and Meat Products.
 Poultry and Poultry Products.
 Dairy Products.
 Confectionery, Biscuits/cakes and Bakery Products.
 Honey, Jaggery and Sugar Products.
 Cocoa &and its products, chocolates of all kinds.
5.APEDA
APEDA holds responsibility of export promotion and development of the following scheduled
products:
 Alcoholic and Non-Alcoholic Beverages.
 Cereals and Cereal Products.
 Groundnuts, Peanuts and Walnuts.
 Pickles, Papads and Chutneys.
 Guar Gum.
 Floriculture and Floriculture Products.
 Herbal and Medicinal Plants